Thursday, April 22, 1999
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B U S I N E S S | Thursday, April 22, 1999 |
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50 crore for Punjab roads
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 Nearly 4.50 lakh procured wheat bags lie in Rajpura mandi after government agencies failed to pick them up. — photo by Sarabjit Singh Bhangu PHDCCI to have own building CHANDIGARH, April 21 — The PHDCCI has decided to construct its own building called “PHD House” in Sector 31-A here — the first outside New Delhi. |
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Pak refuses power supply
to India ‘CRR cut may not generate
liquidity’ Godfrey Philips given clean chit MTNL to offer shares to staff PPGM, Crompton merger approved DSE caution on Anagram Finance |
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50 crore
for Punjab roads CHANDIGARH, April 21 — Mr Parkash Singh Badal today ordered the immediate release of Rs 50 crore more for the construction and upgradation of main roads in Punjab in addition to Rs 50 crore already released to the PWD (B and R). Presiding over a meeting of the Punjab Infrastructure Development Board, he said the board will have an income of Rs 100 crore out of which Rs 20 crore will be deposited as revolving corpus towards Punjab Infrastructure Initiative Fund for launching ventures with the participation of the private sector. He said a “master plan” for all bus stands in the State should be prepared with priority to Amritsar, Ludhiana, Jalandhar and Patiala. The Board approved a large number of infrastructural and development projects, including the express highway between Chandigarh-Moga, the northern bye-pass Ludhiana as a high speed traffic corridor which may eventually be part of the Chandigarh-Moga Expressway, private investment in upgrading the facility at Amaltas, development of Patiala Ki Rao and a direct link road from Mohali to Ambala via Chandigarh. The Chief Minister ordered that the Board should meet every month to review the projects. Among those who attended
the meeting were Capt. Kanwaljit Singh, Finance Minister,
Mr R.S. Mann, Chief Secretary, Mrs Shyama Mann, Financial
Commissioner, Revenue, Mr Rajan Kashyap, Principal
Secretary Finance, Mr Ramesh Inder Singh, Principal
Secretary to the Chief Minister, Mr Sarvesh Kaushal,
Special Principal Secretary to the Chief Minister and
other Secretaries. |
Godfrey Philips given clean chit NEW DELHI, April 21 (PTI) — The Monopolies and Restrictive Trade Practices Commission (MRTPC) has dismissed a petition filed against cigarette manufacturer Godfrey Philips India (GPI) for restrictive and unfair trade. MRTPC said non-supply of goods to distributors or termination of their distributorship would not amount to restrictive or unfair trade practices under the MRTPC Act. The order issued by Commission Chairman A.N. Divecha and member R.K. Anand said, “it is difficult to find Godfrey Philips indulging in any kind of unfair trade practices on the ground of non-supply of cigarettes to the distributors”. The order follows a petition filed by cigarette distributor Bholeshankar Enterprises of Ahmedabad against GPI for alleging in unfair trade practice by stopping the supply of cigarettes to it. It also stated that Bholeshankar purchases cigarette from GPI for resale to wholesalers and retailers and they would not be considered as consumer. The Commission said any
breach of a contract of commercial nature would involve
some restrictive or unfair trade practice. But it further
stated that such breach of contract of commercial nature
would not be amenable to the jurisdiction of the
commission under MRTPC Act. |
‘CRR cut may not generate liquidity’ NEW DELHI, April 21 (PTI) — The Reserve Bank of India’s (RBI) decision to cut cash reserve ratio (CRR) by 50 basis points is unlikely to generate liquidity in the system due to the large government borrowings in the current fiscal, ICICI Securities (I-Sec) has said. “CRR cut is a mild positive but the large government borrowings programme is likely to suck out the incremental liquidity,” I-Sec said in its monetary and credit policy analysis. The RBI yesterday reduced CRR by 50 basis to 10 per cent from May 8, which is likely to release Rs 3,250 crore into the system. I-Sec said with the borrowing programme expected to continue at brisk pace, a marginal tightening of yields is likely over the next few months. With the current political scenario being turbulent the forex markets could again become volatile and the RBI is expected to continue interest rate targeting to ensure orderly markets through infusion of liquidity at appropriate times, I-Sec said. On the RBI decision to
permit banks to fix different prime lending rates, it
said the measure would help banks in managing their
asset-liability management better. |
PHDCCI to
have own building CHANDIGARH, April 21 — The PHDCCI has decided to construct its own building called “PHD House” in Sector 31-A here — the first outside New Delhi. The “bhoomi poojan” ceremony will be conducted tomorrow in the presence of Mr Parkash Singh Badal, Chief Minister, Punjab. The function will be attended by the members of the Managing Committee of the Chamber from all over North India. The buildings, which will cost about Rs 8 crore, will be completed in two phases. The first phase construction may take eight to nine months and involve an expenditure of Rs 3 crore. The second phase will be completed in one year thereafter. The building has been designed by Satnam-Namita Associates. Talking to newsmen Mr
Ashok Khanna, President PHDCCI, said. “It required a
lot of courage to undertake the project in these
recessionary days.” |
Pak refuses power supply to India ISLAMABAD, April 21 (PTI) — Pakistan’s military-controlled power authority is reported to have refused to supply power to India and described the recent power export proposal finalised between the two countries as “non-predictable”. The Chairman of the Water and Power Development Authority (WAPDA), who is a senior army officer, has rejected the proposal to supply power to India by describing it as, “non-practicable”, leading Urdu daily, Jung, reported quoting reliable sources in the power agency. The report further said the WAPDA Chairman had already sent a detailed report of the technical experts on the issue to the office the Pakistani Prime Minister Nawaz Sharif. Incidentally Sharif
during his meeting with Atal Behari Vajpayee, in
September, 1998, had agreed on the supply of surplus
power to India and had ordered the official level
detailed negotiations on the issue. |
Philips India records 4.46 cr net CALCUTTA, April 21 (UNI) — Philips India Limited has reported a net profit of Rs 4.46 crore during the quarter ended March 31, 1999, compared to net loss of Rs 10.61 crore in the corresponding period last year. Company sources after a Board meeting here today said sales and income from operation during the quarter jumped to Rs 397.50 crore from Rs 358.05 crore last year while other income rose to Rs 0.08 crore from Rs 0.04 crore in the same quarter of 1998. Total expenditure rose
to Rs 370.68 crore from Rs 337.72 crore last year while
interest obligation came down to Rs 7.79 crore from Rs
8.86 crore in the first quarter of previous year, sources
said. |
Bata India net falls by 21 pc CALCUTTA, April 21 (UNI) — Bata India Limited has reported 7.8 per cent jump in net sales but says its net profit has come down by 21.61 per cent during the quarter ended in March 31,1999. The net sales shot up to Rs 170.71 crore from Rs 158.40 crore, while the net profit goes down to Rs 4.29 crore form Rs 5.60 crore in the corresponding period of the previous year. After a Board meeting
here today, company sources said owing to increased
provision for taxation to the of Rs 2.46 crore in the
quarter against Rs 0.63 crore last year, net profit had
come down by 21.61 per cent from Rs 5.60 crore to Rs 4.29
crore in the first quarter of 1999. |
HCL Infosys net goes up 185 pc NEW DELHI, April 21 (UNI) — HCL Infosystems Limited has reported over 42 per cent increase in net profits to Rs 13.99 crore for the fourth quarter ending March 31, 1999 from Rs 9.83 crore for the same period last year. The turnover of the technology integration company increased to Rs 252.03 crore from Rs 197.73 crore for the corresponding quarter last year, a press release said. The profit before tax during this quarter increased to Rs 17.24 crore from Rs 10 crore last year, the release added. With a turnover of Rs 687.49 crore in the nine-month period ended on March 31, 1999, the company registered a 42 per cent increase over Rs 483.74 crore reported in the corresponding period of the previous year. Net profit after tax
during this period of Rs 41.39 crore witnessed 185 per
cent increase against Rs 14.52 crore during the
corresponding period in the previous year, the release
added. |
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NEW DELHI, April 21 (PTI) — State-owned Mahanagar Telephone Nigam Ltd (MTNL) has asked the government to divest 2.2 per cent of the total equity to employees under the employee stock option scheme. “MTNL has kept aside 1.4 crore shares to be offered to its employees in the ratio of 200 shares to each with a lock-in-period of three years”, MTNL Chairman and Managing Director S. Rajagopalan told PTI. At present the government holds about 56.2 per cent stake in the telecom major. Rajagopalan, however, refused to divulge details about the pricing of the issue saying that it was for the government to decide. He said MTNL favoured the stock option at substantial discount to the ruling price as it would motivate the employees to take on competition from the private operators. He said MTNL wanted the stock option to be exercised soon as “this was the right time to offer the shares to employees as MTNL scrips were ruling low”. On Tuesday MTNL scrips were quoted at a 52-week low of Rs 148 in the BSE. MTNL has a total equity
of 63 crore shares, including three crore offered in the
global depository receipts issue in December 1997. |
PPGM, Crompton merger approved NEW DELHI, April 21 (PTI) — The BIFR has approved the merger of sick Punjab Power Generation Machines Ltd (PPGM) with Crompton Greaves Ltd (CGL). PPGM will be merged with its promoter CGL in the ratio of 20:1 — 20 shares of PPGM for every share of CGL. Under the rehabilitation scheme, CGL will infuse Rs 10.88 crore through internal accruals of Rs 7.16 crore and Rs 3.72 crore income tax benefits for taking over the losses of the company. According to the BIFR order, the scheme will come into force from immediate effect and has asked CGL to appoint a management committee of its Directors to review the functioning of PPGM periodically. Out of Rs 10.88 crore Rs 3.5 crore is for capital expenditure and Rs 6.88 crore has been set aside for one-time settlement with financial institutions due and Rs 50 lakh for working capital. The one-time settlement due with financial institutions include Rs 2.31 crore for ICICI, Rs 2.79 crore for IDBI and Rs 1.77 crore for IFCI. The BIFR has said all workers of PPGM will be absorbed in CGL and no retrenchment has been proposed at its plant. PPGM, which is engaged in hydro power plant business on a turnkey basis and railway wagon transportation, will be one of the manufacturing divisions of CGL. As per the revival
strategy sales of PPGM are expected to increase to Rs
33.42 crore in 1999-2000 under normal conditions with
sales of pumps to grow by 20 per cent and defence segment
business to double after the revival. |
DSE caution on Anagram Finance NEW DELHI, April 21 (PTI) — The Delhi Stock Exchange has advised its members not to deal in the securities of Anagram Finance Limited from May 10 onwards following the company’s decision to offer scrips of ICICI Limited to its shareholders. Pursuant to the merger of Anagram Finance Limited into ICICI, the former said its shareholders will be offered equity shares of the latter. The exchange of shares would be in the ratio of one equity share of Rs 10 each of ICICI for every 15 shares of Rs 10 in Anagram Finance Limited. The company has fixed June 1 as the record date for the issue of equity shares of ICICI, DSE sources told UNI. Besides, the exchange has also terminated the membership of Kuber Securities Limited from the trade guarantee-fund (TGF) with effect from yesterday. The decision was taken as the company could not comply to the requirements of the TGF, the sources added. The exchange has also
suspended trading of Kalyani Finance, Tactfull
Investments, Hallmark Drugs and Chemicals, Genesis
Developers and Resorts and Cauvery Software Engineering
Limited for two weeks with effect from April 26 due to
non-compliance of listing agreement. |
Esteem may have diesel heart NEW DELHI, (UNI): Maruti Udyog Limited has buried plans to introduce a diesel-Gypsy version terming it unviable. However, it is still toying with the idea of sporting a diesel heart in Esteem. This follows a cold response to Zen-D. “Besides, the cost add-ons for rolling out a diesel vehicle are too high and the whole process is not economical and viable,” the sources added. The company imports diesel engines from Peugeot Citreon Motors of France. “The landed cost of these engines is in the range of Rs 1 lakh a unit. This has to be passed on to the customers... The final price tag of the vehicle, particularly Gypsy, in such an event is too high to give us volumes. So, we have decided to drop the whole idea of introducing a diesel Gypsy,” the sources added. The Esteem is priced much below other mid-size cars in the market. So putting a diesel heart and adding Rs 1 lakh to the tag would still make it attractive. Honda TOKYO (AFP): Japan’s Honda Motor Co. has unveiled a 3.38 million yen ($ 28,000) cleaner-engined, convertible sports car, marking a further shift away from its traditional Sedans. The twin-seat, front-engine by rear-wheel drive “S2000” is the first Honda sports car to have such a layout since the auto maker released the top-of-the-scale NSX in 1990. “The S2000 can be regarded as Honda’s new symbol for the 21st century,” Honda’s President Hiroyuki Yoshino has said. The car is equipped with a two-litre, four-cylinder naturally aspirated low-emission engine with exhaust emissions 50 per cent below those required in regulations due for 2000, Honda said. The new car will be exported to other Asian countries, Europe and the USA. Fiat investment NEW DELHI, (UNI): Fiat S.P.A. of Italy has decided to resume investment in its Ranjangaon unit, near Pune, which was to originally house the Siena and Palio production lines, by the beginning of the year 2000. “We will start making investments in the Ranjangaon plant by the start of 2000 and by the year 2001, we will be ready to shift out from Kurla (Maharashtra),” Mr Gianni Ravina, Managing Director of Fiat India Automobiles Limited (FIAL), a wholly-owned subsidiary of Fiat S.P.A., told UNI here. Cut to core TOKYO (The Guardian): Daewoo and Hyundai, two of South Korea’s biggest and most indebted conglomerates, have announced they are selling of huge chunks of their empires to foreign buyers. The measures, which will allow the companies to “concentrate on their core car manufacturing operations,” come amid growing criticism that they have been slow to respond to the country’s worst recession in nearly 50 years. Last week financial
authorities warned the firms that credit lines would be
cut if they did not improve their balance sheets. Both
have a debt to equity ratio more than twice as high as
the government’s target of 200 per cent. |
HDFC Bank to pay 13 pc MUMBAI, April 21 (PTI) — HDFC Bank has reported a 30.5 per cent growth in net profit at Rs 82.40 crore for the year 1998-99 on a turnover of Rs 444.20 crore. The Board of Directors of the bank which met here today to consider the results also recommended a dividend of 13 per cent for the year on an equity capital of Rs 200 crore, a bank statement said. Last year the bank had reported a total income of Rs 302.80 crore while it had declared a dividend of 10 per cent. The bank’s deposits as at the end of March 31, 1999 stood at Rs 2915 crore as against Rs 2,192 crore last year. The bank’s advances increased by 66 per cent from Rs 842 crore to Rs 1,401 crore, while its corporate debt investments stood at Rs 570 crore at the end of the year. Poddars to sell Gautier stake CHENNAI, April 21 (PTI) — French conglomerate Groupe Seribo has decided to strengthen its presence in the Indian branded furniture market by buying out the entire 50 per cent stake in Gautier India Limited from the Calcutta-based Poddar group. The decision to restructure its operations in India came following the success of the joint venture between Poddars and K.K. Birla’s Zuari Industries which marked furniture under the Guatier brand name in Southern states, Gautier India Managing Director K.K. Gupta told PTI here. Crisil upgrades Vashisti rating MUMBAI, April 21 (PTI) — Rating of the Rs 12.71 crore non-convertible debenture (NCD) issue of Vashisti Detergents Ltd (VDL) has been upgraded by the Crisil. The issue was upgraded from “+A+” (adequate safety) to “+AA+” (high safety), factoring a sharp improvement in company’s profitability, Crisil said in a release here today. Astrology service launched CHANDIGARH, April
21(TNS) — RPG Paging today launched Astroplus, the
country’s first personalised astrology paging
service in Delhi. Astroplus will provide daily customised
astrological predictions to subscribers based on their
profiles and zodiac signs. RPG Paging has tied up with Mr
Jagjit Uppal, known astrologers. |
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| Forex rates MUMBAI, April 21 (PTI) — The following were interbank forex and RBI rates (in rupees per unit). U.S. $ Rs 42.79/81 The RBI reference rate was Rs 42.71. Gold falls ITC group Modern Auto IEC Software TVS Electro |
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