First IT survey of India launched NEW DELHI, April 27 — Global market research agency International Data Corporation has launched the largest ever comprehensive information technology survey in India to record for the first time city-level data-base across the country.

Have colleges, teach ’em IT
CHANDIGARH, April 27 — In an interesting move, the Punjab Government has thrown open the doors of its schools and colleges to private IT institutions to provide computer training to students.

Buyback of shares by VSNL to be delayed
BANGALORE, April 27 — Buyback of shares of Videsh Sanchar Nigam Limited is likely to be delayed by few months and may take place around next December, Acting Chairman and Managing Director of the company Amitabh Kumar has indicated.

Virus strikes PCs

Reforms take backseat;
30 Bills still pending

NEW DELHI, April 27 (PTI) — Leading economists are not unduly “worried” over the delay in the passage of important economic Bills like the Insurance Regulatory Authority (IRA) due to dissolution of the 12th Lok Sabha.

There are divergent views on the opening up of the insurance sector and hence if there is some delay, there shouldn’t be any serious damage, Mr V.R. Panchamukhi, Director, Research and Information System told PTI.

“However the Government should keep on introducing right kind of reforms without giving an impression that the reforms process is slowing down”, he said.

As many as 30 economic Bills are now pending with Parliament or are in the process of being submitted to Parliament for approval.

Apart from the IRA Bill, these include the Foreign Exchange Management Act (FEMA) and the Money Laundering Bill.

ICICI and IFCI have signed MoUs subsequent to the Cabinet’s approval of opening up the insurance sector, and delay of six months or so will hamper their plans.

Prof B.B. Bhattacharya of the Institute of Economic Growth said that it is a package of reforms which “we have not got into the stride yet”.

The second generation reforms will have to take a backseat till a new government is sworn in.

Assocham Secretary General E.N. Murthy said industry was not unduly worried as it expects the reforms process to be speeded up once a new government comes in.

CII Deputy Director General M. Roy said: “Bills on which the Standing Committee has given its approval need not be kept pending and if a political consensus can push them through, it would give a positive indication to the international economy.”

WTO commitments: The government is contemplating approaching President K.R. Narayanan for his consent to go ahead with its international commitments, particularly relating to the World Trade Organisation (WTO), in the wake of dissolution of the 12th Lok Sabha.

The Commerce Ministry is likely to moot a proposal to this effect shortly, official sources indicated.

When contacted, Commerce Minister Ramakrishna Hegde told PTI: “India has its international commitments. Everything cannot be put in a limbo till the elections are held.”

India has time uptill June 8 to move WHO’s appellate body to contest the verdict given by the dispute settlement panel (DSP) that India’s restrictions on imports on the grounds of balance of payments were not maintainable.

Commerce Ministry sources said the government had fell at a wrong time, particularly when it had to prepare for the WTO ministerial round talks to be held in November at Seattle in the USA.

“We have to bring about a common ground among various developing countries, particularly SAARC and G-15 nations,” the sources said.

In March 1998, when India was to give a commitment to the WTO on fulfilling a final ruling on extending legal cover for innovations in the field of agro-chemicals and pharmaceuticals, the Gujral Government, then as a caretaker, had assured the WTO the country would have a legally-backed Patent Act before April 19 this year.

Growing despite crisis: Dr Jalan

WASHINGTON, April 27 (PTI) — India does not need to apply under the newly created contingent credit lines (CCL) of the IMF for it follows its monetary policy with caution and prudence, the Governor of the Reserve Bank of India (RBI), Dr Bimal Jalan has said.

“India manages her monetary policy with caution and prudence and this had helped her not only to survive the East Asian financial crisis but to keep growing at 6 per cent and enhance her foreign exchange reserves.” Jalan said at a meeting here yesterday of the Institute of International Finance (IIF).

The IMF has extended the CCL facility for countries following correct economic policies but which expect that they may suffer from “the contagion effect” of troubles faced by other countries.

The East Asian crisis has brought out the risks from “excessive short-term flows”, Jalan said adding that he was not against all portfolio capital.

However, he pointed out that short-term flows were different from short-term capital. There is need for greater prudential regulation of short-term capital, Jalan added.

Stating that India’s short-term exposures have been very small, Jalan said the general view that India avoided the East Asian crisis was because she did not have convertibility on capital account.

This did help India to manage the situation, but on top of that, to deal with volatility in the external sector, the Reserve Bank had to take certain classic monetary measures.

Amidst all this, he emphasised, India has had one of the highest rates of growths in the developing world - 6 per cent last year and the same growth the previous year. In spite of the recessionary conditions in industry, the economy’s rate of growth has been high and inflation is one of the lowest, lower than even last year’s rate.

India’s reserves are among the highest. They are higher today than they were at the beginning of the Asian crisis two years ago by “a quite substantial amount.” India did not get net portfolio investment last year compared to a year before but there was no reversal of capital flows, Jalan said.

Punjab sales tax revenue declines
By B.K. Chum

CHANDIGARH: The growth of revenue from State taxes and duties in Punjab has registered a big decline during 1998-99 with sales tax, the single biggest source of the State’s income, recording a lower growth rate of only 6 per cent against 9 per cent in 1997-98.

According to the final data of revenue collections for the year now available, Punjab’s income from the State sales tax was Rs 1,222.66 crore during 1998-99 against Rs 1128.10 crore in the previous year indicating a growth rate of 8.4 per cent, collections from the Central sales tax, however, showed a minus growth of 4.1 per cent with the total income at Rs 260.57 crore against 1997-98 figure of Rs 271.66 crore. Thus the average of State and Central sales tax worked to only 6 per cent growth. The State’s income from the sale of liquor was around Rs 1,200 crore against the previous year’s Rs 1,140 crore.

The government had, in the 1998-99 Budget estimates, envisaged an income of Rs 1,513 crore from the State and Central sales taxes and Rs 1,320 crore from excise. The revised Budget estimates put the figures at Rs 1,500 crore and Rs 1,200 crore respectively.

Apart from the general recession in the economy which has particularly affected the manufacturing sector, Punjab had experienced extensive damage to certain crops, particularly cotton and paddy in 1998-99 which affected the State and Central sales tax collections and income from purchase tax.

To meet the continuing financial crisis, the State’s 1999-2000 Budget has fixed an ambitious target of Rs 2000 crore for sales tax collections representing an increase of Rs 500 crore. The government has declared that stringent measures would be taken against tax evaders to augment the State’s resources.

Accordingly, the State Excise and Taxation Department has now started tightening the noose around tax evaders. Apart from the widely prevalent evasion to tax, some of the major sources of the leakage are said to be at the level of big sweet meat sellers, importers of coal and exporters of wheat to other States.

To check such evasions, Mr Sudhir Mittal, Punjab’s Excise and Taxation Commissioner is understood to have directed the District Excise and Taxation officers in the State to take firm measures against tax evaders while showing due consideration to honest traders.

That the Punjab Government continues to experience acute financial crisis is indicated by the fact that part of the funds provided by the RBI for wheat procurement are being diverted to meet the day-to-day expenditure of the State Government. As a result, payment to farmers whose wheat is being procured by the State Food Department is being unduly delayed while the State agencies like Markfed and Punsup are making payment to the farmers without undue delay. The reason for the Food Department’s lapse in making payment is that the RBI funds given to the state food department for wheat procurement are being routed through the State’s treasuries which utilise these for making other government payments.

That Punjab’s liquidity and resource problems have aggravated is indicated by the fact that despite the waiving off the huge central term loan of Rs 5,800 crore by the former I.K. Gujral Ministry, Punjab’s 1998-99 Budget which was originally estimated to close with a deficit of Rs 241.39 crore has closed with a deficit of over Rs 1160 crore showing a deterioration of around Rs 920 crore. To meet the yawning deficit, the 1999-2000 Budget has proposed mobilisation of around Rs 1000 crore through additional taxes, reduction in subsidies and increasing user charges for public services and effecting economy in government expenditure.

‘Offer surplus wheat, rice to industry’

NEW DELHI, April 27 (UNI) — Punjab should encourage diversification in agriculture and build up a climate for industrial investment by providing linkages between agriculture and industry so as to effectively utilise state’s surplus agricultural produce, an industry chamber said.

In a study on “agricultural development in Punjab,” the PHDCCI has pointed out that the State has a tremendous surplus of wheat and rice and can offer these commodities as raw material to the processing industry on a long term basis. The state also offers good scope for fruits and vegetables processing industry particularly for crops like potato, tomato, chillies, garlic, okra, kinnow and guava, it said.

There is also need to build up effective backward linkage through contract farming and captive farming. An amendment in the land ceiling laws is required so as to enable the farmers to avail of the benefits of large scale farming, the chamber study said.

Further, a post-harvest handling system is required to be set up to take care of the agro products from farm to retail markets. This comprehensive system would consist of processes of picking, cleaning, storing, grading, pre-cooking, processing, packing and transporting. This would result in reduction of wastage as well as increase in value addition at the farm itself.

At present, large quantities of agricultural produce are exported to other states for processing and the processed products are brought back into the state. Hence, it would be necessary to set up modern food processing facilities in the state.

Since the processed food products are perishable by nature, it is essential to have best quality packaging so as to prolong the shelf life of the products. There is a need to make efforts to undertake research and development for sophisticated yet low cost and hygienic technology.

Punjab also needs to set up a strong R&D centre for the food industry. Any new process/technology that has been developed by a research organisation within or outside the country has to be tested with respect to the raw materials and other inputs available in the State before it could be successful.

As the State lacks modern marketing techniques for the agro based products, it should take initiatives for assisting the food processing industry in marketing their products. This could be done through the co-operative bodies and private marketing companies for the purpose.

The chamber suggested that since the agro based industry is a thrust area in Punjab, there is a need to provide financial assistance for, R and D efforts by research institutes/agricultural universities for specific projects.

First IT survey of India launched

NEW DELHI, April 27 (PTI) — Global market research agency International Data Corporation (IDC) has launched the largest ever comprehensive information technology (I.T.) survey in India to record for the first time city-level data-base across the country.

The survey will map the I.T. market potential of the country giving city-wise details of personal computer (PCS) and Internet penetration with special reference to home, school and corporate segments.

“The Indian arm of IDC will make use of more than 30,000 contacts in its endeavour to track the entire I.T. market of the country through the survey christened “map-I.T’,” IDC India President Ravi Sanghal told PTI.

“The survey is the largest and most comprehensive one we are carrying out in India. It will cover about 25 cities with a population of more than ten lakh,” he said adding that the survey would be over by August.

Have colleges, teach ’em IT
Tribune News Service

CHANDIGARH, April 27 — In an interesting move, the Punjab Government has thrown open the doors of its schools and colleges to private IT institutions to provide computer training to students.

This was announced by Mr Ramesh Inder Singh, Principal Secretary to the Chief Minister, Punjab, after inaugurating the Pentasoft centre floated by the Rs 400-crore Pentafore group and Drish Infotech here today.

Addressing a select gathering, Mr Ramesh Inder Singh said Mahindra and Mahindra has been chosen for a joint venture to set up a software technology park in Mohali which will have plug-in facilities for new units. A formal announcement will be made by the Punjab Chief Minister at an IT interaction being organised by the CII here from May 7.

To avoid pitfalls and mistakes faced by Andhra Pradesh, Mr R.I. Singh said the Punjab Government would carry out administrative reforms along with IT sector development. The State’s IT policy will take care of training, marketing and infrastructure aspects, among other things.

Mr M. Vardharajan, Head of Operations, Pentafour, said the Pentasoft centre will impart training on IBM AS/400 computer, Internet, including Java programming, e-commerce and multimedia.

Mr I.S. Paul, Chairman, Drish Infotech, said this region can progress much the same way as Ireland, another agriculturally rich country, has done in IT. Ireland took to IT as late as 1987. Today, 36 per cent of software for Europe is written in Ireland. All that is required to make that happen in this region is good infrastructure, supportive government policies and trained manpower, he said.

Buyback of shares by VSNL to be delayed

BANGALORE, April 27 (PTI) — Buyback of shares of Videsh Sanchar Nigam Limited (VSNL) is likely to be delayed by few months and may take place around next December, Acting Chairman and Managing Director of the company Amitabh Kumar has indicated.

He told reporters here last night that with no government in place, the issue was likely to be delayed.

“On the buyback, there is no change in our plans. We need to look at for an opportune time,” Kumar added.

Replying to questions, he said VSNL was studying the market with regard to further reduction in Internet tariffs.

“It can happen,” he said when asked if VSNL would cut Internet tariffs but hastened to add that no decision would be taken until the study was completed in the next four months.

“Cuts will always be there. They will keep coming. Flexible tariff is a must, if you want to compete in a commercial environment,” he said.

VSNL’s Internet capacity had grown more than two fold in the last one year and was expected to double this year.

Mr Kumar said VSNL would hold stake in the International Telecommunication Satellite Organisation (Intelsat), a consortium of 143 countries, when the latter was privatised. Intelsat has already announced plans for privatisation.

Virus strikes PCs

NEW DELHI, April 26 (PTI) — More than 10,000 computers crashed today in India following an attack of deadly hard drive virus “Win-CIH” causing “distress” all over the country, a leading computer data recovery services company claimed. Stellar Information Systems (P) Ltd, a pioneer in data recovery, said it has received more than 500 calls from all over the country for the data recovery service.

The virus, which strikes the hard disc drive of the personal computer (PCs), wipes out data as the hard disc drive becomes inaccessible due to the virus attack, experts said. When contacted, Department of Electronics (DoE) sources were not available for comment.

Farm-to-market roads anger greens

An Asian Development Bank funded roads project to link the rural and urban markets of Pakistan is under fire from locals and activists who allege it is ripping away scarce green cover in the mainly treeless nation.

Peasants in the North West Frontier Province (NWFP) region of Pakistan across which a large stretch of the 1,940 km highways will pass, are also protesting against the high-handed way in which their lands have been acquired to make way for the roads.

“We need the roads badly. But we do not know if we would have any farms left after these have been built”, NWFP farmer Raja Sarfaraz was quoted as saying in published reports.

The farm-to-market road programme, also known as the rural access roads project is scheduled for completion next year. Nearly half the project is complete. — IPS

Smuggling
India-made ‘Modi” tyres move fast in the Pakistani market. But the item is smuggled into the country through Afghanistan via Central Asia and the Russian ports of Vladivostok and Odessa.

Smugglers switched to this circuitous route after tyres and other items like TV sets, black tea, refrigerators, soap, silk, yarns and auto parts were knocked off the list of goods that landlocked Afghanistan could import through Pakistan under a transit pact.

Instead of landing in Afghanistan the imports flooded the ‘bara” (big) market for contraband that has sprung up in every Pakistani city.

Now these goods, snapped up by Pakistani customers, are being brought in clandestinely on camels, donkeys, horses, and even by trucks and other vehicles over the porous 1,2000 km Pakistan-Afghanistan border.

India’s trade with central Asia-Afghanistan has grown, and so has the illicit trade through the many border crossings from Afghanistan into Pakistan like Taftan, Bajour, Torkham, Chaman and Miran Shah. Routes in use despite the setting up of 134 checkposts policed by the 45,000-member frontier crop. — IPS

Exporters’ woes
Garment exporters in Pakistan are unhappy over the government’s export policies. They believe that a free hand over certain export regulations and proper infrastructure will lead to an overall increase in profits.

Pakistan’s garment industry is the second largest foreign exchange earner in the country. It caters to famous brands like Nike, Adidas, Littlewoods, and many more. The stringent exports regulations introduced recently have created a bottleneck.

Pakistan has a surplus of raw material and cheap labour but its export profits amount to just 1 billion as compared to the Bangladesh garment industry which in spite of importing raw materials makes profits worth $3 billion. Obsolete equipment, power shortage and poor quality of raw material have added to the woes of the exporters. — ANI

Power theft
Pakistan’s Interior Minister Chaudhary Shujaat Hussein has reacted angrily to his inclusion in the 49-member list of legislators who have been accused by the Federal Government and the Water and Power Development Authority (WAPDA) of power theft.

A spokesman for Hussain denied that any raid was conducted by WAPDA officials and said rather it was Phalia Sugar Mills (PSM) in Gujarat which informed WAPDA regarding flashing in the meter and asked for its rectification. He said the report presented before the Senate stated that the meter at the PSM was running slow by 46 per cent which was not correct.

Tata Chem to double capacity

MUMBAI, April 27 (PTI) — Tata Chemicals Ltd (Tata-Chem) has put on hold Rs 1,200 crore investment plans for doubling the capacity of its urea plant at Babrala in Uttar Pradesh to 1.5 million tonnes per annum (TPA). The company has instead decided to re-route to other ventures the funds mobilised for the project. Tata Chem had intended to carry out a major expansion programme of the Babrala unit but later decided to put off the plans in view of the unfavourable administered pricing regime for urea, company sources told PTI.

Compaq, Digital Equip deal
MUMBAI, April 27 (UNI) — Digital Equipment (India) Limited is selling off its domestic computer products and services business to Compaq Computer (India) Private Limited for a cash consideration of Rs 83 crore plus a non-comete fee of Rs 5 crore. This is as part of restructuring exercise following which digital would focus on software and services exports, Digital Managing Director Som Mittal told newspersons here today. Mr Mittal said the company will have over Rs 150 crore cash resources which can be deployed to fund future growth. It will be the country’s largest listed software and services exports company for multinationals.

Nagarjuna Fert to pay 20 pc
HYDERABAD, April 27 (PTI) — Nagarjuna Fertilisers and Chemicals (NFCL), the flagship company of the Nagarjuna group, has achieved a turnover of Rs 1,214.54 crore, posting an increase of 53 per cent against Rs 795.88 crore in the previous year. The company has earned a gross profit of Rs 522.08 crore during 1999 as against the previous year profit of Rs 281.92 crore, profit before tax for the year was Rs 160.60 crore as against Rs 130.78 crore in 1998. The Board of Directors at its meeting held today recommended a dividend of 20 per cent as against 18 per cent last year.

P&G divests Mediker business
MUMBAI, April 27 (PTI) — Procter & Gamble India Ltd (P&G) has divested its Mediker business (anti-lice treatment shampoo) in favour of Marico Industries for Rs 10 crore. “The divestment is a result of a re-look at businesses which indicated that Mediker did not fit with the long term strategic plans of P&G in India”, a statement here said. With effect from July 1, 1999, Marico would also distribute some of P&G brands such as “Old Spice” and “Clearasil”.

Copeland to double production
Tribune News Service
NEW DELHI, April 27 — Kirloskar Copeland Limited today announced plans to double its manufacturing capacity for commercial refrigeration condensing units. At present, the joint venture company has capacity to make 10,000 units annually at its facility in Karad, about 160 km south of Pune in Maharashtra, said Associate Vice-President P.S. Damle.

Philips to sell components arm
MUMBAI, April 27 (PTI) — Philips India Ltd (PIL) will sell its non-ceramic passive components business to B. C. Components Pvt Ltd for Rs 32.5 crore, a PIL statement said here today. Philips has decided to divest its non-ceramic passive components arm in view of its parent company Royal Philips Electronics’ global strategy to focus on ceramic components for use in high volume electronic applications, according to a company statement here today. B. C. Components India is the proposed subsidiary of B. C. Components International B.V, the Netherlands.

Restructuring Kesoram unit
CALCUTTA, April 27 (PTI) — Kesoram Industries Limited, the B. K. Birla-group controlled diversified company, has engaged the services of leading management consultancy firm, Ernst & Young, to suggest ways for restructuring its closed textile unit. A senior Kesoram official told PTI today that the company board had approached Ernst & Young for possible restructuring of its textile unit, which had been running into losses for the last three years. The Kesoram management claimed that the textile unit, which employed nearly 3,800 workers was rendered unviable due to high energy costs.

Sakthi Fin downgraded
NEW DELHI, April 27 (PTI) — ICRA has downgraded the rating to Sakthi Finance Ltd (SFL) Rs 10 crore fixed deposit and non-convertible programme from “MA+” to “MA-” indicating adequate safety but marginal decline in ability for timely servicing of principal and interest.

Arvind Mills goes live with SAP
BANGALORE, April 27 (PTI) — The Arvind Mills Limited (AML), a leading denim manufacturer in the country, has gone live with the first complete Systems Applications and Products in Data Processing Pvt Ltd (SAP) Mill products implementation, covering the full textile manufacturing process from cotton to finished fabric. The SAP Mill products for textile manufacturing was configured and developed by SAP India for AML.

Tag Fashions net jumps 203 pc
NEW DELHI, April 27 (UNI) — Tag Fashions has recorded a 203 per cent jump in the net profit to Rs 2.5 crore in 1998-99 as compared to last year while the total turnover of the division has gone up by 56 per cent during the same period to Rs 25 crore. While the company’s leather garments for the Creme De La Creme under the “Made in India” label have been accepted in the USA, huge quantities of leather garments are also being sold in the fashion-conscious markets of Europe. In 1998-99, the company exported one lakh pieces of leather garments.

Surya Roshni net up 16 pc
NEW DELHI, April 27 (PTI) — Surya Roshni Ltd (SRL) has registered a 16.11 per cent hike in its net profit at Rs 12.83 crore in the year ending March 31, 1999 as compared to Rs 11.05 crore achieved in the previous year. The sales of Surya Roshni increased by 12.36 per cent to Rs 710.24 crore in the year 1998-99 from Rs 632.09 crore in 1997-98.

PFC cuts rates
Tribune News Service
CHANDIGARH, April 27 — The Punjab Financial Corporation has reduced its lending rates on fresh advances. The interest rates to be charged for SSI units upto Rs 2 lakh will be 13.5 per cent and for loans above Rs 2 lakh the rate will be 15 per cent p.a. The interest rates for assistance under technology development and modernisation scheme and quality certification under ISO-9000 series schemes have also been pegged at 13 per cent p.a.

Venture capital
Tribune News Service
CHANDIGARH, April 27 — To popularise the use of venture capital in high-tech areas like informatics, bio-technology and agri-business, the Centre for Technology Development, Bangalore, Risk Capital and Technology Finance Corporation Ltd., New Delhi, International Management Institute, New Delhi, and Technical Teachers Training Institute, Chandigarh, are jointly organising a workshop here tomorrow in the Conference Hall to TTTI 8.30 a.m. onwards.

Sales tax
From Our Correspondent
JALANDHAR, April 27 — The Finance Minister, Capt Kanwaljit Singh, has assured the leather associations to consider withdrawal of sales tax on merit. A delegation of various associations met the Finance Minister yesterday in Chandigarh. The Punjab Budget for 1999-2000 has proposed to levy sales tax of 2 to 4 per cent on raw skins and hides. The imposition of sales tax will adversely affect the leather industry.

Gold falls
NEW DELHI, April 27 (PTI) — Gold prices retreated on the bullion market today on lack of buying support coupled with lower overseas advices and closed with losses. The quotations: Silver .999 (ready) 7720, delivery 7700, coins buyer 10,400 and seller 10,600. Standard gold 4350, ornaments 4200 and sovereign 3750.

Acrylic fibre
Tribune News Service
NEW DELHI, April 27 — The Forum of Acrylic Fibre Manufacturers has stated that the domestic industry continues to be troubled by dumped imports. The forum has brought to the notice that the domestic industry had filed a review petition on April 7 after the Anti-Dumping Directorate reopened the investigations to the alleged dumping of acrlylic fibre by manufacturers of Thailand.

Window ACs
Tribune News Service
NEW DELHI, April 27 — Jainsons Aircon (India) Ltd has introduced electronic digital system window ACs with cordless remote control facility. Available in one ton, 1.5 ton and two ton the ACs come with features like time delay relay,fuzzylogic control, timer, safety lock and sleep function.