Economy upbeat despite Kargil, sanctions: PM
NEW DELHI, Aug 15 — Mr Atal Behari Vajpayee said today the economy has emerged stronger despite the Kargil operations and economic sanctions after the Pokhran tests, with the growth rate rising to 6 per cent and inflation down to an unprecedented 17-year low.

IDBI scripts growth plan
MUMBAI, Aug 15 — The Industrial Development Bank of India has shaped an ambitious “vision 2005” strategy to propel its growth in the new millennium and map its metamorphosis from a purely term-lending body into an integrated financial powerhouse.

M.S. Oberoi turns 101
NEW DELHI, Aug 15 — Rai Bahadur Mohan Singh Oberoi, who established the Oberoi hotel group, turned 101 today.

Saving computer data
HAMBURG, Aug 15 — Losing computer data is every PC user’s nightmare, but a few tips can help you to avoid the worst if an emergency arises.

Computer for blind in four years
OLDENBURG (Germany), Aug 15 — Computer scientists in Germany are developing a new computer system to help blind and partially sighted people use the Internet more easily.

Inflation up at 1.62 pc
NEW DELHI, Aug 15 — After touching a two-decade low, the inflation rate shot up 0.43 points to 1.62 per cent for the week ended July 31, mainly due to a rise in prices of food and fuel.

Computorium to be set up in Bangalore
NEW DELHI, Aug 15 — Global infotech majors and the Government of Karnataka will together set up a computorium, the first of its kind in India, at Bangalore to showcase permanently the development, evolution and latest trends in the industry with an initial investment of Rs 40 crore.

Asia will grind to a halt due to Y2K

TOKYO, Aug 15 (AFP) — Large swathes of Asia will pull the plug seconds before the dawn of 2000 — stopping planes, trains, and even weapons systems — to combat the computer-crippling millennium bug.

Attempts to deprogramme the glitch vary across the region, but many countries will go back to basics and simply switch off critical systems as clocks tick towards midnight on December 31.

Fingers crossed, they will turn everything back on minutes into the new millennium. And if things do not work, Asia should be prepared, just.

In India, for example, some state power suppliers have failed to properly address the computer problem, officials said, and because different companies were linked, lights could go out in a domino effect.

“For example, if Haryana state suffered a Y2K-related outage, it could shut down the whole grid for the entire northern region,” said Confederation of Indian Industry Senior Director Dilip Chenoy.

In Malaysia, transport bureaucrats have already been equipped with a contingency plan recovery kit, containing a candle and old-fashioned rubber stamps for counter staff.

No one is sure what might go wrong if computers mistake the year 2000 for 1900, a glitch known as the year 2000, or Y2K, bug. The fear is that many systems will simply shut down.

In South Korea, officials are sweating over the possibility of an accidental launch by North Korea’s ageing Soviet-built weapons systems. They have asked Russia for clarification.

Thailand will shut down its missile computers to avoid such a possibility. “This will make it impossible to have an accidental firing of missiles which are controlled by computer,” Major General Kharavuth Khemayodhin told AFP.

Japanese tourists are not entirely reassured. Japan Travel Bureau Inc., one of the world’s biggest tour agencies, has said it will not book any planes to be in the air at the critical moment.

Singapore Airlines Ltd. Has said its own planes are fine, but is ready to suspend some routes if it cannot guarantee smooth ground control.

Because Vietnamese computers will not be ready in time, the two national airlines have been ordered to train pilots to fly without radar by November 30.

Meanwhile, East Japan Railway, the biggest railway company in the world, will grind all the trains to a halt just before midnight and keep them there for 10 minutes “just in case”, said a spokesman.

China will not say how it is coping. “There will definitely be precautions,” was all one official from the country’s leading bug-fighting group would tell AFP.

Japan, the world’s second-biggest economy, admits preparations are sketchy, with hospitals a major headache and lingering concerns over even water and power.

Central banks around the region are also stashing away large reserves of cash — $ 330 billion for the Bank of Japan alone — in case of a systems break-down or a public run on reserves.

The biggest stock exchanges have also said they will be ready.

But some of Asia’s poorest countries are hoping that, for once, lack of money might pay off.

In Bangladesh, import duties on computers were only lifted last year, so most are new models, already prepared for Y2K, and they expected to survive the new millennium intact.

Myanmar’s ACE Computer Systems chief Thein U said: “Since we do not as yet have a nationwide network of any kind, Y2K will have little or no effect here.”

‘Bijlee’ auto in Delhi soon

NEW DELHI, Aug 15 (PTI) — India’s first battery-operated three-wheeler “Bijlee”, developed by Mahindra and Mahindra (M&M), will soon start plying on Delhi roads.

As per an (MoU) signed by the Mahindras, the Delhi Energy Development Authority (DEDA) and Skyline Automobiles, 10 such 10-seater three-wheelers will ply as “maxicabs” on two selected routes for a period of six months on a trial basis.

After successful completion of trial-runs, more such cabs would be allowed to ply on Delhi roads, DEDA Director and Special Transport Commissioner of the Delhi Government M.P. Tyagi told newsmen here.

Bijlee, having a price tag of about Rs 2 lakhs, including two batteries, can cover about 90 km in one charge and also climb over flyovers with a full load of 10 people, M&M Executive Director and President Alan Durante said.

The batteries need to be recharged after every 90 km and take around eight hours for charging. The running cost would be about 50 paise per km, he said.

The vehicle, which has a maximum speed of 40 km per hour, would be soon launched in Lucknow and Kathmandu, he said.

Bijlee would not need a permit from the government as it was based on an alternative green fuel, Tyagi said.

Bullet-proofing

Mahindra & Mahindra has joined hands with Plasan of Israel for bullet-proofing of passenger vehicles in India.

M&M has formed a new company called Mahindra Specialities Ltd for bullet-proofing and providing other customised services to individuals, Durante told newsmen here.

The company would undertake conversion of any passenger car or utility vehicle into a bullet-proof vehicle from AK-47 rifles, he said.

For bullet proofing, instead of steel, another material called “composites” would be used for ballistic carpets (floor of the vehicle) and body of the vehicle, Plasan Vice-President (Marketing) Oded Sheshinski said.

“At the movement we have technical arrangement with M&M but could think of forming a joint venture company in future, once volume goes up,” Sheshinski said.

Plassan is also in talks with other Indian manufacturers for similar tie-ups for commercial vehicles but has not finalised anything yet, he said.

Economy upbeat despite Kargil, sanctions: PM

NEW DELHI, Aug 15 (PTI) — Mr Atal Behari Vajpayee said today the economy has emerged stronger despite the Kargil operations and economic sanctions after the Pokhran tests, with the growth rate rising to 6 per cent and inflation down to an unprecedented 17-year low.

Addressing the nation from the ramparts of the Red Fort on Independence Day, Vajpayee said India has also dispelled all fears of a setback to the economy following the East Asian crisis that had engulfed several countries by achieving strong economic fundamentals.

While agricultural production had crossed an all-time high of over 200 million tonnes in 1998-99, the current foreign exchange reserves had touched over $ 30 billion and the industrial growth was showing a recovery, he said.

“When the sanctions were imposed it was being asked whether we would be able to face them, whether we will overcome this crisis. Today I can confidently say the sanctions have lost their effect and have become a thing of the past. We have tackled the situation in such a way that they have not affected us,” he said.

Despite the Kargil operations, Indian companies have been able to enhance their cumulative market value to Rs 2 lakh crore, Vajpayee said, adding that in spite of the hurdles, the country has emerged stronger on the economic front.

“While the sensex in the country’s stock exchanges has reached a new record, the companies have increased their market value to Rs 2 lakh crore despite the Kargil conflict,” he said.

The cement availability for house construction has gone up by over 22 per cent, he pointed out.

Congratulating farmers and farm scientists for their impressive performance on the agriculture front, Vajpayee said the Government has also successfully introduced the crop insurance and credit card schemes for farmers.

“The credit card, which was confined to a select groups is now available for the people living in villages and far-flung areas and people in these areas have been able to utilise this facility,” he said.

Vajpayee said it was unfortunate that the funds that could have been spent for the nation’s economic and social development had to be used for facing armed conflicts.

“I dream of a nation which is free of poverty, hunger and insecurity,” he said adding “if the economy is not strong we cannot face the world.”

The Prime Minister called for building an economy which brings in balance development and growth.

IDBI scripts growth plan

MUMBAI, Aug 15 (PTI) — The Industrial Development Bank of India (IDBI) has shaped an ambitious “vision 2005” strategy to propel its growth in the new millennium and map its metamorphosis from a purely term-lending body into an integrated financial powerhouse.

The master plan, charting the FI’s phased future course for the long-term and the near-term, was finalised last weekend based on reports submitted by five internal working groups, constituted two months ago.

The long-term plan envisages IDBI entering a variety of new businesses like commercial and investment banking, cross-border debt and equity investment, international loan syndication, insurance, advisory services, venture capital, securitisation and mortgage finance.

Some of these would need amendments to the IDBI Act itself, either by way of notification or via direct involvement of the Reserve Bank of India, and the financial institution (FI) had already taken up the matter with the Ministry of Finance, senior IDBI officials told PTI.

The near-term strategy, which fits in as Phase I of the long-term, would see IDBI adopt a host of innovative products on both asset and liability sides and apply new business initiatives to bring down cost of funds.

M.S. Oberoi turns 101

NEW DELHI, Aug 15 — Rai Bahadur Mohan Singh Oberoi, who established the Oberoi hotel group, turned 101 today.

The boy from a remote Punjab village of Bhaun started his career as a clerk in the Cecil Hotel of Shimla. Displaying rare business acumen. Mr Oberoi took little time to change his status from an employee to that of an employer. The Cecil is also part of the Oberoi chain today.

“The hotel industry must change to keep pace with the needs of the next millennium,” the father of the Indian hotel industry, Mr Oberoi told The Tribune.

“If the industry hopes to compete, it must adapt to the requirements of the time,” he said.

The 6,855 employees of the Oberoi chain planted a sapling each to mark the birthday of their Chairman.

The Oberoi Intercontinental in Mumbai was established in 1965 and to this date it is the discerning choice of travellers and visitors from all over the world. Later, he established the Oberoi Maidens and then the Oberoi in the Capital.

“I have no regrets. I am satisfied with my life. I want the industry to grow, compete and satisfy the needs of the customers,” were the words of advice he shared with others on his birthday.

A man known to keep pace with the times Oberoi is today expanding his business even further by branching into the budget hotel segment. And, the establishment of “Novatels” across the country is an attempt in this regard.

Saving computer data

HAMBURG, Aug 15 (DPA) — Losing computer data is every PC user’s nightmare, but a few tips can help you to avoid the worst if an emergency arises. If it is a physical problem that has made the hard disk lose data, the computer should be switched off straight away and professional help sought immediately, IBAS Deutschland, a Hamburg-based data rescue specialist, advises.On no account should the user try repeatedly to restart the computer, as this could quickly make the problem worse. Data rescue should be planned carefully and calmly. It is helpful to have a back-up copy of the lost data. The hard disk should never be opened by an amateur, and on no account should the operating system be re-installed, as otherwise existing data would no longer be accessible, warn the IBAS experts. Users should not use automatic data-rescue software, they say, because such tools cannot deal with physical problems and only make matters worse.

MTNL, Hoechst prospects bright

MTNL: A leading player in the telecom industry, Mahanagar Telephone Nigam Ltd (MTNL) holds a licence for basic services in Mumbai and Delhi. With the decontrol of the industry and private sector companies expected to venture into telecom soon, the company is planning to restructure its operations. MTNL now plans to lay emphasis on quality and consolidate its leadership position. On the financial front, the company can boast of a impeccable track record. The company is planning to retain customers by offering them extended services like call waiting, call transfer, abbreviated dialling, etc. The new services offered could enable it to combat the private players. Thus, discerning investors could continue to remain invested in this company.

Hoechst Marion Roussel: Hoechst Marion Roussel (HMR) is a 51 per cent subsidiary of Hoechst Marion Roussel, Germany, has been witnessing a lot of ups and downs on the bourses recently. After receiving approval from the FIPB, the parent company applied to SEBI for exemption from making an open offer as, it contended the purchase of shares from UB was essentially an agreement between the two promoters of the company. SEBI, however, felt that an open offer was inevitable as the transaction would be a secondary market operation. Hence, the HMR scrip tumbled, discounting the recent developments which will deter the parent from raising its stake further. Till recently a diversified company with a presence in agro-chemicals and animal healthcare besides pharmaceuticals, HMR is now focussing on pharmaceuticals. This is a apart of the global restructuring of operations by the parent. In 1994, HMR hived off its agro chemical business. With its focus on the pharmaceutical business, HMR proposes to introduce four products in the anti-epileptic, oral anti-diabetic, glycopeptide and fourth generation cephaloaporin segments and also plans to set up a plant in Goa to manufacture tablets. It made a successful foray into the anti-TB market in 1997, with the introduction of Rifater and Rifadin. The company has, however, discontinued the manufacture of Baralgan, an anti-spasmodic drug, after a government had suspended the manufacture of all fixed dose combinations of analgin. Being one of the leading brands, the discontinuation of the production of Baralgan will affect HMR’s sales and profits. The company, however, plans to introduce a drug to take advantage of the Baralgan brand name. The long term prospects of this company too appear to be quite satisfactory.

Parke-Davis (India): Parke-Davis (India), which is a subsidiary of Parke-Divis, USA. manufacturers bulk drugs and pharmaceutical formulations. It markets a wide range of formulations, covering the major therapeutic segments. Some of the well-known brands marketed by the company are, Abdec (multivitamin) Benadryl (cough Syrup), Caladryl (skin lotion), Chloromyectin (antibiotic), Ferradol (multivitamin and iron), Gelusil and Zyments (anticids), Listerine (mouthwash) and Waterbury’s compound (tonic). PDIL has restructured its marketing function into two major areas pharmaceuticals and consumer healthcare. The former will concentrate on ethical products whereas the later will concentrate on the well-known brands. Gelusil, Benadryl and Ferradol. Only about 5 per cent of PDIL’s sales come from price controlled products. Only new research-based products are likely to be introduce through the parent’s 100 per cent subsidiary. And for many more years, the Indian market will be largely dominated by the old products themselves. The company’s manufacturing units are located in Sakl Naka (Mumbai) and Hyderabad. In anticipation of the money from the sales of the Saki Naka plant, the company has invested around Rs 33 crore in setting up a plant for the parent’s 100 per cent subsidiary, by resorting to short term borrowings. This have not been taken well by many market watchers. However, it must be noted that the company will get Rs 6.8 crore as lease rental which, in effect, gives around a 20 per cent assured return on investment. Moreover, it will enjoy benefits of tax shelter on account of depreciation. (The parent’s 100 per cent subsidiary is reported to be marketing losses and is expected to continue to do so in the next couple of years, mainly due to heavy marketing expenditure and is therefore unable to enjoy the tax shelter offered by depreciation. This seems to have promoted this peculiar arrangement). About the short-term borrowings and the jump in interest cost, it may be noted that,as soon as the Saki Naka plant sell off imbroglio is sorted out the sales proceeds will be enough to repay all the borrowings and leave enough money for further growth through brand acquisitions, etc. The long term prospects of this company too seem to quite bright.

Order hits Cipla, Dr Reddy’s Lab

NEW DELHI, Aug 15 (PTI) — Wockhardt, Lupin Chemicals and Lupin Lab are expected to benefit from the increase in the prices of many drugs announced under the Drug Price Control Order (DPCO) by the National Pharmaceutical Pricing Authority (NPPA) last week, say analysts.

The upward revision of about 25 per cent in the prices of proxyyon and Spasmaproxyvon capsules and over 8 per cent increase in two other formulations will increase Wockhardt’s turnover by about 3 per cent contributing an additional Rs 10 crore to the company, said Vandana Gangwar, pharma analyst with ICRA.

The 2 per cent increase in the price of Rifampicin will mean a lot for Lupin Chemicals, whose 99 per cent of the turnover comes from the bulk drug production of this molecule, he said, pointing that the company was the second largest producer of this life saving drug in the world.

Lupin Lab which sells anti-tuberculosis drug Rafimpicin will see its turnover surging by at least Rs 1 crore just because of the over 2 per cent upward revision of this formulations, said another analyst with Kotak Mahindra.

Meanwhile, the worst to be hit by the order will be Dr Reddy’s Lab, Cipla and Arbindo Pharma since the prices of some of their leading brands have been fixed substantially lower.

Slashing of the prices of Cipla’s Neutrolin capsules and tablets by 43 and 75 per cent respectively will hit the company to a certain extent.

The NPPA had last week revised the prices of 28 formulations of 16 companies and fixed prices for four new drugs introduced by three other companies.

The prices of popular Bacelac capsules being produced by Dr Reddy’s Labs and Pfimex have been slashed by 39 per cent, while the price of Sporovit capsules of Arbindo Pharma has been cut by 36 per cent.

Arbindo Pharma is also hit by the cut in the prices for its Lacto capsules by almost 67 per cent.

The new drugs for which prices have been fixed by the order include Lactocom Forte capsules of Cadila Pharma, Calron capsules of East India Pharma and Fucibet cream of Ranbaxy.

Although the new prices are generally of non-ceiling in nature, in the case of Rafampicin it has been fixed as ceiling price since it was considered to be a life saving drug.

This is the first time in the recent past that the price of anti-tuberculosis drug Rifampicin has been revised upward.

Rockland Leas

I invested Rs 70,000 in 23, 24 and 23 secured non-convertible debentures of Rs 1,000 each of Rockland Leasing Limited in the name of myself, my wife Mrs Raj Lal and my son Bhupesh Kumar under Folio No 14235, 14236 and 14268 for 18 months maturing on 15.4.99 and 1.5.99 respectively. I haven’t received the maturity amount despite several reminders.

Bishan Dass
Ludhiana

Prudential Cap

I deposited Rs 10,000 with Prudental Capital Market, Jobaco House, Old Court, Calcutta on 1/10/96 for one year and they issued advanced cheque for Rs 10,000 and 1607 vide cheque No 238492 and 148302 of 1/10/97. On Maturity I sent the cheque for clearance through bank, but received back with remarks insufficient amount in his credit. I approached the company and they asked to send the original cheque. I send it both. Now two years has been passed neither any reply nor any payment has been made so far.

Om Parkash Arora
Ambala Cantt

DCM Fin

I invested Rs 10,000 in debentures of DCM Financial Services Ltd (DF No 201610 certificate No 1933) which were due for redemption in May ‘98. Duly discharged certificates were sent in May ‘98. I have neither received any interest and nor principal.

Hardish Kaur
V&PO Sahlon, Nawanshahr

FSI Co

I deposited a sum of Rs 2,880 with Favourite Small Investment Co., 83, Park Street, Calcutta-700016, on 7.9.1981 for five years and its maturity date was 7.9.1986. On 13.11.1986 I deposited the original documents (Policy certificate No 893934/81, affidavit, application form etc.) to the Yamunanagar branch of the company. I have written several letters to the company for payment but till date neither payment nor any reply has been received.

Shashi Kant Sharma
Chandigarh

by J.C. Anand
Election fever may down sensex

THE stock market continues to drift lower, though during the last fortnight, the Sensitive Index was lower only by about 1 per cent. But indications are that during this fortnight too, the drift would extend. The election fever is already gripping the public and it appears that both the investment and trading activity on the stock exchange would be affected.

There is another reason too for my view about the possible decline in the market activities during the coming months. A number of astrologers have presaged very bad days for our country in the coming months due to the malevolent influence of Saturn. Some of them have indicated that there may be a war and a proclamation or emergency. Even the election process may be disrupted.

I, of course, do not believe in astrology and think that nothing of the forebodings would come true. But there are millions of people, with stock exchange traders and investors forming a sizeable part of them, who put faith in astrological predictions. It is therefore a rational deduction on my part from the possible irrational behaviour of traders and investors that during these months the market activity would decline.

When one turns to the available economic and statistical data, there are clear indications that the industry is now doing well and except for a few sectors like textiles and steel, there is a definite turn-about in industrial production. A recent CII study, based on feedback from its members and affiliated industry associations, 20 segments recorded a growth of more than 20 per cent, 41 segments grew by more than 10 per cent and 45 segments by 0 to 10 per cent. Only 14 segments recorded a negative growth during April-June, 1999.

The highest growth was recorded in software (56 per cent). Medium and heavy commercial vehicle production as well as colour TV production were up by 43 per cent and 42 per cent, respectively. Automobile ancillaries and the cement sectors of industry are also doing very well. The capital goods sector and the textile industry are still in a bad condition.

This study should provide good indicators to investors as to where to invest for long term gains. I do not expect short-term gains during the next two months or so even in sectors which are now performing well. But during the last fortnight, GKN Invel Transmission, Goetze India, Sundaram Fastners, and many cement scrips have moved up significantly on the stock market.

There are now some indications that the present Lok Sabha elections would provide a relatively stable government to our country. Two opinion polls conducted separately, one by India Today Insight and the other by DRS-T-Times, have indicated that the BJP and its allies would win from 322 to 336 seats in the Lok Sabha. The Congress and its allies may have to content themselves with 132 to 140 seats. The vote percentage of the BJP-allies block is likely to be from 41 to 43 per cent and that of the Congress and its allies 28.7 per cent.

In case, the industrial revival continues and the country is led by a a relatively stable government, there is no reason why the Sensitive Index should not cross 5000 points in October-November. Wise investors should pick up good and well-managed scrips during the August-September for significant appreciation and gains. It is time that some good scrips should be placed on the watch list and picked up when the market prices move down to attractive levels.

Some of the scrips recommended in this column during last six months or so have done very well. Sterlite Industries had been recommended at Rs 150 or so, and later after a fortnight at Rs 242. Now it is quoting around Rs 355 or so and it can be recommended again for further gains. I except this scrip to cross Rs 450-500 range in the later part of the next financial year. It has great potential for appreciation and little risk of any major decline. Those who have already invested in the scrip should hold on to it.

Similarly, Global Tele-systems, Cyber Tech, Modi Xerox have done well. The same may be said of Vikas WSP and Hindustan Ink. Vikas WSP has great future and should be retained.

Some other shares which appear to me to be under priced are: Glaxo, Novarties, Hoechst Marion.

by K.R. Wadhwaney
Fare war hurts airlines’ health

A heavy discount on certain routes has played havoc with the economy of Indian Airlines, Jet Airways and Sahara Airlines.The situation has nosedived because three commercial outfits have been unable to reduce the overhead expenses. The salaries and perks for cock-pit crew and cabin crew remain unaltered. Similarly, expenses on fuel remain the same. There are several other areas on which airlines have been unable to economise. As a result, there is a considerable panic among the operators who are looking for a face-saving device so that they may raise fares for their survival.

The competition, according to analysts, is essential but it should not be spiteful to upset the economy. The operators will sit together to come out of this uncalled for mess. It is learnt that one private operator is losing money in the bargain and, despite losses, it is offering more concessions and facilities than the two operators. This act may prove suicidal for the carrier.

Regional flights: While IA has won the first round in the fare war, it now faces challenge from its competitors, who have decided to buy small aircraft to operate on regional routes. While Jet Airways has gone on record saying that it will operate flights from October 15, Sahara plans to operate flights from November 15. These airlines will be operating leased aircraft on feeder routes.

Indian Airlines has, however, reservations to go in for small aircraft and its plans can only materialise after elections and formulation of the new government.

New manager: Baba Devani has been appointed the new Commercial Manager for World Cargo in South Asia by British Airways. Based in Gurgaon, he will be responsible for airline’s cargo activities in India, Bangladesh, Nepal, Sri Lanka and Pakistan.

Baba, 30, replaces Andrew Walsh who has moved to Dubai as Service Delivery Manager in the Middle East, Africa and South Asia.

Bird hit: Come monsoon, the incidence of bird hit to aircraft has increased. The Airports Authority of India is taking measures but these are not enough to reduce the incidence.

The Delhi-Calcutta Airbus flight IC-401 with 192 passengers on board had to return following a bird hit on August 12. The engine blades of the Airbus were badly damaged and the aircraft had to be grounded for through inspection.

Computer for blind in four years

OLDENBURG (Germany), Aug 15 (DPA) — Computer scientists in Germany are developing a new computer system to help blind and partially sighted people use the Internet more easily.

Peter Gorny and a team at Oldenburg University, Germany, will develop an acoustic equivalent to the computer screen over the next four years.

The computer navigation system relies on the fact that blind people often have an especially well developed sense of hearing. They plan to replace command icons in standard word processors by special tones which sound at the click of the mouse.

A distinctive tone will also indicate movement of the mouse on the “user surface.’’

Inflation up at 1.62 pc

NEW DELHI, Aug 15 (PTI) — After touching a two-decade low, the inflation rate shot up 0.43 points to 1.62 per cent for the week ended July 31, mainly due to a rise in prices of food and fuel.

The annual inflation rate, based on the wholesale price index (WPI), had recorded a two-decade low of 1.19 per cent (Provisional) last week because of an abnormal rise in prices last year.

The inflation rate was higher at 8.78 per cent during the corresponding period last year due to an unprecedented increase in the food prices as a result of lower agricultural production.

The lower rate of inflation this year is mainly on account of a higher base last year when prices of food articles, especially vegetables had risen substantially.

While the index for vegetables during the current week is at 459.7, it was as high as 769.0 during the same period last year.

Computorium to be set up in Bangalore

NEW DELHI, Aug 15 (PTI) — Global infotech majors and the Government of Karnataka will together set up a computorium, the first of its kind in India, at Bangalore to showcase permanently the development, evolution and latest trends in the industry with an initial investment of Rs 40 crore.

“The computorium modelled on the lines of a planatorium will be the first permanent information technology exhibit in the country and would be commissioned by November 2000,” Sanjoy Das Gupta, Information Technology Secretary of Karnataka told PTI here.

He said the foundation stone for the technological marvel would be laid during the Bangalore IT. Com expo in the first week of November and the construction would be completed within a year.

“Major IT companies and the Government will pool in money and resources needed for the construction of the computorium,” Das Gupta said.