SC quashes CBI probe order
Government asks Cogentrix to reconsider plans
NEW DELHI, Dec 13 — Within a week of Cogentrix’s decision to withdraw from the fast-track 1000 MW Mangalore Power Project, the Supreme Court today quashed a Karnataka High Court judgement ordering CBI probe into alleged kickbacks paid for award of the project paving the way for Centre to appeal to the U.S. Major to reconsider its decision.

Future cars to be office extensions
WASHINGTON, Dec 13 — The cars of the future would have hands-free telephony, including voice-activated dialling and other technological facilities — a virtual office on wheels, say experts.

Matiz to cost more from January
NEW DELHI, Dec 13 — Daewoo Motor India Ltd will hike prices of its small car Matiz by about Rs 20,000 in early January, a top company official said.

Dr Reddy’s Lab and Cheminor to merge
MUMBAI, Dec 13 — Hyderabad-based Dr Reddy’s Laboratories would become a Rs 800 crore company by next year and when another group company Cheminor Drugs Ltd was expected to be merged with it.

SC quashes CBI probe order
Government asks Cogentrix to reconsider plans

NEW DELHI, Dec 13 (PTI) — Within a week of Cogentrix’s decision to withdraw from the fast-track 1000 MW Mangalore Power Project, the Supreme Court today quashed a Karnataka High Court judgement ordering CBI probe into alleged kickbacks paid for award of the project paving the way for Centre to appeal to the U.S. Major to reconsider its decision. Shortly after the Supreme Court verdict, Power Minister P.R. Kumaramangalam not only asked Cogentrix and Hong Kong based China Light Power Company to reconsider their decision to pull out from the project but also promised to expedite counter-guarantee required for the project.

Cogentrix had on December 8 announced its withdrawal from the Rs 3,948 crore fast track power project, in which it had 60 per cent equity, citing delays in the government clearances and legal wrangles. The remaining 40 per cent equity is held by the Hong Kong company.

A Division Bench comprising Justice S. Saghir Ahmad and Justice S. Rajendra Babu allowed the appeals filed by Karnataka Government, Karnataka Electricity Board and China Light Power Company while setting aside the High Court order.

The Supreme Court judgement, which was reserved in January this year, dismissed the application filed by Arun Kumar Aggarwal.

Kumaramangalam said that the Apex Court’s decision has removed the last of the impediments for moving the proposal to the Cabinet for Government to stand counter-guarantee for the $ 751 million foreign loan component of the project.

The project was given techno economic clearance by the Central Electricity Authority in July 1996 and power purchase agreement (PPA) was executed between Manglore Power Company and Karnataka Power Transmission Corporation in November 1997.

After the confirmation for resumption of the project, the promoters would have to seek reaffirmation of the PPA in view of the changed cost structure, the Power Minister told reporters.

Somers, who met the Minister immediately after the Supreme Court verdict, said “any decision on re-considering on the pull out from the project will be taken by our boards in U.S and Hong Kong.”

The power project is one of the eight fast-track projects conceived in 1992 for which the Government had decided to give counter-guarantee as part of its policy to promote private and foreign investments in the power sector in view of the liberalisation of Indian economy.

The Minister said Rom Somers had apologised for not informing the Government before making public their decision to withdraw from the project.

Kumaramangalam said that he was optimistic about the future of the project and had included counter guarantee for it in his 100-day agenda announced on October 14 subject to the Supreme Court order.

Disinvestment policy ‘reckless’

NEW DELHI, Dec 13 (PTI) — Opposition members in the Rajya Sabha today launched a scathing attack on the Government, charging it with following a “reckless” disinvestment policy which they said “squandered” national resources.

Criticising the Government for using the disinvestment proceeds for meeting the fiscal deficit, CPI member Gurudas Das Gupta said this amounted to “selling the family’s silver to pay the grocer’s bill.”

Stating that the Central Government’s finance was in “shambles”, he said disinvestment was a “convenient tool” to mismanage the economy. The Kargil war had accentuated the financial crisis, he said initiating a discussion on a short duration discussion on the disinvestment policy.

Senior Congress leader Pranab Mukherjee was also critical of the “tardy” manner in which the disinvestment programme was being carried by the Government and said it should be more transparent and open.

Both Dasgupta and Mukherjee regretted the disbanding of the Disinvestment Commission in an attempt to make the disinvestment process bureaucratic.

Mukherjee wondered why the Government had failed to take any decision on the recommendations of the Commission which had submitted as many as 12 reports.

Attacking the Government for rushing into the recent international offering of GAIL shares, Dasgupta said the Government had lost Rs 1200 crore by selling 13.5 crore shares at an inappropriate time in the GDR market.

He suggested that the Government should set up a separate company for disinvestment of Government equity in PSUs to get better price.

Dasgupta regretted that the Commission’s recommendations were ignored and questioned the rationale of the Government in winding it up and setting up in its place a separate department that is to be headed by Arun Jaitley.

Dasgupta charged that the strategic sale of 25 per cent of government equity in Indian Petrochemicals limited (IPCL) was being carried out in a “break-neck” speed in an attempt to help Reliance which was striving to monopolise the petrochemical industry in the country.

With the acquisition of IPCL shares, Reliance Industry would control 85 per cent of the petroleum products, he alleged.

“This is a clear violation of law and national interest” he said.

Dasgupta wanted to know why Shipping Corporation of India was not accorded the Mini Navaratna status by the government.

Mukherjee said though the Commission had submitted 14 recommendations so far, the government had acted only on three of them. As the Commission being an advisory body, the Government should either accept or reject the recommendations but certainly not delay in taking decision.

Ramdash Aggrawal (BJP) said the disinvestment should not linked with the budgetary support. The Government should also fix as how many shares are going to be sold.

He said 50 per cent of the proceeds of the disinvestment should be used in raising capital. Dipankar Mukherjee (CPM) said his party was against disinvestment of profit making PSUs. He also wanted to know what is the position of the disinvestment fund as has been declared by the Government.

Govt short-sighted?

NEW DELHI, Dec 13 (PTI) — Finance Minister Yashwant Sinha and cpi veteran Gurudas Das Gupta today crossed swords in a battle of wits over broken spectacles and the Government’s disinvestment policy.

Beginning his reply to a heated short duration discussion on the disinvestment policy, Sinha said he was being handicapped as the right arm of his spectacles was broken. “Possibly due to the blows from my right,” Sinha quipped pointing to the opposition benches on his right, especially the Left parties, who made a scathing attack on the policy.

“So, the Minister agrees the Government is short-sighted” (on disinvestment policy),” the irrepressible Das Gupta returned, bringing the house down.

Send 30 pc of staff on paid holiday: CII
By Nirmal Sandhu
Tribune News Service

CHANDIGARH: The CII has made an interesting suggestion to downsize government and cut expenditure: send home 30 per cent of the employees — from the top to the bottom — on a paid holiday for two years. With the IT revolution and growing self-employment opportunities, many of them may take up more lucrative work and say goodbye to government service. This would reduce the government’s expenditure on overtime payments, telephones, transportation and other administrative matters, and may even bring about efficiency. The employees would have the option to return to their previous job after two years.

In an interview with Business Tribune here on Monday, Mr Tarun Das, CII Director-General, said this experiment had worked successfully in Brazil in the eighties when that country was faced with a similar problem. Cash-strapped northern States can lap up this idea.

The second initiative the CII has taken is to promote low-cost power projects in villages and towns. Power generators can be set up and renewable energy sources tapped. “About 22 per cent of power is lost in transmission. Small projects will obliterate the need to have transmission lines,” said Mr Tarun Das.

The third initiative the CII is taking is to hold a Sugar Expo in Delhi from March 2 to 5. About 50,000 sugarcane growers are expected to participate. “The government’s sugar policy is lop-sided. There is zero duty on sugar imports which hits the domestic industry, while the USA levies 100 per cent duty on sugar imports,” noted the CII Director-General.

What are the CII’s expectations from the coming Union Budget?

Mr Tarun Das, who was in Chandigarh to attend a wedding, said: “The Finance Minister must reduce the number of Customs duty slabs to three with the objective of ultimately having a single rate of Customs duty”. The advantages of a single rate of Customs duty — reduction in delays, an end to Customs classification and different interpretations of rules and removal or minimisation of corruption — far outweigh objections of the vested interests.

Similarly the number of slabs of excise duty be also reduced to three.

Secondly, the Finance Ministry must prepare and release for debate a draft of the promised Fiscal Responsibility Act so that the Act can be passed in the coming Budget session of Parliament.

Future cars to be office extensions

WASHINGTON, Dec 13 (PTI) — The cars of the future would have hands-free telephony, including voice-activated dialling and other technological facilities — a virtual office on wheels, say experts.

“People are turning their cars into extensions of their homes and offices” David Cole, Director of the office for the study of automobile transportation at the University of Michigan, told reporters recently.

J. David Power, President of J.D. Power and Associates, a Global market research firm based in California, said: “technology for the further computerisation of the vehicle, from the standpoint of safety and telecommunications, will grow in geometric proportions throughout the auto industry.”

Industry watchers said that autos of the future would have hands-free telephone, including voice-activated dialling that is capable of sending and receiving e-mail and faxes and that will allow motorists to teleconference in the midst of a traffic jam.

TRAI for 5 per cent revenue sharing

NEW DELHI, Dec 13 (PTI) — Telecom Regulatory Authority (TRAI) today recommended up to 5 per cent revenue sharing and a one-time fee of Rs 500 crore for the entry of private players into national long distance (NLD) communications, which is to be opened to private participation from the new year.

Announcing its recommendations on the opening up of NLD TRAI Chairman Justice S.S. Sodhi said an entry fee of Rs 500 crore has been fixed with a Rs 100 crore non-refundable portion to be paid in cash and the remaining as bank guarantee.

Besides, the 5 per cent revenue to be recovered from operators annually, the regulator also left an option to the government of levying a differential service tax.

Trai also recommended that the entry fee and revenue sharing were also applicable to the Department of Telecom services. Besides, it has recommended structural separation and accounting separation of long distance segment of the department.

The licence period has been fixed at 20 years with an option to extend by 10 years later.

On the number of players to be allowed, there was a difference in opinion among the seven-member body with one member recording his view for only two new players for the first five to seven years, while the majority favoured no restriction.

Opening up of the sector is consequent to India’s commitment during negotiations on basic telecom with the WTO and is expected to bring down the cost of long distance communications.

Justice Sodhi said: “As more players enter the segment, the cost of long distance telephony will come down.”

As per the proposed system, there will not be any bidding process and any player with a net worth of Rs 2,500 crore and experience in telecom sector can enter market by submitting blue print of its programme and paying the entry fee.

Of the Rs 500 crore entry fee, Rs 400 crore will be in the form of refundable deposit to be used as an incentive to ensure timely rollout of network.

TRAI has recommended only national level licences for the services to ensure adequate build up of infrastrucutre. A multiple tier system with regional and local operators might not offer optimum solutions, he added.

However, the regulator recommended resale of capacity by licencees only after three to four years of opening up of the sector.

Opening up of nld has also been stated in the National Telecom Policy (ntp-99), which said the sector would be opened for competition from January 1, 2000.

trai said that it would be mandatory on all access providers to provide interconnection to the NLD operators so that consumer could have the choice to make long distance calls through any NLD operator.

Interconnection will, however, be mutually negotiated by the service providers (subject to review and intervention by (TRAI) following the principles of non-discrimination, transparency and timeliness.

The new NLD service providers would not be allowed to set up STD public call offices (PCOs), and thus would continue to be the domain of access providers.

However, access providers will have to ensure that at every std-STD-PCO, the consumer is given the choice of selecting any NLD operator for the carriage of his long distance call, trai recommended.

According to trai, infrastructure providers may also enter the market as NLD operators on the condition they provide service through a separate legal entity and fulfil the selection criterion.

Leased line charges for NLD operators would be regulated separately by TRAI, he said.

Tariff revision on cards

NEW DELHI, Dec 13 (PTI) — The Telecom Regulatory Authority of India (TRAI) said today it would bring about a second round of tariff revision in the basic telecom services including local and long distance call charges to cut cross subsidies but declined to give any time frame.

“For effective and meaningful competition in the long distance segment in the interest of the consumers, TRAI has reiterated the need for further tariff re-balancing,” TRAI Chairman Justice S.S. Sodhi said.

Releasing recommendations on opening up of the National Long Distance (NLD) communications from January 2000, Justice Sodhi said that tariff revision could be either by direct TRAI intervention or through market driven means.

Both the Department of Telecom (DoT) and Mahanagar Telephone Nigam (MTNL) had lowered tariff for most of the services earlier this year as a result of TRAI’s recommendations on cost-based tariff in May.

DoT had protested the new tariff regime of TRAI saying it would lose about Rs 2,000 crore under the new dispensation but it finally adopted the changes.

Matiz to cost more from January

NEW DELHI, Dec 13 (PTI) — Daewoo Motor India Ltd (DMIL) will hike prices of its small car Matiz by about Rs 20,000 in early January, a top company official said.

The manufacturing cost of Matiz has gone up by about Rs 30,000 per car due to increase in material cost and improving quality and safety of the vehicle, but the company has decided to pass on only about Rs 20,000 to the customers, DMIL Deputy Managing Director B.S. Min told PTI.

However, he declined to say what the exact prices of the different versions would be after the hike.

The customers who have already booked Matiz cars by paying full amount, would get the vehicle at the existing prices, company officials said.

Dr Reddy’s Lab and Cheminor to merge

MUMBAI, Dec 13 (PTI) — Hyderabad-based Dr Reddy’s Laboratories (DRL) would become a Rs 800 crore company by next year and when another group company Cheminor Drugs Ltd (CDL) was expected to be merged with it.

“The turnover of the merged company will touch Rs 800 crore by next year (fiscal) and, when accounts of both the companies will be consolidated,” DRL Chairman Dr K. Anji Reddy told newsmen at the launch of a specialised portal for medical community “meditimes” here today.

Forex
US $ Rs 43.50/51
Stg £ Rs 70.58/60
Euro Rs 44.13/15
Yen (100) Rs 42.46/49

Indian Jaycee
PHAGWARA, Dec 13 (FOC) — Mr Mukhinder Singh of Phagwara has been elected unanimously the President of Indian Junior Chamber (formerly known as Indian Jaycees) at Kanpur.

Modi Telstra
CHANDIGARH, Dec 13 (TNS) — Modi Telstra, Calcutta’s cellular service provider announced the launch of India’s first wireless Internet access service through a mobile phone. Mr Barry Cooney, CEO, Modi Telstra, said that this is the ‘millennium gift’ from Modi Telstra to Calcuttans.

Baskin Robbins
CHANDIGARH, Dec 13 (TNS) — The franchisees of a multinational company namely Baskin Robbins ice cream observed one-day token strike against the policies and problems faced by the company. The strike was complete and franchisees of Jalandhar, Ludhiana, Amritsar, Chandigarh, Panchkula, Karnal, Sirsa and Jammu participated.

Satyam Info
CHANDIGARH, Dec 13 (TNS) — Satyam Infoway Ltd has launched a range of Satyam Online Internet access products with enhanced features. Satyam Online has also introduced Flexinet, a feature which will enable effective usage of the Net.

Designs Act
NEW DELHI, Dec 13 (PTI) — A Bill to extensively amend the century-old Designs Act with special provisions for the security of the country and the protection of industrial and registered designs was introduced in the Rajya Sabha today.