PAN not required to open bank accounts
NEW DELHI, Jan 27 — The government today notified changes in the income tax rules eliminating the need to quote permanent account number or general income register number for opening a bank account and relaxed similar provisions for payment by cheque or credit card making them more tax payer friendly.

'Corporatise statutory banks'
MUMBAI, Jan 27 — RBI has suggested a nine-point action plan to form the basis of the architecture of financial systems of the future that include corporatising all statutory banks and financial institutions.

Milkfed makes Rs 2.11 cr profit
CHANDIGARH, Jan 27 — Milkfed has earned a net profit of Rs 2.11 crore during 1997-98 as compared to Rs 1.21 crore during 1996-97.

Hyundai to export Santro NEW DELHI, Jan 27 — Hyundai Motor India Limited is all set to commence exports of its 999CC Santro to neighbouring countries in the first quarter of fiscal 1999-2000, a top company official said.

Subsidy cut in Budget likely
NEW DELHI, Jan 27 — A drastic cut in subsidy appears imminent in the coming budget as a measure to check the fiscal deficit which Finance Minister Yashwant Sinha described as an “intractable problem” at a parliamentary consultative committee meeting here today.

Swadeshi mela entry fee waived
NEW DELHI, Jan 27 — To give a boost to the Swadeshi Mela, the government has allowed free entry for visitors to the ongoing fair being held at Pragati Maidan here.

PAN not required to open bank accounts

NEW DELHI, Jan 27 (PTI) — The government today notified changes in the income tax rules eliminating the need to quote permanent account number (PAN) or general income register (GIR) number for opening a bank account and relaxed similar provisions for payment by cheque or credit card making them more tax payer friendly.

It will not be necessary now to send statement or copies of declaration to the Director, Income Tax, if a financial transaction relates to the opening of a bank account, a Finance Ministry release here said.

Under the amended rules notified by the Central Board of Direct Taxes (CBDT), the provision for filing such a declaration within one month from the date of financial transaction has been completely overhauled. Now it will be necessary only to send copies of declaration in Form No’s 60 and 61. This information is to be sent once in every six months ending September 30 and March 31 within one month from the end of the period of six months. There will not be any requirement to file a declaration to the tax authorities for a financial transaction if the payment is being made through crossed cheque or through credit cards.

Earlier, in case of payments by crossed cheque drawn on a bank or by crossed bank drafts, it was not mandatory to file a declaration in Form 60 or 61 and this provision has now been extended to payment through credit.

The requirement for NRIs to furnish copy of passport while filing it returns has also been removed, a Finance Ministry release said.

RBI: corporatise statutory banks

MUMBAI, Jan 27 (PTI) — RBI has suggested a nine-point action plan to form the basis of the architecture of financial systems of the future that include corporatising all statutory banks and financial institutions.

The plan is envisaged in the draft proposals contained in RBI’s discussion paper on harmonising the role and operations of development financial institutions (DFIs) and banks.

The draft proposals also urge for adoption of a consolidated approach for regulation and supervision whenever there is a bank, as a subsidiary of a DFI or in a conglomerate with a DFI, in view of the special status of banks in the financial sector.

Referring to both Narasimham Committee and Khan Working Group advocating mergers, acquisitions and diversifications, RBI said such steps are best achieved through flexibility in corporate environment (under Companies Act).

RBI stressed, the possibility of corporatising all statutory bodies engaged in purveying credit including state level institutions needs to be expedited and ultimately, in terms of institutions, there should be only banks and re-structured NBFCs.

Milkfed makes Rs 2.11 crore profit
Tribune News Service

CHANDIGARH, Jan 27 — Milkfed has earned a net profit of Rs 2.11 crore during 1997-98 as compared to Rs 1.21 crore during 1996-97. This was announced by Mr J.R. Kundal, Registrar, Cooperative Societies Punjab while releasing the annual report of Milkfed for 1997-98. Mr G.S. Babehali, Chairman, highlighted achievements of Milkfed.

Mr Kundal said the annual turnover of the federation along with its affiliated milk unions for the year 1997-98 is Rs 446.63 crore against Rs 397.15 crore in 1996-97.

Mr Amrik Singh, Managing Director, Milkfed said the milk plant, Mohali, has been awarded the national productivity award. This plant has also obtained an Integrated Systems Certification under ISO 9002 and IS 15000 (HACCP).

Hyundai to export Santro

NEW DELHI, Jan 27 (UNI) — Hyundai Motor India Limited (HMIL) is all set to commence exports of its 999CC Santro to neighbouring countries in the first quarter of fiscal 1999-2000, a top company official said.

The company has already shortlisted Sri Lanka, Bangladesh, Nepal and Pakistan as export destinations for the made-in-India Santro, HMIL President A.P. Gandhi told UNI here.

Subsidy cut in Budget likely

NEW DELHI, Jan 27 (PTI) — A drastic cut in subsidy appears imminent in the coming budget as a measure to check the fiscal deficit which Finance Minister Yashwant Sinha described as an “intractable problem” at a parliamentary consultative committee meeting here today.

Sinha, who has already indicated he is left with no option but to present a “hard budget”, appealed for an all-party consensus to bring down the fiscal deficit and borrowing by both state and central governments as they were putting pressure on the country’s balance of payments.

Cutting across party lines the Finance Ministry’s consultative committee members, who included Dr Manmohan Singh, agreed with Sinha that there should be a national consensus on critical economic issues like a cut in subsidies and reduction in interest rates.

Exports negative despite being up in December

NEW DELHI, Jan 27 (PTI) — India’s export growth continued to be negative during the first nine months of 1998-99 despite a 4 per cent rise in December, Commerce Minister Ramakrishna Hegde said today.

“Exports during December increased by 4 per cent. But for April-December, it is down by about 1 per cent (compared to the same period last year),” he told a group of reporters on the sidelines of an economic development conference here.

Imports during December were less compared to the same period last year, he said.

Earlier, inaugurating a seminar series at the Swadeshi Mela, Hegde said India would need to diversify its export basket to garner a larger chunk of global trade.

Expressing concern over the dismal export performance during the current financial year, he said export growth was not satisfactory “even this year”.

The problem had been compounded by the depression in many countries, which had resulted in world trade growth shrinking by 1 per cent.

Besides traditional items, India had shown its strength in sectors like engineering, electronics and software and more efforts were needed in expanding the export basket, he said.

The world had shown that a country’s economic development depended a great deal on exports, he said and exhorted Indian exporters to produce quality goods and ensure timely delivery for creating a reliable market.

Liberalisation did not mean that India should open its doors for allowing free entry of foreign goods.

But the country could not ignore the need for importing technology for development of its industries, he said.

S Gurumurthy, co-convener, Swadeshi Jagran Manch, called for an “intellectual departure” and fresh thinking about the model of development best suited for India.

Swadeshi mela entry fee waived

NEW DELHI, Jan 27 (PTI) — To give a boost to the Swadeshi Mela, the government has allowed free entry for visitors to the ongoing fair being held at Pragati Maidan here. Commerce Minister Ramakrishna Hegde has said this will encourage more visitors to see the fair open till January 30. At present, the India Trade Promotion Organisation collects an entry fee of Rs 10 for adults and Rs 5 for children.

Hindalco profit up 16 per cent

MUMBAI, Jan 27 (PTI) — Hindalco Industries Ltd has reported a 16 per cent increase in its profits for the nine-month period ended December 31, 1998, at Rs 424 crore as against Rs 365 crore in the previous corresponding period. During the period, the company posted a 21.9 per cent growth in sales to Rs 1,296 crore over the same period last year, according to a statement here. Gross profits stood at Rs 628 crore, 30.1 per cent higher than the profits of the previous corresponding period.

IDBI net crosses Rs 1,000 crore

NEW DELHI, Jan 27 (PTI) — The Industrial Development Bank of India (IDBI) has reported net profits of Rs 303 crore in the third quarter of the current financial year. The net profits in the first nine months ending December 31, ‘98 crossed Rs 1,000 crore mark to Rs 1,008 crore, IDBI said in a statement here. Income from operations in the third quarter was Rs 1,867 crore while for the nine month period it was Rs 5,490 crore. Overall sanctions during April-December registered a growth of 25.7 per cent to Rs 19,924 crore compared to Rs 15,856 crore in the corresponding period last year. The second tranche of IDBI Flexibonds-5 mobilised Rs 1,510 crore compared to the target of Rs 750 crore which was open for subscription between December 21, 1998 and January 15, 1999.

Eicher net rises 54 per cent

NEW DELHI, Jan 27 (PTI) — The light commercial vehicles (LCV) manufacturer Eicher Limited has posted a net profit of Rs 8.16 crore in the third quarter of the current fiscal, registering a 54 per cent increase as compared to Rs 5.29 crore in the same period last year. Eicher Ltd, the flagship company of Rs 950 crore Eicher Group, also recorded a 9 per cent jump in sales at Rs 157 crore during October-December 1998 as against Rs 144 crore in the corresponding period in the previous fiscal. However, the net profit of the company increased only marginally to Rs 21.14 crore during the first nine months of the current fiscal from Rs 21.04 crore in the same period last year. The company posted a net profit of Rs 26.84 crore in 1997-98.

United Phosphorus downgraded

MUMBAI, Jan 27 (PTI) — The rating assigned to Rs 40 crore commercial paper programme of United Phosphorus Ltd (UPL) has been downgraded by CRISIL from “P” to “P3”. CRISIL, in a statement here, said the revision in rating is based on UPL’s increased and high levels of short-term exposure to its loss-making subsidiary Search Chem Industries Ltd. This exposure has been backed by ICD borrowings and has affected UPL’s liquidity position, the rating agency said.

Hind Motors posts 11 crore loss

NEW DELHI, Jan 27 (PTI) — Hindustan Motors Ltd has reported a net loss of Rs 10.94 crore during the third quarter of the current fiscal. The net loss of the company, a flagship company of the G.P. Birla and C.K. Birla group, during the first nine months of 1998-99 was registered at Rs 10.81 crore. During October-December 1998, Hindustan Motors achieved net sales of Rs 274.8 crore. Net sales of the company for the first nine were Rs 749.62 crore.

J & K stall
NEW DELHI, Jan 27 (TNS) — The Jammu and Kashmir stall has won two awards at the recently concluded second India Tourism Expo 99 — the “best state government booth” and the “most comprehensive industry participation” awards.