UTI declares 13.5 pc dividend on US-64
MUMBAI, July 2 — Unit Trust of India today announced a lower dividend of 13.5 per cent on US-64 notwithstanding its income of over Rs 2,179 crore, sufficient to declare a dividend of 16.5 per cent.

IPCL, Modern Foods to be sold off by Nov
NEW DELHI, July 2 — Public Sector units (PSUs) Indian Petrochemicals Ltd and Modern Foods will be sold off by November this year while the process of disinvestment of aluminium major Balco will be over by February 2000, a top official said here today.

Sports industry faces harassment
JALANDHAR, July 2 — The Sports Industry Forum has alleged that the State Government has failed to bail out the industry out of recession and is working against this small sector which generates employment in the State.

Santro sales cross 30,000
NEW DELHI, July 2 — The cumulative sales of the Hyundai Santro has crossed the 30,000 mark in the country.

Inflation may touch 1 pc

NEW DELHI, July 2 (PTI) — Steep fall in agriculture and manufactured goods in coming months is likely to push the inflation rate to a record one per cent by November, ICICI securities (I-Sec) has forecast.

But at the same time I-Sec warned that sharp fall in inflation rate could put commercial banks in difficulty in reducing their prime lending rates (PLR).

“If the trend in primary articles and manufactured products continue over the next few months, WPI inflation could drop to near one per cent,” I-Sec said in its latest debt market update.

It also said that inflation is likely to fall over the next few months as prices of fuel group items (still largely administered) are unlikely to be hiked ahead of the general elections.

On interest rates, it said many banks have cut their PLR by 1 per cent in March this year, but average deposit rates have not reduced a corresponding level resulting in a squeeze in spreads. Under these circumstances, banks would find it difficult to reduce their plr further.

It further said that higher inflation expectations would place real interest rates around 6 per cent.

This was the reason real interest rates have not increased as dramatically as the decline in reported inflation.

According to I-Sec, the wholesale price index (WPI) of all commodities would increase from 356.8 on June 12 to 363.1 by November 6 this year, i.e., 1 per cent growth on year to year (YOY) basis.

While for primary articles, YOY inflation in November is expected to be (minus) 1.6 per cent. For fuel group it would be 3.5 per cent and 2.3 per cent for manufactured goods.

I-Sec said that low inflation was due to high base especially of primary articles, furthermore, despite increase in international oil prices, a large portion of the increase has not been passed on.

It said after the elections, administered prices could increase again, and an economic recovery would also put an upward pressure on inflation.

VSNL to pay 80 pc

Videsh Sanchar Nigam Ltd (VSNL) today announced an increase of 36.9 per cent in its net profits during 1998-99 at Rs 1,325 crore (audited) on a turnover of Rs 7,175.6 crore.

VSNL had earlier published unaudited financial results in April which showed a net profit of Rs 1,341.3 crore in 1998-99.

The VSNL Board has recommended 80 per cent dividend on the equity shares. Last year VSNL had given 40 per cent dividend. The earning per share has gone up to Rs 139.47 against Rs 101.88 for the year 1997-98.

Commenting on the performance of the company, Amitabh Kumar, acting Chairman and Managing Director of VSNL said “we have now entered a new era in telecommunications. The lowering of international calling tariffs effective May 1, 1999, and the falling accounting rates worldwide, will position VSNL in a new slot in the coming year.”

During the year VSNL carried a traffic of 1,935 million minutes of telephone traffic in the year 1998-99 as compared to 1,685 million minutes in the previous year representing a growth of 14.84 per cent on year to year basis.

Rs 216 cr orders for L&T

Larsen and Toubro Limited (L&T) has bagged seven orders worth a total of Rs 216 crore from the Chennai Metro Water Supply and Sewerage Board for the second Chennai project.

The project aims at distributing the Krishna river water in Chennai.

A press release said L&T has been awarded four packages worth Rs 133 crore for laying water distribution pipelines.

Smithkline relaunches Boost

Smithkline Beecham today re-launched its health drink “Boost” targeting a sales turnover of Rs 100 crore in 1999 from its health food drink operations.

The company, with 10 per cent share in the domestic health food drink market, decided to re-launch the product using cricketer Sachin Tendulkar,who has been their brand ambassador for the past decade.

Nalco achieves Y2K compliance

National Aluminium Company Limited (Nalco) has joined the select group of Indian corporate houses in achieving Y2K compliance for its computer supported activities.

The compliance for such activities which comprised infrastructure, networking, commercial applications and embedded systems for process automation, had been achieved before the scheduled date of July 5 next, a Nalco release said.

Woodland

The Aero group will set up exclusive marketing showrooms overseas to enhance the share of export to 25 per cent in the company’s total turnover, a top company official said.

The Aero group, manufacturers of popular Woodland shoes and apparel will set up showrooms in Dhaka and the Middle East to start with, Mr M.L. Kalra, Director, Exports said. — Agencies

Govt revamps industrial plots policy

AMRITSAR, July 2 (UNI) — The Punjab Government proposes to set up state-of-the art industrial estates in major cities and towns in the State in order to give a boost to industry.

Taking part in a discussion on industrial scenario in the State organised by the PHDCCI here yesterday, State Industries Secretary Ramesh Inder Singh said that contribution of the state in this venture would be in the form of providing land to entrepreneurs.

These estates would be spread over 320 to 500 acres and basic infrastructure of roads, power, water, sewerage and other facilities would be provided prior to allotments of plots, he added.

The Industries Secretary disclosed that the allotment policy of industrial plots had been revamped and the government would no longer follow the age-old pattern of allotting plots through draw of lots. Plots would only be given to those who were really interested in setting up industrial units, he said in his address to a large number of leading industrialists gathered here from all over the state.

When his attention was drawn to the sagging textile industry, which is by and large based here, Mr Ramesh Inder Singh said that to boost the textile sector, the government had recently cleared a project relating to setting-up of an ultra modern textile city here, for which 300 acres had already been acquired and plots to interested textile entrepreneurs would be allotted soon.

Regarding suggestions by the PHDCCI that loss making public sector units should be restructured and converted into joint sector companies to be run by professionals, the Industries Secretary said that a proposal had already been mooted to have an industrial renewal fund both for the public as well as private sectors.

This fund would be made available to the sick units at very low rates of interest in order to pull them out of the red, he added.

Admitting that there had been a delay in providing the necessary infrastructure required for industrial development, he said that the government had set up an infrastructure development board for this purpose in collaboration with a private consultancy firm in certain priority areas.

Mr Ramesh Inder Singh said that once the Raja Sansi Airport here gets commissioned as an international airport, this border district would be developed into agri-export zone.

He said that a agri-quarantine station to be set up at Raja Sansi Airport had already been sanctioned.

He assured the entrepreneurs present at the meeting that all outstanding cases of providing subsidies to the industrial units would be cleared by the end of this current fiscal year.

The state government had earmarked rupees 45 crore specifically for disbursement in the current fiscal budget, he added.

UTI declares 13.5 pc dividend on US-64

MUMBAI, July 2 (PTI) — Unit Trust of India today announced a lower dividend of 13.5 per cent on US-64 notwithstanding its income of over Rs 2,179 crore, sufficient to declare a dividend of 16.5 per cent.

“The Board of Trustees, however, decided to offer only 13.5 per cent in line with the comparable returns of the market”, UTI Chairman P. Subramanyam said.

“The negative reserve balance of Rs 1098 crore as on June 30, 1998 has been wiped out and has turned positive by a few crores,” he told newsmen after the Board meeting.

This year’s dividend was totally tax-free compared to the pre-tax dividend of 20 per cent declared last year.

He said the sale price (Rs 13.50) and repurchase price (13.20) have been worked out as per the recommendations of the Deepak Parekh Committee report on US-64.

Total sales under US-64 was Rs 4,596 crore while repurchases was of the order of Rs 7,513 crore. Total sales was Rs 15,505 crore and redemptions amounted to Rs 14,930 crore.

The development renewal fund (DRF) has registered a growth of 18 per cent during the year and the corpus in excess of Rs 900 crore. He said adding an exclusive Fund Manager had been appointed for managing the fund’s portfolio.

On the net asset value (NAV), Subramanyam, who took over as Chairman in September last year, said the Parekh Committee report had given UTI a three-year time frame and “we will go by it”.

Subramanyam said no fresh term loans were being sanctioned under US-64 while the real estate investments under it were being revalued.

He said real estate would be put under US-64 for the time being and then transferred to the DRF as per the Parekh Committee report.

Four new funds are to be launched this year one of which would be dedicated gilt fund targeted at provident, pension and gratuity funds, he said.

It also plans to introduce a “systematic withdrawal plan” under UTI Bond fund to tap the non-tax paying investors under the monthly income plan.

The total investible funds under UTI as on June 30, 1999 stood at Rs 61,000 crore. Seven new schemes launched during the year collected Rs 6,939 crore.

IPCL, Modern Foods to be sold
off by Nov

NEW DELHI, July 2 (PTI) — Public Sector units (PSUs) Indian Petrochemicals Ltd (IPCL) and Modern Foods will be sold off by November this year while the process of disinvestment of aluminium major Balco will be over by February 2000, a top official said here today.

“By November, strategic buyers for IPCL and Modern Foods would be selected while for Balco it would take another three to four months and latest by January or February, Balco will be sold off,” Dr S. Narayan, Secretary, Industrial Development and Public Enterprises, Industry Ministry told reporters.

All three PSUs will be sold off in the current financial year as part of the government’s programme of disinvestment, Narayan said on the sidelines of a CII seminar on ‘PSU reforms’.

In the last Budget, Finance Minister Yashwant Sinha announced government’s decision to privatise some of the PSUs in non-strategic sectors and accordingly upto 74 per cent of the government equity was proposed to be divested in a phased manner.

Sports industry faces harassment
Tribune News Service

JALANDHAR, July 2 — The Sports Industry Forum has alleged that the State Government has failed to bail out the industry out of recession and is working against this small sector which generates employment in the State.

The President of the Forum, Mr Ravinder Dhir, said that the SAD-BJP combine was not sympathetic to the sports industry, which was being harassed by the private contractors at octroi posts.

While Punjab local bodies secretary had sent clear instructions to the octroi staff that they were not entitled to question or challenge the values of goods as mentioned in the invoices. But, these instructions were violated by the staff manning the octroi posts.

The State Government’s target of collecting Rs 2000 crore as sales tax has also been dubbed as unrealistic by the Forum. The sale tax levied by the Government on raw materials used by the sports industry would be instrumental in the closure of many units, the forum added.

Santro sales cross 30,000
Tribune News Service

NEW DELHI, July 2 — The cumulative sales of the Hyundai Santro has crossed the 30,000 mark in the country.

With Hyundai Motor India closing the month of June, 1999, with sales of 4,634 units against customer orders received, the company has grossed total sales of 30,331 units of Santro as of June 30, 1999, a company release said.

The company grossed sales of 12,684 units in the second (April-June) quarter of 1999 against 9,200 units sold in the previous quarter-registering a growth of nearly 40 per cent.

Forex
US $ Rs 43.38/39
Stg £ Rs 68.37/40
Euro Rs 44.46/47
Jap yen (100) Rs 35.83/84

Aristocrat
Tribune News Service
CHANDIGARH, July 2 — Jagatjit Industries Ltd., announces the relaunch of its brand Aristocrat in an all new pack. Made available in all three sizes the new packaging has initially been introduced in select markets of North India. The blending of scotch has made the product smooth and mellow.

Kribhco
Tribune News Service
NEW DELHI, July 2 — Krishak Bharati Cooperative Limited (Kribhco), has contributed Rs 1.08 crore for the National Defence Fund towards relief for the families of jawans who died in the Kargil conflict. This includes a contribution of Rs 8 lakh by the employees of Kribhco.

ICRA
NEW DELHI, July 2 (UNI) — ICRA has retained the rating of the Rs 2.5 crore commercial paper programme of Nalco Chemicals India limited at A1+ (A One plus). The prospect of timely payment of debt/obligation is the best.