Wednesday, March 10, 1999
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B U S I N E S S | Wednesday, March 10, 1999 |
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Congress supports Patents
Bill Easier
loan terms for farmers
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25 Himachal PSUs suffer 132
crore losses Tisco
transfers cement division to Lafarge Rs
27 lakh seized from Oswal group Mideast
penalised
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Congress supports Patents Bill NEW DELHI, March 9 (PTI) — The Congress today extended support in the Lok Sabha to the Patents Amendment Bill but asked the government to take effective measures to control prices of drugs and ensure proper scrutiny of applications for exclusive marketing rights (EMR) by foreign companies. Initiating a discussion on the Bill that seeks to allow EMR in pharmaceuticals and agricultural chemicals, Prithviraj Chauhan (Cong) charged the government with “succumbing” to pressures of multinationals by granting more concessions than were required under the Trade Related Intellectual Property Rights (TRIPs) agreement. Piloting the Patents (amendment) Bill, 1998, which seeks to replace an the Ordinance, Industry Minister Sikander Bakht did not make any opening remarks amidst prolonged wrangling over the constitutional aspects. Earlier Rita Verma, who was in the Chair, negatived a motion by V. Radhakrishnan (CPM) questioning the legality and constitutionality of presenting the Bill saying the Bill had already been introduced and passed in the Rajya Sabha. Radhakrishnan, supported by members of the Left parties and the Janata Dal, said no committed legislation, for which an Ordinance was in place, should be introduced as it bound the treasury members from expressing their views freely. Dwelling on various provisions of the Bill, Chauhan said: “There was no need for the Ordinance as the Congress had supported the Bill in Rajya Sabha and was ready to support in the Lok Sabha keeping in view the national interests.” Chauhan said India was bound by the TRIPs’ agreement to give its consent before April 19, 1999, as part of being a signatory to the World Trade Organisation (WTO). Regretting that the government had not sought a national consensus by not taking political parties into its confidence on such a vital issue, he said action should be initiated now to bring about a comprehensive Bill for product patenting under the contractual obligations of the WTO. He said India was a loser on the trips issue but it was one of the 28 agreements under WTO. Provisions for scrutiny of applications for EMR, were not enough and various clauses relating to price control and compulsory licensing were far from being practical. In the absence of an
effective say on pricing and availability of drugs and
agro chemicals through provisioning of manufacturing,
India could be the target of MNCs as was evident from the
zooming prices of their stocks following the
government’s decision to allow EMR. |
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NEW DELHI, March 9 (PTI) —The Department of Telecom (DoT) will not invoke bank guarantees of four private telecom operators till tomorrow when appeals filed by some of these companies come up for further hearing before the Delhi High Court. Birla AT&T, Tata teleservices and Hughes Ispat, today challenged the single judge order passed yesterday before a Division Bench saying that the impugned order failed to consider some of the vital issues regarding contractual obligations of DoT. In a swift move last
evening, DoT had initiated the process for encashment of
bank guarantees of these four companies following
rejection of their plea seeking interim injunction
against the department from encashing bank guarantees. |
Banana talks
end without settlement AN emergency meeting of the World Trade Organisation ended last night (Monday) with both European Union and US trade negotiators able to claim a propaganda victory in the latest battle in the banana war but with a peace settlement as far away as ever. The EU’s high risk strategy of calling the meeting of the Governing Council over America’s unilateral decision to impose more than $500 million of sanctions on EU exports paid off when it was able to secure condemnation of the US action from many WTO members. But the EU itself was criticised for embroiling the council in the issue when a ruling on the banana dispute is due within a few weeks. And both sides came under fire for failing to reach a settlement in the long running row over the issue of preferential access to the EU market for banana growers in former colonial countries, mainly in the Caribbean, which the US claims hits Latin American plantation owners and US companies. Delegates were frustrated with the attitude being shown by the two most important economic players who had a special responsibility for creating and improving the WTO’s disputes procedure, said one trade official. “It is unlikely that (today’s events) will have improved the way people see the system.” WTO Director General Renato Ruggiero tried to calm the dispute, calling on the USA and the EU to reach a “mutually agreed solution” and sought to deflect suggestions that the transatlantic row threatens the credibility of his organisation. “It will be the users of the (dispute settlement) system who will put their credibility at stake if they do not act in conformity with the letter and spirit of the system.” US officials argue their action stops short of sanctions, claiming the demand for importers to put up a bond to cover the retrospective imposition — from March 3 — of up to 100 per cent on selected EU goods is simple protecting the US position. If the WTO finds the latest EU modification of the banana regime is WTO compliant there will be no sanctions they say. “If you believe the regime is WTO consistent, then ship,” the US ambassador to the WTO, Rita Hayes told EU exporters. The US side is incensed by what it sees as persistent foot dragging by the EU over bananas and insists that it is playing strictly by WTO rules. By contrast, according to one US trade official, the EU’s position as “a torpedo aimed at the engine room.” He argued that in the past the USA had shown itself willing to accept adverse WTO rulings. “We have been good WTO citizens”. —
The Guardian |
Easier loan
terms for farmers CHANDIGARH, March 8 — In view of the farmer lobbies’ pressure, the Central Government is understood to have taken measures to make loans for farmers easier. The Finance Ministry has taken into consideration a large number of cases of suicide by farmers and the fact that farmers are hard put to secure loans from banks and sometime equally hard put to repay them, particularly when the officials concerned do not take a sympathetic view of the damage suffered by crops due to uncertain weather conditions. While officials took a long time to assess the damage to the crops to extend loans by way of relief to farmers, the Centre has done away with the middle level function of the officials to some extent. On the other hand bankers too would be cautious in view of the mounting bad debts/non-performing assets touching Rs 49,000 crore. As a result of this long exercise, in which the State Governments were fully involved, the RBI has liberalised its existing guidelines by delegating more powers and discretion to bankers in relation to operational aspect and extension of relief to the affected borrowers (farmers) expeditiously. This should enable banks to take timely remedical and measures as per the parameters laid down in the guidelines in a given situation, without unnecessarily making references to the RBI. Now it is up to the banks to exercise their judicious discretion regarding the adequacy of relief to be provided, depending on the intensity of the natural calamity, the extent of damage suffered by crops and distress caused to farmers over a period — one or two years. Now the bank branches on their own can decide the quantum of fresh loans to be granted to the borrowers taking into the consideration the extent of crop loss/scale of finance and their repaying capacity. Also, amount of principal as well as interest in respect of short-term loan due in the year of occurrence of natural calamity can be converted into term loans or suitable rescheduling of repayment period. The period of conversion/reschedulement to be granted may vary depending on the intensity of calamity and extent of crop loss and distress caused to the farmers. Amounts not collected
during the year of occurrence of the calamity should be
converted into term loans for a period up to three years
and for small and marginal farmers up to five years in
the normal circumstances. However, where the damage to
crops arising out of the calamity is very severe and has
caused distress to the farmers or if the calamity is for
two successive years, banks may grant extensions of the
converted loans for longer periods ranging up to seven
years. In extreme cases of hardships arising out of the
very severe loss to the crops or occurrence of three
successive crop failures and the debt burden being found
to be beyond the immediate repaying capacity of the
borrower, conversion for longer period up to a maximum
period of nine years may also be considered by branches.
Pending conversion of short-term loans, branches may
grant fresh crop loans to the affected farmers.
Conversion of short-term production loans may be taken up
by banks at the time of sanction of fresh crop loans to
the affected farmers without waiting for the due dates
which are taken into account in normal course of sanction
of such loans. |
PAKISTAN’S economy is back on track after a period of severe difficulties in the wake of the nuclear tests conducted by the country last year, the central bank has said. Mohammad Yaqub, Governor of the State Bank of Pakistan, has said the country will achieve a growth rate of around 4 per cent, contain inflation to 7 per cent and restrict the current account deficit to 3 per cent of GDP (gross domestic product). Pakistan’s current fiscal year ends on June 30. The Paris Club of donors last month rescheduled debts worth $ 3.3. billion on concessional terms after the IMF revived a $ 1.6 billion loan facility to the country. Pakistan’s foreign exchange reserves, which had plunged to $ 415 million after the nuclear tests in May, have now risen to $ 1.7 billion. Land auction In view of the restrictions imposed by the IMF, the Pakistan Government is understood to have decided to auction State land to limit borrowings from commercial banks and thus spare funds for the private sector. In a desperate bid to bridge the Budget deficit and generate funds for the development projects the government has decided to dispose of State-owned real estate throughout the country within a month. If the scheme finally gets through the government will earn billions of rupees which will ease its financial position. The government has asked all ministers to furnish complete information and data of the total assets available for disposal immediately. To attract buyers the government has asked the income tax authorities not to question the source of funds. ADB terms Asian Development Bank (ADB) has told the Pakistan Government that $ 250 million energy sector restructuring loan will be released only if it satisfactorily meets the conditions of manpower reduction plan, the pension programme and transport privatisation of Karachi Electric Supply Corporation. According to official sources, the ADB fact-finding mission head had made it clear to the Ministries of Water and Power that the bank will not release the loan unless it is satisfied with resolution of labour issues, pension and transparency. Sales tax The Nawaz Sharif government has decided to replace central excise duty (CED) with general sales tax (GST) from the next financial year. The upcoming step is being seen by analysts as a strategy to extend GST to the services sectors in order to increase revenue receipts by several billion rupees in 1999-2000. According to a Business
Recorder report, the federal government will have to
first target CED and then give the green signal to the
Central Board of Revenue to complete the task before the
new fiscal. — Agencies |
25 Himachal
PSUs suffer 132 crore losses SHIMLA, March 9 — The 25 public sector undertakings in Himachal Pradesh on which the government had invested Rs 556.50 crore have accumulated losses to the tune of Rs 132.28 crore. As many as 16 public undertakings have been perpetually in the red. The State Road Transport Corporation to head the list of loss — making public undertakings having accumulated a loss of Rs 149.47 crore upto March 31,1998, it is followed by Agro Industrial Packaging India Limited. (Rs 34.72 crore), Himachal Horticultural Produce Marketing and Processing Corporation (Rs 22.12 crore), Himachal Pradesh State Industrial Development Corporation (Rs 17.34 crore) and Himachal Pradesh Cooperative Milk Producers Federation (Rs 9.15 crore). The State Electricity
Board had been the only unit making substantial profits
over the years. It earned a surplus of Rs 29.45 crore
during 1997-98 and taking the cumulative profit to Rs 132
crore. The State Civil Supplies Corporation increased its
cumulative profit to Rs 10.95 crore. With a surplus of Rs
24.92 lakh in 1997-98 and the State Financial Corporation
also earned a meagre profit of Rs 13 lakh taking its
cumulative profit of Rs 4.65 crore.
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Tisco transfers cement division to Lafarge MUMBAI, March 9 (PTI) — Lafarge, world leader in building materials, and Tata Iron and Steel Company (Tisco) today signed agreements for transferring the latter’s cement division to Lafarge for a business value of Rs 550 crore. The agreement, which envisages the transfer of Tisco’s cement business as a going concern, is subject to the requisite government approvals including the transfer of mining lease. Tisco Managing Director Dr J.J. Irani and Lafarge Asia Pacific Executive Vice-President Jean Desazars signed the agreement on behalf of their respective companies. The transfer of business — a 1.1 million tonne clinker plant at Sonadih in Madhya Pradesh and a 1.4 million tonne slag cement grinding plant at Jojobera in Bihar is expected to conclude by March 31, 1999. As part of the agreement,
Lafarge has entered into an exclusive long-term slag
supply agreement that entails the continued supply of
slag from Tisco from the day Lafarge takes over the
operations. |
Rs 27 lakh seized from Oswal group NEW DELHI, March 9 (PTI) — The Directorate of Income Tax have seized cash amounting to Rs 27 lakh and shares worth Rs 2.92 lakh during search and seizure operations at different premises of Oswal group of industries in February this year, the Rajya Sabha was informed today. Minister of State for
Finance Kadambur M.R. Janarthanan said in a written reply
that incriminating documents were also seized during the
search operations, along with cash and shares. He said
necessary action under Income Tax Act, 1961 would be
taken on completion of investigation in the case of the
company. |
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NEW DELHI, March 9 (PTI) — A Delhi consumer court has penalised ‘Mideast (India) Ltd’ for failing to honour its commitment towards an individual investor and asked it to pay penal interest along with compensation. Acting on a complaint by Dr N C Singhal, Delhi Consumer Disputes Redressal Forum-II has asked the company to pay back his deposit of Rs 30,000 along with agreed rate of interest till the date of maturity (11.5.98). Further, the court also
ordered the firm to pay a penal interest of 18 per cent
till the money was returned to the investor. This apart,
Mideast has to give a compensation of Rs 1000 for mental
harassment and a litigation cost of Rs 500. |
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| Excise policy LUDHIANA, March 9 (FOC) — The Punjab Government has announced new sops in the excise policy for the year 1999-2000 in order to give further relief to the licencees. According to the new amendments in the excise policy, the relief will also be granted to the licencees bordering all the neighbouring States/Union Territories instead of Haryana alone. Secondly, the previous years licencees have also been allowed to carry forward the quota of Punjab medium liquor that remains unsold till March 31, to the next year. Thirdly, the licencees shall be entitled to lift the two slabs of additional quota not only in the form of 50/65 degree but also 75 degree. The new amendments gain importance keeping in view the auctioning of liquor vends here tomorrow. NBFCs Forex rates US $ Rs 42.46/47 The RBI reference rate was Rs 42.47. Gold flares up Consumer loans Central Bank Escotel IA loss |
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