Friday, March 19, 1999
today's calendar
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B U S I N E S S | Friday, March 19, 1999 |
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spotlight today's calendar |
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Himachal woos private
sector 100
corporates quit PHDCCI |
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Banks
‘cheated’ by software vendors |
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Reduction
in CRR likely: JM Fin Government
borrowings to cross Rs 1,00,000 crore
UTI
signs MoU with Sydney financial company Maruti
appoints 500th dealer in Arunachal Autoriders
withdraws offer to acquire SCL |
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Himachal
woos private sector SHIMLA, March 18 — Mr Prem Kumar Dhumal, Himachal Chief Minister, said today that the new industrial policy would lay emphasis on creating investor-friendly atmosphere and ensuring sustainable and speedy industrial development of the State. Addressing the captains of industry at an interactive session on proposed industrial policy guidelines, organised by the industries department here, he said in the liberalised economic scenario the government would play the role of a facilitator and it would welcome active participation of the private sector in infrastructural development. He said steps reducing procedural delays and providing an industry-friendly administration were more important than package of incentives to attract genuine investors. The government would discourage unhealthy competition to ensure the high quality of products. A new scheme of efficiency linked incentives had been launched in the State. He said work on the Nangal-Talwara rail line had been started last year and on Kalka-Parwanoo broadgauge rail line work was likely to start soon for which a provision of Rs 2 crore had been made in the Budget. Besides, the government has also decided to set up a Satluj Valley Rail Corporation to construct Bhanupali-Bilaspur rail line. Last year three national highways had been sanctioned which would also benefit the industrialists of Nalagarh, Badi-Barotiwala, Kala Amb and Paonta Sahib. He said besides hydel power generation and tourism development, there was a vast scope for setting up of agro fruit processing units and assured all possible assistance to those interested to invest in these sectors. Mr Arun Suri, Chairman of the State Council of the Confederation of Indian Industry, urged the government to focus on infrastructural development through public-private partnership. Underlining the need to cut down the time period for various clearances, he said land and power connection should be made available within three months. He welcomed the decision to scrap IPARA and the move to depute a nodal officer for getting all necessary clearances on behalf of entrepreneur but said the policy would yield results only if implemented in right earnest. He also called for a long-term power tariff policy, at least for five years. He said larger industries should be confined to peripheral areas of the state, tourism industry be encouraged in exotic pockets and the interior areas should be left for cottage industry. The CII was prepared to set up technical institutions and hospitals in partnership with the government. On the issue of resource
generation, he advocated selective privatisation of
healthy and sick public sector units selective management
participation of private sector in up-market tourism
projects simplification and wherever necessary
elimination of complicated rules and procedures and
downsizing of the government. |
No move to
stop PDS sugar sale NEW DELHI, March 18 — The Union Food Ministry today clarified that the Government had no plans to discontinue the supply of sugar through ration shops. The Ministry’s official spokesperson, Mrs Santha Balakrishnan, in a statement said the suggestion by the Mahajan Committee, which was constituted to suggest ways and means for the development of sugar industry in the country, that supply of sugar through the public distribution system should be phased out was rejected by a meeting of Chief Ministers last year. The Chief Ministers were of the opinion that sugar should continue to be supplied through ration shops. “Accordingly, sugar is being supplied regularly through ration shops to the card holders”, the spokesperson said. Referring to a report in
The Tribune which quoted the Union Food Minister, Mr
Surjit Singh Barnala, as saying that the Government was
considering a proposal to discontinue the sale of sugar
through ration shops, the spokesperson said the
Government has not taken any decision on the
recommendations of the Mahajan Committee as yet. |
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NEW DELHI, March 18 (UNI) — Irked by the hike in the membership fee, around 100 leading corporates from the northern belt of India have withdrawn their membership from the PHD Chamber of Commerce and Industry (PHDCCI). Besides, close to 200 others are also believed to have informed the PHDCCI about their desire to resign, sources in the chamber told UNI here. Senior officials in the chamber’s Secretariat said that memberships of almost 100 odd companies were terminated because of mounting dues. But they refused to comment on the several leading corporates who have already withdrawn their memberships. However, they admitted to a furore within the member companies over the new subscription rates. The membership fee of the chamber was hitherto being charged on the basis of the number of employees a particular company had. This has now been changed and now the fee is charged on the basis of turnover. “This had irked the members as it amounted to a substantial hike in the fee structure”, the sources said. Based on the earlier formula, the fee varied in the range of Rs 5,000 to Rs 11,300, which has now been hiked to Rs 5,000 to Rs 30,000. “The chamber has been persuading the members to pay according to the new structure, but several of them refused and withdrew their membership.” Meanwhile, the Secretariat officials maintained that besides the hiked fee, amalgamation and consolidation with companies was another reason for the high number of secessions. Besides, several companies have turned sick or closed down. Established in 1905, the
PHDCCI is an apex chamber of northern India, servicing
all eight States in the region — Punjab, Haryana,
Delhi, Uttar Pradesh, Himachal Pradesh, Rajasthan, Jammu
and Kashmir, Madhya Pradesh and the Union Territory of
Chandigarh. It has a membership of around 1600 corporate
entities, including manufacturing units from large,
medium and small scale sectors, export houses and
professionals. The major sectors to which its members
belong to include chemicals, engineering and light
engineering, textiles, financial and management
consultancy. |
Banks ‘cheated’ by software vendors NEW DELHI, March 18 (PTI) —With the March 31 deadline set by the RBI on the year 2000 (Y2K) compliance approaching, leading banks have alleged that they are being “cheated” by major software vendors. “UCO Bank, Bank of Baroda and the Bank of Rajasthan Ltd. raised this issue last month before Indian Bank’s Association (IBA) and their grievances were widely discussed by the RBI working group on Y2K,” a top RBI official told PTI. The Bank of Rajasthan has said in a letter to IBA that Tata Consultancy Services (TCS) failed to keep its assurance of implementing the Y2K compliant version of its ISBS software that Bank of Rajasthan is using at its branches now. UCO Bank is also facing a problem with Wipro and HCL, as both the companies have not yet certified the hardware supplied by them as being Y2K compliant, the letter mentioned. Fujitsu-ICIM Ltd has also come under severe flak from Bank of Baroda for failing to supply the Y2K-free versions of its software even after having received 20 per cent advance payment for the service as early as mid-1998. According to Bank of Rajasthan authorities, the bank can achieve complete compliance only if TCS replaces the ISBA software with its Y2K compliant version. ISBS is currently running in 10 corporate branches of the bank, it said. “Though TCS had assured us to implement the Y2K compliant version of ISBS by December 1998, no steps had been so far taken by TCS in this regard,” the letter to IBA said. “On one hand, TCS has not been able to resolve the identified problems till date (February 16) and are pressurising us to accept the software on the pretext that the bugs will be removed,” it said. UCO Bank said it has withheld all payments to Wipro and HCL and decided not to place any order in future if the two firms failed to upgrade the systems for Y2K compliance. “As directed by the RBI, we will be constrained to place any order and withhold the payments whatever is due if the Y2K certificates are not placed branchwise and brandwise,” the bank has said in a letter to Wipro and HCL. UCO Bank has also taken the matter to Nasscom and Manufacturers Association of Institute Technology (MAIT), the apex software and hardware industry bodies respectively to request the vendors to certify their product for Y2K compliance. Bank of Baroda has said in a letter to IBA that Fujitsu-ICIM was to have completed the installation of the Y2K-free software for the bank before December 31, 1998. But the software firm has failed to keep up its commitment, the bank said. “Despite continuous follow-up with the vendor, we have not received any (software) module from Fujitsu-ICIM till January 15, 1999,” BoB has said in the letter. The RBI has set March 31
as the deadline for submitting a final report on the
position of each bank regarding their Y2K compliance and
said hefty penalties would be imposed in case of default. |
Reduction in CRR likely: JM Fin NEW DELHI, March 18 (PTI) — The cash reserve ratio (CRR), is likely to be brought down from the current 10.5 per cent to 10 per cent in the ensuing slack season credit policy to check the drain in liquidity and bring stability to the money markets, according to J.M. Financial and Consultancy Services. “A further reduction in the CRR by 0.5 per cent will release around Rs 3,000-3,200 crore in the system. This combined with the expected private placement with the RBI of Rs 4,000-5,000 crore would have the effect of checking the drain on liquidity and bringing stability in the money markets,” the money market update of J.M. Finance has said. Making out a strong case for the cut in CRR, it said, the call rates had risen to over 10 per cent by March 16, thus implying a immediate reduction in CRR. Otherwise there are chances of yields on dated Government of India Securities (GILTS) rising above the March 1998 levels. On the recently announced cuts in CRR, bank rate and repo rate by the RBI, the update said, it was complementary to the Union Budget’s attempts at giving a demand side stimulus for pushing growth. The RBI monetary policy over the last year and a half had been dictated by concerns of “currency stability” as contagion pressures forced it to keep real interest rates at high levels, it said. The call money rates, which hovered in the 8 to 9.25 per cent range, have remained out of the new interest rate band of 6 to 8 per cent announced by the RBI, the report said adding, the overnight rates were expected to remain above the bank rate of 8 per cent in the current fortnight. The absence of arbitrage between the bank rate and the export credit refinance rate, both pegged at 8 per cent now, will further exert pressure on short term interest rates. This would mean that the RBI would have to provide additional liquidity for its monetary band to have any credibility, it said. “Liquidity in the
system will remain tight despite the CRR cut as advance
tax outflows, estimated at Rs 5,000 crore and the
financing of the disinvestment by cross-holding method
for oil PSU’s would result in a further tightening
from the second week of this fortnight,” it said. |
Maruti
appoints 500th dealer in Arunachal CHANDIGARH, March 18 – Maruti Udyog Ltd has achieved the distinction of having dealers in 500 cities all over the world. The 500th dealer has been appointed in Arunachal Pradesh. This was announced by Mr Rohtash Mal, CGM (Marketing and Sales), MUL, after launching “Autozone Plus – the Vantage Card” at a function here last night. In reply to a question, he said Maruti sales have not been affected by Indica. “Actually the sales have gone up,” he added. Mr Deepak Joshi, Managing Director of Joshi Autozone, which organised the function, said the card entitles a customer to discounts at 100 establishments, including hotels and departmental stores, in Chandigarh, Panchkula and Mohali, besides two services in a year, wheel alignment work and a pollution control certificate – all free of cost. Praising this
customer-friendly approach, a retired Air Force officer
said: “Customer is always right. This should be the
guiding principle of Maruti”. He suggested Maruti
should make its cars theft-proof in view of the
increasing thefts of cars. |
Max GB sets
up new plant CHANDIGARH, March 18 — Max GB today inaugurated its mega 1000 tonne per annum (TPA) amoxycillin plant. Mr Dipak Chatterjee, Secretary, Union Department of Chemicals and Petrochemicals, inaugurated the plant. The Dutch Ambassador in India. His Excellency Mr P.F.C. Koch and Mr Ramesh Inder Singh, Secretary Industries, Punjab, were also present. The new plant, commissioned in seven months, has been set up at a cost of Rs 40 crore, said Mr Analjit Singh, Chairman, Max GB Limited. Mr C De Jong, Director,
Max GB and Managing Director of DSM Anti-Infectives, said
a considerable portion of the output could be exported,
as a part of GB’s global network.
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Government
borrowings to NEW DELHI, March 18 (PTI) — Total government borrowings are likely to cross the Rs 1 lakh crore mark in the current fiscal, if economic growth fails to gather momentum, ICICI Securities has said. “Gross government borrowings have been budgeted at Rs 84,000 crore for fiscal year 1999-2000. However, the targets for tax collection and disinvestment for year are aggressive and total borrowings could slip towards Rs 1 lakh crore if the economy does not accelerate sharply,” Investment Bank said in its discussion paper on fiscal 1999-2000. Deposit growth is also likely to decelerate following three years of economic slowdown, I-Sec said. “The credit offtake is also not likely to pick up as economy continues to remain a slow growth orbit,” it added. Markets witnessed high money supply growth in 1998-99 and this would deter RBI from taking an easier stance, Investment Bank said. Turning to the growth in India’s external trade and forex exchange situation, I-Sec said increasing trade deficit would remain a matter of concern on the currency situation. The interest rate on sovereign offerings are likely to tighten further, I-Sec added. However, in the absence of
significant demand from corporates, spreads of corporate
rate over the government securities would narrow further,
ICICI Securities said.
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TVS Suzuki launches variants of Spectra NEW DELHI, March 18 (PTI) — Two-wheeler manufacturer, TVS Suzuki today announced launch of two variants of its four-stroke scooter TVS Spectra in economy and executive segments. The new economy model would be about Rs 4,000 cheaper than the existing deluxe model of Spectra, while the executive model would be about Rs 2,000 costlier with an electric starter. Both the models would be launched shortly, the company said in a statement here. The existing model of TVS Spectra is priced at Rs 37,777 on road in Delhi. “Continuous focus on value engineering has enabled the company to bring about the economy version of TVS-Spectra,” the statement said. TVS Suzuki President C.P.
Raman said the company would cross 7,00,000 vehicles in
the current fiscal. |
Autoriders withdraws offer to acquire SCL MUMBAI, March 18 (PTI) — The open offer to acquire Saurashtra Cements Ltd (SCL), made on March 19, 1998 by Praful Patel of Autoriders Industries Ltd, has been withdrawn as per the terms of the takeover code. Owing to the change in the shareholding pattern of the target company, following the preferential allotment made to the latter’s promoters, “the open offer has lost its purpose of acquiring management control in the company”, a public announcement here today stated. A year ago, Autoriders made an open offer to acquire upto 20 per cent of the paid up capital of SCL at a price of Rs 75 per share. Subsequent to the offer,
the merchant banker of the acquirer brought to the market
regulator’s notice that the target company had made
a preferential allotment to its promoters, in violation
of the takeover regulations, 1997.
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UTI signs MoU with Sydney financial company MUMBAI, March 18 (PTI) — Unit Trust of India has tied up with a leading Australian Financial Services company to jointly explore opportunities in infrastructure investments and a range of other financial services in India, including insurance and banking operations. UTI today signed a memorandum of understanding in Delhi with the Sydney-based AMP Limited and in the first instance proposes to launch an Indian infrastructure fund (IIF), according to a statement issued here today. The fund is expected to invest up to $ 500 million in projects in India, including power generation, oil and gas exploration, transportation, telecommunications and urban infrastructure among others. Both the partners expect
to open the fund to investment from other parties also. |
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SINGAPORE, March 18 (PTI) — Global telecom company Nokia today launched its latest innovative mobile phone to meet individual, varied lifestyle and business needs. “We strive to
continually delight our consumers by developing
innovative products with individual lifestyles along with
personalisation of their needs.” Nigel litchfield,
senior vice-president Nokia mobile phones, Asia pacific
said. The new range of products launched by Nokia
included top-of-the-line mobile phones for auspicious
functions, fashionable handsets and Internet enabled
phones.
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“WONDERFUL Dhood” goes a catchy advertisement, extolling the virtues of milk as a nutritious drink, for the young and the aged, in summer and in winter. Well, “piyo glassful” may be a good bit of advice, provided the milk that is commercially available to consumers is of good quality and safe. But is it? If you look at the statistics provided by the departments of PFA in different States, milk is one of the most adulterated food. While earlier, adulteration of milk was limited to diluting it with water and may be adding starch, in the last few years, adulteration of milk has assumed menacing proportions, particularly in the Northern States, with the addition of “synthetic milk” to natural milk. Synthetic milk, made with detergents, caustic soda, urea and refined oil, is a major health hazard, warn food scientists. But there could be other equally harmful adulterants and contaminants in milk: residues of pesticides like DDT, Aldrin, alpha BHC, traces of heavy metals like copper, arsenic, cadmium, mercury, lead, zinc, preservatives like formaldehyde, salicylic acid, hydrogen peroxide and hypochlorites, or even hormones that may have used to increase the production of milk in the animals. Surveillance of bovine milk from 12 States conducted by the Indian Council of Medical Research and published in 1993, for example, revealed widespread occurrence of pesticide residues in milk. Expressing concern over this, ICMR had said there was urgent need to take appropriate corrective measures so that milk of acceptable quality was available to consumers. More recently, Ahmedabad-based consumer group, Consumer Education and Research Centre, tested 30 brands of packed milk sold in Ahmedabad. All the brands failed in the microbiological parameters specified by the Bureau’s of Indian Standards. Says CERC: Most of the brands had coliform and E.coli which may cause gastro-enteritis and urinary tract infections. Milk sold by one particular brand even contained Staphylococcus aureaus which could lead to food poisoning. The test results indicated that either the pasteurisation at the plants was not effective or there was post-pasteurisation contamination. The manufacturers response to the test results apparently was that CERC should have taken milk samples for testing at the dairy and not at the retail outlet. Their argument was that BIS standards required evaluation for microbial contamination to be done at the dairy only and not later, after it reached the retail outlets. They also conceded that once the milk left their premises in the night, the cold chain may not be maintained till the next morning when it reached the consumer, and this may well lead to multiplication of microbes. In other words, the manufacturers were responsible for the quality only till it left their premises! Again, the PFA act sets limits on the presence of pesticides, but the maximum limit of 1.25 ppm for DDT it too high compared to international Codex specifications which is 0.05 ppm. The PFA Act also needs to set mandatory guidelines for additives in milk. As of now, the Act stipulates minimum per cent of “milk fat” and “solids-not-fat” which includes all nutrients other than fat, for different kinds of milk like cow’s milk, buffalo’s milk, standardised milk, toned milk, skimmed milk. Given the importance of these nutrients like Calcium, phosphorous, magnesium, protein and lactose, the PFA Act should specify separate minimum limits for them, says CERC. In short, the PFA Act needs to be reviewed thoroughly and amended to ensure that the milk sold to consumers is absolutely safe and also nutritious. The law should also be enforced strictly. Consumers in the
meanwhile, would do well to always boil the milk before
consuming it, so as to ensure its microbiological safety.
Keep stirring while boiling and cool it quickly to
minimise the loss of vitamins, minerals and protein, says
CERC. Also, considering the steep price that you pay for
milk, it would be better to make sure that the
“doodhwala” is using a standard, accurate
measure. If you are buying milk sold in packets, it is
advisable to check the weight once in a while, so that
you don’t get cheated on quantity. |
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| IOC Director CHANDIGARH, March 19 (TNS) — Mr O.N. Marwaha, Director (Marketing), IOC will visit Chandigarh tomorrow. He will call on the Governor of Punjab and the Chief Secretary, Punjab, to discuss issues relating to expansion activities. Shaw
Wallace ISO-9002 Gold recovers Starlite NDDB |
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