B U S I N E S S | Sunday, March 21, 1999 |
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weather n
spotlight today's calendar |
HP to ease land transfer
rules New
Ford car in November |
Punjab to face crisis
of plenty
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Cut
interest rates on shipment export credit NABARD
bonds issue at par |
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HP to ease
land transfer rules PARWANOO (Solan), March 20 Himachal Chief Minister Prem Kumar Dhumal, said here today that the Union Government had cleared a state government proposal for setting up international airport in Himachal Pradesh and also to improve its air travel circuit during the next year. The Chief Minister, who was the chief guest at the annual session of the CII annual session, organised here today, said that the setting up of the proposed airport along with the introduction of a four-times-a-week Mumbai-Kalka Holiday Special, scheduled to make its inaugural run on April 11 would give a boost to the states tourism industry. He said that his government would lay emphasis on the development of tourism, especially adventure tourism and exploitation of the states vast hydel power generation potential in the coming years. All entrepreneurs whose projects, in addition to generating profits would ensure increased employment, more revenues to the state exchequer, and no damage to the environment, would be welcomed. The proposals to set up herb-based industries would be specially welcome. He said he had taken up the matter of extending the period of tax holiday beyond 2002 with the Union Government and hoped that his request would be accepted, on grounds of the special needs of this land-locked state. The government would do its best to improve the industry-related infrastructure, adding that the allocation for construction of roads had been increased from 164 crore this year to 205 crore next year. Land transfer rules were being simplified. By the end of next year all revenue records would be computerised which would facilitate faster transfer of lands to units. Mr Dhumal said the help of the industrialist would be welcome in providing requisite accommodation to states primary schools. At present there were only 23800 rooms for existing 10,484 primary schools. As many as 1964 such schools presently functioned either under the open sky or in borrowed rooms. Mr Arun Bharat Ram, Regional Chairman of the CII, said that the days of populist policies like the grant of subsidies were over and the industrialists and the people must think of paying for the services like roads and bridges. He said the popular notion that subsidies attracted capital had become totally invalid today. Mr Bharat Ram also stressed upon the need for setting up a high-powered group, with industry participation, for chalking out norms for simplification of rules governing industrial units. The existing industrial training institutes and polytechnics must be structured to cater to the needs of the upcoming industries. Mr Dhumal also released an industrial directory published by the Parwanoo Industries Association. Mr Dhumal, also agreed to CIIs suggestion of setting up a joint task force between entrepreneurs and the government to facilitate integrated development and economic growth of Himachal. Mr Bharat said the CII would like to motivate local industry to address social issues specially, primary education and welfare of the girl child. Later, Mrs Manju Bharat Ram, Chairperson, CII, Social development and Community Affairs Committee, made a plea to industrialists present at the session to adopt a literacy programme for their employees. She also requested them to contribute towards social causes through reliable NGOs. Earlier, Mr Arun Suri, Chairman, CII, HP State Council complimented the Chief Minister for his approach to developmental issues. Mr Harsh Gupta Additional Chief Secretary and Secretary Industries, Mr R.K. Jain, Director Industries and several other senior officials of the state government were also present. Industry representatives
form Parwanoo, Baddi, Barotiwala, Nalagarh and Paonta
Sahib, also participated. |
Punjab to
face crisis of plenty CHANDIGARH: Punjab is heading for a major problem of plenty on the wheat front even as the crisis created by the huge rain-affected stocks of unmilled paddy of the 1998 kharif remains unsolved. With hardly a month left for the rabi harvesting season to start, Punjab has only 30 lakh tonnes of available space for storing 68 lakh tonnes of the new wheat crop that government agencies have planned to procure. Poor evacuation of the wheat and rice stocks of the past crops has burdened the State with 50 lakh tonnes of accumulated wheat and 40 lakh tonnes of rice. While rice stocks are stored in godowns, most of the wheat stocks are lying in the open under CAP storage. Though Haryana, the second biggest foodgrains surplus State after Punjab, also faces similar problems of plenty, the situation in the State is not as bad as in the sister State. Haryana has a storage capacity of 44 lakh tonnes comprising 26.73 lakh tonnes of covered space and 17.29 lakh tonnes of CAP storage. The State has at present over 20 lakh tonnes of accumulated foodgrains of the previous crops. The State agencies have planned to procure 33 lakh tonnes of wheat in the ensuing season. The crisis in the two States, particularly in Punjab, has been aggravated by the poor evacuation of the procured stocks mainly because of sharp fall in the demand from other states. Despite the constant pressures of the two States, the actual movement of the stocks has fallen far short of even the allocated movement targets. The problems of plenty which Punjab and Haryana are going to face in the coming rabi season were taken up by Mr P. Ram, Secretary, Food and Supplies, Punjab and Mr Nasseem Ahmed, Commissioner, Food and Supplies, Haryana at the meeting of the Food Secretaries of the wheat producing States held by the Union Food Secretary in Delhi last week. The meeting discussed the wheat procurement policy for the 1999-2000 rabi marketing season. The evacuation of large quantities of the procured foodgrains from the two major surplus States to make space for the new crop arrivals has particularly become more problematic as the other States do not have sufficient storage accommodation to take care of larger stocks. The coming rabi season may
also see the emergence of new problems relating to
procurement. Under the International Labour
Organisations decision, hence-forth 50 kg capacity
gunny bags are to be used for storing wheat instead of
the prevailing practice of using 95 kg capacity bags.
However, the stocks of 95 kg capacity gunny bags lying
with the State governments will be exhausted first before
the less capacity gunny bags come into vogue. Since the
use of the small gunny bags will start from the coming
season itself, it will make the procurement operations
more costly in view of the higher incidental charges.
Besides being time-consuming, the operations will lead to
further slowing down of movement of stocks. (IPA) |
Usha to
launch first silicon epitaxy plant FARIDABAD, March 20 - Usha India Limited, a part of the Rs 4,000 crore group Usha conglomerate, will start a stand-alone production facility for Silicon Epitaxy wafers, the basic raw material for transistor chips and semiconductor devices. The company announced the launch of the new Silicon Epitaxy plant today. Briefing newspersons here today, Director of Usha India (Electronics) Mr Arun Kanchan said that the companys epi-wafer production facility, which will start functioning in April, has a production capacity of 30000 wafers per month, while the current India requirement of Silicon Epitaxy wafers is 10000 per month. The plant has the capacity to produce wafers of 8 inch. The plant will produce raw material that is crucial in the manufacturing of high power transistors, `shottky diode chips, integrated circuits and metal-oxide semiconductor devices. Usha India also announced the launch of a Polysilicon production facility, with a 100 ton per annum capacity, making it a fully integrated global semiconductor manufacturer. The plant will manufacture basic raw material required to produce silicon devices and solar cells. The company is currently
undergoing audit for ISO 14000, which supports
environmental protection and also prevents pollution. All
the manufacturing units of the company already has ISO
9000 approval. |
FIPB clears GE Plastics proposal NEW DELHI, March 20 (PTI) Foreign Investment Promotion Board (FIPB) today cleared foreign direct investment (FDI) proposals worth about Rs 680 crore, including those by GE Plastics and Citicorp. The board at its meeting today cleared the proposal of Citicorp Finance India, the holding company of Citibank, to increase its capital base from $ 40 million to $ 50 million FIPB sources said. It also cleared the proposal of Telecom Investment India Ltd to bring in Rs 165 crore through non-convertible preference shares. Telecom Investment India is held by CGF Investment, Mauritius, a Hutchinson group company, and Max and Telecom Investment, sources said. Among the 55 FDI proposals approved is a proposal of GE Plastics, which manufactures advanced engineering plastics, to increase the stake of the foreign partner to 60 per cent from 50 per cent by bringing in an additional Rs 15 crore through convertible preference shares. The share of IPCL, the Indian partner in GE Plastics, would come down by the same percentage after the shares are converted, sources said. The board also approved the proposal of French multinational, Conpagnie De St. Gobain to increase stake in its joint venture with Grindwell Norton from 90 per cent to 95 per cent. St Gobain would bring in Rs 107.5 crore as FDI to increase its stake in the venture, which manufactures float glass in India, sources said. A proposal by Owens
Brockway to increase capitalisation in its wholly-owned
subsidiary in India by Rs 150 crore was also approved by
FIPB. |
Cut
interest rates on shipment export credit NEW DELHI, March 20 In the interest of export promotion, the government should reduce the interest rates both for pre and post-shipment export credit at least by 1 per cent, the PHD Chamber of Commerce and Industry suggested here yesterday. The chamber is concerned about the negative growth in exports during the last two years which is affecting the trade deficit as also the BOP and Indias share in international market is dwindling. While, pursuant to reduction in the Prime Lending Rates (PLR) and the Cash Reserve Ratio (CRR), the rate of interest has been reduced by 1 per cent but unfortunately such a reduction has not taken place in the pre/post-shipment export credit in rupee which is still static at 9 per cent. At the same time, Finance Ministrys instructions to the banks to keep their export credit rates at Libor plus 1.5 per cent and dollar rate of 7 per cent and thus most of the exporters are only drawing credits in rupee to avoid being exposed to foreign exchange fluctuations, the chamber observed. RBIs steps to
rationalise the export credit (in dollars) and the advice
to bankers to assist exporters by providing export credit
at international rates is welcome, but its effect is
negligible, as more than 90 per cent of the exporters are
drawing pre/post-shipment credit in rupees where there
has not been any reduction. |
NABARD bonds
issue at par CHANDIGARH, March 20 The National Bank for Agriculture and Rural Development (NABARD) proposes to issue 18th series of bonds for an amount of Rs 116.23 crore. The Bonds will be issued at par with a face value of Rs 1,00,000. The bonds with a tenor of 10 years will carry interest at 12.35 per cent per annum payable on half-yearly basis. Repayment of the principal and payment of interest on the bonds are guaranteed by the Central Government. The Bonds will have the status of Trustee Securities under the Indian Trust Act, 1882. The issue will remain open
for subscription for three days from March 22, 1999. The
issue will, however, be closed earlier if the total
subscriptions reach the amount of Rs 116.23 crore. |
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