SBI office stone laid CHANDIGARH, March 30 — Mr S.R. Iyer, SBI Dy Managing Director, today laid the foundation stone of the bank’s zonal office at the city Centre in Sector 5, Panchkula.

Chhabria asks CLB to dismiss petition
NEW DELHI, March 30 — BDA Chairman Kishore Chhabria has moved the Company Law Board for dismissal of a petition filed by Vijay Mallya controlled Herbertsons Ltd that had alleged mismanagement of funds by him saying that the petitioner was guilty of suppression of material facts.

GIC MF launches D’Mat scheme
CHANDIGARH, March 30 — GIC Mutual Fund has launched an open-ended scheme title GIC D’Mat, intended to facilitate retail participation by investors in Demat trading through this scheme.

NRIs allowed to open bank accounts in India

MUMBAI, March 30 (PTI) — The RBI today further simplified transactions by non-resident Indians (NRIs) and persons of Indian origin (PIOs) by allowing them to open bank accounts in India and invest in air taxi operations.

The RBI has also decided to grant general permission to NRIs, PIOs and overseas corporate bodies (OCBs) to invest in the government securities and treasury bills, while granting such permission for investment in shares and debentures under the portfolio scheme.

The permission to open “non-resident (special) rupee accounts” having same facilities and restrictions as applicable to rupee accounts maintained by the residents with regard to repatriation of funds and income/interest earned on them, will become effective from April 15, 1999.

The facilities would now differentiate NRIs/PIOs/OCBs from the residents only in relation to investments in real estate, agriculture and plantation business, the RBI said in a statement here today. 

All domestic public/private sector mutual funds can issue units to NRIs/PIOs/OCBs on both repatriation as well as non-repatriation basis.

NRIs and OCBs can invest on repatriation basis in air taxi operations subject to, among other conditions, approval of Director General of Civil Aviation and also place deposits with Indian firms on non-repatriation basis and with Indian companies including non-banking financial companies on both repatriation and non-repatriation basis.

The RBI has permitted NRIs/PIOs to transfer by way of gift shares held by them in Indian companies and PIOs to transfer by way of gift immovable property held in India to registered charitable trusts/organisations subject to compliance with other applicable rules/regulations including the provisions of the Foreign Contribution Regulations Act, 1976.

The procedure for opening rupee accounts in India would be the same as in the case of domestic accounts of resident individuals and would be in addition to existing facilities to operate non-resident (ordinary), non-resident (external) and foreign currency non-resident accounts.

Cap on borrowings not workable: FM
Tribune News Service

NEW DELHI, March 30 — The Union Finance Minister, Mr Yashwant Sinha today ruled out putting a constitutional cap on government borrowings but hinted at a change in the maturity profile of the government’s borrowing portfolio.

“Unless proper ground work is prepared, constitutional limit on government borrowings would be a ham-handed solution”, the Finance Minister said at a seminar on “Managing Fiscal Deficit” organised by Assocham here.

Mr Sinha said that Article 292, which gives the Union Government the power to borrow upon the security of the consolidated fund within limits as fixed from time to time by the Parliament, is not workable under the present circumstances.

Many experts had favoured putting a constitutional cap on government borrowings to reduce the fiscal deficit. Mr Sinha said that one way to reduce the fiscal deficit was to levy user charges of public utilities.

Mr Sinha lamented that the Tax-GDP ratio has come down to 9 per cent at present from the earlier level of 11.5 per cent.

Stating that the government is taking pro-active steps to broaden the tax base, the Finance Minister said that the user charges on public utilities like irrigation could be a viable option to generate more revenue.

Moreover, if the revenue deficit, the main element in the growing fiscal deficit, could be eliminated in medium term (four years), and thereby reducing the fiscal deficit to 2 per cent of the GDP, it would be a major achievement.

Stating that no government can forever go on borrowing, the Finance Minister said that it was important that the government does not borrow to meet its current needs.

The Finance Minister said that the revenue deficit could be reigned in by changing the maturity profile of the government’s borrowing portfolio.

Dabur sells 20 per cent stake to Nestle

NEW DELHI, March 30 (PTI) — Dabur India today announced selling off its 20 per cent stake in joint venture Excelsia Foods to its foreign partner Nestle SA of Switzerland for $ 2.5 million, thereby reducing its holding to a minority 40 per cent.

With this deal, Nestle SA will control 60 per cent equity in the snack food venture.

“We received a cheque of $ 2.5 million from Nestle SA yesterday for divesting 20 per cent of our stake in Excelsia Foods,” Dabur India Limited Director P.D. Narang told PTI.

“With effect from yesterday, Nestle SA holds 60 per cent stake in this foods joint venture,” he added.

Following the change in equity pattern, Nestle representative Richard Lister would take over as the Managing Director of the over Rs 40 million venture operating from new Delhi.

Excelsia Foods had made a fresh investment of about Rs 130 million last year to set up a manufacturing capacity at Sahibabad (UP) to expand its product range.

Spokesman of Nestle’s Indian operations could not be contacted for comments on the deal.

Punjab board clears 3 projects

CHANDIGARH, March 30 (UNI) — The Punjab Project Approval Board yesterday cleared three projects of the Punjab State Industrial Development Corporation Ltd. (PSIDC) entailing an investment of Rs.48.96 crore for producing cotton and worsted yarns.

At a meeting presided over by Mr Parkash Singh Badal, the board cleared the projects which included Fertichem Cotspin Ltd. for manufacturing cotton yarn at Abhinav Cotspin Ltd. for producing cotton yarn at Batala.

The third project was Ganga Acrowool Ltd. for producing worsted spinning at Kot Shekhon in Ludhiana district.

The Board also approved Mahindra Reality Infrastructure Ltd as a partner of Punjab State Electronics Development Corporation Ltd to set up a software technology park at Mohali.

The board accepted in principle a proposal of a Punjab Tourism Development Corporation Ltd to offer on licence Hotel Amaltas, Ludhiana, to a private party.

SBI office stone laid
Tribune News Service

CHANDIGARH, March 30 — Mr S.R. Iyer, SBI Dy Managing Director, today laid the foundation stone of the bank’s zonal office at the city Centre in Sector 5, Panchkula.

Mr Iyer said the building will be the administrative office for 130 branches in Haryana.

Mr Iyer also donated Rs 6,00,752 to Ludhiana Education Society for the purchase of a school bus for deaf and dumb children. He also donated Rs 2.40 lakh to Shree Rama Sewak Sangh, Ludhiana, for the purchase of a computerised eye-testing machine for its hospital eye unit.

Later Mr Iyer bid farewell to Mr K.K. Narula, SBI Chief General Manager, Chandigarh Circle, who retired today after putting in more than 35 years’ services in the bank.

IPPs can hold direct talks with India

THE Pakistani Government has granted permission to some Independent Power Producers (IPPs) based in Punjab province to hold negotiations with India for the export of electricity.

“We have granted permission to some of the IPPs for holding negotiations with India for export of power,” a Cabinet member was quoted as saying by NNI news agency. “The negotiations between the IPPs and the Indian authorities are likely to start within a few months.”

After bringing down the electricity rates, the Water and Power Development Authority (Wapda) will have surplus power. The authority would be in a position to export to India on a commercial basis, reported The News daily.

During the first meeting with the India in November 1998, Wapda had indicated availability of surplus power up to 2,000 MW which could be exported to India up till 2010. Since Wapda is in a serious financial crisis, officials say export of power to India could bring in the much-needed revenue and offset some of the huge payments the utility is to make to the IPPs.

Water and Power Minister Gohar Ayub Khan said several more plants would start producing power by the end of this year and would help add to the exportable surplus power. — IANS

Revenue up

The Wapda Deputy Chairman, Maj-Gen Sarfaraz Iqbal has said that an average increase of Rs 60 million daily has been recorded in revenue following the army’s assistance and that 1000-1200 MW electricity is being saved during peak hours.

Speaking at PTV’s live programme “Saweray Saweray,” Gen Sarfaraz said that after the army action a visible increase has been witnessed in Wapda’s revenues which can be assessed from the fact that an increase of Rs 3.5 billion was recorded in January.

With army help, power theft has declined considerably and 10,000 cases have been investigated so far and the remaining will be examined in the next two months. “We have set our priorities according to which industrial consumers are checked first followed by commercial and domestic consumers,” he said. — ANI

PIA profit

Pakistan International Airlines has earned a profit of over Rs 2 billion for the current financial year despite the competitive operating environment and planned fleet replacement costs.

This was stated by PIA Chairman Shahid Khaqan Abbasi while addressing the shareholders at the airline’s 42nd Annual General Meeting in Karachi on Saturday.

He said that the airline’s operating revenue was Rs 52.31 billion, while costs and expenditure were Rs 48.45 billion for the period July 1997 to December 1998. PIA had an operating income of Rs 3.85 billion which is the highest ever in PIA’s history. — ANI

Import tariffs

PAKISTAN has announced a 10 per cent cut in import tariffs and a further relaxation of foreign exchange controls imposed after its nuclear tests last May.

The maximum rate of Customs cut on all items, excluding motor vehicles, will be reduced from 45 per cent to 35 per cent from today (Wednesday).

Prime Minister Nawaz Sharif told a news conference that his government cut tariffs from 65 to 45 per cent in 1997 soon after coming to power.

The latest cut would boost industrial growth and exports, Sharif said adding that the government had taken into account the impact on revenue and local industry would continue to get protection.

Sharif said the reduction was part of his agenda to eliminate tariffs completely.

He also announced that the Central State Bank of Pakistan would provide foreign exchange for travel, education and treatment abroad at a composite rate less than the open market rate from March 31. — AFP

Searle to change name

MUMBAI, March 30 (PTI) — The RPG group is discussing with Sumitomo Corporation for a joint venture in the area of household insecticides, as its pharmaceutical and agrochemicals businesses are set to operate under the banner “RPG Life Sciences Ltd” (RLSL) from April 1, 1999. RPG recently reached an agreement with G D Searle for the manufacture and marketing of their brands for a period of 50 years. The agreement for the use of the Searle name was to expire on March 31, 2000.

Siel to hike stake

NEW DELHI, March 30 (PTI) — The Shriram group company Siel Ltd today decided to increase its stake in the joint venture Honda Siel Cars India Ltd (HSCI) from 5 to 20 per cent by infusing about Rs 55 crore. “We have got the shareholders approval for increasing our stake up to 20 per cent in HSCI and now we will seek approval from the financial institutions,” an official of Siel told PTI soon after the AGM. Honda Motor Company of Japan has invested about Rs 342 crore in the joint venture and holds 95 per cent equity. Siel has invested only Rs 18 crore. During the accounting year October-September 1997-98, Siel Ltd’s net profit had declined by over 55 per cent to Rs 16.29 crore from Rs 37.28 crore last year.

India Cements gets nod

CHENNAI, March 30 (PTI) — Shareholders of India Cements Ltd (ICL) today approved the cement major’s proposal to hive off its shipping division into ICL Shipping Ltd (ICLSL). At an extraordinary general meeting (EGM) held here, the shareholders also passed a special resolution, putting a cap on any future investment or lending by ICL to the shipping division at Rs 70 crore.

Chhabria asks CLB to dismiss petition

NEW DELHI, March 30 (PTI) — BDA Chairman Kishore Chhabria has moved the Company Law Board (CLB) for dismissal of a petition filed by Vijay Mallya controlled Herbertsons Ltd that had alleged mismanagement of funds by him saying that the petitioner was guilty of suppression of material facts.

Nominee Directors of Herberstons were not only aware of all aspects of BDA (subsidiary of Herberstons) management but were in fact directly controlling and supervising the entire business of BDA, Chhabria said in a detailed reply to CLB.

The last few months has seen corporate war between Vijay Mallya and Kishore Chhabria over the ownership of Herberstons Ltd.

Following the controversy over the ownership, Vijay Mallya had filed petition in CLB alleging Kishore Chhabria of siphoning of funds from BDA to acquire shares of Herberstons.

On allegations by income tax authorities of siphoning funds of over Rs 100 crore, Chhabria said subsequent to the raid by it officials an order was issued by the assessing department which was for Rs 33 crore.

GIC MF launches D’Mat scheme
Tribune News Service

CHANDIGARH, March 30 — GIC Mutual Fund has launched an open-ended scheme title GIC D’Mat, intended to facilitate retail participation by investors in Demat trading through this scheme. The scheme will enable investors to invest in a basket of equity shares (shortlisted from a select list of 71 dematerialised scrips), without hassles and costs of opening and maintaining DP accounts. The scheme opened for initial offer on March 26, 1999 and will remain open upto April 24, 1999. The minimum investment in the scheme will be Rs 5,000.

One of the features is that investors will have an opportunity to exchange their holdings of scrips which are available for dematerialisation, with GIC D’Mat units apart from the usual option for investments in the scheme by way of cash/cheque or draft.

US $ Rs 42.43/44
STG. £ Rs 68.56/58
Euro Rs 45.46/49
Jap Yen (100) Rs 35.31/34

The RBI reference rate was Rs 42.43.

Silver gains
NEW DELHI, March 30 (PTI) — In an otherwise steady bullion market today, silver prices recovered on scattered buying support along with better overseas advices and closed higher. The quotations: Silver .999 (ready) 7680, delivery 7670, coins buyer 10,400 and seller 10,500. Standard gold 4285, ornaments 4135 and sovereign 3725.

Credit plan
BATHINDA, March 30 (TNS) — The State Bank of Patiala, today launched Rs 355.47 crore district credit plan for the year 1999-2000. In the plan which was released by Deputy Commissioner, Mr S.R. Ladhar, Rs 273.2 crore had been earmarked for agriculture and allied activities while Rs 27.01 crore had been allocated to (SSI) sector. The other priority sector had been given Rs 26.95 crore.

Bank of Punjab
CHANDIGARH, March 30 (TNS) — Bank of Punjab today opened its 49th hi-tech branch at GT Road, Goraya. By opening of the Nehru Place, Delhi branch of the bank tomorrow, the bank will reach 50th milestone within 4 years of its operation.

Escotel prizes
CHANDIGARH, March 30 (TNS) — Escotel has announced the winners of its Malamaal Bumper scheme. Sanjay Sharma from Hardwar won a Matiz car, Aswani Kumar from Meerut and Sushil Kumar from Bareilly won Escorts Ace 175cc Motorcycle each, Dinesh Gupta from Dehradun, Mandeep Gupta from Panipat and Gurmeet Singh from Bulandshahr got Motorola Star Tac 70 each, amongst other.

NABARD meet
CHANDIGARH, March 30 (TNS) — Mr N.R. Kannan, Chief General Manager, NABARD, Chandigarh, inaugurated a three-day meeting of the central Executive Committee of the NABARD Officers Association here today. The meeting will discuss the bank’s promotion policy, the revised appraisal system for officers, creation of a benevolent fund etc.

Ford tractor
AMRITSAR, March 30 (FOC) — The new 50 HP Ford 3630 tractor, manufactured by world renowned New Holland Tractors (India) Pvt. Ltd. was launched here today. The Vice-Chancellor of the Guru Nanak Dev University, Dr H.S. Soch delivered the first 21 keys to the progressive farmers of Amritsar and Gurdaspur districts.

HP telecom
HAMIRPUR, March 30 (PTI) — The Union Communication Ministry is reported to have given its consent for the dissolution of the HP Telecom Advisory Committee. The committee was constituted in November, 1997, and its tenure was two years. Its members are provided with a free telephone and free calls up to 1,150 units for every two months.