Panel on industry set up
GURGAON, May 6 — A committee having representatives of industry and various departments will be set up in Haryana to make recommendations about industry related issues.

Hindalco posts 14 pc increase in net profit
MUMBAI, May 6 — The Aditya Birla group’s flagship company Hindalco today reported a 14.2 per cent increase in its net profit to Rs 566.78 crore for the year ending March 31, 1999.

AI, IA & ITDC divestment to take
off soon

NEW DELHI, May 6 (PTI) — The disinvestment of Air India (AI), Indian Airlines (IA) and the India Tourism Development Corporation (ITDC) will commence soon, Minister for Civil Aviation and Tourism Ananth Kumar said here today.

Policy decisions regarding divestment had been taken earlier and “all disinvestment programmes will continue” as the government is functioning with normal powers.

The disinvestment plan of AI, which was approved by its Board on the basis of recommendations of the Disinvestment Commission, has been sent to the Cabinet Committee on Economic Affairs for its consideration.

Similarly, the divestment plans of Pawan Hans Helicopters Limited have been approved by the Ministry and forwarded to the Cabinet.

The process of privatisation of the Hotel Corporation of India, an AI subsidiary, has been initiated with advertisements put out for appointment of consultants, while divestment of ITDC was “on the anvil and a note has been sent to the Cabinet”.

On IA, Mr Ananth Kumar said details of the divestment proposal would be finalised shortly. While an 11 per cent stock option is likely to be given to the employees, 40 per cent would be offered to the financial institutions.

On corporatisation of the airports in Delhi, Mumbai, Calcutta and Chennai, the minister said 54 respondents had applied to the tenders for finalising legal and financial consultants for this purpose and a decision to appoint them would be taken “shortly”.

The Airports Authority of India (AAI) and the Karnataka State Industrial Development Corporation recently signed an MoU for a 13 per cent stake each for Bangalore international airport, while a 74 per cent stake had been offered to foreign partners for which global tenders would be issued shortly.

A techno-economic feasibility report on the expansion of Hyderabad airport was “expected anytime” and a decision on it would be taken soon after.

Mr Ananth Kumar said he had held talks with the Gujarat Chief Minister on the extension of the Ahmedabad Runway for which foreign participation might be invited.

Likewise the Punjab Government would also sign an MoU on the extension of the runway for Amritsar airport shortly, he added.

Panel on industry set up
Tribune News Service

GURGAON, May 6 — A committee having representatives of industry and various departments will be set up in Haryana to make recommendations about industry related issues. Mr P. Raghavendra Rao, Chief Administrator, HUDA, addressing a Gurgaon Chamber of Commerce and Industry meeting here today, announced that the committee would hold its first meeting on May 12.

Mr Rao said the government was simplifying rules and policies. The rules relating to change of land use (CLU) had been diluted. The government was strict on giving building plan approval and occupation certificates within a definite time-frame.

Mr P.K. Jain of the Chamber said the total area of an industrial estate be acquired in one go and there should be no subsequent addition of new phases. This would prevent mushrooming of unauthorised residential areas.

The Chamber alleged that the charges for external and internal development were exorbitant. The Chamber expressed resentment over lack of sewerage system and secondary treatment plants in the industrial areas.

A demand was also made for constituting an industrial area maintenance authority to tackle problems of inadequate water supply, maintenance of roads, streetlights and security.

‘5.7 per cent growth if monsoon is normal’

NEW DELHI, May 6 (PTI) — Indian economy is likely to grow at 5.7 per cent during the current financial year if the monsoon is normal and the agricultural sector continues to do well, the National Council of Applied Economic Research (NCAER) said here today.

This is higher than 5.4 per cent witnessed in 1998-99, the NCAER said. A good agricultural production growth of 5 per cent during 1998-99 is expected to boost demand in the economy.

The council, however, said that GDP could grow at 6 per cent if in addition to the good agricultural performance projected, the sops to the housing sector proposed in the Union Budget 1999-2000 were implemented.

“In the face of higher demand from agriculture and housing, industry is projected to grow at 5.3 per cent while GDP growth could be pushed up to 6 per cent”, it added.

According to NCAER, some leading indicators show signs of an upturn in the industrial performance. There has been an increase in the demand for cash by the public along with greater demand for commercial vehicles and an acceleration in their production.

Business confidence also improved but may now be affected by the political uncertainty.

The services sector is expected to remain buoyant. Growth rate in the services sector in real terms is likely to go up to 7.7 per cent in 1999-2000 as against 7.1 per cent last year.

The agricultural growth is expected to be 4.1 per cent and considering the high base of 1998-99 this would be a good performance.

The inflation rate is likely to remain within 8 per cent assuming the money supply growth is contained within the targeted levels of 15-16 per cent.

On the fiscal deficit front, as per the definition used by the government in the Union Budget 1999-2000 which excludes small savings and the new base year 1993-94, there appears to be a sharp improvement from 6.5 per cent last year to 4.2 per cent this year.

The improvement is thus due to the change in the definition and GDP base year rather than prudence on the part of the government.

However, according to the council’s calculation, the fiscal deficit would be 5.9 per cent using the old definition and old base year (1980-81), thus showing a marginal improvement owing to higher receipts on account of the addition to tax revenue as a result of the new proposals.

Hindalco posts 14 pc increase in net profit

MUMBAI, May 6 (PTI) — The Aditya Birla group’s flagship company Hindalco today reported a 14.2 per cent increase in its net profit to Rs 566.78 crore for the year ending March 31, 1999.

Sales of the aluminium major witnessed a 20 per cent rise to Rs 1767 crore (Rs 1473 crore) for the reporting period.

“The increase in sales was driven by a 17 per cent increase in volume and a 3 per cent improvement in realisation”, company Chairman Kumarmangalam Birla told reporters after the Board meeting to take into account the financial results.

The Board of Directors of the company has recommended a dividend of Rs 6.50 per share (Rs 5.25) and the total dividend payout would amount to Rs 53.24 crore for the year.

Other income of the company rose 13.3 per cent to Rs 145 crore due to efficient treasury operations, R.K. Kasliwal, Joint President of the company said.

Depreciation provision was up by a whopping 60.5 per cent to 124.5 crore (Rs 77.6 crore). Kasliwal explained that the increased provision was due to “most of the capitalisation which has taken place this year”.

There was a 69 per cent increase in tax provision at Rs 147 crore (Rs 87 crore), he said. The earnings per share (EPS) rose 14.2 per cent to Rs 76.1 (Rs 66.6) and the cash EPS stood at Rs 92.8 (Rs 77.1).

ITC Hotels net drops

NEW DELHI, May 6 (PTI) — ITC Hotels, an ITC group company has recorded a dismal performance in fiscal 1998-99 with its income from operations falling 7.21 per cent and net profit declining a massive 54.33 per cent.

Company’s income from operations fell from Rs 130.37 crore in the previous fiscal to Rs 120.97 crore during the fiscal 1998-99 with its net profit after tax falling to 11.97 crore during fiscal 1998-99 as against Rs 26.21 crore in the previous fiscal, according to its audited results taken on record by Board of Directors at their meeting today.

The company has recommended a 15 per cent dividend.

by Pushpa Girimaji
In hot water with cool cotton

A reader recently wrote about a pair of cotton trousers that he purchased for the summer. They were expensive and fitted well, except for the length, which was cut short to suit his height. But that was not the end of the matter. After every wash, the fabric shrank and after three washes, it was unfit to wear. It had become too short. He took it back to the shopkeeper, who refused to take responsibility either for the shrinkage or for his failure to advise the consumer against shortening the length. The ready-made garment also did not carry any label indicating that the fabric would shrink, writes the consumer.

During the process of weaving and even finishing, the cotton yarns are stretched and later when the fabric is washed, the yarns return to their normal condition. This results in shrinkage of the fabric. In order to overcome this problem and control the percentage of shrinkage AZT the consumer’s level, some manufacturers subject the fabric to a process of compressive shrinkage. If such a process of ‘pre-shrinking’ is executed well, then residual shrinking should not exceed one to two per cent. Otherwise, the percentage of shrinkage varies from fabric to fabric (from 8 per cent to 25 per cent or more) and depends on factors like construction of the fabric, the quality or the type of yarn used and the finishing process. Sometimes, the mills also deliberately stretch the fabric artificially under mechanical pressure to gain length. Such cloth may well shrink abnormally on washing.

A consumer buying a cotton fabric or a ready-made garment made of cotton cloth therefore needs to know: (a) whether the cotton fabric has been subjected to pre-shrinking and if so (b) what is the percentage of residual shrinkage that one should expect (c) if it is not pre-shrunk, then what is the percentage of shrinkage that the fabric will undergo in the length as well as in the width (d) how long should a consumer soak the cloth in water for ‘shrinking’ the fabric before giving it for tailoring and (e) in case of ready-made garments, whether one should buy a bigger size and if so, should it be one or two sizes bigger? Since all this information is not available to consumers, one needs to demand mandatory labelling on shrinkage of cotton fabrics and clothes.

Such mandatory labelling will help consumers assess accurately, the size of a garment or the length of a fabric that is required to be bought. It also helps in comparing prices. A fabric, for example, might be inexpensive, but if its length is going to get reduced by 25 per cent after one or two washes, then one has to take that into consideration while comparing prices with a more expensive pre-shrunk fabric. As far as pre-shrunk fabrics are concerned, experts say that a fabric that goes through a compressive shrinkage process is far more durable as the yarns are drawn closer during shrinkage. The process also gives a slight lustre and smoothness to the fabric, thereby giving a better appearance.

However, let not the fear of shrinkage keep you away from cool and comfortable cotton this summer. Just check whether the fabric that you are choosing is pre-shrunk and if it is not, do not hesitate to ask the retailer about the percentage of shrinkage. And most important of all, do not forget to demand labelling laws that would help consumers make an informed choice.

Quality test
Tribune News Service
CHANDIGARH, May 6 — The CII (Northern Region ) will host the regional finals of the 11th quality circle competition here tomorrow. Capt. Kanwaljit Singh, Finance Minister, Punjab, will give away trophies to the winners. Over 400 workers, supervisors and managers will participate in competition.

Exhibition
Tribune News Service
CHANDIGARH, May 6 — Four youngsters, — Taran, Vatsala, Dimpy and Gunjeet — will hold a “creative” exhibition-cum-sale of quilts and ladies suits at Phulkari in Aroma Hotel here from May 7 to 8. On display will be polyfill AC quilts, dohars, suits in cool summer fabric-voiles, nets, chiffons, organza etc.

Essar
NEW DELHI, May 6 (UNI) — Essar Cellphone today announced the launch of bilateral automatic roaming between Delhi and Russia. The roaming service will allow Essar Cellphone subscribers in Delhi to use their existing SIM cards and also retain the same mobile number while seamlessly roaming anywhere in Russia.