Sunday, May 23, 1999
today's calendar
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B U S I N E S S | Sunday, May 23, 1999 |
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spotlight today's calendar |
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Attack, excite and retain
talent |
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Export wheat — no
place to store it NTPC serves notices to four
electricity boards Orient Ceramics plans expansion China expects 8.2 pc economic
growth Cool T-shirts make hot sales Eicher Demm gets ISO-14001 Silver nosedives |
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Attack,
excite and retain talent MUMBAI, May 22 (UNI) — Hindustan Lever Limited (HLL) has appointed a dedicated team of managers to suggest a growth blueprint for the company for the future, which will be implemented through a new model of business growth through people growth, Mr K.B. Dadiseth, Chairman of HLL, said here today. Addressing the company’s annual general meeting, Mr Dadiseth said, our quest for growth is underpinned by a strong belief that the next, millennium will be the millennium of knowledge. This inevitably means that people, as carriers of knowledge, will be an organisation’s most important asset. The millennium of knowledge calls for a new paradigm — business growth through people growth. The better we harness the potential of our excellent people, the faster Hindustan Lever will grow. Equally, the faster Hindustan Lever grows, the more opportunities we can create to excite and retain our talent. The key to sustaining business growth is to combine insight and foresight with creative application of technology to develop markets and meet evolving needs of consumers. Information must be converted into distinctive knowledge and capabilities for an unbeatable competitive edge. Most importantly, to win in the millennium of knowledge, the company must continue to attack, excite and retain the best talent in the country, he observed. In the new business model, HLL will provide its management with unparalleled powers to imagine, innovate and implement new ideas, fully supported by investments in technology, research, marketing and people development. “As our people increasingly acquire more capabilities our businesses will develop and retain their competitive edge. This will, in turn, attract more and more talented people, completing the virtuous cycle”, Mr Dadiseth said. People must have the freedom to implement their business ideas in a manner most relevant to their consumers, but they must also be accountable to the strategic framework. This approach of freedom within a framework of accountability will require us to review our organisation structures and people management systems. To achieve rapid,
sustainable growth, HLL will simultaneously manage three
horizons — growing current businesses, expanding
into related businesses, and seeding operations for
future growth. Current categories will grow through
increasing consumption and reach with innovative business
systems. “All these steps — increasing
consumption, expanding infrastructure to reach new
geographics, and developing cost-effective business
systems — will maximise the potential of
today’s core businesses,” he added.
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Powergrid,
VSNL sign agreement NEW DELHI, May 22 — Powergrid Corporation of India Limited (PGCIL) and Videsh Sanchar Nigam Limited (VSNL) has signed a Memorandum of Understanding (MoU) on future cooperation in the area of telecommunications transmission. The MoU was signed by the Chairman and Managing Director of PGCIL, Mr R.P. Singh and Acting Chairman and Managing Director of VSNL, Mr Amitabh Kumar. As per the MoU, the partner will pool their resources and expertise for utilising optical fibre capacity in India and the South Asian region in the future for emerging markets. PGCIL is in process of setting up an optical fibre network on all-India basis, connecting the major metros and other cities over its power transmission lines for voice and data communications. The network would also be extended to the neighbouring countries in the SAARC region. VSNL, through this MoU, intends to explore the possibility of utilising this capacity to the neighbouring countries as well as within India. VSNL is also exploring the possibility of utilising the capacity made available by PGCIL to VSNL on the optic fibre network of Powergrid transmission of data, voice ad video for its existing services as well as for the ones planned to be launched by the year 2000 and beyond. “Powergrid Corporation views telecommunications as a strategic new area in its plan for the new millennium. There are synergies between maintaining and transmission network of powerlines which can also be used for providing telecommunications transmission infrastructure at marginal rates”, CMD of PGCIL, Mr R.P. Singh said. Acting CMD of VSNL, Mr Amitabh Kumar said that “VSNL is witnessing tremendous growth in value-added services and networking requirements arising out of the growth of internet, frame relay and multi-media services. The new relationship will help VSNL explore new opportunities in India and with the neighbouring countries to extend expertise in value added services in the region” PGCIL is a Central public sector company engaged in transmission of power through its transmission lines and augmentation of unified load dispatch and communications facilities. At present Powergrid is operating and maintaining about 35,000 ckt km of EHV transmission lines. The EHV lines of the company connects the major cities of Delhi, Chennai, Bangalore, Hyderabad, Mumbai etc. and provides right of way (ROW) for stringing optical fibre cable which can be used to set up high grade long distance telecommunication network of high capacity. As per the new Telecom
Policy 1999, national long distance service will be
opened for competition from January 1, 2000. However,
usage of existing backbone network of public and private
power transmission companies/ railways/ GAIL/ONGC etc
shall be allowed immediately for long distance
communication and from January 1,2000 for national long
distance voice communication. |
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MUMBAI, May 22 (PTI) — The CII as part of its West Asia-North Africa initiative is sending a senior level industrial mission to Morocco from Monday to explore avenues of industrial cooperation. H.H. Malegam, Executive Director, Tata International Ltd, will be at the head of the 11 member mission which will visit the North African country for three days till May 26. “For the Indian industry this is a fact-finding mission and will help it know the potential which Morocco offers for trade and investment”, CII said, adding that the mission would make an effort to bridge the information gap between the two countries. A large number of individual meetings would be held between Moroccan companies and the members of the mission, the focus of which would be on strengthening the economic and industrial relationship between the two countries at the level of the private sector, the CII said in a statement here today. Sectors identified by
the CII for joint ventures/ cooperation between the two
countries among others include drugs and pharmaceuticals,
agricultural machinery, software, auto components and
electrical goods. |
HP opens
arms to entrepreneurs SHIMLA, May 22 — The Chief Minister, Mr Prem Kumar Dhumal, has said the Himachal Government has decided to accord clearance to entrepreneurs for setting up industrial and other ventures in the state within one month. This is to give boost to tourism and industrial development and also to ensure speedy exploitation of hydel potential. He said the state would welcome investment from within the country and also abroad. The Chief Minister, who was addressing the fifth Ambassador’s Conference organised by the CII, Northern Region, here today, said to facilitate the entrepreneurs the government had introduced the system of single-window clearance for setting up industries in the state besides providing escort services to avoid any inconvenience to them. Mr Dhumal said the government had decided to encourage such industries in the state which would provide employment to the people of the state, generate income and were environment friendly. He said keeping in view this fact the government had decided to develop tourism in a big way with special emphasis for adventure, nature and religious tourism. Referring to the hydel potential of the state, Mr Dhumal said the government was coming out for global bids for seven medium-sized projects shortly. Mr Ashraf Jehangir Qazi,
High Commissioner, Pakistan Mr Manuel Marcelo Curto,
Ambassador of Portugal, Dr Herbert Traxl, Ambassador of
Austria, Mr Hiroshi Hirabaya Shi, Ambassador of Japan,
and Mr Wong Kwok Pun, High Commissioner of Singapore in
their remarks shared experiences in various fields of
development between India and their countries and gave
suggestions how India and their countries could be
benefited from their mutual understanding and
cooperation. |
NTPC serves notices to four electricity boards NEW DELHI, May 22 (PTI) — The State-owned National Thermal Power Corporation (NTPC) has served notices of regulation and discontinuance of power to four major power purchasers in the eastern region including West Bengal and Bihar and two in the northern region including Delhi to recover a whopping Rs 1,0761.35 crore in power dues. NTPC Chairman Rajender Singh told mediapersons he had no option but to serve the notices as his corporation was under tremendous pressure from financial institutions and multilateral lending agencies like the World Bank to keep its record of recoveries straight to be eligible for loans. These power utilities have piled up as much as Rs 10,761.35 crore at the end of April this year including a surcharge of Rs 3894.67 crore, Rajender Singh said, adding that Bihar was the worst defaulter with arrears of Rs 1860.13 crore for an average billing of 19 months with no sign of any liquidation plan for its debts. Uttar Pradesh was equally bad with arrears of Rs 2096.62 crore for a billing of over nine months. Delhi followed close with Rs 2039.68 crore for an average billing of over 11 months. West Bengal has piled up arrears of Rs 995.29 crore over 13 months and Damodar Valley Corporation Rs 444.5 crore over 26 months. While negotiations were still on to reconsider the arrears and prevent discontinuation of power to all states, the response of the Bihar Electricity Board was the most unsatisfactory, Rajender Singh said. Referring to Orissa, he said while the arrears had mounted to Rs 492.31 crore there was hope of recovering the dues as the electricity board had given an encouraging response to enhancing the line of credit. He noted with satisfaction that the previously erring SEB’s like Punjab, Haryana and Rajasthan had now given a good account of themselves. Most of the electricity boards in the south also had either reduced their arrears or cleared them. The NTPC chief regretted that the rate of recoveries had actually slipped from 90 per cent in 1990-91 to 83 per cent in 1998-99. To ensure that NTPC safeguards its interests and keeps its recoveries rates clean to avoid being blacklisted by multilateral lending agencies, Rajender Singh said it was now insisting that the electricity boards open a letter of credit which is backed by the respective state government. The power purchaser must
have an escrow account and as a third option the NTPC is
trying for a tripartite agreement between the state
government, the Reserve Bank and the Finance Minister to
stand guarantee for any defaults in payments by SEBs. |
Orient
Ceramics plans expansion NEW DELHI, May 22 — Orient Ceramics and Industries Ltd (OCIL) is planning a Rs 35 crore expansion by increasing tiles manufacturing capacity by 50 per cent to 85,000 tonnes in the wake of increased demand from the housing sector. OCIL is a dominant player in north India and would continue for to concentrate in this area. To further increase its position in the region the company is investing in Information Technology (IT) to have On-line link with its distributors. OCIL currently manufactures floor and wall tiles in 300 design and in nine sizes. For the financial year ending March 1999, OCIL reported sales of Rs 63 crore and net profit of Rs 1.5 crore. Apart from the expansion
at its Sikandrabad (U.P) plant, the company is also
looking for acquisition of smaller units to consolidate
its position in the ceramic industry. OCIL has been
operating at 100 percent capacity and looking at the
current situation demand could improve in the another
half of present fiscal. |
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NEW DELHI, May 22 (PTI) — Silver prices nosedived on the bullion market today on emergence of heavy selling by stockists and closed with notable losses. Gold also sought new lows on lack of buying coupled with lower outside advices. Silver .999 (ready) dropped by Rs 135 at Rs 7825 per kilo while silver weekly delivery lost Rs 140 at Rs 7810 per kilo. Silver coins, on the other hand, remained unchanged at Rs 10,400/10,500 per 100 pieces. Standard gold and
ornaments were down by Rs 30 each at Rs 4210 and Rs 4060
per 10 gram respectively. Sovereign was also lower by Rs
25 at Rs 3700 per piece of eight gram. |
Export
wheat — no place to store it WHILE both Punjab and Haryana, main contributors to the Central poll, are facing the problem of shortage of covered storing space for procured wheat, the proposal of the Union Food Ministry, if accepted, to allow export of one million tonnes of wheat may help them to overcome this. Both states have already touched their targets of procurement of wheat in their respective areas, these have been revised now. The target of Punjab was 70 lakh tonnes and this has been revised to 75 lakh tonnes. Earlier, Haryana was given the target of 33 lakh tonnes which has now been made 35 lakh tonnes. In view of the earlier arrivals both from within and neighbouring Punjab, Haryana may even cross 37 lakh tonnes. Initially, Punjab was facing problem of shortage of money and there was hue and cry over this. The Punjab Government had been facing financial crunch as a result of which payment had been delayed. This had created panic among the farmers and those living near the border of Haryana preferred to take their produce to Haryana mandis. This had boosted the Haryana procurements. This had also forced the procurement agencies in Haryana to make extra financial arrangements which had put drain on their resources also. However, they did not disappoint the farmers. The Union Food Secretary, Mr R.S. Mathur, who along with his officials and the FCI Managing Director Mr S.S. Dawra, was in Punjab disclosed that his ministry had recommended to lift the ban o wheat export and allow export of one million tonnes of wheat in view of bumper crop this year. Mr Mathur said that wheat production was likely to cross 13 million tonnes mark. There was some problem of storage of wheat and it was being sorted out. The FCI has also started moving old stocks of wheat and paddy from these states in order to create more storage capacity. It is expected to move out about 9 lakh tonnes of wheat and paddy by May-end. According to Mr Mathur, the Government of India will get 10 lakh tonnes of wheat for open market to be operated through the State Government. Attention has also been paid to the payment to farmers. Mr Dawra said that Punjab had produced a record production of over 140 lakh tonnes of wheat and the FCI had been allotted highest procurement target of 33 per cent from Punjab. According to Mr P. Ram, Punjab Food and Supply Secretary, the RBI has released Rs 700 crore for payment to farmers. The purchases by the private traders are sluggish this time. The previous record of procurement of wheat in Punjab is of 72.99 lakh tonnes in 1995-96. Last year the figure was 61.46 lakh tonnes as the wheat crop had suffered a setback. What is worrying most is stacking of fresh stocks of wheat. Already 36 lakh tonnes of wheat has been lying in the state before the start of the procurement season. The Director, Food and Supplies Department of Punjab, Mr A.S. Chhatwal, said that the State Government would urge the Central Government to move out at least 12 lakh tonnes to 14 lakh tonnes of foodgrains, including rice and wheat, from Punjab to other states each month in the current year. If this could be maintained, it would provide relief to the State Government otherwise the storage of paddy during kharif season would be a tough job. In the last year, the average movement of foodgrains from Punjab to other states remained about 6 lakh tonnes each month. This picked up to 9.3 lakh tonnes in March this year but in April it came down to 6.79 lakh tonnes. In Haryana, while HAFED has succeeded in procuring 36 per cent of the total arrivals in the state mandis, the Food and Supplies Department has purchased 22 per cent. In view of the earlier arrivals which ranged between 2 lakh tonnes and 3 lakh tonnes in aggregate in several mandis, Haryana may even cross 37 lakh tonnes. In fact, arrivals had begun 10 to 112 days before the expected date. This is the reason that even the peak arrival days have been advanced due to comparatively dry weather conditions in the area. Leaving aside the
problem of storage, which is the headache of the
Government, farmers in Haryana this year had fewer
problems than last year. The yield is also much better
than last year. Various state agencies will continue to
purchase the quantities being brought to the mandis at Rs
550 per quintal.
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China expects 8.2 pc economic growth BEIJING, May 22 (PTI) —China’s economy is expected to grow by 8.2 per cent in the first half of 1999 due to governments heavy spending on infrastructure, according to an official forecast. China is expecting an 8.2 per cent economic growth for the first half of 1999 with a gross domestic product (GDP) of 3.66 trillion yuan ($ 442 billion), according to the state information centre (SIC) The target for the year had, however, been set at 7 per cent in view of the Asian financial crisis and dwindling exports. China’s economy grew by 7.8 per cent in 1998. Fixed assets spending by the government would amount to 705.2 billion yuan ($ 84.96 billion) for the January-June period, a 21 per cent jump on a year-on-year basis, the report said. The increase is substantially above the 14.1 per cent rise in infrastructure spending last year, according to the figures published in the official China Securities Times newspaper yesterday. Greater fixed assets spending by the government will boost growth in the construction sector to 10 per cent on an annual basis, experts said. A steady decline in consumer prices that has threatened to stall the economy should ease in the first half of 1999, with prices falling by 2.8 per cent, the SIC report said noting that the consumer price index would be down 1.4 per cent. Prices in the first four months of the year were down 3.1 per cent from the same period in 1998. The price decline, caused in part by over capacity in many sectors, threatens the very existence of some of the industries. The Chinese people are also spending less and saving more because of fears of rising unemployment, the report said. The Chinese peoples savings grew by 19.2 per cent in the first four months of 1999. It said while calling for lower interest rates to discourage savings, and extension of credit facilities to encourage consumer spending. China’s exports are
expected to fall 3 per cent to $ 84.4 billion while
imports are expected to rise 7 per cent to $ 68.9
billion. This will result in a 15.5 billion US dollar
surplus, the SIC report said. |
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NEW DELHI, May 22 (PTI) — The trendy and easy-to-wear T-shirts make up one-third of sales of a retailer’s average turnover in the country, while at least 100-200 T-shirts are sold by retail outlets every month, a survey has said. Among a cross-section of 175 retailers surveyed by ORG Marg, 15 per cent of them reported that T-shirts made up 20 per cent of their sales, while 27 per cent retailers said T-shirts accounted for 21-30 per cent of the total sales. Mumbai retail shoppers reported that T-shirts made up 56.1 per cent of their total sales followed by Bangalore at 39.5 per cent, Delhi 28.7 per cent and Ludhiana 27.2 per cent. The survey, to be made
public in the forthcoming issue of “Business of
Fashion Images Panorama”, said quite a few retail
outlets sold 100-200 T-shirts every month and about 13
per cent of the outlets sold over 500 T-shirts and
another 11 per cent sold 200-300 T-shirts a month. Eicher Demm gets ISO-14001 CHANDIGARH, May 22— Eicher Demm, Parwanoo, a unit of the Eicher group today received ISO-14001 certificate from Mr K.Madhok, Chief Executive of the IRQS at a ceremony on the factory premises. The certificate was received by Mr P.K.Kapse, Managing Director of the Parwanoo unit. Parwanoo unit was certified as ISO-9002 plant in 1993. Mr Madhok appreciated
Eicher’s awareness regarding environment and its
commitment towards society. Mr B.C. Sachdev, General
Manager, Eicher Demm also spoke on the occasion. |
Q: (a) I am subscribing Rs 5,000 p.m. in my GPF. (b) I am a member of Group House Building Society registered with Chandigarh Administration. (c) I have recently made the payment of Rs 1,00,000 to the society as the first instalment toward the construction of flat. (1) Am I entitled to some income tax rebate on Rs 1,00,000 paid to the society. (2) What are the provisions of the National House Building Scheme upto what extent the income tax rebate is admissible under this scheme. Kindly quote the relevant section also. — D.P. Gautam, Chandigarh. Ans: As per Section 88 you are entitled to tax rebate on Rs 10,000 @ 20% per cent in respect of payment for instalment or part payment of the instalment due under any self-financing housing scheme or any scheme of any development authority, Housing Board or other similar authority or even to any company, cooperative society of which you are an employee or debtor. As you have made the payment to a cooperative society you will be eligible to deduction in respect of payment of instalment. If you have also made payment in respect of interest on loan you are eligible to get a deduction u/s 24 upto a maximum of Rs 30,000, where a loan is taken prior to 31st March, 99. If, however, the loan would have been taken say, on or after April 1, ‘99 and the house is completed latest by 31st March, 2001, then the deduction of interest would be to the tune of Rs 75,000 p.a. Q: I am a PSEB employee, HUDA allotted a plot for Rs 1,57,707 to me in the year 1994. I deposited 25 per cent of cost i.e. Rs 39,425 as earnest money. The balance was to be paid in six annual instalments with interest @ 15 per cent per annum on the balance amount. Thus I am paying yearly instalment with interest. Please clarify whether in respect of yearly instalments paid by me to HUDA, I will be eligible for tax rebate u/s 88. Besides whether I will be eligible to claim deduction on account of interest payment u/s 24 of the Income Tax Act, 1961 & any certificate from HUDA on account of interest payment is required. — Kanwar R.S. Dhegam Patiala Ans: Yes, the instalment paid by you to HUDA which happens to be a sort of Housing Board, you will be eligible to tax rebate u/s 88 on maximum of Rs 10,000 @ 20 per cent. The interest which you are paying to HUDA will be eligible for tax deduction u/s 24. This deduction u/s 24 would be limited to a maximum of Rs 30,000 in one year. It is assumed that the loan has been taken by you before 1.4.99. Q: I am a retired Punjab Government pensioner. I received arrear of revised pension from bank (because bank has not paid the revised pension on actual date since long time inspite of Punjab Government’s instructions to revised the pension). My total Income during the Annual Year 1998-99 would be as given below:- Pension: 41652.00 Arrear of revised Pension by bank: 116000.00 Total: 157652.00 My date of birth is 26.07.1930. In view of the above it is requested to kindly clarify: i) Whether the above said arrear is exempted from Income Tax or not, ii) Whether I will be entitled for benefits to senior citizens. — H.R. Bansal, Kharar. Ans: The arrear pension received will not be exempted from income-tax. However, you will be entitled to standard deduction on your pension amount. As a senior citizen, as per Section 88B of the Income-tax Act, 1961 tax rebate will be permissible to you to the extent of Rs 10,000 from the total tax payable by you. Q: I am doing business at Ludhiana. I want to know the treatment of income from gift Rs 1,00,000 after 30.9.98 from my grandmother. I had already received a gift Rs 30,000 from my grand mother in the month of April this year. My business income will be around Rs 1,50,000. Please advise me regarding the tax liability. — K.K. Goyal, Ludhiana Ans:
Gift received by you of Rs 30,000 in April, 1998 is
exempt from gift-tax. Another gift of Rs one lakh
received by you after 30th September, 1998 is again fully
exempt from gift-tax. There is no liability of Gift Tax
either on the donor or the donee. You will pay Income-tax
on your total business income. In respect of gift
received by you, there will be no tax liability. |
Q: Whether orders of transfer should be interfered with unless it is tainted with malice or passed by way of punishment? Ans: Andhra Pradesh H.C. in APSRTC, Hyderabad v C. Pentaiah (1999-I-LIJ:778) observed thus: The present writ appeal was filed by the APSRTC challenging an order of a Single Judge allowing the writ petition of the respondent-employee against an order of his transfer. The H.C. at the outset said, orders of transfers are not to be interfered with unless the same is tainted apparently with malice or it has been passed by way of punishment. Malice in common parlance would mean and imply ‘spite’ or ‘ill-will’. Obviously, question of there being any spite or ill-will in the contextual facts herein against the respondent-writ petitioner does not and cannot arise. While it is true that there was in fact a complaint lodged against the writ petitioner, but no steps appear to have been taken against him on such complaint and that itself negates that there was any intent on the part of the employer to punish him. Had there been any such intent on the part of the appellant, there would not be any difficulty for them to initiate disciplinary proceedings against the writ petitioner. But, the authorities have chosen not to do and, in that view of the matter, the question of terming the order of transfer to be as the one issued as a measure of punishment does not and cannot arise. In that view, the H.C. was unable to record its concurrence with the findings and observations of the learned Single Judge in the matter. Consequently, the H.C. set aside the order and directed the writ petitioner to join at the place to which he was transferred within a period of two weeks from the date hereof, subject, however, to his being found medically fit. In that way the H.C.
disposed of the appeal. |
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| Dabur India CHANDIGARH, May 22 (TNS) — Dabur India Limited has donated medicines to Umeed Khanna Foundation. Dabur has assisted the foundation in its endeavour to provide free medical aid to the underprivileged in Sangrur district. Umeed had been successful in establishing a network by which free medical aid is made available to 280 villages. Office-bearers Green Card Selected Cycle trade ABN Amro Microsoft centre |
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