C1 Tech has created a digital audio player called the MPWOW which enables a person to digitally download music from the Internet and listen to it like a portable cassette or CD player. — AP

City Beautiful, but costliest too NEW DELHI, Nov 17 — Chandigarh still remains to be the costliest city in India despite a drop of two points in the consumer price index for urban non-manual employees. Punjab to set up mini-hydel plants CHANDIGARH, Nov 17 — The Punjab Energy Development Agency and Utility Power Tech Ltd, New Delhi, today signed a memorandum of understanding for setting up mini-hydel plants at nine hydel sites on Kasur Branch Lower and Ferozepur Feeder having estimated capacity of 8.69 MW.

SBP celebrates foundation day
CHANDIGARH, Nov 17 — State Bank of Patiala, Parwanoo (Baroti) branch celebrated bank’s foundation day by switching over to complete computerisation.

‘Limit govt to governance’
CHANDIGARH, Nov 17 — “While the Finance Commission may consider to recommend additional devolution of funds to Punjab by the Government of India, the State Government should also rationalise its expenditure to allocate more funds for development”, suggested Mr Devinder Singh, former President, PHDCCI to the Finance Commission here today.

Company Act to be amended
NEW DELHI, Nov 17 — The Government has decided to introduce a short amendment to the Companies Act, 1956, in the coming session of Parliament seeking to promote good corporate governance and make it investor friendly.

ISE to open centre in Chandigarh
NEW DELHI, Nov 17 — The Inter-connected Stock Exchange of India Ltd has initiated an intensive dealership drive in about 30 cities and will open centres at Chandigarh, Delhi, Calcutta, Chennai, Ahmedabad, Bhopal, Madurai, Pune, Surat, Trichur and Vijayawada within the next three-four months.

Need to curb non-Plan expenditure: Sinha

NEW DELHI, Nov 17 (PTI) — Painting a rosy picture of an economic rebound, Finance Minister Yashwant Sinha today forecast an over 6.5 per cent growth this fiscal but warned public spending needed to be checked to control the burgeoning fiscal deficit.

“Economy is on the rebound. All important indices are doing well .. but despite years of economic reforms, unfortunately we have not been able to get the better of the fiscal situation,” Sinha said at the Economic Editors Conference here.

Elaborating on the difficult fiscal situation, Sinha said there was however no cause for ‘’panic’’ as ‘’there is nothing extraordinary this year. Serious steps needed to be taken to rein in fiscal deficit in medium term, a problem which is two decades old.’’

Explaining the need to curb non- Plan expenditure, Sinha said the interest burden alone accounted for Rs 90,000 crore, defence outlay additional Rs 46,000 crore, Rs 10,000 crore each on grants to States and pensions, Rs 6,000 crore for central police and Rs 4,000 crore on food subsidy.

Expenditure on all these heads could only go up in the coming year, Sinha said adding unless “we cut non-Plan expenditure we would only be eating into our resources for development”.

Economy reviving: Sinha said it was now common knowledge that the economy was reviving. “Some months ago, I had myself said that the signs of revival were tentative. We have to watch the developing situation in future months before we can say about the revival”.

Sinha expressed happiness that the industrial production, exports and foreign exchange reserves were showing encouraging signs besides the inflation being kept under control.

On food grain production, Sinha said the agricultural production would be higher than last year despite the loss on kharif crops in West Bengal and cyclone-hit Orissa.

If the first six months of the current fiscal are any indication “we should have a rate of (GDP) growth between 6.5 per cent and 7 per cent by the end of current financial year”.

On the export front, Sinha said though there was some worry, the September figure of 12 per cent growth is satisfactory. The first six months had seen an aggregate export growth of 7.3 per cent “which is heartening”.

States warned: Sinha described as “epoch making” the decision of the Chief Ministers’ conference to set a 14-month time-frame for moving towards VAT, but warned the Centre will not provide special aid to States if they fail to undertake mid-term fiscal correction.

“The memorandum of understanding is time bound. It will be our joint responsibility to see that this deadline is met. We will continue to persuade the States to adhere to it by undertaking a mid-term fiscal correction programme”, Sinha said.

Stating that legislation for a special facility fund will be enacted in the winter session of Parliament, Sinha said the Centre will not allocate funds if the States do not meet the stipulated mid-term fiscal correction.

He asked the State Governments to shun populist programmes and said it was redeeming that many of the States have realised the futility of such an exercise.

GAIL disinvestment: Sinha defended the recent international offering of 155 million shares of GAIL said allegations of a scam and and distress sale were “absolutely unfounded and misplaced”.

City Beautiful, but costliest too
Tribune News Service

NEW DELHI, Nov 17 — Chandigarh still remains to be the costliest city in India despite a drop of two points in the consumer price index for urban non-manual employees (CPI-UNME).

According to the data made available by the government, the CPI-UNME for October, 1999 stood at 433 – higher by 76 points than the national average of 357.

Chandigarh’s index is also much higher than the indices of the four metropolitan cities of Delhi (363), Mumbai(356), Chennai(388) and Calcutta (337). The index for the month of September for Chandigarh was 435.

It may be mentioned that during last six months, the index for the city has always remained higher than 400 and lowest being 415 in May this year and no other city has recorded such high level of index continuously over a period of time.

Moody’s ups outlook on India’s debt

NEW DELHI, Nov 17 (UNI) — Moody’s investor services has upgraded its outlook on India’s foreign and domestic currency debt ratings, stating that the national democratic alliance Government has a fresh chance to make market-oriented changes at the start of what could be a longer term in office.

In its latest report on India, the US-based rating agency raised the outlook to positive from stable for the country’s BA2 ratings on these two fronts.

Besides increased chance of economic reforms picking up pace, the premier rating agency attributed rise in the outlook to additional explanations for renewed optimism derive from the country’s ability to withstand last year’s emerging markets crises and nuclear sanctions as well as the improved maturity structure of its external debt.

Signs of industrial growth recovering after three years of weak performance indicate that corporate restructuring is paying off, especially in the private sector, where companies are focusing increasingly on their core competencies, the report said.

Moody’s said the oft-repeated remarks on irreversibility of direction of economic reforms contains more than a grain of truth – the problem has been more the pace of this reform rather than its path.

The agency also pointed out to the troublesome structural challenges that constrain India’s rating, particularly heavy public debt and debt service burden, labour market and bureaucratic rigidities, infrastructure shortfalls, and heightened regional tensions with Pakistan.

Budgetary imbalances are pervasive at all levels of the public sector, the report noted. Although the Government consistently aspires to a more prudent fiscal policy, the reality nearly always disappoints.

Analysts remain concerned that India’s large trade and current account deficits, which have increased its dependence on potentially volatile capital inflows, might widen further in the near to medium term.

Moody’s report indicates that the country’s macro-economic policy framework has placed too little emphasis on achieving concrete results despite decades of economic plans. Over the medium term, India’s growth rate will need to be higher than the roughly 6 per cent average of the 1990s, and in fact, even faster than the Government’s usual 7 per cent target, in order to raise average living standards.

The increase in tempo that has characterised recent government pronouncements on economic policy, however, indicates at least its intention to devote new energy to addressing structural problems.

The opening of the insurance sector to foreign investors and a more aggressive divestment agenda for public sector enterprises could strengthen foreign investment flows, but these changes would need to be complemented by further modernisation and liberalisation of the banking system and capital markets.

‘Limit govt to governance’
Tribune News Service

CHANDIGARH, Nov 17 — “While the Finance Commission may consider to recommend additional devolution of funds to Punjab by the Government of India, the State Government should also rationalise its expenditure to allocate more funds for development”, suggested Mr Devinder Singh, former President, PHDCCI to the Finance Commission here today.

The Chamber is for the devolution of funds to the State, the tax structure has to be modified by providing a greater proportionate share of tax revenue to the State so as to augment the infrastructure. This will boost the exports scenario because the drawback of Punjab being a land-locked State can be compensated only by good means of transport.

To root out the temptation of unethical practices to augment the State’s coffers the stamp duty rate, passenger tax, permit fee for commercial vehicles and other State levies should be reasonable and comparable to the neighbouring States in order to encourage compliance and thereby augment revenue.

Another factor towards its achievement is the voluntary retirement scheme for surplus employees in the various departments on the pattern of Central Public Sector enterprises.

To take Punjab on the road to progress private Investment has to be encouraged by providing a conducive environment to attract investment in power, roads, industrial parks, etc.

SBP celebrates foundation day
Tribune News Service

CHANDIGARH, Nov 17 — State Bank of Patiala, Parwanoo (Baroti) branch celebrated bank’s foundation day by switching over to complete computerisation. Mr A.K. Batra MD of the bank performed the inaugural ceremony. The branch disbursed loans to 51 individuals.

Mrs Prem Lata, DGM, Chandigarh Zone said these branches have disbursed 301 loans aggregating Rs 2 crore to various individuals under these schemes.

Bank’s Sector 7-C branch held a customers meet. Mr Sanjay Arora, a taxation expert, delivered a talk on taxation planning in respect of individuals. Mr A.S. Bhatia, Chief Manager, explained vehicle, housing and consumer durable loans.

Sector 10-D branch also celebrated the foundation day in the branch. Mr J.K. Khosla, branch manager, distributed cheques worth Rs 10 lakh to 53 employees of Govt MSC College and General Hospital.

JALANDHAR: State Bank of Patiala today celebrated its foundation day at zonal office, Jalandhar and a function was organised which was presided over by Mr S.P. Mittal, Deputy General Manager.

Punjab to set up mini-hydel plants
Tribune News Service

CHANDIGARH, Nov 17 — The Punjab Energy Development Agency and Utility Power Tech Ltd (UPL), New Delhi, today signed a memorandum of understanding for setting up mini-hydel plants at nine hydel sites on Kasur Branch Lower and Ferozepur Feeder having estimated capacity of 8.69 MW.

While on behalf of the UPL, the MoU was signed by Mr G.S. Sohal, Executive Director, National Thermal Power Corporation, and Mr S.S. Dua, Director, BSES, on behalf of PEDA, it was signed by Mr P.S. Aujla, Chief Executive, PEDA, according to an official press release,

PEDA has identified 130 hydel sites with an estimated potential of 130 MW. These sites have ultra low heads and are being exploited for the first time in the country.

Out of these sites, 50 have already been allotted under Phase I, II and III to private developers. The remaining 68 sites are likely to be advertised shortly.

MoUs for 29 hydel sites have already been signed and for the balance 21, MoUs will be signed within the next few days.

The exploitation of these sites will add 43 MW to the state grid with a total investment of Rs 240 crore through private sector participation.

PEDA will act as a facilitator for promotion and development of these small hydro projects for obtaining various statutory clearances from the state/central government’s for signing of MoUs with other agencies and departments.

Company Act to be amended
Tribune News Service

NEW DELHI, Nov 17 — The Government has decided to introduce a short amendment to the Companies Act, 1956, in the coming session of Parliament seeking to promote good corporate governance and make it investor friendly.

According to an official release issued here today, an initiative to this effect has been set in motion in right earnest.

During October 1999 the investors’ protection cell in the Department of Company Affairs settled 108 complaints.

In addition, a committee on law relating to insolvency of companies under the chairmanship of Justice K.S. Paripoornan, a retired judge of the Supreme Court , was set up.

ISE to open centre in Chandigarh
Tribune News Service

NEW DELHI, Nov 17 — The Inter-connected Stock Exchange of India Ltd (ISE) has initiated an intensive dealership drive in about 30 cities and will open centres at Chandigarh, Delhi, Calcutta, Chennai, Ahmedabad, Bhopal, Madurai, Pune, Surat, Trichur and Vijayawada within the next three-four months.

Talking to newsmen here today, Mr M.R. Mayya, Chairman, ISE, said that ISE has received good response for its scheme of appointing dealers throughout the country. “Dealers are direct trading participants in ISE, the national-level stock exchange created by 15 regional stock exchanges”, he said.

Mr Mayya said that dealers as well as traders from the participating regional stock exchanges would be provided a revolutionary product called “access”, which would enable them to access the national segment created by the regional stock exchanges as well as NSE and BSE.

ISE has already filed its initial application for membership of NSE through a subsidiary being floated by it, which would be called “ISE Securities and Services Ltd”.

The exchange is also gearing itself technologically for providing comprehensive, nation-wide solutions for new segments such as support for commodities exchanges, Internet trading, derivatives, retail debt market and IPO marketing.

Seminar
CHANDIGARH, Nov 17 (TNS) — SIDBI organised a seminar here today which was attended by number of industry associations from the States of Haryana, Punjab and UT Chandigarh.