Sinha rules out dual citizenship for NRIs
WASHINGTON, Sept 30 — Finance Minister Yashwant Sinha has lauded the role of non-resident Indians in moulding public opinion in the USA in the wake of the Pokhran tests last year but ruled out dual citizenship for them in the near future.


Gold calms down
NEW DELHI, Sept 30 — Gold prices tumbled down on the bullion market today on stockists offering influenced by a fall in its prices in the international market while silver maintained an upward march on increased buying.

Agriculture, services boost economy
NEW DELHI, Sept 30 — A strong agriculture and manufacturing sector boosted the GDP growth to 5.5 per cent during the first quarter of the current financial year, up from 3.6 per cent in April-June 1998, giving firm hopes of economic revival after the nearly two-year long slowdown.

Bid to dispose of Incan assets
CHANDIGARH, Sept 30 — The Incan Mutual Benefit Ltd (N) Depositors Association, Yamunanagar, has alleged that the Incan group is trying to dispose of its assets and cautioned the public against buying any property belonging to the Incan group of companies which have failed to pay back deposits on maturity to thousands of investors, mostly ex-servicemen.

Agro Dutch bags order
MUMBAI, Sept 30 — Chandigarh-based Agro Dutch Foods Ltd has bagged a $ 20 million (over Rs 90 crore) order from the US-based Kanan group for export of 6,000 tonnes of mushrooms per annum for three years to ready-to-eat foods major Lipton USA.

Insurance Expo ’99 on October 15
CHANDIGARH, Sept 30 — The first one-day “International Insurance Expo 99” will be organised here on October 15 by the UGCE and the Indo-American Chamber of Commerce.

VSNL records 36.89 per cent profit
NEW DELHI, Sept 30 — Videsh Sanchar Nigam Limited has recorded a 36.89 per cent growth in net profits crossing the Rs 10 billion mark for the first time.

Instability affects UK investments
NEW DELHI, Sept 30 — The British High Commissioner to India, Sir Rob Young, today blamed political uncertainty for a decline in British investment in India in the last three years.

Forbes to sell stake in Goodlass Nerolac
MUMBAI, Sept 30 — The Tata group’s Forbes Gokak Ltd today announced the divestment of the entire shareholding of the company and its associates in Goodlass Nerolac Paints Ltd to foreign collaborator Kansai Paint Co Ltd of Japan.

Yashwant Sinha rules out dual citizenship for NRIs

WASHINGTON, Sept 30 (PTI) — Finance Minister Yashwant Sinha has lauded the role of non-resident Indians in moulding public opinion in the USA in the wake of the Pokhran tests last year but ruled out dual citizenship for them in the near future. Sinha, however, promised to consider whether it will be possible to reduce the $ 1,000 fee now charged for the PIO (Person of Indian Origin) card.

This card gives an NRI with a US passport all the rights of an Indian in India sans the right to vote.

For dual citizenship, Sinha said at a press conference here yesterday, a national consensus is needed, for it will require an amendment of the Indian Constitution.

India to be G-20 member: India has accepted membership of the G-20 to be launched in Berlin in December. “We are very happy to be in the G-20 because it is based on the recognition that India has an increasing global role and is an important country in the global economy,” Sinha said.

The G-20 is a successor to the “Willard Group” which had 33 members, including India. It was organised by the USA and other G-7 nations (USA, Japan, Germany, Britain, France, Italy and Canada) a couple of years ago.

G-20 deputies will meet in November, before the ministers meet in December in Berlin under chairmanship of Canada.

Bank-IMF meet: Sinha has called for a sweeping re-assessment of policies of the World Bank and the IMF in the light of the recent upheavals in East Asia and demanded a greater say for the developing world in these multilateral institutions.

“The recent upheavals have sparked... A debate on the approach to macroeconomic policy, capital flows, exchange rate regimes, fiscal and financial systems, and standards and codes. We must be prepared to reassess earlier positions,” he told the annual meeting of the Bank and IMF here yesterday.

“It is one of the ironies of the last 40 years,” he said, that “developing nations as a group have grown much faster than developed nations over this period, and that their relative economic strength in terms of output and trade has increased substantially, their role in international economic governance has not expanded commensurately.

“This anomaly needs to be corrected in the decision-making structures of the ‘new’ financial architecture taking shape. Developing countries must have due representation, he said.

Sanctions violate charter : Sinha has criticised the US-led sanctions on India after its nuclear test last year as violative of the Fund Bank charter that requires these multilateral institutions to be apolitical.

“We must ensure that political considerations are not injected into programmes of bretton woods institutions. We must strive to protect their integrity and objectivity from encroachments of short-term, national, foreign policy expediencies,” he told the Bank-IMF meeting.

Agriculture, services boost economy

NEW DELHI, Sept 30 (PTI) — A strong agriculture and manufacturing sector boosted the GDP growth to 5.5 per cent during the first quarter of the current financial year, up from 3.6 per cent in April-June 1998, giving firm hopes of economic revival after the nearly two-year long slowdown.

As per the estimates (GDP) for April-June 1999, released by the government today, the services sector mainly the finance, insurance, transport and trade further boosted the economy with impressive performances.

However, mining and power sectors performed contrary to general trends showing either a negative growth or slowdown, the data by the Central Statistical Organisation (CSO) revealed.

Manufacturing sector grew at 6.2 per cent in the first quarter of the current fiscal against 5.2 per cent in the same period in 1998-99.

The other sectors which recorded significant growth rates contributing to the improved GDP performance were agriculture, forestry and fishing which recorded 2.8 per cent growth against 2.1 per cent and construction sector (6.7 per cent against 5.2 per cent).

The most impressive performance was recorded by trade, hotels, transport and communication sector which grew at the rate of 6.2 per cent in the first quarter of this year against 1.2 per cent last year.

Financing, insurance, real estate and business service besides community, social and personal services also posted good rates at 7.8 per cent each against 6.4 and 6.5 per cent, respectively.

However, mining and quarrying sector continued with its dismal performance recording a minus 2 per cent growth rate in April-June this fiscal as compared to a minus 0.6 per cent growth rate last year.

Similarly, growth rate of electricity, gas and water supply sectors also dipped to 5.2 per cent compared to 9.7 per cent in 1998-99.

Using inputs given by the Department of Agriculture and Cooperation, the CSO said production of rice during the kharif season of 1999-2000 was expected to show a growth rate of 4.2 per cent over the corresponding period in the previous year.

However, production of cereals and pulses was expected to decline by 10 per cent and 8 per cent, respectively in the kharif season.

Commercial crops production was expected to drop by 26.2 per cent in the kharif season, the CSO said.

But the sugarcane production was expected to register a growth rate of 4.9 per cent during the quarter.

Among the services sector, the key indicators of the railways in terms of net tonnage and passenger kilometres showed growth rates of 10.7 and 2.1 per cent, respectively during April-June 1999-2000 as against (-6.6 per cent) and 4.2 per cent respectively.

The other key indicators like production of commercial vehicles, cargo handled at major ports, postal and telecommunication revenue, aggregate bank deposits, bank credits and revenue expenditure of the Central Government have registered growth rates of 30.4 per cent, 10.1 per cent, eight per cent, 18 per cent, 15 per cent and 21 per cent, respectively.

GDP at current prices in the first quarter of this fiscal was estimated at Rs 4,11,835 crore as against Rs 3,71,549 crore showing a rise of 10.8 per cent.

Except in the case of trade, hotels, transport and communication, the growth rate of all other sectors declined in April-June 1998-99 at current prices.

While the manufacturing sector recorded a growth rate of 9.1 per cent compared to 9.7 per cent, agriculture, forestry and fishing grew at 11.4 per cent (12.6), mining and quarrying -3.9 (7.3), electricity, gas and water supply 15.5 (20.6) and construction 11 per cent (11.6).

Trade, hotels and transport sector grew at the rate of 10.4 against eight per cent in 1998-99.

Bid to dispose of Incan assets
Tribune News Service

CHANDIGARH, Sept 30 — The Incan Mutual Benefit Ltd (N) Depositors Association, Yamunanagar, has alleged that the Incan group is trying to dispose of its assets and cautioned the public against buying any property belonging to the Incan group of companies which have failed to pay back deposits on maturity to thousands of investors, mostly ex-servicemen.

In a statement here today Mr Amar Singh Saini, President of the Association, said that the Company Law Board in its order dated August 31, 1999, had directed Incan Mutual Benefit Ltd to repay deposits of the depositors in a phased manner and prohibited the disposal of its assets without permission of the RBI. The group has 29 acres of land at Naraingarh.

Mr Saini said 95 per cent of the assets of Incan Mutual Benefit Ltd. are the loans outstanding against Incan companies to which Manjit Singh Aujla had transferred the funds of IMBL being Chairman of the group.

The indebted companies are Incan/Deva Investment & Leasing Ltd., Incan Consultancy, Incan Constructions Ltd. Incan International Ltd., Incan Fertilisers & Chemicals Ltd., Incan Pharmaceuticals Ltd., Ratan Micronutrients Ltd., Incan Sales Ltd., Stalwart Holdings Ltd., Vinayak Traders & Transporters Ltd.

Gold calms down

NEW DELHI, Sept 30 (PTI) — Gold prices tumbled down on the bullion market today on stockists offering influenced by a fall in its prices in the international market while silver maintained an upward march on increased buying.

Marketmen said the gold prices, which soared in the late evening trading on reports of a distinctly higher prices in London retreated and closed at Rs 4725 per 10 gram.

”There was some natural correction in gold prices after the stunning rally last evening”, said All India Sarafa Bazar President Sheel Chand Jain and described the bullishness as a temporary phase.

Marketmen said the boom in gold prices might be a short-term gain but silver benefited the most as it shot up to a recent record high in line with the firm market sentiment.

“Once the dust settles, gold will give a clear picture and anything to predict now would be foolishness”, said Chand Mehra of Enchante Jewellery.

The following were today’s quotations: silver .999 (ready) 8400 and delivery 8295. Silver coins buyer 11,300 and seller 11,400. Standard gold 4725, ornaments 4575 and sovereign 3900.

Agro Dutch bags order

MUMBAI, Sept 30 (PTI) — Chandigarh-based Agro Dutch Foods Ltd (ADFL) has bagged a $ 20 million (over Rs 90 crore) order from the US-based Kanan group for export of 6,000 tonnes of mushrooms per annum for three years to ready-to-eat foods major Lipton USA.

“ADFL has been chosen against stringent hygienic and process requirements prescribed by non-resident Indian-owned Kanan Group, which also plans to make a strategic acquisition of over 5 per cent stake in it,” company Managing Director Malvinder Singh told newsmen here today.

Kanan group has agreed to take the stake at a substantial premium over the present market price of the stock through preferential allotment, he said, adding ADFL was listed on six stock exchanges- BSE, ASE, Madras, Jaipur, Delhi and Ludhiana.

The capital base of the company, which is at Rs 13.77 crore now, was expected to increase by about 5 per cent with the issue of preference shares, he said.

The promoters’ stake would be around 55 per cent after they acquire the shareholding of the Ministry of Food Processing Industries of Punjab and the preference issue is concluded.

Insurance Expo ’99 on October 15
Tribune News Service

CHANDIGARH, Sept 30 — The first one-day “International Insurance Expo 99” will be organised here on October 15 by the UGCE and the Indo-American Chamber of Commerce.

Mr N. Rangachary, Chairman of Insurance Regulatory Authority, will be the chief guest, while Ms Vineeta Rai, Adviser to the UT Administrator will inaugurate the conference.

Announcing this here today, Ms Payal Sharma, co-ordinator, IIE ‘99, said the insurance sector is expected to be thrown open to privatisation as soon as the new Government is installed at the Centre.

Mr B.K. Sharma of the United Group of Chartered Engineers said speakers from the Insurance Regulatory Authority, embassies, multinational insurance giants like Allianz, Zurich, Prudential, Metlife and Royal & Sun Alliance along with the LIC will share their experiences.

VSNL records 36.89 per cent profit
Tribune News Service

NEW DELHI, Sept 30 — Videsh Sanchar Nigam Limited (VSNL) has recorded a 36.89 per cent growth in net profits crossing the Rs 10 billion mark for the first time.

Net profit of the company in 1998-99 stood at Rs 1325

crore - up from Rs 968 crore in 1997-98. Revenue grew to Rs 7,175,57 crore, registering a growth of 11.49 per cent over the previous year.

The company’s Internet revenues have grown by over 200 per cent to Rs 173 crore while its non-telephony revenues have grown to Rs 507.10 crore — an increase of 57.32 per cent compared to 1997-98.

VSNL’s revenues also include a foreign exchange component amounting to Rs 4737.62 crore — Commenting on the performance of the company at the Annual General Meeting today, the Chairman and Managing Director of the company, Mr S K Gupta said: “With the rapid induction of the Internet, telecommunications will be faced with new rules of the game.”

Instability affects UK investments
Tribune News Service

NEW DELHI, Sept 30 — The British High Commissioner to India, Sir Rob Young, today blamed political uncertainty for a decline in British investment in India in the last three years.

Speaking at a meeting organised by the PHDCCI here today, Sir Rob said that coupled with economic slowdown, the nuclear tests and the Kargil war, many British companies have withheld proposed investments in India.

He hoped the new government would send favourable signals to international investors.

Earlier, the President of PHDCCI, Mr Ashok Khanna said small-scale units are keen on forming strategic alliances with their counterparts in other countries.

Forbes to sell stake in Goodlass Nerolac

MUMBAI, Sept 30 (PTI) — The Tata group’s Forbes Gokak Ltd (FGL) today announced the divestment of the entire shareholding of the company and its associates in Goodlass Nerolac Paints Ltd (GNP) to foreign collaborator Kansai Paint Co Ltd of Japan.

The 28.56 per cent shareholding of the main promoters — Forbes Gokak and Associates — in GNP would be divested at a price of Rs 250 per share aggregating Rs 98.56 crore, Forbes Gokak said in a statement here.

India Cements Limited is planning a debt swap to prepay some of its loans and to reduce the high cost portion of its Rs 139 crore loans.

The company proposes to bring forth a debenture issue early next year for this purpose.

Price index
SHIMLA, Sept 30 (UNI) — The all India consumer price index number for industrial workers (CPI-IW) on base 1982-100 for the month of August 1999 has increased by 2 point to stand at 426 points, according to the Labour Bureau here today.

NFL dividend
NEW DELHI, Sept 30 (TNS) — NFL has announced a dividend of 30 per cent for 1998-99. At its 25th annual general meeting held here. NFL announced that the sales turnover for the year has been Rs 2,302.21 crore as against Rs 2,221.60 crore during the pervious year. The pre-tax profit stood at Rs 58.05 crore. The company has achieved a total sale of 32.94 lakh MTs of fertilisers during the year — up by 2.26 lakh MTs from the previous year’s figure.

Nasscom
NEW DELHI, Sept 30 (TNS) — The Government should liberalise its rules to enable Indian companies acquire software companies globally. “At least $ 3 billion worth of acquisitions by Indian companies in the next 18 months can be foreseen if the Ministry of Finance liberalises its policy.” Mr Dewang Mehta, Nasscom, President said here today. Nasscom urged the Government to “allow Indian companies to have freedom to commit to an acquisition of an overseas companies up to 25 per cent of its current market capitalisation or $ 500 million, whichever is lower.