Kinetic to offer staff stock option scheme
NEW DELHI, Sept 1 — The Pune-based Kinetic Motor Company Limited (KMCL), formerly known as Kinetic Honda Motors Limited, is planning to introduce an Employees Stock Option (ESOP) scheme to offer equity holding to its employees.

Downsize Govt: Khusro
NEW DELHI, Sept 1 — Redeployment of public finances with “strict modalities” to downsize the Government is urgently needed to achieve macro economic stability in the country, Chairman of the 11th Finance Commission, Prof A.M. Khusro has said.

Export growth slips
NEW DELHI, Sept 1 — India’s export growth momentum slipped to a meagre 2.11 per cent in July after recording double digit growth rates for two consecutive months this fiscal.

• J&K Bank in Mohali
• Reliance hikes prices
• LSE starts VSAT trading
• NPPA revises drug prices
• Goenka new FICCI chief
• BSE card value up

All Govt depts to be Y2K ready by Oct 31
Tribune News Service

NEW DELHI, Sept 1 — All the 11 critical sectors identified by the Government will be Y2K compliant by October 31. Of these, seven sectors are expected to be compliant by this month end, Planning Commission Member and Chairman of the Y2K Action Force, Mr Montek Singh Ahluwalia said here today while speaking at a conference on Preparing India to face Y2K, organised by the CII.

The 11 sectors identified by the government include the departments of Atomic Energy, Defence, Space, Civil Aviation, Banking and Finance, Insurance, Power, Ports, Petroleum, Railways and Telecom.

The failure of the computer to distinguish between the year-2000 as a start of new century would arise because the non-compatible computer recognises only the last two digits of the year. The computer would recognise the Year 2000 as “00” which could give rise to a host of problems including data management and billing and malfunctioning of systems embedded with computer chips in home appliances to nuclear power plants.

Mr Singh said that all the 11 sectors will have contingency plan in place by October 31 in addition to achieving compliance. Besides, these sectors will publish a compliance report by end of September and will present to the Y2K Action Force an action plan for identification and rectification steps.

Additional Member of the Railway Board, Mr V. Kumaran said that the railways department are testing the electrical, signal and telecom departments to confirm that they do not have any Y2K related problem. Passenger reservation system, used by six lakh customers everyday, is one of the high priority areas.

Member (Services) of the Telecom Commission, Mr P.S. Saran said that about 23,000 switching systems have been made Y2K compliant of the total 25,000 switching systems. The DoT has set up nine working groups to study the likely problems related to Y2K and full compliance will be reached by the end of October.

Convener of the Y2K Action Force, Mr N. Seshagiri said that airlines and the telecom sectors were very close to reaching 100 per cent Y2K compliance while in the power sector 92 per cent compliance has so far been achieved.

Chairman of Central Electricity Authority (CEA), Mr R.N. Srivastava said that all SEBs have given commitment to achieve Y2K compliance in the next two months.

Secretary, Department of Electronics, Mr Ravindra Gupta said 95 per cent of Y2K compliance should be achieved by this month-end.

Senior Executive Director of the SEBI, Mr O.P. Gahrotra said that January 1, 2000 will witness a mock trading to test the compliance levels. So far 16 stock exchanges, accounting for 95 per cent of daily transactions have already achieved Y2K compliance.

Chief General Manager of the RBI, Information Technology Division, Mr S.R. Mittal said all financial institutions and commercial banks have reported 100 per cent Y2K compliance.

Lower rating for India on Y2K

NEW DELHI, Sept 1 (UNI) — International agencies have undermined India’s preparedness on millennium bug Y2K in various sectors of the economy as the Indian Government has not taken enough measures to educate them, Nasscom said today.

Many world renowned agencies like JP Morgan, the United Nations and the World Bank have placed India on scale three of Y2K preparation which indicates that there is “sufficient awareness’’ in the country but there is a “risk of business disruption’’.

“In spite of good work done in India, we have noticed that many international agencies have not yet properly evaluated India’s position on Y2K preparedness mainly because of lack of information,’’ Nasscom President Dewang Mehta said here.

Part of the blame was on the Government for not educating the world agencies about the country’s work done on tackling with the millennium bug which threatens to bring a lot of economic machinery to a halt after December 31, 1999.

Kinetic to offer staff stock option scheme

NEW DELHI, Sept 1 (UNI PTI) — The Pune-based Kinetic Motor Company Limited (KMCL), formerly known as Kinetic Honda Motors Limited, is planning to introduce an Employees Stock Option (ESOP) scheme to offer equity holding to its employees.

Initially, 40,000 shares would be offered to employees in the manager grade, Kinetic group Chairman Arun Firodia told UNI here.

Scooters to cost more

Prices of Kinetic brand scooters are likely to go up by Rs 1000 from April next year as Kinetic Motor Company has decided to fit catalytic converters in its two-stroke vehicles for meeting the year 2000 emission norms.

Downsize Govt: Khusro

NEW DELHI, Sept 1 (PTI) — Redeployment of public finances with “strict modalities” to downsize the Government is urgently needed to achieve macro economic stability in the country, Chairman of the 11th Finance Commission, Prof A.M. Khusro has said.

Despite being weighed down by a large scale labour force, the Government departments and public sector undertakings were struggling to work out modes for downsizing labour, he said speaking on reforms fiscal federalism here yesterday.

He said barring one or two States, almost all of them along with the Centre were running huge fiscal and revenue deficits which could only be reduced by rationalising and economising expenditure, cutting down inefficiency and retraining the workforce already deployed.

Dr Parthasarathi Shome, the RBI Professor and former Assistant Director of the IMF who also spoke on India’s experiences on reforms said a more federal fiscal structure and a simplified redistribution would bridge the gap between producing and consuming States.

Export growth slips

NEW DELHI, Sept 1 (PTI) — India’s export growth momentum slipped to a meagre 2.11 per cent in July after recording double digit growth rates for two consecutive months this fiscal. Exports during July are valued at $ 3.05 billion while the cumulative exports in April-July was $ 10.61 billion recording 4.04 per cent growth. Exports started picking up in May this fiscal after beginning with a meagre 2.09 per cent growth in April. Oil imports during the first four months surged by 51.05 per cent at $ 2.74 billion against $ 1.82 billion in the same period last year.

But the trade deficit declined to $ 3.02 billion during the first four months, which is over 8 per cent lower than the corresponding figure of $ 3.3 billion in 1998-99. Imports during April-July are estimated at $ 1.4 billion which is 1.01 per cent higher than the level of $ 1.39 billion during the same period in 1998-99. Non-oil imports in the first four months declined by 6.53 per cent to $ 1.13 billion compared to $ 1.2 billion last year.

Record Maruti sales

NEW DELHI, Sept 1 — Maruti Udyog Limited (MUL) has recorded the highest ever monthly sales in the company’s history by selling 35,978 units in August 1999, surpassing the previous high of 35,407 units registered in July 1999.

The company has also achieved a growth of about 20 per cent during the current fiscal (April - August 1999) over the corresponding period last year. During the month of August, MUL sold 18,735 units of Maruti 800, surpassing the previous best of 18,537 units achieved in January 1997. Omni sales figure during the month stood at 7,767 units (previous best 7503 units in July 1999) and Maruti Zen sales of 7,971 units (previous best being 7,881 units sold in July 1999), a release said. — TNS

J&K Bank in Mohali
Tribune News Service

CHANDIGARH, Sept 1 — Jammu and Kashmir Bank’s 14th fully computerised branch in Punjab was inaugurated by Mr M.J. Zarabi, CMD, SCL, at Mohali today. Mr Davinder Singh Rana, Director of the bank, said J&K Bank ranked among the best 500 banks of the Asian region.

Mr Zarabi congratulated the management for the bank’s remarkable growth in the last three years. Mr D.V. Gupta, General Manager, and Mr A.H. Koul, Deputy General Manager, also spoke.

Reliance hikes prices

NEW DELHI, Sep 1 (UNI) — Reliance Industries today announced a price hike for its main products, improving its profitability prospects. The price hike for four of its products ranges from 1.79 per cent to 8.52 per cent.The price of polyester yarn has been raised by 1.79 per cent to Rs 57 per kg.The price of poly-ethylene has been raised by 6 per cent to Rs 42.60 per kg,polyester propylene by 8.52 per cent to Rs 38.20 per kg and poly-vinyl chloride by 4.41 per cent to Rs 35.50 per kg.

LSE starts VSAT trading
Tribune News Service

CHANDIGARH, Sept 1 — Ludhiana Stock Exchange (LSE) today commenced on-line screen based trading through VSAT terminals. Trading at four pilot sites located in Chandigarh, Ferozepore and Amritsar was started today.

NPPA revises drug prices

NEW DELHI, Sept 1 (PTI) — The NPPA today revised prices of three bulk drugs including Carbamezapine used in the treatment of epilepsy and antibiotic Oxytetracycline.

The revised prices of Oxytetracycline Hcl would be Rs 1,100 per kg while Oxytetracycline Amphoteric would carry a price tag of Rs 1,560 per kg. The authority also fixed the price of Carbamezapine at Rs 3,800 per kg.

Goenka new FICCI chief

NEW DELHI, Sept 1 (PTI) — Duncan group Chairman Gauri Prasad Goenka has been elected as the new President of FICCI to succeed Sudhir Jalan.

Goenka, who is the Sr Vice-President of the apex chamber now, will take over as the new President at the annual session of FICCI in November.

BSE card value up

MUMBAI, Sept 1 (PTI) — The Bombay Stock Exchange (BSE) card value had risen sharply with the Governing Board accepting the bids of Rs 2,02,61,000 for sale of two defaulter members’ cards last Friday. An earlier card was sold at a price of Rs 1,75,11,000 on August 12, showing a steep rise of Rs 27.50 lakh in just 15 days.

Forex
US $ Rs 43.48/49
Stg £ Rs 70.05/07
Euro Rs 46.18/21
Jap yen (100) Rs 39.74/76

Indian Oil
Tribune News Service
NEW DELHI, Sept 1 — Indian Oil has started supplying ultra low sulphus diesel (ULSD) with a sulphur content of 0.05 per cent in the capital. The first consignment reached the capital today.

Bank branch
From Our Correspondent
PATIALA, Sept 1 — Mr Ashok Hatekar, Zonal Manager, Bank of Baroda, inaugurated a computerised branch of the bank at Chhoti Baradari here today. Mr T.V. Lakashminarayanan, AGM was also present.

Orient Fans
From Our Correspondent
AMRITSAR, Sept 1 — Orient Fans organised an awards function here today. Vice-President S.K. Bhaiya presented awards to its dealers from North India for exceeding their sales targets.