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| Thursday, May 25, 2000, Chandigarh, India  
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Punwire appoints PWC to look into irregularities ‘Advt on Internet to undergo changes’ Chief Secretaries’ summit on May 27 Punjab Telecom gets cell phone licence Smart card service by Reliance Tele PM lays refinery stone
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| Chinese cycle to cost Rs 500 LUDHIANA, May 24 — After the dairy industry, the cycle industry is feeling the heat of imported cycles. A survey by a Tribune team revealed that there was panic in the cycle industry over the import of cycles from China and Taiwan at a low cost. Award for Punjab 
39 Punjab
PSUs face closure CHANDIGARH, May 24 — A case for the closure of 39 Public Sector Undertakings (PSUs) is now before the Punjab government. Taking an objective and a balanced view for and against the continuation of these PSUs the case has been prepared in the form of a “survey report” by the Directorate of Institutional Finance and Banking and Public Enterprises of the Department of Finance. It covers all 74 public entities, including 39 PSUs and apex cooperative institutions. The report for 1997-98, incidentally, has appeared after a gap of 14 years; the last had appeared in 1986. The report makes interesting revelations and questions the wisdom of their continuation despite incurring heavy losses in their respective fields. May these be manufacturing, goods and services, trading, promotion of different activities, infrastructure or public utility activities. On the face of it, none of these “operational” fields of the PSUs can be termed either “core” or “strategic”. Private sector performs these in a much better manner and on a larger canvas. In the “critical” appraisal of the PSUs, the Director, Mr C. Roul, bureaucratically speaking, has tried to dilute the impact and import of the survey report by saying “though the author works as Director Institutional Finance and Banking and Public Enterprises, the views expressed are his own and not of the organisation for which he works”. Whatever this may mean, the survey, with a “message” from the Finance Minister, Capt Kanwaljit Singh and the Principal Secretary, Finance, Mr K.R. Lakhanpal, does carry a stamp of authority giving the report an official status. These PSUs employ 113,075 persons, who constitute just 1.6 per cent of the total work-force (69,99,422) of the state. The Punjab State Electricity Board alone provides jobs to 85,834. Should a government sink tax payers’ money running into several thousand crore for just 113,075 persons? the report asks. Should there not be an honest valuation of net assets these PSUs and apex cooperative institutions? Let there also be a “social audit” of employment, both current and incremental, comparing with other comparable sectors of the economy. If all the money that has been invested (sunk ?) in these PSUs is released it could serve a much better purpose and provide employment to a larger numbers, says the report. Imagine how much money is locked up and how much is the return: the State Government has financial stakes in the form of equity and debt to the tune of Rs 4,077.33 crore. The government stands a guarantee to the tune of Rs 6,508.87 crore. Against this money of the exchequer (through the tax payers) put together, the profit earned was a mere Rs 87.81 crore in 1997-98. All PSUs, excluding the electricity board, are to payback a whopping sum of Rs 461.23 crore. This is in the form of repayment of loan — principal and interest — and a minimum return of 4 per cent of the capital employed. The total repayment against this is a meagre Rs 78 crore. The accumulated losses of different categories of PSUs and apex cooperatives run into Rs 708 crore. None of the performance indicators, including financial, provide any hope for improving the functioning of these white elephants. It is a dismal scenario. The government seems to be in a quandary because vested interests favour their continuation on the premise that there is no alternative; why not let these continue. There is an argument that with the government sinking some money several PSUs could still stand on their own. None of these monoliths have a vision for the future. Individual analysis and performance evaluation of PSUs has led to the conclusion that let there be “privatisation” to the extent possible in respect of each. “In summary, the rationale for continuation of over all dominance of the government in all spheres of economic activities is no longer valid... sooner there is release of resources and assets locked in unviable loss-making PSUs, the greater will be social and economic welfare”. |
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Punwire appoints PWC to look into irregularities NEW DELHI, May 24 (PTI) — Punjab Wireless Systems Ltd (Punwire) board has appointed consultancy firm Pricewaterhouse Coopers (PWC) to look into financial irregularities of the company after suffering heavy losses.The board of Chandigarh -based telecom company has initiated inquiries into all the financial and other legal matters of the company. Move to investigate into the financial matters of Punwire follows heavy losses of Rs 139 crore suffered by the company upto March 1999 and further losses of Rs 71 crore by March 2000. Punwire, having its services in paging, radio, trunking and VSAT, had a severe impact on the financial positions with the loss of Rs 139 crore in 1998-99 on sales of just Rs 42.29 crore as against net profit of Rs 5.92 crore on sales of Rs 174.45 crore in 1997-98. Company sources said that PWC would examine and review the accounts maintained from April 1994 to July 31 1999 and find whether the accounts reflect true and fair financial position of thue company. Following the financial mess, the Vice-Chairman and Managing Director of the company Gurpal Singh was suspended in December 1999 and Punjab State Industrial Development Corporation (PSIDC), one of the promoters of Punwire appointed a commission to look into the conduct of Gurpal Singh. The financial mess in Punwire has also been supported by the auditors of the company which have raised various qualifications in their report. Auditors said that the company had given advances amounting to Rs 45.54 crore to its subsidiaries and no stipulation for recovery has been agreed by the company. They further said that “in our opinion these amounts are doubtful of recovery keeping in view the present financial position of these subsidiaries and group companies”. Severe financial crunch is also witnessed by the fact that there has not been any internal audit system in 1998-99. Under the Companies Act, the company should have a comprehensive internal audit system keeping in view the size of the company and the nature of business. On the deterioting financial and operational positions, the directors of the company said that the environment for the telecom industry was not ideal for growth. In addition, lack of political stability also contributed adversely by decreasing investor confidence. |
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‘Advt on Internet to undergo changes’ NEW DELHI, May 24 — The advertisements on the Internet are the bread and butter for most of the websites, but they are a source of major irritant to any surfer. With software programmes now available on the Net to prevent advertisements from popping up the moment one logs on to a site and dozens of sites being launched each day, the advertising community and the site owners are a worried lot. But, that is a good and bad news for netizens. While the irritating advertisements would not slow down the application, it could certainly cut down the quantum of choice he has right now. With fewer advertisements or less revenue from sites, may force many portals to go the boo.com way, which had $ 400 million valuation closed shop as the site did not enough revenue to sustain itself. “Niche sites and featured sections would be the new mantra for advertisers during the next phase, when the shake out in the world wide web would commence,” said Mr Arindam Sarkar, who has worked in the country’s premier advertising agencies Saatchi and Saatchi and Trikaya Grey. Mr Sarkar said “the sites for masses would bear the brunt as and when the shake out begins as account planners in advertising agencies would concentrate on sites where they could get maximum and niche eyeballs for the products.” According to a study not more than two to five persons in every 1000 actually visit the advertised website. Though a study being carried out to assess the amount of money spent by Indian companies on Net advertisement and revenue such advertisements generated is yet to be completed, industry experts say that Net advertising in the country is in its incipient stage. By conservative estimates, the Net advertising could touch Rs 1000 crore in the next three years, experts said. Internet being an interactive medium and its connectivity through cable likely to be available in the six months, advertising agencies are developing strategies to catch of netizens. Apart from Mr Sarkar, two others Mr Sudesh Samaria, formerly of Saatchi and Saatchi and Mr Sidharth Rao, formerly with Mudra and Trikaya Grey, have launched a site gutterspace.com. This site, which is exclusively devoted to the advertising professional gives the trends in the industry, acts as an model and other resource procurement agency, recruitment centre, displays the published and unpublished works of industry professional, highlights the strategies of different companies and answers the queries of students planning to enter the “advt. world”. Software and advertising industry experts are optimistic that with the passage of the Information Technology Bill, the e-commerce would boom in the country. According to Nasscom study the e-commerce transactions in 2000-01 may exceed Rs 2500 crore, a growth of over 500 per cent. The total volume of e-commerce in India in 1999-2000 was estimated by Nasscom to be Rs 450 crore and of this Rs 50 crore was contributed by retail internet or B2C transactions and about Rs 400 crore in B2B dealings. While these may be optimistic estimates and projections, the advertising community could be disappointed if Internet shakeout and falling prices of technology shares wares out the enthusiasm of virtual capitalists or angel investors. |
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Chief Secretaries’ summit on May 27 NEW DELHI, May 24 — The second Chief Secretaries summit of the northern states will be held in Shimla on May 27 to deliberate on issues pertaining to the power and tourism sector and evolve an integrated policy framework in the region. The Chief Secretaries of Punjab, Haryana, Delhi, Rajasthan, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh and Jammu and Kashmir would participate in the day-long summit being organised by PHDCCI. The background note prepared by the chamber observes that the northern region is likely to suffer from power shortages as generation capacity has not increased as envisaged during the Ninth Plan. The total installed capacity in the region (including M.P) as of March 1999, was 29,430 mega watts. There was overall peaking shortage of about 2100 MW (10 per cent) in the region during April 1999 and January 2000, which does not include the peak load restrictions averaging three hours in the states. The peak demand is estimated to increase by about 9400 MW to about 31700 MW by the end of Ninth Plan (2001-02) and as limited generating capacity is being commissioned during the 9th Plan, power shortages is likely to get accentuated. |
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Punjab Telecom gets cell phone licence BATHINDA, May 24 — Punjab Telecom Circle has acquired the licence for launching the mobile phone services in the State. Official sources said Punjab Telecom Circle of the Department of Telecom would establish and maintain cellular mobile telephone services under the new telecom policy of 1999. The licence to start mobile telephone services in Punjab had been granted by the Ministry of Communications. On the other hand, Bathinda district has become the first district in the country where customer can get information regarding the telephone bills on the internet. Mr Rakesh Kapur, General Manager, Telecom district, said here today that the facility of would be optional for the consumer. This facility would reduce the hassles being faced by the customers due to delay caused by the postal department. He said by the end of December 2000, the waiting list of new connection would be cleared.
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Smart card service by
Reliance Tele SHIMLA, May 24 — Reliance Telecom, a cellular service provider in the country, launched its new pre-paid smart card service in the town today. The ready-to-talk pre-paid mobile phone service allows subscribers to avail the facility instantly without bothering about security deposits, rentals and monthly bills. They just need to insert the “Smart” card into their handsets and could receive and make calls without having to wait for any kind of activation. The smart cards will be available in the denomination of Rs 250, Rs 500, Rs 1000 and Rs 2000. Last two have the free incoming calls. The existing users could also switch over to the smart service. The company will shortly launch its cellular services in Solan and
Parwanoo.
PARADIP, May 24 (PTI) — Prime Minister Atal Behari Vajpayee today flayed the Opposition for criticising his government’s hard decisions to push forward economic reforms and warned any hindrance in the process will come in the way of India becoming self-reliant.
“There is a need to take hard decisions keeping in mind the economic progress of the people and the country. Our government has taken certain hard decisions which have been opposed,” he said after laying foundation of Rs 8,300 crore Paradip refinery of Indian Oil Corporation here. |
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Chinese cycle
to cost Rs 500 LUDHIANA, May 24 — After the dairy industry, the cycle industry is feeling the heat of imported cycles. A survey by a Tribune team revealed that there was panic in the cycle industry over the import of cycles from China and Taiwan at a low cost. According to Mr
G.L. Pawa, President of the Cycle and Parts Manufacturers, Association and Mr Avtar Singh, General Secretary, Chamber of Industry and Commercial Undertakings, traders in Mumbai had ordered for cycles made in China and
Taiwan. Pawa said, “We are selling kid bike in the range of Rs 1000-1600 while Chinese cycle will cost only Rs 500. |
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Award for Punjab NEW DELHI, May 24 — Punjab has been given award for excellent performance under Information and Publicity Awareness programme being implemented by the Punjab Energy Development Agency, for 1998-99. The award was presented today by Union Minister of State for Non-Conventional Energy Sources, M Kannappan on the occasion of the annual conference on “Renewable Energy” Policy Perspectives 2000-2012” organised by the Ministry of Non-Conventional Energy, at Vigyan Bhawan. Mr Vishwajeet Khanna, Special Secretary of Science, Technology, Environment and Non Convention Energy Sources received the award on behalf of Punjab. |
co
by Ashok Kumar Peerless Shipping a dark horse bet WITH the bears tightening their noose around the markets worldwide following Greenspan’s unkind last minute cut that indicated two deferred interest rate hikes of 25 basis points each, the bulls have all but disappeared. So much so, that excellent investment opportunities that stare investors in the face at the moment are being totally ignored not only by individual but also institutional investors. It now has become the proverbial situation of who will bell the cat. Whosoever does it could well laugh their way to the bank as the reverse upswing, as and when it materialises will inevitably be a very sharp one. Trading albeit fraught with even greater risk at this stage, could yield sharp gains for the seasoned trader who is not averse to taking major risks. Long positions could be considered by those with a bullish temperament at the counters of Infosys Technologies at Rs 5528 (square up at Rs 5979) and Zee Telefilms at Rs 394 (square up at Rs 459). Short positions could be considered at the counters of MTNL at Rs 167 (cover up at Rs 144) and Sri Adhikari Brothers at Rs 389 (cover up at Rs 312). The dark horse bet of the week for short selling is Peerless Shipping while discerning long term investors could zero in at the counter of HCL Technologies whose shares are now available at a basement bargain price level. Yet, the message at the moment is simple —— close your position as soon as you see a profit, or more precisely, while you still have one. |
cr
VSNL declares 60 pc interim Powergrid pays 20 crore to govt Emami announces 20 pc interim
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Citibank PNB branch Incab Excel chief Archies Meranet.com Housing loan |
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