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| Sunday, June 4, 2000, Chandigarh, India  
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DoT cell phones for city, Ludhiana Impose duty on imported edible oils Druckgrafen allowed to operate factory Hospitality — glamorous fast track career |
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Gorillas find their
place in dotcom jungle
LG clocks 92 pc sales growth in Punjab Newgen Soft ties up with US firm IFCI skips dividend
DoT cell phones for city, Ludhiana CHANDIGARH, June 3 — The Ministry of Communications has finally cleared a project of the Department of Telecommunication (DoT) to launch government operated cellular phone services in Chandigarh and Ludhiana. This will be in competition with private mobile phone companies already existing in the state. A written communication has been received by the department here in which it has been made clear that the equipment to start the services is expected in Chandigarh soon. The Principal General Manager Telecom (PGMT), Mr Prithipal Singh, confirmed that he had just received intimation from Delhi that Chandigarh had been added to the list of cities where DoT would run cellular services. By all estimates mobile services of DoT should start by December “but we are trying for an October launch”, he added. Everything will be carried out within the framework of Telecom Regulatory Authority of India (TRAI), said the PGMT when asked about the tariffs. So far no tariff structure has been finalised but sources have indicated in the past that outgoing calls will be cheaper than those of private operators as DoT will charge on local call pulse rates that is 180 seconds per call. Even the monthly rental could be lower. The scheme for Chandigarh was originally cleared in the first batch of cities for a pilot project under which DoT was to launch cell services in competition with private operators in December last year and everything was in place. However, political exigencies forced the shift of the scheme from Chandigarh to another state and all plans and preparations were put on hold. Now under the fresh clearance Chandigarh will get equipment to operate 3000 lines while Ludhiana will get equipment for 1000 lines. According to sources Swedish communications giant Erricson will be supplying equipment for Chandigarh and Ludhiana. A source while speaking on the strengths of the Chandigarh system said the Chandigarh Telecom District also covered S.A.S. Nagar and Panchkula. So even if DoT sets up its networking towers in these townships the cell phones could be functional in the periphery of Chandigarh. Under the cleared proposal the cellular service is to be based on “cell based” technology thus providing for a wider area of coverage. In Punjab the private sector operators use the same technology. In Chandigarh the connectivity between cell phone users and fixed line phone users will cost nothing for DoT as it already has its own telecom network in place. The private providers pay a share of their revenue to the DoT to receive calls from fixed telephone lines. In the Punjab Telecom Circle, of which Chandigarh is a part, there is only one private service provider.
Impose duty on imported edible oils CHANDIGARH, June 3 — Large-scale import of edible oils has hit the indigenous oil industry as well as the local growers equally hard. A concessional import duty has only added insult to the injury. While the indigenous oil industry is able to use less than half of its capacity, the oilseed growers are able to sell their produce at the prices much below the minimum support price (MSP) Ironically, the government customarily announces the MSP for various oilseeds, but does not have the infrastructure to provide back-up facilities to the farmers like it has for wheat and paddy. For about two decades the farmers were egged upon by the government to sow oilseeds to make the country self-sufficient. As the farmers started taking to oilseed crops in a big way, the government allowed virtually free import of edible oils, making the local industry unviable. With the result it was unable to purchase oilseeds at the MSP. Reports from various mandis suggest that against the MSP of Rs 1,100 per quintal, soybean was sold at rates of Rs 750-800 per quintal in November-December last year. Similarly rapeseed was sold for Rs 1000-1050 against the MSP of Rs 1,100 per quintal. The market rate of sunflower seed is said to be Rs 800-950 per quintal against the MSP of Rs 1100. According to sources in the agriculture department, area under sunflower in Haryana has been reduced drastically this year. The sources say the area is hardly 30 per cent of what it was two years ago. According to the President of the Haryana Solvent Extractors Association, Mr Bharat Bhushan Jain, the country imported 24.52 million tonnes of oil against the requirement of 8.2 million tonnes between November, 1998 and June 1999. Palmolein oil, formed the largest constituent of the imported oils. The country has about 600 solvent extraction plants with an annual capacity of 31 million tonnes. But their capacity utilisation is only 33 per cent. Similarly there are 400 vegetable oil refineries with a capacity of five million tonnes. Their capacity utilisation is only 40 per cent. Jain says India should take a clue from China which in the past three years has become the largest importer of oilseeds from the largest importer of vegetable oil. This year China will import about 10 million tonnes of oilseeds. The industry says by importing oilseeds rather than vegetable oils. India will ensure the capacity utilisation of the indigenous industry and will be able to increase its own oilseed production by offering remunerative prices to the growers. If the government imposes 15 per cent import duty on the oilseeds, the landed cost of the seeds would be above the MSP of the domestic production. With the indigenous industry able to use its capacity to the full extent, the farmers will not only be able to get the MSP but will also be encouraged to shift to the oilseed production. He says the import duty on edible oils should be imposed on slab basis, starting from 25 per cent to end up at 60 per cent. |
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Druckgrafen allowed to operate factory CHANDIGARH, June 3 — The Appellate Authority For Industrial and Financial Reconstruction at New Delhi has held that Druckgrafen India Limited (DIL) can operate the factory “so that the productive capital assets are put to productive use, employment is continued and revenues are generated for commencing the discharge of financial obligations”. Pronouncing the orders on May 25, the Authority observed: “As the possession of the factory was taken over by the PSIDC in accordance with the law, the legal and constructive possession will remain with them but the factory can be operated by DIL...”. The Authority also observed: “The factory will be allowed to be operated by DIL from the date on which the indemnity bond is furnished by the MD of DIL to PSIDC”. The Authority further observed: “It is also necessary to ensure that PSIDC’s concerns for security are adequately met. For this, the MD of DIL must give an appropriate indemnity bond stating, inter alia, that no fixed assets will be removed from the factory, that all accounts will be kept for materials coming in and goods going out and will be available for inspection and that proper security arrangements will be made with the view to ensuring that unwanted persons do not come in and goods are not removed surreptitiously”. In their detailed order, the Authority observed: “The counsel, with instructions from the MD of DIL, states that a proper indemnity bond will be furnished, accordingly PSIDC will have a right to inspect the factory and DIL’s accounts as and when they wish”. PSIDC, it may be recalled, had taken over the possession of the factory from DIL on June 1, 1998. BIFR had, subsequently, passed an order to allow the operation of the factory by DIL. PSIDC had, however, laid down certain conditions relating to the security. |
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Gorillas find their
place in dotcom jungle SAN FRANCISCO, June 3 — Competition in the “dotcom” world resembles life in a jungle, so this Indian American CEO believes it’s good to have some gorillas on your team! Mumbai-born Deepak Amin, founder of Redmond, Washington-based vJungle.com, chartered a bus a few weeks ago, filled it up with his employees and two actors dressed in gorilla suits and trolled for new hires on college campuses and other fertile hiring spots in the Seattle-Bellevue-Redmond area. The event “was awesome” and attracted 11-12 serious resumes, Amin told the California newspaper India-West in a phone interview. The company needs new workers because it is on “a recruiting binge” and is expanding rapidly, he added. The gorilla recruiting ploy, it seems, was just the first salvo in vJungle’s media blitz. “You gotta have fun too,” he said. Formed in May 1999 from Indicus, a software development company Amin founded, vJungle is an integrated application service provider enabling small businesses to manage day-to-day operations, with free services including company e-mail, instant flash messaging, file sharing-storage, company intranet and a Web site builder. vJungle located its headquarters in a building “right smack in between Microsoft campuses #1 and #2,” Amin said. The office site of vJungle isn’t coincidental. Amin, who has more than 10 years of work experience in computer science and engineering, was one of the four original engineers of Microsoft’s Internet Explorer Web browser. He was also technical lead in the development of Microsoft’s Windows 95 operating system. Of the company’s 80 employees, including 17 in a development centre in Mumbai, about 30 are former Microsoft workers, he said. “I just stand here and put my net out,” he joked to one reporter recently. vJungle’s investors and advisors include Sun Microsystems co-founder Andy Bechtolsheim, eGain Communications co-founder Ashutosh Roy, Junglee Corp. co-founder Venkatesh Harinarayan and Stanford University professor Rajeev Motwani. Amin received his bachelor’s degree in technology from the Indian Institute of Technology (IIT) Mumbai and his master’s degree from the University of Rhode Island. The company raised $3 million in first-round financing and hit the ground running. It went “from white board to alpha stage in nine and a half weeks,” Amin said, and three employees grew to 80 in just 40 weeks. Term sheets are in the works for a second-round of financing from institutional investors. Two weeks ago, vJungle announced a partnership with Santa Clara, California-based Ramp Networks, Inc., a leading provider of Internet services platforms for the small office. vJungle’s business applications and services are being linked with Ramp’s high-speed Internet access platform. Two other “very, very big” strategic partnerships for vJungle will be announced in “a couple of weeks,” Amin said. —
IANS
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Hospitality — glamorous fast track career Raddisson, Mcdonald’s, TGIF, Sofitel, Marriott, Hilton.... The list is endless. Such and similar names are becoming part of the Indian hoteliering and hospitality trade and reflect and signify the changing ground rules of the industry. All the major players of the hospitality trade suddenly seem to be in India and are creating a serious niche for themselves. Why this sudden interest or passion in India. To start with hospitality is one of the biggest industries in all major countries in the world. It remains the mainstay of many successful economies and contributes a major stake in the GDP and earnings even for countries like France, the USA, England and not to mention Spain, Greece, etc. where tourism and hospitality are the very foundations of their economy. China is again a classic example as to how a country can gain from tourism and hospitality. In 1997 China received 23.8 million tourists and it is believed that by 2020 China will be the world’s largest leading tourist destination with around 140 million tourists. However in India tourism and hospitality has lagged behind due to several reasons including the apathy of the government towards the industry, lack of resources, a dire shortage of professionals and trained personnel in the industry. Also the non-travelling nature of the Indians, consumerism, middle class development.... Now as India enters the 21st century it has dawned upon the Central government as well as several state governments that this industry can play a major role in earning of revenues as well as providing valuable foreign exchange besides providing employment. Also the realisation has come that with the development of tourism and hospitality not only an overall development of the key areas of infrastructure comes along but also the spill over effects to others sections of the economy are tremendous. One of the finest examples is of Kerala which has emerged and continues to grow as one of the favourite tourist destinations for both the domestic and the international traveller. With hundreds of millions of US $, big brands pouring into the area hospitality is starting to become increasingly competitive. Due to all these changes suddenly hospitality seems to be a great career opportunity. It not only promises immediate employment but various areas of specialisation e.g Food production.... Also the possibilities for starting one’s own business are tremendous as fast food and other quick eat joints are becoming the mainstream of our eating lives. Furthermore an education in hospitality can also open doors for overseas employment for young aspirants that want to settle abroad. In the Middle East a significant number of hoteliering professionals are from India. Also as Indian cuisine becomes the world’s most popular cuisine after Chinese the demand for Indian restaurants abroad is increasing at an avalanching rate. And of course the working environment and the glamour of the industry cannot be ruled out or underestimated. Like any other industry in India, hospitality education has suddenly become hot. In South India hordes of hospitality schools came up but have been a major disappointment. Most of them are shoddy shops operating from two or three rooms and giving home made diploma’s in the garb of quality education. Though a lot of questions still remain and the road to developing a successful tourism and hospitality based economy is a long hard one. Only time will tell how much India will be able to make use of the immense potential that it has in the area of tourism. How successful the foreign chains will be, how our domestic companies will cope. Happen what may one thing is for sure the industry will never be a sleepy one in the coming century. |
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LG clocks 92 pc sales
growth in Punjab CHANDIGARH, June 3 — LG Electronics today announced a turnover growth of 92 per cent in Punjab from January to April, 2000, over the corresponding period last year. Addressing a press conference here today, Mr Ajay Kapila, Vice-President, Sales and Marketing said LG has introduced online buying of its products through the site www.lgezbuy.com. “We will hive off this website into a separate entity by 2001, which will target a listing on the BSE by 2003”, he added. The company has introduced in India for the first time LG’s patented “front door cooling system” in frost-free refrigerators and a preserve nutrition system in direct cool refrigerators.” Within three years LG has become No 1 brand in the consumer electronics; Mr Kapila claimed. The company has organised an “LG Expo” displaying its products at the CII complex here.
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Newgen Soft ties up with US firm NEW DELHI, June 3 — Newgen Software has tied up with the US-based Internet start-up PaperFly Inc. to provide document management services on the web. According to Mr Diwakar Nigam, Managing Director of Newgen Software, the service to be provided by the US company through the application service provider model would be powered by Newgen’s proprietary technology. Newgen has got a 25 per cent equity stake in Paperfly for the technology transfer. The US company plans to launch the service in the third quarter of the current year. Newgen has planned a Rs 25 crore expansion programme which will include increasing operations of its 100 per cent owned US subsidiary, setting up of developmental centres in Chennai and enhancing its current facilities in New Delhi. IFCI skips dividend
NEW DELHI, June 3 (PTI) — IFCI Ltd., today reported a net profit of Rs 59.37 crore in 1999-2000 on a total operating income Rs 2898.18 crore, but skipped dividend for the first time in its over 50 years of existence. The profits, higher by more than 100 per cent from previous year’s Rs 23.5 crore, are much below the 1997-98 level of Rs 370.50 crore. IFCI’s performance continued to be affected by its high level of non-performing assets (NPAs) at 20.78 per cent of its asset base. |
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by Praful R. Desai Possession as owner Q: When the landlord who is already in possession of certain leased premises, would the landlord still asks for eviction on the ground of bona fide need? Ans: In Smt G. Kaushalya Devi v. Ghanshyamdas (2000 (I) RCJ 211) the SC opined thus: The courts below had ordered eviction on the ground that the requirement of the landlord was bona fide. The tenants took up the plea before the SC that the order of eviction of the appellant on the ground of bona fide requirement of the landlord was bad in law as it was contrary to the provisions of S. 10 (3) (a) (iii) of the AP Building Rent Control Act, inasmuch as the landlord was already in occupation of certain shop premises, though on lease, in the same city where he was running his business in partnership. It was therefore submitted that the landlord was thus entitled to remain in possession of the shop premises. S. 10 (3) (a) (iii) provides for eviction of the tenant when it is found that the landlord requires the building whether residential or non-residential for his own occupation. A contention was also raised that another shop had been purchased by the mother of the respondent with the amount loaned by the respondent and that on that ground it could also be said that the landlord was entitled to possession of that shop as well. The expression “to the possession of which he is entitled” in the opinion of the SC would not mean possession otherwise than as the owner or in that capacity or having a superior right or under any of the grounds under the Act. The SC therefore, did not accept the contention of the tenant that since the landlord is already having his business in a leased premises of which he is in possession, he cannot seek eviction of the tenant. Further, the SC also held that even though the respondent and his brothers were conducting business in partnership basis, yet is was no ground to contend that the requirements of landlord is not bonafide. In that way, the SC dismissed the appeal. |
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by K.R. Wadhwaney Save Air India from politicians AIR INDIA, pioneered and nursed by J.R.D. Tata, was one of the best in punctuality and quality of service in world. In 1953, the government decided to nationalise the airlines. After sometime the services of JRD were terminated from Air India. It was a big blow to the airline which, according to aviation experts, became “lifeless and headless”.JRD was meticulous and could not stand incomplete or half-complete work. L.K. Jha, giving an anecdote, said: “During one of the inaugural flights of AI, JRD arranged the toilet papers and hand-towels in the bathrooms of the plane for nearly two hours. He did not disturb the flight staff who were busy looking after passengers”. The airline, has fallen on bad days. It is not that it does not have competent men to run the airline. But there has been too much of political interference. If Desai got rid of JRD for personal whims and fancies, the whole tribe of politicians during last two decades has seen to it that the airline not only loses its ‘maharaja’ status, but also it becomes one of the common carriers. Besieged with more downs than ups, the “Maharaja” has finally been up for sale. It may retain its Indian identity for awhile, but it will soon lose that also as foreigners will buy equity following disinvestment decision taken by the Cabinet Committee. Minister for Civil Aviation Sharad Yadav had his own ideas on privatisation but following his high-handedness of virtually ‘hijacking’ an Indian Airlines flight to Bihar, he was compelled to toe the line, as advocated by Disinvestment Minister Arun Jaitley. While there may be a global adviser to the government on the modalities of Air India sell-off, there are some foreign airlines, like Singapore which may pick up equity. Currently, Air India may be sustaining losses, but many experts think that the airline can become rags-to-riches with some modifications. The embargo on appointing new staff will stay. Maybe, some will be asked to leave under the scheme of ‘golden handshake’. A few senior officials in pivotal positions may be the sufferers. If they don’t lose their jobs, they be devoid of powers. Air India’s aircraft is in a state of turmoil. The powers that be are unsure whether it should be a full-fledged privatisation or “half-baked” privatisation. The analysts feel that let the decision of the government to privatise AI stay, but let it be run commercially by all Indians. When JRD had piloted the inaugural Air India flight to London with Prime Minister Jawaharlal Nehru on board the flight, the chief hostess announced on PA system ‘Coordinate your watches’ as the flight was landing dot on time at Heathrow Airport. Those were the sunny days of the airline. Similar rosy picture can emerge once again if the politicians keep away from the airline.
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by Pushpa Girimaji Of monsoon, manholes and electrocution IN the month of April, a city court in Delhi directed the Delhi Vidyut Board to pay the parents of a
teenaged boy, Rs 2 lakh as compensation. Sixteen-year old Rajesh had got electrocuted when a live wire from an electric pole had fallen on him. His parents told the court that the wire had snapped on an earlier occasion too, but the electricity board had not bothered to take appropriate steps to prevent its recurrence. As a result, the live wire had fallen again, and this time it had killed Rajesh, another young boy and two
buffaloes. Only three months prior to that, a widow had been awarded Rs 4.5 lakh as compensation for the untimely death of her husband, again due to electrocution from a high tension wire. In this case too, the complainant, Ms Suman Kumari told the court that several complaints had been lodged by the residents of her locality for removing the high tension wire, which was hanging very low over the roof of their houses, but the service provider had not bothered to respond. In both these cases, what was identical was not just the cause of death, but also the utter disregard for public safety exhibited by the DVB. And in both cases, the families had to wage a long legal battle for compensation. Such cases of negligence by civic authorities are not rare. Almost every year during monsoon, for example, newspapers report deaths caused on account of children falling into open manholes or deep pits left uncovered by civic authorities. What is, however, rare is the decision of the victims’ families to fight for damages. Given the cost to litigation and the time taken for adjudication of cases, most people are reluctant to seek the intervention of courts. When the Consumer Protection Act came into being, it certainly raised hopes that the consumer courts would be able to come to the rescue of citizens in such cases. But such hope was short-lived. A resident of Ulhasnagar, for example, sought compensation from the local Municipal Council for the permanent disability caused to him following the collapse of the roof of public toilet, while he was using it. The Maharashtra State Commission, before which he had filed a complaint, however, pointed out that even though he deserved to be compensated for the injury and loss suffered, the Commission was unable to grant his claim as he was not a ‘consumer’ as defined under the CP Act and this was not a consumer dispute. He should therefore file a suit for damages before the civil court. Similarly, Ganga Devi, who sought compensation from the State Electricity Board for the death of her buffalo on coming in contact with an electric pole, was told that the consumer court was not the appropriate forum for redress of her grievance. The CP Act exempts free services from the purview of consumer courts and so the courts have held that civic amenities that the provided free of charge to citizens are outside the jurisdiction of the consumer courts. But the contention of the complainants in many of these cases was that the services were provided from the taxes paid by the citizens and therefore it was wrong to interpret these services as ‘free’. The National Commission as well as the Supreme Court, however, disagreed with this line of argument. In the case of Indian Medical Association vs VP Santha, for example, the Supreme Court made it clear that tax paid by a person cannot be treated as consideration for a service rendered. Drawing a clear distinction between payment of tax and payment of consideration for a service, the apex court pointed out that the essential characteristics of a tax were that it was imposed under statutory power without the taxpayer’s consent and the payment was enforced by law. It was an imposition made for public purpose without reference to any specific benefit to be conferred on the payer of the tax and was part of the common burden, the quantum of imposition upon the taxpayer depending upon his capacity to pay. Consumer groups have since been demanding that civic services too be brought under the purview of these courts through an amendment to the Act.. But the question is, why should a citizen or a consumer who suffers loss or injury on account of the negligence of a civic authority be forced to knock at the doors of courts? Why can’t civic authorities themselves provide for quick and inexpensive settlement of such cases? Consumers/citizens should demand that civic bodies provide an independent Ombudsman to hear cases of negligence and award appropriate compensation. And these complaints should be resolved in the quickest possible time. In addition, the Ombudsman should also ensure that those responsible for negligent acts are identified and appropriate action taken them. Only then will electricity boards and municipalities learn to respect the citizen’s right to safety. |
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Alpex Exports Housing loans Uniproducts Shipping
Corporation FICCI Peacock award Chinese Scooter |
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