Sunday, June 18, 2000,
Chandigarh, India







THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S
A child labourer holds up a placard demanding the abolition of child labour in India as another younger child (L) bursts into tears during a demonstration, 17 June 2000, in New Delhi. The aim of the demonstration was to call upon all countries to take urgent steps to stop "child slavery"  on the first anniversary of the adoption of Convention 182. According to International Labour Organisation (ILO) there are 250 million child labourers in the world, out of which 60 millon are in India.
A child labourer holds up a placard demanding the abolition of child labour in India as another one bursts into tears during a demonstration on Saturday in New Delhi. According to International Labour Organisation, there are 250 million child labourers in the world, out of which 60 million are in India. — AFP photo

Shanta asks global companies to invest in India
NEW DELHI, June 17 — The Union Minister for Consumer Affairs and Public Distribution, Mr Shanta Kumar, has invited global companies to investment in India in projects involving integrated bulk handling, storage and transportation of foodgrains.

Paswan takes fight with Rabri to Washington
WASHINGTON, June 17 — In America, they say “all politics is local”, and Communications Minister Ram Vilas Paswan, currently on a visit here to attract foreign investors, proved that it is no different in India.

Santabanta.com launched
CHANDIGARH, June 17 — Ms Kiran Bedi, Joint Commissioner, Delhi Police today dedicated Santabanta. com, a Punjabi Internet space, to the community here.

Russian tennis player Anna Kournikova poses in front of a poster of herself, while launching a new advertising campaign for Berlei Sports Bras, in Eastbourne, England, on Friday
Russian tennis player Anna Kournikova poses in front of a poster of herself, while launching a new advertising campaign for Berlei Sports Bras, in Eastbourne, England, on Friday. — AP/PTI photo

Tax on furnace oil to hit Punjab units
THE Petroleum Ministry has banned inter-state movement of furnace oil, LDO, HSD and RFO. Except HSD all other oils are the basic fuels of industry. This order has hit the Punjab industry which is coming to a grinding halt.



 

EARLIER STORIES
 
Licences to insurance companies by year-end

CALCUTTA, June 17 — Insurance Regulatory and Development Authority is likely to issue licences to new entrants by the year end while providing the existing players a “period of adjustment” to switch over to the new insurance regulations framed by it, a top Union Government official said today.

IT knowledge must for Company Secretaries
CHANDIGARH, June 17 — Company Secretaries must trained themselves in information technology said Himachal Pradesh Governor Vishnu Kant Shastri while inaugurating the Regional Conference of Northern India Regional Council of the Institute of Company Secretaries of India yesterday at Shimla on the theme Profession of CS: Vision.com.Top



Shanta asks global companies to invest in India
Tribune News Service

NEW DELHI, June 17 — The Union Minister for Consumer Affairs and Public Distribution, Mr Shanta Kumar, has invited global companies to investment in India in projects involving integrated bulk handling, storage and transportation of foodgrain.

Delivering the keynote address on the occasion of special round table conference on food security for developing countries and trade liberalisation organised by Canadian International Development Agency at Regina, Canada, he assured companies which with international experience would be provided fiscal incentives to enhance the viability of the projects.

Mr Kumar said that food production in the world has increased faster than the population and the global cereals production in 2000-2001 has been projected to be around 1890 million tonnes against cereals consumption of 1885 million tonnes and as a result the per capita availability of food grains has increased. He said food consumption is also likely to increase among developing countries in Asia and Africa.

Mr Shanta Kumar also stressed the need to modify the WTO’s agreement on agriculture in the present form to incorporate provisions for developing countries to enable them to pursue their legitimate non trade concern like food security. He said member-countries of WTO should collectively find ways and means to bring about more equity and fair competition in the structure of the WTO agreement on agriculture. Union Minister also said that grain markets should always remain liquid to enhance the access of deficit countries to food grains availability.

Highlighting the food grains scenario of India, Union Minister said that like other countries of the Asian region, India has also achieved a bumper harvest of more than 200 million tonnes of food grains as a result of which there was a reserve of 37 million tonnes of foodgrain lying with the public stock holding agencies. He said this reinforces optimism about the self-sufficiency in foodgrain. He said the management of food economy in India has been appreciated by international institutions like World Bank as India has given a significant push to the International market in foodgrain.

Union Minister said that India is committed to improve the system of trade and economic cooperation through expanded global system of trade as India can always be an active players in the foodgrain supply and demand compared to the international cereal market. It can be an active players in the international grain trade either as an importer or exporter.

Stressing the need to ensure food security for the hungry people world wide, Mr Singh said that Asian region, including India, accounts for one-third of the 830 million hungry people of the world. He said to improve the global and household food security the principal determinant should be to increase the purchasing power of the family on one end and availability of foreign exchange on other so that countries could have sufficient foreign exchange on other so that countries could have sufficient foreign exchange to pay for food imports. He said countries should also boost their agricultural production to achieve a higher economic growth to be equal partners in an equitable international trade regime. He said that objective of food security can only be achieved through increased governmental support to the farm sector.Top



 

Paswan takes fight with Rabri to Washington
From Vasantha Arora

WASHINGTON, June 17 — In America, they say “all politics is local”, and Communications Minister Ram Vilas Paswan, currently on a visit here to attract foreign investors, proved that it is no different in India.

At a news conference at a five star hotel after a meeting with investors, Paswan apparently forgot why he was here and launched a tirade against the government of Bihar Chief Minister Rabri Devi, charging it with failure to administer the state, which he said had become a “jungle raj”.

He appeared cut up with Rabri Devi for her alleged failure to maintain law and order in Bihar, resulting in the outbreak of caste violence that has taken a heavy toll in recent days. “Bihar’s only solution is the dismissal of the inefficient and corrupt Rabri regime,” he said.

Paswan, whose primary mission here was to attract foreign investors for India’s telecom sector, said the government had recently lifted almost all the controls, throwing the telecom sector open to the private sector.

He said the government had drawn up an ambitious plan to reach telephone facility to all the villages of India by 2002, the cost of which would run into billions of dollars.

The minister, who visited other US cities before arriving here, said he found a lot of goodwill for India in the United States. President Bill Clinton’s visit to India in March had created enthusiasm for India. With a growing economy and abundance of trained manpower, India had of late become a major destination for foreign investors, he said.

He said he was looking for both technology and capital in the United States for the development of India’s telecom sector.

Paswan also heard about difficulties that some non-resident Indians (NRIs) had been having in India in the matter of investment and said he would create a special cell to deal with the problem. The government would do all it could help the NRIs, he said.

He called for investments for the development of the telephone network in the countryside and said the government would go ahead with its plan to connect the more than half a million villages in the country with telephone. — IANS

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Santabanta.com launched
Tribune News Service

CHANDIGARH, June 17 — Ms Kiran Bedi, Joint Commissioner, Delhi Police today dedicated Santabanta. com, a Punjabi Internet space, to the community here. Ms Bedi said this website will act as a technology bridge between Punjabi, Punjab and world and this site will make Punjabi community’s presence globally. Ms Bedi hopes that Chandigarh will lead in opening Cyber Cafes.

Mr Sandeep S. Kler, MD, Tooh Soft India, said the Santabanta.com is an effort to bring all Punjabis under one roof. All information relevant to Punjab, Punjabi and Punjabiat will be presented professionally on this site. The site provides a lot of functionality in the form of services to its users.

Mr Jiwandeep Singh Ghai, Executive Director, said apart from humour the site includes web search, yellow pages, free e-mail, jobs, matrimonials, chat, e-web pundits, travel and tourism etc.

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Tax on furnace oil to hit Punjab units
By P.D. Sharma

THE Petroleum Ministry has banned inter-state movement of furnace oil, LDO, HSD and RFO. Except HSD all other oils are the basic fuels of industry. This order has hit the Punjab industry which is coming to a grinding halt.

The forging and re-rolling industry is totally dependent on these oils. Cycle and other engineering industries have to use these oils for key processes. Solution of the problem lies both with the Petroleum Ministry as well as the Punjab Government.

With this order these oils have to be purchased from the depots of oil companies within Punjab. Here sales tax is 20 per cent with 2 per cent surcharge. Earlier the industry used to purchase these oils from outside Punjab by paying CST of 4 per cent. Thus, there is a jump of 18 per cent in the price which cannot be borne in the competition.

The matter was brought to the notice of the Chief Minister on June 8, at the meeting with industrialists on the issue of power tariff. When the issue was pressed he asked the Finance Minister to sort out the issue. The Finance Minister was apprised that the only solution of the problem is to reduce sales tax on these oils to 4 per cent. This will boost the revenue of the State as it was getting no revenue earlier. He refused to accept this suggestion by taking re-course to floor rates under uniform sales tax policy.

The uniform sales tax policy is still fluid. Many States are having their own ways to save their industry. For instance floor rate on billion is 1 per cent. Rajasthan is still continuing with 0.4 per cent tax and Delhi is crying against it. Even on oils under question Haryana is having 10 per cent against 20 per cent for petroleum products. Then floor rates have been revised a number of times.

It is quite unfortunate that the Punjab Government’s main concern is only agriculture and it is discouraging the industry. The Excise & Taxation Ministry has publicly announced that to save the poultry & dairy industry from the WTO gauntlet Punjab is reducing sales tax rates for these products. He is on record to state that he has instructed the Sales Tax Department to either bring down or do away with sales tax levied on these items.

The Punjab Government has ample justification to offer for reducing floor rates on these oils to 4 per cent. When a slight rational change in policy on agriculture is announced by the Central Government the Punjab’s Chief Minister immediately rushes to Delhi. But on the industry’s issue he has not even bothered to know what is the issue at stake. Even BJP’s ministers and MPs are feeling uncomfortable with this attitude.

A deputation of the Apex Chamber of Commerce & Industry (Punjab) and the Laghu Udyog Bharti met the Additional Secretary. Naresh Narad in the Petroleum Ministry on June 13. Narad assured the industry that positive step is expected within 4 to 5 days as he will take approval from the minister on telephone.

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Licences to insurance companies by year-end

CALCUTTA, June 17 (PTI) — Insurance Regulatory and Development Authority (IRDA) is likely to issue licences to new entrants by the year end while providing the existing players a “period of adjustment” to switch over to the new insurance regulations framed by it, a top Union Government official said today.

P.K. Banerjee, Special Secretary (Insurance), Department of Economic Affairs, Ministry of Finance, said here IRDA, which is in the process of finalising the regulations, would be receiving applications by July-August and the issue of licences to new companies can be expected by the year end.

Some of the regulations would be finalised at the first meeting of the Insurance Advisory Committee constituted by IRDA next week, he said addressing a seminar on “insurance — the new horizon” organised by the Bengal Chamber of Commerce and Industry here.

The government intended to make the entry process “transparent and friendly” for both foreign and domestic companies, he said, adding “we expect only strong companies having long term perspective of being in the insurance sector, would be licensed to do insurance business.”

On the new regulations, N. Rangachary, Chairman, IRDA said the Authority intended to adopt some rules in the field of accounting to ensure compliance with international best practices to protect interests of the customers.Top



 

IT knowledge must for Company Secretaries
Tribune News Service

CHANDIGARH, June 17 — Company Secretaries must trained themselves in information technology said Himachal Pradesh Governor Vishnu Kant Shastri while inaugurating the Regional Conference of Northern India Regional Council of the Institute of Company Secretaries of India yesterday at Shimla on the theme Profession of CS: Vision.com.

He said the youth who is fully conversant with the information technology and its use will win over the computer illiterate.

Dr P.L. Sanjeev Reddy, Secretary, Department of Company Affairs, said in his key-note address the company secretaries are an integral part of the organisation. The companies compete and not the countries and company secretaries have role in compliances and advising in amalgamations, mergers etc. Dr Reddy quoted three executives of Infosys, Wipro, and Satyam for their contribution to corporate governance and international competitiveness.

Mr AK Goswami, Chief Secretary of the State, advised the companies to change themselves. The mindset of the people has to be changed and then only corporate governance is possible. The environment for IT use has to be created and the company secretaries has role to play.

He said the Centre and State Governments are taking steps in this regard and IT officers have been appointed.Top



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AVIATION NOTES
 

AI likely to improve with Virgin affair

CABIN crew staff have been recruited. Hostesses and others are undergoing training. Soon Virgin Air’s flights through Indian skies will be a reality. Air India’s health is expected to improve considerable through this tie-up.

Will Virgin Air widen its wings a little more in becoming foreign strategic partner since the disinvestment in Air India has now become a reality after several stops? It is quite likely because Virgin Air’s boss Richard Branson is known for his dynamism and aggression. He is a kind of businessman who would like to plunge into this venture which, if run commercially without political interference, can be a quick profit-earning airline. Air India has several slots which are lying unutilised. Branson has wherewithal to make affective use of them once his airline buys 26 per cent equity.

The aviation analysts say that Virgin Air and Singapore Airlines may jointly become strategic partners. As it is, SIA has already bought 49 per cent shares in Virgin. SIA is one of the most aggressive carriers and its entry into Indian skies will undoubtedly open new vistas in the field of Indian aviation.

In 1995-96, SIA and the Tatas had tied up to get into Indian domestic sector. But ill-informed politicians thwarted this move. Had SIA and Tatas entered in the domestic market, the Indian aviation scenario would have been totally different. Mr C.M. Ibrahim, the then Civil Aviation Minister, went on record as saying that foreign entry into domestic skies would over his dead body. When Ratan Tata wanted to enter Indian skies independently, the minister did not agree to this also. Ratan Tata eventually walked out of the entire Project which died an unnatural death.

Apart from Virgin Air and SIA, there are several other established airlines which are watching developments in the Indian aviation scenario. One thing is for sure that if any foreign carrier steps in, it will have complete freedom. This may affect some senior incumbents.

In the Indian segment, Jet Airways is a fore-runner. Mr Naresh Goel, Jet Airways supremo, is as much aggressive in marketing as Branson. Despite several hurdles imposed by the Government, Jet Airways has been going from strength to strength. It is the only airline which has given stiff competition to the national carrier, Indian Airlines. It has a sizable fleet and several plans to augment its operations.

Both Civil Aviation Minister Sharad Yadav and his Deputy Chaman Lal Gupta are wearing optimism that the aviation is on the full throttle take-off in the New Millennium that has just begun.Top



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LABOUR LAWS

by Praful R. Desai

Remit back

Q: When there was no evidence on record to support the claim of workman, what should Appellate Authority do in the matter?

Ans: This question was dealt with by the Patna H.C. in the case of Jagdish Yadav v State of Bihar (2000-I-LLJ-1130) as under:

This petition by employees engaged for loading and unloading bags of food grains by the Bihar State Food Supplies Corporation, challenged the order of the Appellate Authority setting aside the order of the competent authority and rejecting their claim for the difference between wages paid and minimum wages fixed under Minimum Wages Act 1948.

The Appellate Authority, in the opinion of the H.C. was quite justified insofar as it set aside the order passed by the competent authority for the reasons assigned and the H.C. saw no infirmity in that part of the order but in all fairness the Appellate Authority should have sent the matter back before the competent authority to allow the parties to lead further evidence on that issue and not having done so makes the order vulnerable to interfere by this Court.

In the facts and circumstances of the case, the H.C. added, it was satisfied that after setting aside the order passed by the competent authority, the matter should have been sent back to him for passing a fresh order after allowing the parties to lead evidence on the issue in question.

Under these circumstances, the H.C., accordingly remitted the matter to the Assistant Labour Commissioner, Manager-cum-Competent authority under the Minimum Wages Act to allow the parties to lead further evidence on the issue of loading, unloading, stacking and sewing 1421 bags and to pass a fresh order in the light of the evidence led before him. In the result, the H.C. allowed the writ petition to the extent indicated above.Top


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MARKET GOSSIP
  • Zee Telefilms is showing signs of recovery one can continue to remain invested in the same, says a mutual fund manager.
  • Immediately offload the shares of Alps Infosys, asserts a fund manager.
  • Of late, the Punjab Tractor counter has attracted a lot of investor attention, observes a prominent market researcher.
  • Stay invested in the BSES counter and sudden spurts in its price can be used to book some profit, suggests a well known punter.
  • According to a veteran analyst, disinvestment at further decline in the price of Bajaj Tempo will be prudent.
  • The Bombay Dyeing stock has been fluctuating on news that it is going to join the IT bandwagon, so watch out this scrip for short-term gains, suggests a leading industry researcher.
  • Buy HCL Technologies, which is going cheap at this price, observes a market analyst.
  • Buy Satyam Computers, as the worst is over at this counter and now it will move anywhere but downwards, asserts a leading portfolio manager.
  • On the backdrop of the good results declared by Mahindra & Mahindra some institutional investors have turned bullish at this counter, opines a leading financial advisor.
  • A prominent portfolio manager has advised disinvestment in the shares of Otis Elevator.
  • Invest in Bharat Heavy Electricals, as the uptrend in this counter is expected to for some more time.
  • A prominent portfolio manager from Mumbai opines that Hughes Software is very attractive at this price level.
  • A foreign institutional investor has turned extremely bullish at the German Remedies counter, reports an eminent fund manager.
  • Prompted by the expected revival in hotel stocks, a renowned fund manager is recommending investment in the shares of Indian Hotels.
  • Book profits at the counter of Wartsila NSD, as this scrip is unlikely to see any further spurt in its price in the short term advises a leading financial advisor.
  • Watch the counter of Polaris Software which is attracting considerable investor fancy in recent times.
  • Buy Mastek, which is said to have caught the attention of investors and speculators alike.
  • According to a source close to the company’s management, an operator has been steadily accumulating the shares of Himachal Futuristics in a big way. Anyone to follow suit?
  • Buy Reliance, as it is believed that institutional investors are making heavy purchases at this counter, avers a Mumbai-based broker.
  • At the current valuation disinvestment at the counter of Vintage Foods could be considered, says an eminent market observer.

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GRAPEVINE


Cadila Healthcare

THIS Indian pharma major continues to perform solidly and introduce innovative products like a “desi” Viagra. According to the grapevine, the Recon acquisition is just the first in a series to follow. The buzz is that an overseas acquisition announcement too could be round the corner. Watch this company.

NDTV

There is a buzz that TV 18 will soon face head-on competition. Why? Because, its arch rival, NDTV proposes to get into business programming in a big way. Things are getting hotter, and eyeballs dearer, it seems.

Grey market

Hardly has the market shown signs of revival than the grey market also woken up. The buzz is that the shares being traded threat are those of UTV and Nimbus Communications. Watch this space.Top





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CHECK OUT

by Pushpa Girimaji

Will consumer Act cover education?

A MEETING called by Union Minister for Consumer Affairs Shanta Kumar last week to discuss the amendments to the Consumer Protection Act has raised hopes of comprehensive amendments to the law finally coming through.

For Indian consumers who have been demanding a stronger and a more effective law to tackle violations of their rights, it has certainly been a long wait. The law, first enacted in 1986, was amended in 1991 and 1993, but subsequently during the course of implementation of the law, several inherent lacunae came to light. However, even though a committee constituted to suggest further amendments to the law submitted its report way back in 1995, the changes never came about. In the meanwhile, several decisions of the National Commission as well as the High Courts and the Supreme Court have further reduced the scope of the quasi judicial bodies, requiring urgent amendments to the law.

Take for example, Section 27 of the Act: This section gives the consumer courts the power to punish those who fail to comply with their orders, with imprisonment or fine or both. Now this is a provision meant to force compliance of the orders of the courts, but unfortunately it does not prescribe any procedure to be followed by the courts before awarding punishment. As the government delayed amending this section, those hauled up under Section 27 found an opportunity to challenge it before various high courts on the ground that it was unconstitutional as it violated the fundamental rights enshrined under Article 21 of the Constitution. The Delhi High Court disagreed. Madras and Kerala High Courts also upheld the validity of Section 27, but the Karnataka High Court took a contrary view. In the case of Parmjit Singh vs Union of India, decided in December 1998, it held that the proviso to Section 27 of the Act authorised the courts to impose a sentence of imprisonment or fine without providing any procedure, resulting in deprivation of the fundamental rights confessed under Article 20 and 21 of the Constitution. It was therefore liable to be struck off as unconstitutional. Holding that but for the proviso there was no unconstitutionality in the main Section, the High Court said the penalties provided under Section 27 could be imposed, but only by filing a complaint before a Criminal Court.

This decision of the High Court came as a big blow to consumers. If the consumer courts have to refer cases of non-compliance to Criminal Courts, it would defeat the very purpose of the law to provide speedy redress. Besides, without the power to punish those who fail to comply with the orders, the consumer courts would be ineffective.

Another area of concern is the lack of adequate provisions in the law to protect consumers from unsafe and hazardous goods. Similarly the courts lack the power to issue interim orders pending disposal of cases. In tackling unfair trade practices too, the powers of the courts are woefully inadequate. The CP Act provides for compensation for loss or injury suffered due to the ‘negligence’ of the opposite party. Since there is no negligence involved in an unfair trade practice, which is a deliberate or an intentional act, a consumer who suffers on account of such practice cannot get compensation under the Act. Similarly, the law has to be amended to provide for additional benches of the State Commission and the National Commission to tackle increasing number of cases. Section 25 of the Act providing for enforcement of the orders of the court also need to be strengthened.

Again, till today, the question of applicability of the law to educational institutions and the various services rendered by them remains uncertain. Even while holding that a student had no right of redress before the consumer courts for deficiencies connected with conduct of examination by a university or a board, the National Commission has said that it is yet to examine the general question of whether educational services came under the purview of consumer courts. Meanwhile, Calcutta and Madras High Courts have categorically held that educational institutions do not come under the ambit of consumer courts. Given this scenario, it would be much better to add ‘education’ to the services enumerated under the law. Well, the list of amendments required to overcome (a) deficiencies in the law and (b) its narrow interpretation by the courts, is certainly long. Many of them have already been incorporated in the proposed amendments finalised by the consumer affairs ministry, but many more are required to be added.

Mr Shanta Kumar told the meeting of officials and consumer activists constituting the Standing Committee of the Central Consumer Protection Council last week that he wished to introduce at the earliest, a consolidated and comprehensive amendment Bill before Parliament. One hopes that at least now the amendments will sail through quickly and the law will emerge with renewed strength and vigour.
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CORPORATE NEWS

Amtek group to foray into IT
CHANDIGARH, June 17 (TNS) — Delhi-based Amtek group treads towards corporate growth to achieve a leap in IT industry. This expansion plan, chalked out by the group’s company Excel Infotech Ltd. involves an outlay of Rs. 150 crore. The company plans to set up various key businesses such as Software Consultancy, Portal Development, Software Development, Software Education & Trainee, 3-D Animation & e-governance solutions. To achieve the desired results effectively the company is currently negotiating tie-ups and joint ventures with various national and international players.

Excel Infotech Ltd. has already obtained category ‘A’ Internet Service Provider Licence. This sets the stage for the company to launch a national level service under the brand name Swiftxs. com. Aiming at offering a wide range of user friendly access options to the consumers the service will soon be available in 6 major cities by September, 2000. These not access options include dial-up/leased/ISDN/Web TV/Cable TV, Mobile phone & Wireless Internet access.

Sun Microsystems, NIIT sign MoU
NEW DELHI, June 17 (PTI) — NIIT Ltd and US technology giant Sun Microsystems today joined hands to become strategic partners for technology collaboration and market sharing under the US company’s global initiative ‘Force’ targetted at Internet companies.

Announcing the alliance Sun’s Vice President and Managing Director (South Asia) Lionel Lim said the two companies would set up ‘competency centres’ aimed at providing solutions to dotcoms.

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BIZ BRIEFS

IDS Infotech
CHANDIGARH, June 17 (TNS) — IDS Infotech Limited (formerly known as Inde-Dutch Systems India Limited), a Chandigarh based IT service provider has been bestowed upon with a state-level award for outstanding IT Export performance, by the STPI, Ministry of Information Technology, Govern-ment of India. Mr Pramod Mahajan, Union Minister of Information and Technology presented the award to Partap Aggarwal, MD of the company.

Shipra group
CHANDIGARH, June 17 (TNS) — A joint venture project of Ghaziabad Development Authority and Shipra Estate Ltd., that has give a complete new face to Indirapuram, Ghaziabad. Shipra Group’s turnover has exceeded Rs 400 crore from the current annual turnover of Rs 100 crore. Apart from Shipra Sun City which it developed recently with 1300 flats, there are a number of commercial and residential complexes said Mr Harpal Singh, Chairman Shipra Group.

BPL
CHANDIGARH, June 17 (TNS) — BPL has launched its new range of direct cool refrigerators — the double cool series. It comes in three sizes — 165, 175 and 220 litres.

Trophy
CHANDIGARH, June 17 (TNS) — Deepak International Ltd., an ISO-9002 company, has been awarded All India trophy for highest exporters 1998-99 (Consumer durables exporters — SSI) by EEPC.
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