 |
| Tuesday, June
27, 2000, Chandigarh, India   
|
Punjab to set up panel on WTO issues Car buyers wait for
price war Maruti net profit down 36 per cent
Daimler Chrysler to buy 10 pc stake in Daewoo
being auctioned off
‘Revise power tariff’ Sleepless over house tax hike
|
|
|||||||||||||||||||||||||||||||||
|
Ludhiana entrepreneurs ignore
quality
|
|
Punjab to set up panel on WTO issues CHANDIGARH, June 26 — The Punjab Government today announced to set up a committee of experts which would suggest a course on the issues related to the World Trade Organisation. Announcing this at a seminar on ‘WTO and its impact on agriculture”, Punjab Finance Minister, Capt. Kanwaljit Singh said, “This committee will study the fallout of WTO accord on the State’s agricultural scenario and would also suggest steps to the Centre for enabling the indigenous producers to survive in the open global market.” The seminar organised by the Institute for Development and Communication was attended by intellectuals and noted economists of the country including Prof. Y.K. Alagh, former Union Planning and Power Minister. The Finance Minister said that since the state government does not deal with the international agencies, it will impress upon the central Government to enter into negotiations with other countries on the issue. “ We will take up the issues concerning WTO and GATT seriously. India will lobby hard to help the farmers and the people from any adverse impact of these international aggravates,”he said Defending subsidies, which had earlier drawn lot of flak from other speakers, he said that 75 per cent people in India directly or indirectly were dependent upon agriculture. “ Agriculture and its ‘good health is important for the country. It is no longer the question of mere economics because its social and political implications cannot be ignored.” The Finance Minister,however, strictly speaking against the high level subsidies in the USA and Canada said that they were four to five times higher than India. “In European Union the farmers enjoy a subsidy of $ 17,000. In the USA it is $ 26,000..” Building up on this argument on he said that we have to meet the challenge offered by WTO and GATT and consequently build up a viable agriculture set up. “ States own power is limited, but it can certainly press hard the Centre to defend the rights of its farmers at the international level.” Dr Alagh cautioned the Punjab Government to be ready for pressure mounted by the developed countries to dismantle subsidies.”Also the country has to be very careful while discussing issues related to WTO in the world forum.” He said that Punjab and Haryana were the surplus States as far as foodgrains were concerned. “ But its wheat and rice proportion is a matter to be really worried about. Paddy is a foodgrain which is not suitable for Punjab.” According to Dr Alagh, the diversification of Agriculture in the country has to be planned according to the agro climatic zones. He cautioned that by 2025, water and energy were going to be a major worry for the country. “ We have to plan well in advance.” Defending the national interest vis-a-vis germ plan collection worldwide, he said that it was the genetic heritage of the country.” No private company has a right to exploit this heritage.” Speaking about the green and the black box concept designed by the European and American countries, he said that these were hidden subsidies.” Price of agricultural commodities there are much lower than what we have in India. We will gain if they start exporting their products to us. But we have to think about our farmers, who could be ruined in the process.” Dr Bhalla, hitting hard on subsidies, said that the farmers have to be charged. “ The government must account for charges while fixing the minimum support price for rice and wheat.” Mr R,N. Gupta, Financial Commissioner, Punjab, lamented that the government has been rather slow in reacting to WTO and other international trade regulations. He said that up till now we have been rather weak in information and our level of knowlegde was also poor. “Frankly subsidies are helping only rich and the corrupt.” Prof Randhir Singh intervened to say that the policy to achieve socialism was flawed.in the country,” Our efforts, In the direction,have been flawed. Otherwise nothing was wrong with socialism per se. He asked the finance minister, whom he praised for a candid speech, to find a way so that the country could come out of poverty and have more equitable distribution of wealth. Earlier, Dr Pramod Kumar, Director, Institute for Development and Communication, welcomed the participants. Opposing WTO, he said that there has to be a debate whether the country actually needs it or can do without it. |
|
Car buyers wait
for price war CHANDIGARH, June 26 — Several car buyers in the region have postponed their decisions for new purchases amidst speculation of a ‘’price war’’ in the price sensitive small car segment after Maruti Udyog Limited (MUL) slashed prices in its small car segment on Saturday evening. The markets opened today after a Sunday break with the big question on the lips of buyers — will Santro, Matiz and Indica follow suit and result in a price war? Market watchers opine ‘’the three car makers may or may not follow MUL. It is just a matter of seeing things in a different light.’’ At present the Zen and the Wagon-R, including the base model with a new reduced price, from Maruti continue to be placed in direct competition with the Santro, Matiz and the Indica in the Rs 3 lakh to Rs 4.50 lakh bracket. The reduction of Maruti’s selected models like the 800 or the Omni van is aimed at selling cars to those who are on the verge of buying a four wheeler but were finding even such models out of their reach. It remains to be seen how, or even if, the price cut will affect the surging growth of other small cars. A local dealer opines: ‘’Buyers preferring Indica, Santro or Matiz, are those who are themselves from Maruti. For them the price cut will not matter.’’ MUL’s price reduction has fired the small car segment, a Maruti dealer said while narrating how his staff has been recieving phone calls on the new price and finance options since this morning. Those wanting to take advantage of Maruti’s price cut also had to wait today as MUL officials conveyed the exact rates to its dealers in Chandigarh, Punjab, Haryana and Himachal Pradesh at about 3.30 p.m. And by then not many banks are open to issue bank drafts required to book the car. Some experienced dealers had, however, calculated the new price on their own and reportedly even sold a couple of cars. Though the ex—showroom price of MUL models in Delhi had appeared in all newspapers, prices in other states vary due to different taxes and costs of transportation. The Maruti prices have been reduced between Rs 10,000 and Rs 25,000. The reduction applies to the STD 800, EX MPFI, DX MPFI, Wagon R (LX) the OMNI 8 and 5 seater versions. The entire range of the Zen, and top variants of the Wagon. R have been left untouched. The
price cut as been affected as Maruti reportedly has a huge and
unexpected inventory of around 60,000 cars while the Hyundai, Matiz and
the TATA Indica have collectively eroded its monoply in the small ar segment. Even the market share of the Maruti in May this year had
dropped to 52.3 percent, according to figures released by the Society of
Indian Automobile Manufacturers (SIAM), last week. Meanwhile the market
share of the Hyundai, Matiz and the Indica stood at 14.3 per cent , 11.7
percent and 9.87 percent, respectively. All hived off the Maruti’s
once gigantic share in the small car sector. |
Maruti net profit down 36 per cent
NEW DELHI, June 26 — The Board of Directors of Maruti Udyog Limited (MUL) today approved a lower dividend of 25 per cent for the 1999-2000 fiscal, having registered a 36.7 per cent drop in net profit during the year at Rs 330 crore. Company sources told UNI here today that the Board of Directors, approved the financial performance for the year. The company has recorded a 19.1 per cent growth in turnover during the year at Rs 9,673 crore as against Rs 8,118 crore a year ago. Net profit for the year stood at Rs 330
crore, down from Rs 522 crore in the previous year. The company attributed the drop in profits to depreciation from its huge investment at the Gurgaon plant, heavy interest burden and the impact of the price cuts announced in December 1998. The company approved a lower dividend for the year at 25 per cent as against 30 per cent last year. The Board also considered ex-post facto the price cut that was announced on Saturday on three of its models — Maruti 800, Omni and Wagon-R. |
|
Daimler Chrysler to buy 10 pc stake in Hyundai SEOUL, June 26 (AP) — US-German auto giant DaimlerChrysler AG will acquire a 10 per cent stake in South Korea’s carmaker Hyundai Motor Co for $ 428 million, both sides said today. The
capital-tieup strengthened Hyundai’s strategy to become a global player by ranking among the top five automakers by 2010. The announcement boosted Hyundai’s share prices in early trading on the Korean Stock Exchange. The tie-up also boosted chances of a joint bid to be submitted by the two firms to buy debt-ridden Daewoo Motor Co in an international auction due today. “Hyundai aims to become a major global player by the end of this decade with four million units, and this is one of the steps to reach that goal,” said Steve
Kitson, a Hyundai spokesman. The capital tie-up calls for the two companies to set up separate 50-50 joint venture to operate Hyundai’s commercial vehicle plant with an annual capacity of 100,000 vehicles. DaimlerChrysler has already agreed to buy a major stake in Japan’s Mitsubishi Motors Corp. But as the deal does not include production of trucks, DaimlerChrysler has turned to Hyundai to strengthen its presence in Asia, industry officials said. Japan’s Mitsubishi group, including its carmaking arm, Mitsubishi Motor, holds a 4.36 per cent interest in Hyundai. Since word of DaimlerChrysler’s interest in Hyundai circulated a week ago, the price of the Korean firm’s share has increased steadily. After today’s announcement, it jumped by nearly 5 per cent in early trading. Daewoo being
auctioned off Daewoo Motor, South Korea’s second largest automaker with $ 18 billion in debt, is being auctioned off by its creditor banks. General Motors Corp, Ford Motor Co,
DaimlerChrysler, Fiat SpA and Hyundai have been invited to submit bids. Before the
DaimlerChrysler-Hyundai deal, GM and Ford were considered front-runners in Daewoo bidding. Now, GM and Fiat were reportedly moving to submit a joint bid for Daewoo. Korean government officials have said they would only approve a Hyundai bid if the Korean carmaker joined with a foreign company to avoid a potential monopoly. Daewoo’s creditors plan to select two finalists by Friday and one successful bidder by the end of September. The successful bidding price is expected to reach $ 3 billion. Daewoo has the capacity to make two million vehicles a year in plants stretching from the Philippines to Poland. But Daewoo borrowed heavily to expand, and cash flow from operations eventually fell short. Then the Asian currency. Last year, Daewoo Motor lost $ 3.9 billion on revenues of $ 5 billion. Creditors demanded a major overhaul, and a restructuring committee began seeking a buyer. Kia Motor Corp, last year, which allows it to control two-thirds of the nation’s 1.2 million vehicle domestic car market. In April, French carmaker Renault bought another debt-ridden South Korean auto firm, Samsung Motors Inc, for $ 562 million. That gave Renault a 70.1 per cent stake in the Korean company.
|
|
‘Revise power
tariff’ PATIALA, June 26 — The Punjab State Electricity Board Engineers Association today urged the Punjab Government to revise power tariff as the PSEB was on the verge of bankruptcy. A press note issued by the association here said a loss of Rs 6 crore was
beign suffered daily due to free power supply to tubewells in the paddy season. It said an annual cash loss of Rs 800 crore and an commercial loss of Rs 1,330 crore was the main reason for the deterioration in the financial status of the
PSEB. The association also accused the government of giving incorrect and misleading statements to the regional and national Press regarding the financial position of the
PSEB. Figures published by the Planning Commission show that from 1992-93 to 1996-97 the PSEB had suffered a loss of Rs 4102.1 crore due to supply to agriculture sector below cost price. During the next three years — 1997-98 to 1999-2000 — when free power was given, the losses shot up to Rs 4,726 crore (against which the PSEB has claimed Rs 934 crore compensation from the government). Total loss of the PSEB from 1992-93 to 1999-2000 due to agricultural supply was thus Rs 8,828
crore.
|
|
Sleepless over
house tax hike
CHANDIGARH, June 26 — The Centre’s rejection of the demand to reduce the floor rate of sales tax on agricultural inputs like fertilisers and pesticides to zero per cent has put the Haryana Chief Minister, Mr Om Prakash Chautala, in a tight spot. The Chautala Government, at its first Cabinet meeting on March 3, last, had adopted floor rates of sales tax as laid down by the Centre for most of the goods. But it had exempted fertilisers from 4 per cent tax, while imposing only 2 per cent tax on pesticides. On diesel also Haryana had not adopted the floor rate of 12 per cent and continued with the existing 10 per cent rate. The reason was obvious. Any increase in tax on these commodities would have directly affected farmers, the primary constituency of the ruling
INLD. No such hesitation was shown when it came to taxing non-agriculture sections. If industrialists have been irked by the imposition of 4 per cent Local Area Development Tax
(LADT) or raw material purchased from outside Haryana, massive increase in house tax, which will be calculated according to a new formula, is giving sleepless nights to property owners in the urban areas. Under the Haryana Municipal Committees Act, 1973, the annual value of a property was to be assessed on the basis of the “fair standard rent” and house tax was to be 5 per cent of annual value. However, under the new formula not only the rate of tax has been increased from 5 per cent to 10 per cent, but the basis of determining annual value has also been changed. Now the annual value will be based on the current price of land and construction cost of a building. According to a report prepared by two BJP
MLAs, Mr Kanwar Pal and Mrs Veena Chhibber, a liability of house tax would go up under the new formula to 10 to 15 times of the existing house tax. At the Chief Ministers’ conference held in Delhi on June 22, Mr Chautala had demanded that agricultural inputs should be free from sales tax or at least there should not be any increase in the existing rates of tax on these commodities. The demand has not been accepted. The new deadline for compliance with the policy of uniformity of sales tax is July 10, after which the Centre may implement its threat to impose a cut of 25 per cent on its assistance to defaulting states. Under the circumstances Haryana is left with no choice but to impose 4 per cent sales tax on fertilisers and pesticides and an additional 2 per cent sales tax on diesel. Since Mr Chautala is understandably highly reluctant to impose these taxes, Haryana may like to wait and watch at least till July 10, when the response of the other states will be known. As and when the Centre threatens to cut its assistance, the Haryana will tax agricultural input. The INLD will try to convince its constituents that its Government was forced by the Centre to anti-farmer measures. According to informed sources, certain big industrial houses, including
MNCs, have put their expansion plans on the hold in view of the LADT. They have joined hands and are exchanging notes on how to meet the situation created by the new tax. Representatives of several industrial houses under the aegis of the PHDCCI met Mr Chautala last week in Delhi and urged him to reconsider
LADT. The Chief Minister is believed to have told them that a meeting between the officers and the industrialists would be arranged shortly to sort out the tangle. Certain industrialists have also started consulting legal experts so that if their efforts at the political level fail, the doors of the courts can be knocked. The industry estimates that LADT would put a burden of over Rs 400 crore per annum on it. The PHD Chamber says the imposition of this “unprecedented tax” has shaken the confidence of the business community. This would have an adverse impact on the proposed investments in the State — both domestic and foreign. |
|
Ludhiana entrepreneurs ignore quality CHANDIGARH, June 26 — By the year 2004, after WTO is fully implemented, majority of the hosiery industry could be in serious trouble, Ludhiana more, than possibly its counterpart in Tirupur. According to a study sponsored by the Sri Aurobindo Institute of Socio Economic and Management Research and the Vardhman Spinning and General Mills Ltd., it has been observed that the average entrepreneur engaged in the hosiery business in
Ludhiana, does not understand the basic concept of management and lacks professionalism. As per the coordinators of the study, Dr D.D. Sharma and Dr Y.K. Saini, after a comprehensive investigation, certain important factors have emerged. “It is high time that the entrepreneurs in Ludhiana clarify their approach, both in quality and managerial activities.” The study , with Prof. B.S. Rathore as its Chief Consultant, was undertaken on the behest of the yarn making company in Ludhiana which observed that demand for supply was increasingly getting lower day by day. In the research by the Technical Teachers’ Training Institute entitled “Entrepreneurship in hosiery industry in Ludhiana (Punjab) and Tirupur (Tamil Nadu), another major inference drawn was that despite Ludhiana industry being older, its counterpart in Tirupur was growing at a faster rate. “Ludhiana hosiery industry was hit badly after the disintegration of the U.S.S.R. In 2004, the competition is expected to be directly with China, Sri Lanka and Bangladesh where the overheads are much lower. Then some serious trouble can be expected. About 95 per cent of the industry, which includes .small and tiny units can be eliminated,” says Dr Saini. According to the two coordinators of the study, there were reasons behind why an industry which is almost 100 years old is facing problems in the recent past. They say that the main objectives were to assess infrastructural facilities available and export performance of various hosiery clusters vis-a-vis Ludhiana and Tirupur. “Another objective was to study the socio-economic profile of hosiery entrepreneurs of the two cities. Besides this, we also conducted major research on perceptions, motivation,entreprenurial competencies and their managerial approach.” The researchers involved 10 major garment exporting cities in the country including Mumbai, Calcutta, Chennai, Bangalore, Jaipur, Tirupur, Ludhiana , Cochin and Hyderabad. Interestingly as far as number of units were concerned, there are 13,000 units in Ludhiana including major, small and tiny units. On the other hand, total hosiery activities in Tirupur numbered just around 3,850 units. Similarly, there are 906 exporters in Ludhiana in contrast to 368 in
Tirupur. However, total annual production in Ludhiana is 2,000 crore. Tirupur has an annual production of 4,000 crore. Labour employed in Tirupur is two thirds of that of Ludhiana. But the fact is that Tirupur is developing faster, even though the actual support still comes from Ludhiana.” The two researchers also felt that Tirupur was making far better use of information technology. “Use of internet and e-commerce is being tapped rather effectively in Tirupur for improving business performance.” The industry in Ludhiana gains is that entrepreneurs add more value to their products. Ludhiana makes sophisticated and woollen garments. Therefore the entrepreneurs there survive basically on High value additions. Tirupur survives on mass production and volume. However, the reason why Tirupur is growing faster has been also attributed to better support system for the industry from the government and other agencies. Research says that importance of export infrastructure has been well realised in Tirupur . The city is well connected by rail as well as road. The Tirupur Exporters Management is well equipped. Moreover there is an adequate government support.. Wage rates there are also much lower. Except maybe for language problem, Tirupur seems to be equipped in a better way to deal with the challenges ahead. |
rc
Heroes as villains
NEW DELHI: In this age of overnight heroes, advertisings, which is undergoing a change quietly. Or is it?
A leading film star’s involvement in shooting wild animals a year ago made no dent to his saleability as a product endorser. Today there seems to be a sudden decrease in promos by cricketers, specially of those whose names are doing the rounds in match-fixing. It clearly shows the corporates are ready to forego the “heroes” once they are exposed to the public eye as corrupt, note analysts. “We have not yet withdrawn our advertisements having cricketers Ajay Jadeja and Rahul Dravid, but if they are proven guilty, marketing twists may happen,” says Sukhvinder Singh Prem, Marketing Director, Reebok India Ltd. “Our strategy is to use the current craze for the common man. Last year, for the first six months, we ran ads with Daler Mahendy. Now it is Hrithik Roshan,” says a Coke official. Does the consumer feel cheated, when he sees stories of alleged corruption by the celebrities who promoted big brands? Mass culture with its characteristic consumerism, banks in on the young generation, especially children and teenagers who are most affected by star-studded ads. They try to emulate their role models, to identify with them, which means using whatever they say they use. “Surprisingly enough, a recent study on the preferred role models of the younger generation had criminals as third priority, after filmstars and sportspersons. Many a time, adolescents arrested for crimes traced their inspiration to images of criminals as projected through TV and films.” says an expert. — PTI
Ghai turns ‘Saudagar’
NEW DELHI: Mukta Arts Limited, promoted by producer-director Subhash Ghai is planning to enter the capital market with an initial public offer of Rs 100
crore. The book building process for the issue will start around mid July. The company has produced seven films, including blockbusters like Hero, Karma, Saudagar and
Taal. Besides the company has acquired rights of five films, including Karz, Ram Lakhan and Jaan — UNI
India’s first
3D game
MUMBAI: Nazara.com now has launched India’s first 3D game, Rakshak-the Saviour. Rakshak-the Saviour is a revolutionary gaming concept that invokes the feeling of patriotism in every gamer. Rakshak is a man on a mission to decimate the evil intentions of the terrorists and save his nation fighting through tough terrains and deadly traps. Rakshak is set in a complete 3D environment with all the usual user-interactivity and thrill of the 3D games as finding and pulling out stops, picking up ammunitions and guns, health-kits and finding keys to locked doors all through dark life-like labyrinthine alleys and streets of the enemy bastion. — UNI
How to groom your staff
NEW DELHI: A new management service is now here to groom your staff to ensure that the customer goes back satisfied, says Nina
Kochhar, co-founder of Upgrade Management Service. Says Upaul Majumdar, a partner in the venture, “Our training at Upgrade is ‘tell me I may forget, show me I may not remember, involve me and I’ll understand’.” A lady who had purchased a new model of car had problems with the clutch. When she complained she was summarily told that she was driving all the time pressing the clutch. After a week the brakes failed and she had a narrow escape. When she told her friends about the incident the company lost a whole lot of customers, Kochar said. — PTI
|
cr
Subex Systems issues 1:1
bonus United Bank net up 113 pc Tata Donnelley to change name Glenmark Pharma acquires 3 brands Sun Pharma to invest 40 cr in R&D |
bb
A-I Virgin flight SBI branch Rajiv award Rel Petro Indal board |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 120 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
