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| Thursday, November 2, 2000, Chandigarh, India   
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No plan to reduce equity in banks: Sinha WB aid for development plans Economic zones notified E-commerce, oil prices to top APEC agenda Infosys to scout
for suitable partners |
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Wipro eyes Sweden Steps to
protect small investors Simex 2000 begins India wins anti-dumping duty case Bank of
Punjab unveils ‘Swagat’ Japan to set up
new units at Manesar Vigilance awareness week Bears rule the roost
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No plan to reduce equity in banks: Sinha NEW DELHI, Nov 1 (UNI) — Finance Minister Yashwant Sinha said today the government had no proposal for disinvesting its equity in nationalised banks which, however, would be allowed to raise more capital from the market. He made the clarification at a meeting of the Consultative Committee of his Ministry after some members expressed concern regarding the government’s proposal for reducing government equity in nationalised banks from 51 per cent to 33 per cent. Mr Sinha said the public sector character would be retained. However, some banks required more capital to meet the capital adequacy norm which was likely to be raised to 10 per cent, from 9 per cent, on the recommendation of the Narasimham Committee. The government had planned to bring necessary legislation in the coming winter session of Parliament to facilitate nationalised banks to raise capital from the market. This would in no way dilute the social commitments of such banks to lending money to priority sectors, weaker sections and women, he clarified further. Highlighting the policy initiatives undertaken by the government with regard to banking sector reforms in India, Mr Sinha said the first phase initiated in 1992 brought about discernible progress in the performance parameters of banks while the second phase was directed at further consolidating the gains. These included various aspects of banking policies and institutional, supervisory and legislative framework so as to enable banks to move towards best international practices and attain comparable efficiency and profitability. In order to strengthen and streamline the functioning of cooperative banks, the recommendations of the Capoor Committee were under the consideration of the government. Similarly, steps were being taken to bring about reforms in the urban
cooperative banks based on the recommendations of the Madhavrao Committee. Dr Manmohan Singh, a member of the committee, expressed apprehension whether the public sector banks would be able to raise the required level of capital from the market given the fact that market perceptions of the PSBs has not been very encouraging. He suggested more imaginative policy level initiatives for meeting the credit needs of rural sector, weaker sections and the large informal sector of the economy. Mr Sinha said there was no question of closing down weak banks. The government would do its utmost to revive and strengthen these banks. A restructuring plan for weak banks was being finalised and the Boards of these banks were also being reconstituted with professionals. The government proposed to make statutory amendments for setting up of banks-specific Financial Restructuring Authority to deal with the problems of weak banks on a continuous and long-term basis. A Credit Information Bureau (CIB) was being set up so that the banks and financial institutions can share information about borrowers. Similarly, steps were under way to replace SICA and put in place appropriate bankruptcy laws with a view to further reforming the legal framework. Minister of State for Banking and Insurance Balasaheb Vikhe Patil said the recommendations of the Capoor Committee would be discussed with state representatives and cooperators. Due emphasis would be given for strengthening primary agricultural cooperative societies. Mr Sinha reiterated the government’s commitment to bring about reforms and improvements in delivery mechanism for credit to rural areas, weaker sections and women. On non-performing assets, he said the Debt Recovery Tribunal Act has been amended with a view to facilitating expeditious recovery of bank dues. |
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WB aid for development plans NEW DELHI, Nov 1 (UNI) —Starting with its three “focus states” of Andhra Pradesh, Uttar Pradesh and Karnataka, the World Bank is offering assistance to Indian states to upgrade their water supply and sanitation services as a measure to reduce urban poverty. The assistance, which will be linked to a “demonstrable commitment” by the states to management and fiscal reforms, will comprise long-term aid for specific projects besides technical knowhow and support for innovative practices, the Bank’s lead urban sector specialist Rober Maurer said. The financial assistance could range from about $1million for the knowledge management component to $10 to 15 million for support to innovative activities and “substantial financial arrangement” for long-term programmes. In Andhra Pradesh, the Bank is committed to the
AP Urban Poverty Reduction Programme while in Uttar Pradesh, it is funding studies on fiscal support for institutions at the local government level and on property tax reforms. In Karnataka, an urban water supply project is being supported in the northern part of the state. Mr Maurer said realisation in the Bank that it was “under performing” in the urban development sector in India had led to its engaging the Central Government on this issue over the past few months. At a day-long workshop here yesterday, the Bank unveiled its urban development and urban water supply and sanitation strategies to a broad-based group comprising Central and state government officials, private sector representatives and professionals. “We would like to build a new partnership with India and there was a broad consensus on this at the workshop,” Bank’s lead specialist on water and sanitation infrastructure Jan G. Janssens said. The presentation had elicited a positive response and a follow-up consultation would be held in Hyderabad in December for detailed interaction with state governments. While several states would like to enlist its support for their crumbling civic infrastructure, the Bank has in a shift of strategy decided to focus not only on reform of public utilities but on overall sector reform and private sector participation, he said. Strengthening of decentralisation, improvement in urban management and governance and continuance of sustainable financial management were among the three key principles being advocated by the World Bank. Calling for water to be treated as an essential component of economic development, Mr Janssens said efficient supply, demand management and effective pricing should be dealt with before embarking on fresh infrastructure construction. Speaking on the need to plough funds into the water supply and sanitation sector, Chairman-cum-Managing Director of
(HUDCO) V Suresh said the country was projected to need about Rs 81,000 crore investment over the next five years. However, as of now public sector investment of only Rs 12,000 crore was available, he added. However, influx of funds would help only if mechanisms for their proper management were put in place, he added. |
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Economic zones
notified NEW DELHI, Nov — 1 The government today issued notifications for the conversion of the Export Processing Zones (EPZs) at Kandla (Gujarat), Santa Cruz (Maharashtra) and Cochin into Special Economic Zones (SEZs). Notification has also been issued for conversion of the private sector EPZ at Surat (Gujarat) into a Special Economic Zone at the request of the promoters. In addition to conversion of some of the EPZs into SEZs, government have granted in principle approval for the establishment of seven Special Economic Zones at: Positra (Gujarat) in the private sector and by the State Governments at Nanguneri (Tamil Nadu), Dronagiri (Maharashtra), Kulpi (West Bengal), Paradeep (Orissa), Bhadohi (UP) and Kakinada (Andhra Pradesh). These zones are expected to come up in the near future. The Special Economic Zone scheme is intended to provide an internationally competitive and hassle-free environment for exports. Some of the distinctive features of the scheme include a designated duty free enclave, to be treated as foreign territory for trade operations and duties and tariffs; SEZ units could be for manufacturing, trading and services; No routine examination of export and import cargo by Customs; Sale in domestic market on payment of full duty; SEZ units to be positive net foreign exchange earner in three years; No fixed wastage norms; Duty free goods to be utilised within the approval period of 5 years; Performance of SEZ units to be monitored by a Committee consisting of the Development Commissioner of the Zones and Customs; Once approval is granted, subsequent changes in the line of activity need only an intimation to the Development Commissioner; Subcontracting of part of production and production process allowed for all sectors including jewellery units; 100 per cent foreign direct investment (FDI) through the automatic route in the manufacturing sector and simplified accounting procedures for SEZ units to maintain accounts in formats of their choice.
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E-commerce, oil prices to top APEC agenda WASHINGTON, Nov 1 (Reuters) — US President Bill Clinton and other leaders of the Asia Pacific Economic Cooperation forum will discuss how to tap the power of e-commerce to promote growth in the region when they hold their eighth annual summit next month in Brunei, a U.S official has said. Leaders of the 21 economies will also discuss recent high oil prices and renewed efforts to launch world trade talks after failing last year in Seattle, Mr C. Lawrence Greenwood, senior US State Department official for APEC, said yesterday. This year, APEC is focused on measures that would allow members to take advantage of recent advances in information technology “to enhance and increase productivity” in the region, Greenwood told reporters. Wider use of e-commerce, along with additional structural reforms and market liberalisation, could play a key role in sustaining the recent recovery in Asia, he said. During the November 15-16 meeting, APEC leaders will push for an early launch of multilateral trade talks under the World Trade Organisation, including work on reducing industrial tariffs and eliminating trade-distorting farm subsidies, Greenwood said. In September, APEC Finance Ministers expressed concern about high oil prices and called on producing countries to increase their oil output. The leaders will continue that discussion, with an additional focus on steps APEC members can take to reduce their vulnerability to volatile energy prices, Greenwood said. The 21 APEC members comprise the United States, Canada, Mexico, Chile, Peru, Japan, South Korea, China, Taiwan, Hong Kong, Indonesia, Brunei, Malaysia, Singapore, Thailand, the Philippines, Vietnam, Australia, New Zealand, Papua New Guinea and Russia. The leaders summit will be preceded by a meeting of APEC trade and foreign ministers on November 12-13. US Secretary of State Madeleine Albright, US Trade Representative Charlene Barshefsky and Commerce Secretary Norman Mineta are scheduled to attend those talks. Clinton is expected to hold bilateral talks with Japanese Prime Minister Yoshiro Mori at the APEC summit. That meeting would come shortly after the deadline for the United States to announce possible economic sanctions on Japan in a dispute over Tokyo’s decision this year to its expand its annual whale hunt. Clinton plans to visit Vietnam after the APEC meeting and also is considering a stop in North Korea while in Asia. |
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Infosys to scout for suitable partners BANGALORE, Nov 1 (UNI) — Infosys will continue to focus on it services instead of diverting to it products and will scout for suitable companies for acquisitions, company Chief Operating Officer Nandan Nilekani has said. “We would like to remain as it services company and exploit the huge opportunities available in the sector”, he told newsmen here yesterday after Infosys City, the biggest it services infrastructure in the world, was inaugurated by Nortel Chief Operating Officer Clarence j chandran at the electronics city. Asked why Infosys, which became the first Indian company to be listed on Nasdaq, had not acquired any units so far in the last 18 months, he said the
acquisition was one of the objectives. However, they would acquire only if it synergised with it and provided access to new technologies filling the gap in its product line. However, three other objectives of raising money, emerging as a global brand and recruiting people outside offering
ESOP in dollars had been achieved. No specific time frame had been fixed for acquisitions. To a question, he said the company earned Rs 725 crore in revenues through software exports. About 31.4 per cent of their revenues was from e-commerce applications. They were
concentrating on global 1000 companies.
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Wipro eyes Sweden NEW DELHI, Nov 1 (PTI) — Wipro has set its eyes on Europe’s it hub Sweden as part of its plans to expand market share in the common market in the coming years. “Wipro’s business interest lies mostly with Scandinavian countries including Sweden, in the European Union,” Wipro Vice President Arun Thiagarajan told PTI on the sidelines of ‘Indo-Swedish Partnership Roundtable’ conference here today. He, however, declined to comment on the percentage of business expected to come from the European market when compared to its total exports. According to the roadmap for increasing its presence in the European common market, Wipro has recently set up an office in Sweden. Other Indian it majors like Tata Consultancy Services and HCL have also put up their offices in Sweden in a bid to exploit the potential growth in the sector. Sweden currently invests 7.72 per cent of its
GDP in it and telecommunication sectors, which is slightly higher than that of the us investment rate of 7.09. The company has increased its software workforce by 25 per cent in last six months of this fiscal in order to carry out its expansion plans worldwide.
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Steps to
protect small investors NEW DELHI, Nov 1 — In a move to protect the interests of small investors, the Government plans to make defaulting companies accountable to the Company Law Board with regard to any irregularity in repayment of deposits or interest. Under the proposed amendment to the Companies Act, 1956 the onus would be on the company to intimate the Company Law Board (CLB) of any default made by it in repayment of deposits or part thereof or any interest thereupon within 60 days from the date of default. The CLB on receipt of intimation will pass an appropriate order within a period of 30 days from the date of receipt of such information. It will also not be necessary for a small depositor to be present at the hearing of the proceedings. It is also proposed to make the offence connected with or arising out of acceptance of deposits under Section 58A or Section 58AA of the Companies Act 1956, cognisable (non-bailable) offence under the Code of Criminal Procedure, 1973.
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Simex 2000
begins CHANDIGARH, Nov 1 — “Simex 2000”, a four-day exhibition on industrial instrumentation and process equipments, started here today at the CII. More than 65 companies are participating which is being organised by BEXT, a Bangalore-based company. The companies are exhibiting analytical, test measuring instruments, process control equipments, precision tools and fixtures, process valves and pumps, electronic systems and components and several other products. Instrument Support Services from Ahmedabad has brought Ultraprobe UP 2000, instrument for checking problems in plant like leakages, which has been developed by UE Systems of New York. Elinco has introduced a miniature hand-held digital pH meter and also Hygro Thermometer.”These instruments are portable and very convenient to use”, said Mr Uma Kant, Commercial Executive. Yokogawa is exhibiting its recently introduced view-recorder which facilitates data maintenance .Real time measured data can be reviewed on a colour LCD in analog ,digital or bar graph form. Several other products which have been displayed include calibrators, pressure transmitters, programmable controllers ,process recorders etc. |
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India wins
anti-dumping duty case NEW DELHI, Nov 1 — The Dispute Settlement Body (DSB) of the World Trade Organisation (WTO) has ruled in India’s favour regarding imposition of definitive anti-dumping duties on imports of cotton bed-linen. Reacting to the decision the Textile Minister, Mr Kanshiram Rana, called upon the European Union (EU) to implement the decision immediately so as to provide legitimate market access to Indian cotton bed-linen exporters who have been facing the unfair imposition of anti-dumping duties ranging from 11 per cent to 24 per cent practically since 1994 and to refund the duties already collected. EU has already been requested to do so in recently concluded meeting of Joint Working Group on Textiles held in Brussels on October 23-24, 2000. The Minister hoped that the decision of the Panel will be a landmark judgement as it will affect other EU cases on anti-dumping. Despite bed-linen being under quota,EU has been consistently taking up the case to impose anti-dumping duties on imports from countries like India, Pakistan and Egypt. |
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Bank of
Punjab unveils ‘Swagat’ CHANDIGARH, Nov 1 — Mr Sarbjit Singh, Managing Director of the Bank of Punjab, today launched ‘‘Swagat’’ — a new savings bank product. ‘Swagat’ is basically a saving bank account with no minimum balance requirement but packed with complete Banking services. As the minimum balance stipulation has been done away with, this account will target students, minors, housewives and the salaried class’’. The account holders of ‘Swagat’ will get global e-bank card, he will be able to enjoy Internet banking, fax banking, telebanking, mobile banking and round-the-clock customer care. Mr Sarbjit Singh said ‘Swagat’ account holders will be able to avail the facility of utility bills payments — electricity bills payment in Haryana, DoT and mobile bills payment in Chandigarh and Punjab and MTNL bills payment in Delhi. They will be able to enjoy anywhere banking — through their ATM cards and will also get discounts at various merchant establishments. He said the bank was expecting an exponential increase in its customer base crossing one million customers over the next two year, up from the present four lakh at present. Mr Gautam Gan, Vice-President, (Retail banking) gave details of the scheme. Mr D.P. Singh, Senior Vice-President said the bank plans to launch this new scheme at Ludhiana, Amritsar and Jalandhar shortly. |
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Japan to set up
new units at Manesar CHANDIGARH, Nov 1 — A team of Japanese delegates have said the industrial model township at Manesar will be an ideal place for setting up new industries. An official spokesman said the team was impressed by the infrastructure being laid at this township. The main consideration that weighed with the team was that the town was close to Delhi and located at the Delhi-Jaipur national highway. The team had gone to Manesar on the request of Dr Harbaksh Singh, Managing Director of the HSIDC. Members of the team said that they would set up industries of spare parts of automobile, electronics and information technology, apart from electrical goods. There are two Japanese factories at Manesar of Denso Japan and Honda Scooters. The spokesman said entrepreneurs had come to Manesar to set up their plants. |
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Vigilance awareness week CHANDIGARH, Nov 1 — Vigilance awareness week will be celebrated on October 31 every year. This has been decided by the Central Vigilance Commission. Mr.D.P. Reddy, Senior Regional Manager, Food Corporation of India (FCI) while to mark the beginning of the same administered pledge to all the employees of FCI that they will continue to strive to bring about integrity and transparency in all spheres of activities of their organisation. A seminar will also be organised for the same on November 3 at FCI regional office here. Punjab National Bank is also observing Vigilance awareness week. Mr.K.R. Chabria, Director of the bank today administered pledge to the employees. The Vigilance awareness week celebrations have been in all offices of the PNB northern Zone including Haryana, Himachal Pradesh and J&K. Punjab & Sind Bank Zonal Office (Haryana) is celebrating the Vigilance Awareness week. Mr V.K. Marwah, Zonal Manager, administered the oath to all the staff members who pledged to work unstintingly for eradication of corruption and for providing value based services. Employees of IFFCO Zonal office North also observed Vigilance Awareness week.
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NSE
forecast THE advent of Samvat 2057 does not seem to have boosted the market sentiment significantly as yet with the key indices displaying horizontal movement rather than any clearly discernible upward or downward trend. With little or no sustained institutional buying being witnessed in the market, the prices of key pivotals too appear stagnant. Bear operators continue to rule the roost and traders with a bearish sentiment could consider short positions at the counters of Silverline at Rs 314 (cover up at Rs 289) and Wipro at Rs 2419 (cover up at Rs 2311). Bull operators may consider taking up long positions at the counters of DSQ Software at Rs 354 (square up at Rs 419) and Zee Telefilms at Rs 279 (square up at Rs 312). The dark horse pick of the week is Ajanta Pharma whose performance trends are on the upswing. In the meanwhile, keep eyeing bargain buys. |
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