 |
| Saturday,
December 30, 2000, Chandigarh, India   
|
idbi asks govt to dilute its stake
HSIDC in pact with Abu Dhabi firms
MF looking for ways to expand productline ‘Evolve long-term fertiliser policy’ |
|
|||||||||||||||||||||||||||||
It was exports all the way in 2000
BSNL cut in rates
to hit small ISPs Polaris to go for
e-governance
Internet boy does
wonders Australians living
on borrowed money
|
|
idbi asks govt to dilute its stake
NEW DELHI, Dec 29 (PTI) — Term lending institution Industrial Development Bank of India (IDBI) has favoured privatisation by diluting of government stake below 51 per cent in the premier Financial Institution to take on the competition. The suggestion has been made to Parliamentary Standing Committee on Finance during a submission. The bank said the dilution was necessary to shed the image of being a government controlled and a rigid institution. IDBI has also suggested that the government amend the IDBI Act to enable the dilution of its stake below the 51 per cent threshold level. At present the IDBI Act mandates that the government shareholding cannot fall below the 51 per cent level. It says that the proposed dilution of the government stake would enable the institution to improve its market perception to raise funds from the market, both domestic and international, on favourable terms. The government at present holds 56 per cent equity in the institution subsequent to the amendment in the IDBI Act in 1994. As a result of this amendment the bank made an initial public offering (IPO) of its equity shares. Simultaneously, the government offered a part of its equity for sale thereby bringing down its share to 72 per cent. In June, 2000, the government further reduced its stake in the institution as part of an capital restructuring exercise involving a conversion of its equity into preference shares. The capital restructuring exercise was undertaken with the objective of enhancing shareholder value and enabling the institution to raise capital from the international market.
|
|
HSIDC in pact with Abu Dhabi firms Chandigarh, Dec 29 — The Haryana State Industrial Development
Corporation (HSIDC) today signed a tripartite MoU with the Abu Dhabi-based Al Manhal International group (AMIG) and Vavasi Oil and Gas Private Ltd (VOGL). The MoU will pave the way for establishing an integrated gas grid in the state for providing natural gas to various categories of consumers, including the power sector, an official spokesman said. He said optic fibre cable network would also be set up along the gas pipeline. The MoU was signed here in the presence of Om Prakash Chautala, Managing Director of HSIDC Harbakhsh Singh, Director of AMIG Saad Salem Yousef and Managing Director of VOGL Farid Arifuddin. Finance Minister Sampat Singh, Principal Secretary to CM S Y Quraishi, Additional Principal Secretary to CM Sanjeev Kaushal and former Chief Secretary of Punjab S L Kapoor, who is an Adviser to the consortium, were also present during the signing of the MoU. A spokesman said AMIG-VOGL consortium for natural gas supply was already pursuing an integrated petrochemical complex to be set up at Gopalpur in Orissa which would comprise a Liquid Natural Gas (LNG), regassification terminal of five million metric tonne per annum capacity and other downstream plants. A 1250 km long gas pipeline up to Auriya in Uttar Pradesh was being laid for supplying gas to Punjab and Haryana. Mr Vishnu Bhagwan, Chief Secretary, said natural gas would be highly useful in generating electricity the demand for which is likely to shoot up following the influx of industrial units in Haryana from Delhi. In case the state generated 1000 to 1500 MW of gas based power, it would greatly benefit the consumers. Mr P K Chaudhery, Commissioner and Secretary, Industries, said under the MoU retail vending or retailing of compressed natural gas would be taken up for usage as automobile fuel by establishing the retailing network. Natural gas would also be cheaper than petrol. Mr Farid Arifuddin, MD of VOGL, said he would expect the state government to play a promotional role and not that of an investor as they would need right of way for infrastructure development. Mr Saad Salem Yousef sought the assistance of the Chief Minister for the ventures which the consortium would be undertaking in the state. While stating that the project would benefit Haryana in a big way, official spokesman said the HVPN was already planning liquid natural gas power projects in the state, including two units of 60 MW each by June 2003 and two units of 60 MW each by June 2004 to be set up by BHEL. The estimated demand for LNG in the power sector in Haryana is 1.56 million MT per annum (MMPTA). A fertiliser plant, proposed to be set up in the state, would require 0.3 MMPTA of LNG. The spokesman said natural gas would also meet the demand for environment friendly fuel and cities like Gurgaon and Faridabad could be supplied regassified LNG through a pipeline network. The consumers in towns and industrial sectors had a demand for 0.7 MMPTA of LNG.
|
|
MF looking for ways to expand productline
MUMBAI, Dec 29 (UNI) — Badly shaken out by worst performance of the stock market during 2000, Mutual Fund (MF) is now looking innovative ways for expanding the productline which will tackle the changing period. After making a firm start in line with the booming stock markets, MF entered into a negative territory along with the markets in the second half of the year due to adverse conditions, registering a decline in its growth. Various schemes under management of MFs were included equity-oriented and sector specific thus lost badly in view of lacklusture performance of the stock market, sources in MF said. “The year 2000 was really a testing period for MF as it has got a lesson from the situation and now MF has decided to stress on innovative ways for expanding the productline which will tackle the changing period”. said Mr Hemant Rastagi, Head of Business Development at ING Trust. The start has already been made by a few MFs in this direction by launching debt schemes, branded, fixed maturity plans, serial plans or bucket funds, which are primarily positioned as an alternative to investing in bank fixed deposits (FDs) with different maturity profiles. The funds are also introducing daily dividends and income plans to make it more tax efficient, the sources said. According to them, MF witnessed tremendous redumption pressure after the annual Budget which gave a major setback to it by a way of scrappage of Sections 54EA/EB. Another killjoy came in the form of an increase in dividend tax on debt-oriented funds to 22 per cent (20 per cent plus 10 per cent surcharge) from 11 per cent earlier. The 22 per cent taxation has badly affected the inflow of funds in MFs. It has raised voice against the provision. “We hope the government will take up the matter while formulating the Budget for 2001-2002”, said Mr B.G. Daga, Executive Director. After receiving setback from the turbulence in the stock market, the hike in the bank rate by the RBI in late August also dampened the growth cycle of MF as the debt funds suffering moderate decline, the sources said. The 30-stock BSE Sensitive Index, which is being considered barometer of the country’s capital market, tumbled by over 21 per cent during the year by posting a net fall of 1,070 points at 3,932.78 points from the previous year’s close of 5,005.82 points. Since a majority of the MF schemes were equity-oriented and sector specific, the fall in the stock market clearly reflected in the performance of mutual fund industry, industry sources said. According to the Association of Mutual Funds in India (AMFI), total assets under management of the MF industry reached to Rs 99,520 crore at the end of November 2000, registering a moderate increase of Rs 2,492 crore from Rs 97,028 crore of the previous year (December 1999). The industry witnessed a redumption of Rs 4,389 crore against the total sales of Rs 6,662 crore during April, followed by a redumption of Rs 5,511 crore against a total sales of Rs 6,429 crore. The trend continued in July as the redumption stood at Rs 3,921 crore as against total sales of Rs 5,421 crore in July. The redumption reached to a new high of Rs 6,847 crore as against total sales of Rs 8,260 crore in October, while in November, the industry recorded a redumption of Rs 5,425 crore against total sales of Rs 6,059.
|
|
DSE to start
commodities trading NEW DELHI, Dec 29 (UNI) — The Delhi Stock Exchange (DSE) has set a target to increase the trades from 75,000 to 150,000 lakh transactions a day in the next six months and will start by April next commodities trading specially gold-backed securities and others including cotton, mustard and crude oils on the screen-based trading platform against the existing outcry system. The newly-elected DSE President Sudhir Joshi told UNI here that the thrust will be on the business development throughout the year which would result in an increase in the trade volume from Rs 400-500 crore to Rs 1,000 crore “as soon as possible”. He said currently the exchange was handling 75,000 trades a day and the system was tuned for one lakh trade and system will be soon equipped to handle 2.5 lakh trades a day. Mr Joshi, who was earlier member on the DSE Board, stated that the proposed virtual private network planned by major cities in association with Dishnet will soon enable DSE to provide connections through Cable TV. It would free most of the 350 V-sets currently linking the bourse with 160 cities. They would then be put for use in remote areas and smaller towns at nominal costs. He said 120 ISD lines have also been sanctioned for DSE, which will take the total number of such lines to 360. ID capacity on computers will be increased to 4,000 connections. The connections have already gone up by 1500 against the earlier capacity of 1200 IDs. Currently 15 to 20 IDs are provided every day and number is likely to touch 2,500 in the next three months to increase the trading turnover, Mr Joshi said. |
|
‘Evolve long-term fertiliser policy’ NEW DELHI, Dec 29 (PTI) — A Parliamentary Committee has taken serious exception to government’s failure to frame a long term policy for the fertiliser industry, despite the fact that potassic fertilisers were decontrolled way back in 1992, and said flow of investment has been hit because of this. Asking the government to evolve a long term policy for the high capital intensive sector, the Standing Committee on Petroleum and Chemicals said the policy should attract the industry to invest and at the same time be conducive for promotion of farmers’ interests. The committee, chaired by Samajwadi Party leader Mulayam Singh Yadav, said in its eleventh report that the government should evolve a “rational approach” towards the concession scheme for decontrolled fertilisers instead of deciding it on ad hoc basis. Recommending constitution of an independent regulatory authority with full functional autonomy to decide and implement the concession scheme, it said “the concept of ad hoc concessions carried over on an year to year basis has negated the very concept of perspective planning”. Even though the Department of Fertilisers has tried to forward a justification that by decontrolling potash they have been able to curtail the growing subsidy, “the facts seem to prove the opposite”, it said. For instance, it said, the subsidy (ad hoc concession) figures of potash/potassic fertilisers has gone up by about ten times in the last eight years. Noting that the concession support scheme lacks stability and continuity, the committee said it runs on ad hoc basis and “is notified separately for each year, some times from crop to crop season, and lapses automatically at the year end or after sowing season.” “This leads to uncertainty both for the producer and importer”, it said, adding, that the sellers face difficulties to get their sale certified by state governments and “in this process their dues are locked up unnecessarily”. The government should, therefore, evolve a system by which quantum of support under the scheme is assured at least for two-three years, it said. It said the government should also ensure that sellers are not harassed for getting their sales certified by the representatives of state governments. “To achieve the objectives, the government should draw a time-table, within which the state governments have to certify the sales, failing which penalty in the form of interest on locked up amount must be provided”, it said. The committee agreed with the observations of the Fertiliser Association of India (FAI) that despite de-jure decontrol, de facto intervention and control by the government on various aspects are very much intact and that too without any accountability. The committee also cited the plea made by the FAI that in the absence of any policy of the government for the sector, industry has been unable to take a decision to go for investment, including in joint ventures. |
|
It was exports all the way in 2000 NEW DELHI, Dec 28 — The government went all out to boost exports during the year 2000 and taking a leaf from China’s experience introduced Special Economic Zones in the country. The thrust was on exporting value added products, a friendly trade environment and involving the states in the export efforts. After a lack lustre year, the new millennium saw exports surging with sustained double-digit growth — the highest recorded in over a decade. It appears the exports would exceed the 18 per cent growth target set in dollar terms by the government for the financial year 2000-2001. Latest official figures show that India’s exports during April-October 2000 were valued at $ 25 billion registering a growth of 20.51 per cent over the level of $ 20 billion achieved during the corresponding period of 1999. In rupee terms, India’s exports during April-October 2000 were up by 25.59 per cent. High growth has been witnessed in exports of many items such as engineering goods, chemicals and related products, ores minerals, leather and leather manufactures, gems and jewellery, marine products, oil meals, textiles and electronic goods. Focussed strategy such as the “Focus: LAC” programme resulted in over 40 per cent growth in India’s exports to the Latin American region. During the year the government also initiated steps to work out a medium term export strategy (2000-2005). One of the major steps towards boosting exports was the setting up of Special Economic Zones (SEZs). These zones are meant to provide a world class, internationally competitive and hassle free environment for exports. According to the Commerce Minister, Mr Murasoli Maran, together with FDI policy initiatives for SEZs, it is expected that these zones will have the potential to act as “magnets” for investments for export production from home and abroad. As a first step, four existing Export Processing Zones (EPZs) — at Kandla, Santa Cruz, Cochin and Surat — were converted into SEZs with effect from November, 2000. In principal clearances have been given to the establishment of new SEZs at Positra (Gujarat), Nangunery (Tamil Nadu), Kakinada-Vizag (Andhra Pradesh), Paradip (Orissa), Kulpi (West Bengal) and Bhadohi (Uttar Pradesh). In a bid to help the export community , a major computerisation programme was launched in the offices of DGFT and all the Port Offices of the DGFT are to be computerised by December 31, 2000. The facility of electronic filing of applications has been made available in all these offices. E-governance and EDI initiatives in this area are fast making repeated trips to the government offices in the foreign trade area a thing of the past. A scheme was evolved for involving the state governments in exports by providing financial assistance proportionate to their export efforts. An allocation of Rs 250 crore was provided during the year for this purpose. On the import front, the government took major initiatives to protect the interests of the domestic industry. An Inter-Ministerial Group under the chairmanship of Commerce Secretary was constituted to assess the likely impact of the removal of quantitative restrictions (QRs) and to suggest suitable corrective measures. Others measures recently taken by the government include increase in import duties on a number of items; initiation of suo moto anti-dumping investigations in respect of import of battery cells, battery operated toys and sports shoes; subjecting import of all packaged commodities to compliance of all the conditions of the Standards of Weights and Measures (Packaged Commodity) Order, 1977, as applicable on domestic producers; and Subjecting import of 131 products to compliance of the mandatory Indian quality standards as applicable to domestic goods. On the multilateral trade front, mandated negotiations in respect of the WTO General Agreement on Trade in Services (GATS) and the Agreement on Agriculture (AoA) commenced from January 1, 2000. In order to outline strategies for these negotiations, the Ministry has held interactive meetings with various stakeholders including major industry associations, research institutes, concerned administrative ministries and departments of Government of India and professional associations in the area of services. In respect of agriculture, interactive meetings were held with major industry associations, besides which the Ministry also participated in meetings organised by the Ministry of Agriculture with State governments, farmers’ representatives, political parties and voluntary organisations.
|
cr
BSNL cut in rates to hit small ISPs CHANDIGARH, Dec 29— The announcement by the Punjab Circle of BSNL to slash Internet rates by the first week of next year has evoked strong reaction from the private Internet service providers (ISPs) who apprehend this will
adversely affect them in view of their nascent growth and stiff competition in the market. They also say that the claims by BSNL to provide quality services to its customers are likely to fall flat. While the bigger players in the market are confident about their success in
the" long run”, the smaller ones fear a total exit from the market. The increasing competition and subsequent slashing of the rates by the service providers who are vying to capture a substantial share in the market are ultimately leaving most of these incapable to strike a balance between their revenues and expenses. At present, there are more than 70 ISPs in the country and in the region more than 15 ISPs will come within three months, thereby increasing the competition even further. “Slashing of the rates further by BSNL will rather discourage new ISPs to enter the market. Most of the new companies which are working on a smaller scale are not even able to meet their expenses and the ultimate result might lead to the closure of many of them”, says Mr. Sandeep Sharma, Director ,Glide Mart. The number of Internet users increased only after the entry of the private ISPs in the market which provided quality services to consumers and thus it is important that their interests are not ignored, feels Mr Sharma. “The ISPs which in any case are providing better services, are already a major source of revenues to BSNL ( as most of the users access Internet via BSNL phones only) and discouraging them will also have an adverse impact on BSNL’s earnings, “, he added. Most of the officials of ISPs, however, say that the ones providing quality services will be the only ones who will be able to stay in the market in the long run.” Any decision to adopt a further strategy depends only on the final decision taken by BSNL in this regard. We are not scared of the competition offered in the market and ultimately the one who exists will be the one who provides quality
services", says Mr. Shehnaz Gill, Branch Manager, Satyam. He, however, does not forget to add that the decision is likely to discourage new entrants in the market. The smaller entrants fear that they will not be able to sustain themselves in the market.” We are still finding our feet in the market and such kind of move is unfair to us as it will reflect badly on us in comparison to the bigger operators”, said an official from another ISP. “Going by the present scenario, by the end of the next year, the number of ISPs is expected to be halved which is likely to be reduced even further”, says Mr. Vijay Kaul, Chief Marketing Officer, HFCL Infotel, which is also planning to provide Internet services shortly . HFCL, which is also into basic telephony and is quickly capturing a wider market share in telephony, is in direct competition with BSNL. “We will adopt a wait and watch policy before taking any concrete step”, Mr Kaul stated. Polaris to go for
e-governance SHIMLA, Dec 29 — Polaris, a Chennai based leading software company specialising in banking and financial services, has decided to go for e-governance projects in a big way. Stating this here today Mr Rajiv Malhotra, Senior Vice-President of the company, said that a sister organisation, Maverick Systems, had been set up for the purpose and it was already implementing projects to enable the Andhra Pradesh Government to switch over to e-governance. He said he had already held a preliminary meeting with Mr P.K. Dhumal, the Chief Minister, and expressed willingness to implement e-governance schemes in
Himachal Pradesh. He said his company had registered 100 per cent growth over the past seven years and its turnover was likely to reach Rs 260 crore from last year’s Rs 170 crore. Its unique software bank now, which facilitated centralised banking operations was being used by 60 banks in the USA and 10 other banks in thirty countries. The company had seven software laboratories in India, six in the USA, one each in England and Switzerland. It planned to set up a laboratory in Australia soon. He said in India Himachal State Cooperative Bank was the first to use the bank now software which would enable the bank provide services comparable with multinational banking institutions. NIIT opens 2000th centre CHANDIGARH, Dec 29 — With the launch of its third education centre in Allahabad, NIIT, global IT education and software major, achieved a new landmark of setting up the 2000th NIIT education centre in the world in the year 2000. NIIT plans to set up 1000 more centres in the next one year. NIIT is also setting its sights on attaining the global leadership position in IT education and training by the year 2004. NIIT with its education revenues of Rs 625 crore is already ranked among the top 7 independent IT education and training companies in the world. |
co
Internet boy does wonders LONDON: A technology conscious schoolboy, who was spending a fortnight working for a printing company, transformed its ailing fortunes by setting up a website and securing a flood of new orders, The Daily Telegraph reported yesterday. Adam Hughes, 17, realised within hours of starting a two-week work experience stint at the offices of Martin Mulligan UK that the company had to get onto the Internet in order to survive. He redesigned its sales and marketing strategy so efficiently that lucrative contracts immediately arrived from Britain and the USA. We were lagging
behind the competition and really struggling to stay afloat when Adam arrived. Our marketing plan had become outdated, as we still used the conventional methods of telephone and mailshot,” Martin Mulligan, the Managing Director, said. “Adam put an e-commerce system in place and the effects were immediate and astounding, both here and abroad. We received an American order for about £ 70,000 ($105,000) to supply barcode tage in several major airports and now we expect to make more than $ 1 million from the Internet ordering system that Adam was solely responsible for, ” he said. Mulligan offered Hughes the post of head of marketing in the USA, but the 17-year-old who is studying for his A-levels (university entrance examinations) declined, saying he intended to pursue a course in architecture at Liverpool University instead. “I only went to the company for a fortnight under the school’s work placement scheme. I am flattered by the job offer, but I am still set on studying architecture,” said Hughes, who received an award from his school for his innovation. “But who knows, after my education I could end up working in the States for the company, he added.
— DPA Australians living
on borrowed money SYDNEY: Australia’s private household debts grew 18 per cent over 2000 with the nation’s 19 million people owing a whopping 17 billion Australian dollar (9.1 billion US dollar) on their credit cards. The average adult owes $ 5,435 to credit card issuers, figures released on Friday showed. The indebtedness doesn’t include money owed on Amex or other charge cards. “Personal debt is out of control in Australia. We need to say as a community that enough is enough when it comes to credit,’’ New South Wales Minister for Fair Trading John Watkins said in the run-up to the peak shopping season. “Some debt merchants are making offers of further credit to people who are already in financial strife,’’ Watkins promised to introduce legislation banning lenders from posting out so-called “pre-approved’’ credit cards or from urging existing customers to lift their credit limits.
— DPA |
bb
PSB calendar Price index Apollo Hospital Reliance Ind FICCI |
 |
| 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 | |
