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| Sunday,
January 14, 2001, Chandigarh, India    |
Skepticism over IT investments in Punjab
National grid soon: govt
In the wonderland of investment Oceanic Consultants
launches Web site |
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William Hewlett
dies Botswana looks
for firms IT group meet
on Jan 15
Duty to pay
rent
Chinese goods have the
consumer smiling |
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Skepticism over IT investments in Punjab CHANDIGARH, Jan 13 — IT is the buzz-word today. The Prime Minister has announced the setting up of a National Mission for Technology and assured government support to a group of US-based Indians setting up a couple of Global Institutes of Science and Technology in the country. The Ministry of Human Resource Development has proposed additional 46,000 seats in various educational institutions across the country to afford opportunities to students to pursue courses in software technology. Consequently, every state is vying to attract IT investments by offering sops — cheap land, assured power, telecommunication and golf courses, 5-star hotels, clubs and resorts. Punjab too is in the race for attracting IT investments. It has selected Mohali as “IT Destination”. The Department of Industries and Commerce is “marketing” it as a counter-magnet to other IT centres like Indore, Bangalore, Chennai, Navi Mumbai, Gurgaon etc. The competition is tough with neighbouring Haryana “selling” Panchkula. Punjab is lagging behind simply because it has failed to set-up a single nodal agency to take promptly decisions related to servicing IT entrepreneurs. There are as many agencies involved in spoiling the broth as are problems faced by IT investors. Besides, IT enterpreneurs, even the Mohali Industries Association has repeatedly drawn attention to such problems but to no avail. Punjab, sources say, must set-up an agency for Mohali itself for coordinated and integrated development since it is projected as “electronic township of Punjab” — Eltop. Why not have a Greater Mohali Agency on the pattern of Noida? suggests Mohali industrialists. Besides the Project Approval Board (PAB), there is PUDA, the Punjab State Electronic Development and Production Corporation (ECP), the PSIDC, the PSIEC, the Punjab Financial Corporation (PFC) etc. These are all perceived as stumbling blocks on the IT highway. The PAB, for instance, proposed on October 16, 2000, setting-up a high-level committee with the Chief Secretary as its Chairman to improve the infrastructure in Mohali and inter alia to consider the measures that need to be taken to privatise the production of power supply in Mohali. It is close to three months now and that committee is still to be constituted. A government nod is awaited. The irony is despite several trips abroad, reports submitted thereafter, presentations made to Parkash Singh Badal, several rounds of dinner meetings and discussions among all players concerned with IT investment and infrastructure improvement, Mohali still begs for attention. Meanwhile IT companies scout elsewhere for setting up their shops. Since 1977, when ECP was given 290 acres in Mohali, barely 80-odd units survive today. A majority of these are likely to close down. Some known IT names have already packed up, while, Punjab’s bureaucracy continues to re-cycle old policies and broken promises that lead entrepreneurs nowhere. It is politico-bureaucratic penumbra in Punjab. There, however, is a forlorn ray of hope now with some household IT forms agreeing to root back and open offices. These are Infosys, Inter Active, HCL, Perot Systems, vCustomer, Spryance, NYX software, Lucent Tech etc. But social infrastructure proposals are in a freeze. ECP Managing Director, Gurnihal Singh Pirzada, gives credit to ECP for the initiative taken in reviving the interest of such IT giants. Mr Pirzada has reported to the Chief Secretary, on the employment potential expected to be exploited by some of these companies. This employment opportunity, is for non-engineering graduates and 10+2 pass youths. If all goes well, the IT industry will absorb up to 12,000 youths in the next six months to one year. But for all that to happen the state’s educational institutions have to be revamped and infrastructure in Mohali developed. Capital investment alone is not enough. For the IT industry executives rest and recreation facilities—social infrastructure—is also a desired requisite. There are several things the state can do of its own. In respect of some others, the Centre has to intervene, say for an international airport at Chandigarh or running of an additional evening Shatabdi train between Chandigarh and New Delhi. Mr Ramesh Inder Singh Secretary, Industries and Commerce, said, “There is a lack of coordination amongst the various state government bodies that are responsible for the promotion of infrastructure development in Mohali. The development of infrastructure in Mohali is one of dismay. The skepticism over IT investments is yielding to cynicism against the government over the manner industrial matters are handled. At the very first meeting of the Council of Ministers on January 3, the approval was accorded to a “progressive, liberal and open policy” for ‘free’ right of way to
licences of telecommunication and Internet service providers, allowing them to lay optic fibre cables with a string of incentives and concessions. The field feed-back tells a different story. The
licences laying broad-based optical fibre net-work are facing hardship and delays in getting approval despite what the Council has approved and what June 2000 notification contains. The obstacles remain. What message is Punjab sending to IT entrepreneurs while its own housekeeping is poor?
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National grid soon: govt MUMBAI, Jan 13 (PTI) — The Centre will soon set up a national grid with Powergrid Corporation of India (PGCIL) as its notified transmission utility, Union Minister for Power Suresh Prabhu said here today. ‘‘The exact amount of investment is yet to be finalised but it could run up to some Rs 80,000 crore. We plan to raise the money through diversification, joint ventures and floating bonds in domestic and international market’’, Prabhu said in his key-note address at a function organised by PGCIL. The Power Ministry was in talks with three international companies to participate in the jv with PGCIL. PGCIL Chairman and Managing Director R.P. Singh said the company has already got a credit of $ 250 million from the Asian Development Bank and Rs 120 million as additional commercial loans from financial institutions. The national grid would make it possible to set up power stations as per the availability of the fuel feedstock in the particular region and also chalk out an efficient plan for distribution of power to other states, Prabhu said. ‘‘Our country has ample natural resources like coal in plenty in the Eastern India. Hence in that region we will give preference to coal-based generating units’’, he explained. The Centre will also launch a compulsory metering programme from March 31 for setting up untampered meters for the consumers, to be achieved till 2004, Prabhu said adding that energy audit would also be made mandatory. He said the transmission and distribution losses of every state electricity board was a matter of grave concern and the coming electricity bill has made thefts and pilferage of power a cognizable offence. In order to improve T&D losses, the government has also chalked out a massive Rs 40,000 crore investment as a part of reforms in the power sector over a span of three years. ‘‘To begin with, we will allot Rs 2,000 crore under the accelerated power development programme (APDP) to all states on an annual basis, half of which has been sanctioned by the Cabinet and rest will be leveraged by loans from Power Finance Corporation or other financial institutions’’, he said. Moreover, the Centre will also release Rs 9,000 crore in three years allocation under the 10th and 11th plan schedule. The investment will also include improvement of plant load factors of the existing electricity boards, 100 per cent metering, energy audits, separation of T&D and generation of the state electricity boards and keep a separate maintenance of accounts.
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In the wonderland of investment Q: Demat very nice and informative. I am an NRI, holding some share (obtained through NRI quota — Public Issue (Primary Market) in joint names of my mother, father and wife, who are/were resident Indians and that was already mentioned in my shares applications. Please note that I am the sole applicant for all shares. Please advise if their consent/ signatures are required for deleting their names, as I am sole applicant of all shares. Separate demat accounts are to be opened for each company and/or each individual if he is a joint applicant/ holder. As in accordance with new rules and regulations, it deems necessary to open demat account with any DP, I would like you to advise me the procedure to get their names deleted and also the procedure to nominate their names as nominees to the shares instead of joint holders. Also advise if Demat account is opened before getting their names deleted or after opening Demat account with any DP. Kindly advise me a reliable DP to open Demat account with him and also broker for sale and buy transaction. Also, do you have a website of your own?
— Abdul Rafeq Khatib A: I consider appreciating readers like you to be my greatest reward. Thanks a lot. I am afraid, there are quite a number of ambiguities in your data. You say, “I am the sole applicant for all shares” and yet there are joint holders. Then again, “Separate demat accounts are to be opened for each company and/or each individual if he is a joint applicant/holder”. Moreover... Well, I don’t quite understand. I shall answer according to my conception and if I am wrong, you will have to excuse me. Please do not hesitate to revert. 1. The process of deletion is simple. This would be considered as a sale by all the joint holders (including you) to you. All that you have to do is to sign the standard transfer from wherein the joint holders (including you) will sign as seller and you will sign as buyer. 2. I do not much approve of single holding, in spite of the nomination facility which has been made available to shares recently. It appears that your wife is with you abroad and no more a resident because of the words, “my mother, father and/wife, who are/were Resident Indians”. If that be the case, you should transfer your current holdings into joint with you and your wife. Incidentally, what about your children? 3. Separate demat accounts are not necessary for each company but for each combination and permutation of the joint names. For instance, if you have Telco and
TISCO held by you, mother and father, only one demat account suffices. However, if you have some Telcos in the name of you, mother and father and some more in the name of you, father and mother, you will require 2 DP accounts. 4. Whatever gave you the idea that “in accordance with new rules and regulations, it deems necessary to open demat account with any DP?” There is no compulsion, unless you propose to sell. Even in that case, SEBI has kindly provided an exit rout but some brokers (=sharks) are taking undue advantage by charging a heavy discount on the traded price by treating these as nonmarketable lot. Strangely, SEBI has not taken any corrective action and is unlikely to take one. Bad! 5. You have asked me to recommend a DP to you. This is quite dangerous for me. I shall earn a few friends but many enemies. Nevertheless, since my loyalty is towards my readers, I recommend 3 DPs — 1. SHCIL 2. HDFC Bank and ICICI Bank. And finally, I am of the considered opinion that technocrats like you will do well to pocket the benefits of the equities by investing in equity-based schemes of UTI/ MFs rather than directly. Investment in equities require a continuous monitoring and an online contact which you cannot afford. Q: I and my family members have about Rs 50 lakh in PPF. I want to know from which date the interest rate was reduced in PPF. I find that the SBI has applied the rate of 11 per cent from 1.1.2000. Is it right? Please let me know expeditiously since a large amount is at stake. — R. Sharad Kumar A: This is the best example of bureaucratic lethargy and indiscretion. The authors of legislation are not is contact of the ground realities and have chosen 14.1.2000 as the date of implementation of the unilateral diktat. They should have chosen the end of the Jan or Feb to avoid any confusion. No one, not even the SBI, leave alone the National Savings Organisation issued a circular explaining the modus operandi to handle the rare situation. This has created a chaos and all the account officers are interpreting the diktat as per their own whims and fancies. Can you believe that one of the office asked my advice after finding that repeated requests to their head office did not elicit any opinion? Q: (1) I have equity shares (long term) of companies which are either closed or sick under BIFR. I do not receive any communication from them. Now what documents do I need to submit to ITO along with my income tax return to set off this losses against my long term gain in sale of other assets? (2) An Indian company was taken over by a multinational. As per SEBI guidelines this multinational company gave an open offer for purchase to other share holders. Subsequently the company share was desisted from the stock exchange. This offer was missed by me. Now my repeated request to the company for repurchase is met with a stony silence. What option do I have? — A. Bandyopadhyay A: 1. You can claim the loss if and only if and only if you can prove to the Department that you have made all the attempts (e.g., filing a suit against them) and have failed. I know this is rather difficult for a small investor like you and hope that the authorities will provide some solution. Until them, the best you can do is to prey. 2. Please draw the attention of SEBI to this case and start preying. Q: As I am a management student, I have been given a credit card by Citibank. Does this compel me to file my returns? — Shail A: Holding of a credit card not being a add-on card is one of the one-by-six criteria and therefore you have to file returns even if you do not have taxable income.
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Oceanic Consultants
launches Web site CHANDIGARH, Jan 13 — Leading to major savings in costs and time for students wishing to pursue higher studies in Australia, the local Oceanic Consultants has launched a website for home counselling and studying even distant applications for courses of their choice. The OceanicConsultants.com will have forms accessible on computers which can be filled directly for the agency to chase at the higher levels. 'Immigration laws change very frequently in Australia,' said Mr Naresh Gulati, local representative, in a press conference here today. Students can be saving nearly Rs 20,000 in the process. Frequent visits to the agency can be avoided, particularly for people who come from distant places. " We have cases who came in from as far as Calcutta, Nagpur besides distant towns of Punjab. Mr Gulati said that the next offices of the agency will be opening up at Amritsar and Delhi shortly. Mr Gulati said that it was a wrong impression that the Independent Development Programme ( IDP) was only the right way to go to Australia " We cater to studentship at the RMIT and Holmesglen Institute of Technical And Further Education, both at Melbourne and Regency Institute of Technical And Further Education, Adelaide only.' The IED was a bigger group conglomerate of the institutions. It was sometimes felt that smaller organisatons like Oceanic did far better in catering of exact information to students. We do not charge a single penny from students. We agree to IEDs legitimacy but there were other ways open through agencies also. The concerned institution pays us the money", Mr Gulati said. Mr Gulati said that besides students, there were number of applicants for immigration. The website provided them the exact information about eligibility and whether they were eligible. This saved them inconvenience, he added. |
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William Hewlett
dies SAN FRANCISCO, Jan 13 (Reuters) — Hewlett-Packard Co. co-founder William Hewlett, who helped launch a technology revolution out of a Silicon Valley garage, died on Friday morning in his sleep, the company said. Hewlett, 87, and David Packard, who died in 1996, founded their company in 1939. One of their first sales of electronic equipment was to Walt Disney Studios, which used it to perfect the soundtrack of the animated movie "Fantasia", an HP statement said. The pioneers built a company known for technological innovations, such as the first pocket calculator, and became examples for their dedication to employees and philanthropy. Begun in a one-car garage with $538, Hewlett-Packard is now a computer and printer powerhouse with nearly $50 billion in annual sales. It also spun off Agilent Technologies Inc., an $11 billion testing equipment firm. The company started in the shadow of the Depression, leading the young businessmen, Hewlett and Packard, to be careful with their money but generous with their employees, embracing a management style that has become known as the "HP Way." "When I was born...there was no money, so we said: We don't want to borrow money. People who'd borrowed money had gotten into trouble," Hewlett said in a 1997 interview on the Web site of The Tech Museum of Innovation in San Jose, where he was a major donor. |
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Botswana looks
for firms NEW DELHI, Jan 13 (PTI) — Rough diamond and mineral rich Botswana is scouting for Indian companies to set up production base in areas like pharmaceuticals and mineral exploration. Botswana is mineral rich with rough diamonds accounting for 80 per cent of its foreign exchange earnings and almost 60 per cent of gross domestic product (GDP). “We will offer assistance for Indian companies that are willing to help us with technical and management expertise,” Minister of Minerals and Energy B. Mokgothu told PTI here. Elaborating on steps involved in mineral exploration, he said the first step was to apply for prospecting licence. After having completed identification of resources and the potential, one has to apply for exploration licence, he said. |
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IT group meet
on Jan 15 NEW DELHI, Jan 13 — The second meeting of the national advisory on information technology will held in the Capital on Monday to discuss collaboration between government and industry streamlining the action plan of taking “IT to the masses”. The working group on IT in its report had perceived IT an empowerment tool addressing problems in various fields and has set an ambitious target of 100 million Internet connection by 2008 and one million IT kiosks and cyber cafes in the country. The objectives would be to draw up action plan for raising the hardware export to the target of $10 billion by 2008. Those expected to attend the meeting include Infosys Chairman, Mr Narayanan Murthy, Wipro Chairman, Mr Azim Premji, Satyam Computers Chairman, Mr B Ramalinga Raju, and Nasscom President, Mr Dewang Mehta. |
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Duty to pay rent Q: Whether tenant’s plea of ignorance as to whom the rent was payable after the death of landlord was valid? A: In M/s Bhagwan Dass Yash Pal v Wasu Ram (2000 (2) RCJ 268) the Delhi HC took the view thus: The submission of the tenant was that there was a dispute between the legal representatives of deceased Bhagwan Dass (one of the landlords) and Respondent No. 1, the other landlord. It was, therefore, submitted that he had been told by the widow of Bhagwan Dass not to pay the rent to Respondent No. 1. It is for this reason that she did not join in the eviction petition. She also testified before the lower court that she had requested the appellant not to pay rent to Respondent No. 1. It was further submitted that the notice of demand dated 1-9-77 was invalid because quite clearly the advocate issuing that notice did not have any instructions from the legal representatives of deceased Bhagwan Dass. In this context, it was submitted that the eviction petition was filed only on behalf of Respondent No. 1 and not on behalf of the legal representative of deceased Bhagwan Dass. The HC was not impressed with the aforesaid submission. The question whether there was or there was not any dispute between the landlords of the suit premises is of no consequence to the appellant. It was his duty to pay the rent and if he did not know to whom to pay rent, he could very well have deposited the same in court as provided in S.27 of the Delhi Rent Control Act. The appellant failed to do this. He cannot be allowed to hid behind the lame excuse of not knowing to whom to pay the rent. Thus, having rejected the above contention, the HC dismissed the present appeal. |
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Chinese goods have the consumer
smiling THE Indian industry may cry foul over Chinese ‘invasion’, but consumers certainly not complaining. In fact even as the industry’s China-mania reaches a high pitch, the consumers’ love affair with imports from China is getting stronger. While the industry is calling for protection from the dragon, consumers are clamouring for more such ‘affordable’ imports and are hoping that the competition would force the Indian industry to deliver quality goods at lower prices. Given this scenario, it was but natural that this was one of the topics that dominated the Union Finance Minister, Mr Yashwant Sinha’s meeting with consumer activists on January 8. As part of his pre-Budget consultations in connection with the Union Budget, the Finance Minister meets various interest groups, including representatives of trade and industry, trade unions, farmers and consumer groups. Mr Yashwant Sinha initiated the discussion on the issue of imports when he said in his introductory remarks that he considered this year’s interaction with consumer activists to be very important because he was keen to hear their views on two highly debated current issues: while one was the proposed law on competition to replace the Monopolies and Restrictive Trade Practices Act, the other was the concern being expressed by the industry over consumer goods imports and the consequences of lifting all quantitative restrictions by April this year. The majority view of those present at the meeting was that consumers welcomed these imports because they meant availability of quality goods at lower prices. The Finance Minister should, therefore, keep the interests of consumers while responding to the domestic industry’s cry that the imports were inimical to their survival. It was one thing to ensure a level playing field for the domestic industry and another to come up with protectionist measures that would stifle competition and improvement in quality. However, the government should ensure that the imports were in accordance with all relevant Indian laws, particularly on quality, safety and warranty, besides label information. And the Finance Ministry should also allocate funds for state-of-the art testing facilities to ensure the safety of these products, particularly food. The consumer groups also emphasised that with the abolition of Quantitative restrictions, the domestic consumer goods industry may well press for initiating anti-dumping measures against imports of cheaper consumer goods. Besides the interest of the domestic industry, consumer interest should also be kept in mind while contemplating any such measure and consumer organisation should be consulted in all such moves. While welcoming a law that would ensure competition in the market and prevent abuse of dominance, consumer groups said they would, however, like the proposal law to have stronger provisions for effective implementation of the law. It was also felt that unfair trade practices too should come under the purview of the proposed law. The high-level committee on competition policy and law constituted by the government had recommended that the MRTP Commission should be winding up and a new competition commission be set up in its place. Some of the other suggestion that came up included the creation of an independent national consumer safety commission for ensuring consumer safety in respect of food, water, drugs, consumer products as well as safety in public places, better investor protection measures, including compulsory investment insurance cover for non-banking financial companies, plantation companies and others, a separate fund for educating rural consumers about their rights; revamping of Food Corporation of India and the public distribution system and budgetary allocation for consumer courts. The marking of “maximum retail price” on packages also came in for criticism. Saying that it had become an instrument for fleecing consumers, consumer representatives demanded that packages also mention the first point prices, as suggested by an expert committee constituted by the Ministry of Consumer Affairs. The groups also sought a redress mechanism against corruption in government departments and public utilities. Will some or any of these suggestions find a place or get reflected in the Union Budget? Consumer groups are not very optimistic and say that their suggestions never get the kind of attention that they deserve. But then, Indian consumers are no match for other powerful interest groups that meet the Finance Minister during this time and are also well versed in the art of lobbying for their cause. Besides, the consumer movement in the country is still very young and the consumer groups are yet to flex their muscles and show their strength. As the Finance Minister remarked, consumers form the largest group, yet they are the most exploited because they are not organised enough to protect their interests. “We still have a long way to go in protecting the interests of the consumer”, he said. One is inclined to agree with him on the first point, yet hope that his second observation that they need protection will get adequately reflected in the policy initiatives that he will announce in the Budget this year. |
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