Monday, January 29, 2001,
Chandigarh, India







THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

‘Risky site’ for Punjab atomic plant
I
T has been almost decided to locate Punjab’s atomic power plant of 1000 MW capacity at Daroli, 5 km from Patran, and for this some 2,500 acres of land will be acquired. As with all “developmental projects”, the rehabilitation and resettlement of the population likely to be displaced will be one of the major problems.

Electroplating units pollute Ludhiana
LUDHIANA, January 28 — More than 1,000 electroplating units which are an integral part of Ludhiana’s cycle and auto parts industry have been declared as the most polluting units in the city by the Pollution Control Board. In developed countries such as the USA and Japan, electroplating has been already banned.

IT firms eye new markets in Europe
New delhi, January 28 — Stung by a slowdown in the U.S. economy, a slew of Indian information technology companies are changing strategies and exploring new markets for exports to insulate themselves against a possible drop in demand from U.S. clients.

Maruti Udyog plans golden handshake
NEW DELHI, January 28 — Barely a fortnight after resolving the three-month labour unrest, Maruti Udyog is believed to be preparing a “golden handshake” scheme to trim the workforce and enhance profitability. 

Reliance team in Bhuj
JAMNAGAR, January 28 — A 150-member team of the Reliance group today reached Bhuj and Kutch to assist rescue workers with heavy equipment and skills required for removing the thousands buried under the debris.




EARLIER STORIES

 
OFFBEAT

Targeting beauty contests
NEW DELHI: Ever since Indian women began winning the Miss World title, a fantasy has crept into the minds of young women living in small town India. It is of working on their looks, diction and grooming, winning the local beauty title and launching themselves into a glamorous career in modelling or films. Now, beauty contests have proliferated all over India.

MARKET SCAN

Keep a watch on Reliance, L&T, Moser Baer
T
HE stock market has been steadily moving up, and, but for the terrible Gujarat earthquake, this movement had the momentum to keep up its upward march. By mid-week, the market would regain its buoyancy.

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‘Risky site’ for Punjab atomic plant
by G. S. Dhillon

IT has been almost decided to locate Punjab’s atomic power plant of 1000 MW capacity at Daroli, 5 km from Patran, and for this some 2,500 acres of land will be acquired. As with all “developmental projects”, the rehabilitation and resettlement of the population likely to be displaced will be one of the major problems.

An atomic plant located not far off from the Pakistan border will present major security problems as the likely fallout in case of any accident (or sabotage) will affect nearly the whole of Punjab.

During the 1970s when a similar problem was being examined, the members of the site selection committee had a chance to discuss the problem with Dr KL Rao, the then minister in charge. He observed that location of an atomic power plant deep inside Punjab would be more “risky” as compared to one located right on its western border, on the banks of the Ravi river because in that case the western neighbour would not like any “accident” to happen to the atomic power plant, as the fallout on the both sides of the border would be equally catastrophic.

For a thermal plant of the similar size (1000 MW) the amount of ‘cooling water’ would be not less than 500 cusecs. As per its location, the Daroli Atomic Power Plant (APP) will have to depend on the supply form the existing canal system. Such large withdrawals will affect the agricultural irrigation. The ground-water in the region is not fit for irrigation and farmers depend entirely on the canal waters.

Can such a quantum of water really be spared for the project by the irrigation authorities?

Secondly, the water flowing out will be at a higher temperature and may carry some radioactivity. The effects of these factors will have to be considered and provided for.

The major requirement of an atomic plant structure is that its foundation soil or strata should be capable of carrying loads without any adverse settlement and also be safe against likely earthquakes whose intensity may be more than those having visited the area earlier. For this foundations based on rock rank at number one and those on gravel-boulder strata come next. The alluvial foundations are likely to be most “risky”.

At Daroli, the foundation strata is deep alluvium of fine grained soil, which when submerged due to rise of the water-table would get its bearing capacity reduced by 50 per cent and settlements greatly increased.

For such soils the pile foundations, which depend on ‘friction’ effect between sandy soil and piles, get their capability seriously reduced when the foundation carries the machines imparting vibrations. In case of the foundations of the GN Thermal Plant of Bathinda, costly retro-additions had to be carried out when Prof Shamsher Prakash, President of the Indian Geotechnical Society, drew attention to the above factor in his ‘presidential address’ delivered in 1973 at Kurukshetra.

So at Daroli, the piles would be of little use. Very costly foundations would have to be provided, which would not only add to the cost but will also increase the gestation period.

The area is located in the high seismic-risk area and not far-off from the active Kasuli Thrust and quite close to the Kangra earthquake zone. Considering this factor, the engineering geologists now-a-days recommend the building of ‘flexible dams’ e.g. earth-dams (the Bhakra Dam being an exception to this rule). In deep alluvium soils the effect of earthquake gets modified and the foundations have to be extra-strong. But would it be wise to locate an atomic plant on such soils without conducting any bearing tests deploying vibrating equipment?
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Electroplating units pollute Ludhiana
by Manoj Kumar
Tribune News Service

LUDHIANA, January 28 — More than 1,000 electroplating units which are an integral part of Ludhiana’s cycle and auto parts industry have been declared as the most polluting units in the city by the Pollution Control Board. In developed countries such as the USA and Japan, electroplating has been already banned.

Most of the electroplating units fall under tiny and small category. They do electroplating for brightness and to enhance the life of products. Electroplating is mostly done on spare parts of cycles, auto and other engineering items. About 10,000 workers are directly engaged in this industry. The growth of industry has been quite haphazard and correlated with the development of cycle and other manufacturing units.

Mr Joginder Kumar, President, Ludhiana Electroplaters Association, said: “A few units came up in the early fifties and an industrial estate was set up. Later on a number of units came up in the residential areas also. Currently, these units are concentrated on the eastern part of the Dhuri railway line. Majority of the units are following the guidelines for management of waste and pollution control. However, no one has come forward to provide suitable methods keeping in view our specific needs and financial constraints.”

The electroplating units deposit dangerous particles such as nickel, chrome salt and chemicals like hydrochloric and sulphuric acid in the sewerage system without any treatment. It has consequently polluted the groundwater.

Secondly, fumes coming out of heated chemicals have a dangerous effect on the health of workers and the people residing in the surrounding area. Sources alleged that some units had made bores in their premises and were directly pumping chemicals into the groundwater. However, the Pollution Control Department because of limited powers and scarce manpower resources is not in a position to check these violations.

Mr Joginder Kumar denies all these allegations. He said, “Since early nineties we have made a lot of efforts at the association and individual levels. Most of the units are following house-keeping method. It controls about 80 per cent of water pollution and helps reuse of collected nickel and different acids. The waste management and clean production methods recently introduced by some units have further reduced the pollution levels. The use of mist-free chemicals also reduces the fumes.”

The industry representatives admitted that electroplating was a red industry as far as pollution was concerned. It was beyond their range to ensure full control of effluents without establishment of a common affluent treatment plant. They have urged the State government to assist them.

The Industry Department and the Punjab State Industry and Export Corporation (PSIEC) recently called a meeting of the major industrial associations to shift the polluting industries out of the city. But the industry representatives outrightly rejected the offer to shift to the proposed Lodhowal industrial city as the area was flood-prone and the level of ground watertable was very low.

The industry has asked the government to declare the eastern belt of the Dhuri line as an industrial estate where 80 per cent of the units were concentrated. The treatment plant can be established here. Benefits of Central Government schemes, UNIDO/UNIDP and SIDBI can be taken to develop the clusters. Other units should be provided land at Kanganwal or in the Sahnewal- Dehlon belt. 
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IT firms eye new markets in Europe
by Sumeet Chatterjee

New delhi, January 28 — Stung by a slowdown in the U.S. economy, a slew of Indian information technology (IT) companies are changing strategies and exploring new markets for exports to insulate themselves against a possible drop in demand from U.S. clients.

“Though the U.S. will remain a dominant market for software exporting companies, in the short to medium term export growth will mainly come from emerging markets such as Japan, Germany, Australia and Britain,” Amul Gogna, executive director of ICRA, said.

The U.S. accounts for about 60 per cent of India’s software services exports.

Some of the biggest clients of Indian software majors in U.S.A include Boeing Co., Cisco Systems, Nortel Networks, General Electric, Lucent Technologies and RSA Security.

“The companies will have to explore new markets to ensure that their profit margins are not affected in case there is a demand slump in the U.S.A,” Gogna told IANS.

And the process has already started. India’s biggest software developer by market value, Wipro Ltd., last week opened a software development centre in Britain to service clients in the European region. The Bangalore-based firm said the centre would initially employ 50 software professionals.

Wipro had earlier announced the opening of an office in France to boost business from Europe that accounted for 28 per cent of its total revenue in the nine months ended December 31, 2000. Sixty-four percent of the company’s total revenue came from North America in the same period.

“At present, the market is quite skewed to U.S.A. We are going in other markets to expand our export base,” an official spokesperson of Wipro said.

J. A. Chowdhary, President of the Hyderabad Software Exporters Association (HYSEA), said the slowdown might reduce the profit margins of companies purely depending on “on-site consulting” model.

“As many Indian IT companies are now exploring other markets such as Europe and Southeast Asia there might be an increase in percentage of market share from these countries which may accordingly change the percentage of business coming from U.S.A,” he said.

According to the World IT Services Association, global IT service spending is expected to become $476 billion by the year 2001. “Around 25 per cent of this is expected to be outsourced and India’s share is expected to be around 6.5 per cent,” it said.

Satyam Computer Services Ltd. is also looking at expanding its market in Europe, Japan and the Asia Pacific region.

“We have reached a certain stage of infrastructure in the U.S.A and now looking to expand ourselves in other countries also,” S.V.L. Narayan, Manager (corporate communications) of Satyam Computer, said.  — IANS
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Maruti Udyog plans golden handshake

NEW DELHI, January 28 — Barely a fortnight after resolving the three-month labour unrest, Maruti Udyog is believed to be preparing a “golden handshake” scheme to trim the workforce and enhance profitability.

A preliminary voluntary retirement scheme has been prepared for both the shop floor (factory) and office workers, company officials told PTI on condition of anonymity.

The proposal for trimming the workforce assumes importance in the wake of Maruti making losses so far during the current financial year.

The company management had earlier cited difficult financial conditions, as a major reason to block an incentive scheme, which resulted in an over three month long strike by the employees union.

“However, the proposed scheme is yet to be placed before the Board of Directors. A clear picture will emerge only after it is considered by the Board”, they said.

Maruti Managing Director Jagdish Khattar declined to comment and said “there is no such scheme which has been offered to our employees”.

The sources said the draft proposal for voluntary retirement is likely to be made open to employees above the age of 40 years in the company which has over 5,500 workers, including about 4,500 in the shopfloor. The average age of workers in Maruti is 36 years at present. — PTI
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Reliance team in Bhuj

JAMNAGAR, January 28 — A 150-member team of the Reliance group today reached Bhuj and Kutch to assist rescue workers with heavy equipment and skills required for removing the thousands buried under the debris.

Reliance official Parimalbhai Nathwani said that skilled personnel will spearhead the rescue operations at Bhuj with seven cranes of 30 tonne capacity each, 10 hydra cranes of eight tonne capacity each, 10 trailcrs, 16 trucks, half-dozen tempo-vehicles, four diesel generator sets, 13 gas cutting machines, five ladders and air-compressors.

The Reliance team is coordinating with the state government. The team includes doctors and nursing staff, riggers, electricians, mechanics and securitymen. Reliance has also received the support of its associate contractors like Dodsal, TIL and Escorts.

Reliance has also geared up relief operations in Jamnagar and Ahmedabad in close co-ordination with the local administration. — UNI
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OFFBEAT

Targeting beauty contests
by Amrit Dhillon

NEW DELHI: Ever since Indian women began winning the Miss World title, a fantasy has crept into the minds of young women living in small town India. It is of working on their looks, diction and grooming, winning the local beauty title and launching themselves into a glamorous career in modelling or films. Now, beauty contests have proliferated all over India.

Yet there was a time, not so long ago, when middle and upper middle class parents would rather their daughters entered a nunnery than to compete. Beauty contests, along with modelling and dancing, were all abhorred as indecent, the kind of thing that bad girls did, not good girls from good families. Parading in front of an audience in a swimming costume, was considered a monstrous proposition. India is, after all, a country where many people believe sleeveless tops are outre.

But India is full of contradictions - women in villages being lynched for marrying the man of their choice co-existing with sexually explicit ads for condoms. The transformation in attitudes towards beauty contests has alarmed India’s Hindu extremists, who want to preserve traditional customs. They have attacked beauty contests, not from the feminist perspective, but from a hankering for the past when the ‘ideal’ woman stayed inside the house.

Uttar Pradesh has banned beauty contests as being ‘against Indian culture’. The new Miss World, Priyanka Chopra, arrived in her home town of Bareilly in Uttar Pradesh recently expecting a victory parade through the streets. Instead, the police had to ban the parade for security reasons as Hindu extremists were threatening to disrupt it.

Extremists in Calcutta are also trying to get beauty contests banned. They disrupted a recent event, shouting slogans and burning effigies. Some extremists believe a ‘foreign hand’ is involved in Indian women winning a string of Miss World titles. That western beauty products companies are engineering these victories with a view to capturing the Indian market.

But it is not just beauty contests that are making Hindu fundamentalists fume. They are also hostile towards other manifestations of western culture, such as Valentine’s Day. During last year’s Valentine’s Day in the city of Kanpur (again in Uttar Pradesh), Hindu fanatics went on the rampage. Driving around on scooters, they stormed into restaurants, card shops, florists and dance halls, beating up young men and women who appeared to be celebrating the occasion, creating panic and spreading terror.

As part of this culture purge, they also intend to eliminate jeans, mini skirts and other revealing clothes by attacking shops selling such items. Dating too is deemed to be an objectionable activity. ‘A girl these days enjoys flirting with many boys instead of going steady with one’, said Shamsher Singh Chauhan, an activist in Kanpur to a leading news magazine. ‘This leads to unhealthy rivalry and competition amongst the boys.’ Honeymoons are also attacked by the fundamentalists, along with foreign television programmes and the celebration of birthdays.

Opponents of the Hindu fundamentalists are scornful about their fears, asking how a 2,000 year old civilisation could be destroyed by one hour beauty contests or foreign television programmes. Another question they ask is why these extremists never protest equally vociferously about the social evils that afflict and demean Indian women, such as demands for dowry or the treatment of widows.

Several individuals have filed legal petitions against the banning of beauty contests. If the courts decide in favour of free choice, it will be a setback for fundamentalists. In any case, they have an uphill struggle keeping away western influences because of the popularity of satellite television.

Even more significantly, India is steadily continuing to open up its markets to the outside world, making it harder for those who want to enforce insularity. What young Indians are interested in is being connected to the rest of the world and moving forward, not with preserving the relics or values of a bygone age. — By arrangement with The Observer
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MARKET SCAN

Keep a watch on Reliance, L&T, Moser Baer
by J. C. Anand

THE stock market has been steadily moving up, and, but for the terrible Gujarat earthquake, this movement had the momentum to keep up its upward march. By mid-week, the market would regain its buoyancy.

Now that a very large number of companies have declared their 3rd quarter results, it is possible to identify such sectors of industry that are doing well as also the sectors that are not doing well. This would also provide a clear indication of the broad contours of the annual results of the accounting year closing on March 31, 2001 or earlier.

The automobile sector is not doing well and no short and mid-term investments should be made in the companies in this sector. TELCO as well as Ashok Leyland are facing difficult conditions. Bajaj Auto has not only announced poor results but the company also is closing two plants for a few days in view of the market slump and bulging inventory. TVS Suzuki’s 9 months’ net profit is Rs 57.02 crore as against Rs 65.53 crores in the corresponding period last year.

Even the automobile auxiliaries are not doing well. Goetze (India) has reported poor 3rd quarter results (Rs 241 lakhs as against Rs 349 lakhs) but it has been able to draw equal for its 9 months results with those of the previous 9 month’s results. Jay Bharat Maruti’s net profit for the third quarter is just Rs 10.64 lakhs (as against Rs 119.50 lakhs). Lumax is in deep red. Escorts’s (now a tractor manufacturing company) has a net profit for the third quarter of only Rs 7.87 crore (as against Rs 57 crore).

The entertainment stock companies are doing well so far but their performance during the fourth quarter is not expected to be good largely due to Bharat Shah’s arrest and the panic it has created among the financiers of the Bollywood. Penta Media graphics has announced excellent results and the stock has recovered some part of its steep fall from Rs 380/- to Rs 234/- last week and is now quoting around Rs 260/- or so. It is likely to recover more ground during the next three weeks. It is a sound long-term investment but the investors will have to wait for quite some time for substantial appreciation.

The pharma sector has been doing only moderately well. Torrent and Wyeth have announced relatively poor results. Novartis has just repeated its last year’s pre-demerger pharma sector results.

The textile sector has so far announced better results. Gwalior Rayon, Century Enka, Century Textile, Indian Rayon and Raymond have declared good results. Some of these companies have, however, large cement plants too, but indications are that the textile sectors would maintain its profitability. Vardhman group companies as well as Nahar Spinning are doing moderately well.

The software and other information technology companies have reported excellent results and are expected to maintain their high growth rates (though in a slightly diminished form) even during the next financial year.

The speciality chemicals industry is also in difficulty. Clariants India, Vanavil Dyes, Basf India have reported moderately better results than in the previous year but Colour-Chem is in poor shape. Avoid investment in this sector till the present industrial recession ends.

The private banks are at present top favourites of traders as well as investors in view of the prospects of their merger in larger private sector or public sectors banks.

Shares to watch are: Reliance Industries, Larsen & Toubro, Sterlite Opt, Aksh Optifibre and Moser Baer.

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TAX & YOU

by R. N. Lakhotia

Q. My son is doing post-graduation in a Medical College & Hospital of Punjab. The government is paying him a stipend of Rs 8400 p.m. as also dearness allowance on stipend @ 38 per cent. Will he have to pay the income tax for 2000-2001? If yes, for which amount?

— Dr P.S. Sondhi, Patiala

Ans: On the facts stated by you and looking to the quantum of stipend as also the dearness allowance the relationship of employer and employee exists between your son & the medical college from where he is drawing the stipend. Hence the amount will be liable to income-tax subject to standard deduction. For best results please explore the agreement relating to stipend payment if the relationship of employer and employee cannot be established, then there may be possibility of saving tax thereon.

Q: I am a Punjab Government pensioner. The employees are entitled to free indoor medical treatment or they are reimbursed the charges paid by them. My annual pension is approx. Rs 1.50 lakh. I underwent bye-pass surgery in Escorts Hospital, New Delhi, and paid about Rs 2.70 lakh. I have, however, been reimbursed Rs 1,18,622/- by the Punjab Government.

Kindly advise as to whether the reimbursed amount for indoor treatment is taxable or not. If taxable, to what extent?

— M.S. Sandhu, Chandigarh

Ans: In one financial year the sum of Rs 15,000 if received from the employer by way of reimbursement of medical expenses, then it is not taxable as a perquisite. Besides, any further amount paid to the recognised hospital is also not a perquisite. In your case the amount has been paid to the recognised hospital and you have received that re-imbursement, the entire amount so received by you will be fully exempted from payment of tax.

Q: My wife is a government teacher and is the absolute owner of a 11 marla plot and also inherited a house built in 5½ marlas plot during July, 1999. Now she wants to sell the house for Rs 9,00,000 to help our son for the purchase of a shop & investment in business. Please guide whether the amount can be invested in the name of our son. If not which way to be adopted for the purchase of shop in the name of our son to avoid any income tax liability on the party of mother and son.

— Mohan Lal, Jalandhar

Ans: Before answering your questions regarding the investment of sale proceeds of house by your wife to enable you to utilise the money for investment in the name of your son for buying shop, please remember that in the first case your wife will be required to compute tax on long-term capital gains after taking into account the benefit of cost inflation index. The balance money you can give away to your son who in turn can purchase the shop, etc. in his own name for his business, etc.

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BIZ BRIEFS

Crafts mela
CHANDIGARH, January 28 (TNS) — Surajkund Crafts Mela will begin on February 1 unfolding the magic of vibrant folk traditions and crafts with a touch of Goa. To be inaugurated by Haryana Governor Babu Parmanand, the fortnight-long 15th Surajkund Crafts Mela promises to bring together a panorama of our cultural heritage and handicraft. Organised by the Surajkund Crafts Mela Authority it will showcase the finest in handlooms and handicrafts creations of the entire country.

IT vision
CHANDIGARH, January 28 (FOC) — The Himachal Pradesh Government has drawn “IT Vision-2010” and envisaged export of Rs 2000 crore from the information technology software and services by 2005 and employment to about 1 lakh persons in the next 10 years. Kishori Lal, state Industries Minister said here today that to exploit the industrial potential attractive incentives were being given for setting up of IT units in the state.

MF seller
NEW DELHI, January 28 — Despite bullish trend in the market, mutual funds have been net sellers in equities to the tune of Rs 572 crore in the new year so far as against net sales of Rs 694 crore for the entire January-December 2,000. According to SEBI estimates, mutual funds of the country bought equities amounting to Rs 1,363 crore. PTI

UGCE-IIET
CHANDIGARH, January 28 (TNS) — Insurance agents belonging to HP, Punjab and Chandigarh have completed their 21-day full time training on January 25 at UGCE-IIET. UGCE-IIET is the only institute in the region to have qualified the norms laid-down by Insurance Regulatory and Development Authority.

Home page
CHANDIGARH, January 28 (TNS) — www.chdMAIL.com an exclusive free e-mailing system launched by www.i2k2system.com, has been upgrades to provide online home pages free of cost.

TCI net up
CHANDIGARH, January 28 (TNS) — Transport Corporation of India has announced its results for the 3rd quarter ended December 31, 2000. The company's net profit shows an upward trend of 17 per cent from Rs 206 lakh to Rs 241 lakh the quarter.

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