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| Wednesday, February
28, 2001, Chandigarh, India   
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Politics to balance economics in today’s Budget
Industry tips for Haryana Budget
India to be largest wheat producer Fernandes for private defence production Coke, Pepsi battle over
'yeh dil mange more' Discriminated against for pregnancy |
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Hero Honda fixes March 26 for stock split
Freight hike to hit re-rolling steel units
Is it Bush Cabinet or a tycoons’ club ?
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Politics to balance economics in today’s Budget New Delhi, February 27 While the compulsions of revving up the economy — and tackling the economic impact of the killer quake which devastated Gujarat last month — may lead to a reformist Budget, politics will mute the impact, analysts say. With elections due in five states later this year, political parties are unlikely to extend much support to measures which are economically sound but could cost votes, they said. “We have made ourselves hostage to politics,” said Prem Shankar Jha, an independent political analyst. Sinha has had bitter experience with reformist budgets in the past, with recalcitrant allies and opposition parties forcing him to backtrack on measures announced in earlier budgets and earning him the sobriquet “Rollback Sinha”. And for all the government’s talk of reforms, the Railways Budget which was presented on Monday showed quite clearly that politics would be a key factor in shaping policy in the world’s largest democracy. In a policy statement which smacked heavily of populism, Railway Minister Mamta Bannerjee did not touch the heavily subsidised passenger fares, but hiked freight rates. Fierce opposition to the country’s first big-ticket privatisation since last week is another sign of the problems the government will face in pushing through reformist measures. Since the government announced its decision to sell a 51 percent stake in profit-making Bharat Aluminium Company Ltd, the government has come under fire both within and outside the coalition. Privatisation is seen as a key element in the government’s reforms programme as it will not only release some of the estimated 2.3 trillion rupees ($49.4 billion) locked up in public sector firms but also give confidence to foreign and private investors that the state is willing to relax control. Since it was first launched in 1991, the government has raised just over 40 percent of the cumulative privatisation target due to stiff opposition from organised labour which fears job losses and politicians wary of shedding control. Problems
clear, political will less so
With the economy, one of the world’s fastest growing over the past decade, headed for a second year of slower economic growth, Sinha urgently needs to take measures to reverse the trend. GDP is expected to grow by 6 per cent in 2000/01, down from 6.4 percent a year ago and well short of the 9 per cent annual average the
government says is needed over the next decade to halve poverty among its billion-plus population. With a global economic slowdown expected to impact India’s trade as well, the need for a growth-oriented budget becomes all the more imperative. But Sinha’s options are limited. Interest payments on government borrowings, subsidies and defence spending between them are expected to account for nearly half of every rupee the government receives this fiscal year. The federal fiscal deficit is targeted at 5.1 percent of GDP for 2000/01 but this figure goes into double figures if the losses of public sector firms and the deficits of state government are taken into account. “I don’t expect the fiscal deficit to be tackled as five state elections are due. I feel that would play on the government, so we can expect status quo on very harsh measures,” Jha said. And unless this deficit figure is reduced, there is little hope of international credit rating agencies upgrading India from its current junk bond status.
Reuters
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Industry tips for Haryana Budget Chandigarh, February 27 The Chamber has suggested that fixation of the sales tax should take in to account the excise duty rates as well as other state taxes in order to determine the appropriate tax rate on specific commodity. There also needs to be a more scientific basis for classification of commodities in appropriate tax slabs with the underlying intention to raise higher revenue by encouraging growth, it was suggested. In order to assure more development, the committee said that higher government expenditure for development as against non-development, and proper managing of debt should be there. There is a need to reduce level of debt so that interest payment be reduced to reasonable level in proportion to revenue
receipts. The committee also stated that the developmental expenditure on social welfare and infrastructure development should be increased to a level of 50 per cent and above out of the government expenditure and the expenditure on administration be reduced. For the monitoring of the expenditure, a multi-year plan needs to be adopted. Zero based analysis for each programme and comprehensive review of each programme, said the committee. In Haryana for improving the efficiency of the public expenditure, there is need to have better targeted beneficiary oriented programme and effective monitoring system. For improvements in the agricultural sector, it was suggested that the state should assist agriculture by building new capital assets in irrigation, power supply and rural infrastructure. Farmers can be compensated for any additions in the cost of the produce by reflecting the same in the minimum support price. Other suggestions given to the finance minister were: Public service such as medical services should be subjected to nominal registration charges. Borrowings by the state not be used to finance consumption expenditure. An action plan for closing down of the loss making manufacturing units be announced and if they cannot be closed by restructuring, the workers be offered voluntary retirement. The state should prevail upon the committee of state finance minister to compress the multiplicity of rates to two (i) for essential goods and industrial raw materials and (ii) consumer goods. In addition some items be included in the exemption category and others categorised as demerit goods and subjected to higher rate of tax. |
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India to be largest wheat producer New Delhi, February 27 “The production of wheat in India is growing at a faster rate than China which is the largest producer of wheat in the world today”, the Director-General of International Maize and Wheat Improvement Centre (CIMMYT), Mexico, Dr Timothy Reeves said here today. There is
tremendous potential for growth in eastern India, Dr Reeves said adding that the productivity in many farms of Punjab, Haryana and western UP were much higher than the average of leading agricultural countries such as Australia, Dr Reeves said. “Adoption of zero-tillage technologies in more than 100,000 hectares in Haryana, Punjab and western UP is setting the pace for a new revolution”, Dr Reeves said. Research for developing a permanent bed-planting system for rice and wheat is already underway in combination with laser-assisted and land levelling technology, which saves about 50 per cent in irrigation water requirement and improves productivity, he said. Director General of Indian Council of Agricultural Research (ICAR), Dr R.S. Paroda said that in India wheat occupies about 26 million hectares. Nine million hectares falls under the north-west plain zone where farmers use high levels of fertilisers, irrigation water and farm mechanisation and quickly adopt new improved varieties. “These are areas with relatively high productivity and would be sustained through the development of super-wheat and hybrids and adoption of resource conservation technologies such as zero tillage, seed drills and raised bed planting”, Dr Paroda said. The Economic Survey for 2000-01, on the other hand, has projected a gloomy future for the sector including a sharp fall of about 10 million tonne in foodgrains production. |
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Fernandes for private defence production New
Delhi, February 27 “It was only when the sanctions (imposed by several developed nations in the wake of Pokhran-II nuclear tests) were imposed that we took up the challenge to indigenise many defence items whose supply was hit,” he said while delivering a hard-hitting speech after giving away the National awards for Excellence in Indigenisation of Defence items here. The Defence Minister said that he did not agree with the earlier perception that anything connected with defence production was a secret. He pointed out, “how can a foreign equipment remain a secret when its manufacturer is selling it to different countries.” “I have tried to change the norms and traditions of defence production to enhance private sector participation.” Speaking on the concept of indigenisation, he said in the era of globalisation, several countries were getting together to manufacture different kinds of equipment. In this context, the Defence Minister also referred to the production of civilian aircraft by the Airbus Consortium, in which about eight countries were participating. The minister noted that private sector had started participating in a big way in production of warships, missiles, submarines and tanks. |
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Coke, Pepsi battle over 'yeh dil mange more' New Delhi, February 27 Claiming the ad line as its original work registered under the Copyright Act 1957, Pepsi has sent a legal notice to rival Coca Cola asking it to refrain from using the same line but Coke refuted this saying “any advertising slogan/descriptive work is not and cannot be the subject-matter of a copyright.” When contacted a Coke spokesperson told PTI: “We are not changing our advertisement (featuring actor Salman Khan). We will not bow to pressures.” “The advertisement contains nothing offensive and it is running even today on all channels”, he said. The controversy between the two Cola multinationals erupted on February 24 when Pepsi Co slapped a legal notice on Coke alleging violation of copyright and demanded that Coca Cola Beverages Pvt Ltd “refrain from telecasting, broadcasting or in any other manner the impugned advertisement.” In Pepsi’s legal notice Patent and Trade Mark Attorney Pratibha Man Singh said the phrase yeh dil mange more is its (Pepsi’s) original work and registered in its favour under the Copyright Act of 1957, adding the use of this phrase by anyone for commercial gain either in the course of trade or in any advertisement constitutes a clear copyright infringement. “By this notice, you are called upon to immediately refrain from telecasting, broadcasting or communicating in public in any manner whatsoever either through the print or electronic media the impugned advertisement....” the Pepsi notice said. Meanwhile, in its reply Coca-Cola’s lawyers Lall Lahiri and Salhotra said : “As far as we can see, translation of the phrase into English reads: ‘This heart wants a peacock’. Our clients fail to understand how your clients can even claim any copyright in such a phrase.....Your allegation in this connection is an unjustifiable threat which is actionable and our clients claim the right to hold your clients liable in this connection”.
PTI |
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Discriminated against for pregnancy Hong Kong, February 27 Hong Kong’s Equal Opportunities Commission told Reuters the district court had ruled on Monday that Chang Yin-Kwan, a former product manager of Wyeth (HK), had been unfairly treated when her bosses gave her the option to either take a demotion or quit soon after she told the company she was pregnant in September 1997. The commission fought the case on Chang’s behalf. The lawyer for Wyeth, Doris Chow, told Reuters the company was considering whether to appeal against the judgement. Chang became the first pregnant woman in the territory to have been found a victim of unlawful discrimination. Complaints over pregnancy discrimination have steadily risen in recent years with the commission receiving 166 complaints in 2000, more than double the number the year before. The court heard how Chang joined the company in 1995 and had always performed well at work, but the attitude of the company changed when Chang informed her superiors she was going to have a baby.
Reuters
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Hero Honda fixes March 26 for stock split New Delhi, February 27 The company has already secured shareholders’ approval on February 23 for splitting one equity share of Rs 10 each into five equity shares of Rs 2 each in the ratio of 1:5, Hero Honda informed the Bombay Stock Exchange. The company board had on January 16 decided to split the stock to increase liquidity in the market. BILT eyes paper co In a bid to consolidate its position as the market leader in the paper industry, Ballarpur Industries Ltd
(BILT) is considering a proposal to take over Indonesian paper major Sinar Mas’s Indian operations. BILT, which is now focusing on the writing and printing paper businesses following its operational
restructuring, received a proposal from Sinar Mas for sale of its entire equity, consequent to Indonesian parent Asia Pulp and Paper Ltd’s global realignment plans. BILT Managing Director Gautam Thaper declined to comment on the issue but company officials confirmed that the
proposal from Sinar Mas, which posted a Rs 4 crore profit for the first time in calendar 2000, had been received. Adani Exports Adani Exports, the flagship company of Adani Group, has signed a memorandum of understanding with the Orissa Government for the development of the Gopalpur Port at Bhubaneshwar. A release issued from Ahmedabad said that the project will be executed by a joint venture company and it will be carried out in phased manner. In first phase, an investment of around Rs 50 crore is envisaged to repair the approach and the damaged portion of jetty and construct a 200-m jetty. Reliance Petro Reliance Petroleum Ltd (RPL) will export a total of one million tonnes of diesel to Brazil during the year 2001 as part of a term contract. Consequently,
RPL, operating the world’s largest refinery, will earn over $ 250 million in foreign exchange, company sources said today. As part of the term contract, the company has already made a few dispatches from its 27 million tonne Jamnagar Refinery in Gujarat. Essar Oil The Rs 7000 crore ambitious mega-refinery project, being set up by Essar Oil Limited
(EOL) at Vadinar in Jamnagar district, which is facing rough weather due to litigations since last five years, suffered yet another jolt when the High Court dismissed the company’s review petition on February 23 regarding laying of the pipelines through the Marine National Park and Sanctuary
(MNPS) in the Gulf of Kutch. Bhushan Industries Bhushan Industries has entered the fray for acquiring 26 per cent stake in public sector Hindustan Zinc Ltd (HZL), slated for privatisation next fiscal. The downstream steel player is looking at HZL as a means to
achieving backward integration. Bhushan Industries currently uses nearly one-fourth of HZL’s final metal production amounting to 25,000 tonnes of zinc metal for various galvanising operations. The group had recorded a turnover of Rs 1350 crore during 1999-2000 and a profit of Rs 65 crore. IOC to invest 500 cr Indian Oil Corporation (IOC) will invest Rs 500 crore in upgrading its retail outlets in 2001-02 and has tied up with leading merchandiser Akbar Ali, food chain Domino’s and
Chennai-based internet service provider Dishnet DSL for providing value added services at sale points. In the run-up to deregulation of petroleum sector, IOC will increase company-owned-company-operated retail outlets to 50 per cent from present 34 per cent of 7,500-old sales points while adding another 250 new outlets during the next financial year, IOC Director (Marketing) O.N. Marwaha said. SIDBI Venture Cap SIDBI Venture Capital Ltd, acting as fund manager for National Venture Capital Fund for Software and IT industry (NFSIT) has taken stake in four IT companies aggregating Rs 10 crore. Investments in these companies were recently made as equity and equity linked instruments, SIDBI Venture Capital said in a release issued at Mumbai today.
PTI & UNI |
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Freight hike to hit re-rolling steel units Mandi Gobindgarh, February 27 He said that the major steel plants will be effected due to inward/outward transportation of material, the result of which this commodity will be costlier in the stockyards, of Tisco and Sail. As per the analysis made on an
average the price of various goods at Gobindgarh steel complex may go up by Rs 65 per M.T. due to the railway freight made effective from April 1, 2001. Meanwhile Steel Re-roller’s will discuss the budgetary impact on iron and steel industry tomorrow evening at New Delhi. A meeting in this respect has been convened by Apex Steel Body All India Steel Re-Rollers association wherein representative of the Steel Re-Rolling Industry all over the country will participate. |
US case against Microsoft slammed Oil lower again as OPEC hesitates New cash deal for Hyundai Engg |
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Engineers award Enriched basmati Travel award CII Budget meeting Brand ambassador New DSE chief |
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