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June 12, 2001, Chandigarh, India   
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Garment units feel slowdown pinch
Exporters: review cut in drawback duty
Reduce taxes to wipe off handset grey market |
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UTI in talks with IRDA for pension schemes Refund excess charges:
TRAI Banks decline move on clearing
house Union Bank net surges 54
pc Voltas to organise show on July
7 Malaysian IT firm in
pact with SD Society
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Garment units feel slowdown pinch New Delhi, June 11 The exports in the first quarters have come down by 13.3 Per cent in terms of quantity and 14.71 per cent in terms of value, compared to the corresponding period last year. The US accounts for over 33 per cent of the country’s total garment exports. The export of readymade garments to the USA during January-April, 2000, was 123.44 million pieces valued at $776.64. This year it has come down to 107.05 million pieces valued at $662.43 million. The FICCI study said the US economic slowdown could have serious implications for the Indian garment exporters if the situation does not turn around soon. There has been a reduction in production in large sized units which is leading to low capacity utilisation. In the small and medium sized units, production might stop and units will be forced to either close down or in the absence of adequate orders be forced to keep the units running. The exporters might be forced to go in for heavy retrenchment. In the categories like cotton and synthetic ladies dresses and ladies blouses, the study said the exports have come down by 30 per cent in value terms. There has been no improvement in the unit value realisation either. The decline in exports is more in quota items which constitute around 80 per cent of India’s total garment exports to the USA. Among the quota items, the decline is more in the products, which are of importance to India. The garment exporters blame it to the recession in the US economy. There is a significant decline in the order the Indian garment exports got this year during January-April from the US buyers as compared to last year during the same period, the study said. The orders are either cancelled or put on hold. Delay in confirming orders is also reported by many garment exporters. Orders are cancelled by the buyers in the USA because they say there are no takers for a particular design, colour or pattern. There are frequent cases of cancellation on these pretexts. The reduced orders have resulted in decline in the sales by around 10 per cent. It is felt that though all the segments of garments are affected due to the slowdown in the US economy, garments with higher FOB are worst affected. The decline in number of the orders is evident from the declining quota utilisation rate. There is a decline in the utilisation rates in almost all the quota categories except in MB other coat and coats and jackets. A fluctuation in the quota price of a product indicates the change in the demand of a particular product in a particular market. There is a substantial decline in the quota prices of garment items for export to USA. The quota brokers attribute this solely to the slowdown in the US economy which has lead to fall in demand for Indian products. On an average, the quota prices have come down by around 70 per cent during January and May this year The study said the silver lining could be that with the fall in quota prices, the quotas will be available adequately for manufacturing and exporting garments. But in absence of new orders coming in, any increase in exports is quite unlikely. Exporters are
increasingly resorting to price cuts to make their products more competitive in the US market, the study said. |
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Exporters: review cut
in drawback duty Ludhiana, June 11 In the mean time, a committee should be constituted having representatives from the trade and industry to review the entire drawback duty rates covering all types of knitwear, hosiery and readymade manufactured garments to fix reasonable rates and value caps. Mr Sanjeev Gupta, President, APPEAL, said,‘‘ Currently the Ludhiana knitwear industry is exporting apparels worth more than Rs 1000 crore. The department’s decision to cut the drawback duty rates, that includes payment of customs, excise and other duties to the exporters, will have drastic impact on the industry.’’ He pointed out that the annual growth rate of the knitwear exports from Ludhiana had touched 25 per cent in 2000-01, against the annual growth of 8.6 per cent in textile exports from the whole country. Mr S K Jain, an exporter said,‘‘ This time commissioner of Drawback has announced the rates without considering 17 items regularly being exported from Ludhiana. This has resulted in a great confusion and set back to exporting community. A number of shipments are held up. Under the above circumstances, the knitwear exporting industry is hesitating to accept any fresh orders for the next Summer 2002. The new rates would put exporters in heavy unbearable losses.’’
The Textile Minister, Mr Kashi Ram Rana has also assured a delegation of the textile exporters that he would take up the review of this reduction with his counterpart in the Finance Ministry.
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Reduce taxes to wipe off handset grey market
New Delhi, June 11 “If the tax payable is brought down, as it has been done by the Malaysian government, then the authorised cellular market would gain the major chunk of mobile handset business and the grey market will be wiped off,” S.S. Bassi, country Manager of Japanes Mitsubishi Mobiles Phones. According to sources, global manufacturers pay as high a custom duty as 28.9 per cent and a 12 per cent sales tax to the Indian Government. Bassi said that Malaysian government, in an effort to promote sales of mobile phones through legal channels only and curb smuggling of mobile phones, has announced abolishing import duty and sales tax totalling 30 per cent. A similar move in India would lead to twin advantages -the price of handsets would come down substantially and revenues to the government would go up. Sanjeev Sharma, Country Manager of Nokia Mobile phones, said “the step by the Malasian Government is in the right direction and similar scenario in india would certainly help to boost the mobile handset market and curb grey market and smuggling.” The revenues to government would increase substantially as the legal market size then would at least be eight times bigger, handset traders and manaufacturers said adding that some of the handsets would be available at the prevailing grey market price. Bassi said the government can easily initiate the same theory or market practice as done by Malaysian Government to help authorised market to gain market share. Expressing concern over the growing grey market in India Bassi said it had affected the earnings of not only cellular handset companies but also the exchequer by way of duty evasion. Mitsubishi’s handsets under the brandname of “Trium” are available in the Indian market in various low-end, medium range as well as high-end price ranges. The company had introduced low-end range products costing about Rs 3,990 for a handset aimed to fight the grey market but it could not achieve the desired results. Sources said the grey market in India commanded a major chunk of the total mobile phone market in the country and thus was affecting the revenues of the authorised manufacturers.
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AirTel slashes call charges New Delhi, June 11 Terming it as a ‘Dream Plan’, AirTel said that subscribers would get an option on paying Rs 75 a month and can make as many calls free on a number of their choice 24 hours a days. The company also reduced the one-time security deposit by Rs 500 to Rs 1,500 from the existing Rs 2,000 under the latest tariff plan. The new tariff plan will, however, be implemented after the TRAI approves it.
PTI |
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UTI in talks with IRDA for pension schemes New Delhi, June 11 “We are in talks with the Insurance Regulatory and Development Authority (IRDA) for pension schemes. We are planning to enlarge the ULIP scheme to offer pension benefits,” a top UTI official said here. The move comes after the insurance regulator favoured entry of mutual funds along with life insurance companies for boosting the pension sector. IRDA is expected to submit the final draft on pension reforms to the Ministry of Finance by July end or latest by October 2001. UTI Chairman P.S. Subramanyam met IRDA Chairman N. Rangachary recently to seek clarification about extending the ULIP scheme to offer more facilities to pensioners. ULIP, which had mopped up about Rs 4,500 crore till April 2001 is a multi-benefit scheme which combines the basic benefit of life insurance with good returns, tax benefits and accident insurance cover. Apart from modifying the ULIP scheme, the UTI official said the fund is planning more schemes specifically for pension sector once IRDA comes out the guidelines. IRDA sources said UTI would have to abide by the new investment norms and change its portfolio holding in ULIP according to the prudential investment norms, which allow a maximum 25 per cent investment in equities. Pension funds are required to invest 40 per cent in government and other approved debt instrument (with a minimum 20 per cent in government securities) and the remaining 60 per cent in approved investments including ‘AAA’ rated debentures and equities. Currently UTI pays a small amount from ULIP to Life Insurance Corporation (LIC) towards premium and invest the balance in debt (60 per cent) and equities (40 per cent). The new investment norms for ‘Unit Linked Life Insurance’ schemes put out by IRDA states: “Unit linked policies may only be offered where the units are linked to categories of assets which are both marketable and easily realisable.” However, the total investment in other than approved categories of investment shall at no time exceed 25 per cent of the fund, the guideline said. The IRDA is currently working on the basis of the S.A. Dave committee report on Old Age Security and Income Scheme (OASIS) report. IRDA sources said the regulator may differ slightly from what the committee suggested and allow mutual funds to enter the pension business. The regulator intends to intensify competition and ensure higher coverage of pensions
especially in the unorganised and private sectors. LIC, ICICI Prudential, HDFC Standard Life and Birla Sun Life have already expressed intentions to come up with pension schemes when the IRDA comes out with the final guidelines.
PTI
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Refund excess charges:
TRAI New Delhi, June 11 TRAI’s directive follows a complaint filed by a cellular phone subscriber wherein it was pointed out that subscribers are charged tariffs at peak rates on ISD calls made on Sundays and national holidays. The Telecom Tariff Order (TTO) of 1999 of the TRAI stipulates that on Sundays and national holidays, all the 24 hours during the day shall be charged at off peak rates. The TTO 1999, became effective from May 1999. The amount to be refunded per metered call unit shall be equal to the difference between the peak time tariff charged and the applicable off peak time tariff for international calls and cellular service providers have been asked to implement the directive by June 30, 2001. |
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Banks decline move on clearing
house Malerkotla, June 11 In a letter to State Bank of Patiala, all the other six members of the clearing house State Bank of India, Oriental Bank of Commerce, Bharat Overseas Bank Ltd, Canara Bank, Sangrur Central Co-Operative Bank, Punjab National Bank and Punjab & Sind Bank has written that due to shortage of staff on account of VRS scheme adopted by all banks it is not possible for us to start clearing house on Saturday. These banks refused the orders of General Manager State Bank of Patiala, J.R. Devgan who while accepting the long pending demand of the industrialists had ordered to start the clearing house on Saturday. Mr M.R. Garg, MD, Tirupati Chemicals Ltd alleged that the industrialists here are facing problems due to the non-availability of clearing house in banks on Saturday. |
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Union Bank net surges 54
pc Chandigarh, June 11 The bank has been able to progressively bring down the cost of deposits to 7.57 per cent by March 2001 while yield on advances improved to 12.10 per cent and on investments to 11.75 per cent despite falling interest rates. The bank’s capital adequacy ratio was 10.86 per cent which was significantly higher than 9 per cent stipulated by the RBI for March 2001 said Mr Leeladhar. The bank was able to reduce NPAs to the tune of Rs 357 crore by way of upgradation, cash recoveries etc. The percentage of net NPA to net advances declined from 7.97 per cent to 6.87 per cent. Mr R. Vishwanathan, General Manager, New Delhi and Mr R.K. Malhotra, AGM Chandigarh also spoke.
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Voltas to organise show on July
7 Chandigarh, June 11 The company, which holds around 4 per cent share in the retail market for ACs and nearly 20 per cent in the organised institutional sector, will now focus on the retail segment, said Mr K J Java, Regional Vice- President, while talking to newspersons here today. Mr Java was here in connection with the roadshows being organised in Chandigarh, Panchkula and Mohali to create awareness about its new range of Vectra and Verdant airconditioners based on green air technology. Members the Voltas team can be seen at entertainment joints, petrol pumps and several other places informing the people about the new products and providing them with discount booklets etc. These shows will culminate into Voltas Nexgen show which will be organised on July 7. Voltas recently has entered into a joint venture with Fedders for the manufacture of ACs. The JV, say the company officials, will help the company to market world class modern cooling appliances and increase its market share. "To meet the competition, w e are also trying to cut down on costs further ",said Mr Java." Excise duty reductions", he said, "and economies would help the company reduce the production costs and thus retain it share despite increased competition". In addition, Voltas is also focussing on providing more value-added services to its customers in terms of increased warranty, after sales services etc. |
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Malaysian IT firm in
pact with SD Society Chandigarh, June 11 The world of Information Technology is a burgeoning opportunity with a tremendous paucity of professionals, worldwide. In the European Union itself there are more than a million jobs beckoning, with the numbers expected to touch 1.6 million by 2003. APIIT, Panipat offers a series of innovative honours degree programmes in various fields related to Information Technology. The institute offers: one-line lecturer consultation; web timetable; on-line feedback system; on-line appraisal system; job placement system; university placement system; and student project management system (PAGOL). APIIT qualifications are widely recognised in England and Australia at various universities. Permission of recognition by the Haryana Government is expected shortly for
APIIT, Panipat. |
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CII report PHDCCI session IT&T Hero Winner Allahabad Bank Internet node Penguin India |
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