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| Thursday, June 21, 2001, Chandigarh, India   
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CACP for Rs 10 hike in paddy price
Grasim to acquire 2 cement units
Charges against Toubro Infotech
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SBI to install 600 more ATMs by Aug Satyam Computer to set up centre in Dubai Gujarat for higher crude royalty Ranbaxy sues Wilmark
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CACP for Rs 10 hike in paddy price Chandigarh, June 20 In its report on price policy for kharif crops of 2001-2002 season submitted to the Government of India, the Commission is understood to have recommended Rs 520 and Rs 550 per quintal as MSP for Common and Grade A paddy, respectively, as against last year’s prices of Rs 510 and Rs 540. The MSP per quintal for other kharif crops are: jowar, bajra, maize and ragi Rs 485 (Rs 445), tur (arhar), moong and urad Rs 1320 (Rs 1200), groundnut-in-shell Rs 1340 (Rs 1220), soyabean (yellow) Rs 885 (Rs 865), soyabean (black) Rs 795 (Rs 775), sunflowerseed Rs 1185 (Rs 1170), sesame Rs 1400 (Rs 1300), nigerseed Rs 1100 (Rs 1025), cotton (F-414/H-777/J-34) Rs 1675 (Rs 1625), cotton (H-4) Rs 1875 (Rs 1825), VFC tobacco black soil (F-2 Grade) Rs 2700 (Rs 2600), light soil (L-2 Grade) Rs 2900 (Rs 2800). The Commission is understood to have
suggested that the role of FCI should be reduced by phasing out government dominance over grain markets and procurement operations. In the long run, the FCI should only maintain strategic buffer stocks and aim at stabilising the prices of foodgrains within a band. The amount of subsidy cost thus saved should be given to Panchayat Raj Departments of states in proportion to the population below the poverty line, in the form of food stamps or vouchers or even a conditional cash grant. The identified poor should be given these foodgrains vouchers to be exchanged for food either in retail ration shops or private grain stores. Such a
structural change in the systems of procurement and distribution would substantially reduce the levels of corruption and cost of food administration. The CACP has asked the government to review the present system of procurement of rice and examine the feasibility of making levy obligations more flexible, while at the same time making it legally binding on mills to custom mill paddy procured by government agencies on priority basis and at pre-determined charges. In another important recommendation, the CACP has said that fair average quality (FAQ) norms for all crops under price support should be widely publicised along with the norms of value cuts that will accompany any relaxation of FAQ norms. The norms of relaxation should also indicate the maximum limits beyond which the procurement agencies will not buy the produce. A significant suggestion made by the Commission wants the government to consider inclusion of coarse cereals in the PDS under the proposed decentralised system and treat these at par with rice and wheat in the matter of subsidies. Simultaneously, it recommended that NAFED be entrusted with the task of price support operations on coarse cereals, particularly in those states where these cannot be included in the PDS. NAFED should strengthen and expand its apparatus for providing price support to pulses. Referring to the huge surpluses of FCI, the CACP has recommended that the government should develop an early plan of action immediate disposal of surplus foodgrains through rationalisation of Central Issue Prices and implementation of extensive food for work programme. The present huge stocks should be treated as capital and used for rural infrastructure development as well as reduction of unemployment, poverty, illiteracy and bonded labour in backward regions. If there is will and commitment, operational difficulties can be overcome through appropriate action plan and work design. Three of the Commission’s recommendations are bound to evoke opposition from the surplus states, particularly Punjab and Haryana. One is the nominal increase the CACP has recommended in MSP for paddy. It has said that based on various criteria examined, it finds it difficult to recommend any substantial increase in paddy MSP at present. In their discussions with the CACP a few weeks ago, the two state governments had asked for a big hike in paddy MSP. The paddy price issue will be crucial for Punjab’s Akali-BJP coalition government as the Assembly elections are due before March 2002 and the paddy procurement season will begin in September-October 2001. The Centre may be force by its allies in Punjab and Haryana to give precedence to their political compulsions ignoring economic considerations and grant higher MSP for paddy. The decentralisation of procurement operations by reducing the role of the FCI has already been opposed by the surplus states in last month’s Chief Ministers’ meeting called by the Prime Minister. As a result, a ministerial committee is now going into the matter. The surplus states are not prepared to take the responsibility of procurement. The third recommendation about value cuts while relaxing specifications will also not find favour with the surplus states. During the last kharif procurement season when paddy was damaged by untimely rains, the surplus states had pressurised the Centre to relax specifications of paddy without imposing any quality cuts. This led to the procurement of poor quality of paddy and the resultant poor quality of rice. The Commission’s report is now expected to be taken up by the Union Cabinet for fixing new MSP for kharif crops although by the time a decision on prices is taken, paddy transplantation season will be over.
IPA
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Grasim to acquire 2 cement units
Lucknow, June 20 "The decision to privatise the Uttar Pradesh Cement Corporation was taken as a part of our commitment to revive the state's dying cement industry that will also reopen fresh avenues for employment," Chief Minister Rajnath Singh told IANS. Grasim will take over the units at Dalla and Chunar within the next two months after completion of legal formalities with the BIFR. The older unit at Churk was excluded from the deal as the machinery and equipment was obsolete. The deal, according to Industrial Production Commissioner A.P. Singh, was struck for Rs. 2.41 billion under a package that will take care of the voluntary retirement benefits of the corporation's 3,500-odd employees. "Of this, Rs 1.95 billion will be paid by Grasim as down payment toward the wages and other statutory dues of the employees while the remaining amount would come as cost of available infrastructure," he said. Claiming that the Birla-owned Grasim Industries was the only bidder for the two cement units, he admitted that "initially others had shown interest, but when it came to actual bidding Grasim alone came forward with its offer, which appeared quite reasonable". As if to justify the terms of the deal, Rajnath Singh said: "The package worked out was several times more than what one of the previous government (led by Samajwadi Party chief Mulayam Singh Yadav) had worked out with the Dalmia group." According to official records, the earlier deal with the Dalmias was worth just Rs. 300 million. Besides, there was no rehabilitation package for the employees, who were to face retrenchment. This led to violent protests, provoking police firing in which a few people were killed. Kalyan Singh cancelled the deal and made an effort to run the cement units again, but that phase did not last long. The factories were functional until July 1998, even though they were running at barely one-fifth their capacity and thereby incurring heavy losses. The corporation's 3,500 employees had stopped getting their salaries while the large infrastructure of the factory was left to rust and rot. Supported by various political parties, the employees were demanding the revival of the company, but the state government failed to muster the funds required.
IANS
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Charges against Toubro Infotech Chandigarh, June 20 A week ago when on a complaint filed by some investors who had invested in the company's debentures, the WB police registered a case against the MD and the other directors of the company. Three company officials —two from Kolkata and one from Cooch Bihar — have already been arrested. It has been alleged that the company is violating the SEBI guidelines relating to the credit rating and is offering an interest rate on debentures that is much higher than the prevailing market rate. The Chandigarh based Toubro group is involved in several ventures. While it has a steel wire plant with the capacity of 4,000 MT at Kurali in Ropar Distt., there is another floriculture project that has been set up at Dappar in Punjab . The company , in its profile has mentioned that it has a collaboration with Flodac BV of Holland and CAM Group of Switzerland for this project. A chicken processing plant with an estimated outlay of Rs 1,000 crore is also in pipeline. One of the major ventures of Toubro is Toubrodotcom which is into web solution providing. Mr Kanwardeep Singh, is also the editor of FE Newsline brought out by Financial Express. Toubro also has an office in California. The company came into limelight when a section of WB based newspapers reported about the operations of the company According to Anand Bazaar Patrika , a leading daily in Kolkata, which has been reporting the matter , Toubro Infotech & Industries Limited was 'selling' its debentures for which a network of around 7000 agents had been established. These agents, said the newspaper, targeted mainly villagers to whom it was promised that their money would become ten times within 13 years. As per the reports, the company also issued post dated cheques to its investors. Apart from the attractive offer to its investors a high rate of commission, gifts and tour packages were also promised to the agents who met the specified targets. However, later on a complaint by several investors regarding the same and also the credit rating which the company mentioned as "A" ; SEBI also objected . Reportedly , a case by SEBI has also been registered before the Chief Metropolitan Magistrate, Kolkata, whereas the police is also investigating the matter. MD of the company Mr Kanwardeep Singh, is not traceable. In the local office in Sector 9 here, despite several visits, no senior official was available. Denying any kind of mal functioning, the employees present said "A'' officials are busy solving this problem and hence are not there". The employees, refused to come on record and no official spokesperson was available. The police also carried its investigations today. It is learnt that earlier the police had also visited Mr KD Singh's residence in Sector 33 but he was away. The employees also expressed ignorance as to the whereabouts of Mr KD Singh. However, no complaints have been reported so far about the functioning of the company in and around Punjab. For one of its projects a term loan of Rs 40 lakh had been taken from PSIDC. According to sources in the Corporation, the loan had been taken last year to be paid back by 2004 and the company has already paid Rs 10 lakh. As per the company's official brochures, the sales turnover had increased from Rs 20 lakh in 1990-91 to Rs 2,800 lakh in 1999-2000. The company , in its projections had estimated the turnover to grow to Rs 1,00,000 lakh by year 2004-05.
Toubro shares crash
Manoj Kumar from Ludhiana adds: The share price of Toubro Infotech and Industries Limited, a Chandigarh based company are falling every day for the past one week and there are virtually no buyers in the market. The share prices have started falling after the publishing of a news of financial scam by the company in West Bengal, in the Dainik Tribune. The company shares closed at Rs 35.25 today falling from Rs 38.50 yesterday and Rs 41.60 on June 18. Only 360 shares were traded today at a single price. Though there were sellers of 9125 shares at the same price, but buyers were missing. Only 600 shares were traded on June 18 at the BSE, though the sellers had offered about 11000 shares at Rs 41.60, but there was no takers in the market. The price of company’s shares was Rs 54.25 on June 2, and that started falling after a news item published in Anand Bazar Patrika, a Kolkata newspaper, on June 12 that the company had collected about Rs 100 crore in West Bengal from the public by promising very high interest. A number of investors here have feared that their investment has been blocked in the company as the accounts of the company have been already sealed at Chandigarh. The share market watchers here say that the company is going to become a sick company due to failure in software business, cut flower business and now the sealing of the accounts. In fact, they say, there is no buyer of the company shares in the market and the
company is showing trade of few shares through dubious means.
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SBI to install 600 more ATMs by Aug
Kolkata, June 20 “By end of this year, at least 350 of our branches will be covered under the project and the remaining in another two years,” SBI Chairman, Janaki Vallabh, said here. SBI, he said, aimed to provide its customers better services than those provided by private and foreign banks to become the number one favourite of customers. Vallabh was speaking at the formal inauguration of SBI’s ATM Networking Project linking 260 branches spread over seven cities with 100 ATMs. He said the fast pace of ATM installation and networking would be kept up by putting up another 600 ATMs by August. There would be over 1000 ATMs by March 2002. The Chairman said, “to achieve the target, we will have to improve our services by introducing new technology and proactive marketing of the products offered by the bank.” He regretted that the younger generation was not coming to SBI. “We have to attract them and unless we do we will become a bank of senior citizens. We cannot convince the young other than by offering improved technology and best solutions to their demands.” SBI’s 51 branches would provide Internet banking from July 1, observed as ‘SBI Day’, he said. The facility would be available through 100 branches by March, 2002. Vallabh said with 1000 ATMs, 100 Internet Banking branches and a host of other technology driven services, SBI is all set to offer a new face by end of this fiscal. “Technology is one of the most important items on our agenda and the next in line is offering core banking solutions by computerisation of branches,” he said. The chairman said increasing emphasis would be accorded to personal banking division of the bank which contributed about 60 per cent in its total business. On personal banking, Housing Loan was the number one priority of SBI, Housing Loan advances during the last fiscal grew by Rs 1543 crore to Rs 4900 crore and for 2001-2002, “We are targetting an increase in housing loan by about Rs 3500 crore to cross Rs 8000 crore business.”
PTI
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Satyam Computer to set up centre in Dubai Kolkata, June 20 In a “Management Discussion and Analysis Paper” prepared by the company, it stated that continued dependance on a single region, North America, was an issue for concern. The paper also said the slowdown of the US economy coupled with continued recession in Japan had led to uncertainty over growth prospects for the fiscal year 2001-02. The new economy companies seemed to have slowed down their decision making in technology application. Satyam, which is listed on the New York Stock Exchange, earned a revenue of Rs 1241.67 crore and a post-tax profit of Rs 486.28 crore in the financial year 2000-01. To mitigate the threat of recession in the US economy, the company was in the process of taking up various initiatives to increase business in non-US markets. Towards this end, the company is planning to set up dedicated centre for Enterprise Application Integration at Satyam’s European centre in the UK. Besides, the company is also opening a Middle-East Solutions Centre in Dubai Internet City and setting up an Asia-Pacific headquarters in Singapore. The discussion paper said the company would make all efforts to enhance IT capabilities through strategic joint venture and alliances in terms of both domain and technology expertise. According to the paper, Satyam is also looking at the opportunity for offshore vendors which would help the company in integrating new technologies with the existing mainframe and legacy systems. The sectoral performance of the company showed that offshore business constituted 57.65 per cent of the revenue while onsite operations contributed the remaining 42.35 per cent. In terms of market dominance, the North America market contributed 76.49 per cent of the company’s revenue, followed by Europe with 7.31 per cent and Japan with 3.60 per cent and 12.6 per cent from rest of the world. In the coming annual general meeting of Satyam, the company Board would seek shareholders’ nod to allot additional employee stock option scheme to eligible managers either in the form of warrants, fully convertible debentures or any other instrument.
PTI |
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Gujarat for higher crude royalty New Delhi, June 20 Besides this the state government also sought the green signal of the Centre to enable Shell, a global oil major, to invest in Gujarat State Petrochemicals Limited. These demands were made by Gujarat Chief Minister Keshubhai Patel with the Petroleum Minister Ram Naik here today. The meeting, which was held in the office of the Mr L K Advani in North Block, was attended by Minister of Textiles Kashi Ram Rana and Gujarat Energy and Petro-Chemicals Minister Kaushikbhai Patel. Patel tried to impress upon Mr Naik that if its demand for linking up the crude royalty with international price was accepted, the Gujarat Government would get significantly higher royalty of Rs 800 per metric tonne of crude drilled on ad hoc basis. If the Centre accepts the demand, Gujarat would get on an average Rs 65 crore per month as royalty as against the current figure of Rs 40 crore per month. The state government had in the past got ad hoc increase in crude royalty in 1999 and 2000. Subsequently, the Gujarat Chief Minister along with top state government officials and representatives of co-operative banks, the RBI held a high-level meeting with Yashwant Sinha, Advani and other top Finance Ministry officials on the revival of Madhavpur Merchantile Co-operative Bank, which went bankrupt after the “Black Friday” stockmarket scam. |
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Ranbaxy sues Wilmark New Delhi, June 20 Giving an exparte interim injunction in favour of Ranbaxy, the court asked Wilmark Pharmaceuticals to stop manufacturing its analgesic drug “Fortwil” as it closely resembled Ranbaxy’s drug. “The defendants (Wilmark) are restrained from manufacturing, marketing, advertising and dealing in pharmaceutical preparations under the impugned trade mark “Fortwil” or any other mark identical with or deceptively similar to plaintiff’s (Ranbaxy’s) trade mark “Fortwil”, Justice A.K. Sikri said in a recent order. The court also prohibited the Punjab-based company from using the carton, ampule, the layout, colour scheme and get up which was identical with or deceptively similar to that of the Ranbaxy’s “Fortwin”. Ranbaxy’s counsel H.P. Singh alleged that by adopting the offending trade mark “Fortwil” and artistic work in respect of pharmaceutical preparations, Wilmark was encashing upon the reputation and goodwill of the plaintiff to earn easy profit.
PTI |
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FDI proposals worth 477 cr cleared New Delhi, June 20 |
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