 |
| Thursday, August 9, 2001, Chandigarh, India   
|
S&P
rating lowered on Reliance, Downgrading
not justified: Sinha
$ 540 m
trade facility for India Maruti-800
priced at 2.06 lakh in city MTNL,
Escotel pact for roaming service |
|
|||||||||||||||||||||||||||||||
|
Tripur
beats Ludhiana in garments’ export Glaxo
to close down factory at Worli Oil up
again as US inventories slide ISPs
call for removal of anomalies in service tax
City
posts highest banking growth
|
|
S&P rating lowered on Reliance, 11 firms
New Delhi, August 8 The other companies include Larsen and Toubro and Tata Power and the state-run Indian Oil Corp, National Thermal Power Corp, Indian Railway Finance, and Power Finance Corp. S&P also downgraded the public information ratings on state-owned General Insurance Corp, National Insurance Corp, New India Assurance, Oriental Insurance, and United India Insurance to triple-’B’-minus from triple-’B’. The credit rating major lowered India’s local-currency rating yesterday, citing unchecked Budget deficits and rising domestic indebtedness. “India’s general government Budget deficit, which includes both the Central and state governments, is likely to exceed 10 per cent of gross domestic product in the current year,” it said. The downward outlook revision, which comes close on the heels of Moody’s lowering its rating of India, reflects rising concern that public finances might worsen further in the years to come as public sector reform process loses its steam in the face of opposition from various quarters. Said Sujata Srikumar, Managing Director of the New Delhi-based credit rating firm CRISIL: “After the lowering of India’s sovereign rating to ‘negative’ from ‘stable’, a downward revision in the outlook of blue-chip companies was also expected. “The downward revision wont” have any immediate adverse impact on these companies but in the long term this may increase the cost of funds in an already slowing economy,” she told IANS. The Indian economy grew 3.8 per cent in the first quarter (April-June) over the same period in 2000-01, the slowest in almost three years. India has set a 6.5 per cent growth target for the year ending March 31, 2002, though economists say the country may only be able to achieve 5.5 per cent.
IANS
|
|
Downgrading not justified: Sinha New Delhi, August 8 Reacting to S and P’s decision to downgrade currency ratings, Mr Sinha said the stability of the markets has proved the global credit rating agency wrong. “The stability in the market is the biggest commentary, much more than what words could express,” Mr Sinha said. The downgrade, according to S and P, was done primarily because of India’s “unchecked deficits and indebtedness”. The Finance Minister contested the credit rating agency’s assumptions in downgrading the ratings for India saying the issues raised by the rating agency were not valid and criticised the haste with which it had come to conclusions on India.
|
|
$ 540 m trade facility for India New Delhi, August 8 The announcement was made by the US Trade Representative, Mr Robert B Zoellick after he had a meeting with the Union Commerce Minister, Mr Murasoli Maran here. Mr Zoellick, who had an hour-long meeting with Mr Maran said these reductions would be notified in the Federal register, soon after his return to Washington next week. He was hopeful that the step would help improve trading relationship between the two countries. US is already India’s largest trade partner. The GSP, is a trade programme of the US Government that grants duty free treatment to specified products that are imported from over 140 developing countries. US had been denying GSP benefits on over 100 Indian products including agricultural, chemicals and pharmaceuticals. On the talks with Mr Maran, the US Trade Representative said he talked about trade relations - both bilaterally and globally and in the context of the World Trade Organisation. During the meeting India emphasised the importance of the
implementation agenda while the US side talked about the prospects for the forthcoming WTO round in Doha. India would have to take its own decisions regarding Doha, he said, adding the purpose of his visit was “more to listen and to learn and to be able to understand some of India’s concerns, so that we can bring
India and the other 141 countries on board.” The USTR’s visit is the first senior (cabinet) level visit by an official of the Bush administration. |
|
Maruti-800 priced at
2.06 lakh in city
Chandigarh, August 8 Following the decision, the prices of different variants of car have increased between Rs 4,987 and 18,830. Maruti Standard-Euro I is now available at Rs 2,06,185(ex-showroom, Chandigarh) against its earlier price of Rs 2,01,198. While the new price of Alto LX is Rs 3,04,088, Zen LX (Euro 1) is available at Rs 3,21,039. Baleno Altura is costlier by Rs 18,830 in Chandigarh whereas Wagon R VXI by Rs 9,584. The prices in Punjab and Haryana will be slightly lower than those in Chandigarh. Despite the hike, (second time within three months) company officials say they expect a growth of at least 15 per cent in the sales by the end of this financial year. "Even after the increase, Maruti prices are still lower than others. We infact expect a growth in our market share as well", said Mr Vikram Mehtani, Regional Manager, MUL. In July, the region registered a growth of 40 per cent , compared to the overall growth 12 per cent in the company's sales. The company has already sold 1,000 cars within the first 6 days of this month. Chandigarh holds around 18 per cent share in the total sales in the region. "The region that has contributed substantially to the company's sales, is likely to increase its shares in the overall turnover by at least 6 per cent by the end of this year", said Mr
Mehtani.
|
||||||||||||||||||||||||||||||||||
|
MTNL, Escotel pact for roaming service New Delhi, August 8 “We have agreed in principle with Escotel to provide roaming facilities to respective subscribers. Final agreement will be signed soon,” S.S. Sirohi, General Manager (mobile services) MTNL, told PTI. MTNL is also talking to a host of other private cellular service providers for such agreements. MTNL, which started cellular services in February this year, has not been able to make significant subscriber base on account of non-optimisation of network and its limited reach in the satellite towns of the National Capital Region. “We are trying to establish our network in Gaziabad, Faridabad, Gurgaon and Noida soon. Only after this we will be able to increase our market share in the cellular services,” Sirohi said. MTNL had recently reduced its cellular tariff by reducing the monthly rental to basic services level at Rs 250 while reducing the outgoing airtime tariff to Rs 2 per minute with a pulse rate of 30 seconds, he added. Sirohi said the subscriber base had started increasing after downward revision of tariffs last month and claimed to have a base of close to 11,000 in Delhi. Sirohi said MTNL was also likely to appoint up to seven franchisees as part of its plans to expand its cellular network. The franchisees would be decided within a week. MTNL has taken a series of initiatives, including
aggressive marketing for its cellular services under the brand name of Dolphin and setting up selling outlets. On the proposed cash card, Sirohi said the process was on and final decision would be taken soon. He, however, hoped that in a month’s time the process of cash card would be completed and launched in the market.
PTI
|
|
Tata Info ties up with SmartForce
New Delhi, August 8 “Being in a nascent stage, e-learning comprises only 10 per cent of the market. By partnering with SmartForce, we will provide a comprehensive learning solution comprising instruction, collaboration, practice and assessment,” Tata Infotech Education Services Division Head Rahul Thapan told reporters here. Asked about the rationale behind venturing into e-learning when the industry is in recession, he said “we are optimistic about the venture,” but declined to give details about the company’s financials. Currently the e-learning market in India comprises content or instruction in the form of computer-based training and web-based training with a marketshare of 90 per cent. The initiative will raise the standards of IT courses offered in the country and provide a platform for a holistic learning. Tata Infotech Education will enable e-learning solutions on the customers intranet and also at their offices overseas. It will also offer end-to-end solutions to the Indian corporates, he said. “It is imperative for corporates to provide high-time skilling to their employees. Through this alliance we will provide corporates not only cost savings, but will also ensure high productivity of their employees,” he
added.
PTI
|
|
Tripur beats Ludhiana in garments’ export Ludhiana, August 8 From a modest beginning with the cotton hosiery industry making its first appearance in India in 1893 in Calcutta, the knitwear sector has made major strides, grabbing a share of more than 50 per cent of the total RMG exports from the country as a result of the tremendous growth of knitwear industry in Tripur and Ludhiana. Among the number of famous specialised industrial clusters in India, spread over different geographical areas like brass work in Muradabad(UP), lock manufacturing in Aligarh (UP), Jagadhri (Haryana) for its kitchen utensils, Jalandhar (Punjab) for its sports goods and hand tools, Tripur in Tamil Nadu stand as apart as being a popular cotton hosiery and Ludhiana for its woollen hosiery. Though there are mainly 10 cities involved in garment exports from India including Delhi, Mumbai, Calcutta, Chennai, Bangalore, Kanpur, Cochin, Surat and Ahmedabad but Tripur and Ludhiana boast of a long tradition of hosiery industry where almost each household is directly or indirectly associated this industry. Both Tripur and Ludhiana have around 17,000 number of small and tiny units which include all hosiery activities, the total annual production of the two knitting hubs exceeds Rs 6000 crore and exports are to the tune Rs 3600 crore. Whereas Tripur has carved a niche in cotton hosiery and RMGs, Ludhiana’ knitwear is well diversified and is way ahead in woolen and cotton hosiery, cotton, synthetics, woollen and blended products estimated around Rs 2000 crore. Tripur’s hosiery industry employs about 2.5 lakh people, has around 4000 units involved in all hosiery activities and a sizeable number of units make use of information technology (IT) and forms the backbone of efficient and effective management. On the other hand, Ludhiana hosiery industry has a workforce of around 3 lakh, with 13,000 small and tiny units, around one thousand exporters but employs mostly conventional and indigenous machines, with a 4 per cent share in the total garment exports from the country. Tripur’s annual production is around 4000 crore of rupees which is double that of Ludhiana and has robust 36 per cent share in the annual value of knitwear exports from the country and 13 per cent share of the total exports of garments from India. Over a period of just 14 years. Tripur’s exports of knitted goods has grown by ten times in quantity (from 35 lakh pieces to 380 lakh pieces) and an over whelming 40 times (from 75 crore to 3050 crore) by value. Mr D.L. Sharma, President, Mahavir Spinning Mills who has visited Tripur lately told this reporter that Tripur has specialised over the last decade or so in creating capabilities for manufacture of knitted products- under garments and T-Shirt primarily for exports. The export performance of Tripur industry continues to rise inspite the recessionary trends witnessed elsewhere. According to Mr Sharma Tripur hosiery industry is almost approaching the exports level of Rs 5000 crore which is substantial increase during the past 3-4 years. In addition to the export performance, there are a number of small units in Tripur catering to the domestic market. In comparison to the performance of Tripur Knitwear industry, Ludhiana has not grown upto that extent. The Ludhiana exports continue in the range of Rs 700 to 800 crore. The only end favouring Ludhiana knitwear is that most of the Ludhiana products are high value added products with better fashion contained but the volumes are much smaller as compared to Tripur. Mr Sharma further
said it has been understood that from customer perception point of view, a quality consistency and reliability and timely deliveries in meeting the commitments are much better in Tripur as compared to Ludhiana. According to Mr Ashwani Dhawan a young hosiery exporter and a member of APPEAL, they are making efforts to bring about desired changes in the production pattern and compete with Tripur. Moreover, the government support to Tripur is much more whereas Ludhiana industries do not have any such support. The hosiery exporters point out that the mounting losses of recurring nature have led to an acute financial crunch in the market and trust levels are at the lowest ebb.
|
|
Glaxo to close down factory at Worli Mumbai, August
8 However, a final decision would be emerged depending on the success of the third voluntary retirement scheme
(VRS) announced by the company for about 700 staff at its Worli plant, a company spokesperson said. The VRS offer to be remain in force till September 4, will offer each employee basic and dearness allowance for the remaining years of service or
Rs 5 lakh, whichever is lower. In addition, a fully taxable
ex-gratia payment will be offered at the management’s discretion. This is the third VRS offered by Glaxo for the Worli factory. Two earlier schemes, implemented in 1994 and 1997, saw the exit of over 600 workers. If the third VRS is successfully implemented covering all workers and corporate staff members, the production at Worli would be shifted out to nearby site at
nashik. The company has also decided to shift its corporate office from the present place to the next building, Girolami House by March 2002. The group has eight manufacturing plants in India. Glaxo India has four units at
Worli, Thane, Ankleshwar and Nashik. UNI
|
|
Oil up again as US inventories slide
London, August 8 London futures for Brent Blend crude oil rose 27 cents to $26.35 per barrel soon after the market open, continuing a rally that has added 10 per cent to prices in three weeks. Data released by the American Petroleum Institute after the market close on Tuesday revealed a third consecutive weekly decline in crude oil stocks in the United States last week. “Many traders view the stock fall as a hangover from the Iraqi export cessation in June,’’ said Lawrence Eagles of
GNI brokers, referring to that country’s one-month export suspension in a dispute with the United Nations which has blockaded the Arab country since the 1991 Gulf War.
Reuters
|
|
ISPs call for removal of anomalies in service tax New Delhi, August 8 Participating at a meeting organised by the FICCI here today, the representatives of the ISPs pointed out that most of the service charges levied by them are for a bundle or package of services. A number of the components of such packages do not qualify for the application of the service tax. Some of the packages also contained resale of services for which service taxes are already being paid to the original supplier of such services. It is necessary to adopt the concept of value addition based service tax as the industry was operating on thin margins. Implementation of the value added concept could ensure that the service tax does not adversely affect the growth of this fledgling industry, they pointed out.
|
bb
Managers’ meet Union Bank Onion export HDFC MF BSE margin GIC BP Amoco |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 121 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
