Friday, August 24, 2001, Chandigarh, India






THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

‘Ruling on Basmati a victory for India’
New Delhi, August 23
The decision of the United States Patent and Trademark Office (USPTO) on the Basmati patent to RiceTec Inc of US signals a victory for India as it does not affect varieties of Basmati produced in India or affect the country’s exports of the rice varieties.

Nintendo attendants demonstrate the new Nintendo GameCube video game console at an unveiling in Tokyo on Thursday. Nintendo attendants demonstrate the new Nintendo GameCube video game console at an unveiling in Tokyo on Thursday. Japan’s Nintendo Co Ltd said it will delay the US debut of the GameCube console by two weeks to ensure a smooth rollout. — Reuters

Auto manufacturers join CNG bandwagon
New Delhi, August 23
Increasing focus in recent years on environmentally-clean fuels for automobiles has led to major auto manufacturers in India bringing out CNG versions of their vehicles, the infrastructural bottlenecks associated with CNG supply notwithstanding.

Maruti launches ‘Alto’ variant
New Delhi, August 23
India’s largest carmaker Maruti Udyog today launched a variant of its premium small car model ‘Alto’.



 

EARLIER STORIES

 
On-arrival visas at Delhi, Mumbai airports
New Delhi, August 23
As a major initiative to boost tourist traffic, the government will start issuing on-arrival visas to foreign nationals landing at Delhi and Mumbai airports in a month.

A-I selloff on getting ‘proper’ bidders
Kolkata, August 23
The Centre had put on hold the proposal for disinvestment of Air-India for the time being in the absence of “proper” bidders, Union Minister of State for Civil Aviation Chamanlal Gupta said here today.

Spice launches call conference
Chandigarh, August 23
Spice today launched ‘Spice Call Conference’ for its corporate subscribers today. The facility would enable the conferencing service on demand whereby one can conference with upto 32 subscribers at the same time.

First stage ST on edible oil withdrawn
Ludhiana, August 23
The Punjab Government in a notification issued on August 21, has withdrawn the first stage sales tax on edible oil, caustic soda and papar badian. The first stage tax was imposed on July 23 with effect from July 10. The Punjab Oil Millers and Traders’ Association and other organisations had been lobbying for the past many days to pressurise the government to take back that decision.

Max New York Life starts operations
Chandigarh, August 23
Max New York Life Insurance , a joint venture between Max India and New York Life today announced the commencement of its operations here. The company’s life insurance services will be available in Punjab, Haryana and Chandigarh.

Pak ban on sugar imports to remain
New Delhi, August 23
Pakistan will continue its ban on sugar imports from India since it is faced with a surplus situation, visiting Commerce and Industry Minister Abdul Razzak Dawood said today.

ROUND-UP

Nasscom to set up office in Kolkata
Kolkata, August 23
The National Association of Software and Service Companies (NASSCOM) today announced that it will set up an office in Kolkata within a few weeks to explore and offer its services to the entire eastern region and tap its IT potential.

  • Diamond rush in Canada
  • SignalTree, Comsys join hands
  • China may join WTO by Nov

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‘Ruling on Basmati a victory for India’
Tribune News Service

New Delhi, August 23
The decision of the United States Patent and Trademark Office (USPTO) on the Basmati patent to RiceTec Inc of US signals a victory for India as it does not affect varieties of Basmati produced in India or affect the country’s exports of the rice varieties.

Making a statement in the Lok Sabha, the Minister of State in the Commerce and Industry Ministry, Dr Raman Singh, said the impression that India had lost its case before USPTO was incorrect and based on misinterpretation.

Giving out facts of the case, Dr Singh pointed out that a patent on Basmati rice lines and grains was granted by the USPTO to RiceTec Inc on September 2, 1997. The application for this was filed on July 8, 1994. The patent had 20 claims.

After the recent decision of the USPTO, 15 claims have already been set aside and the remaining five claims do not affect varieties of Basmati produced in India and would not affect India’s trade. In fact even the title of the patent which was “Basmati Ricelines and Grains” has now been changed to “Ricelines Bas 867 RT 1117 and RT 1121”. The American company is therefore, restricted to patent on these three Ricelines which it has developed.

Dr Singh said the grant of the patent has not affected India’s exports in general and to the US in particular. In fact, total export of Basmati rice in 2000-01 was Rs 2141.94 crore as compared to Rs 1780.34 crore in the previous year. Similarly exports to US has risen from Rs 70.71 crore in 1999-2000 to Rs 129.34 crore in 2000-01. This is a six fold increase of export of Basmati rice to the USA as compared to 1998-99.

The Minister pointed out that when the patent was granted in 1997, the Government of India had treated it as a matter of immediate concern since India exports a large quantity of basmati rice and earns considerable foreign exchange. It was decided that measures be taken to challenge this patent before the USPTO.

Following broad-based inter-ministerial consultation and evaluation by technical and legal experts, it was decided to file a petition in the USPTO to challenge claims that would have made exports of basmati to the US difficult. This challenge was filed on April 27, 2000.

In September, 2000 RiceTec surrendered three claims objectionable to India and one more claim as well. The Examiner of USPTO also issued a notice to RiceTec to re-examine all the remaining claims. Following this, 11 more claims have been removed by the recent decision of the USPTO on August 14, 2001.

The remaining claims 8,9,11, 12 and 13 relate to three specific rice lines developed by RiceTec and were never specifically challenged by India since they did not constitute a threat.

Dr Singh said a Basmati Development Fund was set up in December 1995 and a watch agency effective November, 1996 was appointed to keep a world wide watch for new trade mark applications of Basmati rice or its deceptive variations.

The watch agency has identified a number of attempted registrations of which 15 have been successfully challenged and concluded in India’s favour in UK, Australia, France, Spain, Chile, and UAE. The remaining cases of attempted registration are being vigorously pursued by Agricultural and Processed Foods Export Development Authority in other countries.

Dr Singh reiterated that the reports and fears expressed on the Basmati patent issue were unfounded and misplaced.
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No threat to export: Chautala
Tribune News Service

Chandigarh, August 23
Haryana Chief Minister Om Prakash Chautala today ruled out any threat to Indian Basmati export following the patenting of some Basmati varieties by a US firm. He said this while talking to reporters at the Haryana Raj Bhavan here today.

While claiming that Haryana produced the best quality of Basmati, Mr Chautala said reference to rice had been made in scriptures as ancient as Ramayana. He also ridiculed USA’s attempt to patent neem, haldi and other such plants which were never grown in that country.

Mr Chautala said he was in touch with the Prime Minister, on the adverse affects of WTO and the latter had assured him of protecting the interest of the Indian farmers by imposing heavy duties on imported agricultural products.
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Auto manufacturers join CNG bandwagon

New Delhi, August 23
Increasing focus in recent years on environmentally-clean fuels for automobiles has led to major auto manufacturers in India bringing out CNG versions of their vehicles, the infrastructural bottlenecks associated with CNG supply notwithstanding.

Undeterred by the numerous roadblocks encountered in CNG conversion in Delhi and Mumbai, auto manufacturers like Hindustan Motors (HM), Maruti Udyog Limited (MUL), Ashok Leyland and Tata Engineering, visualising a future in vehicles running on non-conventional fuels, are going ahead with introduction of CNG-operated versions of their brands.

For example, Bajaj Auto has decided to gradually do away with their diesel range of three wheelers and replace them by petrol and CNG driven ones.

The Maruti Udyog Limited also introduced the CNG version of its Omni (5 seater) in March this year. The CNG kit is an attachment that makes the Omni bi-fuel so that it could be driven both on petrol as well as CNG. There is a 5 litre petrol tank for an emergency, if CNG is not available.

Hindustan Motors (HM) is targeting sales of over 1,500 compressed natural gas (CNG) version vehicles of its flagship offering — the ambassador - in the coming fiscal in Mumbai.

“The company estimates that over 20,000 vehicles will have to be converted into the CNG mode in course of the next two years in Mumbai. The next fiscal will see an immediate demand of around 2,500 CNG vehicles, figures released by the Society of Indian Automobile Manufacturers (SIAM) say.

Despite the imposition of a heavy excise duty on CNG, more and more vehicles will be shifting to the CNG mode, figures say.

HM has also tied up with Uco Bank to provide cabbies with loans for purchase of CNG vehicles.

The operating cost for diesel is Rs 2 per km while in case of CNG it is merely Rs 1.20 per km, Mr Dinesh Parashar, an industry observer says. Despite the imposition of a heavy excise duty on CNG, more and more vehicles will be shifting to the CNG mode, he says.

The decline in sales of diesel vehicles in the past two years, partly due to the strict environment regulatory norms made applicable by Delhi, Uttar Pradesh, Maharashtra and Karnataka governments has also prompted these companies to slowly phase out their diesel vehicles and replace them with petrol and CNG versions.

Tata Engineering is launching the CNG version of its flagship Indica in the current fiscal. The CNG version will be launched initially in Mumbai and Delhi.

The company has also tied-up with an overseas supplier for the supply of CNG kits for the models. Analysts point out that the Indica would be the first small car which would be going in for a CNG version.

Tata Engineering is one of the companies that have benefited from the recent SC verdict. The company has received orders for 4,590 CNG chassis as of the end of March 2001. The Delhi Transport Corporation placed orders for 890 vehicles and private operators accounted for the balance 3,700 vehicles.

Ashok Leyland is another company that has benefited from the recent SC order, having received an order for more than 5000 CNG buses. With more than 12,000 buses needed to fulfil Delhi’s requirements, the company is likely to receive more orders in the near future. UNI
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Maruti launches ‘Alto’ variant

New Delhi, August 23
India’s largest carmaker Maruti Udyog today launched a variant of its premium small car model ‘Alto’.

The 1061cc vehicle -’Alto VXi’- would sport a price tag of Rs 3.77 lakh (Ex-showroom Delhi), company officials said.

The car would come fitted with Maruti’s True Response Electronic Power Steering (EPS) to provide better steering control and comfortable driving, they said.

The ‘Alto VXi’ would add to the existing two ‘Alto’ variants currently manufactured by Maruti, the officials said and added that the new variant would retain all the features of a fully loaded ‘Alto VX 1.1’.

Maruti also produces six variants of the ‘Zen’ and four versions of the ‘Wagon-R’ models in the competitive premium small car segment.

Maruti has sold over 35,000 ‘Alto’ cars till date. The company posted a 15.4 per cent growth in sales during April-July 2001-02. PTI
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On-arrival visas at Delhi, Mumbai airports

New Delhi, August 23
As a major initiative to boost tourist traffic, the government will start issuing on-arrival visas to foreign nationals landing at Delhi and Mumbai airports in a month.

Tourism Minister Ananth Kumar today said the Ministry held a high-level meeting with Home Ministry officials recently to discuss the issue.

“We will be selecting two or three countries from all continents — America, Asia, Europe and Africa. Security and reciprocity are two angles to be considered before opening the floodgates,’’ Mr Kumar told reporters.

He described the move as progressive, which will boost tourist arrivals in the country. Initially, the facility will be extended to citizens of 16 countries which, will be later extended to more countries.

Mr Kumar said the scheme is a major liberalisation of India’s visa regime. The Home Ministry, which handles immigration procedures has agreed to the measure after going through security-related issues.

India’s share in world tourism arrivals has remained stagnant at 0.38 per cent for over a decade. Its paltry tourism arrivals of 2.6 million visitors are overshadowed by arrivals in China (31.1 million), Malaysia (19 million), Hong Kong (13.1 million), Thailand (9.6 million) or even Singapore (6.5 million).

Special counters will be set up at airports to provide Visas on the spot. There will be no need for tourists to obtain a visa from the Indian embassy concerned prior to departure.

The World Travel and Tourism Council (WTTC) says India has made little progress in promoting tourism as an instrument of growth. Tourism observers and industry leaders constantly bemoan the governments apathy in prioritising tourism.

The plan investment of less than 0.17 per cent of the total is hardly intended to give any meaningful push to the creation of a viable tourism infrastructure. But in spite of this depressing scenario, the WTTC still believes that India can, within the foreseeable future, become one of the foremost tourism centres in the world.

Over the next decade, the total travel and tourism demand in India will grow at over 10 per cent per annum, the WTTC says, making India the fastest growing country in the world in this regard. The findings of the WTTC are supported by the tremendous surge in domestic tourism that has grown from 76 million travellers in 1990 to over a 176 million in 2000.

Mr Kumar also said the Chief Ministers and State Tourism Ministers will meet on September 12 to chalk out various strategies so that tourism-related reforms can be pursued further. UNI
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A-I selloff on getting ‘proper’ bidders

Kolkata, August 23
The Centre had put on hold the proposal for disinvestment of Air-India for the time being in the absence of “proper” bidders, Union Minister of State for Civil Aviation Chamanlal Gupta said here today.

“The Hindujas are the only bidders as of now. The airlines is a national property and unless we get a proper bidder, we cannot disinvest Air-India just like that,” Mr Gupta told reporters on the sidelines of a conclave of eastern states on tourism.

Though the Tata-Singapore Airlines were also officially in the fray to acquire 40 per cent stake in the international carrier, Mr Gupta said he had read newspaper reports stating that the consortium was not keen on continuing with their bid.

Asserting that the ministry was expecting competitive bidders to come up with proposals, he said since the disinvestment of the airlines was a “national responsibility”, the Centre could not afford to let it be “underpriced” either.

“We will have to ensure that we sell the stakes at a price that is justified,” he said.

On the proposed introduction of Delhi-London flights by the Virgin-Atlantic group, Mr Gupta said his ministry could allow them to operate in the country provided it did not affect the schedule of Air-India flights to the same destination.

“We want that other airlines should come to do business here, but not at the cost of our domestic airlines,” he said.

Earlier, addressing the conclave, Mr Gupta said active participation of the private sector was being sought in the operation of Air-India and Indian Airlines.

Concurrent with the disinvestments in Air-India and Indian Airlines, we are liberalising our policy for bilateral air traffic rights on a need-driven basis.

The government had approved the long-term leasing of Delhi, Mumbai, Chennai and Kolkata airports to private investors and the exercise was under way with the help of consultants, he added.

Meanwhile, the Opposition in the Lok Sabha today attacked the disinvestment policy of the government and demanded a white paper on the entire disinvestment process.

Participating in a special debate on disinvestment of public sector undertakings (PSUs), they said there was no transparency in the deals and there was heavy undervaluation of the worth of PSUs sold.

Initiating the debate, Mr Basudev Acharya of the CPM said the government was engaged in outright loot of public assets and this should be stopped. PTI, UNI
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Spice launches call conference
Tribune News Service

Chandigarh, August 23
Spice today launched ‘Spice Call Conference’ for its corporate subscribers today. The facility would enable the conferencing service on demand whereby one can conference with upto 32 subscribers at the same time.

A monthly rental of Rs 25 will be charged per mobile number included in the conferencing facility and a flat rate of Rs 1.75 per minute per number would be applicable.

The call conference would be specially useful for project and crisis management, said Mr Vinod Sawhney, Managing Director in a press release.

To start a conference, two or more members will have to dial the specified group conference number.

As soon as the first person has called and is waiting for the other member, the IVR automatically plays a welcome note followed by an option of sending out a time based SMS to call or invite people to conference.

The nickname of people is also played and the user is given an option to call any number of them. An automatic SMS is then sent to the chosen people. An interactive voice will guide the user on the process.
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First stage ST on edible oil withdrawn
Tribune News Service

Ludhiana, August 23
The Punjab Government in a notification issued on August 21, has withdrawn the first stage sales tax on edible oil, caustic soda and papar badian. The first stage tax was imposed on July 23 with effect from July 10. The Punjab Oil Millers and Traders’ Association and other organisations had been lobbying for the past many days to pressurise the government to take back that decision.

Mr Y.S. Ratra, Finance Commissioner Taxation has issued a notification on Tuesday in this regard. According to the notification, the first stage sales tax imposed on mustard, toria, edible oils, caustic soda and paper badia has been withdrawn with immediate effect.’’

The traders have welcomed the government’s decision. Mr Sushil Kumar Jain, president, Punjab Oil Miller’s and Trader’s said,‘‘ This is a right decision taken by the state government. It would check the shifting of the trade of edible oil and other items to the neighbouring states. However, the government should consider to reimburse the taxes collected between July 10 and August 21 period. 
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Max New York Life starts operations
Tribune News Service

Chandigarh, August 23
Max New York Life Insurance , a joint venture between Max India and New York Life today announced the commencement of its operations here. The company’s life insurance services will be available in Punjab, Haryana and Chandigarh.

The CEO and Managing Director of the company Mr Anuroop Singh, said the company was offering five life insurance products that can be customised to over 200 combinations, enabling customers to choose the policy as per their requirements.

During the initial phase, the company will target its presence in the nine cities and will later extend to the rural areas. “Our emphasis will be on projecting insurance as a product to provide security and not as a tax-saving device”, said Mr Analjit Singh, Chairman of the company.

The five products being offered by the company include whole life participating, whole life non- participating, five year term renewable and convertible, easy term and endowment 20 years policies.

The policies would cover people from age group of 91 days to 100 years, whereas the premium can range between Rs 100 a year and Rs 5,78,000 a year. A 5 per cent discount for female life and 2 per cent discount for direct debit is also being provided by the company.

The common benefits on taking the company’s policies would include terminal illness benefit, loans up to 90 per cent etc.

Mr Dennis J. Pedini, CEO , Asia Region, New York Life International, said New York Life Insurance was focussing on emerging markets in Asia, Latin America and eastern Europe. “India is amongst the top priorities as the country has features like growing GDP, increasing numbers in middle class and lower penetration of life insurance”, he said.
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Pak ban on sugar imports to remain

New Delhi, August 23
Pakistan will continue its ban on sugar imports from India since it is faced with a surplus situation, visiting Commerce and Industry Minister Abdul Razzak Dawood said today.

Mr Dawood, who is here in connection with the meeting of SAARC Commerce Ministers to devise a common strategy for the Doha WTO Conference, told reporters that Pakistan had imported sugar from India when it had faced a shortage. UNI
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ROUND-UP

Nasscom to set up office in Kolkata

Kolkata, August 23
The National Association of Software and Service Companies (NASSCOM) today announced that it will set up an office in Kolkata within a few weeks to explore and offer its services to the entire eastern region and tap its IT potential.

This would be its first office outside New Delhi, where it had its lone office at present, and it planned to open three more offices to serve the western, southern and northern regions soon as per a recent decision, newly appointed NASSCOM Chairman Phiroz Vandrevala told reporters here today.

“This will ensure that potential of the sector is fully exploited in the country,” he said. PTI

Diamond rush in Canada

Vancouver (British Columbia), August 23
Mr Randy Turner, Chief Executive of Diamondex, jokes that he never answers the phone on a Friday, a popular day for takeovers in the mining sector and the day De Beers snagged his prized Canadian diamond asset last year in a hostile bid.

De Beers saw Turner’s rich Snap Lake deposit in the barren terrain of the Northwest Territories as a way of jumping into the rapidly growing Canadian diamond industry.

The South African diamond conglomerate is looking at spending half of its global exploration budget this year in Canada, where total industry production is expected to exceed $ 1 billion a year by 2005. That would be equal to about 15 per cent of the world production. Reuters

SignalTree, Comsys join hands

New Delhi, August 23
Global IT solutions provider SignalTree has entered into a strategic alliance with Comsys, a IT staffing and service solutions provider, for achieving organisational and quality-process excellence through former’s overseas development centers (ODCs).

Through the alliance, Comsys would get access to a pool of quality IT resources located in two ODCs at Delhi and Hyderabad, a company statement said here today. PTI

China may join WTO by Nov

Beijing, August 23
China is expected to realise its 15-year-old quest to join the WTO when the body meets in November in Qatar, a senior Chinese official said.

“The question regarding China’s entry has been settled, and we will behave by honouring all the rules within the WTO framework,” China’s top negotiator and Vice-Minister in the Ministry of Foreign Trade and Economic Cooperation Long Yongtu said.

China’s chances of entering the WTO grew stronger after successfull bilateral trade talks with the USA and the EU. PTI

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BIZ BRIEFS

ISO-9001
Chandigarh, August 23
Top Careers and You, popularly known as TCY has achieved a rare distinction of achieving ISO-9001 certification. TCY is the first Indian Test Preparation organisation in its segment to achieve this distinction, said Mr Kamal Wadhera, Chief Executive Officer. “We started this organisation three years back with a single minded approach of quality and results. Our certification body is TUV, Germany, which is very strict on standards, we didn’t have to face much difficulty in obtaining the certification said Mr Wadhera. TNS

IBM programme
New Delhi, August 23
IBM India Ltd today signed an agreement with Indraprastha University for rolling out IBM University Programme in its affiliated colleges. An MoU signed by Pawan Sharma, Country Manager of IBM and Prof K.K. Agarwal, Vice-Chancellor, IP, would facilitate free training for faculty and student, besides free supply of software to the university for upgrading curriculum in IT. PTI

Centurian Bank
Mumbai, August 23
Centurian Bank, will raise a sum of Rs 120-125 crore either through private placement or preferential offer in the third quarter of the current fiscal in order to enhance the capital adquacy ratio of the bank, which is hovering just little over the stipulated level of 9 per cent. “We need around Rs 200 crore for our expansion and growth programme in the coming fiscal and the issue would be made in the third quarter this fiscal,’’ said Mr V.S. Srinivasan, Director of the bank. UNI

Federal Bank
Kochi, August 23
Federal Bank has made an all-time net profit of Rs 61.04 crore during the 2000-2001 fiscal enabling it to declare 25 per cent dividend for the year. Bank’s cost of deposit came down to 8.58 per cent in the first quarter of the current fiscal and had planned to bring it down to 7.87 per cent by the end of the current year. UNI

Vijaya Bank
New Delhi, August 23
The government received a dividend cheque for Rs 7.78 crore from Vijaya Bank, which posted a 34 per cent rise in net profit to Rs 70.73 crore in the year ended March, 2001. The bank had declared a dividend of 3 per cent for the year ended march, 2001. PTI

Amartex
Chandigarh, August 23
Amartex opened its showroom at Solan, the company’s third outlet in the state, today. Earlier a fashion show was organised by the company on the eve of the opening ceremony. The models at the show displayed a range of garments manufactured by the company. TNS

Floriculture
Shimla, August 23
The PHD Chamber of Commerce and Industry in association with the Embassy of Israel and the Dr Y.S. Parmar University of Horticulture and Forestry, Solan, is Organising a 12 days training progamme on floriculture technology at Solan from August 27. TNS

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