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Tuesday,
September 25, 2001, Chandigarh, India
  
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RBI cuts
rate on export credit Industry
hails cut in export credit rate Rupee
emerges stronger by 13 paise Plan to
delink PF from pension Bhel bags
orders worth Rs 5,000 cr Telco,
Leyland and M&M sales dip ST-38
forms disappear KVIC to
launch Sarvodaya brand |
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Zuari
plant for West Asia
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RBI cuts rate on export credit
Mumbai, September 24 The reduction in the rates will be applicable for both pre-shipment and post shipment credits, the RBI said in a statement here. The RBI said the maximum rate the bank should charge to exporters would be 2.5 per cent below its prime lending rate (PLR) for pre-shipment credit up to 180 days and post shipment credit up to 90 days. Earlier, the ceiling rate was 1.5 percentage point below the PLR. The concession would apply to all export credit up to March 31, 2002, the apex bank added. In addition to the above facility for rupee credit, the exporters would continue to have the facility for foreign currency loan in the currency of their choice at internationally competitive rates, a RBI spokesperson said. According to market circles, the depreciating rupee and today’s announcement of lowering the interest rates for export credit would give a competitive edge to exporters and boost exports. Welcoming the reduction, Chemexcil Chairman Kishore Chokhani said the impact would be minimal, but the cost of finance would become comparable to the other exporting countries. The rupee depreciation in the last two weeks would definitely spur exports in the long run. The RBI said the rate of these loans to exporters would continue to be Libor plus a maximum of one percentage point. Thus, dollar denominated foreign currency loans can be availed by exporters at no higher than 3 per cent (Libor rate) plus 1 per cent. Assuming a PLR of 10.5 per cent, the ceiling for interest rate on export credit would be 8 per cent and adjusting for forward premia, which are currently over 5 per cent, the effective interest rates to exporters on rupee loans could also come down to as low as three per cent, the spokesperson added.
PTI
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Industry hails cut in export credit rate New Delhi, September 24 FICCI said the move would give a definite fillip to slackening exports. The CII said the reduction in rates was critical to boosting sentiment at a time when the global economic slowdown had driven down growth in exports to -1.76 per cent in April to July 2001-02. With the RBI instructing the banks to charge exporters 2.5 percentage points below their prime lending rate for pre-shipment credit up to 90 days, the CII said this was second major announcement by the RBI to revive the economy. While this move would boost export sentiment, the earlier move to permit banks to extend finance to stockbrokers for margin trading within overall ceiling of 5 per cent would infuse liquidity in secondary stock markets, the CII said. The Assocham has welcomed the reduction in interest rate of export credit across the board and said this would give boost the sentiments of the exporters. Chairman of the Assocham International Trade Committee Anil Agarwal said relief was timely as large number of export orders were being cancelled, particularly by the US importers.
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Rupee emerges stronger by 13 paise
Mumbai, September 24 According to Mr R.K. Amin, chief forex dealer at the Development Credit Bank, lifting of US sanctions has boosted the market sentiment, though it has not done much to boost the Indian economy. The reduction in interest rates for export credit by 1 percentage point across the board by the RBI, mainly impacted in forward dollar premiums which dropped sharply.
UNI
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Plan to delink PF from pension New Delhi, September 24 Presiding over a special meeting of the Central Board of Trustees of the Employees’s Provident Fund Organisation, Mr Yadav said the objective of radical changes and amendments was to create an enabling framework which would enable his Ministry to break new grounds and extend the publicly managed old-age income security schemes far beyond the traditional boundaries. The government’s effort was to upgrade the existing framework of institutions as well as the legislative and
administrative instruments to take on the challenge of closing the coverage gap in a visible and significant manner, the Minister said. Mr Yadav said the working class population was estimated at 400 million and the EPF at present covered under 30 million workers, mainly in the formal or organised sector. Taking into account civil services,
military and public sector pensions, the aggregate coverage was below 35 million, leaving 365 million workers without any social security cover or old age income support. Mr Yadav said the time has come to delink the PF scheme from the pension scheme for certain classes of workers area specific, occupation specific or industry specific categories. Under the existing EPF Act, the two schemes are inseperable for
membership. For the individuals and groups in the informal sector, while it may be too heavy a burden to pay 25.70 per cent or monthly income or wage, it would be possible and also attractive to a member of only pension scheme or the provident fund scheme depending on choice, the Minister said, adding that this would benefit several vulnerable sections of the workforce in the lower wage levels. Other significant amendments proposed include removal of the schedule head prescribed under the statute which currently limits extension of the schemes of social security only to 180 notified classes of industry and trade. The Board also accepted the 4th acturial valuation of employees pension fund and gave a relief of 4 per cent to all existing pensioners.
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Bhel bags orders worth Rs 5,000
cr New Delhi, September 24 Bhel has adopted strategies like reduction in cycle time and costs, increasing speed of response and better project management, commissioning power projects before schedule, said Mr K.G. Ramachandran, Chairman and Managing Director of the company. Although Bhel’s margins have slipped in fiscal 2000-01, the Navratna PSE has been able to buck the trend due to a resurgent order book. Bhel has over 92 per cent of the power plant and associated equipment orders and 63 per cent of the industrial equipment orders finalised during 2000-01. In the current fiscal, Bhel has secured major contracts for Rihand STPS stage II (2x500 MW) and Ramagundam STPS stage III (1x500 MW). The company has won 86 per cent of its bids for power plant orders under ICB in the domestic market since 1978. Mr Ramachandran said the company had booked export orders worth about Rs 300 crore in the current fiscal. This includes an order for three gas turbine generating units for a merchant power project placed on Bhel by an Australian subsidiary of the AES Corporation, USA. Bhel had bagged the order for Malana HEP against stiff international competition, Mr Ramachandran said, adding that it recommissioned Ganwi HEP of the HPSEB in three-and-a-half months. The company completed capital overhaul of 210 MW unit at Tuticorin TPS of TNEB. Mr Ramachandran stressed that the company had decided to give more thrust to identified high-growth business areas like hydro-business, transmission and distribution and after-market services. |
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Telco, Leyland and M&M sales dip New Delhi, September 24 Major LCV makers like Telco, Mahindra and Mahindra and Bajaj Tempo posted a double-digit drop in sales during the first five months of 2001-02, data compiled by the Society of Indian Automobile Manufacturers (SIAM) showed. Total commercial vehicles sales went down to 45,264 units from 48,161 units in the same period last year, the data showed. Sales in the LCV segment slipped 17.2 per cent at 16,570 units during the review period over 20,026 units last year. But, M&H vehicles, which comprised 63 per cent of the total commercial vehicles sales, registered a modest 1.9 per cent growth at 28,694 units over 28,135 units during April-August, 2000-01. Growth in sales of M&H vehicles, used mainly for infrastructure sectors like cement and steel as well as transportation, could be interpreted as a slight resurgence in the sluggish domestic economy. Telco recorded a 24.3 per cent drop in LCV sales at 8,715 units as against 11,526 units during the same period last fiscal. However, the company M&H vehicle sales increased by a marginal 1.06 per cent at 18,403 units compared to 18,209 units during the year-on-year period. Ashok Leyland suffered a 6.7 per cent decline in LCV sales at 125 units during April - August 2001-02 over 134 units during the same period last fiscal. But, in the M&H segment, the company managed to record a 3.6 per cent rise in sales at 10,291 vehicles against 9,926 vehicles during the year-on-year period. In the LCV segment, sales of Mahindra and Mahindra dipped by 30.3 per cent at 1,973 units during the first five months this fiscal compared to 2,831 units during the year-ago period.
PTI
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ST-38 forms
disappear The industry in Haryana faces difficulties because of laxity on the part of the state government in making transit challans in form ST-38A (outward) available to the assessees. Under the statutory provisions, a registered dealer can neither despatch out of district or the state nor import into Haryana any goods of value exceeding Rs 10,000 without issuing a transit challan in form ST-38 as sub-rule (4) of rule 43 of the Haryana General Sales Tax Rules, 1975 stipulates that “All movement of goods(except those specified in Scheduled ‘B’ to the Act) of value exceeding Rs 10,000 in single transaction relating to a registered dealer whether as a single transaction relating to a registered dealer whether as a seller or purchaser or consignor or consignee, will be accompanied by the challan in original”. Under these circumstances it was the statutory duty of the state government to have ensured availability of the transit challan in every district to allow free flow of trade and commerce as provided in the Constitution of India.
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KVIC to launch Sarvodaya brand New Delhi, September 24 KVIC Chairman Mahesh Prasad said the commission was targeting sales of around Rs 100 crore in the next 12 months from this brand. “We have decided to launch Sarvodaya in Mumbai on October 17 and have identified 10,000 retailers in the city,” he said, adding that the brand would later be launched in Delhi before being introduced throughout the country. Mr Sharma said the commission was also hopeful of setting up a separate marketing company by October. “It is in the final stages, the Agriculture and Rural Ministry has to take the decision”.
PTI |
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Oil plunges 12 pc as supply fears ease London, September 24 Fears of a faltering global economy undermining demand also helped tip prices over the edge. Brent crude oil futures dropped over 12 percent or $3.14 a barrel to $22.30 a barrel in early London trading — the lowest level for 17 months — before recovering to $23.15 by 1145 GMT. Reuters Laden golden goose for press owner Karachi: A Pakistani printing press owner has hit the jackpot, printing 1,00000 colour posters of Osama bid Laden, the world's most wanted man, after the recent terrorist attacks in the USA. Mohammed Mushtaq Okhai told SADA news agency he had earned Rs.4,00000 by printing thousands of posters of Laden. "Two bearded men, along with two youths, came to my printing press last Wednesday and asked me to print some 1,00000 colour posters of Laden and promised prompt payment," he said.
IANS Swissair to cut 3,000 jobs Zurich:
Swiss airlines Swissair today said it would cut 3,000 jobs and 25 per cent of its long-haul fleet as part of a three-year restructuring plan. The price of shares in the company jumped by 19.26 per cent after the announcement to 56.05 Swiss francs on the Zurich stock exchange.
AFP TCS in pact
with IBM NEW DELHI: Tata Consultancy Services (TCS) and IBM India have announced a partnership to jointly address the business needs of the enterprise market. TCS will market and implement IBM’s software products and services in the enterprise space, a TCS release said today.
PTI
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co
Zuari plant for West Asia Bangalore, September 24 Talking to newsmen here, he said the company had identified three locations and a firm decision would be taken in about nine to 12 months after a long-term contract for supply of feedstock was finalised. Depending upon the locality, the company would decide on its joint venture partner, he said, adding that the company would prefer to go it along. The K K Birla group company which has diversed into various fields, including cements, fertilisers, home financing, software and consultancy had already set up a joint venture in Morroco producing phosphoric acid with a total investment of $ 228 million. Plans were afoot to start another stream of production to manufacture pure phosphoric acid for use in pharmaceutical companies.
Castrol offer opens today The much-awaited open offer by Castrol for acquiring 20 per cent additional stake in its Indian subsidiary opens tomorrow at the higher price of Rs 350.02 per share. The offer will commence even as an appeal by Castrol UK and British Petroleum Plc (BP) — which is deemed as person acting in concert — is pending with the Mumbai High Court against a SEBI Appellate Tribunal (SAT) order which asks them to pay interest on the offer price at 15 per cent from August 8, 2000, till the actual date of despatch of consideration to shareholders. Slated to close on October 24, the offer size is being pegged at Rs 864.58 crore without the interest payout consideration and the offer opens after a protracted battle between the British company and SEBI on the very need to make an offer for Castrol India shareholders and then on the offer price.
Amara Raja opens plant Amara Raja Batteries’ new Greefield Automative Plant, inaugurated in Tirupati today, will produce one million batteries per annum. The Rs 45-crore new automative plant was inaugurated by Andhra Pradesh Chief Minister Chandrababu Naidu.
Haldia Petro to pay dues Financially-beleaguered Haldia Petrochemicals (HPL) is confident to pay up the interest payments of financial institutions on time, a company spokesman said today. The company is ready to meet all contractual obligations even if that results in a huge cash outflow, the HPL spokesman told PTI here.
Madura Coats buyback offer The offer from Madura Coats to its shareholders to buy back 18,044,000 equity shares on a tender basis at Rs 27 per equity share has opened. The offer will close on October 20. The letter of offer has been despatched to shareholders who hold shares as on September 5, 2001. However all shareholders, registered and unregistered are eligible to participate in the offer.
Agencies |
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‘Connect’ network Videocon meet JK Paper Donear suiting CRY-Lifespring Career portal PNB meeting CII in pact IEC Software |
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