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Tuesday,
May 21, 2002, Chandigarh, India  
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Laws to
hasten recovery from defaulters Bail to
Ketan Parekh denied Punjab to
set up economic zone HP
develops sites to boost tourism |
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Recovery
from Baddi firm restrained PM
intervention on GM soya oil import sought
Suzuki
profit jumps 15.2 pc
Long-term
prospective of Tata Tea bright
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Laws to hasten recovery from defaulters
New Delhi, May 20 The proposed legislation is intended to deal with the problem of huge amounts of taxpayer money locked up with borrowers defaulting on loans, creating Non-Performing Assets (NPAs). Critics say the recovery process has been frightfully slow, largely because existing laws ensure that defaulters are neither exposed nor punished and may continue borrowing. Although the recovery near-doubled this year to Rs 2153 crore, it was still only a tiny fraction — less than a fiftieth — of the Rs 110,000 crore owed — almost a quarter of India’s annual Rs 450,000 crore budget, an official statement said. The statement said the new legislation — The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Bill, 2002— will be introduced in the next Session of Parliament. It will deal with three distinct actions in respect of financial assets held by banks and financial institutions in the form of securitisation of financial assets, setting up of asset reconstruction companies and enforcement of security interest, the statement said. “This would enable the banks and financial institutions to recover their debts expeditiously from the defaulters,’’ it said. The government and the RBI have advised banks and financial institutions to evolve and implement a recovery policy, arrive at compromise settlements through a specially designated committee and monitor and follow up NPAs at various levels, it said. The banks have also been asked to use Lok Adalats, guidelines for which were issued by the RBI in May 2001. A Credit Information Bureau is also being set up to disseminate information on borrowers to the banks, it said. The proposed Bill will draw on recommendations made by committees headed by former RBI Governor M Narasimham and former Solicitor General of India T.R. Andhyarujina. These included enacting laws to regulate securitisation and reconstruction of financial assets, enforcing security interest and forming asset reconstruction companies, the statement said.
UNI
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Bail to Ketan Parekh denied Mumbai, May 20 Sessions Judge R B Malik turned down their plea for reasons to be separately recorded. The trio had been arrested by the Economic Offences Wing of the Mumbai police on May 15 on the charge of misappropriating Rs 83 crore of European Investments Ltd. They were remanded to the police custody till May 22 and their bail plea was rejected by a magistrate. The brokers then decided to move a sessions court for liberty. On May 18, Ketan and others alleged before a magistrate that the police had beaten them up and asked them to sign certain documents or else face prosecution in similar cases. Urging for bail, defence counsel Amit Desai, Prenov Badheka and Amol Chougale argued that their clients had admitted their civil liability and hence custodial interrogation was not necessary. They assured that Ketan and others would cooperate with the police in the probe. Opposing their bail, special public prosecutor Harshad Ponda argued that custodial interrogation of the brokers was necessary because they were capable of influencing witnesses and tampering with evidence. Investigations were in the initial stage and the police needed time to determine who had forged the contract notes as well as to trace the misappropriated funds, he submitted.
PTI
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Punjab to
set up economic zone Chandigarh, May 20 No licence will be required for imports and 100 per cent FDIs would be automatically permitted in the manufacturing sector barring a few industries. There would be a Income Tax holiday for 10 years. Although the governments of Gujarat, Andhra Pradesh, Orissa and Maharashtra have submitted proposals for SEZ yet not green field project has taken off so far. After taking over, the Chief Minister, Capt Amarinder Singh has entrusted this task to Mr Mukul Joshi, Principal Secretary, Industries and Commerce to ensure that Punjab gets SEZ in the shortest possible time, which will not only provide employment
opportunities but also bring Foreign Direct Investments in the state. Apart from generating employment, a large number of industrial units are likely to be set up in SEZ, it will provide indirect employment as a multiplier effect will be established in the state economy and service industries in tourism, leisure, construction and infrastructure activities would be set up concomitant to this. The Department of Industries has already set the ball rolling by entrusting the task of setting up of SEZ to PSIEC and a High Powered Committee under the Chairmanship of Principal Secretary Industries and
Commerce and comprising Mr P.S. Aujla, Managing Director, PSIEC, Mr Vishwajit Khanna, MD, PSIDC and Mr T.R. Sarangal, Director of Industries & Commerce, has been constituted to identify a suitable consultant for putting the project on a fast track. Already some of the Internationally renowned consultants like IL&FS, Feedback ventures, CB Richards Ellis, Price Waterhouse Co., AF Ferguson & Co., Tata Economic Consultant services, Mumbai, KP MG,
Netherlands, Meinhardt Pte Ltd (Singapore), Jurong Consultants Pvt Ltd Singapore have made presentations. The Government of Punjab after finalising the consultant is expected to submit a concept note (establishing the broad contused of the scheme) for approval from Government of India within 8-10 weeks. |
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HP develops sites to boost tourism Shimla, May 20 Himachal Pradesh has more than 1,434 hotels having bed capacity of about 32,000. The state government has announced a tourism policy. Private sector investors are being encouraged in a big way and the government is playing the role of facilitator. Tourism has been recognised as the most important sector of the hill economy and is being realised as a major engine of growth for future. This sector is already contributing nearly 2 per cent to state domestic product. With a view to promoting new unexposed areas, tourism complexes are being set up in Keylong, Kaza, Sangla, Kalpa and Kharapathar. In addition, schemes to develop sports facilities near club house Manali, development of pilgrimages, Govind Sagar lake, Bilaspur, art and craft village at heritage village Paragpur, parking at handicraft village, Kufri and tourist facilities at Solang Nallah in Manali have been taken last year. The tribal areas, which are repository of rich cultural heritage and known for its natural beauty, are also, being developed. These areas now have been opened for foreign tourists. The tribal fairs and festivals and thousand years old Buddhist monasteries like Tabo in Spiti are the main attractions of tourists particularly the foreigners. The government has exempted amusements parks, ropeways, gold courses, film cities and light and sound shows etc. from entertainment tax for 10 years. A scheme has been worked out to attract maximum private investment in this sector. With a view to developing adventure tourism in a systematic manner new rules have been framed to regulate the adventure sports so that the safety norms as per international standard could be ensured. Efforts are being made to boost water sports in the different lakes. A water sports centre has been established at Luhnu Maidan near Govind Sagar lake, Bilaspur, with a cost of about Rs 1 crore. An aero sports complex has been sanctioned for Bir with a cost of Rs 25.25 lakh. The Maharana Pratap Lake is being developed. This lake attracts about 1 lakh migratory birds every year and is an abode of various rare species. Tourism Cafeteria has been constructed there at a cost of Rs 70 lakh. This lake has been developed as major centre for water sports activities. |
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Recovery from Baddi firm restrained Shimla, May 20 Petitioner company has challenged the action of the state government issuing the notification on July 20, 2001 imposing tax at the rate of 4 per cent on the taxable turnover of such goods for a period during ending March 31, 2002 with the retrospective effect and also back tracking from the notification issued in July 1999, wherein government offered incentives under the Sales Tax Act at a concessional rate of 1 per cent leviable on the goods manufactured by new and existing units upto March 31, 2009. It was contended on behalf of the petitioner submitted that in view of the notifications issued by the government, excise and taxation officer Nalagarh passed order of charging additional tax of Rs 81,91,826 and penalty amounting to Rs 10,66,805, which was challenged before the appellate authority. It was further alleged that on March 20, 2002 assessing authority passed an order of depositing Rs 92,18,631 without any basis and only with the intention to harass and target the petitioner company. A Division Bench comprising of Chief Justice W.A. Shishak and Justice A.K. Goel issued notice to Secretary, Commissioner Excise and Taxation, Secretary Industries, Director Industries, Excise and Taxation Officer Nalagarh. Bench directed to list the matter on May 27 for further hearing. |
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PM intervention on GM soya oil import sought
New Delhi, May 20 “I have requested the Prime Minister to intervene in the matter”, Mr Ajit Singh told newspersons here today. “Rules must be formulated, system put in place and the requisite tests conducted to ascertain whether the GM-soya oil has a negative impact on the environment”, the Minister said.
TNS
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Suzuki profit jumps 15.2 pc Tokyo Suzuki, 20 per cent owned by General Motors Corp, said the group net profit rose 10.6 per cent to 22.39 billion yen in the year that ended on March 31, with group sales up 4.2 per cent at a record 1.67 trillion yen.
Reuters
BA posts first annual loss London:
British Airways today reported its first annual loss since privatisation 15 years ago, albeit smaller than expected, and said it was pinning its hopes on severe cost-cutting measures to return it to profitability. BA posted a pre-tax loss of £ 200 million for the year to March, against a restated profit of 150 million the previous year. In the fourth quarter alone, BA made a loss of £ 85 million.
AFP
Job portal on agri-business New Delhi:
Asia’s first job portal in agri-business was launched here today to provide career opportunities to prospective job seekers and recruiters besides information on farming, farm-industry and professionals. The portal — agrijobsindia.com — created by a private company, Concept Agrotech Consultants has been functionally designed to categorise the agriculture sector on the basis of input and output. This included sectors like seeds, agrochemical, farm machinery, veterinary medicines, animal feeds, biotechnology, rural credit, consulting projects and NGOs.
UNI
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Long-term prospective of Tata Tea bright GIVEN
the soaring mercury levels, my better half has replaced my regular ‘cuppa cha’, about which we had commenced a discussion last week, with a long, slender glass of iced tea. Jeeves would surely have approved, I’d like to think. But would he have approved an investment exposure in the shares of Tata Tea (TTL)? Having zeroed in on the weaknesses last week, let us move on now to the positives. To cope with a slowing domestic market, low yield on Indian farms, threat of cheap imports and increasing its global presence, TTL acquired Tetley. This has catapulted Tata Tea into the No. 2 player spot in the world tea business, behind only Unilever. Now, this has been a fairly positive move from a strategic perspective. Tetley is a powerful global brand, and the numero uno in UK and Canada, with a presence in more than 30 countries. However, from an investment perspective, there are two major issues. The first is the amount paid for the deal — will it turn out to be too costly? The second issue is the capability of the Tata management to integrate Tetley and manage a global business. The strategy is correct, the question is about implementation! Then, as far as the performance of the company is concerned, it depends on the tea market and the picture should improve, going forward. Excess supply in the domestic markets has resulted in a
significant drop in auction prices, particularly in northern India. In the south, tea prices have remained stable, while TTL has been able to improve its realisation compared to the industry average. By and large, after record low prices in the previous year, the prices are widely expected to stabilise during the current year. TTL has also filled the gap that lies within its product offerings with Tetley at the premium end and variants of Agni at the lower end of the market. Also, the long term perspective is positive for the company due to the company’s decision to focus on high margins and value added products of packet and branded tea. The performance, of Tetley is likely to improve due to the infusion of funds. TTL has put £ 10 million and Tata Sons has put another £ 20 million in Tetley. The funds will help retiring £ 20 million of debt of Tetley. Simultaneously, TTL has decided to divest its stake from non-core businesses. TTL has divested 40 per cent of its holding in Tata NYK transport systems to its Japanese JV partner bringing down its holding in the JV from 50 per cent to 10 per cent. This resulted in a capital gain of Rs 7.7 crore. The company has also exited from the Lloyd agency business and plans to wind up its operations of Tata Hitachi sales where it has an investment of Rs 0.51 crore. Then, its 100 per cent subsidiary Bambino Investment and Trading Company has merged with TTL. Finally, TTL will benefit as the excise has been dropped from Rs 2 kg to a rupee per kg. Also, a rise in import duty on tea and coffee products has been announced in the latest budget. To conclude, while TTL continues to face volume/value pressure within the domestic market, it’s going to be Tetley’s advances in global markets which will hold key to the longer term performance of TTL. With an improvement in tea prices and expected increase in exports, TTL is poised for an improved performance in the next few quarters. But, as far as the stock price movement is concerned, it could well be a long haul, thus making it imperative that this stock is better suited for investors ready to play the waiting game.
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