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Wednesday,
June 12, 2002, Chandigarh, India  
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Dabur net
falls 17.3 pc
Centre to
expand PF network Indo-Pak
standoff hits economy India
signs treaty on plant genetic resources |
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ICICI
Bank identifies North for growth Markfed
in competition for bulk grain handling Release
capital subsidy: industry Pfizer,
ICI join hands with US firm PAU
starts field trials of Bt cotton
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Centre to expand PF network New Delhi, June 11 The task of workers’ welfare would not be completed till 92 per cent of workers belonging to unorganised sector were brought within the social security net, the Minister pointed out while laying foundation stone of the EPFO building complex at Noida. The workers of unorganised sector would have to be strengthened economically as they were living in abject poverty and without a healthy economy, poverty can not be removed from the country, he said. The Noida office would provide social security services to workers of Noida, Ghaziabad and Bulandshahar industrial belt at their door-step. The setting-up of the Sub-Account office in the new building complex would be completed in 18 months at a cost of Rs 2.5 crore and it would bring most modern PF and pension facilities to the beneficiaries of Gautam Budhnagar, Ghaziabad and Bulandshahar districts. The EPFO covers 21,500 establishments having more than 1.33 million members through its 14 offices in UP and 220,000 claims were settled and 180,000 accounts slips issued in the state during the last fiscal.
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Indo-Pak standoff hits economy Ferozepore, June 11 Overseas buyers usually visit Ludhiana during this season to buy bulks of readymade garments but the escalating military tension between India and Pakistan has hit the flow of customers to this industrial city of Punjab. Vardhaman Spinning Mills Ltd, a textile maker based at Ludhiana, usually expects international wholesale buyers in the month of July. But so far such buyers have not confirmed their plans to visit India. Such an outcome would obviously influence the demand for the processed yarn and fabrics. “After years of recession, when things were looking good, it is a great setback to the textile industries of Ludhiana”, said a senior level executive while talking to TNS on telephone. Mr Buta Singh, Additional Divisional Railway Manager, Ferozepore division, said 290 wagons of the Railways, loaded with spices, sugar and other products, were stranded at various railway stations, including that at Attan, for being denied entry into Pakistan. These wagons had been booked for Pakistan from Jhansi, Meerut, Mujjafarnagar, Saharanpur and other cities. Many traders of Amritsar, who were earning good profits out of trade with Pakistan, has suffered losses amounting to crores of rupees. The situation also threatens to derail growth in the agrarian economy. In Ferozepore district alone, the crop loss assessed by the district administration till March 2002 due to the laying of mines and Army movement has been estimated at Rs 86 crore.
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India signs treaty on plant genetic resources New Delhi, June 11 The treaty will facilitate conservation and sustainable use of plant genetic resources of food and agriculture and fair and equitable sharing of the benefits arising out of their use for sustainable development of agriculture and food security. Access to plant genetic resources for creating new plant varieties is to be ensured all over the world through this treaty. Developing nations which are gene rich but economically poor will get adequate compensation through fair and equitable share of benefits arising out of the use of plant genetic resources which have been conserved by the farmers over centuries. The “Farmers’ Rights” concept will help in global recognition of the important role-played by farmers in crop improvement activities.
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Unwiring Punwire: how it sank Chandigarh, June 11 The Supreme Court had passed orders on May 9 on an SLP filed by the Punjab Wireless System Employees Union alleging embezzlements and misappropriation of funds. It was on the statement of the Punjab Advocate-General that the state had no objection if investigation was handed over to the CBI, that the apex court ordered the CBI enquiry.
Punwire has had a chequered history since its inception in 1975. It is one “successful” company to have failed so quickly. Even insiders in the management and representatives of the government and public sector undertakings
(PSU) on the board of directors of Punwire were taken aback by this decline.
Punwire began commercial production in June, 1975 and went public in 1993. Its six sister concerns also failed. Punwire showed net profit of Rs 15.46 crore in 1996-97 and Rs 6.62 crore in 1997-98 and suddenly, in 1998-99, it showed a heavy loss of Rs 137.01 crore. In fact, as on March 31, 1999, the accounts approved by Punwire Board and annual general meeting
(AGM) showed total loan funds of Rs 441.06 crore against share capital of Rs 117.01 crore and reserves and surplus of Rs 409.30 crore, including share premium of Rs 124.94 crore. Once the alarm bells rang, there began a scurry of activities. Internal enquires, investigative audits, probe by a retired High Court Judge etc. followed in quick succession. Quick analyses were done to find reasons for Punwire’s collapse. Some attributed it to its forays into fields like manufacture of long-range radio communication equipment and telecom instruments, as also venture into telecom services, VSAT services and paging services etc. But why steep fall in profitability in 1996-97 and 1997-98, in spite of increased turnover? There was heavy borrowing by
Punwire, huge funds were locked up in very high inventories and sundry debtors, post-dated cheques to the tune of Rs 112.75 crore, issued to various lenders and some of which had started to being dishonoured etc. were all happening, yet the directors remained either indifferent or ill-informed. As a consequence of investigative audit by Price Water House, which was paid Rs 65 lakh, and on the report of Justice Mrs
H.K. Sandhu, police cases were registered. At least 19 criminal cases were registered against individual officers, who were identified by Mrs Sandhu in specific acts of omission and commission. The total number of officers involved was 14, against whom FIRs were lodged. Likewise, based on special investigative audit another 18 FIRs were lodged at the Mohali police station. As the word spread about
Punwire, several known financial institutions began to distance from it. In fact, there are reports that over 650 cases were filed against Punwire in different courts for recovery of dues, including 122 cases in the consumer courts. The PSIDC is defending these cases in different courts. Many cases, it is learnt, have been stayed. Even as Punwire was wound up in July, 2000, its accounts remain unaccounted for. This is a typical case where a company has just sunk, taking with it Rs 600 crore public money. By the time the employees sounded an alarm bell that Punwire was sinking, much of the damage had been done. It is unbelievable that no bureaucrat/ director could smell something was wrong. No one cared to go deep into the functioning of Punwire or study its balance-sheets. It was the collective failure of those at the helm of affairs, say reports. One of the enquiry reports also says that the top management indulged in high living and wasteful expenditure, while the situation called for economy and stringent financial controls. The management went on an advertisement binge, hiring international players like Leander Paes and a fleet of coaches and lending their free services to the Chandigarh Lawn Tennis Association, in the name of publicity. The Punjab Cricket Association was another major beneficiary, receiving a few crores from a benign Punwire management. Eventually, the company closed in 1999 and a liquidator was appointed in July, 2000, when PSIDC equity was only 24.82 per cent. From all accounts, it transpires that the blame for the implosion in Punwire is being apportioned, primarily, to three officers: Mr Gurpal Singh, Mr Ved Prakash and Mr S.S.
Ahuja, by bureaucrats. Substantial erosion of internal controls and gradual disappearance of checks and balances also caused internal ailment and
haemorrhage, says Justice Sandhu in her report. Despite the prevailing chaos, the Punwire board continued to allow market borrowings. Interestingly, in 1994-95, Punwire raised Rs 725 crore in India and $ 30 million for the diversification programme that ultimately led to its
doom. (To be continued)
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ICICI Bank identifies North for growth Chandigarh, June 11 “Some very dramatic things have happened at our bank during the past three years”, says Mr
K.V. Kamath, Managing Director and CEO of the ICICI Bank. “Our analysis shows that only 35 per cent of the total transactions of the bank take place at the bank branches. As many 50 per cent of the transactions are conducted at ATMs while the remaining 15 per cent take place at call centres or the internet”. This clearly shows, observes Mr
Kamath, that today’s customers, especially the youth, have a distinct preference for
tele-banking. This is what has prompted the ICICI Bank to make a hefty investment in technology-driven services at its branches. “The services our bank is now offering to the customers are second to none in the world”, he asserts. ICICI Bank Ltd., after merger with ICICI Ltd., has emerged as the country’s first universal bank. It is the second largest commercial bank in the country and services a customer base of 5.5 million. It is adding nearly three lakh new customers every month. It now has nearly 500 branches, 1000 ATMs while another 600 persons have been employed at its call
centres. This is Mr Kamath’s first visit to Chandigarh and Punjab after taking over as the Managing Director and CEO of the ICICI Bank. In an interview with TNS today, Mr Kamath indicated that the ICICI Bank has identified the Punjab-Haryana-Chandigarh-Himachal Pradesh region as the most important area for its future growth in the country. He feels that this will be the fastest growing area in the country in terms of deposits as well as deployment of money. “This is the region which has an inherent energy and momentum and we want to capture that momentum”, emphasises Mr
Kamath. “In Punjab-Haryana, we want to work with companies which are working with farmers such as those dealing with
fertilisers, tractors etc. There is need for opening more branches in the rural areas and we will be working with them online. Our funding will be available for higher production of the grain by the farmers. We also want to examine projects for value addition to the agriculture and proper management of the agro products.”
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Markfed in competition for bulk grain handling Chandigarh, June 11 In a press release issued here today, Mr S.S. Channi, Managing Director, Markfed, informed that at present only 5 per cent of the Punjab wheat was stored in godowns whereas 95 per cent was lying on open plinth resulting in 8 to 10 per cent post harvest losses. The scientific storage would lead to decrease in loss of foodgrains and qualitative preservation of wheat, and ultimately the realisation of better prices. He disclosed that currently Punjab was holding over 200 lakh MT wheat worth Rs 14,000 crore. Markfed alone had wheat stocks in excess of 50 lakh MTs. In the absence of adequate demand from other states, it may take six to seven years to dispose off these stocks. Regarding the implications of the project, Mr Channi pointed out that it envisaged setting up of base depots at Barnala and Moga in Punjab and depots at Chennai, Coimbatore and Bangalore. The project of Punjab depots alone would involve an investment of approximately Rs 600 crore. Mr Channi claimed that since Markfed was in the midst of exporting wheat, it had urged the Member Traffic and ED Traffic, Railway Board to give it a ‘B’ category status from the present ‘D’ category status for speedier movement of food grains so as to facilitate quicker exports. The approval of the railways was still awaited.
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Release capital subsidy: industry Chandigarh, June 11 The PHDCCI has also called upon the state government that in view of the slowdown of economy, it must declare an industry package on the pattern of Karnataka and other states. The package should include abolition of free electricity supply to the agriculture sector, octroi and inspector raj, and release of a white paper on its preparations on VAT implementation, industrial associations say. Despite surplus bank deposits, very few projects have started in the
state. The government should make budgetary allocations for the restructuring of the State Financial Corporation to ensure a dedicated credit delivery mechanism for funding the small scale sector. The industry has also raised the issue of high transport costs for exporters. The exporting community has urged the government that to promote industrial investment in the state, it should allocate sufficient funds in the Budget for taking initiatives on subsidising cost of patenting, export market development, international linkages and subsidisation of inland freight of export consignments.
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Pfizer, ICI join hands with US firm
Mumbai, June 11 The new process chemistry system will be designed to deliver a fully automated process development solution with each participating company receiving one or more of the development tools at the end of each collaboration, according to top ICI officials.
UNI
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PAU starts field trials of Bt cotton
Ludhiana, June 11 Disclosing this, Dr K.S. Aulakh, Vice-Chancellor, PAU, told The Tribune today that the ICAR had allotted two trials each to Haryana and Rajasthan and three trials to Punjab. Hybrids-Mech-162 and Mech-915 are being tested in the fields and they are both Bt and non-Bt versions. Further PAU hybrids LHH-144 and Omshankar and cotton variety F1861 are also being tried to have comparison of the hybrids, insect and virus, spray and spacing trials. The PAU would be able to recommend these varieties only after the trials of Bt cotton. Meanwhile, cotton production in Punjab may not be according to the estimates as there has been delay in the sowing of the same and the Irrigation Department failed to release canal water for the same as recommended by the PAU experts. The Punjab Agricultural University experts had recommended the sowing of cotton from April 15 to May 15 and the Chief Minister Amarinder Singh had also convened a meeting of the senior officers of the State Government to ensure release of water for cotton.
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