B U S I N E S S

‘Officials caused Rs 500 cr loss to PFC’
Chandigarh, June 27
The Public Sector Disinvestment Commission’s draft report may have created much hue and cry among the employees in the state, but the Punjab Government and the opposition parties failed to pay adequate attention to the causes of huge losses in the public sector units during the Budget session, which came to a close yesterday.

VSNL keeps watch on WorldCom
New Delhi, June 27
VSNL which had partnered with WorldCom for providing frame relay services in India is keeping a close watch on the events following the $ 3.8 billion scam that has hit the US-based long distance carrier.

Spice launches ‘Khelo Number 902’
Chandigarh, June 27
Spice Telecom, the leading cellular service provider in the state of Punjab, today announced the launch of their new game — Khelo Number 902 to add more spice to the life of their subscribers. To play, Spice subscribers have to simply dial 902 from their Spice mobiles.

Chinese bike plant at Manesar
New Delhi, June 27
Chinese two-wheeler manufacturing major PMI Motorcycle Company has signed a memorandum of understanding with India’s Dayang Nagakawa Motors to set up a two-wheeler production unit at Manesar complex in Haryana. The MoU was signed in presence of Haryana Chief Minister Om Prakash Chautala in Shanghai today.

CORPORATE NEWS

Wipro to set up centre
Kolkata, June 27
Wipro Chairman Azim Premji said today his company would invest Rs 50 crore for setting up a software development centre in Kolkata. Talking to the mediamen following his meeting with Chief Minister Buddhadeb Bhattacharjee here, he said his company would recruit nearly 1,000 engineers for the centre.

ROUND—UP

Ranbaxy ties up with Schwarz
New Delhi, June 27
Ranbaxy Laboratories today announced it had tied up with Schwarz Pharma to develop a new drug for treatment of benign prostate hyperplasia. In a statement the company said the licensing deal for chemical entity RBx-2258 would allow Schwarz to obtain exclusive rights for marketing, development and distribution of the product in Europe, Japan and the USA while Ranbaxy would retain the rights for other markets.

• Security cover for small units

• StanChart Bank net grows 107 pc

• Suzuki to pick up stake in Daewoo
  
  
  
  

‘Officials caused Rs 500 cr loss to PFC’
Manoj Kumar
Tribune News Service

Chandigarh, June 27
The Public Sector Disinvestment Commission’s draft report may have created much hue and cry among the employees in the state, but the Punjab Government and the opposition parties failed to pay adequate attention to the causes of huge losses in the public sector units during the Budget session, which came to a close yesterday.

Interestingly, the employees’ unions and industrial associations had submitted a number of memorandums to the Chief Minister, Capt Amarinder Singh, bringing to his notice misdeeds of the managements of the Punjab Finance Corporation ( PFC) and other corporations, but no action has been taken so far. They allege that even the annual evaluation of the PFC by the Comptroller and Audit General (CAG) over the past one decade has failed to pinpoint responsibility for causing more than Rs 500 crore financial loss to the corporation over the years.

The Punjab Border Districts and Allied Industries Association, Amritsar, submitted a list of fake industries to the Chief Minister on March 29, 2002. The association sought an enquiry as to how loans amounting to crores of rupees were sanctioned by PFC officials to their own kith and kin in the name of fake industries. It alleged that funds were misappropriated by some officials in connivance with the lower staff of the corporation, District Industry Centre managers and fake industrialists. The corporation did not care to recover money from about 300 industries and showed the amount as financial losses.

The association points out that in a number of cases loans varying from Rs 2 lakh to Rs 3 crore were sanctioned fraudulently. The officials, alleges Mr K.S. Saini, President, Punjab Border Districts and Allied Industries Association, used underhand methods to sanction loans. Nothing could be recovered due to the non-existence of such industries.

On the other hand, the properties of genuine entrepreneurs, who could not pay back loans on time due to recession or other reasons were auctioned at throwaway prices to some property dealers and their own kith and kin. The Industry Association felt that since the CM had failed to order an enquiry during the past three months, it had decided to approach the Press. Mr Saini said, “It is unfortunate that even the CAG has failed to point a finger towards any official and most of the cases have been simply ignored.”

According to a confidential report, three firms of Dera Bassi were sanctioned loans of Rs 10 lakh, Rs 14 lakh and Rs 1 crore, but now their owners are untraceable and nothing could be recovered from them. In another case, Ludhiana firm was sanctioned Rs 50 lakh on fake mortgage on factitious numbers of land. The property was just sold for Rs 2 lakh and no action has been taken against the official concerned.

Mr Saini points out that the Jagdish Sahni Committee, constituted by the previous government, found that the PFC losses had accumulated to Rs 450 crore by 1999. It recommended the closure of the corporation, but nothing was done by the government. He alleged, “The properties of Great Engineer and General Manufacturers, Surinder Oil and General Oil Mills, Ludhiana, Darbar Finishing Works, Amritsar, Jai Shri Chemical, Amritsar and Corru Pack Industries, Jalandhar were sold for petty amounts, when they failed to repay the loans.”

The report alleges the officials of the PFC are responsible not only for the downfall of the corporation, but also for the closure of hundreds of units. The properties of entrepreneurs who did not pay bribes, says Mr Saini, have been sold at much lower prices. The association has submitted a list of 384 such industries, which were sold by the PFC officials allegedly to their own relatives or were purchased against benami registries.

The association alleges that the PFC had provided loans at a much higher rate of 18-24 per cent after taking credit from SIDBI and other financial institutions at a lower rate, 8-9 per cent, during the past one decade. The association alleges that 145 out of 165 units installed at Goindwal Sahib have been ruined by the PFC, and are being sold at throw-away prices.

The association has urged the state Cabinet and opposition parties to discuss corruption in the PFC in the Assembly and order a CBI inquiry to book the corrupt officials. The government should make a settlement with the industry to recover the amount as well as disinvest its share in the corporation.

VSNL keeps watch on WorldCom

New Delhi, June 27
VSNL which had partnered with WorldCom for providing frame relay services in India is keeping a close watch on the events following the $ 3.8 billion scam that has hit the US-based long distance carrier.

WorldCom and VSNL had also got permission for providing a wide range of global data networking products, solutions and support services. The US company had recently applied to the Foreign Investment Promotion Board(FIPB) for permission to set up a manufacturing base in India. UNI

Spice launches ‘Khelo Number 902’

Chandigarh, June 27
Spice Telecom, the leading cellular service provider in the state of Punjab, today announced the launch of their new game — Khelo Number 902 to add more spice to the life of their subscribers. To play, Spice subscribers have to simply dial 902 from their Spice mobiles.

Speaking at the launch, Mr Ashok Goyal, Executive Director, Spice Telecom — Punjab said. To play a Spice subscriber has to simply dial 902 from his Spice mobile. On doing so one gets registered for the game and gets a 6-digit lucky number as an SMS. The randomly select 10 lucky winners will be informed by SMS and they will then enter a contest, wherein they will be sent a question with multiple-choice answers, on their mobiles as an SMS message. The players then have to send back the answer in the following format A for Ist choice, B for 2nd choice, C for 3rd Choice, and D for 4th choice. The player with the right answer is then entitled to free airtime as a prize. TNS

Chinese bike plant at Manesar
Tribune News Service

New Delhi, June 27
Chinese two-wheeler manufacturing major PMI Motorcycle Company has signed a memorandum of understanding with India’s Dayang Nagakawa Motors to set up a two-wheeler production unit at Manesar complex in Haryana.

The MoU was signed in presence of Haryana Chief Minister Om Prakash Chautala in Shanghai today.

The joint venture having 51:49 partnership holding of the Indian company would set up its plant with an installed capacity of 20 lakh two-wheelers per annum and is expected to go full steam by December, 2003.

The Indian partner, which will hold a majority stake, will invest $ 300 million.

Both companies have already signed an agreement to assemble two-wheelers in India, the first of it will roll out in September.

Jet offers packages
Tribune News Service

New Delhi, June 27
In a bid to attract more passengers, Jet Airways has announced summer packages which offer destinations with various facilities including those from leisure to ayurvedic massages and pilgrimages to wildlife tours.

Called the Jet Escapes, all packages are inclusive of return airfare in economy class and accommodation at several leading hotels and holiday resorts, the airlines said in a statement.

Passengers who avail the packages can book luxurious getaways at affordable prices in the exotic beaches of Goa, lush backwaters of Kerala, the dunes of Rajasthan, the cold desert of Ladakh and the Vaishnodevi shrine. All packages are valid till September 30.

CORPORATE NEWS

Wipro to set up centre

Kolkata, June 27
Wipro Chairman Azim Premji said today his company would invest Rs 50 crore for setting up a software development centre in Kolkata.

Justifying the decision, a spokesperson of CSCL here said, “This offer (Rs 110 per shares) was made at a 57 per cent premium to the average price of the 26 weeks prior to the announcement. Considering the company’s financials and its stock price performance, this is fair exit value to the shareholders.” Agencies

ROUND-UP

Ranbaxy ties up with Schwarz

New Delhi, June 27
Ranbaxy Laboratories today announced it had tied up with Schwarz Pharma to develop a new drug for treatment of benign prostate hyperplasia (BPH).

In a statement the company said the licensing deal for chemical entity RBx-2258 would allow Schwarz to obtain exclusive rights for marketing, development and distribution of the product in Europe, Japan and the USA while Ranbaxy would retain the rights for other markets. The agreement will entail payment of $ 42 million by Schwarz to Ranbaxy over the next five to six years, including an upfront payment of $ 6.3 million to be followed by royalty payments upon commercialisation. PTI

Security cover for small units

New Delhi: The PHDCCI today urged the government to have a separate social security scheme for workers in the unorganised and informal sectors instead of extending schemes under the EPF and Miscellaneous Provisions (MP) Act.

Since the EPF and MP Act is at present applicable on establishments employing 20 or more persons, the proposal to extend the scope of these Acts on establishments with lesser numbers will create problems for these units, a PHDCCI statement said here.

Small scale units employing less than 20 persons are generally run by self-employed persons with the help of a few outsiders, the statement pointed out, adding that the extension of the EPF and MP Acts on these units will add more burden because of cost and administrative reasons. TNS

StanChart Bank net grows 107 pc

New Delhi: Standard Chartered Bank today announced a net profit of Rs 384.6 crore in 2001-02, registering an impressive growth of 107 per cent.

The bank had an income of Rs 1,228.1 crore, an increase of 61 per cent. This was partly offset by an increase of 20 per cent in operating costs which stood at Rs 449.7 crore. Total assets stood at Rs 18,900 crore, a growth of 54 per cent with an increase in investments and advances of 51 per cent. UNI

Suzuki to pick up stake in Daewoo

Hamamatsu, Japan: Suzuki Motor Corp said on Thursday it would take a 14.9 per cent stake in a new Daewoo Motor, a move that should help it expand in Asia and share vehicle development costs.

Suzuki said it would pay up to $89 million for the holding, joining partner General Motors Corp in its efforts to rebuild the failed South Korean automaker, to be called GM Daewoo Auto and Technology. Reuters

BIZ BRIEFS

SBP meeting
Jalandhar, June 27
Mr B.M. Jain, Chief General Manager of State Bank of Patiala organised a business meeting at Jalandhar with borrowers and visited their units. He distributed loans for construction/renovation of houses, purchase of cars, under Karamchari Suvidha Yojna, etc., to borrowers at Personal Banking branch, here. He also addressed the managers/chief managers of the branches in Zonal Office, Jalandhar. Mr S.P. Mittal, DGM, Jalandhar zone also spoke on the occasion. Mr Mittal said that bank is introducing several new customer friendly products. TNS

Allahabad Bank
Chandigarh, June 27
All branches in Chandigarh circle — spread over Haryana, Himachal Pradesh and Chandigarh — functioned smoothly today despite the one-day strike call given by the All-India Allahabad Employee Co-ordination Committee Officers of the region ensured that all normal banking operations are carried out smoothly at all the branches of the region. TNS

Stan Autos
Ludhiana, June 27
Stan Autos, has once again been ranked number one dealer in sales, service, and customer satisfaction for the year 2001-2002 for fourth year in succession. Recently they have opened a new showroom at Ferozepore Road of Maruti cars. The Directors of the firm Dr Naresh Malhotra and Mr Anil K. Malhotra said they ensure that their customers get world class services from their staff members. TNS

Sugar mill
Yamunanagar, June 27
Saraswati Sugar Mill will disburse the balance cane payment to 50,000 farmers of this area by July 1. Mr V.K. Sachdeva, president of the mill said here today that balance Rs 42 crore as a pending amount to the farmers will be paid over the period. He claimed that this mill is the only sugarcane crushing unit in the country which had crushed 2.2 crore quintal of sugarcane this year which is a record. OC

BSE margin
Mumbai, June 27
The BSE has imposed a 25 per cent margin on Phoenix Lamps (India), Praj Industries and Vardhaman Spg & Gen Mills from today. The BSE informed its members that special margin was imposed on the basis of memberwise gross outstanding purchase or sale position (Clientwise net). UNI

Bank software
Mumbai, June 27
Opus Software Solutions today announced the launch of Electra::e-Channels. The solution enables banks and financial institutions to extend their application via multiple channels to better serve the customer on location. UNI

Brother’s arm
Bangalore, June 27
The $ 4 billion Japanese group, Brother, which offers a range of products, including fax machines, multifunction products, laser and label printers and sewing machines, plans to float a 100 per cent subsidiary in India. The company will shortly seek the nod of the FIPB for 100 per cent FDI. India Liaison Office has recommended to the parent company to bring in an FDI of between $ 6 million and $ 10 million. PTI

ST-38 form
Chandigarh, June 27
The Haryana Excise and Taxation Department has extended the validity of existing form No. ST-38 (inward) challans till September 30, 2002. TNS