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Friday,
July 5, 2002, Chandigarh, India  
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TRAI
slashes WLL rental to Rs 200 HMT
Tractors plans VRS Silverline
among 42 proposals cleared Now bike
with 100 km mileage
Groups
may sue Burger King, McDonalds
Amrutanjan
set to enter US market |
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TRAI slashes WLL rental to Rs 200
New Delhi, July 4 “The authority has specified a monthly rental of Rs 200 per month in the standard tariff package as against the rentals fixed last year which gave a range of Rs 450-550 per month as floor and ceiling,” a TRAI statement said here. The monthly rental has been specified as part of the standard tariff package which must be mandatory on offer to customers, it said. In addition, the service providers will now also be able to offer alternative tariff packages similar to other tariffs of basic services and all other telecom services provided in the market. The decision assumes significance as the new rentals are likely to make WLL services much more affordable. TRAI stipulated if the handset was provided by the service provider, then the payment for that handset could either be taken as a refundable deposit with a ceiling of Rs 6,000 or an additional monthly rental ceiling amount of Rs 50. The authority will also monitor the situation so that “predatory pricing” did not take place. Listing out the considerations for the much-awaited new monthly regime for WLL, which is the result of the first annual review of rentals by the authority, TRAI said, “the new regime represents a significant departure from the existing regime.” Last year the authority had specified a floor and ceiling for WLL monthly rentals in view of the major uncertainty about the underlying costs and the roll-out plans, and large range for the cost based rentals that were calculated from the data submitted by the service providers. “This year there is much greater certainty regarding the costs and other underlying parameters, including roll-out plans,” it said. For instance, it said, costs of one service provider which had wide presence in the country were based on actual purchase order, and another estimate was based on certified prices offered by the equipment vendors. “Last year the basic thrust was to encourage efficiency and growth of the service while not giving the incumbant opportunity to use its market dominance and special advantages such as ability to use common infrastructure to prevent growth of competition,” it said. It pointed out that in the current changed scenario wherein the cost estimates of the emerging competitors were already below those of the dominant incumbant, the latter’s ability to put competitors at a serious disadvantage seemed restrained.
PTI
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HMT Tractors plans VRS Pinjore, July 4 Officials of the company claim that HMT Tractors,
Pinjore, requires about Rs 75 crore for upgradation and VRS to about 500 employees out of about, 3000 employees. The remaining funds can be used for offering VRS to about 1500 employees in other
units. HMT Limited has already decided to disinvest up to 74 per cent of the equity in four subsidiaries of the group— HMT Machine Tools, HMT Watches, HMT Bearings and HMT Chinar Watches— and plans to utilise that fund to strengthen its core business of tractor manufacturing. Mr
C.N. Dhar, Executive Director, HMT Tractors and HMT Machine Tools here, says,‘‘ We are all set to give a major thrust to tractor business by cutting cost of production and through modernisation of the assembly line. No doubt, the company is passing through difficult phase due to slump in tractor market and generation of over capacity in the industry. However, we are making efforts to streamline the production. The annual turnover of the company was around Rs 250 crore with a profit of Rs 1.5 crore though we are just using less than 50 per cent of the total capacity.’’ In fact, only the tractor and ball and bearing divisions are making profits. The other divisions of machine tools and watches are running into losses. The insiders point out that these divisions have failed to upgrade themselves. Even in the tractor market, they say, the other producers are facing problem. Punjab Tractors has been already put on the disinvestment path and Mahindra and Mahindra is looking for restructuring. Mr Yashpal
Bakshi, President, HMT Workers Union, blames government policies and the lack of investment funds for the present
scenario. He says,‘‘ Since we have to take about Rs 200-250 crore from the dealers, the whole chain of production has been severely affected. The market for tractors in the country has dipped during the past few years and we are able to sell not more than 10,000 tractors per annum.’’ The union leaders point out that during the past two years, about 1500 employees of HMT Tractors and HMT Machine Tools,
Pinjore, have opted for VRS under the government sponsored scheme. But still there is surplus labour in the plant affecting the financial viability of the company. Mr Bakshi claims,‘‘ Number of employees are ready to opt for
VRS. The government should work out a package to get rid of surplus staff, especially those who have attained the age of 58. The retirement age at present is 60 years.’’ Moreover, the wage bill could be substantially reduced, he adds, if the wards of employees are adjusted in their place at a lower salary. Observers admit that HMT Tractors has a strong brand appeal and an efficient network of 300 dealers and a collaboration with 18 state agro industries to offer after sales service. The strong R& D division has launched tractors in the range of 25 to 75 horse power over the years. However, the fresh lease of life can be ensured only with an additional investment and labour restructuring. It is possible only through entering into a joint venture with a strategic partner, as the government is not ready to provide funds.
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Silverline among 42 proposals cleared
New Delhi, July 4 The proposals were cleared by Murasoli Maran on the basis of recommendations made by the FIPB, an official release said here. A Rs 50 crore proposal of Mauritius-based company Rama Mines for picking up 100 per cent equity in Mumbai-based Wasper Trading Ltd for mining exploration was also cleared. Another proposal approved was that of French company Aldes Aeraulique’s Rs 25 crore for picking up 100 per cent equity in its Indian arm, it said. Other proposals cleared included a proposal of Japan Airlines to increase its equity from 74 per cent to 100 per cent at Rs 0.052 crore in Indo-Japan Air Services Pvt Ltd for travel and tourism related services. Mauritius company JP Morgan Services Asia Holdings Ltd for increasing its foreign equity from 96.81 per cent to 100 per cent in J P Morgan Services India Pvt Ltd was also given the nod, the release said. Franklin Templeton Holdings Ltd proposal to acquire 100 per cent share capital of Pioneer ITI AMC Ltd in Templeton Asset Management (India) Pvt Ltd too was cleared. The proposal did not envisage any fresh foreign exchange inflow. German company Siemen’s proposal to extend its technical collaboration agreement with BHEL was also approved.
TNS, PTI
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Now bike with 100 km mileage
Bangalore, July 4 “We will launch Hero bike in three weeks. The fuel economy will be its underlining key differentiator”, Pankaj Munjal, MD of Hero Motors told reporters here. “It will be in line with the Hero group’s identity”. The company has spent Rs 20 to Rs 22 crore to develop the bike, which will be a 75 cc, four-stroke four-geared model. “We will produce it (Hero bike) in large numbers”, he said, but declined to give a figure. “We have not decided on the price”. The Automotive Research Association of India (ARAI) had already certified the bike, Munjal added. Stating that the slowdown had not affected Hero Motors, he said in the first quarter (April-June 2002), the company recorded a 45 per cent growth in turnover and 38 per cent growth in number of units sold, compared to the same period last year. Company Vice-President Sanjay Bharadwaj said Hero Motors was targeting a 100 per cent growth for the fiscal 2002-03. Earlier, Munjal launched Hero Ezee SX, a 75 cc scooterette, for South India, priced at Rs 25,050 (ex-showroom). To acquire Italian unit
Hero Motors is all set to take over the motor scooter division of an Italy-based company, at a total acquisition cost of between Rs 50 crore and Rs 80 crore, top company officials said today. The deal with the Italian company, a leader in the motor scooter segment in Europe, was expected to be signed within next fortnight, Hero Motors Managing Director Pankaj Munjal and Vice-President Sanjay Bharadwaj told reporters here. It was noted that motor scooter has body of a scooter but engine of a motor cycle with unique difference being that it is gearless and has automatic start.
PTI
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Groups may sue Burger King, McDonalds
Los Angeles, July 4 The lawsuits by the Earth World Watch and another group of environmentalists and academics aim to force the world’s largest sellers of what Americans call French fries to either include the warning or reformulate the ingredients, the report said yesterday. The actions stem from a recent Swedish Government study that found high levels of the carcinogen acrylamide in fatty starchy foods cooked at high temperatures, such as fries. In one test, McDonald’s French fries were found to contain 300 times the amount of acrylamide allowed by the Environmental Protection Agency for a glass of water, the report said. The groups have notified California’s Attorney General of their intent to sue under California’s Proposition 65, which requires manufacturers to warn consumers of toxic chemicals in their products. According to the report, the Attorney General’s office is studying the matter and is considering filing its own lawsuit.
DPA
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