Sunday, July 7, 2002, Chandigarh, India







National Capital Region--Delhi

B U S I N E S S

MAIT for hardware park in Karnataka
New Delhi, July 6
The country’s software Silicon Valley may soon be the harbinger of the hardware sector as well. The Manufacturers Association of Information Technology has recommended the Karnataka Government to form a Hardware Technology Park for promoting the hardware industry.

Punjab needs to create jobs
S
trength of an economy can be better judged from the employment scenario. An economic system which is capable enough to provide jobs to its eligible youth as per their qualification at the reasonable remuneration within the shortest possible time is deemed close to perfection and is appreciated by all sections of the people.

Xerox pay-offs — a tip of iceberg
New Delhi, July 6
The startling disclosure of "improper payments" made by the Indian subsidiary of Xerox has put the spotlight on business practices in corporate India that has hitherto remained unaffected by accounting scandals in the USA.

Edge holds seminar on immigration
Chandigarh, July 6

Edge Immigration and Career Consultants specialising in immigration and international education organised seminars in Punjab, Haryana and Himachal for persons seeking immigration.




EARLIER STORIES

THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
 
AVIATION NOTES

ILS functioning not accurate
T
he mid-air collision between a Russian charter plane and a cargo plane in Germany is a timely reminder to Indian pilots and air traffic controllers to exercise extra care as instruments and parameters often function erratically during the monsoon.

LABOUR LAWS

Sufficiency of evidence in writ jurisdiction
Q: Whether sufficiency of evidence can be looked into in a writ jurisdiction?

LETTERS

Power rates hit cold storages
T
he Punjab Government for the past five years has been encouraging entrepreneurs and farmers to install cold storages by giving subsidy and liberal loans. It has given a rise to the growth of big and small units increasing the total capacities of the cold storage more than the quantity of potatoes/perishable goods available for storage in summer as well as in winter.

  • UTI schemesTop







 

MAIT for hardware park in Karnataka
Shveta Pathak
Tribune News Service

New Delhi, July 6
The country’s software Silicon Valley may soon be the harbinger of the hardware sector as well.

The Manufacturers Association of Information Technology (MAIT) has recommended the Karnataka Government to form a Hardware Technology Park for promoting the hardware industry.

“In line with the Software Technology Parks of India (STPIs), which are contributing substantially towards the growth of the software industry, the hardware industry should also be promoted by forming hardware technology parks “, said Mr S Devarajan , President, MAIT, while talking to The Tribune, here today.

He said the association is planning to send its recommendations to the other state governments as well.

The growth of the hardware industry is imperative for the growth of the overall IT industry. “For the development of the hardware sector, which is yet at its infancy stage, the government has to actively participate” .

The major recommendations given by the MAIT to the government for encouraging this sector include increased allocation towards hardware infrastructure along with formation of hardware parks.

Currently the average budget allocation by the state governments towards IT is around 2 percent. We have recommended this allocation to be increased to 5 per cent, said Mr Devarajan.

Talking about the role of the government in encouraging the hardware sector, he said, in order to increase the proliferation, three primary factors have to be laid importance upon. “These include the issue of power availability, pricing of the products and facility of usage in local languages”.

Comparing the growth of IT sector with China he said the increased usage in that country is largely on account of the facility of usage in local languages whereas in our country, desktops run English language which is used by a population of only around 500 million.

Regarding unstable power availability which affects the usage , he said we need to redesign and come out with systems which use less power . Affordability and pricing is the other major factor that needs to be addressed.

“The government and industry need to work out these issues which will promote the growth of the hardware industry”. 
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Punjab needs to create jobs
G.S. Aujla

Strength of an economy can be better judged from the employment scenario. An economic system which is capable enough to provide jobs to its eligible youth as per their qualification at the reasonable remuneration within the shortest possible time is deemed close to perfection and is appreciated by all sections of the people. It is the primary duty of the government to generate employment particularly for those who are qualified technically or otherwise and to ensure a reasonable standard of living for them.

Contrary to this, a system of governance having no programme for gainfully absorbing its unemployed work force is known as imperfect and is sure to lose confidence of the people. The Punjab Government is neck deep in the crisis of unemployment being incapable to make any recruitment in the government organised sector due to being badly in the liquidity crunch. Rather the government is taking recourse to plethora of unpleasant measures to downsize the government.

It is evident from the first Budget recently presented by the state government that it has hardly any worthwhile programme to address this core issue in the near future from which it is crystal clear that a vast majority of the unemployed —both qualified and unskilled — have been left to take their own care or have been thrown at the mercy of the private/non-government/unorganised sector which, too, is not in a position to absorb even a friction of the unemployed labour force due to their own limitations and conditions of downturn prevailing on the global scene.

It is apprehended that if the prevailing pathetic conditions on the employment front are allowed to remain unheeded for some more time and some viable strategy is not formulated for gainfully employing the unemployed preferably in the organised sector, the problem is sure to become unwieldy both for planners and the government. As “a stitch in time saves nine,” the state government should grid up its loins to arrange resources through maximum availment of institutional finance, assistance from the Government of India, the World Bank or the like bodies with minimum unpleasant measures to infuse new spirit in the shattered economy of the state which is sure to reign the menace of unemployment in the effective manner as Punjab has adequate potential via further strengthening of its promising agriculture and the processing sectors along with harnessing the IT to the optimal level.

It would be advisable not to axe the cadre strength of the low level posts though the posts at the top echelon can be curtailed to the considerable extent and such endeavour would send a right signal for the people that the restructuring has been undertaken from the top rather than from the low-rung posts which is the need of the hour. Besides, the government should take immediate steps to revitalise the industrial sector through creation of necessary infrastructure and other incentives for modernisation of machinery which is likely to absorb a large section of the unemployed.
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Xerox pay-offs — a tip of iceberg

New Delhi, July 6
The startling disclosure of "improper payments" made by the Indian subsidiary of Xerox has put the spotlight on business practices in corporate India that has hitherto remained unaffected by accounting scandals in the USA.

Analysts say a large number of Indian companies resort to unfair trade practices such as overstatement of profits, inflating project costs and diversion of company funds to pay bribes, but these go unnoticed in the absence of a tough regulatory framework.

"It has been happening in India for a long time now. This time it has come into the light just because Xerox chose to disclose it to the regulator," said corporate affairs analyst Arun Goyal.

"What has happened in the case of Xerox is just a tip of the iceberg and if a proper investigation is carried out in the business practices of companies I think we will also see a string of account scandals just like in America," Goyal told IANS.

Xerox, which has admitted overstating profits and sales casting a further shadow over corporate America, has also raked up a controversy in India by admitting its local arm made "improper payments" to win government contracts.

"In India, we learned of certain improper payments made over a period of years in connection with sales to government customers by employees of our majority-owned subsidiary in that country," the company reportedly said in its annual report filed with the Securities Exchange Commission in the USA last week.

Xerox, which holds a 68 per cent stake in its Indian unit Xerox Modicorp, stopped the payments in 2000 when it became aware of them, the company said in its filing, adding that the amount of such payments in 2000 was approximately between $600,000 and $700,000. IANS
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Edge holds seminar on immigration

Chandigarh, July 6
Edge Immigration and Career Consultants specialising in immigration and international education organised seminars in Punjab, Haryana and Himachal for persons seeking immigration.

Mr Anil Manocha, Sr. Vice President, Edge said that large number of persons are willing to migrate to Canada and New Zealand and it is surprising that inspite of information available on the Internet and through their personal sources, they are ignorant about their settlement and job opportunities available in the country of their choice.

During the recent change in the immigration laws for New Zealand a large number of applications were filed by the applicants in work permit category and most of them are ignorant about the difficulties in getting the job in their respective profession.

With the recent changes, the Canadian laws have become more stringent though the occupation classification list has been broad-based. For technical professional provisions, Canada has launched provincial nominee programmes for faster migration of the applicants, said Mr Minocha.
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AVIATION NOTES

by K.R. Wadhwaney

ILS functioning not accurate

The mid-air collision between a Russian charter plane and a cargo plane in Germany is a timely reminder to Indian pilots and air traffic controllers to exercise extra care as instruments and parameters often function erratically during the monsoon.

About three years ago, a Russian aircraft was involved in mid-air collision near IGIA. The Russian pilot was reportedly responsible for the mid-air collision in which 52 children among others perished.

The Instrument Landing System (ILS) at the IGIA has yet to stabilise. Its malfunctioning led to a troubled landing for the Atal Behari Vajpayee who was returning from Lucknow to Delhi on June 29. Commander had to depend on VHP omnirange distance measuring mechanism. The commander did not have much problem in landing because visibility was luckily satisfactory.

For certain unknown reasons, the ILS does not function as accurately as it should. On June 29, the glide path or the ray which aligns a plane to the runway while it lands was functioning erratically.

This is not the first time, nor will it be last because there is some problem that is persisting in the callibration of the equipment.

Needless problems

Passengers and visitors continue to have problems at the IGIA as agencies working there are not functioning hand-in-hand. First there was a trouble between Air India officials and Customs inspectors. It was nothing but ego problem which led a first-fighting between two groups. To have misunderstanding is one thing but to come to blows and disrupt operations is quite another.

Every unit functioning at the IGIA claims autonomy. There is no rapport among officials of different units, like Customs, the police, AAI, airlines and several other agencies. The pin-pricks will continue and smooth functioning will be at a discount until there is a trouble shooter, who is empowered to oversee and coordinate functioning of all units. In UK, Germany, the USA, France and other places, there is one person who coordinates functions of all officials, of different units and departments.

Emergency alarms

The IGIA was the scene for panic as an Indian Airlines flight from Guwahati made an emergency landing following some problem with hydraulic system. The failure of system caused another problem — oil leak — which splits all along the runway while aircraft landed. After towing the aircraft to safe parking bay, the authorities had to clean the runway because slippery runway could cause problems to commanders while landing and taking off.

Fare war

As passenger-load on certain flights on some sectors is poor, four carriers have announced reduction in fares to woo passengers. While some say it is a passenger-grabbing gimmick undertaken in off-season, others claim that discount war among airlines has begun. Similar kind of instability prevails on several international sectors. Different international airlines are selling tickets at different prices.

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LABOUR LAWS

by Praful R. Desai

Sufficiency of evidence in writ jurisdiction

Q: Whether sufficiency of evidence can be looked into in a writ jurisdiction?

Ans: Allahabad H.C. in Sher Bahadur v Union of India [2002-LLJ-I-1148] was discussing this aspect.

The petitioner was served with a charge-sheet wherein it was alleged that the petitioner fraudulently secured an appointment and reported for duty as re-engaged casual labourer without having worked prior to 1981 or without specific and personal approval of the General Manager.

The petitioner submitted his reply. Subsequently, an enquiry was held and enquiry report was submitted holding the petitioner guilty of the charges. He was issued show cause notice. He submitted its reply.

Thereafter, the petitioner was dismissed from service. Aggrieved by this order, the petitioner filed an application before the Central Administrative Tribunal which was dismissed. Again feeling aggrieved the petitioner has filed this petition before the H.C.

The petitioner submitted that the petitioner was not given opportunity of hearing in the enquiry. The H.C. did not agree with the said submission. The Tribunal has held that opportunity of hearing was given to the petitioner. This, in the opinion of the H.C. is a finding of fact and the H.C. cannot interfere with it in the writ jurisdiction.

Petitioner further submits that there was no evidence in support of the finding of guilt. This again, in the opinion of the H.C. does not appear to be correct. A perusal of the enquiry report shows that the petitioner himself was examined before the enquiry officer.

There was also documentary evidence which has been considered in the enquiry officer’s report. In that report it is stated that the petitioner got appointment without having gone any selection or screening test which is a pre-requisite condition. Moreover, the particular number of casual labour had to be sanctioned by the General Manager, which was never obtained, nor was any post sanctioned by the General Manager.

The enquiry officer has observed that unless the petitioner got some underhand dealing directly or indirectly the concerned signatory could not have signed or issued the said invalid or illegal letter of appointment.

It is settled law, said the H.C., that sufficiency of evidence cannot be seen in writ jurisdiction and all that can be seen is whether there is some evidence. In this case, the H.C. held that it is satisfied that there was evidence e.g. the petitioner’s own oral evidence before the enquiry officer as well as the documentary evidence.

In view of the above, the H.C. dismissed the petition.

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LETTERS

Power rates hit cold storages

The Punjab Government for the past five years has been encouraging entrepreneurs and farmers to install cold storages by giving subsidy and liberal loans. It has given a rise to the growth of big and small units increasing the total capacities of the cold storage more than the quantity of potatoes/perishable goods available for storage in summer as well as in winter.

The industry is passing through a very difficult time. Every succeeding year the PSEB is increasing the charges of electricity per unit consumed.

Now the PSEB has enforced a new condition to charge Rs 500 per kw per month of connected load for four months from April to July raising 300 per cent from Rs 135 per kw load already minimum being charged irrespective of the fact that even no electricity is consumed.

Secondly the PSEB has clubbed the cold storage with ice factories and kulfi manufacturing units as being the seasonal industry; to include cold storages in the same category of ice factories and kulfi units is entirely based on wrong presumptions.

If the policy of the PSEB continues to charge the enhanced rate of Rs 500 per kw load, this industry will die very soon.

M.S. Anand, Ferozepore Cantt

UTI schemes

A government concern dealing with share business had various schemes to attract investors to earn more and more interest and in competition the concern should be second to none. More so, the concern had the public confidence against getting bankrupt.

Like postal department the UTI too had initiated some schemes like monthly income schemes in 1995 as a social security measure for elders it seemed particularly but there was no bar for the others to become the member of the MIS scheme, paying the interest or dividend monthly by advance cheques. Being a government concern it looked to be safe for the elders to draw pension against the capital amount placed safe in UTI by some of the benefactors like a far of relative or the NRI progeny of the elderly people.

Since the inception of the MIS in April, 1995, the base was Rs 10 per unit and the interest varied from 12.50 per cent to down below around 5 per cent or so during 2002 when the scheme is coming to an end on March 31, 2002. The rate of Rs 10 per unit is around Rs 6 per unit or so.

The amount of Rs 90,000 had fetched Rs 1,037 pm in the beginning which has come down to Rs 375 pm which is mockery of the social security scheme of the government. That boasts of sponsoring many schemes for the senior citizens, like 1 per cent added interest for the category.

Practically it is .25 to .75 per cent. To add insult to injury the UTI has announced that they will not pay the interest from March 31 onward i.e. the end of the MIS by June 30 and the refund of the basic investment will be started from July 1 to 10, 2002 through cheques meaning thereby that July is also gone. One fails to understand as to how it can deprived hard pressed people of four months interest. Is it not the clear case of cheating for which the already cheated lot to the core people may not get into litigation?

SEBI and the Company Law Board like institutions are watching the tamasha of government concerns. The appropriate would be that NAVs of investments in MIS are given a second thought to compensate the senior citizens who had been depending on the monthly interests of their investments which is their social security in the advance age.

Does it not become a public interest litigation case?

Capt Mohinder Singh, Patiala

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MARKET GOSSIP
  • While there may be enough believers in Tata Tea’s long term story, short term players would be watching for clear signs of a breakout before making a go for the stock.

  • A foreign brokerage house has rated the D-Link stock as a fundamental buy.

  • Shipping counters that had witnessed considerable activity leading up to the divestment of SCI will come selling pressure, feels a market expert.

  • A renowned fund manager has put a trading buy on Wockhardt Life Sciences.

  • A domestic brokerage is not too convinced about Colgate-Palmolive’s prospects improving in the short term, and has rated the stock an ‘underperformer’.

  • With Vysya Bank now being the first private bank with effective management control of a foreign company, the coming months seem to hold promise for Vysya Bank, feels a research analyst.

  • A brokerage has reiterated its buy recommendation on the BPCL stock, citing upside from marketing deregulation and imminent privatisation.

  • Familiar names are back at work at the Crompton Greaves counter and the stock can continue to rule firm supported by decent volumes.

  • Mascot Systems may see some action after the company announced that it has entered into a partnership with Dalian-based Chinese IT services company Haihui Seci-Tech Company (formerly DMK).

  • There has been some more follow up institutional selling at the counter of Wipro, according to a brokerage house.

  • Reliance Industries is available at attractive valuations and that could lure long-term value buyers, feels a brokerage house.

— Ashok KumarTop

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GRAPEVINE

Zee end
With the set-top box now set to become a reality, the general feeling seems to be that a prominent television channel’s best days are now behind it. No more bundling of obscure channels as a package with one prime viewing channel, it seems.

Who applied
The most darkly talked secret on the business capital’s corporate cocktail circuit is about the huge minute retail segment applications for a recent IPO that led to oversubscription Would SEBI like to enquire?

Fun Manager?
The grapevine has is that a ‘revered’ fund manager based in Singapore is referred to as the ‘fun’ manager by contemporaries. Well, investors in some of the funds managed by his company are hardly enjoying themselves!

FIIs wolves
The grapevine has it that while their government cried wolf about the impending nuclear disaster scaring off local investors and DFLs alike, the FIIs actually bought into Indian stocks. Surely, this is not cricket! 
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BIZ BRIEFS

Co-op banks
Patiala, July 6
On a call given by the Cooperative Bank Employees Federation, Punjab, employees of cooperative banks have chalked out an agitation plan to protest against a reported decision of the state government to equalise the pay, allowances and prequisites of employees of public sector undertakings, local bodies, corporation and other public institutions with their counterparts in government service. OC

Bata units
Kolkata, July 6
Bata India Limited’s (BIL) shareholders will meet on Monday to consider a proposal for transfer of the company’s tannery and footwear divisions to separate companies. BIL officials said the meeting was convened as per the order of the Calcutta High Court which had already sanctioned two separate schemes of arrangement for transfer of their two divisions. PTI

Kenwood
Chandigarh, July 6
Kenwood offers a package which includes Single CD-cum-cassette Players with DPX 4010 (receiver with DSP), 11 band 13 step spectrum analyzer, Receiver with DSP, SFC (stadium/concert etc), 5 preset sound control, CD-R and CD-RW compatible, DNPS (Disc name preset play), Dolby-B NR, full logic mechanism, FM/AM 24 station presets. TNS

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