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Saturday,
July 20, 2002, Chandigarh, India 
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Wipro to
make foray into China
Indian
textile exports to cross $ 25 b by 2010 Diversification
entails need to ensure MSP Sharad
Pawar meets Rahul Bajaj PIDB to
impose toll tax on new roads |
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Cut in
air fares will not help tourism Shimla, July 19 The recent reduction in air fares will not help the tourism industry unless various shortcomings in the apex fare scheme, announced recently, were removed, according to the travel agents association of India. Virgin
Atlantic may get third flight
Trade
unions threaten stir if govt cuts EPF rate 76-cr
FDI proposals cleared
Samsung Elec posts
record net
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Wipro to make foray into China Bangalore, July 19 Addressing a news conference here, he said the company’s offices in Hong Kong and Taiwan had already been doing well and “a step forward would be taken to enter China as we go ahead.” The company’s office in Japan was also going strong, according to company Vice Chairman and Chief Executive Officer Vivek Paul. Company Chairman Azim Premji said Wipro had a cash profile of Rs 1,600 crore after writing off the loans in the Wipro net ISP business and hence decided to acquire Spectramind and GE Medical Systems IT Private Limited. The company would pay $ 93 million for acquiring 90 per cent of all outstanding equity shares of Spectramind, he added. Replying to question on the possibility of acquiring Karnataka Soaps and Detergent Limited, Mr Premji said the company would be acquiring only those companies which made a sense to its operations. Giving details, he said the revenue from continuing operations for the quarter grew year on year by 19 per cent to Rs 930 crore and profit before interest and tax grew by 6 per cent year on year to Rs 220 crore. The profit after loss on discontinued ISP business for the quarter was Rs 160 crore, he added. He said the Wipro Technologies Global IT services grew its revenue by 21 per cent to Rs 630 crore and profit before interest and tax by 5 per cent to Rs 200 crore. Twentytwo clients were added on during the quarter taking the total number to 240. The company also acquired four global customers including one for clinical process outsourcing. Mr Premji said the quarter ending September revenue from IT services was expected to be around $ 135 million. Revenue from Spectramind was expected to be around $ 8 million, he added.
UNI |
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Indian textile exports to cross $ 25 b by 2010 New Delhi, July 19 “Though the performance has not been very positive last year, the industry is expected to perform particularly well with a growth of almost 20 per cent this year itself,” said Mr Pritam Goel, Senior Vice-President, Garments Exporters Association. He said the industry is taking opening up as an opportunity and is ready to face global competition. The share of the Indian garment industry, it may be noted, is around 2.5 per cent of the global trade, a major contribution to the foreign exchange earnings with exports of around US $ 5 billion during 2001-02. This share can significantly increase provided the government takes a few positive steps regarding labour reforms, duty drawback rates and improvement of infrastructural facilities, the exporters say. “Reduction in the all industry duty drawback rates has given a major blow to the industry. We are not seeking any subsidy, but need a level playing field,” said Mr Virender Uppal, Chairman, Apparel Export Promotion Council. He said the transaction cost due to high incidence of local taxes, octroi, high port handling changes etc, is already increased by almost 15 per cent. “Restoration of duty drawback rates which were
prevalent prior to June 1, 2002 would bring an immediate relief to the industry.” “The garment export industry is under severe shock to learn that from January 2003, garment exports from Bangladesh and Nepal to Canada would be duty free. There is an urgent need on the part of the government to ensure that India gets a level playing field. Garment exports from our country to Canada suffer an import duty of over 20 per cent, thereby placing other countries at an edge above India.” Problems like high transportation costs, erratic power supply also need to be addressed, said Mr Goel. The exporters also said that usage of Textile Upgradation Fund in the readymade garment sector should be encouraged. “If the government provides five per cent subsidy directly to the garment exporters who invest a minimum of Rs 50 lakh in new plant and machineries each year, it can attract further investment in capital goods to the extent of Rs 2,000 crore by year 2005,” said Mr Uppal. |
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Diversification entails need to ensure MSP Ludhiana, July 19 In view of the bad experiences of other states and to ensure a smooth transition, Punjab should get a commitment from the Centre for a minimum support price (MSP), guaranteed procurement, building of a buffer stock, shortening the chain of supply between the farmer, oil-extraction industry and the consumer, imposing a 300 per cent duty on the dumping of international edible oils, besides integrating oilseed production with producing fodder for dairy animals. The Social Sciences and Health Forum, an NGO, has cautioned that the past experience of oilseed farmers in India was bitter and that Capt Amarinder Singh should ensure due commitment from the Union Government. The forum points out that oilseed farmers in Rajasthan, Madhya Pradesh and Karnataka were reportedly ruined by the decision of the government to import oil from developed countries. Dr Prem Prakash Khosla and Mr Pawan Kumar, spokespersons for the forum, said the recommendations of the S.S. Johl Committee on Agricultural Reforms rightly stressed that there was a great need to diversify from the wheat-paddy cycle in view of the debt burden on the farmers, besides the depleting water table in the state. But a cautious and multi-pronged strategy was required in this context, they added. They said in 1986-87, India produced 3.9 MT of edible oils and imported 1.5 MT (28 per cent dependency). Due to an ambitious programme of the Agricultural Ministry through its Technology Mission on Oilseeds, the area under oilseeds grew by 44 per cent from 1986- 87 to 1993- 94 and the yield per hectare grew by nearly a third. The total oilseed production soared from 11.3 MT to 21.5 MT. The fastest growth was that of soyabean - which grew from 0.9 MT in 1986- 87 to 6.5 MT in 1997- 98. Edible oil imports sank to a negligible 2 lakh MT in 1993-94. But to the utter shock of the farmers at this point, the government — allegedly on the World Bank diktats — wound up market intervention operations, stepped down all other aspects of Technology Mission, liberalised imports of edible oil, and lowered import tariffs on it. Expenditure on a centrally funded oilseeds production programme declined every year after 1996-97. After this decision, imports of edible oil grew from 0.2 MT in 1993-94 to 2.08 MT in 97-98, thus surpassing the pre-1986 figure, and India became a major importer of edible oil in the world. The biggest surge in imports came in mid-1998, when it became clear that there was inadequate rainfall in Gujarat and Rajasthan, the leading groundnut-growing states. Hoarders cornered the stocks of edible oil. Groundnut oil prices rose 82 per cent over the previous year’s price and palmolein, soya and other oils also rose steeply. The govt had no stock of its own after having discontinued the buffer stock so it could not intervene in the market. Since 1998, the USA applied even greater pressure on India to open up further. In the second half of 1998, a temporary shortage of edible oils, combined with unchecked hoarding, drove up prices and the Vajpayee government seized on this excuse to liberalise imports yet again. Meanwhile, OECD pointed out that international oilseed were being dumped a abnormally low — nearly half prices. But the government did not move to restrict the import by QRs or tariffs, whereas according to WTO norms, it could impose up to 300 per cent duty. In July, Oil World reported that India was set to replace China as the world’s largest vegetable oil importer. Still no import restrictions were imposed despite Federation of Oilseed Cooperatives and Growers in India’s requests to treble the import duties. They pointed that the result was that during the 1998-99, edible oil import amounted to a massive increase of 111 per cent over the previous year. Thus, imports surpassed by government’s own estimated of the gap between domestic supply and total demand by 3 MT. The cost of imports was estimated to be Rs 9000 crore. Due to non-intervention by the Centre, oilseed farmers in MP, Rajasthan and Maharashtra alone took away 550,000 hectares out of soya cultivation and were left with no other alternative but to divert to minor millets, bajra, jowar pulses, peanuts. Punjab had to learn lessons from these developments in the past and frame a policy accordingly, they stressed. |
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Sharad Pawar meets Rahul Bajaj Pune, July 19 Pawar spent about half an hour with Rahul Bajaj before leaving for Nigdi, company sources said. According to industry sources, Rahul’s younger brother Shishir Bajaj, who has a little less than one per cent stake in BAL, might break away from the Rs 6000 crore Bajaj group. Another mediator, Dhirajlal S. Mehta, son-in-law of Radhakrishna Bajaj (Rahul’s uncle), who is on the board of some of Bajaj group companies, is scheduled to meet Shishir and his son Kushagra tomorrow. Rahul, when contacted, said he was pained over reports appearing in the media about the developments in his family. He described most of the reports as “innacurate” and “baseless”. “I am unhappy at the news about Bajaj family’s private matters. I personally do not see how this issue matters to the public or anyone else”, he told PTI, adding the media should respect the privacy of the Bajaj family. “Sharad Pawar or somebody else talking to me cannot be a matter of concern for the public”, Rahul said. Pawar, who knows the family for past 40 years, had told PTI here last night, “I have nothing to talk on this subject as this is their (Bajaj’s) family matter”.
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PIDB to impose toll tax on new roads Chandigarh, July 19 Talking to The Tribune, he claimed that the project of widening the state highways — Zirakpur to Patiala, Mohali to Ludhiana and Ropar to Phagwara, and two highway bridges along with connecting roads on Khanna- Nawashahr road and on Jagroan- Nakodar road, was moving on the fast track. All these projects were expected to be completed before March 31, 2003. Regarding the toll tax, he said,
"We are conducting a survey to measure the total traffic volumes, likely location for toll tax collection centres and the amount of toll tax. Public willingness to pay and financial viability would also be considered before finalising the tax amount per vehicle." He disclosed that in a high level meeting held on July 15, chaired by Mr Y.S. Ratra, Chief Secretary, Punjab, the PIDB has been given charge to construct 11 km Kharar bypass worth about Rs 25 crore. The costs would be later shared with the PUDA under urban infrastructure development
plan. The work has been assigned, he said, probably to speed up the task so that bypass could be made functional along with the widening of Mohali-Ludhiana road project. The government has also decided, he said, to assign the board to build three new bus stands at Jalandhar, Amritsar and Ludhiana on build, operate and transfer (BOT) basis. The work on Amritsar bus stand is likely to start shortly, and on others would be taken up after completing the legal formalities. Regarding the performance of the board, Mr Mann asserted,‘‘ We have got about Rs 270 crore funds through one per cent infrastructure cess on petrol and agriculture produce over the past three years. With the increase in cess on petrol to Rs one per litre, the funds are expected to increase by about Rs 40 crore annually. It would enable us to raise more funds from market and to take up more projects in our hands. We have also asked our rating agency to upgrade our ratings in view of the expected increase in flow of funds.’’ In fact, the board has decided to take up a self-financing gigantic project, said Mr Mann, of constructing about 60 km ring road around Ludhiana city. The private parties would be involved and commercial sights on both the sides of proposed road would be sold, in addition to developing urban infrastructure around South city area. In the second phase, the board would focus on urban infrastructure, power distribution and health related projects, he added. He further disclosed that the state Chief Secretary had recently written to the Union Ministry of Surface Transport either to widen the Zirakpur-Ambala National Highway to six lanes on priority basis or to hand over the work to the PIDB by providing financial assistance since it was an important highway connecting Punjab, HP, Chandigarh and J&K. |
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Cut in air fares will not help tourism Shimla, July 19 The Northern Region unit of the association which met here today under the chairmanship Mr
K. S. Kohli, its President, hailed the slashing of air fares but pointed out that the allocation of seats under the scheme in different flights was too meagre to make any significant impact on the travel industry. The seats had to be booked 21 days in advance and in case of cancellation of ticket 50 per cent of the amount was deducted. Further, the tickets could not be booked through the computerised network and one had to approach the offices of the concerned airlines which was ridiculous. The association called for increasing the seats being made available under the scheme from the present 4 per cent to at least 50 per cent and there should be no deduction in the event of cancellation of booking as the period of 21 days for advance booking was too long. Briefing newsmen Mr
K. S. Kohli said that the negative travel advisories by the USA and England affected inflow of tourists significantly, though the situation was fast improving. He said the government was not doing much to counter such advisories by placing the true picture before the world. The tourism industry required more cleaner and hygienic 3 and 4 star hotels. It had been observed that even the graded hotel had been badly managed. He said the government should avoid dual rules of hotel tariffs and air fares due to which foreign tourists who were supposed to be the guest ended up paying much more than Indians. Last year the big hike in monument entrance charges also had an adverse impact on the industry. |
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Virgin Atlantic may get third flight
New Delhi, July 19 The minister’s statement came amid speculation that the British carrier was set to stop its flights to India. However, the Minister made it clear that any increase of flights, from the present 21 a week, under the air bilateral agreement with Britain will depend on Air India getting additional landing rights at Heathrow airport in London. Mr Hussain, speaking at the International Conference, Aviation 2002, organised by the CII, ruled out an Open Sky Policy but said his ministry in conjunction with the Ministry of External Affairs and the Tourism Ministry was going to come out with a ‘very broad-minded policy’ which would address region-wise requirements for air traffic. The minister said Virgin Atlantic had sent him a letter yesterday asking for a third flight a week. It was after a long time that Virgin was making this request since they had been earlier asking for seven flights which was not possible to give. Earlier, on February 12 they had said they would terminate flights in six months as two flights a week were
unviable. As for Britain’s demands for increasing the flight entitlements under the bilateral agreement, that will depend entirely on Indian carriers getting more slots at Heathrow airport. “Bilaterals cannot be one-sided. When we ask for Heathrow slots they (Britain) say that is a separate issue. We can also say the same...” While announcing that the new civil aviation policy will go to the cabinet soon, Mr Hussain gave enough indications that India will not go in for an Open sky Policy. |
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Trade unions threaten stir if govt cuts EPF rate
Mumbai, July 19 The Trade Unions Joint Action Committee (TUJAC), at its meeting held yesterday, denounced the Centre’s move to reduce the EPF interest rate to 9 per cent from the current 9.5 per cent. The committee took a serious note of Finance Minister Jaswant Singh’s recent statement favouring interest rate slash. The Centre had cut the EPF interest rate from 12 per cent to 9.5 per cent and now intends to slash it to 9 per cent “to match the decision to benchmark the rate with the average yield on government securities,’’ which was not acceptable to the unions, it said. On the contrary, the committee believed that EPF was one of the vital and dependable social securities for a worker in his old-age and it would be a gross injustice to equate this fund with commercial funds.
UNI
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76-cr FDI proposals cleared New Delhi, July 19 The major investment proposals relate to sectors such as chemicals and petro-chemicals, health, software development and information technology services and manufacture of electrical and automotive components.
UNI
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Defer loans recovery: Jakhar New Delhi, July 19 |
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Licences
must
for cattlefeed dealers Muktsar, July 19 This was stated in press note issued here. Ms Sharma said after the stipulated time, if a person was found manufacturing or selling cattlefeed without a valid licence, stern action would be taken against him. She said the step had been taken to check the sale of spurious cattlefeed leading to diseases in the cattle. The manufacturers and sellers could get themselves registered with the District Dairy Development Officer, the press note said. |
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In video: India's
software services giant Wipro Ltd posts a Rs 1.63 billion
consolidated net profit for the quarter April-June 2002.
