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Tuesday,
July 23, 2002, Chandigarh, India  
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Maruti turns around with Rs 104.5 cr net
Scandal-hit WorldCom
files for bankruptcy
Industrial policy to focus on
large-scale investments
Nalco disinvestment
despite protest |
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Manufacturing productivity one-fifth of US level New Delhi, July 22 The productivity of the Indian manufacturing industry is around one-fifth of the US level and about half of levels in Taiwan and South Korea, reveals a study conducted by Accenture, an international management and technology services organisation.
Hind Lever
posts PAT at Rs 400.47 cr Kale Consultants Torrent Pharma Bharat Forge Jindal Polyester Sun Pharma Mirza Tanners
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Maruti turns around with Rs 104.5 cr net New Delhi, July 22 According to the company’s audited results, the net profit has jumped from Rs 55 crore announced in April 2002 largely on account of some excise cases which were decided in favour of Maruti. The financial results were taken on record by the board at its meeting held on July 19, 2002. The company also announced a dividend of 30 per cent. Maruti had suffered a net loss of Rs 269 crore on a turnover of Rs 9253.3 crore during 2000-01. The return to profitability was achieved despite a higher depreciation provision of Rs 342.9 crore during 2001-02 against Rs 322.3 crore in 2000-01. Maruti’s car sales had also grown marginally by 1.4 per cent year-on-year to 3.4 lakh units from 3.35 lakh units. Car sales in the country had remained flat during 2001-02 at 5.70 lakh units over 5.67 lakh cars in the previous year. Maruti, in a statement here, said the company obtained funds below the Prime Lending Rate to meet its short-term borrowing needs by leveraging its financial strength. An improved Yen/Rupee exchange rate management also helped the turnaround, the company said. Besides, Maruti adopted several innovative production practices which drastically improved quality resulting in low manufacturing costs, reduced warranty levels and optimal utilisation of production lines.
PTI |
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Scandal-hit WorldCom files for bankruptcy New York, July 22 The application to the US District Court for New York was filed under Chapter 11 of the bankruptcy that prevents creditors from seizing the company’s remaining assets while it works out a restructuring programme. The US’ second-largest long-distance telephone service provider intends to keep operating during the reorganisation and the
bankruptcy will not apply to its international operations. The filing comes within four weeks of disclosure that WorldCom, which has 85,000 employees and operates in 65 countries, had misstated its profits. “If we can emerge from bankruptcy without the debt load, we can have strong position in the industry. We might emerge with strongest balance sheet,” John Sidgmore, who replaced Bernard Ebbers as Chief Executive in April, told the Wall Street Journal. The company, which would continue to serve its some 20 million long-distance telephone customers and thousands of corporate clients following filing of bankruptcy protection, would have to restate its financial position for the last year and first quarter of this year.
PTI |
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Industrial policy to focus on large-scale investments Chandigarh, July 22 In an interview to The Tribune, Mr Joshi said that the Chief Minister’s Advisory Committee on Industrial Growth and Development of Relevant Infrastructure, headed by Mr A.S Chatha, had already submitted its recommendations for a new industrial policy. Now, the Industry Department is studying the report, and the new industrial policy was expected to be announced by mid August after getting Cabinet approval, he added. The new policy would concentrate on creating congenial atmosphere to attract new investors. Since most of the SSI units had already become sick and unviable, Mr Joshi said, efforts were being made to revive only those units which had a potential and could serve the large-scale units. He said there would be no place for electricity, weight and measures, boiler and pollution control inspectors to harass the units. Rather the units would be encouraged for self-compliance or to get certificates from registered chartered engineers. Regarding the effectiveness of tax sops, he claimed, ‘‘The state government would not bank on subsidies and tax breaks for industrial growth, rather it would play the role of a facilitator by implementing labour reforms, self-certification for electrical, pollution control and other measures. It would try to provide first-class infrastructure — roads, power supply, trained manpower and banking services through private participation.’’ Elaborating the plans to attract big investors, Mr Joshi said, ‘‘ We have plans to develop special economic zones, industrial clusters to tap central funds. The funds from disinvestment of government’s share in PTL, PAL and other units would be re-invested in infrastructure and to develop new ventures in the joint sector.’’ However, critics have raised serious doubts about the claimed results of the new policy. Dr Pramod Kumar, Director, Institute of Development and Communication, said, ‘‘Punjab has already lagged far behind in the race of industrial development. After making big claims about the state development through rural focal points, SSI units and IT parks in Mohali, the state bureaucracy is trying to bank upon the much elusive capital investment by large groups. However, it remains to be seen whether it will be able to resolve the questions of industrial revival and industrial stagnation in organised and public sector. The problem of unemployment has already touched alarming proportions.’’ About the objectives of new policy, Mr A.S. Chatha, a former chief secretary, Punjab, and the author of the policy blue print said, ‘‘The state has already lost valuable time and money in implementing unviable schemes. Now, the tax breaks should be given only to large-scale units with investment of up to Rs 100 crore to generate employment and develop ancillary units.’’ Mr Chatha said the state had a comparative advantage in agro-processing, light-engineering products, textile and leather units. The new areas for development should be electronic and pharmaceutical, besides biotechnology. To finance the infrastructure needs, the government should impose user charges on all public utilities, besides developing new bench marks in technical education. At least one institute of IIIT, IIT and IIM should be started in the state, he added. |
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Nalco disinvestment despite protest New Delhi, July 22 Answering to a question by Mr Akhilesh Das, Disinvestment Minister Arun Shourie in his written reply said Orissa Chief Minister Navin Patnaik had written to the Prime Minister protesting against hastening disinvestment in Naclo as the company was doing well. He said, he had replied to Mr Patnaik explaining the rationale behind the disinvestment on behalf of the government. The government had decided to bring down its stake of 26 per cent or below in all non-strategic public sector units, Mr Shourie said, adding that there was a prolonged inter-ministerial consultation before the decision
taken. Disinvestment in Nalco had been progressing well and a ‘Global Coordinator-cum-Adviser’ and ‘Joint Coordinator’ for assisting the disinvestment process had been appointed. To a question by Mr
R.S. Gavai, the minister said disinvestment process was also on for the Sponge Iron India Limited
(SIIL), and Manganese Ore India Ltd (MOIL). Also, a decision had been taken in principle to disinvest in Hindustan Petroleum Corporation and Bharat Petroleum Corporation though no time-frame for it had been fixed, he said.
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Manufacturing productivity one-fifth of US level New Delhi, July 22 The main factors that account for such performance are poor labour quality with low skill levels and discipline issues, poor quality of transport infrastructure, complexities in business transactions and high cost of power and capital. According to the study, the total factor productivity (TFP) comparisons (TFP measures the value of outpput generated per unit of capital and labour deployed) establish the fact that there has been a negligible change in the relative productivity levels over the last two decades. Mr Sudarshan Sampathkumar of Accenture said India’s share of the world exports between 1980 and 2000 grew marginally from 0.5 to 0.7 per cent , whereas during the same period other developing countries — mainly China, Thailand, South Korea and Malaysia more than doubled their share . China’s share during this period in the world exports which was slightly more than India’s in 1980, increased to more than 3.5 per cent by 2000 . As per the study, rigidity in labour laws has been a major impediment to developing a robust manufacturing sector. In contrast, labour regulations in other countries allow greater flexibility in business operations while protecting worker interests. The potential that the Indian manufacturing sector hold, however, is enormous, the study emphasises. While the rate of growth has the potential to almost double from 6 per cent to 11 per cent per annum, the employment generation in the sector can be increased by nearly 13 million. The value added from manufacturing has the potential to increase by Rs 1,50,000 crore over the next five years over the current base of Rs 2,10,000 crore. To improve the performance, the major recommendations include revamping of Industrial Disputes Act and Trade Unions Act, creating a mechanism whereby the rights of employees remain protected from exploitation and establishing a social security mechanism. The study also recommends developing a system to effectively exchange labour between surplus and deficit labour areas and elimination of major market distortions to ensure a free all-India market which allows the building up of manufacturing and operating scale. “In this regard, preferential policies or reservations for the small-scale industry need to be abolished in a timebound phased manner,” the study states. |
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