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Thursday,
August 29, 2002, Chandigarh, India  
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Govt
offers tax relief to SSIs
180 cr for
plant renovation |
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ONGC’s
plan to double oil output To bid for
HPCL and BPCL ‘Condition
for IT park not viable’ Rice
exports come to near standstill
No
shortage of spares: Daewoo
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Govt offers tax relief to SSIs New Delhi, August 28 Announcing a couple of fiscal measures with an idea to boost investment in the small scale sector, at the third National Convention of Small Scale Industries , he said that in case of ball and roller bearing units, no excise duty will be levied
up to a turnover of Rs one crore against the current, Rs 25 lakh. Mr Sinha assured the small scale sector of all possible help and said that the demand of SSIs for relief in sales tax on electronic toys will be considered after VAT system becomes operational in all the states. He said the department of company affairs is also examining the feasibility of a Limited Partnership Act, as demanded by the small scale sector. Bicycle component manufacturing units have also been placed under zero excise duty rate, he said. The Minister of State for Small Scale Industries Ms Vasundhara Raje said the sector has great potential of employment and can achieve great heights. Talking about industrial sickness, she said the figures released by the RBI show that of the total outstandings of banks in sick units of around Rs 27,500 crore, the share of SSI units is only 17.5 per cent and within a year, the number of sick units
in this sector has come down from three lakh to 2.5 lakh. The Finance Minister also presented national awards to small scale entrepreneurs under different categories and also to banks for SSI lending. Bank of India was presented the National Award for Excellence in Small Scale Industry (SSI) lending. The total advances to the small scale industry by the bank was Rs 3,330.38 crore as at the end of March 2002, an increase of 9.76 per cent over the previous year. While the second award for SSI lending went to Punjab National Bank, State Bank of Hyderabad was conferred a special award. Small scale entrepreneurs were given national awards under various categories including-Research and Development efforts and Quality Products. It was for the first time that the banks were awarded for their efforts towards development of the small scale sector by lending. Mr Umesh Martandrao Dashrathi, Rohit Industries of Aurangabad was given the (first) National Award 2000 for Small Scale Entrepreneurs. Mr Prashant R. Gandhi, Samruddhi Engineering, Ahmedabad got the second award in this
category and Mr Vinodbhai Ambalal Soni, Hi-Tech Elastomers, Ahmedabad got the third award in this category. For Research and Development efforts in SSI (2000), the first award went to Mr Ramesh Rana Mhatre of Sachins Impex, Navi Mumbai whereas the second and third national awards went to Mr KK Sharma, Aimil Pharmaceuticals, New Delhi and Mr Narsimha Raju Rudra Raju, Mahidhara Chemicals, Medak (Andra Pradesh), respectively. The National Awards for Quality Products - 2000 were given to: Mr Satish Garg, JB Aluminium Industries, Yamuna nagar; Mr BS Anand, Anand Metals of Ropar and Mr S. Satyanarayana, Esskay Machines Tools of Hyderabad. Ms Supriya Roy of The Sugar and Spice, Kolkata was presented the Special Award for Woman Entrepreneur. Mr Vikram Hans of Multi Overseas, Panchkula and Mr Gurmit Singh Bhatia, AGK Computers Secure Prints, Ropar were among others who were given special recognition awards. The Finance Minister also released a set of publications brought out by the SSI Ministry.
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180 cr for plant renovation Patiala, August 28 A high ranking team of the corporation, which visited the Board headquarters here, has also asked the PSEB to get Residual Life accessment (RDL) studies conducted for renovating the Ropar thermal plant as well as the Shanan hydel project. According to information the team has agreed to sanction a loan of Rs 180 crore for augmenting one 110 mw unit at Bathinda. The unit that had been underperforming for sometime is being able to generate only 90 mw of power. It has been decided to replace the boiler and other instruments of the unit so that it can operate at its optimum capacity. The Board is
expected to start work on the unit in one months time after the state government provides guarantees for the loan. Besides this, the team also discussed the financing of the proposed 500 mw Lehra Mohabbat Stage two thermal project and a major breakthrough was achieved with the corporation agreeing to increase the loan share in the project. The Board will now have to put up an equity of only 20 per cent of the project cost. Confirming this, Board Member, Generation, H.S. Sahai, said the Rs 1,912 crore Lehra Mohabbat project had come within reach of the Board following this decision. The Board had already invested Rs 122 crore in Lehra Mohabbat Stage two on common facilities, including cost of land and machinery already installed there besides Rs 192 crore on other infrastructure, including placement of staff. With the corporation financing such a major part of the project, the Board would not have to spend much money initially. Mr Sahai said the project was on top of the new list of projects conceived by the Board in view of the urgent need for capacity addition due to the increased power demand. Sources disclosed that the Board had applied to the state government to stand
guarantee for the loan. Simultaneously it has made a proposal requesting the government to place orders with the BHEL for machinery on the pattern of orders placed in this regard with BHEL by the Haryana Government.
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ONGC’s plan to double oil output New Delhi, August 28 Speaking at a seminar organised by Assocham in association with KLG Systel here, ONGC Chairman Subir Raha said a more realistic estimate of hydro-carbon demand would double the demand from the present 120 million tonnes. The oil market will have to be totally deregulated to meet this demand. Mr Raha said during the 10th Plan the ONGC would invest Rs 33,500 crore in the domestic sector and about Rs 30,000 crore in overseas operations. Chairman and Managing Director of GAIL Proshanto Banerjee said there were massive investment opportunities in the gas and associated sectors involving the areas of exploration, production, cross-border trade, pipeline infrastructure and gas processing. Director of Reliance Petroleum R.K. Narang called for the delinking of the role of the regulator with emerging business opportunities.
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To bid for HPCL and BPCL
New Delhi, August 28 “We are seriously looking at opportunities (in BPCL and HPCL). We expect the government will provide us equal opportunity as any other oil and gas company in the (disinvestment) process,” ONGC Chairman and Managing Director Subir Raha told reporters here. He did not elaborate. While the government has allowed public sector companies like ONGC to bid for acquiring stake in state-run firms like Engineers India Ltd, the Disinvestment Ministry is learnt to be proposing barring PSUs from bidding for HPCL and BPCL. The Cabinet had in February decided to ban only Indian Oil from bidding for BPCL and HPCL, after the state-run refiner acquired controlling stake in IBP Co. Ltd. Like in case of EIL, in which ONGC along with state-run Bharat Heavy Electricals Ltd is in running, the government had permitted PSUs to bid for Indian Petrochemicals Corporation Ltd (IPCL) and Balmer Lawrie. Financial bids for both EIL and Balmer Lawrie are to be invited shortly. Raha said PSUs should be given equal opportunity to participate in the disinvestment as competition would bring greater value for the government holding.
PTI
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Selloff meet postponed The crucial meeting of the Cabinet Committee on Disinvestment (CCD) scheduled for tomorrow to discuss the strategic sale of HPCL and BPCL is believed to have been postponed. Sources here said the meeting could now take place on September 6. Petroleum Minister Ram Naik, who is schedule to visit Brazil, will be back in the country by then. Mr Naik was expected to make a presentation arguing against the strategic sale of HPCL and BPCL.
TNS
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‘Condition for IT park not viable’ Chandigarh, August 28 The company has reportedly decided to withdraw from the project citing that the market conditions were no more viable to set up an infrastructure project with an investment of about Rs 300 crore. It has also asked the state government to pay “appropriate compensation” for the investments in hiring consultancy services of Singapur company. Interestingly, company and Punjab Government officials are now trying to find a “mutually acceptable way” to terminate the project, though officials claim that the faulty agreement signed under pressure of some ministers in the previous government has left little scope for any party to claim damages from each other. According to official sources, the Punjab government had just signed the MoU with Mahindra and Mahindra in 1999 to set up an IT park in Mohali, spread over 15 acres. The company was expected to set up units at a cost of about Rs 300 crore. The state government had to make a contribution in the form of land and supportive services to operationalise the units. At that time, Mr Parkash Singh Badal had claimed it a major success of his government in the field of IT. He had even inaugurated the IT park, however, later on nothing happened. About six months ago, the Punjab State Electronics Development & Production Corporation Ltd. paid about Rs 5 crore to PUDA to purchase 15 acres. The market cost of the land is, says officials, about Rs 16 crore. Mr Harpal Singh, adviser to Mahindra &
Mahindra, claimed that the company was forced to review the project since the market conditions for the IT park was not viable. Further the Punjab Government had failed to fulfil its commitments. However, insiders pointed out that the company was asking the state government to transfer 15 acres in its name, before it could make any investment. Some officials with the electronics corporation opposed the move, asserting that land should be transferred only after the project takes off properly as they were skeptic about the intentions of the company which had not made any investment over the past three years. Mr Mukul Joshi, Principal Secretary, Department of Industries, said, ‘‘We are still talking to the company officials, and officially we have not received any letter from the company about its decision to withdraw from the project. As far as the issue of land transfer is concerned, we are ready to transfer the land even now if they are ready to stick to the original plan.’’ The state government was also talking to other companies to transfer the project.
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Rice exports come to near standstill
New Delhi, August 28 “There has hardly been any execution of orders with government deciding not to provide for additional rice to make up for processing of brokens from 25 per cent to 5-15 per cent,” Joint Managing Director of Satnam Overseas Gurnam Arora told PTI. He said exporters have dozens of orders at hand which have been contracted but rice is not lifted from FCI godowns with the understanding that government will provide additional quantum to compensate for sorting of brokens. Now that the government has asked traders to purchase additional rice from the open market at a price which is over Rs 1000 a tonne higher, these orders are in a limbo, Narender Prakash Chairman, Rice India Exports, said. Another trader, Cosmos International’s Anil Agarwal, said even if the government wants to go ahead with the policy, it should exempt the deals which have been clinched before the circular was issued on August 20 this year. Mr Arora said a major casualty will be double polished rice which will now be quoting at around $ 175-185 a tonne, more than $ 15 higher and bringing it closer to Vietnam. He said so far India has been trying to establish a customer base in the midst of major buyers in south-east Asia who buy value added rice like sortex, polished and varieties with lesser broken content, but the process will not be severely hit and trade will be restricted to sub-Saharan African countries like Ghana. Mr Agarwal said industry has petitioned the Union Food Minister Sharad Yadav to revoke the new policy or at least exempt the orders at hand. Mr Prakash said there is ambiguity in the circular which says it is valid from immediate effect but does not mention the deals for which line of credit has already been opened. Traders will now have to request the buyers to give relaxation of a couple of dollars or else it will have to make do with lesser margins with the only other option being cancellation of orders. Traders feel this, however, can lead to erosion of customer base at a time when India is trying to make its mark in the global trade of non-basmati rice. Vice-President of Adani Exports Atul Chaturvedi said it will result in more rice being exported “as it is” without any processing, which would mean higher volumes for 25 per cent broken rice. At present, India exports nearly four lakh tonnes rice every month, 50 per cent of which is 25 per cent broken and the rest is 5-15 per cent brokens, polished and sortex. There is a limit to which India can extend its trade in 25 per cent brokens as demand in countries like Malaysia and Indonesia is primarily for five per cent broken and polished rice. This can result in Indian exports falling to around 2.5 lakh tonnes a month due to traders reluctance to buy additional rice from the open market at higher price and greater competition from Thailand and Vietnam, Arora added. Many traders were in the market due to the incentive of selling the sorted out brokens in the domestic market at a higher price than at which it was purchased by them from the FCI.
PTI
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