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Thursday, September 12, 2002,
Chandigarh, India  
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Govt to go slow on disinvestment
Sell-off row to widen fiscal deficit
People allergic to euro: study
Now aircraft with bullet-proof doors |
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Punjab far from ST collection target
Gold falls by Rs 90
BSE-DSE merger called off GRAPHIC: Plan Outlay of States & Union Territories for 2002-03
Hudco slashes interest rates
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Govt to go slow on disinvestment New Delhi, September 11 A strong perception is emerging in the government circle as well as in the BJP, which is leading the coalition, against any hasty decision in the disinvestment of oil companies with Assembly elections due in nine states in the next 16 months. Many senior BJP leaders believe that the party can not afford to allow the Opposition to take advantage of the issue with elections ahead. “Disinvestment is a continuing process and as far as the disinvestment in oil sector PSUs is concerned, a general impression has been created in the minds of the people that the government is trying to sell-off disregarding security concerns. Therefore, the government should disinvest in those areas which are acceptable to the people,” a senior BJP leader said. “We have to be sensitive to the situation emerging out of the controversy sparked due to Defence Minister George Fernandes expressing reservation over the disinvestment in HPCL and BPCL and should not allow the Opposition to hijack the issue,” he said adding “the best way is to review the whole issue of disinvestment in oil PSUs and try to strike a balance.” Another BJP leader pointed out that on principle nobody, including the main Opposition party Congress, is opposing disinvestment programme, but a democratically-elected government, especially a coalition government, cannot afford to ignore the “sentiments and suggestions” emerging from various quarters of the alliance as well as the government. “It is not confrontation between one group of ministers with another. It is a question of consensus and a need to take a decision which is acceptable to the people,” he said adding that “people should also realise that disinvestment and economic reform is the key for boosting the Indian economy.” Meanwhile, some officials in the Ministry of Petroleum suggested a way out to the government to reduce its stake below 50 per cent in the two oil PSUs without hurting the sentiments of those who are opposed to selling the profit-making companies to private hands. They suggested the implementation of the G.V. Ramakrishna Disinvestment Commission’s suggestion for off-loading government stake in the PSUs through the Indian Financial Institutions. “This would mean, the government, while ensuring that it gets out of direct management control of the PSUs, can at the same time ensure that the stocks are in the hands of Indian Financial Institutions, where it has indirect control,” a senior BJP leader said. He said for functional autonomy of the PSUs, the government could bring about an amendment in the parliamentary procedures to prevent interference of Public Undertakings Committee and the Comptroller and Auditor General of India. When contacted, a former chief of the BJP’s Economic Cell, Mr Jagdish Shettigar, said although the party was in favour of disinvestment and the government, too, was committed to it, the Centre could not ignore the concerns expressed by Mr Fernandes. “With the cropping up of new issue relating to national security in the specific context of disinvestment in oil PSUs, there is a need to have integrated approach and that is why the government has deferred the disinvestment of oil PSUs for three months, during which the issue is likely to be resolved,” he said. “The issue has been raised by none other than the Defence Minister and can a democratically elected government ignore such a sensitive issue,” Mr Shettigar added. |
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Sell-off row to widen fiscal deficit
New Delhi, September 11 The stalling of disinvestment may lead to downgrading of India’s economic outlook, while the Budget target of Rs 12,000 crore from the public sector sell-off proceeds may not be achievable, the Institute of Economic Growth said in its latest issue of the Monthly Monitor. The UTI bailout and the proposed financial package for the ailing IFCI and IDBI could result in a higher fiscal deficit and it could be well above the targeted level of 5.4 per cent in the current fiscal, the report prepared by leading economists, including Prof B.B. Bhattacharya said. Observing that the buoyancy in the exports sector is continuing with a double digit growth rate for the third consecutive month, the monitor says this may be due to recovery in global exports after a long lackluster period. On the other hand, imports have declined sharply in July, 2002, mainly due to lack of industrial demand. This trend in both export and import might reverse given the continuous appreciation of the rupee-dollar exchange rate and the expected increase in the world oil prices due to the US-Iraq conflict. According to the Monitor, the recovery in the industrial sector is real. During April-June, 2002, the index of industrial production has shown a growth rate of 4 per cent compared to 2.2 per cent for the same period last year. The current drought situation might affect the demand for consumer goods to some extent. But the resilience in the capital goods and core sectors and rise in the credit offtake would help the industrial recovery in the coming months. The institute forecast that inflation would go up to about 4.3 per cent (WPI) in the next three months, from the present level of 3.4 per cent. The current high growth in money supply, together with an increase in the prices of food and primary articles due to drought in most part of the country would lead to rise in the overall inflation rate in the coming months. Industrial growth is put at around 4.2 per cent, against four per cent in June, while PLR is expected to fall marginally to 11.2-11.4 per cent from 11.5 per cent in August. The rupee is forecast to depreciate slightly to Rs 48.6-49 to a dollar in the next three months, from the present level of 48.49, while the foreign exchange reserve would grow further. The current forex reserves are placed at 61.5 billion dollars. FII inflows is expected to be positive. Such inflows in May were $ 87 million dollars. The growth rate of exports is forecast at 6.7 per cent in July while a negative growth of minus 0.8 per cent is expected in imports. The growth rate of imports in July was minus 5.65 per cent.
UNI
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People allergic to euro: study
London, September 11 The study by scientists at the University of Zurich showed that one and two euro coins released large quantities of nickel if left in prolonged contact with the skin. Nickel can cause serious allergic reactions, including eczema, particularly in people who are sensitive to the metal. The study enlisted the help of seven patients. "After 48 and 72 hours with these coins fixed by transparent tape onto their skin, all seven patients showed a strong reaction with erythema, infiltration and formation of vesicles," the researchers wrote. It said the culprit was sweat which eroded the metal in the coins and released up to 320 times the amount of nickel allowed under the European Union Nickel Directive. However, the Nickel Development Institute promptly hit back, arguing people were unlikely to be clutching the offending euro coins for so long and that the study was, therefore, flawed. "The nickel industry does not consider that normal handling and use of coins constitutes prolonged contact," it said . Britons are deeply suspicious of the euro which replaced national currencies in the pockets of citizens of 12 of the EU 15 member states in January, 2002.
Reuters
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Now aircraft with bullet-proof doors
Singapore, September 11 Qantas Airways Ltd, Australia's biggest carrier, has similar plans for the doors of its fleet. U.S. airlines have led the way in booking fortified doors, in line with Federal Aviation Administration (FAA) requirements introduced after the September 11 attacks that were carried out using three hijacked passenger planes. "In the next few months, we plan to install new fortified doors," an SIA spokesman said in response to a Reuters query. "We are working with the aircraft manufacturers on their development." He said the cameras "will be designed to monitor the area outside of the cockpit". Qantas said on Wednesday it expects to fit bullet-proof doors on its Boeing 747s that fly the international routes by the FAA's April, 2003, deadline. It plans to roll them out across its entire fleet after the 747s are fitted but no timeframe has been set. "We've already made interim modifications to cockpit doors on our international fleet," a Qantas spokeswoman said. "We did that pretty quickly after September 11 last year." SIA said it had installed deadbolts on existing cockpit doors and fortified them in the months after September 11, but that the new doors would be purpose-built to enhance safety and security. Citing security reasons, the spokesman declined to reveal further details or the costs involved. Boeing Co, which supplied 78 of the planes in SIA's fleet, has said the cost of a reinforced cockpit door kit ranges from $26,000 to $40,000 depending on whether the aircraft is narrow-bodied or wide-bodied. SIA's 16 other planes were made by Airbus SAS. Separately, SIA said demand to the United States was weaker this week. "But we will not be cancelling any flights," the spokesman said.
Reuters
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Punjab far from ST collection target Chandigarh, September 11 According to senior officials in the Excise and Taxation Department, the state has registered a growth of mere 4-5 per cent in sales tax collection during the April-June quarter against 15-20 per cent target growth. Talking to The Tribune, Mr S.K. Ralhan, Additional Commissioner, Excise and Taxation, Punjab, said the sales tax collection was lagging behind against the target. He said,‘‘the state will be lucky if the tax collection could be around Rs 3,000 crore against the target of Rs 3,500 crore fixed for the current fiscal year. Last year the state had collected about Rs 2,800 crore.’’ He admitted that the department was facing a fall in tax collection on account of large scale tax evasion and exemption to various industrial units. The state was witnessing a decline in tax collection against a growth of 15-20 per cent in Haryana and other neighbouring states. Insiders said the state government had failed to implement the reforms in the excise department. While the VAT system will be implemented from April 1, 2003, the state was still busy in putting infrastructure to collect entry tax that would be dismantled with the implementation of the VAT system. Due to stiff opposition from the industry, the state government has failed so far to implement the entry tax imposed on paper, yarn and steel goods. In this regard, the officials admitted that due to some legal problems the issuance of notification had been delayed despite clearance from the state Cabinet. The officials claimed that industrialists dealing in yarn and medicines were among the biggest tax evaders. Mr N.K. Arora, former chief secretary, Punjab, said, ‘‘the total sales tax collection in Punjab was about Rs 60 crore in 1969. It should have reached about Rs 12,000 crore if all factors, including inflation and growth in the income, are taken into account. In fact, the state is facing a large scale tax evasion.’’
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Gold falls by Rs 90
Mumbai, September 11 The steep fall in gold in the global markets was a result of heavy offering by long-position holders who had bought the metal at the higher rates. As the prices rallied during the last couple of days, they found the right opportunity to book profit by selling at higher level, traders said. Standard gold opened sharply weak at Rs 5,210, but tended to regain some of the losses towards the fag-end due to some local buying and closed at Rs 5,220, still showing a huge loss of Rs 90.
PTI
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BSE-DSE merger called off
New Delhi, September 11 The DSE will soon call a Board meeting to formally decide the next course of action in a week’s time after the aborted mission, official sources told PTI here. The merger proposal was virtually called off as the BSE asked for more time.
PTI
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ITC soyameal CM in Belgium NPA declines Coin mela Tariff hike flayed GTB dividend BSE margin Award for Tisco New Tata vehicles Rice millers |
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Video
New Delhi: George Fernandes today announced that the country’s light combat aircraft (LCA) will make its debut at the next “Aero Show” to be held in Bangalore early next year with the indigenous Kaveri engine.
Attaching importance to the flights of the LCA, specially with the indigenous engines, he said at least two to three aircraft would take part in the “Aero Show”, demonstrating the strides made by the country in the field of defence production.
The Defence Minister was addressing a “National Seminar on Defence-Industry Partnership: Taking Stock” organised by the CII here.
TNS