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Sunday,
November 24, 2002, Chandigarh, India  
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India has strong fundamentals: Jalan
SBI lowers income limit for personal loans
NCDC to go for direct funding
Give power sector priority in new policy |
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Adopt new technology: Central Bank CMD JCT to take over Baroda Rayon plant
FICCI plan for food processing units
Nabard to raise credit for rural housing
N. Zealand changes immigration rules
Subsequent conduct
Get cockpit doors remodelled: DGCA VIP squadron Deadline Graphic: Sugarcane Production
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India has strong fundamentals: Jalan New Delhi, November 23 “A stable macro-economic environment with low inflation, low current account deficit and reasonable growth was essential to prevent crises. India had all three — inflation around three per cent, current account deficit below one per cent and growth above five per cent”, Dr Jalan said while speaking at a session on Crisis Prevention and Resolution at a meeting of G-20 Finance Ministers and Central Bank Governors here today. Calling for a more supportive role of the multi-lateral funding agencies and the international community by providing higher and more automatic access to international funding, the RBI Governor said that this was essential “since even if a country was cautious and careful, and had strong macro-economic fundamentals, it might still be affected by crisis because of events beyond its control”. This could be the result of contagion or an unexpected upsurge in oil prices or disruption of trade due to external events, he said. “When a crisis does arise because of reasons outside the control of a country and where the Article IV Consultation with the country have been positive and favourable, international institutions and international community must resolve to play a supportive role through a higher and more automatic access to international funding”, Dr Jalan said. Such a move will make Article IV consultations also somewhat more meaningful than they are now. “At the same time it is necessary to increase substantially the lendable reserves available with the IMF in line with the increase in the size of international capital flows in the 1990s”, he said. Adoption of best international practices ensures that there are no surprises about the financial health of a country or its financial policies. He said that flexibility in the exchange rate was necessary so that the Central Bank has the ability to intervene, if and when necessary. The policy of building a high level of foreign exchange reserves should take into account not only the anticipated current account deficits but also liquidity at risk arising from unanticipated capital movements, Dr Jalan pointed out. In quickly reversing the flows, foreign direct investment and portfolio investment involve a “cost” to the foreign investor; whereas this cost was absent in respect of fixed-interest banking capital. The session was attended by US Treasury Secretary Paul O’Neil, IMF’s First Deputy Managing Director Anne Krueger, Japan’s Senior Vice Minister of Finance, Minister of Finance of Germany, and Minister of Finance and Public Credit of Mexico among others.
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SBI lowers income limit for personal loans Chandigarh, November 23 He disclosed that the decision had been taken in view of the demand from lower and middle income groups to lower the minimum net monthly income (NMI) stipulated for availing a loan under the personal loan scheme. Earlier, the SBI was extending personal loans to individuals up to Rs 10 lakh for travelling, medical treatment, marriage and other purposes, provided they had NMI of Rs 6,000 or above. Under the amended scheme, named as festival loan scheme for public, he said, all employees of government, PSUs, profit-making public/private limited companies and institutions would be eligible. The minimum amount of loan would be Rs 5,000 and maximum Rs 50,000 or four times the NMI. It could be repaid through maximum of 12 monthly EMIs. The borrowers would be able to take loans at 13.75 per cent, without any primary security. However, they would have to offer collateral personal guarantee of the spouse or any other person. The loans would be available at all computerised and other authorised branches. Mr Sinha claimed that after the recent decrease in rate of interest on home loans, the housing loans had picked up in the Chandigarh circle, comprising of Punjab, HP, Jammu and Kashmir, Haryana and UT. He said: ‘‘The bank has disbursed housing loans to the tune of Rs 150 crore by October 30 this year against Rs 76 crore during the corresponding period in 2001-02. The bank sanctioned car loans worth Rs 32.49 crore by October 30 against Rs 25 crore during the corresponding period last year.’’ Against a target of Rs 430 crore under personal loans schemes for the current fiscal, the bank had disbursed Rs 296.82 crore by October 30, 2002, as compared to Rs 150 crore during the corresponding period last year.
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NCDC to go for direct funding New Delhi, November 23 Speaking at the 55th General Council Meeting of the NCDC here, Mr Ajit Singh said amendments to the NCDC Act would facilitate the process of disbursing funds directly to cooperatives without government guarantee. Elaborate guidelines had been formulated for this purpose, he said. The NCDC had also finalised a
resource centre scheme to provide necessary technical guidance to strengthen primary societies through diversification, the minister said. Underlining the need for value addition in the agriculture and food processing sector, Mr Ajit Singh said for the kind of growth rates to be achieved as envisaged in the National Agriculture Policy “we would have to increase value addition from the present estimated levels of 7 per cent to 30 -35 per cent and processing to a level of around 10 per cent as against 2 per cent”. Stressing upon the need for quality control and standardisation to face competition in the post-WTO regime, the minister urged the NCDC to focus on efficiency upgradation and institutional development of cooperatives.
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Give power sector priority in new policy There is a compulsive impulse for every new government in Punjab to evolve its own-Industrial policy. This time the change is essential. Existing policy is incentive oriented and hence is obsolete. Incentive war has been stopped at the national level. Industrial policy has chosen right path. It has, however, faulted by traversing off path. The government has blurred its own vision even before the announcement of the policy. Unusually lengthy text of the policy cannot ensure its usefulness, which may rather confuse matters. Free movement of goods has rightly been overemphasised. Truck unions will be abolished which hampuer the movement. Good enough. Is it the end of the purpose? Even before putting the policy in place state government has made provisions to put as many hurdles as possible to delay the movements. What otherwise is exim form provision? Entry tax do what? It is yet another thing that with this movement is restricted only at the entry and exit points. So government should go in the right spirit of the policy and do away with all such provisions. Policy rightly emphasises on the agro-based industry. To negate its own intention government has proposed to levy anything up to 6 per cent cess on agricultural produce to be used by industry. Certainly it is a de-motional and not a promotional step. In the scheme of the policy road development is the foremost aspect. This is wanting. It should be substituted by power, which should be number one in infrastructure. Today power scenario in the state is gloomy. Power distribution network is in shambles leading to unscheduled breakdowns. This results in colossal losses to the industry as well as to PSEB, which is already in very bad financial shape thanks to our state governments. It has no money to invest in upgrading T & D network. So priority of infrastructure should shift from roads to power. Power generation aspect is also missing in the policy except a passing reference. Policy to waive any electricity duty on captive generation is a right step. If some fiscal incentive is offered private power generation may get a boost. If state is not financially viable to go in for bigger power projects, smaller power projects through private participation can meet the gap. Upgradation of technology of small-scale industry has been given right stress. Solutions are missing. It is a catchword of every policy. The government can do much in this regard. Punjab has already development centres for many popular trades in almost every industrial town. Almost all such centres are capable to contribute but are languishing, due to lack of funds. If money is flown into them and management upgraded these centres can do wonder. So instead of high fly schemes things like this on ground should be given priority. Concept of SEZ has also been touched. Punjab is peculiar in this respect. Venture Capital Fund Scheme can do wonders in Punjab if implemented in spirit. We have ample of entrepreneurship in Punjab. Entrepreneurs lack financial muscle. No body comes to their rescue. The state government should have all out emphasis on this. PFC may be the only financial institution for this. Elsewhere in the policy mention of credit guarantee scheme is given. Loan up to Rs 25 lakh can be obtained under this. Talk of Rs 25,000 and have some example quoted. So high-sounding words don’t make good policies. All-out emphasis may be given to this scheme. Setting up for BIFR-type institution to rehabilitate sick SSI units is the right step. It has to be preceded by many other steps. Till March 2002, 6,304 SSI units out of a total of 106,329 units have fallen sick. First step should be to identify the reasons for sickness. There is a state level body to do that but nobody has even bothered. This aspect should be given the priority it deserves. Without this no rehabilitation programme can be meaningful. Self-certification scheme is a noble idea. It will reduce the evil of over paper work and official interference. All the same it will still be an evil. Over regulation should also be reduced and procedures simplified.
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Adopt new technology: Central Bank CMD Chandigarh, November 23 Dr Singh advised that the best in traditional and modern technologies in agriculture, industry and information sciences should be integrated in a meaningful manner so as to change the rural face of India and Central Bank of India will not be far behind in its endeavour to change the face of rural areas. Women entrepreneurs from rural areas should come forward and avail credit facilities from the bank by forming Self-Help Groups as this scheme has proved successful in other parts of the country for upliftment of rural folk”, said Dr. Singh. The bank offers financial assistance to farmers and women entrepreneurs for economic pursuits in agriculture and allied activities such as dairying, cottage and tiny industries. In the farmers’ meet, Dr Singh distributed Kisan Credit Card to the farmers. Mr V.K. Bhandari, General Manager, Central of India sought the suggestion of farmers for formulating better credit schemes for rural areas. Mr R.K. Kalia, Zonal Manager of Bank’s Chandigarh Zone and Mr S.L. Doda, Regional Manager Ambala also spoke.
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JCT to take over Baroda Rayon plant Chandigarh, November 23 With this, JCT will emerge as the largest textile yarn manufacturer in the country giving it a share of Rs 200 crore in the nylon yarn market. According to
Mr Samir Thapar, Vice-Chairman and Managing Director, JCT, the company will run the Baroda Rayon plant on a conversion basis, which means it will run the plant and pay a fee. The raw materials, quality norms and the final product will also be JCT’s. The assets and liabilities will continue to remain with Baroda Rayon. JCT’s Nylon Filament Unit, which showed outstanding performance during the past few quarters, is in a product upgradation and expansion mode. After having increased nylon poly capacity, new draw-twisting machines are being added to match the enhanced poly capacity. Draw-twisted yarn fetches better realisation in the market. “The Surat plant of Baroda Rayon has the capacity of 30 tonnes a month and with this arrangement, JCT’s total capacity will increase to 1,000 tonnes a month making it the largest manufacturer”, Mr Thapar added. The plant location in Surat is considered an advantage as it is a huge textile and nylon market. “Today none of our business divisions (textiles, nylon and steel) is losing money”, Mr Thapar said. “After the arrangement with Baroda Rayon falls in place, JCT’s economy of scale from the yarn plant is expected to further improve profitability of the company”, Mr Thapar added. Both companies are expected to benefit from this arrangement. While JCT will emerge as the largest yarn manufacturer in the country, Baroda Rayon will now be able to concentrate on restarting their viscose and nylon tyre cord plants, which are located in the same complex.
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FICCI plan for food processing units New Delhi, November 23 Realising the potential of Indian food processing industry for expanding marketing in Europe and North America,
FICCI recently undertook a major project with partial assistance from the EU for the promotion of Hazard Analysis Critical Control Point (HACCP) concepts in the Indian Food Industries. As part of this project, assistance had been provided to 20 food processing units all over India for the implementation of HACCP systems.
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Nabard to raise credit for rural housing Chandigarh, November 23 Mr Ramanathan called upon the banks to lay more stress on rural housing as it had emerged as a new area, which also provided for diversification of lending portfolio of these banks.
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N. Zealand changes immigration rules Chandigarh, November 23 According to Mr Anil Manocha, Sr Vice President,
Edge, New Zealand has announced changes in the rules governing general
skills and business categories. New changes were designed to improve
employability and settlement prospects. With the new rules the
principal applicant has to obtain 6.5 bands and business LTBV applicant,
five bands in International English language tests with effect from
November 20. Apart from this in general skills category the applicants
occupation should fall in immigration services shortage list and this
changes to the policy also applies to the applicants who have already
filed their application and are yet been invited to apply a under job
search visa, this foresee large number of visa disapproval from
India. Mr Manocha also welcomed the move to announce on establishing
the Canadian Consulate in Chandigarh by Herb Dhaliwal.
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by Praful R. Desai
Subsequent conduct Q: It is true to say that by accepting closure compensation by his conduct the workman’s
challenge to the transfer has become infructuous? A: S.C. was opining thus in E.Hill & Co. Ltd. v State of U.P. [2002-II-LLJ-524] thus: The respondent was working in the appellant’s unit at
Khamariah. He was then transferred to Bisunderpur unit of the Co. This transfer was challenged and the dispute was referred to the Labour Court. In 1991, he had joined at Bisunderpur Unit. He was informed that his services were terminated as a result of the closure of the said unit and closure Compensation and notice pay as contemplated by S.25FF of the I.D. Act amounting to Rs 6,416.45 was paid to him. Subsequently by another letter, on account of closure of the said unit, the appellant paid a further amount of Rs 25,679.80 as his PF dues, Rs 6,617.45 was paid to him on account of gratuity and Rs 1,251.50 was paid as leave encashment. It is not in dispute that the sum paid was accepted by the employee. Having thus accepted the aforesaid amounts, it is quite obvious that the conduct of the worker showed that even though he had challenged his transfer to Bisunderpur unit of the Co., he accepted his termination of services by the Co. on accepting all amounts which were payable to him in accordance with law on account of closure of the unit where he was working. Under these circumstances, the
H.C. fell in error in not setting aside the award of the Labour Court which had held that the employee’s transfer from Khamariah to Bisunderpur was not in accordance with the law. But, as already observed earlier, by subsequent conduct of the workman, he has accepted his transfer and then only terminable benefits which were paid to him pursuant to the closure of the unit at
Bisunderpur. For the aforesaid reasons, the S.C. allowed the appeal and the order of the
H.C. and the award of the Tribunal were set aside. |
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by K. R. Wadhwaney
Get cockpit doors remodelled: DGCA The fog-horns are being blown at the Indira Gandhi International Airport (IGIA). Pilots of national and international airlines have started issuing warnings to the Airports Authority of India (AAI) for deteriorating light during nights causing problems in landings. The authorities are aware of the problem but they have been unable to operationalise the hi-category III-A Instrument Landing Systems (ILS). Many pilots of Indian and foreign carriers have not had training for landing with the device of the ILS CAT IIIA. There are certain types of aircraft which are not equipped with instruments to help them land using ILS CAT IIIA. The pilots of many airlines believe that flights in December-January will continue to get disrupted as often as it happened in the past few years causing insurmountable problems to passengers and airlines. Judging from the existing scenario, some established airlines are thinking of rescheduling their flights during the peak foggy season. “Disruptions, delays and over-flying or cancelling of flights throw our schedules haywire apart from causing heavy losses”, said senior officials of different airlines. The AAI officials, according to reports, are working overtime so that disruption of light is the minimum and the new category of ILS CAT-IIIA functions without any snag or hinderance.
VIP squadron When the VIP squadron, now in offing, becomes a reality, two national carriers will be much gainer as their flight patterns and schedules will not undergo heavy changes, as it happens these days. Air India and Indian Airlines will then fly keeping only ‘commerce’ in mind. Two world’s leading manufacturers, Airbus Industrie and Boeing, are said to have furnished detailed proposals to both Defence and Civil Aviation ministries. The requirement is for three aircraft but, may be the government will initially opt for one for the use of the Prime Minister and the President. The proposal for the VIP squadron is based on the lines of the USA. The independent squadron will have trained security personnel and efficient cabin crew. The national carrier officials feel that it will be greatly beneficial to all concerned.
Deadline The Directorate-General of Civil Aviation (DGCA) has asked all airlines operating through this country to get remodelled and fortified cockpit doors by April 9, 2003. The new doors will be weighty and they will be equipped with four locks. Security codes will also be different. There will be several other devices to prevent hijackers or terrorists from entering the cock-pit area. Apart from heavy expenses required for these new doors, the passenger-load will also reduce because of weight of doors. But this is a mandatory requirement of the Federal Aviation Authority (FAA). |
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SBI rates Career Launcher Sunday Commu Kribhco |
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