Wednesday, January 22, 2003, Chandigarh, India






National Capital Region--Delhi

THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

HDFC net grows 21.18 pc
Mumbai, January 21
The HDFC has recorded a 21.18 per cent increase in the net profit at Rs 146.65 crore for the third quarter ended December 31, 2002 as compared to Rs 121.01 crore in the same period the previous fiscal.
  • Nicholas Piramal
  • Siemens
  • Godrej
  • Marico
Bidders’ selection for PTL soon
Chandigarh, January 21
After receiving overwhelming response from leading companies for the disinvestment of the PSIDC’s 23.4 per share in Punjab Tractors Limited (PTL), the core group of officers in the Directorate of Disinvestment is busy finalising the short list of prospective bidders.

Punjab dilemma on farm loans recovery
Chandigarh, January 21
The Punjab Government is caught in a catch-22 situation as far as the recovery of long-term agriculture loans are concerned. Though it wanted that no strong measures should be used to recover loans by state cooperative banks, there is no alternative as non-recovery of loans can totally jeopardise credit structure built up by these banks.

Govt nod for Nedungadi, PNB merger
New Delhi, January 21
The Cabinet today approved the proposal to merge the Kerala-based Nedungadi Bank with PNB. An official spokesperson said the amalgamation proposal has been approved under Section 45 of the Banking Regulation Act of 1949.

An Afghan man sorts out digital video discs An Afghan man sorts out digital video discs (DVDs) at an open bazaar in Kabul on Tuesday. Cable television networks have been closed in the Afghan capital after Afghanistan's Chief Justice termed the programmes as un-Islamic. — Reuters

Revamp Punjab technical education
T
he major planks of the new industrial policy of Punjab should be (a) knowledge upgradation of SMEs (b) revamp of technical education. The modernisation of the existing SMEs can be done by facilitating exposure at their doorstep with co-operation of equipment makers by using mobile TV vans, etc.


A female Indonesian student shouts slogans during a protest
A female Indonesian student shouts slogans during a protest against IMF aid in Jakarta on Tuesday. Indonesian government, under pressure from legislators, said on Tuesday it wanted no extension of a $5 billion IMF programme that is scheduled to expire at the end of the year.
— Reuters

EARLIER STORIES

 
A man pedals past a motor showroom in Hong Kong on Tuesday.
A man pedals past a motor showroom in Hong Kong on Tuesday. The territory’s composite Consumer Price Index fell by 1.5 per cent in December, the government said on Tuesday, extending the territory’s deflationary spiral to a 50th month. — Reuters


ROUND-UP

Taj, Zee to invest in J&K
Mumbai, January 21
The Taj group of hotels and the Zee group of companies have shown keen interest to invest in several projects in Jammu and Kashmir, Mufti Mohammed Sayeed said here today.

  • Nod for SCI stake sale to Mitsui
  • Hi-tech number plate plant opens
  • Plea on excise duty exemption

 


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HDFC net grows 21.18 pc

Mumbai, January 21
The HDFC has recorded a 21.18 per cent increase in the net profit at Rs 146.65 crore for the third quarter ended December 31, 2002 as compared to Rs 121.01 crore in the same period the previous fiscal.

The company’s income from operations in the reporting quarter stood up by 10.88 per cent at Rs 737.64 crore over Rs 665.22 crore in the Q3 of FY’01, HDFC Chairman Deepak Parekh said in a statement here today.

For the nine-month period ended December 31, the net profit rose by 20.75 per cent to Rs 451.10 crore as against Rs 373.56 crore in the same period of the previous fiscal while the HDFC’s income from operations was up by 11.74 per cent to Rs 2,201.04 crore over Rs 1,969.78 crore.

Interest and other charges for the Q3 was higher at Rs 514.75 crore (Rs 482.91 crore), he said.

The company has made a provision of Rs 33.60 crore for tax in Q3 as against Rs 23.75 crore, while for the nine month period it was Rs 104.55 crore (Rs 71.21 crore).

Approvals during this period aggregated to Rs 8,004.82 crore (Rs 6,137.19 crore), grew by 30 per cent. Disbursements were up by 31 per cent to Rs 6,491.46 crore (Rs 4,951.75 crore).

The HDFC has diluted its earning per share to Rs 5.96 per share in Q3 (Rs 4.93).

Individual loan approvals and disbursements were up 36 per cent and 37 per cent as compared to the corresponding period in the previous year.

The HDFC’s loan portfolio, inclusive of investment in preference shares and debentures for financing real estate projects, as of December end registered a 25 per cent growth at Rs 21,184 crore.

The company said its income for operations for nine months included interest on loans worth Rs 1,653.42 crore, fees and other charges of Rs 74.16 crore, dividend income of Rs 81.46 crore, profit on sale of investments of Rs 68.76 crore, lease rental income amounting to Rs 33.94 crore and other operating income of Rs 89.30 crore.

Pursuant to shareholders approval to issue bonus shares in the ratio of 1:1, the board has already allotted 12.19 lakh equity shares of Rs 10 each.

Nicholas Piramal

Nicholas Piramal India has reported a higher net profit at Rs 21.19 crore for the third quarter ended December 31, 2002, compared to Rs 13.19 crore in same period of previous fiscal.

Total income in the period under review also increased to Rs 221.34 crore as against Rs 191.21 crore in Q3 of last year, Nicholas Piramal said in a statement here today.

Siemens

Siemens has posted a 68.18 per cent rise in net profit at Rs 34.41 crore for the first quarter ended December 31, 2002, as compared to Rs 20.46 crore in the same period last year.

The company’s net sales for the reporting quarter grew by 15 per cent at Rs 298.5 crore over Rs 260.3 crore in October-December, 2001, Siemens said in a statement here today.

Godrej

Godrej Consumer Products has recorded a 20 per cent rise in net profit at Rs 14.78 crore for the third quarter ended December 31, 2002, compared to Rs 12.3 crore in same period of previous fiscal.

The board has declared a third interim dividend of Rs 2 per share for 2002-03 (50 per cent on shares of face value of Rs 4 each) taking the total interim dividend payout to Rs 6 per share, a GCPL statement said here today.

Marico

Marico Industries has reported a higher consolidated net profit at Rs 13.92 crore for the third quarter ended December 31, 2002, compared to Rs 12.16 crore in same period of previous fiscal.

The Board has also declared a third interim dividend of 10 per cent on equity share capital for the fiscal 2002-03 and a pro rata dividend on 8 per cent bonus redeemable preference shares for September 30 to March 31, the company said today.
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Bidders’ selection for PTL soon
Tribune News Service

Chandigarh, January 21
After receiving overwhelming response from leading companies for the disinvestment of the PSIDC’s 23.4 per share in Punjab Tractors Limited (PTL), the core group of officers in the Directorate of Disinvestment is busy finalising the short list of prospective bidders. The selected bidders, who fulfil the terms and conditions of the expression of interest (EOI), will be able to participate in the final round of technical and financial bidding, scheduled to be completed by March end.

According to information available from the Directorate of Disinvestment, Disinvestment Director Vinni Mahajan, representatives of the global Adviser for the disinvestment of the company, Chief Secretary, Punjab, Mr Y.S Ratra and Mr Mukul Joshi, Principal Secretary, Department of Industries and Director, PTL had a meeting yesterday, reportedly to discuss the progress in disinvestment in the state. Officials sources, however, said the process of short-listing would take at least another 15 days.

The officials said 11 leading companies have filed EOI till the last date of filing, January 15. These companies include M&M, Escorts, Sonalika, New Holland, SAME, Eicher as a consortium, Tafe in league with international player Agco, FIIs Warburg Pincus, J P Morgan and CDC and a consortium led by NewBridge LLC, a private US equity fund. Eicher Motors is part of that fund.

After short listing the core group will prepare “Information Memorandum” in consultation with the management of PTL in the next few days. After that the Directorate will finalise “confidentiality agreement” and “draft share purchase agreement and share holder agreement” in consultation with the legal adviser, Dua Associates, New Delhi.

The conditions of these agreements will be offered to the short-listed bidders, apart from undertaking an exercise about the valuation of the company. The final decision will be taken by the Cabinet Committee on Disinvestment, chaired by the CM.
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Punjab dilemma on farm loans recovery
Tribune News Service

Chandigarh, January 21
The Punjab Government is caught in a catch-22 situation as far as the recovery of long-term agriculture loans are concerned. Though it wanted that no strong measures should be used to recover loans by state cooperative banks, there is no alternative as non-recovery of loans can totally jeopardise credit structure built up by these banks.

In fact, the recovery of the long-term loans advanced by the Punjab State Cooperative Agricultural Development Bank ( PSCADB) is 36.61 per cent till January 17. And it is short of the limit of 40 per cent fixed by Nabard for refinancing.

On the direction of the Punjab Government, officials of the PSCADB are not using any harsh measures as far as the recovery of the loans taken solely for agriculture purpose is concerned.

However, the arrest warrants have been issued against 61 persons in Bathinda and Mansa districts , who had taken loans for commercial purpose. No arrest warrant has been issued in other district.

"Such people are in capacity to return the loans, but are not paying deliberately and putting political pressure to get the loan amount waived", said a senior officer of the PSCADB. The person arrested in Bathinda district a few days ago had taken loan of Rs 7.60 lakh for setting up a poultry farm along with another partner but did not return it.

The bank had left with no alternative except to issue the warrant of his arrest. There were about 60 more such persons. Recovery of loans from those farmer, who have been really hit by drought has already been postponed till harvesting of Rabi crop this year.

The recovery of loans is only 20 per cent in the Ferozepore division and only 17.8 and 10.8 per cent in Bathinda and Mansa districts. According to information available, amount to be recovered from defaulting farmers in this division is Rs 134.07 crore but only Rs 21.94 crore has been recovered out of it.
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Govt nod for Nedungadi, PNB merger
Tribune News Service

New Delhi, January 21
The Cabinet today approved the proposal to merge the Kerala-based Nedungadi Bank with PNB.

An official spokesperson said the amalgamation proposal has been approved under Section 45 of the Banking Regulation Act of 1949.

The spokesperson said constant monitoring of Nedungadi bank by the RBI has found out that the beleagured bank would require capital infusion of Rs 125 crore to maintain solvency and increase the capital adequacy ratio to 9 per cent.

The accumulated losses of the bank increased to Rs 65.48 crore even as it clocked a net profit of Rs 1.27 crore.

“The possibility of the bank generating sufficient profit to wipe out accumulated loss of Rs 65.48 crore and meet the capital adequacy requirements on its own within a short time is very remote. The only option available to safeguard the interest of depositors was to amalgamate the bank with a nationalised bank”, the spokesperson said.
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Revamp Punjab technical education
Chandra Mohan

The major planks of the new industrial policy of Punjab should be (a) knowledge upgradation of SMEs (b) revamp of technical education.

The modernisation of the existing SMEs can be done by facilitating exposure at their doorstep with co-operation of equipment makers by using mobile TV vans, etc. to show benefits and costs of modern equipment for raising productivity and quality, modern global standards, TQM and world-class standards, products, etc.

Take TQM to their doorstep. Raise profitability, along with quality upgradation. Improve competitiveness of their products. Use the government market as an instrument for accelerating growth of the technology-led local industry. Demand world-class quality in government purchases.

Do not forget: Technology upgrade funds alone will not do. Past experience amply proves this.

Revamp technical education. Revise the syllabus of S&T education to develop (a) observation and curiosity (b) analytical capability (c) scientific observation (d) basic principles of Time & Motion (e) self-learning (f) TQM & continuous quality improvement (g) low-cost automation. Emphasise practice, not theory.

Make entrepreneurship a major course in graduate and polytechnic education.

The downsizing of government and industry leaves entrepreneurship the lone creator of jobs. To develop curriculum, study recent courses developed by INSEAD, Paris, and some American universities. Use experience of EDI, Ahmedabad, and NITCON.

PTU should introduce postgraduate courses in (a) advanced product design, including CAD/CAM, rapid-prototyping (c) TQM, precision measurement and SQC, product reliability (c) IT and (d) advanced materials.

To maximise the utilisation of recent investments in technical education, make equipment mobile for sharing use by multiple institutions or transport students across by coordinating course-work. Open it for use by industry after college hours.

Video lectures of the best faculty can be arranged for use by sister institutions. Frame an incentive system to encourage high-calibre faculty. Collect and use similar lectures from elsewhere.

PSEB: Evaluate market and technical feasibility of delivering 100 per cent assured-quality power at 25-50 per cent surcharge in special areas. Modern industry (with extensive computerisation) may find even such exorbitant rates a better economic option as this will eliminate losses in (a) switchover to stand-by power (c) frequent & unplanned power trips (c) investments in UPS, Spike-busters, etc (d) frequent burn-outs of sensitive PLCs, computers, expensive instruments etc.

Push the pilot launch of TQM now in the process of launch. Since the programme has to be with the involvement of employees, it can provide an implementable route to rapid reduction of line-losses and total improvement in distribution efficiency. Effective leadership and facilitation of the programme is crucial to its success. Push electronification of meters.

There is a need for fresh policies on land and land-use for industry, hi-tech industry, multiplexes etc. There are too many multi-tier and unwieldy committees. I suggest setting up of one unified hi-powered core group of about five members. Call in experts from different disciplines when needed from an approved panel as is done by the IDBI.

A unified final-decision committee is needed. It should include a nominee of the CII/PHDCCI and an eminent public man for transparency. Both could set up sub-committees, if needed.

The time-frame for financial clearances stipulated is impossible. Review it in consultation with the CII/PHDCCI. In today’s commercial banking, bank guarantees have to be backed by 100 per cent cash. Consequently, seeking guarantees is no help to entrepreneurs.

A penalty can begin after two years and may be permitted up to five years. The transfer fee should be 50 per cent of the differential between enhanced costs linked to the CLI index and not only the original cost of purchase. Allow plot division within the same group. Charge fees.

To get past the recent order banning unions, they have rechristened themselves into cooperatives.

The extortionist operations and their impact on industry are well-known and need eradication.

Create world-class infrastructure via private initiative: BOO, BOOT

Ensure maximised leveraging of cess-funds: avoid temptation for the use cess-linked raisings on social infrastructure as was done by the PIDB earlier. Conceive and combine projects imaginatively to make investment in BOO, BOOT attractive. Plan infrastructure at one location in comprehensive fashion: access medical, telecom, education, entertainment, etc. Whatever the provocation, do not spread thinly. Employ top-class expertise for project conception. Exploitation of sky-space as done extensively by Japan adds an exciting dimension. To ensure quality, include maintenance in contract.

Use infrastructure as an instrument tool for creating a new local generation of large and modern builders.

In the case of agriculture and allied sectors, develop linkages with MNCs and national firms with large national and global marketing strengths: NDDB, Mother Dairy, Nestle’s Cargill etc.

Invite globally-accepted grading and rating firms to set up offices and facilities in the state to develop world-acceptable agricultural produce. Provide full support to promising firms in the state to grow and enlarge markets like Cremica and Verka.

To raise the scale of farms, frame rules for contract farming: set up independent committees.

Foster a new style of management structure: study and adapt the Andhra and BAIF models. Announce incentives for achieving new levels. Administer through independent juries and not state officialdom.

Remember the gap with global quality is very large and there are no quick-fix solutions.
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ROUND-UP

Taj, Zee to invest in J&K

Mumbai, January 21
The Taj group of hotels and the Zee group of companies have shown keen interest to invest in several projects in Jammu and Kashmir, Mufti Mohammed Sayeed said here today.

The Zee group of companies have planned to set up a Kashmiri channel, introduce online lottery and establish an amusement park in J&K Sayeed, on a visit here to invite investments in the valley, told PTI. Zee chief Subhash Chandra, in an interaction with the chief minister, assured him of steps to set up a Kashmiri channel and also showed keen interest to establish a permanent studio in the valley. PTI

Nod for SCI stake sale to Mitsui

NEW DELHI: The Cabinet has approved sale of Shipping Corporation of India’s (SCI) 20 per cent stake in troubled LNG transportation venture Greenfield Holding Co Ltd to Japanese shipping line Mitsui OSK Line, official sources said. Mitsui is likely to pay $ 11 million plus interest of about 9 per cent (about $ 1.16 million) for acquiring the 20 per cent stake held by the Indian line, government sources said after a meeting of the Cabinet here. TNS

Hi-tech number plate plant opens

CHANDIGARH: India’s first plant to manufacture high security number plates for vehicles was inaugurated by Minister of State for Home I.D. Swamy in New Delhi yesterday. The Rs 20-crore plant has been set up by Utsav Safety Systems.

The machinery for the plant has been imported from Germany and the aluminium sheets and other raw material come from Germany, England and Norway, according to the Managing Director, Mr Ravi Samani. Each set of number plates will cost Rs 850 for four-wheelers and Rs 375 for two-wheelers. TNS

Plea on excise duty exemption

CHANDIGARH: The Solvent Extractors’ Association of Punjab in a memorandum submitted to the Finance Minister, Mr Jaswant Singh, has urged to exempt the byproducts of rice bran oil from excise duty in the coming Budget. It has claimed the decision would promote the use of rice bran oil as an edible oil, as well as provide remunerative price to paddy producers across the country. TNS
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BIZ BRIEFS

SBP branches
Bathinda, January 21
All 91 branches of the State Bank of Patiala, Bathinda zone were computerised last evening. Mr D.J. Mankad, DGM, in a press note issued here today, said the bank had also introduced a scheme for advancing loans to Army personnel, teachers, judicial officials and police personnel at a reduced rate of interests. TNS

Nabard rate
Chandigarh, January 21
Nabard has announced to reduce interest rate on its Capital Gains Bonds to 5.25 per cent per annum with effect from January 27, from the existing rate of 6 per cent. Subscriptions from investors would be accepted at the current rate till January 22. TNS

Crocodile
Mumbai, January 21
Crocodile has been nominated among the top four brands in the country for its superior retail chain development. The company’s managing director Venkatesh Sivaraman has also been nominated among the top four professionals in the branded garments industry, said a company statement. UNI

Abolish CST
Chandigarh, January 21
Welcoming the decision of the Centre to implement the VAT across the country from April 1, 2003, the PHDCCI has urged the government to abolish Central Sales Tax (CST) with immediate effect. TNS

Automechanika
Chandigarh, January 21
The third edition of Automachanika India 2003 is being held from January 21 to 24 at Pragati Maidan, New Delhi. The fair will feature companies from China, Malaysia, Singapore, Taiwan, France, Germany, Italy, Turkey, the UK, the USA. TNS

Loan mela
Chandigarh, January 21
Various branches of the SBI in Sirmaur district today organised a loan mela at Majra which was inaugurated by Mr K.K. Saxena, DGM, Shimla Zonal Office. He distributed loans amounting to Rs 1.78 crore to more than 100 beneficiaries. TNS

Imperito pact
New Delhi, January 21
Imperito Inc, a USA based enterprise access and security management solutions providing company, has announced its tie-up with Bangalore-based Xalted Information Systems. TNS

HPCL refinery
New Delhi, January 21
The Disinvestment Ministry is understood to have suggested transferring the state-owned firm’s Rs 9,500 crore Bathinda refinery to the ONGC so that its completion is not made an issue during the bidding process. PTI

Elected
Jammu, January 21
Mr Harjinder Singh Anand, managing director of Hotel Asia, has been elected president of the Jammu Hotel Restaurant and Bar Association. TNS

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