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Sunday,
February 2, 2003, Chandigarh, India  
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Record 34
pc export growth in Dec INDUSTRIAL POLICY-I Air-India
cuts inbound fares PNB takes
over Nedungadi Bank |
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3rd
volume of SBI’s history released AVIATION
NOTES New
airport to ease congestion at IGIA
ONGC to
pay 170 pc interim
Deceased
workman
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Record 34 pc export growth in Dec New Delhi, February 1 According to provisional data released today by the Directorate General of Commercial Intelligence and Statistics, exports during December, 2002, were valued at $ 4,365.03 million, which is 34.30 per cent higher than the level of $ 3,250.23 million during the same month last year. In terms of rupees, exports were Rs 21,013.49 crore, which is 34.92 per cent higher than the value of exports during December, 2001. “This growth is perhaps one of the highest ever increase exports have witnessed. The annual target is close to $ 50 billion. With these kinds of figures, it now seems reasonably possible to achieve that figure”, the Commerce and Industry Minister, who had taken charge of the portfolio only two days, told newspersons here today. He, however, denied that there was any proposal to execute an upward revision of the export growth target during the current fiscal year. The minister said India’s export growth rate was commendable, especially in the context of negative growth rates clocked by most of the Southeast Asian countries, including, Indonesia and Malaysia. In fact, India’s export growth rate of 34.3 per cent is higher than that of China, which registered 30.2 per cent export growth rate during December, 2002. “India’s cumulative growth rate during the first nine months was around 20 per cent. China, on the other hand, registered a slightly higher growth of about 25 per cent”, Mr Jaitley said and pointed out that the rise in exports should be seen in the context of appreciation of the rupee vis-a-vis other major currencies. According to figures made available by the DGCIS, India’s exports from April to December, 2002, were valued at $ 38,114.60 million, which is 20.36 per cent higher than the level of $ 31,668.31 million during the corresponding period of the previous fiscal year. In terms of rupees, exports during the nine-month period were recorded at Rs 1,85,210.71 crore, up by 23.38 per cent as compared to the corresponding period of 2001-02. India’s imports during April to December, 2002, were valued at $ 43,882.03 million, representing an increase of 14.54 per cent over the level of imports valued at $ 38,311.54 million during the same period in the last fiscal year. In rupee terms, imports increased by 17.47 per cent. Oil imports during this period were valued at $ 12,842.01 million, which is 19.54 per cent higher than oil imports valued at $ 10,742.45 million in the
corresponding period of the last fiscal year. Non-oil imports during the first nine months of the current fiscal stood at $ 31,040.02 million, which is 12.59 per cent higher that the level of such imports for the same period last year. Trade deficit during this period stood at $ 5,767.43 million, which is lower than the deficit of $ 6,643.23 million last year. |
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INDUSTRIAL POLICY-I Chandigarh, February 1 It has ostensibly been delayed due to vested interests, as much political as nexus between bureaucrats and industrialists’ lobby. Another reason is the sharp division between the departments of finance and industries/commerce over the determinate and indeterminate financial implications and absence of specific time-frame to phase these out. With Mr Mukul Joshi out of the way and Mr K.R. Lakhanpal having been given charge of the department of industries/commerce, in addition to finance, will the Council of Ministers now approve the industrial policy? The finance department is opposed to Rs 224.50 crore sops, subsidies, concessions and incentives in the industrial policy. This figure pertains to only the “determinate’’ and not “indterminate’’ financial implications. These relate to border area development (Rs 100 crore), food parks (Rs 16 crore), technology up-gradation (Rs 650 crore), cluster development scheme (Rs 37.50 crore), textile industry infrastructure development scheme (Rs 10 crore), apparel parks (Rs 10 crore) and Punjab Small Industries Export Corporation (Rs 1 crore). Mr Lakhanpal, sources say, placed flags at the pitfalls in the industrial policy and had conveyed the same to Mr Mukul Joshi on January 15. Terming the incentive code in the policy as ‘’absolutely unsistainable’’, he is unwilling to accommodate such huge liability out of the budget. Interestingly, despite there being no budgetary provision for sops, subsidies, concessions and incentives, incorporated in the existing industrial policy, the department of industries continued to process and sanction cases for the same. Ultimately, this had led to an accumulated financial liability of Rs 600 crore, which is yet to be cleared by ‘’securitizing’’ future receivables and issuance of bonds. The apprehensions are that once such incentives are incorporated in a policy, these become vested rights, later. Therefore, the incentive code in the policy in the form of exemptions, deferment, interest subsidy and revenue sacrificing across various departments is unacceptable to the financial pundits. The industrial policy was deferred when it came up before the Council of Ministers on December 30. Since the department of industries had shown urgency, the Finance Department had sent its comments on November 7. The views, conveyed on January 15, are in addition to those. Besides the backlog of Rs 600 crore and new determinate financial implications of Rs 224.50 crore, there would also be additional burden on account of incentive code to new units in the 16 km international border belt, new IT units, agro-processing and biotechnology industry. There is also no indication in the policy of time-frame to phase out financial implications. Therefore, the huge financial sacrifice will be by way of set-offs against ‘’sales tax and its arrears, electricity duty etc., starting from 2003-04’’. The department of finance has also frowned upon the proposal to refund 40 per cent of the excise duty share apportionable to the state out of the central excise paid by new units in 16 km belt, apart from allowing deferment of state excise and power charges to the extent of 50 per cent for a period of five years. The proposal to set up state board for industrial revival has also been opposed. ‘’Most of the proposed incentives have been incorporated to favour select industrial units and defaulters, whose hospitality politicians/bureaucrats take advantage of, as is borne out by the non-recovery of approximately Rs 1, 100 crore dues by PSIDC’’, say sources. Mr Lakhanpal, sources told TNS, was blunt in saying that sops and subsidies did not promote industrial development but promoted bureaucracy, inefficient allocation of scarce resources, uneven/ unfair playing field between the existing and new industrial units and deepened the financial malaise. On the contrary, industrial development takes place because of good governance and rule of the law, hassle-free dealing with the government coupled with adequate, reliable and affordable availability of power, land, water and rail/road/air/telecom connectivity, as pre-requisites. Though Punjab suffers from locational disadvantage, experience shows that industrial ‘’sickness’’ is more due to external/internal government policy regime, lack of continuity and consistency in the state policies and mismanagement, rather than technological obsolescence and inability to
compete. (To be concluded) |
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Air-India cuts inbound fares New Delhi, February 1 The cut would be on the inbound Air-India fares as part of its holiday packages during the March-June lean season. The package is aimed at attracting tourists from Europe, including the UK, and the Gulf, with the season actually extending till September for the latter. As part of the plan, Air-India has worked out two different schemes where the fares would be applicable in Europe from March 15 to June 15, and in the Gulf region from March 15 to September 30, except for the period between June 25 to July 15. The packages would target first-time visitors to India, repeat visitors and senior citizens. The holiday packages will include return air fare, accommodation, meals and surface transportation, in addition to local sightseeing. The packages include specially negotiated hotel rates in consultation with the Federation of Hotels and Restaurants Association of India and the Hotel Association of India. The hotels offered under the scheme include the Taj group of hotels, Le Meridien and other major chains of hotels. Air-India initially proposes to introduce these holiday packages in the Gulf region and Europe, which are prime tourism markets for India and later extending them to other countries also. The holiday packages would be launched in phases, with each phase focusing on a different region in the country. |
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PNB takes over Nedungadi Bank New Delhi, February 1 The takeover will allow PNB to create a major presence in southern India, especially Kerala, through the 174 branches of Nedungadi Bank. PNB already has 3860 branches spread across the country. The takeover proposal was approved by the Union Cabinet last month with the Cabinet noting that the constant monitoring by RBI had found that the beleagured Nedungadi Bank would require capital infusion to the tune of Rs 125 crore to maintain solvency and increase capital adequacy ration to nine per cent. The accumulated losses of the bank stood at Rs 65.48 crore even as it clocked a net profit of Rs 1.27 crore. Chairman and Managing Director of PNB, Mr S.S. Kohli said that the takeover of NBL by PNB has been approved under Section 45 of the Banking Regulation Act, 1949. The Ministry of Finance had issued the relevant notification yesterday. Mr Kohli said that as on March 31, 2002, NBL had a deposit base of Rs 1,438 crore and advances to the tune of Rs 770 crore. This is the seventh merger of PNB in 107 years of the bank’s existence. Mr Kohli said that henceforth all interest bearing deposit accounts of NBL will be governed under the terms and conditions including the rate of interest prevalent in PNB, He assured that the interests of customers and depositors of NBL shall be fully protected. The RBI had recommended the merger of the bank with PNB in October 2002, after taking into account all factors including solvency and capital adequacy ratio. A statement issued by RBI said that as per the scheme of amalgamation, PNB would take over the assets and liabilities of NBL after first evaluating the assets and liabilities of NBL and pay depositors and creditors to the extent of their balances. The shareholders of Nedungadi Bank would be entitled for payment only to the extent of pro rata value of shares, if any surplus remains after paying off the depositors and creditors. |
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3rd volume of SBI’s history released
Chandigarh, February 1 This volume deals with the Imperial Bank of India, which was the predecessor of the State Bank of India. It existed from 1921 till its nationalisation and reconstitution as the State Bank of India in 1955. The earlier two volumes and a monograph, written by a noted economist, Dr A.K. Bagehi, covering the period from 1806 to 1920, have already been published by the bank. The third volume has been written in-house.
TNS
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rc
New airport to ease congestion at IGIA TWO contradictory versions are doing the rounds in Indian skies. The Lufthansa Board’s Deputy Chairman Wolfgang Mayrhuber says the no-fly intrusion has been sorted out with the government. But the Directorate-General of Civil Aviation says just the opposite. The Lufthansa authorities say its explanation on aircraft, involved in violation of no-fly zone over the Prime Minister’s residence, has been accepted by the Indian authorities. “There is nothing more on it”, say the airline authorities, adding that: “Any defect or lack of coordination between the pilot and the Air Traffic Control are recorded and handed over to the Indian authorities”. The DGCA says two pilots, commander and co-pilot, have been barred from flying on Indian air space till the Lufthansa authorities take “coorective action”. The DGCA probe pin-points that it was a clear-cut error of the pilots after exonerating the ATC. Luftthansa are very sensitive of “negative publicity”. Following this pilots lapse, the Lufthansa authorities have reiterated that it is keen on increasing its frequencies to Delhi, Mumbai, Chennai and Bangalore and also add on Hyderabad as new destination. Lufthansa’s proposal will be discussed at the bilateral talks between India and Germany shortly. Since storm in tea cup has blown away with the continuation of Shahnawaz Hussain as the Civil Aviation Minister, India will seek for more flights to Germany as it can be a rewarding hub. In the absence of getting a proper slot at Heathrow Airport, Frankfurt can be a very useful airport to operate additional flights to Europe and the USA. For Lufthansa, India is one of the most important destinations in the Asia-Pacific. It already operates 20 flights a week and wants to increase to 23 from April 2. As if this promotion is not enough, the airline intends to participate in the Indian catering section. Its catering arm, LSG Asia, is planning to acquire some more rights in addition to Lufthansa’s desire to participate in the privatisation of India’s four metro airports. New
airport Experts are optimistic that the Cabinet clearance for new airport, 80 km from Delhi on Noida-Agra expressway will come about. The PMO has okayed the proposal after it was cleared by the UP Government. If and when the airport idea becomes reality, UP will become one of the most important aviation hubs in the country. It will also reduce congestion at the Indira Gandhi International Airport (IGIA), which has already become obsolete. There are plans to expand it but not much has been done for years in this regard. The land for the airport will be allotted by the UP Government. It is possible that global tenders will be invited and private developers engaged to build an ultra-modern airport, like in several other places. |
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ONGC to pay 170 pc interim New Delhi, February 1 The government, which holds 84.1 per cent stake in the company, will receive an amount of Rs 2,039 crore. The amount will partly met the shortfall in fiscal deficit, officials of petroleum ministry said. The Corporation has posted a net profit of Rs 2,593 crore for the third quarter (October-December) 2002-03, registering a 84 per cent increase over the corresponding quarter in the last financial year (2001-02). Its turnover increased by 35 per cent to Rs 7,588 Crore. Ceat RPG group company Ceat Ltd has posted a net profit of Rs 14.95 crore during the first nine months of this fiscal compared to Rs 6.09 crore loss in the same period of 2001-02. The tyre major’s third quarter profit was up by 91 per cent at Rs 2.66 crore this fiscal as against Rs 1.39 crore a year ago. Sundaram Fastners Sundaram Fastners has posted a net profit of Rs 10.03 crore during the
quarter ended on December 31 last, as against Rs 7 crore in the same quarter of 2001. According to figures released by the company here today, the total revenues during the period went upto Rs 107.24 crore as compared to Rs 85.11 crore during the same period of 2001. TVS Electronics TVS Electronics Ltd (TVS-E) here has recorded a reduced net profit of Rs 0.45 crore during the quarter ended on December 31 last as against Rs 1.23 crore in the same period of 2001. For the calendar year ended on December 31 last, the profit before tax stood at Rs 2.23 core as against Rs 1.83 crore in the
calendar year of 2001. Agencies |
sti
Deceased workman Q: Question whether a deceased workman was an employee if not raised before the authorities, could be raised at a subsequent stage? A: Jharkhand H.C. was dealing with his question in United India Insurance Co Ltd v Husani Baitha (2003-1-LLJ. 101) as under: This appeal is against an order whereby the learned Single Judge of the this H.C. dismissing the appeal filed by the Insurance Co. The undisputed fact is that one Ashok Baitha died in an accident which took place on 10.1.89, with the truck. The legal representatives of the said deceased, moved an application before the Commissioner, Workmen’s Compensation, Hazaribagah for the grant of compensation on the ground, inter-alia, that during the relevant time, the deceased was the driver of the said truck. The owner of the truck submitted an information to the Commissioner through a letter, stating therein that the accident took place on 10.7.89 and the deceased, who was an employee of the company as driver. The Insurance Co also appeared before the Commissioner and filed a written statement. Curiously enough no such defence was taken that the deceased was not the driver of the truck. Commissioner awarded Rs 84,764 as compensation. Hence the present appeal. Insurance company for the first time has assailed the award on the ground that it was some one else who was the driver of the truck at that relevant time. However, Insurance Co did not bring any material to show that some one else was the driver at that relevant time, nor any evidence that compensation was paid to that man, on account of injury caused because of accident. It is worth to mention here that the Insurance Co did not choose to produce any additional evidence before the learned Single Judge. The learned Single Judge, therefore in absence of evidence rightly came to the conclusion that the award passed by the Commissioner, awarding compensation was fully justified. In this appeal also, the Insurance Company could not bring on record any evidence by filing any application u/o 41. R 27 CPC. Under these circumstances, the HC held that there appears to be no nexus with the facts available on record and what is being canvassed by the Insurance Co. For this reason, the HC did not find any merit in this application and consequently dismissed the appeal. |
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