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Thursday,
February 6, 2003, Chandigarh, India  
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Moody’s upgrades 11 Indian banks' ratings
Steering Punjab towards ‘knowledge-economy’ TRIBUNE
SPECIAL |
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Jagran Manch attacks govt’s economic policy
Exim Form: move to shackle businessmen?
Gold touches all-time high
Bombardier Transportation
Ayurvedic products by HLL soon
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Moody’s upgrades 11 Indian banks' ratings
London, February 5 The foreign currency bank deposit ratings for the Bank of Baroda, the Bank of India, Canara Bank, the Central Bank of India, ICICI Bank, Oriental Bank of Commerce, Punjab National Bank, the State Bank of India and the Union Bank of India are upgraded to Ba2 with negative outlook from Ba3, the international rating agency said in a statement here. The foreign currency debt ratings of the IDBI and the Power Finance Corporation are upgraded to Ba1 from Ba2. The foreign currency debt rating of the State Bank of India’s Resurgent Indian Bond (RIB) is upgraded to Ba2 with negative outlook from Ba3. The foreign currency debt rating of ICICI Bank remains on review for possible upgrade. This rating pierced India’s country ceiling for foreign currency debt even prior to the reverse merger of ICICI and ICICI Bank that created the second largest bank in the country. The review is focused on the progress that has been made on further integration of the business of the bank and the financial institution. The foreign currency subordinated debt rating for ICICI Bank remains on review for possible upgrade. The foreign currency issuer rating for the IFCI is upgraded to Ba1 from Ba2. The ratings are all raised to the corresponding rating ceilings for FC deposits, debt and issuer ratings in India, with the exception of the State Bank of India’s foreign currency debt rating that refers to the Resurgent India Bonds. This rating is at the same level as its deposit rating since these bonds have more deposit than debt characteristics, says Moody’s. Although the deposit ratings of some banks are constrained by the country ratings’ ceilings, other weaker public sector institutions are pulled to the ceiling based on support from the government. More specifically, the foreign currency deposit ratings of the Central Bank of India and the Union Bank of India, the debt rating of the IDBI and the issuer rating of the IFCI all impute government support. ‘’This is based on our belief that the government maintains its willingness to support the foreign currency obligations of the banks and financial institutions in case of need,’’ Moody’s concludes.
UNI
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Steering Punjab towards ‘knowledge-economy’ Chandigarh, February 5 The “second’’ green revolution should now focus on bio-technology, genetic engineering, fuel technology and information technology, as fine-tuning hydrological management and making environment sector a ‘factor’ in agricultural production continues. This is needed for “sustainable’’ peasant economy — ever an integral part of the manifesto for governance of every political party. This has also resulted in successive un-economic subsidies. But the green revolution is as much a success story of resilience, sweat and blood of farmers as making Punjab an economic front-runner, with crucial state support by way of minimum support price, assured market and public distribution system. Punjab today is a victim of circumstances of its own development process. The multi-facet complexities Punjab encountered between 1966 and 1996 have had a cascading impact on the economy of farms/factories. This very period is a subject of study, “Economic Growth of Punjab in the context of environmental sustainability’’ by Mr Jivtesh Singh
Maini, Punjab’s Principal Resident Commissioner and Investment Promotion Commissioner, in New Delhi. The study revolves around agricultural-based economy and how with the passage of time environment and its sustainability became a victim, weakness of rice-wheat axis resulted in the “mining’’ of soil/water and consequential eutrophication lead to water-logging. This can be corrected through diversification in crops/cropping patterns and making marketing consistent with WTO regime. Mr Maini has observed that since agriculture was fondly pampered, Punjab’s contribution to macro-economy of the Nation has today resulted in a “surplus’’ buffer food-stock. But in the process, industrial development was neglected, largely due to rigorous centralised planning and licensing systems depriving Punjab, a border state, of large industry, as small industry stagnated for want of technology and capital. There is neither a scientific study on impact of pollution inflicted on the people, soil, air and water by agriculture and industry nor a pollution index that would enable Punjab apply “polluter pay principle’’ to the economy. The distorted credit-deposit ratio has further harmed the state’s economy. Agriculture, says the study, is emerging into a ‘’policy failure’’ for the economy and suggests a “sustainability-budget’’ by incorporating “water- budget, clean-air -budget, soil/nutrient-budget etc’’. On subsidies, focus must be on capital development not on current input subsidization. For successful diversification, Punjab must take advantage of its geographical location, vis-a-vis distance from the Middle-East and Central Asia. Linkages between primary, secondary and tertiary sectors is as imperative as environment sector as a factor to gear towards high-technology production activities on farms and in factories. Energy sector also needs to be further developed, ensuring introduction of ‘’clean’’ technologies. The rural energy need has to be linked to bio-energy technologies, so that bio and agricultural wastes are used for generating gas and electricity. Thus economy and environment must be linked to form a sustainable development pattern for agriculture,
agri-business/agro-industry. Policy changes are also needed in structure of land holdings. Small/medium farmers have to become “corporate’’ share holders. (In fact, a beginning towards “contract’’ farming has been made). And why not direct foreign investment for capital building as much in agriculture as n industry? The study concludes, “The test of the economy of Punjab shall lie in its capacity to make right use of and to provide right value of its human capital and create a knowledge-economy, as an answer to ensure growth with
sustainabiity’’. |
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TRIBUNE
SPECIAL Hisar, February 5 Inquiries by this correspondence reveal that the role of tractors in farming has been gradually shrinking for a variety of reasons. For one, land holdings have been becoming smaller and smaller rendering tractors useless. The farmers’ incomes have been falling due to droughts and pest infestation. Finally, jobless youths have found their family owned tractors handy for earning a
living. Bani Singh of Satrod village near here said he began plying his tractor in the town a year ago when all efforts to find a job failed. “The family’s agricultural income had become unsteady and there was no money to repay the bank loan on the tractor. So, both me and my younger brother began hauling construction material. We now earn about Rs 500 a day”, he said. The income has bettered the lot of the family and the loan is being repaid in time. Another tractor owner, Sant Lal said he quit his job to ply the vehicle in Hansi near here. After the death of his father, Sant Lal’s brothers considered the tractor a liability. He persuaded them to give it to him in exchange for a small share in the family property. He has now been carrying payloads for about 18 months and is happy with his income which is several times the meagre salary he drew from the factory. However, these workhorses have made life in towns difficult. As it is, most towns have congested roads. The sudden arrival of hundreds of tractor-trailers has added to the problem of traffic management. Traffic police officials attribute the mishaps to poor maintenance of these vehicles. They said the vehicles were not designed to run on roads while carrying heavy payloads. Therefore, poorly maintained tractors-trailers had a high breakdown rate causing problems for smooth flow of traffic. They admit it is illegal to use a tractor as a commercial vehicle for carrying payloads other than agricultural produce. However, not many are challaned on humanitarian grounds. Despite the shift to towns, tractor dealers all over the state are reporting a sharp decline in sales. Industry sources say domestic tractor sales have fallen 13.9 per cent during the first quarter in this financial year at 44,342 units against 51,515 units in the year-ago period. The production was also down 18.4 per cent year-on-year to 37,418 units from 45,906 units, according to data released by the Tractor Manufacturers Association. |
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Jagran Manch attacks govt’s economic policy New Delhi, February 5 The SJM charged that the package announcement of Cabinet Committee on Disinvestment (CCD) on the disinvestment of BPCL and HPCL on January 26 is “tailored to suit few-already identified bidders.” “The Swadeshi Jagaran Manch is not against disinvestment per say. But what is happening today in the name of disinvestment is transferring of national assets built over the years by the people’s savings to few corporates — Indian and foreign, in a non-transparent way,” All-India Convenor of SJM P. Muralidhar Rao told newspersons here. “Political and bureaucratic control is used to stangulate the PSUs in various ways. Rules are framed to remove their competitive edge and restrict their growth. Private monopolies — detrimental to consumer interests are allowed to get established in the name of privatisation. Valuation of assets is another important area where people have valid doubts. The experiences of Balco, Modern Foods, Centaur Hotel, VSNL, etc. strengthen these doubts,” Mr Rao said. The SJM Convenor also rubbed the Vajpayee Government on the wrong side on its promise to provide one crore jobs in each year and 10 crore jobs in 10 years. “Economic planning, in our country has given disproportionate emphasis on GDP growth on the assumption that the growth will automatically lead to equitable development of all regions and generate the much needed employment. The result is rise in unemployment — means whatever growth we have achieved so far is jobless and also uneven,” he asserted. He also accused that the Small Industry and agriculture sectors are continued to be neglected — which are the largest employment providers, in terms of capital, technology support and measures from the state to promote their products and services in the national market, there will be large scale unrest which will have serious consequences for our policy and stability.
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Exim Form: move to shackle businessmen? Against the declining trend of industrial growth the Punjab Government is making stringent but aberrant provisions to accelerate it. The environment being created can be construed as measures to shacke the businessmen. The state government made provision to introduce the exim form. Goods going out of Punjab and coming into the state have to be accompanied with this form. This provision got legislative sanction in the last Assembly Session. The matter was kept a closely guarded secret. After getting a whiff of it the entire business community raised a hue and cry against this. The government had to respond and the matter cooled down with the government’s assurance that it would be discussed with the business community. It is reported that the matter was discussed at a Cabinet meeting and there were two views on this issue. The overwhelming view was against the introduction of the Exim Form. Now the Taxation Department has clandestinely introduced the exim form vide notification dated January 13. Why should this notification be withdrawn. Firstly, the authors of this form are not themselves sincere about the revenue aspect. The top man of the Taxation Department, which got negative publicity in the Panchkula episode, is learnt to have granted sales tax exemption to a very big unit. Unfortunately, this was done just before the officer went on leave, as reported by the media. The amount involved is very high and this is against the decision taken by all states not to grant exemption from sales tax. Businessmen are apprehensive that the general inefficiency of government offices will be transmitted to business premises, leading to chaos. The government itself has given its evidence right at the start. The exim form notification was issued on January 13 but the forms are now reaching sales tax offices. Can businesses in today’s highly competitive era are run with such gross inefficiency? Taxpayers gave a long list of objections to the Chief Minister. He never bothered to give clarification on these points and once-sided decison has been taken. It is true that many states have provisions of form for entry of goods. Except one, no state has an Exim form like Punjab, where even goods going out of the state have to be accompanied with this form. Punjab cannot afford such a draconian provision even if all states go in for it. Almost all inputs and intermediates for industry of Punjab comes from outside the state. Very fast tele-communication services ensure that the industry procures requirements on time. With the Exim Form, one has to make provisions for much longer duration as nobody can be sure of getting forms from government offices on time. The bulk of industrial production of Punjab goes outside the state. The despatch of goods from the factory is the most sensitive aspect of all operations. Even a delay of a few hours can wreak havoc. To get the form from the Sales Tax Department takes a few days. The bitter experiece of ST-XXII forms was quite bitter for the business community. After a lot of struggle, the government was convinced to withdraw the provision of ST-XXII forms. Government revenue has not suffered but increased. Even now C forms have to be obtained and it is a struggle to procure them. The Sales Tax Department has already in place provisions for giving purchase return along with sales tax return. No official has ever bothered to locate the purchase return, what to talk of matching them with the sales return. The facts about the Exim Form are very clear. No government can afford to put the business community in shackles. If facts are overlooked and draconian measures imposed, then the bad results will speak for themselves. |
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Gold touches all-time high
New Delhi, February 5 The upsurge in gold was mainly in line with a steep hike in its prices in the international markets where it rose to a six and a half year high of $388.90 an ounce in London while in Hong Kong, it closed at $383. The buying among traders and jewellers was triggered ahead of U.S. Secretary of State Colin Powell’s address to the United Nations Security Council, which is expected to decide the scenario in the current tension over Iraq. Selling of old jewellery by retail customers for making a quick profit failed to make any significant impact on the rising trend. The declining equity markets and US dollar against other regional currencies further fuelled a rising trend, they added.
PTI
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Bombardier Transportation
New Delhi, February 5 The company is strengthening its commitment to offer solutions and services to the Indian Railways by introducing state-of-the art technologies, transfer of technology and localisation of manufacture and global sourcing from India.
TNS
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Ashok Leyland
New Delhi, February 5 |
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Nabard |
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