B U S I N E S S

GDP growth to plunge to 4.4 pc
New Delhi, February 7
India is estimated to post a low 4.4 per cent economic growth in the current financial year (2002-03), against 5.6 per cent in the last year, in the face of a huge negative growth of 3.1 per cent in agriculture, hit badly by a monsoon failure.

Oil hits $ 34.5 due to war fears
Singapore, February 7
Oil prices rose on Friday on growing worries about war in Iraq after US President George Bush told Mr Saddam Hussein ‘’the game is over’’ and that he would support a new UN resolution authorising force.

A customer tries on a handmade gold ornament in Kolkata on Friday. More than 500 shopkeepers are taking part in a four-day gold exhibition. Gold vaulted to a seven-year high on Tuesday as Washington prepared to make its case against Iraq to the UN Security Council, prompting nervous investors to seek a safe cache for their money. — Reuters

GD Midea, Haier to enter market
New Delhi, February 7
Several Chinese electronic companies, including the $87 billion conglomerate Haier group, are firming up plans to enter the Indian market. “We are preparing to enter the Indian market later this year with a range of household appliances,” Zhang Xiaolan, Director of R&D of the Haier group, said here today at an infrastructure fair of the CII.

Miss India World 2003 Ami Vashi and Miss India Earth Shweta Vijay attend the launch of a Valentine’s Day jewellery collection in Mumbai on Friday. — Reuters

Traders threaten not to pay tax
Bathinda, February 7
The Punjab Pardesh Beopar Mandal today threatened that traders would not pay sales tax from April 2003 if the state government did not withdraw the notification issued in connection with the introduction of Exim forms.

Battery-run scooters in Delhi
New Delhi, February 7
Battery-operated Chinese scooters and bicycles have now marked their entry in Delhi. Planet 7 International today introduced a range of these scooters and bicycles, which are made in China with hi-tech Japanese batteries. 

Palio boosts Fiat sales by 35 pc
Mumbai, February 7
Boosted by Palio sales, Fiat India has registered a 35 per cent rise in sales at 1,015 units in January compared to 751 units sold in the previous month. The company sold 850 Palios, followed by Siena, Adventure and Weekend at 110 units while Fiat Uno accounted for the balance 55 units, the company said in a release here today.

CORPORATE NEWS

Hughes Soft ties up with QNX Software
New Delhi, February 7
Software company Hughes Software Systems today announced an alliance with QNX Software Systems to offer integrated solutions in the telecom market.

• RIL to invest $ 563m in oil

• Ready-to-cook items by Satnam
  

ROUND-UP

Bids for HPCL invited on Feb 10
New Delhi, February 7
The government will flag off the disinvestment process in HPCL by inviting initial bids for 34 per cent stake in the Oil PSU, on February 10. The Expressions of Interest (EoI) would be invited from parties interested in bidding for government equity in the company on February 10, official sources said. PTI

• Rs 690 cr Nabard loan to Haryana

• DuPont eyes major expansion

Video
	Aero India 2003 in Bangalore becomes a battle ground for some of the companies to exploit India's market potential. (28k, 56k)

GDP growth to plunge to 4.4 pc

New Delhi, February 7
India is estimated to post a low 4.4 per cent economic growth in the current financial year (2002-03), against 5.6 per cent in the last year, in the face of a huge negative growth of 3.1 per cent in agriculture, hit badly by a monsoon failure.

According to the advance estimates released today by the Central Statistical Organisation (CSO), the GDP at factor cost at constant (1993-94) prices is likely to attain a level of Rs 13,20,733 crore in 2002-03, against the quick estimates of GDP for 2001-02 at Rs 12,65,429 crore, representing a growth rate of 4.4 per cent.

While agriculture, forestry and fishing is estimated to finish at the bottom of the growth table with minus 3.1 per cent, against 5.7 per cent last year, trade, hotels, transport and communication is likely to emerge on top with a growth rate of 7.8 per cent, also down from 8.7 per cent a year ago.

Manufacturing, which has a heavy weightage in industrial growth index, grew 6.1 per cent, against 3.4 per cent a year earlier.

The estimated growth rates for other sectors with the previous year's figures in parenthesis are: construction 7.1 per cent (3.7), financing, insurance, real estate and business services 6.5 per cent (4.5), community, social and personal services 6.4 per cent (5.6), mining and quarrying 4.8 per cent (1), and electricity, gas and water supply 5.2 per cent (4.3).

The CSO's growth estimates fall far short of the projection of 5 to 5.5 per cent in the first ever mid-year economic review submitted to Parliament by Jaswant Singh and a similar lowered estimate by the RBI.

According to the CSO estimates, the GNP at factor cost is likely to be Rs 1,309,917 crore, representing a 4.2 per cent growth over Rs 1,257,043 crore in 2001-02 when the GNP growth was 6 per cent.

The net national product (NNP), known as National Income, is estimated at Rs 1,161,966 crore, a growth of 4.2 per cent, against Rs 1,115,157 crore in 2001-02, when the NNP grew 6.2 per cent.

The net domestic product (NDP) is likely to grow 4.4 per cent at Rs 1,172,781 crore, against 5.7 per cent a year ago at Rs 1,123,543 crore.

According to the latest estimates available on the index of industrial production (IIP) for April-November, 2002-03, mining registered a growth rate of 5.7 per cent, followed by manufacturing with 5.4 per cent and electricity with 4 per cent.

The growth rates of these sectors during the same period of 2001-02 were 0.7 per cent, 2.6 per cent and 2.6 per cent.

The projections for 2002-03 were made on the basis of these trends.

Oil hits $ 34.5 due to war fears

Singapore, February 7
Oil prices rose on Friday on growing worries about war in Iraq after US President George Bush told Mr Saddam Hussein ‘’the game is over’’ and that he would support a new UN resolution authorising force.

“Iraq remains a central focus of the market as the diplomatic talk shifts towards discussion of defining the required authority for war,’’ said Sydney-based independent energy analyst Simon Games-Thomas.

US light crude futures rose as much as 42 cents to $34.58 per barrel in Asia, the highest price in three weeks and close to a 26-month high of $35.20 traded in January.

The Middle East tensions and falling supplies in the US market, the world’s biggest energy consumer, have kept benchmark prices bubbling for months.

On Thursday, benchmark Brent crude trading in London hit a 26-month high of $ 32 a barrel and US heating oil prices rose to $ 104.9 a gallon, also a 26-month high, after data this week showed a record weekly drop in US winter fuel supplies.

Traders fear war in Iraq would disrupt supplies from the Middle East, which provides 40 per cent of the world’s crude trade of 40 million barrels per day (bpd).

But OPEC may have enough spare production capacity to prevent the need for consumer countries to release strategic reserves in the event of war in Iraq, executive director of the International Energy Agency (IEA) Claude Mandie said. Reuters

GD Midea, Haier to enter market

New Delhi, February 7
Several Chinese electronic companies, including the $87 billion conglomerate Haier group, are firming up plans to enter the Indian market.

“We are preparing to enter the Indian market later this year with a range of household appliances,” Zhang Xiaolan, Director of R&D of the Haier group, said here today at an infrastructure fair of the CII.

A global leader in air-conditioning, Haier group has cut into the U.S. market share of multinationals like General Electric and Whirlpool with its lower-end refrigerators and air-conditioners.

Controlling 30 per cent of the Chinese market in household appliances, Haier has forged joint ventures with Sanyo of Japan and Sampo of Taiwan in its bid to grab a larger global market.

Also studying the Indian market keenly are 76 Chinese companies representing a range of industries from heavy to light engineering goods, consumer goods and electronics for possible collaboration and business links.

Xia Lu, brand manager of GD Midea Holding Co Ltd, disclosed plans of entering the Indian market to tap the household appliances segment. The company's major strength is low-priced microwaves. IANS

Traders threaten not to pay tax
Tribune News Service

Bathinda, February 7
The Punjab Pardesh Beopar Mandal today threatened that traders would not pay sales tax from April 2003 if the state government did not withdraw the notification issued in connection with the introduction of Exim forms.

While taking a decision to this effect here today, activists of mandal alleged that though Chief Minister Amarinder Singh had said that the implementation of the Exim form system had been postponed till the implementation of the VAT system, the traders were being harassed at sales tax barriers by officials.

Mr Madan Lal Kapoor and Mr R.D. Gupta, president and chairman of the Punjab Pardesh Beopar Mandal, respectively, in a joint press statement here today, said the traders were being harassed on the pretext that the notification issued for the implementation of the Exim forms system had not been withdrawn yet despite the Chief Minister saying that its implementation had been postponed.

Battery-run scooters in Delhi

New Delhi, February 7
Battery-operated Chinese scooters and bicycles have now marked their entry in Delhi.

Planet 7 International today introduced a range of these scooters and bicycles, which are made in China with hi-tech Japanese batteries. The company soon plans to start manufacturing in India, in collaboration with a Chinese company.

“These bicycles and scooters run on a rechargable battery that can give 12,000 km on an average of 55 km per charge”, Mr J.D. Chaudhry, General Manager, Planet 7 International, told newspersons here. He said these vehicles will be available within a month. Priced above Rs 40,000 (scooters) and between Rs 5,000 and Rs 18,000 (bicycles), these will be available under the brand name “Wezard”. TNS

Palio boosts Fiat sales by 35 pc

Mumbai, February 7
Boosted by Palio sales, Fiat India has registered a 35 per cent rise in sales at 1,015 units in January compared to 751 units sold in the previous month. The company sold 850 Palios, followed by Siena, Adventure and Weekend at 110 units while Fiat Uno accounted for the balance 55 units, the company said in a release here today.

DaimChrys vehicles

Daimler Chrysler India is seriously considering to introduce its commercial vehicles soon to strengthen presence in the Indian market.

Managing Director and CEO Hans M Huber said here today that the company, going ahead with the idea of making possible entry in this segment, was at present making a thorough appraisal of the market.

Leyland sales rise 49.3 pc

Ashok Leyland today reported a 49.3 per cent sales growth in January, 2003, to 3,531 units over 2,364 units last year.

Domestic sales went up by 51.6 per cent to 3,355 units, while exports surged by 15.7 per cent to 176 units during the month, a company statement said here. Agencies

CORPORATE NEWS

Hughes Soft ties up with QNX Software

New Delhi, February 7
Software company Hughes Software Systems today announced an alliance with QNX Software Systems to offer integrated solutions in the telecom market.

The partnership brings together QNX’s technology with Hughes’ protocol stacks for convergent networks, together offering integrated solutions to the Original Equipment Manufacturers (OEM) telecom space, a company release said.

“HSS’ comprehensive suite of protocol stacks on the QNX operating system offers network equipment providers a powerful way to develop new high performance products across diverse platforms for a wide range of the telecom markets,” HSS Assistant Vice-President Anita Gupta said.

RIL to invest $ 563m in oil

Reliance Industries (RIL) has committed to invest $ 563 million in exploration of oil and gas in the nine blocks it won in consortium with Hardy Oil of the UK in the third round of New Exploration Licensing Policy (NELP).

Of the $ 562.99 million investment committed in three phases of exploration and production, the consortium of RIL and Hardy Oil will invest $ 468.27 million dollar in seven deepwater blocks, informed sources said here.

The consortium will invest $ 156.99 million in the first exploratory phase in the nine blocks, licence agreements for which it signed earlier this week.

Ready-to-cook items by Satnam

Satnam Overseas is diversifying into ready-to-cook products under the brand names of Rice & Spice and Heat & Eat.

Executive Director of Satnam Overseas Nitin Arora told reporters here today that the company, which had already obtained the status of a star trading house from the government, was coming out with premixed ready-to-cook pulao and authentic Indian curries.

Arora said Satnam was aiming to garner a revenue of Rs 25 crore from these products in the current financial year and the company’s overall turnover would be around Rs 450 crore.

Satnam Overseas is also aiming a revenue of Rs 600 crore in the next financial year, Arora said. The company markets branded basmati rice under the brand names Super Kohinoor, Trophy, Charminar, Rose and Falcon. PTI

ROUND-UP

Bids for HPCL invited on Feb 10

New Delhi, February 7
The government will flag off the disinvestment process in HPCL by inviting initial bids for 34 per cent stake in the Oil PSU, on February 10. The Expressions of Interest (EoI) would be invited from parties interested in bidding for government equity in the company on February 10, official sources said. PTI

Rs 690 cr Nabard loan to Haryana

Chandigarh
Nabard has sanctioned over 690 crore to Haryana for various rural infrastructure development projects, including construction of drainage link roads and bridges and flood protection works.

Inaugurating the State Credit Seminar for Haryana for 2003-2004 organised by Nabard here today, Commissioner and Secretary, of the Institutional Finance and Credit Control of Haryana Umesh Nanda said these projects would benefit 187 villages. TNS

DuPont eyes major expansion

New Delhi
DuPont said today it had charted an aggressive expansion strategy for Indian operations as part of the company's strategy to double sales in three years.

"We are targeting to double the company sales in three years in the country," Charles Holliday, Chairman and CEO of DuPont, said at a business meet organised by FICCI here. IANS

BIZ BRIEFS

Central Bank
Mumbai, February 7
The Central Bank of India today cut interest rates by 50-basis points across various slabs for housing finance with a repayment period ranging from five years to 20 years. In a statement here today, the bank said the reduction applies to floating as well as fixed rate categories of housing finance with effect from January 10. UNI

J K Pharma
New Delhi, February 7
J K Pharmachem yesterday reported a net profit of Rs 96 lakh on a turnover of about Rs 27 crore for quarter ended December 2002. “The company has made an impressive turnaround and declared a net profit of Rs 96 lakh on a turnover of Rs 27 crore compared net profit of Rs 14 lakh on a turnover of Rs 27.6 crore in the corresponding quarter of previous year,” a company release said here. PTI

BoP rates cut
Chandigarh, February 7
Bank of Punjab has slashed rates of interest on home loans from February 1, 2003. The rate of interest will be between 8.75 per cent and 9.75. The EMIs per lakh are Rs 2,051 for 5 years, Rs 1,272/- for 10 years, Rs 1,052/- for 15 years, Rs 942/- for 20 years. TNS

LIC house rates
Chandigarh, February 7
LIC Housing Finance has reduced the interest rates on the housing loans from February 4. The floating rate of interest for the slab of one to six years is 8.75 per cent seven to 12 years is 9 pre cent and 13 to 20 years is 9.75 per cent. The fixed interest rates have also been reduced. TNS

Power reforms
New Delhi, February 7
Prime Minister Atal Behari Vajpayee will convene a meeting of chief ministers and energy ministers of states to review the progress of power reforms. Speaking to newspersons after a seminar organised by the CII here, Power Minister Anant Geete said he had also taken up the issue of providing tax relief on mega power projects with the Prime Minister. TNS

Forex reserve
New Delhi, February 7
The Centre is considering a move to divert a portion of the forex reserves to Exim Bank to facilitate a greater credit flow to the manufacturing sector for investing in overseas locations, Secretary in the Ministry of Heavy Industries and Public Enterprises Naresh Narad said. TNS

BoI loan scheme
Mumbai, February 7
The Bank of India (BOI) has introduced BOI Star Mortgage Loan scheme for persons engaged in trade, commerce, professionals, individuals with high net worth, salaried people and agriculturists. PTI