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Saturday,
March 8, 2003, Chandigarh, India  
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CCD to discuss IA,
A-I disinvestment
India, Afghanistan sign trade pact
Microsoft issues first-ever dividend |
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Demutualisation of bourses soon
Samsung Elec to build handset plant in India
Beopar Mandal to oppose VAT
Shell applies for licence to sell petrol
Hike in iron prices hits industry
Fiat cuts prices
Steel industry gets relief Improve milk quality: NDDB GRAPHIC: JOB SEEKERS
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CCD to discuss IA,
A-I disinvestment New Delhi, March 7 Civil Aviation Minister Syed Shahnawaz Hussain told newsmen here today that the next CCD meeting would take up the issue of removal of Indian Airlines and Air-India from the disinvestment list. The removal of both airlines from the disinvestment list is a pre-requisite for the two airlines’ plans to go for fleet expansion. After the approval of the CCD the issue of fleet augmentation would go to the Cabinet Committee for Security (CCS) for final
clearance. Indian Airlines has proposed to acquire 43 new aircraft for replacement of the entire fleet of old aircraft and for capacity expansion. Air-India has decided to acquire 17 new aircraft. Mr Hussain, who today formally handed over the third passenger airliner to Afghanistan President Hamid Karzai, said, “We want to go about the whole process in a transparent way. Everyone is positive about the whole issue.” Before the handing over ceremony, Mr Karzai said, ‘’It is a very kind gesture on the part of India to give three planes to Afghanistan. It will help Afghan Airlines perform better.’’ The three planes that have been handed over to Afghanistan after full refurbishing belong to Air-India. India had also trained Afghan crew. Today’s gift, Airbus A-300 B4, will be flown to Kabul by Afghan crew. The planes are a part of the $ 100 million package for reconstruction of Afghanistan announced by India.
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India, Afghanistan sign trade pact New Delhi, March 7 The PTA was signed here yesterday between Minister of Commerce and Industry and Law and Justice Arun Jaitley and Afghanistan Minister of Commerce Sayed Mustafa Kazemi. The objective of the PTA is to provide grant of concessions on a range of products of export interest to Afghanistan, as a part of India’s efforts to give an impetus to strengthening of trade and economic relations between the two countries. Products covered under the agreement will be eligible for preferential treatment provided they satisfy the Rules of Origin laid down under the agreement. The agreement also provides for “safeguard measures” to suspend or withdraw preferential treatment in case of any product causing or threatening to cause serious injury to the importing contracting party. India is granting 50 to 100 per cent tariff concession on 38 items, dry fruits, fresh fruits, seeds, medicinal herbs and precious stones and in turn India is receiving duty-free access on eight tariff lines of its export interest, which include black tea, pharmaceutical products, ayurvedic and homoeopathic medicines, refined sugar and cement, etc.
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Microsoft issues first-ever dividend Seattle, March 7 At 8 cents a share, the annual payout won’t be huge to the average investor, analysts said. But it still marks a significant change for the software company that went public in 1986 and has long hoarded its cash — now $ 43.4 billion — for research, acquisitions and legal claims. Of course, there are the not-so-average investors. Gates, who directly owns more than 1.2 billion shares of stock in the company he helped found in 1975, will receive a dividend of about $ 96.5 million. Microsoft Chief Executive Steve Ballmer will receive about $ 37.7 million. Another 27 executive officers and directors will receive a total of about $ 9.5 million, based on shares reported in the company’s proxy statement. Microsoft announced the dividend in January, and issued a two-for-one stock split in February. The company has about 10.7 billion shares outstanding. When announcing the dividend, Chief Financial Officer John Connors noted that Microsoft was the only company of the 30 in the Dow Jones industrial average not to issue a dividend. With many of Microsoft’s legal troubles nearing conclusion, Connors said the company felt it could afford the dividend. The payment, though modest compared to other companies in the S&P 500, is still a monumental change for Microsoft, said Howard Silverblatt, an analyst in Standard & Poor’s quantitative services division.
AP
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Demutualisation of bourses soon New Delhi, March 7 SEBI Chairman G.N. Bajpai would shortly meet representatives of stock exchanges to discuss the process of demutualisation and setting up of new commodities exchange in the country. “Demutualisation will be started soon. An announcement has been already made in the Budget. We are ready,” Bajpai told PTI after a seminar of the Institute of Internal Auditors of India here today. Finance Minister Jaswant Singh had stated in his budget that necessary amendments to the Securities Control and Regulation Act (SCRA) would be proposed in the current session of Parliament which would enable the bourses to separate the ownership of the stock exchanges from management resulting in demutualisation. Jaswant Singh also announced a one-time exemption from capital gains tax the income that accrued to the stock exchanges during their demutualisation which had to be approved by SEBI. The government last year asked SEBI to prepare the blueprint for market reforms, including demutualisation of the bourses. SEBI had appointed a committee under Justice M.H. Kania to suggest the roadmap. The SEBI committee had proposed amendments in the SCRA, the Income Tax Act among other things to facilitate demutualisation. Referring to the legislation, Bajpai said “it is up to the government to carry out the changes in legislation.” SEBI is now waiting for the bourses, including Bombay Stock Exchange, Calcutta Stock Exchange and Delhi Stock Exchange to come up with their corporatisation plans. “We are yet to receive their demutualisation plans,” Bajpai said. Some of the bourses wanted exemption from stamp duty and sales tax during the process of demutualisation. The process of demutualisation would involve setting up of a corporate entity which would manage the bourse. Some of the exchanges like BSE and DSE had already set up such entities but were awaiting the final legislation. Contrary to the earlier set-up of brokers representing majority of the board of stock exchanges, the new set-up envisages majority of independent directors.
PTI
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Samsung Elec to build handset plant in India
Seoul, March 7 “We are reviewing the need to build a mobile handset plant in India, but we haven’t made decision yet,” Samsung said in a filing to the Korea Stock Exchange. The technology company is also the world’s largest memory chip maker. Samsung aims to sell 52.5 million handsets this year, up 23 per cent from a year earlier, in a market that is estimated to grow to 435 million units. Samsung, the world’s fastest growing and most profitable maker of mobile phones, grew its sales by some 50 per cent last year while the worldwide handset market expanded around 5 per cent. It has achieved this growth by pioneering colour screens, musical ringtones and camera phones.
Reuters
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Beopar Mandal to oppose VAT Karnal, March 7 The decision was taken at a meeting of the Beopar Mandal which was attended among others by the State Vice-President and the State Secretary of the Mandal. The meeting felt that despite improvement over the Sales Tax Act, the VAT scheme did not meet the expectations of the traders. According to the VAT scheme, goods would be taxed at every stage of its transfer till it reached the customer. The traders felt that calculation of tax on profits at each step would be difficult and cumbersome.
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Shell applies for licence to sell petrol
New Delhi, March 7 Shell India Manager (Business Development) S. Ravi made a formal application for authorisation to set up retail outlets along with an application fee of Rs 10 lakh to the Petroleum Ministry, highly placed sources said here. The company has the option to import petrol and diesel through the state canalising agency Indian Oil Corporation (IOC) or tie up with the domestic refiners. Petroleum Ministry had earlier agreed to Shell’s request to be freely allowed to import petrol, diesel and jet fuel (Aviation Turbine Fuel) for retailing in India.
PTI
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Hike in iron prices hits industry
Batala, March 7 The Batala industry is already reeling under heavy recession owing to the implementation of economic reforms by the government. The manufacturers are not in a position to book orders for their products due to the hike in prices in the pig-iron (raw material) as a result of which the crisis has further aggravated leaving any option for the industrialists unit to close down their units. Mr P.L. Sharma, general secretary, Small Scale Foundry Association, Batala, said adequate measures were required to be taken by the government to check the super in prices of raw-material to save the
industry. OC
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Fiat cuts prices
New Delhi, March 7 Fiat Palio 1.2 EL and ELX version will be cheaper by Rs 19,000 and Rs 22,000, respectively, the auto company said in a statement here today. It said the prices will be effective across the country with immediate effect. At present, Fiat has an impressive range of 12 petrol variants comprising B and C segments.
UNI
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Steel industry gets relief Steel user industry of Punjab seems to be on its way out. Steel prices have risen so sharply that no entity can absorb it. Along with steel fuel oils have gone up, almost double. Forging industry which has these two main inputs is under tremendous pressure. Bicycle industry dependent on flat products can hardly absorb the continuously rising prices of steel. Union Budget expected to give some relief to these sectors. It has rather frustrated the industry on this count. Custom duty on steel import at 25 per cent has been kept intact. On the other hand custom duty on capital equipment for mega power and road projects has been reduced to zero and 5 per cent. Indigenous producers of these equipments will get costly imported steel. They will bow down outside competition. Instead of losing government revenue on this head duty on steel could be brought down to this level. There is a feeling gradually developing in the minds of steel users that government is
overlooking the messy development taking place in the steel producing sector. Some major facts have come to surface with regard to the bail out of three steel projects. This bail out and other connected factors are the main villain for the sorry state. It is alleged that three steel projects have been given a cumulative bail out of Rs 7,000 crore. Financial institutions lent money to these projects even getting personal guarantees. Can any body else get loan without giving collaterals? On questioning Finance Ministry is reported to have replied that this is a sellers market and lenders have to chase good borrowers. When these projects have been bailed out number of times it is any body’s judgement to call them good borrowers. Some of them have been on the RBI’s wilful defaulters’ list. UTI got bail out package of Rs. 14,500 crore. This amount is to be distributed on 20,000 unit holders including sick and elderly ones. This is understable. But Rs. 7,000 crore package is to be absorbed only by three entities. It is not a case of wrongful enrichment of already rich people? There is a wider question even on the merit of these projects. Except Jindal which uses Corex Technology the other two are using out-dated technology. Apart from other inferences should public money be sunk on such out-dated projects. In the post liberalisation period 19 steel projects covering a capacity of 12.8 million tonnes were financed. Only nine plants with capacity of 5.75 million tonnes have been commissioned. Are other promoters good borrowers? Is not the wrong choice of promoters responsible for today’s woes’ of steel users ? There is another far searching effect of wrong choice of steel project promoters Joint Plant Committee’s study has revealed that India is the 9th most cost competitive steel producer. India has cost advantage over France, Germany, Japan, Canada and U.S.A. Iron ore and sinter pellets costs India $ 39 compared to $ 75 for China. Had competent promoters been chosen the situation on steel would have been different? Tata in India is the world’s lowest cost producer. Another factor which is harming Punjab and other adjoining states is the removal of freight equalisation principal on steel. West Bengal is now banking on this factor to promoter steel sector. Government should reconsider this vital issue. Import of steel has to be liberalised by reducing custom duty and removing other superfluous restrictions like BIS condition. Silent and slow but sure situation is developing which endanger the steel based industry of Punjab in particular. Resourceful businessmen have started importing cheaper components from China to displace local manufacturers. Is this situation palatable? |
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Improve milk quality: NDDB Chandigarh, March 7 “This is our greatest and most difficult challenge”, she said, delivering the key-note address at the 32nd Dairy Industry Conference which opened here today. The three-day conference was inaugurated by Mr G.S. Atwal, Parliamentary Secretary to the Punjab Government, in the absence of the Chief Minister. A large number of delegates and representatives of the dairy industry are attending the conference. Those who attended the conference include Dr B.C. Gupta, Financial Commissioner, Cooperatives, Punjab, Dr O.S. Tomar, Chairman, Indian Dairy Association (North Zone), Dr B.M. Mahajan, Managing Director, Punjab Milkfed.
TNS |
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In video: India gifts third Airbus to
Afghanistan. (
