Sunday, May 11, 2003, Chandigarh, India






National Capital Region--Delhi

THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

TRAI to review IUC regime
New Delhi, May 10
The Telecom Regulatory Authority of India (TRAI) today decided to review the existing Interconnect User Charges (IUC). The tariff regime, which had threatened to snowball into a major political issue as it put fixed line phone calls at a relative price disadvantage, comes under review barely ten days after it was rolled out from May 1, 2003.

HC issues notices to Centre, BSNL
Jaipur, May 10
The Rajasthan High Court has issued show cause notices to the Centre, Union Telecom Secretary Vinod Vaish and BSNL Chairman Prithipal Singh, treating a letter by a senior citizen, which challenged telecom tariff hike that was introduced from May 1, as a Public Interest Litigation (PIL).

IUC system to affect 2 million PCO owners
Chandigarh, May 10
The inter-connectivity usage charge (IUC) system introduced by the BSNL since May 1, is likely to prove a death knell for over 2 million PCO owners in the country unless Communications Minister, Mr Arun Shourie, prevails upon the TRAI to find out a way to save them.

Decision on IT plans put off
Chandigarh, May 10
Even as eyebrows are being raised regarding the momentum of the Haryana Government’s much-hyped IT initiative, the proceedings of the last meeting of the Technical Committee of the Information Technology Secretariat of the Haryana Government held here recently sent mixed messages.

Steps to improve FCI functioning
New Delhi, May 10
The government is working on various recommendations made by the Administrative Staff College, Hyderabad to improve the working of the Food Corporation of India (FCI), the Lok Sabha was informed yesterday.

 


Bringing together style and technology in a very different form was "Style Unwired 2003" held in Delhi.
(28k, 56k)


EARLIER STORIES
 
Bill Gates, co-founder of the Bill & Melinda Gates Foundation, talks to Brett Scherbenske
Bill Gates (R), co-founder of the Bill & Melinda Gates Foundation, talks to Brett Scherbenske at the Watertown Regional Library in Watertown, South Dakota, on Friday. Brett's mother Shelley also watches in the background. Gates was in South Dakota to see the impact of Gates Foundation-funded computers in area libraries.  — Reuters

Pak trade team to visit India in June
Islamabad, May 10
A delegation of Pakistani businessmen will visit India next month in an attempt to revive a trade pact signed in 1999.

Rajasthan Bank Chairman held
Jaipur, May 10
Chairman of the Bank of Rajasthan Praveen Tayal was arrested here today in a criminal case for allegedly duping a firm of Rs 32 lakhs as a director of a company, the police said.

Alto drives ahead of Zen, WagonR
New Delhi, May 10
Maruti Udyog Ltd today said its Alto has overtaken Zen and WagonR in growth during fiscal 2002-03.

Centre for sugar millers paying SAP to farmers
New Delhi, May 10
The Centre has accepted, in principle, the Uttar Pradesh Government’s plea that instead of insisting on statutory minimum price (SMP), the millers should pay higher state advisory price (SAP) price at around Rs 95 per quintal to sugarcane farmers in the state.

Himachal urged to rationalise sales tax
Shimla, May 10
The Indian Cellular Association (ICA) has urged the Himachal government to rationalise sales tax on mobile handsets to check the loss of revenue due to the presence of the grey market.

Thai Air to pay $ 1 lakh to anyone contracting SARS
Bangkok, May 10
In a bid to rebuild shattered traveller confidence, the Thai government said today it will compensate anyone who contracts SARS on Thai Airways with $ 100,000 the national news agency reported.

AVIATION NOTES

Ultra-modern look for Delhi, Mumbai airports
S
UBJECT to Finance Ministry’s clearance, two international airports at Delhi and Mumbai will soon wear ultra-modern look. This is a very happy development because these two airports need immediate upgradation and renovation.

  • A firm stand


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TRAI to review IUC regime
Tribune News Service

New Delhi, May 10
The Telecom Regulatory Authority of India (TRAI) today decided to review the existing Interconnect User Charges (IUC). The tariff regime, which had threatened to snowball into a major political issue as it put fixed line phone calls at a relative price disadvantage, comes under review barely ten days after it was rolled out from May 1, 2003.

Till the time the review is complete within a tentative period of three months, the present IUC regime will continue to prevail.

The decision of TRAI to conduct a review, has, however, raised more than few eyebrows as the proposed independence of the regulator from political interference comes under question. The existing IUC regime was initially scheduled to come into force from April 1, 2003 but later postponed by one month.

The service providers, meanwhile, have been allowed to implement tariff packages after conducting a "self-check" for a period ranging between one to three months.

"The self-check is important because the Authority has noted a large number of tariff packages with similar distortions", TRAI said in a statement here.

TRAI is also going to examine in the consultation process the issue of how many tariff plans should be allowed for each service provider. Under the existing regime, a service provider is allowed to offer a maximum of 25 packages.

It has so far examined 188 fixed line tariff packages, and "intervened" in 64 packages, allowing 124 packages to be implemented.

It would also look at the desirability of withdrawing forbearance that is presently given to the tariffs for cellular mobile and WLL-M phones.

The regulator has already asked service providers to give a clear indication of the actual amount paid by the subscriber for calls made within the free call allowance and outside.

"Generally, in a number of tariff packages with lump sum payments in addition to call charge, the actual amount of call charge is more that the amount that is specified for the customer’s information. The Authority will prescribe the manner in which such tariffs should be announced so that there is transparency about the actual call charge paid by the customer", TRAI said.

The government has been at the receiving end for the IUC regime in its present form as it involves increase in fixed line tariffs on a comparative basis.

Communications Minister Arun Shourie has received a lot of flak and had to face the embarrassment of being criticised in the floor of Parliament by MPs from BJP and NDA allies.

TRAI will also examine the impact of the IUC and the CPP regime on the market situation which is likely to change substantially. The consultation process will also need to consider the sustainability of any IUC regime in providing the necessary revenues to recover the access deficit.

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HC issues notices to Centre, BSNL

Jaipur, May 10
The Rajasthan High Court has issued show cause notices to the Centre, Union Telecom Secretary Vinod Vaish and BSNL Chairman Prithipal Singh, treating a letter by a senior citizen, which challenged telecom tariff hike that was introduced from May 1, as a Public Interest Litigation (PIL).

Notices were issued by a division bench comprising S.K. Kesot and K.S. Rathore yesterday on the letter sent by one Shripal Jain. Court fixed May 28 for further hearing in the case.

The letter submitted that increase in telephone tariffs and reduction in number of free calls by state owned BSNL would put an additional financial burden on common consumers.

Whereas, BSNL’s pacakages under its plan under new tariffs were aimed at benefiting rich consumers, Mr Jain stated in the letter. UNI

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IUC system to affect 2 million PCO owners
Manoj Kumar
Tribune News Service

Chandigarh, May 10
The inter-connectivity usage charge (IUC) system introduced by the BSNL since May 1, is likely to prove a death knell for over 2 million PCO owners in the country unless Communications Minister, Mr Arun Shourie, prevails upon the TRAI to find out a way to save them. A delegation of the STD and PCO owners associations from the region has approached him to find ‘some solution’ as the new tariff would turn them jobless.

The associations has claimed that thousands of PCO and STD booth owners would become jobless with the introduction of new tariff, as customers would not be able to utilise these booths for making calls on the mobile and WLL phones.

Mr Pramod Kumar, one of the members of the Punjab PCO Owners Association, said though the MTNL, basic telecom operator in Delhi and Mumbai has promised to install new machines at the booths soon, to capture the differential tariff structure. The BSNL should either install these machines, at the booths or should ask the TRAI to work out separate package for them, like for the internet usage.

A senior official of the BSNL claimed that there were about 5.5 crore phones for over 100 crore population, with tele density of about 5 per 100. Out of these 4 crore were fixed line phones and about 1.5 crore mobile phones. At present, he said, 70 per cent of traffic was still routed through fixed lines.

The PCO owners association has urged the Communication Minister and TRAI to ‘‘work out a separate package for them”.

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Decision on IT plans put off
Tribune News Service

Chandigarh, May 10
Even as eyebrows are being raised regarding the momentum of the Haryana Government’s much-hyped IT initiative, the proceedings of the last meeting of the Technical Committee of the Information Technology Secretariat of the Haryana Government held here recently sent mixed messages.

While IT plans of some major departments were okayed at the meeting, decision regarding two proposals covering crucial aspects of the IT policy was deferred.

According to the proceedings of the meeting, an official of the IT Secretariat made a presentation about design of the Haryana Wide Area Network. However, the item was deferred for the next meeting since the technical experts present at the meeting were not ready with their comments. For similar reason, a proposal on establishment of state data centre was also deferred for the next meeting.

Decision on IT plans of some other departments were also deferred, including that of the PWD Public Health Department. The department was asked to recast its plan by incorporating recommendations made at the meeting.

A proposal for computerisation of the Development and Panchayats Department was also deferred as the Director, Panchayats, sought more time to examine the plan prepared by the NIC.

IT plans of the Haryana State Co-operative Apex Bank, the Sports and Youth Welfare Department, the Haryana State Legal Services Authority, the Primary Education Department and the Health Department were recommended at the meeting for consideration.

A proposal for automation of primary agricultural societies was also recommended favourably at the meeting. The committee though suggested that the work might be divided into phases. In the first phase, around 500 bigger and viable societies might be taken up and the total investment made for this purpose should be Rs 2 crore, observed the committee.

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Steps to improve FCI functioning

New Delhi, May 10
The government is working on various recommendations made by the Administrative Staff College, Hyderabad to improve the working of the Food Corporation of India (FCI), the Lok Sabha was informed yesterday.

Minister of Consumer Affairs, Food and Public Distribution Sharad Yadav said during Question Hour it would not be possible for the government to accept in toto the entire report which has strongly suggested the privatisation of FCI. Its acceptance would mean the entire concept of the creation of FCI will be lost, he said.

On the basis of the report the government has already taken action against a number of FCI officials, a number of them have been charge-sheeted, large number of them been dismissed and several officers have already been put under suspension. The minister said the FCI is the largest foodgrains handling agency in the world. It requires constant innovative steps and monitoring towards reducing the handling cost and also to plug its various possible areas of pilferages. UNI

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Pak trade team to visit India in June

Islamabad, May 10
A delegation of Pakistani businessmen will visit India next month in an attempt to revive a trade pact signed in 1999.

“An understanding was reached between the business communities of the two countries to enhance bilateral trade but this could not be implemented due to tensions caused by the Kargil crisis,” Ilyas Ahmed Bilour, a leading businessman and head of the India-Pakistan Traders Association (IPTA), said.

At that time, Indian and Pakistani businessmen had decided to enhance trade without depending on their governments to further the process, said Bilour.

“Kargil happened and the tension continued to rise, making things difficult for us,” he said, referring to the incursion by Pakistani troops into Jammu and Kashmir and the operation mounted by the Indian Army to evict them. IANS

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Rajasthan Bank Chairman held

Jaipur, May 10
Chairman of the Bank of Rajasthan Praveen Tayal was arrested here today in a criminal case for allegedly duping a firm of Rs 32 lakhs as a director of a company, the police said.

Tayal was arrested from a five-star hotel this morning by the police who wanted to take him to Kota to produce him in the court which had issued the warrant against him after he and five other directors of Tayal Krishna Capital Market Company were chargesheeted by the police in the case.

However, Tayal was admitted to a hospital here after he complained of giddiness. Later in the day he was granted bail by the Chief Judicial Magistrate.

The Overseas Capital Market Company had filed a criminal case against Tayal and five other directors of his company in 2000 accusing them of taking Rs 32 lakh from it but neither allotting them shares nor returning the money.

Police said efforts were on to arrest the other directors of the company against whom arrest warrants have been issued. PTI

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Alto drives ahead of Zen, WagonR

New Delhi, May 10
Maruti Udyog Ltd today said its Alto has overtaken Zen and WagonR in growth during fiscal 2002-03.

"Alto's upper end version managed to take Europe for a joyride and registered a whopping 43 per cent in sales during the year," a company spokesperson told PTI.

Asked if there would be a price cut by Rs 50,000 to further augment the premium small car's position, the spokesperson said, "no price reduction is happening".

In Western Europe, 24,000 units of the higher end Alto has been sold in 2002-03. The Alto, along with the Zen and WagonR, is Maruti's brands in the compact car segment.

While the Alto's premium small car drove well in the domestic market, the higher end version made a mark in the most competitive global small car markets. Manufactured entirely in Gurgaon, the Alto is currently being exported to Germany, UK and other Western European markets. In 2002, Alto notched the top slot among the small car brands in the Netherlands.

Launched in September 2000 in the domestic market, Alto has clocked sales of nearly 60,000 so far. Its performance in the export market enabled Maruti to export over 32,000 units in 2002-03, a growth of 163 per cent over the previous year.

TVS Motor

PUNE: TVS Motor Company yesterday announced the launch of three new racing bike models — TVS 125X, TVS 250X and TVS 400FX, exclusively for motocross and road racing here.

"After TVS broke its association with Suzuki, the Research and Development (R&D) department of the company had decided that TVS racing team in future would race with TVS manufactured bikes", TVS president C P Raman told reporters after launching the models. PTI

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Centre for sugar millers paying SAP to farmers

New Delhi, May 10
The Centre has accepted, in principle, the Uttar Pradesh Government’s plea that instead of insisting on statutory minimum price (SMP), the millers should pay higher state advisory price (SAP) price at around Rs 95 per quintal to sugarcane farmers in the state.

The committee, appointed by the Prime Minister, met at the residence of Food Minister Sharad Yadav last night and decided to convey to private millers that they had to pay SAP to the farmers which was being paid by the 49 state-run sugar millers.

The meeting attended by Agriculture Minister Ajit Singh, Law Minister Arun Jaitley and Uttar Pradesh Sugarcane Minister directed senior officers of the food ministry to contact the Director-General of the Indian Sugar Mills Association (ISMA) to inform private millers that they would have to abide by the government’s decision.

The millers had been insisting that they could pay only SMP fixed at Rs 69.50 per quintal by the Centre, because of the low prices of sugar in the domestic and international markets.

Earlier, the Union Food Minister also carried the arguments of private millers at his meeting with Prime Minister Atal Bihari Vajpayee, when UP Chief Minister Mayawati suggested that the states should be empowered to fix its own price and should not be bound by the SMP.

The Food Minister, the sources said, asked the Food Secretary to convey to the private millers that the Centre had given several benefits to the industry like creation of buffer stock, ocean freight on sugar export, transport reimbursement and continuation of monthly release mechanism which cumulatively amounted to Rs 3,000 crore.

Farmer organisations had been agitating against the low price of sugarcane given by 52 private mills and realisation of their mounting arrears in the state.

Mr Ajit Singh had lent open support to the farmers, saying that the millers have been paying the SAP fixed by the state governments for the past three decades and they can not deny that.

Growers must recover their cost of production for which it was imperative that the millers should pay Rs 95 per quintal SAP, Mr Ajit Singh said adding that the government was ready to pitch in to help them in all respects. UNI

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Himachal urged to rationalise sales tax
Tribune News Service

Shimla, May 10
The Indian Cellular Association (ICA) has urged the Himachal government to rationalise sales tax on mobile handsets to check the loss of revenue due to the presence of the grey market.

Mr Pankaj Mohindroo, president of the association, said while most states had brought down sales tax on mobile handsets to 4 per cent, the floor rate for information technology products, in Himachal Pradesh, it was as high as 12 per cent consequently, there was hardly any legal market and of the Rs 60 crore cellular trade in the state, the entire trading was taking place in the grey market.

He said the rationalisation of tax rate in various states had indeed provided impetus to legal market in the country and it had grown from 5 per cent to 50 per cent over the past two years. Only states like Himachal Pradesh, Bihar and Kerala were yet to rationalise sales tax.

Not only was the state losing revenue, but also the consumers were being cheated as those selling mobile handsets in the grey market did not provide or after-sale service the handsets and battery were often not of the desired quality.

Mr Mohindroo said the sale of mobile handsets was likely to increase from 4.5 million last year to 1 crore. In Himachal Pradesh, an estimated one lakh handsets were likely to be sold. It was therefore essential for the government to rationalise tax rate and earn the much-needed revenue.

He met senior officers of the government and submitted a memorandum to the Chief Minister, Mr Virbhadra Singh, in this connection. 

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Thai Air to pay $ 1 lakh to anyone contracting SARS

Bangkok, May 10
In a bid to rebuild shattered traveller confidence, the Thai government said today it will compensate anyone who contracts SARS on Thai Airways with $ 100,000 the national news agency reported.

"In the latest development the government is stepping up measures including paying compensation of $ 100,000 dollars to Thai Airways international passengers if they contract SARS on the airline's incoming flights to Thailand," Thai News Agency quoted airline Chairman Thanong Bidaya as saying.

Thanong admitted the struggling airline suffered financial losses due to Severe Acute Respiratory Syndrome (SARS) in April but said if the outbreak proves containable by the second quarter the airline could retain profitability in 2003. AFP

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AVIATION NOTES

K.R. Wadhwaney

Ultra-modern look for Delhi, Mumbai airports

SUBJECT to Finance Ministry’s clearance, two international airports at Delhi and Mumbai will soon wear ultra-modern look. This is a very happy development because these two airports need immediate upgradation and renovation.

A number of international design and architectural firms have submitted their proposals. Among them are firms which have designed Heathrow and Frankfurt airport. Some more bids are expected. But Civil Aviation Ministry officials say that we will get the work started soon so that both these airports become operational within five years.

If the work is entrusted to a private firm on a build-operate - transfer (BOT) basis, it will be possible to meet the deadlines. But if the work is undertaken by the Airports Authority of India (AAI), there may be needless hitches and obstacles. The AAI has the competent engineers and architects but it is a body, which has always been plagued by internal bickerings and problems.

The new designs will provide bigger and better baggage services, sophisticated departure and arrival lounges and recreational avenues so that passengers enjoy spending time at airports. “We will render our airports look more like full-fledged towns where passengers feel comfortable in staying there in the event of delayed flights”, said a senior official.

The designs are expected to be finalised before the end of June. But it may take one or two more months before work commences. The long-cherised desire of the AAI to have a golf course around the Delhi airport is also expected to materialise. There is a lot of space available at the airport and the course, if constructed with proper planning, will be exceedingly popular with tourists.

The expenditure on development of these two airports will be about 4,000 crore. But the AAI is a very ‘healthy and profitable’ outfit. If the Finance Ministry approves the development of airports in toto, it will also sanction a lot of quantum of funds. Funds, however, are not the hurdle. The hurdle is interference from little knowing politicians.

A firm stand

For once, Air-India has shown that it will not be brow-beaten by the pampered community of pilots who have often held the two national carriers to ransom. Air-India has already chargesheeted more than half-dozen officials of pilots guild. The guild, which functions on the pattern of the trade union, always indulges in disruptive activities. This time under the pretext of SARS, the office-bearers instigated several pilots to strike work.

The national carrier has done well in derecognising the guild. The union office has been sealed. Actually, there is no need whatsoever for pilots to have their own union, which has so for done nothing except to ‘divide and rule’.

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BIZ BRIEFS

Hansa
New Delhi, May 10
Hansa Enterprises, a Mumbai-based company engaged in the trade of foodgrains, has said that the existing procedure of Food Corporation of India (FCI) is inviting tenders has put small traders at a disadvantage. Under the existing system, tenderers have to pay the cost — 95 per cent of the value of the stocks— within 10 working days from the date of acceptance by FCI and the tenderer has to lift the stocks within 30 working days from the date of acceptance by FCI. TNS

Lupin
Mumbai, May 10
Lupin Ltd has launched once-a-day cephalexin (Cef-ER), a drug used in treatment of infections of the respiratory tract, urinary tract and skin and soft tissue. Cef-ER is the first product in the cephalosporins segment coming out of Lupin’s research in New Drug Delivery Systems. PTI

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