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Friday,
August 29, 2003, Chandigarh, India  
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Re-bidding
to delay IA acquisition process GDP to
exceed 6 pc, says RBI Trai
circulates consultation paper on GRAPHIC: Mobile telephone subscribers by company IOC to
issue regular tenders to export petrol, diesel
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PM
visits handicraft exhibition Jammu
industrialists for revival of sick units Dhumal
urges PM to save steel industry Two-wheeler
companies to absorb steel price hike Apple
growers face scarcity of packaging trays Norms
for new industrial policy on the anvil Nokia
unveils two models
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Re-bidding to delay IA acquisition process New Delhi, August 28 Senior Indian Airlines’ officials were apprehensive at the attempt of the Ministry of Civil Aviation to invite fresh bids for the much-delayed aircraft acquisition deal and pointed out that any such attempt would not only lead to the starting of the process all over again but set back the process by at least six months. There were reports that the Civil Aviation Minister’s Secretariat wanted to review developments in the aviation market, especially after events over the past year which had led to the fall in prices of aircraft. There is apparently a view that the Centre could incur a huge loss if the deal for the acquisition of the aircraft was cleared at prices which had been quoted earlier. Although officials at the Ministry of Civil Aviation denied that any review meeting had been held or was to be convened, officials at Indian Airlines did not discount the possibility of ministry officials being under pressure from a possible contender for them to have another look at the terms and conditions being offered in the contract. Indian Airlines is looking at purchasing at least 43 aircraft for refurbishing its fleet and add more capacity. The pre-PIB(Public Investment Board) meeting had given clearance for the purchase of the aircraft and a nod had apparently gone in favour of Airbus Industrie manufactured A-319, A-320 and A-321 planes. Incidentally, two days ago Boeing company made a strong bid to corner the contract for the purchase of aircrafts by Air-India and even offered to buy back some of the old planes in the country’s international carrier. Boeing officials had claimed the prices quoted by its rival manufacturer in the offer for Indian Airlines were much higher than the prevailing prices and the government could save up to Rs 700 crore if the deal was re-negotiated. Officials at Indian Airlines said bids were invited and choice forwarded as per guidelines of the Central Vigilance Commission (CVC). The bids were invited only from the L-1 licence holders and there was no question of negotiations being held with anyone not having this rating. They pointed out that calling for fresh bids would mean a delay of six months as not only would fresh bids be invited but re-evaluation also have to be undertaken before taking another decision. Besides, they said, Indian Airlines Board would have to recall its earlier proposal sent to the ministry and send a fresh one for the ministry’s consideration. The Indian Airlines Board had in its earlier decision proposed the purchase of aircraft from Airbus Industrie. This as the airlines’ pilots had been flying these aircraft for years now and were used to its functioning. The officials, however, did not discount the possibility of the government even splitting the contract for 43 aircraft between Airbus and Boeing.
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GDP to exceed 6 pc, says RBI
Mumbai, August 28 “However, a full reassessment of projected GDP for FY-04 will be attempted in the mid-term review of the Monetary and Credit Policy in October, by which time reliable information on progress of monsoon and spread of the industrial upturn will become available,” RBI said in its annual report for 2002-03 released here yesterday. Last week, RBI Governor Bimal Jalan had hinted at a revision in GDP in October. The report said inflation was expected to remain benign in rest of this fiscal on the backdrop of a good monsoon and consequent agricultural recovery and “could well fall below the projected rate of 5 to 5.5 per cent in FY-04,” it said. In FY-03 India’s foreign exchange reserves grew by $ 22 billion, a record for any fiscal year for India, even as the country became a creditor to the International Monetary Fund (IMF) under the financial transaction plan. RBI said macro-economic policy settings for FY-04 imbibe positive expectations and “prospects for the economy are sanguine with real GDP growth expected to shrug off the loss of momentum and set the stage for a surge to full potential.” Financial markets would continue to experience ample liquidity conditions and softening of interest rates, it said. RBI said the industrial outlook is optimistic with expectations of fresh capital investments in existing projects and increase in capacity utilisation. Referring to state finances, the apex bank said gross fiscal deficit of state governments is expected to decline to 4 per cent of GDP in 2003-04 from 4.7 per cent in 2002-03 following continued efforts towards fiscal consolidation. “There is an urgency to halt the dissavings of the public sector, reflected in rising pre-emption of resources through the revenue deficit”, it added. The 10th Five Year Plan (2002-07) has envisaged an average annual growth of eight per cent. India’s growth experience over the eighth and ninth plan period demonstrated that this growth target is feasible. Achievement of such a growth rate would need increased investment rates accompanied by improvements in efficiency all round, it said adding, ongoing reform process would also be required to be intensified in all spheres, particularly in agriculture, industry and infrastructure. On consequent accretion to international reserves, RBI said it would test the conduct of monetary policy, given its aggressive stance on holding wholesale price inflation. Referring to financial sector issues, RBI asked banks to put in place systems to monitor unhedged external liabilities following greater demand from corporates for foreign currency loans. It urged them to develop new appraisal capabilities for financing industrial activities as traditional term lending institutions were on a decline.
— PTI
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Trai circulates consultation paper on TDSAT order
New Delhi, August 28 Trai has asked stakeholders to send their views on the consultation paper before September 15. The Telecom Disputes and Settlement Appellate Authority (TDSAT) has asked the government to enforce its order in four months. The TDSAT order has suggested the imposition of additional entry fee payable by basic service operators (BSOs) for providing WLL(M) service and additional spectrum fee chargeable for the additional spectrum beyond 5 MHz for WLL (M) service. TDSAT also wants the provision of relief to cellular mobile operators with regard to points of interconnection between them and BSOs and a reasonable hike in the 5 per cent access charges of CMSPs. Trai has said it will come out with its recommendations within three months.
— UNI
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IOC to issue regular tenders to export petrol, diesel
New Delhi, August 28 IOC plans to increase export of petroleum products to three million tonnes in 2003-04 from just over one million tonne in the previous fiscal. Ramachandran said the company has finalised import of 0.8 million tonnes of Gulf of Suez Mix crude oil from Egypt. "We will soon sign a term contract with BP for import of 0.8 million tonnes of sour crude by March 2004." This would be the second deal after the recently concluded one with Brunei, where IOC would be importing crude from a private firm instead of a government company. The government recently relaxed the policy on imports and allowed oil companies to get into direct deals with private equity oil producers. Earlier, state-run firms were allowed to contract term crude only from national oil companies. The sour grade Suez Mix crude (high in sulphur) would be processed at IOC's Koyali, Panipat and Mathura refineries, he said. IOC has also received clearance from Petroleum Ministry for import of Masila crude from Yemen, Ramachandran said. The Ministry finally agreed to add Nexxen of Yemen in the list of equity oil producers. The firm had asked government to amend the list of multinational companies from which it can buy equity oil to include Agip of Italy, Nexxen of Yemen, Occidental of Nigeria and ConocoPhillips of Venezuela in its crude basket. IOC wants to buy Nigerian bonny light from Agip of Italy, Yemen's sweet Masilia from Nexxen, Nigerian sweet crude from Occidental and Venezuelan crude from ConocoPhillips. "We will import 1.5 million tonnes Masila crude on behalf of the industry and our officials will soon be visiting Canada to sign the term deal," he said. The first shipment of the crude contracted from Brunei is expected to land in September. Brunei's Seria light crude oil is expected to be processed at Chennai Petroleum Corp Ltd. IOC plans to import 32 million tonnes, or 640,000 barrels per day, of crude oil in the fiscal year to March 2004. A little over half the imports will be from term contracts. Ramachandran said proportion of high sulphur (sour) crude oils processed at its refineries have gone up.
— PTI
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PM visits handicraft exhibition Srinagar, August 28 The Prime Minister was impressed at the intricate and fascinating designs on the hand-made shawls, carpets and other products at the exhibition. Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed and Deputy Chief Minister Mangat Ram Sharma accompanied the Prime Minister. Various stalls displaying handicraft and handloom products were put up at the exhibition jointly organised by the Handloom Development
Corporation and Jammu and Kashmir Handicrafts (sales and export) corporation. The Chief Minister apprised the Prime Minister about the rich potential of handicrafts in Jammu and Kashmir and measures taken to boost this sector.
— UNI |
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Jammu industrialists for revival of sick units Jammu, August 28 According to Mr Rattan Dogra, president of the Association of Small-Scale Industries, and Mr Virender Jain, convener of the Jammu Federation of Industries, a number of industrial units had become sick over the past 14 years of militancy. They said problems in marketing and non-availability of raw material and finances had added to the woes of the industrialists. Referring to some industrial estates in Jammu, including Bari Brahmna and Samba, they said a number of industrialists had to close their units because of lack of financial backup from the government. The industrialists have demanded a package of Rs 400 crore to revive sick units. The traders and industrialist are planning to meet the Prime Minister when he reaches here on Friday. They would submit a memorandum listing demand for augmenting the supply of electricity to industrial estates without resorting to heavy load shedding.
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Dhumal urges
PM to save steel industry Shimla, August 28 In a letter to Mr Vajpayee, he pointed out that the decision of the small-scale industry ministry to allow escalation in prices and export of some prime products of steel and iron had hit the industry. The prices of pig iron had shot up from Rs 10,000 per tonne in 2002 to Rs 14,000 per tonne in August 2003 and rates of other products also registered an increase of 18.40 to 42 per cent. He said a delegation of Laghu Udyog Bharati (Punjab) had apprised Dr C.P.Thakur, the minister concerned, of the difficulties being faced by the industry due to steep hike and wide fluctuations in prices. Some of the industries were on the verge of closure. Steel was being exported to China at Rs 15,000 per tonne whereas its price in the domestic market was Rs 21,000 per tonne. He demanded that freight equalisation scheme be re-introduced and import duty on scrap decreased.
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Two-wheeler companies to absorb steel price hike
New Delhi, August 28 Country’s leading two-wheeler brands like Hero Honda, Bajaj Auto and TVS Motors emphasised that steel price hike would not have any immediate impact on the prices of their offerings, though not completely ruling it out in future if the surge continued. Hero Honda Motors Managing Director Pawan Kant Munjal said the company was doing ‘’everything possible’’ to absorb the prices as long as possible. ‘’In this competitive market, it will not be wise to raise the prices immediately and thus we will absorb the steel effect as far as possible,’’ Mr Munjal said. Similar views were echoed by Bajaj Auto. ‘’While we expect there to be some adverse impact of steel price hike on the cost of our products, we are confident that with various cost-reduction measures currently being taken in the company, we will offset most of it, if not all,’’ Bajaj Auto Vice-President (Finance) Sanjiv Bajaj said. The company, whose long-term contract with steel manufacturers’ expired on July 31, said it was currently negotiating for fixing new prices. There had been a consistent hike in steel prices for sometime now. Prices had increased by as much as 20 per cent over the past three months. TVS Motors also said it would not pass on the burden to consumers for the moment. “We don’t feel that in this highly competitive market, we can afford to hike prices. ‘’Thus we have taken internal measures to balance whatever excess we have to shoulder. These include reducing steel wastage, value engineering and other measures down to the supplier level,’’ a company spokesperson said. The two-wheeler industry, which captures more than 70 per cent of the Indian automobile industry primarily through motorcycles, has been on a rise for quite sometime. Most of the companies expect sales to rise with good monsoon this year. Showing signs of gradual pick-up, sales went up by a modest 4.9 per cent during the first four months of this fiscal. A total of 16.45 lakh two-wheelers were sold during April-July, 2003, over 15.68 lakh units a year ago, according to figures provided by the Society of Indian Automobile Manufacturers. Motorcycles posted a 10.4 per cent growth to 12.76 lakh units while that of scooters and mopeds fell by 5.7 and 21.7 per cent to 2.73 lakh and 95,344 units respectively. Two-wheeler sales in the country had slowed down since early this year due to stagnant demand following inadequate rainfall last year, which hurt the demand in rural areas.
— UNI
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Apple growers face scarcity of packaging trays Chandigarh, August 28 Some apple growers even claimed that the cartel of two major manufacturers and hoarding of trays by big growers had created an artificial scarcity of trays in the market though there was no shortage of cartons. Mr Laxman Thakur, an apple grower in Nandpur area near Shimla, said,‘‘ We are facing shortage of packaging trays due to mismanagement of demand and supply. In the higher altitude orchards in Rohru, Jubbal, Kotgarh, Kumarsen and upper Shimla, the farmers are facing shortage of small size trays and in lower valley there was a shortage of large and extra large size trays.’’ Another farmer claimed that some farmers and dealers had hoarded large stocks of trays to earn profits. Mr J.R. Gazta, Managing Director, Himachal Agro Packaging Corporation and HPMC, admitted that some of the areas were facing shortage of trays of specific size. He pointed out that though government had no control over the supply of trays, but it would intervene in the interest of farmers. For this, he disclosed that state government had decided to import about three crore trays from China. Samples have already arrived and would be checked in a day or so before finalising the order. The market observers disclosed that as against production of 4.5 lakh tonne apple production last year, the total production in the state is likely to cross 5.25 lakh tonne this year. The plucking season, which had started in July would continue till mid-September. Mohan Fibre Products Ltd in Mubarakpur near Dera Bassi here and G. Clerides of Baddi are the two major suppliers of automatic dried trays. Mr Thakur said, “Farmers are looking for high quality trays supplied by these manufacturers at about Rs 3 per tray, though there are number of suppliers in the state offering lower quality trays at lesser price.’’ The cost of Chinese trays is likely to be competitive. Mr Gazta claimed that these suppliers had declined to supply trays through HPMC to the farmers, and were selling to the farmers through their agents. He said so far about 65 lakh cartons of apples, using about four crores trays had been sold in the market. There is no shortage of cartons in the market and the problem of trays would be resolved in the next few days, he added.
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Norms for new industrial policy on the anvil
Parwanoo, August 28 He said the single window clearance system would be further strengthened so that the potential investors and the existing units planning expansion could get all kind of clearance quickly. The Coordinator of the single window, he said, would be made responsible for getting inter departmental clearances from the departments concerned like Electricity Board, Excise and Taxation, Town and Country Planning and Pollution Control Board. He announced that he would convene a meeting of departmental secretaries next month to streamline the procedures and cut down inter departmental delays. Mr B.S.
Nainta, Director, Industries, assured that industrial department will play a catalytic role to take up the industry issues with other state departments. About 60 industrialists from Parwanoo,
Baddi, Barotiwala, Nalagarh and Paonta Sahib attended the session. — TNS
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Nokia unveils
two models
New Delhi, August 28 Ms Baldauf said telecom growth is taking place in countries like India, Indonesia, Vietnam, Thailand, the Philippines and China, where Nokia can bring value by its economy of scale benefits. As part of Nokia’s strategy to reduce costs of mobile handsets, the company had yesterday launched two handsets and said it would tap the Indian market to make up for the declining growth in Europe and the US. The two entry level models — Nokia 1100 and 2300 which operate on GSM — will be available in the market in the fourth quarter of this calendar year, Ms Baldauf said. However, Finland-based Nokia did not announce the price of the two handsets, which were
simultaneously launched in Moscow. — PTI
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Normal
monsoon leading to a strong agricultural recovery, a healthy industrial
performance and low inflation is expected to bolster the Indian economy
to “significantly exceed” the projected gross domestic product (GDP)
growth rate of 6 per cent in fiscal 2003-04, according to Reserve Bank
of India.
