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Saturday,
September 13, 2003, Chandigarh, India  
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Industrial output
slips to 5.6 pc No LPG, kerosene
price hike for a year SBI launches 2 NRI
deposit schemes 5 banks join hands to
share ATM network IFCI hopes to break
even this fiscal |
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Kotgarh, (Shimla), September 12 The apple belt of Himachal Pradesh is abuzz with activity again. Heaps of apples, stored in gunny bags, dot the Shimla-Kotgarh-Narkanda stretch. Trucks loaded with apples leaving the orchards are a common sight and an indication of the bumper produce. However, this has not brought in the money expected with middlemen making profit at the cost of producers. ADB gets RBI nod to
float rupee bond Suzuki plans to set
up unit in Haryana Romania cheaper than
India for outsourcing, says report
Wipro ePeripherals
IPO in 2004 likely
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Industrial output slips to 5.6 pc New Delhi, September 12 The cumulative industrial growth during the first four months of the current fiscal year, however, clocked a 5.6 per cent growth as against 5 per cent during the corresponding period of last year. According to the quick estimates of Index of Industrial Production (IIP), the manufacturing sector grew by 6 per cent during April-July as against 4.8 per cent during the same period of previous year. The sector rose by 6.8 per cent during July 2003 as against 6.7 per cent during the same period of last year. The Mining sector, which grew by 4.6 per cent during April-July this year as against 8.2 per cent during the comparable period of 2002, saw a slide in growth to 2.6 per cent in July 2003. The electricity growth during July 2003 registered a negative growth of 1.9 per cent as against 6.1 per cent in the same month of 2002. During the first four months of this year, the electricity sector grew by a mere 2.6 per cent as against 4.3 per cent during April-July 2002, the IIP quick estimates point out. As many as 13 of the 17 two-digit industry groups showed positive growth in July. Transport equipment and parts registered the highest growth of 25.1 per cent, followed by 21.6 per cent in wool, silk, and man-made fibre textiles and 16.2 per cent in basic metal and alloy industries. Negative growth was witnessed in leather and leather and fur products at minus 13.3 per cent, followed by a decline of 7 per cent in cotton textiles and 5.4 per cent in metal products and parts, except machinery and equipment.
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No LPG, kerosene price hike for a year New Delhi, September 12 The increase in the prices of crude oil in the international market would have resulted in an increase of Rs 106.30 per cylinder increase in LPG prices in Delhi and Rs 3.03 per litre in kerosene price if parity was to be followed. The Union Cabinet which met yesterday, however, decided not to pass on the increase in crude prices to the consumer, Petroleum Minister Ram Naik said. Public sector oil majors, Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) will cushion the loss. The PSU oil companies last year had absorbed a hit of Rs 5,430 crore. The government subsidy of Rs 67.75 per cylinder during 2002-03 and Rs 45.17 a cylinder this year was much below the cost and resulted in a combined loss of Rs 18,00 crore to public sector oil companies in the first quarter this year.
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SBI launches 2 NRI deposit schemes
Mumbai, September 12 “Pravasi Vaibhav” is a deposit scheme denominated in rupee with payment of maturity proceeds in US dollar, while “Pravasi Samriddhi” will be booked at SBI’s offshore banking units (OBUs) at Bahrain, Nassau and SEEPZ in Mumbai offering NRIs an opportunity for investment on floating or fixed rates of interest on cumulative and non-cumulative basis, the bank said in a release here today. The stipulated minimum amount under “Vaibhav” scheme would be USD 10,000 or equivalent and the tenure of deposit one year, it said. “Samriddhi” deposits would be denominated in USD and Euro with a stipulated amount of USD 5,000, and offered for a period of one, two, three and five years, the release added. Under the “Vaibhav” scheme, the foreign currency received from the customer would be converted by the bank into rupees to issue an NRE special term deposit (NRE-STDR) for a year. Simultaneously, a forward contract would also be booked to convert the NRE-STDR proceeds into USD on maturity, it said. SBI chairman A.K. Purwar said the two innovative deposit schemes have been specially designed to give a wider choice to global Indians, who in today’s environment need investment opportunities which are secure and give good returns. The new deposit schemes not only add value to the array of products for NRIs, but also offer sophisticated financial solutions to maximize earnings on a fully secured basis, he added. State Bank said, at the prevailing interest rates on NRE deposits, even after the cost of forward cover, NRIs would be able to get an attractive yield on their deposits as compared to other options. The yields on “Vaibhav”, it said, would depend upon the interest rates on NRE deposits and cost of forward cover prevailing on the date of
issue. The scheme would be offered at 26 branches across the country catering exclusively to NRIs, it said adding both the schemes would conform strictly to Reserve Bank of India regulatory norms.
— PTI
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5 banks join hands to share ATM network
Mumbai, September 12 "The present combined ATM strength of 600 is proposed to be increased to 1,500 by March 2004 and 2,700 by March 2005", Central Bank of India Chairman and Managing Director Dalbir Singh told newspersons here today. The other three banks are Indian Overseas Bank, Uco Bank and Union Bank of India, he said adding, these ATMs would be installed with a suitable mix of on-site and off-site locations to suit the customers. Singh said while Canara Bank and Indian Overseas Bank have strong presence in South, Central Bank of India and Union Bank of India have large representation in West and North. Uco Bank was predominant in Eastern India. Canara Bank Chairman and Managing Director R.V. Sastry said at Rs 9, the cost of an inter-bank cash withdrawal transaction would be the lowest in the industry. The first cards under this brand were expected to be handed to customers by December 2003, he said adding, ATM or debit cardholders of member bank as well as Mastercard/Visa International would also have the advantage of accessing any ATM owned by the consortium to transact business. Currently, there was a consortium of banks under CashTree, which includes Bank of India, Union Bank, Indian Bank and Syndicate Bank. Another group comprised private and foreign banks.
— PTI
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IFCI hopes to break even this fiscal
New Delhi, September 12 “We should be able to reduce our losses further. Breaking even is possible this fiscal provided the remaining Rs 4,000 crore liabilities are restructured,” Chairman V.P. Singh told PTI after IFCI’s 10th Annual General Meeting here today. Following government’s intervention last fiscal, banks and FIs restructured liabilities worth Rs 8,200 crore by reduction in interest rates to 9 per cent and extension of maturity period of the high-cost bonds issued by IFCI. Some of the provident funds, including Employees Provident Fund Organisation, had also agreed to roll over the maturity periods and reduce the coupon rates of IFCI’s debts. “We have reduced the cost of borrowing sharply to 9.25 per cent last fiscal from 12.5 per cent in the previous fiscal. We have targeted to reduce it further to 8 per cent this fiscal,” Singh said. The IFCI chief, who got four months extension till January 31, also said the FI plans to prepay costly debts after restructuring the existing liabilities. This would enable IFCI to come out of the red and then raise resources from the market to carry on its lending. IFCI will target the mid-corporate segments for providing fund and fee-based
services. The Delhi-based FI reduced its losses to Rs 259.70 crore last fiscal from Rs 884.70 crore in 2001-02, despite fall in income by 36 per cent to Rs 1,438.20 crore. NPAs mounted to Rs 4,559.70 crore (or 29.5 per cent of assets) last fiscal compared to Rs 3,897.60 crore (22 per cent) in 2001-02.
— PTI
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Plans afoot to keep apple agents at bay Kotgarh, (Shimla), September 12 “It is the trader and commission agent who are earning 30-40 per cent profit from the apple crop. We are merely guarding the crop. Despite a bumper produce this year, I cannot expect enough money to marry off my daughter," says Mr Satpal Thakur of Ratnadi village, about 80 km from Shimla. This nexus in Chandigarh, Delhi and other markets is taking away a large chunk of the profit of this cash crop. “Out of about 5 lakh orchards in the state, about 85 per cent are owned by marginal and small farmers with less than 25 bighas of land. They depend on commission agents and local agents for marketing of the crop. Most of them have taken advance money and cannot sell the crop,’’ says Dr R.P. Sharma, Director, Department of Horticulture. However, growers of the Thanedhar-Kotgarh area are trying to break the nexus in their own ways. Says Mr Devinder Jaret, Secretary, Shatla Premal Cooperative Fruit Growers Society, “Most of the apple growers’ societies in the state are selling fertilisers and pesticides to members, but marketing is controlled by middlemen, who earn up to 30-40 per cent of the total profit.’’ Adds another members of the society, “We are purchasing low grade apple from farmers and HPMC at Parwanoo and sell it in the market. The annual profit of about Rs 1.25 lakh is distributed among 184 members.’’ Society is patronised by Ms Vidya Stokes. He says,“Ours is, perhaps, the only society in the state which is handling the marketing of the crop as well. We have decided to take booths in Delhi and Chandigarh this year to sell apples directly to the customers. The plan is also to store quality apples for the lean season. Besides, we offer 1 per cent additional interest on deposits as well." A visit to Gumma, Ratnadi, Kolbogh, Baghi, Tikkar, Thanedhar and Narkanda in Shimla district revealed that farmers were unhappy due to lower realisation. Said Ms Bindia Chauhan of Baghi Ratnadi, “Small growers cannot afford to challenge the middlemen. They are forced to pack 24-26 kg apples in the 20 kg carton in the name of better value. But after collecting boxes from different villages, these are repacked in 20 kg boxes and sold in the market. We are paid value per box and they earn additional profits.’’ Mr Vijay Stokes, a relative of Vidya Stokes who had returned from America about two years ago, claims that the best option is to build up own brand in the domestic market. He is selling 15000-20,000 apple boxes under the “Harmony Hall’’ brand to different markets. “I feel, once the brand name is established in the market, I will get better returns. I plan to invest on new varieties and better inputs,’’ he says.
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ADB gets RBI nod to float rupee bond
New Delhi, September 12 “We have got all clearances like RBI and Ministry of Finance... When to move ahead depends upon the market,” Louis de
Jonghe, Country Director, ADB said here today. With this ADB would become the first multilateral financial institution to hit the Indian capital market to float rupee bond. World Bank is also planning to float such bonds in India.
Jonghe, however, did not reveal other details about the bond issue like the maturity period of the bonds. ADB is proposing to raise funds in rupee terms to cater to the private sector as, Jonghe said, there was no appetite for dollar loan in the private sector.
— PTI
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Suzuki plans to set up unit in Haryana
Karnal, September 12 Sources in the company said, the total cost of the manufacturing unit has been estimated at Rs 50 crore. The production of motor cycles in the new unit will possibly start by the end of next year, said the sources. The unit was likely to be set up either in Gurgaon where its auto plant is already situated or at Manesar where Honda company’s manufacturing unit is located. The company had earlier obtained permission from the government to set up its unit for production of two-wheelers and three-wheelers.
— TNS
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Romania cheaper than India for outsourcing, London, September 12 A report by Pierre Audoin Consultants (PAC) says Romania and other Eastern European countries are virtually ignored by British firms, but are predominantly the first outsourcing choice for the rest of Western Europe. The report, Offshore Romania 2003, claims that not only is the cost of using and providing IT services in Romania much cheaper than in India but the country is also home to an abundance of well-educated and highly skilled workers who have a better understanding of Western European culture than their Asian counterparts. Companies in the US have also recently started considering Eastern Europe as a resource for outsourcing. Pete Foster, a Research Director at PAC, said the British use of India was largely driven by historical and cultural links to the country, but companies may be forced to look elsewhere, as skills and resources become scarcer and costs start to rise. “There is great competition for cost, and there is a view that India is getting more expensive. Europe represents a good opportunity and a new area to find resources but it is virtually ignored by the UK,’’ he told Business Week. The report said service providers could improve their competitive edge by acquiring resources and companies in Romania more cheaply than in India. Users could also benefit because they would buy comparable levels of IT service at a much lower cost. “Romania is the area of choice for everyone else in Europe,’’ it said. “From the business point of view, it is quite backward compared to Western Europe and probably no better than the Indian and Asian alternatives. But it is arguably closer in cultural affinity. The language and education are good enough’’, Foster
said. — IANS
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A strong growth in manufacturing notwithstanding, industrial growth during July this years estimated to have fallen to 5.6 per cent as against 7.1 per cent during the same month last year.