 |
|
BSNL
to invest 10,000 cr this year, says CMD Hike in
pig iron price irks industry Vitamin
C drug price increased
FCI
plans to tap capital market |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Asahi
Glass to set up third plant Mumbai, November 23 Asahi India Glass Limited has unveiled its plans to set up a third plant for manufacture of automotive safety glass in Chennai expected to cost Rs 50-crore.
Obtain a receipt of
loan
Sensex likely to be
volatile
Tax refunds in four
months: FM
|
|
BSNL to invest 10,000 cr this year, says CMD New Delhi, November 23 There was also a strong possibility of international call rates being reduced by BSNL after the new access deficit charge (ADC) comes into force from December 1, 2003. “There is the possibility of further reduction in the ILD rates after the new ADC regime comes into force from December 1, 2003”, Chairman and Managing Director BSNL Prithipal Singh said in an exclusive interview. BSNL intended to “exceed its mobile market share of 25 per cent”. “We are likely to have growth of more than 100 per cent in cellular connections and more than three times in WLL”, he said, adding that the company had earmarked Rs 10,000 crore during the current fiscal year. The CMD said “providing telecom facilities in the remote areas of Jammu and Kashmir and North-East is also a thrust
area. With our mission to provide world-class services on demand using state-of-the-art technology for our valued customers at an affordable price, we aim to retain the leadership. Further, we are sure to achieve the targets set in NTP 99 for a teledensity of 7 per cent by 2005 and 15 per cent by 2010. Since BSNL has nearly 90 per cent of the existing connections, it knows that it has to bear maximum load of the NTP”, he said. As on November 10, 2003, BSNL had a total fixed line subscriber base of 3,48,62,981 and a total equipped capacity of 4.50 crore connections. In mobile telephony, BSNL has a GSM subscriber base of 44,57,346 of which 14.79 lakh were post-paid subscribers and 29.78 lakh were pre-paid subscribers. The present CDMA WLL
subscriber base of BSNL is over 8 lakh. He believes the recently announced unified licensing regime is “definitely good thing and help the growth of customer base further by increasing teledensity”. “BSNL has not been put to disadvantage by the regime. It is now open for BSNL to exploit both technologies namely CDMA and GSM for mobile communications. So it fits well into BSNL’s strategic plan”, he said. Various telecom players have criticised TRAI’s new interconnect user charges (IUC) regime on grounds that it is very heavily loaded in favour of BSNL. This was not a correct perception. “It is wrong. Rather BSNL has not be adequately compensated. Even the grants to BSNL, which are otherwise admissible, have been deducted from the Access Deficit Compensation (ADC). The new regime is likely to cause a loss to BSNL to the tune of Rs 2,500 crore”, he said. It is now believed that teledensity in the country is going to be primarily driven on the wireless technology. The BSNL CMD agreed and said “BSNL has aggressive plans not only in urban but also in the rural and remote areas where other operators have not dared to venture so far. By 2005, mobile connections are likely to exceed landlines”. The tremendous growth in teledensity has come more from mobile telephony and he disagreed that the earlier policy environment were deterring growth in the telecom sector. “The earlier telecom policy emphasised modernisation of the network and telephone on demand and thus was not at all a deterrent to the growth. The growth in
telecom sector has accelerated mainly due to development of mobile/wireless technology which permits a fast roll out of the network. In last four years, the mobile telephones grew from nearly three million to more than 18 million. Growth in teledensity due to mobile telephony boosted up exponentially when on year ago BSNL also came in as a cellular service provider and emerged as a leader”, he said. The advent of limited mobility players have not affected BSNL’s business adversely. “BSNL’s business is not adversely affected. We are in both limited as well as unlimited mobility and have been growing exponentially. We have aggressive and judicious plans for expansion of CDMA and GSM technologies keeping in view the needs of the customers”, he said. He said “competing technologies and the dynamic telecom market driven by more than even demanding customer are bringing up enormous
opportunities for BSNL”. “There lies huge a potential of Internet expansion and broadband services and the mobile communications eventually leading to 3G mobile network. BSNL is already the leader in all segments it operates. BSNL has shown through the success of the mobile services how the market can be created by innovative policies, good planning and incessant efforts of employees”, Mr Singh said.
|
|
Hike in pig iron price irks industry Jalandhar, November 23 Addressing a press conference here yesterday, general secretary of the Pipe Fittings Manufacturers’ Association Harsh Gupta alleged that the pig iron price had shot up from Rs 10,500 per tonne to Rs 16,000 per tonne since January this year. “While the government-owned pig iron producing plants had reduced the sale in domestic market, private companies, on the other hand, had formed a pool and increased the price of pig iron, raw material for pipe fittings, during the past 10 months. Besides, the Centre has failed to check the supply-demand gap to control the prices, making it virtually difficult for us to operate,” Mr Gupta said, adding that hike was a pre-planned affair by creating shortage of raw material. At least 90 per cent of total pipe fittings manufacturing units are based at Jalandhar. |
Vitamin C drug
price increased New Delhi, November 23 The authority also revised downwards the price of “Pentoxifylline CR/SR” tablet by 12.92 per cent to Rs 23.60 per pack from Rs 27.10 per pack in view of the downward revision in the price of concerned scheduled bulk drugs. According to the details released here, price of “Vitamin C Long Acting/SR/CR” tablets pack has been increased by 17.44 per cent to Rs 15.76 from Rs 13.42 because of fall in the price of bulk drug used in the formulation. Other formulations for which prices have been fixed include Aspirin with caffine tablet used as analgesic, Vitamin B complex elixir, anti-TB combination formulations of “Rifampicin+Isoniazid+Ethambutol” and Ephedrine HCL based combination formulations used in treatment of bronchospasm, bronchial asthma and bronchitis. Of the 29 formulation packs, ceiling prices exclusive of excise duty and local taxes have been fixed in respect of 25. The non-ceiling prices inclusive of excise duty but exclusive of local taxes have been fixed for four packs including Livadex injection, “VI-Magna Syrup” and Lederplex T Liquid.
— PTI |
|
FCI plans to tap capital market New Delhi, November 23 With the FCI accessing the capital market backed by government guarantee, the rate of raising resources will come down drastically leading to substantial decrease in the annual food subsidy bill. This was decided at the FCI Board of Directors meet held this week. The FCI had decided to borrow from the
capital market to reduce the burden of debt servicing. The move would result in substantial reduction in the interest burden which today contributed substantially to the economic cost of the procurement operation, 85 to 88 per cent of which is statutory and beyond the control of the FCI. The board was informed that the RBI had given clearance to the corporation to start the process of change over from the borrowings being restricted to consortium of banks to an entry by the FCI in the money market. With a transit insurance and a stock insurance in place, the board felt that the money value of such losses would progressively be minimised with a direct salutary effect on the food subsidy bill. Although transit loss percentage with reference to the sale purchase turnover of the corporation has been brought down to less than 0.5 per cent, the board was informed that efforts were on to further reduce such losses by obtaining an insurance cover for the foodgrains stocks in transit as well as insurance of stocks being maintained in nearly 2000 godowns of the FCI. |
| Asahi Glass to set up third plant Mumbai, November 23 The funding of the new plant, which will initially have a capacity of over 5,00,000 laminated windshields, will be met through internal accruals. This plant will cater to existing customers in Southern region. These include Hyundai Motors, Toyota Kirloskar, Ford India, Hindustan Motors (lancer project), Volvo India etc, said the Company. Sanjay Labroo, Managing Director & CEO of Asahi India, said: “We have a commanding share of the automotive glass market and as leaders we have to invest to explore opportunities that will present themselves in the future. As such, this new plant is a significant step for us.” Currently, Asahi India — a joint venture between Labroo family, Asahi Glass Co of Japan and Maruti Udyog — has two existing plants in Rewari in Haryana and Taloja in Maharashtra. The combined capacity to manufacture laminated windshields after this plant is commissioned by October, 2004, will be over 1.70-million.
— UNI |
bb
by R.N. Lakhotia Obtain a receipt of loan
Q:
I want to lend some loan by cheque on interest to a private person/party. Please clarify whether some kind of registration/permission etc. is required from some authority to give such a loan and maximum interest allowed. The interest shall be received through cheque whether some acknowledgement is required from the person paying the interest. Whether some agreement, etc. is required. — Gurdip Singh, Mohali Ans: No registration/permission is required from any authority to give loan. The maximum rate of interest to be charged can be mutually settled. Hence, neither the agreement nor the notarisation of agreement is necessary for giving and taking loan. However, from a practical angle it is recommended that when you give a loan to someone please obtain a receipt on plain paper with a revenue stamp affixed thereon. In this receipt please mention the terms of loans and the interest as also the mode of payment of interest and the repayment of the principal amount. Even this receipt is not compulsorily required under any provision of law. However, it is better to obtain such a receipt for clarity and record.
Joint house loan Q:
I & my spouse are bank employees working in different banks. We have raised a housing loan in joint names from the bank of my wife, on the plot which is our joint names in equal share which is repayable from the salary of my wife. What will be the quantum of deduction that both can claim in respect of interest and principal? Can I take 100 per cent benefit of interest? Can my spouse take 100 per cent benefit of repayment of principal from her salary? If any declaration is to be submitted to the income tax authorities or employer? — Krishan Kumar, Moga Ans: As the plot of land on which you propose to construct the house is in the joint name, hence both of you will be eligible to enjoy full tax benefit independently. Thus, you and your wife will separately enjoy deduction in respect of interest on loan to the maximum extent of Rs 1,50,000 per person. Similarly, both of you will enjoy tax rebate under Section 88 in respect of the repayment of housing loan, etc. You cannot get 100 per cent benefit of the interest on loan taken by both of you. However, your wife can claim 100 per cent benefit on the repayment of the principal amount by claiming tax rebate on such repayment to the maximum extent of Rs 20,000 in any financial year. Please do ensure that ultimately the interest payment as also the principal repayment should be made in equal
proportion because both persons are co-owners of the property. To enjoy tax deduction in respect of interest, etc. from your employer, you should submit to the employer a declaration in Form No. 12C. You may buy the book “How to save Income-tax by Tax Planning” written by R.N. Lakhotia & Subhash Lakhotia. The book is published by Vision Books (P) Ltd., 24, Feroz Gandhi Road, Lajpat Nagar-III, New Delhi-24. |
bb
by Lalit Batra
Sensex likely to be volatile Amid extreme volatility, Sensex closed the week with a loss of 73 points at 4,838.54. Friday saw a huge rebound from the lower level of the day. This rebound resulted partly from the rumours that Fidelity, one of the biggest insurers in the USA, had appointed a chief investment officer for India. This according to marketmen reflects the fact that overseas investors are optimistic about India which also stands out in the fact that the FIIs have pumped in a record Rs 28,000 crore into the Indian market so far this year. This investment came on the back of upbeat corporate performance, a revival in the economy on the back of a good monsoon, low interest rates and strengthening local currency. The market is expected to stay volatily during the current truncated week. On Thursday, derivative contracts for November, 2003, will expire. The market may then turn weak, as there are apprehensions that the FIIs may book profits as the calendar year draws to a close. Moreover, due to the imposition of stiff margins by the NSE in the F&O segment the traders would start to pare their positions.
Refineries Shares of HPCL and BPCL firmed up during the earlier part of last week on the news that the Supreme Court would reconsider its earlier decision on the disinvestment. The decision to take a holistic view of the disinvestment policy has given a rise to hopes that the privatisation programme may be revived. The stocks of the oil companies came off higher levels due to profit booking. The government’s disinvestment programme had received a setback when the SC ruled that HPCL and BPCL could not be disinvested without the approval of Parliament, as they were created through the Act of Parliament. The ONGC lost ground on Friday on reports that the company would not sell crude to private sector refiners.
Cement An expected, fresh hike in cement prices failed to materialise. Cement shares have pared gains over the last few sessions after rumours of a hike in prices in the South proved unfounded. As far as the western region is concerned, prices have recovered post-monsoon. However, increased supply from the new plant of Sanghi cement in Gujarat is likely to check any further rise in prices. It has suggested earlier that it would be prudent to book profit in cement stocks. Software Software stocks gained ground on a good retail buying support. Analysts expect the revenues of Indian IT companies will increase substantially following an increase in IT spending by companies in the USA. Infosys gained 1 per cent to close at 4672. Investors can book profit in the software sector because as a whole it has gained a lot of ground since April this year. Reliance Ind Reports that independent certifying agency DeGolyer and MacNaughton (D&M) has revised downwards the estimate of gas reserves in the KG basin hit the stock at the midweek, but it bounced back to close at Rs 460. Meanwhile, Reliance Infocomm’s bid to acquire the Nasdaq-listed Flag Telecom group received a setback on Thursday with Pivotal Private Equity offering a higher bid. Reliance Infocomm had bid at $ 96 per share whereas the US firm had bid at $ 110 per share. |
bb
Tax refunds in four months: FM
New Delhi, November 23 The Income Tax Department has been asked to process all refund cases chronologically as per the return receipt register and make the refunds within four months at any cost, official sources said today. Efforts are being made to reduce the refund period even below four months in the interest of the tax payer. For instance, instant refunds were made to senior citizens this year, the sources said. As part of various other measures to streamline the functioning of the Income Tax Department, the Central Board of Direct Taxes has also decided to reduce from two months to a week the time taken to issue PAN and PAN card to the tax payer.
— UNI
FII net buyers in equity
MUMBAI: The activity of foreign institutional investors (FIIs) in equities markets remained low key as they recorded the net purchases of just Rs 31 crore during the trading week ended November 21. The FIIs were net buyers in debt market at Rs 189.6 crore during the period under review, according to data available with SEBI. Mutual funds (MFs) also registered net inflows at Rs 220.41 crore and Rs 247.28 crore in equities and debt market in the third week of November. The foreign funds were net buyers to the tune of Rs 138.4 crore on November 21 in equities. In the debt market the FIIs registered net purchases at Rs 257.1 crore on November 18.
— PTI
LoI to Bharti for new circles this week
NEW DELHI: The Department of Telecom is likely to issue this week the letters of intent to Bharti and the Tatas on their application for acquiring new circles under the unified access licensing regime. “DoT is processing the applications for new unified access licences, submitted by Bharti and the Tatas. We expect that the process will be completed and the LoIs issued sometime this week,” DoT secretary Vinod Vaish told PTI here. The Bharti group recently applied for six new licences, under the unified access regime, for Jammu and Kashmir, Uttar Pradesh (East), Rajasthan, West Bengal, Bihar and Orissa. The company has said it would offer GSM-based cellular mobile services in all these circles. The Tatas have applied for acquiring new licences in seven circles, including West Bengal, Rajasthan and Madhya Pradesh under the new regime.
— PTI
Quark to hire 600 professionals
MOHALI: After the announcement to invest over Rs 1,000 crore in the next 18 months to develop a world-class business park here, the Quark Inc is on a recruitment spree for its expansion projects. It has already hired over 200 professionals and has announced to hire another 600 persons in the next few months. The company is alluring professionals, who belong to this region but are currently working in Delhi, Noida, Gurgaon, Bangalore or even Mumbai. There is a heavy rush of candidates coming for interviews and written tests daily from far away places. The company has already shifted its global support and customer care services here and is expanding its services to take care of over four million customers worldwide.
— TNS
NIIT offer for 1 lakh poor students
NEW DELHI: NIIT has announced it would provide free computer literacy to one lakh underprivileged school-children in India. That is a part of the company’s World Computer Literacy Day initiative, under which it plans to train a total of two lakh persons on computers through its 3,800 education centres worldwide, NIIT Chairman R.S. Pawar told reporters here. The initiative would be channeled abroad through its centres in Botswana, Bangladesh, Cambodia, Ghana, Nigeria, Sri Lanka, Vietnam and Zimbabwe.
— PTI
United Bank rules out IPO
NEW DELHI: Bolstered by a 19 per cent growth in the net profit for the first half of this fiscal, United Bank of India, which was in red a few years back, today ruled out floating of an IPO and said it would open new branches for the first time in 25 years. Disclosing that United Bank earned Rs 155 crore of net profit during the April-September period, bank CMD Madhukar told mediapersons after a Board of Directors meeting here that the bank has no plans to come out with an IPO for the time being. Pointing out that
capital-adequacy ratio of the bank rose to 16.34 during the first half of this fiscal against 13.49 during the previous H1, he said the bank does not need any more capital as of now. The bank is planning to launch debit cards and it is in talks with Visa International in this regard, he said.
— UNI |
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | National Capital | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
BSNL has embarked on aggressive expansion plans spreading its network to North-eastern states and Jammu and Kashmir over the next couple of months.