New Delhi, October 4
After attaining success in the software sector, India is now fast emerging as the global hub for pharmaceutical industry. Indian pharma companies are working hard to get a foothold in global market as between 2004 and 2007, $ 26.5 billion worth of drugs will go off patent in the US and the EU market.

A recent study by Ernst and Young has identified the country as an emerging centre for collaborative and outsourced R&D in drug development, biotechnology and chemicals. In the last several decades, study claims, Indian pharma companies have moved from reverse engineering drugs to making drugs with greater value addition.

According to Mr Satish Reddy, Managing Director, Dr Reddy’s Laboratories Ltd, Indian branded pharmaceutical companies have made substantial investment in the R&D sector to develop new quality drugs. However, government’s efforts to bring drugs under price control may harm the sector as it would affect the R&D sector in the long-term.

Union Minister of Chemicals and Fertilisers Ram Vilas Paswan has, however, assured the industry that government would bring down the prices of only life-saving drugs in consultation with industry that could voluntarily reduce high trade margins.

“Government is committed for the growth of industry and there will be no price control on the export price of Indian drugs,” he said.

Meanwhile, the Indian exports of drugs and pharmaceuticals crossed Rs 15,000 crore during 2003-04 from Rs 12,000 crore previous year. The industry has the highest number of plants approved by the US Food and Drug Administration (FDA) outside the USA.

Tax exemptions in Himachal Pradesh and Uttaranchal have also encouraged industry leaders like Dr Reddy Laboratories, Ranbaxy and Morepen to set up their new plants. The breakthrough of the Lupin Laboratories and Centre for Scientific and Industrial Research (CSIR) last month, to develop anti-tuberculosis drugs has given a fillip to the industry.

The industry experts say that generic drug manufacturing is the main growth driver for future. The world market is expected to exceed $ 55 billion by 2005. India is set to capture a large portion of this market by leveraging its inherent strengths in technology, R&D facilities and trained human capital. The industry is likely to create over 2 lakh skilled jobs by 2007.

To facilitate the sector’s growth, the Indian government has announced exemptions from import licences to foreign pharmaceutical units setting up their manufacturing units in the Special Economic Zones. As per industry estimates, setting up a plant is 40 percent cheaper in India compared to developed countries and the cost of bulk drug production is 60-70 per cent less.

The government has already announced that in accordance with the WTO stipulations, India will grant product patent recognition to all new chemical entities from 2005.

A number of strategic overseas acquisitions like Ranbaxy buying RPG Aventis’ French business, Wockhardt acquiring CP Pharmaceuticals in the UK and Zydus Cadila taking over Alpharma in France have strenghtened the Indian industry.

Washington, October 4
The annual meeting of the World Bank and the IMF failed to arrive at a consensus in giving more powers to developing countries in decision-making besides increasing aid flow for reducing poverty.

At the end of the three-day annual meet, IMF Managing Director Rodrigo de Rato and World Bank President James Wolfensohn told a press conference that “there is no consensus yet on three issues of vital importance to developing countries.”

“All these issues require political consensus, which was lacking,” they said. The third issue pertains to trade, especially providing increased market access to developing countries.

Mr Rato, however, said it was essential that “we continue to find ways to guarantee that the voices of all our member governments are heard.”

The IMF had to maintain a consensus approach to decision-making and ensure representations of all regions.

“Many members want deeper progress on issue of voice and participation that would take into account changes happening in the world,” he said.

India was represented by Finance Minister P Chidambaram who articulated the developing countries stand on these contentious issues.

Mr Wolfensohn hoped that consensus would develop or begin to develop by the time of the April session of the International Monetary and Finance Committee and Development Committee.

The number of seats for different groups and their quota or shareholding are decided in the IMF, and the formula is followed by the World Bank, he said. Mr Rato indicated in future the IMF would say “no” to a country in trouble, which is not observing the rules, with greater frequency than before. — PTI

New Delhi, October 4
Fertiliser major Indian Farmers Fertiliser Cooperative Limited (Iffco) will invest Rs 480 crore in the next two years on capacity expansion at its four existing units in Phulpur and Aonla, increasing the annual urea production from 36.89 lakh metric tonnes to 42 lakh metric tonnes.

Iffco plans to increase urea plant capacity of Phulpur-I plant from present 1670 MTPD to 2080 MTPD while the capacities of Phulpur-II, Aonla-I and Aonla-II plants will be raised from 2620 MTPD to 3000 MTPD, resulting in total increase of 1550 MTPD.

The capacity enhancement will be completed within 24 months.

The expansion will give an additional urea production of 5.11 lakh metric tonne annually. The present urea capacity is 36.89 lakh tonnes. With this increase the total capacity will become 42 lakh tonnes, Mr U. S. Awasthi, Managing Director, Iffco, said in a statement after the Board of Directors of the company approved this scheme in its meeting held here today.

He also said the scheme would be one of the cheapest options and the cost of production of urea by this option would be cheaper than the imported urea.

The project will also include the conversion of Phulpur plants from naphtha to LNG to reduce the production cost of urea and will be in pursuant to the government’s policy for switching over to natural gas /liquefied natural gas.

In order to reduce the cost further, recovery of carbon dioxide from gases going to atmosphere in Aonla I and II units, will also be carried out to meet the carbon dioxide needs for converting total ammonia to urea.

The total cost of project for expansion and changeover of all four plants is expected to be Rs 480 crore. The installed cost of the de-bottlenecking project is estimated at Rs 24 lakh per MTPD urea in comparison to around Rs 60 lakh per MTPD urea envisaged for the new plant. — UNI

New Delhi, October 4
In order to prepare itself to project a new face for the India International Travel Mart (IITM), Indian Tourism has decided against organising the event this year.

The annual event will be launched afresh next year with a new focus, tourism sources said.

The decision was taken at a recent meeting of Tourism Minister Renuka Chowdhary and top officials such as Tourism Secretary Uma Pillai and Joint Secretary Amitabh Kant.

“The new edition of the Travel Mart will be so designed as to make it more participatory in nature, besides ensuring the involvement of the industry,” sources added.

The general consensus in all meeting held to discuss the revamp of the event, was to adopt the model of “Kerala Travel Mart” held once in two years at Kochi by the Kerala Tourism since 2000.

The sources said the success of third edition of the KTM held during September 29-October 2 had led India Tourism to adopt the KTM model and also to involve the organisers of the KTM in the IITM.

Meanwhile, Kerala Tourism Director T O Sooraj told UNI in Kochi that this year’s KTM was a “tremendous success” as there were 900 registered buyers and 150 sellers. “An event of this kind is not organised anywhere else in India,” he claimed.

Encouraged by the success of the KTM, the Karnataka Tourism is organising its Travel Mart in Mysore for two days from October 15. — UNI

London: Tourism Minister Renuka Chowdhury has urged Delhi Chief Minister Shiela Dikshit to review the decision to impose 26 per cent luxury tax on package tourists from abroad following a complaint by London-based tour operators.

“The tour operators have complained bitterly about the luxury taxes and also inadequate airlines capacity,” she said addressing a meeting of Indian Overseas Congress here last night.

Soon after her meeting with the tour operators, Ms Chowdhury said she spoke to Ms Dikshit about the complaint and urged her to review the decision.

During the meeting it also emerged that by and large French tourists preferred “cultural tours” instead of visits to beaches and Germans evinced interest in tours to Ayurveda-linked centres in India.

She explained government’s decision to provide 71 flights to various international centres by next winter and upgradation of the Delhi and Mumbai airports. — PTI

New Delhi, October 4
Abdul Rashid Khan, a machinist at the Hindustan Machine Tools (HMT) watch factory, today won an award from Prime Minister Manmohan Singh for achieving the highest output in his workplace.

It may not have been an award-winning feat, had it not been for the fact that Khan was born blind.

Today he churns out some 4,000 watch main plates a day at the HMT’s Srinagar factory, inspiring his sighted colleagues with his obsessive dedication.

“I never thought a day like this would come in my life, when I would receive an award from the Prime Minister himself,” said an overwhelmed Khan after he received his citation and cash prize from Manmohan Singh at a function.

He was among 35 awardees recognised for their ability to go that extra mile, especially in a public sector not known particularly for its mark of quality or competence.

They are the assistant rollers, the instrument fitters and the machine operators who may mean nothing to the average citizen but they quietly form the essential cogs in the wheels that keep the business of life going.

Like Khan, Thanappa Lakshmamma and Kamalamma—both afflicted with polio—also triumphed over disabilities in their long journey to the Vigyan Bhavan hall where the Prime Minister acknowledged them with an award and good wishes.

Defying gender bias in more ways than one, both women are master “craftsmen” in HMT, Bangalore.

“I am so happy, and so surprised,” Lakshmamma mumbled through her smiles and giggles. “I have been working for 23 years, and have only felt encouraged by everybody around me.”

That HMT as a watch brand has been struggling in the face of tough competition, both women say with pride: “Our watches are very important in the international market!”

If these awardees shone for their exemplary courage, others stood out for their ability to innovate, and, in the case of Ram Chandra Malhotra, innovate again and again.

Malhotra, a retired employee of the Bharat Heavy Electricals Limited, is a man full of suggestions and ideas to improve quality, productivity and safety.

He has won more than 200 awards only for giving suggestions — a total of 220 from 1994 to 2002.

“It is my habit to give suggestions....my mind is constantly working on ways to improve whatever I see,” he said, proudly clutching the citation that the Prime Minister handed him.

Looking around the hall, he ticked off various ways to organise the function more efficiently.

Finally, he had a suggestion for the Prime Minister: “Retired workers like me, who have work in their blood and cannot sit idle, should be utilised, even if without pay. If former cricketers can become coaches, why should a former employee like me have to stand outside the gates?” — IANS

New Delhi, October 4
South Korean engineering behemoth Hyundai plans to set up an engineering company in India focussed solely on the petroleum sector.

“We will set up an engineering company in India to work on onshore and offshore petroleum projects all over the world,” President of Hyundai Heavy Industries Co Ltd Daniel C S AHN told newspersons on the sidelines of Korea-India Business Summit organised by CII.

Hyundai, which is working on projects near Mumbai, has already hired 60 Indians. “We are working on projects around Mumbai and hired local talent for it. The quality of engineers in India is very good and we would utilise it by setting up an engineering company in India,” Daniel said.

He said Hyundai will start hiring aggressively for the engineering company next year and its headcount in India could initially touch 200. — PTI

Amritsar, October 4
Punjab Chief Minister Capt. Amarinder Singh reiterated that Punjab would soon emerge as one of the most preferred investment destination as the government had recently cleared 15 major industrial projects worth $ 1,260 million in the state. He pointed out all these projects were cleared by him in his capacity as the chairman of the Project Approval Board.

He added the liberal industrial policy, coupled with financial reforms, would certainly lend impetus to the pace of industrialisation that had been retarded since the last one and a half decade due to turmoil in the state.

Addressing prominent industrialists and entrepreneurs after the inauguration of the local CII zonal office here late last evening, the CM said the earlier trend of moving towards Himachal Pradesh and Jammu and Kashmir, which had emerged as tax havens, had now been reversed and a large number of industrial group were keen to invest in Punjab due to better infrastructure.

In a significant announcement, the Chief Minister said land would be provided on lease to hotel chains, especially in the Holy City, keeping in view the large-scale tourist inflow.

Referring to the prospects of industry in the border belt of Amritsar, the CM said the government was preparing the project and would get the Centre’s nod for implementing it for the industrial revival of Amritsar.