Thursday, December 16, 1999
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B U S I N E S S | Thursday, December 16, 1999 |
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TRAI favours cut in distance slabs NEW DELHI, Dec 15 — The recommendations made by the Telecom Regulatory Authority of India (TRAI) on domestic long distance calls could lead to a reduction in tariffs through increased competition among operators besides offering a better choice to subscribers by breaking the monopoly of the government. Close down three PSU banks: CII New Delhi, Dec 15 — CII today asked the government to privatise the State Bank of India and called for closing down of three `weak’ public sector banks - Indian Bank,UCO Bank, and the United Bank of India. |
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LIC launches four schemes Region’s
first enlargement lab ‘Journey
to self discovery’ from Jan 21 Softsol
expansion plans PUDA,
PWC tieup Infosys
chief best business mind in ’99
HZL disinvestment |
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TRAI favours cut in distance
slabs NEW DELHI, Dec 15 — The recommendations made by the Telecom Regulatory Authority of India (TRAI) on domestic long distance calls could lead to a reduction in tariffs through increased competition among operators besides offering a better choice to subscribers by breaking the monopoly of the government. TRAI has proposed that long distance telephony within national boundaries be opened up, that entry be made open to all willing to take up national licence, paying an entry fee of Rs 500 crore with the revenue sharing proportion being limited to 5 per cent. Opening up of the national long distance service beyond the service area in the year 1999 was one of the commitments made by India during the negotiations on Basic Telecommunications under the General Agreement on trade in Services (GATS) in WTO. The New Telecom Policy (NTP) 1999, announced in March 1999, envisaged opening up of the National Long Distance Service (NLD) beyond the service area to private oeprators for competition with effect from January 1, 2000. The TRAI had brought out a consultation paper last year on telecom pricing and suggested an increase in rental and reduction in long distance tariff to rebalance the tariff. The TRAI had suggested a reduction in number of distance slabs to four from the present eight. Currently the rates vary considerably because of escalating tariffs.The TRAI had suggested a reduction in domestic long distance calls on the principle that the cross-subsidies should be removed over the period of time and subscribers should be encouraged to make more long distance calls. The opening up of the national long distance(NLD) sector could only precipitate the process of tariff rebalancing through increased competition among operators, said one industry observer. “The Indian Telegraph Act 1885 gave the government monopoly over telecommunications. This monopoly is now being replaced by competition in telecommunications under the multi-operator environment. Such an environment will attract investment in the sector and will enable build up of a world class communication infrastructure” TRAI Chairman , Justice S S Sodhi said. At the end of TRAI’s tariff rebalancing program, ending March 2001,tariffs will continue to remain unbalanced i.e long distance rates will continue to be much above costs, the TRAI Chairman said. “For effective and meaningful competition in the long distance segment, which will benefit the consumers, further rebalancing will be necessary to push down tariffs towards costs” he observed. This would promote
setting up of long distance bandwidth capacity in the
country, provide a choice to consumers and promote
competition. |
Close down three PSU banks:
CII New Delhi, Dec 15 — CII today asked the government to privatise the State Bank of India and called for closing down of three `weak’ public sector banks - Indian Bank,UCO Bank, and the United Bank of India. CII’s National Task Force on Non-Performing Assets(NPAs) also recommended that Financial Institutions (FIs) including IDBI, IFCI, SIDBI and Exim Bank should be privatised. The Task Force, headed by ICICI Managing Director, Mr K V Kamath, recommended that the three weak banks required more radical solutions and should not be bailed out by the Asset Reconstruction Companies (ARCs). The body which made wide ranging recommendations regarding management of NPAs, said that the total cost to government for closing down these three banks is about Rs 7,500 crore involving a generous severance package and no loss to depositors. The task force ,however, has estimated a higher cost at Rs 9,800 crore keeping in view the contingent liabilities of the banks amounting to Rs 4,637 crore. Releasing the recommendations, given to Finance Minister Yashwant Sinha on Monday, Mr Kamath said the government must privatise State Bank of India, Bank of Baroda, Oriental Bank of Commerce and Corporation Bank as these banks will prosper after being taken out of the ambit of the state. These banks have low
NPAs, earn good operating profits and enjoy extremely
comfortable interest rate spreads, the report said. |
Y2K control room from December 28 NEW DELHI, Dec 15 (PTI) — A national Y2K control room will be operational at the National Informatics Centre (NIC) here from December 28 to January 3 to coordinate Y2K remedial efforts in the country and assist in smooth sailing into the new millennium. The control room, set up by the Ministry of Information Technology (MIT), would have hotlines and other communication facilities using the NIC’s network NICNET which would help maintain regular contact with 32 state centres of NIC and Y2K control centres of other mission in critical sectors, it was decided at a meeting here today. The national centre would be manned round-the-clock during the week and complemented with videoconferencing facilities to allow organisations to visually interact with Y2K experts on their specific problems, NIC Director General N Seshagiri, who is a member of the National Y2K Action Force, told PTI. NIC’s videoconferencing studios in at 26 centres including Calcutta, Mumbai, Ahmedabad, Thiruvanan-thapuram, Chennai and Bhopal will assist in the effort. The state centres of NIC would liaise with the State Governments, collectors, and the 540 district-level informatics centres of NIC, he said. Meanwhile, the action
force will meeting tomorrow for a final review of Y2K
readiness and contingency plans in the critical sectors. |
LIC launches four schemes NEW DELHI, Dec 15 — The Life Insurance Corporation of India today announced the formal launch of four new schemes covering different spectrums of the age profile with added new features and benefits to the customers.The total number of products (schemes) of the corporation now stands at 61. “ We are ready for the challenges”, Zonal Manager, Northern Region, of LIC, Mr R. Chandrasekaran told The Tribune. The four new schemes launched include the Bal Vidya Scheme for children, the Jeevan Mitra (Tripel Cover) scheme, the Nav Prabhat scheme for senior citizens and and the Jeevan Vishawas scheme for the handicapped. Mr Chandrasekaran said
that the corporation’s image and trust among the
consumers would stand it in good stead in the competition
with private players. |
Region’s first enlargement lab CHANDIGARH, Dec 15 — A “Kodak Enlargement lab’’ was opened in the city at Tejee’s Studio 17 today morning. This is the first enlargement lab to be functional north of Delhi and the 15th such lab in the country, Mr Gurpeet Singh, General Manager, Northern Region, Kodak India Limited, claimed. This lab will enable people to get top quality enlargements of pictures. It will enable enlargements upto any desired size. The lab will be under the direct supervision of Kodak. The Kodak group has accorded sanction for this lab after checking all facilities for over a period of 3 months. Technical Manager of Kodak India Limited, Mr Solomon Silveira, said the idea is to have consistency in print and improvement in quality while Kodak will provide technical support tools and training required. The lab will accept and
process all negatives of all films rolls and is not
restricted to just Kodak films, the company officials
clarified. |
‘Journey to self discovery’
from Jan 21 NEW DELHI, Dec 15 — A “journey to self discovery” for the decision and policy makers of tomorrow is being jointly launched by the Jamshedpur based XLRI and Management Association at a three day workshop beginning from January 21 next year. Talking to newspersons, the Managing Director of Tata Steel Dr Jamshed J. Irani, said the workshop is an exercise to explore “our Indianness at the turn of the century”. Finance Minister Yashwant Sinha, who will inaugurate the workshop, will dwell on “identity through governance” and the renowned scientist, Dr R.A. Mashelkar will speak on science and technology. Dr Manmohan Singh, Mr N.R. Narayana Murthy, Mr V. Kurien will speak on identity through economics, entrepreneurship and managerial identity. The danseuse Mr Sonal Mansingh, will explain the identity through the medium of dance and the psychiatrist, Dr Sudhir Kakar will dwell on psychological and sexual identity. Dr Romila Thapar and Prof Sumit Sarkar will speak on the identity from the historical perspective. The JMA President, Mr Gautam Mukherjee, said the exercise is an attempt to ask as “what does it mean to be an Indian at the start of the New Millennium”. Mr Mukherjee also announced that a Millennium Foundation will set up to help bridge the gap between the urban youth and their peers in the rural sector. The foundation will try
to build a vehicle through which a young person can work
for two to three years in a rural environment at salaries
commensurate with those of the corporate sector, he said
adding that another objective is to help achieve 100 per
cent literacy in the Chotanagpur region. |
Softsol expansion plans NEW DELHI, Dec 15 — Softsol India Limited (SIL), a subsidiary of Softsol Technologies Inc., USA, has embarked on expansion plans envisaging an investment of Rs 46.92 crore. The company provides
technical support and executives Softsol Resources Inc,
(SRI), a US based company. For the period April 1, 1999,
to November 1, 1999, Softsol India registered a total
income of Rs 812.21 lakh and profit after tax of Rs
499.66 lakh. To meet a part of the funding requirements,
SIL proposes to enter the capital market soon. |
PUDA, PWC tieup CHANDIGARH, Dec 15 — PUDA has tied up with the Price Waterhouse Coopers (PWC) to carry out a comprehensive study of its systems and suggest measures to bring its accounting methods at par with the international standards. The balance sheet and accounts of PUDA for the financial year ending March 31, 2000, will also be prepared by the PWC. The Chief Administrator of PUDA, Mr K.B.S. Sidhu, said the authority was in the process of preparing a blueprint of “Vision 2005” which was aimed at achieving a turnover of Rs 500 crore in the next five years. At present, its turnover was Rs 135 crore. The tie-up will help
PUDA in taking loans from financial institutions without
insisting on the State Government’s guarantee. |
Infosys chief best business mind in ’99 NEW DELHI, Dec 15 (PTI) — Chairman of Infosys Technologies N.R. Narayana Murthy and chairperson of Tractors and Farm Equipment (TAFE) Mallika Srinivasan were today adjudged the businessman and businesswoman for the year 1999 by India business report (IBR) in recognition of their achievements of best business minds in the country. Presenting the award, Finance Minister Yashwant Sinha said they had made the country proud by their achievements in their respective fields. Sinha said India needed more such entrepreneurs and the Government would continue to play the role of a facilitator so that the spirit of entrepreneurship could take the country forward. The criteria for nomination for the award, which would be broadcast by BBC world on December 19, includes contribution to the world of business as Resident Indian with a business in India and also the innovative skills, success and growth of the businessman or woman in his or her chosen field. It also includes the
entrepreneur’s ability to incorporate changes as
they place in the global business, transparency and
corporate governance. |
HZL disinvestment NEW DELHI, Dec 15 (PTI) — Disinvestment of Government’s stake in the mini-Ratna Hindustan Zinc Ltd (HZL) is expected to be completed by the end of current fiscal, a top official of the company said today. “The
inter-ministerial group (IMG) has already given its
recommendation to the Finance Ministry for divesting the
Government’s 25 per cent stake in HZL and we are
hopeful of completing the process by March 2000,”
HZL Chairman and Managing Director K.V.K. Seshavataram
told PTI. |
ICICI Bank, Satyam Info jv for
online banking NEW DELHI, Dec 15 — ICICI Bank and Satyam Infoway Ltd today announced the setting up of an online retail banking and e-commerce related products and services on the web. The range of retail banking products to be distributed through the portal would include savings accounts, current accounts, fixed deposits. Bill payments and other retail banking products that ICICI Bank may offer through this online channel, Mr K.V. Kamath, CEO of ICICI Limited addressing a press conference said. “The two companies will explore several opportunities to complement each other’s strengths to capitalise the opportunities in e-commerce,” he said. An MoU was signed
between Mr H.N. Sinor, Managing Director of ICICI Bank
and Mr R. Ramraj, Managing Director of Satyam Infoway. |
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