Webtone to replace dialtone
NEW DELHI, Oct 20 — Internet, which is revolutionising the communication network across the globe, could well be termed as “Webtone” replacing the conventional “dialtone” in the next millennium.

• Satyam Info ADS price doubles in NASDAQ

Bank officers warned of computer frauds
CHANDIGARH, Oct 20 — Mr Bhure Lal, Secretary Government of India today delivered a talk on “Challenges in the international banking in the new millennium” at the Punjab & Sind Bank, Staff Training College.

General Motors India launches ‘Opel 100’
CHANDIGARH, Oct 20 — GM India today launched ‘Opel 100’ a special edition Opel Astra in the Chandigarh market. The special edition Opel Astra has been launched to celebrate 100 years of automotive manufacturing by Opel Admn AG.

MoU for insurance academy signed
CHANDIGARH, Oct 20 — A memorandum of understanding between College of Insurance and Financial Planning, Hyderabad and UGCE-Insurance Institute for Education and Training Chandigarh was signed here today for setting up insurance institute in the city.

UCO Bank earns Rs 4.82 crore net
SHIMLA, Oct 20 — The Himachal Pradesh zone of the United Commercial Bank has earned a net profit of Rs 4.82 crore as of first half year of 1999 as compared to Rs 2.81 crore for the corresponding period of last year, thereby registering an increase of 71 per cent.

Scrap handloom Act: panel

NEW DELHI, Oct 20 (PTI) — An expert panel has asked the government to take out garments, hosiery and knitting sectors from exclusive domain of small scale industries besides framing an exit policy as part of a strategy to garner 10 per cent of the global textile trade by 2010, up from over 3 per cent now.

In its recommendations for the new textile policy, the committee, headed by former Textile Secretary S. Sathyam, also sought reduced government role through liberalisation and modernisation to enable the domestic industry effectively compete in the post multi-fibre agreement (MFA) quota regime ending 2004.

Seeking a uniform Industrial Disputes Act governing the country, the report, submitted to government recently, underscored the need for flexibility in engaging contract labour, empowering mills directly to retrench workers and evolving attractive voluntary retirement scheme.

Urging the government to delay the lowering of tariffs relating to textiles sector as committed to the World Trade Organisation (WTO), the committee recommended dereservation of garments, hosiery and knitting sectors from areas earmarked for small scale industries.

It also sought scrapping of the Handloom Reservation Act to enable indigenous industry face export competition

The report suggested a proactive foreign direct investment policy that would allow upto 100 per cent equity in apparels and exempting such units from export obligations.

It suggested that all textile items should be removed from the purview of the Essential Commodities Act except ginned and unginned cotton and cotton seeds besides raw jute and jute textiles.

Referring to sick National Textile Corporation (NTC) and state textile corporations, the committee suggested privatisation of potentially viable units.

The Board for Industrial and Financial Reconstruction had not succeeded in rehabilitating sick mills, the report said and suggested change in definition of sickness to cover cases of potentially sick units and evolving a strong mechanism to monitor the health of the textile mills.

The committee suggested reduction in customs duty on textile machinery to 16.5 per cent from 27.25 per cent besides eliminating excise on such machinery for encouraging modernisation and bringing down capital costs.

It has also recommended moving towards a uniform excise duty structure for all textile items like fibres, yarns and fabrics in three phases while reducing the cost of intermediates such as DMT, PTA, MEG and caprolactum to prepare the industry for global competition.

The committee said synthetic fibres and filament yarns should be transferred to the administrative control of the Textile Ministry from the Department of Chemicals and Petrochemicals for adopting an integrated policy approach.

It also suggested that import duty on apparel grade raw wool should be further reduced.

On the silk sector, the report said the government should permit import of silk varieties which were not produced in the country. Further, it suggested a shift in focus from mulberry silk to other varieties, which have been neglected.

The committee recommended scrapping hank yarn obligation (HYO) scheme, used by the handloom sector, as its production was uneconomical and adversely affected the economic viability of spinning units.

The handloom sector could survive without the scheme and alternative schemes like supply of dyed cone yarn at affordable prices could be evolved, it said.

Cabinet clears insurance Bill

NEW DELHI, Oct 20 (PTI) — The Union Cabinet is understood to have cleared tonight the much-delayed Bill to open up the insurance sector, expected to be introduced in the current session of Lok Sabha.

Besides the introduction of the Insurance Regulatory Authority (IRA) Bill, expected to be introduced on the last day of the session, October 29, the first Cabinet meeting after elections discussed the difficult fiscal situation with the deficit likely to shoot up much beyond the targeted level of 4 per cent of GDP.

The IRA Bill, which will allow 26 per cent foreign equity participation in the domestic insurance sector, was introduced in the last Lok Sabha after approval by a parliamentary standing committee with certain modifications but could not be passed due to the fall of the Vajpayee government.

The Bill has to be introduced again for its passage, which is crucial to attract long-term funds of $ five billion annually to raise necessary resources for infrastructure development.

Mr Sinha had announced in Washington during the annual fund-bank meeting that the government would push this important legislation within three days of assuming office and strive to pass as many as 14 other major economic legislations including the Foreign Exchange Management Act and the money laundering Bill to replace the draconian Foreign Exchange Regulation Act.

The very fact that Mr Sinha gave a presentation on difficult fiscal situation during the 90-minute Cabinet meeting indicated the importance the government attaches to restore the fiscal health of the economy.

Reliance net up 22 per cent

MUMBAI, Oct 20 (PTI) — Reliance Industries Ltd (RIL) today reported a 22 per cent increase in net profits at Rs 1,122 crore in the first six months of the current fiscal. The company has recorded a turnover of Rs 8,673 crore, an increase of 18 per cent over the corresponding period last year, a company release here said.

The sales growth of 18 per cent comprises the positive impact of 13 per cent from volume growth and 5 per cent increase in product selling prices as compared to the corresponding period.

Operating profit for the half year increased by 19 per cent to Rs 1,992 crore as against Rs 1,670 crore for the corresponding period.

During the period under review, cash profit increased to Rs 1,569 crore as against Rs 1,323 crore for the corresponding period last year.

Earnings per share for the half year ended September 30, 1999 is Rs 11.8 and cash earnings per share for the half year is Rs 16.6, it added.

The 13 per cent growth in Reliance’s volumes partially reflects the impact of the start up of two polypropylene lines of 400,000 tonne per annum and one paraxylene line of 465,000 tonne per annum at the Jamnagar petrochemicals complex, the statement said, adding that production volume for the full year is likely to be substantially higher, consequent to the full commissioning of the Jamnagar complex.

During the six months under review, export revenues, including deemed exports, increased by 47 per cent to Rs 421 crore ($97 million).

The company has reported a 22 per cent increase in interest expenses and an 11 per cent increase in depreciation primarily due to residual capitalisation of Hazira plants and commissioning of new facilities of Jamnagar, it added.

RIL also reported a capital expenditure of nearly Rs 1,650 crore mainly at the Jamnagar petrochemical complex.

Production volumes in the polyester business increased by 9 per cent to 318,000 tonnes, while production volumes of fibre intermediates grew by 17 per cent to 745,000 tonnes.

Indo Gulf net spurts

Indo Gulf Corporation Ltd (IGCL) has reported a 40 per cent increase in net profit in the second quarter of 1999-2000 at Rs 48.92 crore, compared to the corresponding quarter last year.For the half-year ended on September 30, 1999, the Aditya Birla group company reported a net profit of Rs 89.68 crore, an increase of 27.2 per cent from last year’s first half.

Smithkline Beecham: Smithkline Beecham Consumer Healthcare Limited (SBCH), announced enhanced 3rd quarter results for 1999. SBCH showed positive growth-throughout 1998 and continues the trends this year. Cumulative revenues declared for the nine months were Rs 522 crore (PY Rs 474 crore). These represent at 10.1 per cent increase. The gross operating profit was improved by 14 per cent to Rs 103 crore, from Rs 90 crore for the same period in 1998.

German Remedies: German Remedies Limited said its net profit in the first half of its financial year 1999-2000 was Rs 13.58 crore, up 22.6 per cent from Rs 11 crore in the same period last year.

The company’s net profit in the second quarter was Rs 9.8 crore, up 4.7 per cent from Rs 9.3 crore in the same period last year.

Madras Refineries: Madras Refineries Limited (MRL) has paid the Centre Rs 27.04 crore as dividend for 1998-99, according to a company press release here today.

MRL had achieved a record turnover of Rs 3747 crore and a profit after tax of Rs 205 crore for the financial year 1998-99.

PHF Leasing: Punjab Housing Finance (PHF) Leasing Limited has earned a gross income of Rs 249.23 lakh during 1998-99 as against Rs 209.31 lakh of previous year registering a growth of Rs 13.07 lakh. Investments in leasing and hire purchase activities have crossed Rs 783.40 lakh. The deposits of the company has increased from Rs 230.21 lakh to Rs 304.87 lakh. The company declared a dividend of 13 per cent on pro rata basis. — TNS, agencies

Bank officers warned of computer frauds
Tribune News Service

CHANDIGARH, Oct 20 — Mr Bhure Lal, Secretary Government of India today delivered a talk on “Challenges in the international banking in the new millennium” at the Punjab & Sind Bank, Staff Training College. He stressed upon officers of the bank to be more vigilant about the computer related frauds which are on the rise.

Mr Surinder Singh Kuhli, CMD of the PSB, highlighted the bank's achievements including continuous net profits since the last three years and capital adequacy norms. He also emphasised on the need for reducing cost of deposit the reduction in NPAs.

UCO Bank earns Rs 4.82 crore net
Tribune News Service

SHIMLA, Oct 20 — The Himachal Pradesh zone of the United Commercial Bank has earned a net profit of Rs 4.82 crore as of first half year of 1999 as compared to Rs 2.81 crore for the corresponding period of last year, thereby registering an increase of 71 per cent.

This was announced by Mr S.D.Uppal, Zonal Manager of the bank, who attributed this increase in profit to sustained recovery efforts, increase in non-interest income, which increased by 150 per cent over the income of September 1998.

General Motors India launches ‘Opel 100’
Tribune News Service

CHANDIGARH, Oct 20 — GM India today launched ‘Opel 100’ a special edition Opel Astra in the Chandigarh market. The special edition Opel Astra has been launched to celebrate 100 years of automotive manufacturing by Opel Admn AG. The special edition brings a refreshing new look to the popular Opel Astra model.

Mr Sanjeev Garg, Senior Regional Manager of General Motors India said, “Opel began manufacturing automobiles on January 20, 1899 in Germany. For a century, Opel has continuously made its reputation worldwide by setting leading-edge standards for automotive technology, safety and environmental friendliness.

The Opel 100 special edition will be available in an exclusive colour — “El Paso” bronze tone in a mica metallic finish.

Mr Vineet Awasthi, Zonal Sales Manager (North) said the models will be available in limited numbers in petrol as well as diesel variants. The ex-showroom price of the variants in Chandigarh will be petrol Rs 7.9 lakh and diesel Rs 8.75 lakh.

MoU for insurance academy signed
Tribune News Service

CHANDIGARH, Oct 20 — A memorandum of understanding between College of Insurance and Financial Planning (CIFP), Hyderabad and UGCE-Insurance Institute for Education and Training Chandigarh (UGCE-IIET) was signed here today for setting up insurance institute in the city. UGCE-IIET would be the first Insurance institute of its kind in the northern region.

Mr B.K Sharma, founder director of the UGCE-IIET said that a greater demand for professionally trained marketing force is foreseen on opening of the insurance sector to private participation and MNCs.

Mr Appa Rao Machiraju, Director, CIFP said that till date CIFP has trained over 8,000 field personnel from both Indian and foreign insurance sector in the cadre spread from agents/Development officers to senior branch managers sponsored by various agencies and organisations.

Mr Sharma said Chandigarh having all the advantage of being a well-developed academic city, is suited for imparting professionalised education and training. To begin with, UGCE-IIET will start with workshops followed by short courses as per the market need and subsequently add advance courses in different areas of insurance.

Webtone to replace dialtone
Tribune News Service

NEW DELHI, Oct 20 — Internet, which is revolutionising the communication network across the globe, could well be termed as “Webtone” replacing the conventional “dialtone” in the next millennium.

Consider the following:

More than 67,000 new internet users are added every day. There would be 350 million internet users by 2002. Around 10,000 new websites are launched every week and there would be half a billion mobile phone users by 2000.

“ Over a period of time, many of these phones will become web enabled and Internet is not just PCs. Every device which has a micro-processor like a pager, an organiser, mobile phone would be network compatible”, Chief Operating Officer of Sun Microsystems Inc, Mr Ed Zander said while addressing a meeting organised by CII here today.

While the radio took 59 years to reach 50 million users,there are about 150 million internet users in a period of just four years.”There would be webtone from any device replacing dialtone”, Mr Zander said.

The business to business (B2B) commerce in all likelihood is projected to reach $1.3 trillion by 2003 and would constitute 10 per cent of total B2B sales.

“Internet can really change business models”, Mr Zander said while advising industrialists that “if you really want to compete globally, go online”. For instance, while Walmart, a popular chain of departmental stores took 15 years to build a network of 78 stores, Amazon, com generated business worth $500 million in a period of three years through the medium of websites.

While everyday there are new business ideas and new company through the web, the old and established companies are thinking how to actually put the new business model in use.

Very rapid changes are likely to happen in the bandwidth technology.“Changes will happen and it will happen in abundance”, Mr Zander said adding that it is likely to triple every six to nine months.

The real challenge is to provide network infrastructure to as many people as possible.“You do not give PCs to everybody. Instead give networks to everybody”, he added.

Mr Zander, who is responsible for the day-to-day business operations overseeing all of Sun’s seven product divisions, manufacturing, corporate brand marketing, and world-wide field organisations, suggested businessmen to assume that web will be every and always on.

“Figure out a business and drive across geographical boundaries. Assume your competitor is only click away”, Mr Zander , who also holds the responsibility for the Sun Labs research and development group as well as the office of the chief technology officer, said.

“Get website, get a portal, get a brand and think click and bricks”, he suggested.There is also a need for companies to outsource everything that is not its core competence.“Get there first, go big and use web standards”, Mr Zander observed.

Satyam Info ADS price doubles in NASDAQ

NEW YORK, Oct 20 — In a strong indication of interest in India’s burgeoning Internet market, the price of American Depository Shares (ADS) of one of the largest Internet Service Providers (ISP) of India doubled on the opening day of offering on NASDAQ Stock Exchange.

From the offer price of $18 per ADS, prices for Satyam Infoway Ltd., the second Indian company to be listed on NASDAQ, closed at almost $35. Satyam has raised gross proceeds of approximately $75 million by issuing 4.1 million ADS’ at a price of $18 per each. Merrill Lynch & Company, Hong Kong, is the lead manager for this offering, which is co-managed by Salomon Smith Barney.

A majority-owned subsidiary of Satyam Computers Services Limited, Satyam Infoway has granted the underwriters an over-allotment option to purchase up to an additional 626,250 ADS’ within 30 days following the pricing of the offering.

According to a company press note, Infoway’s ADS issue, with an order book of around $2 billion, was oversubscribed approximately 27 times, making it the largest ever over-subscription for any Indian ADR/GDR offering. The original offer price was in the $12-14 range, which was raised to the present level.

B. Ramalinga Raju, chairman of Satyam Computer Services Ltd., said the company was proud to be associated with NASDAQ. “The listing provides Satyam Infoway the liquidity and the financial confidence to further enhance the quality and scope of service to its customers,” he said. — IANS