The Tribune...Business

	B U S I N E S S	Wednesday, July 8, 1998
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Chandigarh may get
own power plant
NEW DELHI, July 7 — The Centre has agreed to consider the demand for giving a power plant to Chandigarh to solve the problem of power shortage, according to Mr Satya Pal Jain, MP representing the city...

‘Withdraw octroi hike’
LUDHIANA, July 7 — The District Congress Committee (I) Urban, Ludhiana, has demanded that the government should withdraw the increase in the octroi rates and drop the proposal of levying 4.4 per cent tax on the textile and hosiery industry...
Package to check
fall in exports
NEW DELHI, July 7 — Commerce Minister Ramakrishna Hegde and Finance Minister Yashwant Singh today agreed to work out on a priority basis a package of measures to check the negative trend in exports witnessed during April-May 1998...

Potato, onion prices fixed
NEW DELHI, July 7 — The Delhi Government is planning to sell potato and onion at “reasonable” prices to contain the skyrocketting prices of these vegetables for the past few days...

Cell on sanctions’ effect suggested
NEW DELHI, July 7 — A parliamentary committee has recommended creation of a special cell in the Ministry of Non-Conventional Energy Sources (MNES) to overcome the impact of sanctions and prioritise projects of immediate national interest...

Rupee to fall further, says Merrill Lynch
.MUMBAI, July 7 — Merrill Lynch has forecast further depreciation of the rupee to Rs 46 a dollar in six months’ time due to a slowdown in capital inflows, devaluation of Pakistan’s currency and continuing Asian economic problems...

Chandigarh may get own power plant
Tribune News Service
NEW DELHI, July 7 — The Centre has agreed to consider the demand for giving a power plant to Chandigarh to solve the problem of power shortage, according to Mr Satya Pal Jain, MP representing the city.
Mr Jain said today he had met the Union Power Minister, Mr P.R. Kumaramangalam, to discuss the issue of shortage of power in Chandigarh.
The Power Minister, he said, is expected to visit the city on Saturday to have further discussions on the issue with senior officials of the city administration.
Mr Jain informed the minister that in Chandigarh, the problem of power shortage was increasing each day and it was affecting industry, business and trade apart from causing problems to citizens.

He said that in the whole country perhaps Chandigarh is the only Union Territory that does not have a power plant of its own.
The city administration has to purchase power from the neighbouring states which is costly in addition to incurring substantial losses in transmission.
Mr Jain said that Mr Kumaramangalam was concerned about the power situation in Chandigarh and the government, he said would seriously consider the demand for setting up a power plant.
In another development, Mr Jain urged the Centre to immediately withdraw a circular issued by it in 1986 barring the issuance of certificates to the Scheduled Castes/Scheduled Tribes except to those who were settled in the city on before November 1, 1966.

Raising the issue through special mention in the Lok Sabha yesterday, he said the circular was playing havoc with thousands of those who want the certificate for getting jobs or getting their children admitted to various schools.
He said thousands of SC/ST people had come and settled in Chandigarh from the neighbouring States of Punjab, Haryana, and Himachal Pradesh during the last 30 years and the city being a Union Territory a large number of employees are posted/transferred to Chandigarh.
He urged the Centre to issue directions to the Chandigarh administration to issue certificates to all eligible persons of SC/ST irrespective of the fact as to when and how they settled in Chandigarh.

Potato, onion prices fixed
Tribune News Service
NEW DELHI, July 7 — The Delhi Government is planning to sell potato and onion at “reasonable” prices to contain the skyrocketting prices of these vegetables for the past few days.
The Delhi Food and Supplies Minister, Ms Purnima Sethi, said today that the state government would sell these vegetables at “reasonable” prices from tomorrow in every nook and corner of the city with the help of 48 mobile vans.
Potato would be sold at Rs 7 and onion at Rs 10, the price at which these vegetables are procured from farmers, she said.
The prices of these vegetable had shot up by several times because of

natural calamities like drought, hail storms and extreme hot weather, Ms Sethi said.
The production of these vegetables in Punjab and Haryana, she said had been severely affected resulting in the shortfall in supply.
The state government would discuss the matter with the Centre so that some subsidy could be given to them to bring down the prices she said.
She said Chief Minister Sahib Singh Verma will flag off the vans and added that prices of the vegetables will be monitored on a daily basis by the office of the Commissioner, Food and Supplies.
The Agriculture Produce Marketing Committee and the Vegetable Merchants’ Association have also assured full cooperation in providing vegetables to Super Bazar, the Delhi Civil Supply Corporation etc.

‘Withdraw octroi hike’
From Our Correspondent
LUDHIANA, July 7 — The District Congress Committee (I) Urban, Ludhiana, has demanded that the government should withdraw the increase in the octroi rates and drop the proposal of levying 4.4 per cent tax on the textile and hosiery industry
In a press note, Mr Surinder Dawar, president of the committee, alleged today that the Akali-BJP government had deviated from its election manifesto by doubling the octroi which was affecting the business community and the public at large.
The Punjab Cement Dealers Association has also criticised the hike in the octroi charges on cement from Rs 2.50 to Rs 5.00 per bag.
At a meeting called under the chairmanship of Mr Ashok Juneja, it was felt that this hike for cement, a commodity for common man, was unjust as such high octroi rates were not charged anywhere in the country. The association has threatened that if the revised octroi rates are not revoked within 10 days, the manufacturers will stop supplies to Punjab.
The Punjab Pradesh Beopar Mandal has also threatened to launch a state-wide agitation if the revised octroi rates are not withdrawn within a week.

Package to check fall in exports
NEW DELHI, July 7 (UNI) — Commerce Minister Ramakrishna Hegde and Finance Minister Yashwant Singh today agreed to work out on a priority basis a package of measures to check the negative trend in exports witnessed during April-May 1998.
Mr Hegde and Mr Sinha, who met here to work out the strategy to be adoped in the light of this negative trend in the wake of sluggish growth in exports during the last two years, discussed sectorwise problems, including the issue of export credit.
During the meeting, the two ministers also agreed on a series of measures, particularly in respect of the products which have shown a negative trend.
Exports during April-May 1998-99 are estimated at $ 4994.35 million which is 7.54 per cent lower than the level of $ 5401.41 million during April-may 1997-98. In rupee terms, the cumulative export growth rate is higher at 3.4 per cent during this period.

Cell on sanctions’ effect suggested
NEW DELHI, July 7 (PTI) — A parliamentary committee has recommended creation of a special cell in the Ministry of Non-Conventional Energy Sources (MNES) to overcome the impact of sanctions and prioritise projects of immediate national interest.
About $ 135 million assistance from the World Bank has been deferred to the non-conventional energy sector in the wake of the nuclear tests.
Secretary, MNES, S.S. Boparai told the Lok Sabha standing committee on energy that the deferrment of the assistance will affect financing of small hydro power and energy efficiency projects.
Public-sector Indian Renewable Energy Development Agency (Ireda) had negotiated with the World Bank in April, 1998 for a $ 135-million assistance for the second renewable energy project covering small hydro and energy efficiency sectors.
Boparai said Ireda was considering tapping funds from commercial banks, financial institutions and through issue of additional tax free bonds.

Rupee to fall further, says Merrill Lynch
.MUMBAI, July 7 (PTI) — Merrill Lynch has forecast further depreciation of the rupee to Rs 46 a dollar in six months’ time due to a slowdown in capital inflows, devaluation of Pakistan’s currency and continuing Asian economic problems.
The rupee depreciated 1.8 per cent in June and the Reserve Bank of India (RBI) rarely intervened to keep it from depreciating, the international merchant banker said in its latest monthly review of Indian economics.
The Finance Minister seems inclined to leave the market to determine the currency, but political pressure to prevent further depreciation of the rupee is building, it observed.
The Prime Minister’s Office has expressed the need for currency stabilisation, Merrill Lynch noted.
Given the RBI’s predilection to be interventionist, it is likely that RBI will try to stem the fall of the rupee and slowdown the rate of depreciation.
The devaluation of the Pakistan currency to Rs 46 a dollar, Merrill Lynch believes, will put further pressure on the Indian rupee.
It expects the year-end value of Rs 46 a dollar assuming that the Chinese currency holds. The rupee yesterday closed at 42.46 a dollar.

Biz briefs
Sugar mill
SHAHABAD, July 7(FOC)— The Shahabad Cooperative Sugar Mill earned a profit of Rs 6.86 crore last year, said the Deputy Commissioner, and Chairman of the mill, Mr .T. V.S.N. Prasad, today. The mill crushed 41.42 lakh quintals of sugar-care and manufactured 3.94 lakh bags of sugar during 1997-98.

OBC
REWARI, July 7 (FOC)— The Oriental Bank of Commerce started the second phase of its comprehensive village Development Programme (CVDP) in Haryana yesterday. It was formally launched by Mr D.D. Sharma, Chief Manager, in Hazari- was village near Rewari.

LIC agent
ROPAR, July 7(FOC) — Mr R.S. Saini, a retired Divisional Manager (Sales) of L.I.C. of India, now being an agent of the LIC, has secured the first position in Chandigarh division by crossing the one crore mark in just 84 days as on June 30 last.

SBI branch
ROHTAK, July 7(FOC) — The State Bank of India opened its first computerised and personalised branch in the state here today. Mr K.K. Narula, Chief General Manager of the bank inaugurated the branch. Mr Narula said the branch would specialise in providing loans for housing, car and other loans. He met local businessmen and industrialists and discussed various facilities offered by the branch.

Garment fair
NEW DELHI, July 7(FOC) — The Clothing Manufacturers Association of India is organising the 35th national garment fair from July 28 to 31 at Mumbai. The fair will have 360 stalls.