Punjab economic policy after poll
LUDHIANA, Aug 17 — A blueprint of industrial economic policy for Punjab is ready and will be announced soon after the elections.Instead of announcing new incentives and concessions as in the past, the new policy will address inter-department issues and problems is getting speedy industrial clearances, said Mr Ramesh Inder Singh, Principal Secretary to the Chief Minister, during an interaction organised by the CII here yesterday.

BIFR pulls up Chairman of sick PNFC
NEW DELHI, Aug 17 — Punjab National Fertilisers and Chemicals has been rapped by the BIFR for showing lack of interest in reviving the sick company.

This civic loan is highly safe
NEW DELHI, Aug 17 — ICRA Limited has assigned an LAA minus (SO) rating to the Rs 12.84 crore term loan programme of Ludhiana Municipal Corporation indicating high safety.

Shortage of wire rods in Punjab
LUDHIANA, Aug 17 — Punjab is facing an acute shortage of wire rod which is an important raw materiel used by thousands of fastener, bicycle, automobile and engineering industrial units in the megacity.

• Montari no to BIFR
• Airtel enters USA
• Data gets mobile

Cut in interest rate to trigger foreign capital exodus: PNB

NEW DELHI, Aug 17 (PTI) — Any cut in interest rates now will lead to an exodus of foreign capital from India resulting in the depletion of forex reserves, according to PNB Gilts, a primary dealer in government securities.

The US Federal Reserve’s decision to hike short-term interest rates by 25 basis points last month and the probability of a further hike in the near future has created conditions unfavourable for any rate cut in India, PNB Gilts said in its latest money market report.

“Any rate cut under these circumstances would lead to exodus of foreign capital from India,” it said warning that this would lead to depletion of country’s forex reserves.

On the continuous slide in inflation rate over the past few weeks and a debate on a cut in interest rates in view of the low inflation, PNB Gilts said “before any reduction in interest rates is effected in tune with the decline in inflation, one has to take into account the sustainability of this trend in the near future.”

The low rate of inflation was attributed to high base and it was likely to last only till November-December, after which it may rise again, it said.

Further, with signs of industrial recovery in sight, demand for credit is expected to pick up in the second half, PNB Gilts, a wholly-owned subsidiary of Punjab National Bank said.

One of the main reasons for the inflation rate to recede in recent months besides the high base is the record agricultural production. Recession in industry also appears to have placed a role in bringing down the inflation rate because of sluggish demand for industrial products, PNB Gilts said.

On the revenue collections, which rose by 9 per cent during April-July 1999, it said direct collections were showing a disturbing trend mainly due to substantial decline in corporate tax collections. The income tax collections for April-July at Rs 5133 crore is 21.5 per cent higher compared to the same period last year.

Corporate tax collections for this period amounted to Rs 2,402 crore compared to Rs 4,129 crore in the same period last year, showing a fall of 41.8 per cent mainly due to huge refunds, lower advance tax payments during this period, it said.

Commenting on the industrial growth of 5.6 per cent during April-July, it said the moderate resurgence in industrial growth was mainly accounted for by the manufacturing sector, which recorded growth of 6.5 per cent as against 4.2 per cent in the same period last year.

Morepen to hive off four arms
From P.N. Andley
Tribune News Service

NEW DELHI, Aug 17 — Morepen Laboratories Limited, has earmarked an investment of nearly Rs 80 crore for expanding the existing capacities and producing new drugs over the next three years.

The Himachal-based pharma major is currently working on expanding capacities and identifying new drugs to be produced from its units over the next three years. “We are still maturing. Over the next three years, we intend to hive off all the four divisions under the umbrella of the Morepen brand”, Mr Sushil Suri, Director of Morepen, told TNS.

The company has already targeted a 10-fold jump in the turnover in the next three years, having bagged the licence from the US Food and Drug Authority to manufacture an anti-allergic drug in India. Four more drugs are in the pipeline, which include Fluastatin (cholestrol reducer), Losartan (anti-hypertensive), Zafirlukast and Monteluast (both anti-asthmatic).

The four divisions - bulk drugs, formulations, consumer care and herbal division — will give Morepen a turnover of Rs 2,500 crore in 2002-03. This, according to Mr Suri, is on the strength of the company’s growth strategy to identify drugs that would go out of the patent regime over the next three years.

Meanwhile, the company plans to go into the manufacture of medical equipment in-house. The company recently joined hands with Parti GmbH of Germany to launch inhalation therapy equipment under a marketing pact. The product is currently imported from Germany. “But we will gradually shift to producing them here”, he said.

Morepen is also increasing its presence in the over-the-counter category through its consumer care and herbal division. The products from the consumer care division are currently being test-marketed and will be launched in the domestic as well as export markets in a phased manner over a period of 18 months.

The range of products include Garliton (garlic anti-cholestrol tablets), turmeric capsules for internal healing and arthritis, Zinger (ginger tablets for motion sickness, nausea and gastric problems), Mintina (mini tablets for curing stomach pains, spasms), Zimvit-L (multivitamin tablets for lactating mothers), and Zimvit-P (multivitamin tablets for pregnant women).

Punjab economic policy after poll
Tribune News Service

LUDHIANA, Aug 17 — A blueprint of industrial economic policy for Punjab is ready and will be announced soon after the elections.Instead of announcing new incentives and concessions as in the past, the new policy will address inter-department issues and problems is getting speedy industrial clearances, said Mr Ramesh Inder Singh, Principal Secretary to the Chief Minister, during an interaction organised by the CII here yesterday.

To strengthen the small industry base in the State, an Industrial Renewal Fund will soon be constituted with equity participation from SIDBI.

Listing quality and assured power to be the most crucial factor for industrial development, he assured the industry representatives that soon industry would get representation in the dispute settlement committees constituted by PSEB for the redressal of grievances.

Mr J R Singal, Chairman, CII Ludhiana Zonal Council, highlighted problems faced by the Ludhiana industry relating to power, credit requirements of SMEs, poor upkeep of focal points, capital subsidy etc. He urged the State Government to urgently formulate a State export policy and an exclusive small scale industry policy.

Mr Sunil Kant Munjal, Chairman, CII (Northern Region) said Punjab needs to build on its inherent strength — a vibrant small and medium industrial sector and potential to convert its agricultural base into an agro industrial destination.

The meeting was attended by prominent industrialists and local industry associations.

BIFR pulls up Chairman of sick PNFC

NEW DELHI, Aug 17 (PTI) — Punjab National Fertilisers and Chemicals (PNFC) has been rapped by the BIFR for showing lack of interest in reviving the sick company.

The board has also taken strong exception to PNFC Chairman and Managing Director S.S. Brar’s, request to the BIFR to direct the Union Government to reintroduce subsidy on ammonium chloride fertilisers, one of the products manufactured by PNFC.

The BIFR took a serious note on the company/promoters and the State Government for not showing their commitment to the revival of the sick company.

“Their commitment or rather lack of it was established in response to a pointed query by the Bench if they were willing to deposit Rs 25 crore in a no-lien account or were agreeable to settle the dues of FIs and banks by payment of at least 100 per cent loan along with 50 per cent of interest,” a recent BIFR order said.

Mr Brar, who is also the CMD of Punjab State Industrial Development Corporation (PSIDC), submitted before the board in response to a BIFR query that he was not in a position to make any commitment in this regard.

Following the lack of interest shown by the PNFC promoters and State Government, the two-member BIFR Bench formed a prima-facie opinion that it was just and equitable in the public interest to wind up the company.

However, workers of PNFC pleaded that the winding up of the company would affect them as they have been making sincere efforts for running the company and requested the board that the company be allowed three months’ time for submission of another rehabilitation proposal.

The workers’ association of PNFC also stated to the board that the possibility of the handing over of the unit to National Fertilisers Ltd (NFL) also needed to be explored as PNFC was dependent on NFL.

PNFC has been with the BIFR since 1987 and the scheme sanctioned earlier for its rehabilitation had failed and all efforts made and repeated opportunities allowed to it promoters to come up with a viable scheme could not result in any positive development.

Punjab National Fertilisers and Chemicals owes Rs 8.75 crore to financial institutions and Rs 28.25 crore to banks.

This civic loan is highly safe

NEW DELHI, Aug 17 (UNI) — ICRA Limited has assigned an LAA minus (SO) rating to the Rs 12.84 crore term loan programme of Ludhiana Municipal Corporation (LMC) indicating high safety.

The rating is based on a structured mechanism wherein the entire water charges are diverted to an escrow account so as to meet the interest and principal obligations of this term loan. The rating also takes into account the low level of debt and strong revenue steams (octroi, property tax and water charges) of LMC.

ICRA observes that octroi is a major source of revenue and its abolition will have an adverse impact on LMC’s finances. This risk is mitigated by the assurance given by the Government of Punjab that in the event of abolition of octroi in future it would suitably compensate LMC with an alternate source of revenue streams. Moreover, the State Government would support this structured mechanism and refrain from any action which might weaken it.

LMC is the State’s biggest Municipal Corporation with an area of 159.37 sq km under its jurisdiction. Ludhiana is the major industrial base of Punjab which has manufacturing units of cotton and woollen hosiery, knitting yarn, cycle/cycle rickshaws, cycle parts, cycle tyres and tubes, machine tools and auto parts.

The total revenue receipts of LMC have grown from Rs 66.99 crore in 1994-95 to Rs 118.72 crore in 1998-99. The major revenue sources of LMC are octroi, property tax and water and sewer charges, which have recorded a growth rate of over 15 per cent in the last five years. Octroi accounted for an average of 67 per cent of the total revenue receipts during the period 1994-99. Property tax and water charges constituted around 14 per cent and 6 per cent respectively of the total revenue receipts during the same period.

Airtel enters USA

NEW DELHI, Aug 17 (UNI) — Airtel today became the first cellular operator in Delhi to extend its smart roam international services to the USA. Smart roam international from Airtel will soon be extended to Boston, New York, New Jersey, Washington and a host of other places.

With over 61 networks under its aegis worldwide, Airtel’s smart roam international services are now available in 38 countries internationally, including the USA, Britain, France, Switzerland, Hong Kong, Singapore, Taiwan, Netherlands, Australia, Turkey, Spain, Poland, South Africa, The United Arab Emirates, Italy and Austria.

Data gets mobile
Tribune News Service

CHANDIGARH, Aug 17 — Spice Telecom has introduced mobile data services in Punjab.

Mr Sean Dexter, Managing Director, said, today that with a speed of data transfer at 9600 bps., information through the mobile data service can be sent or received electronically within seconds, saving both time and resources. “The subscriber can even surf the Net, send or receive-e-mail and exchange files. All he has to do is to connect his mobile phone to a laptop with a simple accessory fitted inside which works using the GSM technology,” added Mr Dexter.

Shortage of wire rods in Punjab
Tribune News Service

LUDHIANA, Aug 17 — Punjab is facing an acute shortage of wire rod which is an important raw materiel used by thousands of fastener, bicycle, automobile and engineering industrial units in the megacity.

This has not only depressed the production activity but also the export of their end products. A major portion of the requirement of wire rods is being met through the public sector steel plant at Visakhapatnam. However, the alleged irregularities and lack of transparency in the allocation and distribution of wire rods by officials as the local office of the steel plant has left the local units highly dissatisfied.

There has also been a massive hike in the price of wire rods ranging between Rs 1500 and 1800 per MT during the past couple of months with the result that the price of wire rods which was being quoted at Rs 15,000 per MT in June is now being quoted at Rs 16,500 per MT. Ludhiana requires 5,000 MT of wire rods every month. As against this, it is getting only 1,000 MT. According to the Ludhiana Small Scale Manufacturers Association, the scarcity of wire rods in Punjab is due to the export of the raw material item to other countries. Mr Harish Khanna, president of the association has urged the government to immediately intervene in the matter so as to make available the requisite quantity of the wire rods in Punjab.

Montari no to BIFR

NEW DELHI, Aug 17 (UNI) — Montari Industries Limited (MIL), a sick company of the Bhai Manjit Singh group, will soon approach the Appelate Authority for Financial and Industrial Reconstruction (AAFIR) against the BIFR directions to deposit about Rs 26 crore in a no lien account.

The decision to approach AAFIR, sources said, follows the BIFR’s denial on MIL’s request to review its orders taking exception to the appropriation of funds realised from the sale of shares of Bausch and Lomb India Limited (BLI) to Morgan Stanley.

Forex
US $ Rs 43.41/42
Stg £ Rs 69.34/36
Euro Rs 45.66/68
Jap yen (100) Rs 37.93/95

SBI seminar
Tribune News Service
CHANDIGARH, Aug 17 — The SBI organised a seminar of SSI branches in Punjab and Haryana at the bank’s local head office today. It was presided over by Mr R.C. Agrawala, General Manager of the bank Chandigarh Circle.

NFL Director
From Our Correspondent
LUDHIANA, Aug 17 — Dr O.P. Sahni, Professor, Deptt of Business Management, PAU has been appointed part-time non-official Director on the Board of NFL.

NSE shares
MUMBAI, Aug 17 (PTI) — The NSE today announced the addition of eight securities for trading on the capital market segment of the exchange from tomorrow. According to an NSE release, the equity shares were Amtrex Appliances Ltd., Bayer (India) Ltd., Cosmo Films Ltd., Himachal Futuristic Communications Ltd., Hitech Drilling Services Ltd., Mirza Tanners Ltd., Ultramarine and Pigments Ltd. and VXL Instruments Ltd.