Privatise BHEL, four other PSUs: panel
NEW DELHI, Aug 19 — The Disinvestment Commission has asked the government to privatise five public sector undertakings.


FIs may be allowed to trade in unlisted scrips
NEW DELHI, August 19 — Financial institutional investors will shortly be allowed to trade in two unlisted securities on the over the counter exchange of India.

ICICI plans public issue at 73 a share
MUMBAI, Aug 19 — The Board of Directors of ICICI Ltd today approved a Rs 500 crore preferential allotment of equity capital to its principal domestic institutional shareholders and a Rs 275 crore public issue at a price of Rs 73 per share followed by an international offering to raise another Rs 1,390 crore.

Poll funding by cheque or cash?
NEW DELHI, Aug 19 — Political parties may face the industry’s ire against frequent elections and the same may be reflected in a drastic cut of up to almost 50 per cent of its contribution to poll funds for the upcoming Lok Sabha polls.

Gurgaon lacks basic telecom infrastructure
GURGAON, August 19 — A preferred hotspot for corporate head offices of major multinationals, including telecom giants like Alcatel,Modi Telstra and Hughes Telecom, the industrial township of Gurgaon does not even have basic telecom infrastructure.

Panipat coop bank top brass trade charges
PANIPAT, Aug 19 — The Vice-Chairman of Panipat Central Cooperative Bank, Harbhagwan Chaudhary, and the General Manager of the bank, R.P. Singla, have lodged complaints with the Haryana Chief Minister, the Cooperation Minister and the Secretary Cooperative Societies against the alleged misuse of official powers, misutilisation of bank funds and other acts of gross omission and commission by the bank Managing Director, Baljit Singh.

Privatise BHEL, four other PSUs: panel
Disinvestment Commission’s term extended till November

NEW DELHI, Aug 19 (PTI) — The Disinvestment Commission has asked the government to privatise five public sector undertakings, including Bharat Heavy Electricals Ltd and Rashtriya Ispat Nigam Ltd (RINL).

The commission in its 12th report submitted to the Government, suggested sale of 51 per cent Government stake in Hindustan Insecticides Ltd and Rashtriya Chemicals and Fertilisers Ltd to strategic buyers and RINL.

The commission, headed by G.V. Ramakrishna, also recommended the sale of 33 per cent of the Government’s equity in Hindustan Organic Chemicals Ltd to bring down its holding to 26 per cent.

It suggested induction of financial institutions as strategic partners in BHEL by offering 20 per cent Government equity to give the company financial strength to expand its international operations.

The Government holds 67.7 per cent stake in BHEL.

With the submission of the 12th report, the commission has completed examination of all 58 PSUs referred to it by the Government except for the six cases which are pending with the BIFR.

Meanwhile, the Government has extended the term of the Disinvestment Commission by a token three months, leaving final decision on the fate of the advisory panel for the next elected government.

“We have extended the term of the Commission till November-end,” S. Narayan, Secretary, Department of Public Enterprises (DPE), told PTI.

The government decision follows a communication from the commission informing that its term was coming to an end on August 22 and that it had completed processing of all the 58 PSUs referred to it so far.

The temporary respite to the commission has put the issue of the role and fate of the commission in abeyance, thereby eliminating the possibility of en-masse resignation by the commission members.

Earlier the commission had represented to the government, including Finance Minister Yashwant Sinha and Industry Minister Sikander Bakht, demanding a greater role and supervisory powers for itself in the process of disinvestment.

The commission, which has often criticised the government for bypassing a number of its recommendations, has sought restoration of its supervisory powers, which were annulled by the previous united front government.

Software exports grow 55 pc: Nasscom

NEW DELHI, Aug 19 (PTI) — Market capitalisation of Indian information technology (IT) companies has outpassed the personal care and refinery segments with the sector accounting for Rs 79,070 crore as on August 18 — 15 per cent of the total capital of Indian bourses.

Market capitalisation of software-driven Indian IT industry has crossed 15 per cent of the total market capitalisation of the Indian stock exchanges, the President of National Association of Software and Services Companies (Nasscom), Dewang Mehta told reporters here today.

A Nasscom survey has revealed that the IT sector has been improving its market cap position over the last four years with the industry reaching the number one slot yesterday from the second position in March last and the 10th slot last year.

The IT sector had improved its market capitalisation rank from 43 in 1995 to 23 in 1997 and 10 last year.

Mehta said it was interesting to note that the IT segment had reached the top rank of market capitalisation with the scrips appreciating over Rs 20,000 crore during the first few months of the current fiscal.

Meanwhile, the IT industry has posted a robust export growth of 55 per cent during the first quarter of the fiscal with the export revenue shooting up from Rs 2,270 crore for the same period last year to Rs 3520 crore.

Nasscom is in the process of setting up a rating agency to address the software sector for the benefit of investors.

Nasscom has found that contribution of Y2K solution projects in software exports is almost 20 per cent of the total software exports in the first quarter. Indian software export industry has executed over $ 2 billion Y2K software solutions for the overseas market.

Nasscom has also found that the global slowdown in the Y2K solution spending in the latter part of the current fiscal will not adversely affect the Indian software industry since many of the companies have begun restraining human resources on emerging areas like e-commerce, euro, IT-enabled services and enterprise resources planning (ERP).

Mehta attributed the growth of software exports to the expertise of Indian software and creation of brand equity. The Government decision to continue export incentives to software export industry and IT enabling services has further helped in maintaining the high growth rate of exports.

With the encouraging trend in the first quarter of the current financial year, the total software exports might touch Rs 16,700 crore for the entire fiscal which would be about $ 4 billion in forex.

Mehta reiterated that the Indian software industry has the requisite velocity and momentum to achieve the annual $ 50 billion target by 2008 as projected by the Prime Minister’s National IT Task Force, provided the government support continued in the same pace.

Nasscom also projected that annual software exports could be to the tune of $ 10 billion by the end of ninth Plan in 2002.

Nasscom had put the total software exports during the last fiscal ended March 31, 1999 at Rs 10,940 crore, up from Rs 6530 crore the previous year.

FIs may be allowed to trade in unlisted scrips
Tribune News Service

NEW DELHI, August 19 — Financial institutional investors will shortly be allowed to trade in two unlisted securities on the OTCEI (over the counter exchange of India).

A proposal has been submitted by the OTCEI and will be taken up for consideration by Sebi at its board meeting next month, the Chairman of Sebi, Mr D.R. Mehta said while addressing a meeting organised by the PHDCCI here yesterday, adding that “ Sebi will be favourable to this proposal”.

However, trading in unlisted companies will be confined to qualified institutional traders who would have adequate research facilities.

This move will help unlisted companies overcome the problem of liquidity. Besides, such a move were give an exit option to venture capital funds from these companies, Mehta said.

Moreover the G.P. Gupta panel report on market makers aimed at improving liquidity of least traded shares, will submit its report soon to Sebi.

The Delhi Stock Exchange has already appointed 17 market makers and listed 37 companies for trading by those persons.

Sebi was also considering the issue of insider trading. “Information will be equally available to all shareholders”, he said.

The Sebi chief said a number of steps were being taken to get the venture capital business started in India. He wondered why the company’s permission should be necessary while transferring its shares from seller to a buyer after secondary market operations.

The President of PHDCCI, Mr Ashok Khanna, suggested the possibility of having an unlisted securities market as in the USA. If Allowing trading in unlisted securities in a limited way is successful , SEBI can expand the concept to have a separate market for such securities with adequate safeguards.

ICICI plans public issue at 73 a share

MUMBAI, Aug 19 (PTI) — The Board of Directors of ICICI Ltd today approved a Rs 500 crore preferential allotment of equity capital to its principal domestic institutional shareholders and a Rs 275 crore public issue at a price of Rs 73 per share followed by an international offering to raise another Rs 1,390 crore.

As per the final structure for equity issuance by the board, the LIC, the GIC and its four subsidiaries and UTI can avail of the preferential allotment.

The insurance companies as on March 31, 1999, together held 23.3 per cent of ICICI’s equity and UTI 5.8 per cent and the preferential allotment will help them maintain their shareholding in the financial institution after fresh issuances at the present levels.

ICICI said the international offering will be initiated subsequent to the completion of the domestic offering and the pricing for it will be determined on the basis of the book building process.

Global Depository Receipt holders account for 20 per cent of ICICI’s equity, while Foreign Institutional Investors and NRIs hold 14.8 per cent.

ICICI shareholders had approved the proposal for raising equity capital aggregating Rs 2,165 crore or $ 500 million equivalent at the annual general meeting on July 30.

Poll funding by cheque or cash?

NEW DELHI, Aug 19 (PTI) — Political parties may face the industry’s ire against frequent elections and the same may be reflected in a drastic cut of up to almost 50 per cent of its contribution to poll funds for the upcoming Lok Sabha polls.

Fearing that most of the payments may be in cash and that too from black money, major industry chambers are campaigning in one voice for making poll funds through “cheques only” which can be accounted in companies’ balance sheets.

While the CII and Assocham have conservatively projected the industry’s contribution at Rs 200 crore, which will be 50 to 60 per cent of what was doled out in the last general election, FICCI has liberally projected donations at Rs 400 crore.

“The industry’s contribution will be half of that doled out in the 1998 elections,” CII President Rahul Bajaj said adding that frequent elections and economic slowdown have led to the industry’s reluctance in contributions to the political parties.

Assocham President K.P. Singh proposed a separate consolidated fund to meet poll expenses so that the private sector funding could be minimal.

Gurgaon lacks basic telecom infrastructure
Tribune News Service

GURGAON, August 19 — A preferred hotspot for corporate head offices of major multinationals, including telecom giants like Alcatel,Modi Telstra and Hughes Telecom, the industrial township of Gurgaon does not even have basic telecom infrastructure.

This view emerged at a seminar on “Gurgaon telecom -next millennium” in which industry representatives had a threadbare discussion of their problems with senior officials of DoT.

Mr Dhanendra Kumar, Additional Secretary, Ministry of Communications, Member Services, Telecom, Mr P.S. Saran, and Member Finance, Mr A. Prasad, heard problems of the industry at a seminar organised by the Gurgaon Chamber of Commerce and Industry.

Speakers had few positive words for the state of communication facilities in the city and problems included lack of sufficient telephone lines, poor Internet connectivity and cable faults and thefts.

The government representatives promised telecom infrastructure with phone lines being available on demand, separate Internet code, separate STD code, digital loop carriers and more operational flexibility.

Panipat coop bank top brass trade charges
From Our Correspondent

PANIPAT, Aug 19 — The Vice-Chairman of Panipat Central Cooperative Bank, Harbhagwan Chaudhary, and the General Manager of the bank,R.P. Singla, have lodged complaints with the Haryana Chief Minister, the Cooperation Minister and the Secretary Cooperative Societies against the alleged misuse of official powers, misutilisation of bank funds and other acts of gross omission and commission by the bank Managing Director, Baljit Singh.

In his complaint, copies of which was given to mediapersons here last evening, Harbhagwan Chaudhary had cited examples of illegal benefits to corrupt officials and one Director of the bank board, illegal sanction of loans beyond limitation, large-scale transfers of bank officials and misuse of vehicle.

On the other hand, talking to mediapersons in the presence of the Chairman of the bank, Vinay Kumar Nalwa and four Directors of the bank Board, the Managing Director denied all allegations levelled against him and termed these as baseless, false and levelled with mala fide intentions.

The M.D. claimed that during his tenure of two years the bank profit had increased from Rs 157.68 lakh to Rs 206.73 lakh and the loan recovery increased upto 72.46 per cent.

He levelled counter charge against the Vice-Chairman.

Forex
US $ Rs 43.48/49
Stg £ Rs 69.66/69
Euro Rs 45.73/75
Jap yen (100) Rs 39.05/07

Gold hedging
NEW DELHI, Aug 19 (PTI) — The Government today paved the way for activating the Gold Deposit Scheme by allowing the RBI and other RBI-authorised scheduled banks to enter into forward contracts for sale and purchase of gold within the country. A notification allowing the banks to deal in future trading of gold was issued by the Department of Consumer Affairs today.

IFFCO
JAMMU, Aug 19 (TNS) — With the commissioning of its fourth fertiliser expansion project recently IFFCO has raised production capacity from 26 lakh tonnes to 52 lakh tonnes. Stating this the Managing Director IFFCO, Mr U.S. Awasthi, told newsmen that the additional fertiliser production was expected to enhance India’s foodgrain production by about 26 millions tonnes.

QC contests
CHANDIGARH, Aug 19 (TNS) — The CII will hold preliminary contests of the 12th QC circle competition on August 21 here. Thirteen teams from Indian Sugar and General Engineering Corporation Ltd, Yamunanagar, Hero Honda Motors Ltd, Daruhera, Maruti Udyog Ltd, Gurgaon, Trident group, Barnala, Purolator India Ltd, Parwanoo, JCT Ltd, Phagwara, and Escorts Mahle Ltd, Bahadurgarh will participate.