Cogentrix drops top power project
Litigation, red-tapism kill MNC’s Rs 4,000 crore venture
BANGALORE, Dec 9 — Bogged down by environmental concerns, litigation and red-tapism, multinational Cogentrix today abandoned its $ 1.3 billion Mangalore power project envisaged to add 1000 MW power to Karnataka.

‘MNCs, save airports’
NEW DELHI, Dec 9 — The government will soon give some airports on “long term deals” to multinational companies to make them user- friendly with multi-model linkages to enhance international trade and tourism, minister of state for civil aviation Chaman Lal Gupta said here today.

You’ve got me wrong: Clinton
WASHINGTON, Dec 9 — US President Bill Clinton has said that India and Pakistan misunderstood his efforts in Seattle on trade environment and that the round failed because of irreconcilable differences between the parties.

Networking, software centres soon
NEW DELHI, Dec 9 — The Information Technology Ministry will soon set up networking and software competency centres throughout the country for spreading IT culture in the country.

Reliance cleared
NEW DELHI, Dec 9 — The Supreme Court has dismissed an appeal by the Customs Department seeking an additional duty of Rs 120 crore from Reliance Industries for allegedly importing plants and machinery without licence for its Patalganga plant in Maharashtra.

New Gestetner products
CHANDIGARH, Dec 9 — Gestetner, which is celebrating its platinum jubilee, here today showcased products, including the Aficio range and CopyPrinter models, which are digital computer connectable.

UTI Bank opens branch in city
CHANDIGARH, Dec 9 — UTI Bank is entering North India in a big way — opening its 39th branch in Sector 34 here today and 40th branch in Ludhiana tomorrow.

Cogentrix drops top power project
Litigation, red-tapism kill MNC’s Rs 4,000 crore venture

BANGALORE, Dec 9 (UNI) — Bogged down by environmental concerns, litigation and red-tapism, multinational Cogentrix today abandoned its $ 1.3 billion Mangalore power project (MPC) envisaged to add 1000 MW power to Karnataka. Awaiting the Supreme Court orders on a public interest litigation (PIL) on a graft charge, the MPC mooted by Cogentrix Energy Inc, and its joint venture partner, Hong Kong based China Light and Power International today ceased the development of the project.

In a brief press statement, MPC Managing Director Ron Somers said the project had been “thwarted by delays in obtaining required governmental approvals and resolving public interest litigation”. “As a consequence of these delays, the continued development of the Mangalore project is no longer feasible”.

The statement said the company was invited by the Government of India in 1992 and designated as a “fast track” project.

Mr Somers said: “We sincerely regret that we are unable to justify further expenditure or resources and time to achieve construction” of the project.

The project, all set to take off, was awaiting the verdict of the Supreme Court which had reserved it ruling on a public interest litigation alleging that the company had paid kickbacks for clearance of the project.

The Central Government had categorically stated that it would consider giving the counter guarantee only after the Supreme Court verdict. The counter guarantee was critical for the project to achieve financial closure.

It was envisaged initially that the first 500 MW unit of the project would take off from late 1996 and start generating power by the end of 1999. It was to use imported coal from Australia and South Africa.

The project, slated to come up at Paudubidri, 35 km from Mangalore, had been jinxed right from the beginning. Before Cogentrix, it was selected by the Karnataka Power Corporation in the mid-1980s. Due to paucity of funds KPC handed it over to the NTPC in 1987. The project, which was dependent at that time on funding by the erstwhile Soviet Union, was left for private development by the NTPC in 1990.

During his visit to the USA in 1992, the then Chief Minister S. Bangarappa signed an MoU with Cogentrix after the formulation of the private power policy by the Centre to attract foreign investment in the sector.

Cogentrix was one of the eight power projects selected then by the Centre for offering counter guarantee. The other projects included the Enron at Dhabol in Maharashtra, the AES IB Valley Project, Orissa; the Bhadravati project, Maharashtra; the GVK, Spectrum and the Hindujas’ project at Vishakapatnam and the zero unit project of the Neyveli Lignite Corporation in Tamil Nadu.

‘MNCs, save airports’

NEW DELHI, Dec 9 (PTI) — The government will soon give some airports on “long term deals” to multinational companies to make them user- friendly with multi-model linkages to enhance international trade and tourism, minister of state for civil aviation Chaman Lal Gupta said here today.“This was necessary to make the airports at par with world class,” Gupta said addressing a conference on the aeronautics industry organised as part of ‘France-India 2000’ exhibition.

Maintaining that there was “great scope” for expansion of the aviation industry in the country, he said liberalisation policy has helped in creating favourable atmosphere for it.

“We have already started opening up airports for private parties like the one in Kochi and joint venture is on cards for the BANGALORE airport.”

The Government’s stand to keep an “open sky policy” for cargo operations, he said, has paid dividends as there has been a substantial increase in cargo by air.

The minister said sustained indo-French cooperation in the aviation industry would help improve airflight in the next century, adding that the government would soon come out with a policy statement on aviation.

Among civil aviation experts from France, who stressed on joint ventures especially in aircraft production and traffic management was Alain Brodin of Avions de transport regional (ATR) who said “there will be tremendous growth of the aviation industry if India could tap just 1 per cent of its daily 11 million railway passengers to the airflight.”

You’ve got me wrong: Clinton

WASHINGTON, Dec 9 (PTI) — US President Bill Clinton has said that India and Pakistan misunderstood his efforts in Seattle on trade environment and that the round failed because of irreconcilable differences between the parties. Stating that in an interdependent world it was not realistic to think of an international economic policy without a consensus on labour, Clinton told a press conference it did not mean that countries opposing this would be “cut off.”

“...That does not mean that I would cut off our markets to India and Pakistan, for example, if they don’t raise their wages to American levels. I know that is what the sort of stated fear was. I never said that, I don’t believe that,” he said.

Clinton said the negotiations at Seattle broke down because the parties refused to budge from their stated positions due to irreconcilable differences which included a US refusal to change its anti-dumping laws.

Networking, software centres soon
Tribune News Service

NEW DELHI, Dec 9 — The Information Technology (IT) Ministry will soon set up networking and software competency centres throughout the country for spreading IT culture in the country.

The Ministry has planned to set up National Resource Centres in low cost multimedia content creation, C-DAC, Java Competency Centre and the proposal is in the final stages, Secretary in the Ministry of Information and Technology, Mr P.V. Jayakrishan said while inaugurating the two-day general assembly of South East Asia Information Technology Organisation (SITO) here today.

An appropriate training of manpower is necessary to meet the national and international challenges arising out of the new emerging sectors of computer software and information enabled services, he said.

Mr Jayakrishan said that the new ministry has already cut out its role to achieve the target of $ 50 billion in the IT sector by the year 2008.

The Government will also set up an on-line learning (internet based ) infrastructure for distance education for working software professionals, development of interactive multimedia services over a hybrid internet and broadcast digital TV network and developing web based digitised collection for distant and counting education on Information Technology, Mr Jayakrishan said.

He hoped that the IT experts from South East Asian countries attending the SITO General Assembly will join hands and develop strategies to further cooperate and boost export of software from these countries as well as opening up the immense potential of the domestic IT markets.

More than 300 IT experts from Japan, Malaysia, Hong Kong, Taiwan, Philippines, China and India are attending the two-day general assembly of SITO.

SITO is an apex body of the IT Industry Associations representing 8000 companies from the South East Asian countries set up in 1998 to promote development of IT industry in the region.The general assembly meet of SITO being held for the first time in India and is being organised by Electronics and Computer Software Export Promotion Council (ESC) with support from Ministry of Information Technology, Department of Telecommunications and Ministry of Commerce.

Reliance cleared

NEW DELHI, Dec 9 (PTI) — The Supreme Court has dismissed an appeal by the Customs Department seeking an additional duty of Rs 120 crore from Reliance Industries for allegedly importing plants and machinery without licence for its Patalganga plant in Maharashtra.

The appeal was directed against a Central Excise and Gold Control Appellate Tribunal order absolving Reliance of the charges levelled by Customs Department accusing it of mis-declaration and unauthorised import of four additional spinning machines.

New Gestetner products
Tribune News Service

CHANDIGARH, Dec 9 — Gestetner, which is celebrating its platinum jubilee, here today showcased products, including the Aficio range and CopyPrinter models, which are digital computer connectable. Mr T.K. Nandy, General Manager for GIL’s Aficio products, said: “We believe that with PC penetration in India increasing at a rate of 30 per cent computer connected office automation products will become a necessity rather than an option.”

UTI Bank opens branch in city
Tribune News Service

CHANDIGARH, Dec 9 — UTI Bank is entering North India in a big way — opening its 39th branch in Sector 34 here today and 40th branch in Ludhiana tomorrow. Shimla, Panchkula, Mohali, Khanna and Phagwara are the other towns where the bank proposes to open its branches.

North India’s high potential and UTI business considerations have propelled the bank to go on an expansion spree, said Mr Supriya Gupta, Chairman and Managing Director of the bank, after inaugurating the branch here.

Mr Gupta bets on the bank’s efficient services and wide product range to take on the highly competitive and crowded sector.

To illustrate customers’ faith in the bank, Mr Gupta said many of its customers had subscribed to the bank’s public issue last year. The bank will focus on demat services — it has the largest number of demat subscribers in the country — and the personal loan segment.

Promoted by UTI, LIC and GIC , the bank has posted a 94 per cent increase in its profits in the year just ended on a deposit base of Rs 3,040 crore and has a capital adequacy ratio of 11.64 per cent.

All offices of the bank are fully computerised, networked through VSAT and offer ATM services.

It’s over-heated, book profits

AS predicted a fortnight ago, Hindustan Lever is too good a company for its share price to remain subdued for too long. And once its share price rebounded, so did the market indices, given its heavyweight status.

At the moment, the FIIs have stopped selling and turned buyers while the Domestic Financial Institutions (DFIs) have remained neutral.

The market, to a great extent is thus being driven up by big operators who have commenced warehousing operations in anticipation of highly profitable exit option when fresh FII buying commences some time into the new year in January.

However, yet another round of profit-booking by the FIIs cannot be ruled out, especially given the fact that the market again appears overheated. The enhanced trading volumes suggest that good punting opportunities exist and those with a bullish temperament could consider taking up positions at the counters of E.Merck at Rs 601 ( square up at Rs 621), Essel Packaging at Rs 652 (square up at Rs 677) and ICICI Bank at Rs 46 (square up at Rs 58).

Short positions at this stage could be considered at the counters of Siemens at Rs 464 (cover up at Rs 449) and ACC at Rs 231 (cover up at Rs 219). The dark horse bet of the week is Vanavil Dyes, whose share price has bounced back above the Rs 60 level after dipping following disappointing quarterly results.

It might not be a bad idea to book partial profits while the going is good in the secondary market and divert funds to the primary market which is where the action will be in the next fortnight or so. Furthermore, remember the market does appear overheated and it might be more prudent to start booking some profits.

Forex
US $ Rs 43.45/46
Stg £ Rs 70.54/56
Euro Rs 44.46/48
Jap yen (100) Rs 42.09/11

Modi Telstra
CHANDIGARH, Dec 9 (TNS) — Modi Telstra has signed up the “Prince of Calcutta,” Saurav Ganguly, as its Brand Ambassador for Cashcards (the pre-paid product of Modi Telstra).

ISO-9002
LUDHIANA, Dec 9 (FOC) — Three branches of the Punjab National Bank at Ludhiana-International Banking Branch Civil Lines Branch the Specialised SSI Branch have been accredited with quality certification of ISO-9002.

HFML
CHANDIGARH, Dec 9 (TNS) — Hindustan Financial Management Ltd, a 15-year-old NBFC, has ventured into information technology. It was badly affected by the CRB fiasco. The Board of Directors has appointed Mr Satinder Chahal its Managing Director.

K.N. Memani
NEW DELHI, Dec 9 (TNS) — The International Monetary Fund (IMF) has renominated Mr K.N. Memani as a member of the Fund’s External Audit Committee (EAC).