Saturday, December 18, 1999
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B U S I N E S S | Saturday, December 18, 1999 |
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Chautala against removal of
subsidies NEW DELHI, Dec 17 — Haryana Chief Minister, Om Prakash Chautala today said that the State Government was not in favour of ‘hasty’ removal of subsidies to ‘deserving and hard working farmers’. The farmers have no say in fixing the price of their produce and they do not even get the minimum support price fixed by the Government, Mr Chautala said. |
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G-20 identifies 4 priority areas IFCI
rights issue from Dec 23
Hudco okays 625 cr loan for Orissa BSE
may become corporate body Uco chief criticises Task Force
report |
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Chautala against removal of
subsidies NEW DELHI, Dec 17 — Haryana Chief Minister, Om Prakash Chautala today said that the State Government was not in favour of ‘hasty’ removal of subsidies to ‘deserving and hard working farmers’. The farmers have no say in fixing the price of their produce and they do not even get the minimum support price fixed by the Government, Mr Chautala said while addressing industrialists at the Infranet ’99 — the international conference on infrastructure development organised by CII here. Central procurement agencies such as Food Corporation of India (FCI) did not come to Haryana due to which farmers could not get proper value for their produce as market prices were very low at the time of procurement,he said. “The centre was concerned about the sugarcane prices going up but it was not bothered about the difficulties of the farmers arising out of diesel price hike and low prices of foodgrains”, he said. Inviting industrialists to invest in power sector in the state, Mr Chautala said they would get enough returns as they would not be asked to sell power at uneconomical rates. Chautala said the State was planning to enhance power generation for providing uninterrupted supply to industries and farmers for irrigation purposes. Elaborating the measures taken by the State Government for rapid industrialisation, Mr Chautala said that Haryana had no option but to undertake rapid industrialisation. A pro-active industrial policy of the State was drawn up in record time and steps were being taken to ensure a steady supply of power to industry. Mr Chautala said that the new industrial policy lays emphasis on simplification of procedures and modernisation of administrative procedures apart from developing basic infrastructure and growth of small and medium enterprises. Development of basic
infrastructure was essential for the overall development
of the State and private participation was essential
given the paucity of the resources for investment with
the State Government. |
G-20 identifies 4 priority areas BERLIN, Dec 17 (PTI) — The Group of 20 has called for greater involvement of the private sector in forestalling and resolving financial crises and strengthening national balance sheets to help cushion unexpected shocks. The Group’s Finance Ministers and Central Bank Governors ended their inaugural meet here last night after identifying four priority areas for immediate attention and aimed at reducing vulnerabilities to international financial crisis. Finance Minister Yashwant Sinha headed the Indian delegation. The G-20 also called for consistent exchange rates and a monetary policy since it was felt that unsustainable exchange rate regimes were a critical source of vulnerability to financial crisis. Briefing newsmen at the end of the two-day meeting, Canadian Finance Minister Paul Martin said the four priority areas would help all countries focus on implementing solutions rather than simply fighting off the crises. A comprehensive stock-taking of progress made by all member nations in reducing vulnerabilities to the crises and an examination of differing exchange-rate regimes and their role in cushioning the impact of international financial crises were among the identified priority areas. They encouraged steps to strengthen the sovereign debt management, and greater attention to the impact of various government policies on the borrowing decisions on private firms. The Berlin meeting also discussed a range of possible domestic policy responses to the challenges of globalisation, and exchanged views on the role of the international community in helping to reduce vulnerability to the crises. The G-20 was set up in September this year with the aim of ensuring broader participation in discussions on international financial affairs among countries whose size or strategic importance gives them a particularly crucial role in the global economy. The G-20 comprises the
group of seven industrialised countries and Argentina,
Australia, Brazil, China, India, Indonesia, Mexico,
Russia, Saudi Arabia, South Africa, South Korea, Turkey
and the nations occupying the current rotating presidency
of the EU, Finland. |
Has e-commerce taken off in India? NEW DELHI, Dec 17 (PTI) — Notwithstanding poor computer penetration, the Rs 300 crore e-commerce business in India could triple in the next couple of years if only proper infrastructure and cyber laws are put in place, say experts. “India’s current Rs 300 crore online transactions could move upto Rs 1,000 crore by the year 2002, provided a firm regulatory mechanism, improvement in infrastructure and increase in PC penetration takes place in earnest”, says Dewang Mehta, President, National Association of Software and Service Companies (NASSCOM). “Inspite of inadequate proliferation of Internet and online services, e-commerce has taken of in the country and is trying to keep pace with the global business which is moving `at speed of thought’,” says Mehta. But the transactions are mainly restricted to Business-to-Business (B-to-B) segment rather than Business-to-Consumer (B-to-C) segment, which is merely Rs 15 crore as against the developed countries where the retail transactions over the web are way ahead. A state-of-the art e-commerce, access to infrastructure and a firm regulatory mechanism may solve the problem, says Mehta. “An increased penetration of computers and Internet facilities are the major pre-requisite for development of the business, especially in the retail segment,” says P.D. Kaushik Research Consultant, Rajiv Gandhi Foundation. “Out of the 100 crore odd populace in India only five lakh people are online which shows that infrastructure has not developed even to the extent of one per cent of the total market size,” Kaushik says. “The government must take a proactive stance in putting in place the legal framework to prevent computer abuse and fraud, as well as to resolve potential disputes, says D.N.Kaushambi, an IT professional. There is also need for a certification authority, which would act as a trusted third party in a transaction between two persons, and through the use of various technical devices, serve as a sort of “verifier” confirming the identity of each party and the integrity of information sent, he says. Rediff-on-the-net, one of the most well known and visited portal e-commerce web site — a virtual gateway to India — enticing customers by giving them the option of using Indian credit cards for shopping on their web site. Anytime, anywhere banking is another case in point, which has ushered in a new paradigm in banking. Introduced by private banks such as Citibank and financial institutions like ICICI, the service is also being offered by some public sector banks, albeit for NRIs. Nonetheless acquiring online customers is an expensive proposition, say market wizards. For instance, Amazon.Com pays America Online an average of 90 cents for each visitor referred by it. But that does not mean that these visitors will actually buy products from Amazon.Com. And if they do buy once, will they come back? But Mehta points out that in a developing country like ours, where the state of e-commerce is still maturing there are other fundamental problems. The case of
negotiations, for instance, says Mehta, is rarely
possible in online environments, because it lacks
extensive mutual interactions. |
IFCI rights issue from Dec 23 CHANDIGARH, Dec 17— IFCI is raising Rs 352 crore through issue of equity shares in the ratio of 1:1. The rights issue will open on December 23, 1999 and close on January 21, 2000. Post rights issue, capital adequacy ratio will be slightly above the RBI’s 9 per cent stipulation. The proceeds of the issue will be utilised for IFCI’s business operations. This was necessitated as the business operations have increased substantially over the past few years said Mr A.C. Ahuja, Executive Director of the IFCI Limited. Mr Ahuja said that the IFCI has obtained the permission from RBI to mobilise funds by way of fixed deposits which would help the company in providing funds for a range of short-term purposes like working capital, financing and bill discounting. The IFCI will mostly focus on good quality medium and small corporates and the client base will be increased. Mr Ahuja said the IFCI
has decided to enter the insurance sector with a big size
equity base. The IFCI will enter into this sector with
two partners— one internationally reputed in the
insurance sector and the other domestic commercial bank
which has large branch network. The structure of the
venture will take at least one year before the final
policy is framed. He said the IFCI will earn Rs 130 crore
by March 2000. |
Ascom to offer defence network NEW DELHI, Dec 17 — Ascom India Pvt Ltd, a wholly owned subsidiary of Swiss-based Ascom Business Systems, today said it has plans to approach the Government to offer the Defence network a “system of data encryption.” Mr Rajan Mehra, Managing Director, Ascom India, said “though we have not approached the Government, we hope to make it in the near future.” Mr Mehra said “whatever technology the Defence gets should be indigenous.” So, we intent to have technology transfer from our parent company and thus provide the desired solution, he said. The Ascom group caters to 10 other segments besides Defence and security, which includes career access, telecom solutions, PBXs, terminals, telecom power, paging, mailing, pay phones, banking solutions and transport systems. The Ascom group expects a revenue of more than Rs 200 crore by 2000. The company today launched Ascotel, which offers an operator console and terminals enabling the benefits of digital telecommunications to every workstations so that all the employees in an office can have an access to networking, computer telephony integration and messaging. The system terminals facilitate telephone number memory, redial function, freely programmable function keys or team keys. These terminals can also be used for sending written messages. Ascotel is in the range
of three models — office 20, 30 and 40. Each range
meeting different requirement levels. Also on display was
a cordless terminal, which has been developed to the dect
stand (digital enhance cordless telephony), that can be
operated within a range of 600 metres. |
Hudco okays 625 cr loan for Orissa NEW DELHI, Dec 17 (PTI) — Housing and Urban Development Corporation (Hudco) has approved another loan of Rs 625 crore for the victims of Orissa cyclone, a top official of the corporation said today. “Hudco board approved a loan of Rs 625 crore earlier this week for building houses in the 12 districts affected by the cyclone in Orissa,” Hudco Chairman and Managing Director V. Suresh told reporters on the sidelines of infranet-99 organised by CII here. He said this loan is in addition to the Rs 500 crore loan disbursed for the cyclone victims last month. Suresh said the funds
would be used for building 1.75 lakh houses for the
victims and another 1.1 lakh houses for the State
Government. |
BSE may become corporate body MUMBAI, Dec 17 (PTI) — The Bombay Stock Exchange today announced its plans to become a corporate body and separate its ownership from membership. “The exchange, which has been set up as a trust, has to be first converted into a company and the legal issues are yet to be worked out, before we can talk about going public and whether it would be listed on the BSE itself or elsewhere,” BSE President Anand Rathi told newsmen here. A committee of the governing board comprising seven members has been set up for detailing the plan and a final decision would be taken by March, 2000. The board is yet to decide on the legal structure for the exchange given that the company law has no provision for conversion of a trust into a company, BSE Vice-President Dina Mehta said adding “We are examining all alternatives for demutualisation (separation of ownership and trading rights) as per the provisions of law.” The exchange with 650
members has retained earnings of Rs 250 crore. |
Uco chief criticises Task
Force report JALANDHAR, Dec 17 — Reacting to the Task Force report, the chief Managing Director of Uco Bank, Mr Sharda Singh said that “the report has got no relevance and it will not have any impact and the report will not be accepted by the Finance Ministry.” Mr Singh said that as per RBI defaulter’s list as on 31.3.99, the total amount defaulted is over Rs 100 crore by companies with which some members of CII are associated and they being defaulters themselves. He added that the RBI has also expressed unhappiness and is upset with the report. He reiterated that CII report will not be accepted by the Government of India. The Task Force was neither appointed by the Government not RBI, has no official existence. Chief Managing Director
added that banking department is preparing a note, based
on Verma Committee report which will be put up before the
Finance Minister. |
Competition Bill in Feb MUMBAI, Dec 17 (PTI) — The Union Government will introduce a Bill for a Competition Law in the February 2000 Budget session, aimed at promoting healthy and balanced competition as well as curbing monopolistic formations on the country’s economic scene. Disclosing this, Union
Minister for Law, Justice and Company Affairs Ram
Jethmalani today said the Government would not allow any
mergers or acquisitions that would damage free and
healthy competition in a particular segment of the
economy and threaten the interests of the consumer. |
Shipment credit PANIPAT, Dec 17 —
The proposal to provide pre-shipment and post-shipment
credit in foreign currency for the export oriented small
scale industrial (SSI) units of Panipat at a
comparatively lower interest rate of 7.5 per cent from
(SIDBI) under its forcx assistance scheme is likely to be
implemented during a meeting of the experts from the
SIDBI and local exporters to be held on December 21. |
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| Samsonite Tribune News Service NEW DELHI, Dec 17 — Travel luggage major Samsonite has chalked out an ambitious marketing strategy aimed at cornering a market share of 30 per cent in the organised luggage market in India by 2003. Dr Ramesh Tainwala, MD, Samsonite said that the company hopes to end the Calendar year with a market share of 12 per cent. Castrol Demonstration |
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