Europe makes historic leap with euro
From G. Sudhakar Nair

BONN, Jan 1 — Europe made a historic leap into a single currency bloc with the euro coming into effect on New Year Day today, sweeping away monetary borders in the 11 participating countries and challenging the supremacy of U.S. dollar as an international reserve currency.

Decks for the formal launch of the European Monetary Union (EMU), described as the most ambitious monetary experiment since the launch of the Brettonwoods system at the end of World War-II, were cleared after the euro-11 Finance Ministers took the first legal decision on conversion rates between national currencies and the euro.

The ministers ratified the irrevocable conversion rate finalised by the European Commission, the executive body of the EU, at their meeting in Brussels yesterday to set in motion the third and most crucial phase of the EMU.

The euro, which has been perceived to turn Europe into an economic machine rivalling the USA, will be officially traded in Europe only on January 4 because financial markets are closed on the first day of the euro’s existence as legal tender today.

National currencies like Deutsche Mark, Italian Lira and the French Franc will continue to be in use till the middle of 2002 by when euro becomes the sole legal tender completing the EMU transition.

The euro will be immediately available, however, for non-cash transactions - such as check and credit card payments also, beginning Monday, European stock and bond trades will be denominated entirely in euros, as well as all government borrowing and other financial transactions.

Existing national central banks, such as the powerful German Bundesbank, will continue to exist, in effect as branches of the European central bank, which will now onwards manage the future of euro. The national banks will transfer 50 billion euro ($ 58.38 billion) in reserves to the central bank.

Europe’s largest companies have already announced that they will start using the currency immediately, simplifying their accounting procedures and eliminating transaction costs within the single currency zone.

For the first time, Europeans will have the means of directly comparing prices and costs across the continent, which could lead to increased cross-border trade in goods and, above all, in financial services.

In return for stability and low inflation, the 11 euro land countries have surrendered their monetary policy to the Frankfurt based central bank, which will establish the exchange rate for the euro against the dollar and other external currencies.

More people (290 million) live in the countries joining the EMU than in the USA (265 million) and the total GDP of these countries is almost as large as that of the world’s main economic power. — PTI

Exports slump in dollar terms
From T.V. Lakshminarayan
Tribune News Service

NEW DELHI, Jan 1 — India’s export performance remains dismal with the latest official figures indicating that exports during April-November 1998, were 3.97 per cent lower in dollar terms as compared to the same period in the previous year.

According to the figures, exports during April-November 1998, were estimated at $ 21476.10 million which were lower than the level of $ 22363.38 million in the same period in the previous year. In rupee terms, however, the exports grew by 11.28 per cent during this period.

On a month-to-month basis, India’s exports have been registering a marginal growth which is nowhere near the 20 per cent growth target set by the Government.

During November, 1998, exports were valued at $ 2551.19 million which was 3.81 per cent higher than the level of $ 2457.57 million in November, 1997. In rupee terms, the exports were Rs 10812.19 crore, which were 18.15 per cent higher than the value of exports during the same period in the previous year.

Imports, however, continued to grow during the period under review and it was estimated at $ 28177.30 million — 9.5 per cent higher than the level of $ 25732.77 million during the same period last year.

Oil imports during April-November 1998, were valued at 4030.16 million dollars which were 25.12 per cent lower than the oil imports valued at $ 5382.35 million in the corresponding period last year. Non-oil imports during the period were estimated at $ 24147.14 million which was 18.66 per cent higher than the level of such imports valued at $ 20350.42 million in the corresponding period of 1997.

Imports during November 1998 were valued at $ 3476.60 million representing a growth of 15.1 per cent over the level of $ 3020.50 million in November, 1997.

The trade deficit for April-November, 1998 was estimated at $ 6701.20 million which was higher than the deficit of $ 3369.39 million during the corresponding period of the previous year.

According to an analysis done by Assocham, India’s export growth, which plummeted during the year, was mainly due to worldwide recession and domestic constraints.

The chamber said the growth rate could touch the double-digit mark next fiscal provided the Government extends funds at internationally competitive rates and maps out product and country specific strategies.

According to Mr Ramu S. Deora, President of the Federation of Indian Export Organisations (FIEO), India would be able to achieve a higher growth rate in exports in the new year only if the archaic rules and regulations, particularly excise and customs, are altogether abolished and a corruption-free system is installed.

He also felt that the Government should lower petroleum prices by at least 25 per cent in keeping with the international situation to give relief to Indian industry.

Assocham has stated that the dismal showing in 1998 can be put behind and the New Year could herald a turnaround in exports, driven mainly by products like coffee, tea, metalworking, processed foods, drugs and pharmaceuticals and gems and jewellery.

The export strategy, according to the analysis, needs to focus on the European market, North America and the Latin American belt, the African region and the Arab world.

The key emerging markets have been identified as Kenya, Argentina, Brazil and South Africa.

Pinpointing reasons for slowdown in export performance, the chamber has said that this has been due to a sharp decline in the growth of world trade. World GDP has declined and is predicted to decline further by 1.1 per cent.

‘Put telecom services under one body’

NEW DELHI (PTI): The government has been asked to bring various telecommunication services such as broadcasting, direct to home (DTH), e-commerce and telecom services under one apex body.

The proposed national telecom policy should also include implementation guidelines for various telecom services, Virendar Mohan Trehan, Vice-President of the National Telematics Forum told a press conference here today.

Giving some inputs to the telecom policy, Trehan said, the basic services should be thrown open to all without any requirement for licensing.

When asked whether there should be a reserve price fixed for licence fees, Trehan said that the fee should be only a token amount of a few lakh rupees.

Among other recommendations, Trehan also advocated the expansion of the Department of Telecom in terms of its switching capacity.

Defence spectrum should not be diverted for commercial use and that there should be an exclusive frequency band allocated for the commercial use.

The government should form a separate corporate body to cater to the rising demand from the rural market.

A recent survey by “Telematics India”, a publication run by the National Telematics Forum, showed that rural areas had great potential for profitable telecom projects.

Tata Infotech

CHANDIGARH, (TNS): A new concept in computer education has been introduced in the country with a tie-up between Tata Infotech Limited (TIL) and US-based CBT Systems.

Headquartered in California, CBT Systems is a leading provider of interactive software, delivered on networked or stand-alone PCs, including intranet and internet delivery solutions. The company has entered into cooperative development alliances with 19 partners which include Cisco Systems, Intel, Informix, Lotus, Marimba, Microsoft, IBM, Javasoft, Netscape, Novell, Oracle, SAP, Sybase. Powersoft etc to develop and market product-specific training. The training offered by CBT is certified by its vendor partners to be following the official curriculum. On successful completion of the course the student can sit for the Sylvan Prometric or other internationally accepted certification examination.

Using technology in education, CBTs 700 computer-based training courses will be available to students through a chain of professional learning centres to be set up shortly by Indian partner Tata Infotech Ltd. Apart from the student community, these professional learning centres will also offer training solutions for corporate houses.

Hind Cables

NEW DELHI (UNI): The government has proposed to the Department of Telecommunications (DoT) to take over Hindustan Cables Limited (HCL) as part of the revival package for the ailing public sector undertaking, Minister of State for Industry Sukhbir Singh Badal has said.

The Department of Heavy Industry has already made the proposal to the DoT in this regard and a final decision on the matter is expected shortly, Mr Badal told UNI here.

“HCL has been dependent on DoT for orders but of late, it has not been performing well. So we have asked DoT to take over the unit for reviving it’’ he added.

The modalities of the transfer of HCL to DoT are being worked out. The government is looking at all the possibilities.

Thin trading on first day of the year

MUMBAI, Jan 1 (PTI) — Trading on the first day of the calendar year 1999 was pathetic and lacklustre on the Bombay Stock Exchange (BSE) today.

While some select pivotals evoked fresh support from investors, a number of other shares declined on profit-taking mainly for squaring up positions on the last day of the current settlement.

Prices on the premier bourse in the country, moved both ways on alternate bouts of buying and selling on account of lukewarm support extended by the local funds and operators in select shares and in the absence of foreign funds for the New Year holiday.

The market ended barely steady in thin trading with small change in the index on the plus side.

Software shares continued to steal the show with handsome advances particularly in Pentafour Software and Satyam Computers on speculative buying.

Pharmaceuticals also fared better on interested buying. Dabur India, German Remedies, Nich Lab and Proctor Gamble all recorded substantial gains at the close.

Reliance fared better on heavy buying support from foreign institutional investors (FIIs).

Infosys Tech, Hind Lever, Burroughs Welcome, Mds Cement and Titan Ind suffered setbacks on squaring up positions.

Reflecting the activity, the BSE sensitive index opened at 3064.95, moved in the range of 3078.19 and 3042.25 and closed at 3060.34, showing a minor rise of 4.93 points from the previous close of 3055.41. The BSE-100 closed at 1362.23, with a gain of 2.20 points from the previous close of 1359.03. The BSE-200 ended lower at 314.49 and the Dollex at 123.28 from the last close of 313.95 and 123.04 respectively.

The total turnover on the Bolt system was Rs 1174.11 crore. ITC was in the lead with a turnover of Rs 172.98 crore. Satyam Computers followed with Rs 150.51 crore, Pentafour Software Rs 146.31 crore, Zee Tele Rs 68.71 crore and Reliance Rs 63.03 crore.

ITC gained by 4.00 to 754, Satyam Comp by 11.75 to 739.25, Pentafour Soft by 34.50 to 741, Zee Tele by 0.75 to 640.75 and Reliance by 1.70 to 121.50.

Card for rail telebooking

NEW DELHI, Jan 1 (UNI) — Indian Railways had joined hands with Standard Chartered Bank to launch a co-branded credit card for providing railway customers the convenience of telebooking.

The rail credit card offers the convenience and facility of booking rail tickets on the phone. Tickets so booked will be handed over through a special counter to the rail credit cardholders in person.

Further, while telebooking their tickets, the cardholders will be offered the flexibility of choosing alternate train routes. Should tickets be unavailable, in the route of their first choice, the card will be the exclusive payment medium for the rail tickets booked through telebooking a statement issued here today said.

The card will initially be launched in Delhi and will be extended to the other parts of the country in phases. Indian Railways will develop a dedicated telebooking call centre at the Indian Railways premises for offering the services for telebooking with the assistance of Standard Chartered Bank.

The cardholders will have to pay Rs 800 as fee in the first year and for subsequent renewal Rs 700 has to be paid as the fee and there will be a charge for the service of telebooking.

Germany takes over EU presidency
from Austria

BONN, Jan. 1 (PTI) — Germany today took over the six-month rotating presidency of the European Union (EU) from Austria with a goal of reducing unemployment through a continental initiative and finalising crucial reforms of the 15-nation group’s Budget.

Germany, which also assumed the chairmanship of the Group of Seven industrialised countries (G-7) for 1999 from today, will push proposals for greater tax harmonisation in the EU despite resistance from other countries, notably the UK.

A heavy responsibility is over 54-year old Chancellor Gerhard Schroeder, who will be at the helm of international affairs within 10 weeks of assuming office, in moulding the political and economic agenda of the EU for the start of the new millennium.

Plan to levy cess on diesel

BANGALORE, Jan 1 (PTI) — The Transport Ministry has proposed to the Finance Ministry the levy of cess on diesel and duty on automobile manufacturers to mop up funds for road development.

The funds raised through this route can be kept in a dedicated fund for exclusive use to develop roads, Union Surface Transport Minister M. Thambi Durai told reporters here today.

He is here in connection with a function being organised tomorrow, in which Prime Minister A.B. Vajpayee will lay the foundation stone for an integrated highway project.

Thambi Durai said duty could be levied ex-factory on automobile manufacturers, who, he stressed, should also come forward to contribute.

Honoured
Tribune News Service
NEW DELHI, Jan 1 — Mr Amrik Singh, Managing Director, Milkfed, Punjab, has been honoured by the Global Economic Council with the “Pandit Jawaharlal Nehru Life Time Achievement Award” at a solemn function organised at the India International Centre here.

Tejinder Khanna
MUMBAI, Jan 1 (UNI) — Former Commerce Secretary Tejinder Khanna has been appointed Chairman of Standard Chartered Bank’s Indian Advisory Board, a release of the bank said.

Ray-Ban
Tribune News Service
CHANDIGARH, Jan 1 — Bausch & Lomb today launched Ray-Ban brand of “made to order” powered sunglasses in the city. Mr J.S. Bajwa, Managing Director, said, “there has been a long standing demand from consumers who need vision-correction that they want to see the world ‘through a Ray-Ban”.

Company Secretaries
Tribune News Service
CHANDIGARH, Jan 1 — The Managing Committee of the Chandigarh Chaper of the Institute of Company Secretaries of India has elected the following office-bearers for 1999. Chairman — Mr Anil K. Aggarwal; vice-chairman — Mr Punit Abrol; secretary — Mr Parveen Gupta. Mr J.S. Ahluwalia, Mr Vikas Gupta and Mr Gaganjit Kashyap are the other members of the Managing Committee.