Pakistan trade deficit widens ISLAMABAD, July 11 — Pakistan’s Finance and Commerce Minister Ishaq Dar has warned the country’s business community of difficult times ahead as persistent economic crises and slow growth sent official projections for external trade for the 1998-99 fiscal haywire.

Loans offered for tourism projects
CHANDIGARH,July 11 — Mr S.S. Kohli, CMD of Punjab and Sind Bank, has said that ex-servicemen can take loans for setting up hotels, motels, wayside amenities, travel agencies, tourist transport service, STD booths and small trading activities.

Politically blessed power thefts and gifts galore
Believe it or not downslide of industrial growth in Punjab is in motion. Power is the villain. Its cost due to “thefts and gifts” and malfunctioning are its arms. Political interference is the motive.

Lakme plea accepted
NEW DELHI, July 11 — The MRTPC has discharged a notice of enquiry against Lakme Ltd accepting its application that it will inform the Commission if it re-enters the cosmetics business.

Inflation falls to 2.03pc
NEW DELHI, July 11 — Maintaining its 17-year low for the second week in succession, the inflation rate receded further by 0.50 per cent to touch 2.03 per cent on June 26, due to a consistent fall in prices of manufactured products and food articles. It was 2.53 per cent the week before.

Punjab sets up Venture Capital Fund
Tribune News Service

CHANDIGARH, July 11 — A Rs 20 crore Venture Capital Fund for the information technology (IT) sector has been floated in Punjab applications for which will be entertained from tomorrow (July 12). The fund, aimed to encourage IT ventures, will be operated by the PSIDC in association with SIDBI.

This was announced during an interaction between Punjab officials led by Industry Minister Sucha Singh Langah and mediapersons in the CII complex here last night.

Industry Secretary R.I. Singh, during a presentation on the state economy, emphasised that Punjab has the lowest power tariff in the country except Himachal Pradesh and Jammu and Kashmir.

Ducking questions on free power supply to farmers, he said power reforms are under way and the power regulatory authority will soon be constituted. The Cabinet has already given the go-ahead.

Mr R.I. Singh said a cell has been created in the State Industries Department to meet the financial requirements of SSIs. Loans will be provided on low interest rates. Besides, a managerial cell has been set up to guide SSIs in accessing technology.

Quoting RBI figures, Mr R.I. Singh claimed that industrial sickness in the State was mere 0.6 per cent of the total units. There are about two lakh small-scale units in the State and only 11,296 of them are sick.

Mr Langah said the industrial output in Punjab has increased from Rs 26,370 crore in 1995-96 to Rs 50,540 crore in 1998-99 (P). Industrial growth at 10 per cent per annum is higher than the national average of 4-6 per cent.

The value of exports from the State has grown from Rs 2,565 crore in 1995-96 to Rs 4,700 crore in 1998-99; registering an annual growth of 22 per cent.

The State has attracted investments of almost Rs 30,000 crore during this period. Of this, large projects worth over Rs 2,200 crore have already gone into production, and the other projects are at an advanced stage of implementation.

The State has also set up two research institutions — the Institute for Auto Parts Technology at Ludhiana and the Institute for Machine Tools at Batala.

The State is planning to set up an Industry Renewal Fund (IRF). SIDBI has welcomed this initiative and expressed interest to participate in this venture.

Pakistan trade deficit widens

ISLAMABAD, July 11 (PTI) — Pakistan’s Finance and Commerce Minister Ishaq Dar has warned the country’s business community of difficult times ahead as persistent economic crises and slow growth sent official projections for external trade for the 1998-99 fiscal haywire.

Both export and import registered a negative growth and total trade deficit further went up to $ 1.56 billion last year, Dar, told a recent Advisory Council meeting.

Official figures for external trade for the fiscal ended June, 1999, gave a grim picture with all projections way off the mark and the country’s total trade deficit climbing to $ 1.56 billion as against the official projections of zero deficit.

At the meeting he said “the government has provided maximum facilities and incentives to the exporters and it is now up to them to respond and work on a war-footing to bolster exports” to tide over a persistent balance of payments crises.

Official sources said the government has now dropped the idea of setting an ambitious target of zero deficit and will instead try to bring down the deficit to $ 800 million by projecting exports worth of $ 9 billion and imports of $ 9.8 billion.

While declaring the trade policy last year Dar had projected that both export and import will be around $ 10 billion during the 1998-99 financial year and deficit will be zero.

But the deficit went up by more than 5 per cent from the 1997-98 figures of $ 1.49 billion and exports fell 10 per cent as against the projected 15 per cent.

Loans offered for tourism projects
Tribune News Service

CHANDIGARH,July 11 — Mr S.S. Kohli, CMD of Punjab and Sind Bank, has said that ex-servicemen can take loans for setting up hotels, motels, wayside amenities, travel agencies, tourist transport service, STD booths and small trading activities.

A zimindara credit card holder is sanctioned additional amount of 25 per cent of the limit calculated for contingencies for undertaking agricultural operations.

Mr Kohli was speaking at a seminar here yesterday on tourism and hospitality industry in northern India with special emphasis on resettlement of ex-servicemen.

Major-General Ugrasen Yadava, Director-General, Resettlement, highlighted problems in the rehabilitation of the ex-servicemen, the disabled and war widows. He said 60,000 defence personnel retire every year. Majority of these personnel retire before the age of 45 years. In the services sector tourism and hospitality with its vast array of activities could provide self-employment opportunities to the defence persons.

Mr S.K. Chopra, President, Travel Trade Association of Punjab, said that 10,000 persons go out of Punjab every month and similar number come to the State. Air tickets worth Rs 20 crore are sold by travel agents every month in Punjab. Mr Chopra offered job opportunities to ex-servicemen in travel trade in Punjab. He said the vast potential of non-resident Indians should be tapped for promotion of tourism.

Mrs Vini Mahajan, Managing Director, Punjab Tourism Corporation, said that Punjab with its religious and pilgrimage places, rich cultural heritage, wetland, scenic landscape offers great potential for tourism development which has been marginally exploited. She invited the private sector for investment in the tourism ventures. Mrs Mahajan invited ex-serviceman for joint ventures in putting up tourism-related ventures.

General Rajinder Nath (retd) said that State Governments should create self-employment opportunities for the defence personnel in setting up small scale ventures and provide finance. Mr Sanjay Kothari, Secretary, Tourism Haryana, made an audio-visual presentation of Haryana and spoke about the plans for developing tourism in the State. He said that ex-servicemen could collaborate with the State Tourism Department for joint ventures. Brig Ranjit Banerji also made a presentation on Himachal Pradesh comparing it with Switzerland. Dr Gulshan Sharma, Adviser Tourism DGR, Ministry of Defence, conducted the seminar.

A two-minute silence was observed in memory of brave soldiers, who laid down their lives in Kargil operations.

Politically blessed power thefts
and gifts galore
By P.D Sharma

Believe it or not downslide of industrial growth in Punjab is in motion. Power is the villain. Its cost due to “thefts and gifts” and malfunctioning are its arms. Political interference is the motive.

Professional groups on power theft from Delhi, U.P. and other parts have allegedly entered Punjab with business savvy intent. They had no difficulty in identifying customers here who are also professionals in stealing power.

Nothing could be more alluring for power theft than steel furnaces. It is a common talk in this trade that power theft in more than 20 odd furnaces in Punjab is exceeding Rs. 3.00 crore a month to cite the bare bottom. The centres are Ludhiana, Mandi Gobindgarh, Dera Bassi and Jalandhar. Organised process is said to have started from January this year. So theft of more than Rs. 20 crore has already taken place according to sources in industry who want to keep anonymity. Relatively minor thefts in some steel furnaces have been going on for long which has encouraged them and others to this level.

Monthly power bills of some steel furnaces involved in this scandal have gone down as low as less than 50 per cent. These are the furnaces which never believe in closing down even for a few hours on the face of even running loss. Instances are galore when the entire steel furnace industry had to temporarily close down for a few days and units now under shadow of power theft never cared for their fraternity and ran their furnaces with vengeance. Nothing could be more unfortunate when fast-unto-death started against the 66 kv scheme that these very units did not close at that very sensitive time. Now their argument for closing for half the time continuously for more than six months need only to be pushed back into their months.

To manage the affairs of the monolithic organisations like the Punjab State Electricity Board allround co-operation is must. No doubt Punjab Government has given the reins of PSEB to one of the best administrator with proven integrity but his hands do not seem to be totally free. He has managed to strengthen the financial position of the Board. What can he do when the operational side is managed by appointees of the Punjab Government and they are either sleepy or indulgent. It is the Chairman who has taken the initiative in identifying thefts and caught the operationals napping.

Steel furnaces run-round-the clock as long as power is available. The Xen concerned is supposed to watch energy variation of all units under his charge. He is supposed to register monthly consumption of each unit and verify facts if there is perceptible variation. Duty conscious and honest officers verify from all sources as to the reasons for large scale variation. Silence over 50% less consumption continuously for six months is certainly intriguing.

Some units allegedly involved are recorded power stealers in the records of PSEB. Some are functioning as mini steel plants “when they do not fall in this category. The professional groups in this scandal are said to have contracted with some units. Their personals remain round the metering system. Technically they short-circuit the C.T/ P.P. system by making small hole. This slows or stops the meter. This fact was detected by some one interested in exposing. A person was sent to the suspected unit on the alibi that he too is interested in the contract. The modus-operandi was shown to him. This fact has been given on the promise of anonymity. Let us see how PSEB manages this scandal.

With this revelation the reasons for the closure of some steel units become clear. Honest consumer has no option but to close and face odds from the very persons who manage power and other thefts.

PSEB has about three dozen chief engineers. There is absolutely no justification for such a heavy administration if theft is so rampant. On the other hand honest consumers are harassed on petty grounds.

A large number of honest furnace units will not hesitate to co-operate with PSEB provided it makes up its mind to remove this menace.

Canara Bank out to get Amitabh’s house

MUMBAI, July 11 (PTI) — Canara Bank will appeal before the Appellate Authority of Industrial and Financial Reconstruction against the July 9 order of the BIFR which has declared Amitabh Bachchan Corporation Ltd (ABCL) as a sick company. The Bank’s lawyer said today.

Canara Bank, which had advanced to ABCL Rs 10 crore, will file an appeal within a month before AAIFR under Section 25 of the Sick Industrial Companies (Special Provisions) Act, 1985, its counsel Nishit Dhruve told PTI here.

Canara Bank will simultaneously urge the Mumbai High Court for attachment of the palatial bungalow of the mega star located at Juhu here whose cost is estimated at Rs 10 crore.

The Canara Bank counsel said the bungalow stood in the name of Amitabh Bachchan and his wife Jaya who were the guarantors of the loan, and hence the bank would proceed against the couple individually because it could not move against ABCL in view of the impugned BIFR order.

Lakme plea accepted

NEW DELHI, July 11 (PTI) — The MRTPC has discharged a notice of enquiry against Lakme Ltd accepting its application that it will inform the Commission if it re-enters the cosmetics business.

Since Lakme Ltd had already sold off its cosmetics business to Hindustan Lever Ltd (HLL), no purpose will be served by directing the company to desist from adoption of and indulgence in restrictive trade practices with which it has been charged, the MRTPC said.

“When the respondent (Lakme Ltd) has already sold off its cosmetics products pursuant to the resolution passed at its general meeting held on May 14, 1998, it can certainly be said to have ceased the practice,” it said adding that this was in accordance with what the commission will have ordered in the normal course.

Inflation falls to 2.03pc

NEW DELHI, July 11 (UNI) — Maintaining its 17-year low for the second week in succession, the inflation rate receded further by 0.50 per cent to touch 2.03 per cent on June 26, due to a consistent fall in prices of manufactured products and food articles. It was 2.53 per cent the week before.

This was the lowest inflation rate registered since August 15, 1982 when it stood at 1.66 per cent. The decline was despite the prices of pulses, vegetables, coarse grains and transport equipment shooting up. However, it had crossed the 8 per cent barrier when it touched 8.12 per cent during the corresponding week last year.

The current drop in the inflation rate was on account of substantial decline in prices of arhar, fruits, coir fibre, hydrogenated vanaspati, hessian, sacking bags and house service meters.

The inflation rate had never crossed the double digit barrier for the 221 weeks at a stretch, pushing the old record of 1993 by the wayside.

Official sources said the record production of wheat, oil seeds and pulses also brought down the inflation rate. Contrary to the expectations, the Kargil conflict had little impact on the inflation rate.

Delhi airport still vulnerable

THE need of helicopter services have increased manifold as the aviation industry marches on. A helicopter operation is no longer a luxury for rich and politicians but an essentiality to fulfil social responsibilities and promote tourism which is key to the country’s success.

The Bangalore-based services officials got together to initiate Deccan Aviation with only two aircraft in September, 1997. Many unforeseen problems surfaced, but the retired services officials remained undismayed. They translated a difficult venture into success. They expanded their operations from South to West and now to Delhi.

Before the inaugural flight took-off at Safdurjung Airport, the aviation officials presented a cheque of Rs 2 lakh for Kargil victims.

Bell Helicopter (Textron) is a famous manufacturing company. The aircraft provides comfortable seats. Baggage up to 200 lbs can be carried without any problems.

Deccan Aviation’s 1000 sorties since its launch include medical evacuations, corporate travel, geophysical studies, aerial filming and power-line inspections. With helicopter services in operation in different regions, heli-tourism and holiday packages will be possible as the aircraft can carry four to six passengers (excluding pilot) and its speed is 180 km hour.

Airport security

Despite tightening the security because of the Kargil conflict, the airports, particularly Delhi’s international airport, continues to be vulnerable. There are several weak zones existing at the Delhi Airport. Bona fide officials are expected to prove their identity, while hoodlums secure entry without any problem.

The Bureau of Civil Aviation Security has undertaken several measures to prevent unauthorised persons from securing entry into sensitive areas. But it has had no effect as many “undersirable” persons are seen loitering about in departure and arrival concourses. This allows them an easy entry into the departure hall.

An unholy practice

In domestic carriers, there are pilots who claim and secure flying allowance of Rs 3500 an hour without flying on the plea that they are “executives” and they are entitled to this amount even if they are unable to fly because of their administrative responsibilities.

The tenure of one such pilot is coming to an end and the Ministry has indicated his reversion to headquarters. He is a pilot who jumps from first floor only to land on the second floor. But the Ministry thinks that enough is enough and there should be a change. The time will tell whether the Ministry succeeds or he has his own way.

by Ashok Kumar

Q: Should I buy shares of Essel Packaging now?

— Monu Brar, Bathinda

Ans: The company which entered into the business of flexible packaging 14 years ago has been riding high on the growth of the fast moving consumer goods (FMCG) segment, particularly the dental care products and cosmetics, owing to its privileged clientele comprising large multinationals, in its business of laminated collapsible tubes. And now that the company has acquired almost a monopoly status in the domestic business segment with a market share of more than 90 per cent, Essel Packaging has set its eyes on the neighbouring countries like China and Nepal. While more than 90 per cent of the sales turnover of the company is generated out of the collapsible laminated tubes segment, it is also into the manufacture of seamless tubes. Overall, the prospects of this company appear to be quite bright and one could consider an investment in its shares at price declines.

Q: Do you recommend an investment in the shares of Paper Products?

— Virender Sahani, Chandigarh

Ans: Paper Products Ltd, which is engaged in the flexible packaging segment has done well to consolidate its position in the industry by adding more capacities through phased expansions. PPL commences operations nearly four and a half decades ago, and is now a leading supplier of laminates and coated paper. The company has one fully integrated manufacturing complex at Silvassa, where capacities are being added up in phases. PPL also has a unit in Nagpur for extrusion coating and converting paper. The recent currency meltdown experienced by the South-East Asian countries worsened the scenario on the exports front for the company. With sourcing from Indonesia and nearby nations proving to be much cheaper than that from India, it is likely that there may not be a growth in exports during the current financial year. All this is happening while the industry is facing difficulties from growing competition from South-East Asian countries and the over-supply situation in the domestic market too. However, the company may gain from the expansions it has undertaken and it also enjoys locational advantages. But first and foremost, the industry has to step out of recession. Though an immediate investment in this scrip is not recommended one could wait and watch this scrip.

Q: Is there any chance of a revival in the fortunes of GSFC?

— Anshul Sharma, Shimla

Ans: Promoted as a joint sector entity engaged in the fertilisers industry, Gujarat State Fertilisers & Chemicals Ltd (GSFC) has now diversified its interests into segments like petrochemicals and chemicals. Interestingly thus, as of now, more than half of the company’s annual turnover arises from non-fertiliser areas. The wide product portfolio of GSFC includes petroproducts and chemicals like caprolactum, melamine, polymers and nitrogenous and phosphatic fertilisers. The net benefit it tends to enjoy on the fluctuating trends in the international markets for these products by shifting its focus to such commodities which are on the uptrend. But at the same, it also has to pay the price for same occasionally, when the company finds it tough to fight it out with the imports, whenever they are cheaper. At present, considering the reversal in terms of policy changes initiated by the government in the case of fertiliser pricing and fuel prices, it does not appear that GSFC may live upto expectations. Yet, one would do well to keep an eye on this company as its fortunes could improve.

Q: Please comment on the prospects of BSES?

— Dr M.S. Chaddha, Chandigarh

Ans: A prominent player in the power industry, BSES is an integrated power generations and distribution company. The company can boast of excellent credentials and a good track record. During the last year, the company managed to solve its problems at its plant at Dahanu, which is presently functioning at optimal capacity utilisation levels. BSES, which started off supplying power to the areas of Mumbai, has now started providing the same to areas in Andhra Pradesh, Madhya Pradesh and Kerala. The company proposes to raise the capacity to 2000 mw, and the same addition will be completed over the next half decade. It is setting up a coal benefication plant as a joint venture with CLI Corporation and Spectrum Technologies of the USA. The company is expected to set up a state-of-the-art power project, which is promoted jointly with Kerala State Industrial Development Corporation and Travancore Cochin Chemicals. The same is likely to be commissioned soon. The company appears to be poised for fair growth in the future.

Q: Should I hold or sell the shares of Amtrex Appliances?

— Retd Maj Bhisham Kaul, Chandigarh

Ans: Incorporated in 1985 as an affiliate of the Sanjay Lalbhai Group, the Ahmedabad based Amtrex Appliances Ltd, is a well prominent player in the airconditioners segment. The key assets of the company are its innovative technology and a good market position. On the financial front the company’s performance has been moderate. Although the company does not have any expansion plans, it is making a beeline for the foreign market. It plans to target the Middle-East and West Asian market through local dealers. It is also commencing operations in Sri Lanka and Bangladesh. Thus the company’s future prospects seem reasonably bright, and hence one could hold on to the shares of this company.

PSB Finance

I deposited Rs 15,000 with PSB Finance and Investment Ltd vide CDR No. 52808, Account No. 2250 dated 27.12.97. It matured on December 27, ‘98. Despite reminders I have not received the money back.

Col B.K. SHARMA
Ambala Cantt.

II

We hold two CDRs No. 37031 and 37032 in joint names amounting to Rs 12,000 and 10,000 in P.S.B. Finance and Hire Purchase Ltd, Chandigarh Road, Kurali, District Ropar. The said CDRs were due for payment on 3.6.99 and 9.6.99. After completing the formalities, we forwarded these CDRs to branch office, Kurali for releasing the payment together with interest, but till date the company has not released our maturity payments despite repeated requests.

SURINDERPAL SINGH,
SURJIT KAUR
Mohali

Oriental Bank

I applied for 100 shares of Oriental Bank of Commerce in 1994 vide application No. B-6061512 and remitted Rs 6,000 by means of a bank draft. I have not received the application money back. I have sent several letters to SRG Fin, and Management Consultant, New Delhi, the registrar of the issue. In a reply of one of my letters, they wrote that a refund order No. 1087484 for Rs 6,000 has been sent to me which I had never received.

JAGDISH SHARMA
Chandigarh

Technology
Tribune News Service
NEW DELHI, July 11 — IEC Softwares Ltd has developed a new Internet and multimedia related technology known as “Virtual Schools” which will use the Malaysian Multimedia Super Corridor (MSC) to provide students different services.

G.S. Bachi
Tribune News Service
CHANDIGARH, July 11 — Mr Gurbachan Singh Bachi, Chairman of the Punjab State Cooperative Bank, Chandigarh, has been unanimously elected Vice-President of the National Federation of State Cooperative Banks at the 36th general body meeting held at Puri (Orissa).