Wednesday, July 28, 1999
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B U S I N E S S | Wednesday, July 28, 1999 |
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Cabinet approves foreign
investment authority proposal |
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Haryana pact with US body |
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SUN F&C to enter 7
more cities TRAI moves court as 11 operators
accept package Punjab Tractors net up 25 per cent |
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Cabinet
approves foreign investment authority proposal NEW DELHI, July 27 — The Union Cabinet today cleared the proposal for setting up of a Foreign Investment Implementation Authority (FIIA) to act as single point interface between the investor and the government agencies. The authority will provide “pro-active one stop after care service” to foreign investors in obtaining necessary approvals, sorting out operational and coordination problems with different arms of the government. The authority will be headed by the Secretary, Industrial Policy, and Secretaries of the other departments and the Chief Secretaries of the State governments will be its members with provision to co-opt any other necessary functionaries or experts. Briefing newspersons, the Information and Broadcasting Minister, Mr Pramod Mahajan, said that the FIIA will set up a fast-track committee (FTC) to review and monitor mega projects. The authority will also initiate inter-ministerial consultations to resolve policy problems. Mr Mahajan said to expedite foreign direct investment (FDI) it is important to set up a mechanism which does away with the investor dealing with multiple agencies for obtaining approvals . The Foreign Investment Promotion Board (FIPB) deals with approval of cases not covered under the automatic route. In any case after the approval of investment, several other clearances are required for which there is no assistance to the investor, the Minister said. FDI inflows to developing countries in 1997 stood at $ 149 billion of which India’s share amounted to only 2.2 per cent, he said adding that there are 34 high priority categories under the automatic approval route. Fiat proposal: The Cabinet also approved Fiat India Automobiles Ltd proposal to increase foreign equity participation from existing Rs 910 crore to Rs 2000 crore. The company is setting up a project for the manufacture of Fiat cars. Additional funds are required for working capital requirements. Telecom institute: The Union Cabinet also approved the proposal to set up Asia Pacific Telecommunication Standard Institute (ATSI) in India at Ghatnori, near Delhi, at an estimated cost of Rs 5 crore. The institute will promote and harmonise development of standards for telecom products, services and technology. Proposed by the International Telecommunications Union, a specialised agency of the United Nations dealing with telecommunications, the institute will be an autonomous inter-governmental organisation for the Asia Pacific region under the aegis of the Economic and Social Commission of Asia and Pacific (ESCAP). Mr Mahajan said that the role of the ATSI includes standardisation activities, including formulating technical standards, inter-connection standards, evolving appropriate rural technology and standards for providing village telephones and ISDN access. The Cabinet also approved the signing and ratification of the Tampere convention on emergency telecommunication. The convention makes available international assistance for restoration of telecommunication links at times of disaster or during search, rescue and relief operations. The convention will be signed at the UN headquarters in New York. CCI share
capital: The Cabinet has also decided to
increase the authorised share capital of the Cotton
Corporation of India Ltd from Rs 25 crore to Rs 75 crore.
This will help the corporation in raising extra funds for
its price stabilisation operations as also improving its
access to the international market. |
Grow Basmati, harvest food
insecurity NEW DELHI, July 27 — The increased cultivation of Basmati in Punjab and Haryana because of its trade potential can affect food security in the country, an expert on rice has warned. Dr E.A.Siddiq, former Deputy Director General of (ICAR) and Chairman of the Technical Committee that is preparing India’s case to fight the patent on Basmati, said the yield per hectare of Basmati was quite low compared to other varieties of rice and increased land use for this variety of rice can affect India’s food security in the long run. Rice contributes nearly 43 per cent of India’s total foodgrain production and India would have to sustain a production growth rate of at least 2.4 per cent per year to remain self-sufficient in food. However, Punjab and Haryana, which contribute substantial amount of rice to the country’s grain bowl have been witnessing a lower growth rate of 1.7 per cent or even less in recent times. In actual terms, India needs to add at least two million tonnes of rice every year to sustain self sufficiency in food. For instance, Dr Siddiq pointed out that Basmati was grown in nearly 30 per cent of cultivable land in Haryana because of its trade prospects. However, Basmati was a poor yielder and this meant that less of rice was being grown in a area which had higher potential. This trend was disturbing. “Our prime concern should be to increase foodgrain production rather than increase export of rice”, he said. India has been lucky so far as rice is grown more in rain-fed areas and the monsoon had not failed the country for several years now. India and China together constituted for a substantial amount of rice production and in case there is a shortage, of say 5 per cent, in any given year there will be chaos in the international market. With an availability of just around 15 million tonnes of rice in the international market, it will be difficult even to import the required amount of rice in a shortage year for India and China. Instead of giving stress on export of aromatic rice from India, the Government should encourage export of fruits and vegetables, which will also fetch higher returns for the farmers. On the rice-wheat rotation crop pattern in Punjab and Haryana, Dr Siddiq said it was spoiling the health of soil in these States. The two crop pattern can be sustainable if some gap is given between the sowing of the two crops. For example, China with proper planning has been able to sustain this pattern for the last 100 years. One of the reasons for Punjab to go in for quick succession in crops was the problem of labour. In a bid to retain labour, who are mostly migrants from Bihar, Punjab advances paddy sowing by at least two months and sustains it with irrigation and water drawn from underground. Excessive use of fertiliser and ground water was proving harmful for the soil and the water table too was going down, he said. The solution for Punjab to retain the health of the soil is to go in for mechanisation. In the years to come the gap between rural population and urban population will narrow and it will become increasingly difficult to find labour. Mechanisation is the only answer for this problem. He said increased cultivation of higher yielding varieties of rice is the main solution to ensure food security in India. There was immense potential to raise yield of rice in Bihar and West Bengal. According to a yield-gap
analysis, only 35 districts had an average yield of three
tonnes per acre and nearly 78 districts had a yield of
two to three tonnes. Around 174 districts had an average
yield of two to one tonnes and in districts in Eastern
India it was below one tonne. Since there was a potential
of five to six tonnes per acre, efforts should be made to
increase yield. |
Haryana
pact with US body CHANDIGARH, July 27 — The Haryana Electricity Regulatory Commission (HERC) today signed a partnership agreement with the Public Utilities Commission of Ohio under the India Energy Partnership Programme. The partnership will provide a mechanism for the Ohio commission to transfer its expertise in the power procurement, formulation and methodology of distribution of tariff and consumer interaction to the HERC. The agreement signing ceremony was attended by officials of the Haryana Government, US Embassy, the USAID and the United State Energy Association. Mr V.S. Ailawadi, Chairman, HERC, stated “PUCO, with its long standing and credible regulatory experience is an ideal partner of HERC”. Mr Craig Glazer, PUCO
commissioner, said: “We are impressed with the
dedication and commitment our colleagues in HERC towards
improving the power sector in Haryana.” |
SUN
F&C to enter 7 more cities NEW DELHI, July 27 - SUN F&C Asset Management (India) Pvt. Ltd, the Indian joint venture of the world’s first mutual fund company Foreign & Colonial, plans to significantly increase its presence in the country. Over the next one year SUN F&C aims to increase funds to over Rs 1,000 crore from the present Rs 550 crore. SUN F&C manages two domestic and two offshore mutual funds from its headquarters in Mumbai. The bulk of fresh investment into SUN F&C is expected to come from the domestic retail segment. To strengthen its distribution, the company plans to expand its marketing and distribution network to seven more cities. Besides Mumbai, it will now be present in New Delhi, Chennai, Calcutta, Bangalore, Ahmedabad, Hyderabad and Pune. Ford car in November NEW DELHI, July 27 (UNI) — Ford India Limited (FIL) has decided to price its much-awaited “Ikon”, which is scheduled to hit the streets in November this year, over the Rs 4 lakh barrier. The car, which will come only in a three-box version, will be available in both petrol and diesel options, Mr John Fink, launch manager for the Ikon, told UNI here. However, he refused to
divulge details on the engine displacements and the exact
price tag. |
TRAI moves
court as 11 operators accept package NEW DELHI, July 27 — Eleven cellular operators today accepted the switchover package to revenue-sharing system with two days left for the deadline, taking the total number of companies which have accepted the package to 12. The Cellular Operators Association of India (COAI) withdrew all cases, including the one against the entry of MTNL into cellular business after its general body meeting decided to this effect yesterday. The association said it would now not object to MTNL’s entry into cellular business and had decided to accept the package within the time period given by the Government. Following the change of stance by cellular operators who withdrew the litigation, Telecom Regulatory Authority of India (TRAI) filed a petition in the Delhi High Court seeking interpretation of its powers. In a day of quick developments, TRAI also moved the court seeking pronouncement of judgement of a case between cellular operators and the Government, which was reserved for judgement after completion of the hearing. TRAI’s move was consequent to the COAI resolve that the operators no longer opposed the entry of MTNL into cellular business. TRAI made the move to ensure that the court pronounced a judgement despite the original appellants, some private cellular operators, deciding to withdraw their case on the subject in keeping with the precondition laid by the Government for them. The Government in its recent telecom package had asked the private operators to withdraw all pending cases in courts and the TRAI before shifting to a revenue sharing arrangement from the existing licence fee regime. The Withdrawal of the
case by the private cellular operators at this juncture
would have led to a two-judge Bench of the high court
dropping the case and making valid an earlier order of a
single judge, who held that TRAI had no jurisdiction in
settling disputes between the licensor (DoT) and the
licencee. |
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NEW DELHI, July 27, (UNI) — The Communist Party of India (Marxist) has urged the Election Commission to immediately stop the revenue sharing arrangement made by the Government with the private basic and cellular Telephone operators saying it will cause revenue loss of Rs 1443.58 crore to the national exchequer. Politburo member Sitaram
Yechury and Member of Rajya Sabha Nilotpal Basu said here
today the party was of the firm opinion on the basis of
documents that the Government had not only committed an
impropriety but also was involved in the “biggest
scam of the millennium.” The government, which was
functioning on caretaker basis, was not empowered to take
the decision on such a major issue without consulting
Parliament.It was not authorised to amend the National
Telecom Policy of 1994. |
Punjab Tractors net up 25 per cent PUNJAB Tractors Ltd on Tuesday announced an interim dividend of Rs 6.50 per share as its net profit surged 25.4 per cent during the first quarter of this fiscal. Profit after tax at Rs 35 crore represents an annualised EPS of Rs 69 per share against Rs 55 achieved for Q1 of 198-99. During 1998-99, PTL had declared a dividend of 250 per cent — the highest for the organised corporate sector. Sesa Goa has registered a net profit of Rs 13.12 crore during the first quarter as against Rs 11.67 crore a year ago. Atlas Copco has recorded a net profit of Rs 2.22 crore in the quarter ended June 30, 1999, as against Rs 2.09 crore a year earlier. The net sales stood at Rs 28.56 crore while other income was Rs 38 lakh during the period. Crisil on Tuesday reported a decline in the income and net profit for the quarter ended June 30, 1999, reflecting the adverse impact of slowdown of economy in last year. Its income were lower at Rs 8.62 crore and the net profit was down to Rs 3.32 crore during April-June 1999, against Rs 9.07 crore and Rs 3.76 crore, respectively, in 1998-99. Indian Aluminium Company Limited today announced a 8.75 per cent increase in the net profit at Rs 17.53 crore during the quarter ended June 30, 1999, against Rs 16.12 crore in the corresponding period of last year. Thermax Limited has recorded a further slide in the net loss during the first quarter of the current fiscal to Rs 9.13 crore from Rs 65 lakh a year earlier. Bharat Electronics Limited has recorded a net loss of Rs 3.9 crore during the first quarter of the current fiscal as against Rs 14.9 crore a year earlier. Madura Coats Limited has slipped into the red during the first half of the current fiscal to record a net loss of Rs 3.7 crore as compared with a net profit of Rs 9.1 crore in the corresponding period of the previous year. Timken India Limited registered a 10.30 per cent decline in the net profit at Rs 15.87 crore during the first quarter of the current financial year against Rs 17.69 crore in the corresponding period last year. The net loss of Gestetner (India) Limited increased by more than ten times to Rs 90.16 lakh during the quarter ended June 30, 1999, from Rs 8.08 lakh in the same quarter last year. Goetze (India) Limited has been awarded the best performance supplier award by Tata Cummins for 1998-1999. Knoll Pharmaceuticals Limited has recorded a nearly three fold jump in the net profit during the first half of 1999 to touch Rs 17.41 crore from Rs 4.38 crore a year ago. The net profit for the second quarter ended June 30, 1999, stood at Rs 8.61 crore from Rs 8.52 crore a year earlier. Dabur India Limited has recorded a major spiral in the net profit during the quarter ended June 30, 1999, to touch Rs 26.44 crore from Rs 88 lakh in the same period last year. Tata Infotech Limited has recorded a net profit of Rs 9.29 during the first quarter of the 1999-2000 fiscal as against Rs 12.54 crore a year earlier. McDowell’s & Co Ltd has posted a 14.6 per cent increase in the net profit at Rs 5.5 crore for the first quarter of the fiscal on sales turnover of Rs 24.43 crore registering a 13.36 per cent growth over the corresponding quarter of last year. Eveready Industries has
registered a 40.81 per cent decline in the net profit
during the first quarter of 1999-2000 at Rs 7.18 crore
against Rs 12.13 crore in the same quarter of 1998-99.
— Agencies Tata Tea’s net profit dipped to Rs 26.09 crore during April-June, 1999, from Rs 39.10 crore in the corresponding period of last year. The company’s income was lower at Rs 213.56 crore compared to Rs 223.24 crore in the first quarter. Grasim Industries has recorded a 22.3 per cent growth in its net profit during the first quarter at Rs 58.96 crore from Rs 48.19 crore a year ago. The results of the current quarter include that of the cement business of Indian Rayon, which was merged with Grasim Industries with effect from September 1, 1998. .Britannia Industries
Ltd on Tuesday reported a 22 per cent jump in the net
profit for the quarter ended June 30, 1999, to Rs 10.6
crore from Rs 8.7 crore in the corresponding quarter last
year. |
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