Saturday, June 5, 1999
today's calendar
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B U S I N E S S | Saturday, June 5, 1999 |
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spotlight today's calendar |
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Industrial growth falls
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Caste factor &
poverty Pak for 5 per cent growth |
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‘Enough of onion
exports’ Fund for protection of environment DoT jams cellular service, draws
flak ICRA upgrades Vardhman Polytex Gold sale by SBP |
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Industrial
growth falls NEW DELHI, June 4 — Industrial production, which registered a growth rate of 3.8 per cent during April-March, 1998-99, indicates a sharp decline compared to the corresponding months in the previous year. Industrial growth fell to almost half in 1998-99, the growth rate being 6.6 per cent in April-March 1997-98. This is reflective of recessionary conditions prevailing in the economy, with mining and quarrying showing a steep fall. According to the latest data released by the Finance Ministry on various economic parameters, the growth rate of the manufacturing sector increased to 4.1 per cent. It was 6.7 per cent in the corresponding period in the previous year. However, the growth rate of mining and quarrying decreased to 1.7 per cent in April-March, 1998-99, as against an increase of 5.9 per cent in 1997-98. Production in basic goods increased by 1.6 per cent (against an increase of 6.5 per cent), capital goods increased by 10.2 per cent (against 5.3 per cent), intermediary goods registered an increase of 6.0 per cent (against 8.1 per cent), consumer goods increased by 2.1 per cent (against 5.7 per cent), consumer durables increased by 3.5 per cent (against 7.8 per cent). Consumer durables increased by 1.8 per cent in April-March, 1998-99, against an increase of 5.2 per cent in the corresponding period the previous year. Foodgrain stocks stood at 21.66 million tonnes on April 1, 1999. Core infrastructure sectors achieved an average growth rate of 2.5 per cent in April-March, 1998-99, compared with 5.4 per cent in the corresponding period the previous year. A silver lining was the low prevailing inflation rate which was 3.7 per cent in terms of WPI as on May 8, 1999, compared to 6.6 per cent a year back. The rupee appreciated against the Deutsche Mark and the French Franc, was stable against the pound sterling and depreciated against the dollar and yen in April, 1999. Exports increased by 3.7 per cent in dollar terms in April-March, 1998-99, compared with a decline of 2 per cent in the corresponding period the previous year while imports rose by 7.9 per cent. Foreign exchange reserves (excluding gold and SDRs) stood at $ 29.61 billion at the end of April, 1999. Money supply growth was 1.8 per cent during March 31, 1999, to April 23, 1999, whereas the annual growth rate as on April 23, 1999, was 17.8 per cent. The net RBI credit to the government increased by 3.9 per cent during the period. The number of applicants on the live registers of the employment exchanges at the end of 1998 was 401 lakh, higher by 2.43 per cent as compared to the corresponding period the previous year. The number of registrations during the last month of 1998 was lower by 0.34 per cent than in the previous year. Placement as a percentage of registration during December, 1998, was 4.21 per cent against 4.29 per cent in the corresponding period last year. The total placement
effected during April-December, 1998-99, was 1.68 lakh
compared with 1.97 lakh in the corresponding period of
1997-98. — UNI |
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NEW DELHI, June 4 (PTI) — Mahanagar Telephone Nigam Ltd (MTNL) today started a tele-shop in Delhi to provide its clients a total telecom solution, including instant connectivity to the basic telephone service. “The unique feature of the tele-shop “Telemart” is that it will offer options to our customers to select a telephone instrument and the number of their choice while registering for new telephone connections”, MTNL Chairman and Managing Director S Rajagopalan said. Work orders of telephones booked at the Telemart would be issued immediately and the telephone connection is likely to be provided within a week, he said. The concept of Telemart would also generate demand for new telephone connections in the Capital which had witnessed a downfall of about 25 per cent demand in the last two years. MTNL is planning to open
more tele-shops covering entire Delhi during the current
fiscal year, the Chief General Manager of MTNL (Delhi),
Mr A K Bhatnagar told PTI. |
Caste
factor & poverty All those who believe and try to make others believe that India is winning the battle against poverty are in for a rude shock. The World Bank feels that the battle is actually fizzling out and offers dense statistics in support of its findings. Even in the urban areas, the declining trend in poverty level has plateaued out and in the rural areas the absolute number of those in utter deprivation is increasing. One in every four persons living in abject poverty across the world (numbering 1.6 billion in all) is an Indian and this depressing distinction is likely to be valid for several decades. There is a big paradox in this. India’s economic growth rate has been respectable, around 5 per cent, much better than that of several countries in the world. Yet, the poor have remained untouched by the general improvement, or as the Bank analysis puts it delicately, the poor “have not benefited from the economic reforms”. The implications of marginalising one-third of the population from the overall economic system are worrisome. The additional national income generated by the first wave of reforms has gone to improve the standard of living of a small segment of the population and to deepen their consumption basket. Some others too have been lucky, but through the percolation method. In the urban and rural areas, those in the lowest rung of society — economically, socially and culturally — find themselves too weak to take advantage of the new climate of growth. They face enormous structural infirmities. For instance, as the analysis points out, children from the richest 20 per cent of the population have a minimum 10 years of schooling by the time they are 15 years of age while those from 40 per cent of the poorest section have no education at all. Almost the same is true of other basic amenities such as housing, health and food. That is why they are poor, is it not? There is another
structural disadvantage. Those who are entrusted with the
task of improving the lot of the poor are hobbled in two
ways. One, any largescale diversion of funds to help the
poor will prove to be politically risky; the urban rich,
who have to make the necessary sacrifice, may turn
politically hostile and given their disproportionate
clout in opinion-building, the damage at the time of
elections may be unacceptable. Two, it takes an
expenditure of seven rupees to reach one rupee to the
poor, and thus the whole project of fighting poverty
holds no appeal. There is a third angle. A good part of
the central grants for programmes like the Indira Awas
Yojana remains unutilised for want of matching state
grants. This rank indifference to the economic woes of
the poor is easily explained. The rural and urban poor
are no longer mobilised on the issues of “roti,
makan, kapda” but on caste lines. When caste entered
the political arena, it was expected to add a sharp edge
to the fight against poverty. Now it has supplanted it
altogether. The poor will continue to have their caste
and, yes, poverty. |
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ISLAMABAD, June 4 (Reuters) — Pakistan said it is aiming for gross domestic product growth (GDP) of 5 per cent in the next financial year starting July against actual growth of 3.1 per cent in the current year. Finance Minister Ishaq
Dar told a news conference yesterday that the national
economic council, the top economic decision-making body,
had set the Budget targets for the 1999-2000 fiscal year.
“Considering the fact that the economic situation
has stabilised and we have already taken several measures
in March-May to revive economic activity...Next
year’s growth target has been fixed at 5 per
cent,” he said. |
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NEW DELHI, June 4 (PTI) — With the impact of last year’s onion crisis fresh in memory, the Centre has decided not to extend permission for exports of onion from June. The decision not to extend the permission for onion exports has been taken in view of the monsoon and firming up of prices in the last few weeks, official sources said. The actual onion production during 1998-99 is estimated to be 43 lakh tonnes as against the Agriculture Ministry’s earlier projection of 49 lakh tonnes. The government had, in
February, formally lifted the ban on onion exports
imposed in October following the unprecedented escalation
in domestic prices due to the production shortfall. |
Fund for
protection of environment NEW DELHI, June 4 — A dedicated fund for the conservation of resources and protection of environment is being set up by the government. The proposed fund, contributed by one per cent of project cost by industry, would be monitored by the government and could be utilised by the contributors for environmental protection, the Environment and Forests Minister, Mr Sureah Prabhu said while inaugurating a workshop on “Environmental Clearance : Issues and Concerns”, organised by the Assocham, here today. Clarifying the various issues raised by the Assocham President, Mr K P Singh, the Environment Minister said the government is also framing sitting guidelines, particularly for industries which are considered ‘hazardous’ so that the choice of location is determined well in advance. This would also obviate the risk of putting of industries first and backing out later on grounds of stringent environment norms. Simultaneously, the
Ministry proposes to make environmental audit and
adherence to ISO 14000 norms mandatory. |
DoT jams
cellular service, draws flak CHANDIGARH, June 4 — The PHDCCI has expressed concern at DoT’s jamming of the networks of cellular service providers in UP, Rajasthan, Haryana, Punjab, Bihar and Orissa. In a statement today, Mr Ashok Khanna, President, termed the action as “arbitrary, unjust and absolutely uncalled for.” The DoT action has sent negative signals to potential foreign investors not only in the area of telecom but the entire infrastructure sector, he said and added that this would have a serious impact on the growth of the vital infrastructural facilities in the country. The government had decided to refer the case of existing cellular operators to the Attorney General to get his opinion on ways to include them under the revenue sharing arrangement announced in the new telecom policy. Any action against operators should have taken only after the AG’s opinion had been received, said Mr. Khanna. The DoT action has disturbed the normal services and put to inconvenience a large number of cellphone users. More than one lakh cellular subscribers have been left in the lurch. Of these 15 to 20 per cent belong to the rural areas. The licencing agreement
between DoT and operators clearly stated that in the case
of any default, DoT would take over and operate the
network. Instead DoT has decided to jam the network
putting subscribers to undue inconvenience, he added. |
ICRA
upgrades Vardhman Polytex CHANDIGARH, June 4 — ICRA has assigned an A 1+ rating to the Rs 100 crore CP programme of Vardhman Polytex Ltd. (VPL), indicating highest safety. The prospect of timely payment of debt/obligation is the best. VPL which is a part of the Rs 1500 crore Vardhman group, manufactures cotton, blended and acrylic grey yarn and caters primarily to the hosiery sector. The Vardhman group is fully integrated into manufacturing a wide range of products — yarn, sewing thread and fabric. While ICRA has
downgraded the long term and medium term ratings of IFCI.
The ratings have been revised from LAAA and MAAA to LAA+
and MAA+. The revised rating indicates high safety. |
Gold sale
by SBP PATIALA, June 4 — State Bank of Patiala today entered the gold banking sphere by starting sale of gold in five gram, 10 gram and 10 tola bars. The scheme was launched at a function held in the main branch of the office here, which was inaugurated by the bank Managing Director A.K. Batra. Mr Batra said the sale of gold through the bank carried with it a guarantee of its price as well as its purity as it is available in 24 carat and certified by the appropriate authority of Switzerland. He said the rates were linked to international market rates. Mr M. Sita Rama Murty,
Chief General Manager of the bank stated that bank’s
other branches situated at Ludhiana, Bathinda and Khanna
Mandi would also start sale of gold very soon. |
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