Wednesday, June 9, 1999
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B U S I N E S S | Wednesday, June 9, 1999 |
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HP package for tourism
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 Sony Corp.'s entertainment pet robot AIBO strikes a pose in front of curious onlookers at Sony showroom in Tokyo. The Japanese electronics giant announced that the local sales of 3,000 robot dogs through Internet was done in 20 minutes despite its steep price of 250,000 yen ($2,072) per unit. — AP/PTI |
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9-pt agenda for capital
markets RBI group to set up credit bureau Info Technologies to issue 1:1
bonus India’s debt falls to $ 96
billion |
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HP
announces package for tourism projects SHIMLA, June 8 — The Government has formulated a package of incentives for private entrepreneurs in tourism related activities. An official spokesman said here today that private investments, including foreign, in projects such as tourist camps, entertainment parks, adventure sports, heli-skiing, water sports and ropeways will be encouraged. Additional incentives are being provided to all these units by entitling them to an out-of-turn allotment of plots in tourism clusters being established in the State These units will be eligible for deferment of the luxury tax for 10 years from the date of commencement of operation and will be charged a rate of interest of 1 per cent lower than the normal lending rate, except tiny tourism units for which it will be 3 per cent. The time share scheme alone has a potential to collect about Rs 48 crore through the tourism corporation. The entire area of the State has been classified into “A” “B” and “C” categories. The land for developing of tourism clusters will be allotted to entrepreneurs on the leasehold basis for 95 years subject to a ceiling of 5999 sq metre. Whereas to facilitate the setting up of small and large-scale tourism units the Government may also acquire land for such units under the Land Acquisition Act 1894. Besides, subsidy will be provided to entrepreneurs up to 75 per cent of the cost, subject to a ceiling of Rs 15,000. In case of large scale tourism units 75 per cent of the cost of preparation of feasibility report or 1 per cent of the capital cost of the project in land, building, plant and machinery, subject to a ceiling of Rs 1 lakh. Subsidy will also be
provided on manpower development. The tourism units which
send their workers for technical training for upgradation
of their skills in the Government-recognised institutions
will be given a subsidy of 50 per cent of the actual cost
of training with the upper ceiling limit of Rs. 5,000 per
trainee subject to a maximum of Rs 25,000 per unit for
one training programme. |
9-pt agenda for capital markets NEW DELHI, June 8 (PTI) — The Bombay Stock Exchange (BSE) today asked the government to strengthen capital market by adopting its nine-point prescription, including mandatory disinvestment upto 24 per cent of all the Indian ventures of foreign companies in the domestic market. After making a presentation to the government on the state of capital market in the country and need for a revival package to boost investors’ confidence, BSE President Anand Rathi told newsmen “if foreign companies are making wealth by their investments in India, let the public share part of it.” To facilitate floating of large public issues, the BSE wanted the restriction of keeping at least 25 per cent equity in a company among the general investors removed and replaced by a minimum offing of 2.5 lakh shares in case of issues worth over Rs 10 crore. Currently, under the SEBI rules, a company has to offer a minimum of 25 per cent of the paid-up capital to the public at the time of a domestic offering of shares. “We met Finance Minister Yashwant Sinha and Finance Secretary Vijay Kelkar and gave suggestions for a strong capital market and better investor returns,” Rathi said a day after his meeting. On his proposal for
foreign companies to divest 24 per cent, Rathi said this
would not in any way come in the way of the companies
operating in India as the majority stake would be held by
the foreign firms. |
Change of guard at Ranbaxy from
Oct 1
SAS NAGAR, June 8—- Dr Parvinder Singh today announced his decision to step down as Managing Director of the Rs 1400 crore Ranbaxy with effect from October 1 this year. Mr D.S.Brar, President of Ranbaxy , will succeed Dr Singh as CEO and Managing Director. The company’s Board of Directors also adopted a code of practices for corporate governance. Dr Singh told newsmen after the company’s annual general meeting here that he will continue to be the Chairman of the Board while Mr Brar will head the executive arm. Besides adopting the code of practices to ensure transparent functioning of the company , the Board constituted management, science, finance and audit committees with the majority of members being non-executive Directors. The code prescribes that non-executive Directors will normally serve for a maximum of two terms of three years each, extendable in exceptional cases to three terms. The maximum age for all Board members will not exceed 70 years , Dr Singh said. This is the first time Ranbaxy will have a professional at the helm. So far the top post has always been held by a member of the promoter family. The company also
appointed Capt Amarinder Singh, Tejendra Khanna, a former
bureaucrat, and Mr Tirath Mulchandani as the
company’s non-executive Directors. |
RBI group to set up credit bureau MUMBAI, June 8 (PTI) — The RBI has set up a 12 member working group to explore the possibilities of setting up a credit information bureau (CIB) in India. The CIB is being contemplated for the collection of credit information relating to borrowers from lending institutions and for the provision of such information to the financial system with a view to facilitating distribution of credit to all sectors of the economy and for related or incidental matters. The group, headed by RBI Chief General Manager (Department of Banking Operations & Development) NH Siddiqui, will examine in detail modalities for setting up the bureau, as well as powers and functions to be assigned to it. It will also look into all matters including the legal aspects relating to administration and management of the affairs of the bureau and recommend a suitable ownership and organisational pattern for the CIB. The type and range of trade, credit and financial information on borrowers or prospective borrowers of lending institutions to be collected from the customers of banks and other financial institutions generally and specifically, as also other economic/environmental data that is useful for the purpose, too will be finalised by the group. The group, asked to submit its report by August 31, 1999, will also identify the members eligible for availing of the credit information and to decide on the cost of dissemination of the data. The methodology for maintenance of data bank on borrowers from lending institutions and its dissemination including supportive technology requirements therefore will also be listed by the group. It will examine issues relating to furnishing of credit information by the CIB, on request, to financial institutions and to prescribe the forms in which such information is to be furnished. Any other matter
relevant to the setting up of the CIB will be considered
by the group. |
Info Technologies to issue 1:1 bonus Information Technologies India Ltd (ITIL), on Tuesday announced a bonus issue to shareholders in the ratio of one share for every share held (1:1). The company registered a 235.6 per cent increase in its net profits to Rs 36.53 crore for the year ended May 31, as against Rs 10.88 crore in the previous year, a company statement said. ITIL’s net sales also shot up during the year by 149 per cent to Rs 122.74 crore compared to Rs 49.28 crore the year before. The Board of ITIL, which met to take on record the audited financial results for the year, also recommended a 10 per cent dividend for the year 1998-99. Due to the improved performance during the year, the reserves excluding revaluation reserves of the company increased by 190 per cent to Rs 96.16 crore from Rs 33.07 crore. Dabur Pharma Dabur Pharmaceuticals Limited has set up its first overseas arm in Britain with a $ 5 million investment commitment and is considering similar ventures in Russia as well as South African countries. A division of the Rs 915 crore healthcare major Dabur India Limited, Dabur Pharmaceuticals officials said the company had aggressive expansion plans to establish itself in the overseas markets, specially in the area of anti-cancer (oncological) formulations, besides launching new products in the domestic market. Orient Paper downgraded CRISIL has downgraded Rs 50 crore bonds programme and Rs 25 crore non convertible debenture programme of Orient Paper and Industries Limited from “B” to “C” each, respectively. Tata electric companies The government on Tuesday cleared Tata electric companies’ proposal to bring in Rs 425 crore as foreign equity through its joint venture partner Total of France for setting up an LNG terminal project at a cost of over Rs 2530 crore. The foreign equity amounts to 50 per cent of Total stake in the joint venture, an official note here said. SPIC net falls 35 per cent A.C. Muthiah group company Southern Petrochemical Industries Corporation (SPIC) reported a 35 per cent drop in net profits at Rs 50.84 crore for 1998-99, despite an increased sales turnover of Rs 2,381.46 crore. SPIC’s ammonia and urea plants at Tuticorin (Tamil Nadu) were shut down for routine turnaround maintenance and modernisation between May-July last year and this had an adverse impact on output, sales and profits, company officials said. Infosys Technologies Infosys Technologies Ltd, a leading software consulting firm, announced a strategic alliance with Cybersource Corporation, a provider of real time e-commerce transaction processing services for payment tax calculation, risk management, fulfilment management and distribution control. The new alliance will expedite the adoption and deployment of reliable, secure and complete e-commerce solutions that rapidly deliver business value and competitive advantage to customers worldwide. “Cybersource services are designed to make the e-commerce transactions secure, cost effective and robust”, Strategic Alliance of Cybersource Vice President Steve Klebe said. —
Agencies
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India’s debt falls to $ 96 billion NEW DELHI, June 8 (PTI) — India’s external debt declined to $ 95.72 billion at the end of December last year after peaking to a record $ 99.01 billion in March-end 1995, a Finance Ministry status report on external debt shows. The debt stock stood at $ 93.91 billion at the end of March 1998 before increasing to $ 95.72 billion at the end of December, 1998. The increase can be largely attributed to the success of Resurgent India Bonds floated in August, 1998. There has been a significant decline in the external debt burden over the years, the report says. Between March, 1991, to end March, 1998, the external debt in US dollar terms increased at an annual compound rate of 1.6 per cent and the growth rate in rupee terms was actually higher at 12.5 per cent because of depreciation of rupee against foreign currencies. During the same period, the gross domestic product (GDP) at the current market prices was estimated to have increased at an annual compound rate of 15.1 per cent. As a result of the higher growth of GDP, the debt GDP ratio declined steadily from a peak of 37.7 per cent in 1991-92 to 23.8 per cent in 1997-98. In December-end, 1998,
debt as a proportion of the GDP in 1998-99 was estimated
at 23 per cent. |
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NEW DELHI, June 8 (UNI)
— The Union Cabinet today decided to allow Air India
reduce its retirement age from 60 to 58 to enable the
public sector carrier save Rs 87.64 crore up to March,
2000. |
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