HSBC positive despite tension
NEW DELHI, June 14 — The revival in the Indian economy continues to offer good investment opportunity for the stock markets despite the ongoing tension at Kargil, HSBC Securities has said.

J&K Bank plans mutual fund entry NEW DELHI, June 14 — J&K Bank has decided to venture into the mutual fund sector by setting up a separate company and has appointed Arthur Anderson as a consultant. Quarries privatised? FARIDABAD, June 14 — The joint action committee of the employees of Haryana Minerals Ltd. has alleged that the government-owned stone mines are transferred to private parties in violation of the policy.

One of six Swedish Air Force Saab planes equipped with an early warning radar, named ERI EYE, is rolled to its exhibition pad during preparations for the opening of the 43rd Bourget Air Show, north of Paris . The air show runs from June 12-20 and will feature 1,765 exhibitors from 40 countries. — AP/PTI

Haryana to promote religious tourism
NEW DELHI, June 14 — To promote tourism in the State, Haryana has switched on to “destination tourism” platform from its earlier well-known “highway tourism” niche.

Relief for NTC staff
NEW DELHI, June 14 — The Textiles Ministry has agreed to grant interim relief to the clerical and sub-staff of the mills of the National Textile Corporation.

HLL, Britannia vie for Modern Foods
NEW DELHI, June 14 — Leading Indian corporates, including Hindustan Lever Limited, Britannia and Nestle, are vying with international companies to buy a majority stake in State-owned Modern Foods India Limited.

Jagmohan ignored legal adviser’s view?

NEW DELHI, June 14 (PTI) — Former Communication Minister Jagmohan is believed to have ignored Department of Telecom’s (DoT) legal adviser’s opinion on referring the case of Koshika Telecom to the Law Ministry for extending the effective date on licence agreement since such a treatment was being given to other companies.

Prior to his shift from Telecom to Urban Affairs Ministry Jagmohan had denied extension of effective date in licence agreement to the Koshika Telecom and ordered cutting of interconnection of company’s network with the national network in three circles for its cell operations.

Ministry sources said that Jagmohan did not accept the department’s legal adviser’s opinion and instead took the action to disconnect the network on May 22.

DoT’s legal adviser P.K. Malhotra had written on May 4 that “in case Koshika Telecom Ltd also stands on the same footing as the other companies to whom change in effective date has been allowed in the past, legally it may be difficult to deny parity to this company with other companies.”

Asked if he had discriminated against Koshika and had not taken opinion of the Law Ministry, Jagmohan refuted the charges and said on Friday last that “action was taken on the advice of Attorney-General.”

The DoT legal adviser had said in his written note that “in his note dated April 15, the Minister of Communication has observed that there is hardly anything that needs to be referred to Law Ministry.”

“However, in view of the later developments like receipt of learned AG’s opinion and the view being expressed for extending benefit to persons similarly placed, it is suggested that opinion of the Department of Legal Affairs, Ministry of Law and Justice may also be obtained,” legal adviser said in his note.

The legal adviser also said that Koshika deserved a similar treatment as extended to other companies if it was found that the delay for which the company is asking for effective date change is caused by DoT and not by the company.

The legal adviser also opined that whether the case of Koshika is similar to that of other companies granted extension is a question on which administrative decision is essential.

He also quoted the contention of Aircell (Srinivas Cellcom) that in law it is always open to change the effective date of commencement of contract by the parties with mutual consent.

Koshika had written to Jagmohan that DoT had taken 809 days since July 16, 1996 to grant its recommendations for issuance of fully convertible debentures (FCD) to overseas investors and the matter has been pending for clearance from the Cabinet Committee on Foreign Investment (CCFI).

Delay by DoT in giving clearance to CCFI on the FCD issue was one of the grounds for seeking effective date change by the company.

During various meetings with DoT, Koshika had been informed that their request for change in effective date was to be examined by the department’s legal cell.

Koshika Tele issue approved

NEW DELHI, June 14 (PTI) — The Foreign Investment Promotion Board (FIPB) today allowed Koshika Telecom Pvt Ltd to issue fully convertible debentures worth Rs 120 crore to replace its foreign partner Philippines Telecom Corporation (PhilTel).

The debentures will be picked up by French telecom major Alactel, New World Telecom and an NRI (non-resident Indian) consortium.

PhilTel, which has a 34 per cent stake in Koshika, will hold only a token share-holding after the conversion of the debentures, FIPB sources said.

Koshika Telecom is among 25 foreign direct investment (FDI) proposals worth Rs 210 crore cleared by the FIPB today, including amendments in existing ventures of Honda Siel cars, AES transpower and Compaq.

The board also cleared the proposal of Swedish Match to wrest control of Wimco Ltd by bringing in Rs 31.3 crore.

Aircel proposes, DoT disposes

NEW DELHI, June 14 (PTI) — The Department of Telecom (DoT) today rejected cellular operator Aircel Digilink’s fresh proposal to clear the licence fee dues describing it as not “agreeable”.

Additional Solicitor-General Kirit Raval informed the Delhi High Court that the proposal did not match the expectations of the department.

He told vacation Judge Justice Dalveer Bhandari that there was no change in DoT’s stand regarding the demand of 25 per cent licence fee dues in cash and bank guarantees for the remaining 75 per cent.

Earlier, DoT had expressed its willingness to consider any improved proposal made by Aircel Digilink for the restoration of inter-connection which was withdrawn by the department on May 22, following default in the payment.

Aircel Digilink has offered to pay 25 per cent dues of Haryana and Rajasthan circles immediately and keep its bank guarantees alive.

HSBC positive despite tension

NEW DELHI, June 14 (PTI) — The revival in the Indian economy continues to offer good investment opportunity for the stock markets despite the ongoing tension at Kargil, HSBC Securities has said.

“Fundamentals have turned markedly positive due to the reversal of Asian economies and signs of domestic recovery in the first two months of the current fiscal,” HSBC Securities, part of the HSBC group in India, said in its monthly update.

The first two months of the current fiscal have witnessed increased indirect tax collections, upward trend in cement, automobile and consumer durable sectors.

A good harvest and a forecast of another good monsoon are also position factors from a long-term point of view.

However, HSBC Securities has cautioned that the future events arising out of the recent border issue with Pakistan are extremely unpredictable.

“Undoubtedly there are risks. If the border imbroglio escalates, it can have a negative impact on all the parameters that drive the market, earnings growth, rupee and liquidity,” it added.

But it feels that the probability of the imbroglio with Pakistan is low and from the long-term point of view, the market offers a good opportunity.

The market moved up by almost 25 per cent in the past three weeks and this time the rally looks more sustainable than the previous ones.

“There are still many bargains available in the market — several stocks which, despite big moves, are still below yearly highs and are cheap,” it added.

Comparison of various sectors in the last one year, by HSBC reveals that in the current rally cyclical moved up by 24 per cent, the stable growth regulated (PSUs stocks) by 40 per cent and banks and financial institutions by 43 per cent but they are still down by 15 per cent, 43 per cent and 25 per cent, respectively, for the year.

It said in the last few months, cyclical and value-plays are becoming the flavour globally and new money is coming to the Indian market.

J&K Bank plans mutual fund entry

NEW DELHI, June 14 (PTI) — J&K Bank has decided to venture into the mutual fund sector by setting up a separate company and has appointed Arthur Anderson as a consultant.

“The bank’s Board has already approved the proposal for entering into the mutual fund business and we are looking at the structure and amount of investment in the asset management company (AMC)”, J&K Bank Chairman and Chief Executive M.Y. Khan told PTI.

Arthur Anderson will advise the bank on the kind of funds to be launched and structure of the AMC.

J&K is the latest bank to make a foray into the mutual fund business. Other banks who have announced to enter include HSBC Bank, and ANZ Grindlays.

While ANZ Grindlays asset management company will invest in debt and money markets instruments, with its first mutual fund scheme hitting the markets in September this year, HSBC has yet to firm up on the details of the schemes and timing.

The first scheme by the AMC will be launched in the next six months.

Quarries privatised?
Tribune News Service

FARIDABAD, June 14 — The joint action committee of the employees of Haryana Minerals Ltd. (HML) has alleged that the government-owned stone mines are transferred to private parties in violation of the policy.

Stating this here today, Mr Begraj Nagar, President and Mr V.K. Pathak, Joint General Secretary of the action committee, alleged that the process which started in 1991 was still continuing despite the election promise of the present government to nationalise all mines.

Haryana to promote religious tourism

NEW DELHI, June 14 (UNI) — To promote tourism in the State, Haryana has switched on to “destination tourism” platform from its earlier well-known “highway tourism” niche.

Talking about the new approach being adopted to give a new face to tourism in the State, Managing Director, Haryana Tourism Development Corporation, Keshani Anand Arora, here said. “The switching from ‘highway tourism’ to ‘destination tourism’ marks the shift in the approach being adopted by the Haryana Government in the ‘explore India year’ of tourism. This is an endeavour to carve out a separate niche for ourselves in the burgeoning, competitive tourism market.”

Ms Arora said some unique initiatives like the ‘village tourism’ package and the ‘religious tourism’ aspect was also being experimented and introduced. This would not only give variety but also add a different flavour to our new strategy to present the matured face of tourism in Haryana besides presenting the real face and depth of the “Haryana experience”.

“Actually the main thrust now is to graduate from being the babe in the woods of tourism to becoming the front-runner in the game. For this all possible ideas and concepts would be put to fruition which till now have been at the conceptual stage. Some novel, bold and daring steps are part of the newer thinking adopted,” said the MD of HTDC.

Haryana today boasts of a well established chain of Haryana Tourism complexes, highly developed lakes, hotels and motels, bird sanctuaries (like Bhindawas and Sultanpur), golf courses (at Faridabad, Surajkund and Karnal), adventure sports facilities (at Damdama and Kalesar), annual crafts fairs and cultural festivals (at Surajkund and Ballabgarh), that have paved the road for its switching on to ‘destination tourism’ from its status of pioneer in ‘highway tourism’.

Relief for NTC staff
Tribune News Service

NEW DELHI, June 14 — The Textiles Ministry has agreed to grant interim relief to the clerical and sub-staff of the mills of the National Textile Corporation.

The grant of interim relief, subject to the approval of the Ministries of Finance and Law, meets the long-standing demand of the staff and sub-staff of the mills for parity of pay scales and other allowances with the clerical staff of the corporate offices of the subsidiary corporations of NTC.

The decision was taken at a meeting chaired by the Union Textiles Minister, Mr Kashiram Rana, here today, which was attended by the top management of the NTC, senior officers of the Ministry and representatives of the trade unions of the employees.

It was also decided that if the Ministries of Finance and Law approve this package, the government would appoint a committee to look into the salaries of the staff.

HLL, Britannia vie for Modern Foods

NEW DELHI, June 14 (PTI) — Leading Indian corporates, including Hindustan Lever Limited (HLL), Britannia and Nestle, are vying with international companies to buy a majority stake in State-owned Modern Foods India Limited (MFIL).

“While HLL, Britannia and Nestle have already responded to the Ministry’s advertisement inviting ‘expression of interest’, at least five more international bakery majors are considering the offer,” an official in the Ministry of Food Processing Industries (MFPI) said.

The Government has asked companies to submit the final bids by September 21, the official told PTI on conditions of anonymity.

The Ministry had earlier asked for sealed bids containing ‘expression of interest’ to NZ Investment Bank, which has been mandated as the global advisor for the sale of majority stake in MFIL, by May 21.

Against the recommendations of the Disinvestment Commission for an outright sale of MFIL, government had decided to sell 74 per cent of its stake in the Bakery-PSU, which was making profit till 1997-98, to a strategic partner.

MFIL, which manufactures breads and cakes under the popular brand name “Modern” has the capacity to produce 268 million standard loaves of bread per annum.

Companies or consortia which are qualified by the Ministry for bidding will subsequently be provided with a “bid pack” containing a request for proposals, an information memorandum, the previous three years’ audited annual results and other relevant information.

“Now that the formal date for expressing interest in Modern Foods is over, we would soon be issuing the bid pack to these companies,” the official said.

The government was hopeful of completing the entire process of privatisation of Modern Foods by November end.

Forex
US $ Rs 43.15/16
Stg £ Rs 69.58/61
Euro Rs 45.12/14
Jap yen (100) Rs 36.89/91

PSB Bond
NEW DELHI, June 14 (TNS) — The Punjab and Sind Bank has completed the bond allotment process within one week of the closure of the issue, which was over subscribed. The tier-II bond issue for Rs 60 crore with green shoe option for Rs 40 crore opened on June 3 and was subscribed upto Rs 148 crore on the first day itself, a release said.

Shyam Telelink
NEW DELHI, June 14 (PTI) — The foreign investment promotion board (FIPB) has informed multinational equipment manufacturer Qualcom, that the proposal of Shyam Telelink, a basic service provider in Rajasthan to pledge 26 per cent of its equity to the former would be accepted only if the latter moved it.

UTI scheme
CHANDIGARH, June 14 (TNS) — The UTI has launched an open-ended growth scheme, UTI Growth Sectors Fund, the first scheme offering five sector funds simultaneously on May 27. Brand value fund, pharma and healthcare fund, software fund, services sector fund and petro fund. The scheme will remain open for subscription till June 26, 1999.