Uco Bank’s net loss declines
CHANDIGARH, June 21 — Uco Bank, which was in the grip of continuous losses since the beginning of this decade, has recorded an operating profit of Rs 38.38 crore as against Rs 15 crore, thereby showing a rise of 155 per cent.

Rs 40,000 rebate offered on Esteem
NEW DELHI, June 21 — Faced with dipping sales volume, Maruti Udyog Limited dealers are now offering an over Rs 40,000 rebate on its mid-size car “Esteem” as desperate attempt to clear stocks.

PSEB’s health worsens
CHANDIGARH, June 21 — ICRA has downgraded the rating of the Rs 250 crore Structured Obligation Bonds (Series I) and Rs 250 crore Structured Obligation Bonds (Series II) issued by PSEB in December 1996 and July 1997 from LAA+(SO) and LAA(SO), respectively to LA.

Hitachi, Pizza to hike stakes
NEW DELHI, June 21 — The FIPB today permitted Hitachi of Japan and Pizza Corner to hike stakes in their respective joint venture companies by purchasing the equity of their Indian partners.

Punjab to cut sales tax soon
FATEHGARH SAHIB, June 21 — Mr Sucha Singh Langah, State Minister for Industry, presiding over a meeting of various organisations of trade and industry at Mandi Gobindgarh, today said the State tops in the country in the theft of taxes with 97 per cent tax evasion.

Apollo to implement Palampur project
SHIMLA, June 21 — The Apollo Hospital Corporation has drawn up a Rs. 2000 crore plan to strengthen and expand its existing network of medical institutions.

Bank to raise funds for martyrs
CHANDIGARH, June 21 — The Bank of Punjab has taken the initiative to mobilise contributions from the general public for the “Army Central Welfare Fund” for the welfare of the families of soldiers affected in the Kargil crises through its network of 50 branches in UP, Delhi, Punjab, Haryana, Rajasthan, Maharashtra and Chandigarh.

Refined oil & rice mill stone laid
AMRITSAR, June 21 — Mr Parkash Singh Badal, Chief Minister, Punjab, laid the foundation stone of Markfed refined oil and modern rice complex at Naushera Pannuan in Amritsar district.

Government clears light aircraft project

NEW DELHI, June 21 (PTI) — The government today cleared the multi-role light transport aircraft (LTA) project being undertaken by the Bangalore-based National Aerospace Laboratories (NAL) and approved its funding by various agencies to the tune of Rs 131.38 crore.

The Cabinet Committee on Economic Affairs (CCEA), which met this morning approved the funding by the Technology Development Board (TDB), Hindustan Aeronautics Limited (HAL), Ministry of Civil Aviation and the Council of Scientific and Industrial Research (CSIR), the official spokesperson told reporters.

While TDB would be funding the project to the tune of Rs 65.3 crore as loan and grant, the industrial partner of the project, HAL would be giving Rs 9 crore, Ministry of Civil Aviation and CSIR would provide a Budgetary support of Rs 42.58 crore.

The input for the project by NAL so far has been valued at Rs 14.5 crore.

The funds being approved by today’s clearance will be used for airworthiness testing of prototypes of the aircraft and further progress since much of the design and fabrication work of the aircraft has been completed by NAL over a period of time.

The CCEA today cleared financial restructuring of Singareni Collieries Company (SSCL) by allowing a moratorium till 2007 on payment of its Rs 663.34 crore outstanding interest to the government.

The company has been given a moratorium on payment of the outstanding Rs 663.34 crore interest against the government loans to the company accrued during the Eighth Plan period upto March 31, 2007, an offical spokesperson told reporters.

Escorts net falls by 32 per cent

NEW DELHI, June 21 (PTI) — Escorts Ltd today reported a 32 per cent drop in the net profit to Rs 110.17 crore in 1998-99 compared to Rs 163.44 crore in 1997-98.

The sales of the tractor company also declined by 7 per cent to Rs 1,319.7 crore as against Rs 1,417.76 crore reported in 1997-98.

Despite a fall in the net profit, the Board of Directors of the company has decided to maintain dividend at 45 per cent in 1998-99 a company statement here said.

The fall in the sales and profit was due to a labour strike for 70 days which resulted in production loss.

In 1998-99 tractors sold by the company declined by 7 per cent to 45,010, from 48,330 units in the previous year. The company had a market share of 17.7 per cent of total tractor market during the year.

Escorts Chairman Rajan Nanda said the company had a promising start in the current fiscal with market share of at 20.5 per cent against 15.1 per cent during the same period last year.

In the first two months of the current fiscal, the company sold 8,493 tractors as against 5,930 during the corresponding period last year. A growth of 43 per cent.

In an effort to improve its bottomline in the current fiscal. Escorts has planned to repay Rs 200 crore of debt without recourse to any new borrowings.

As part of its debt repayment plan. the debt equity ratio of the company will be reduced to 0.3:1.

In a statement it said the operating profit of sales ratio will experience healthy growth and the guarantees given for loans by associate and subsidiary companies will be reduced by more than 50 per cent.

The company, in the current fiscal, was also giving more thrust to export by entering into two alliances — with Carraro Spa of Italy and Long Agri-business LCC of the USA.

With Carraro Spa the company will produce latest generation axles and transmission at Pune with 50 per cent of the output to be exported to Europe.

The other alliance with Long Agribusiness is for manufacturing and distribution of tractor in the export market.

Telephones of 86 former MPs cut

MUMBAI, June 21 (PTI) — MTNL today informed the Mumbai High Court that it has disconnected telephone lines of 86 members of the dissolved Lok Sabha who had defaulted in paying outstanding bills.

MTNL submitted a list of 86 defaulting former Lok Sabha MPs who include Rajmata Vijayraje Scindia, K. Karunakaran, Subramaniyan Swamy, Mufti Mohammed Sayeed, A.B.A. Ghanikhan Choudhary, K. Vijaya Bhaskara Reddy, Ramvilas Paswan, Mukul Wasnik, Mohan Rawale, Vilas Muttewar, Dr Sanjay Singh, Digvijay Singh and Dr Y.S. Rajesekhar Reddy whose phones were disconnected on June 10.

Hearing a public interest litigation petition, Chief Justice Y.K. Sabrahwal and Justice S.H. Kapadia directed MTNL and the Union Government to file separate affidavits within four weeks on what steps they had taken to recover telephone dues of former MPs.

Opposing the petition, MTNL also submitted that as on June 11, it had recovered Rs 2.39 crore out of the total outstanding amount of Rs 15.50 crore. Of this, Rs 26.58 lakh and Rs 43.54 lakh were recovered from former MPs and sitting MPs of Rajya Sabha respectively, while Rs 74.09 lakh and Rs 95.36 lakh from former MPs and those of the dissolved Lok Sabha, respectively.

The petition, filed by city advocate M.P. Vashi, alleged the discriminatory attitude towards the politicians by not recovering from them arrears of telephone bills amounting to a whopping Rs 15.50 crore.

Uco Bank’s net loss declines
Tribune News Service

CHANDIGARH, June 21 — Uco Bank, which was in the grip of continuous losses since the beginning of this decade, has recorded an operating profit of Rs 38.38 crore as against Rs 15 crore, thereby showing a rise of 155 per cent. During the same period, the net loss of the bank reduced from Rs 96 crore to Rs 67.77 crore.

The net NPA as percentage to net advances declined from 11.14 per cent to 10.83 per cent. The yield on investments during the above period improved and it was at 12.45 per cent almost the best amongst the nationalised banks.

The annual target fixed under special agricultural credit plan has also been achieved by the end of March, 1999. The global productivity in term of per employee business of the Bank went up from Rs 65.92 lakh (1997-98) to Rs 73 lakh (approximately) during the year 1998-99.

Kisan credit cards

SHIMLA: The United Commercial Bank has launched a Kisan credit cards scheme in the state to provide easy financial assistance to farmers.

Disclosing this at a press conference here today, Mr S.D. Uppal, Manager of the Himachal Pradesh Zone of the bank, said that the credit card would enable the farmers to avail loans on an on-going basis without many formalities there by saving a lot of time.

The total deposits of the bank in the state increased by 24 per cent during 1998-99 and stood at Rs 582 crore on March 31, last. The NPAs of the bank were reduced from 25 to 17 per cent and net profit of the bank shot up by 71 per cent over the previous year.

Rs 40,000 rebate offered on Esteem

NEW DELHI, June 21 (UNI) — Faced with dipping sales volume, Maruti Udyog Limited (MUL) dealers are now offering an over Rs 40,000 rebate on its mid-size car “Esteem” as desperate attempt to clear stocks.

Besides, the company is also offering several sops like free holidays for a couple with every purchase and also 50 trips to Singapore.

Entry of several new models, particularly Fiat Siena with a similar price tag and a better vehicle, has had an effect on our sales. Now we have to clear stocks and are so offering these massive rebates”, a leading dealer in the capital said.

The Esteem is available in three versions — LX, VX, and AX. The LX version carries a price tag of Rs 475,607 while the VX versions is priced at Rs 542,116 and the AX variant at Rs 601,841 (ex-showroom) in Delhi.

However, its other vehicles, particularly Maruti 800, are still attracting a premium of around Rs 7,000-8,000.

Prior to this, the dealers had offered an over Rs 60,000 rebate on the Zen-Diesel.

Computer associates

Maruti Udyog Limited (MUL) has selected Computer Associates (CAs) Unicenter TNG to improve the management of its expanding network while boosting service and reducing operational costs.

MUL has the largest automobile distribution network in the country, with 188 showrooms, 240 dealer workshops and more than 1,000 authorised service stations in 510 cities.MUL’s computer network tightly links its dealers and factory, allowing the company to manufacture and quickly deliver cars in response to individual orders from dealers.

The new centralised management solution will give MUL technicians the ability to view and control network events from all applications and subsystems on a centralised console. Response manager will be used to gather network history data that, in turn, will drive proactive problem solving and dynamic performance monitoring. — TNS

MRF tyre clinics

Buoyed by the success of its tyre service centres in southern cities, MRF Limited has decided to set up more such clinics in northern and western cities over the next two months.

“We have decided to open tyre clinics in Delhi and Mumbai by August”. Executive Director (Marketing) of MRF Philip Eapen told PTI.

MRF planned to have a tyre clinic chain throughout the country and aimed to set up at least 150 such centres over the next two to three years. Eapen said, adding that currently the company was zeroing in on possible franchisees in Delhi.

— PTI

PSEB’s health worsens
Tribune News Service

CHANDIGARH, June 21 — ICRA has downgraded the rating of the Rs 250 crore Structured Obligation Bonds (Series I) and Rs 250 crore Structured Obligation Bonds (Series II) issued by PSEB in December 1996 and July 1997 from LAA+(SO) and LAA(SO), respectively to LA(SO).

There has been a fundamental deterioration in the financial health of the Board following the decision of the State Government to supply free power to the agricultural sector. There has been a continuous increase in the input costs of both generated and purchased power. The tariff increase has not been keeping pace with the corresponding increase in input costs of PSEB.

The future financial health of the board is contingent on the timely and adequate increase in the tariffs to cover the increase in input costs.

Hitachi, Pizza to hike stakes

NEW DELHI, June 21 (UNI) — The FIPB today permitted Hitachi of Japan and Pizza Corner to hike stakes in their respective joint venture companies by purchasing the equity of their Indian partners.

This formed part of the 25 proposals approved by the Board today amounting to a foreign direct investment inflow of Rs 300 crore, FIPB sources said.

Hitachi has been permitted to hike its equity holding in Hitachi Koki India Private Limited from 80 per cent to 92 per cent by purchasing 30 lakh shares of Rs 10 each. The Indian partner — Mr Ananth Hegde’s stake will effectively be reduced to 8 per cent in the powertoll producing joint venture.

FM Investments Inc of the USA has been allowed to hike stake in the Chennai-based Pizza Corner from 51 per cent to 96 per cent. The hike will be effected through a fresh FDI infusion of Rs 16 crore.

Punjab to cut sales tax soon
From Our Correspondent

FATEHGARH SAHIB, June 21 — Mr Sucha Singh Langah, State Minister for Industry, presiding over a meeting of various organisations of trade and industry at Mandi Gobindgarh, today said the State tops in the country in the theft of taxes with 97 per cent tax evasion.

He said the Government will issue a notification regarding reduction of sales tax from 4 to 2 per cent.

Mr Vinod Vashist, President, Small Scale Industries, demanded that the condition of furnishing ‘C’ form should be dispensed with.

Mr Sohan Lal, President, Merchant Chamber, said before implementing its new policy the government should take traders and industrialists into its confidence so that the tax collection procedure does not harass them.

Mr Mohinder Pal, President, Induction Furnace Association, said that most of the steel industry had shifted from coal to furnace oil. The shortage of oil results in its poor quality, pilferage and adulteration. He demanded a sub-depot of Indian Oil should be opened here.

Mr Raj Kumar, President, Small and Cottage Industries, said the industrial focal points lack basic facilities and infrastructure.

Apollo to implement Palampur project
Tribune News Service

SHIMLA, June 21 — The Apollo Hospital Corporation has drawn up a Rs. 2000 crore plan to strengthen and expand its existing network of medical institutions.

Stating this here today Brigadier Chandra B. Shukla, Chief Executive Officer of the Corporation, said that the plan, to be implemented over the first decade of the next millennium, would aim extending the corporation’s reach beyond the metropolitan cities. Once hospitals are set up in smaller cities, the Corporation would shift emphasis from medication to prevention of diseases.

The Corporation proposed to start a programme under which complete health check up would be carried out to know the health status of a person annually. He would be given advise to change his lifestyle to prevent diseases to which he could be prone. The cost of annual health check up could be as nominal as Rs. 2000 per month.

Regarding the hospital planned at Palampur, he said the Corporation was keen to implement the project, which had run into rough weather following the change of the government in 1993. The BJP-HVC regime also seemed seriously interested in the project. Work on the project could be started only if ample funds were available. The donors who promised give funds had backed out after the change of regime. Fresh efforts had to be made by the government to raise the necessary resources.

Bank to raise funds for martyrs
Tribune News Service

CHANDIGARH, June 21 — The Bank of Punjab has taken the initiative to mobilise contributions from the general public for the “Army Central Welfare Fund” for the welfare of the families of soldiers affected in the Kargil crises through its network of 50 branches in UP, Delhi, Punjab, Haryana, Rajasthan, Maharashtra and Chandigarh.

According to Mr Tejbir Singh, Executive Director, all branches of the bank will collect funds in the form of cheques/demand drafts/ payorder without any service charges. The amount so collected will be transferred to the “Army Central Welfare Fund” in Delhi

Contributions to this fund are exempted under Section 80G of the Income Tax Act, 1961.

Refined oil & rice mill stone laid
Tribune News Service

AMRITSAR, June 21 — Mr Parkash Singh Badal, Chief Minister, Punjab, laid the foundation stone of Markfed refined oil and modern rice complex at Naushera Pannuan in Amritsar district. The function was presided over by Mr Ranjit Singh Brahmpura, Cooperation Minister, Punjab.

The setting up of this integrated complex will boost the employment opportunity in this part of the State. The approximate cost of the oil and modern rice complex will be Rs 25 crore with a capacity utilisation of 60 per cent in the first year, 70 per cent second year and 80 per cent in the third year with the annual turnover of Rs 43.30 crore during the first year Rs 50.51 crore in the second year and Rs 57.73 crore in the third year. However, the rice mill will be run at full capacity from the very beginning.

The plant will have a capacity of 150 tpd oil seed crushing, 60 tdp refinery and solvent extraction plant of 60 tdp. The project is designed for the refinery of sunflower seed, mustered seed, rice bran and other seeds grown in that area.

The capacity of modern rice mill will be of 4 MT per hour and will be able to process about 15,000 MT paddy in a year. The modern complex will have latest facilities for processing of fine and common variety of rice to meet the conditions of specifications of FCI and others. This unit will have par boiling facilities for rice, which will result in lower percentage in broken and more yield realisation. The rice mill will also cater to the export of non-basmati rice by Markfed on a commercial basis, if required in future.

The financing of the project will be organised form IDBI and other financial institutions for which the approval of the project is being undertaken by IDBI, Chandigarh.

Mr Badal said that Markfed was one of Asia’s largest cooperative looking after the interests of farmers and also contributing towards the development of the State and strengthening the cooperative movement.

Price index
SHIMLA, June 21 (PTI) —The All-India consumer price index number for agricultural labour and rural labour base 1986-87-100 registered an increase of three points during the month of May and stood at 298 and 299 respectively, Labour Bureau sources here said.

Reliance
NEW DELHI, June 21 (PTI) — Reliance Industries Ltd (RIL) will announce its first quarter (April-June) unaudited results for the financial year 1999-2000 on July8, the company said in a statement here today. RIL is the largest private sector company with sales of Rs 14,553 crore in 1998-99 and the net profit of Rs 1,704 crore.

Usha IT centre
CHANDIGARH, June 21 (TNS) — The Rs 4000 crore Usha group today launched a computer training centre here under the name IITM (Institute of Information Technology Management). IITM will offer courses leading to Oracle and Microsoft certification. Specialised courses will also be available on web designing and development leading to a Web Master Certification. Each centre will have facilities like Internet connectivity, Pentium systems, NT-based LAN, and latest softwares. The centre will also provide a placement cell, said a company release here today.

Spinfed
CHANDIGARH, June 21 (TNS) — The Spinfed and Spinning Mills Officers Association met here yesterday and discussed problems of the cooperative spinning mills. It said three of the cooperative spinning mills in Malout, Mansa and Kotkapura have been brought into liquidation and the fourth — Barnala Cooperative Spinning Ltd., Tappa — is lying closed for want of funds.

Hafed aid
CHANDIGARH, June 21 (TNS) — Haryana State Coop. Supply and Marketing Federation Ltd.(Hafed) has contributed Rs 25 lakh for the Chief Minster’s Relief Fund as contribution of Hafed in the noble effort of State Government to provide assistance to the armed forces engaged in Operation Vijay in the Kargil sector. This was announced here today by Mr P K Chaudhery, Managing Director, Hafed.