Tuesday, May 4, 1999
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B U S I N E S S | Tuesday, May 4, 1999 |
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Construction business
grows 100 pc : survey Maruti cars may cost 30,000 more |
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SBP deposits rise 21.66 pc PATIALA, May 3 — The deposits and advances of State Bank of Patiala have grown by 21.66 per cent and 16.28 per cent respectively over the previous year against a growth of 19.30 per cent and 13.70 per cent respectively of all scheduled commercial banks during the same period. HDFC
net profit increases 14 per cent India mandate not to be ready for
WTO meet Seminar on managing industry Sahara to float regional network Punjab tops index for
competitiveness |
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Construction business grows 100 per cent: survey NEW DELHI, May 3 (UNI, PTI) — The country’s construction business posted a 100 per cent growth in exports in the period April-March 1998-99 over April-March 1997-98 while most of the sectors in the auto industry projected negative rates in the same period, a latest business survey has indicated. The construction of projects leaped from 20.4 per cent to the current cent per cent figures. An Ascon industry survey has said that software goods was another sector having an excellent export growth touching a high of 60 per cent. Drugs and pharmaceuticals increased from 15 per cent to 20 per cent. Tea had a high per centage of 39 per cent. Processed fruit and vegetables went up to 20 per cent from 19.4 per cent. High growth in exports were indicated by auto components, polyster firmament yarn, electronic components, transmission line towers, earthmoving equipment and three-wheelers which went up from minus 15 per cent to plus 14 per cent. Malted food went up from 2.8 per cent to 17 per cent. Cement, steel,cold rolled steel, aluminium, phosphate fertilisers, cold rolled steel, textile machinery, telecom equipment and diesel engines were among the goods that recorded negative growth. Cement slumped from a plus 63.6 per cent to minus 20 per cent. Steel too went down from plus 26 per cent to minus 28 per cent. Cold rolled steel from 30.9 per cent plus to minus 28 per cent. Aluminium from 10 per cent high to a minus 20 per cent Light commercial vehicles were hit the hardest recording a poor minus 32 per cent from an 11 plus. Mopeds went down from 4 per cent plus to minus 28 per cent. Scooters which were doing well at plus 26 per cent, went down minus 5 per cent. Export growth in cars remained a low minus 14 per cent. Auto-tyres went down minus 5 per cent from a plus 19 per cent. In the intermediate goods sectors, ball and roller bearings went down from a plus 161 per cent to minus 11 per cent. Moderate growth of exports has been posted by ceramics, consumer electronics, colour tv, glass products, refrigerators, export cargo and processed food. The survey listed economic slowdown, fluctuating value of the rupee, South East asian crisis, high raw material costs, liquidity crunch and project delays due to uncertain economic environment among the principal reasons for poor performance of most of the industrial sectors during the year. It also revealed the dismal export performance by most of the industries mainly due to inadequate infrastructure, high freight charges, lack of focus in the exim policy and abberations in duty structure. Citing the case of cigarette and tobacco sector, which has posted a negative 28 per cent growth in exports in 1998-99 from 43 per cent in the previous year, the Ascon industry monitor said the poor performance was due to continued absence of a domestic base for exports and exclusion of India from the US tariff rate quota system. Economic slowdown, emanating mainly from a demand recession, took a heavy toll on sales with only three sectors — ACs, motor cycles and newsprint — posting over 20 per cent growth during the year. Most of the basic,
capital and intermediate goods posted either a negative
or moderate sales growth of less than 10 per cent during
1998-99. |
SBP
deposits rise 21.66 pc PATIALA, May 3 — The deposits and advances of State Bank of Patiala have grown by 21.66 per cent and 16.28 per cent respectively over the previous year against a growth of 19.30 per cent and 13.70 per cent respectively of all scheduled commercial banks during the same period. The priority sector advances stood at 42.83 per cent of net bank credit which is well above the RBI benchmark of 40 per cent. During the year, the bank made disbursements exceeding Rs 500 crore under direct agricultural finance, thereby showing an increase of 64 per cent over the previous year disbursements as against the requirement of 25 per cent as per RBI guidelines. For the year 1999-2000,
the bank has planned a business growth of Rs 3,200 crore
representing an increase of 23 per cent. It has also
decided to make disbursements of Rs 700 crore during the
current year under direct agricultural advances. |
HDFC net profit increases 14 per cent MUMBAI, May 3 (PTI) — Premier housing finance company, HDFC Ltd has posted a net profit of Rs 333.90 crore for the year ending March, 1999, up by 13.82 per cent from Rs 293.36 crore during the previous year. HDFC registered a 21.57 per cent rise in its operational income at Rs 1,746.87 crore from Rs 1,436.91 crore the previous year, while other income has come down by 24.58 per cent from Rs 7.77 crore to Rs 5.86 crore, HDFC said in a statement here today. Interest expenses had gone up during the year to Rs 1250.47 crore from Rs 983.80 crore in the previous year. Other expenses rose to Rs 63.59 crore from Rs 59.96 crore. Depreciation and provision for taxes were marginally down at Rs 49.77 crore and Rs 55 crore as against Rs 50.56 crore and Rs 58 crore, respectively, for the previous year. The corporation also posted improved performance during the quarter ending March 1999, with Rs 108.78 crore of net profit as against Rs 95.37 crore during the same period last year. Approvals during 1998-99
grew by 25 per cent aggregating Rs 4071.76 crore as
compared to Rs 3251.27 crore during the previous year,
while disbursements went up by 24 per cent to Rs 3424.27
crore against Rs 2753.61 crore last year, the release
added. |
Maruti
cars may cost 30,000 more NEW DELHI, May 3 — Senior officials from Maruti Udyog Limited (MUL), including Managing Director R.S.S.L.N. Bhaskarudu, today held meetings with top functionaries in the Ministries of Industry and Environment seeking their immediate intervention to resolve the crisis arising out of the recent Supreme Court directive on emission norms. MUL plans to fit imported engine management system kits into the existing vehicles to make them Euro-II compliant. This may result in around Rs 30,000 per unit hike in production costs. As a result, vehicles are likely to be dearer by about Rs 30,000 per unit in the National Capital Region (NCR) in case the company decides to pass on to the consumer the hike in the production cost. “The kits are at present fit only in cars which are exported from India. To meet the July 1, 1999, deadline set by the apex court, we will have to fit these kits into the vehicles being sold in the domestic market, particularly in the NCR. This would result in a cost hike of about $ 600-700 per unit,” company sources told UNI here. However, a final decision is yet to be taken on whether the entire cost hike would be passed on to the consumer. Besides, it is also yet to be decided whether the imported kits would be fit on all vehicles or only those sold in the NCR. “Logically, we would be doing it only for the NCR region cars. But a decision is yet to be taken.” The technology, the
sources added, is available with the company. |
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NEW DELHI, May 3 (PTI) — Maruti Udyog Ltd (MUL) has stopped delivery of cars to its dealers in the national capital region (NCR) following the Supreme Court’s order banning registration of private non-commercial vehicles without conformity to Euro-I emission norms from June 1 and is contemplating a review petition for seeking more time. Officials of MUL, in which the government and Suzuki Motor Corporation of Japan are equal partners, are already in touch with the Industry Ministry and other departmetns concerned, company sources indicated today. In the wake of the apex
court verdict, the Delhi Government has put a temporary
ban on registration of new vehicles as it is yet to
finalise modalities related to registering limited number
of vehicles. |
Pakistan sets conditions for MFN status to India NEW DELHI, May 3 (PTI) — Pakistan has asked india to sort out licensing and restriction issues before the former extends the most-favoured nation (MFN) status to New Delhi in trade as per the WTO norms. “MFN, in principle, has been acknowledged as an obligation for being a WTO member. But there are practical issues which need to be negotiated between the two countries,” Pakistan High Commissioner Ashraf Jehangir Qazi said, addressing a PHDCCI meeting here today. Stating that there were larger problems in according MFN status to India in trade, he said these related to “licensing arrangement and restriction of trade besides other related issues”. Indo-Pakistan bilateral trade can touch Rs 10,000 crore by the first few years of the next century but India should open up its market more for Pakistani products vis-a-vis Islamabad. Bilateral trade should have reasonable amount of balance and disputes between the two countries should be dealt with in a realistic manner and an open mind. “We are exploring the kind of items that can be sold to the indian market and I hope the Lahore declaration between the Prime Ministers of the two nations will help foster better trade,” Qazi said. It is an obligation on part of WTO-member nations to extend MFN status to other countries which are members of the multilateral trade body. Though India extended MFN status in trade to Pakistan two years ago, Pakistan is yet to reciprocate. The issue has figured in almost all Indo-Pakistan bilateral meetings but Islamabad has been non-committal saying it would extend the status soon. However, Pakistan is seeking increased market access into India before extending MFN status. It says that the balance of trade with India is in favour of New Delhi and wants India to import more products from Islamabad. Though bilateral trade between both nations is around Rs 800 crore annually, unofficial trade is reported to be 10 times higher. India can haul Pakistan
to the WTO on the issue but has chosen to negotiate it in
an effort to improve the strained relations between both
nations. |
India mandate not to be ready for WTO meet NEW DELHI, May 3 (UNI) — India’s negotiating mandate on trade in an e-commerce environment is unlikely to be ready for the WTO ministerial meet in November, 1999, Mr N.N. Khanna, Special Secretary, WTO in the Commerce Ministry, said. Mr Khanna attributed this to the slow progress in this area due to the complexity of the matter. “Even within the larger framework of WTO negotiations, a lot of work still needed to be done in order to establish a comprehensive framework governing trade in an e-commerce environment,” Mr Khanna said at a meeting organised by the CII here today. India should ensure that
a cmprehensive framework governing trade through
electronic media is chalked out under the WTO framework,
he added. |
Seminar on
managing industry PATIALA, May 3 — By encouraging interface between industry and education institutes, the State can better hope with the changing requirement of business employment as well as that of society. Stating this, while inaugurating a seminar on managing industrialisation, in Punjab organised by the Department of Business Management, Punjabi University here today, Mr Sucha Singh Langah, State Minister for Industry, said the Punjab Government is endeavouring to involve big industrialists as well non-resident Indians in the industrialisation of Punjab. Dr Joginder Singh Puar, Vice-Chancellor, Punjabi University, said vocationalisation of education could succeed only if industrialists provided training facilities to students. Mr D.S. Guru, Director, Industries, Punjab, stressed the need for reorientation of Punjab industries as the State had better infrastructure than other regions. He said the establishment of Udyog Sahayok is a major step in the speedy clearance of the formalities for setting up an industry. Mr Guru also discussed the locational disadvantages which the Punjab industry was facing, besides other problems. Mr S.S. Brar, M.D., Punjab State Industrial Development Corporation, said Punjab is ranked 14th in industrial development in the country. Capt Narinder Singh,
M.D. PSIEC, said that Punjab provides a congenial
environment for the development of industry. He
highlighted the role of PSIEC in providing infrastructure
for industry.
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Sahara to
float regional network NEW DELHI, May 3 — The Sahara Airlines Limited (SAL) is all set to tap the regional air routes in a major way. Top company officials today said that SAL will be inducting 12 Turboprop aircraft in a phased manner by beginning of October 1999. The airline has selected the Brazilian 30 seater Embraer 120 for its regional operations. Three aircrafts each will be based at Delhi, Mumbai, Chennai and Calcutta. The network would operate 80 daily flights to 30 destinations. The torboprop operations will cover 12 destinations in North India including Chandigarh and Amritsar in Punjab. The other major destinations in region include Udaipur, Varanasi, Lucknow and Jaipur among others. Director of SAL, Mr Parvez Damania said that preliminary demand estimations have indicated that 30 seater aircrafts will have “huge demand”. SAL has also added to its fleet the new generation B 737-700 Boeing aircraft. This aircraft will have a configuration of 12 business class seats and 114 economy class seats and will operate on Mumbai-Delhi-Mumbai sector. On SAL’s recently
announced substantial reduction in passenger fares of
major routes, Mr Damania said the reduction in prices was
not based on the Indian Airline shuttle service between
Mumbai and Delhi. |
Punjab tops index for competitiveness NEW DELHI, May 3 (UNI) — Maharashtra continues to be the most sought-after investment destination in terms of FDI flows and domestic investment proposals, despite bearing the heaviest load of taxes per capita at Rs 775, an average for the period 1989-92. An analysis on “Competitiveness among Indian States” released here today reveals that the most favoured State ranks seven in terms of competitiveness out of 15 Indian States. Punjab, followed by Kerala and Haryana occupy the top slots in terms of the States’ competitive index. Bihar (15th) ranks the poorest in terms of competitiveness, preceded by Uttar Pradesh and West Bengal. In the post-liberalisation era (1991-98), Maharashtra and Gujarat have attracted one-third (32.75 per cent) of the total industrial investment proposals in the country, whereas 17 States together failed to manage even 1 per cent. Maharashtra received 7219 industrial investment proposals, while Gujarat got 5350, followed by Tamil Nadu (3732) and Uttar Pradesh. The total share of
Andhra Pradesh, Haryana, M.P., Rajasthan, Punjab and West
Bengal in the total industrial investment proposals was
just 32.35 per cent which was less than the total of
Maharashtra and Gujarat.
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| Forex rates MUMBAI, May 3 (PTI) — The Following were interbank forex and RBI rates (in rupees per unit): U.S. $ Rs 42.76/77 Stg £ Rs 68.93/95 Euro Rs 45.30/32 Jap Yen (100) Rs 35.74/74 The RBI reference rate was Rs 42.78. Gold falls Now plum wine Philips NABARD WTO meeting |
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