Mohali IT Park: M&M drags feet
CHANDIGARH, May 5 — Mahindra and Mahindra, which was chosen by the Punjab Government to develop an Information Technology Park at Mohali, is said to be having second thoughts about the viability of the project, it is learnt.

Court penalises Sagar Suri Estates
NEW DELHI, May 5 — Real estate company Sagar Suri Estates and Finance Ltd has been penalised by a Delhi consumer court for failure to return depositors’ money on maturity.

FACT pays dividend
NEW DELHI, May 5 — The Fertilisers and Chemicals Travancore Limited (FACT) has given the Union Government a dividend of Rs 17.27 crore for the year 1997-98.

Centre announces borrowing norms
Tribune News Service

NEW DELHI, May 5 — The Centre today announced the guidelines on External Commercial Borrowings (ECB) for the year 1999-2000.

The new guidelines, tuned to the changes in the external financial markets, has specified that ECB eligibility under the Exporter’s/Foreign Exchange Earners Scheme would be upto a maximum of $ 200 million.

For long term ECB scheme, the guidelines say that the maximum eligibility for ECB under this window, which would be outside the annual ECB cap, would be as follows:

— Upto $ 200 million for borrowings with average maturity of eight years.

— Upto $ 400 million for borrowings with average maturity of 16 years.

Bonds, debentures, FRNs and other such instruments would have additional validity period of three months for all the ECB approvals across the board.

Regarding prepayment of ECBs, the guidelines say that in addition to prepay ECB through inflow of foreign equity, prepayment of ECBs would be permitted through the following two options:

— on permission by the Government, prepayment may be undertaken within the permitted period, of all ECBs with residual maturity up to one year or,

— prepayment up to 10 per cent of outstanding ECB, to be permitted once during the life of the loan, subject to the company complying with the ECB approval terms. Those companies who have already availed prepayment facility of 20 per cent earlier, however, would not be eligible.

The guidelines also specify that validity of permission under the two options would not be for more than 15 days.

Regarding credit enhanced schemes for structured obligations, the following guidelines would be applicable to rupee denominated structured obligations credit enhanced by international banks, international financial institutions and joint venture partner:

— in the event of default, foreign banks giving guarantee will make payment of defaulted amount of principal and interest after bringing in the equivalent amount of foreign exchange into the country.

— FERA clearance should be obtained from RBI in advance of issuance.

— prior clearance for rupee bonds/debenture issue from RBI/SEBI should be obtained.

— in the event of default, the default should be foreign exchange equivalent amount equal to the principal and interest outstanding calculated in rupee terms.

— the liability of Indian company would always be rupee denominated and the debt servicing may be done in equivalent foreign exchange funds.

— The guarantee fee/commission/charges and other incidental expenses to the Indian company should be in rupee terms only. All-in-cost on this account should not exceed three per cent in rupee terms.

— in case of the proposals relating to sectors where conditions apply clearances like relating to assignability of licenses etc. should be obtained in advance.

— in case of default, the interest rate could be coupon on the bond over prevailing secondary market yield of five-year Government of India security, whichever is higher.

These changes in the guidelines would be applicable with immediate effect, a Finance Ministry note said. It said a consolidated brochure on ECB guidelines incorporating the changes would be brought out shortly for the convenience of borrowers and investors.

Mohali IT Park: M&M drags feet
Tribune News Service

CHANDIGARH, May 5 — Mahindra and Mahindra, which was chosen by the Punjab Government to develop an Information Technology Park at Mohali, is said to be having second thoughts about the viability of the project, it is learnt.

This is the second time M & M is dragging its feet from a Punjab project. Earlier, it had announced, and then shelved, a tractor project.

Punjab Industries Secretary Ramesh Inder Singh had announced a few days ago that an MoU would be signed shortly with M and M regarding the development of the Mohali IT Park.

The M and M withdrawal, if it materialises, would further delay the Mohali project and cause a setback to Punjab’s efforts on the IT front. M and M, it is believed in corporate circles, finds the project not profitable enough.

The Punjab Chief Minister was to make an announcement to this effect at a CII conference on Information Technology being held here from May 7 to 9. According to latest information, Mr Parkash Singh Badal will not attend the IT conference being organised jointly by the CII and the Manufacturers’ Association of Information Technology with the “support” of the Punjab State Electronics Development and Production Corporation Ltd.

The conference, titled “IT+E-Com’99” will focus on the “Role of IT in agriculture” and “Making it happen in North India.

Prominent among those who will address the IT conference are Mr Ravindra Gupta, Secretary, Union Department of Electronics, Mr Rakesh Singh, Managing Director, Electronics Corporation of Punjab (ECP); Mr Shekhar Dasgupta, Country Manager, Oracle Software India Ltd; Mr Tanmoy Chakrabarty, Vice-President, Electronic Data Systems (India) Pvt Ltd; and Mr Nimal, Chief General Manager, Videsh Sanchar Nigam Limited.

Euro-II to cost Telco 50,000 per car

NEW DELHI, May 5 (UNI, PTI) — Telco has estimated an increase of about Rs 50,000 in the production cost per vehicle for making its passenger cars, particularly Indica, conform to Euro-II emission norms.

Telco sources told UNI here today that the company is working aggressively towards making all its passenger vehicles Euro-II compliant. “Though no dates can be given at present, we are confident of making our vehicles meet the emission norms soon,” the sources added.

The cost hike would be by way of several modifications and imports which the company would have to resort to for meeting the norms as per the Supreme Court order. However, it is yet to be decided whether the cost hike would translate into an increase in the final price tag of the vehicle.

Uno price hike?

Ind Auto Limited has decided to restrict till 1999-end sales of Uno in the National Capital Region (NCR) as the car will be made Euro-ii compliant only by the year-end.

Talking to UNI, Mr Gianni Ravina, Executive Director of Ind Auto, a joint venture between Fiat and Premier Automobiles Limited, also hinted at a possible hike in the prices of the Uno by the year-end.

The company’s Siena already meets the Euro-II norms. “The petrol version is already Euro-I compliant while with slight modifications, the diesel version will also clear the norms,’’ he said adding that the price tags of Siena will not be altered.

The effort to make the Uno Euro-II complaint will mean a Rs 20,000-30,000 hike in the production cost per vehicle and this may result in a hike in the price of the vehicle. “But the exact hike is yet to be finalised.’’

Maruti ‘can’t’ do it

Maruti Udyog said it will not approach the Supreme Court directly, but seek government help for a modification in the Supreme Court’s recent order on Euro-I norms.

MUL will not move the apex court for modifications in the guidelines as the order does not permit it to do so, top company sources said, adding that any review petition could be filed only by the government and the company was seeking Industry Ministry’s help for taking up the industry’s case.

The apex court’s April 29 order does say that, “at the request of the learned Additional Solicitor General, we grant liberty to the Union of India to seek verification or modification of this order, if on the basis of some data, it is considered necessary to do so.”

Govt non-committal

The Industry Ministry is non-committal on moving the Supreme Court seeking “modification or variation” of the Supreme Court’s order.

Though the Ministry has taken cognisance of the adverse impact the order will have on the Maruti Udyog bottomline in which the government has a 50 per cent stake, the officials have sought to put the ball in MUL’s court.

When contacted by PTI, Department of Heavy Industries Secretary P. Shankar declined to comment saying it is an issue which has to be decided by the Maruti Board and other auto companies.

Another senior Ministry official also echoed the same view and said the MUL management has to take a decision on the next course of action.

Carrier Aircon to increase capacity

NEW DELHI, May 5 (UNI) — Carrier Aircon Limited today announced plans to increase its production capacity and projected a turnover of Rs 1,000 crore by year 2001, up from Rs 400 crore in 1998-99.

In the current year, said the company’s President and Managing Director Stephen Young, the production of window room airconditioners is planned to go upto one lakh units from the present 75,000.

“At the same time, we will increase the production of compressors from 1.5 lakh units to two lakh units per year.’’

Mr Young said Carrier Aircon plans to invest Rs 10 crore to Rs 15 crore every year in the near future for buying new capital equipment. The company has three factories across the country one each in Gurgaon, Silvassa and Daman.

Xerox Modi plans to issue bonus shares

NEW DELHI, May 5 (PTI) — The Boards of Modi Xerox Ltd and Modi Xerox Financial Services Ltd have decided to amalgamate the two companies into Xerox Modi Corp Ltd and give an open offer for the shares held by the public in the two companies.

Modi Xerox and Modi Xerox Financial Services, both listed companies, would be unlisted after the amalgamation with Xerox Modi Corp, the company said in a statement here today.

The Board of Directors of Xerox Modi Corp would give an open offer to the existing shareholders of both the companies before the amalgamation, the statement said.

The statement said the Board of Xerox Modi has also decided to issue bonus shares to the existing shareholders by capitalising reserves and increasing the share capital to Rs 25 crore.

Court penalises Sagar Suri Estates

NEW DELHI, May 5 (PTI) — Real estate company Sagar Suri Estates and Finance Ltd has been penalised by a Delhi consumer court for failure to return depositors’ money on maturity.

Delhi District Consumer Redressal Forum-VI ordered the company to pay penal interest of 18 per cent on the amount and to remit the principal and interest in two months from the day of the court orders.

“Since the amounts have not been paid to the complainants on maturity of fixed deposit receipt, we hold the respondent guilty of deficiency in service,” the court President S.P. Saberwal and member Sushma Yadav said in their judgement.

Sagar Suri Estates and Finance is a real estate developer which has projects for building condominiums.

FACT pays dividend
Tribune News Service

NEW DELHI, May 5 — The Fertilisers and Chemicals Travancore Limited (FACT) has given the Union Government a dividend of Rs 17.27 crore for the year 1997-98.

The Chairman and Managing Director of FACT, Mr V.N.Rai, presented a cheque for the amount to the Union Minister for Chemicals and Fertiliser, Mr Surjit Singh Barnala. The amount represents 5 per cent payout by the fertiliser PSU. The government holding in the company is to the extent of 34,54,65,200 shares of Rs 10 each.

As on March end, 1998, the paid-up capital of the company was Rs 354.77 crore against an authorised capital of Rs 500 crore.

Pak to spare businessmen

ISLAMABAD, May 5 (ANI) — The Nawaz Sharif government will soon introduce legislation prohibiting the identification of income tax and wealth tax assessees belonging to the business community.

Announcing this on Tuesday Finance Minister Ishaq Dar said the legislation would be introduced in the form of a Money Bill.

Dar said the decision not of expose the tax assessees was taken after receiving many complaints of harassment from the business community.

Fujitsu India
Tribune News Service
CHANDIGARH, May 5 — Fujitsu India Telecom Ltd., Mohali, has been awarded ISO 14001 certification. The plant was certified recently for its eco-friendly business operations at the Mohali site for manufacturing large-size digital switching systems.

SBI branch
Tribune News Service
CHANDIGARH, May 5 — Mr T.S. Bhattacharya, General Manager, SBI (Commercial Banking) today inaugurated a specialised hosiery branch of the bank at Sundar Nagar in Ludhiana. Mr Bhattacharya also inaugurated a seminar on ‘technology up-gradation in hosiery industry’.

Ray-Ban contest
Tribune News Service
CHANDIGARH, May 5 — Ray-Ban today launched The Channel (V) Ray-Ban Hollywood Star Contest. Four winners will receive a once-in-a lifetime opportunity to play a walk-on part in a coming 20th Century Fox movie.

IIHT centre
Tribune News Service
LUDHIANA, May 5 — Mr Apinder Singh Grewal, Mayor of Ludhiana launched the Ludhiana centre of the Indian Institute of Hardware Technology (IIHT)) here today. The centre will offer courses in computer hardware engineering, computer software engineering, network and Internet, telecommunication, robotics and laser technology.

Coolex ’99
Tribune News Service
LUDHIANA, May 5 — Coolex’99, an exposition on air-conditioning and refrigeration, is being organised for the first time by the CII here from May 7 to 9.