Tuesday, May 11, 1999
today's calendar
|
B U S I N E S S | Tuesday, May 11, 1999 |
| weather n
spotlight today's calendar |
|
|
Govt allows IA's part
privatisation NEW DELHI, May 10 — The Cabinet Committee on Economic Affairs today approved a major revival package for the ailing Indian Airlines. Maruti reschedules board meeting |
|
|||||
|
Tata group eyes Internet
market Harco Bank to loan Rs 1860 crore Union Bank aims 4000 crore
advances African participation welcome:
Dhumal Crisil lowers HM rating Corporation Bank PFC plans to raise fund |
|||||
  |
||||||
Government allows part
privatisation of Indian Airlines NEW DELHI, May 10 — The Cabinet Committee on Economic Affairs (CCEA) today approved a major revival package for the ailing Indian Airlines. Under the package, the government has decided to release Rs 325 crore as equity injection to Indian Airlines and has permitted the domestic carrier to mobilise funds from the capital market through Initial Public Offering and/or any other modalities available for restructuring. The decision to inject addition government equity was taken as it was felt that the company’s present share capital of Rs 105 crore was too low. Injection of the substantial public equity would have to be balanced by a similar injection from the Government as it was necessary to bolster public confidence in the capital market. The approval would enable Indian Airlines to access the capital market to meet the cost of induction of fresh aircraft as well as part privatisation by dilution of Government equity. The CCEA also approved a further moratorium of two years on payment of outstanding dues by Indian Airlines in view of its serious liquidity position. Indian Airlines was in the midst of financial crisis when the merger of Vayudoot Ltd was announced in May 1993. This had added to its mounting losses and further worsened its working capital deficit. The restructuring of the Indian Airlines was looked into by a committee headed by Dr Vijay Kelkar, who is presently the Union Finance Secretary. The Kelkar Committee, set up in 1995, suggested a two-phased turnaround strategy for the airlines. The first phase involved financial restructuring, which included capital injection of Rs 922 crore in form of compensation, subordinated loans, equity and contribution by Indian Airlines and its employees. Out of this, the Committee had recommended that the Government should provide Rs 475 crore. Other recommendations in the first phase included fleet planning, route rationalisation and human resource management. In the second phase, it was recommended that the airline would make an Initial Public Offering to mobilise funds from the market. The projected shareholding of the government in the company after the restructuring was expected to come down to 49 per cent. The Indian Airlines employees would hold 10.6 per cent of equity while the public would hold 40.4 per cent. Indian Airlines earned a revenue of Rs 2522.50 crore by carrying 6.3 million passengers during 1997-98. The Cabinet Committee on Economic Affairs also approved an expansion project of Punjab’s pride —Naya Nangal — known commercially as the urea plant of National Fertiliser Limited. The CCEA approved the investment proposal of National Fertiliser Ltd to expand the existing capacity of urea at their Nangal unit in Punjab by 450 tonnes per day at an estimated cost of Rs 135.13 crore with a foreign exchange component of Rs 79.96 crore and completion cost of Rs 143.22 crore with a foreign exchange component of Rs 86.83 crore. Apart from the CCEA, the Cabinet Committee on Prices also met here. The CCP reviewed the production, availability and price trends of essential commodities, including wheat, rice, sugar, pulses and vegetables. The CCP felt that the price situation was satisfactory with inflation rate at 3.92 per cent as on April 24. In November this figure was 8.85 per cent. The Committee directed close monitoring of production, availability and price in consultation with State Governments and the field agencies of the State and Centre. The CCP also approved
continuing the procurement of rubber by STC. The STC
would continue to procure upto 20,000 tonnes at
prevailing market prices but it would not exceed Rs 34.05
per kg. This would help arrest a further drop in prices
and ensure remunerative market prices for the growers. |
Maruti reschedules board meeting NEW DELHI, May 10 (UNI) — The board of directors of Maruti Udyog Limited (MUL) has called off a meeting, scheduled for tomorrow as all directors are busy with the recent developments that have taken place in the light of the Supreme Court’s decision on Euro emission norms. The meeting has been rescheduled and the next date is yet to be fixed, company sources told UNI here today. The sources further pointed out that the meeting was not convened to chalk out the future course of action to meet the Euro emission norms. “The date was finalised at the previous Board meeting itself and it was part of the regular quarterly meet to discuss accounts and budget for the year.” “However, now with he recent developments, the Directors have been busy. So the board meet for tomorrow has been postponed by a week or two,” the sources added. Maruti is the worst hit by the recent Supreme Court directive as none of its vehicles even meet the Euro-I emission norms. The company is working hard to meet the prescribed emission norms, senior officials said. Senior officials from Maruti Udyog Limited, including Managing Director R.S.S.L.N. Bhaskarudu, have held high level meetings with top functionaries in the Ministries of Industry and Environment seeking immediate intervention to resolve the crisis arising out of the court’s order. Besides, the company officials are also planning to fit imported engine management system kits into the existing vehicles to make them Euro-II compliant, which would result in around Rs 30,000 per unit hike in production costs. “The kits are
presently being fit only on the cars which are being
exported from India. In order to meet the July 1, 1999
time table set by the apex court, we will have to fit
these kits on to 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 said. |
Tata group eyes Internet market HYDERABAD, May 10 (PTI) — Tata Group plans to enter the Internet market as a service provider, Director of Tata Teleservices Limited (TTL), the basic telephone service provider in Andhra Pradesh, S. Ramakrishna said today. “We are examining the matter and TTL would assist the venture in Andhra Pradesh,” he told reporters here. Earlier, Tata group Chairman Ratan Tata told a gathering including the Chief Minister N. Chandrababu Naidu on the occasion of TTL crossing 1000 customers mark, that the company aimed to become a complete communication provider by offering a wide range of value added services, ISDN, Voice Mail, Centrex, Data Services and leased lines in a phased manner. TTL’s investment in the State over the initial licence period of 15 years would be in the range of $ 2 billion, the largest single investment of the group, he said. “Our partnership with the State Government would be expanded to other areas also,” Tata said. TTL did not want to become a competitor to the department of telecommunications but would like to work as a partner to expand the telecommunication net-work in the country, he said. A joint venture of Tata group, Bell Canada International and American International group, TTL would deploy state-of-the-art technology from Lucent Technologies Inc to construct the core network infrastructure. The service would be commissioned in Vijayawada and Visakhapatnam by the end of this year and in five to seven years, it would be expanded to all parts of the state, Ramakrishna said. The company’s objective was to carve out 45 per cent of the total market share in 10 years time and capture 50 per cent of the new business, he said. TTL expected a revenue
of Rs 10 crore during the current fiscal and planned to
enrol 20,000-25,000 new subscribers during the period, he
added. |
Harco Bank
to loan Rs 1860 crore CHANDIGARH, May 10 — The Haryana State Cooperative Apex (HARCO) Bank has planned to disburse Rs 1860 crore as loan during 1999-2000. The Harco Bank was adjudged as the best cooperative bank in the country. The cost of management of the bank is only 0.47 per cent which is lowest in the country. The Prime Minister, Mr Atal Behari Vajpayee, gave away the second best performance award to HARCO Bank carrying a trophy, merit certificate and a prize of Rs 3 lakh at New Delhi recently. This award was received by the Chairman of the bank, Mr Om Parkash Jain, MLA, and its Managing Director, Mr R.R. Banswal. The HARCO Bank has been selected for this award for growth in business, improvement in the human resource development, better funds management and improvement in the banking system and procedure. There has been unprecedented growth in the business of HARCO Bank and also of Central Cooperative Banks. During the last two years, the deposits of the bank has increased from Rs 436 crore to Rs 680 crore. Similarly, loans advanced by the bank has increased from Rs 1136 crore to Rs 1547 crore. The working capital has increased from Rs 1026 crore to Rs 1583 crore. The profit of the bank has also increased to Rs 17 crore during the last financial year. The performance of the
central cooperative banks has also been adjudged as
outstanding as their business has increased manifold.
During the last two years, the deposits of the central
cooperative banks increased from Rs 721 crore to Rs 1100
crore, loans increased from Rs 1718 crore to Rs 2000
crore. The working capital of these banks has also been
increased from Rs 1795 crore to Rs 2338 crore. The bank
also earned a profit of Rs 19 crore during the last
financial year. |
Union Bank aims 4000 crore advances MUMBAI, May 10 (PTI) — Public sector Union Bank of India is targeting an ambitious Rs 4000 crore net advances, including Rs 2000 crore for trade finance, as part of its business expansion strategy for fiscal 1999-2000. “We have set a target of Rs 4,000 net advances for the current fiscal and Rs 2,000 crore of this would be for trade finance,” Union Bank of India Chairman and Managing Director A.T. Pannir Selvam told PTI. This would be a steep
climb for the bank’s lending graph which had
averaged between Rs 1,000-1,500 crore in the past few
years, and would raise the bank’s net outstanding
advances from Rs 12,000 crore (as on March 31, 1999) to
Rs 16,000 crore, he said. |
African
participation welcome: Dhumal SHIMLA, May 10 — The Chief Minister, Mr Prem Kumar Dhumal, has said that the Himachal Pradesh Government will welcome the participation of African countries in hydel generation, tourism development and industrial development of the state, especially the setting up of fruit-based industries. He was speaking to a group of African ambassadors and high commissioners who called on him here last evening. They included the ambassador of the Federal Democratic Republic of Ethiopia, His Excellency Mr Desto Erifo, the High Commissioner of the Republic of Namibia, His Excellency Mr Joel Kaapanda, His Excellency Mr D.K. Pillay, High Commissioner of Uganda, Mr Joseph Tomusange, High Commissioner of the Republic of Zambia, Mr S.K. Mubukwanu and the acting High Commissioner of Kenya, Ms Agnes Mandi. They were here to participate in a summit on “Indo-African business relations in the next millennium” organised by the PHD Chamber of Commerce and Industry Mr Dhumal informed them that Himachal Pradesh had over 21000 mw of identified hydel potential which comes to about one forth of the entire country and the state government intend to harness these within next 10 to 15 years to generate resources and had decided to attract private sector investment from within and outside the country in a big way. He said it had been decided to set up fruit-based industries in the state as state produced over 4 lakh tonnes of fruits at present which was likely to go up over 12 lakh tonnes in next 10-15 years. He said other industries based on local raw material and which were environment friendly would also be encouraged. He urged the African dignitaries to consider setting up such industries in Himachal Pradesh. Mr Dhumal said the new industrial policy of the state provides for escort services and single man clearances for setting up of new ventures in Himachal Pradesh. Himachal Pradesh has further introduced efficiency linked incentives for such industries which would come into operation before schedule time which African ambassadors and high commissioners appreciated. The Chief Minister apprised them of the development the state had made in various fields and also the new schemes introduced by the present government during last one year. They evinced keen interest in these schemes and complimented the Chief Minister. He thanked the PHD Chamber of Commerce and Industry for giving its attention to expose Himachal at various forums and for giving fruitful suggestions. Mr Ashok Khanna,
President, PHD Chamber of Commerce and Industry, said
that endeavour of the chamber was to project Himachal
Pradesh at national and international level to attract
investment in Himachal Pradesh and has decided to take up
role of facilitator to the state government. |
Corporation
Bank CHANDIGARH, May 10 — Corporation Bank, Chandigarh region unveiled its business plan for the financial year 1999-2000 here. Mr M R Umarji, Executive
Director of the bank said that enthused by the
encouraging performance in 1998-99, the bank has set a
business goal of Rs 25,000 crore for March 31, 2000. He
said the region has set target of Rs 630 crore of
business and is confident of surpassing the goal by a big
margin. |
|
MUMBAI, May 10 (PTI) — The rating assigned to the Rs 53.74 crore fully convertible debenture (FCD) issue of Hindustan Motors Ltd (HML), flagship company of the C.K. Birla group, has been downgraded by the Crisil from ‘BBB’ to ‘C’, implying substantial risk associated with the instrument. The revised rating reflects a sharp deterioration in the company’s risk profile due to declining automobile sales owing to the delay in the revival of the demand in the domestic automobile industry, Crisil said. The company’s large ongoing debt funded capital expenditure programme and its entry into the premium car segment, where the demand has been lower than anticipated, have all been factored into the rating, Crisil said in a statement here today. The rating agency added
that the above factors had a significant impact on the
company’s profitability and strained its cash flows
and ability to honour financial obligations in the
future.
|
|
NEW DELHI, May 10 (PTI) — Power Finance Corporation (PFC) plans to raise about $250 million (Rs 1000 crore) from the overseas market in the current fiscal as part of its efforts to mobilise resources for funding the power utilities. “We have planned a
total resource mobilisation of Rs 2,000 crore during the
current fiscal out of which Rs 1,000 crore will be mopped
up from domestic market and the rest through the external
commercial borrowings route (ECB),” Chairman and
Managing Director of PFC Uddesh Kohli told PTI. |
| H |
|
||
| Gold falls NEW DELHI, May 10 (PTI) — Both the precious metals, silver and gold, dropped further on the bullion market on stockists selling influenced by lower overseas advices. A sharp fall in gold prices in the overseas market mainly made an impact on the market sentiment, marketmen said. The quotations: Silver .999 (ready) 7960, delivery 7960, coins buyer 10.500 and seller 10.700. Standard gold 4330, ornaments 4180 and sovereign 3750. Y2K awareness Office bearers Awards
|
 |
 |
| Nation
| Punjab | Haryana | Himachal Pradesh | Jammu & Kashmir | | Chandigarh | Editorial | Sport | | Mailbag | Spotlight | World | 50 years of Independence | Weather | | Search | Subscribe | Archive | Suggestion | Home | E-mail | |
