Members of the Land Mortgage Bank Employess Union hold a rally in support of their demands in Sector 17, Chandigarh, on Tuesday. — A Tribune photograph

Oriental Bank to pay 35 per cent
NEW DELHI, May 25 — Oriental Bank of Commerce has registered a growth of 27.32 per cent in business turnover during 1998-99 as compared to the previous year.

SBP to come out with public issue by September
CHANDIGARH, May 25 — The State Bank of Patiala has earned a gross profit of Rs 254 crore during the year ended March, 1999, as against Rs 208 crore last year showing an increase of 22 per cent.

Haryana to introduce VAT
NEW DELHI, May 25 — Haryana will take the lead in introducing value added tax among the northern States, Mr OP Mahajan, State Minister of Prohibition, Excise and Taxation, has said.

Farmers to protest against free trade
GENEVA, May 25 — A caravan of 400 farmers from India is setting off from Germany this week on a tour of European countries to denounce the devastating effects of globalisation on the economy.

Escorts signs wage pact
NEW DELHI, May 25 — The Escorts group management today signed a wage settlement agreement with the All Escorts Employees Union following two years of protracted negotiations.

ITC net profit increases 18 per cent
ITC Limited today reported an 18 per cent jump in the net profit at Rs 623.42 crore during 1998-99 compared with Rs 526.20 crore in 1997-98.

Fertiliser subsidy hiked

NEW DELHI, May 25 (PTI) — The government today raised fertiliser subsidy on imported as well as indigenous di-ammonium phosphate (DAP) and muriate of potash (MOP) for the coming kharif season. While the subsidy for imported and indigenous DAP was raised by Rs 200 per tonne, the subsidy on MOP was increased by Rs 250 per tonne.

The Fertiliser Secretary, Mr A.V. Gokak, told reporters that the increase in subsidy on these decontrolled potassic and phosphatic fertilisers was aimed at ensuring adequate availability of the nutrients for farmers.

The revised rates of concession during 1999-2000 to be effective from April 1, 1999, will be of the order of Rs 4600 per tonne on indigenous DAP, Rs 3200 per tonne on imported DAP and Rs 3250 per tonne on MOP.

“The rates of concession for complex fertilisers during 1999-2000 will range from Rs 2588 to Rs 4282 per tonne”, Gokak said.

He said an inter-ministerial group (IMG) has been constituted to examine the report of the Bureau of Industrial Costs and Prices on the cost price study of DAP and MOP.

“This will decide the parameters to be adopted for computation of rates of concession for DAP (indigenous) for 1999-2000 from April 1, 1999”, he said adding that the final rates of concession would be worked out on the basis of the report of the IMG.

Keeping in view the fluctuations in the foreign exchange rates, Gokak said it was decided to index the concession rates on a quarterly basis to the actual behaviour of the exchange rate.

The rates of concession have been fixed taking a foreign exchange rate of Rs 42.85 to a US dollar in the case of DAP (indigenous) and MOP and Rs 42.50 per dollar in case of imported DAP. These rates will be taken as the base for the first quarter of the current financial year.

The final rates of concessions for DAP (imported) and MOP for each quarter will be decided on the basis of the actual average exchange rate (RBI reference rate) relevant for the quarter taking into account only variations of 25 paise or more as compared to the rate adopted for the previous quarters.

In the case of indigenous DAP change in the exchange rate by Re 1 to a dollar will make a difference of Rs 230 per tonne in the cost of production and the rate of concession and quarterly indexing will be made on this basis.

DoT asks Koshika for dues

NEW DELHI, May 25 (PTI) — The Department of Telecom (DoT) today informed the Delhi High Court that interconnection to cellular operators — Koshika and Aircel Digilink — will be restored only after payment of 25 per cent of their licence fee dues in cash and bank guarantee for remaining 75 per cent of the dues.

Additional Solicitor General (ASG) Kirit Raval submitted before Justice M.K. Sharma that the two companies should also undertake to clear their current licence fee regularly and pay charges for restoration of the interconnection.

The four conditions put forward by DoT were not acceptable to Koshika and Aircel Digilink, which offered to pay 20 per cent of the dues and that too through its existing bank guarantee.

Oriental Bank to pay 35 per cent
Tribune News Service

NEW DELHI, May 25 — Oriental Bank of Commerce has registered a growth of 27.32 per cent in business turnover during 1998-99 as compared to the previous year.

The bank has achieved a business tunrover of Rs 24,670 in 1998-99 crore as against Rs 19,376 crore curing 1997-98.

The net profit of the bank improved to Rs 230 crore as against Rs 210 crore in the previous year. The EPS improved to Rs 12 as against Rs 10.92.

The bank’s deposits aggregated Rs 16,805 crore during the year registering an increase of 28.69 per cent. The total income of the bank stood at Rs 2,040 crore up by 28.2 per cent and the non-interest income grew by 25.3 per cent to reach Rs 173.52 crore.

The bank has proposed a dividend of 35 per cent and set a business goal for 1999-2000 at Rs 32,000 crore.

SBP to come out with public issue by September
Tribune News Service

CHANDIGARH, May 25 — The State Bank of Patiala has earned a gross profit of Rs 254 crore during the year ended March, 1999, as against Rs 208 crore last year showing an increase of 22 per cent.

The net profit stood at Rs 101.20 crore after providing for all contingencies and also treating 100 per cent, of its investments as current against RBI stipulation of 70 per cent, Mr M. Sitarama Murty, Chief General Manager, told the media here today.

Mr Murty said the bank’s board has approved 30 per cent dividend. The bank has planned to come out with a public issue before September this year.

He said there has been an increase of 16.06 per cent in the capital and reserves which increased to Rs 657.70 crore, adding an impressive Rs 91 crore during the year. The EPS on a share of Rs 100 stood at Rs 408.89 and its book value has reached Rs 2657.37.

The total deposits of the bank have increased by Rs 1,110 crore (14.35 per cent) from Rs 7,737 crore to Rs 8,847 crore, reducing the cost of deposits from 8.84 per cent to 8.40 per cent.

The net advances of the bank stood at Rs 4,814 crore, showing a growth of Rs 709 crore (17.27 per cent) higher than the industry growth of 13.70 per cent. The CD ratio of the bank is 58.89 per cent.

For the year 1999-2000, the bank has planned a growth of Rs 2,100 crore in deposits and Rs 1,100 crore in advances.

Haryana to introduce VAT

NEW DELHI, May 25 (UNI) — Haryana will take the lead in introducing value added tax (VAT) among the northern States, Mr OP Mahajan, State Minister of Prohibition, Excise and Taxation, has said.

At a meeting late yesterday, Mr Mahajan said the decision was taken by the Chief Minister’s Committee on VAT in which Mr Bansi Lal represents the northern region.

Mr Mahajan said the State is, however, uneasy on the issue of abolition of Central Sales Tax (CST) as it is the major source of revenue in Haryana. The State government is negotiating with the Centre for compensation for the loss of revenue arising out of the CST abolition.

The State Government has also urged the neighbouring States to rationalise their sales tax structure to put an end to the tax war among the northern States.

The Minister informed the PHDCCI members that the rates of sales tax in Haryana are being rationalised to a maximum of six instead of the prevailing level of 17. The Government has introduced uniform floor rates on 14 items out of the 15 identified by the northern region state.

Referring to the various problems of the business community the minister said the notification of self-assessment for dealers with a turnover of up to Rs 25 lakh will be issued shortly, although 5 per cent scrutiny on a random basis will be undertaken. With the issue of this notification nearly 2.5 lakh cases of disputes out of the 3.5 lakh pending cases will be cleared under the self-assessment which has already been cleared by the Cabinet.

ITC net profit increases 18 per cent

ITC Limited today reported an 18 per cent jump in the net profit at Rs 623.42 crore during 1998-99 compared with Rs 526.20 crore in 1997-98.

Official sources said after a board meeting here that the Directors have recommended a dividend of 55 per cent to shareholders.

The net income of the company increased by 12.61 per cent to Rs 3515.38 crore from Rs 3140.81 crore last year while the gross profit increased by 19 per cent to Rs 1040.32 crore in 1998-99 from Rs 877.33 crore.

Total expenditure during the year increased to Rs 2443.30 crore from Rs 2271.46 crore while the interest burden almost doubled to Rs 153.55 crore from Rs 81.02 crore last year.

After making a provision of Rs 102.99 crore (Rs 85.85 crore) for depreciation, profit before interest and tax increased by 25 per cent to Rs 1091.58 crore against Rs 872.50 crore last year.

The company has made a higher provision for taxation of Rs 314.61 crore (Rs 265.28 crore). A sum of Rs 160.95 crore was brought forward from the previous year and after positive adjustment for hotel foreign exchange of Rs 0.59 crore, Rs 784.96 crore (Rs 647.48 crore) was available for appropriation this year.

The dividend, including tax on it, will take away Rs 149.83 crore (Rs 121.48 crore last year).

GIC Housing

Despite registering 57.66 per cent decline in profit after tax (PAT), the Board of Directors of GIC Housing Finance Limited has recommended a dividend of 20 per cent for the financial year-ended March 31, 1999. Official sources in Calcutta on Tuesday said PAT came down to Rs 4.43 crore from Rs 10.46 crore in the previous fiscal.

Agro Dutch Foods

Agro Dutch Foods has reported a 852.2 per cent rise in the net profit to Rs 8.59 crore for the fiscal year ended March, 1999. On an equity of Rs 13.78 crore the EPS works to Rs 6.23.

The turnover has risen by 94.38 per cent to Rs 45.34 crore for compared to Rs 23.32 crore in the previous year. Gross profit rose to Rs 10.12 crore against Rs 2.38 crore in the previous year.

The Board of Directors has decided to plough back the earnings for future capacity additions keeping in view the good demand for the company’s product in the international market and hence the dividend for fiscal 1999 was not declared, a company release said.

Havell’s India

Havell’s India is likely to net an export turnover of Rs 20 crore during 1999-2000 with increased focus on markets in West Asia, Bangladesh, Sri Lanka, England and Germany.

“Orders have been placed by our German partner, DZG for 100,000 energy meters worth Rs 8 crore to be sourced from our Indian plant”, Havell’s India Director, Ameet Gupta told PTI today. — UNI, PTI

Farmers to protest against free trade

GENEVA, May 25 (IPS) — A caravan of 400 farmers from India is setting off from Germany this week on a tour of European countries to denounce the devastating effects of globalisation on the economy.

The intercontinental caravan will protest the so-called free trade imposed by the World Trade Organisation (WTO) and the powers that support this world order, said Swiss activist Olivier de Marcellus, one of the organisers of the march.

During a nearly 30-day tour of Europe, the caravan will forge contacts with organisations of farmers and other grassroots groups in Germany, Austria, Belgium, Spain, France,Great Britain, the Netherlands, Italy, Poland, the Czech Republic and Switzerland.

The farmers belong to organisations of the Indian Peasant Union from 10 Indian states, the largest of which is the Karnataka Rajya Raitha Sangha (KRRS), The Karnataka State Farmers Association, with 10 million members.

The President of the KRRS, M.D. Nanjundaswamy, said: We wish to bring to the North the point of view from the South about the system of exploitation and genocide imposed by governments, by the international institutions such as the WTO and by multinationals.

The caravan was organised by the People’s Global Action against free trade, an intercontinental league of social and political groups which emerged on the scene last year with violent protests in Geneva against the WTO and the liberalisation of trade.

The rural Indian groups that back the caravan follow the pacifist philosophy of the founder of modern India, Mahatma Gandhi, and announced that all of their actions would be governed by the principle of non-violence.

A statement released by the caravan said that free trade has put the peoples of the world—North and South— at the mercy of the transnational economic and financial powers.

The fatal competition with highly productive (and highly subsidised) agri-business of the North is ruining the small farmers of the South with cheap imports, it said.

The outlook is worsening for peasants in the South because the prices of their export crops are steadily sinking on the saturated world markets, said the declaration.

The globalisation of agricultural markets is destroying self-sufficiency in food production, reducing food crop production in favour of export crops used for intensive livestock feeding, or flowers and other luxury exports to be shipped North.

The document states that in India, as well as in Africa and Latin America, free trade has led to an alarming fall in per capita food consumption.

During their stay in Switzerland, the members of the caravan will be hosted by Swiss farmers associations, said Mr De Marcellus.

The caravan will stay in Swiss capital, and will later hold protests outside the headquarters of the transnational corporations Novartis, in Basel, and Nestle in Vevey.

Escorts signs wage pact

NEW DELHI, May 25 (TNS) — The Escorts group management today signed a wage settlement agreement with the All Escorts Employees Union following two years of protracted negotiations.

The agreement was signed for major Faridabad-based Escorts companies and would later incorporate the other group companies, said a company statement.

According to the new settlement , which will come into force immediately and will be effective till May, 2002, each worker will gain between Rs 2,700 and Rs 3,400 per month, including all direct and indirect costs. Compensation has been linked to the individual company’s profitability and paying capacity as against the practice of common package across all group companies in the past.

Postcards, letters dearer
Tribune News Service

NEW DELHI, May 25 — Postcards and inland letters will cost more with the Post and Telegraph Department enforcing the revised postal tariff rates from tomorrow.

A printed postcard will cost Rs 2 instead of Rs 1.50 while competition postcard, current price at Rs 3 will be dearer by Re 1.

The new rates have become effective after the President gave assent to the Finance Bill, 1999-2000 which was passed by Parliament.

Parcels, registration fee, Indian Postal Order and book-post items will also cost more from tomorrow.