Reliance accused of dumping by EC
BRUSSELS, Nov 10 — India’s largest private sector company, Reliance Industries Limited, along with a host of other companies, is facing two anti-subsidy and anti-dumping cases in Europe relating to certain polyethylene terepthalate or PET products.

GAIL share priced ‘atrociously low’
NEW DELHI, Nov 10 — The Congress today criticised the National Democratic Alliance government for the ‘distress sale’ of shares of the Gas Authority of India Limited, stating that the price of Rs 70 per share was ‘atrociously low’.

Pakistani regime to axe top bankers
ISLAMABAD, Nov 10 — The army regime in Pakistan has decided to drastically cut down the unnecessary expenditures of banks and state-owned enterprises specially by removing from service their top executives, who are drawing huge salaries and enjoying other benefits.

‘Wind up Mangalore Chem’
NEW DELHI, Nov 10 — The Board for Industrial and Financial Reconstruction has issued a notice to wind up UB Group company Mangalore Chemicals and Fertilisers Ltd.

Cable companies to be next growth engines
MUMBAI, Nov 10 — After being catapulted to the status of being channels of growth or factories of e-commerce and entertainment media and communication, cable companies are now poised to emerge as new economic engines of trade and business.

We don’t make most of people: Tony Blair
LONDON, Nov 10 — British Premier Tony Blair has said that he and Atal Behari Vajpayee agree that Indo-British bilateral relations should be further strengthened and he would be visiting India as soon as he can.

IBP may convert loans into equity
NEW DELHI, Nov 10 — National oil marketing company IBP has sought government permission to expand its equity by Rs 200 crore through part conversion of its loans in a bid to provide the company the much needed financial leverage in the deregulated oil market from the year 2000.

China begins WTO talks
BEIJING, Nov 10 — China and the USA today kicked off two days of crucial negotiations on the former’s accession to the World Trade Organisation ahead of the Seattle round of trade talks beginning on November 30.

ST hike opposed
AMRITSAR, Nov 10 — Mrs Lakshmi Kanta Chawla, BJP MLA, protested over the recent hike in the sales tax announced by the Punjab Government to cover its financial mismanagement.

Reliance accused of dumping by EC
From Ranvir Nayar

BRUSSELS, Nov 10 — India’s largest private sector company, Reliance Industries Limited, along with a host of other companies, is facing two anti-subsidy and anti-dumping cases in Europe relating to certain polyethylene terepthalate or PET products.

This is perhaps the first time Reliance is facing anti-dumping action in Europe, a significant export market for the group. The cases were notified by the European Commission (EC) last Saturday and were published in the official journal of the European Commission, indicating the beginning of investigations.

The EC has acted on a complaint lodged by the PET Committee of the Association of Plastic Manufacturers in Europe (APME), an industry association representing producers who account for over 85 per cent of the PET production in the European Union (EU). The APME complained that the European industry was threatened by the unfair trade practices that the exporters were allegedly indulging in.

The complaint was filed on September 22 and the EC has now notified the cases within the official 45-day deadline for initiating action. The case is very broad-based and includes companies from India, South Korea, Malaysia, Taiwan, Indonesia, and Thailand.

Besides Reliance, the Indian companies included in the complaint are the Birla group concern Century Enka, Indian Organics Limited, Pearl Polymers, Futura and Elquaie.

Indian exports of the commodity to the EU in 1998 totalled 37,240 tonnes, valued at 25.4 million euros or nearly Rs. 1.25 billion. In the anti-subsidy case, the schemes that have been identified by the complainant include the export promotion zone (EPZ), the export oriented unit (EOU), the duty entitlement passbook scheme (DEPB), export promotion capital goods scheme, advance licences and the income tax exemptions.

The complaint says the schemes are subsidies since they involve a financial contribution from the Government of India and confer a benefit on the recipients — the exporting producers of PET. The complainants claim that the schemes are contingent upon the export performance and hence specific and countervailable. They claim the total subsidy amounts to 42.9 per cent.

The complaint cites the Indian subsidy as being by far the highest of all the countries named in it as in most other cases it ranges between 10 and 20 per cent. Though the complainants had named Saudi Arabia also, the EU has rejected that saying the Arabian marketshare was less than 4 per cent and hence negligible.

The EC claims the complainants have been able to provide evidence that the imports from India and other countries have increased in absolute terms as well as market shares and that the volumes and prices of the imported products have had a negative impact on the marketshare and prices of the EU producers.

The Commission is now sending out detailed questionnaires to the Governments of the countries involved and the companies have been asked to respond within 40 days, failing which they would be charged with the residual duties (the highest level of duty imposed by the Commission), if the case is upheld after the investigations by the EC.

These schemes have often been the target of the anti-subsidy cases launched by the Commission and, on most occasions, the EC has upheld the contention of the complainants and imposed countervailing duties against the Indian companies involved.

However, India has defended these schemes saying they are compatible with the rules and obligations of the World Trade Organisation. But so far India has not challenged the imposition of countervailing duties by the EC in such cases and has not moved a dispute settlement panel of the WTO.

Observers say these decisions are likely to be made only at the very highest political level as it would involve taking the battle into the European turf. — IANS

GAIL share priced ‘atrociously low’
Tribune News Service

NEW DELHI, Nov 10 — The Congress today criticised the National Democratic Alliance government for the ‘distress sale’ of shares of the Gas Authority of India Limited (GAIL), stating that the price of Rs 70 per share was ‘atrociously low’.The Congress said that by allowing disinvestment in a “Navratna” company at Rs 70, competitors of GAIL like Enron and British Gas have been allowed to pick up government equity in GAIL at “very cheap prices”, Mr Jairam Ramesh, Secretary of the party’s Economic Affairs Department, said here today.

The party charged that the NDA Government was allowing ‘back-door entry’ to foreign companies at cheap prices.

He said the United Front government had refused a price of around Rs 120 a share and in the case of Videsh Sanchar Nigam Limited, the earlier Congress government had not gone ahead with disinvestment when it became clear that the price being offered was very low.

The Congress said it suspects that the government was going in for ‘distress sale’ in order to augment resources to meet the fall in revenue and through the GAIL disinvestment it hopes to get Rs 1100 crore.

“This is a short-time solution and the Congress calls upon the government to desist from tinkering with the public sector and follow a long-term policy as enunciated in the party’s manifesto for the 1999 Lok Sabha elections’’.

Some months back, the government had “indulged in the gimmickry of cross-holdings’’ in oil companies so as to raise revenue which depressed the market value of oil companies by a significant amount.

“Today, there is complete confusion on how disinvestment in the oil companies will take place. When the Disinvestment Commission has already given its recommendations, the government has set up yet another hydrocarbons vision group. The Ministry of Petroleum has set up its own committee,’’ the party said.

The party also said that the government was privatising Indian Petrochemicals Company Limited (IPCL), another Navratna company without a clear-cut and transparent competition policy.

It said the Disinvestment Commission’s initial three-year term ended in August this year and the Commission has been in a state of limbo and no effort was being made to define its role and responsibilities.

The party said the Commission has made recommendations on 58 PSUs and instead of action on these the government was setting up ad-hoc groups that would suggest measures to meet the disinvestment target for 1999-2000.

Pakistani regime to axe top bankers

ISLAMABAD, Nov 10 (ANI) — The army regime in Pakistan has decided to drastically cut down the unnecessary expenditures of banks and state-owned enterprises (SOEs) specially by removing from service their top executives, who are drawing huge salaries and enjoying other benefits.

According to informed sources the Government had expressed concern over the state of affairs in nationalised commercial banks, development Financial Institutions (DFIs) and other corporations.

The government believed that these banks and corporations were spending much more than their requirement particularly by offering from Rs 50,000 to Rs 400,000 salaries to many of their employees.

The Principal Secretary to the Chief Executive Tariq Aziz, is reported to have said that the Government could not afford to pay large salaries and fringe benefits to those who have been inducted in various places by the ousted govt.

Sources said that orders were being issued to the authorities to make best use of the employees already working at various places instead of retaining the services of those brought from the private sector and foreign banks.

The government is taking a tough line against those state corporations which are incurring huge losses but still the number of their employees and size of expenditure were very high, they added.

CII sets pension agenda

NEW DELHI, Nov 10 (UNI) — Pension reforms are integral to reforms in the financial sector and need to be undertaken in tandem with insurance sector reforms to strengthen the overall financial sector reforms process, says the Confederation of Indian Industry.Reforms in these two crucial sectors would ensure social security through much wider coverage to the masses, covering all the strata of society, than what is currently available.Reforms in the Indian pensions sector can draw upon lessons learnt by a number of developed and developing countries that have initiated pension reform programmes over the last few years, the a CII release said.

The CII expert group on pensions, constituted under the aegis of the CII Insurance Committee under the chairmanship of Mr Deepak M. Satwalekar, Managing Director, HDFC, had drawn up a report on the path of reforms in the pensions sector and envisaged a pensions system for the country, which had been presented to IRA Chairman N. Rangachary.

A “3 Pillar” framework, broadly-based on the framework outlined by the World Bank, suited for India was suggested by the report.

A basic pension to take care of the subsistence level irrespective of earnings and contributions made by a beneficiary to earn this will constitute the first pillar.

In other words, there should be a flat basic pension plus an earning related element with an underlying income guarantee for those on low lifetime earnings.

A second layer of pension which will ensure a reasonable degree of comfort in the standard of living during retirement directly related to the contributions made by each beneficiary (if employed, a part by the employer) and the third pillar for matching pre-retirement standard of living, a voluntary personal pension.

A smooth transition to the three pillar framework, however, would necessitate addressing some issues, including provision of withdrawals under certain conditions from provident fund accumulations, portability of pensions and tax treatment on provident fund accumulations and pensions.

Export growth falls: Assocham

NEW DELHI, Nov 10 (UNI) — The huge decline in the rate of growth of exports of iron and steel (19.2 per cent) and electronics goods (10.7 per cent) during April-July 1999 has depressed the export growth of the engineering goods sector. Coupled with weak recovery in chemicals and allied products exports (0.5 per cent), the prospects of reaching the overall export target remain bleak, according to Assocham.

A study on “export trends- 1999-2000’’ carried out by the chamber, however, reveals that exports of gems and jewellery, readymade garments and cotton textiles, fabrics and made-ups staged a slow but steady recovery.The study released by the Assocham President, K.P. Singh here today, reveals that merchandise exports fell by 3.8 per cent in 1998-99, if one compares the revised DGCI and statistics published in May for 1997-98 and the provisional estimates for 1998-99.

The provisional BOP (balance of payments) released by RBI also shows a -3.9 per cent change in export earnings. The revision of trade statistics might raise the 1998-99 figure for exports, although given the improvement in data reportage in recent times the degree of revision may not be large.

The most significant development in the exports during the first quarter of 1999-2000 was the increase in the export of manufactured items — which rose by 9.1 per cent (in US dollar terms), relative to the decline of 3.0 per cent during the full year of 1998-99.

‘Wind up Mangalore Chem’

NEW DELHI, Nov 10 (PTI) — The Board for Industrial and Financial Reconstruction (BIFR) has issued a notice to wind up UB Group company Mangalore Chemicals and Fertilisers Ltd.

A two-member bench of BIFR comprising Chairman P.P. Chauhan and member G. Narayanan said prima facie it was of the opinion that the company was not likely to become viable on a long-term basis and hence, it was just and equitable and in public interest that it be wound up.

The board observed that all possibilities of rehabilitating Mangalore Chemicals had been exhausted and Bench had not received any rehabilitation proposal with means of finance fully tied up despite sufficient opportunity to promoters and workers union.

The Bench has fixed February 4, 2000, to hear objections and suggestions to the show cause notice.

It also said IDBI, operating agency, would consider a rehabilitation proposal from the promoters if they submit it by November 25, 1999 and deposit Rs 5 crore in an escrow account.

Workers’ cooperative could also submit a rehabilitation proposal along with a deposit of Rs 1 crore or a bank guarantee of equivalent amount, the board said.

The Bench noted that Mangalore Chemicals case had been before it for over five years and during this period, several opportunities had been given to the promoters to submit a comprehensive revival proposal after reaching an agreement with secured creditors.

Secured creditors including SBI alleged that the company had not paid interest after 1994.

SBI representative said that company offer had envisaged payment of Rs 97 crore against Rs 133 crore, leaving a very large gap and added that there was no way banks could agree to accept less than Rs 133 crore.

Mangalore Chemicals’ vice chairman S.R. Gupte submitted before the Bench that the company had already paid a sum of Rs 100 crore to banks besides Rs 22 crore to financial institutions and it would not be possible for the promoters to further improve their offer.

The company’s Managing Director D.P. Mehta told the Board that promoters had proposed to incur a capital expenditure of Rs 175 crore over next five years through promoters’ contribution and internal generation.

IDBI, the operating agency said that where the question of parity with banks was concerned, institutions were at a disadvantage since banks had been retaining 5 per cent of the sales proceeds, which needed to be shared with banks.

Share prices shoot up

MUMBAI, Nov 10 (PTI) — Share prices shot up on the first day of the current settlement at the National Stock Exchange (NSE) today due to all-round heavy buying by operators. Since Bombay Stock Exchange (BSE) remained closed today, buyers’ attention turned towards NSE, brokers said.

Pivotals resumed with overnight strength and continued their forward march due to hectic buying and as a result, Nifty gained around 18 points over yesterday’s close.Mirroring the general trend, the S&P CNX Nifty index started higher at 1371.60 and rose further to touch an intra-day high of 1392.55 before closing at 1389.10, revealing a smart rise of 17.90 over the previous close of 1371.20.

The CNX Nifty junior rallied by 86.40 to 2770.60 as against the last close of 2684.20. In the market, a large number of 833 securities advanced, 232 declined and 40 held steady, while 143 scrips hit their price bands.

The most actively traded securities were Satyam Comp with a turnover of Rs 593.72 cr, Silverline Rs 250.20 cr, Zee Tele Rs 239.71 cr, Ranbaxy Rs 216.30 cr, Pentasoftware Rs 211.67 cr and Reliance Rs 170.31 cr.

Microsoft thought it could walk on water

Bill Gates has been taught a golden rule of American capitalism: never underestimate the majesty of the anti-trust laws or the sheer power of the populist sentiment on which they are based. The United States is a nation where, when put to the test, the rights of the individual or the smaller entrepreneurial enterprise will always be held higher than brute corporate strength.

Thus a century which began with the anti-trust authorities moving against John D Rockefeller’s Standard Oil of New Jersey, which controlled more than 90 per cent of the world’s oil production, ends with the state scoring a victory over Microsoft, the outstanding and most successful corporation of the late 20th century. The names and industries are different but the values which led federal judge Thomas Penfield Jackson to find Mr Gates and Microsoft guilty of being a relentless and predatory monopoly are immutable.

Despite all his technological and business skills, this is a case that Mr Gates, who masterminded the defence of the anti-trust action, fumbled. There have been chances throughout for Microsoft to settle. The US is the home of the plea bargain and the out of court settlement. But Microsoft felt it could walk on water and turned aside all such offers. In spurning a negotiated agreement at an earlier stage of the proceedings Microsoft now faces the stark choice of years of appeals or the prospect of seeing the empire it created split asunder. If anyone believes that this will not happen, think back to the monopoly US telecom supplier AT&T, which was splintered into more than a dozen operating companies less than two decades ago.

Mr Gates and Microsoft have reason to feel some bitterness about the outcome of the case. Arguably the corporation that he has driven forward has been a huge contributor to the longest period of US economic expansion since the 1850s. Without the higher productivity unleashed by the access of a nation and a world to the Windows operating system and the personal computer, the “new paradigm” of growth without inflation may never have succeeded.

Moreover, had not Microsoft eventually latched on to the importance of web browsing technology, and brought it to a far wider market than embryonic rivals like Netscape, the development of the internet into the next great technological white hope might never have taken place. The build-up of financial resources within Microsoft’s balance sheet and its willingness to carry complex ideas forward by means of skillful marketing spread the magic of the PC and the Internet more widely and more quickly than otherwise would have been possible. Mr Gates knows instinctively this is right and is attempting to do the same for new delivery systems like cable and for next generation hand-held devices.

But that is the point. In Microsoft’s determination to be the dominant force in the third industrial revolution well into the next century it is willing to use its muscle to sweep all else aside. It has become arrogant enough to believe that in the same way as its control of the innards of the PC gave it domination of that market, so its awesome strength means that it can build itself a role in the next generation. The US justice department recognised the danger and the courts have agreed. Judge Jackson may now come up with ways of separating the creative side of Microsoft - R&D and manufacture - from the distribution chain. It will be a painful and complex divorce. But as in the case of telecom, the global consumer should be the ultimate beneficiary. — The Guardian

Cable companies to be next growth engines

MUMBAI, Nov 10 (UNI) — After being catapulted to the status of being channels of growth or factories of e-commerce and entertainment media and communication, cable companies are now poised to emerge as new economic engines of trade and business. Cable companies that earlier made money only from the entertainment programmes are set to tap multiple source of revenue and profits. It is in this context that world over there is an unprecedented chase of acquiring stakes in the cable companies as the growth engines of the next millennium.

According to a report on the emergence on cable companies as the new profit merchants, convergence is now redefining the terms of trade and distribution. For many decades, it was the voice which ruled the business whether in terms of basic telephony or long distance telephony or international telephone traffic. The power is now shifting from the voice to data. What was voice in the yesteryears, it is data in the near future, the report added.

Data mode of communication is admissible superior to voice mode of communication. Voice being more expensive and limited to richer section could create a restricted market. Data communication thanks to breakthroughs and technology in terms of digital compression is more affordable. The paradigm shift from the voice to data is indeed shifting the wealth creation from telephony companies to cable companies.

The logic is simple — a telephone line can handle limited voice of data transmission, whereas a cable can handle 50 times more transmission whether it is of voice turned data or date. Although cable industry made its origins with modest quality cable compared to advance infrastructure or telephone companies, yet digitalisation has invented new ways of making wealth in favour of cable companies.

Internet has been instrumental in the transition from voice of data and exponential growth in data consumption. The growth of internet has indeed created a new meaning and purpose for cable companies. A telephone line only carried voice or it carried limited data after addition of modems.

Mr Subhash Chandra recently signed up with Rupert Murdoch’ to acquire the remaining 50 per cent stake held by him in Asia Today operating three channels Zee TV, Zee Cinema and Zee News and 50 per cent share in Siti Cable. Market analysts were debating whether this price was for merely acquiring broadcasting share of Asia Today Limited or actually for a 50 per cent share of Siti Cable

Mr Chandra has managed to acquire all of the 50 per cent shares held by Rupert Murdoch and News Corp of Siti Cable at a throw-away price. Mr Chandra paid only $ 296 million, which price includes not only a price for Siti Cable, but also includes the price of Asia Today Limited. Siti Cable commands more than a base of 5 million homes.

It is learnt from market sources that Mr Chandra had already cut a back-to-back, parallel deal with one of the leading, majors in insurance and investment banking, which is reported to have approached Mr Chandra to pick up 25 per cent stake in Siti Cable for a price of $ 200 million.

It is yet to be seen whether Mr Chandra immediately signs up with the investment banker, recovering all of his payments made for the acquisition by offloading merely 1/4th of Siti Cable stake or he prefers to wait and watch for a while to obtain valuations many times over, in the near or distant future.

Market analysts are keenly watching the happenings at the Siti Cable end which is now poised to emerge as the new media, commerce and entertainment vehicle in the next millennium, shadowing the growth of its own, even the parent companies.

We don’t make most of people: Tony Blair

LONDON, Nov 10 (PTI) — British Premier Tony Blair has said that he and Atal Behari Vajpayee agree that Indo-British bilateral relations should be further strengthened and he would be visiting India as soon as he can.

“I believe that our relations need to be given a new push in the 21st century.” Blair said in an interview published in the latest issue of Asian Trader, a weekly published by the Asian marketing group today.

Blair said the old relationship has long since passed, but “we need to recreate a very strong, not just commercial relationship, though that is very important.”

“We are now the second largest business partner with India, ahead of Germany and Japan, and that is a big thing and there is a four billion pound worth of business. There is a big commercial connection there, but there are also very strong geo-political reasons why we should be close with India and use our historical links to forge a close future together,” he said.

During the interview by Ramniklal Solanki and Kalpesh Solanki, Editor and Managing Editor of the weekly respectively, Blair expressed admiration for achievements of the Asian Business Community and expressed his over-riding commitment to eradicating racism.

Asked whether he would be visiting India in the near future, he said “as soon as I can. I promise. He said Stephen Bryers, Trade and Industry Secretary, is going to Delhi soon. “I would love to go. For one thing I absolutely adore Indian cuisine so I can’t wait, and I love the culture.”

Asked how he proposed to tackle racism, Blair said he believed Britain would be a great country in the 21st century if it uses the talents of all its people and racism is one thing that holds people back.

“We don’t make the most of people and we don’t let them make the most of themselves if we have out-dated and wrong prejudices that was the reason for it and I believe in it.”

Asked whether he enjoyed living in multi-cultural Britain, Blair quipped: “Yes, I love it.” He said one of the things that has changed during his lifetime is a recognition that a multi-cultural society is a good thing.

“I believe we are a richer country as a result of being a multi-cultural country. I like the fact that my children know people from different ethnic backgrounds and different religions. I like the fact that we have a whole range of new experiences: in culture, and art, and music and food — all as a result of living in a multi-cultural society.

“I think we have almost moved beyond the argument that it is a noble ambition to aspire to, and got to the argument, which is where it should be. That it is not just a good thing, it is also an enjoyable and enriching thing”, he said.

On being congratulated for promoting Paul Boateng, born in Ghana and Keith Vaz, who has roots in Goa, he said: it is done on merit.”

Blair said: “Now we have set various targets in the Cabinet office for recruitment in the civil service and in public services we are trying to recruit more people from black and Asian backgrounds and other ethnic minorities.”

What is very important is “we work together to try and provide right role models for young people in ethnic minority communities so they understand that there are people who have done very well and gone on to make an impact on their community and society and they can do the same,” he said.

“So the answer is at every level I want to see it happening and we have got to do what we can because if we don’t, everyone knows about the Asian community and how hard working they are, how industrious they are, the strong family links. These are things that are producing young people of a very high quality calibre and it would be good thing for the country if we used the talent,” he said.

Answering on how he proposed to combat discrimination in employment, Blair said:” Race relations have improved enormously in the country in the past 20 or 30 years or so but we have still not some way to go.”

Asked which Indian leader he admired the most, Blair said it was Mahatma Gandhi. “Most people would say Gandhi and that would be true for me too because of the courage of his convictions and the way he expressed them. He influenced the whole of the late 20th century political thinking,” he said.

Strangely enough, he said he had an Indian connection in his political development. “There was an Indian post-graduate student who was with me at Oxford, who I have never seen since actually, and he was a very bright guy.”

Answering a query on Britain’s role in the next millennium, he said: “We as Britain should use the strengths of our history to build our future, and by that I mean we have whole lot of historical relationships as a country, with the USA, Europe, Commonwealth, India, in the UN, in NATO.”

To a specific question whether there was a possibility of an Asian becoming British Prime Minister, Blair said: “Not tomorrow, but yes, absolutely yes.” He said he is sure that it would happen. “There will be an Asian Prime Minister, a black Prime Minister.

IBP may convert loans into equity

NEW DELHI, Nov 10 (PTI) — National oil marketing company IBP has sought government permission to expand its equity by Rs 200 crore through part conversion of its loans in a bid to provide the company the much needed financial leverage in the deregulated oil market from the year 2000.

“The equity expansion should preceed any disinvestment of government equity in the company to ensure improved returns to share holders,” IBP Chairman and Managing Director S.N. Mathur told PTI.Immediately after making a demand for equity expansion before Petroleum Minister Ram Naik recently, Mathur said that part of the Rs 500 crore loan from the Oil Industrial Development Board (OIDB) could be converted into equity to bring down its high debt-equity ratio.

China begins WTO talks

BEIJING, Nov 10 (PTI) — China and the USA today kicked off two days of crucial negotiations on the former’s accession to the World Trade Organisation (WTO) ahead of the Seattle round of trade talks beginning on November 30. The US trade representative Charlene Barshefsky and Presidential Adviser Gene Sperling had a three-hour-long morning session with Chinese Foreign Trade Minister Shi Guangsheng and Chief WTO negotiator, Long Yongtu, starting a new round of hard bargaining, official Xinhua news agency reported today.

A Chinese trade official termed the 11th-hour negotiations, proposed by US President Bill Clinton during a telephone conversation with Chinese President Jiang Zemin, a historic opportunity to conclude a deal on China’s bid to join the 134-member trade body.

Shi said: “China’s attitude towards its entry to the WTO continues to be positive and Beijing hopes the current round of bilateral talks with the USA will make advances.”

Despite optimism expressed by both sides, it remains to be seen whether the two would budge from their respective stand on market opening measures and China sticking to its main demand to be recognised as a developing country.

Chinese negotiating team consists of about 20 members while USA has about a dozen members from the departments of commerce, state, treasury and the National Security Council, the report said.

Chinese Foreign Ministry spokeswoman Zhang Qiyue, said China had all along maintained a “positive attitude” during negotiations during the past 13 years.

“However, China will not agree to any deal that will go against its national interests. Our accession to WTO must be based on a balance between rights and obligations,” she said, adding that Beijing would enter the world body only if it was accepted as a developing country.

However, diplomatic sources said it remained to be seen if Washington and its allies would accept China’s demand for “the lenient terms accorded to developing and poor countries”.

HCL Tech share at 450-540 likely

MUMBAI, Nov 10 (UNI) — HCL Technologies, a global information technology services provider from India, is making initial public offer (IPO) of its shares at an indicative price range of Rs 450 to Rs 540 per share on November 16 through book building process as well fixed price offerings.

The public issue of 14,200,000 fresh equity shares of Rs 4 each amounting to about 10.2 per cent of the company’s paid up equity capital, includes book building portion of 90 per cent and fixed price portion of 10 per cent. At the indicative price range, the company expected to raise a sum of Rs 640 crore to Rs 770 crore, said Mr Vineet Nayyar Sr Vice Chairman of HCL Technologies.

However, Mr Nayyar said that the final price would be discovered at the end of the book building process which would held between November 16 to 24 and the pricing would be announced on November 25. Thereafter, the fixed price portion would be offered to public on December 10.

The book building would be conducted through the members of NSE and BSE with 25 per cent of the total issue reserved for retail investors and 10 per cent through fixed price portion.

ST hike opposed
From Our Correspondent

AMRITSAR, Nov 10 — Mrs Lakshmi Kanta Chawla, BJP MLA, protested over the recent hike in the sales tax announced by the Punjab Government to cover its financial mismanagement. The Punjab Pradesh Beopar Mandal and other trading associations had been bitter over the new provisions being incorporated in the sales tax whereby to prosecute dealers for even a minor error.

Mr Amrit Lal Jain, President of the mandal had demanded immediate review of these new provisions.

The association had made the representation to the Punjab Chief Minister to look into the matter.

One more bout of FII selling likely

NOTWITHSTANDING the Divali flourish at the Indian bourses, it was more of an upward technical correction, and although the FII buying figures have turned positive, it is not wholly unlikely that the market will witness one more dunk before the millennium is out.

The strictures passed by an American court against Microsoft Corporation has cast a shadow over the Asian bourses, and once again it is the information technology stocks that could well be in the firing line. However, having already fallen sharply in the recent past, there are select stocks from this sector like BFL Software that offer discerning long-term investors value for money at the prevalent price levels.

Traders need to continue to tread cautiously as the markets remain on a thread-string and inherently volatile.

Compulsive punters could consider long positions at the counters of Hindustan Lever at Rs 2326 (square up at Rs 2381) and Colgate-Palmolive at Rs 224 (square up at Rs 249), while short positions could be considered at the counters of Siemens at Rs 499 (cover up at Rs 472) and MTNL at Rs 211 (cover up at Rs 194).

The dark horse bet of the week is LML whose share price has dipped to a level from where the downward risk appears to be minimal.

Yet as indicated earlier, there is likely to be one more bout of FII selling before the big new millennium bash begins at our bourses. So keep booking profits and stay in cash awaiting the downside.

Markfed
CHANDIGARH, Nov 10 (TNS) — Punjab Markfed has donated two truck-loads containing 1200 tins of Sohna vanaspati ghee for the cyclone-hit people of Orissa. Mr D.S. Bains, MD, said the vanaspati worth Rs 6 lakh has been handed over to the Deputy Commissioner of Ropar who is co-ordinating relief operations meant for Orissa.

SBP
CHANDIGARH, Nov 10 (TNS) — State Bank of Patiala has revised the differential rates of interest on domestic term deposit w.e.f. November 8 for amount Rs 5 crore and above for the period 180 days to 364 days from 2.5 per cent p.a. to 1.5 per cent p.a. over and above the normal rates.

SBI donations
CHANDIGARH, Nov 10 (TNS) — The State Bank of India, S.B.S. Road, Ludhiana branch celebrated Divali with mentally retarded and disabled children. The staff members and Mr S.K. Kapoor, Branch Manager distributed sweets, children’s games and crackers etc. to the school for mentally retarded and disabled children.

Paul Merchants
CHANDIGARH, Nov 10 (TNS) — Paul Merchants Limited has been granted the certificate of registration to carry on business of a non banking financial institution by the RBI.

PNB House Fin
NEW DELHI, Nov 10 (UNI) — PNB Housing Finance Limited has registered a 119 per cent increase in profit after tax at Rs 9.19 crore during the first half of this financial year compared to the corresponding period of the last year.