Friday, November 26, 1999
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B U S I N E S S | Friday, November 26, 1999 |
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Zonal bus fare structure mooted
Another billionaire Bankers to protest Toppers honoured |
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India to raise tech issue at WTO meet NEW DELHI, Nov 25 (PTI) — India will raise the issue of technology transfer to developing countries in the Trade Related Intellectual Property Rights (TRIPS) discussions at the forthcoming World Trade Organisation (WTO) meet, Science Minister Murli Manohar Joshi said. Although a number of WTO agreements refer to transfer of technology, the acquisition of contemporary and competitive technology by Indian small and medium industries is likely to emerge as a major cause of concern, Joshi said, inaugurating the 13th national conference on in-house research and development (R&D) in industry here today. Joshi, who earlier presented national awards for R&D efforts in industry to six companies, also pulled up the Indian industry for its low investment in R&D, and “dismal generation and use” of patents, saying industry should learn to stand on its own feet. Despite globalisation, R&D and associated technology remains highly centralised with companies in industrialised countries, the Minister said. “The need for India becoming technologically self-reliant could not have been more imminent”. Asking the Indian industry to be self-reliant, Joshi pointed out that for 50 years, domestic industry has been sheltered and protected from internal and external competition. If the Government keeps on perpetuating dependence, Indian industry will never be able to stand on its own feet —”it will always need crutches,” the Minister said. Competence cannot come through financial manipulation and management, but through innovation and technology management. Indian industry spends a mere 25 per cent of the total R&D expenditure whereas it is 60 per cent in the USA and 80 per cent in Japan and Korea, he pointed out. The R&D expenditure base in India stands at a low 0.8 per cent, compared to 2.5 per cent in the USA and Japan. Another “disheartening” feature is the dismal generation and use of intellectual property or patents, Joshi said. It is only now that Indian industry has taken up some interest in filing patents. Even then it is filing a total of about 1000 patents in India, and fewer abroad, compared to leading US and Japanese companies that individually secure more than 1000 patents each year. Pointing out that tomorrow’s corporations would be “knowledge corporations”, the Minister said future emphasis would be on intellectual capital and competitiveness and not physical assets. Joshi said Indian industry should realise that publicly funded R&D institutes are to be used as “idea generators and providers of new concepts”, and not as supermarkets offering off-the-shelf technologies to it. Maran-FIEO meet: Commerce and Industry Minister Murasoli Maran today said the Government was aware of obstacles faced by Indian exports in developed countries and will fight to safeguard the country’s interest at the forthcoming WTO Seattle meet. “Developing countries, including India, come against many obstructions like non-tariff barriers and peak tariffs imposed by advanced countries in the present WTO regime,” he said at a meeting with the Federation of Indian Export Organisations (FIEO) here. “WTO is a trade
body. Naturally, trade issues alone are expected to be
discussed and resolved under its aegis,” Maran, who
will be heading the Indian delegation, told an
interactive session attended by chairpersons of the
export promotion councils and commodity boards. |
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NEW DELHI, Nov 25 (PTI) — The Delhi High Court today sought details from the Union Government and the Central Board of Direct Taxes (CBDT) why action should not be taken against certain multi national companies (MNCs) for the alleged evasion of taxes worth Rs 400 crore on salaries of their employees paid abroad. A Division Bench comprising Chief Justice S N Variava and Justice S K Mahajan issued notices to the Revenue Secretary and CBDT and asked them to file replies by January 28 while hearing a public interest litigation (PIL) seeking imposition of penalty against such MNCs. The notices were accepted by standing counsel H S Phoolka on behalf of the government. The PIL filed by NGO Aazadi Bachao Andolan (ABA) alleged that the Income Tax Department was not taking action against MNCs and their expatriate employees who have evaded tax worth hundreds of crores of rupees on salaries paid to them abroad. Far from taking any action against such wilful evasion of taxes by these employees, the IT Department had transferred two officers who ordered a survey of the defaulting MNCs, ABA counsel Prashant Bhushan claimed. He said the survey was
ordered after the department had received information in
1994 that many MNC s were not “fully” declaring
salaries paid to their expatriate employees. |
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NEW DELHI, Nov 25 (UNI) — Disinvestment Commission Chairman G.V. Ramakrishna today said he has not received any indication from the government on the resignations submitted by him and other two commission members even as barely a few days are left to end their tenure.“We have received no feelers whatsoever from the Government,’’ Mr Ramakrishna said adding that he is unaware if there was any meeting between Atal Behari Vajpayee and Manohar Joshi slated for yesterday. Three of the four-member of the Disinvestment Commission, including Mr Ramakrishna, well-known economist Suresh Tendulkar and former SBI Chairman Dipankar Basu, had submitted their resignations on the day the Vajpayee Government took oath. However, NTPC Managing Director Rajendra Singh had not resigned. Their tenure ends on November 29, 1999. Refusing to comment on the Government move to sell National Hydro Power Corporation to NTPC, the commission Chairman quipped, “we have not been consulted’’. However, Mr Ramakrishna reiterated that cross-holdings between public sector units to bridge the fiscal deficit would not be in the interest of the country. Unless the Government adopts “innovative ways”, it will not be able to achieve the Rs 10,000 crore disinvestment target for 1999-2000. He declined to comment if cross-holding would be an “innovative way”. Asked on the proposed Disinvestment Implementation Authority, he said the focus of Government efforts should be on implementing the commission’s recommendations. “In the last three years, none of our suggestions were heard”. He regretted that there has been no interaction between the Ministries of Finance and Ministry of Industry, and the commission. “There has only been one way traffic...we give suggestions apparently to be ignored’’. For instance, he said
the Government has not implemented any of the
commission’s recommendation in the last three years.
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Seattle showdown: battle for
billions of jobs AS more than 100 trade ministers and heads of state burn the midnight oil at World Trade Organisation negotiating in Seattle next week, outside, behind barricades, hundreds of environmentalist groups, aid agencies and consumer groups will take part in a huge lobbying exercise, taking on multinational corporations and their lawyers. At stake is the shape of the world economy — billions of jobs and the clothes, food and services the workers produce. Where your trainers (sneakers) and jeans are made, where your software is designed and what pills you pop when you’re ill, is decided in WTO negotiations. A few years ago, WTO officials complained at lack of interest in their work. Now they are horrified at being hate figures for a global network of activists. They are accused of being the undemocratic, unaccountable tool of multinational corporations. The reality is somewhat different. Poor countries —including China — are queuing up to join and even Cuba is happy to be a member. Countries which have cut themselves off from the world economy have suffered. But lost amid technical discussions about farm subsidies and tariff regimes is the economic case for why trade matters. Trade allows countries to specialise in what they are good at and use the resources raised to buy other countries’ goods and services. The most serious charge levelled at the WTO is that the institution and the agreements it enforces are skewed in favour of rich industrial countries. While the West may preach trade liberalisation, it has not practised it. Instead it has used successive trade rounds to prise open Third World markets while keeping the barriers to its own markets highest in the areas where the poorest countries stand to benefit the most — agriculture and textiles. In a bid to head off criticism, the WTO is trying to sell the Seattle negotiations as a “development round” with a focus on how to help developing countries get a better deal. They claim that the WTO is changing to reflect the makeup of its membership, where developing countries form a majority. Power in WTO negotiations depends on the size of your market rather than the size of your economy, so large countries such as India, Brazil and Indonesia carry enormous weight. Not a level playing field: But for all the WTO protestations about concern for the developing world, the fact remains that nearly 30 members are too poor to have a representative in Geneva. While the US delegations can include hundreds of lawyers, corporate experts and lobbyists, countries such as Botswana struggle to follow negotiations on the Internet; this is not a level playing field. There have been fierce negotiations behind the scenes in the run up to next week. The WTO and many members want to press on and reduce tariffs and open up markets in every aspect of the world economy from agriculture to e-commerce, intellectual property to films and textiles. But beyond that agreement, the WTO membership is riven with disagreement. The critics want a halt, reform of the WTO and revision of existing trade rules. Much of the horsetrading is behind the scenes, fuelling complaints that the WTO is secretive and overly influenced by multinationals. Over the next few years, the WTO will find itself involved in increasingly bitter battles about the direction of the world economy and how it shapes the quality of people’s lives - their jobs, their health and their environment. —
The Guardian |
Zonal bus
fare structure mooted CHANDIGARH, Nov 25 — The Association of State Road Undertakings — the apex body of state transport undertakings (STUs) in the country — has asked all the states and union territories to grant autonomy to their STUs to link revision in bus fares with the escalation in the price of diesel and the hike in dearness allowance paid to the employees. This suggestion is sequel to the 35 per cent, highest ever, increase in the price of diesel slapped by the Centre on October 7. The hike in diesel price will cost STUs an additional burden of Rs 940 crore in a year and nearly Rs 470 crore in the last six months of the current financial year from October, 1999, to March, 2000. This will be a recurring burden. The association pointed out that the STUs have incurred a cash loss of Rs 500 crore in the 1997-98 financial year. The loss jumped to Rs 1,072 crore in 1998-99. The mounting losses suffered by the STUs have deterred them from replacing old buses. The data tabulated by the association reveals that 57 per cent buses of Haryana Roadways have outlived their lives and need immediate replacement. Similarly, 44 per cent buses of Delhi Transport Corporation, 57 per cent vehicles of Madhya Pradesh and 88 per cent buses of the Bihar State Transport Undertaking cry for replacement. There are a total of 1,06,982 buses plied by all STUs in the country. Of these 30,000 buses or say 28 per cent of all the vehicles, have outlived their lives. The artificial fixation of bus fares, the association argues, has led to a financial crisis in all STUs to such an extent that they do not have enough working capital even to meet their day-to-day expenses. The Delhi Transport Corporation is so much in cash trap that it does not have funds even to pay salary to its staff. No wonder the Delhi Administration pays Rs 13.5 crore to the Delhi Transport Corporation every month to enable it to foot the wage bill of its employees. The association has reminded the state governments and the union territories that the Planning Commission had tirelessly been counselling the transport sector that an economic fare structure should be framed to make the sector function vibrantly. It has also closed its doors to access any Central Government funds as capital contribution to replace and augment the state-owned bus fleet. The STUs have been driven to depend on state funds and external sources, says the association. It adds that the financial institutions have revised their lending norms and are turning to bankable proposal with large coverage and state government guarantee. The LIC hesitates to accept letters of comfort from state governments. What is disquieting is that even the state governments are not always forthcoming to issue guarantee even for a fee. The association says that the STUs need Rs 2400 crore to replace, their overaged buses. The financial position in most of the STUs are far from satisfactory. More than Rs 100 crore are due to sundry creditors. The payments due mount every day and cross the 180-day mark as against 45 days credit purchases. The STUs are able to settle only diesel bills as oil companies have adopted a cash and carry sales policy. In the case of Bihar STU, the Supreme Court had to intervene to direct the state government to make payment of arrears of wages of the employees due for years. The association regretted that the non-uniform fare structure between adjoining states had created cross-border operations difficult and inter-state agreements not practical and conducive. It suggested that if a uniform national bus fare is not possible, at least a zonal bus fare structure should be introduced for rural operations, to start with. There could be a four-slab bus fares for ordinary service in the South, the West, the North and the East on the basis of the diesel price. The states in respective zones could agree to a common bus fare. Every bus fare increase
is conceived as a great political risk, says the
association. The STUs are criticised for poor financial
performance despite fare revision. What is often
forgotten is that the increase that is granted is overdue
much before the previous increase. Therefore, the need is
to establish a base line fare anchored to a date and work
on a transparent and rational formula to be revised
later. |
‘Revamp
of power tariff inevitable’ CHANDIGARH, Nov 25 — A revamp of its present power tariff structure, including subsidies, was inevitable for Punjab or else this will have a damaging impact on state’s economy. On the other hand, Haryana was doing very well in the field of reforms in the power sector. Dr S.L. Rao, Chairman of the Central Electricity Regulatory Commission, said while talking to The Tribune this afternoon. In case of Punjab, he said, the state could not carry on in the present manner as the fiscal situation of the state did not allow any more subsidy on power sector. "If this continues all development work in the state will come to a halt", he said. Dr Rao said a very well managed power distribution and generation system in Punjab has been brought down due to the provision of free power for farmers but in adjoining Haryana the reform process was on the right track and they have done tremendous work. But, he clarified, that his visit to see the reform process in Haryana was not connected to any statement of a politician. Dr Rao, who heads the 14-month -old commission, said change in the management of the electricity boards was required immediately. The ownership of the government had only caused damage due to overstaffing, inefficiency, lack of accountability and unbalanced investment. It had also furthered political culture. He said keeping in view the present scenario, "Corporatisation or privatisation of the boards is the answer, and added that more private investment had to be allowed even for building of dams and generation. But for all this clearances from various ministries had to be given in one go, he opined. "Reforms will have to touch all fuel and transport sectors to make a real impact", Dr Rao said. He said the impact of changes in the power sector would become apparent within three years and in seven years there would be major changes while a complete transformation would take place in 10 years. About the changes brought about by the Central Regulatory Commission, Dr Rao said a code of discipline for users of the power grid had been put in place. Anyone who overdraws will face penal charges. This has been done to bring about some kind schedule and discipline for partners on the grid that used to face frequent breakdowns on account of overdraws. The aim is to improve quality of electricity. The commission will also be coming out with a tariff principle. The CERC also decided inter state transmission rates. Another field is to lay
down a framework for electricity market to move from
deficit area to surplus areas. He said that CERC would
not face the troubles being faced by the Telecom
Regulatory Authority of India (TRAI) as there was no
conflict of interest. |
‘Don’t
hurt creativity’ NEW DELHI, Nov 25 - Business in the country can flourish with increased investment by non-resident Indians ( NRIs) provided there is no red-tapism and excessive government interference , the owner of a multi-million dollar company, Info USA, Mr Vinod Gupta,who is hosting Senator Larry Pressler’s current visit here, has said in an interview. “India has tremendous under-utilised capacity”, Mr Gupta told The Tribune, adding that excessive government interference has adversely affected the growth of domestic business. Mr Gupta is currently in India in connection with the establishment of a women’s polytechnic in his native village, Ramupur Maniharan in Uttar Pradesh. Senator Larry Pressler,who is accompanying Mr Gupta, will lay the foundation stone of the institute tomorrow. “Here the government pulls down the creativity of the industry”, he observed. Exchange of intellectual capital is key to business these days. “ One might term it as democratisation of information and there is growth of a new social order”,he said. The so-called “brain drain” is happening primarily because of lack of opportunities in India, Mr Gupta said while referring to the trend of technically qualified persons of IITs and IIMs moving out of the country. “However, not everybody is rushing abroad.This is where investment in knowledge-based industries like software could be of tremendous help”, he said. “When I passed out I did not get a suitable job in India”, Mr Gupta, who is an alumnus of IIT Kharagpur, said. Calling for complete divestment of government stakes in public sector undertakings, Mr Gupta said that in this era of free trade private business should be allowed to flourish on its own.” There should be a free market economy”, he added. He is planning to raise $ 100 million for the institute. “ A corpus will be created by half of the money raised and the rest will be used for causes which the alumnus feels worthwhile”, he said. Mr Gupta’s
company,Info USA, is involved in compiling and
maintaining a comprehensive database of information of
over 10 million companies in the USA and Canada. From Mr
Gupta’s original investment of $ 100 in 1972, the
company today has registered sales of over $ 200 million.
Info USA went public in 1992, trading on Nasdaq exchange
with Mr Gupta himself holding 17 million shares. |
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WASHINGTON, Nov 25 (PTI) —Naveen Jain, a non-resident Indian has become the new “billionaire” in the USA. The Wall Street has listed Jain as a “recent IPO (initial public offering) zillionaire.” The journal said Jain
sold his Microsoft stock to start InfoSpace .Com Inc.,
which supplies directories, horoscopes and other services
to web portals. He kept 55 per cent of InfoSpace shares
at the time of its initial public offering of stock and
still holds more than 10 million shares valued at about $
1.92 billion. |
Bankers to
protest CHANDIGARH, Nov 25 — More than 20 unions representing 1.3 million employees working in banks and insurance industry have decided to protest outside Parliament on November 29, the opening day of the winter session. Demonstrations in all State capitals will also be held. They are opposing the
opening up of insurance to private capital - both
domestic and foreign and privatisation of nationalised
banks by bringing down government stake to 26 per cent as
against the existing “not less than 51 per
cent”. |
Toppers
honoured CHANDIGARH, Nov 25 — The State Bank of India, Chandigarh Circle today felicitated the top performers by admitting the branch managers of 6 branches of the circle to the Chief General Manager’s Club. Mr Prabhakar Sharma,
Chief General manager, gave away the trophies/prizes to
branch managers Mr S.C. Gupta, Jalandhar; Mr S.R.
Singhal, Manvi; Mr N.K. Sharma, Ludhiana; Mr S.C. Aneja,
Ladwa; Mr Jeewan Lal, Kangoo (H.P.) and Mr A.K. Koul,
Mendher (J&K) for their excellent performance in
every area. |
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SSI Limited plans to invest about Rs 100 crore this year on acquisition of three domestic companies and infrastructure development. “We will invest about Rs 65 crore in acquisitions, while about Rs 30 crore will be spent on providing infrastructure for software development,” SSI Chairman and Chief Operating Officer Kalpathi S Suresh told reporters here today. Aptech expansion: Aptech Ltd is planning a major overseas expansion and has earmarked $ 25 million for acquisition of software companies in Europe and the USA by mid-next year. “We are having talks with several software firms in Europe and the USA and hope to complete the acquisition in the next six months”, Ganesh Natarajan, Managing Director of Aptech Ltd told PTI. Aptech is looking for software companies with strong customer base and a customer-oriented business strategy. HCL Tech offers shares: HCL Technologies will offer 14.2 lakh shares at Rs 580 per share to individual investors on December 10. The total demand for the company’s IPO was worth over Rs 20,100 crore — issue oversubscribed 27 times. The gross proceeds of
the book built portion comprising 1.2 crore shares amount
to Rs 741 crore while the total size will amount to Rs
823.6 crore, a company release said. — Agencies |
Invest at own risk in Visesh Infosys Opens/Closes:
24-11/29/11/99 Listing: NSE, Bangalore, Hyderabad This issue is being made primarily to raise funds for Visesh Infosystem Ltd (VIL) expansion project besides the upgradation of its facilities. VIL has been engaged in the IT segment for over a decade. VILs first taste of relatively big success came when it launched a new product, Visesh Business Soft in 1998. This product is a complete ERP product using Gui Technology. The upgraded version of this product was launched in 1999 and was named as Visesh Business Pro in Visual Basic with Oracle at the back-end. To enhance its revenue flows, VIL has forayed into educational services, notably, ERP training and e-commerce training and medical data transcription. The financial track-record of the company appears a trifle lopsided with real growth commencing only a couple of years ago. The same can be explained in the context of the recent introduction of new products. On the justification that a sharp jump in profitability has been injected with the successful launch of its new product, VIL’s management has predicted a bottomline in excess of Rs. 4 crore during the current financial year. Although far better looking than ever in the past, this bottomline too is by no means exceptional. Conclusion:
At the offer price of Rs. 50 there is some scope for
gains on listing. Hence, investors who are willing to
bear some risk can consider investing in this issue. |
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