How to beef up States’ coffers
NEW DELHI, Aug 31 — Assocham has outlined an eight-point strategy for beefing up the consolidated fund of States for use by urban local bodies and panchayati raj institutions.

HM told to refund car price
NEW DELHI, Aug 31 — The Supreme Court has imposed a penalty on auto major Hindustan Motors Ltd (HML) for selling a defective car and ordered it to refund the price of the car along with 12 per cent interest to the buyer.

Oil bill at $ 9.8 b
NEW DELHI, Aug 31 — India’s oil import bill is set to touch an all-time high of $ 9.8 billion in 1999-2000 due to the soaring international crude oil prices. The cost of oil imports would be 30 per cent higher than last year’s $ 7.6 billion, PNB Gilt Ltd said in its latest newsletter.

• Returns date extended

Digital Equipment to pay 240 per cent dividend

BANGALORE, Aug 31 (UNI) — Digital Equipment (India) Limited has recorded a 98.5 per cent surge in the net profit during the year ended June 26, 1999, to touch Rs 54.33 crore as against Rs 27.38 crore a year ago.

The company today recommended a 240 per cent dividend for the year after evaluating the available options to return surplus funds to its shareholders and after considering its future investment requirement.

Net sales and income from operations stood at Rs 248.83 crore as over Rs 350.57 crore. Income in the domestic market amounted to Rs 175.05 crore while exports were to the tune of Rs 73.78 crore.

Other income during the period amounted to Rs 3.96 crore while total revenue was Rs 252.79 crore.

Total expenditure amounted to Rs 222.50 crore as against Rs 310.10 crore a year earlier.

The profit on sales of computer products and services business were Rs 41.97 crore.

The company has restructured its businesses and sold its domestic computer products and services business to Compaq Computer India Private Limited for a consideration of Rs 83.99 crore and a non-compete fee of Rs 5 crore. The actual business transfer date was June 26, 1999.

IL&FS to set up jv with L&T

MUMBAI, Aug 31 (PTI) — Infrastructure Leasing and Financial Services Ltd (IL&FS) will pick up around 25 per cent equity in its joint venture with Larsen & Toubro (L&T) for an infrastructure holding company, IL&FS official said.

In the discussions between the two parties it has been tentatively decided that equity allocations between the two companies in the joint venture would be in the ratio of 75:25, with L&T holding the majority stake, IL&FS, Chief Executive, S. Dayal told PTI.

In order to increase its focus on infrastructure sector, the board of L&T has decided to form a holding company which will be responsible for executing projects.

Another joint venture, again in the form of a holding firm, for executing power projects is also in the pipeline. However, this is still in preliminary stages of discussion, Dayal explained, adding that this was because power projects were being executed slowly.

L&T was also talking to American Insurance Group (AIG) and Singapore Development Corporation in connection with the holding companies.

While AIG is interested in financing power projects, IL&FS is interested in participating in both the ventures.

‘Let market decide rates’
Tribune News Service

NEW DELHI, Aug 31 — High interest rates in the country restrict the growth of the infrastructure sector and act as a burden on the economy, a leading economist has said.

Speaking at an interactive session on “ Is the economy really doing well”, organised by the CII here today, the President of the Oxus Research and Investments, Mr Surjit Bhalla, said the interest rates should be market-determined unlike the current practice of being regulated by the Finance Ministry and the RBI.

Good agricultural production has made the economy stronger and an improved external environment is a positive sign for the export sector. Unless a drop in the interest rates takes place foreign investment in the infrastructure sector may not flow into the desired extent.

There were no fundamental differences between the manifestos of the Congress and the BJP, Mr Bhalla said adding that the new Government would have to tackle the issues on a priority basis.

Senior Adviser to the CII T.K. Bhaumik said massive investment was required in the infrastructure sector for an accelerated growth.

Technological upgradation in the industrial sector was imperative for gaining competitive advantage internationally, he said, adding that the agriculture sector has to grow at a steady rate of 4 per cent for an elongated period of time.

The Editor of Business Standard, Mr T.N. Ninan, said overcapacities created during the boom phase were restricting capital infusion in the industrial sector.

HFCL launches hospital software
Tribune News Service

NEW DELHI, Aug 31 — Telecom major, Himachal Futuristic Communications Ltd (HFCL), today entered the IT sector by unveiling “MediSoft”, a software prescription for hospital management.

“To address the growing needs of quality patient care in the health care industry HFCL-Informatics, in cooperation with medical fraternity has developed MediSoft - an integrated Hospital Management System - using Developer 2000 and Oracle 8.0.4. MediSoft is developed under client/server architecture,” the chairman of HFCL group, Mr Mahendra Nahata.

The software costing Rs 5 lakh has been installed in Dayanand Medical Hospital, Ludhiana and the blood bank of the Indian Red Cross Society.

Mr Nahata said that the Medisoft is a comprehensive software for hospital management both for general and speciality hospitals.It consists of a comprehensive set of programmes to manage the reception, out-patient department, in-patient department, nursing care, clinical diagnosis, pharmacy, billing, accounts, stores, purchase and general administration.

Apart from the hospital in Ludhiana, advanced discussions are going on with three more hospitals to provide turnkey solutions to set up total information systems based on MediSoft. International launch of the software is planned in October 1999 in Medica Exposition in Germany.

How to beef up States’ coffers

NEW DELHI, Aug 31 (UNI) — Assocham has outlined an eight-point strategy for beefing up the consolidated fund of States for use by urban local bodies and panchayati raj institutions.

In a strategy paper submitted to the Finance Ministry today, Assocham President K.P. Singh has recommended a package for sustainable development of physical infrastructure to raise the living standards of the rural and urban poor.

The recommendations, inter alia, include the grants-in-lieu of railway passenger traffic (non-suburban) should be separately quantified and earmarked for municipalities/local bodies according to a pre-determined formula.

The State Governments should explore the possibility of increasing taxes from the identified sources or levying fresh taxes for sharing with municipalities/local bodies.

The exemption from taxes enjoyed by the Union and State Governments by virtue of the constitutional provisions under articles 285, 287 and 289 should be reviewed insofar as these relate to the properties of the Union/State Governments.

Though otherwise subject to taxation by the municipalities/ local bodies, such properties escape the tax net because of the constitutional exemption provided.

The municipalities/local bodies exempt properties from house tax up to specified coverage. Now that the income tax authorities have on the basis of “one by six criteria” identified potential tax assesses in metropolitan and other towns, Assocham has suggested that as a result of the tax widening base by income tax, exemption from house property be reviewed and the some criteria as applicable for IT for property tax liability be made applicable.

A small per transaction tax on banking transactions may be levied and the proceeds utilised for providing a measure of safety net for teachers by way of pension, gratuity coverage etc.

The corpus for the fund, besides the proceeds from this levy, may comprise a matching contribution of the States and the concerned beneficiaries at rates to be determined through a actuarial calculations. The management and utilisation of the fund should be through statutory trusts specifically set up for the purpose on the pattern of EPF.

The chamber said that even after 50 years of planning, India spends only 3.8 per cent (of GDP) in terms of public expenditure on education. For education, a ‘cess’ may be considered for levy the proceeds of which may be shared with the States with the stipulation that the States transfer an earmarked percentage to their municipalities/local bodies according to a pre-determined formula. Such funds be utilised by the recipient grantees only for strengthening educational levels and building infrastructure.

For proper utilisation of funds, the chamber has called for appropriate monitoring mechanisms for strict adherence by the concerned recipients of funds.

While Assocham commended the adequacy of transfers to the States by way of earmarking from statutory share for the States and grants for onward transmission to municipalities/local bodies for social infrastructure needs, it has strongly urged that the municipalities/local bodies should be subject to the discipline as the 11th Finance Commission may prescribe.

No plan to reintroduce Uno Trend

NEW DELHI, Aug 31 (UNI) — Fiat Auto S.P.A. has decided not to reintroduce the stripped down version of its popular small car Uno — Uno Trend — in the Indian market as a mass sale product.

“The Trend was introduced in a bid to stave off increasing competition in the segment. However, later we noticed that customers preferred a fully-loaded car to a stripped down version and this prompted us to take them off regular production,’’ Mr Gianni Ravina, Managing Director of Fiat Indauto Limited (FIL), told UNI here.

Fiat has decided to price its second world car for India, Palio, in the Rs 4 lakh to Rs 5 lakh bracket.

However, the final price tag that the hatchback vehicle would sport is yet to be decided.

HM told to refund car price

NEW DELHI, Aug 31 (PTI) — The Supreme Court has imposed a penalty on auto major Hindustan Motors Ltd (HML) for selling a defective car and ordered it to refund the price of the car along with 12 per cent interest to the buyer.

A Division Bench comprising Justice S. Saghir Ahmad and Justice D.P. Wadhwa uphelding Madras State Consumer Disputes Redressal Commission’s judgement, directed the HML, the maker of “Ambassador Nova” to return Rs 1,77,200, the price of the car and 12 per cent penal interest from the date complaint was filed before the forum. The court also ordered HML to pay Rs 50,000 as compensation for mental pain and agony.

Oil bill at $ 9.8 b

NEW DELHI, Aug 31 (PTI) — India’s oil import bill is set to touch an all-time high of $ 9.8 billion in 1999-2000 due to the soaring international crude oil prices. The cost of oil imports would be 30 per cent higher than last year’s $ 7.6 billion, PNB Gilt Ltd said in its latest newsletter.

The prices of crude oil which touched a low of $ 10 per barrel early this year shot up to rule over $ 18 a barrel following the organisation of Petroleum Exporting Countries decision to cut production of crude in the second quarter of the calendar year.

Besides a sharp rise in the crude prices about 40 per cent rise in India’s oil refining capacity touching 60 million tonnes this fiscal will also contribute to zooming import bill.

Returns date extended

NEW DELHI, Aug 31 (PTI) — The Government today extended the last date for filing returns for non-corporate taxpayers having income from business or profession to September 30.

Earlier the last date for filing returns for the assessment year 1999-2000 for non-corporate tax payers earning income from business or profession but do not have to file audit report was August 31. The last date for filing the wealth tax will also be September 30, an official release said.

Forex
US $ Rs 43.48/49
Stg £ Rs 60.83/86
Euro Rs 45.95/97
Jap yen (100) Rs 39.76/79

Price index
SHIMLA, Aug 31 (PTI) — The consumer price index for industrial workers base 1982-100 registered an increase of four points during the month of July 1999 and stood at 424. The index had recorded 12 point increase during the same month last year, Labour Bureau sources said.

Training
Tribune News Service
CHANDIGARH, Aug 31 — A two-day training programme on Caterpillar Engines organised by TIL Ltd, the authorised dealer of Caterpillar Engines and diesel generating sets in Northern and Eastern region, concluded here today. The participants were taught on the preventive maintenance and operation of the engines.

HDFC
Tribune News Service
CHANDIGARH, Aug 31 — HDFC has reduced interest rates by 1 per cent for loans between Rs 5 lakh and Rs 10 lakh. Loans from Rs 10,001 to Rs 10 lakh will be available at 13.50 per cent per annum.

SBI function
Tribune News Service
CHANDIGARH, Aug 31 — The SBI’s PEC branch celebrated its silver jubilee today by distributing sweets to customers. The staff purchased breakfast and other items for the mentally retarted and orphans of Mother Teresa School in Sector 23. A senior citizens’ meet was also organised where the first 10 customers were honoured.

Canara Bank
From Our Correspondent
AMBALA, Aug 31 — Canara Bank started a leather craft workshop for women at Bal Bhavan here today. It will continue for seven days. Mr B.S.N. Murti, Divisional Manager, inaugurated the workshop.