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Tuesday,
December 18, 2001, Chandigarh, India  
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Software to cut T&D losses
Power theft costs PSEB Rs 2 cr daily
Hard graft key to my success: Premji
‘Abolish duty on aluminium import’
HP coop bank unveils loan schemes |
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to foray into car finance market New Delhi, December 17 India’s largest car maker, Maruti Udyog will foray into the domestic car finance market next month, Managing Director Jagdish Khattar said.
Hind Zinc slashes workforce by 1,600
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Software to cut T&D losses New Delhi, December 17 Sources said the boards are in touch with several companies to find out the new technologies available to reduce T&D losses. One such company with which the boards are in touch is KLG SYSTEL, which has successfully implemented information technology solution in several cities in Uttar Pradesh, which had enabled the state electricity board to reduce the T&D losses by about eight per cent. Mr Devtosh Chaturvedi, the group head of the company told The Tribune that the company had carried out the study in UP, where the state was under pressure from the World Bank to control the T&D losses and carryout the reforms in the power sector. “We carried out the study to identify the areas where losses occurred and suggested measures that needs to be taken to recover the revenue,” he said. The losses were categorised into technical and non-technical losses. In the technical side were the distribution network andin the non-technical arena were the energy reading, billing and distribution of invoices, debt management. The software developed by the company, he said enables the board to further classify the non-technical as theft, tampering, faulty meters, meter reading errors, invoicing errors and collection losses. He said the solution segments the existing base, identify the best customers as well as troublesome customers. Mr Devtosh said “the use of technology could help the boards to tap the energy from the generation side to the last consumer. The loss at each place could be identified which would prove beneficial to the board.” “Electronic metering, with syncronous reading at the consumer side and at the distribution site would help in reducing the human error aspect, which would result in increased revenue collection and reduce disputes,” he added. According to the
latest figures released by the Union Power Ministry, the T&D losses have gone up from 22 per cent in 1992-93 to 26 per cent in 1998-99. During the same period, the T&D losses in Punjab went down from 19.24 per cent in 1992-93 to 16.83 per cent in 1998-99. In the neighbouring state of Haryana, the T&D losses continue to follow the national trends, where it rose from 26.78 per cent in 1992-93 to 33.81 per cent in 1998-99. |
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Power theft costs PSEB Rs 2 cr daily A high court decision on the PSEB has unnerved the Punjab Government. The court has directed the PSEB to ensure 3 per cent return on the capital. In this context the question of free power to agriculture becomes the focal point. With this hefty outgo of revenue the PSEB cannot prevent heavy loss and positive return on capital is impossible. In response to this situation the government has said it can ensure 3 per cent return by improving efficiency, checking power theft and increasing power tariff. Similar statement was made at the time when free power was started. Now talk about inefficiency. The board is overstaffed. Over a told revenue of Rs. 4,668.73 crore as per revised budget estimate for 2000-2001 the PSEB spends Rs. 1193.60 crore on establishment. For every million units of supply the PSEB has over 4.5 employees. This ratio for some other states is: Gujarat 1.9, Bihar 5.5, Orissa 5.5, Uttar Pradesh 3.5, and West Bengal 3.9. Punjab is the smallest in area and population compared to these states. In Punjab, power delivery is heavily concentrated in a few industrial towns with compact loads. So for Punjab this ratio should be taken as three to four times if these relevant factors are taken into account. The management of the PSEB is really very heavy in real terms. It has a team of 32 Chief Engineers. If somebody comes out with the ratio of administrative charges to revenue then ratio of concentrated load to scattered load should also be seen. This speaks of intentions of the state government as well as that of the PSEB to reduce loss. As for the power theft the lesser said is the better. The outgoing Chairman revealed that there is a theft of Rs. 2 crore a day. This becomes more than Rs 700 crore. Despite his intention to reduce, theft has increased. Some board’s official admit in private that free power is highly accompanied by stolen power. Concession of free power was given for only agricultural purposes, but it is also being used for other purposes. The PSEB showed loss of Rs. 1,476.45 crore in its revised budget estimate for 2000-2001 and actual of 1,442.96 crore was recorded up to February 28, 2001. This cannot be wiped off by false claims of improved efficiency and checking pilferage. So it seems as if consumers would face a high rise of power tariff. This situation spells doomed for the industry. Once with the cheapest power the state is going towards the highest. The power rate is very crucial for Punjab as the production of major raw materials for the industry is highly power intensive. Then this land locked state poses all disadvantageous to the industry. The government pronounces that it intends to revamp the PSEB. All exercises will be of no consequence with hefty revenue outgo by way of free power. The Centre is also bringing legislation under which state government has to meet the cost of subsidised power through its budget. This means that Punjab’s industry and trade can expect heavy doses of taxes. |
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Hard graft key to my success: Premji
London, December 17 Azim Premji was a student when his father had a fatal heart attack and he was thrust into Wipro, the family’s hydrogenated cooking-fats business. He had no long-term ambition to stay with the firm, based at Amalner, east of Mumbai, until shareholder, Karren Wadia, attacked him for his lack of experience and questioned his ability. The event was a catalyst for Premji, who from that point on made it his business to prove his disbeliever wrong. He succeeded, and has become the richest Indian, with a £ 4.8 billion fortune. Premji who is in London on a world tour of his business interests, diversified into technology and over 30 years has built Wipro into India’s biggest software company. It listed in New York last year and is valued at £ 5.9 billion. It is Microsoft’s software-development partner in India and Premji, 56, who owns 80 per cent of the company, is seen as the Bill Gates of India. At 21 he returned to India to pick up the pieces after his father’s death. He had been in his third year studying engineering at Stanford University in California five weeks before his first annual meeting as Chief Executive of a listed company. It was then that Karren Wadia embarked on a sustained campaign to oust him and sell the business. “It was the best thing that ever happened to me,” says Premji. “I owe him a big debt because he got my fighting spirits up. He was a real terror in Mumbai...Who bought a couple of shares in businesses, had studied law and actually knew what he was talking about. “He wanted firms to take him on as a paid consultant, effectively buying his silence. He figured that by embarrassing them they would be flexible with him and give him what he wanted. This was how he made his living, but we refused,” Premji said in an interview published in the Sunday Times today. Premji had no real passion for hydrogenated cooking fats but felt he had a duty to look after his father’s business. It had been run from the top and certain issues required immediate attention to keep it on track. Wipro had been static from 1947 until Premji took over in 1966 and he felt he needed to delegate authority to enable the company to expand. He focused on strengthening the core business and put in a layer of managers to expand distribution. After 10 years of building the company, to critical mass, Premji started to diversify, at first with oil-seed crushing and other related areas and then into branded light bulbs and soaps. In 1979 technology caught his attention. He saw it as a huge growth area. “IBM was selling junk in India,” he says. “It left the country because the government told the company that it could no longer sell its cast-offs, its second-hand machines. Premji thought there was an opportunity because the local companies had not invested much in technology. He hired scientists from India’s space programme and defence companies who helped to build a mini-computer and custom-made software. It took another decade for Wipro to become India’s largest computer company. It is now mostly focused on its software business and creates bespoke packages that integrate e-business capabilities into existing networks. Transco, Thames Water and Thomas Cook are all clients. Premji has been acquisitive and is shopping in America for a $ 500 million addition — he is in talks with three companies. He says the key to his success is hard graft. “I work very hard,” he says. “So I’m able to out compete equally bright people. I have good instincts on what works and what does not and my biggest weakness is that I do not take enough risks. PTI
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‘Abolish duty on aluminium import’ New Delhi, December 17 “The unrealistic high price of Aluminium in the
domestic market is adversely affecting secondary manufacturers and the high protection of 30.8 per cent effective Customs duty only benefits primary producers,” said Mr H Shankar, president of the association. “Even though the cost of production of aluminium in India is about Rs 45,000 per metric tonne against world average of Rs 52,000 per metric tonne, the selling price in India is about Rs 82,000 per metric tonne against the prevailing international price of Rs 64,800 per metric tonne (as per the London Metal Exchange rates),” he said. In Parliament, the government has accepted the varying prices of aluminium in the domestic and international market, he said, adding that “still no step has been taken to remove the disparity.” Though India has the seven largest bauxite reserves, yet the per capita domestic consumption is at a poor 0.6 kg per person compared to global standard of 25 kg per person per annum. The association said there is a need to abolish the Customs duty on import of aluminium so that domestic prices come down to international level, which would also not affect the primary producers as they are exporting it at that level. |
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HP coop bank unveils loan schemes Shimla, December 17 The new areas which the bank has chosen for finance include tourism and hydel power generation. The bank has launched a scheme to provide loans for the construction of hotel, in areas identified by the Department of Tourism under which both individuals and cooperatives are eligible to get finance for their ventures. The main attraction of this scheme is that no collateral security is required by the bank to secure its advances except the hotel constructed. The bank is also financing for execution of hydro electric projects in the state. A mini hydro electric project financed by the bank in Kinnaur district is nearing completion. To help educated unemployed youths to set up their own business, the bank has launched a “self-employment loan scheme”. Besides, the scheme has been incorporated with a maximum admissible loan limit of Rs 2 lakh to assist brilliant students to pursue higher studies. The bank has also approved a “Kisan Credit Card” scheme. Under it, farmers will get loan up to Rs 1 lakh for raising crops and a scheme for the purchase of tractors and power tillers as approved by NABARD has also been introduced. It will help floriculturists and horticulturists in maintaining their crops and marketing of their produce. Under the “Rural Housing Scheme,” loan to the extent of Rs 40,000 is advanced on liberal terms for construction of dwelling units. It has entered into a tie-up with the Himachal Pradesh Scheduled Castes and Scheduled Tribes Development Corporation and the state Women Development Corporation for extending credit. The bank has introduced some other schemes for assisting weaker sections to acquire cooking gas connections, advances to pensioners for their credit requirements for social ceremonies and medical expenses, financing individuals for purchase of vehicle for commercial use. Recognizing the good services of the bank, SIDBI has included it in the list of eligible institutions to implement the National Equity Fund Scheme for providing soft loans to the beneficiaries at an interest rate of 5 per cent. Besides, a soft loan scheme of NABARD is also being implemented. The NABARD funds the bank free of interest and it charges only a nominal interest from the beneficiary. The net profit of the bank has gone up to Rs 23.36 crore on March, 2001, and the total advances stood at Rs 309.11 crore and the investment made in different sectors amounted to Rs 945.38 crore. The bank had share capital of Rs 7.32 lakh and working capital of Rs 52.23 lakh when it was opened. But now it has gone up to Rs 708 lakh and Rs 1365.11 crore, respectively. The deposits of the bank, which stood at Rs 41.14 lakh in 1955 increased to Rs 1173.39 crore as on March, 2001. To provide better services, all branches of the bank are being brought under the “Core Banking Solution”. With this, the bank will be capable of extending “anywhere banking” facility to its customers. |
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Maruti to foray into car finance market
New Delhi, December 17 “We will have a full-scale launch of our car finance business in Mumbai next month. Thereafter, there will be a phased national rollout,” Khattar told PTI here. He said the auto finance business to be offered under the ‘Maruti Finance’
brand name would be conducted through its 240 dealerships in the country.
Valuation report
Valuers for Maruti Udyog Ltd’s disinvestment are unlikely to submit their report before the year end as desired by the government and are now expected to finalise their findings by January 15, 2002. “Valuation report for MUL is unlikely to be ready by the end of this year” official sources said, adding the report was likely to be finalised by January 15, 2002.
Market share
Maruti has been able to retain a market share of 60 per cent despite slowdown in economy and a sluggish automobile market, said Mr Khattar. “With liberalisation and entry of bigger players in the automobile market, the MUL had lost some ground in the near past but had recovered quickly”.
PTI |
Hind Zinc slashes workforce by 1,600
New Delhi, December 17 “We have been successful in further reducing our workforce by nearly 16 per cent through a separation scheme”, a highly placed company source said. The company is learnt to have incurred an expenditure of Rs 108 crore on the scheme in which 1370 workmen and 230 officers have opted for retirement.
LIC House Fin The Life Insurance Corporation Housing Finance Limited (LICHFL) is contemplating to set up “assisted living community centres” for the senior citizens in tune with the similar facilities available in western countries. Regional Manager of LICHFL, C.R. Aithal said, the centres to be set up with an estimated cost of Rs 10 crore would be constructed at places with pleasant environment in the outskirts of metros.
Grasim Industries Credit rating agency, ICRA, has reaffirmed ‘MAAA’ rating, indicating highest safety, for the Rs 30 crore non-convertible debenture programme of Grasim Industries. “Rating factors in Grasim’s low gearing, diversified streams of revenues and strong and stable cash accruals,” ICRA said in a statement here.
Bharti Televentures Bharti Televentures has announced the induction of five new independent directors into the board. They are: Mr P.M. Sinha, Mr N. Kumar, Mr Wong Hung Khim, Mr Pulak Prasad and Mr Donald Cameron.
Shaw Wallace Director of Shaw Wallace Distilleries Amar Sinha has been conferred with the best marketer of the year award by Drinks 2001 organised by Ambrosia, a trusted journal on alcoholic beverages industry.
Jindal Polyester Jindal Polyester Limited, a leading producer of polyester film, is adding a new production plant for the manufacture of biaxially oriented polypropylene (BOPP) film unit having a capacity of 30,000 tonnes per annum. The company will invest Rs 125 crore in establishing the new facility which will involve installation of two new lines. The project will be located at Bhuj in Gujarat. Agencies
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FDI inflows up IT complex SBP telebanking JK Paper ICRA rating
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