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Govt to present white paper on PSUs within two months NEW DELHI, Aug 15: Government will present a white paper on the status of 40 Public Sector Units ......more Committee to study organic cotton cultivation suggested COIMBATORE, Aug 15: The Centre should appoint a high-level committee to look into....more
Allow Indian FIs to fund NEW DELHI, Aug 15: Confederation of Indian Industry asked the Finance Ministry......more Encouraging performance during quarter: BOB chief KOCHI, Aug 15: The quarterly performance of Bank of Baroda (BoB) during....more |
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Sumitomo Bank to provide five billion yen to NTPC NEW DELHI, Aug 15: Sumitomo Bank will provide a five billon yen (about Rs 250 crore) loan to National Thermal Power Corporation (NTPC) to help the.......more Max India dilutes stake in NEW DELHI, Aug 15: Max India has sold 24 per cent stake in the 50:50 Penicillin-based Bulk Pharmaceutical Joint Venture Max GB to the foreign.....more
States, private sector NEW DELHI, Aug 15: Government is likely to throw open foodgrain procurement to State Governments and private parties.....more
Videocon to invest Rs 600 AURANGABAD, Aug 14: Consumer electronics major Videocon will invest Rs 600 crore over...more |
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Committee to study organic cotton cultivation suggested COIMBATORE, Aug 15: The Centre should appoint a high-level committee to look into various aspects of organic cotton cultivation in the country, a senior scientist at the Central Institute for Cotton Research (CICR), has suggested. Considering the scope and importance of organic cotton, the Government should appoint a technical committe of experts drawn from the Indian Council for Agriculture Research, Agricultural Universities, Cotton Corporation of India and representatives of mill owners and organic cotton farmers to study the issue, Dr K Venugopal, Project Coordinator (cotton), CICR told PTI. Stating that cotton played an important role in the Indian economy, he said more than one-third of foreign exchange earnings were from export of cotton and cotton textiles. He said there was strong preference in recent years for eco-friendly organic and coloured cotton in europe, USA, Australia, New Zealand and other developed countries. Even otherwise, there was a dire need to minimise the use of hazardous pesticides in sustaining cotton production, he added. Venugopal said India, as the world’s largest cotton grower, was cultivating all four species of cultivable cotton in diverse agro-climatic conditions. As such, there was vast scope for production and global marketing for organic cotton at a premium, he said. He said nearly 60 Zer cent of the area was managed by resource-poor farmers and about 25 per cent under high-risk dry farming conditions, where farmers seldom applied fertilisers, chemicals and pesticides. Stating that these were ideal locations for growing organic cotton, he said many areas in Gujarat, Karnataka and Southern Tamil Nadu, where desi cottons and their hybrids were grown, could be diverted for full-fledged organic farming. He suggested that farmers in these areas be trained in organic cotton production technology. Venugopal also laid emphasis on the need to enact specific organic cotton regulations, national standards and certification procedures for production and export. These efforts would greatly reduce use of chemical pesticides and make organic cotton cultivation a ‘business agriculture’ for profit and progress, he added. (PTI) |
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Allow Indian FIs to fund overseas investments: CII NEW DELHI, Aug 15: Confederation of Indian Industry asked the Finance Ministry to allow Indian Financial Institutions to fund investment requirements of wholly-owned subsidiaries and joint ventures set up by Indian companies overseas. "It is critical for Indian companies to access Indian financial institutions for their funding requirements abroad to pursue their overseas investment strategies in a most effective manner," the chamber said in a letter to Finance Minister Yashwant Sinha. The chamber said Indian companies were exploring globalisation possibilities, but were facing constraints relating to availability as well as pricing of offshore debt from international financiers to fund such transactions. "Lack of a foreign currency balance sheet and lack of an overseas performance track record of these Indian companies is hindering availability of funds at competitive cost in the international market," it said. Several sectors of the Indian economy with significant global competitive advantages, are actively looking for strong value creation opportunities through overseas investments, CII said while citing instances of sectors including information technology, pharmaceuticals, textiles and food processing. The keen interest being taken by Indian companies in overseas investments is also demonstrated by the increase in the level of overseas direct investment approved by the RBI from 235 million USD in 1996 to over 801 million USD in 1999, the chamber said. CII said that many Indian financial institutions were willing to extend credit overseas but were constrained by RBI guidelines on overseas lending. Currently, only banks are allowed to extend credit overseas to the extent of five per cent of their unimpaired tier-i-capital out of their foreign currency accounts, it said. CII further pointed out that it was common practice that globalisation efforts of any company were initially supported by the home-country banks of that corporate and the same should be followed in India. Indian financiers have a better understanding of the company’s business and appreciation of the quality of the credit, CII said. The chamber further said that Indian financiers have the ability to effectively look at the combined strengths of the Indian and overseas entities, so as to structure an optimal financing package in a manner which would not be possible by an international intermediary. "Our financial institutions are ideally positioned to evaluate long-term viability and extend credit for these overseas investments since they have built up considerable appraisal skills," it said. (PTI) |
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Encouraging performance during quarter: BOB chief KOCHI, Aug 15: The quarterly performance of Bank of Baroda (BoB) during the current financial year had been encouraging with net profits reaching Rs 151.78 crore, a 16.5 per cent increase, according to P S Shenoy, Chairman and Managing Director of the Bank. The global deposits had increased to Rs 51,450 crore with an annual growth of about 16 per cent in the first quarter in this millenium, Shenoy told reporters after a meeting of the board of directors here yesterday. He said operating profits had touched Rs 1051 crore, while net profits stood at Rs 502.77 crore in 1999-2000. A record dividend of 40 per cent was also recommended during 1999-2000 period, he said. Total global business stood at Rs 75,700 crore during the period, with global advances reaching Rs 51308.19 crore and deposits at Rs 24392.91 crore. Overseas operations contributed 21 per cent of the profit during the 1999-2000. BOB had already started a Rs 500 crore major technological upgradation programme, he said, adding that the first phase, costing Rs 250 crore, would be completed soon. Shenoy said BOB had set a target of achieving an operating profit of Rs 1,500 crores. Net profits this fiscal were expected to touch Rs 750 crore. BOB was also exploring the possibilities of entering into the insurance sector, he said The bank proposed to open seven new branches in Kerala by this year-end, which would increase the total number of branches to 50 in the state. BOB had taken up computerization of branches in a big way, to meet competition, he he said adding 23 branches in the state had already computerised. The bank had advanced around Rs 300 crore and made other investments of around Rs 200 crores in various bonds and securities in the state, Shenoy said. (PTI) |
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Sumitomo Bank to provide five billion yen to NTPC NEW DELHI, Aug 15: Sumitomo Bank will provide a five billon yen (about Rs 250 crore) loan to National Thermal Power Corporation (NTPC) to help the power utility repay its costly yen loan. The mandate for the bank was given last month and a final loan agreement with NTPC was likely to be signed by end of September, NTPC officials said today. NTPC had taken a five billion yen loan from the Japanese Export and Import Bank (J-EXIM) at an interest rate of about 2.5 per cent over London Inter Bank Offered Rate (LIBOR) for funding its various power projects including the Ramagundam thermal power station, the officials said. The loan from Sumitomo Bank would be at an interest rate of about 1.4 per cent to 1.5 per cent over libor and this would help NTPC save about Rs six crore, they said. The Corporation had earlier also repaid its costly loans through re-financing to save higher interest rates. The deal was arranged by SBI Caps, the officials said. NTPC, with an existing generation capacity of over 19,000 mw, has set an ambitious target to become a 40,000 mw plus company by the end of 2012 for which it is also negotiating with various financial institutions and commercial banks to arrange credit for the future projects. NTPC is negotiating with various financial institutions and commercial banks for a credit line of over Rs 2,000 crore to fund various power projects during the next three years. The Corporation is talking to 14 commercial banks and two financial institutions for the propose, the sources said. NTPC Board has approved the proposal for raising a credit of over Rs 1700 crore from 11 banks and financial institutions while the proposal for tying up an additional credit line of over Rs 300 crore has already been submitted to the board for clearance, the sources said. The company is also planning to raise about Rs 200 crore from Housing Development Finance Corporation (HDFC) for which a proposal to the board is being prepared, they said. NTPC had recently signed a loan agreement with Bank of Maharashtra for a credit of Rs 100 crore at fixed interest rate of 12.10 per cent to be repaid over a period of seven years, they said. The Corporation has also entered into an agreement with financial institution ICICI for a second tranche of Rs 500 crore loan, the sources said. The company is negotiating with United Bank of India for a credit line of Rs 350 crore and Rs 300 crore from Uco Bank at a fixed interest rate of 12.50 per cent annually, the sources said. (PTI) |
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Max India dilutes stake in pharma JV to 26 per cent NEW DELHI, Aug 15: Max India has sold 24 per cent stake in the 50:50 Penicillin-based Bulk Pharmaceutical Joint Venture Max GB to the foreign partner Dutch Giant DSM for Rs 26 crore. With this sale, Max’s stake in the JV has been diluted to 26 per cent, and Gist Brocades (GB), which is now part of DSM, takes management control by becoming the 74 per cent stake holder in Max GB, a senior Max India official said here today. "Given Max’s changing focus - where the future growth engines are expected to be information technology, healthcare and insurance, but no longer the bulk pharmaceuticals business, we have decided to reduce our holding in Max GB from the current level of 50 per cent to 26 per cent," Managing Director of Max India Vivek Jetley told PTI here. He said as a result of this decision, Max is expected to receive Rs 26 crore in the second quarter of fiscal 2000-01. While denying any immediate plans to offload the remaining 26 per cent too in the partner’s favour, Jetley said this route could be considered some time later, if the group needed money to invest in its various other upcoming ventures. "We’ve completed this phase of disinvestment and further disinvestment is not on the cards right now," he said. Gist-brocades had subscribed to fully convertible debentures aggregating to Rs 88.92 crore issued by Max-GB as per an agreement in 1998-99. As per the pact, upon conversion of these debentures in two to seven years’ time, Max’s stake in the JV would have come down from 50 to 24.9 per cent. "These convertible debentures will now be converted into a 10-year loan and consequently our earlier right to acquire fresh equity shares in Max GB to take our holding back to 50 per cent will cease to exist," he said. "In view of growing integration between domestic and international markets and the constant need for technology upgradation, Max GB’s business is very heavily dependent on DSM anti-infectives, who are undoubtedly very heavily committed to this business," Jetley said adding it was best to let the JV partner control the business they understood best. He said the market for penicillin and its derivatives continued to experience a difficult period during the last fiscal globally, with price erosion and margins affecting all players in the business. Despite the slowdown, Max GB’s turnover grew by 36 per cent, from Rs 147.6 crore in 1998-99 to Rs 201.2 crore in 1999-2000. Operating profit during the period was, However, down to Rs 3.29 crore against Rs 3.38 crore in the corresponding period pervious year. (PTI) |
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States, private sector may
be roped in for NEW DELHI, Aug 15: Government is likely to throw open foodgrain procurement to State Governments and private parties in line with the recommendations of the Expenditure Reforms Commission, Consumer Affairs and Public Distribution Minister Shanta Kumar said. "We are considering the proposal to allow both the State Governments and the private sector in the procurement of foodgrains as it will help in reducing the huge procurement cost incurred by the Government," the minister told PTI. He said there was need to change the existing procurement system and induce private sector participation in a big and organised way. "We have already paved the way for private sector’s entry into the storage process with announcement of the national foodgrains storage policy," Kumar said. Involving the private sector would help in reducing the cost and also help in better management of surplus produce. The Expenditure Reforms Commission had said in its report on "food subsidy" that State Governments and private sector should be induced to enter foodgrains trade, including procurement, storage and exports by moderating the increase in MSP effected every year. According to ERC’s report State Governments and private sector with surplus foodgrains could be allowed to procure, sell and also export upto 3 million tonnes of rice and five million tonnes of wheat every year. It had also said that the process should be free from every form of Government intervention for at least 15 years and if there was a drop in foodgrains production in any year, "domestic consumption requirements would be met through imports." Currently, foodgrains like rice and wheat are procured by the Food Corporation of India, at huge economic costs of Rs 830 per quintal for wheat and Rs 1130 per quintal for rice respectively. This along with the carrying cost of Rs 2200 per tonne per year builds up on the total cost, making the foodgrains costlier in the market. This year, the Government is saddled with excess stocks to the tune of 37 million tonne, about 13 million tonne in excess of the minimum buffer stock needed for food security in FCI godowns. Though, the Centre has announced special schemes to dispose of the wheat stocks, it has failed miserably. (PTI) |
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Videocon to invest Rs 600 cr in hiking TV capacity AURANGABAD, Aug 14: Consumer electronics major Videocon will invest Rs 600 crore over the next one year in doubling both its Colour Television (CTV) as well as component production capacities. The company, which has set up an automated CTV manufacturing plant here in collaboration with Japanese partner Toshiba Corporation, has already decided not to enter into the proposed joint venture with Chinese company Onwa for CTVs, Chairman of Videocon International Limited V N Dhoot said here. "We have chalked out major plans for expansion of our Indian operations at Rs 600 crore investment over the next one year, of which Rs.200 crore has been put into the new CTV plant," Dhoot told PTI. He said instead of the earlier proposal of signing a joint venture with Onwa, Videocon had decided to invest in setting up a world-class, fully automated plant for televisions to make and sell top-quality internet televisions in the domestic market. "Toshiba will give us the latest internet TV technology and a separate line will be installed at the new site for producing these sets. We also have a tieup with Telecruz of USA for providing the chip needed for these specialised televisions," Dhoot said. He said the remaining Rs 400 crore investment will be put into doubling the glass shell plant capacity to six million units per annum. Dhoot said with this latest increase in production capacity, Videocon will increase the export of SKD (semi-knocked down) television kits to European, South African and middle eastern markets. "We now have global scales as well as standards of manufacturing. The new plant - with a line each at Chitegaon and Bhalgaon near Aurangabad - has an installed capacity of about 10,000 ctvs per day," he said. Speaking after inaugurating the new plant here, vice-president (corporate affairs of Asia oseania region) for Toshiba Sumitada Hatakeyama said his company was planning to increase its Indian presence. "We realise that we are not doing too well in India at present. This enhanced collaboration with Videocon will increase our exposure but three-four years down the line we may set up independent operations here," Hakateyama said. Toshiba already has a joint venture with the Dhoots called Videocon Communications Limited where the two partners hold 26 and 25 per cent equity respectively whereas the remaining 49 per cent is held by the public. VCL makes DVDs and other audio products for the Videocon group. Videocon also announced ‘Aap Banenge Crorepati’ contest for all its consumers as well as dealers on having gained a five crore consumer base in the 16th year of its operations. As per the scheme which is valid from August 15 to September 30, each TV, washing machine or refrigerator purchase entitles the consumer to scratch-and-win gold besides other prizes up to one crore rupees on answering seven accompanying questions. Commenting upon the recent restructuring of the videocon group in eight Strategic Business Units (SBUs), Dhoot said this was done to maximise efficieny. "We have now divided operations of the group into eight different profit-centres, each reporting to the board of directors and responsible for individual product sales. This was done as per McKisney’s recommendations," he said. The eight proposed SBUs (Strategic Business Units) will be responsible for manufacturing, after-sales service, the three colour television brands of Sansui, Akai and Videocon, and product groups television, washing machines and refrigerators respectively, he said. With the creation of these eight different business units, each of the brands/product categories will be looked after by a dedicated team of people, committed to maximising output product/brandwise. This in turn will make the company’s operations specifically focussed on the brand or a particular product category. Speaking on the company’s future growth strategy, Dhoot said he will invest substantially in upgrading manufaturing for other products like washing machines, air conditioners and compressors soon. Videocon group is chasing a near 100 per cent hike in sales turnover to Rs 5,000 crore this year against Rs.2700 crore last fiscal. (PTI) |
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