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UP facing tight fiscal situation LUCKNOW, Jan 30: The financial crunch in Uttar Pradesh that was so far affecting the general public, has now crept up the ministerial ladder......more
No threat to Vizag power project: Naidu DAVOS, Jan 30: Andhra Pradesh Chief Minister N Chandrababu Naidu has said there was no threat to the Vizag power project but asserted that the ...more Indo-Israeli bilater trade touches one bln dollar mark NEW DELHI, Jan 30: The bilateral trade between India and Israel went up by 47 per cent touching a level of 993 million dollars in the 1999 calendar year ...more Good demand at Calcutta tea auctions CALCUTTA, Jan 30: A total of 99,635 packages on offer comprising all varieties of tea at the Calcutta auction held this week witnessed a good .....more |
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GM mulls commercial vehicle, small car for India NEW DELHI, Jan 30: General Motor Corporation of the US is planning to foray into the resurgent commercial vehicle segment in India. ....more
High level Lanka delegation to revive Free Trade Treaty COLOMBO, Jan 30: India and Sri Lanka will hold final round of discussions on the implementation of the Free Trade Treaty (FTA), amidst reports of the ...more ITPO purposes to set up exhibition, trade centres CHENNAI, Jan 30: The India Trade Promotion Organsiation (ITPO) proposes to set up trade and exhibition centres in all states in partnership with the ...more
India to appoint global
adviser for finding LONDON, Jan 30: After taking a decision to sell a majority 51 per cent stake..more |
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UP facing tight fiscal situation LUCKNOW, Jan 30: The financial crunch in Uttar Pradesh that was so far affecting the general public, has now crept up the ministerial ladder. In a state where the financial position was so bad that the Government had to go in for an overdraft for the whole of the current financial year excepting about twenty days, the ministers were a hallowed lot receiving their pay on time. Not any longer. Cheques given to ministers for allowances and other expenses have started bouncing, it has been widely reported. Admitting that the "Government of Uttar Pradesh (GOUP) is facing an extremely adverse fiscal situation", an official report says that from a revenue surplus of Rs 250 crore in 1987-88, the state had a large and rising revenue deficit of more than Rs 8,200 crore in 1998-99. "The revenue deficit as a percentage of revenue expenditure, which represents the proportion of operating costs that are financed by borrowed resources, reached 33 per cent in 1998-99", the report said, revealing that "instead of using revenue account surpluses to partially finance public investments, as is the financially prudent course, the Government is making future generations pay for current operating costs". The gross fiscal deficit reached a high level of Rs 11,260 crore, which was 7.7 per cent of the GSDP in 1998-99, and as a result of high and continued deficits running for more than a decade, the indebtness of Uttar Pradesh has risen sharply. The stock of debt was as high as 35 per cent of the GSDP, while interest payments constituted 28 per cent of the total revenue receipts in 1998-99. Some of the other important dimensions of the fiscal crisis facing Uttar Pradesh are the revenue (recurring) expenditure going upto 146 per cent of the revenue receipts of the state, interest payment as percentage of total revenue expenditure rising from 12 per cent in 1986-87 to 22 per cent in 1998-99 and the capital expenditure coming down from 17.30 per cent of total expenditure in 1987-88 to 8.2 per cent in 1997-98. Expenditure on salary and allowances and pension to Government servants was estimated to have touched a high of 47 per cent of the state’s total revenue in 1999-2000 and reaching the level of 77 per cent in case of interest on borrowings. The ratio of development and non-development expenditure in total revenue expenditure has come down from the ratio of 67:33 in 1986-87 to 53:44 in 1998-99, the report added. "Uttar Pradesh has been caught in a vicious circle", the report says, adding that the low growth was not only holding living standards down but also reducing revenue yields. The fiscal crisis is preventing the state from investing enough to provide the foundation for growth and lift social indicators to acceptable levels, it remarks. As the fiscal, governance and infrastructure problems have fed into each other, the slow economic growth has made it very difficult to increase the level of revenue yield in Uttar Pradesh, the report says. The percentage of people below the poverty line in the state was 40.9 per cent, as against the all-India figure of 35.9 per cent during 1993-94 and it had shown a declining trend over the years, but the absolute number of persons living below the poverty line has increased from 530.60 lakh (about 53 million) in 1983-84 to 604.40 lakh in 1993-94, making it clear that the aim of poverty alleviation could not be achieved without reversing the declining rates of economic growth. One of the main concerns of the Government is the "negligible" returns from the investments the state has made in the public sector. The total investment of the State Government in 50 public sector units was to the tune of Rs 13,127 crore till January 1997, but the returns against these investments were negligible, the report stressed. It has identified the inadequate and poor quality of infrastructure, reflecting the low level of investment in the economy, "inadequate and ineffective" spending in the Human Resources Development sector and frequent changes in Government as the main factors that resulted in a "perceptible decline in the quality of governance." (UNI) |
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No threat to Vizag power project: Naidu DAVOS, Jan 30: Andhra Pradesh Chief Minister N Chandrababu Naidu has said there was no threat to the Vizag power project but asserted that the interests of consumers would not be allowed to be compromised while finding a solution to remove the bottlenecks in setting up this thermal station. Negotiations are under way to thrash out differences related to Power Purchase Agreement (PPA) and we have to wait for the outcome before knowing the fate of the project, Naidu told PTI yesterday in an interview on the sidelines of the 30th annual meeting of the World Economic Forum (WEF) here. Naidu, who is attending the WEF meeting for the second consecutive year, said the people of Andhra Pradesh cannot be allowed to be burdened with any new power projects where electricity costs are very expensive than those of the existing power utilities. Naidu said economic reforms package must be to the advantage of the common man. I have to carry people’s interests with me while going in for economic reforms. He said the 1,040 mw Vizag thermal project is hanging fire for several reasons but did not give any time-frame as to how long it would take for the project to take off. Plans for the project to be executed by national power of Britain and the Hinduja group are in the pipeline for nearly six years. The promoters of the Vizag project have reportedly put together the project financing and are ready for financial closure. In reply to a question, Naidu said issues relating to escrow account for the Vizag project can be sorted out as and when the PPA is finalised between the State Government and the project promoters. State Governments are usually asked to open escrow accounts to ensure that the power company is able to collect its dues from the State Electricity Board. Naidu, who is credited with taking initiatives to launch an Information Technology (IT) revolution in Andhra Pradesh, said several Indian and foreign companies have shown interest in assisting the State Government in its plans to set up an incubator for infotech startups. A Hyderabad Information Technology Venture Enterprises Limited, an it venture fund, is planned to be set up by the Government. The Chief Minister said good governance and a good climate for foreign investments was more than enough to bring foreign investors into India. There is excellent technical backup which can support the foreign investors in execution of their projects, he added. Naidu said Andhra Pradesh was able to attract 93 billion dollars in foreign investments including those in the pipeline since the launch of the economic reforms in 1991. Naidu said that he was able to promote Andhra Pradesh as a top investment destination during his interaction with executives of foreign companies since his arrival here on Thursday. We want to attract huge investments in our state in information technology, infrastructure and tourism sectors. Asked about the objectives of the reforms pursued by the AP Government, Naidu said that at the end of the day we have to guarantee Government’s performance, people want prosperity and not poverty and we should help in achieving this objective, he said. (PTI) |
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Indo-Israeli bilater trade touches one bln dollar mark NEW DELHI, Jan 30: The bilateral trade between India and Israel went up by 47 per cent touching a level of 993 million dollars in the 1999 calendar year as compared to 675 million dollars during 1998. The total trade in 1999, reached a new peak of almost one billion US dollars, which is five times the level of trade at 202 million dollars in 1992. According to Mr Amiram Halevy, Counsellor for Economic Affairs, Embassy of Israel here, in 1999 Israel exports to India recorded an increase of 61 per cent as compared to same period last year mainly in the export of raw diamonds which went up by 125 per cent and optical and medical equipment by 200 per cent. He said export of chemicals and pharmaceuticals moved up by 44 per cent, polished diamonds by 46 per cent and textiles by merely seven per cent. India’s exports to Israel increased from 343 million dollars in 1998 to 455 million dollars in 1999 whereas imports from Israel accounted for 538 million dollars in 1999 as compared to 332 million dollars during last year. Mr Halevy in a statement said "a level of one billion dollar bilateral trade was targeted only for the year 2000 but reality turned out to be better than expectations. Furthermore, we have also seen the continued diversification of Israeli exports to India." While diamonds and chemicals constitute the bulk of Israeli exports to India, the trade basket has now been expanded to include electronic machinery and high-tech products, such as telecommunications and medical equipment, education technologies, software and digital printing technology. Together these make up about 13 per cent of the exports in 1999 and this tendency will only strengthen in the future as Indian and Israeli companies realise the potential embedded in their complementing economies, he said. Mr Halevy stated that during 1999 the Electronics and Computer Softare Export Promotion Council (ESC) has signed an MoU with the Electronic Industries Association of Israel. A National Association of Software and Service Companies (NASSCOM) signed an agreement for closer cooperation with their counterparts Israeli Association of Software Houses (IASH). The recently concluded Agritek-99 supporting international agricultural exhibition held at Haifa during September 1999 saw a large contingent of over 1000 visitors from India, he said adding that "we foresee more joint ventures and collaborations in future, specially in the areas of agrotechnology - hybrid seeds, green houses, dairy, poultry,, chemicals - fertilisers, pesticides and farm machinery. Israel counsellor for economic affairs also said that after the visits of small business authority of Israel and Federation of Israeli Chamber of Commerce, India Trade Promotion Organisation (ITPO) is planning to hold a first ever "India week" in Tel Aviv in May 2000 to showcase the industrial strengths and business opportunities to the Israeli market. Over 75 leading Indian companies are expected to participate in the India week. The diplomatic relations between the two countries were established in 1992 a legal framework for trade and economic cooperation was put in place and a series of agreements between the two Governments have been signed, he said. The agreements signed include according most favoured nation status, avoidance of double taxation, bilateral investment protection, customs cooperation, joint industrial R & D and setting up of agricultural demonstration farm. (UNI) |
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Good demand at Calcutta tea auctions CALCUTTA, Jan 30: A total of 99,635 packages on offer comprising all varieties of tea at the Calcutta auction held this week witnessed a good demand at dearer rates. The CTC category with a total offering of 60,059 packages met with good demand. Clean and good liquoring teas were firm to dearer. Remainder were irregular following quality. Dooars categories met with firm to dearer trend. Western India buyers were active for liquoring sorts with fair support from other internal sections. Bolder brokens saw some export interest. The Darjeeling categories with a total offering of 4,547 packages also remained strong. Whole leaf grades were fully firm on last levels. Good brokens and fanings met with similar trend. There was fair export enquiry for whole leaf grades and better fannings. In the orthodox category, total offering during the week was 11,007 packages, clean well made whole leaf and brokens were firm to dearer. Remainder were irregularly lower, particularly smaller brokens and fannings, which met with enquiries at reduced rates. CIS and Middle East offered good support with some support from the Persian Gulf. Limited interest was seen on liquoring sorts from the continent even as major blender and local dealers operated for fannings with fair other export interest. Dust categories met with good demand where total offering stood at 24,022 packages. Clean, well made and better liquoring sorts were firm to irregularly dearer at times. Remainder especially the fibrous sorts irregularly easier following quality. Dooars met with similar trend though secondaries sold with quality. (UNI) |
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GM mulls commercial vehicles, small car for India NEW DELHI, Jan 30: General Motor Corporation of the US is planning to foray into the resurgent commercial vehicle segment in India. The company has already bagged the Foreign Investment Promotion Board (FIPB) approval for introducing commercial vehicles and pick-ups in India through its wholly-owned subsidiary General Motors India Limited (GMIL), company sources told UNI here. Besides, the entire segment of passenger car industry, including a small car, a super luxury saloon and four-wheel drive multi-utility vehicles are also being explored as possible roll-outs in the Indian market. Mr Richard Swando, President and Managing Director of GMIL confirmed the plans saying, "studies are on to find a possible model in the commercial vehicle and other passenger car segments. However, things are still in an initial stage and no firm plans have been finalised as yet." This is as part of the company’s attempts to broadbase its product range in India to cover the entire strata of the passenger car industry. "We are now present in the upper end of the mid-size segment with Astra and will be moving into the lower end of the segment by the year-end with Corsa. Once these models are in place, we are looking at expanding our product portfolio both ways...We are looking at a lower-end car to be positioned below the Corsa and a premium segment car above the Astra," Mr Swando said. GM is, for the purpose, studying all the existing models in the company’s portfolio. "Once the product is identified, it would be modified to suit Indian driving conditions." The Indian market, he said, has a great potential to become a production and sourcing base for GM vehicles, "but the success of these models in the domestic market would depend on a cheap price tag." GMIL had recently introduced its second offering for India, Corsa, in three versions — 1.4 litre GL, 1.4 litre GLS and 1.6 litre GLS. The 1.4 litre GLS would be priced at Rs 5.75 lakh (without stereo system) and Rs 5.85 lakh (with stereo system). The 1.6 litre GLS version of corsa will sport a tag of Rs 6.39 lakh (without stereo) and Rs 6.49 lakh (with stereo). Order acceptance for the Corsa would commence on February seven. GMIL has also introduced its existing Astra with a new heart in addition to a base version — Astra advantage. The advantage comes with all power features. Besides, the company has also reduced prices of its oft-used spare parts cheaper by ten to 50 per cent. "These are as part of attempts to make the ownership of our cars cheaper. There is a general perception in the market that owning an Astra is an expensive affair and we want to break that perception and all these attempts are aimed at this," company officials said. The prices of spare parts are being reduced on the strength of GMIL’s localisation programme and better global sourcing. "We are not compromising on quality...We have managed to source components at a much cheaper rate and are passing on the advantages to the consumer." The spare parts which would now be cheaper include oil filter, spark plugs and shock absorbers. GMIL sold 2,500 units of Astra in 1999 as against 3400 units in the previous year. It hopes to achieve break-even in the year 2000 by touching a sales figure 9,000-10,000 units with both the Astra and Corsa. India has been identified as one of the key growth markets in the region. (UNI) |
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High level Lanka delegation to revive Free Trade Treaty COLOMBO, Jan 30: India and Sri Lanka will hold final round of discussions on the implementation of the Free Trade Treaty (FTA), amidst reports of the two countries ironing out their differences over the issue. Official sources here said a team comprising several senior officials from Finance and Trade Ministries left here for New Delhi today headed by Secretary of the Treasury P B Jayasundarara. Exuding optimism over the implementation of the treaty, signed by Prime Minister A B Vajpayee and Sri Lankan President Chandrika Kumaratunga in December 1998, the sources told PTI that a compromise formula accommodating the import of tea and garments from the Sri Lanka had been worked out to make it more viable for the island nation. Under the new compromise, India would provide duty concessions for the import of 15 million kgs of tea and eight million pieces of garments from Sri Lanka. Though under the treaty, India offered duty free and concessionaire duty access to 5500 items of trade at the six digit level, it could not be implemented as Sri Lanka expressed reservations after India included tea, rubber and garments in the negative list of items. India, however, later offered quota-based tea exports to the tune of five million kgs of tea and promised to permit certain qunatity of garments for imports. The current round of negotiations in New Delhi is to work out a new time table for implementation of the treaty. Despite differences over few products, the treaty has generated euphoria here as it permits over 1,000 Sri Lankan items for duty free import to Indian markets. Besides, India has agreed to provide 50 per cent duty free concessions to 4,100 items, with a provision to make them duty free in three years. Barring a negative list of 350 items, which could be further pruned during the present round of talks, the Indian markets will be completely thrown open for the Sri Lankan products. In return, Sri Lanka has agreed to give duty free concessions to India on 300 items of trade and 50 per cent duty free concessions to 600 items, which would become completely free in three-year time. The thrust of the treaty is that India is ready to throw open its markets to Sri Lankan products as a neighbourly goodwill gesture. If implemented, the treaty could enable Sri Lanka to build its trade and industrial infrastructure to cater to the huge Indian markets. India exports over 550 million dollars worth of goods to Sri Lanka. In return the Indian Ocean Island exports about 45 million dollars worth of goods to India. (PTI) |
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ITPO purposes to set up exhibition, trade centres CHENNAI, Jan 30: The India Trade Promotion Organsiation (ITPO) proposes to set up trade and exhibition centres in all states in partnership with the respective State Governments, ITPO Chairman and Managing Director Yogesh Chandra said today. Talking to reporters in connection with the India international leather fair beginning here tomorrow, he said the Bangalore and Chennai trade centres would be operational simultaneously. The Calcutta centre would take some more time as the ground preparation work was taking more time. The Chennai trade centre for which a Memorandum of Understanding was signed today would have 20,000 square metres of air-conditioned halls in four modules to facilitate various functionalities such as exhibiton, conventions, seminar etc. In the first phase costing Rs 12 crore to be met by ITPO, 5000 square metres of air-conditioned area would be built. The centre would be of international standard, he said. In the fair opening tomorrow in an area of 8000 square metres at the Nehru Indoor stadium 380 participants including 120 from overseas countries such as Spain, France, Portugal, Italy, Hong Kong Germany, UK, USA, Austria, Bulgaria, Taiwan, Iran, Brazil, Thailand, New Zealand, Switzerland, Egypt Saudi Arabia etc would take part, he said. The profile of the fair covered machinery, tanning and processing, effluent treatment, shoes and shoe components, leather garments fashion accessories, travel accessories and leather goods etc. The fair will be opened by Union Minister for Commerce and Industry Murasoli Maran and chaired by Chief Minister M Karunanidhi. (UNI) |
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India to appoint global adviser for finding partner for IA LONDON, Jan 30: After taking a decision to sell a majority 51 per cent stake in the state carrier, Indian Airlines, the Government has initiated a process to invite bids from prospective buyers, Information and Broadcasting Minister Arun Jaitley today said. We are going to appoint a global adviser — the procedure will then follow and the determination of the partner will be wholly (through) a bidding process, Jaitley, who has an additional charge of disinvestment, said in an interview to India business report on BBC world television. Whoever is the best and whoever pays the best that we can get. It will be somebody who is very large because he will have to put in a lot of money — not only to pay us for our holding but also investment in terms of raising capita, in terms of buying more modern equipment and aircraft, he said in the interview telecast this morning. He is not buying Indian Airlines in order to close it down. So somebody who will run it more professionally, with more profitability can get in more money — will run it. So the employees will be a part of a professionally better managed group, he said. Stating that Goverment has nobody in mind, Jaitley said We have laid down the rules very clearly, out of the 100 per cent equity of Indian Airlines — 49 is presently going to be retained by the Government. At a later stage the Government may decide to disinvest more on otherwise. Out of the balance 51 — 25 per cent is going to go to employees as per the existing policy, to the financial institutions and the market, 26 per cent will go to a strategic partner. Now somebody who is competent, somebody who has the wherewithal to run an airline and somebody who is the best bidder in the process will be chosen, he said. On being asked about the time-frame by which the actual disinvestment will start, Jaitley said the normal length of the process as per procedures of the past has been 12 to 15 months, but in this case, Government is interested in cutting down the period and hopefully in the next financial year the process of disinvestment of 51 per cent should be complete, according to a BBC release. On other serious disinvestment proposals that are on the anvil over the next few months, Jaitley indicated that the Government is in the process of giving final shape to a significant number of proposals from privatisation, it said. You will certainly hear of a few more. There are a large number of cases where the recommendations of the Disinvestment Commission are before us, he said. A significant number of cases which are not really amount related but are really PSU related will be put into the disinvestment process. When we do that we must have a larger roadmap of each PSU before us — that where do we want it to be 5 years from today rather than the past practice of merely scratching the surface and offloading, he said. (PTI) |
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