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Australia, India sign NEW DELHI, Oct 19: India and Australia have signed a Memorandum of Understanding (MoU) on infotech for promoting investments and ..more Le Meridien Hotel complete 2 years of operation in India NEW DELHI, Oct 19: Le Meridien Hotel and Resorts, the unscale international brand of the Forte Hotel Group of the UK has successfully...more ICRA downgrades rating NEW DELHI, Oct 19: ICRA has downgraded the long term sub-sovereign rating that had been assigned to ....more CALCUTTA, Oct 19: B C Sen and Co. Ltd., the highest exporter of light weight jewellery from Eastern India, plans to increase its ......more |
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Globalisation
of agri JAIPUR, Oct 19: The third Asian conference of agricultural economists, currently under session here, has expressed serious concern over the........more SC uphelds Mukta NEW DELHI, Oct 19: Supreme Court (SC) today upheld award of the Mukta Panna oil field contract to Reliance-Enron consortium while dismissing a.......more ICRA upgrades short term NEW DELHI, Oct 19: ICRA has upgraded the Rs 500 crore certificate of deposit programme of UTI Bank from A1 to A1". The revised short-term ....more
Death of 2nd MUL NEW DELHI, Oct 19: Tension heightened at Maruti Udyog Limited (MUL) factory nearby Gurgaon today with the death.........more |
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Australia, India sign MoU for promoting investments in IT NEW DELHI, Oct 19: India and Australia have signed a Memorandum of Understanding (MoU) on infotech for promoting investments and alliances in the high technology area of software, multimedia content development, e-commerce, internet and advanced communication technologies. The MoU, signed by IT Minister Pramod Mahajan and Australian Minister for Trade and Industry Mark Vaile, also envisages setting up of an Australia-India information industries business group in each country for developing direct and self-sustaining working relationships between the two sides, an official release said here. With the scope of co-operation between the two sides focusing on future technologies and critical components in the field of IT, the MoU would seek to institutionalise a framework for collaboration in the emerging sector. Under the agreement, Australia and India would look at developing bilateral relations in business, research and educational institutions, Government policy and regulatory agency and other organisations concerned with the promotion of information industries, it added. It would also take in its ambit, promotion of trade and business partnerships between Indian and Australian companies, in the respective countries and in the third world countries, it added. (PTI) |
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Le Meridien Hotel complete 2 years of operation in India NEW DELHI, Oct 19: Le Meridien Hotel and Resorts, the unscale international brand of the Forte Hotel Group of the UK has successfully completed two years of operations in India for its outbound business. For the year 1998, the first year of its operation, Le Meridien conducted 1 million pounds worth of international business followed by 3 million pounds in 1999. This year, the company is expecting 5 million pounds worth of business, Le Meridien said today. The steady growth over the two years can be attributed to the aggressive sales and marketing initiatives undertaken for promoting outbound business which have been in tandem with the company’s focus of providing ‘La Difference’ to its customers, both business and leisure alike, it added. Also, Le Meridien said it has introduced a toll free centralised reservation system on a national basis for both domestic and worldwide reservations. Ns Vasudha Sondhi, Area Director, Sales and Marketing, indicated that, "this year, we would like to focus on the conferences and incentives programme, which we consider as an important segment for our business. Ms Sondhi added, "the trends in the Indian market indicate the mice makret as an emerging and rapidly growting segment. We plan to explore the potential by focussing our sale activities in this segment." (UNI) |
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ICRA downgrades rating assigned to GOM finances NEW DELHI, Oct 19: ICRA has downgraded the long term sub-sovereign rating that had been assigned to Government of Maharashtra (GoM) finances by one LAA (pronounced L double A) to LAA-(pronounced L double A minus) indicating ‘high safety". This rating reflects an opinion on the general financial constituent entities. His rating is not an opinion on any specific obligations of GoM. This rating view is relative to that of the other states of the Indian Union and with the Union Government of India viewed as "highest safety" for loca currency obligations, ICRA said. In assigning the original rating of LAA in early-January 1999, ICRA had taken due cognizance of the fact that the state of Maharashtra had a substantial advantage over other states, by starting off with a big lead in its economy and Government finance, a lead that had been maintained over the past three decades. This rating view takes note of the strong structural factors of the state and the relatively greater resilience of GoM to absorb external shocks arising from changes in general economic conditions. ICRA said it had also noted that the continued consolidiration of the state’s leadership role in economic performance and fiscal management would be necessary to support the rating. However, since the end of calendar 1998, on most counts of fiscal performance, the significant lead that the Maharashtra Government finances had enjoyed over other peer-group states of the Indian Union has been whittled down, as shown by the accounts figures for 1998-99 and the revised estimates of 1999-2000. The state of Maharashtra continues to enjoy a small advantage over peer-group states on certain economic and fiscal measures, but this differentiation has become small. During calender year 1999 sluggishess in revenue growth and large impact of the pay commission, both in terms of recurring expenditures and arrears impaired states. The pressure of pay increases was not compensated for by either matching expenditure compression and/or revenue augmentation. ICRA said the States Government has taken cognizance of the loss of leadership in states finances in the budget speed (2000-01) and the need for urgent steps to rectify matters. The budget for 2000-2001 ap-ears to have taken steps to an other of fiscal stablization, and has taken initiatives in reforming current operating practices and restructuring of the state enterprises. However, to what extent these intentions will be materialized is yet to be seen, it added. In accordance with the change on the sub-sovereign rating of the Government of Maharashtra, the ratings assigned to the Maharashtra Jeevan Pradhikaran are also being correspondingly reduced from LAA (SO) to LAA- (SO). The outstanding ratings for the five irrigation corporations, namely Maharashtra Krishna Valley Development Corporation, Godavari Marathwada Irrigation Corporation, Konkan Irrigation Development Corporation, Tapi Irrigation Development Corporation and Vidarbha Irrigation Corporation, which were at LAA-(SO) are being retained, ICRA said. (UNI) |
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CALCUTTA, Oct 19: B C Sen and Co. Ltd., the highest exporter of light weight jewellery from Eastern India, plans to increase its export by 20 per cent and domestic sales by 25 per cent during the current fiscal. Talking to reporters during an exhibition of diamonds and gold jewelleries here, company executive Munmun Sen said De Beers campaign for diamond jewellery had been yielding results. The sale of diamond jewellery had gone up with the middle class people getting designs within their budgets and that’s why we are holding the largest diamond jewellery exhibition in the city, Mrs Sen said. Describing exhibitions as one of the major ways to boost sale, she said her company used to participate in all the major international jewellery exhibitions in the country. We also participated in the exhibitions organised by the North American Bengali Conference in the USA, she pointed out. She said she expects at least three times more than normal sales from the exhibition, which would continue till October 25. We have offered over 500 enthralling ethnic and new designs, besides the Nakshatra diamonds in the exhibition, she said. The company, which has been receiving the Indian Government recognised export house certification for the past four years, exports gems and jewellry to 14 countries in the USA, Europe, the middle East and South East Asia, besides New Zealand. (UNI) |
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Globalisation of agri markets opposed JAIPUR, Oct 19: The third Asian conference of agricultural economists, currently under session here, has expressed serious concern over the pressure on developing countries to abandon the policy of food self-sufficiency and move towards globalisation of the farm sector. "The widespread move towards globalisation and sectoral decline in food prices at the international level have been advanced as arguments to forsake food self-sufficiency as a national objective and organise production on the basis of comparative costs. But the proposition is flawed on several counts," asserted economist Dr V S Vyas, the current president of the Asian Society of Agricultural Economists (ASAE). Advocacy of unrestricted exposure to international markets ignores the fact that majority of rural producers depend on foodgrain production as their main source of livelihood and overestimates the resilience of the system to compensate them for heavy and sudden dislocation, Vyas said in his presidential address. To take a doctrinaire approach on free trade in foodgrains he said, would amount to jeopardising one of the essential attributes of food security — adequate availability of foodgrains at reasonable prices - and will compromise prospects of livelihood for those who are inherently food insecure. Therefore, the state’s role in strengthening food security is more prominent in ensuring its availability and access particularly by poor households since low and stable foodgrain prices are a potent tool to reduce poverty and vulnerability o poor to external shocks, he added. Calling for appropriate policies at macro level to correct distortions, Vyas, a former senior consultant to the World Bank, said that it was the poor whose interests were sacrificed in pursuit of fiscal discipline, especially in the countries with competitive policies and powerful vote banks. Richer farmers with marketable surpluses claim and get high prices in the name of poor farmers who had no marketable surplus to benefit from high administered prices and as net buyers of foodgrains they are the losers, he said. The more-enduring way to resolve the dilemma arising out of ‘poor producer-poor consumer’ syndrome is to raise agricultural productivity by raising the level of technology, providing rural infrastructure, strengthening institutions and investing in human capabilities. These are difficult and non-glamorous tasks. But a state committed to sustainable and pro-poor growth has hardly any other option, he added. The ASAE president suggested decentralisation of foodgrain distribution programme by providing participation to the beneficieries in a meaningful way saying that a centralised bureaucratic system will never be able to reach the poorest of poor and will have built-in inefficiencies. Discussing the role of markets, Vyas said only an efficient functioning of market could ensure foodgrains in all seasons a stable prices. Regulatory provisions, organisational improvements, dissemination of information and removal of locational handicaps, mainly by investing in infrastructure and improvement in connectivity would impart efficiency to functioning of markets and ensure food security, he said. (PTI) |
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SC uphelds Mukta Pannal oil
field contract NEW DELHI, Oct 19: Supreme Court (SC) today upheld award of the Mukta Panna oil field contract to Reliance-Enron consortium while dismissing a petition which had alleged that Government decision had entailed a loss of Rs 5,000 crore. A three-judge bench comprising Justice S P Bharucha, Justice S S M Quadri and Justice N Santosh Hegde upheld the Delhi High Court Judgeh had said that court’s power is limited to review the decision of the Government in awarding the contract if malafide is not shown. The clean chit to the consortium comes within two days of Enron, which holds 30 per cent equity same as relaince, approaching Government for permission to exit from Mukta, Panna and Tapti oil and gas fields, where remaining 40 per cent equity is with Oil and Natural Gas Corporation. The bench, however, severely criticised CBI for the manner in which it probed the allegations of malpractices in the award of the contract for production of oil and gas. The Apex Court had reserved judgement on August 30 after a marathon hearing of the case in which the petitioner centre for Public Interest Litigation challenged the Delhi High Court’s decision not to interfere with the award. While the counsel for petitioner had pointed out the irregularities in the award of the deal and levelled allegations of bribery, the counsel for Enron, Reliance and CBI said that there was no irregularity in the deal and that it was awarded after taking into account the techno-economical studies. (PTI) |
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ICRA upgrades short term rating of UTI bank to A1 NEW DELHI, Oct 19: ICRA has upgraded the Rs 500 crore certificate of deposit programme of UTI Bank from A1 to A1". The revised short-term rating indicates highest safety. The prospect of timely payment of debt/obligation is the best. UTI bank’s net advances increased from Rs 2169.79 crore in 1998-99 to Rs 3506.62 crore in 1999-2000 registering a growth of 61.61 per cent. A significant portion of the growth in advances was during the last quarter of the financial year. In 1999-2000, the growth in credit was mainly on account of increased bills discounting activity besides a strong growth in cash credit and demand loans, ICRA said. UTI bank’s asset quality has improved and there was a reduction in both the gross NPA/ gross advances and net NPA/net advances ratios. The NPA generation rate has come down in the last two years through this is also attributed to the substantial increase in credit growth. The net NPA/net advances reduced from 6.32 per cent in 1998-99 to 4.71 per cent in 1999-2000. Even with this decrease, the net NPA per cent for UTI bank continues to be much higher than other new generation private sector banks. However, the fresh exposures taken by UTI bank in 199-2000 and during the first half of 2000-01 were to good quality medium and large corporates. A substantial portion of the bills portfolio is 100 per cent backed by letters of credit and to that extent the credit risk on this portfolio is negligible, according to ICRA. UTI bank’s deposits grew significantly by 88.12 per cent in 1999-2000 and stood at Rs 5720 crore as on March 31,2000. High cost term deposits continue to be the major source of funds for UTI bank. However, during 1999-2000 and in the first half of 2000-01, UTI bank has witnessed a substantial growth in low cost savings deposits. UTI bank plans to set up new branches and off-site ATMs to garner more savings deposit to contain their increasing cost of funds. The CD ratio of the bank including investments in corporate bonds and debentures continues to be high at 65.55 per cent. UTI bank’s investment portfolio of Rs 2065.15 crore as on March 31, 2000 represented about 30 per cent of the total asset base of the bank. About 66 per cent of these investments are in Government securities, which are exposed to interest rate risk. About 66 per cent of these investments are in Government securities, which are exposed to interest rate risk. A significant portion of thebank’s exposures in equity and preference shares and in corporate bonds and debentures are in well rated, fundamentally sound companies, ICRA said. The net interest margin/average total assets for the bank decreased from 2.05 per cent in 1998-99 to 1.71 per cent in 1999-2000. This was because the decline in the yield on advances was more than the decline in the cost of funds resulting in lesser interest spread. The net interest margin for uti bank is lower when compared to other new generation private sector banks. The operating profit margin (operating profit/average total assets) however increased from 1.93 per cent in 1998-99 to 2.20 per cent in 1999-2000 because of increased trading profit on investments, it added. The capital adequacy of the bank was 11.37 per cent as on March 31,2000 and thebank is likely to raise freshcapital during 2000-01 to improve its capital adequacy and to support its growth plan. The rating takes into account the improved asset quality, reduction in the generation of NPAs, a strong growth in credit and deposits and change to a superior technology platform, which will enable the bank to increase its fee based income. The rating also takes into account the strong parentage with UTI and LIC continuing to be the two principal shareholders of the bank. (UNI) |
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Death of 2nd MUL employee heightens tension NEW DELHI, Oct 19: Tension heightened at Maruti Udyog Limited (MUL) factory nearby Gurgaon today with the death of another employee whose body was found on the nearby railway track, a day after another employee had died in the factory premises. The body of 20-year old Rajesh Kumar in work uniform was recovered by police in less than 24 hours of the death of Chanderbhan, 56, in the factory premises, triggering allegations of high-handedness by management. When contacted MUL Managing Director Jagdish Khattar who has been negotiating with agitating workers, told PTI that the body was found about eight kms away from the factory premises and he would not be able to comment on the death. Mathew Abraham, General Secretary of MUL Employees Union, which is on the war path against management to press for implementation of incentive and pension schemes, said that there were signs of swelling of his body and the situation was tense as the police had cordoned off the site. While confirming the death of Rajesh Kumar, Gurgaon police said they were sending the body of Chanderbhan for post mortem. Apoorva Chandra, Deputy Commissioner of Police, said though Bhan’s death appeared normal the police was sending the body for post mortem following Union’s allegation of foul play by management. (PTI) |
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