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Amar Sinha gets Excelsior Correspondent JAMMU, Dec 26: Mr Amar Singh, 38, director Shaw Wallace Distilleries Limited has been conferred with the best marketer of the....more Indian
aviation affected NEW DELHI, Dec 26: The September 11 terror strikes in US left an indelible scar on the global aviation sector as also the Indian scene this ...more Exports
of coir KOCHI, Dec 26: Exports of coir products from the country during the first half of the current financial year registered a marginal decline both in terms....more Govt not to dilute fiscal responsibility bill: Sinha NEW DELHI, Dec 26: In a bid to check mounting fiscal deficit, Government has made it clear that it was not in...more |
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Call rate stays firm, MUMBAI, Dec 26: The overnight interest rate ruled higher above the 7.00 per cent level on heavy demand for funds ahead of the reporting Friday......more Govt
to soon take NEW DELHI, Dec 26: The Government will take a decision on the timing of off-loading its stake in the Maruti Udyog Ltd after receipt of the report of the .........more Pharma
bucks slowdown NEW DELHI, Dec 26: Bucking the global and domestic slowdown in economy, Indian pharmaceutical industry was on a high trajectory with over 12 per cent growth even as it confronted players........more Govt
to expedite NEW DELHI, Dec 26: Finance Minister Yashwant Sinha hinted at a major restructuring of Industrial Development Bank of India, including its transition to a .....more |
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Indian
aviation affected by 11/9 strike, NEW DELHI, Dec 26: The September 11 terror strikes in US left an indelible scar on the global aviation sector as also the Indian scene this year, which saw the disinvestment process plunging into an airpocket with the Government striving to put both Air India and Indian Airlines back on track. It has since been trying to bring in a forward-looking civil aviation policy focussing on gradual privatisation of the sector. Two aircrashes also marred the domestic aviation scenario including one in which senior Congress leader Madhavrao Scindia and four journalists were killed, even as Government upped its efforts to introduce sophisticated communication and navigation system, including Category IIIA Instrument Landing System (ILS) in Delhi airport. Even as stringent measures were being implemented to strengthen security at airports and inside aircraft following the 11/9 terror attacks, a "hoax" hijack episode occurred with the over-cautious crew of an Alliance Air Mumbai-Delhi flight reacting to an innocuous situation sending the aviation security apparatus in a tizzy and keeping the Prime Minister and Home Minister, among others, awake all night. The Civil Aviation Ministry saw a change of guard with Sharad Yadav and Chaman Lal Gupta being shifted out and the young Shahnawaz Hussain inducted as the sole incharge. The sacking of AI Managing Director M P Mascarenhas on corruption charges and his subsequent re-instatement after being cleared also marked the year. The second aircrash in March was that of a small plane, like the one carrying Scindia, in which filmstar-turned-politician Sunil Dutt was injured after it developed a snag and crash-landed near Nasik. Following these two incidents, Government decided to lay down stricter flying norms for small aircraft charter companies. Besides the "hoax" hijack episode, another security lapse occurred when four Afghan nationals boarded an AI flight and landed at heathrow without tickets or proper travel documents. The disinvestment process of AI, which was affected earlier by withdrawal of Singapore Airlines as a strategic partner of Tatas, got stalled when tatasons expressed inability to find another foreign partner primarily due to the global slump in the aviation industry. Two bidders in the race for buying stake of IA - Hindujas and Videocon - were disqualified for different reasons. With the disinvestment process in the backburner, the ministry decided to seek injection of funds from Government coffers to strengthen AI and IA and also decided to allow them to start the process of aircraft acquisition, which was earlier stopped with a view to allowing the strategic partner have a say in the matter. (PTI) |
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Exports of coir products register marginal decline KOCHI, Dec 26: Exports of coir products from the country during the first half of the current financial year registered a marginal decline both in terms of quantity and value as compared to the corresponding period of the previous year, according to statistics available with the Coir Board here. Exports of coir products during April-September 2001 was of the order of 31,940 tonnes valued at Rs 144.15 crore as against 33,960 tonnes worth Rs 153.02 crores recorded during the same period last year. While major items like coir yarn and coir matting registered a slight decline in quantity and value to 5,969 tonnes worth Rs 18.12 crore and 2,609 tonnes valued at Rs 17.94 crore during the report period from 7,375 tonnes valued at Rs 20.86 crore and 3,597 tonnes worth Rs 24.05 crore respectively during April-September 2000, in terms of coir mats there was a slight improvement both in terms of quantity and value with 142,13 tonnes of coir mats worth Rs 91.16 crore having been exported during the report period as against 141,66 tonnes worth Rs 87.84 crore exported during the same period of the previous year, according to a Coir Board Bulletin here. Export of coir pith continued to register improvement both in terms of quantity and value with 6,455 tonnes worth Rs five core exported during the report period as against 5,542 tonnes worth Rs 4.18 crore exported during April-September 2000, the bulletin added. (UNI) |
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Govt not to dilute fiscal responsibility bill: Sinha NEW DELHI, Dec 26: In a bid to check mounting fiscal deficit, Government has made it clear that it was not in favour of dilution of the Fiscal Responsibility Bill as recommended by a Parliamentary Standing Committee. "I am not in favour of dilution (of the bill). If we dilute, the whole raison d’etre of the bill goes," Finance Minister Yashwant Sinha told PTI in an interview. "I am offering myself to greater discipline, greater control and greater accountability to Parliament (to check fiscal deficit). But if Parliament of India felt it is not necessary, it is good for me," he said in an obvious reference to the standing committee recommendations to water down the important provisions of the bill. Sinha, however, said he would examine the recommendations with the "seriousness" they deserved and then go to Parliament for the passage of the bill most probably in the budget session. When the bill was introduced in Parliament in November, 2000, Sinha said the Government had a valid point of view to commit itself to reducing fiscal and revenue deficits by 0.5 per cent of GDP annually to bring down fiscal deficit to two per cent by 2006 and revenue deficit to zero level by 2005. The standing committee on finance headed by Congress MP Shivraj Patil, which tabled its report on FRA in the winter session, has watered down two important provisions — the mandatory cap on government borrowing and 0.5 per cent annual cut in fiscal and revenue deficits. "I don’t think anything has happened to alter the Government point of view when we went to Parliament. So we will see what we can accept and what we can’t accept. Then we will go before Parliament with revised draft," Sinha said. There are already indications that Government would be unable to keep the fiscal deficit at the targeted 4.7 per cent of GDP this financial year due to huge shortfall likely in revenue collections because of economic slowdown. Sinha himself admitted that buoyancy in revenue collections that was projected for this year in the budget has not happened because of the global recession that has been further aggravated by the September 11 and December 13 terror strikes. "Any kind of uncertainty is bad and the economy cannot be buoyant in an era of uncertainty," Sinha said adding the mounting fiscal deficit this year was not due to any runaway expenditure but due to unanticipated revenue shortfall. Asserting that Government has made considerable efforts in cutting down wasteful expenditure, Sinha said Government was committed to downsizing of Government as recommended by the Expenditure Reform Commission. Prime Minister Atal Behari Vajpayee has already directed all ministries to complete their strategy for downsizing as scheduled by December 31 and "there is no change in that", Sinha said. "I have seen some reports that the start of downsizing from January one next was being delayed and that is not correct," Sinha said. (PTI) |
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Call rate stays firm, gilts extend losses MUMBAI, Dec 26: The overnight interest rate ruled higher above the 7.00 per cent level on heavy demand for funds ahead of the reporting Friday and short supply at the interbank call money market today. Opening higher at 7.30-7.50 per cent, the call rate continued to stay firm between the 7.25-8.00 per cent level during the day as banks rushed for funds in the second week of the reporting fortnight. The absence of many traditional lending banks also pressured the liquidity which was already strained on account of huge advance tax outflows. The call rate closed at 7.25-7.50 per cent, half per cent up from previous day’s close of 6.75-7.00 per cent. The Reserve Bank of India (RBI) today also did not receive any bids in its daily repo auction due to the prevailing tight liquidity situation. It rejected the single bid it received for Rs five crore in reverse repo auctions. Government securities continued their bearish trend, extending losses on the back of war concerns and tight liquidity in the system. Gilt prices, across the board, fell sharply by 60-90 paise from their Monday’s closing levels on heavy selling pressure. According to dealers, sentiment continued to be nervous since last Friday after India snapped diplomatic ties with Pakistan and terminated rail and road services to and from Pakistan. Further, the volatile movement of the Indian rupee against the us dollar which was falling continuously for the last four days also affected sentiment, they added. (UNI) |
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Govt to soon take decision on its stake in Maruti NEW DELHI, Dec 26: The Government will take a decision on the timing of off-loading its stake in the Maruti Udyog Ltd after receipt of the report of the valuers next month, Heavy Industries and Public Enterprises Minister Manohar Joshi said here today. It may be possible that the Government offload its stake before the end of the current fiscal, but a final decision will be taken by the Department of Disinvestment, he said. Maruti is a 50:50-venture by the Government and Suzuki Motors of Japan. Asked about the much awaited auto policy, he said it was under process and the Government would take a final view shortly. (UNI) |
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Pharma bucks slowdown
trend, expands NEW DELHI, Dec 26: Bucking the global and domestic slowdown in economy, Indian pharmaceutical industry was on a high trajectory with over 12 per cent growth even as it confronted players abroad on issues like ‘patents vs patients’ to provide cheaper medicines for dreaded diseases like AIDS. Even as new drug policy continued to remain elusive throughout 2001, the over Rs 23,000 crore industry, catering to world’s fifth largest market, sought to consolidate and grow through mergers and acquisitions with some companies looking for expansion abroad. Awaiting a new policy in the hope it would lift market restrictions to a great deal by limiting the scope of price control mechanism, the domestic players also took cudgels against global majors on patent issues in their resolve to help the African countries by providing anti-AIDS drugs at substantially lower prices. At home, however, consumers suffered shortages of some common medicines like popular pain-reliever, aspirin, which were brought under price control mechanism, forcing some of the players to introduce paracetamol-based medicines as subsitutes. Pharma sector also bucked the investment trend worldwide with funds continuing to flow in the sector at a time when major financial institutions were exercising restraint in other areas of economy. Cashing in on this scenario, domestic players sought to consolidate themselves through mergers and acquisitions of brands or companies. In tune with the industry trend, Zydus Cadila acquired stake in German remedies along with rights over a few of its brands. Takeover giant nicholas piramal, while restructuring its home, took over rhone poullenc. In contrast with other sectors, where foreign investment had been restrained, pharma sector witnessed international investment with World Bank’s private investment arm, International Finance Corporation, picking up stake in Chennai-based Orchid Chemicals. On the brands front, morepen labs created a flutter by by buying out old-time popular antiseptic brand ‘Burnol’ for its over-the-counter division, Dr Morepen, while announcing that it will go in for more acquisitions on formulations side as well as OTC. The sector also witnessed some breakups with Eli Lilly buying out its joint-venture partner Ranbaxy’s stake to form an independent company and Nicholas Piramal snapping its marketing joint venture with Reckitt Benckiser. Ranbaxy joined hands with Cipla and Glaxo to market its once-day-ciprofloxacin in the country while suffering the jolt of pared milestone and royalty payments from bayer AG which had bought rights for the new drug delivery system from it. (PTI) |
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Govt to expedite changes in IDBI Act, ARC finalised: Sinha NEW DELHI, Dec 26: Finance Minister Yashwant Sinha hinted at a major restructuring of Industrial Development Bank of India, including its transition to a ‘universal bank’, and said Government wanted to speed up the process of amending IDBI Act for this purpose. "IDBI is looking at various options and is in touch with the ministry. We will be taking appropriate actions including changes in IDBI Act. The IDBI Act is being looked at not only from the point of view of changing it into a universal bank but also from other points of view," Sinha told PTI in an interview here. Government is "expediting" the process, he said, adding legislative changes in the country was more complex now than it was in the past. Sinha also said that setting up of asset reconstruction company for recovering non-performing assets of weak banks, has been finalised. On the need for recapitalisation of weak banks, he said "now it is minimum in view of the creditable improvement of their performance, including that of Indian Bank." Justifying IDBI’s demand for becoming a universal bank, Sinha said "economic liberalisation has blurred the distinction between a purely term lending institution and a working capital lending bank. So the dividing line between FI and banks has vanished." But at the same time, Indian FIs have lot of experience in term lending, Sinha said adding "that should continue. That expertise should not be given up." "FIs have a feeling that they do not have a recourse to cheaper funds which banks have recourse to. Therefore, there has been mismatch in their lending programmes. Clearly, this need to be corrected," Sinha said. He favoured the notion that FI should be allowed to lend for short-term working capital requirements as it was the case with banks. "Universal banking is quite clearly the model of the future. This is what happened in other countries," he said. IDBI along with ICICI had approached Government and RBI with the proposal of converting them into universal banks early this fiscal. Although ICICI has obtained in principle nod from RBI and initiated a reverse merger with ICICI Bank, IDBI is yet to rope in a major PSU bank for the same purpose. (PTI) |
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