Daily Excelsior...Business

Shourie denies favouring
Tatas in Air India bid

NEW YORK, July 12: Disinvestment Minister Arun Shourie has rejected the suggestion that the Government has favoured Tatas in the disinvestment process of Air India..........more

UHBVN regularises
119421 kvv load

CHANDIGARH, July 12: The Uttar Haryana Bijli Virtan Nigam (UBBVN) has regularised 119421.........more

Murasoli Maran meets
leading exporters

NEW DELHI, July 12: Faced with a declining rate of export growth, Commerce and Industry......more

Provident Fund
process simplified

NEW DELHI, July 12: The research wing of the National Academy for Training and Research in.....more

Industrial growth falls
to 1.9 per cent in May

NEW DELHI, July 12: Industrial growth decelerated further to 1.9 per cent in May this......more

Industrial slowdown
continues; down at
1.9 per cent in May

NEW DELHI, July 12: Industrial production continues to drift downward registering....more

ONGC nod for increasing
cumulative production

DEHRADUN, July 12: ONGC has identified Mumbai High and 14 other major oil fields to increase......more

Special bail-out
package for UTI
soon: Vassal

NEW DELHI, July 12: A special package will soon be worked out for Unit Trust of India (UTI) in the...more

Shourie denies favouring Tatas in Air India bid

NEW YORK, July 12: Disinvestment Minister Arun Shourie has rejected the suggestion that the Government has favoured Tatas in the disinvestment process of Air India.

The criticism of the Government is based on misconceptions and misunderstanding of the guidelines approved by the Cabinet Committee on Disinvestment, he told reporters here.

He said no one has been disqualified and leading NRI businessmen, the Hindujas, would get a chance to explain their case. A decision would be taken only after their arguments have been considered, he added.

Shourie said originally, there were nine bidders but two were non-serious. Others dropped out for reasons that had nothing to do with Air India.

Swiss Air, which would have been a good partner, suffered a loss of 1.8 billion dollars last year. Its Chief Executive was changed and the new incumbent said he wanted to put his own house in order first. In fact, they are disinvesting their own operations, Shourie said.

The minister said Delta-air France would also have been an excellent alliance for Air India as it would have helped expand to North and South America and Europe. But they could not find an Indian partner despite their attempts, he added.

Ultimately, Tatas and Hindujas were left in the field despite all efforts by the Government, he said.

Then the question of regulatory authorities indicting several firms came up. The Government felt it could not deal with them on a case by case basis as the process would have taken long.

Under these circumstances, Shourie said, it was decided there should be some general guidelines which were then finalised. But the process was still not complete.

The parties which prime facie fall foul of the guidelines would be given notices and asked to represent their case. Only after that would the Government take a final decision, he added.

To a question, he said it was a misconception that under the guidelines, if a party was under investigation by a regulatory authority, it would be disqualified.

A party can be disqualified only if it has been indicted by a regulatory authority or a court on a crime so grave as it outrages the moral sense of the community.

"It is a misreading of guidelines to say that so many people have been disqualified," he said.

To a specific question whether Hindujas have been disqualified, Shourie said, "not yet."

He said when he had read out the guidelines to the press, he was asked about its implications concerning specific parties. "Then I gave the view that prime facie, they fall afoul of particular guidelines. But then nobody can be disqualified till he is given a hearing."

He said the view was expressed as the guidelines say that if it is a national security related matter, then even if there is a chargesheet, that group cannot continue. In this case indictment is not necessary.

However, Hindujas could argue that the charges against them do not constitute a national security matter, Shourie said.

"They may come back and say Ashok Leyland is so different from the rest of Hinduja group. They can come back and say `you have charged us - and we dispute that - with taking commission. That is not a national security matter.’ "

These arguments would be considered before a decision is taken, he added.

The guidelines are going to be published in two or three days and "then we will call these people for hearing," he said. (PTI)

UHBVN regularises 119421 kvv load

CHANDIGARH, July 12: The Uttar Haryana Bijli Virtan Nigam (UBBVN) has regularised 119421 kvv unauthorised load of electricity under the voluntary disclosure schemes 2000 and 2001.

A spokesman of the Nigam said here today that 58891 kvv unauthorised load of domestic consumers, 4642 kvv of non domestic consumers, 28084 kvv of industrial consumers and 27804 kvv of tubewell consumers had been regularised by the Nigam.

He said that the maximum unauthorised load of 25642 kvv in respect of domestic consumers and 2054 kvv of non domestic consumers had been regularised in operations circle, Karnal comprising of Karnal and Panipat districts.

The maximum unauthorised load of 18933 kvv and 15925 kvv in respect of tubewell and industrial consumers respectively has been regularised in operation circle, Kurukshetra comprising of Kurukshetra and Kaithal district.

The spokesman further state that the Nigam has detected 4312 cases of power theft during the first three months of the current financial year under its ongoing programme for preventing the theft of electricity. The special checking teams checked 60750 consumers premises during this period and a penalty of Rs 4.16 crore was imposed on erring consumers out of which nearly Rs two crore was recovered. (UNI)

Murasoli Maran meets leading exporters

NEW DELHI, July 12: Faced with a declining rate of export growth, Commerce and Industry Minister Murasoli Maran met leading exporters here for devising a strategy to tackle the slowdown in the economies of the US and other developed countries.

At an interactive meeting with the Chairmen of Export Promotion Councils (EOCs) yesterday, Mr Maran acquainted himself with the perceptions of the exporting community about export trends. He assured the exporters of taking up with the Finance Minister and the Governor, Reserve Bank of India (RBI), various issues raised by them.

The Chairmen of EPCs, covering textiles (apparels, silk, synthetic and rayon textiles and cotton), gems and jewellery, chemicals, engineering and electronics sectors accounting for about two-thirds of Indian exports participated in the deliberations.

India achieved a high growth rate of 19.83 per cent in dollar terms in exports during 2000 but the growth rate decelerated during April and May 2001. The chemicals, engineering goods and the electronics sectors were doing well this year. But there has been a declining trend in garments and gems and jewellery in the past six months, attributed mainly to reduced demand.

Mr Maran promised to take up with the Russian authorities the question of direct import of rough diamonds to facilitate the gem and jewellery export. (UNI)

Provident Fund process simplified

NEW DELHI, July 12: The research wing of the National Academy for Training and Research in Social Security has submitted a report to the Government for resolving an estimated 80,000 prosecution cases launched against the employers by the Employees Provident Fund Organisation.

The Academy headed by Dr Jayantilal Bhandari has prepared the report at the initiative of the Labour Minister Dr Satyanaraian Jatiya and the Central Provident Fund Commissioner Mr Ajai Singh.

Dr Bhandari explained that the scheme when implemented would lead to elimination of all the cases, free the employers from long drawn out prosecutions and will help the employeers receive their dues.

The report is called the Bhavishya Nidhi Abhiyojan (prosecution) Samadhan Yojana 2001.

Dr Bhandari said that at present there are more than 80,000 prosecution cases, launched against employers by the EPFO, are pending all over the country. This scheme will give an opportunity to employers to get rid of these cases if they pay the PF dues alongwith simple interest and the relevant returns involved in these cases.

Under the scheme, the employer will not be liable to pay any penal damages.

Dr Bhandari has briefed the Labour Minister Dr Jatiya and the Provident Fund Commissioner Mr Ajai Singh on the details of the new scheme.

He said that the Government has already accepted another report submitted by the research wing of the academy on simplification of returns. These returns are required to be submitted by an employer of a covered establishment under the EPF Act.

At present an employer has to furnish more than 48 returns in a year which will be mow replaced by just 12 returns in a year.

The scheme will become effective from October one, this year. He said that the necessity of simplification in PF returns was being felt for the last two decades as voluminous returns were creating hurdles in the early settlement of claims and advance cases. This change will bring in reduction of workload and unwarranted burden on the employer.

Dr Bhandari said that the main purpose of these research schemes was to suggest various methods for simplification in operating these schemes for the welfare of subscribers and introduce possible changes to reduce the administrative and financial burden of an employer. (UNI)

Industrial growth falls to 1.9 per cent in May

NEW DELHI, July 12: Industrial growth decelerated further to 1.9 per cent in May this year to record a low 2.6 per cent growth in April-May.

Industrial growth was six per cent in May last year and 6.2 per cent in April-May 2000-01, according to the Index of Industrial Production (IIP) released today by the Central Statistical Organisation (CSO).

The growth was the lowest in manufacturing at 1.6 per cent in may 2001 as compared to 6.2 per cent in May last year. Mining had a 4.1 per cent growth (previous 2.6 per cent) and electricity a 2.8 per cent growth (6.4 per cent).

For April-May, the growth rates were 3.8 per cent (3.3 per cent in 2000-01) for mining, 2.6 per cent (6.6 per cent) for manufacturing and 2.2 per cent (5.1 per cent) for electricity.

Basic goods witnessed a growth rate of 2.4 per cent in May and 2.8 per cent in April-May (against 6.1 per cent and 5.5 per cent last year), capital goods minus 0.9 per cent and minus two per cent (against 3.1 per cent and 6.4 per cent), intermediate goods 1.2 per cent and 2.1 per cent (against 3.3 per cent and 4.5 per cent), consumer goods 3.1 per cent and 4.5 per cent (against 9.3 per cent and 8.4 per cent), consumer durables 6.2 per cent and 6.4 per cent (against 27.5 per cent and 22 per cent) and consumer non-durables 1.9 per cent and 3.7 per cent (against 3.7 per cent and 4.4 per cent).

Food products saw a growth rate of 3.1 per cent in May and 5 per cent in April-May. The respective growth rates in pecentage of other products during the periods were: beverages, tobacco and related products 6.1 and 7.6, cotton textiles minus two and minus 0.9, wool, silk and man-made fibre textiles 2.1 and 7.8, jute and other vegetable fibre textiles minus 9.7 and 13 per cent, textile products (including wearing apparels) minus 1.7 and minus two , wood and wood products: furniture and fixtures minus 14 and minus 11.2, paper and paper products and printing, publishing and allied industry 0.2 and 2.3, leather and leather fur products 13.6 and 9.8, basic chemicals and chemical products (except product of petroleum and coal) 3.4 and 4.5, rubber, plastic, petroleum and coal products 6.1 and 8.3, non-metallic mineral products one and 0.8, basic metal and alloy industry minus 0.5 and 0.5, metal products and parts, except machinery and equipment minus 12.5 and minus 15.8, machinery and equipment other than transport equipment 2.5 and 1.6, transport equipment and parts 0.5 and 1.8 and other manufacturing industries 12.5 and 16.7 per cent. (UNI)

Industrial slowdown continues; down at 1.9
per cent in May

NEW DELHI, July 12: Industrial production continues to drift downward registering a growth of just 1.9 per cent during May, 2001, compared to six per cent growth in May last year.

According to quick estimates of Index of Industrial Production (IIP) released by the Central Statistical Organisation (CSO), the cumulative growth during first two months of 2001-02 was significantly lower at 2.6 per cent as against an impressive growth rate of 6.2 per cent in the corresponding period last year.

The manufacturing sector, with an over two-third weightage in the IIP, continued to be the major cause for an overall slump in the industrial growth. It grew by lowly 1.6 per cent during May, 2001, as against 6.2 per cent in May, 2000.

During April-May manufacturing sector grew at 2.6 per cent as against 6.6 per cent.

The electricity sector, which had posted a growth rate of 6.4 per cent in may last year witnessed a low growth rate of 2.8 per ent in the same month this year, while the cumulative growth in this sector for April-May 2001 was at 2.2 per cent as against 5.1 per cent last year.

The mining sector reflected further improvement by growing at 4.1 per cent in may this year compared to 2.6 per cent growth in the same month last year. The trend is also visible in the cumulative growth at 3.8 per cent in April-May 2001 as against 3.3 per cent in 2000. (PTI)

ONGC nod for increasing cumulative production

DEHRADUN, July 12: ONGC has identified Mumbai High and 14 other major oil fields to increase cumulative production and hired HCL Perot as a consultant for an expert review of the system, Company Chairman, Subir Raha, has said.

"A work programme to increase the recovery on an average by four to five per cent in the first stage has been drawn up for 15 fields. This work identified into 19 schemes is scheduled to be completed in the next five to six years with a cost of Rs 10,000 crore," Raha told PTI here after a two-day meeting of the executive committee of ONGC.

The committee reviewed all the major projects with the focus on upgrading the technology, Raha said, adding the company has also decided to hire HCL Perot as a consultant to give an expert-review of the system.

"Basically, the committee discussed about the need of technology upgradation and winding up of obsolete and redundant technologies," he said.

He said the company also looked up for exploration strategies — both long term and short-term — in India and Abroad and decided to set up an internal group of action.

On the exploration front, he said the ONGC has decided to hold moresurveys in the country and obtain new data in this regard.

"We want to keep data for 50 years and preserving data is very crucial in oil business," Raha said. Success in Mumbai High is central to any significant improvement in crude oil production in the next few years.

Efforts in this field involved detailed studies and review at different levels with the assistance of M/s Gaffney Cline and Associates, a reputed international consultant.

A multi-disciplinary team his been constituted to manage and oversee the project execution further. A board level sub-committee has also been set up to review progress and approve changes/modifications.

The studies in Mumbai High field in the last two years have proved conclusively that the quality of the materials and equipment has a direct bearing on well performance. Hence, some special dispensations from Government for ensuring the best in equipment and services acquired from outside sources would have to be considered vis-a-vis the practice of tendering for the lowest bidder, Raha said. (PTI)

Special bail-out package for UTI soon: Vassal

NEW DELHI, July 12: A special package will soon be worked out for Unit Trust of India (UTI) in the face of large scale redemptions of US-64 during April-May this year leading to freeze of the flagship scheme for six months.

"We will shortly work out the package," acting UTI Chairman K G Vassal told reporters after a two-hour meeting with Finance Minister Yashwant Sinha.

The UTI board is meeting in Mumbai tomorrow to discuss the special bail-out package.

Asked if the package would be finalised today, Vassal said "not today".

"It is too premature to say anything at the moment. Nothing has been finalised as yet," he said when asked about the package.

Asked if he had sought budgetary support for the bail-out package, Vassal said "all options are open but I cannot specify at this moment". (PTI)