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Global CEOs to NEW DELHI, Oct 10: Nearly 95 per cent of CEOs and senior executives across the world are more concerned about global economy today than they .....more Domestic
industries PATNA, Oct 10: Bihar Industries Association (BIA) claimed that domestic industries were facing serious challenges....more America-Taliban
MUMBAI, Oct 10: The devastating September 11 terror attacks on the cities of the United States and the subsequent retaliation on the Taliban regime in ......more NRI
forum demands DUBAI, Sept 10: Indian investors in the United Arab Emirates (UAE) have demanded that New Delhi facilitate joint ventures...more |
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Pak offers to sell WFP KARACHI, Oct 10: A Commerce Ministry official said on Wednesday Pakistan had offered to sell the UN World Food Programme (WFP) up to.....more Ways
being explored BANGALORE, Oct 10: Government is exploring ways to revive sick public sector undertakings with a +menu+ of packages and units would be closed ......more Eurostocks
off lows, LONDON, Oct 10: Gains in oils and steadier techs helped European bourses pare their losses by mid-morning on Wednesday, but investors still ...more Birla
Sun LIC embarks on KOLKATA, Oct 10: Birla Sun Life Insurance Company Ltd, the joint venture between the Rs 26000 crore Aditya Birla Group and the Sun Life Financial .....more |
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Domestic industries facing serious challenges: BIA PATNA, Oct 10: Bihar Industries Association (BIA) claimed that domestic industries were facing serious challenges in the country and particularly in the state as Nepal had become a ‘conduit’ of cheaper import of foreign goods from China and other North East Asian countries. BIA President K P S Keshari said here yesterday that the state was facing the ‘first’ impact of ‘undue’ competition from Nepal which had become a ‘conduit’ of cheaper import of foreign goods from China and North East Asian countries. He claimed that ‘widespread under valuation’ of import was proving to be a nightmare for the Indian industry. He said that domestic industries which were alarmingly under serious threat were vanaspati, acrylic yarn, edible oils, galvanised pipe, copper wire and others. He said that nepalese traders found it more lucrative to export the imported goods without any value addition. Claiming that raw materials and manufactured goods without hardly any value addition was being dumped in the country, Mr Keshari said that this practise was quite against the spirit of Indo-Nepal treaty signed to develop Nepal’s industries. Union Minister of State for Commerce and Industry Rajiv Pratap Rudy during his recent visit to the BIA, assured that he would try to ensure that the matter was discussed at length in the forthcoming Indo-Nepal meeting. Mr Keshari also demanded immediate establishment of air cargo complex in Patna for the export of fresh produce from the state. He said that the funding proposal for the establishment of air cargo complex had already been approved by the Union Commerce Ministry in January, 2001 at a total cost of Rs 5.92 crore. He said that after clearance by Union Civil Aviation Ministry, the land had also been arranged for the air cargo complex. Mr Keshari also stressed on the need of for settting up a dry port and container depot in the state for the benefit of industrialists and promoting exports from the state. He said that survey for export potential in Bihar should also be carried to understand the export potentials of the state. He said that the Union Commerce Ministry had already alocated Export Promotional Industrial Park (EPIP) in Hajipur and added that it would help in harnessing the export potentials. Mr Keshari said that BIA was planning to organise industrial trade fairs on an annual basis. He said that such trade fairs would boost the marketing of the products from Bihar and open a two way channel for the industrial growth in the region. He informed that Bihar State Export Corporation (BSEC) had submitted a proposal for setting up a mini apparel park at Bhagalpur or Banka for developing export possibilities of silk garments from the region. (UNI) |
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America-Taliban stand-off redefines insurance premiums MUMBAI, Oct 10: The devastating September 11 terror attacks on the cities of the United States and the subsequent retaliation on the Taliban regime in Afghanistan, the Government that shelters Osama Bin Laden, the prime accused, have brought a paradigm shift in risk management strategies. Insurers and underwriters worldwide, are now redefining premium factors for risk-prone businesses, like shipping and aviation, say industry experts. The attacks on twin towers of the World Trade Centre in New York and the Pentagon in Washington, have dealt a massive blow on US economy, incurring an estimated loss of over 70 billion dollars to insurance companies and underwriters. Events like these, generally beyond human imagination, have added to the dimensions of premium fixing exercise, as the industry captains are now busy incorporating commonly unthinkable factors. Indian insurance industry, which is also prone to these types of unforeseen factors, have decided to impose a special war risk premium on all carriers. Industry experts say, this would lead to a significant jump in freight rates, container charges and air cargo shipping, affecting India’s export competitiveness in the already depressed market, vis-a-vis higher import bills. According to Mr Prabodh Thakkar, Managing Director of Global Insurance Services, due to a revision in insurance premium, the freight rates would go up by 100-150 dollars per container, while air shipping will cost Rs 7.50 per kg more. Many international hull and machinery underwriters have imposed a war premium in the range of 0.025-0.05 per cent while, Indian underwriters have decided to charge 0.05 per cent special war premium, he said. The freight rates will go up by 50 to 70,000 dollars per transit, following the imposition of a special war premium by marine insurers. The rise in premiums has also compelled many domestic and international carriers to impose a surcharge on flight fare. Indian airlines’ insurance premium has also gone up significantly. This would also translate in fare hike also, he said. Canada 3000 has already imposed a surcharge of Rs 90 on its Delhi-Toronto return flight fare, in view of the hike in insurance premium. Shipping companies may not be able to absorb the increase in insurance premium entirely, and therefore, they would be forced to pass on the burden to cargo companies, making India’s exports un-competitive vis-a-vis other economies, said Rajiv Deora, a Mumbai-based leading exporter. The hike in insurance premium would also have impact on our exports, as our products would become un-competitive in the global market, Mr Deora added. However, we being part of the region, we cannot be insulated against the risk to the on-going war, said Mr Arvind Sonmali of EXIM Bank. The short-term impact of the crisis may be a slowdown in exports. But the long-term impact may not be a serious one, as exports contribute less than 10 per cent to our gross domestic product, he said. The hike will also mean a rise in oil import bills, as freight rates will increase. It will have a bearing on our balance of payment position, said an analyst. According to Oriental Insurance Company sources, the hike in the premiums has been revised with immediate effect and will be further revised depending on how the conflict in the region unfolds. (UNI) |
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NRI forum demands joint venture facilities DUBAI, Sept 10: Indian investors in the United Arab Emirates (UAE) have demanded that New Delhi facilitate joint ventures in India by Non-Resident Indians (NRIs) and their host country partners. Perturbed by alarming rise in bank frauds, they have warned that NRIs will be tempted to withdraw their deposits if the Government does not crackdown on financial crimes and instill their confidence in the banking system. The Dubai-based overseas Indians Economic Forum has suggested that a separate single-window should be established to help them with their investment projects. These demands were contained in a memorandum submitted to Omar Abdullah, Minister of State for External Affairs, who was in Dubai last week on a stopover from the Maldives. The memorandum was signed by the Forum’s vice president B R Shetty and its investors’ liaison committee chief Bharatbhai Shah. The UAE accounts for one million of the 3.5 million NRIs working in the Gulf region. The Forum has expressed apprehensions that the banking system will collapse if financial frauds are allowed to continue without any check. Overseas Indians may be compelled to transfer their deposits out of the country if these problems are not addressed, it warned. It said matters concerning frauds should be taken up with various authorities like the Reserve Bank of India, the Central Bureau of Investigation and the Finance Ministry. "These agencies are asking for the bona fide of the investors rather than grilling the culprits," the Forum regretted. It has demanded that mandatory insurance must be introduced for all Indians working abroad. This will help safeguard against unpaid remuneration, premature termination and cover repatriation expenses. The Forum has said all Indian missions should be empowered to stamp NRI status in the passports to enable them to avail of facilities given by the Indian Government. It complained that NRIs are harassed whenever they approach the Government for facilities like children’s admission in educational institutions or buying and selling of property and stocks. The NRIs also face undue harassment when seeking banking services. The NRI status stamped in the passport will help save them from these hassles and put a strop to ambiguities arising from legal problems of issuing a separate identity card. This will save them from carrying different kinds of documents to prove their status, the Forum noted. It said the deposit amount equivalent to the return airfare collected from workers at time of their departure from India should be kept with Indian missions abroad to facilitate timely help. The present practice is to keep the money with the Finance Ministry. (UNI) |
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Pak offers to sell WFP sugar for needy Afghans KARACHI, Oct 10: A Commerce Ministry official said on Wednesday Pakistan had offered to sell the UN World Food Programme (WFP) up to 100,000 tonnes of surplus sugar to be used to help feed Afghan refugees. "We have sufficient sugar available from present stocks and the new (sugarcane) crushing season will also start from next month...If the UN aid agency needs sugar we can provide them," the senior official told Reuters. "We offered for them to buy sugar from us at existing market prices, but we can negotiate any sale price," he added, saying the WFP has yet to respond. The United Nations has estimated that up to 7.5 million Afghans, who have suffered years of conflict, a severe drought and now the US-led strikes, could need assistance during the fast-approaching winter. The United States and Britain launched air strikes on Sunday against targets of the ruling Taliban in Afghanistan in retaliation for the September 11 suicide hijackings that killed up to 5,600 people in New York and Washington. The WFP expects to buy up to 100,000 tonnes of Pakistani wheat as it gears up its efforts to feed millions of hungry Afghans. Pakistan has also agreed to lend 300,000 tonnes of wheat to the WFP to fill gaps while the aid agency awaits the arrival of food aid sent by donors. A sugar trader in the southern port city of Karachi said surplus stocks would increase in coming months as the new crushing season would start from November 15, to add to existing stocks of more than 650,000 tonnes. "Domestic demand of sugar is around 275,000 tonnes per month and we have have over 650,000 tonnes available... Pakistan could even supply 150,000 tonnes to Afghan refugees," the Commerce Ministry official said. Pakistan, a sugar importer last year to meet domestic demand, has never previously offered to supply sugar to any aid agency. The country’s annual processed sugar demand is around 3.3 million tonnes and in previous years it has produced 2.7 million to 2.8 million tonnes, with the demand gap bridged through imports from India. During the current crop season 2001/02 (February 2001 to March 2002) Pakistan has sown sugarcane on 1.032 million hectares (2.6 million acres), surpassing its cultivation target of 961,000 hectares. Officials in the Food and Agriculture Ministry estimate production in 2001/02 could reach above 3.20 million tonnes. Another sugar dealer said the excess stocks had already hit domestic prices, which were 24 to 25 rupees/kg, down sharply from levels above 30 rupees/kg in the same period last year. "The market is sluggish...People are cautious in buying after the September 11 incidents and we anticipate a further fall in domestic prices," the official added. He said demand would increase in the middle of November, when the Muslim fasting month of Ramadan is due to start, but that would have little impact on prices as increased supplies would be available. (REUTERS) |
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Ways being explored to revive sick PSUs BANGALORE, Oct 10: Government is exploring ways to revive sick public sector undertakings with a +menu+ of packages and units would be closed only as a last option if efforts to revitalise them fail, Union Minister of State for Heavy Industries Vallabhbhai Kathiria said today. He told reporters after addressing a seminar here, that during 1999-2000, 125 PSUs earned a net profit of Rs 24,615 crore while 106 incurred loss to the extent of Rs 10,060 crore, the overall profit being Rs 14,555 crore. He said Government would revive PSUs where there were chances to do so through restructuring but would close down those which were ‘terminally sick’ and beyond revival. Kathiria, however, noted that despite the growing competition and economic slowdown, central PSUs numbering 240 with an investment of Rs 2,52,554 crore had improved their overall performance. ‘Performance-wise PSUs are a mixed bag. We have very good performers but we should not overlook that most of them operate as public monopolies’, he told the seminar organised by the Ministry of Heavy Industries and UNDP. Kathiria said some PSUs had been able to rationalise their surplus manpower under VRS and this along with other measures had helped them in improving their financial results. However, but some PSUs had not derived benefits out of these reform measures. (PTI) |
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Eurostocks off lows, oils firm, techs steadier LONDON, Oct 10: Gains in oils and steadier techs helped European bourses pare their losses by mid-morning on Wednesday, but investors still worried about continued U.S. bombing of Afghanistan and possible retaliation. The pan-European Eurotop 300 index and the Euro Stoxx 50 index were little changed after opening lower. Sentiment was helped by U.S stock futures paring most of their losses ahead of Wall Street’s open. But as techs moved off their lows, food and beverage stocks came under pressure, led lower by Britain’s Diageo, off three percent, while Swiss Nestle fell 0.8 percent. Financials were also weak, along with telecoms. German drug company Bayer was among Europe’s top blue chip advancers, up 1.4 percent as demand for its anthrax treatment Cipro drug surged in the United States amid fears of biological attack, as two cases of Anthrax in humans were confirmed in Florida. Afghanistan-based Osama bin Laden, America’s chief suspect for last month’s attacks on New York and Washington, called for a holy war against America. The U.S bombed Afghanistan for the third successive night, as the prospect of a long war loomed. Bourses have recouped most of the ground lost immediately after the September 11 attacks that sent European shares to three-year lows. The energy sector was strongest, up 1.5 percent as oil stocks gained, with Royal Dutch up 2.4 percent, BP 1.4 percent, and Totalfinaelf one percent. A source at OPEC told Reuters on Tuesday the cartel was discussing a production cut to prop up crude prices though the timing remained unclear. U.S crude supplies also fell unexpectedly last week. Analysts said oil were also a defensive play offering steady earnings. Nokia and other European mobile phone handset makers were waiting to see if a conference call from U.S. peer motorola later in the day would offer any clear outlook guidance for the industry. After New York’s close on Tuesday motorola said it lost 1.4 billion in the third quarter, its third consecutive quarterly loss, but its unit that makes mobile phones returned to profitability sooner than expected. Europe’s earnings woes continued to mount. French cable maker Nexans fell 5.2 percent after it warned that 2001 net profit would be below last year’s. British software maker autonomy also warned about earnings, sending its shares down 7.3 percent. But Dutch Data Communications network company Versatel Telecom soared 70 percent after saying it would exchange 1.7 billion euros of bonds for cash and equity. Most bond holders had no longer expected their bonds to be valuable as fears over the company’s health mounted. As expected, the European Commission on Wednesday rejected Schneider Electric’s 6.42 billion Euro bid for rival Legrand to become the world’s largest maker of low-voltage equipment. Shares in Schneider fell 0.8 percent, while Legrand gained 3.4 percent. Switzerland’s biggest bank, UBS Ag said on Wednesday it was concerned about a recent rise in shares of Swiss regional carrier Crossair which is serving as centrepiece of a new airline which will include parts of ailing Swissair. Crossair’s total capital requirement is likely to be a multiple of the amount of a proposed rescue package, UBS said. ‘’for these reasons, UBS is concerned that the rise in Crossair’s share price is based on a lack of information concerning both the amounts of capital that will need to be raised and the inherent business risk,’’ the bank said. Crossair shares slumped 20 percent.(REUTERS) |
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Birla Sun LIC embarks on extensive expansion prog KOLKATA, Oct 10: Birla Sun Life Insurance Company Ltd, the joint venture between the Rs 26000 crore Aditya Birla Group and the Sun Life Financial Group, has embarked on an extensive expansion programme by opening five branches to penetrate the rural and urban markets in the country. With a strong distribution channel of 120 trained advisors and the group has also formed the Birla Sun Life distribution company for marketing the various products to the different stratas of clients. Apart from the strong team of trained advisors the group would forge alliances with the foreign banks like Citibank, create corporate agencies and utilise its vast workforce for penetrating the markets, Mr Vijay Singh one of the directors of the Birla Sun Life Insurance Company Limited said, while opening the company’s first branch in Kolkata today. The company would also set up direct mail services and internet services and bring in superior technology to deal with the clients, he said. Armed with the different varieties of products in both the individual and group segments the company has planned to set up around 5 branches by the end of the year. Our expansion plans are proceeding as planned and we are thinking of opening another four to five branches by the end of the year, Mr Singh said. Speaking about the range of products the company has launched Mr S K Mitra the Director of the group financial serives of the aditya birla group said, having adequate capital for the venture and a healthy solvency level, the company has prepared the policies in such a manner that with the change in the risk propensity the investment options can be changed. Speaking about the performance of the company after entering the Indian market, Mr Singh said, the group has earned a revenue of Rs 9 crore in the first quarter of the current year and we are well ahead of the plan. Speaking about future endeavours of the company, Mr Singh said, there are great opportunities in the rural market which had so far been unutilised by the insurance sector and the group would bring in innovative products to penetrate the rural segment. (UNI) |
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