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Govts bridge airline SINGAPORE, Sept 24: Asian Governments stepped forward to bridge an insurance gap for their ......more RBI
reduces interest MUMBAI, Sept 24: The Reserve Bank of India has announced reduction in interest.......more Zuari
Ltd to set up a BANGALORE, Sept 24: The Zuari Industries Limited is planning to set up a gas-based fertliser plant in .......more Sinha
to review tax NEW DELHI, Sept 24: Encouraged by buoyancy in tax collection during the second quarter, Finance Minister, Yashwant Sinha, has decided to meet tax .....more |
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GPIL in tie-up talks for MUMBAI, Sept 24: Godrej Properties and Investments Ltd. (GPIL) is in alliance or partnership talks with owners of old buildings and flats under the ......more Silver moves up NEW DELHI, Sept 24: Silver prices continued their upward march on the bullion market on sustained....more RBI move to cut MUMBAI, Sep 24: In a move to boost exports, the Reserve Bank of India today announced a reduction .....more Contingency plan NEW DELHI, Sept 23: Worried over the impact on the global economy of a possible US military...more |
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RBI reduces interest rates on export credit MUMBAI, Sept 24: The Reserve Bank of India has announced reduction in interest rates for export credit by 1.0 percentage point across the board. The reduction will apply to both, pre-shipment and post shipment credits, an RBI release stated here today. As per the instructions issued by the RBI today, the maximum rate that the bank should charge to exporters will be 2.5 percentage points below its prime lending rate for pre-shipment credit up to 180 days and for post-shipment credit up to 90 days. Earlier, the ceiling rate was 1.5 percentage point below the prime lending rate. This further concession will apply in respect of all export credit granted by banks effective September 26, 2001 and upto March 31, 2002. The RBI spokesperson said that in addition to the above facility for rupee credit, exporters would continue to have the facility of foreign currency loans in the currency of their choice at highly internationally competitive rates. The rate for foreign currency loans to exporters will continue to be libor plus maximum of 1.0 percentage point. Thus, currently dollar-denominated foreign currency loans can be availed by exporters at no higher than 3.0 per cent (libot rate) plus 1.0 per cent, (4 per cent). The spokesperson also added that even in regard to rupee loans, the exporter, while availing the concessional credit, can sell the export proceeds in the forward market. Assuming a plr of 10.5 per cent, the ceiling for interest rate on export credit would be 8.0 per cent, and adjusting for forward premia which are currently over 5 per cent, the effective interest rates to exporters on rupee loans can also come down to as low as three per cent. (UNI) |
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Zuari Ltd to set up a plant in Middle East BANGALORE, Sept 24: The Zuari Industries Limited is planning to set up a gas-based fertliser plant in Middle East Asia with an investment of about 450 million US dollars, its Managing Director H S Bawa said today. Talking to newsmen here, he said the company had identified three locations and a firm decision would be taken in about nine to 12 months after a long term contract for supply of feedstock was finalised. Depending upon the locality, the company would decide on its joint venture partner, he said adding that the company would prefer to go it alone. The K K Birla Group Company which has diversed into various fields including cements, fertilisers, home financing, software and consultancy had already set up a joint venture in morroco producing phosphoric acid with a total investment of 228 million dollars. Plans were afoot to start another stream of production to manufacture pure phosphoric acid for use in pharmaceutical companies,he added. Mr Bawa said the company was looking ahead for an investment of over Rs.2000 crore during the next three to five years. Stating that at present it had no plans for acquiring the UB group-owned Mangalore chemicals and fertlisers, he however said the company had plans to stake claim for the state-owned Pradeep Phosphates and National Fertilisers Limited which had come up for disinvestment. Mr Bawa who was here in connection with the opening of the corporate office of the Zuari Cement Company, a joint venture between Zuari and Italcementi said the group would take a decision at the appropriate time for acquiring cement factories or look for green field projects. The company’s current 2.2 million tonne capacity unit at Yerraguntla in Andhra Pradesh was running to 100 per cent capacity and plans were afoot for the group to increase the cement production capacity to about six million tonnes with an investment of Rs 2000 crore. Italcementi vice president G Seifert said his company was looking for gaining a strong foothold in India. It had already established a firm foot in the continent acquiring two companies in Thailand. The company aimed to concentrate its business in south and had no plans to move up north. However it would look into the prospects of manufacturing other products such as readymix concrete, Mr Seifert said. Zuari and its sister concern Chambal fertilisrs and chemicals together have a turnover of over Rs 4,000 crore and an asset base of Rs 4,500 crore with investments in fertilisers, seeds, biotechnology, cement, financial services and engineering services besides ready to assemble furniture unit in Chennai set up with French collaboration and brand name "gautier". (UNI) |
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Sinha to review tax scenario with CBDT, CBEC this week NEW DELHI, Sept 24: Encouraged by buoyancy in tax collection during the second quarter, Finance Minister, Yashwant Sinha, has decided to meet tax authorities this week in order to achieve the revenue target of Rs 2,31,745 crore this fiscal. "The latest trend in revenue collection is encouraging, especially after advanced tax receipts till September 15. The figure looks better than we had anticipated. We want to build upon this," Sinha told PTI in an interactive session. He declined to give figures as collections would go up further in the remaining days of the month. Tax collections were at Rs 32,418.89 crore during the first quarter, which is 12.89 per cent less than collections during April-June 2000. The fall was mainly on account of a drastic 63 per cent fall in corporate tax collection. In the second quarter, Sinha said though customs collections were down due to lower imports, excise mop-up has improved. Expressing confidence about the fiscal situation in the face of tax buoyancy, Sinha said, "I won’t regard any minor slippages as a disaster for the economy considering the turbulence in the world economy now." He ruled out imposition of fresh taxes saying "in a slowdown phase, which remains a fundamental structural problem, it is my view that any increase in taxes at this point of time will be counter-productive." Instead, he said, "I will be happy to meet the revenue target. We will have a review of the collection with the Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) possibly on September 26." The Government has targeted a total receipts of Rs 3,75,223 crore this fiscal with revenue receipts expected at Rs 2,31,745 crore. To a query whether Government would meet the disinvestment target of Rs 12,000 crore, Sinha said, he had already mentioned in his budget speech that Rs 5,000 crore has been provided for in the additional plan expenditure linked to the receipts from the sell-off. Of the Rs 12,000 crore, he said, Rs 7,000 crore was provided for in the budget while the remaining Rs 5,000 crore would be allocated to the Planning Commission subject to its realisation. Rs 5,000 crore was "conditional" and the Planning Commission would be allocated only that amount which was realised beyond Rs 7,000 crore, he said, adding if Government did mop up any amount from disinvestment this year "the hole in the budget" would only be Rs 7,000 crore and not the entire Rs 12,000 crore. The Government has targeted to keep its fiscal deficit to Rs 1,16,314 crore or 4.7 per cent of GDP this fiscal. (PTI) |
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GPIL in tie-up talks for land value addition plan MUMBAI, Sept 24: Godrej Properties and Investments Ltd. (GPIL) is in alliance or partnership talks with owners of old buildings and flats under the Maharashtra Housing Area Development Authority (MHADA) in South and Central Mumbai. The idea is to have partnership with the landlord and tenants of old, dilapidated buildings, constructed before 1940 and redesign or construct new ones with additional 2.5 Floor Space Index (FSI) on the same plot. "While the flat owners would get back their similar areas in the new building, the land owners and the company would share revenue income and profits from the additional FSI quantity," said Mr Milind Korde, General Manager of GPIL. GPIL, which had initiated such a partnership scheme a few years ago, has already developed several residential and commercial properties in Mumbai and Pune. The scheme has provided value addition to the idle assets in prime locations. GPIL has invested around Rs 300 crore in Mumbai and Rs 100 crore in Pune for construction of prime properties in alliance with land owners and handed over such properties to real estate consultant such as, knight frank for sales and maintenance of the properties. "It’s a win-win situation where land owners create value addition to their assets along with the property developers," said GPIL Managing Director Mr Amit Choudhury. Mr Choudhury said, his company was actively exploring the possibility of creating a national presence by focusing on cities like Bangalore, Hyderabad, New Delhi and Calcutta. It has plans to develop high-value projects in prime locations. GPIL, which started its operations in 1990, has already sold over 2,250 apartments and 219 units of commercial space in Mumbai and Pune. It is the first indian real estate developer to obtain ISO-9001 certification, according to sources in the company. In Pune, Mr Choudhury said, GPIL developed five Properties—Godrej millennium, Godrej Eternia, Godrej Sherwood, Godrej Avanti and Godrej Castlemaine— at an investment of Rs 100 crore in the last three years. The properties were developed in partnership with land owners and handed them over to consultants. While the real estate market remained flat for the past five to six years, GPIL had been making consistent profits since its operations in 1990 because of its strategic investment decisions, Mr Choudhury said. Last year, it made a profit of Rs 9 crore on a revenue turnover of Rs 75 crore. It is expected to achieve a profit of Rs 12.5 crore in the current year. (UNI) |
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Silver moves up further on paucity of stocks NEW DELHI, Sept 24: Silver prices continued their upward march on the bullion market on sustained buying by local parties in view of tight stocks position and closed with another moderate gain. Gold, on the other hand, eased mildly on lack of buying support in view of fresh arrivals. Marketmen said trading in silver was influenced by the restricted arrival in view of festival buying, particularly in silver. They said most of the stock was in stockists hand and out of circulation which created a tight stocks position and helped the prices to go up. Silver ready gained another Rs.25 at Rs.7510 per kilo and weekly-based delivery by Rs.25 at Rs.7520 per kilo. Silver coins maintained at the previous level of Rs.11,500/11,600 per 100 pieces. Standard gold was unwilling to go with the oveRseas trend and despite an inter-day rise to 293.50 US dollar an ounce in asian markets, it eased by Rs.5 at Rs.4825 per ten gram. Ornaments were also lower by Rs.5 at Rs.4675 per ten gram. Sovereign continued to be asked at last level of Rs.3900 per piece of eight gram. Following were today’s quotations: Silver ready 7510 and delivery 7520. Silver coins buyer 11,500 and seller 11,600 standard gold 4825, ornaments 4675 and sovereign 3900. (PTI) |
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RBI move to cut interest rate on export credit MUMBAI, Sep 24: In a move to boost exports, the Reserve Bank of India today announced a reduction of interest rates for export credit by one percentage point across the board with effect from September 26. The reduction in the rates would be applicable for both pre-shipment and post shipment credits, the RBI said in a statement here. The RBI said the maximum rate the bank should charge to exporters would be 2.5 per cent below its prime lending rate (PLR) for pre-shipment credit upto 180 days and post shipment credit upto 90 days. Earlier, the ceiling rate was 1.5 percentage point below the PLR. The concession would apply to all export credit upto March 31, 2002, the apex bank added. In addition to the above facility for rupee credit, exporters would continue to have the facility for foreign currency loan in the currency of their choice at internationally competitive rates, a RBI spokesperson said. According to market circles, the depreciating rupee and today’s announcement of lowering the interest rates for export credit would give a competitive edge to exporters and boost exports. Welcoming the reduction, Chemexcil chairman Kishore Chokhani said the impact would be minimal, but the cost of finance would become comparable to the other exporting countries. The rupee depreciation in the last two weeks would definitely spur exports in the long run, he added.(PTI) |
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