NABARD may cut rate, asks banks to reschedule loan to farmers

NEW DELHI, Nov 6: In line with RBI’s rate cut, National Bank for Agriculture and Rural Development (NABARD) is likely to slash lending rates and has issued direction to banks and cooperatives to reschedule loans of drought-hit farmers amounting to about Rs 7,000 crore.

The apex bank for rural credit is also talking to reserve bank for extending the One-Time Settlement (OTS) scheme for recovering Non-Performing Assets to March 31, 2003, from earlier deadline of September 2002, its chairman Y C Nanda told reporters here today.

Referring to 0.25 per cent cut in bank rate to 6.25 per cent by RBI, he said "we are reviewing the interest rate structure. There is a possibility of reduction in rates."

NABARD, a subsidiary of RBI, provides refinance facilities to cooperative and rural banks at 5.5-7 per cent for short term loans, 7-10 per cent for term loans and 8.5 per cent on Rural Infrastructure Development Fund (RIDF).

Although non-committal on the extent of a possible cut in refinance rate, Nanda said NABARD has taken a number of measures to provide relief to ailing farmers although the rabi crops were expected to do well.

"We have already issued instruction to commercial banks, cooperatives and regional rural banks to extend the loan period in drought hit areas. We had made a rough estimate that the extent of relief required would be in the range of Rs 6,500-7,000 crore," he said.

NABARD has extended refinance loan tenure to 3-7 years from the maximum 18 months for drought hit areas.

Nanda said the bank has reduced interest rates on irrigation loans to 7.0 per cent and launched a special funding scheme for fodder and deepening wells. (PTI)

IA announces 10 pc hike in fares throughout its network

NEW DELHI, Nov 6: Indian Airlines today followed its private competitor Jet Airways in announcing a ten per cent across-the-board hike in fares from November 10 throughout its network in an effort to offset the hike in Aviation Turbine Fuel (ATF) prices and airport user charges.

However, there would be no change in the apex (advance purchase and excursion) fares and the domestic US dollar fares, an IA spokesperson said.

Jet Airways, while announcing a ten per cent hike last evening, had also hiked its point-to-point, return excursion and promotional fares.

Announcing the fare revision, the IA spokesperson said the Inland Air Travel Tax (IATT) would be increased proportionately but there would be no change in the insurance charge and the passenger service fee.

The excess baggage fares would also be revised proportionately, he said.

The increase in ATF prices following dismantling of the administered price mechanism and airport user charges has "left us with no other choice but to increase the fares," IA’s Director (commercial) Anil Goyal said.

Stating that the market "seems to have picked up" after the just-concluded lean season, he said this was the right time to hike the fares.

"But this ten per cent increase will only meet a small per cent of our heightened costs", Goyal said, adding that an additional burden of Rs 175 crore was incurred by IA in this current fiscal 40 per cent hike in ATF prices.

The IA spokesperson said tickets issued on or before November nine would be accepted for travel commencing on or before November 14 at the pre-revised rates. However, all tickets issued or reissued on or after November 10 would be on the revised fares.

Passengers wishing to cancel tickets on account of increase in fares will be allowed to do so without paying the refund fee, he added.

Jet Airways CEO Saroj Dutta had told PTI last night that the fare revision would be applicable on all sectors operated by the private carrier in all classes.

Air Sahara is yet to take a decision on the issue.

The ATF prices have increased by almost 40 per cent between March and October, with the steepest rise recorded in the last two months when it rose by ten per cent. ATF accounts for about 35 per cent of the price of a domestic ticket. (PTI)

Exl Services taps Nasscom ranking of ITES companies

NEW DELHI, Nov 6: Exl Services. Com(I) Pvt Ltd has emerged as front runner in a Nasscom survey of IT enabled services companies on the basis of revenues reported in accordance with generally accepted accounting principles in the United States (US Gaap) and auditor’s report as of March 31 last.

Daksh Services has been ranked second and GTL Ltd stands third in the survey.

Nasscom ranking is based on the US Gaap format since increasingly Indian IT companies have begun reporting revenues in this format due to requirement from the US market. Earlier, ranking by Nasscom was based on individual reporting of the companies.

Speaking on the survey, Mr Kiran Karnik, president, Nasscom said these rankings reinforced Nasscom’s initiative of encouraging the Indian industry to adopt the global best practices which are transparent and reliable.

Nasscom is the apex umbrella organisation for IT software and service organisations in India. (UNI)

C’garh to purchase paddy from which they could make Arwa rice

RAIPUR, Nov 6: Chhattisgarh Government today said it would procure only that variety of paddy from which they could make arwa rice.

The State Government has decided to procure paddy for two months ending December 31, next through the cooperative societies only in the minimum support price, Food and Civil Supply Department officials told PTI here today.

However, as per the directives of the Centre, only that variety of rice would be procured from where Arwa rice could be made and not all types of paddy, the officials clarified.

Ir-36, Ir-72, Ratna and Dipti are coming under this variety and the common variety paddy like Mahamaya, Kranti and Surekha will not be purchased, they said.

The officials said the Swarna variety of paddy produced in the State was put under the common variety although it could be categorised as rice from where Arwa could be prepared, they said.

Hence, it has been decided to urge the Centre to declare Swarna variety rice under the fine variety rice, they said. (PTI)

Tariffs to tumble as 14 Asian nations pledge free-trade plans

PHNOM PENH, Nov 6: A host of long-term free-trade plans involving 14 Asian countries including India and China and unveiled at the ASEAN summit talks this week will quicken the pace of tariff liberalisation and complement multilateralisms said.

"It only illustrates that regionalism is not a stumbling block but a stepping stone to multilateralism," Pradumna Rana, head of the Manila-based Asian Development Bank’s regional economic monitoring unit, told AFP.

Rana said the East Asian financial crisis that plunged the region into its worst recession had prodded policy-makers to integrate their economies for greater competitiveness and greater synergy.

Chinese Premier Zhu Rongi and leaders of the 10-member Association of Southeast Asian Nations (ASEAN) signed a landmark free-trade pact during the two-day summit held here to form the world’a largest free market by between 2010 and 2015, embracing 1.7 billion people and trade worth 1.2 trillion dollars.

Japanese Prime Minister Junichiro Koizumi also sealed a pact with ASEAN leaders to work on a framework to develop a free-trade area forging an enlarged economy worth at least 4.9 trillion dollars.

Under the deal signed on Monday between China and ASEAN, tariff cuts on selected farm products under an "early harvest package" will start as early as next year, even before negotiations to set up their free-trade area begin.

But the Japan-ASEAN pact is only at the stage of agreeing to develop a framework.

The ASEAN leaders also endorsed a report from a think-tank during their meeting with the Chinese and Japanese leaders, and South Korean Prime Minister Kim Suk-Soo, to consider a free-trade area covering the 13 countries.

To cap it all, the leaders of China, Japan and South Korea also agreed to examine the prospect of establishing a free-trade area covering the three nations within "the medium to longer term," a senior Japanese official said.

Trade analysts and diplomats said the flurry of trade deals covering East Asia, although long-term in nature, would knock down tariff walls in the region and complement the efforts of the World Trade Organisation (WTO ).

"Of course the big question is after giving their under takings, how committed are they in dismantling tariffs," said S Pushpanathan, the Assistant Director for External Relations in the Jakarta-based ASEAN secretariat.

"I believe all of them are sincere, including China, which is not only looking at opening up its goods sector but services as well," he said.

Pushpanathan said India was expected to reduce its peak tariff rates to East Asian levels in the next three years.

Liberalisation of the ASEAN and Chinese, South Korean and Japanese economies will have a significant impact on the global economy as the 13 East Asian economies represent 23 per cent of the world’s gross domestic product and 40 per cent of its foreign reserves. (AFP)

5 food processing industrial parks on anvil in NER

NEW DELHI, Nov 6: The Ministry of Food Processing Industries has decided to set up five food processing industrial parks in the North Eastern Region (NER) in view of its huge horticultural potential.

Of the five units, two will be located in Manipur, and one each in Assam, Mizoram and Tripura.

The Centre has also launched a technology mission for integrated development of horticulture in the region and has sanctioned Rs 33 crore for eight projects in the NER, according to official sources.

A day-long seminar-cum-business meet is being organised by centre tomorrow at Kolkata for the promotion of food processing industrial activities in the NER.

The meet, to be inaugurated by the Minister of Food Processing Industries N T Shanmugam, will be attended by NER state financial institutions, public sector undertakings and a large number of entreprenuers.

The NER comprise Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim. Despite favourable conditions for growth, the NER remains under-developed and the resources untapped. Focussed development of horticulture in the region has inherent potential to bring in economic benefits to the region. (UNI)

Escotel cuts rates, Airtel uses postal deptt to counter BSNL

KOCHI, Nov 6: Alarmed at the entry of public sector Bharat Sanchar Nigam Ltd (BSNL) in Kerala’s cellular market, private cellular operators in the State are trying to woo the customers with reduced tariff and value-added services.

While Escotel today announced tariff cut for both incoming and outgoing calls from the present Rs three to Rs 1.20 for 30 seconds, the Bharti Cellular Limited (BCL) which operates under "Airtel" brandname has tied-up with the postal department for marketing their pre-paid sim cards and recharge coupons through post offices.

It is for the first time in the country that the postal department has entered into a contract with a private cellular company to market their products.

As per the contract, 58 post offices out of 1,860 in the central circle of the department in Kerala will market Airtel products on 12 per cent commission. If found successful, more post offices would be brought under the project, said general (central region) postmaster P C Baburaj at a news conference here today.

Most of the post offices located in rural areas will sell the cards and the customers need not go to town and citities to purchase a sim card.

BCL Kerala chief operating officer T Elango said the company proposed to invest Rs 50 crore in the state to set up 50 more base stations in addition to the existing 184 stations.

The company which started operations in Kerala four months back by investing Rs 170 crore had been able to build up a customer base of 60,000 during the short period.

He said post offices in Thiruvananthapuram and Kozhikode regions were also proposed to be utilised to market the company’s products. BSNL provides comprehensive coverage of all cities and towns in Kerala including that in the hilly districts of Wynad and Idukki with national and international roaming facilities. All national highways and major state highways are being served over a length of more than 2,000 kms.

Detailing his company’s expansion programme, Escotel Chief Executive Officer Rajan Swaroop told mediapersons that an investment of Rs 100 crore would be made during the year, mostly in Kerala, for providing value-added service to its 2.5 lakh customers in the State.

He said the new tariff announced today would come into force from November eleven. The tariff was expected to go down further in three to six months making cell phone within the reach of the common man.

Mr Swaroop said 25 new base stations and two switch modules would be set up in Kerala during the year as part of providing improved service to its customers. The company had also made arrangements to deliver its sim cards on the doorsteps of the customers and issue bills for pre-paid services. Escotel has 10,000 retail outlets in the state at present.

He said the company had ensured accebility from Thiruvananthapuram to Palakkad on the national highway-47 and from Kochi to Kasaragod on national highway-17. Smart alert facility was an innovation introduced by the company for its customers recently. The facility enables the customers to monitor missed calls when the handset remained switched off. (UNI)

US 1 bln debt write-off for Pakistan on track

ISLAMABAD, Nov 6: A senior US official today said cancellation of a 1.0 billion dollar debt to key ally Pakistan was on track, although Congress still had to pass the required legislation.

Under Secretary for Economic, Business and Agriculture Affairs Alan Larson told reporters after meeting Commerce Minister Abdul Razzak Dawood, the US Congress would address the issue after the current mid-term elections.

"We are very confident that we will proceed with that," he said.

The United States made the commitment to write off the debt during a visit by General Pervez Musharraf to Washington in February after Pakistan became a key US ally in its war on terror.

The two countries also signed a deal in August for the consolidation and restructuring of 3 billion dollars in debt owed by Pakistan.

This is the US portion of 12.5 billion dollar of bilateral debt the Paris Club of donors agreed to reschedule last November after Pakistan abandoned its support for Afghanistan’s Taliban regime.

Pakistan’s Finance Minister Shaukat Aziz said the overall relief offered by Washington would reduce the value of the bilateral debt to the United States by up to 30 percent.

Aziz’s economic reforms have won praise from international and bilateral donors, all of whom wanted to see a continuation of the financial and economic reform process.

Pakistan’s economic reforms were aimed at curbing fiscal deficit, improving Government revenues, promoting GDP growth and managing ballooning foreign debt. It also includes privatisation of state companies and deregulation of the oil and gas sector.

Larson said economic reforms had placed Pakistan in a good position to attract foreign investment and increase trade, particularly with the United States.

"We have gone through a couple of years that have been somewhat turbulent in the international economy but Pakistan has been able to progressively improve its economic position," he said.

"So now it is well poised in my view to have a take off, an economic take off that will be fuelled by trade and investment."

Pakistan is seeking to boost exports to the United States in the traditional textile sector and other areas. (AGENCIES)

| home | state | national | business | editorial | advertisement | sports
| international | weather | mailbag | suggestions | search | subscribe | send mail |