British Hawk deal soon, indicates Fernandes

BANGALORE, Nov 12: Defence Minister George Fernandes today indicated that India was close to clinching a deal with British aerospace for the Hawk Advanced Jet Trainer (AJT) and denied that Government was considering another proposal.

Asked if Government had finalised the Hawk deal, Fernandes told reporters here that there was a note which had been readied for consideration by Cabinet Committee on Security and added that he can’t say as to how soon the deal would be signed.

Asked if Government was also looking at the Czech-YS offering of l-159 AJT, the Defence Minister said, "we are not looking at any."

Earlier, he remarked that further delay on inking the AJT deal would mean that Indian Air Force would end up being the loser.

Longer the time India took to decide on AJT, more would be on the scene (with offer of AJTs). "At the end of it all, the loser will be Indian Air Force," he said.

Noting that India was in the market looking for AJTs for many years now, Fernandes said the proposal was there before he got into the Defence Ministry. "I only hope that it (AJT deal) does not survive me," he joked.

The AJT deal for 66 numbers, according to reports, is now worth Rs 3,000 crore. (PTI)

Bill Gates commits 21 million dollar on various IT projects

NEW DELHI, Nov 12: Microsoft chairman Bill Gates has agreed to provide an assistance of one million dollar for the Media Lab Asia project by Government of India, besides extending 20 million dollar for an e-learning initiative called "Shiksha".

Gates made the commitments during an hour-long meeting with Communications and IT Minister Pramod Mahajan here today.

According to an official spokesperson, Gates has agreed to give one million dollar for Media Lab Asia and 20 million dollar towards an e-learning project — Shiksha — for "training the trainers."

The commitment of 20 million dollar is spread over a period of three to five years, sources said.

Mahajan had earlier explained the purpose and idea behind the Media Lab Asia project to Gates and expressed hope that with Microsoft extending assistance to it, more international fund would find way to the socio-economic project.

Under the Shiksha project, the Microsoft assistance of 20 million dollars would involve training of 80,000 teachers along with 3.5 million students over a 3-5 year period.

The project would be coordinated by the Department of IT.

Gates and Mahajan today also discussed telecom growth in the country in the last two years, Government’s efforts in tackling the digital divide and the Community Information Centre (CIC) projects in the north east, and e-governance, sources added.(PTI)

Sukhoi production schedule advanced

BANGALORE, Nov 12 : The indigenous production of deep penetration strike aircraft, Sukhoi MKI 30, the latest Russian acquisition of the Indian Air Force, has been advanced by the Hindustan Aeronautics Limited (HAL) by four years.

Hal chairman N R Mohanty told newspersons here today that all the 140 Sukhoi MKI 30 would be delivered with a ten year schedule as against 14 years planned earlier with the first aircraft to be delivered in 2004.

The detailed project report for the Rs 20,000 crore project was being reworked to complete the production schedule at the earliest, he said after receiving the chief of Air Staff commendation certificate for overhauling Kiran fleet.

In view of the schedule being advanced there would be pressure on capital expenditure by HAL. However it would be met mostly by internal resources. As there was no intention to raise them from the Government, he said adding that the credit rating of the company was very high. Mr Mohanty said Intermediate Jet Trainer (IJT) development was in an advanced stage with the first flight scheduled for March next year. IJT was aimed to replace over 200 Kiran trainer aircraft, now meeting the training requirements of the IAF.

Air Officer Commanding in chief of training command Air Marshal T J Masters said IAF was keen to induct IJT into the training fleet by 2007-08 when replacement of Kiran aircraft would be felt. He said besides IJT, the IAF was also keenly looking at the design and development of saras transport aircraft by the national aerospace laboratories and HAL.

He expressed confidence that HAL would fully meet the training requirement for fighters, helicopters and transport aircraft. The training command was involved in nearly one third of the Air Force’s flying and was looking to HAL for its development. Both IAF and the training command had a symbiotic development and it should be nurtured further.

Air Marshal masters handed over the commendation certificate to Mr Mohanty for the tremendous work carried out by the HAL overhaul division on Kiran fleet. This was the first time any division of HAL had received the commendation certificate from the chief of air staff. (UNI)

Benefit from economy rather than looking up for incentives: Jalan

MUMBAI, Nov 12: Reserve Bank of India (RBI) Governor Bimal Jalan today called upon the business community to take advantage of the vast opportunities thrown open by the country’s economy rather than looking up to the Government or the Central Bank for fiscal or monetary incentives.

Addressing members of the Assocham and Bombay Chamber of Commerce and Industry here, Mr Jalan urged the community to change their way of thinking on the Indian economy and act collectively with the authorities for the overall progress of the society through "fiscal disempowerment."

"Our economic excellence continues to be focused on individual achievement and performance, while the country needs to be benefited from the larger public", he said.

"Even in a going market economy, our public services such as transport, power and education still largely depend on public finances which are in a poor state. We need to change our way of thinking to get rid of dichotomy in public services", he said.

In this context, he emphasised the need for greater investment in infrastructure projects, higher level of corporate governance to create confidence among the public and the role of public investment in core economy.

Mr Jalan said he was comfortable with the current easy liquidity in the banking system and did not foresee any revision in the 5.5 per cent GDP growth estimate as announced by the central bank in its mid-term credit policy. He also ruled out any change in the repo and bank rate in the future.

He said the Indian economy is somewhat different from that of the US and other Western nations where gdp rates are revised based on the level of consumer demand. In India, the GDP is expected to grow with the development of the infrastructure, Mr Jalan said.

The recent federal reserve rate cut in the US is unlikely to have an impact on the Indian economy, he said adding "our interest rates are determined by our domestic policy objectives.".

However, Mr Jalan identified a few areas of concern in the country’s economy related to the frequent revision of fuel prices and low agricultural growth due to poor rainfall, which may impact industrial growth.

"However, over the recent past, our economy has gained the ability to withstand any external shock and domestic crises", he said and urged the businesses to find out collective solutions for problems related to microeconomic policy. (UNI)

Being ‘immigrant without money’ eases entrepreneurial success

NEW DELHI, Nov 12: Being an "immigrant without money" eases the path to entrepreneurial success, says Ms Anita Roddick, the founder of the Body Shop International.

"Being an immigrant, you know the sorrow of leaving your home and people. This pain nourishes the courage to fight all odds. You do not feel frightened easily and already know that a lot has to be done to make a mark," said the green activist born to Italian immigrant parents in the tiny English hamlet of Littlehampton.

"As a result, I was a natural outsider and drawn to other outsiders and rebels. I knew that one had to fight to be different, in business as well as life," Ms Roddick told UNI.

The only CEO who opposed the World Trade Organisation on the streets of Seattle, Ms Roddick, has joined hands with the New Delhi-based environmental NGO Navdanya to promote ecological sustainability and social responsibility in business. She is leading the faculty for a five-day course in ‘Business, ethics and sustainability’ at Navdanya’s Beeja Vidyapeeth in Dehra Dun.

Famous for creating a niche market sector for naturally inspired skin and hair care products, the body shop has more than 2,000 outlets across 51 countries with an annual turnover of more than 500 million dollars. In 1998, a survey in the financial times ranked the body shop the 27th most respected company in the world.

Ms Roddick said the other important ingredient for success is lack of money. "With money, everything is hunky-dory. You don’t value things. I started the first body shop in Brighton in 1976, picking the distinctive dark green colour — by which the firm has become known all over the world — because it was the only one that would cover its damp, mouldy walls. "It was all about lack of resources. Absolutely unheard of in the cosmetics industry, i found the cheapest little urine bottles for my products. I could only afford 700 of them, so I asked everyone to bring them back for refilling.

"We re-used and refilled everything we could. I realised the importance of minimising waste to protect environment against degradation. Frugality led me to become green as well," said the green activist cum businesswoman.

The body shop also launched human rights award in 2000. It is outstanding in being the only award that highlights and celebrates the outstanding achievements of grass roots organisations working in the emerging areas of social, cultural and economic rights.

Valuing work ethics is essential to survive and grow. "You can not keep on taking from the environment without giving anything back. A company based on principles of fairness and equity is bound to be more successful... To do otherwise is to be not merely an ostrich but criminally irresponsible," she said.

However, she is quick to add: "That’s not all. Having a loving and supporting mother teachers who do not quash and a family that extends help whenever required are also needed.

"The family remains when business partners walk out," added the brain behind the hair and skin care retail shop that has more than 2,000 outlets across 51 countries. (UNI)

Govt may bleed ONGC for Rs 6,000 cr special dividend

NEW DELHI, Nov 12: Poor growth in tax collection and shortfall in disinvestment proceeds is likely to force the Government to seek special dividend of upto Rs 6,000 crore from cash-surplus Oil and Natural Gas Corporation (ONGC).

The state-run exploration firm, which paid a record Rs 1697 crore dividend to Government for 2001-02, is likely to be asked to pay upto Rs 42 per share special dividend this month, informed sources said.

At Rs 42 per share, the Government will net over Rs 5000 crore while the total payout by ongc to all shareholders, including state-run indian oil and gail who hold 9.81 and 4.8 per cent equity each, would be close to Rs 6000 crore.

For ONGC, which has committed most of the Rs 46,500 crore of investment during the Xth five year plan period (2002-07), this would be a bad news at it would have to encash some of its term deposits for the payout.

Sources said ONGC, which posted a net profit of Rs 6200 crore in first half of current fiscal, has just about Rs 6000 crore in cash reserves, half Ying in the next two months for acquiring 25 per cent stake in a Sudan oil field.

The corporation has total reserves and surplus of Rs 28296.24 crore

When contacted, ONGC chairman and managing director Subir Raha said he hadn’t received any communique from Government for special dividend payout. (PTI)

Govt may bleed ONGC for Rs 6,000 cr special dividend

NEW DELHI, Nov 12: Poor growth in tax collection and shortfall in disinvestment proceeds is likely to force the Government to seek special dividend of upto Rs 6,000 crore from cash-surplus Oil and Natural Gas Corporation (ONGC).

The state-run exploration firm, which paid a record Rs 1697 crore dividend to Government for 2001-02, is likely to be asked to pay upto Rs 42 per share special dividend this month, informed sources said.

At Rs 42 per share, the Government will net over Rs 5000 crore while the total payout by ongc to all shareholders, including state-run indian oil and gail who hold 9.81 and 4.8 per cent equity each, would be close to Rs 6000 crore.

For ONGC, which has committed most of the Rs 46,500 crore of investment during the Xth five year plan period (2002-07), this would be a bad news at it would have to encash some of its term deposits for the payout.

Sources said ONGC, which posted a net profit of Rs 6200 crore in first half of current fiscal, has just about Rs 6000 crore in cash reserves, half Ying in the next two months for acquiring 25 per cent stake in a Sudan oil field.

The corporation has total reserves and surplus of Rs 28296.24 crore

When contacted, ONGC chairman and managing director Subir Raha said he hadn’t received any communique from Government for special dividend payout. (PTI)

Govt decides to set up 17 petrol outlets

CHANDIGARH, Nov 12: The Haryana Government has decided to set up 17 petrol outlets through the municipalities and improvement trusts in the State in order to generate additional revenue for them and also to create alternate source of job opportunities for the people of the State.

While stating this here today, a spokesman for the urban development department said the sites selected for setting up the petrol outlets include one each at Karnal, Rewari, Sonepat, Panipat, Bhiwani, Mahendragarh, Ambala, Kurukshetra, Fatehabad, Sirsa, two each at Jhajjar and Gurgaon and three at Yamunanagar. While the details for setting up petrol outlets at eight sites had been finalised, the details for the other outlets would be finalised shortly, he added.

He said the sites at Karnal, Rewari, Yamunanagar and Sonepat measuring 2000 sq yards, 1100 sq yards, 1000 sq yards and 1400 sq yards respectively would be leased out to Indian Oil Corporation (IOC) on payment of lease rental by the latter. The operation and maintenance of these sites would be looked after by IOC.

He said in case of Jagadhari land measuring 222 sq yards would beutilised for setting up a retail outlet with two petrol pump units. An investment of Rs 50 lakh to rs 60 lakh would be made by IOC for development of the land and Municipal Council Jagadhari would avail the commission of 63 paise per litre of petrol and 38 paise per litre of diesel sold from this retail outlet. Similarly, another retail outlet at Yamunanagar and Bahadurgarh would be set up on the same conditions.

The site of the petrol outlet decided to be set up at Jhajjar was located at the Shahidi Park for which additional land was proposed to be acquired by the municipal council. (UNI)

RSS chief for Swadehi model of development

GUNTUR, ANDHRA PRADESH, Nov 12: RSS Sarsanghchalak K S Sudarshan has called for adopting a Swadeshi model of development based on Dharma-centered integral approach for the country to prosper.

Addressing a rally here last night, organised as part of the three-day RSS conclave, he said the Western development model was being questioned in the West itself.

"America to which our policy makers look at, has borrowed to the tune of Rs 2,50,000 crore from the world and Americans have already spent their next two years’ income, thanks to the credit card culture", he remarked.

Hailing the Vajpayee Government for announcing that five per cent ethanol would be mixed with petrol from January one, he said ethanol and bio-diesel should be promoted in a big way. "If we raise non-edible oil plants like neem in at least three lakh hectare of the seven lakh hectare barren land, we can do away with import of crude oil, saving precious foreign exchange. There will not be any need to go for mobilising resources by disinvesting profit-making industries as we are doing now", he pointed out.

He said the multi-dimensional utility of cow dung and cow urine had the potential for revolutionising rural economy, besides the discovery of medicines for various diseases.

Alleging that the chemical fertiliser manufacturers lobby was preventing use of bio-fertilisers in a big way, he advised farmers to shun costly chemical fertilizers and pesticides which, while ruining the soil and making them debt-ridden, forced them to commit suicide as in Andhra Pradesh.

The decentralised village-centric development, characterised by consumption of less capital and energy while being eco-friendly and labour-intensive, was the need of the hour, he maintained. (UNI)

Are distortions in tea auctions a major cause of price fall?

CHENNAI, Nov 12: Inherent imperfections and poor regulations in the Indian tea primary market are cited as the real reasons for the plight of the plantation industry which is reeling under lower price realisations.

Industry circles point out that while the price of tea at the retail level has been consistently growing, reflecting an increase in demand, prices at tea auctions (the primary market), had been falling for the last five years.

In particular,the price of south Indian tea in August this year was Rs 38 per kg against an average of Rs 70 in the year 2000.

Certain rules governing the "division of lots" and "proxy bidding" in auctions are stated to be the cause for this demand-supply mismatch and price fluctuations.

Meanwhile, the price for tea in two other major producing markets of Sri Lanka and Kenya have oscillated within a 10 per cent band, indicating that there was no mismatch.

According to plantation industry figures, the total availability of tea in India for domestic consumption during January-August this year was 373 million kg, which was 37 million kg lower than in same period last year.

"Despite this nearly 10 per cent reduction in supply, the price in August this year was Rs 9.60 per kg lower and the Jan-Aug average, 17 per cent lower", industry sources point out. For South India, the figures are 7.06 per cent and 13 per cent lower respectively.

A F Ferguson, which was engaged by the Centre to study the Indian tea market in May last year, agrees with the plantation industry’s analysis of the primary market and categorically states that some of the rules governing tea auctions in india go against the basic principles of auctions, like competitive bidding.

In fact,the 40-page report, submitted recently, proves that as per existing rules, it is possible for a buyer to buy his entire requirement without even placing a single bid. The same buyer can also buy his entire annual quantity at the auctions without being physically present even on a single occasion.

"The divisibility issue should be viewed from the fundamental auction principle standpoint, namely that all buyers must put the winning bid in any auction system for them to buy tea. Divisibility of any kind contradicts this basic auction principle, since it permits some buyers to buy tea without bidding", says the report.

The report points out that the divisibility rule, as practiced in Indian tea acutions, effectively means that significant quantities of tea are sold through the ‘auction" system to buyers who have not put the winning bid for the tea.

"Particularly in the Indian context, divisibility weakens the fundamental spirit of the auction system and reduces the producers faith in it, since divisibility is essentially the need of the buyer. But as per the curthe price", says the report. (PTI)

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