Indians should control privatised airports:
Parliamentary panel

NEW DELHI, Nov 24: The ownership of four metro airports, which are to be privatised through the joint venture route, should remain in the control of Indian nationals and foreign equity participation should not be allowed to exceed 49 per cent, a Parliamentary panel has recommended.

The Parliamentary Standing Committee on Transport, Tourism and Culture also recommended that a regulatory mechanism to fix the parameters for investment made on airports be set up before the Airports Authority of India (amendment) Bill was passed by both Houses.

The committee, whose 61st report on the bill was tabled in Parliament last week, suggested that the money earned through airport privatisation should be spent only on undertaking developmental activities at other airports and not for general administrative purposes.

"The airports should remain in the control of Indian nationals, thereby protecting safety, security and sovereignty of the country," the report said, adding that the panel, therefore, recommends that foreign equity participation "should, under no circumstances, be allowed to exceed the limit of 49 per cent".

Expressing concern over the absence of a regulatory mechanism in the bill for regulation of fees and levies of aeronautical charges by the private sector, the committee felt that the bill should contain a mechanism about "a regulatory body for fixing and checking the parameters defined for the investments made and improvement in the performance of the airports".

Appreciating the Civil Aviation Ministry’s proposal to create an airport economic regulatory authority "to provide an appropriate regulatory regime for all airports", it said this body "must be in place before the bill is passed by Parliament and a suitable clause regarding regulation of tariff etc by the said authority should be incorporated in it".

Stating that the developmental activities at airports had been halted by the ministry pending the privatisation process, the panel said the projects, which have already been sanctioned by the ministry, should be allowed to continue.

Recommending the inclusion of provisions in the bill to protect the interest of employees, it also suggested that "a more transparent interaction" should be held with employees’ representatives as the privatisation process "cannot succeed" without workers’ participation. (PTI)

IIB creates successful model of benchmarking
individuals in banks

MUMBAI, Nov 24: In the light of the virtual stoppage of fresh recruitment in the banking sector, the Indian Institute of Bankers (IIB) has evolved a successful model of benchmarking individuals in the banking and financial services at a globally accepted level through vocational training programme.

The programme, designed and developed by an internal body of IIB called Banking Standards Development Board (BSDB), has successfully completed a pilot project in 30 selected branches of commercial banks in Mumbai and was now working on developing a model for wider acceptance in the domestic financial sector.

"The vocational standards, developed mostly on a British model, have been benchmarked in two areas of deposit services and personal lending," IIB Chief Executive Officer R H Sarma told UNI.

He said that such specialised training programmes were a part of IIB’s new initiatives in empowering the existing manpower of the domestic commercial banks in areas like Information Technology (IT), new international accounting norms and professional advisory services on financial products.

All these programme would be based on indepth research activities being undertaken by the IIB recently, he said.

"IIB has decided to charter hitherto un-chartered horizons of amending its objectives, mission and vision statements," he said and added that the institute recently selected four candidates from academia to carry out research work on wto and its implications on the industry and WTO and its implications on financial services.

The study was expected to be completed in the next three to four months, he said. IIB, which is celebrating its platinum jubilee year this year, has decided to extend its educational and training programme to non-bankers who were working in different sectors of financial services and also to graduates who aspire to pursue a career in the banking and financial sector.

"Banks have stopped employing people for general categories...But there may be a greater need of experts from legal and it background for the industry," said IIB president V Leeladhar.

Explaining the new strategic focus of IIB in the light of rapid changes in the financial sector following globalisation, Mr Leeladhar said they intend to position a professional to embark upon the emerging challenges in the financial sector with updated knowledges and best practices.

Even a chartered accountant in bank was now required to be trained in it-based auditing and reporting systems, he said.

In fact, IIB had received a proposal from World Bank institutions to set up a CEOs’ forum in the banking industry where global managers could participate to exchanging views and ideas and share their experiences, he said adding that the first meeting of CEOs is likely to be held in May-June next year.

As a part of globalisation of services, IIB has been approached by the Sri Lankan authority to conduct a programme on ‘prevention of bank frauds and financial crimes" for their bankers, he said.

A similar programme was successfully conducted for Tanzanian bankers in Dar-e-Salaam recently, he informed.

As a part of platimum jubilee celebration, IIB was organising an international banking summit at New Delhi beginning from December 1 to 5. The summit, to be inaugurated by Finance Minister Jaswant Singh, would be attended by 150 foreign delegates from 30 countries. (UNI)

Country’s first ever foodgrain policy on the anvil

NEW DELHI, Nov 24: The Central Government is examining threadbare an expert committee report to formulate country’s first ever comprehensive foodgrain policy.

The report of the four-member high-level committee (HLC) on long-term grain policy, headed by Prof Abhijit Sen, was under serious consideration of the Government. He had submitted the report on July 31, 2002 to the Government, which contained far-reaching recommendations with regard to the policy in the short-and long-run.

The committee had covered entire gamut of socio-economic aspects and gave its recommendations on foodgrains-based welfare schemes, Public Distribution System (PDS), Minimum Support Prices (MSP) and procurement policy, policy on open market sales, exports and imports, role of private trade and Food Corporation of India (FCI).

Some of the major long-term recommendations of the committee included a massive foodgrains employment programme, system of universal PDS with uniform central issue prices for rice and wheat for all consumers in all parts of the country, expansion of existing antodaya scheme, easing of private trade barriers. The short-term recommendations included lowering of the MSP to average C2 cost (all costs including the imputed costs of family labour, owned capital and rental on land ) and steps to give statutory status to MSP.

Lowering of the C2 cost has been recommended along with an estimated Rs 3,915 crore package to be given to State Governments for compensating cultivators. According to Food Ministry sources, the new grain policy would have some innovative features, which would serve the farmers community in the times to come.

With regard to the welfare schemes, the committee, besides foodgrain employment programme and expansion of Antodaya scheme to cover the entire destitute population, has also recommended central support for moving to a cooked mid day meals for all school-going children and strengthening programmes for women and children.

It also recommended that an additional subsidy meant for poor consumers or persons in relatively backward regions should be given in cash to States. Other recommendations to streamline the PDS include the setting up of an independent watchdog body, relaxation of restrictions on eligibility to be a licensed fair price shop dealer, effective implementation of the PDS (control) order, 2001 and greater responsibilities to be given to Panchayati Raj institutions.

Besides recommending statutory status to PSP, the committee has also stressed the need of commission for agriculture costs and prices (CACP), being made empowered statutory body.

Another major recommendation of the committee is that all compulsory levy order on rice millers under the essential commodities act should be removed with immediate effect and be replaced by orders requiring mills to custom mill the paddy procured under MSP and give delivery of the resultant rice to the central pool.

The committee has recommended that the Central Government should explore expeditiously with the insurance sector the commercial viability of insurance against shortfalls not only of yield but also of prices from their past averages computed on an area basis. With regard to open market sales, the committee has recommended that the prices should be based on the corresponding central issue prices plus the full cost of transport and storage as well as market conjitions.

It has recommended that the exports and imports of foodgrains should be based on the system of variable tariffs and export should be entirely on private account.

The Sen Committee was all praise for FCI, commenting in its report that it has performed its role reasonably well and should continue to do so. It, however, has recommended that FCI should move into areas where reports of distress sale continue to be received and in such areas the fci should open procurement centres. It has further recommended that FCI should change the way it does business to enable fast commercial oriented decision-making.

It has also suggested that the FCI’s role should be confined to major cereals for the pds like rice and wheat and price support operations should be handled by State agencies. The other recommendations for short run include shifting of the FCI’s focus to East and Central India and removal of existing bottlenecks in the decentralised procurement system.

The committee has endorsed an immediate shift to a unified PDS, which in its view would bring back many of the poor and moderately poor in the fold of the system who have been excluded from Below Poverty Line (BPL) category.

It has also suggested doubling the allocation under present sampoorna gramin rozgar yojna.

The sources said though the final draft of the food-grain policy was yet to be made but it was not likely to take much time. The efforts were on to formulate and implement the policy by the next financial year, they said. (UNI)

Rupee to rule weak on month-end dollar demand

MUMBAI, Nov 24: The rupee is expected to open firm on Monday on bunched-up weekend dollar inflows but may slip later during the week on month-end dollar demand, forex dealers said.

Forward dollar premium may move up further if the Central Bank continued its intervention in the forward dollar market, they said.

During the week-ended November 22, the domestic currency opened on a firm note at 48.18/19, but showed a slippery trend initially during the week as state-run banks, acting on behalf of the Reserve Bank of India (RBI), absorbed dollar inflows.

The rupee touched the week’s low of 48.25 briefly on Thursday morning after banks bought dollar heavily to take advantage of the weekend swap differentials, but ended that day at a 11-month high of 48.1850 on fresh export dollar sales.

The rupee closed the week on a steady note at 48.19/20, unchanged from its previous week’s close.

The forward dollar market, which witnessed persistent receivings initially during the week, later saw some paying pressure as few state-run banks, reportedly acting on behalf of the RBI, bought forward dollars, dealers said.

According to forex dealers, the apex bank which was earlier intervening in the spot market to restrict the rupee’s appreciation, started buying forward dollars towards the latter part of the week to check the falls in premia.

The benchmark sixth month annualised premiums, which dipped to a low of 3.62 per cent on wednesday, later moved up to close at 3.81 per cent, still lower than 4.03 per cent of its previous week’s finish. In cross currency trades, the rupee showed a mixed trend as it appreciated by 68 paise against the yen to 39.27 from 39.95 and five paise against the euro to 48.33 (38.38) while it ended 18 paise weaker against the pound sterling at 76.26 (76.08).

According to reports from overseas forex markets, the dollar rose to clinch a second straight week of gains against the euro and yen on improving US economic data and firmer us USock markets.

The greenback rose to a 2-1/2-week high against the euro at USd 0.9975 after traders reversed bets that the us currency would fall.

Recent economic data, including a better-than-expected mid-atlantic manufacturing report and weekly US jobless claims, contributed to a firmer dollar.

The greenback also made a hefty advance against the swiss franc, climbing to a three-week high of 1.4784 francs before backing off to 1.4756 francs.

Growing pessimism over Japan’s economic outlook, given a sovereign yen credit rating downgrade on Thursday and a new economic stimulus package, helped lead the dollar to end at a three-week high against the yen at 122.83. (UNI)

Call rate to stay stable, Govt bonds prices
seen range-bound

MUMBAI, Nov 24: The call rate is expected to rule easy below the repo rate in the week amid ample liquidity and relatively lower demand for funds in the second week of the reporting fortnight.

Government securities may stay range-bound despite abundant liquidity as players would refrain from taking further positions as the bond prices were at higher levels.

The market may also wait for any further open market operation (OMO) auction announcement by the RBI, dealers said.

During the week ended November 22, the call rate ruled easy below the repo rate on abundant liquidity despite the RBI mopping up Rs 11,000 crore through two OMO sales.

The call rate opened the week at 5.40-5.50 per cent remained stuck at the sub-repo level between 5.00-5.50 per cent throughout the week on sufficient supplies by cash-flooded state-run banks.

The overnight interest rate closed the week at 5.30-50 per cent.

The comfortable liquidity was evident from huge subscriptions of a total Rs 60,770 crore (daily average of Rs 15, 192 cr) to the RBI repos in the four trading sessions during the week, despite an outflow of Rs 11,000 crore on OMO sales. The Central Bank accepted total Rs 55,517 (daily average of Rs 13,879 crore). Money market dealers said the banking system was awash with liquidity after the Cash Reserve Ratio (CRR) cut became effective from the beginning of the reporting cycles.

Besides, the indirect intervention by the RBI in the forex market, mopping up excess dollar inflows in order to check the rupee’s appreciation for better export competitiveness, also generated cash in the system, they said.

Further, the demand for funds from foreign banks remained relatively lower after the RBI allowed Indian banks having branches abroad to reciprocate their rupee resources with foreign banks in India in exchange of foreign currency for transaction in the call money market for one year, dealers said.

The week also witnessed two OMO sales by the RBI for an aggregate amount of Rs 11,000 crore. The RBI sold the 7.49 per cent, 15-year tenure Government securities on Wednesday for Rs 5,000 crore, by fixing the cut-off price at Rs 106.52 while it raised another Rs 6,000 crore in the next day by offering the 9.40 per cent, 10-year paper at the cut-off price of Rs 120.20 (6.57 percentage basis).

Both these auctions received aggressive biddings on the back of loose in the liquidity, dealers said.

The secondary market for Government securities witnessed active buying interest during the week as the liquidity-driven bond rally was further boosted after RBI set a higher than expected cut-off price in the 9.40 per cent paper auction.

Moreover, absence of any further omo auction announcement also helped bonds prices to move northwards, dealers said.

Bonds, across the board gained by 100-150 paise during the week.

The benchmark 7.40 per cent 10-year bond touched a record low of 6.4209 per cent on friday intra-day deals before profit booking later lifted it to close the week at 6.4562 per cent.

The 11.50, 2011 and the 11.03 per cent 2012 bonds ended the week up by 120 paise and 99 paise at Rs 133.60 and Rs 131.79 respectively as against Rs 132.40 and Rs 130.80 of the previous week’s close.

The 7.40 per cent, 2012 and 7.46 per cent, 2017 bonds also shot up by 125 paise and 144 paise to Rs 106.70 and Rs 106.90 as compared to Rs 105.45 and Rs 105.46 of their previous week’s close. (UNI)

IT exports to US up by 37 percent

NEW DELHI, Nov 24: Exports of software and services to North America and Canada grew by 37.27 per cent in 2001-02 over the previous year.

According to the Electronics and Computer Software Export Promotion Council (ESC), the total computer software/services to North America has gone up by two percentage points, signalling that the US continues to be the major export destination for India despite the perceived slowdown of the US economy.

Executive Director, ESC, D K Sareen, said of the total computer software/services export of Rs 36,500 crore (7,652 million dollars) in 2001-02, the share of North America is estimated to be Rs 23,429 crore (4,912 million dollars) compared to Rs 17,067 crore (3,710 million dollars) during the previous year.

In value terms, growth has been higher by 37.27 per cent (32.38 per cent in dollar terms) over the previous year.

"Though there is a slowdown in the Silicon Valley, there are promises in other states particularly in the East Coast and Mid-West States. It is, therefore, necessary to have a specialised approach towards each of the 49 States in the US rather than concentrating only on the Silicon Valley," he said.

Mr Sareen said that Europe is the second largest destination with an export turnover of Rs 8,555 crore (1,794 million dollars), accounting for 22 per cent growth recorded in the previous year. In value terms, exports to Europe has gone up by 40 per cent (35 per cent in dollar terms).

The third important destination in exports was the far East region including Japan and South Korea. Exports during 2001-02 was Rs 1,518 crore (318 million dollars), against Rs 907 crore (197 million dollars) in 2000-01. There was an increase of over one percentage point in the share of software and services export to this region. In value terms, the export to this region has gone up by 67 per cent (61 per cent in dollar terms) compared to the previous year.

Exports to Latin America also went up Rs 47 crore (10 million dollars) in 2001-02 from Rs 36 crore (8 million dollars) in the previous year. (UNI)

World bank to tie MUTP loan disbursal to
rehabilitation work

MUMBAI, Nov 24: The World Bank (WB), the financing agency to the Maharashtra Urban Transport Project (MUTP), wants to ensure that the State Government completes the rehabilitation and resettlement (R R) work before releasing any tranche of the Rs 2,602 crore loan amount for the project, according to a senior WB official.

The official told UNI here that the tranches would be released as and when the work on the project progresses.

The WB loan has been given on a nine per cent interest rate for 20 years with a five-year moratorium on the loan, he said.

Sources said that in a meeting with the Maharashtra Government officials on November 21 and November 22 to discuss the technical issues, the WB officials had also raised the issue of a possible public backlash against the imposition of the surcharge on rail and road tariffs to recover the cost of the Rs 4,526 crore project.

The WB officials also discussed the issue of overcoming a possible mass protest against the displacement of the people, they informed.

The senior WB official said that the bank would closely monitor the project and emphasised that the WB did not want the MUTP to go the Dahbol power project-way- which was already bogged down by controversies.

He said the bank had also taken note of the recent protest by farmers which was organised by Shiv Sena and the peasant and workers’ party (PWP) against the proposed hike in electricity tariffs.

The Mumbai Railway Vikas Corporation (MRVC) Managing Director Mr A K Varma had already announced that a surcharge of 10 per cent would be imposed to recover the cost incurred by MUTP.

However, the best is yet to decide on a possible tariff hike. (UNI)

IFFCO phulpur unit bags FAI award

ALLAHABAD, Nov 23: The Indian Farmers Fertiliser Cooperative Ltd (IFFCO), Phulpur unit, has been selected for the prestigious Fertiliser Association of India (FAI) award for the best overall performance for nitrogen ammonia and urea plants for 2001-02.

The award will be presented at the FAI annual seminar to be held in New Delhi on December 16 next.

The Phulpur unit had also received FAI’s production performance award in 1994-95.

This unit is the world’s largest fertiliser complex based on naptha feed stock and annually produces more than 14 lakh tonnes of urea. (UNI)

Rabo India launches new division to fund water MGMT projects

MUMBAI, Nov 23: The Indian subsidiary of the Netherlands’ Rabobank has launched water division within its infrastructure operations to provide financial assistance to water resource management and related projects.

Launching the division here yesterday, Mr Rana Kapoor, Rabo India’s Managing Director said water resource management has become important in India and the company plans to take up a large number of projects by using the techniques adopted by Rabobank international in the Netherlands.

He said the company has formed a dedicated team for advising clients in developing water projects in India and would draw upon its international experience to provide comprehensive corporate and investment banking services.

"One of the key objectives of the water division would be to facilitate participation of Dutch firms in India’s water sector."

Stating that Rabo India will develop projects for sustainable utilisation of water resources, Mr Kapoor said the company would be involved in all its sub-sectors, including drinking water for urban and rural areas, water for industries, waste water treatment hydro-electric power generation and maritime transport.

Mr Kapoor announced the launch of the division in the presence of two Dutch ministers, Mr Joop Wijn, Minister of Foreign Trade and Mrs Agnes Van Ardenne, Minister of Development Cooperation. (UNI)

Supply chain management route to competitive markets

NEW DELHI, Nov 23: Companies can substantially reduce the cost of production with the help of a proper supply chain management.

"The ultimate core competency is to build a sound supply chain. The best practices are to forge partnerships with suppliers and have world class supply chain management systems," said Lt Gen D V Kalra, a senior faculty member of Institute of Supply Chain Management, while making the presentation at the seminar on supply chain management in automotive industry, organisd by PHDCCI here today.

By the year 2003, 60 per cent of supply chain management functionality would be provided outside the enterprises, he added.

Lt Gen Kalra said if a company did not design its supply chain properly, the ability of a company to put together its finest of partnership shall be put to test.

By working together across the supply chain the companies were able to pool talents and resources, yielding substantial gains in cost, quality, flexibility, system responsiveness and overall performance.

Mr. Anil K Virmani, Director, Institute of Supply Chain Management, said that supply chain was important because people needed to keep pace and cope up with the rapid technological changes taking place.

Healthcare organisations were able to reduce the supply costs by 2 to 6 per cent, shorten requisition to fulfillment cycles by 70-80 per cent, lower administrative costs by 73 per cent and reduce inventory costs by an average of 25 to 50 per cent by adopting the concepts of supply chain.

Dr. B P Dhaka, Secretary General, PHDCCI in his welcome address, stated that the major components of manufacturing cost were material, labour and the overheads. The cost of material cannot be reduced without compromising on quality the labour cost can be contained by outsourcing some of the manufacturing activity and components.

Similarly, it was the overheads cost where the industry can gain an edge by looking at various heads of expenses. "In this context, supply chain management has the most crucial role to play," he said.

Prof Vivek Kumar, Fore School of Management, said that the complex relationships between suppliers and customers, extending from the immediate channel partners to the extended supply chain links, provide umpteen opportunities to the companies for identifying links which can be profitably outsourced. Each link in the supply chain provides the organisation with an opportunity to evaluate the possibility of being outsourced subject to it not being technologically or economically unfeasible. (UNI)

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