LUCKNOW, Nov 30:Uttar Pradesh has formulated an ambitious plan to promote information technology industry in the state..more

First phase of Dabhoi power project to start
operation next month

NEW DELHI, Nov 30: The first phase of the 2450-mw Dabhol project in Maharashtra would start operation next month, State Chief Minister Manohar Joshi said today.

Addressing India Economic Summit ’98, organised by the Confederation of Indian Industry and World Economic Forum, Mr Joshi said enron would generate around 700 mw of power in the first phase.

Besides, power purchase agreement has already been signed with ISPAT India and Reliance Groups’ for their projects in Bhadrawati and Patalganga respectively.

Enron, Reliance and ISPAT India would generate around 4,000 mw of power, he said.

The state at present has 12,000 mw of installed capacity, the State Chief Minister said and added that 6,000 mw would be added in the next five years.

When asked about the repercussion of the State Government’s decision to give free power to farmers on the already high power tariff in the state, Mr Joshi said it is a different issue altogether. "First let us generate adequate power, then we will tackle the issue of power tariff too," he said and added that the needy has to be given subsidies.

Besides, the Government is also committed to provide other infrastructure facilities to industrialists. In this regard 55 flyovers are being constructed in the state.

As many as 28 road projects have been given to the private sector and the state has 20 per cent of total telecom lines in the country, he said.

Refuting allegations in some quarters that his Government could not maintain Maharashtra’s status the premier industrial state in the country, Mr Joshi said the state has attracted the largest number of projects in the recent years. As many as 465 projects are attracted by Maharashtra during 1997-98 ended September 30 compared to 296 by Tamil Nadu, 275 by Gujarat and 273 by Karnataka.

Recently former US Ambassador said that more than 67 per cent of that country’s investment into India is captured by Maharashtra, Mr Joshi said.

The Maharashtra Chief Minister assured the entrepreneurs that the state is safe for investment as the incidents of extortions are being strictly dealt with by his Government. There was no crime reported in the state last month, he said. (UNI)

IAL mulling cheaper version of UNO

NEW DELHI, Nov 30: India Auto Limited is mulling over the idea of rolling out a cheaper version of ‘UNO’ to precede the launch of ‘Palio’ in India to avoid the likelihood of both models competing each other.

"We have already placed the suggestion of introducing a cheaper version of UNO before Fiat S P A and it is being actively looked into. However, nothing has been finalised as yet," Mr Vinod L Doshi, Chairman of Premier Automobiles Limited (PAL), told here.

Pal controls 49 per cent stake in Ind Auto while the majority 51 per cent equity is in the hands of Fiat India Automobiles Limited, a wholly-owned subsidiary of Fiat S P A of Italy.

Both UNO and Palio, he said, are placed in the same two-box category. "We, at Pal, feel that if the UNO is not priced lower, we might end up having two models competing each other for space in the Indian market. And, it might end up with Palio killing UNO."

However, a firm decision on the matter is most likely to be taken once the final price tag for the ‘Palio’ is announced.

The company, Mr Doshi said, has mooted the proposal only recently. "Whatever substractions have to be done and which all features have to be deleted on the UNO are yet to be decided."

Meanwhile, Ind Auto has also introduced the power steering as a standard feature on the Uno diesel. In addition, the company has provided other goodies like a rear wiper and a Sony stereo.

These features have made the car dearer by around Rs 40,000.

Palio, which is part of fiat’s world car project, would hit the Indian roads in the second half of 1999 while the Siena, which would be first of the world cars, would be seen zipping down the city streets in January 1999.

Two versions of both the models would be produced in India. Besides, the car would sport both petrol and diesel hearts. This would be followed by the Palio weekend. Two other models are being introduced across the globe under the project — Strada pick-up and a van.

The Palio is likely to be priced at Rs 4.5 lakh in the Indian market.

Under the world car project, the company intends to indulge in a lot of cross border trading in cars and components once all the project sites are fully operational. It hopes to achieve trade flows of over three billion dollars per annum through this route.

Besides, it is looking at locally manufacturing engines and transmissions in India. The Fiat group is presently exploring the feasibility of locally producing the engines and transmissions under the world car project in India and would go ahead with the programme.

The Italian giant has already pledged one billion dollar investment in India through Fiat S P A and its subsidiaries. The expenditure would cover all the main areas of activities of the group. Of the one billion dollars, around 200 million dollars would be invested in the country by 1998-end. (UNI)

Indian woollen exports to Dubai touch $ 8 mn

DUBAI, Nov 30: Indian woollen textile exports to Dubai has trippled in the last six years to touch eight million dollars despite the hot climate of the region. An Indian wool expert Chaudhuri said.

Indian exports have had impressive success due to their balanced mix of price advantages, quality, brand assurance, durability and versatility, Dr Chaudhuri, the Delhi-based area Director for India and Middle East of International Wool Secretariat said.

The Secretariat, now renamed wool mark company, has chalked out an ambitious plan to support retailers in setting up ready-made garment units in Dubai, Chaudhuri said addressing a retailers’ meet.

These units could be most viable in Dubai considering the business environment, availability of industrial and warehousing infrastructure, well-developed ports and excellent links with the West and the CIS states, Chaduri aid.

He said all woollen markets are not climate-driven, as is shown by the fact that 30 per cent of the total woollen fabric production in India is consumed by Southern India, considered one of India’s warmest regions.

Arun Churiwal, Deputy Chairman, Indian Woollen Mills Federation said the Indian exports of woollen textiles and finished products in 1997-1998 totalled one billion dollars. (PTI)

Precious metals rise on revival of buying

NEW DELHI, Nov 30: Both the precious metals, silver and gold, recovered on the bullion market today on revival of buying by local parties and gained moderate ground.

Marketmen said upcountry markets were steady and trading in other Asian markets was thin.

They said trading was thin as traders were directionless following a long weekend holidays in United States.

Arrival and offtake was small and volume of business fair, they added.

Silver .999 (ready) was up by Rs.15 at Rs.7415 per kilo and weekly delivery by Rs.28 at Rs.7450 per kilo. Silver coins were unchanged at Rs.10,500/10,600 per 100 pieces.

Standard gold and ornaments recovered by Rs.5 each at Rs.4375 and Rs.4225 per ten gram respectively. Sovereign was quoted at previous level of Rs.3750 per piece of eight gram.

The following were today’s quotations: Silver .999 (ready) 7415 and delivery 7450. Silver coins buyer 10,500 and seller 10,600. Standard gold 4375, ornaments 4225 and sovereign 3750. (PTI)

Kumar appointed director of Ico Global Holdings

NEW DELHI, Nov 30: Mr Amitabh Kumar, acting chairman and managing director of VSNL, has been elected as a director on the Board of Ico Global Communications Holdings Ltd.

Decision was taken unanimously by the Board of directors of Ico Global Communications in its meeting held on November 23 at Mexico City, Mexico.

Ico Global Communications in a 3.7 billion dollar personal global mobile communications worldwide through its global constellation of 12 satellites in Medium Earth Orbits (MEOs).

Subscribers will be able to use dual mode satellite/cellular handsets for communications from any part of the world, when the system is launched. Mr Kumar has also been appointed as an additional director of operations on the Board of directors of Ico Global Communications (operations) Limited.

India, with its investment of 150 million dollars, is the second largest investor in Ico Global Communications Holdings Ltd. And is a founder member. (UNI)

Market index
Inflation falls sharply, vegetable prices come down

NEW DELHI, Nov 30: After touching a three-year high last week, annual rate of inflation fell sharply by 0.31 points to 8.54 per cent for the week ended November 14, as signs of easing of food prices emerged for the first time.

Annual inflation, based on the Wholesale Price Index (WPI), fell by 0.31 percentage points to 8.54 per cent (provisional) from 8.85 per cent (P) the week before. Compared to this the inflation was at 3.92 per cent an year ago.

The 8.85 per cent touched last week was the highest in 163 weeks. The previous highest was 9.01 per cent recorded in September 23, 1995.

For the first time, there has been signs of prices of vegetables and edibles oils, which witnessed unprecedented rise in the past four months, finally easing.

Prices of vegetables came down by 4.8 per cent, while that of edible oils fell by 2 per cent during the week.

The index for all commodities (base:1981-82=100) during the week declined by 0.1 per cent to 359.7 (P) from 360.2 (P) in the previous week.

However, inflation based on consumer price index for industrial workers (CPI-IW) is ruling much higher at 16.3 per cent in September compared to just 8.2 per cent for the month on WPI. Meanwhile, the rate of inflation based on the final index for the week ended September 19, the latest available, stood at 8.61 per cent against 8.55 per cent estimated provisionally.

The final index for all commodities for the week stood at 356.8 compared to the provisional figure of 356.6.

During the current week indices of primary articles and manufactured articles declined mainly on account of fall in prices of food articles and food products respectively.

However, index for the third major group fuel, power, light G lubricants rose on increase in electricity tariffs after remaining unchanged for 14 consecutive weeks.

In the reference week, prices of vegetables (5 per cent), soyabean (3 per cent), rape mustard oil (5 per cent) and gur (3 per cent) declined, while prices of eggs (5 per cent), barley and urad (3 per cent), jowar and gram (2 per cent each), groundnut seed and castor seed (3 per cent each) and solvent extracted groundnut oil (5 per cent) soared.

Index for primary articles declined by 0.2 per cent to 397.4 from 398.1 in the previous week.

Among primary articles, index for food articles declined by 0.5 per cent to 472.6 from 474.8 on account of cheaper vegetables (5 per cent) and masur and poultry chicken (2 per cent each).

However, prices of eggs (5 per cent), barley and urad (3 per cent each), jowar and gram (2 per cent each) and moong (1 per cent) increased during the week. (PTI)

International Apparel Mart coming up by 2001

NEW DELHI, Nov 30: The Apparel Export Promotion Council (AEPC) is setting up a Rs 50 crore International Mart-cum-exhibition complex in Gurgaon, about ten km from the International Airport here.

Spread over five acres, the Apparel International Mart will house 250 centrally air-conditioned and aesthetically-designed permanent showrooms for Indian garment exporters to display their collections.

"It will also have a state-of-the-art exhibition complex with absolutely latest systems and all facilities that a foreign visitor and exporter can dream of," said AEPC director Arvind Pradhan. "It will be a matter of pride for an exporter to have an address in the Mart."

He said the Mart will be an architectural marvel and one of its kind in the whole of Asia. The plans have been finalised and construction will begin next year. By the year 2001-end, it is expected to be ready.

The need to have an International Mart here stems from fast-changing international trade scenario. As decided by the World Trade Organisation (WTO) in the agreement on textile and clothing 1994, the quota restraints on import of garments by all quota countries will be phased out by the year 2004.

As a consequence, the global market will become highly competitive and only those exporting units will survive which can surpass international quality standards and match prices. "They should also be available on prominent trade Marts which are made for the convenience of importers and equipped with the latest information technology systems," Mr Pradhan said. (UNI)

UP formulates plan to promote IT industry

LUCKNOW, Nov 30: Uttar Pradesh has formulated an ambitious plan to promote information technology industry in the state.

The 10-year plan for the same would be announced soon, Minister for Electronics and National Integration Raja Mahendra Aridaman Singh said here today.

The plan envisages to generate business worth Rs 1,00,000 crore, he said while inaugurating a seminar organised by the Institution of Electronics and Telecommunication Engineers (IETE) here.

Giving details of the plan, the Minister said under the project ‘O’ level computer training would be imparted to about one crore citizens. The State Government is also considering setting up of an Indian Institute of Information Technology in Kanpur, he added.

Computer software would be exempted from trade tax and only two per cent tax, including all surcharges, would be imposed on computer hardware, the Minister said.

Information technology companies would not have to pay trade-tax or any other tax on hardware and other peripheral products purchased for their projects, Singh said.

It is also proposed to abolish the necessity of form-31 for this industry, he said.

The state targets to achieve 20 per cent computer literacy in a span of 20 years by increasing use of computers in the education sector, the Minister said.

The policy also proposed computerisation of all district offices in 10 years, Singh added. (PTI)

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