Surjit Singh Barnala

NEW DELHI, Dec 4: Centre will provide 50 per cent of the market intervention cost borne by the states for providing vegetables....more

Silver recover

NEW DELHI, Dec 4: Silver prices recovered on the bullion market on revival of buying by stockists and moved up to close with gains. . .more

UTI, LIC, GIC
invests Rs 945cr
in reliance shares

NEW DELHI, Dec 4: Unit Trust of India, the Life Insurance Corporation and the General Insurance Corporation invested around Rs 945 crore through private placement in the shares.....more

Export of spices grow

CHANDIGARH, Dec 4: Export of spices from the country grew by Rs 17.69 crore at Rs 106.82 crore during October this year as compared to the same month the previous year.

In dollar terms, exports rose by 0.62 million dollars at 25.27 dollars, officials of the Spice Board told today on the sidelienes of Agro-Tech’98, organised by the Confederation of Indian Industry here.

The officials said during April-October 1998-99, export of spices was estimated at 112,200 tonnes valued at Rs 875.01 crore as against 145,049 tonnes valued at Rs 829.62 crore recorded during the same period the previous year. They added that compared to last year, exports had registered an increase of five per cent in rupee terms while in dollar terms there was a decrease of nine per cent.

Export of pepper registered a growth during October 1997-98 as compared to the same period the previous year. The officials said 18,000 tonnes of pepper valued at Rs 349.58 crore were exported during April-October 1998-99 as compared to 23,701 tonnes valued at Rs 282.27 crore which were exported during the same period in the previous year.

Pepper continues to be the leader in spice exports earnings with a share of 40 per cent followed by spice oils and oleoresins (17 per cent) and chilli (8 per cent). Besides, exports of fenugreek and some other spices has increased both in terms of quantity and value during April-October 1998-99 as compared to April-October 1997-98, whereas the exports of papper, turmeric, cumin and spice oil and oleoresins were higher in value only, the officials said.

However, exports of both small and large cardamom, chilli, coriander, celery, fennels, other seeds, garlic and curry powder declined in both quality and value terms. Sources said that spice exports had declined due to recession and depreciation in currency in some of important spice importing countries in the far East Asia. (UNI)

FIs to decide on Escorts restructuring plan

CHANDIGARH, Dec 4: A final decision on Escorts Limited’s equity restructuring plan is likely to be taken at inter-institutional meeting to be held next week.

The nandas, promoters of Escorts, have pinned all hopes on the meeting, company sources told here on the sidelines of the ongoing Agrotech 1998.

"Though the FIs have not taken a final decision on the matter, they have also not said no as yet. It is still an open question. The final decision on the matter is expected to be taken at the meeting next week," the sources added.

Financial Institutions, led by Unit Trust of India, Life Insurance Corporation and General Insurance Corporation, have been opposing the company’s plan to halve its equity capital from Rs 72.76 crore to Rs 36.38 crore stating it to be against the interests of shareholders.

Though the institutions’ response has not been finalised as yet, the company is mulling at other options in case the scheme is rejected by the FIs, who together control 40 per cent stake in the company.

According to the sources, in case the plan is rejected by the institutions, the company will chalk out an alternate strategy or route at a board meeting to be held in January. "But, we are still very hopeful."

When asked if the company would be looking at any legal action in case of a rejection by the FIs, the sources said it has not been decided as yet.

The Rs 1,414 crore Escorts Limited had at its Annual General Meeting held on September four received the shareholders’ nod for halving the equity share capital and issuing Cumulative Redeemable Preference Shares (CRPS) even as a final consent from the Financial Institutions for the same was pending.

Though the resolution was passed, some shareholders had objected to the scheme terming it as "fraudulent" and against their interests.

Under its financial restructuring plan, Escorts Limited would be converting 50 per cent of its Rs 72.76 crore equity capital into 12 per cent Cumulative Redeemable Preference Shares (CRPS) of face value of Rs 90 each fully paid and redeemable at par.

After the conversion, the equity capital of the company would be Rs 36.38 crore.

"This is part of our efforts to return the gains coming out of the company’s restructuring, which was initiated four years ago, to the shareholders," company officials had announced.

As per the original plans, the scheme is to be implemented, after consultations and with the approval of the Financial Institutions, from April one, 1999.

The two crucial aspects with regard to the funding of the scheme — redemption and annual dividend payout — has been tackled and the entire payout of Rs 300 crore will be out of the inflow of funds of restructuring of the company and there would be no dependence on the operational cash flows at all.

However, the shareholding pattern of the company would remain unchanged even after the implementation of the scheme.

According to officials, for a shareholder with two equity shares, one equity share will be exchanged for one CRPS. Moreover, with a tenure of seven years, it is redeemable at par in three equal installments at the end of the fifth, sixth and seventh year from the date of allotment.

The company can also redeem the CRPS at any time of four years from the date of allotment under a call option. Besides, the CRPS would be listed and have a buy-back arrangement for the small investors upto a limit.

The entire payout would be out of the inflow of funds of restructuring of the company and there would be no dependence on the operational cash flows. The capital restructuring would be under section 100 and will be subject to the approval of the Delhi High Court. On allotment of CRPS, the shareholders may be liable to capital gains tax. "However, considering cost indexation, it is unlikely that there would be any liability to tax."

Escorts Limited is presently in the business of tractors, bi-wheelers, railway ancillaries and shock absorbers. It has recently entered into a strategic alliance with Carraro Spa of Italy for the manufacture of high quality transmissions and drivelines for use on agricultural tractors and construction equipment. It has invested almost Rs 100 crore to set up a manufacturing facility near Pune that is expected to go on stream in early 1999. (UNI)

Criminal conspiracy behind mustard oil adulteration: Minister

NEW DELHI, Dec 4: CBI probes have established a criminal conspiracy behind the mustard oil contamination that resulted in 67 deaths due to dropsy, Health Minister Dalit Ezhilmalai told Rajya Sabha today.

Replying to supplementaries during question hour, he said CBI had, however, reported it could not get any information regarding the role of multinationals or a political hand in this matter.

Assuring the members that he would keep them posted of any further development in this regard, the minister said so far 84 cases had been registered under the Prevention of Food Adulteration Act in Delhi alone.

Replying to questions from Amar Singh (SP) and K R Malkani (BJP), he said the Delhi Government had reported that none of its officials were guilty of negligence in the mustard oil crisis. (PTI)

3-fold strategy to revive sick NTC will be announced soon

NEW DELHI, Dec 4: A three-fold "result oriented" strategy to revive the 119 sick National Textile Corporation (NTC) mill will be announced soon, Textiles Minister Kashiram Rana told the Lok Sabha today.

Replying to Mr Dileep Sanghani during question hour, the minister said the estimated loss of these NTC mills for 1997-98 was Rs 646 crore. It was Rs 518 crore in 1995-96 and Rs 573 crore the following year.

The Government had made four attempts since the sixth five year plan to revive these NTC mills. And spent an accumulated amount of Rs 519 crore. But all these afforts had failed to produce the desired results, Mr Rana informed the house.

Members from both sides of the House expressed concern over the financial mess these mills were in and the hardships the workers were facing due to alleged non-payment of wages.

The minister explained that the 1992 turn around strategy had falled as the financial institutions refused advance money for the modernisation of these mills.

Under the 1995 strategy, a sum of Rs 2005 crore was to be mobilised through sale of surplus land belonging to the mills. Of this, maximum of Rs 1780 crore was to come from Maharashtra in general and Mumbai in particular. But as the State Government had put its foot down, that scheme too failed, he added.

Therefore, keeping the past experience in view, a new three-fold strategy was now under the Government’s consideration, he added.

Mr Rana refuted the allegation that workers were not getting paid. Their salaries had been cleared till October, he pointed out and added that 95,000 textile workers have opted for Voluntary Retirement Scheme (VRS). (UNI)

Centre to provide 50 pc subsidy for vegetables

NEW DELHI, Dec 4: Centre will provide 50 per cent of the market intervention cost borne by the states for providing vegetables to people at a subsidised rate, Minister of Food and Consumer Affair Surjit Singh Barnala told Rajya Sabha today.

If the respective State Governments want to subsidise any of the vegetables, the Central Government will bear 50 per cent of the expenditure, Barnala said in reply to a supplementary by CPI-M member A Vijay Raghavan during the question hour.

Barnala said the prices of onion had already started showing signs of decline, and added the Government had supplied 4,500 tonnes of the vegetable since July 20 to Delhi at a subsidised price.

The Governments of Andhra Pradesh, Tamil Nadu and Gujarat also supplied vegetables at a subsidised rates through their public distribution system, he said.

Barnala said the main reasons for the increase in prices of vegetables were the decline in production due to adverse climatic conditions and area under cultivation and damages caused to the crops by plant diseases.

The Government has accorded sanction to import 10,000 metric tonnes of onion through NAFED, out of which 687 mts have been imported at a cost of Rs 1.61 crore, he said. (PTI)

Silver recover

NEW DELHI, Dec 4: Silver prices recovered on the bullion market on revival of buying by stockists and moved up to close with gains.

Marketmen said though the overseas advices were weak, stockists buying reversed the trend.

Standard gold, on the other hand, pushed down further on lack of buying support.

Lower Mumbai advices and restricted arrival - offtake kept the trading sentiment weak which also reduced the volume of business.

Silver .999 (ready) recovered by Rs.175 at Rs.7175 per kilo and weekly delivery by Rs.25 at Rs.7275 per kilo. Silver coins were unchanged at Rs.10,500/10,600 per 100 pieces.

Standard gold and ornaments lost Rs.15 each at Rs.4325 and Rs.4175 per ten gram respectively. Sovereign held unchanged at Rs.3725 per piece of eight gram.

Following were today’s quotations: Silver .999 (ready) 7175 and delivery 7275. Silver coins buyer 10,500 and seller 10,600. Standard gold 4325, ornaments 4175 and sovereign 3725. (PTI)

UTI, LIC, GIC invests Rs 945cr in reliance shares

NEW DELHI, Dec 4: Unit Trust of India, the Life Insurance Corporation and the General Insurance Corporation invested around Rs 945 crore through private placement in the shares of Reliance Industries in 1994, Finance Minister Yashwant Sinha informed Lok Sabha today.

Replying to a question in the House, he said the shares had been purchased at a price of Rs 385 each. The rate of dividend received on these shares was 60 per cent in 1995-96, 65 per cent in 1996-97 and 35 per cent in 1997-98.

Replying to a supplementary by Subramaniam Swami, Sinha denied the Central Bureau of Investigation (CBI) had asked for permission to prosecute Reliance Industries following alleged irregularities in its transaction with UTI.

He, however, said CBI had submitted its report on the matter in 1996 which was referred back to the agency for further investigation.

The Minister said the particular transactions took place in 1994 and his Government had no intention to hide anything or save anyone involved.

But there has to be a finality about things before further action is taken, he added. (PTI)

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