 |
|
Excelsior Correspondent JAMMU, Dec 7: The 51st State Level Bankers' committee meeting..more Capacity utiliation NEW
DELHI, Dec 7: Hit
hard by the sluggish demand and slump in economy,
capacity utilisation of four wheelers has dropped.....more |
 |
Patents
Amendment Bill to be introduced next week: Bakht NEW DELHI, Dec 7: Government is likely to introduce a Bill in Parliament next week to amend the Patents Act ..........more FIPB awaiting members responses on $ 150 mn Rothmans proposal NEW
DELHI, Dec 7: The
fate of the 150 million dollar Rothmans proposal .....more |
 |
Capacity utiliation of 4 wheelers drops to 54 pc in 1997-98 NEW DELHI, Dec 7: Hit hard by the sluggish demand and slump in economy, capacity utilisation of four wheelers has dropped from 74 per cent 1995-96 to 54 per cent in 1997-98, according to Industry Minister Sikander Bakht. However, installed capacity during the period has gone up from 918,000 units to 1,296,000 units, Mr Bakht said in response to a question in the Rajya Sabha. Capacity utilisation of two and three wheelers has also fallen from 80 per cent in 1995-96 to 72 per cent in 1997-98. Installed capacity of two and three wheelers has also been on the rise during the period growing from 3,552,000 units to 4,592,000 units. The minister attributed the decline in capacity utilisation to sluggish demand, slump in economy as also the industry as a whole and international recessionary trend. Further, with liberalisation, several manufacturers have started building up excess capacities which also contributed to the under-utilisation of capacity. However, he stated that no official estimation has been made of the investment affected due to non-utilisation of installed capacity. (UNI) |
|
Nov draws blank in public and rights issues NEW DELHI, Dec 7: November marked the nadir of the primary capital market with not a single public or rights issue being launched during the month, says prime database. This is for the first time in last decade that a month has passed without even one issue hitting the market. Mr Prithvi Haldea of prime said the assembly elections were only a minor reason for this debacle. "The market has been suffering for long from several grave ills. These include the heavy losses in primary issues and lack of exemplary action against past offending issuers leading to loss of investors’ faith. Unrealistic entry barrier guidelines, compounded by a slowdown in the industrial activity, have only further worsened the situation." It is now for the seventeenth month in running that the primary market has witnessed an extremely low level of activity in terms of public issues, with only 45 such issues between July 1997 and November 1998. While November 1998 had no issue and October saw a single issue, the earlier monthly figures have all been very low. In the current fiscal, between April and November, only 19 public issues have hit the market. In terms of amount, almost the entire mobilisation has taken place through the four debt issues from ICICI (Rs 1771 crore) and one from IDBI (Rs 1342 crore). These together, at Rs 3113 crore, have constituted 90 per cent of the period’s total mobilisation of Rs 3445 crore. Additionally, banks have mobilised Rs 216 crore, though through equity. The financial institutions and banks, as such, have together raised Rs 3329 crore, constituting 97 per cent of the period’s total amount, significantly up from a meagre four per cent in 1994-95. Most disturbing, Mr Haldea stated, is the languishing equity mobilisation by the private manufacturing sector, with a raising of only Rs 111 crore through just eight public issues in the first eight months. This represents a major fall successively over the last three years, from a high of Rs 11005 crore in full 1994-95. Even most of this meagre amount of Rs 111 crore has not come from the investing public, as per prime. Poor sentiments and scepticism, compounded by consistent poor quality of issues which abound despite ‘stringent’ entry barriers, have seen the investors reject all of these eight offerings. Additionally, two NBFC issues, aggregating Rs 5 crore, which entered the market, were also only ‘technical’ issues. For the third year in a row, equity mobilisation on the whole, including by banks and NBFCS in addition to the manufacturing sector, has suffered, adversely affecting the industrial activity. Such public issues have raised only Rs 332 crore in the eight month period the amount in corresponding periods of 1996 and 1997 were Rs 2588 crore and Rs 734 crore respectively. The high point was full 1994-95 when Rs 13312 crore was raised through equity. The disappearance of Initial Public Offerings (IPOS) is now, of course, a cold affect. Such issues had already fallen from a high of 1350 in 1995-96 to 716 in 1996-97 to only 51 in 1997-98. These are now down to a meagre 11 in the first eight months of fiscal 1998-99. The balance period of 1998-99 may also be equally disappointing. These are hardly any signs of an early revival of the market. As of now, December will witness yet again bonds issues from ICICI and IDBI additionally two small equity offerings from Sonata software and Shri MM Softek are the only other issues. More raisings of debt are expected from ICICI, IDBI and IFCI in the remaining months. Worse, the disinvestment by PSUs in favour of small investors is still no on the horizon. Nor is any activity of any significance expected on the rights issue front. (UNI) |
|
Patents
Amendment Bill to be introduced NEW DELHI, Dec 7: Government is likely to introduce a Bill in Parliament next week to amend the Patents Act in order to provide Exclusive Marketing Rights (EMRs) to foreign agro-chemical and pharmaceuticals firms, Industry Ministry Sikander Bakht said today. We are to take the Bill to Parliament next week, Bakht told reporters on the sidelines of a seminar on patents here, when asked what efforts would be taken to provide emrs. Government was also sure of getting the Amendment Bill passed in Parliament. I am not optimistic but sure the Bill will be passed by Parliament, the minister said, adding Government had enough support to pass the amendment. The Union Cabinet had on November 23 decided to amend the 1970 patents in order to give EMRs to overseas pharmaceutical and agro-chemical firms and meet the April 19, 1999 deadline of the World Trade Organisation (WTO). The Patent Act is being amended to fulfill India’s assurance to provide legally-backed patent cover to foreign pharmaceutical and agro-chemical manufacturers to WTO’s Dispute Settlement Body (DSB) following a complaint lodged by the US and European Union. (PTI) |
|
FIPB awaiting members responses on $ 150 mn Rothmans proposal NEW DELHI, Dec 7: The fate of the 150 million dollar Rothmans proposal to set up a cigarette manufacturing unit in India is still uncertain with the Foreign Investment Promotion Board (FIPB) not having decided a firm date for hearing the proposal as the board members are yet to give their views on the proposal. The Industry Ministry has, in fact, now referred the proposal to the Revenue Department and a reply is still awaited. According to ministry officials, the proposal would be taken up as soon as the reply from the Revenue Department as well as from other ministries are made available. "As the FIPB Chairman, I am willing to take up the proposal as soon as possible but the other members of the board too have to come up with their responses. As that is awaited, the proposal is being delayed," Industry Secretary TR Prasad said today. On whether the proposal would be taken up during the Winter session of Parliament, Mr Prasad said, "it can be taken up if the other members give their responses." Though he refused to divulge details on why the proposal was referred to the Revenue Department, sources said the ministry wants a thorough examination of the forex outflow on account of various licencing arrangements and royalty payments by domestic cigarette companies. The Revenue Department is also expected to assess the possible revenue gains in case the foreign company undertakes the proposed stipulation of 75 per cent export obligation of its total products. The Commerce Ministry has already favoured the company’s proposal to set up a wholly-owned subsidiary in the country subject to the condition that Rothmans would export 75 per cent of its production in value added form. The Commerce Ministry had insisted that the company must export whole cigarettes manufactured by its Indian subsidiary. Rothmans has proposed that its brands would be outsourced from contract manufacturers. But with the ministry now insisting on the export obligation, Rothmans may be forced to change its strategy. It may be recalled that a decision on the Rothmans proposal was deferred for four weeks by the FIPB at the behest of the Commerce Ministry on September 5. But the proposal has not been taken up for hearing since then. Union Industry Minister Sikander Bakht has also rallied behind the controversial proposal stating that it will not meet the same fate as TATA Airline. Pledging total support to the Rothmans proposal, Mr Bakht had told in an interview that all efforts are being made to sort out the issue. "I am very supportive of the proposal. The problems and delays are because of some sentimental constraints from some quarters. It is not from my end. I have already given my decision to allow 100 per cent FDI in the tobacco sector and am going ahead with it," the minister had said. "It (the Rothmans proposal) can not meet the TATA Airline fate. It can’t and it should not because it belongs to my ministry while TATA Airline was the business of the Civil Aviation Ministry." He lamented the fact that the proposal to allow 100 per cent FDI in cigarettes has become a subject of sentimentality. This statement by Mr Bakht, in fact, comes in the wake of severe criticism from health organisations and former Health Minister Renuka Choudhary to the Government’s decision on allowing 100 per cent FDI into tobacco sector. The company had, in its proposal with the board, stated that it would start with marketing Rothmans cigarettes under license with an Indian partner and later get into manufacturing them here. It had proposed to export tobacco and cigarettes worth ten million dollars. The Government is not satisfied with the mere commitment of ten million dollars and would instead want the company to be more specific regarding the export and tobacco procurement obligations. The board is hence seeking clarification on the total break-up of export commitment with regard to the three items — raw tobacco, processed tobacco and cigarettes. The Rothmans application envisages setting up of a 100 per cent subsidiary in India with an initial authorised equity share capital of 150 million dollars. The subsidiary will purchase and export tobacco from India and also bring Rothmans’ international brands to India. (UNI) |
|
Sangma for removing regional imbalances NEW DELHI, Dec 7: India will have to cure its massive regional imbalances before hiking up the GDP, former Lok Sabha Speaker P A Sangma today said. Speaking at the social summit,"business as a social partner" organised by the Confederation of Indian Industry (CII) here Mr Sangma said even China had to scale down its GDP growth from 13 percent to 10 percent to cure its massive regional imbalances. Stability with governance uniform population growth eradication of regional imbalance, and creation of ample employment opportunity were the key issues. Stability of the system is being threatened today. To overcome this we need to have skill development programmes, pay attention to population structures especially in the northeast and generate at least 94 million jobs by 2002, Mr Sangma said. India were 250 million people were illiterate 40 per cent below the poverty line 75 million children go with education and 17 million are child labourers, and by 2016 the population country in the world the decision makers needed to apply their minds carefully Mr Sangma said. Mr Baba Gouda Patil Minister of State for Rural Development urged the industry to bring out their experiences in rural development and disseminate them widely for people to derive inspiration from such initiatives. Coming down hard upon the problems of poverty and illiteracy "that stated us in the face in our country", the minister said that it was timely in CII’s part to have convened this social summit to contribute to and enrich the programme designed for social development. Mr Patil observed that industry must strive to find appropriate technologies developing them indigenously or importing them to make sure that they were suited to our land and people and to apply them to deliver the goods. To generate additional employment the Government needed to set up a large number of micro enterprises with low investment but armed with personnel with high technical and managerial skills, he said. Housing too was a matter of priority for the country and needed innovative technology applied by forming a special cell on housing, added Mr Patil. (UNI) |
|
Rao takes over as Chairman of PTCIndia Foundation NEW DELHI, Dec 7: Dr Bhaskara Rao, an international expert on telecommunications, has taken over as chairman of the PTC India Foundation. He is founder of the Centre for Media Studies and was earlier National Convenor of the Social Audit Panel of the Ministry of Communications. Dr Rao succeeds Mr YL Agarwal, Managing Director of Himachal Futuristic Communications Limited. Mr Y P Singh and Mr J P Garg are now new Vice-Presidents of PTC India Foundation while Mr Anil Prakash continues to be the Secretary General. PTC India Foundation is a non-profit, Non-Governmental Organisation and country chapter of the pacific telecommunications council which is headquartered at Hawaii in the United States. It provides a forum for users and providers of telecommunications. Its members comprise private sector telecom companies as well as members from the Department of Telecommunications (DoT), Mahanagar Telephone Nigam Limited (MTNL), the Railway Board, the Centre for Development of Telematics (C-DoT) as well as prominent professionals from the telecom sector. (UNI) |
|
|
Excelsior Correspondent JAMMU, Dec 7: The 51st State Level Bankers' committee meeting was held here today. The meeting was presided over by Addl Chief Secretary, Planning Mr Jalil Ahmad Khan In his address Mr J A Khan expressed satisfaction that performance in current year is better than last year but at the same time stressed for achievement of targets set by banks as also increase credit deposit ratio in the State. He assured that there shall be close coordination from State Government for all matters concerning disbursement of more credit. Regarding various other issues, like timely release of subsidy and margin money, Mr Khan, assured that there shall not be any problem on this account in future. In his welcome remarks, the Chairman, Jammu and Kashmir Bank, Mr M Y Khan, who is also the convenor of this meeting, highlighted the performance of banks in J&K State during 1998-99 under Annual Action Plan. Furnishing the details, he stated that various banks have disbursed an amount of Rs 112.00 crores in first half year ending Sept 98. Under farm sector banks have provided credit aggregating to Rs 28.60 crores to 7023 beneficiaries under non-farm sector the banks have disbursed an amount of Rs 83.40 crores thus benefitting 7526 beneficiaries. Similarly under IRDP Banks have sanctioned an aggregate amount of Rs 8.18 crores to 6153 persons living below poverty line. Under PMRY Scheme the banks have sanctioned an aggregate amount of Rs 7.34 crores to 964 educated unemployed youth of the State for setting up of employment generating units. Amount of Rs 9.65 crores to 1021 educated unemployed youth of the State have been sanctioned by the banks under J&K State Self Employment Scheme during the first six months of the current financing year. The banks have sanctioned an amount of Rs 1.98 crores to 511 persons under Swaran Jayanti Shehri Rozgar Yojna during the period under review. Under SC/ST/OBC Banks have sanctioned an amount of Rs 0.99 crores to 770 persons. Though expressing his satisfaction over the performance of the banks, Mr M Y Khan stressed upon the banks to put in extra efforts for achieving the set targets by the end of current financial year under annual credit plan. He further stressed that as on 30th Sept, 98 out of the total achievements of banks under ACP 1998-99 at Rs 112.00 crores, the Jammu & Kashmir Bank alone has sanctioned loans to the tune of Rs 55.82 crores and the position has further improved in November, 1998. The meeting also took various decisions for implementation of various schemes for the overall economic development of the state. |
|