Essar shipping’s proposal involving FDI of Rs 133 crore to set up all weather port and terminal facility for receipt, storage and dispatch of crude oil and petroleum, oil and lubricants in Gujarat figured in the approved list, FIPB sources said here.

As the project cost of Essar shipping’s proposal is more than Rs 600 crore (around Rs 1435 crore), it will further need clearance from the Cabinet Committee on foreign investment.

The company would issue foreign currency convertible bonds through Union Bank of Switzerland for the purpose, the sources said.

The FIPB also approved a proposal from TDF Mauritius Limited to have 72 per cent equity stake in Whirlpool Apple Consumer Credit Private Limited, an existing non-banking finance company in India. The proposal involves FDI of Rs 89.7 crore. The foreign company would acquire 65 per cent of equity of Whirlpool Apple Consumer Credit Private Limited for which the board of the Indian company has already given the permission. The remaining seven per cent of shares would be acquired by TDF Mauritius Limited through the subscription route.

Another proposal from Enron India Private Limited to increase its paid up equity capital by Rs 46.2 crore was also cleared today. The company’s existing paid up equity capital stands at around Rs 400 crore. The foreign investment will be made through the Mauritius based Enron NHC India Development Limited. Enron India Private Limited is the holding company of enron group for power and liquified natural gas generation.

Sonoco Asia’s proposal for packaging of cosumer products, involving FDI of Rs 42.5 crore was also cleared.

The board also approved united dominion international’s proposal, involving Rs one crore of FDI, for manufacturing air purification equipment. It involves hundred per cent foreign equity.

Five proposals in the electronics sector, involving FDI of Rs 38 crore got clearance.

FIPB did not take up any proposal relating to information and brodcasting sector.

Meanwhile, the board rejected a proposal by the Netherlands-based ED company to expand its trading activities in the domestic sector. The company at present is engaged in exporting sugar from India. (UNI)

The revised rating indicates adequate safety.

The downgrade takes into account the overcapacity in the ceramic tiles industry, which has led to a pressure on realisations for all the manufacturers in the industry. A slowdown in construction and housing activity resulted in a lower growth in the offtake of ceramic tiles in 1997-98. This affected the profitability of KCL, with its net profit margins dropping from almost 20 per cent during 1996-97 to 13 per cent in 1997-98.

There was a cost overrun of approximately rs R3 crore at the new plant at Bhiwadi, which was primarily funded through debt. Moreover, increasing competition in the industry resulted in working capital requirements going up. As a result, the gearing levels deteriorated from 1.1 times as on March 31, 1997 to 2 times as on March 31, 1998. This affected the interest and debt coverage ratios of KCL in 1997-98.

The oversupply situation in the ceramic tiles industry is likely to be corrected in the medium to long term as fresh capacity additions have been put on hold. However, in the short to medium term, realisations are expected to be under pressure with a decline in profitability for most manufacturers.

The risks arising out of falling profitability levels, rising working capital requirements, high gearing levels and repayment obligations in the medium term are partly mitigated by the company’s strong presence in the ceramic tiles industry and advantages accruing from newer plants based on the latest international technology. ICRA expects the debt servicing ability of KCL to be adequate in the medium to long term. (UNI)

Although onion figures in the list of 22 items meant for exchange between India and Myanmar as agreed in a bilateral agreement between them on April 4, 1995, Customs authority posted at "Free Trade Zone" Moreh on the Indo-Myanmar border used to charge customs duty at par with other import items.

Following scarcity of vegetable in local market in view of discontinuance of supply from domestic sources, traders in Manipur continued to feed the market with onions through clandestine import of the vegetable.

Onion is still sold in Imphal market at around Rs 25 as against reported price of Rs 50 a kg in other parts of the country. Market sources here claimed that the supply from Myanmar would be sufficient to meet the market demand of around 500 quintals daily for the entire North-East, including Assam, which is the highest consumer of the vegetable in the region.

Moreh Chamber of Commerce president Tarachand Jain told UNI that the cumbersome procedure of clearance by customs and State Government authority as well as the harassment metted out to transporters on the so called check gate should be done away with immediate effect to facilitate smooth transportation of the scarce vegetable. (UNI)

An order lifting the ban on use of mustard oil was issued earlier this week. But a restriction of 20 per cent has been placed on use of expeller mustard, Joint Secretary, Department of Sugar and Edible Oils Sushama Nath told.

Government had banned use of rapeseed/mustard in the manufacture of vanaspati on September 11 following reports of adulterated vanaspati being sold in the market. (UNI)


IICT developes HFC production plant

HYDERABAD, Nov 7: A Rs five-crore pilot plant for production of Hydrogen-Fluoro-Carbon (HFC-134A) with the technology developed by the hyderabad-based Indian Institute of Chemical Technology (IICT) as a substitute for the ozone-depleting common refrigerant will be installed here next month, IICT Director Dr K Raghavan has announced.

Talking to newspersons here yesterday, he said the installation of the pilot plant at the institute had reached an advanced stage and the technology for commercial production of HFC-134A was likely to be released by the institute sometime between June and December next year.

As IICT is taking a leading role in the development of substitutes and alternatives for ozone-depleting substances, the institute in a major effort in 1994 launched the technology development initiative for HFC-134A, as a substituent for CFC-12, Chloro-Fluoro-Carbon substance mostly used as a refrigerant.

The institute has already established a well instrumented single tube facility for process scale-up studies and the pilot plant will shortly go for test runs. The generated data will be restandardised in the pilot plant.

Financially supported by the TIFAC wing of the Department of Science and Technology, CSIR and two private groups, the technology is expected to be released next year.

On releasing the process for commercial production, India will become the fifth country in the world to possess this sophisticated technology, Dr Raghavan said.

The IICT is represented in the technical options committee of United Nation environment programme and is a nodal agency for providing technical advice to montreal protocol programmes for phasing out of ozone depleting solvents in India. (UNI)

Punjab & Sind Bank claims 8 pc growth in net profit

NEW DELHI, Nov 7: Punjab and Sind Bank has achieved a net profit of Rs 32 crore for the half year ended September 30, 1998 showing a growth of over eight per cent as compared to the corresponding period last year.

During the period, the operating profit of the Bank has increased to Rs 49 crore from Rs 46 crore as on September 30, 1997.

While announcing the provisional half yearly results of the Bank, senior Bank officials said deposits of the Bank have grown by 18.70 per cent which increased to Rs 8519 crores as on September 30, 1998 compared to the figure of Rs 7177 crores last year.

The Bank officials further stated that the core deposits of the Bank have also gone up by 17.86 per cent to Rs 8033 crores from Rs 6816 crore.

As on September 30, 1998, the net advances of the Bank stood at Rs 3,687 crore registering an increase of 23.47 per cent over the figure of Rs 2986 crore a year ago. The total business of the Bank has crossed Rs 12,500 crore as on September 30, 1998.

During the first half of the current financial year, the deposits of the Bank increased by over 11 per cent and the net advances by 15.77 per cent.

The Bank has major expansion plans for the future and in the coming month it will give more thrust to making advances to retail trade, consumer loans and housing loans and focus on other areas of innovative banking, which will help increase the overall business of the Bank. (UNI)


FCA dwindles by 63 mn US dollar

MUMBAI, Nov 7: India’s Foreign Currency Assets (FCA) dwindled by US dollar 63 million during the week ended October 30, 1998 to US dollar 26,582 million.

The total foreign exchange reserves, however, were up by US dollar 35 million to US dollar 29,679 million as a result of accretion in Special Drawing Rights (SDRs) by US dollar 98 million to US dollar 113 million.

Gold reserves during the week remained unchanged at US dollar 2,984 million, according to Reserve Bank of India’s weekly statistical supplement.

Central Government’s access to ways and means advances from RBI increased by Rs 379 crores to Rs 2,426 crores during the week-ended October 23, 1998.

Commercial banks’ investments in Government securities were down by Rs 4,726 crores to Rs 2,11,470 crores during the fortnight ending October 23, 1998.

Bank credit to the commercial sector was higher by 2.8 per cent (Rs 8,849 crores) as on October 23 over the level of end-March 1998, against a growth of 1.5 per cent (Rs 4,060 crores) in the corresponding period last year.

Bank’s accommodation to the commercial sector in the form of investments in shares, debentures, bonds, commercial paper and other instruments was higher by Rs 8,579 crores to Rs 41,663 crores till September 25 since end-March 1998, compared to increase of Rs 9,017 crores in the same period of previous year. (PTI)

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