NEW DELHI, Nov 14: Government will not withdraw the Companies Bill and is working towards enacting the Bill, though slightly changed, in the budget session of Parliament, Department of Company Affairs Secretary TS Krishnamurthy said today..... more

‘Working group constituted to revive steel industry’

BANGALORE, Nov 14: Union Finance Ministry has constituted a working group to interact with several authorities to make a suitable package for the revival of the steel industry, the Minister for Steel and Mines, Naveen . . ....more

Bullish sentiment gains
momentum at DSE

NEW DELHI, Nov 14: Riding on packages announced by the Government to kickstart the economy and the United States’ decision to partially lift sanctions against India soon, bullish sentiment gained momentum with investors making heavy purchases at the Delhi Stock ......more

Orissa Govt to encourage pvt companies
in cashew farming

BHUBANESWAR, Nov 14: The Orissa Government is planning a new policy to encourage private participation in cashew farming to boost cashew production in the state.

The Orissa Cashew Development Corporation (CDC) Chairman Harihar Sahu told yesterday that the Government is formulating a policy of leasing out cashew fields on long terms of 35 years to big companies. This would create competition among cashew growers and help maximise the cash crop production.

"If privatisation could lead to higher production, then we have to recast ourselves on the models of the private companies to maximise growth," he said.

Besides privatisation, a series of plans are also on the anvil by the CDC to ensure that Orissa emerged as the second largest cashew producing state in the country, he said.

Orissa produced 40,000 tonnes of cashew from more than 1.5 lakh hectares of land under cultivation. Besides steps to increase the area of cultivation and quantity and quality of production will be improved with high yielding seedlings and technical guidance. The Chairman said a modern cashew processing plant under a joint venture would be set up at Pechhukuli under Khurda district soon. The Rs three crore plant besides giving employment to 500 people would check the export of raw cashew and help the state earn foreign exchange by directly exporting qualitative products.

Mr Sahu said the corporation has set up four modern nurseries at Bhubaneswar, Chandikhol, Dhenkanal and Khurda to supply high yielding grafts to farmers.

Under the Central sponsored integrated cashew development programme, the corporation was providing free seedlings to those farmers interested in cultivating the crop in at least one acre land, he said.

Mr Sahu said though the corporation’s activities were confined only to seven undivided districts of Cuttack, Balasore, Mayurbhanj, Dhenkanal, Puri, Ganjam and Keonjhar, it was currently looking after more than 35,894 hectares of land. (UNI)

The board has cleared the 800 million US dollar (Rs 3450 crore) Satellite Project of the Mittal promoted ISPAT group to launch, operate, and maintain an Indian owned satellite for telecom services, FIPB sources said.

The project envisages a FDI of Rs 675 crore by ISPAT groups overseas affiliates and associates constituting 49 per cent equity.

Mittals would hold the remaining 51 per cent stake in the project, which will also enter into manufacture of telecom equipment.

FIPB sources said the approval was subject to other conditions like clearance and licence from other ministries. It will also have to be cleared by the Cabinet Committee on Foreign Investment (CCFI).

This is the fourth mega satellite project for global mobile personal communication systems cleared by FIPB. Speaking at a seminar on insurance here, organised by the Bengal Chamber of Commerce and Industry, Rangachary said it should be empowered to issue guidelines in respect of investments and solvency margins of the insurance companies officials here said further action against Rao would be decided after consulting top officials at head headquarters in New Delhi. "Whether fresh summons or non-bailable warrant should be issued would be decided later", officials said. (PTI)

Stating that this action was uncalled for and untimely, CII President Rajesh V Shah stated that it would provde harmful to Indo-US business.

"It created confusion about US strategy towards India. Publication of the entities list had a wider impact," he added.

The CII understood that the entities list implied that any US company doing business with the listed Indian organisations, or vice versa, would need to go through a US licensing procedure and the basic presumption is that approval would be denied, CII President Rajesh V Shah said.

The Government of India had shown, over the past few months, a firm, clean commitment to economic reforms and their continulty. According to the CII scorecard, 80 actions had been taken by government which came under the head of liberalisation.

In the context of continuous economic reforms, which offers trade and investment opportunities, specially to the US business community, the announcement of the "entities list" showed lack of understanding, appreciation and sensitivity. The entities list would impact ‘sentiment’ a key intangible in trade and investment relationships. The CII, which worked consistently, to strengthen Indo-US economic and business cooperation was deeply distressed by this action of the US Government against Indian industry and against Indo-US business partnership.

By taking the action on the entity list, the US is acting against US and Indian companies. And, this is where companies are only working with the indigenous Indian space and defence programmes with no export angle. As a result, US companies will also suffer and be hit adversely by this action.

The CII President said this action, adding to the US decision to continue with the denial of World Bank and IFIs financing of infrastructure projects in India made the going very tough. Infrastructure projects were key to India’s growth and development and offered maximum opportunities for US investment into India. Clearly, the US Government did not consider these aspects to be of importance, again acting against Indian development and US corporates.

He concluded by deeply regretting the US action as unwarranted and urged immediate review and reconsideration by the US Government. (UNI)

The department is presently in the process of implementing certain changes in the Bill pursuant to discussions with the standing committee. "We will be in Parliament some time in the Winter session, so all the necessary changes would be made in a couple of weeks," Mr Krishnamurthy said here while addressing a seminar organised by the Association of Chambers of Commerce and Industry of India (ASSOCHAM).

The Government, he said, has taken a firm decision to go ahead with the Companies Bill and it would not be withdrawn. "In fact, we would be bringing out certain changes in the Bill following our discussions with the standing committee. But it will go ahead and will hopefully be enacted during the budget session of Parliament."

"We have no cobwebs in our minds and want the Bill to go through to help promote economic growth."

Deliberating on the changes being introduced in the Bill, Mr Krishnamurthy said the changes have been brought about to accord certain degree of accountability to freedom.

Violations of company law would attract penal consequences, he said adding that the department is also looking at contravention of SEBI Law as well as the Company Law would both attract penal consequences. We will take up with the Law Ministry this point and clarify it in the Bill.’’ Even listed companies do not file their annual returns in time and some times, for years together. The Bill would provide certain stringent provisions in this regard. Another provision is being looked into whereby, the names of such erring companies would be struck out.

With regard to companies which fail to fulfil the promises made during the time of floating an issue, the Bill provides for disqualification of the Board of Directors.

Such stringent measures are the need of the hour, he added.

Speaking on the occasion, Company Law Board Chairman S Balasubramanian called for having a single regulatory authority. "Today, we have various regulating agencies, so people are not aware as to whom to approach. The multiplicity of regulatory agencies is posing problems for both the corporates and the investors and this needs to be addressed fast." (UNI)

The group was set up after the Steel Ministry took up the matter with the Commerce and Finance Ministries to attend to the problems of the steel industry, Patnaik said here, adding, the Government was focussing on infrastructure and housing sectors which was expected to increase steel demand.

Patnaik was speaking after inaugurating the 36th National Metallurgists Day, international symposium on ‘frontiers in materials processing’ and 52nd annual technical meeting here.

The minister said the Government had decided to spend up to Rs 150 crore every year for Research and Development (R&D) activities in the steel industry.

We have also set up an empowered committee for approval of suitable research proposals, he added.

Adequate focus, Patnaik said, was not being given to R&D in the country, and observed that the real initiative had to come from entrepreneurs to create an appropriate base for such activities.

Stating that the Indian metal industry was passing through troubled times, he said, the economic reforms and the accompanying efforts to globalise the Indian economy had a profound impact on the country’s iron and steel industry. Patnaik said the total steel production increased from 14 million tonnes in 1991-92 to over 23 million tonnes in 1997-98, while exports increased from a meagre 0.3 million tonnes to about 3.5 million tonnes during the same period.

Import of steel items, according to him, is hovering around 1.5 to two million tonnes for the last several years.

The minister said the growth in demand of steel was projected at 8.5 per cent and 8.25 per cent during the ninth and 10th five year plans, respectively, but due to general economic sluggishness, the demand pick up was lower than anticipated leading to excess capacity and falling prices.

The dumping by the CIS and other countries, he said, affected the steel prices further. "Moreover, many infrastructue projects did not materialise and devaluation in Asian and East Asian currencies facilitated cheap imports".

Patnaik said though there had been a steady growth of non-ferrous metals industry in India, the per capita consumption of major metals in the country was much lower than in the developed countries.

The department of mines was actively considering projects in the development of non-ferrous and ferrous sections, he said, adding, a science and technology project, wherein Chromite Over-Burden (COB) was to be converted into low alloy stainless steel, had been approved.

The minister assured the Indian metallurgical industry that the Government would provide full support to enable it to recover speedily from the current situation. (PTI)

The Government’s announcement on private internet licences, double-citizenship for Non-Resident Indians and dilution of Foreign Exchange Management Act (FEMA) made the sentiment upbeat during the week.

Besides, announcement of guidelines by the Securities and Exchange Board of India and its proposed move to ban blank short-sales also lifted the sentiment at the local bourse. The Finance Minister was fondly called by them.

With the United States announcement to soon partially lift sanctions against India and Prime Minister A B Vajpayee’s sops to private internet provides the market opened on a positive note on Monday with frenzied purchases by bull operators and foreign investors lifting share prices sharply higher. Mr Vajpayee announced several measures to boost the it and communications sectors, including allowing foreign equity investmeent of up to 49 per cent, issue of licences to ISPS before November 7 and permitting use of INSAT capacity by private service providers. The DSE index gained 19.30 points that day.

Though the market remained dull for the major part of the session the next day, late buying by domestic financial institutions and speculators led to buoyancy at the DSE. The players were bullish on the Finance Ministry’s decision to appoint a five-member committee. The index, which slid to 665.61 points at mid-session, rebounded to close 2.98 points higher.

Though the bullish trend was reversed on Wednesday, there was marked rally on Thursday as investors, induced by Mr Vajpayee’s announcement on double citizenship to NRIs, resorted to buying spree. The Prime Minister announced to set up a committee to formulate a pdolicy on dual citizenship or "any suitable" variant. The committee will submit its report within three months. Besides, recommendation by B D Shah Committee of SEBI to regulation of short sales also boosted sentiments. Besides, Revenue Secretary Javed Chowdhary’s announcement that FEMA will be watered down also allayed the concerns of companies over the bill, further lifting the sentiment. The index gained 10.78 points.

Glaxo soared by Rs 56 at Rs 566, while Ranbaxy Lab settled at Rs 521.10, up by Rs 53.50.

ACC gained Rs 43 at Rs 995 and ITC closed at Rs 732.50, higher by Rs 23.

BHEL and Castrol India rose by Rs 20.15 and Rs 20 at Rs 263.15 and Rs 644 respectively.

HCL Infosys and Software solution went up by Rs 19 each at Rs 235 and Rs 542.10 respectively.

Hindustan Lever, on the other hand, shed Rs 19 at Rs 1621. (UNI)

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