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ASSOCHAM
pleads for NEW DELHI, Apr 2: The Associated Chambers of Commerce and Industry of India..more DNA excellent conductor NEW DELHI, Apr 2: Deoxyribo Nucleic Acid (DNA), the genetic material of .........more ICRA assigns A1 plus NEW
DELHI, Apr 2:
ICRA Limited has assigned an A1 plus rating to the Rs 10
crore ........more JAIPUR, Apr 2: The Rajasthan State Electricity Board (RSEB) has announced ....more |
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South Africa to encourage JV with Indian youth NEW DELHI, Apr 2: South Africa will encourage joint ventures between young people ....more PHDCCI demands 3 pc NEW DELHI, Apr 2: The PHD Chamber of Commerce and Industry (PHDCCI) ...more HCL launches first CALCUTTA,
Apr 2: HCL
Infosystems Ltd (HCL Insys), India’s premier ..more NEW
DELHI, Apr 2: Divergent
views emerged today on the new export import policy for .....more |
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ASSOCHAM pleads for more credit flow to industry NEW DELHI, Apr 2: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) today urged the Finance Minister to evolve a foolproof mechanism for a high-level review of cases where industry’s requirement of credit is being denied by funding agencies, especially banks, even when all the stipulations are met. The suggestion has been made following instances brought to the Chamber’s notice of denial of credit to applicants with proven track record. The "disbursement of justice" by funding agencies would go a long way in boosting business confidence and minimising arbitrary decision-making in credit delivery. The Chamber has called for such a step following the findings of the expert group on banking and financial services earlier constituted by the ASSOCHAM president Mr K P Singh. The expert group noticed with dismay and concern that credit disbursement to industry has swung like a pendulum, from populist loan melas to denial of genuine credit needs of the industry. The group said, while the bank credit to the commercial sector went up by Rs. 35,834 crore in the fiscal year up to the last week of January, 1998, it rose by only Rs 30,253 crore in the fiscal year up to January, 1999. The growth in non-food credit by Scheduled Commercial Banks (SCH) also reflects this trend. Non-food credit extended by SCB went up by only 6.8 per cent till the last week of January, 1999 as against the 8.8 per cent in the same period in the chamber group an increase in non-food advanced by the SCB was lower than in the previous year. By the first week of February 1999, the deposits with the banks grew by Rs 24378 crore over the previous year’s levels. The 13.7 per cent growth in deposits was higher than the 12.1 per cent growth rate recorded in the same period last year. The factors influencing the trend, inter alia, are a fear psychosis amongst the bank officials, rigorous norms of credit appraisals, lack of sympathetic appreciation of industry genuine needs in the context of mounting NPAs. The ASSOCHAM expert group felt that the growth of money supply was fueled by the increase in amount of credit mopped up by the Government from the banking sector. Net bank credit to the Government till the last week of January 1999 went up by Rs 22085 crore over the previous year’s levels. In percentage terms, the net bank credit to the Government has gone up by 15.7 per cent as against the 10.4 per cent growth in the same period last year. While suggesting a flexibility in the new appraisal methods, by initiating a review through a fool-proof mechanism, the Chamber pleaded that 50 to 60 per cent of the previous year’s level of credit be extended especially to the SSI sector which though contributing to exports are languishing in want of credit. The Chamber also expressed concern over the deteriorating quality of services of nationalised banks in general and particularly towards small trader and SSIs in getting debit-credit advices, information on returned cheques, cheque realisation and i/c advices.(UNI) |
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DNA excellent conductor of electricity NEW DELHI, Apr 2: Deoxyribo Nucleic Acid (DNA), the genetic material of cells, is an excellent conductor of electricity — a property which makes DNA a potential candidate for wiring up miniaturised electronic devices, say Swiss scientists. DNA transports electric current as efficiently as a good semiconductor, researchers hans-werner fink and Christian Schonenberger of the University Ofbasel in Switzerland report in the latest issue of the journal nature. The conducting property, along with the preparation of DNA molecules of specific composition ranging in length from a few nucleotides (structural units of DNA) to chains of several microns makes DNA fit for application in miniature electronics. Earlier experiments addressing DNA conductivity involved a large number of DNA strands embedded with electron-donor and acceptor molecules in their ‘double helix’ structures, which gave contradictory results. The Basel researchers arrived at the result by measuring electric current with respect to electric voltage applied across a few DNA molecules joined to form wires of at least 600 nanometres (milliont of a millimetre) in length. The conductivity values of DNA from these measurements are comparable with those of existing conducting polymers, the report says. (PTI) |
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ICRA assigns A1 plus rating to Samsung Ltd NEW DELHI, Apr 2: ICRA Limited has assigned an A1 plus rating to the Rs 10 crore commercial paper programme of Samsung India Electronics Limited indicating highest safety. The prospect of timely payment of debt/obligation is the best. The highest safety rating takes into account the position Samsung has established in the domestic CTV market in a short span of time, support of Samsung Electronics Company (SEC), Korea and efficient control of operations resulting in improved profitability. Samsung a subsidiary company of the 17 billion dollar SEC of South Korea, is engaged in the marketing of a wide range of consumer durables including CTVs, audio systems, washing machines, refrigerators, microwave ovens and ACs in India since December 1995. Samsung reported net profits for the first time in 1998 and is today one of the fastest growing players in the domestic TV market. Samsung has improved its working capital management by introducing sap R/3 for receivable management and reducing inventory lead time. Efficient working capital management resulted in release of funds and reduced working capital loans. With increasing contribution from CTV and other product categories, profitability of Samsung is likely to improve in short to medium term. ICRA expects samsung to leverage on the growth to its advantage by increasing its distribution network and aggressive marketing. This is reflected by its recent performance. Samsung also plans to effectively market its other product categories like refrigerators, washing machines, and air conditioners this year. All these products are expected to provide positive contribution from 1999 onwards. Samsung continues to receive strong support from SEC, Korea in terms of technology, latest product introduction and expenditure on advertisement and marketing. (UNI) |
New farm power policy retains single category JAIPUR, Apr 2: The Rajasthan State Electricity Board (RSEB) has announced a new agriculture connection policy dispensing with all classes of priority connections and retaining only general category of applicants. The new agricultural connection policy for 1999-2000, announced by the RSEB on the direction of the Government, yesterday said all new connections would now be given under general category only. The annual target of releasing new agricultural connections has also been increased from 25,0000 to 30,000, the policy document said. It said same priority would be applicable in the general category connections which was in vogue before 1990 in the previous congress regime. An official spokesman said here today that the nursery scheme under which farmers could get out of turn connections if they were willing to pay extra money was abolished by order of new Energy Minister Chandra Bhan on December 28, 1998. There are about 1,700 applicants under the closed nursery scheme from whom the RSEB had already received necessary charges and efforts are being made to dispose them off during the current month, the spokesman said. However, 9,750 applicants would still be there whose names had been registered under the nursery scheme by the board after receiving Rs 5,000 from each of them. They will be allowed to withdraw their registration amount. The spokesman said the new agriculture policy will put an additional burden of Rs 125 crores on the cash-starved RSEB. (PTI) |
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South Africa to encourage JV with Indian youth NEW DELHI, Apr 2: South Africa will encourage joint ventures between young people of the country and India," as they can both learn a lot from each other." This was stated by Ms Phumzile Mlambo-Ncguka, South African Deputy Trade and Investment Minister and leader of an important delegation of South African officials, at a meeting organised with the Bharatiya Yuva Shakti Trust (BYSY) today. Ms Mlambo-Ncguka said South Africa has a lot to learn from India, especially in the area of youth development. A large proportion of South Africa’s youth today do not have the skills needed to lead modern life. So, lessons in youth development here will be valuable. Ms Chanda Singh, trustee, BYST said the industry had come to realise that it had a responsibility to expend time and resources on the issue of social development." Providing support to young entrepreneurs not only has benefits for the young entrepreneur, but for industry, whose members can develop certain human resource development skills like leadership , team building, motivating ability and problem solving skills in a real, live situation." BYST had been able to support 421 ventures and thus, provide employment for 1500 young people, and the Rs one crore given out in loans had generated Rs nine crore turnover. (UNI) |
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PHDCCI demands 3 pc cut in real interest rate NEW DELHI, Apr 2: The PHD Chamber of Commerce and Industry (PHDCCI) today urged the Reserve Bank of India to further reduce its real rate of interest by two to three per cent. "In view of decline in interest rate, our real rate of interest is still very high as compared to counterparts elsewhere. Interest rate should be six to seven per cent in real terms and 11-12 per cent in nominal terms," the chamber said in a communication of RBI Governor Bimal Jalan. High real cost and hesitancy on the part of bankers to lend, particularly to small and medium sectors is responsible for no perceptible change in off-take of bank credit, despite recent measures by RBI to ease the liquidity position and soften lending rates. Mr Ashok Khanna, President, PHDCCI in statement today remarked that although there is softening of lending rates, banks still continue to charge high rate of interest due to high spread prevailing in the banks. "In comparison with the developed countries, our rate of interest is very high viz. 16 to 18 per cent which makes it unattractive to investment growth. The benefit of reduction in PLR is hardly passed on to the borrowers, particularly, SMEs and medium sector," he said. Banks are rigid in deriving ‘credit rating’ , which is proving counter-productive to the growth process. Banks should determine lending rates on basis of scientific practices based on technical assessment of the risks involved rather than on the basis of customers’ perception. Banks should ensure transparency while scientificially pricing risks. Spread should be reduced by increasing productivity and professional funds managements, said he chambers chief. Banks Credit Deposit Ratio has declined from 79.3 per cent in 1970-71 to 50.9 per cent in December 1998, whereas there has been quantum jump in the investment. Deposit ratio from 23 per cent in 1970-71 to about 36.1 per cent in September 1988. The chamber president does not view this as healthy trend for the growth of trade and industry depending on bank finance. Steep hike in bank service charges (20 per cent to 250 per cent) is not commensturate with the quality of services rendered by banks, costing of bank funds and services should be based on a rational formula with cost benefit ratio. Banks should not raise their income through high levy of service charges, which should be on no-profit and no-loss basis. This freedom of banks requires monitoring by IBA/RBI, Mr Khanna added. There is reluctance on the part of bankers to lend to trade and industry as against softer and zero-risk investments in Government securities. Bankers’ risk awareness was perhaps encouraged by a faulty public debt policy. This needs to be addressed by RBI/ Government. Mr Khanna feels there is an ineffective mechanism to check incipient sickness and giving timely and adequate financial support for revival of sick units. Banks’ s Non Performing Assets (NPA) ratio though came down to about 17 per cent from 25 per cent funds to the tune of over Rs 45000 crore of public sector banks are still locked up in NPAs. Banks should address to quality of lending. Banks should expendite use of debt recovery tribunals of banks and review NPAs norms and introduce ‘Samadhan schemes for redressal of NPAs. Further, legal machinery and laws of speedy recovery of debts should be promptly addressed and banks management be provided with appropriate authority, he said. Further, the role of banking ombudsman should be expanded and exporters claims should also be addressed by them, as at present ombudsman treats bank negotiating export bills as loans/ advances and do not entertain exporters complaints. (UNI) |
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HCL launches first intel pentium CALCUTTA, Apr 2: HCL Infosystems Ltd (HCL Insys), India’s premier technology integration company, has launched the country’s first intel pentium III Miscroprocessor-based servers, Branded HCL Net Manager NL. Targeted at the Small and Medium Enterprise (SME) segment, the HCL netmanager is manufactured at HCL insys state-of-the art ISO 9002 certified facilities. HCL net manager will be marketed by frontline division, the pioneers in value-added offerings to Personal Computer (PC) users and the distribution arm of HCL insys, a company spokesman here today said. (UNI) |
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DEA flays EXIM policy, AEPC welcomes it NEW DELHI, Apr 2: Divergent views emerged today on the new export import policy for 1999-2000 with the Delhi Exporters Association (DEA) criticising it and the Apparel Export Promotion Council (AEPC) welcoming it. DEA President S P Agarwal said the EXIM policy is import oriented and not dynamic enough for export growth. "Nearly 1.5 lakh exporters, mainly from small and cottage sectors have been disappointed as it is an extension of the previous policy." In the last policy, a total of 340 items from the restricted list were shifted to the Open General Licence (OGL) category for imports. Now, an additional 894 items have been put in free list of imports. Besides, 414 items have been put in the Special Import Licence (SIL) category. "Domestic manufacturers of these items will be wiped out and these industries will collapse. Lakhs of people engaged directly or indirectly in manufacturing or marketing of these products will be unemployed," Mr Agarwal said adding "it is a directionless policy." He said the Government must come forth with a revised export policy which is not linked with imports. Unless this is done, Indian exports will not grow. Lack of coordination between Ministries of Commerce and Finance is further hampering exports from the country. Mr Agarwal said the Government lacks vision to boost exports. "We are shocked to observe that the Commerce Ministry has not set any export target." he said exporters are harrassed by all Government agencies, especially the banks. Meanwhile, the AEPC appreciated several decisions announced in the new policy. Among them are: Conversion of existing export processing zones into free trade zones, bringing down threshold limit for imports under Export Promotion Capital Goods (EPCG) scheme and setting up of an institutional mechanism for on-the-spot solutions in case of problems faced by exporters. "It is satisfying that scheme of annual advance licence to be operated on input-output norm basis may reduce the workload of exporters," said AEPC Chairman Bharath Goyal. Under the duty exemption scheme, another welcome step is the issuance of licences on basis of self-declaration where input-output norms are not fixed. Mr Goyal also appreciated the decision to issue green cards to those exporting 50 per cent of production with the minimum of Rs One crore per year entitling them to various facilities. The AEPC Chairman said that bonafide, technical and trade samples of garments were earlier allowed to be imported for the value of less than Rs 30,000 in one consignment. Now this limit has been increased to Rs One lakh per consignment. Mr Goyal also appreciated the enhancement of export obligation period under the EPCG and advance licence scheme. (UNI) |
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