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EML for
developing NEW DELHI, Apr 7: Eicher Motors Limited (EML) has joined hands with IIT....more Update revival scheme NEW DELHI, Apr 7: The Board for Industrial and Financial Reconstruction....more PHDCCI demands clarification in taxation rules NEW
DELHI, Apr 7: Certain
clauses relating to taxation of perquisites in..more WASHINGTON, Apr 7: The US Department of Commerce has made final .....more |
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Konka sets
up JV NEW DELHI, Apr 7: Konka group company of China is setting up a 100....more BBUNL achieves CALCUTTA,
Apr 7: Coming
out of recession, Bharat Bhari Udyog Nigam...more WASHINGTON,
Apr 7: The US
Commerce Department’s Bureau of Export.....more CHENNAI, Apr 7: The Power Sector-Southern Region (PSSR) of the public .....more |
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EML for developing mass ambulance NEW DELHI, Apr 7: Eicher Motors Limited (EML) has joined hands with IIT, Delhi, for developing a mass evacuator/ambulance on its Skyline School bus platform, Eicher Group Chairman Subodh Bhargava said. Besides, riding on good demand for its light commercial vehicles, Eicher Motors expects to close the 1998-99 financial year "positive", Mr Bhargava told here. "Our truck sales have grown during 1998-99 by around one per cent even as most of the players in the segment were reeling under recession. As a result, we expect our bottomlines to look up this year," he added. However, he refused to divulge turnover and profit figures for the year. Eicher had sold 5,323 trucks during the year over 5,275 trucks in 1997-98. During 1997-98, Eicher Motors had recorded a net profit of Rs 3.02 crore on a turnover of Rs 265 crore. On the new ambulance which the company is developing at present, Mr Bhargava said, "We are in the process of developing the vehicle, which will very spacious than the Omni ambulances available today. It will also be equipped with all the life saving equipments." The ambulance will also be capable of transporting five to seven patients in cases of major accidents or calamities, he added. The vehicle is being developed on its skyline school bus platform. "We have three platform sizes and for the ambulance, we would using the smallest of the three." EML, which has a manufacturing facility at Pithampur in Madhya Pradesh, however, has not finalised a launch date for the vehicle, he added. (UNI) |
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Update revival scheme for CCI by April 16 NEW DELHI, Apr 7: The Board for Industrial and Financial Reconstruction (BIFR) has set a deadline of April 16 for the operating agency - Industrial Finance Corporation of India - to submit an updated rehabilitation scheme for the sick public sector unit Cement Corporation of India Limited. As the earlier draft rehabilitation scheme circulated in June 1998 had lapsed, the board asked IFCI to incorporate all the objections and suggestions of the parties concerned and submit the revival report by April 16. In a bench hearing here, the BIFR directed the Government to convey its stand by the same time frame regarding the company’s request for release of additional funds from the ‘no lien’ account which has Rs 48 crore. Pointing out that the uncertain and open-ended situation on rehabilitating the CCI was not in the interest of anybody, the board set the definite timeframe of mid-June for the Central Government and workers to firm up their stand over the revival scheme when it will come up for sanction. The board expressed concern over the rising fund requirement for the revival of the state sick enterprise which was pegged at Rs 35 crore eight months back to Rs 149 crore. "It was not clear as to what the promoters were trying to achieve by getting more time. The ground level position of the market and the fundamentals of all the units were known...And if more time was wasted, the position of the company would worsen further," the board said. It may be noted that the earlier draft scheme could not be sanctioned on account of the stand of IDBI and SBI regarding the proposed treatment for their dues : Non-availability of a firm commitment from Central Government for induction of the required funds and the objections raised by workers over the closure of unviable units. CCI Director Finance R K Agrawal said while the company’s total working capital needs on paper continued to be Rs 58.35 crore, the bankers on their own had reduced these limits to Rs 49 crore. Hence, he requested that the banks be asked to restore the drawing power of the company at the level assumed under the scheme. Moreover, Mr Agrawal said the viability of various units was also getting adversely affected on account of procedural delays. Presently, Mandhar, Akaltara and Charkhi Dadri units were giving substantial negative contribution per tonne of cement. In addition to the non-availability of Rs 75 crore expected from the sale proceeds of above three units, there was a shortfall in cash accruals vis-a-vis the projections of drs, amounting to Rs 12.71 crore during 1997-98 and Rs 60.73 crore during 1998-99. "While updating the scheme, requirement of funds to that extent would have to be kept in view... The payment period of balance 50 per cent of the settlement amount would need to be extended by one year," the company submitted. Due to fall in cement prices by 15-20 per cent, the Government sought some more time to consider the draft scheme in depth and hold discussions with the merchant bankers for the sale of unviable units. The financial institutions and banks submitted to the board to regularise their accounts with the public sector company under the revival scheme. Meanwhile, various workers unions opposed the closure of certain units even as they sought revision of their wages. (UNI) |
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PHDCCI demands clarification in taxation rules NEW DELHI, Apr 7: Certain clauses relating to taxation of perquisites in case of stock option and sweat equity plans of the Union Budget for 1999-2000 used changes and clarification as to how the employer would be able to collect or deduct the withholding tax paid by the employee, the PDH Chamber of Commerce and Industry (PHDCCI) said today. The Budget proposes to provide that in case any security is offered to the assessee byway of stock optionVr sweat equity, the difference between the fair market value and the cost at which it is offered to the employee shall be treated as a parquisite. Further, the difference between the market value on the date of exercise of option and the sale consideration in the event of sale bythe employee would be taxed as capital gains in his hands. Although the proposed sub Q 49 specifies the "Fair Market Value" to mean the market value as on the date of exercise of the option. However, the new sub clause 2 (IIIA) inserted in Section 17 defines "value" to mean the difference between the fair market value and the qost of acquisition, mentioning the date of calculation of fair market value. This needs to be looked into, the Chamber said in a communication to the Finance Ministry. Another issue relates to Section 17 (2) (IIIA) which mentions that the security offered shall be considered as a perquisite only if the security is offered free of cost or at concessional rate. The provisions is silent about whether security offerred by a listed company to its employees at the same price as offered to other shareholders/general public would be considered as a perquisite. Though the aspect had been clarified by a circular issued by Central Qarsixoqt taxes in the past, it would be desirable to clarify the issue in the act itself. There may be case where at the time of grant of option, the price may be same as the price offered to other shareholders/general public but at the time of exercise of option, the price prevalent in stock exchanges may be higher than the price at which the stock is offered to the employee. In former case, it is not a perquisite, whereas in the latter case, it will be. Section 17 (2) (IIIA) creates an incidence of tax on the exercise of the option. In many cases, the employee would be forced to sell his shares (immediately after he exercises the option) to fund the tax LI Bilitz. The Chamber suggested that the tax on the perquisites should be deferred to the year in whcih the shares (after converson of option) are sold. (UNI) |
US may impose more duties for dumping of steel wire WASHINGTON, Apr 7: The US Department of Commerce has made final determinations that imports of steel wire from India, Canada, Japan, South Korea, Taiwan and Spain were dumped on the American market, which is considered an unfair trade practice. Dumping is the export of goods at less than the price in the home country or a third country or less than the cost of production. In the decision announced late on Monday the department calculated the highest dumping margin, 35.8 per cent, for Inoxfil S A of Spain. Imposition of anti-dumping duties requires affirmative final determinations both from the Commerce Department that dumping took place and from the US International Trade Commission (USITC) that the imports injured US industry. USITC final determinations are expected in May. In the meantime the US Customs service will collect a cash deposit or bond on the imports equal to the estimated dumping margin after a negative determination the money would refunded, says an official press release. The Commerce Department’s dumping margin calculations for India — India: Raajratna Metal Industries Ltd., 18.64 per cent all others, 18.64 per cent. (a dumping margin is the difference between the dumped price and the fair-value market price). It says US imports in 1997 of stainless steel wire amounted to 13.2 million dollars from Canada, 8.4 million dollars from, 8.1 million dollars from South Korea, 4.0 million dollars from Taiwan, 2.4 million dollars from Spain and 0.9 million dollars from India. (UNI) |
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Konka sets up JV with Hotline, Wittis NEW DELHI, Apr 7: Konka group company of China is setting up a 100 million-dollar joint venture with Delhi-based Hotline and Wittis of Hong Kong for producing its range of consumer electronics, home appliances, communication products and computer peripherals here. Konka would hold the majority 51 per cent stake in the joint venture while the remaining 49 per cent holding would be distributed equally among Hotline and Wittis. Konka which would hold the majority stake in the venture, intends to make India the headquarters for its SAARC operations. "A manufacturing unit is planned very shortly...Over a period of time, it would feed the markets in Europe and West Asia," the company said in a statement issued here today. The venture would produce televisions, high-end digital audio devices, VCDs, DVDs as well as white goods like refrigerators, washing machines, microwaves and air-conditioners, besides communication products like fax machines, telephone instruments and cellular phones. In India, the company would commence market operations with colour televisions, audio and video systems under the barnd name Konka. The products would be launched soon and the process of setting up branch offices and after sales service centres in India would also begin simultaneously, a statement issued here today said. As part of the India plan, Konka would set up a research and development centre in order to facilitate quality product development and also to customise the product to suit Indian conditions and customer needs. Konka had recorded an annual turnover of over 1.3 billion dollars in 1998. (UNI) |
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BBUNL achieves highest production CALCUTTA, Apr 7: Coming out of recession, Bharat Bhari Udyog Nigam Limited (BBUNL), the largest conglomerate of ten engineering central public sector units in Eastern India, has achieved the highest production this year since 1994 to enable itself to further diversify and expansion during the next millennium. Speaking to newsmen about the financial performance and other production highlights of the conglomerate, BBUNL chairman R P Singh said here last night that despite increase in input costs and fall in output prices the BBUNL has developed strategies to increase productivity by undertaking moderenisation and diversification from the current financial year. The conglomerate comprises Burn Standard Company Limited (BSCL), Jessop Company Limited(Jessop), Braithwaite and Company Limited (BWT), Bharat Wagon and Engineering Company Limited(BWEL), Bharat Process and Mechanical Engineers Limited (BPMEL), Lagan Jute Machinery Company Limited (LAGAN) and Braithwaite, Burn and Jessop Construction Company Limited (BBJ). Highlighting the financial health of the subsidiary companies, some of which were registered with the board for industrial and financial reconstruction since a few years ago, Mr Singh said of them Jessop, Briathwaite and Burn standard had not only successfully turned around by making substantial profit last year, but had also ensured annual growth between seven to nine per cent. Jessop, despite losing orders worth Rs 100 crore due to lopsided government policy, had increased its production by more than 12 per cent. The Burn standard and the Braithwaite increased production by seven per cent and 7.6 per cent respectively last year. Among others the Salem works of the BSCL has recorded the second best production target in about a decade through substantial improvement of quality of refractory bricks for SAIL and other export markets, Mr Singh said while the BBJ had also completed three major projects of Krishna bridge, Rihand bridge and Shankerpur fishing harbours besides the country’s largest rail cum road bridge the Brahmaputra bridge during last year. The company is now be on the threshold of earning profit this year, he added Referring to projections on the export front Mr Singh said the group achieved a physical export of Rs 6.53 crore this year (1998-99), about Rs two crore more than the last year the company to expand it by more than 25 per cent by next year when the network would be expanded to the far east, Middle East and Africa from the present SAARC countries of Bangladesh, Nepal and Bhutan. Mr Singh said BBUNL had also undertaken a move to overcome recession within the country and further widening marketing areas. An export order worth eight million dollars for manufacturing, supply and commissioning of track maintenance machines for Myanmar Railways was at the final stages. In addition, another export order of Rs two crore from Quatar for supply of refractory items and for constructing a bridge in Bhutan at a cost of nearly Rs eight crore were at hand, the Zbunl chairman said. About future strategies for financial haul up, Mr Singh said, as a major cost cutting measure the Government has decided to wind up two non-viable subsidiaries under BBUNL- the Bharat Process Mechanical Engineers Limited and the Weighbird (India) Limited by offering VRS to their nearly 900 employees. While about 50 per cent of the employees at Bharat Process has already accepted the offer, about 350 of the total 600 staff in Weighbird did the same. The fate of the remaining employees would, however be decided by a six member expert committee formed for this purpose and had been asked to submit its report within the next three months, he said. Moreover, Mr Singh said, the Lagan Jute Machinery Limited and the RBL Limited were under a disinvestment programme. All this programmes would help make each of the operating companies profit earning ones by the year 2001, Mr Singh pointed out. About his future plans for diversification, the BBUNL chairman said besides making forays into the highway construction business and laying of railway tracks in foreign countries, they had decided to opt for construction and material handling programmes in a number of future underground railway projects to be taken up in Delhi, Hyderabad, Bangalore, Pune and Mumbai during the next millennium. While in some cases "we have already won the contracts, in some others we have made serious bids and hope to get a clearance soon", Mr Singh opined. (UNI) |
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US Commerce Dept eases some curbs on India WASHINGTON, Apr 7: The US Commerce Department’s Bureau of Export Administration (BXA) has eased some restrictions on exports to ‘Bharat Electronics’ components division, though the restrictions on the main entity remain, a journal report said here. The exempted items for the components division, the journal of commerce said, are classed as year 99, a broad category of the export administration regulations which requires no licences for sales to most countries. The classification covers very common goods such as food products but has been expanded over the years to include items like computers, electronics and oscilloscopes. The journal said that the unannounced change came last month in response to an exporter’s request for an advisory opinion. Although BXA placed Bharat Electronics in Bangalore on an ‘entity list’ of nuclear and missile contractors last November, said the paper, the agency has decided that the list’s strict licensing requirements do not apply to the company’s ‘components division’ in Bangalore, the letter said. The ruling means that no licences or reviews are needed for most exports to the Bharat Electronics components division, although approvals are still required for exactly the same exports to the parent company, known as Bel. (AP) |
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CHENNAI, Apr 7: The Power Sector-Southern Region (PSSR) of the public sector Bharat Heavy Electricals Limited (BHEL) has booked orders for a whopping Rs 890 crores during this year apart from keeping orders worth about Rs 500 crores on the pipeline. Addressing a press conference to highlight the performance of PSSR here last evening, Mr A N Jagadeeswaran, general manager said the major orders secured included two 580 mw boiler (including civil works) for thermal power station at Simhadri in Andhra Pradesh and a 108 mw combined cycle power plant for Tamil Nadu Electricity Board at Kovilkalappal in Tamil Nadu. The Simhadri project carried out by the National Thermal Power Corporation (NTPC), was the largest single order ever received by BHEL and was also the first turnkey order for a 2x500 mw project, he said. On the industrial front, PSSR has received orders for a 55 mw captive power plant at Dubri in Orissa for M/s Konark Met Coke Limited, a 200 t/hr boiler at Damanjodi in Orissa for Nalco, a 39 mw steam turbine at Cochin in Kerala for M/s Bses and a 22 mw steam turbine and 80 t/hr bagasse fired boiler at Davangare in Karnataka for M/s Shamanur Sugars Limited, he added. (PTI) |
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