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Centre seeks states’ views NEW DELHI, Dec 24: The Centre today made a strong case for hiking....more
Lg Electronics to NEW DELHI, Dec 24: Lg Electronics India Pvt Ltd today said...more Auto industry continues NEW DELHI, Dec 24: Driven by a significant growth in....more |
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Indian Banks:
Time for drastic changes NEW DELHI, Dec 24: Faced with the challenge of globalisation.....more Computer users SINGAPORE, Dec 24: Computer users were today...more Const projects aggravate NEW DELHI, Dec 24: Commuters in Delhi were relieved.....more Entry of FDI in media sector NEW DELHI, Dec 24: The entry of Foreign Direct Investment.....more China signs trade BEIJING, Dec 24: China has signed trade deals with Cuba....more |
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Centre seeks states’ views on kerosene oil pricing NEW DELHI, Dec 24: The Centre today made a strong case for hiking the price of kerosene to cut down burgeoning subsidy and effectively check its growing use for adulteration of diesel and sought to build a consensus among the states for this. The prices of kerosene has not been revised for over ten years, Petroleum Minister Ram Naik told at a conference of State Ministers for Food and Civil Supplies while pointing out that kerosene in neighbouring countries was being sold at more than three times than in India. In countries like Pakistan, Sri Lanka, Malaysia and Bangladesh, there was hardly any price difference between kerosene and diesel, whereas in New Delhi the two fuels were supplied at Rs 2.59 and Rs 13.91 per litre respectively, he said. He urged the State Governments to take strong steps including legislative measures to make adulteration of kerosene with other fuels as a ‘punishable offence’ instead of prevalent provisions of financial penalties alone. Stating that subsidy burden on kerosene and LPG was expected to be Rs 12,000 crore in 1999-2000 as against Rs 8370 crore, Naik said bulk of kerosene meant for Public Distribution System was being diverted for adulteration which also led to serious environmental problems. Most of the consumers were not getting kerosene at the price or quantity indicated by the Government, he said adding In today’s meeting, I would like to know your views and evolve a consensus on the pricing of kerosene in such a way that the poor sections of society get the quantity allotted for them at the price fixed. (PTI) |
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Lg Electronics to enter e-commerce NEW DELHI, Dec 24: Lg Electronics India Pvt Ltd today said that it would dilute its equity by 25 per cent through initial public offering in 2001-02 and enter e-commerce segment next year. "We will come out with an IPO giving 25 per cent share to the public," Mr K R Kim, Lg Electronics India managing director, said here. Mr Kim said "we will also enter the e-commerce segment aggressively in the next year." he refused to divulge more details on this plan, merely saying that "an announcement in this connection would be made some time in mid-January." Mr Kim said "the IPO could be launched only after we prove three years of profit running, so we expect it to happen by 2001-02." Earlier, the company MD said the company has recorded a turnover of Rs 1000 crore, even before the completion of this fiscal. The net profits this year is to the tune of Rs 40 crore. The company had achieved a turnover of Rs 480 crore last fiscal. Overall, the company has recorded a 110 per cent growth with 45 per cent from the home appliance goods and 55 per cent coming in from consumer electronic goods. Mr Kim said "we would like the output from both the home appliances and consumer electronics to be 50:50." "A turnover of Rs 1,500 crore is expected next fiscal," Mr Kim said. Lg India Electronics India, a wholly-owned subsidiary of South Korea-based Lg Electronics, offers products such as microwaves, frost-free refrigerators, fam washing machine (Fuzzy Logic), sam washing machine (6 kg), air conditioners and colour televisions (CTV). "In the frontloading washing machine category, we have already come out with the 7 kg model, and we would launch the 5.5 kg model in March next year," Mr Kim said. In the microwaves segment, the company attained a growth of 389 per cent over the last year, while 89 per cent growth in the CTV category and 181 per cent in direct cool refrigerators. Besides, it registered 61 per cent growth in the frost-free refrigerator, 150 per cent in semi-automatic washing machine, 120 per cent in fully-automatic washing machine and 300 per cent in air conditioner segments. "We foresee ourselves as the market leader by 2001...We have been building up the vitals of our brand and restrained ourselves from tacticals and scheming," Mr Kim added.(UNI) |
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Auto industry continues to be on upswing NEW DELHI, Dec 24: Driven by a significant growth in passenger car sales, the auto industry raced ahead witnessing a 27.16 per cent rise in the domestic market during the first eight months of this fiscal at 97,792 units against 77,045 vehicles during the corresponding period of the previous year. However, automobile exports continued to decline over the period, according to figures released by the society of Indian Automobile Manufacturers (SIAM) today. Passenger car sales climbed by 53.48 per cent during April-November to touch 402,497 units from 262,243. As far as November is concerned, car sales zoomed up by 91.44 per cent at 54,079 units compared to 28,249 in the same month the previous year. However, total vehicles grew by just 2.95 per cent in November at 12,344 units from 11,990 units. Sales of medium and heavy trucks stood at 62,851 units during the eight-month period, up 47.86 per cent from 42,506. Light truck sales were 35,121 during April-November this year, up 1.69 per cent from 34,539 in the corresponding previous year. Sales of two-wheelers rose by 8.22 per cent to 20,37,000 units during the period compared to 20,19,000 units. Three-wheelers’ sale rose marginally to 132,192 units from 131,087. Two wheeler segment, on the other hand, was the worst hit by decline in exports, registering a negative growth of 25.95 per cent at 47,530 units during the eight months of this fiscal from 64,182 units in Apr-Nov 1998. Utility vehicles, however, escaped the declining trend, recording an 80.63 per cent rise in exports during the period. As many as 12,375 units of passenger cars were exported, down 13.28 per cent from 14,270 units. (UNI) |
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Indian Banks: Time for drastic changes NEW DELHI, Dec 24: Faced with the challenge of globalisation and technology, Indian banks spent most of the year 1999 preparing for the next millennium without knowing much how to carry their past baggage alone. As we have a week to go for the year 2000, the largest of the public sector banks like the State Bank of India and the Bank of Baroda have their mindset ready for privatisation. The Union Government, being the majority owner, is equally prepared to lose 51 per cent stake in these banks. If the Government has to settle for an under 50 per cent ownership, it needs to change many statutes including the State Bank of India Act. When Banking Secretary Devi Dayal announced that the Government would change the laws to enable bank privatisation, interestingly, there was not much opposition from the unions. Besides the need for autonomy, banks are heading towards privatisation since the Government has shown no interest in contributing the additional funds required for improving their capital adequacy ratios.The Reserve Bank of India wants the banks to have a car of nine per cent by April 2000 and ten per cent by 2001. Most of the state owned banks either need to go in for additional capital rightaway or are on the margins. Moreover, they need additional capital for expansion of their business and profitability in the growing competition from the new generation private banks and the foreign banks. The competition is also coming from the development finance institutions like ICICI who are converting themselves into universal banks, rather than restricting to their traditional role. Growing competition has led to squeezing of margins for the banks from their past limited area of borrowing and lending. Most of the PSU banks showed decline in various profitability parameters in their financial year ended 1998-99 over the previous year. For instance, the SBI’s, return on assets dropped from 1.11 per cent in 1997-98 to 0.51 per cent in 1998-99. Its return on equity from 21.17 per cent to 10.27 per cent while the percentage of its non-interest income to gross income declined to 14.67 from 15.08. Situation was not all that different for the old private sector for whom the biggest problem is Non-Performing Assets and the inability of their owners to pump in additional funds to meet the car norms of the central bank. Bank of Madura, Bank of Rajasthan, South Indian Bank, Vysya Bank, Karur Vasya Bank, Karnataka Bank and the Dhanalakshmi Bank fall under this category of banks facing uphill task. So far as the new generation private sector banks are concerned,the consolidation phase began with the HDFC bank taking over the times bank. There are reports that the ICICI Bank is negotiating with the Bank of Punjab and Centurion Bank for the takeover. Among them HDFC Bank and the ICICI Bank remained the fancy of investors in the stock market since it is believed that these are the banks to watch even while the consolidation phase picks up. The technology drive was led by the private sector banks along with icici which now calls itself a universal bank and received the distinction of being the first Asian Bank to get a listing on the New York Stock Exchange for its American depository receipt. Its banking arm, ICICI Bank has remained pro-active on the internet banking and has struck a joint venture deal with Satyam Infoway for an internet-E Commerce business. Kamath’s growth plan is not based on the traditional brick and mortar expansion. His plan is to leverage the internet for expanding businesses and go where the business is in the emerging industries like FMCG and information technology. The PSU banks may be slow to catch up with the computerisation,the realisation is fast coming that unless they modernise,they would perish.The old opposition from the unions against branch modernisation has completely gone. The Reserve Bank of India is putting additional pressure and wanting these banks to link up their branches through VSATs and internet. Along with technology, these banks are exploring new business areas like the credit cards.The SBI-GE capital joint venture is perceived to be the biggest threat to the monopoly of Citibank in the plastic money market. While the ICICI and its Managing Director K V Kamath hogged the limelight, the other two development finance institutions -Industrial Finance Corporation and the Industrial Development Bank of India remained in the news mostly for wrong reasons.High level of NPA had hit the bottomline of these DFIs so much so that at least one of them found it hard to get subscriptions for its rights issue. While IDBI has commissioned management expert Mritunjaya Athreya to write the future strategy for the bank, the Government holding of 72 per cent is said to be the stumbling block for IDBI to go aggressive with required autonomy. The RBI-appointed Verma Committee on weak banks was one of the noteable features of the Indian banking in 1999. The committee had recommended recapitalisation of the Indian Bank, Uco Bank and the United Bank of India to the extent of Rs 5500 crore subject to 25 per cent VRS implementation. The Confederation of Indian Industry went a step further and suggested a closure of these banks stirring the hornet’s nest. The apex chamber had to ultimately withdraw its recommendations after the agitated employees turned the table on its President Rahul Bajaj and other leading industrialists blaming them for bulk of the NPAs. While the 1999 would go down as the year of making choice for the banking industry,it is in for trying times ahead full of challenges and opportunities as the country adops the second generation reforms. (UNI) |
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Computer users warned of Christmas virus onslaught SINGAPORE, Dec 24: Computer users were today warned to update their anti-virus software to prevent an attack of viruses timed to strike on Christmas Day. At least five viruses are expected and another five are poised to wreak havoc on new year’s day, the Infocomm Development Authority of Singapore and the Singapore computer emergency response team warned. Users "have become more conscious about the need for, and usefulness of, anti-virus software and good practices to prevent infection," said Goh Seow Hiong, the team’s General Manager. A particularly ominous present that no one would want to receive is the prilissa virus, which spreads itself as an E-mail attachment and can wipe out an entire hard disk, the organisations said. Users should also be on the lookout for malicious programmes that masquerade as solutions to possible Y2K problems. To help stave off virus attacks, the Development Authority advised against running executable programmes, those that end with. Exe, which were received through E-mail. Users were also urged not to run or forward software that was delivered via E-mail or downloaded from the internet unless scanned by an updated anti-virus programme. The Chernobyl virus in April was reported to have caused the most damage this year, erasing the hard disks of many computers. (DPA) |
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Const projects aggravate Delhi’s vehicular mess NEW DELHI, Dec 24: Commuters in Delhi were relieved when plans to ease vehicular traffic in the city with construction of several flyovers received the Government’s approval in 1997. However, two years down the line, they are more perturbed than ever at the sluggish pace of construction work that has made matters worse. Most of the public wrath is directed at construction work on the ring road which currently has five flyover and grade elevation projects in progress at Bhikaji Place, Moti Bagh, Raja Garden, Mayapuri and Punjabi Bagh crossings. In addition, there are road widening projects at many places including South extension and Dhaula Kuan. All this has made traffic flow very erratic. At Bhikaji cama place crossing, a high power line pole stands almost ten meters inside the newly widened road forcing approaching vehicles to veer right and left to avoid it. Bus-shelters in the area have been pulled down. As a result, commuters have to wait on the road. Buses stop just about anywhere to pick-up passengers. The hold-up at each of these crossings ranges from one to four minutes, leading to traffic jams as vehicles from the same direction continue to pile on. According to DCP (Traffic) Arvind Deep, though adequate manpower and zonal officers are stationed during peak hours (0800 hrs-1130 hrs and 1700-2100 hrs), more assistance is being sought. A requistion for 1200 additional personnel to the present strength of 2892 staff has been been approved. Construction at Raja Garden crossing was started two years ago by Delhi Tourism and Transport Development Corporation (DTTDC) but shows no sign of completion in the immediate future. Chief Engineer B Majumdar justifies the time taken in relation to the magnitude of the project as the flyover is 1.1 km in length with a four carriage way system. Residents of the area are not willing to accept the excuse and cite the Indo-Japanese friendship bridge at Nizamuddin as an example of speed. It was completed in less than 18 months. Mr Majumdar also accused the marble traders in the area of hampering construction demanding compensation that resulted in slowing down the pace. However, DTTDC plans to make at least one carriage-way operational by September, 2000. Official sources at PWD, which has the remaining flyovers, said construction would be completed anytime after August 2000, with one flyover being brought into operation every two months. Personal vehicles, meanwhile, are stated to reach a figure of 40 lakh by 2001. The ever increasing numbers of two-wheelers are another source of worry. Approximately 1,20,000 two wheelers are added each year, with 9150 vehicles being sold in June this year alone, according to Society of Indian Automobile Association (SIAM). It is no wonder that the ‘Teevr’ (fast) Mudrika circular bus service takes almost two and a half hour to complete a full circle, a far cry from the designated 80 minutes that it was supposed to take in early 1970s, when large tracts of ring-road were uninhabited. While Mumbai too has construction work and its subsequent share of problems, the extent of inconvenience caused is less as the city has expanded along a linear path. Delhi has grown radially and have more registered vehicles than all remaining metros put together. The only silver lining is the metro rail construction which according to Director, Project and Planning, C B K Rao is going as per schedule and is stated for completion in March 2002 with respect to the first segment of first phase. Unlike the PWD which has allotted all four contracts to a single contractor, the DMRC has distributed them among a number of contractors who are working together to meet a specific time-schedule. With no immediate respite in sight commuters as well as the DCP-traffic can only hope that these deadlines are met, to restore normalcy on the capital’s roads. (UNI) |
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Entry of FDI in media sector is still under consideration NEW DELHI, Dec 24: The entry of Foreign Direct Investment (FDI) in the media sector is still under consideration and even if it is allowed it will be guided under restrictions, a top official of the ruling coalition today said. "Even in Singapore which is a liberal state there are several restrictions on the entry of the media," Jagdish Shettigar, convener, Economic Affairs Committee of the Bharatiya Janata Party (BJP) said. Mr Shettigar said the issue is a very complex one and that it involved several factors including the crucial cultural issues. "We have already allowed the entry of the electronic media", Mr Shettigar said. However, Director of Rajiv Gandhi Research Foundation Bibek Deb Roy said no Government can control the entry or the functioning of any media. Answering questions at a seminar on Foreign Direct Investment on market driven economic development organised by FICCI here, Mr Shettigar said that lending rates in the country is high compared to foreign markets who get cheaper capital. "Here market forces must decide. If it comes down in even to 3 to 4 per cent I would be happy." He reiterated that in India there exists a clear cut foreign investment policy which is not done on a "case by case" level like in china which has a suitcase policy. It is the Indian Government’s stand that FDI will be cleared within 60 days. "We have minimised the case of suitase culture". On protection to domestic industry, he said "we do not accept the word protectionism, domestic industry must compete but on the other hand must be given a breathing space and not pushing them into a swimming pool", Mr Shettigar said. S Herzog, Project Director of the German Firm Freidrich Nauman Stiftung (FNST) said foreign investment in infrastructure is a unique indian phenomenon. Europe is not keen in FI in infrastructure but is interested in consumer and capital goods. Tourism, he said is the second largest industry in the world and India does not figure in it. "There should be more investment in the service industry especially tourism which is a great employment generator", he said. Another feature in the country is that there are a number of bankrupt industries. "But assets don’t vanish. There must be a redeployment of assets " he said. (UNI) |
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China signs trade deals with Cuba, Venezuela BEIJING, Dec 24: China has signed trade deals with Cuba and Venezuela which will facilitate its entry into the World Trade Organisation (WTO), the state media reported today. China has concluded bilateral negotiations with the two countries after serious and friendly talks, the official Xinhua news agency said. Details of the agreements were not released. The deals come after China last month signed market access accords with the United States and Canada, which will pave the way for China’s accession to the WTO. Entry is expected to open up the Chinese market to unprecedented foreign investment while lowering tariffs on a variety of imports. China, seeking membership of the trade body for 13 years, has still to negotiate bilateral agreements with other major trading partners including the European Union, Brazil and Switzerland, before it can become a WTO member. (AFP) |
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