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Kinetic
exports NEW DELHI, May 28: The Pune-based Kinetic Engineering Limited (KEL) has acquired the distinction .....more ASSOCHAM demands interim award by 11th Finance Commission NEW DELHI, May 28: The Associated Chambers of Commerce and Industry of...more NEW DELHI, May 28: National advertising bodies and leading international companies ..more Vanaspati manufacturers flays EXIM policy NEW DELHI, May 28: Vanaspati manufacturers today warned the Government that if the current EXIM policy is not amended to re-canalise the free import of RBD palm oil, it will ...more |
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Maruti seeks permission NEW DELHI, May 28: Maruti Udyog Limited (MUL)..more BIFR sanctions NEW DELHI, May 28: The Board for Industrial...more MUMBAI, May 28: The rupee remained...more NEW DELHI, May 28: Despite non-registration....more |
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Kinetic exports 2-wheelers to US NEW DELHI, May 28: The Pune-based Kinetic Engineering Limited (KEL) has acquired the distinction of being the only two-wheeler manufacturer in India to export vehicles to the competitive market of the United States. The company has, so far, exported more than 12,000 vehicles to the us. The vehicles have been modified with in-house research and development efforts to meet the local safety and environmental requirements as prescribed by the federal motor vehicle safety standard of the us. "The fact that leading departmental stores in the US are regularly stocking our products, indicates the growing consumer confidence in quality and design," KEL Joint Managing Director Sulajja Motwani said in a statement issued here today. Indigenously designed and manufactured, KEL vehicles are also exported to Europe, Africa, Asia, and South and Central America. The company has specially designed models for the US, Canada, Australia, Sweden, Holland, Argentina, Turkey and Russia to suit the local requirements of emission safety, noise etc. For the second successive year, KEL has been awarded the export excellence award by the Engineering Export Promotion Council. In contrast to the ongoing worldwide recession in the automobile industry, KEL has shown a 55 per cent growth in its mopds and scooterette exports over last year, with the export sales figure exceeding the 9000 mark in 1998-99. "Our vehicles are indigenously designed and produced. They are exported and sold under the Kinetic brand name," Mr M K Khera, Executive Director (operations) at Kinetic, said. The company’s bi-wheeler brands include Knetic Luna, Kinetic Safari V2, Kinetic K4-100, Kinetic Pride, Kinetic DX/ZX and Marvel. (UNI) |
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ASSOCHAM
demands interim NEW DELHI, May 28: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has advocated the grant of an interim award by the 11th Finance Commission which makes appropriate corrections in the existing percentages prescribed for revenue sharing both in regard to Income Tax 77.5 per cent and Excise revenue 47.5 per cent. Chamber president K.P.Singh, in a note submitted to the Finance Commission, has stressed the need for such an interim order for balancing the interests of Central States revenues and for augmenting State revenues for local bodies. Since augmentation of revenues of the State for transferring to the municipalities and local bodies is now mandated, the Finance Commission, said the Chamber chief, while doing mid-term correction may, out of the percentage allocations of each States, earmark some percentage for transfer by the respective States to Municipalities and local bodies. He said the Finance Minister in his 1997-98 budget speech, inter alia, stated that the recommendations of the 10th Finance Commission for alternative devolution has been adopted by the Inter-State Council and that a Constitutional amendment shall be brought forth to provide for the same in the Constitution, and the States will be able to get a much better deal than they are getting at present through the 29 per cent devolution. Unfortunately, the Constitutional amendment is still awaited and the devolution to the State takes place on the basis of the 10th Finance Commission’s recommendations on statutory sharing of Income Tax, Excise revenues and in respect of grants etc. Though the 11th Finance Commission has not been specifically asked to recommend, inter alia, the alternative devolution, yet in view of the advantages listed in favour of such a devolution in para 13.2 of the 10th Finance Commission’s report and having regard to the fact that the Inter-State-Council has adopted the alternative devolution scheme and the Constitutional amendment is awaited to give effect to the same, the 11th Finance Commission should review it and re-affirm the alternative devolution scheme either as it is or with modifications. While recommending slashing down of the Income Tax share from 85 per cent to 77.5 per cent and increasing the share of Excise revenue to 17.5 per cent , 40 per cent " 7.5 per cent, the 10th Finance Commission anticipated that Income Tax and Excise revenue will show appreciable buoyancy, but the actuals have recorded a shortfall of Rs 4490 crore in Excise revenues, resulting in corresponding dimunition of the shareable divisible pool. While suggesting alternative devolution, the ASSOCHAM chief has cautioned that the prescribed percentage does not actually result in the Centre cornering a larger share of tax collections. It should ensure : - The formula contains an in-built correction mechanism through mid-term review, for such corrections as may be needed. - While computing the divisible pool, yield from all taxes, taxes and duties under Article 268 and 269, all the earmarked cesses, all kinds of surcharge, penalties and interest in the case of Income Tax be included. - The new system should also require a policy decision to replace administered price increases by through a hike in Excise duties. - There is fine balancing of the fiscal requirements of the Centre/States/Municipalities and local bodies. - The formula should be subject to review by the successive Finance Commissions every five years instead of 15 years as prescribed by the 10th Finance Commission.(UNI) |
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NEW DELHI, May 28: National advertising bodies and leading international companies are building support for new on-line advertising guidelines by the International Chamber of Commerce (ICC), the world’s foremost developer of voluntary business codes, according to ICC headquarter. Leading companies backing the ICC guidelines on advertising and marketing on the internet include: Dun and Broadstreet, Eastman Chemical, Leo Burnett, Nestle UK, Readers Digest and Shell International, an ICC release said. Endorsements for the guidelines have already come in from advertising and other business associations in Belgium, the Netherlands, Sweden, Switzerland, and the United States. Banks, chamber of commerce and other representative business associations have also given their support. The April 1998 updated guidelines on internet advertising provide solid self-regulatory rules for ethical advertising on the internet and aim to increase Government and consumer trust. Other ICC codes cover advertising practice, marketing and social research environmental advertising, direct marketing, sales promotion and sponsorship. They are used by professional, advertising associations as the basis for national codes of conduct. The internet advertising guidelines cover a range of ethical issues, including protection of users’ personal data, messages directed at children, and the varied sensitivities of global audiences. The guidelines urge marketers to have an open and transparent on-line presence by disclosing their identity clearly when posting a message, so that users can contact them without difficulty. Marketers should alert users to any access costs additional to basic telecommunications rates, and allow them a reasonable amount of time to disconnect from the service without incurring the extra charge. A guideline entitled ‘users rights’ states that advertisers and marketers should disclose the reason for collecting personal information on users, and confine their use of the information to their stated purpose. The guidelines also say that marketers should take reasonable precautions to safeguard the security of their data files. The ICC guidelines state that users should have the opportunity to refuse transfer of their personal data to other advertisers and marketers, except when required by law. Advertisers are also encourage to post their privacy policy statement clearly on their on-line sites. Unsolicited commercial messages should not be sent to those users who request not to receive them. Marketers are advised to respect on-line public groups by posting messages only on commercial sites and those with a related them or which have given implicit of explicit permission. The ICC guidelines stipulate that on-line advertising direct at children should not be exploitative or harmful. Marketers should ensure that parental consent is given before children provide information on-line. They should give parents information on ways to protect children’s on-line privacy. Finally, the guidelines caution marketers to consider the sensitivities of global audiences by ensuring that their messages are not perceived a pornographic, violent, racist, sexist or otherwise offensive. The ICC guidelines suggest that on-line advertising and marketing be conducted in accordance with the laws of the country from which the message originates. However, ICC points out that there is currently no international unanimity on legal jurisdiction, and hence certain countries may claim jurisdiction over messages posted on-line from abroad. It has brought together experts from all business sectors involved to write a report on jurisdiction issues in cyberspace by the end of the year. (UNI) |
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Vanaspati manufacturers flays EXIM policy NEW DELHI, May 28: Vanaspati manufacturers today warned the Government that if the current EXIM policy is not amended to re-canalise the free import of RBD palm oil, it will sound a deathknell to the domestic vanaspati industry by flooding the Indian market under OGL. Vanaspati industry is already passing through a severe crisis due to stagnant production, under capacity utilisation, falling profits, multiple, high and indiscriminate taxes, short availability of raw materials and huge influx of cheaper vanaspati from Nepal, industry sources said. The cost of vanaspati cannot be reduced due to cost of conversion of hydrogenation of the edible oils. The net outcome will be total collapse of the industry which provides cooking medium to the poor and vulnerable sections of the society, they added. Vanaspati Manufacturers’ Association of India (VMA) Chief Executive Director S K Chadha told that "India should learn a lesson from China which has been discarding RBD (Refined, Bleached and Deodorised) palm oil and has switched over to import of crude edible oils to perform value addition there." This is clearly proved from the figures that China’s palm oil import which accounted for 56.7 per cent of its total import of oils and oilseeds during 1989 has declined to 38.5 per cent in 1997, he stated. RBD palm oil and palmolein is of no use to the refining industry as their main input is crude edible oil rather than palm oil. Vanaspati industry has already switched over to crude oil from argentina, brazil and the United States due to price parity for the time being. Solvent extraction industry has nothing to do either with crude or refined edible oils, Mr Chadha said. "The million dollar question is who would be the end-user of RBD palm oil in the country?" VMA Chief Executive questioned. Ministry of Commerce in its amended EXIM policy for 1999-2000 has allowed free import of RBD palm oil which was previously canalised through State Trading Corporation (STC). Even STC is not interested in import of palm oil as there are no takers for this, Mr Chadha said. The country is importing about 1.4 million tonnes of RBD palmolein on record but is hardly seen anywhere and its disappearance needs to be probed, he said. Mr Chadha drew the Government’s attention to rampant use of imported palmolein for adulterating the groundnut and coconut oils. "It will be hasty to conclude that RBD palm oil has no takers," VOA chief executive said adding that "there are a large number of shady and unscrupulous traders and importers who will import this refined oil and will either mix it with vanaspati or sell in its original form as vanaspati at a profit of Rs 10,000 per tonne." The RBD palm oil gets solidified at room temperature and resembles in appearance like vanaspati. It can, therefore, be easily offered to the consumers as vanaspati at prevailing market price and earn huge profits as palm oil is cheaper by Rs 10 a kg. Mr Chadha expressed fears that if the bakery industry which accounts for nearly 40 per cent of the total production of vanaspati in the country switched over to the cheap refined palm oil, then 40 per cent of the operating units will have to face closure. At present, there are about 190 units throughout the country, out of which 80 units have been closed and the rest are operating at 32 per cent capacity utilisation. Of the remaining 110 units, 25 per cent units have already been listed as sick units. RBD palm oil is technically a substitute for vanaspati in the manufacture of bakery items which consumes about four lakh tonnes of the total production of ten lakh tonnes of vanaspati. The production has been stagnant for more than a decade, he said. If the present trend continued, most of the units will be closed and dependence on imports will increase. Allowing free import of these items will also make India a dumping ground for Malaysian finished products such as RBD palm oil, palmolein and palm stearin. The domestic oil industry could benefit if the Government allowed crude oils to be imported at reduced duty, such a move would help improve the capacity utilisation of the industry which presently stood at merely 32 per cent. In 1987-88 the capacity utilisation was 66 per cent which has now declined to 32 per cent in 1997-98 and the production during the period remained in the range of 9.85 lakh tonnes to 10.40 lakh tonnes only, he said. Mr Chadha also cited the example of Pakistan where RBD palm oil is being sold in blends and even mixed in vanaspati with 35:65 ratio and in some cases the ratio even goes upto 80 per cent content. VMA chief said in the interest of the vanaspati and edible oil industry, the consumer and the country, the Vanaspati Manufacturers’ Association will continue to urge the Ministry of Commerce to amend the EXIM policy and place import of RBD palm oil, RBD palm stearin and Palmolein in the canalised list. (UNI) |
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Maruti seeks permission for registering 800, Zen, Esteem NEW DELHI, May 28: Maruti Udyog Limited (MUL) today approached the Delhi Transport Authority seeking unrestricted registration of Maruti 800, Zen (both petrol and diesel) and Esteem, the cars which comply to the India year 2000 emission norms. The permission for registering its Omni van and Gypsy would be sought later as the company is still working towards making these vehicles year 2000 compliant, company sources told UNI here today. Production of these new versions would commence on June 7, when MIL’s Gurgaon facility reopen’s after the half-yearly maintenance shutdown. "We have already received the certificates from Automotive Research Association of India (ARAI) that the Maruti 800, Zen (both petrol and diesel) and Esteem conform to the year 2000 emission norms. These documents have been submitted to the Transport authority and permission sought for unrestricted registeration of these cars in the National Capital Region," the sources added. Regarding Omni and Gypsy, the sources said, "we are not in a hurry with these models as we have ample time with us. Besides, demand for these vehicles are also not too high at present. But, by the first week of June, we expect to get the certificates for these vehicles as well." It may be recalled that MUL has already ruled out any hike in prices of its year 2000 compliant cars despite a Rs 5,000 to Rs 10,000 increase in production costs due to the modifications being incorporated. "Keeping in view the interests of our customers and the large number of pending bookings, we have decided to absorb the entire cost ourselves," the company had announced. As per the Supreme Court directive today, car manufacturers can sell and register Euro-I (read year 20005 compliant vehicles in the NCR without any restriction from June 1, 1999. While the Esteem and Zen diesel were always Euro-i compliant, the Maruti 800 and the Zen petrol have now been made compliant and the engineering team is simultaneously working on Omni and Gypsy. The company has already prepared contingency plans for full transition to Euro-II norms by April 1, 2000. Investments to the tune of Rs 600 crore have already been made in this regard.(UNI) |
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BIFR sanctions Rs 34 cr for TIEL NEW DELHI, May 28: The Board for Industrial and Financial Reconstruction (BIFR) has sanctioned a Rs 33.94 crore rehabilitation scheme for the sick state unit - Tamilnadu Industrial Explosives Limited (TIEL). The scheme for the company which has a technical collaboration with Bofors Nobel Chematur, Sweden, involves a one time settlement of Rs 25.28 crore with banks and financial institutions towards payment of the entire principal term loans and the rest Rs 8.66 for interest. The scheme further envisages that TIEL would finance the scheme through internal accruals and cash balances. However, the company’s capital expenditure for expanding its plant involving an investment of Rs 14.50 crore has not been included in the scheme sanctioned by the board here recently. The company while setting up the emulsion explosive unit will withhold loans payment to the State Government and Tamil Nadu Industrial Development Corporation Limited (TIDCO). The TIEL, promoted by TIDCO, set up a unit for manufacture of 15,000 TPA Nitro Glycerin based industrial explosives in North Arcot district in Tamil Nadu, in 1986 with a cost overrun of Rs 4.7 crore. The company set up another plant for manufacturing accessories for explosives viz detonators and delayed detonators in technical collaboration with Joseph Meissnera Gmbh and Company (JMGC), Germany. Upon erosion of its network, BIFR declared the company sick in September 1992. Barring Senthel building materials manufacturing company private limited, few companies expressed any serious interest in taking over the sick company. But just before a deal was struck with Senthel, TIDCO and State Government indicated their intention to run TIEL in the public sector, thereby pouring water over the privatisation plans for TIEL. In its latest hearing, Senthel objected to the revival scheme stating that ots offered was higher by Rs 4.14 crore when compared to its offer to TIDCO. Besides, Senthel pointed out that it is willing to induct additional machinery worth Rs 10 crore for modernisation of facilities and this would strengthen the long term revival prospects and competitiveness of the company. Further, Senthel tried to lure the creditors by saying that the sacrifices being incurred by the banks and institutions under the latest offer were much more than what they were required to its offer. But the TIEL advocate V U Eradi said that under the proposal given by Senthel, TIDCO was required to transfer its total shareholding of Rs 27 crore in favour of Senthel at a highly discounted price. In addition, Rs 38 crore given by TIDCO as loans were to be converted into share capital and thereafter the total share capital of Rs 65 crore was to be reduced to Rs 5.5 crore. As such, Senthel would have got additional benefit of around Rs 60 crore and this amounted to total sell out by the State Government, he added.(UNI) |
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MUMBAI, May 28: The rupee remained under severe pressure against the US dollar due to the prevailing Indo-Pak border tension in generally quiet but cautious early trade at the Interbank foreign exchange market here today. Opening distinctly depressed at overnight finish of Rs 43.05/10 per dollar, the rupee is currently traded at Rs 43.02/05 on stray dollar sales by banks, dealer said. Meanwhile, in cross currency trade, the Euro was quoted at Rs 44.83/88, pound sterling at Rs 68.70/73 and the Japanese yen (100) at Rs 34.63/65. (PTI) |
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NEW DELHI, May 28: Despite non-registration of its vehicles in the National Capital Region for the better part of May, Maruti Udyog Limited is confident that domestic sales of its passenger cars for the month would top 32,000 units. Besides, production is also projected to cross a new high of 33,000 units for the month, company sources told UNI here today. The total production figure includes Gypsy and the units earmarked for exports. The sales figure, the sources said, has been reached at by calculating the average with the total sales till date. This would mark a 5.3 per cent increase over the sales figure of 30,372 units in April this year and a 0.83 per cent growth over May 1998 when the company sold 31,734 cars in the domestic market. The Supreme Court order and the resultant non-registration of cars in the NCR had failed to have an impact on the company’s sales figures as Maruti had stopped deliveries to dealers in the region and used these vehicles to meet the growing demand in other parts of the country. Maruti had recorded a 30.1 per cent surge in sales of its passenger cars during April 1999 at 30,372 units as against 23,337 units during the same month last year. ‘Omni’ had led the surge in sales during the month having registered a 47.8 per cent growth. The van sales during the period stood at 6,668 units from 4,509 units a year ago. Its world car ‘Zen’ followed with a 31 per cent jump in sales to touch 5,901 during April 1999 as against 4,504 units last year while the bread and butter Maruti 800 sales during the period stood at 16,500 units, up 25.3 per cent from 13,165 units in March 1998. Maruti’s mid-size ‘Esteem’ sales during March 1999 stood at 1,241 units, up 9.7 per cent from 1,131 units a year ago.(UNI) |
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