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Preference issue MUMBAI, Oct 31: Industrial Development Bank of ...more
Weekly market review NEW DELHI, Oct 31: Gold and silver continued to move ...more Punjab planning steps NEW DELHI, Oct 31: Mired in a financial crisis, the Punjab...more UAE organises biggest DUBAI, Oct 31: To give a fitting finale to a century that...more |
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New rail lines NEW DELHI, Oct 31: New rail lines would be laid to link divisional .....more UP Govt launches LUCKNOW, Oct 31: The Uttar Pradesh Government will launch tomorrow ...more Fresh entry tax imposed LUCKNOW, Oct 31: Luxury items like refrigerators, air...more Diesel price hike takes NEW DELHI, Oct 31: Inflation rate continued its upward ...more |
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Preference issue MUMBAI, Oct 31: Industrial Development Bank of India (IDBI) will raise Rs 1,000-1,500 crore through private placement of subordinated debt and another upto Rs 500 crore via preference shares in the current fiscal to shore up its Capital Adequacy Ratio (CAR). This will be the first time the Financial Institution (FI) is raising tier-II capital as it currently has only tier-I capital. IDBI’s tier-I capital amounts to Rs 8,693 crore, including paid-up equity worth Rs 660 crore and reserves of Rs 8,033 crore. We are planning to raise tier-II funds to the tune of Rs 1,000-1,500 crore through privately placed long-dated subordinated debt by December-end. This will be followed by a preference share issue of upto Rs 500 crore, IDBI chairman and managing director G P Gupta told in an interview. The size of the subordinated debt issue has not been finalised. Gupta said it would be either Rs 500 or Rs 750 crore with a greenshoe option of equivalent size, giving the issue a total scope of either Rs 1,000 crore or Rs 1,500 crore as the case may be. The size of the preference issue is also yet to be worked out in detail, he said, adding this would be in the region of Rs 250 crore to Rs 500 crore. We need to raise our capital adequacy as disbursements are expected to grow at a much faster pace in the coming months, owing to the industrial recovery, Gupta said. The FI’s aggregate assets stood at Rs 70,325 crore as on September 30 this year, up 7.5 per cent from Rs 65,415 crore at the corresponding period last year. IDBI, which currently has a car of 13 per cent, is planning to raise it further by creating total tier-II capital ranging between Rs 1,250 and Rs 2,000 crore. IDBI is also planning to mobilise foreign currency loans of around US dollar 200 million in the last quarter of the current financial year. We are expecting demand for foreign currency loans in the near future as import finance requirements would grow with climbing imports, Gupta said, adding demand for foreign currency credit was non-existent for over one year now. These loans would be raised in the form of syndicated debt. IDBI would also make the next in its series of public bond issues about the same time as the subordinated debt placement, he said. The institution’s borrowings during April-September this year aggregated Rs 5,853 crore, while internal generation amounted to Rs 8,692 crore. Rupee borrowings of Rs 5,406 crore comprised mainly Omni bonds (Rs 3,405 crore), flexibonds (Rs 1,500 crore) and certificates of deposit (Rs 418 crore). Foreign currency withdrawals under various lines of credit totalled at Rs 447 crore. (PTI) |
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Weekly
market review NEW DELHI, Oct 31: Gold and silver continued to move downwards in the second consecutive week while commodities markets in grains, pulses, sugar and oils ended mixed during the week ended October 30. Gold prices declined by Rs 55 at Rs 4,645 per ten gms as advices in the overseas markets moved in a narrow range and prices in London touched the 300 dollar mark atleast once during the week. Gold registered a loss of Rs 55 per ten gms during the course of the week and silver subdued by barely Rs 20 per kg. Gold prices in the international markets hovered between 297 dollars to 301 dollars per troy ounce and silver in the range of 5.25 to 5.18 dollars per ounce. Gold, standard, ornaments and bittur, suffered a setback of Rs 55 at Rs 4,645, Rs 4,495 and Rs 4,625 per ten gms respectively during the week under review as compared to last week’s closing price range. Sovereign did not witness any change. Silver .999 ready slipped by Rs 20 at Rs 7,950 per kg and weekly delivery by Rs 15 at Rs 7,935 per kg compared to last week’s price level. Silver coins also lost Rs 100 at sellers end per 100 pieces and settled at Rs 11,200 for buyers and Rs 11,300 for sellers on subdued demand. SUGAR: Sugar spot prices continued to look up in the local mandis even as mill delivery prices registered a loss at the higher level. Sugar mill delivery prices slipped by Rs 10 at the higher level to settle at Rs 1400/1460 per quintal. However, sugar M-30 displayed a gain of Rs ten at both the levels at Rs 1560/1590 and S-30 variety went up by Rs ten at the higher level at Rs 1540/1570 per quintal during the week under review. Gur declined sharply by Rs 250 at the lower level and Rs 200 per quintal at the higher level on mounting inventories and lack of buying activity. Gur was traded at Rs 1000/1200 per quintal. GRAINS: Wheat dara prices subdued while pulses traded mixed during the week under review. Wheat dara lost Rs ten at the lower level and Rs five at the higher level to settle at Rs 705/715 per quintal on increased supplies. As a result, prices of atta and suji went down by Rs 20 each at Rs 700 and Rs 790 and maida lost Rs ten at Rs 755 per quintal per 90 kg bag. Rice parmal gained Rs 40 at the lower level on support from despatchers at Rs 850/1050 per quintal. Other varieties of rice remained in tact. In pulses, gram improved by Rs five at the lower level and went down by Rs 25 at the higher level to settle at Rs 1375/1390, moong lost Rs 50 at the lower level at Rs 1850/2050, dal masoor gained Rs 50 at the higher level at Rs 1950/2350 while arhar moved up by Rs 50 to Rs 100 at Rs 1750/2100 per quintal as compared to last week’s closing range. Coarse grains prices did not witness any change due to poor demand. OILS: industrial and edible oils prices continued to decline during the third consecutive week due to increased arrivals and weak overseas advices. In non-edible oils, castor declined by Rs 100 at Rs 3700 and rice bran by Rs 70 at the lower level and Rs 50 higher level at Rs 1430/1500 while prices of linseed, mahuwa, neem, acid oil and palm fatty did not witness any change. In edible oils, groundnut declined sharply by Rs 200 at Rs 3800 followed by cottonseed by Rs 140 at Rs 2510, mustard expeller by Rs 100 at Rs 3500, soyabean by Rs 80 at Rs 2500, sunflower lost Rs 50 at Rs 2550 and palmolein shed Rs 40 at Rs 2370 per quintal on increased offerings while rice bran managed to gain Rs 50 at Rs 2120 per quintal on support from bulk buyers as compared to last week’s price level. Mustard oilseed lost Rs 150 at the higher level at Rs 1600/1675 and sesame declined sharply by Rs 400 at both the levels to settle at Rs 1800/2300 per quintal on mounting inventories. Vanaspati and oilcakes prices remained intact as demand matched supplies. (UNI) |
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New rail lines NEW DELHI, Oct 31: New rail lines would be laid to link divisional and district headquarters so as to reduce regional imbalance in Railway Development, Minister of State for Railways Digvijay Singh said today. Listing these new lines as the major priorities of his Ministry, Singh also said safety, punctuality and cleanliness would be strictly enforced in the running of trains. Divisional headquarters like my own constituency (Banka), Dumka, Hazaribagh and others have not seen railways even after 52 years of independence. Projects will be drawn to establish railway line in these places, Singh told here. Emphasising the need to make railways new technology friendly, Singh said all district headquarters and metro centres would be linked with internet. I told the general managers conference yesterday in New Delhi to start work on this, he said. The experiment of establishing internet would be tried out in seven to eight selected stations, he added. A new technology of ‘sound system’ developed by Konkan Railways, in which a device fitted in the engine gives an alarm four to five km before a head-on collision of trains as happended at gaisal which claimed 288 lives, would be put on trial next month, he said. Plans have been made to mobilise resource from railway property to meet the resource crunch of about Rs 7000 crore which had been a big problem in initiating many developmental programmes, he added. Railway Protection Force (RPF) have been asked to clear illegal encroachment from railways land in many stations, he said. Frequent surprise checks would be made to review level of safety, puncutality and cleanness of railways, to make railways a ‘consumer friendly organisation’, he said. Funds have been allocated for projects like laying tracks from Deogarh to Dumka, Koderma to Hazaribagh and Rampur to Ghosi, he said. On the protest of some JD (U) leaders that proper representation to different castes in Bihar had not been given in the Ministry making at the Centre, Singh said it is a Central Government and not Bihar Government. On the prospects of BJP-JD(U) in the Bihar Assembly elections, he said we would improve on our Lok Sabha results in the Vidhan Sabha polls. (PTI) |
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UP Govt launches festival prize
scheme to LUCKNOW, Oct 31: The Uttar Pradesh Government will launch tomorrow an attractive scheme for buyers of sweets this festival season, offering them several prizes, including TATA Indica cars and Colour TV sets. The scheme aimed at widening tax net would also include "halwais" (sweetmeat makers or sellers), who had been evading taxes as buyers had never insisted on a cash memo for their purchases, an official said today. The Finance Department estimates say that sellers of sweets just pay three crore rupees as tax every year and this is a paltry amount and just a fraction of the total tax collection which stood at 3,377 crore rupees. Explaining the scheme, State’s Principal Finance Secretary Sushil Chandra Tripathi said the consumers should insist on a cash memo for every purchase of 100 rupees. A 100-rupee-cash memo would earn the buyer one lucky coupon from the Trade Tax Department through PCOs and trade tax offices, he said. After completion of the two-month scheme being launched on November One, a draw would be held on January 18, 2000 to decide winners of three first prizes Indica Cars, 50 second prizes Colour TV sets and 200 third prize silk sarees worth Rs 2000 each. The coupons would help the department to estimate the value of "mithai" (sweetmeat) trade in the state and subsequently help in recovery of tax from the sweetmeat sellers, he added. (PTI) |
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Fresh entry tax imposed LUCKNOW, Oct 31: Luxury items like refrigerators, air conditioners, ovens, washing machines and television, besides essential items like sugar and other consumer items such as tobacco and coffee, would be dearer in Uttar Pradesh from tomorrow with the imposition of fresh ‘entry tax’ in the state. The State Government yesterday issued a list of thirteen items on which "entry tax" has been proposed to be imposed with effect from tomorrow. An ordinance in this regard would be issued today with an immediate aim to mop up additional revenue to the tune of Rs 5 hundred crore per annum, Finance Principal Secretary Sushil Chandra Tripathi told newsmen here yesterday. Describing the financial position of the state as "very grave", he said some immediate measures were required to improve the situation. The steps included some long term measures like restructuring of some revenue-earning departments, he pointed out. The list of items on which entry tax has been proposed include crude oil, natural gas, tobacco and its products, unstitched cloth priced at more than Rs 50 per meter, machines costing more than Rs ten lakh, Indian Made Foreign Liquor, all vehicles except tractors, all kinds of chemicals, nylon and polyester yarn, aluminium and luxury items like air conditioners, refrigerators, televisions, washing machines and ovens. Mr Tripathi said entry tax would be imposed on inter-district sale of these goods and a district would be treated as a unit to assess tax. The proposed tax at two to five per cent would be in addition to the existing trade tax. He said there was a monthly expenditure of about Rs 2050 crore on the salaries of employees and repayment of debts as against the receipt of Rs 1600 crore in the form of revenue and the state’s share from the Central Government. The Finance Secretary also accepted that the State Government was finding it difficult to even pay next month’s salary to the employees. In reply to a question, he said due to cash crunch even the dearness allowance might be credited to employees’ provident fund. He said the decision to impose entry tax was taken during the year 1998-99 but in the absence of approval from the Central Government and the President within six months, it could not be enforced. Mr Tripathi said the entry tax was already being collected in Punjab, Maharashtra and Karnataka and the power to impose the tax was given by the constitution. (UNI) |
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Diesel price hike takes
inflation close to three NEW DELHI, Oct 31: Inflation rate continued its upward movement and rose to 2.84 per cent for the week ended October 16 mainly on account of indirect impact of recent 35 per cent hike in diesel prices. The annual rate of inflation, based on Wholesale Price Index (WPI), recorded an increase of a 0.33 percentage points during the week to 2.84 per cent (provisional) from 2.51 per cent (provisional) in the previous week and 8.10 per cent during the corresponding week last year. The sharp rise in inflation rate is mainly due to a 1.7 per cent jump in fuel, power, light & lubricants’ index due to an increase in prices of naptha (47 per cent) and imported petroleum crude (17 per cent). The WPI for all commodities (base: 1981-82=100) recorded a 0.4 per cent increase during the current week to 369.0 (provisional) as against 367.7 (p) in the previous week. The rising trend in inflation rate is likely to persist in the coming weeks with the multiplier effect of increased diesel prices reflecting in other essential commodities. The inflation rate based on the final index for the week ended August 21, was at 2.2 per cent compared to 1.7 per cent on the provisional index. The final index for all commodities for the week ended August 21 stood higher at 361.6 as against 359.7 calculated provisionally. Inflation rate based on Consumer Price Index (CPI) for industrial workers fell to 2.1 per cent in September this year from 3.1 per cent in August and a high of 16.8 per cent during the corresponding month last year. The index for primary articles registered a marginal increase of 0.1 per cent during the week, while manufactured products’ index rose by 0.2 per cent. The index for fuel, power, light & lubricants jumped 1.7 per cent due to the increase in prices of petroleum products. Prices of commodities which fluctuated substantially during the reference week included naptha (47 per cent), imported petroleum crude (up 17 per cent), lac (up 12 per cent), non-cooking coal (up 6 per cent), motorcycles (up 13 per cent) and lac (down 12 per cent). Primary articles’ recorded a 0.1 per cent rise to 400.9 (provisional) from 400.5 in the previous week due to increase in indices of non-food articles and minerals. Index for food articles dropped to 476.0 from 477.5 a week ago due to cheaper jowar (2 per cent) and maize, barley, ragi, vegetables, fruits and condiments & spices(1 per cent each). However, prices of masur, urad and eggs from the same group recorded a one per cent rise during the current week. (PTI) |
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Punjab planning steps to bail itself out of fiscal crisis NEW DELHI, Oct 31: Mired in a financial crisis, the Punjab Government is contemplating several measures to bail itself out of the difficult situation and is in touch with the Planning Commission also in this connection, State Government sources said here today. The Government would not shy away from taking bold and challenging decisions aimed at eliminating the avoidable chunk of revenue deficit, they said, adding the process had already begun. The various measures under consideration include review of all explicit and implicit subsidies and elimination or reduction of the non-merited among them. Other steps include revamping of Public Sector Undertakings (PSUs) to improve returns on investment and attuning of the state’s policy regime with the prevailing liberalisation and globalisation to attract private and institutional investment specially for infrastructure development, the sources said. The State Government has also invited Planning Commission Deputy Chairman K C Pant to discuss the measures to improve the financial condition of the resource-rich state, they said. The Shiromani Akali Dal-BJP Government has blamed the previous Congress regime for the state’s financial difficulties, saying the present Government was welcomed by empty state coffers when it took over. The previous Congress regime left a whopping revenue deficit of Rs 1357.06 crore at the end of 1996-97, the Finance Department has said, adding this is the single largest contributor to the present day imbalance in the state’s fiscal position. According to the Finance Department, the state has been under fiscal stress ever since 1987-88 when Punjab became a revenue deficit state from a revenue surplus state. The Government recently offered major projects of roads and bridges worth Rs 3080 crore for development through private investment, the sources said. The Department of Public Works has drawn up an ambitious time-bound plan for facilitating major investments from the private sector in the development of 12 important roads and bridges projects. The Department, in consultation with Punjab infrastructure development, has also prepared and adopted a very pro-active progressive policy for encouraging private investment in roads and bridges sector, the sources said. (PTI) |
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UAE organises biggest IT exhibition DUBAI, Oct 31: To give a fitting finale to a century that brought humankind into the Information Technology (IT) age, the United Arab Emirates (UAE) has organised in Dubai the biggest IT exhibition in the West Asia in which many countries, including India, are participating. The Gulf Information Technology Exhibition (GITEX ’99 ), billed as one of the three leading IT events in the world, was inaugurated here yesterday by Deputy Ruler of Dubai and Minister of Finance and Industry Sheikh Hamdan Bin Rashid Al Maktoum. Nearly 465 exhibitors representing 1500 companies in 35 countries are taking part in the show. Among the Indian companies participating are: Infosys, MBT, KPIT and Satyam. The five-day exhibition offers a complete array of IT-related products and services. It features the latest in computer hardware and software, multimedia, corporate solutions,office automation, multi-lingual applications, office systems, on-line information services, networking, mobile comoputing, telephony, internet products computer accessories, business communication tools and graphic design products, among other things. A representative of Satyam, one of the Indian companies, said his organisation was expecting ‘good business’ at the exhibition. He said the exhibition had a ‘tremendous potential’ since IT had drawn a huge response from all over the world. (UNI) |
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