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Sinha questions WB’s WASHINGTON, Sept 30: Finance Minister Yashwant Sinha has ...more
Gold calm down, NEW DELHI, Sept 30: Gold prices tumbled down on the bullion...more India’s foodgrain production to touch 490 mt in 2020 MUMBAI, Sept 30: India’s foodgrain production will touch the estimated...more |
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PROTON not
in favour FRANKFURT, Sept 30: Malaysia’s national....more
India’s GSLV to launch
MUMBAI, Sept 30: India’s first Geosynchronous......more MRTPC issues NoE against Srinivasa Telecom Ltd NEW DELHI, Sept 30: The Monopolies and.....more CRISIL assigns AAA rating to bond issue of Corp Bank MUMBAI, Sept 30: The "AAA" rating assigned to the....more No need for rupee to depreciate further: Verma MUMBAI Sept 30: Allowing the rupee to depreciate..more |
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Sinha questions WB’s approach in restricting its lending to India WASHINGTON, Sept 30: Finance Minister Yashwant Sinha has questioned the World Bank’s approach in restricting its lending to India under the nuclear-related sanctions and urged the multilateral institution to at least widen the scope of the exempted category of "basic human needs" to allow funding for the country’s infrastructural projects. Talking to newspersons here last night, he said the Bank officials and others whom he had met during the annual bank-International Monetary Fund (IMF) annual meetings here had agreed with him that "political considerations are not injected into the programmes and operations of the Bretton Woods Institutions." He, however, said he was not certain as to how they would react. Appreciating the sensitivity of the West, particularly the United States, on the proliferation issue, India has not made lifting of the sanctions as a major issue, preferring a realistic approach of making the best of the worst situation and that explains its plea for widening the definition of the basic human needs category to secure clearance for as many development projects as possible, say observers. In reply to a question, Mr Sinha said he had made a strong pitch for keeping polities out of these institutions and, " in the immediate future, the widening and, more appropriately defining the concept of basic human needs." His suggestion was that the definition should include projects for power generation and road-construction, otherwise falling in the category of infrastructure which is barred from funding as mandated by the sanctions imposed on India following its May 1998 nuclear funds. In the fiscal 1999 that ended on June 30, the World Bank granted loans to India totalling 1.05 billion dollars against 2.1 billion dollars in the previous year. According to the U.S. International Trade Commission report, India will get 1.95 billion dollars less from the World Bank and 1.69 billion dollars from the Asian Development Bank due to the sanctions this year. The Minister, in his speech at the Bank-IMF annual meeting yesterday, voiced his Government’s protest on the issue in a gruarded way. "We must consciously strive to protect the integrity and objectivity of these great international economic institutions from the encroachments of the short-term, national, foreign policy expediencies, Mr Sinha observed. When his attention was drawn to the reports that the Kargil conflict had cost Pakistan one billion dollars and asked about India’s loss in the 6-week-long border war, he said the Government had some estimates of the cost in the short and medium terms. "But, I am unable to share those figure with you yet," he added. He, however, insisted that the cost was manageable. "Looking at our overall fiscal situation and fiscal deficit, I don’t think Kargil is going to be the culprit which is going to raise the fiscal deficit in a very significant manner. We have other areas to worry about," he added. In reply to question, Mr Sinha claimed that India’s nuclear programme was not an expensive venture. "We don’t have to take an additional burden to carry out the programme. It has been going on for long and had been built into the regular budget." Mr Sinha, however, admitted that it would cost money in the long run. These questions were asked in the context of his assertion that the Bharatiya Janata Party Government, if returned to power, would strive for an annual growth of 8 to 9 per cent, unheard of before in India, to eliminate poverty and unemployment in record time of ten years. The main ingredients in his proposed policy of achieving the higher growth path included higher saving rate, increased foreign participation in the development, capital market reforms and determined efforts to reign in deficit both at the centre and in states. In reply to a question about the demand by a section of the Non-Resident Indians for a dual citizenship, he said, "I am not ruling it out but I do not see it happen in near future." It involved amendment of the constitution for which a consensus had to be built in the country before moving ahead, the Minister added. (UNI) |
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Gold calm down, silver enjoy boom NEW DELHI, Sept 30: Gold prices tumbled down on the bullion market today in stockists offering influenced by a fall in its prices in the international market while silver maintained an upward march on increased buying. Marketmen said the gold prices which soared in the late evening trading on reports of a distinctly higher prices in London were retreated at the opening session. They said gold shot up to 322 US dollar an ounce last evening but eased to close at 307 and opened further lower today at 302 US dollar. The standard gold which closed yesterday at Rs.4800 per ten gram was quoted at Rs.5000 in the late evening tradings. However, it retreated today on lack of support and closed at Rs.4725 per ten gram. "There was some natural correction in gold prices after the stunning rally last evening", said All India Sarafa Bazar president Sheel Chand Jain and described the bullishness as a temporary phase. He said the European Central Banks plan to cap gold sales mainly changed the market sentiment but rise in last two-day was totally enthused by speculative kind. Marketmen said the boom in gold prices might be a short-term gain but silver benefited the most as it shot up to recent record high in line with the firm market sentiment. They said gold continued its upward march and rose to a higher level at Rs.8400 per kilo on stockists buying. "Once the dust settle, gold will give a clear picture and anything to predict now would be a foolishness", said Chand Mehra of enchante jewellery. He said whatever would be the market trend, there was no genuine buyer in the market. Most of the customers waiting for a fall in gold prices after the Bank of England sale were surprised to see prices shooting up to dizzy heights and further postponed buying, Mehra said. Standard gold and ornaments lost Rs.75 each at Rs.4725 and Rs.4575 per ten gram. Sovereign also declined by Rs.50 at Rs.3900 per piece of eight gram. Silver .999 (ready) shot up further by Rs.175 at Rs.8400 per kilo while weekly delivery gained only Rs.70 at Rs.8295 per kilo on little support from speculators. Silver coins made further headway by rising Rs.100 at Rs.11,300/11,400 per 100 pieces in line with silver. The following were today’s quotations: Silver .999 (ready) 8400 and delivery 8295. Silver coins buyer 11,300 and seller 11,400. Standard gold 4725, ornaments 4575 and sovereign 3900. (PTI) |
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India’s foodgrain production to touch 490 mt in 2020 MUMBAI, Sept 30: India’s foodgrain production will touch the estimated figure of 490 million tonnes in the next 20 years against the 200 million tonnes produced now. According to a report published in the latest issue of the ‘Biotechnology - A global update’, India will have to replicate its green revolution for food production to reach of surpass this estimated figure. (PTI) |
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PROTON not in favour of taking equity in HM FRANKFURT, Sept 30: Malaysia’s national car maker Perusahaan Otomobil National Berhad (PROTON) is not in favour of picking up equity in Hindustan Motors Limited (HM), the C.K. Birla Group Company with which PROTON is planning to assemble and market its ‘Wira’ Sedan in India. "PROTON, as a group policy, does not take stake in such ventures worldwide and we are not looking for any stakeholding in HM as well," Mr Masaharu Iwata of PROTON told here. Proton, it may be recalled, has signed a Memorandum of Understanding with HM for exploring the feasibility for the assembly of Completely Knocked Down (CKD) units of PROTON cars at HM’s facility in Chennai. The company plans to produce 3,000 units of its ‘Wira’ models in the initial phase of operations. The feasibility study will also evaluate the different options for the car’s distribution in India. In addition to this tie-up, PROTON is also contemplating to set up a separate wholly-owned subsidiary in India for importing CKD kits of its Sedan ‘Wira’ and marketing the fully assembled cars in the country. The subsidiary —PROTON India — would be a separate entity and would supply the imported kits to HM for final Assembly. "The final assembled cars would in turn be purchased back by the subsidiary and then marketed across the country," Mr Iwata added. This is among the several options that the car major is exploring at present, he said adding that a final decision on the subsidiary would be taken in six months. Pursuant to this, PROTON will approach the Foreign Investment Promotion Board (FIPB) for a final approval for setting up the subsidiary and a liaison office in India. Mr Iwata further stated that if the feasibility study proved viable, the tie-up between PROTON and Hindustan Motors would lead to a long-term business relationship. ‘Wira’ will initially be placed in the medium luxury segment to compete with rivals like fiat Siena, Honda City, Ford Escort, Mitsubishi Lancer and Opel Astra. Production via the Assembly of CKD units in India is expected to commence in the fourth quarter of 2000. The wholly-owned subsidiary, he said, would also purchase components from Indian manufacturers and export them to its subsidiaries the world over. Proton, Mr Iwata said, has been exploring several options for India for the past two years. "We are planning to import the kits and sell them to HM for assembly. The final cars would then be marketed by us while HM would take care of the after sales service part." The company, does not, for the present, intend to set up a separate manufacturing facility for its cars. "All plans in this regard have been put on hold and we intend to use HM’s existing facility for the purpose...We will wait a while before setting up a separate unit," he added. The company aims to expand its PROTON model variants over the next few years and is eyeing a five per cent market share in India’s car market over the next three to five years. The Wira is currently produced in four-door Sedan and five-door hatchback versions. Globally, the car sports both a petrol and a diesel engine. However, the car would be introduced in India as a petrol driven Sedan with 1300cc and 1500cc engines. PROTON produces a range of cars mostly based on designs by its joint venture partner, Mitsubishi Cotors Corp, but also has a model based on a citroen car. PROTON cars are currently exported to around 50 countries, with Britain being the largest export market. Hindustan Motors launched its lancer model last year in collaboration with Japan’s Mitsubishi Motors Corp. (UNI) |
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India’s GSLV to launch "Gramsat" soon: ISRO Chief MUMBAI, Sept 30: India’s first Geosynchronous Satellite Launch Vehicle (GSLV) would soon launch a "test" satellite "Gramsat" dedicated to village development, according to Chairman, Indian Space Research Organisation (ISRO), Dr K Kasturirangan. GSLV has been developed to launch a series of Indian satellites from the Indian soil and the launching pad for the test satellite is almost in its finishing stages at Sriharikota, Kasturirangan said. This was one of the major steps taken by ISRO in the direction of cost reduction efforts in "Space Transport System" (STS). Delivering the Vikram Sarabhai Memorial Lecture on "Space agenda for the next millennium" under the auspices of Maharashtra Academy of Sciences and Institute of Engineers in Navi Mumbai yesterday, Kasturirangan said "once this test launch is successful, the third generation of Indian Satellites (INSAT) can be launched from Sriharikota". The cost cutting effort in case of sts of Indian Remote Sensing Satellite (IRS) series has already been proved successful when ISRO launched its Oceansat-I in May last along with Korean and a German satellite by ISRO’s Polar Satellite Launch Vehicle (PSLV), he said. Some of the other cost-cutting efforts for future included development of more CRYO engines, advanced propulsion system with air breathing capability and use of multiple principle of spacecraft-aircraft for repeated launches, Kasturirangan added. (PTI) |
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MRTPC issues NoE against Srinivasa Telecom Ltd NEW DELHI, Sept 30: The Monopolies and Restrictive Trade Practices Commission (MRTPC) has issued a Notice of Enquiry (NoE) against Srinivasa Telecom Limited as its advertisement on cellular service tariffs is "misleading and causing disparagement to other cellphone operators." In a recent hearing a MRTPC bench comprising chairman A N Divecha and member Moksh Mahajan, set December 17 as the next date of hearing on the notices. The MRTPC also issued a notice with respect to the interim relief application filed by BPL Cellular Limited against the advertisement and set December one for its next hearing. It also asked the director general (investigations and registration) to take over the proceeding for conducting it at the stage of the complaint proceeding. "We find that the matter requires urgent attention and an ex-parte ad interim order is required to be passed against the respondent (Srinivasa Cellcom Limited) and it need not be permitted to perpetuate its objectionable trade practice by means of the advertisement", the bench observed. The Commission prima facie found the advertisement with incorrect facts after comparing it with a letter from Department of Telecommunications (DoT) furnished by BPL Cellular Limited. The Commission noted that the advertisement showed that mobile to mobile local call charges were Rs two for Srinivasa Cellcom while other cellphone operators charged Rs three. However, BPL pointed out to the Commission that Srinivasa Cellcom charged Rs two for one, two and three minutes and Rs four for four minutes whereas BPL charged Rs 1.50 for one and two minutes and Rs three for three and four minutes. Srinivasa Cellcom has chosen to highlight only one slot though it charges more than BPL with respect to mobile to mobile local charges for one, two and three minutes, the bench observed. The balance of convenience, the MRTPC concluded, is in favour of BPL Cellular Limited and consumer public. "The applicant/informant (BPL) is likely to suffer in providing its cellphone services on account of such misleading advertisement. So far as consumers are concerned, they will be misled by such advertisement in availing services of the respondent on the basis of its advertisement". (UNI) |
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CRISIL assigns AAA rating to bond issue of Corp Bank MUMBAI, Sept 30: The "AAA" rating assigned to the Rs 200 crore bond issue, the "P1" rating assigned to the certificate of deposit programme and the "FAAA" rating assigned to the fixed deposit programme of Corporation Bank have been reaffirmed by the Credit Rating Information Services of India Limited (CRISIL). The rating reflect Corpbank’s comfortable capital adequacy, above average asset quality, healthy track record of profitability and its demonstrated managerial capabilitie, according to a CRISIL release here today. The key rating sensitivities are the ability of the bank to strengthen depositor base in the semi-urban and rural areas, reduce deposit costs while growing the deposit base in the current year, maintain fee based income in an increasingly competitive scenario and protect asset quality in the backdrop of the high growth demonstrated by the bank in the last two years, the CRISIL added. (UNI) |
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No need for rupee to depreciate further: Verma MUMBAI Sept 30: Allowing the rupee to depreciate to boost exports would not work, as the price re-adjustments will bring the currency back to its realistic levels and this approach seldom proves beneficial to any country, honorary advisor to the Reserve Bank and former State Bank of India Chairman M S Verma said today. Speaking at a meeting at the Indian Merchants Chamber (IMC) here, Mr Verma opined the rupee has depreciated from Rs 18 in the 1980s to Rs 43.50 a US dollar. "This is a substantial depreciation. The world currencies have also moved accordingly. There is no need for re-adjustments any further,"he said. Mr Verma said that the rupee requires a certain parity against the South-East Asian countries, as they are emerging as major trading partners for the country. "Also, the US dollar-rupee parity should be maintained as the dollar is a major international currency," he added. He further said that the rupee’s value against the dollar and other major global currencies should be market-determined and the exchange rate should not be pegged to any currency/basket of currencies. "Once you go in for a peg, the market is into trouble and sooner or later you will have to leave the peg," he opined. Mr Verma stated that the Real Effective Exchange Rate (REER) has fared well during the last two decades. He said that to be competitive on the export front, the economy will need to develop specialised technology. The incremental capacities we create cater to the domestic market, but for the export market the industry needs to develop specialised capability’’, he stated. (UNI) |
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