Russian bank ties up with Canara Bank

MUMBAI, Dec 6: The bank for foreign economic affairs of the USSR, or Vnesheconombank, one of Russia’s leading banks has entered into a memorandum of understanding (MoU) with Canara Bank for a line of credit (LoC) of US dollars (USd) 10 million to finance imports of Indian goods by russian importers.

Under the agreement, Canara Bank will extend finance upto 90 per cent of the free-on-board (FoB) or Cost Insurance Freight (CIF) value of Indian goods imported by Russian enterprises directly to Vnesheconombank which, in turn, would extend credit to Russian importers and also facilitate their making the payment to the Indian exporter in Indian rupees. The minimum consignment value has been fixed at USd 50,000.

Talking to reporters here yesterday, the Russian bank’s chairman Vladimir Chernukhin said the agreement was the first of its kind by his bank with a commercial bank in India. (UNI)

BILT to invest Rs 60 cr in Shree Gopal unit

YAMUNANAGAR (HARYANA), Dec 6: Ballarpur Industries (BILT) said today it will invest about Rs 60 crore in installing a state-of-the-art blade coating machine at its Shree Gopal unit here and in upgrading the plant and machinery.

This new machine is expected to raise production of this unit by about 30,000 tonnes per annum, vice-chairman and managing director, BILT, Gautam Thapar, told reporters here, adding that this will take the total capacity of the unit to about a lakh tonnes per annum.

Asked if BILT was planning to launch more products in the retail segment, Thapar said the company was evaluating the digital printing and the kind of paper it requires, and may consider launching a product in this segment.

Besides Shree Gopal, BILT has three other manufacturing units with total paper manufacturing capacity of about four lakh tonnes per annum.

It has recently shut down a unit in Chowdhwar, since it was operating at merely 18,000 tpa, with cost of people extremely high and little incentive from the State Government

Besides installing this new machine, the unit is also pursuing an upgradation programme by installing a series of latest finishing equipment besides upgrading the other paper machines. (PTI)

First Kyoto greenhouse deal snapped up by Slovakia

NEW YORK, Dec 6: The Kyoto protocol on controlling global warming isn’t yet a reality. But the first deal on greenhouse gases within the framework of the pact has been signed and sealed.

The Government of Slovakia has sold greenhouse gas emissions credits to a Japanese trading house under one of the kyoto pact’s market-based mechanisms, the broker of the deal, evolution markets Iic, said today.

The value of the deal and the identity of the buyer were not disclosed, but Slovakia sold 200,000 metric tons of carbon dioxide equivalent under the international emissions trading program, a Kyoto market mechanism. That amount is now worth roughly 1 million dollars in emissions trading markets outside of the pact.

The Kyoto agreement seeks to reduce emissions of gases such as carbon dioxide and methane that scientists say cause global warming by trapping the sun’s heat in the atmosphere. It calls for developed nations to reduce emissions by 5 percent below 1990 emissions levels. The first target period for reaching those emissions is 2008 through 2012.

US President George W Bush rejected the pact last year, saying it would harm the economy and give unfair advantage to developing nations such as China.

But Kyoto will pass if nations representing 55 per cent of global greenhouse emissions sign on. If Russia, which accounts for 17.4 per cent of emissions, signs on, Kyoto will pass.

Canada’s Parliament will hold a symbolic vote on Kyoto on Monday, and Prime Minister Jean Chretien has vowed to sign the pact by year-end. Industries such as utilities, oil refiners, and cement makers seeking to limit their liability to future greenhouse gas restrictions have already started to trade in emissions markets, particularly in Denmark and Britain.

In greenhouse gas trading, industries that can’t reduce their emissions below levels set by Kyoto or local limits buy credits from industries that have, or from green projects such as solar and wind farms or reforestation that cut emissions. In a report last year, Deutsche bank said if Kyoto passes the greenhouse gas market could reach 60 billion dollars per year. (AGENCIES)

DSE hopes trading on NSE will come by 3rd week of February

NEW DELHI, Dec 6: The Delhi Stock Exchange has expressed the hope that trading on BSE through its subsidiary — DSE Financial Services Ltd — would pick up from next month and it would get similar rights on NSE by the third week of February.

The local bourse started trading on bse since November 15 but only three to four brokers have received trading rights so far. The arrangement is that the DSE’s subsidiary would become broker of the BSE and DSE brokers would trade on DSE through it as sub-brokers of the premier exchange.

The DSE board had recently raised the equity capital of DSE Financial Services Ltd to Rs six crore from Rs 1.13 crore by infusing Rs 4.87 crore. The hike in equity would enable the local bourse to have necessary networth for trading rights on NSE.

The DSE had to shell out Rs 95 lakh, including Rs 50 lakh for card, for trading rights on BSE. The DSE will have to pay Rs 4.20 crore to NSE as deposit to get trading rights.

Besides, the local bourse has to spend to install multi-exchange software and V-sat network to provide connectivity to its members.

While DSE had sought trading rights in the cash segment only on BSE, it had applied for derivative trading as well on NSE.

NSE has referred the DSE’s proposal to SEBI, which is likely to take a decision on the first week of the next month. The NSE board would decide on the issue only by the third week of February. "Mr Ranjitkumar Samanta Ray, executive director of the Vadodra Stock Exchange, will take over as the Ed of the DSE Finanical Services Ltd on January 17. By the time other membres of the exchange would also get trading rights and we expect our turnover to rise after that," DSE director Vijay Bhushan told UNI here.

Claiming that Mr Ray has a two-year experience to make Vadodra stock exchange’s subsidiary a successful trader on BSE, Mr Sahni said DSE is eyeing a Rs 50-crore turnover per day on BSE out of average Rs 1,500 crore turnover on the premier bourse.

So far as trading on NSE is concerned, Mr Sahni said the local bourse has set a target to be the largest broker of NSE with an eye on 2.5 to three per cent of the total turnover on a daily basis.

Only 23 brokers out of 47 that applied for such rights to the Securities and Exchange Board of India have got approval from SEBU so far. BSE has approved four brokers for such rights so far. The other members would apply to SEBI once they see a pick up in trading on BSE, he said.

However, former DSE president S K Uboveja said trading by DSE brokers would get a boost on BSE only if SEBI accepts the local bourse’ recommendation to reduce the base minimum capital of each broker from Rs seven lakh to Rs two lakh.

"Brokers are already facing financial crunch. With DSE virtually witnessing tradeless days, there is no point to keep the base minimum capital at Rs seven lakh," he said.

Trading has vanished at DSE virtually with SEBI’s decision to ban badla and introduction of rolling settlement last year. Trading took place only twice last month and only once in October and that too in a couple of shares. (UNI)

Edible oil import to rise, no proposal to cut custom duty: Ajit

NEW DELHI, Dec 6: Government said today India’s edible oil imports would be higher this year on account of drought but the shortfall could be bridged at the existing rate of import duty and a cut in tariff was unwarranted.

"The kharif oilseeds output will be 25 per cent lower than the initial projections, soyabean productivity has been hit, groundnut crop position is bad. Edible oil imports will be much more than the 44 lakh tonne last season," Agriculture Minister Ajit Singh said here.

Ible oil technology, he said even in the rabi season, mustard sowing is bad with only 50 per cent of normal area having been brought under cultivation in Rajasthan.

Nevertheless, "we can import as much edible oil as we want at the existing rate of tariffs and at present there is a proposal before the Government to cut import duty on the commodity," he said.

To a query on the likely quantum by which edible oil imports will increase, he said calculation can be made based on the projected 25 per cent fall in oilseeds output to 99 lakh tonne in the kharif season.

Head of the technology mission on oilseeds, pulses and maize, S K Batra said average oil recovery from oilseeds is 30 per cent.

He said based on the likely demand for 22.8-29.4 million tonne edible oils by 2014-15, India would have to produce 76-98 million tonne oilseeds against the present 20 million tonne.

The minister said to ensure remunerative prices for oilseeds farmers, high tariff should be maintained and cheap imports avoided. (PTI)

IT Overseas to introduce branded organic rice, wheat in metros

SONEPAT (HARYANA), Dec 6: IT Overseas, producer of Daawat brand of Basmati rice, plans to introduce organic rice, wheat and vegetables in metros soon under its flaghsip brand.

"We will shortly introduce organic variety of rice and wheat under the Daawat brand in the metros," the company’s technical director S C Chawala said here.

The company has already started test marketing of organic rice and wheat in Delhi, Mumbai and Kolkata, he said adding it plans to bring organic vegetables into market by next fiscal.

IT Overseas has brought 3,000 acres under organic farming and is focusing on eco-friendly cultivation since 1997 striving to realise its future potential.

A majority of organic products will be sourced through contact farming in Punjab, Haryana and some parts of Uttar Pradesh, he added.

"We would focus more on organic products even though the cost of production is higher compared to inorganic method but then these products fetch high prices in the global market," Chawala added.

The company is hopeful of a Rs 300 crore turnover in 2002-03 as against Rs 170 crore last fiscal and about Rs 200 crore will come from exports of Basmati rice alone.

ITis also hopeful of doubling the profits to Rs seven crore this fiscal, Chairman V K Arora added.

LT overseas exports to 40 countries its flagship ‘Daawat’ Basmati rice and Saudi Arabia happens to be the main market as it absorbs nearly 60 per cent of its total exports.

Demand in major export markets like Saudi Arabia, USA and Australia is growing at a rate of 25 per cent annually, Arora said.

The price of processed Basmati rice is increasing due to less production by traditional methods and increasing demand, he said adding "we are streamlining our production process and focusing on quality".

The company would commission 400 tonne daily capacity highly mechanised production unit at Bahalgarh from early next fiscal and has invested Rs 30 crore to put up this state-of-the-art plant. (PTI)

PSU stocks surge on Govt consensus on disinvestment

NEW DELHI, Dec 6: Public sector stocks today made a strong rally in early trading after Government reached a consensus on the privatisation of oil companies after nearly a three-month deadlock.

Stocks of oil PSUs HPCL, BPCL and IOC and other PSUs including NALCO, Neyveli Lignite, Shipping Corporation, BEML, Engineers India Ltd, HMT and MTNL were up ranging from five to about 28 per cent at leading bourses, BSE and NSE.

The Bombay Stock Exchange (BSE) sensex shot up by 1.65 per cent to 3282.89 points at the end of the first hour of trading and nifty by 1.54 per cent to 1062.15 points.

Stock brokers attributed the significant rise in PSU stocks, particularly in oil counters, to reports that the Government had reached a unanimous formula for the disinvestment of HPCL through strategic sale and BPCL via market route.

"The pick up in the privatisation process following a consensus on disinvestment in HPCL and BPCL should improve market’s trading sentiments, particularly PSU stocks", Manoj Choraria, member of NSE and DSE, told PTI.

HPCL stocks surged at intra-session to Rs 293 while BPCL zoomed to Rs 233 at BSE, but profit-taking set in at higher levels, trimming part of early gains. (PTI)

DoD spurred into action after favourable
verdict on oil PSUs

NEW DELHI, Dec 6: Disinvestment Ministry today swung into action to restart the sell-off process, virtually halted due to controversies, after a favourable decision at the Prime Minister’s meeting with cabinet colleagues yesterday to go ahead with divestment in oil PSUs — HPCL and BPCL.

The ministry would now seek a meeting of Cabinet Committee on Disinvestment (CCD) after December 11, a day when the core group of secretaries on disinvestment is scheduled to meet to sort out a number of pending issues including those relating to Hindustan cables and newsprint PSU - Nepa.

Disinvestment Minister Arun Shourie is likely to take a proposal to the CCD on the quantum of HPCL equity to be put on the block for a strategic partner, to pave the way for seeking presentation from over a dozen bidders for becoming global advisors.

Shourie summoned top ministry officials at his chamber despite Eid holiday to take stock of the situation with the acceptance of a formula involving public offering of equity in BPCL and privatisation of HPCL through strategic sale route at yesterday’s informal meeting.

Sources said that CCD was being suggested after December 11, keeping in view the December 12 polls in Gujarat, a factor cited by some of the participants at Vajpayee’s meeting for deferring a decision on oil psus for some more time.

Disinvestment Secretary Pradeep Baijal along with three joint secretaries in the ministry was closeted with Shourie for over an hour, presumably to decide on the contents of the statement the Disinvestment Minister is scheduled to make in Parliament on the direction of Prime Minister.

Sources said that the ministry had paper work completed in at least 10 PSUs including Shipping Corporation of India, Balmer Lawrie, Engineers India Ltd and National Fertilisers Ltd, where a final nod was awaited.

However, in the case of National Aluminium Company (NALCO) where due deligence process was halted a few weeks ago after a hostile reception to a team of officials from a bidder hindalco (an Aditya Birla group company), the ministry is likely to go slow till the issues with the Orissa Government were resolved.

The enthusiasm of Disinvestment Ministry officials emanated from the spurt in share prices of PSUs in general and HPCL and BPCL in particualar in response to the resolution of disinvestment deadlock, which was haunting the entire process for the last three months.

HPCL, where Government may give management control to strategic partner after divestment, scrip shot up by a massive 22.1 per cent to close the day’s trading at Rs 274.85 while BPCL rose by an impressive 10.5 per cent to Rs 215.65.

The solution arrived at yesterday’s meeting was also being interperated as a verdict for privatisation of both HPCL and BPCL, where Government equity would come down to below 50 per cent after the public offering.

As of now Government has 51 per cent equity in HPCL and over 66 per cent in BPCL. (PTI)

Infosys’ Board to decide issuing ADRs on Dec 8

MUMBAI, Dec 6: The Board of Directors of software powerhouse Infosys Technologies will consider a plan to issue American Depository Receipts (ADRs) against the existing equity shares at its meeting on December 8.

The company informed this to the Bombay Stock Exchange (BSE) in a notice here today. (UNI)

SEBI to SEs: Be quick in expanding derivatives’ list

MUMBAI, Dec 6: Market regulator Securities and Exchange Board of India (SEBI) today urged the stock exchanges to speed up the process of expanding the list of derivatives.

SEBI Chairman G N Bajpai here said that "we have urged the stock exchanges to be quick and send the names of securities to be added in the present list of derivatives for the approval of the market regulator".

The SEBI Board has cleared the J R Verma Committee recommendations, including a revised eligibility criterion for derivatives’ list and allowed the bourses to select securities from the top 500 market cap stocks to be included in the derivatives segment.

The board has also decided to take up with the Central Government the matter related to the reduction in contract note from Rs 2 lakh to Rs 1 lakh. Mr Bajpai assured that the SEBI would write to the Government on the issue in a day or two. (UNI)

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