Need to change mindset to achieve 8 pc growth rate: PM

NEW DELHI, Dec 18: Prime Minister Atal Bihari Vajpayee today said there was need to change mindset so that the target of eight per cent growth rate in the 10th five-year plan could be achieved.

Intervening during question hour in the Lok Sabha, he said there was improvement in the economy and the growth target of eight per cent, though difficult, was achievable.

"We want to endeavour towards achieving this target and for this there was need to change the mindset in the country," he told Ramchandra Dome (CPI-M).

Vajpayee said it was not difficult to achieve the target of eight per cent growth rate as was made out by the member as it was a "question of collective effort and if we all wish, we could achieve it."

Replying to a question by Nawal Kishore Rai (JD-U), Minister of State for Planning and Small Scale Industries Vasundhare Raje said the 10th five year plan is yet to be approved by the National Development Council (NDC) and it is meeting on Saturday to approve it. (PTI)

NEW DELHI, Dec 18: In a major reorganisation and significant initiative to strengthen presence in the application space, HCL Technologies (HCL Tech) today announced demerger of the software export business (Softex) of HCL Infosystems (HCLI) under a scheme of reconstruction to be filed with the Delhi High Court and its merger with HCL tech subject to the receipt of all regulatory approvals.

During the fiscal ended on June 30 last, Softex reported revenues of Rs 1.70 billion and a net income of Rs 17.78 crore with a resource base aggregating 883 employees and development centres at Chennai, Kolkata and Noida.

The consideration for the transaction would be settled through the issuance of 7.09 million equity shares of HCL tech to the shareholders of HCLUI based on an independent valuation exercise carried out by Pricewaterhouse Coopers and Bansi Mehta and Company.

The merger would help HCL tech consolidate its practices in the area of end-user applications and further widen its suite of offerings in the fast growing enterprise solutions space.

HCLI is an IT company, headquarterd in Noida, and it has dominant presence in it hardware manufacturing, systems integration, reselling of proprietary software and distribution of a variety of telecom products and computers on behalf of global industry leaders like Nokia and Toshiba. The proposed merger would significantly enhance the competitive positioning of HCL tech in a market where most deals announced lately address a growing need for full outsourcing of the entire in-house it organisation and strong end-user capabilities are becoming a pre-requisite.

Mr Shiv Nadar, chairman and CEO, HCL Tech, said the merger is a strategic initiative in business consolidation, leveraging mutual strengths and syngergies to greater advantage.

The merged entity will be much better equipped to address a wider spectrum of costomer requirements as well as capture opportunities in emerging service lines, he said.

Mr Ajai Chowdhary, Chairman and CEO, HCLI, said the entire initiative is based on the premise of delivering and increasing value for all their stakeholders, including employees, shareholders and customers.

As part of the demerger, employees and customers of the professional services organisation division of HCLI will move to HCL technologies.

In another move towards increasing profitability by aligning synergistic business within HCLI fold, the company will integrate the office automation division with its 100 per cent owned networking subsidiary, HCL infinet. (UNI)

Retail inflation hits public hard as Govt harps on low WPI

NEW DELHI, Dec 18: Inflation being one form of tax, the general price movement proved fatal for the commonman this year with prices at retail level continuously moving up, though the Government claimed success in reining in the wholesale prices to around three per cent.

High prices of foodgrains and kerosene ate into the pockets of commoners even as Goverment claimed inflation (wholesale price index) was well under control owing to comfortable supply of foodgrains despite drought.

Consumer price index for industrial workers, which shows the magnitude of the impact on the people, was down marginally to 4.3 per cent in September as compared to 4.9 per cent in January this year and remains above WPI.

However, Finance Minister Jaswant Singh countered his opposition critics by pointing to the rise in retail inflation in the developed economies of US and Europe.

Though policy planners including Finance Secretary S Narayan and RBI Governor Bimal Jalan have harped on "benign" WPI inflation, there is general perception that the poor and the wage earners have been hit hard by retail inflation.

The data of Ministry of Commerce and Industry itself will vouch for the "belt-tightening" that became necessary, since index of kerosene, which is the major fuel for rural and urban poor, skyrocketed by 160 points while the index of aviation turbine fuel rose by a mere two points and energy prices for the industry dipped.

The Government’s mid-year review sought to allay fears, saying, "inflation has been restricted to just about 3.0 per cent, with foodgrains, which constitute the wage foods for the poor, registering little or no price increase."

Though the point-to-point inflation, as measured by WPI, might be low, it is still higher than the good opening of the year at 1.5 per cent, which subsequently dipped to an historic low of 0.9 per cent in the next month.

The index of primary commodities, which is second to manufactured products in weightage, did rise by 10 points, even as that for vegetables rose by over 33 points in the last 11 months.

One should not be misled by the "all is well" picture projected by "officialdom", as the WPI data gives only the movements in the wholesale market, critics maintain and point out that middlemen would appear to be cornering more benefits than the end-users.

They contend that even as Government claims to have largely prevented steep price volatility in essential commodities — rice, wheat and sugar—the ground reality seems to be diametrically opposite when juxtaposed with the retail inflation. (PTI)

66 NTC mills to be closed down

NEW DELHI, Dec 18: Government today told the Rajya Sabha that 66 unviable mills of the national textile corporation would be closed down and a comprehensive voluntary retirement scheme package would be worked out for them.

Replying to supplementaries during question hour, Minister of State for Textile Basangouda R Patil said out of a total of 119 NTC mills, 53 viable mills would be revived.

He said 30 unviable mills have been closed down under the industrial dispute act after giving VRS to employees.

The question of excess manpower in the mills that were to be revived would be addressed later, Patil said. (PTI)

RBI issues draft guidelines on securitisation ordinance

MUMBAI, Dec 18: The Reserve Bank of India today issued draft guidelines for securitisation and asset reconstruction companies and said its role under the new act would be to suggest conditions and eligibility criteria with regard to grant of registration certificate to existing as well as new entities for carrying out the business.

The apex bank is empowered to prescribe appropriate prudential norms relating to income recognition, accounting standards, capital adequacy and deployment of funds for such companisecuritisation ordinance 2002, which has been passed by both Houses of Parliament and awaiting Presidential assent, it said in a statement here.

The RBI said it was empowered to frame guidelines for such companies to take necessary measures for asset reconstruction, including management and resheduling of debt.

The apex bank can also direct either generally or to a particular class of entities or to a entity regarding deployment of funds, acquisition of any type of financial assets, their valuation and aggregate value of financial asset that can be acquired, the statement added.

Based on the recommendations of a RBI constituted groups for working of securitisation/reconstruction of companies, the apex bank has invited comments from banks, FIs and general public on the securitisation/reconstruction companies (reserve bank) and prudential norms 2002 and general guidelines for securitisation/reconstruction companies. (PTI)

India’s crude oil production marginally up

NEW DELHI, Dec 18: India’s crude oil production has registered a marginal increase to 2.742 million tonnes in November as against 2.723 million tonnes produced in the same month last year.

However, refinery production at 8.618 million tonnes was 4.7 per cent lower than refinery throughput of 9.046 million tonnes in November 2001, according to the latest data released by Ministry of Petroleum and natural gas here today.

Refinery capacity utilisation declined to 91.5 per cent in November this year when compared with 97.8 per cent utilisation a year ago.

Domestic crude oil production rose 4.2 per cent in first eight months of current fiscal to 22.117 million tonnes as opposed to production of 21.235 million tonnes in the corresponding period last fiscal.

Refinery production was up 5 per cent to 74.219 million tonnes in April-November when compared to refinery throughput of 70.662 million tonnes in the same period last year.

Refinery capacity utilisation also increased from 93.9 per cent in April-November 2001 to 96.8 per cent this year. (PTI)

Indian Airlines gives boost to Buddhist circuit

GAYA (BIHAR), Dec 18: Giving a major boost to Buddhist circuit tourism in India, the Indian Airlines today launched its air service between the most revered Buddhist pilgrim centre Gaya and Bangkok, the capital of Thailand.

Bihar Chief Minister Rabri Devi flagged off the twice-a-week flight at the Gaya airport today in what she described as a great leap forward towards promoting the tourism industry.

The flight would operate on Kolkata-Gaya-Bangkok-Kolkata sector every Wednesday and on Kolkata-Bangkok-Gaya-Kolkata sector every Saturday.

Addressing the gathering before the flagging off ceremony, Union Civil Aviation Minister Syed Shahnawaz Hussain announced that the Indian Airlines would set up a Rs 11 crore air-cargo facility at Patna soon.

Addressing the gathering, RJD president Laloo Prasad Yadav said a great dream had been realised with the introduction of the Gaya-Bangkok flight.

Stating that Bihar had vast potential for tourism, Laloo said that Centre should extend adequate assistance for it. He also called for setting up air-cargo facilities in the State. (AGENCIES)

Indian oil to invest 100 million dollars in Sri Lanka

COLOMBO, Dec 18: India’s State-owned oil company today announced plans to invest 100 million dollars in Sri Lanka’s energy sector in partnership with the island’s main oil monopoly.

The Indian Oil Corp said it will seal a deal with Sri Lanka’s Ceylon Petroleum Corp (CPC) within a week to lease an oil storage tank farm in the island’s northeastern port district of Trincomalee.

IOC’s Sri Lankan subsidiary, Lanka IOC, will also begin operating 100 gas stations throughout the island, the company’s managing director, M Nageswaran said.

Only 15 of the tanks at Trincomalee are currently in service, but the entire complex could be made operational within five years, Nageswaran said.

He said the IOC’s initial investment will be 62 million dollars for running the 100 gas stations, upgrading storage facilities and investment in a joint venture with the CPC.

The investment will be raised to 100 million dollars in five years.

IOC had entered into another 100 million dollar deal with Sri Lanka in July for the supply of 30,000 tonnes of diesel and 10,000 tonnes of jet fuel monthly for a period of one year.

The IOC entry into the retail sector was made possible when the Government de-regulated the market earlier this year.

Nageswaran said longer term plans for Sri Lanka included setting up a pipeline for distribution of petroleum products within the island. (AFP)

Plan to link Indo-Bangla border village through STP

NEW DELHI, Dec 18: The Centre plans to link 170 villages situated near the Indo-Bangladesh border in Meghalaya through satellite phone facility by August 2003 subject to timely availability of resources, Minister of State for Communication and Information Technology Sumitra Mahajan said in the Lok Sabha today.

Presently these villages are without telephone facilities, she said in a written reply.

She clarified that though Koshi and Mathura are within the specified range of 200 km from Delhi, they are in Uttar Pradesh (West) telecom circle and their boundaries do not touch the Delhi/national capital region. Hence they are not eligible for such facilities.

She said this facility is available only in towns and cities which fall within a distance of 200 km and are also within the same administrative telecom circle or where the boundaries of the short distance charging area (SDCA) are touching. Technology park: The Government ruled out the setting up of any more software technology park in Orissa as two have already been set-up in the State, said the Minister of State for Communication and Information Technology Sanjay Paswan in a written reply.

He said STP centres have already been set-up at Bhubaneswar and Rourkela. These centres are operational and functional. (UNI)

HC authorises local bodies to impose entry
tax on motor vehicles

JABALPUR, Dec 18: The Madhya Pradesh High Court has held that local bodies are competent to impose entry tax on motor vehicles as per an apex court ruling.

A five-judge constitution bench comprising Chief Justice Bhavani Singh, Mr Justice Deepak Mishra, Mr Justice K K Lahoti, Mr Justice S L Jain and Mr Justice A K Shrivastava yesterday answered the reference made by a division bench in the matter of constitutional legality and validity on two different decisions of the Supreme Court in the matter of powers to impose entry tax levied by the local bodies.

The Bus Operators Association of Jabalpur and others challenged the entry tax levied by the Jabalpur Municipal Corporation before the court and cited the apex court order related to empowerment of local bodies to impose certain taxes.

Mr Justice Deepak Mishra made a reference to the Chief Justice to place the matter before the full bench for deciding the matter on the petition of Jabalpur bus operators association for appropriate directions.

The court ruled that the entry tax levied by the municipal corporation Jabalpur was valid and the local bodies were fully competent to impose entry tax as per apex courts earlier verdict. (UNI)

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