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| Grasim acquires L&T, foreign COs face inertia in 2003 NEW DELHI, Dec 25: Cement industry, upbeat on Prime Minister’s much-ambitious highway development project and....more 9.5 pc
interest rate NEW DELHI, Dec 25: Defensive on retaining 9.5 per cent interest for the 3.2 crore pf subscribers, allowing upto 90 per.....more Opening of
skies to NEW DELHI, Dec 25: Opening of the skies to foreign and private domestic airlines and liberalisation of the entire aviation......more Govt
directs oil majors NEW DELHI, Dec 24: The Government has directed Oil and Natural Gas Corp (ONGC), Gas Authority of India Ltd....more |
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Kamdhenu Ispat Ltd enters J&K market Excelsior Correspondent JAMMU, Dec 25: Kamdhenu Ispat Limited, the front-runner manufacturer of international quality steel bars in northern....more China
suspends US SHANGHAI, Dec 25: China has temporarily suspended US beef imports after the discovery of the first US case of the.....more Gold,silver
opens MUMBAI, Dec 25: Gold 99.9 purity grade and silver prices today opened an all time high this year......more Singapore’s
DBS HONG KONG, Dec 25: Hong Kong is trying to shut a web site masquerading as an online banking service for Singapore’s.....more |
Grasim acquires L&T, foreign COs face inertia in 2003 NEW DELHI, Dec 25: Cement industry, upbeat on Prime Minister’s much-ambitious highway development project and the booming housing segment, witnessed the biggest ever merger in L&T-Grasim deal, even as the foreign majors adopted a cautious path with a "wait and watch" policy in 2003. Notwithstanding the drought that hit the country in early part 2003, the Rs 30,000 crore cement industry is expecting a modest eight per cent growth even though the GDP is expected to grow 6-7 per cent. Close on the heels of "complex" Rs 2,200 crore L&T-Grasim deal, slated to become a benchmark for future M&AS, the other competitor, ACC, was all smiles with Orissa Government deciding to handover idcol cement to it. Gujarat Ambuja is trying a different strategy to give a tough fight to the bigwigs by trimming its liabilities as part of efforts to make its products competitive in the market. The industry, however, still continues to bear the brunt of high input costs along with high tariffs for power, apart from high excise, sales taxes and limestone royalty. Interestingly, the passing year was no different for Government-owned small players as they continued with losses and some of them were on the verge of going into private hands. Foreign players like lafarge, blue circle, holders bank and ital cementi had not initiated any noteworthy agressive step to consodiate their existing market share. The L&T-Grasim combine along with ACC-Ambuja duo will now hold nearly 40 per cent of the overall domestic market share. The existence of two huge units would reduce the frequent price fluctuations in domestic market. Polarisation of big domestic players will bring in checks and balances for the foreign players in future. The 17.5 million capacity L&T-Grasim deal was struck at 78 dollar a tonne capacity, well within global 68-80 dollar range for merger and acquisitions. By adding L&T capacity, Grasim would be able to raise its total capacity to 31 million tonne commanding over 22 per cent of 120 million tonne capacity for large plants. The cement demand grew at a positive rate due to spurt in construction activities, fulled by cheap home loans as low as 6.75 per cent and also due to the thrust for road construction under NHDP and Pradhan Mantri Gram Sadak Yojana. Though the cement industry grew by nearly five per cent in April-September, it expects an overall growth to over eight per cent by the fiscal end. The lower than expected growth of the industry during the first half was attributed to the ‘twin factors’ of bad monsoon and transporters strike which affected supplies in many parts of the country. (PTI) |
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9.5 pc interest rate on EPF highlight of labour min in 2003 NEW DELHI, Dec 25: Defensive on retaining 9.5 per cent interest for the 3.2 crore pf subscribers, allowing upto 90 per cent pf withdrawal for investing in Varishta Pension Bima Yojana, higher income ceiling for coverage under ESI and yet another offensive against PF defaulters sum up the story of Labour Ministry in 2003. Much to the relief of workers, Centre did away with the system of depositing one-way economy class airfare while seeking emigration clearance for jobs abroad and a blanket approval for workers going for the reconstruction works in the war-ravaged Iraq was also granted. In 2003, the workers also got a shock of their life by a historic "observation" by Supreme Court that the Government employees’ had no right to strike, which irked all the trade unions, even as Centre soft-pedalled the issue saying it would find a way out after deliberations. But Labour Minister Sahib Singh Verma, who dares to take anything head on, be it airlines staff or defaulters, had to swallow the bitter pill when a Group of Ministers could not clear bill enabling 25% seats for workers in a company board. Moreover, unorganised sector workers bill, amendments to Contract Labour Act and about a dozen other legislations including those on minimum wages and wage boards could not be presented in Parliament. Interestingly, the year saw India stealing the limelight at Ilo conference with Verma, who, otherwise, has reservations on the representation of developing countries in it, proposing an international skill development fund, which, according to him, was "unanimously" backed by all the developing nations. For an average income earner, 2003 had been spectacular since Employees Provident Fund Organisation (EPFO) virtually retained 9.5 per cent interest and ‘allowed withdrawal of upto 90 per cent for investing in the LIC scheme aimed at senior citizens. Out of generosity (in view of EPFO’s golden jubilee) or for political mileage (considering the general election), the EPFO, whose chairman is Verma, chose to go with 9.5 per cent despite the fact that no other instruments offer over 8.0 per cent in the era of soft rate bias. In fact, this has become a starting point of worry for the CBT, which has estimated about 4.0 per cent income growth and 28 per cent rise in expenditure for 2004-05 mainly due to verma’s much-technically jaded ‘re-inventing EPF and business process re-engineering’, on which, according to critics, CBT had already spent "sizeable" amount for publicity. Besides, with a ‘never seen in the market’ interest of 9.5 per cent, EPFO’s surplus has shrunk to mere a Rs 25 crore from as high as over Rs 110 crore in 2001-02. Though it might not be a concern for Verma because of the political farsight, ministry officials admit it has put a ‘perilous’ task of finding "yet another believable reason" to avoid interest rate cut in the coming fiscal considering the fact that Lok Sabha elections are to be held next year. This apparently forced Verma to scout all ways to augment EPFO’s resources for recovering about Rs 1,500 crore arrears from the employers or rather "sharks" in public and private sectors and negotiations one after another with the ailing Industrial Finance Corporation, in which EPFO’s over Rs 1,100 crore investment is still stuck. (PTI) |
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Opening of skies
to foreign, pvt domestic NEW DELHI, Dec 25: Opening of the skies to foreign and private domestic airlines and liberalisation of the entire aviation sector in the country will mark the new year, as the Government worked through 2003 to unveil a revolutionary Civil Aviation Policy next month to enhance competition and make flying easier and cheaper. These major initiatives were watershed developments in India’s aviation history this year when the world celebrated the centenary of man taking to the sky. Even as a high-level committee appointed by the Civil Aviation Ministry submitted a roadmap for the aviation sector for the next decade, the Government this month decided to allow private domestic carriers to fly to SAARC countries, including Pakistan, and give freer access to airlines from SAARC and the ASEAN nations to Indian destinations. India and Pakistan also decided to resume from January bilateral aviation links, which were snapped following the terrorist attack on Parliament on December 13, 2001. The path-breaking offer to the airlines of the asean nations to fly into four Indian metros and 18 major tourist destinations without any restriction was made by Prime Minister Atal Bihari Vajpayee at the India-ASEAN summit in Bali, Indonesia. During the year, the ministry saw Shahnawaz Hussain passing on the mantle to Rajiv Pratap Rudy, though in the process the civil aviation portfolio was downgraded from the cabinet rank to the Minister of State status. There was not much forward movement on the implementation of the Government’s budget promise of starting work on privatising and modernising the airports at Mumbai and Delhi. In fact, after shortlisting three bidders for the job of financial consultant to oversee the privatisation process, an empowered Group of Minister (GoM) decided to go in for a re-bid. The year that passed by also did not see much progress in the fleet acquisition programmes of Indian Airlines (IA) and Air India (AI). While the domestic carrier’s plans to acquire 43 aircraft at a cost of over Rs 10,000 crore went through two meetings of pre-public investment board, Air India board was yet to submit its proposal to the Government to buy 28 planes at a cost of Rs 10,589 crore. The only positive note on the fleet expansion front was the induction of four turboprop 50-seater ATR-42-320 aircraft for ia subsidiary alliance air’s operations in the northeast, with an annual financial assistance of Rs 35 crore from department of development of the northeast region. The not-so-positive scenario on fleet acquisition of ia and ai emerged at a time when all major global airlines were considering or implementing plans to launch low cost, no-frill budget airlines and expanding and strengthening their short-haul networks. Government also decided to purchase five 19-seater executive jets from Brazilian firm, embraer, for VIP travel. While four of them would be under the Indian Air Force, one would remain with the Border Security Force. (PTI) |
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Govt directs oil majors to suspend sale of cross-holdings NEW DELHI, Dec 24: The Government has directed Oil and Natural Gas Corp (ONGC), Gas Authority of India Ltd (GAIL) and Indian Oil Corp (IOC) to suspend the proposed sale of cross-holdings in the wake of cabinet decision to sell ten per cent equity each of ONGC and GAIL in the domestic market, mainly to small investors. "Since the Government wants to sell its holding in both ONGC and GAIL before March 31, 2004, these companies can wait and sell their equity later," highly-placed sources told UNI. Around 12.2 per cent equity of ONGC, 9.11 per cent equity of IOC and 9.62 per cent equity of GAIL is locked as cross-holdings. The decision to suspend the sale of cross-holdings was taken as the Government wants to get the maximum price for its shares in the wake of booming stock market conditions and also to provide an opportunity to the retail investors in the domestic market to hold shares of the blue chip Navratna public sector oil undertakings. It wants to help the market to rationalise the share prices of ONGC and GAIL on account of trading of large number of shares. The Government expects that the sale of ten per cent equity each in ONGC and GAIL could fetch a whopping Rs 12,000 crore, which is nearly 90 per cent of the budgeted disinvestment target. The modalities of sale will be finalised and implemented by the Disinvestment Ministry, but the cabinet has set up a committee comprising Finance Minister Jaswant Singh, Disinvestment Minister Arun Shourie, Law Minister Arun Jaitley and Petroleum Minister Ram Naik to monitor the sale of Government’s equity. Currently, the share holding of ONGC and GAIL with public is 0.72 per cent and 1.95 per cent, respectively, while the Government holding is is 84.11 per cent and 67.35 per cent, respectively. Financial institutions hold the balance shares in both companies. Last week, the Union Cabinet permitted oil companies to sell their cross-holdings and companies have begun work in the wake of booming secondary capital market. The sale of three leading oil companies could have fetch more than Rs 17,500 crore on the basis of current prices. LoC may be the main gainer in the investment made three years ago. The ONGC holds 9.11 per cent of IOC equity and 4.82 per cent equity while IOC invested in 9.62 per cent equity of ONGC and 4.82 per cent equity of GAIL. The gas company had invested 2.4 per cent equity of ONGC. The unlocking of cross holding will also improve the debt and equity ratio of all these companies. The oil companies have invested around Rs 5,200 crore and IOC is expected to make maximum profits from the sale of ONGC and GAIL equity as shares of both companies had risen by more than 300 per cent. ONGC is expected to gain around Rs 3,500 crore from the sale of IOC and GAIL shares. GAIL is likely to get more than Rs 1,800 crore. (UNI) |
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Kamdhenu Ispat Ltd enters J&K market Excelsior Correspondent JAMMU, Dec 25: Kamdhenu Ispat Limited, the front-runner manufacturer of international quality steel bars in northern India, has entered the Jammu and Kashmir market. The group formally launched its operational mechanism, here last evening. M/s Sapcon Steel Private Limited, Akhnoor Road, Jammu, has been appointed as sole distributor of the company in Jammu. While speaking on the occasion, Director of Kamdhenu Ispat Limited, Mr Sunil Aggarwal informed that the company has launched its operational mechanism in J&K State following commissioning of its new production plant in Nallagarhm, Himachal Pradesh, which would take care of the demand-supply mechanism for Jammu. He said that Kamdhenu has introduced TMT Grade FE-550 which is a technological breakthrough in itself and has commanded a large market share among all the leading TMT manufacturing companies. It is only because of the high quality standards which the company is maintaining at its plants that we have been able to establish and maintain our presence in the market, he stressed. Listing main features of the product, Mr Aggarwal claimed that with the help of latest technology and supported by advanced features, all production units of the Kamdhenu produce highly specified HSD bars in just 18 seconds, the only of its kind of production in India. The range of products for HSD bars includes Cold Twisted Deformed (CTD) bars, Treated (TMT Gal.) bars and Stainless Steel (SS) bars, he added The group has done a business of Rs 137.48 crores in 2002-03 and has set a target of Rs 200 crores for the financial year 2003-04, Mr Aggarwal informed and added that more production units of the Kamdhenu Ispat are being set up in different States to reach out for a new horizon in increase in market share. The product launching ceremony was attended by a number of Engineers, Architects, builders, project authorities and steel dealers. |
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China suspends US beef imports on mad cow worry SHANGHAI, Dec 25: China has temporarily suspended US beef imports after the discovery of the first US case of the deadly mad cow disease, a quarantine official from China’s key importing Guangdong province said today. "The state general administration for quality supervision and inspection and quarantine ordered a suspension via telephone to the 35 bureaux under its direct leadership," the Guangdong official told . "A formal notice is expected to be issued today." The action follows the first suspected case of Bovine Spongiform Encephalopathy (BSE), or mad cow disease, in a single cow in the US Pacific state of Washington. The brain-wasting disease devastated the British agriculture industry in the late 1990s. Total US beef imports to China are estimated to rise by 11 percent to 30,000 tonnes in 2004, according to US figures. Japan and South Korea, the top two buyers of US beef, swiftly halted imports after the case was disclosed on tuesday, in a huge blow for the 27 billion US dollars cattle industry. Other countries, including Singapore, Malaysia, Hong Kong, Taiwan, Russia, Ukraine and South Africa, have followed suit. Until now, there has been no US reported case of mad cow disease. Scientists say humans can be infected by eating meat contaminated with diseased brain or spinal column material. (AGENCIES) |
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Gold, silver opens all time high
on lesser stocks, MUMBAI, Dec 25: Gold 99.9 purity grade and silver prices today opened an all time high this year at Rs 6,190 per 10 Gms and Rs 9,255 per Kg respectively on improved Christmas and marriage seasonal demand, traders at the local bullion market said here. Gold 99.9 purity grade and standard mint 99.5 purity varieties rose again by Rs 20 each and quoted a new peak high of this year at Rs 6,190 and Rs 6,145 per 10 Gm from the previous day’s close. There was some good seasonal demand from local jewellers. Sellers were hoarding their stocks in view of firm advice from foreign markets and gold was quoted higher yesterday around USd 410.25/410.75 per troy. But, all global precious metal markets were closed today on account of Christmas festival. Similarly, silver .999 fineness grade, also hiked steeply by Rs 20 and touched a new high this year at Rs 9,255 per Kg from its last finish in line with yellow metal prices, traders added. Following were the opening rates of gold and silver at the bullion market here today: silver (per Kg) .999 fineness grade : Rs 9,255 gold (per 10 Gm) 99.5 purity standard mint: Rs 6,145 gold (per 10 Gm) 99.9 purity variety : Rs 6,190 (UNI) |
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Singapore’s DBS bank warns of fake HK web site HONG KONG, Dec 25: Hong Kong is trying to shut a web site masquerading as an online banking service for Singapore’s DBS bank, the fourth bank to report a suspicious web site in Hong Kong this month. The sophisticated-looking site, at www.Dbshk.Net, sports the bank’s name and logo and has spaces for users to input their account name and password. DBS bank (Hong Kong) Ltd said it had no affiliation with the site, which was still accessible on Thursday afternoon. It did not say if any customer had reported losses because of the site, which has an address similar to DBS’s www.DBS.Com. "DBS bank has reported the fraudulent web site to the Hong Kong Monetary Authority and the police, who are working with relevant authorities to shut down the fraudulent web site," it said in a statement issued late on Wednesday. The monetary authority, the local banking regulator, said in a separate statement the web site was hosted overseas and it was liaising with the relevant authorities. The Hong Kong arms of bank of China, global banking giant HSBC holdings PLC, and UK-based schroders PLC reported suspicious web sites earlier this month. (AGENCIES) |
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National survey ascertaining
socio-economic KOLKATA, Dec 25: The national sample survey organisation under the statistics and programme implementation ministry would launch a nationwide survey on morbidity and healthcare, employment and unemployment and consumer expenditure from January next year. The survey, to be conducted for a period of six months, would cover 7,612 villages in rural areas and 4,908 blocks in the urban areas of the country. Out of these villages and blocks, 324 villages and 188 blocks fall in West Bengal. Both the Central and State Governments would be participating in the survey on an equal basis, official sources said. The survey on morbidity and healthcare has been designed to study the extent of utilization of healthcare facilities in private and public sectors, incidence of morbidity among people, extent of hospitalization, expense of treatment both as indoor and outdoor patients among others. Data’s like problems of aged persons, incidence of ailments, share of medical expenditure met by employees would be also be covered, the sources said. The data would help in estimating the prevalence of morbidity among people, access to healthcare facilities, per capita expenditure of treatment illness thereby revealing the changes in the health sector. The employment and unemployment survey would meet specific requirements of the Planning Commission for formulating vocational skill building programme that could benefit the entrants to the labour force and provide assessment of employment and unemployment situation in the country. The susrvey on consumer expenditure would help in deriving the percentage of people below the poverty line in the country. The information would be used by the Planning Commission other Central and State Ministry’s for formulating employment and poverty alleviation programmes. The survey would be used by the corporates for planning their investment policies as well as by the international agencies for deciding financial assistance to India. (UNI) |
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Merger of mills: AITUC to show
black flags PONDICHERRY, Dec 25: The workers of the AITUC-affiliatedPondicherry textile mill labour union will show black flags to UnionMinister of State for Textiles Gingee N Ramachandran during hisvisit here on December 27, to protest against his recent statementto merge the NTC-owned Swadeshi and Sri Bharathi Mills. Mr Ramachandran remarks clearly showed that he was not concernedabout the economic development of the Union Territory, AITUCsecretary V S Abishegam charged in a statement here today. He pointed out that when the minister expressed the same view inNovember this year, AITUC had written to him explaining that theproperty owned by the mills could be utilised for modernisation,enabling them to earn profits and provide employment to 4000-oddpeople. Instead of replying to the letter, Mr Ramachandran hadreiterated on December 18 that the mills would be merged.(UNI) |
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‘Dial for health’ opens 20th outlet in Mumbai MUMBAI, Dec 25: The country’s first pharmacy chain, ‘dial for health’, a subsidiary of Zydus Cadila, accredited with ISO 9001-2000 certification, has recently inaugurated its 20th franchisee in Shivaji park, Dadar, south-central Mumbai, at the hands of city’s Mayor Mahadeo Devle. According to the company release here today, ‘dial for health’ pharmacies are committed to facilitate its customers with total healthcare needs rather than only dispensing the prescribed medicines. By strictly following no substitute to doctors’ prescription policy, they explain the correct dosage to the consumer as given in the prescription, and hold health awareness drive for masses. They even orgnaise various health camps — dental, dermatology, blood pressure, body fat reduction and diabetes — in public places and in its own pharmacies free of cost. ‘Dial for health’ has a membership programme, which is enjoyed by its 28 pharmacies. With nine company-owned outlets and 19 franchisees in western suburbs, it has become the largest pharmacy retail chain in Mumbai, the release added. (UNI) Iran-India pipeline project to provide 8,00,000 jobs MUMBAI, Dec 25: The pipeline project for carrying oil and gas from Iran to India will provide jobs for 8,00,000 persons and hence Iran calls this project an international project of importance, Habibullaha Rahamani, leader of high powered trade delegation from Iran and head of the department of management and planning, Busherhr province observed here yesterday. He was speaking at the buyers and sellers meet organised by India-Iran Chamber of Commerce and Industry in Mumbai. Earlier, M M Mokhtari, council general of Islamic Republic of Iran in Mumbai informed the delegates that a feasibility report for the pipeline project will be available in March 2003. The report will be presented in a meeting in London at the same time. The 23-member delegation comprising trade industry and develoment of information technology representatives from Bushehr held extensive discussions with Indian industrialists, traders and businessmen in their stay in Mumbai. About 100 companies participated in these discussions held yesterday. (UNI |
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