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| Automobile exports jump 57 pc in Apr-Oct ‘03 NEW DELHI, Nov 23: Automobile exports from India grew a healthy 57 per cent in the first seven months of this........more Vashishtha-Philip
panel NEW DELHI, Nov 23: A technical committee has recommended reduction in foodgrains buffer maintained by the.....more Phase out
farm NEW DELHI, Nov 23: The International Monetary Fund (IMF) and the World Bank have called upon the WTO.....more NEW DELHI, Nov 23: A sharp fall in the prices of food products pulled down the annual rate of inflation to 4.88......more |
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PSBs net interest income may grow with rise in rates:RBI repo MUMBAI, Nov 23: Banking entities especially the Public Sector Banks (PSBs), which made hefty profits in the....more India
turns as a major MUMBAI, Nov 23: Thanks to the international partnership and the decision to channelise venture capital into bio.....more Saras
over-weight: test BANGALORE, Nov 23: India’s efforts to develop an indigenous civilian aircraft have suffered a blow with the 14......more Telecom
exports to US NEW DELHI, Nov 23: Telecom equipment exports from India to US and Canada have gone up by a hefty 919 per...more |
Automobile exports jump 57 pc in Apr-Oct ‘03 NEW DELHI, Nov 23: Automobile exports from India grew a healthy 57 per cent in the first seven months of this fiscal to 2,54,589 units, primarily driven by motorcycles and passenger cars. Two-wheelers were the engines for the growth and contributed more than half to the cumulative export tally with shipments of 1,42,263 units in April-October ‘03 against 94,034 units in the same period last year, according to figures provided by the Society of Indian Automobile Manufacturers (SIAM). Motorcycles, the accelerators in this segment, saw exports cross the six-figure mark to 1,01,209 units (66,440), thanks to healthy shipments by Hero Honda, Bajaj Auto and TVS motors. On the other hand, Maruti Udyog, Hyundai Motor India and Tata Motors helped passenger cars post a 75.18 per cent jump with overall exports touching 62,957 units against 35,938 units in April-October ‘02. Overall, passenger vehicles, including utility and multi-purpose vehicles, saw exports jumping 77 per cent to 65,374 units (36,939) during April - October, 2003. Three-wheelers also found acceptance abroad on the rise with exports jumping 57.8 per cent to 39,004 units from 24,703 units in the first seven months of last fiscal. Almost all the weight to this figure was provided by passenger carriers where exports touched 38,510 units (24,323), Bajaj auto finishing as the heaviest with overall three-wheeler exports crossing 38,000 units. Commercial vehicle exports saw relatively slackened growth with a jump of 22 per cent to 7,948 units against 6,538 units shipped in April-October 2003. It was a mixed report card for heavyweights Ashok Leyland and Tata motors in this segment with the companies improving figures in some sections, while witnessing a decline in shipments in the others. Exports of medium and heavy commercial vehicles jumped by 23.3 per cent to 3,546 units, while light commercial vehicles saw a growth of 20 per cent 4,402 units. The upbeat growth was not witnessed in the month of October where exports jumped just close to ten per cent to 33,258 units against 30,184 units in the same month last year. (UNI) |
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Vashishtha-Philip panel suggests
grain import NEW DELHI, Nov 23: A technical committee has recommended reduction in foodgrains buffer maintained by the Centre and suggested import of 3.6 million tonnes wheat and rice annually to maintain part of this stock in line with the WTO commitments of the country. Vashishtha-Philip committee on Buffer Stocking Policy (BSP) for the 10th five year plan suggested that the buffer be scaled down to a minimum 126 lakh tonnes and maximum 218 lakh tonnes in July-September quarter from the current requirement of 243 lakh tonnes during the period. This would be in line with the decline in poverty level and change in consumption pattern across regions and seasonal variations in grains prices, it said. It recommended that the "stabilisation factor" part of the buffer be partly maintained by importing two million tonnes rice and 1.6 million tonnes wheat. A significant quantity maintained as part of buffer not uniformly distributed over different quarters of the year is the "stabilisation factor" which takes into consideration the seasonal variations in prices of foodgrains. Food minister sharad yadav said the new BSP might not accept all the recommendations of the committee and will ensure enough stocks for the "supreme food security interests of the country". The BSP is now being formulated by the food ministry after studying the group’s recommendations and will then be taken up by the cabinet. The committee said FCI could rely entirely on domestic procurement for building annual 16 million tonnes buffer stock for PDS and welfare schemes. Yadav said the new BSP will aim at reducing the huge buffer carrying cost estimated at Rs 2631 per tonne of grain in 2002-03 and cut on the Rs 8066 crore cost incurred in carrying grains during last fiscal. It would seek to prevent alleged corruption in FCI in procurement, storage and distribution of grains, he added. The Vashishtha-Philip committee said if under WTO provision, ‘De Minimus’ market access upto three per cent of domestic consumption is to be allowed, India could go in for imports of two million tonnes of rice and 1.6 million tonnes wheat annually, which is about 40 and 35 per cent of rice and wheat component of the yearly "stabilisation factor". It estimated that the minimum stock would incur a carrying cost of Rs 1,640 crore in the first year leading to a saving of Rs 6,400 crore. The panel recommends a minimum grains stock of a mere 90 lakh tonnes in April-June and 126 lakh tonnes in July-September against the current buffer of 158 and 243 lakh tonnes for the two respective quarters. The maximum stocks recommended for these quarters which includes the "Stabilisation Factor" (SF) are 131 and 218 lakh tonnes. The panel not only estimates each component of the buffer at an all India and seasonal levels but also the zonal level taking into account the regional requirements. The requirement is recommended through three different components of base level stock, PDS and welfare component and SF. The PDS and welfare scheme requirement is estimated at 56 lakh tonnes and 41.7 lakh tonnes for rice in 2002-03. For wheat it is estimated at 41.1 and 21.7 lakh tonnes each. (PTI) |
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Phase out farm
subsidies to resume trade NEW DELHI, Nov 23: The International Monetary Fund (IMF) and the World Bank have called upon the WTO members to phase out trade-distorting farm subsidies and other domestic support to agriculture for breaking the Canczn impasse. "Progress can be made if the negotiations are based on early, concrete and ambitious commitments on agriculture, including reductions in border protection and a time-bound phase-out of the various forms of export subsidies," IMF managing director Horst Kvhler and World Bank president James D Wolfensohn said. In a letter to Heads of Government of member countries, they said, "we can not allow the impasse at Canczn to dash the hopes vested in the Doha agenda. Expanding trade by collectively reducing barriers is the single most powerful tool that countries can deploy to reduce poverty." Developed nations provide subsidies worth 320 billion dollar annually to their agriculture. At the World Trade Organization (WTO) Canczn ministerial meet, India, Brazil, China and other developing countries stood firmly against the lack of concern for development issues of the third world, particularly agriculture, leading to the collapse of talks. Terming the WTO meeting scheduled for December 15 as "critical", Mr Kvhler and Mr Wolfensohn said talks could be resumed if developed as well as developing coutries were willing to be fully engaged and to take on substantive obligations concerning market access in manufactures, agriculture and services. On the Singapore issues, it said, ‘’...The first step towards flexibility is to consider each issue separately to allow countries to build better practices consistent with their development, trade, and financial needs and objectives.’’ Mr Kvhler and Mr Wolfensohn said the Cancun failure had made it imperative to rise above entrenched negotiating positions and create the necessary conditions for a successful conclusion of the round. "We believe that the talks must be based on the common understanding that liberalization over time will benefit all countries. Trade liberalization is not a ‘concession’, but a step towards helping to promote opportunity and productivity that benefits the society that takes it," the letter quoted them as saying. In the letter, the bank and fund reaffirmed their commitment to help member countries to take full advantage of the opportunities of more open trade and to also help them manage the risks. "We can help countries design policies, institutional reforms, and investment programs aimed at addressing key obstacles to trade expansion and at increasing competitiveness." Besides, they said the brettenwood sisters were willing to help Governments assess adjustment needs and implement measures to support affected population groups. "IMF and World Bank can tailor the lending to respond to the specific challenges posed by the Doha development agenda," the letter said. (UNI) |
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NEW DELHI, Nov 23: A sharp fall in the prices of food products pulled down the annual rate of inflation to 4.88 per cent for the week ended November 8 from 5.01 per cent for the previous week. The wholesale price index-based rate was 3.45 per cent during the same period last year. It is still higher than estimated by the Reserve Bank of India in its mid-term credit policy. The Central Bank has forecast the rate in the range of 4-4.5 per cent for this fiscal. The wholesale price index (base 1993-94) was unchanged at its previous week’s level of 176.1 per cent. The indices for manufactured products and fuel, power, light and lubricants remained unaltered at their previous week’s level of 156.3 and 253.3, respectively. The index for food products group declined by 1.6 per cent to 164.4 due to lower prices of oil cakes (12 per cent), gur (3 per cent), solvent extracted groundnut oil, rice bran oil and soyabean oil (2 per cent each) and groundnut oil, imported edible oil and ghee (1 per cent each). However, the prices of bran (6 per cent), sooji, maida and atta (2 per cent each) and gingelly oil, hydrogenated vanaspati and coconut oil (1 per cent each )moved up. The index for textile group rose by 1.5 per cent to 131.9 due to higher prices of cotton yarn-hanks (5 per cent), synthetic yarn and cotton yarn-cones (3 per cent each) and tyre cord fabric(2 per cent). However, the prices of woollen yarn (3 per cent) and acrylic yarn (1 per cent) declined. Due to marginal increase in prices of paper and pulp, the index for paper and paper product group rose by 0.1 per cent to 173.4, whereas the index for chemicals and chemical products group fell by the similar percentage to 176.3 because of lower prices of epoxy resins (21 per cent) and purified terephthalic acid (2 per cent). The index for non-metallic mineral products group rose by 0.8 per cent to 146.4 due to higher prices of electrodes (6 per cent) and building bricks (2 per cent). Higher prices of lead ingots (11 per cent), bright bars (6 per cent) and bars and rods (2 per cent) resulted in 0.4 per cent increase in index for basic metal alloys and metal products to 171. The index for machinery and machine tools also rose by 0.2 per cent to 132.9 in the wake of higher prices of rubber insulated cables (6 per cent), other cables (5 per cent) and PVC insulated cables and enamelled copper wires (1 per cent each). The index for primary articles declined by 0.1 per cent to 183.5 despite a similar rise in index for food articles to 186. The index for food articles had risen during the week due to higher prices of mutton (5 per cent), fish marine, poultry chicken and tea (4 per cent each), moong, barley and maize (2 per cent ) and wheat, fish inland and eggs (1 per cent). The index for non-food articles grooup declined by 0.3 per cent to 182.5 due to lower prices of cotton seed, safflower and gingelly seed (2 per cent each) and raw rubber, rape and mustard seed, groundnut seed, raw cotton, linseed and raw jute (1 per cent each). However, the prices of raw wool (6 per cent), niger seed (3 per cent), tobacco and soyabean (2 per cent each) and copra and castor seed and raw silk (1 per cent each) moved up. The final inflation rate for the week ended September 13 stood at 4.59 per cent as against provisional 4.35 per cent while the final wholesale price index for the week stood at 175.4 compared to provisional 175. (UNI) |
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PSBs net interest income may
grow with MUMBAI, Nov 23: Banking entities especially the Public Sector Banks (PSBs), which made hefty profits in the declining interest rate regime, are likely to witness a positive impact on their net interest income if rates begin to rise, according to a Reserve Bank of India report. The banking sector as a whole was expected to have a positive impact of 4.9 per cent on net interest income if the interest rates grow by two per cent, RBI in its "report of trend and progress of banking in India 2002-03". Among the bank groups, the gains due to rise in interst rates (of two per cent) would be largest for public sector banks, the RBI said. However, fall in rates of same proportion would bring maxium benefit to private sector banks, old and new, net interest income, the report said. The foreign banks would see least impact on their net interest income of either fall or rise interest rates, RBI said. The net interest income takes into account the interest earned and payment (interest) made on liabilities and risks arising from changes in rates, it said. RBI said the interest rate risk positions were dynamic. There could be appreciation or depreciation in the value of banks securities portfolio due to shifts in rates. Banking entities follow a conservative accounting practice in respect of unrealised capital gains on investment portfolio and therefore, have latent reserves which act as a cushion in th event of interest rate shock, it added. (PTI) |
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India turns as a major R&D destination MUMBAI, Nov 23: Thanks to the international partnership and the decision to channelise venture capital into bio-technology, now India is fastly turning into favourite destination for low cost and high quality research and development (R&D) for pharmaceutical industry. According to Deputy Drugs Controller of India (west zone -Mumbai) Dr M Venkateswarlu, the R&D scope for pharmaceutical industry is immense in India and the Government is all set to encourage more ventures in this sector. "More and more companies are setting up their R&D centres in the country and this is a positive sign in making India as a hub for R&D. The Government has already earmarked Rs150-crore for exploring R&D possibilities", Dr Venkateswarlu told UNI. Recently, seven to eight companies have set up their R&D centres with fair facilities to venture into discovery purposes, he said. "With the costs of developing pharmaceutical products growing dramatically, we have seen estimates that R&D in India could result in savings of 20 to 30 per cent for development of a new medicine, without any sacrifice in quality and in a shorter time-frame", said Pharmaceutical Manufacturers and Research of America(PHTMA) associate vice president Susan K Finston. In the past two years, we have seen a mind-shift so that both within and outside India there is now widespread recognition of the benefits of international partnerhips and a heightened awareness of the urgent need for greater protection for the intellectual property associated with pharmaceutical and biotechnology products, Ms Susan pointed out. Recently, Ranbaxy laboratories and Glaxosmithkiline has entered into a multi-year research colloboration to jointly develop patented drugs and Zydus Cadila has an agreement with schering ag of Germany to market and manufacture schering’s pharmaceutical products in India. Ms Susan said, "Roche pharmaceuticals has announced its intention to expand late-stage clinical trial activities, as well as to look to India for sourcing and licensing of molecules discovered by Indian companies". Pfizer is working with scientists in Mumbai to establish clinical research centres in India which will serve as a hub for the company’s research activities throughout Asia and other PHRMA members like Eli Lilly, Astra Zeneca, Novaritis etc have made a substantial commitment to clinal research in India, she pointed out. Significantly, PHRMA members will spend an estimated 32-billion in 2003 on R&D activities, and in the field of biotechnology spending on R&D is growing rapidly. A study prepared by the accounting firm ernst young earlier this reported an increase in overall global biotech revenues by 15 per cent and an increase in R&D expenditures by 34 per cent to 22-billion. More than 50 per cent of biotech revenues were reinvested in R&D activities, it said. According to Director General of Organisation of Pharmaceutical Producers of India (OPPI) Dr Ajit Dangi, the pharmaceutical industry is increasingly being recognised world over as a reliable source of good quality medicines at affordable prices. With Rs20,000-crore in domestic sales and another Rs10,000-crore in exports it has acquired its place in the world, he said. "Over 60 of our manufacturing facilities are approved by the US FDA which is the highest number outside India. India has also filed highest number of DMFs (Drug Master File) in USA in 2002, about 77 which is highest compared to any other coutry in the world. Large part of the credit for our green revolution which has made India self sufficient in food, producing over 212-million tonnes of grain every year goes to agrochemical and biotech R&D", Dr Dangi said. Recently, OPPI concluded a project report with US based - monitor group on "outsourcing opportunities in Indian pharmaceutical industry" highlights several billion dollar worth of outsourcing opportunity in R&D based activities. Interestingly, the first Exclusive Marketing Rights (EMR) granted this year is for a herbicide and India is having today a wide range of biotechnology derived products such as erythropoietin, human insulin, filgrastim, hepatitis vaccine, interferon, TPA, Sterptokinase etc which saves countless number of lives. In fact, India is slowly emerging as the largest vaccine producer in the world.Interestingly, scientists from India now make up more than 15 per cent of all PHRMA companies’ scientist. Dr Dangi added, "there is substantial potential for making India a hub for R&D for knowledge based industry. This is already begining to happen. However, to accelerate all these gains an environment which fosters research and innovation is required". The industry believes that a prudent policy can also help innovation and development of indigenous biotech products and the flourishing of an Indian academic community rich with enterpreneurial spirit. The pharmaceutical industry is asking for intellectual property protection to bring Indian into the patent mainstream as the largest major market to adopt patent protection regime in compliance with trips. There are also urging for data exclusivity which will bring multiple benefits such as better track application for marketing approval and trasparency in registration procedure and to safe guard the confidentiality of the data. (UNI) |
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Saras over-weight: test flight in doubt BANGALORE, Nov 23: India’s efforts to develop an indigenous civilian aircraft have suffered a blow with the 14-seater Saras tipping the scales at 1,000 Kg over-weight. According to data reported to the Directorate-General of Civil Aviation (DGCA), the empty weight of the aircraft is 22 per cent more than the design weight of 4,500 Kg. It is now unclear if the inaugural flight of the first prototype would happen as scheduled next month. The maiden flight has already been postponed thrice since the prototype was rolled out during the air show in Bangalore in February this year. As per the original plan the aircraft should have flown first around September 2000. Senior officials in charge of the Saras programme were not available for comment. The prestigious national programme is being managed by national aerospace laboratories’ centre for civil aircraft design and development (c-cadd), which was specially created by the Council of Scientific and Industrial Research (CSIR). CSIR Director-General R A Mashelkar, who was in Bangalore early this week, told UNI that he was seized of the problems with Saras and had called a meeting of top national aeronautics laboratories officials to review the programme. An aviation industry expert pointed out that while it was normal for a prototype to weigh 5-10 per cent more than the estimate, the 22 per cent excess flab put on by Saras and the repeated delays were a matter of great concern. "There were some problems even with the advance light helicopter in the initial stages, but the Saras’ troubles seem to be never-ending," he said. Funding of about Rs 139 crore for the Saras project was approved in June 1999 by the cabinet committee on economic affairs. With all the funds used up and more money sought, test flights have suffered repeated postponements. The project envisaged building of two prototypes and one specimen for structural testing. In the past NAL officials had blamed foreign exchange rate fluctuations, the higher cost of critical components from European sources and inflation for the cost over-runs. Saras had been designed as a multi-role aircraft, with primary functions as a feeder airline and for air-taxi operations. Originally conceived as a Indo-Soviet Union project named Saras-duet, it was dropped midway and the NAL had to revise the project to take its development on its own. Talking to UNI, HAL chairman and managing director N R Mohanty noting that HAL was keen in development of the aircraft said HAL’s designers had also chipped in with their contribution. NAL had earlier succeeded in developing an abinito all-composite trainer for flying clubs called Hansa, which was now in regular production. (UNI) |
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Telecom exports to US and Canada up 919 pc NEW DELHI, Nov 23: Telecom equipment exports from India to US and Canada have gone up by a hefty 919 per cent year-on-year in 2002-03. "Exports to the US and Canada of telecom equipment were Rs 13 crore in 2001-02. In 2002-03 exports surged to Rs 132 crore," according to electronics and computer software Export Promotion Council (ESC). The surge in exports in 02-03 was led by export of epab/epax/intercom. Transmission apparatus and satellite transmission equipment, ESC said. "The US and Canada has emerged as the second biggest export destination of telecom equipment from India," ESC Executive Director D K Sareen said. ESC estimates that that the total exports of telecom equipment from India grew from Rs 150 crore in 01-02 to Rs 500 crore in 02-03, registering a growth of 233 per cent. The major destinations for India’s export of telecom equipment during 02-03 were Singapore, Hong King and other south Asian countries. The export to these countries was Rs 162 crore, an increase of 470 per cent as compared to the previous year, when the exports clocked Rs 28 crore. The third largest destination for exports was African countries, where India exported telecom equipment was worth Rs 73 crore during 02-03 as compared to Rs 31 crore in 01-02, a growth of 133 per cent in value terms. West Asia was the fourth largest export destination for India in telecommunication equipment accounting for Rs 53 crore. In value terms, the exports to this region went up by 131 per centduring 02-03 as compared to previous year, when exports hovered around Rs 23 crore. Exports to European countries during 02-03 was Rs 37 crore, followed by Russia and CIS countries (Rs 36 crore). (UNI) |
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Income tax refunds within 4 months: Finance Ministry NEW DELHI, Nov 23: The Finance Ministry has decided to make Income Tax refunds within four months of filing of returns. The Income Tax department has been asked to process all the refund cases chronologically as per the return receipt register and make the refunds within four months at any cost, official sources said today. Efforts are being made to reduce the refund period even below four months in the interest of the tax payer. For instance, instant refunds were made to senior citizens this year, the sources said. The refund process has been computerised to eliminate errors and minimise grievances. This has already expedited the refund work this year, resulting in an outgo of Rs 18,633 crore till October 31, up from Rs 13,978 crore during the April- October period last fiscal. As part of various other measures to streamline the functioning of the Income Tax department, the Central Board of Direct Taxes (CBDT) has also decided to reduce from two months to a week the time taken to issue Permanent Account Number (PAN) and PAN card to the tax payer. The department has already handed over the PAN work to the Unit Trust of India (UTI) and the arrangement is working well, the sources said. In order to address another common grievance of the tax payer, the CBDT has withdrawn the discretionary powers given to Income Tax officials in the matter of scrutiny. The mode of selection of cases for scrutiny is now computer-based and searches would be resorted to only in cases where concrete evidence is available about evasion of tax involving huge sums. The Finance Ministry has also decided to exempt salaried employees from the purview of scrutiny this year. (UNI) |
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Rupee to stay weak on month-end dollar demand MUMBAI, Nov 23: The rupee is likely to continue its weakening trend against the US dollar during the week, weighing down to the month-end import dollar demand and the dwindling foreign fund inflows, forex dealers said. However, stepping up dollar remittance by exporters and NRIs at higher levels, could restrict the rupee’s movement in a relative narrow range between 45.75-85 level, a treasury head at private brokerage firm said. Though market players do not expect any aggressive intervention by the central bank — dollar buying or supportive dollar selling —in the wake of the Greenback’s recent sharp fall in overseas markets, foreign fund inflows could dictate the rupee’s movement to some extent, he added. As FIIs turned net sellers for three days initially in the previous week and stepped up buying on Friday, players were confused and waiting for a clear direction. Many of the players feel that the current fall of the rupee is temporary and artificial on account of the dollar buying by public sector banks and partially as a fallout of the recent resurgent India bonds redemption. The ever-increasing forex reserve which has been rising by an average USd 5,000 million in a week and stood at a record high of usd 93.663 billion, is a clear indication of the central bank’s intervention in the markets, another dealer said. (UNI) |
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Call rates to rule easy G-secs seen range-bound MUMBAI, Nov 23: The interbank call rate is likely to stay easy at sub-repo level during the week on abundant liquidity in the system and subdued demand for funds on the second week of the reporting fortnight, money market dealers said. Government bond prices are expected in a narrow band with an upward bias as the falling inflation and surfeit liquidity propelling some buying interest. However, in the absence of any strong triggers, players may largely stay sidelined resulting lacklustre trades, a dealer said. Market may also watch the rupee’s movement against the dollar, he added. During the previous week, call rate ruled easy below the repo rate at 4.00-4.50 per cent, even as the Reserve Bank of India (RBI) repos received increased subscriptions. RBI received and accepted bids worth Rs 97,765 crore in its daily repo auction during the week, translating a daily average subscription of Rs 19,553 crore and another Rs 1,425 crore on fortnightly repo auction. Bond prices which fell sharply initially during the week on hectic selling by mutual funds, later recovered on liquidity-driven buying support. The 10-year yield which rose to a high of 5.19 per cent on Tuesday, later eased towards the weekend to close at 5.10 per cent, unchanged from its previous week’s close. (UNI) FIIs shift focus from equity to debt markets MUMBAI, Nov 23: Foreign Institutional Investors (FIIs) have shifted their attention from equity to debt markets during the week ended November 21, pumping Rs 189.6-crore in debt market while investing relatively lower amount of Rs 30.6-crore in equity markets. Data available from the Securities and Exchange Board of India (SEBI) showed that FIIs who were net buyers in equities for just Rs 12.4-crore on Monday, turned out to be sellers on Tuesay, Wednesday and Thursday worth Rs 119.8-crore, before stepping up their investment once again on friday to Rs 138-crore. In debt markets, foreign funds injected Rs 346.2-crore on Tuesday, Wednesday and Friday while sold for Rs 185.6-crore on Monday. FIIs stayed away on Thursday from debt market without doing any business. Foreign funds have invested worth Rs 3,195.5-crore in the equity and debt markets in November and Rs 28,373-crore since January 1 this year. Mutual funds were net buyers worth Rs 467.69-crore in four days from Monday to Thursday of which the data were available. They invested Rs 220.41-crore in equity and another Rs 247.28-crore in debt markets. Mfs were net buyers in equity in all the four days while in debt market they bought on Monday, Wednesday and Thursday while sold on Tuesday. (UNI) |
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