Daily Excelsior...Business

Key metal prices gain on brisk festival demand .....

Canada-based FSHR to partner in 70 M project in Mumbai .....

Monnet Ispat to acquire iron ore mines in Q3 .....

BSNL tariff predatory: cellular operators .....

Adequate edible oil, sugar supply brings down inflation

NEW DELHI, Oct 26: Timely measures for adequate supply of sugar and edible oil for the Diwali season helped inflation slip below the 5 per cent to be placed at 4.95 per cent during the week ended October 11, 2003.

This is after two weeks that inflation has come down to below 5 per cent after remaining at 5.08 per cent during the week ended October 4 and 5.3 per cent during the week before that.

It stood at 4.72 per cent during the week ended September 20.

The index for "food products" sub-group under the major manufactured products group during the week ended October 11 came down by 0.1 per cent.

This was due to four per cent decline in prices of extracted groundnut oil, 2 per cent decline in imported edible oil besides lowering of prices of rice bran oil, hydrogenated vanaspati, gingelly oil and sugar by one per cent each.

Inflation had crept up to 5.08 per cent last week on account of a sharp 10 per cent increase in the prices of vegetables coupled with costlier primary products, fuel and manufactured products.

The annual rate of inflation based on final index, calculated on point to point basis for the week ended August 16 stood at 4.07 per cent as against a provisional estimate of 3.71 per cent.

On a provisional basis, the inflation averaged to 5.02 per cent during the first six months of this year.

The official wholesale price index for "all commodities (base:1993-94) for the week ending October 11, 2003 remained unchanged at its previous week’s level of 175.9 (provisional).

During the week under review, the index for fuel, power, light and lubricants group rose by 0.7 per cent to 254.8 (provisional) from 253.1 (provisional) for the previous week due to higher prices of coke (12 per cent) and electricity (2 per cent), according to figures released by the Ministry of Commerce and Industry.

The "textiles" group also came down by 1.3 per cent due to lower prices of cotton yarn hanks (6 per cent) and texturised yarn (2 per cent). However, the prices of polyster staple fibre rose by 3 per cent.

Higher prices of enamels (4 per cent) and tooth paste (2 per cent) pushed up the "chemicals and chemical products" group by 0.1 per cent.

The index for "basic metal alloys and metal products" group declined by 0.1 per cent due to lower prices of aluminium foils (3 per cent). (PTI)

India ranks fourth largest producer of fish in world

PATNA, Oct 26: India ranks as the fourth largest producer of fish in the world with the total foreign earnings from the fisheries sector reaching a level of Rs 5,815 crore during 2001-02.

Bihar Chamber of Commerce (BCC) sources said here today that the country was the second largest producer of fresh water fish after China. Recognising the importance of inland fisheries in the overall production of fish, the centre had been implementing a scheme ‘development of freshwater acquaculture’ through the Fish Farmers Development Agencies (FFDAS). These agencies provide a package of technical, financial and extension support to the fish farmers, the sources added.

A network of 429 FFDAS are functioning in the country presently, covering all potential districts of the country. Since the scheme’s inception in 1973-74 till 2000-01, about 6 lakh hectares of water area had been brought under fish culture and 6.99 lakh fish farmers trained in improved acquaculture practices through FFDAS. Over 30,135 hectare of land has been brought under scientific fish culture and 25,729 fish farmers were trained in 2002-03.

BCC sources said the the animal husbandary and dairying department under the union agriculture ministry had been implementing a central sector scheme and centrally sponsored scheme since 1964 to provide infrastructure facilities for landing and berthing of traditional fishing craft and mechanised deep sea fishing vessels.

The Animal Husbandary and Dairying Department has been undertaking directly and through the State Governments and administrations of Union Territories various production, input supply and infrastructure development programmes and welfare-orieneted schemes, besides formulating and initiating appropriate policies to increase production and prodcutivity in the fisheries sector.

To focus attention on the contribution made by the fisheries sector to the country’s economy and guide and encourage the fish farmers in their endeavour to achieve higher yield through scientifically-proved acquaculture, fish farmers day is celebrated in all states and Union Territories on July 10 every year. It was on this day in 1957, Dr Hiralal Choudhary, a Pioneer in the induced breeding technique in Indian major crops, achieved this feat.

As a result of concerted efforts by the Central and State Governments, fish production has continously been increasing in the country, reaching a record level of 5.96 million tonnes during 2000-01.

It is expected to reach the level of 6.05 million tonnes during 2002-03 compared to the output of 7.5 lakh tonnes in 1950-51. The fisheries sector is a means of livelihood for a large section of the economically-backward population in the country. More than 6 million fishermen and fish farmers in India depend on fisheries and acquaculture for their existence. (UNI)

SIDBI proposes SPV mode to reach small industries

CHENNAI, Oct 26: The Small Industries Development Bank of India (SIDBI) has for the first time in the country proposed a novel scheme to involve industry assoications in Tamil Nadu to reach the small and medium business segments by forming Special Purpose Vehicle (SPV) companies, according to SIDBI Chief General Manager N Venkatasubramanyan.

He told UNI that the SIDBI, as an Apex Financial Institution for the SSI sector, was concerned that the flow of credit, especially at the lower business segment was not forthcoming. Commercial banks were not as enthused as it was in extending credit under housing loan, car loan and personal loan products, he lamented.

The SIDBI, being a resource support institution, was not in a position to extend direct credit to such small borrowers unlike a commercial bank which had a large network of branches, he opined.

Hence, the SIDBI was exploring newer intermediaries for covering a wider range of SSI and service sector customers at the lower business segment.

Noting that the southern zonal office of the SIDBI held discussions with the Tanstia and the Itcot, he said there was a proposal to muster the support of industry associations to serve as new intermediaries for "channeling" credit to first generation entrepreneurs requiring loan of less than Rs five lakh. This would be the first time that the country’s industry associations would be involved in credit disbursement, he claimed.

The identified industry associations could set up SPV companies under section 25 of the Companies Act or any other institution as the associations would deem fit, Mr Venkatsubramanyan said.

The new intermediary would identify prospective entrepreneurs requiring such financial assistance and provide the same as a mentor, besides monitoring the aid routed through them by the SIDBI.

Tanstia Honorary Secretary Santhanam said the association was enthusiastic about SIDBI’s idea and had shown its willingness to act as an intermediary in reaching credit to the targeted group.

The Tanstia would like to cover engineering service sector in Tiruchirapalli, Madurai, Coimbatore and Hosur, besides the industrial belts at Padi, Ekkattuthangal, Perungudi and Ambattur, he said. It had formed a special committee with industry representatives for an in-depth study of the proposal, he added.

Mr Santhanam said as lending through the SPVs would be made direct eliminating intermediaries, the funds would be available at four to five per cent lower interest than the market rates. "A real good news to industrialists," he added.

The SIDBI was exploring the possibility of collaborating with industry associations in other states as well to experiment the new idea.

The SIDBI, which was set up in 1990, as an Apex Financial Institution for the SSI sector, had been actively involved in financing small-scale sector as also in promotional and development activities.

It had been set up mainly as a refinancing institution to provide resource support to state level institutions and commercial banks for on-lending to SSI sector.

The SIDBI, in the last 13 years, had maintained an annual growth rate of 13 per cent in sanction and 11 per cent in disbursement. Cumulatively, it had disbursed Rs 59,000 crore mainly through intermediaries like state-level institutions, banks as also those under direct finance schemes.

The current experiment was expected to bring in great relief to the small and medium enterprises. (UNI)

Students swap taste for health, want check on fast foods

NEW DELHI, Oct 26: Despite their strong liking for fast food, school students have urged the Government to regulate the production and sale of food products with high content of saturated fat in view of their harmful effect on health.

Participating in a youth Parliament on health, the students from ten cities of the country said the majority of children were fast food addict, so a check on these ‘convenience’ foods was a must to ensure a healthy future for them.

Excessive use of hydrogenated fat, having high content of fatty acids, coupled with minimal physical activity are increasing risk of heart diseases, obesity, diabetes and cancer, they pointed out in a resolution pased by the ‘Parliament’, organised by the Health Related Information Dissemination Amongst Youth (HRIDAY) and Student Health Action Network(SHAN) here.

The students demanded a food policy which enables all citizens to access and consume cereals, pulses, edible oils, vegetables and fruits as per the dietary guidelines set by Indian nutritionists.

The policy should provide for food labeling to inform consumers about the composition of manufactured food so that they could make informed choices, they said.

They also wanted the salt content of processed food to be lowered to protect people from high blood pressure.

The Parliament recommended that the agriculture policy should focus on providing health food to all sections of population at affordable prices.

Through another resolution, the students urged the Government to hike tax on tobacco products as increased prices were a strong deterrent for consumption of the harmful substance.

Quoting studies, they said a rise of 10 per cent in the prices of tobacco products lowered their consumption by eight per cent in low and middle-income groups.

Besides, higher income generated from increased tax can be invested in health promotion programmes as have been done by many countries like Australia, New Zealand, Thailand and Nepal, they said.

The students also took note of the loss of thousands of lives of young people and chiljren in road accidents and disability arising out of that, and passed a resolution, demanding the Government to make roads safe for children.

They wanted the Governmennt to provide safe pedestrian pathways, protected cycle lanes and signalled zebra crossing so that people could move safely without using motor vehicles.

This would reduce pollution caused by vehicular fumes and lead to increased physical activity which is a must for good health.

The ten cities represented in the ‘Parliament’, which concluded here on Friday, were Lucknow, Jaipur, Bhubaneshwar, Panaji, Kottayam, Hyderabad, Shimla, Mumbai, Ghonda and Delhi. (UNI)

Pharma exports to touch Rs 25,000 crore post-2005

NEW DELHI, Oct 26: With the branded drugs worth 55-65 billion dollars going off patent in the United States alone in the next five years, the domestic Pharma industry is all set to record a five-fold growth in the current Rs 5,000-crore exports by 2010 on the back of immense opportunities being offered by the global market post-2005.

"The post-2005 scenario qill offer opportunities galore for the Indian Pharmaceutical Companies to supply bulk drugs and formulations to the advanced markets.

"It will help the Pharma Industry register the five-fold jump in the present exports turnover and touch Rs 25,000 crore by this decade," Wockhardt chairman Habil Khorakiwala told UNI.

He pointed out that over 50 per cent of the generics sold in the us are imported, which provides a phenomenal opportunity for the country being a low-cost supplier.

Noting that the Pharma sector is showing a steady growth, Mr Khorakiwala said global sourcing of Active Pharmaceutical Ingredients (APIs), experiments and formulations are growing at a faster rate.

The past TP years have witnessed an impressive growth of the pharmaceutical industry and today, the country is the xourth largest manufacturer of pharmaceuticals worldwide.

According to a Mckinsey-FICCI-CII report, driven by a fast changing global pharma scenario, the 6.3-billion dollar domestic pharmaceutical market is poised for a four-fold growth to touch 25 billion dollar by 2010.

"The market, which grew at a CAGR of 10 per cent from 3.9 billion dollar to 6.3 billion dollar over the past five years, will reach 21-25 billion dollar by the end of this decade," observed the report.

It highlighted that four global trends — cost containment pressure, international harmonisation through patent laws, significant new technologies in research and changing domestic demographics towards an ageing and richer population — will help the Indian Pharma Industry record the exponential growth over the next decade.

As a result of these trends, the Pharma sector will witness a rapid growth in speciality branded generics and Over-The-Counter (OTC) category, while patented molecules will begin to emerge as a segment.

Overall, the domestic segment will reach 10-12 billion dollar by 2010 from the present 4.2 billion dollar, it said adding that India will consolidate its early gains in the exports of APIs and generics. (UNI)

Bamboo to play a lead role in the countcy’s economic graph

GUWAHATI, Oct 26: The economic graph of the North Eastern Region (NER) can have a new leap if cultivation and development of bamboo as an industry is taken up, the Cane and Bamboo Technology Centre (CBTC) officials feel.

This could be attained by providing technical support and making people aware on how the bamboo grasses should be cultivated and how best the bamboo growth could uniformly be obtained, they said.

The United Nation’s Industrial Development Organisation (UNIDO) has set up a Cane and Bamboo Technology Centre (CBTC) here with the primary object of generating bamboo based economic activities in the region not only for creating employment but also to being about a cohesion among the eight states of the region.

"About 75 bamboo genera with 1,250 species exist world wide and out of which 22 genera with 58 species are found in India with NER accounting for 16 of the 58 species," CBTC project manager Partha Majumdar while talking to journalists from Delhi pointed out.

He also said bamboo which is being cultivated in just 3.8 MHA area in China occupied a very important role in its economy with a bamboo economy of over Rs 18,000 crores out of which a major chunk was in the form of export earnings. India, which occupied number one position so far as the land area for the cultivation of bamboo was concerned had an economy just to the tune of Rs 1,700 crores, he added.

China could boost its bamboo economy by replacing the conventional wood products by bamboo based products globally. They have even developed beer and juices from bamboo shoots and made them popular in the global markets. There is no reason why India could not enter these areas, he said.

Bamboo based houses are ideal for earth quake prone and hilly areas, Mr Majumdar said and added in the event of a major earth quake the casualties could easily be averted as these were lighter.

He said the CBTC had already set up a pilot project for the production of bamboo board and now they were in a position to provide these technologies to the private sector enterprises for its commercial exploitation. (UNI)

Political uncertainty to loom large over markets this week

MUMBAI, Oct 26: The post-Diwali market trading beginning from Monday is likely to be in a serpentine mode throughout the week as the shadow of assembly elections in four states to be held in the first week of December has left an atmosphere of uncertainty over the psyche of the investors.

Both small investors and fii are watching eagerly the forthcoming assembly elections in four states - Delhi, Rajasthan, Madhya Pradesh and Chattisgarh. These elections are important as they are expected to set an agenda on the important issues like disinvestment of the Public Sector Units (PSUs) for the Lok Sabha elections to be held in September, 2004.

Another reason for the market to be topsy-turvy in the next week is the indices have reached to the optimum level given the fundamental situation. Hence, investors would prefer to book profit after a certain rise in the index - both at sensex and nifty.

The Bombay Stock Exchange’s (BSE) sensex could not touch the much expected 5,000 mark last week due to the profit booking by the investors. The first four consecutive days of the last week witnessed corrections both at BSE and National Stock Exchange (NSE). However, the market closed with good recovery at the bourses on the last day of the week.

The BSE’s sensex lost 173.16 points to close 4757.37 points at the end of formal trading last Friday. Similarly, the National Stock Exchange (NSE) lost 63.40 points to settle at 1506.05 points at the end of formal trading last week.

At BSE, the total market capitalisation was Rs 969,795.86 crore last week. Out of this, the sensex mobilisation in the week was 26.18 per cent at Rs 253,876.25 crore.

Similarly, the NSE’s cnx nifty lost 63.40 points at 1506.05 points at the end of the formal trading on Friday.

However, the market gained a sizeable point on the occasion of ‘Muhurat’ trading that took place on Saturday evening for a short time after Laxmi Puja.

The BSE’s sensex went up by 44.91 points to close at 4802.28 points on the first day of Samavat year 2060. All the counters at the BSE went northward. The bSE went up by 9.13 points at 1033.44 points, BSE 100 went up by 35.71 points at 2440.30 points, BSE 200 went up by 8.83 points at 604.01 points and BSE 500 went up by 28.96 points at 1846.25 points.

Likewise, the NSE’s nifty went up by 15.90 points to settle at 1521.95 points at the close of ‘Muhurat’ trading. (UNI)

Inflation falls below 5 pc, touches 4.95 pc

NEW DELHI, Oct 26: The wholesale prices-based inflation rate slid below five per cent mark at 4.95 per cent during the week ended October 11, down 0.13 per cent against 5.08 per cent during the previous period.

The rate came down despite coke prices shooting up by 12 per cent and electricity tariffs rising by two per cent.

While prices of vegetables, pulses, fruits, fish, eggs and manufactured products moved in a narrow range more or less and neutralised each others’ movements, those of certain minerals, including chromite and dolomite plunged.

The inflation rate was quite low at 3.08 per cent a year ago.

The rate remained above five per cent mark for the two consecutive weeks ended October 4 and September 28. It was 5.03 per cent during the period ended September 28, except which it remained below five per cent for the whole September. The rate remained below four per cent in August.

The wholesale price index (base 1993-94) remained intact at the previous week’s level of 175.9 points.

Because of steep hike in coke prices and rise in electricity tariffs, the index for fuel, power, light and lubricants went up by 0.7 per cent to 254.8 points.

On the other hand, prices of chromite plummetted by 29 per cent, dolomite plunged by 21 per cent, vermiculite fell by 10 per cent, fire claq moved down by Mice Paricent, Laajing to a whoppingi3.4 dip in the index for minerals group at 116.2 points.

Among food articles, masur rose by 4 per cent, while arhar and bajra were higher by two per cent each and eggs, fruits and vegetables, gram, wheat and ragi inched up by one per cent each. Their rise was neutralised by fish marine, which fell by 3 per cent, and a two per cent decrease in prices of maize, fish-inland and moong. Jowar, condiments, spices and barley also inched down by one per cent each. Overall, the index for food articles group inched up by 0.2 per cent.

The index for non-food articles declined by 0.5 per cent due to lower prices of soyabean (7 per cent), gingelly seej (4 per cant), copra (3 per cent) and niger seed, castor seed, groundnut seed and raw cotton (1 per cent each). However, the prices of tobacco (6 per cent), raw rubber and raw jute (2 per cent each) and sunflower (kardi seed), and rape and mustard seed (1 per cent each) moved up.

Among manufactured products, cotton yarn-hanks shed six per cent, aluminium foils went down by 5 per cent, while solvent extracted groundnut oil fell by 4 per cent. However, bran of all kinds and enamels moved up by 4 per cent each. The index for the group declined by 0.2 per cent.

The inflation rate for the week ended August 16 has been revised to 4.07 per cent as against provisional estimate of 3.71 per cent. TPE final indax stood at 173.8 points against 173.2. (UNI)

Key metal prices gain on brisk festival demand

MUMBAI, Oct 26: On the eve of ‘Muharat’ trading at the beginning of Hindu calendar Vikram Samvat Year 2060, prices of select ferrous and non-ferrous metals increased today on encouraging global advice along with improved festival demand from industrial users, traders at the Bombay Metal Exchange (BME) here said.

BME president Ashok Bafna told UNI copper, brass and aluminium prices would fluctuate between the range of Rs 100 and Rs 300 per quintal depending upon supply and demand along with global market, particularly London Metal Exchange (LME), which is at present in stronger position in world markets.

In India, there are only three big producers of copper such as Hidustan Copper Ltd, Sterlite copper and Birla Copper Ltd. There is a shortage of over 50 per cent in copper production against higher demand F Om Industrial sectors. The gap between supply and demand is about 70 per cent, which forces India to import copper from countries like USA, UK, Australia and other developing countries.

The Union Government should give permission to exploit more quantities of copper from mines in the country to reduce traders dependence on imports, Mr Bafna pointed out.

He urged the Union Government to reduce import duty on copper from the present 45 per cent to 30-35 per cent tentatively.

In Muhart trading, prices of ferrous metal (per quintal), copper heavy and its utensils hiked by Rs 61 each, while brass scrap utensils and its cuttings also advanced by Rs 25 each.

In non-ferrous metal group (per quintal),Copper wire bars price shot up by Rs 61, while aluminium ingots, zinc slab and lead ingots too moved up by Rs 11, Rs 11 and Re one respectively. Tin slab and nickel cathode prices rose by Rs two and Re one respectively.

Traders attributed the positive trend in the market to encouraging demand from industrial users, along with strong advice from London Metal Exchange (LME), Delhi, Kolkata and other centres.

Trading in the metal market will remain officially closed tomorrow (Monday) on occasion of Bhau Bij, a BME spokesperson said.

Following were the rates (in rupees per quintal):

Ferrous metals: copper heavy 11,811, copper utensils 10,811, brass scrap utensils 8,751, brass iuttings 9,251, aluminium atensils 7,850.

Non-ferrous metals: copper wire bars 12,911, aluminium ingots 9,411, zinc slab 7,011, lead ingots 4,351, tin slab 341 (per Kg), nickel cathode 641 (per Kg). (UNI)

Canada-based FSHR to partner in 70 M project in Mumbai

NEW DELHI, Oct 26: Global operator of luxury hotels Four Seasons Hotels and Resorts (FSHR), Canada, has tied up with India’s magus estates and hotels pvt ltd for a 70-million-dollar venture to be located at Worli in Mumbai.

The 35-storey hotel, to be called four seasons hotels Mumbai, will be overlooking the Arabian sea and is expected to be open by 2005.

Four seasons hotels and resorts founder and CEO Isadore sharp told newspersons here Friday that India was an important location for his company.

"India is a very important market for four seasons and we are delighted with this new opportunity.

"We believe we have found exactly the right project in Mumbai and look forward to creating the best hotel in the market," he said.

Four seasons hotels and resorts currently manages 58 properties in 27 countries.

Magus estates and hotels Pvt Ltd owner Shiv Jatia said his company was delighted to be partnering four seasons hotels and resorts for their venture in India.

"Four seasons hotel Mumbai will set new standards for luxury and service in India," he added. (UNI)

Monnet Ispat to acquire iron ore mines in Q3

NEW DELHI, Oct 26: Monnet Ispat Ltd (MIL) is negotiating for acquisition of iron ore mines and is expected to close the deal during the third quarter of the current financial year.

"We are in talks with the party to acquire iron ore mines and, hopefully, will strike the deal in the current quarter itself," sources told UNI here today, refusing to divulge the details of the acquisition deal.

The sources confirmed that the expansion in the capacity of sponge iron and steel at the existing facility at Raipur is likely to be fully operational by december this year. This would further boost the turnover and profitability of the company.

Pointing out that the company’s work on the coal mining project at Raigarh is also progressing as per schedule, the company said coal from the mine should be ready for captive consumption by March next.

MIL, which recorded a 122 per cent rise in net profit at Rs 90.40 crore in the second quarter of the current fiscal against Rs 40.80 crore in the corresponding period last year, expects a significant reduction in the cost of production after the captive coal becomes available for production.

During the financial year 2003-04, the company is eyeing a quantum jump in turnover from the present level of Rs 200 crore to around Rs 500 crore based on the company’s consolidation plans, which include both backward integration as well as capacity expansion. (UNI)

BSNL tariff predatory: cellular operators

NEW DELHI, Oct 26: Cellular operators have charged Bharat Sanchar Nigam Ltd (BSNL) with trying to under cut them by offering "anti-competitive tariff."

In a letter to Department of Telecom (DoT) chairman Vinod Vaish, Cellular Operators Association of India (COAI) said BSNL has just announced very aggressive tariff such as 60 to 70 per cent lower isd rates and a meagre telephone rental of Rs 99.

COAI’s letter comes in the wake of a proposal by the Telecom Regulatory Authority of India to impose Access Deficit Charges (ADC) totalling Rs 4,000 crore on cellular and other private telecom companies for using the BSNL network for routing calls.

"We object to the levy of any access deficit on cell-to-cell calls since this would be incorrect and irrational. When the cellular subscriber or operator is not using the fixed network it would be unfair, incorrect and illegal to burden him with a cost related to the fixed network," COAI Chairman T V Ramachandran said in the letter sent on Friday.

Further, BSNL does not have any access deficit. There is simply no evidence of this from their operational results year after year, which are continuing to show a healthy surplus, the association said.

"Levying access deficit on cellular operators would therefore clearly amount to compelling the loss-making cellular sector to subsidise the profit-making BSNL, which could then use it to introduce more anti-competitive tariffs to the detriment of cellular," Mr Ramachandran said.

Also, there is still no evidence of accounting separation in BSNL and this is the fundamental pre-requisite to be able to first demonstrate that the access call business of BSNL is having any deficit at all that is attributable to trai-mandated tariffs.

COAI urged the authority to first reveal the revised estimate with details of methodology followed to determine access deficit. The authority should then have a consultation with the key stakeholders before taking any decision on the issue.

"In conclusion, we urge the authority to not announce any access deficit or access deficit charge until transparently and comprehensively shared and agreed with the key stakeholders," the cellular operators said. (UNI)