Daily Excelsior...Business

US outwits India in deal on medicine .....

Saudi Arabia eyes WTO entry in early 2004 ....

Singapore’s PSA in terminal berth venture .....

Himachal Government all set to enforce polybag ban .....

DSE GBM approves demutualisation proposal

NEW DELHI, Aug 31: Facing rough weather in the new market conditions, the beleaguered Delhi Stock Exchange is looking for various new business models but admitted that the option of merging with BSE has not made any tangible progress.

The models are contained in a proposal on demutualisation sent by DSE to the Securities and Exchange Board of India (SEBI) and approved by the general body of the bourse recently.

The proposal, that has to be submitted by each exchange to SEBI barring a few bourses following the Kania committee recommendations on corporatisation and demutualisation of the exchanges last year, says considering the current financial position of the DSE and overall market scenario it would be difficult for DSE to sustain at the present business levels.

"Therefore it is essential that the exchange along with demutualisation explores the possiblity of implementation of new business models, which could result in the turnaround of the company," the proposal says.

The board has fixed the value of trading deposit for new members at Rs 15 lakh of which Rs 10,000 would be non-refundable.

In order to enhance the value of trading right, vibrant business model needs to be opted for by the exchange, it says.

Among the options before the exchange, the proposal lists joining trade with indonext exchange, the proposal of which has yet to be approved by SEBI converting DSE as a subsidiary of BSE and NSE participating in the commodity futures market after all necessary approvals merging with other stock exchanges, including BSE and derecognising and winding up of the exchange.

The concept of Indonext exchange has been proposed by the SEBI-appointed Mayya committee which seeks consolidation of the Regional Stock Exchanges (RSEs) on the lines of the euronext exchange of Europe. Recommendations made by the committee have been approved by RSEs.

Along with the alliance with Indonext exchange, the DSE members can look at the option to continue to trade through DSE subsidiary in securities of companies having paid up capital of more than Rs 20 crore and listed only on BSE and NSE.

As many as 114 DSE members have paid the amount of Rs one lakh each to take the membership of BSE and to operate as sub-broker of BSE and NSE through DSE financial services, a subsidiary of DSE. DSE financial services has become BSE and NSE broker.

On the commodity futures market, the proposal says members may take membership of the market individually or collectively through an arrangement by DSE. The exchange can explore the possibility of DSE setting up a subsidiary to become a member of the commodity exchange, it says.

The physical infrastructure of the exchange could be used for the operations of commodity exchange.

On the option to merge DSE with BSE, the proposal admits that there has not been any tangible progress.

The proposal says that in case of non-implementation of the business models, the exchange would have no other option but to derecognise and liquidate.

The DSE, established in 1947, registered a 15 per cent decline in revenue growth to Rs 8.80 crore last fiscal against Rs 10.41 crore during 2001-02. The exchange registered a steady decline following the SEBI decision to Ban Badla and go for rolling settlement.

The SEBI, which has received proposals from all stock exchanges, except the Guwahati Stock Exchange, on demutualisation, is expected to give its approval within three to four months. The demutualisation means segregation of trading and ownership rights in an exchange. (UNI)

FIIs net purchases of Rs 2,091.2 crore in August

MUMBAI, Aug 31: The Foreign Institutional Investors (FIIs) were net buyers in equities and debt at Rs 2,091.2 crore (US dollar 450.9 million) and Rs 136.2 crore (USd 28.9 million) respectively during the month of August, which saw the BSE sensitive index cross the 4,200 mark.

Mutual Funds (MFs) netted purchases of Rs 409.7 crore in equities but recorded heavy net inflows of Rs 2,538.2 crore in debt instruments during the eighth month of 2003, according to the data available with Securities and Exchange Board of India (SEBI) here.

FIIs were net buyers in equities for 17 trading days while it was eight days in debt market, where they did not transact any activity for three days.

MFs, on the other hand, recorded net equity purchases for 13 days and 20 days in debt market.

The foreign funds recorded their highest inflows of the month in equities at Rs 299.1 crore (USd 64 Mn) on August four followed by Rs 265.9 crore (USd 57.5 Mn) and Rs 234.9 crore (USd 50.3 Mn) on August 11 and first day of the month respectively.

In debt market, they were net buyers at Rs 442.6 crore (USd 95.7 Mn), Rs 138.5 crore (USd 29.7 Mn) and Rs 58.6 crore (USd 12.7 Mn) on August 19, five and 22 respectively.

SEBI data showed that MFs recorded their highest purchases of the month in equity market at Rs 88.58 crore on the first day of the month followed by Rs 19.04 crore, Rs 71.73 crore and Rs 69.57 crore on August eight, seven and 22 respectively.

MFs were active in the debt market and netted purchases of Rs 471.24 crore, Rs 446.23 crore, Rs 297.32 crore and Rs 263.17 crore on August 26, 25, 13 and 12 respectively.

They registered net sales in debt at Rs 70.62 crore (Aug 22), Rs 29.66 crore (Aug 28) and Rs 0.51 crore (Aug 14). (PTI)

Inflation dips to this fiscal’s lowest at 3.71

NEW DELHI, Aug 31: Inflation dipped for the seventh consecutive week, sliding to a 30-week low of 3.71 per cent during the week ended August 16 compared to 3.95 per cent in the previous week due to decline in the prices of essential items like fruits and vegetables.

The wholesale prices-based inflation rate was down by 0.24 per cent week-on-week, reaching to this fiscal’s lowest. It was slightly higher than 3.47 per cent during the corresponding week of the previous year.

For the first four months of this fiscal, the average inflation rate stood at 5.66 per cent, which is slightly higher than the Reserve Bank of India’s prediction of 5 to 5.5 per cent for this fiscal.

However, economists are of the view that the easing trend in inflation from 5.32 per cent in June-May not last long because an industrial recovery is likely to push prices up. And manufacturing activity is likely to pick up following bountiful rains this year.

The index for primary articles declined by 0.6 per cent to 180.67 from 181.7 points. In this category, the index for food articles group was down by 0.4 per cent following decline in prices of fruits and vegetables (3 per cent), jowar (2 per cent), fruits and urad, masur and wheat (1 per cent each).

However, the prices of fish-inland (3 per cent), poultry chicken (2 per cent) and maize, fish-marine and mutton moved up.

Non-food articles group index declined by 1.0 per cent due to fall in prices of soyabean (5 per cent), groundnut seed (3 per cent) and safflower (2 per cent). However, the prices of sunflower (3 per cent) and niger seed (2 per cent) increased.

The index for fuel, power, light and lubricants remained unchanged at the previous week’s level of 247.5.

In the major group of manufactured products, which also retained the index at the previous week’s level of 154.1, the prices for food products’ group rose by 0.1 per cent to 166.1 from 166.0 points due to higher prices of khandsari (2 per cent) and ghee (1 per cent).

While the prices of solvent extracted groundnut oil (3 per cent), rice bran oil, biscuits, rape seed and mustard oil and groundnut oil were down by one per cent each.

The index for textiles group rose by 0.1 per cent due to four per cent increase in the prices of cotton knitted garments and cotton shirtings.

Higher prices of printing paper white and cream laid woven paper pushed the index for paper and paper products’group up by 0.3 per cent while the rubber and plastic products segment rose only by 0.1 per cent.

Chemicals and chemical products’ group recorded a rise of 0.1 per cent in the index following the increase in the prices of super phosphate P205 (4 per cent), liquid chlorine (3 per cent), thinners, paints and caustic soda (2 per cent each).

However, the prices of all kinds of acids moved down by one per cent.

Both the index for machinery and machine tools and transport equipment and parts’ group declined by 0.1 per cent.

The final inflation rate for the week ended June 21 remained unaltered at 5.21 per cent and index (base 1993-94) at 173.8 points. (UNI)

Prises likely to rise again in retail market : Jain

Rice Bran, sunflower refined and rapeseed refined oils prices also rose by around Rs 10-15 each and quoted at weekend at Rs 365, Rs 445 and Rs 500 per ten Kg respectively owing to lack of offerings by local stockists, induced by firm advice from producing centres including, Gujarat and Madhya Pradesh.

Linseed and copra white oils also shot up by around Rs ten each and touched Rs 460 and Rs 620 per ten Kgs respectively on improved demand from industrial sectors and lesser stocksk at the domestic market.

Imported palmolein oil, too, was up by Rs five to Rs 359 on heavy festival demand mainly from retailers.

Soyabean refine, soyabean crude, sunflower crude and rapeseed crude prices fluctuated in a narrow range during the week and quoted higher around by Rs ten each which its quoted at Rs 381, 364, Rs 420 and Rs 460 per ten Kg respectively owing to lesser supply from Malaysia and Indonesia along with brisk festival demand from bulk consumers, traders added.

Kardi and castor commercial oils prices, however, esed by Rs 20 and Rs five to Rs 530 and Rs 325 respectively, owing to improved stocks supply from upcountry centres while demand was very thin from local dealers.

Among seeds (per quintal), groundnut kernel, bold and javas prices rose sharply by around Rs 50 each and quoted at Rs 2,425, Rs 3.015 and Rs 3.050 respectively on the week-ended on Aug 30.

There was improved demand from bulk consumers and exporters along with lesser stocks at the domestic market.

Similarly, sesame whitish, sesame 95/5 grades hardened by Rs 75 and Rs 25 to Rs 3,275 and Rs 1,900 per quintal respectively in sympathy with other seeds.

Kardi, sesameseed crushing, sunflower seed and castorseed prices, however, gradually came down during the week in price range of Rs 10 to Rs 25. The prices of these qualities were quoted low at Rs 1,830, 2,390, Rs 1,965 and Rs 1,485 per quintal on sustained selling pressure by stockists in view of bumper new khariff crops at the producing centres.

Traders said there was thin demand from bulk consumers, but its likely to go up due to the forthcoming festivals.

Stockists were keen to sell their stocks in view of improved supplies from Rajkot, Ahmedabad, Hyderabad and other northern regions.

These producing centres have been experiencing good rains which had a major impact on the prices, traders pointed out.

Sugar prices rises on improved festival demand:

Prices of small and medium grades of sugar went up gradually during the week and ended the week with a rise of around Rs 15 each per quintal.

Small and medium grades quoted higher at Rs 1,345/1,361 and Rs 1,390/1,450 per quintal respectively at the weekend.

Traders said there was improved festival demand from bulk consumers and retailers amid lesser stock supply from state co-operative mills which resulted in the upward trend in wholesale sugar prices.

During the last week, the co-operative sugar factories in Maharashtra accepted tenders from wholesale dealers at rates ranging from Rs 1,275/ 1,300 for small grade and for medium grade at Rs 1,305/1,325 per quintal, Ashok Jain, Secretary of Bombay Sugar Merchants’ Association, said.

The prices are likely to rise again in the retail markets during the forthcoming festival season, Mr Jain pointed out. (UNI)

Sharjah’s HFZ rolls out red carpet for Indian investors

NEW DELHI, Aug 31: Sharjah’s Hamriyah Free Zone (HFZ) is luring Indian investors with world-class infrastructure and hassle-free investment climate, promising to be an "ideal hub for global operations" and expanding business to the Middle East.

"We provide the right kind of infrastructure at HFZ to help enterprises swiftly establish their facilities. The infrastructure and the free trade culture compliments faster growth. This is an ideal platform for Indian companies seeking to get global," HFZ Director General Rashid Al Leem told UNI here.

Explaining about the zone, he said easy access to markets in Europe, Africa and Asia, Nil taxation on import/export and incomes, total ownership by non-citizens, free repatriation of profits, total freedom to employ expatriates and duty of only 5 per cent in the case of sale of products from the zone in the UAE market were major attractions to investors, especially from India.

He said it is not a matter of shifting business from India to Sharjah, but rather a matter of exploring the opportunities of expanding business into this region, which is keen to attract the fast-growing Indian companies.

Mr Leem, who is leading a four-member delegation from Sharjah to India, said, "we have come here to promote the free trade zone among the Indian community, which is also the largest investor in the zone. If they wish to go global, the modern infrastructure, one-stop centralised regulatory clearances and a tax-free regime helps them quickly move up."

At present, 26 per cent of the companies operating at HFZ are Indian and include Infosys, ICICI Infotech, Godrej Boyce and Ashok Leyland. So far 385 companies from 50 countries have established their operations in the zone.

He said that the 17-day visit to different cities of the country will help the delegation to woo Indian investors. HFZ are working closely with ASSOCHAM and exploring ways to leverage each other’s competencies.

The HFZ Director General hoped that the interaction with the chambers of commerce and trade bodies will turn into long term business relations.

"We have recently relaxed some of the terms governing investments to make it more attractive," he added.

Although there are around 2,500 free trade zones around the world, not many free zones are truly free or flexible, he said adding, "We can change our procedures on a daily basis for positive growth. Compared to other free trade zones, our advantages are the way we treat our investors being proactive to their needs."

Highlighting that companies at HFZ can target a huge customer base spread over west Asia, Africa, CIS countries and Europe, Mr Leem said, "over the last decade, UAE has become the point where East meets West."

He called upon Indian businessmen to make investments in chemicals, heavy and high-tech industries and petro-chemicals in Sharjah, which is the industrial base of UAE and has more than 45 per cent of UAE’s industry.

The zone provides various incentives such as 100 per cent foreign ownership, 100 per cent repatriation of capital and profits, no currency restriction, easy recruitment of labour, no corporate taxes, no personal income taxes, and abundant lease land for investors to build their own facilities. (UNI)

Udyog Mahotsav-2003 in Bihar from Oct 14

PATNA, Aug 31: The grand "Udyog Mahotsav-2003" aimed at bringing Bihar on the country’s industrial map would be held in the state capital in October.

The 14-day-long festival commencing from October 14 and ending on October 26 was being organised by the Bihar State Export Corporation Limited. Corpotaion managing director R S B Singh said here that the Mahotsav would be one of its kind and was being organised in collaboration with events manager Satyarth production.

He said the fair will provide a never before opportunity to the industrialists and entrepreneur who would get chance to display their products and introduce them to a wide range of consumers.

Through the Mahotsav, the corporation was planning to promote large, medium, small and cottage industries in Bihar as it provides a large consumer market for Fast Moving Consumers Goods (FMCG) and other products.

He said several big brands and leading industrialists from the state and outside dealing with food processing, leather, industrial machines, beverages, plastic products, agro products, petroleum, electronics and electricals were likely to participate in the Mahotsav.

Readymade garments with wide range of collection right from traditional to modern dresses, handloom and handicrafts, traditional arts like Madhubani paintings and other paintings of Rajasthan, Gujarat and other places would be the major attraction for the visitors.

Apart from this, other sectors, including information and technology, banking and computers would participate in the festival.

Mr Singh outlined the details of the Mahotsav and said it would provide unmatched opportunity to tap the consumer market of eastern India at a beneficial cost benefit ratio.

To be spread over 40,000 Sq Km area in Gandhi maidan, the Mahotsav would have several notable activities like buyer-seller meets, workshops and seminars. He said special emphasis has been given on recreation of the visitors by holding cultural programmes.

Doyens of classical music and folk artists would enthrall the audience.

Besides cultural bonanza, an amusement park was being set up for children where their guardians can also relax. Extra care would be taken to serve healthy refreshments through the food plazas.

According to Mr Singh, booking for the stalls of "U" to "G" category would start soon on payments through bank drafts. He said rent for the stalls had been kept reasonable, varying between Rs 17,500 and Rs 93,600.

The Mahotsav ground would have close circuit TV, guest rooms, telephone booths, security, parking facilities, proper lights and first aid facilities.

Mr Singh said an arrangement was also being made to provide adequate facilities to the entrepreneurs and industrialists for visiting the tourist spots of Patna, Gaya, Bodh Gaya, Nalanda, Rajgir, Vaishali, Nandangarh, Kesariya, Vikramshala and Lauria.

He said some rules and regulations had been framed for the participants and applications fulfilling the criterion would be selected for the Mahotsav. (UNI)

US outwits India in deal on medicine

NEW DELHI, Aug 31: By roping in African nations,the us outsmarted India and Brazil in reaching a deal on trips (trade related intellectual property rights) and public health, two weeks ahead of a key wto ministerial meeting at Cancun in Mexico.

The agreement reached at the general council meeting in Geneva allows poor countries, without manufacturing capacity, to over-ride patents and import medicine from a third country like India and meet the health emergencies relating to public health.

However, addressing the US concerns over the possible misuse of the "compulsory licensing", the deal imposes strict conditions like different packaging, on the countries exporting medicine.

Besides, the importing country has to inform the trips council whenever it finds itself into a health emergency.

According to a high level source, it became untenable for the Indian negotiators to oppose these conditionalities since they were acceptable to Africa, the mainstay of the deal. "We had always talked about taking medicine to the poor on the humanitarian ground over-riding commercial interests. It is Africa which needs humanitarian support and not India and Brazil which has a strong base for medicine manufacturing. So when Africa said yes, there was not much scope for US to oppose it",the source said.

However, he said, India would not be much affected on "substance" and is only faced with procedural hassles. It still offers big opportunity provided the intent is only to export to the country for its meeting health emergency and not to re-export the medicines to developed countries. (UNI)

Saudi Arabia eyes WTO entry in early 2004

JEDDAH, SAUDI ARABIA, Aug 31: Oil-rich Saudi Arabia expects to complete long-running negotiations to enter the World Trade Organisation this year and finally enter the body in early 2004, the country’s trade minister said on Sunday.

"We would like to finish the major steps already by the end of 2003. Very early next year, we should be in. That is our target," Minister Hashem Yamani told Reuters in an interview after signing a bilateral trade agreement with European Trade Commissioner Pascal Lamy.

The Saudis first applied to join the WTO’s predecessor, the GATT, in 1993. Talks have been slow, but the country’s efforts to enter the WTO have been accelerating recently.

The bilateral deal with the European Union, finalised on Friday, is one of the key steps Saudi Arabia has to take on its path to the WTO, as the 15-nation bloc is the kingdom’s main trading partner.

To enter the WTO, a country has to negotiate bilateral deals with current members of the trade body, as well as adopt the wto’s body of legislation.

But a meeting of the WTO committee overseeing Saudi Arabia’s entry has not met for almost three years, something Yamani wanted to rectify, saying talks could be held in October.

Saudi Arabia also has to negotiate a bilateral deal with the United States, and Yamani was hopeful over this, too.

"After Cancun we hope to sit down with them and finalise a bilateral deal," he said, referring to the September 10-14 WTO ministerial meeting in the Mexico resort to discuss how to drive forward the Doha round of trade negotiations.

Yamani said the Saudi Government was determined to push on with reforms of the domestic economy and help the country diversify from its oil dependence.

"Accession (to the WTO) is a way to really get more investors from outside so that our economy can get better."

The country was working on the privatisation of 20 public enterprises and had created a training scheme to help curb joblessness among young people, he said.

He said the Government wanted to "try to create more legislation and more confidence of investors in Saudi Arabia". (AGENCIES) prioritydc 18telecom-hfcl-divestmenthfcl to shed 10 crore shares in subsidiarynew delhi, aug 31 (uni) investment trust of india (iti), the leasingand hire purchase company that pulled out of pioneer iti assetmanagement company last year, has approved the hfcl’s decision tooffload its 22.70 per cent stake in iti.

With the proposed offloading, hfcl’s stake in iti would come downto 63.23 per cent from 85.93 per cent.

Himachal futuristic communication ltd (hfcl) will offer ten croreshares in iti to the public, subject to the approval by thesecurities and exchange board of india.

Hfcl board has already approved the proposal.

The maloo-nahata combine managed hfcl is the promoter of iti witha 85.93 per cent stake.

Though the price of the offer has not been fixed, marketsources said the offer price would be guided by the sebi prescribedsix-months average rule. Market sources indicated the six-months average of the iti stock would be in the region of rs 15-16.

Tck finance and leasing private ltd had acquired the managementcontrol of iti from h c kothari group three years ago for a fewcrore. The kothari group was the joint promoter of kothari-pioneerasset management company.

Post acquisition, kothari pioneer was rechristened pioneeriti. Tck had divested its stake in pioneer iti in favour oftempleton with a handsome premium over its acquisition cost. Tillthe quarter ended march 31, 2003, tck held 61.18 per cent stake initi.

But the shareholding pattern of iti on june 30 showed that hfclcontrolled 85.93 per cent stake. Sources said the change inmanagement control came into effect through an amalgamation scheme.

Iti board, they added, had approved merger of the company withhfcl infotel ltd. The board also had passed the sale of iti s hirepurchase, leasing, financing and securities trading businesses as agoing concern to its subsidiary.

Hfcl has embarked on a business restructuring exercise forimproving efficiency at all levels of the organisation, enabling itto make optimum use of its resources.

The proceeds from the sale are expected to be used in the restructuring exercise aimed at re-focusing attention on itscore competence such as equipment manufacturing, turnkey servicesand research and development.

‘’the exercise will essentially include financial restructuringaimed at bringing its overall capital employed in line with the coreoperating business of hfcl so that the growth achieved by it in itscore operating business is clearly reflected in various returnratios and ultimately results in enhancement of shareholders’value,’’ the company had told bse earlier.Uni ijd nv mb1321jmu 13 19 fc 3shipping-singapore-coscocosco, singapore’s psa in terminal berth venturesingapore, aug 31 (reuters) china-backed containerleasing firm cosco pacific ltd said it had formed a jointventure with singapore state-owned port operator psa corp ltdto manage two berths of a psa terminal in the city state.

Cosco has taken a 49 percent stake in the joint venture,the firm said in a statement on its website on saturday. Psawill own the remaining 51 stake of cosco-psa terminal privateltd.

The statement did not give financial details. Officials atthe singapore port operator could not be contacted on sunday.

The joint venture will manage and operate two berths of thepasir panjang terminal in singapore in two phases. By 2008,when the second phase is completed, the terminal will becapable of handling 1.0 million teus (twenty-foot equivalentunits) annually, the statement said.

It said the joint venture is the first overseas portinvestment for cosco pacific, which is part of china oceanshipping (group) co, china’s biggest shipping group.

Singapore media said it was the first time the psa wastying up with a shipping line to operate terminal berths in thecity state.Reuters nv hs1159jmu 12 04 ch 8enviornment-polybags ban-himachalhimachal government all set to enforce polybag banshimla, aug 31 (uni) the himachal pradesh government is all set toenforce a ban on polythene carry bags and re-cycled plastic bagsbeing used by shop-keepers and shoppers for carrying household itemsso as to prevent the degradation of the environment of this hillstate that attracts a large number of tourists every year.

The ban comes into force from tomorrow and heads of all districtshad been issued specific instructions to comply with thenotification issued by the central government banning the use ofspecified polybags. The himachal government had issued an order tothis effect on august five this year.

As per the notification issued under the recycled manufacture andusage (amendment)rules-2003 under the environment (protection)act of1986, the use of virgin and re-cycled plastic polybags and recycledplastic containers would be banned from september one onwards. Infact himachal pradesh was the first state in india to take this stepon polybags when way back in 1998 orders were issued against theusage of re-cycled polybags.

Shimla deputy commissioner(dc) s k b.S negi told uni here todaythat all arrangements had been made in the capital and other townsof the district to enforce the ban effectively. He said specialsquads had been formed for this purpose and action would be takenagainst both the shop-keepers as well as the carriers of polythenebags that do not meet the specifications.

Though the dc did not specify the type of action that would betaken against the violaters but there is every likelihood that afine would be imposed. As per the notification whoever failed tocomply with or contravenes any of the provisions of the act would bepunishable with imprisonment which may extend to five years or witha fine which may extend to rs one lakh.More uni hs rl mms1722jmu 17 21

Singapore’s PSA in terminal berth venture

SINGAPORE, Aug 31: China-backed container leasing firm Cosco Pacific Ltd said it had formed a joint venture with Singapore state-owned port operator PSA Corp Ltd to manage two berths of a PSA terminal in the city state.

Cosco has taken a 49 percent stake in the joint venture, the firm said in a statement on its website on Saturday. PSA will own the remaining 51 stake of Cosco-PSA Terminal Private Ltd.

The statement did not give financial details. Officials at the Singapore port operator could not be contacted on Sunday.

The joint venture will manage and operate two berths of the Pasir Panjang terminal in Singapore in two phases. By 2008, when the second phase is completed, the terminal will be capable of handling 1.0 million teus (twenty-foot equivalent units) annually, the statement said.

It said the joint venture is the first overseas port investment for Cosco Pacific, which is part of China Ocean Shipping (group) Co, China’s Biggest Shipping Group.

Singapore media said it was the first time the PSA was tying up with a shipping line to operate terminal berths in the city state. (AGENCIES)

Himachal Government all set to enforce polybag ban

SHIMLA, Aug 31: The Himachal Pradesh Government is all set to enforce a ban on polythene carry bags and re-cycled plastic bags being used by shop-keepers and shoppers for carrying household items so as to prevent the degradation of the environment of this hill state that attracts a large number of tourists every year.

The ban comes into force from tomorrow and heads of all districts had been issued specific instructions to comply with the notification issued by the Central Government banning the use of specified polybags. The Himachal Government had issued an order to this effect on August 5 this year.

As per the notification issued under the recycled manufacture and usage (amendment)rules-2003 under the environment (protection)act of 1986, the use of virgin and re-cycled plastic polybags and recycled plastic containers would be banned from September 1 onwards. In fact Himachal Pradesh was the first state in India to take this step on polybags when way back in 1998 orders were issued against the usage of re-cycled polybags.

Shimla Deputy Commissioner(DC) S K B S Negi told UNI here today that all arrangements had been made in the capital and other towns of the district to enforce the ban effectively. He said special squads had been formed for this purpose and action would be taken against both the shop-keepers as well as the carriers of polythene bags that do not meet the specifications.

Though the dc did not specify the type of action that would be taken against the violaters but there is every likelihood that a fine would be imposed. As per the notification whoever failed to comply with or contravenes any of the provisions of the act would be punishable with imprisonment which may extend to five years or with a fine which may extend to Rs 1 lakh. (UNI)