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2004: Indian auto industry NEW DELHI, Dec 27: Overtaking China as the fastest-growing auto market, India drove its sales close to a million passenger vehicles in 2004, with some .......more RIL reacts downward, sensex still in positive territory MUMBAI, Dec 27: The scrip of Reliance Industries Limited (RIL) touched a high of 544.80 immediately after the announcement of buyback offer price at ......more IA begins evacuation of tourists from Andaman KOLKATA, Dec 27: Indian Airlines today began an evacuation operation to airlift ....more Budget to revamp tax structure for petro, telecom, sugar: FM NEW DELHI, Dec 27: Two months ahead of the budget for 2005-06, Finance Minister .......more |
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Woodland plans IPO, JV with global brand NEW DELHI, Dec 27: Footwear major woodland, part of the Rs 200-crore business house aero club, is planning to enter the capital market with an .........more China launches next generation internet, breaks US monopoly BEIJING, Dec 27: China has launched the first backbone network of the next-generation internet, CERNET2, .......more Jindal stainless allots 99.97 lakh shares to American ex bank NEW DELHI, Dec 27: Jindal Stainless Ltd has allotted 99,97,524 shares of Rs 2 each to American Express Bank .....more Uncertainty in power sector as Govt reviews Electricity Act NEW DELHI, Dec 27: Uncertainty continues in the power sector as 2004 comes.......more |
2004: Indian auto industry in top gear, attracting global biggies NEW DELHI, Dec 27: Overtaking China as the fastest-growing auto market, India drove its sales close to a million passenger vehicles in 2004, with some of the domestic automobile players firming their footprints abroad and global biggies targeting the country as a research and manufacturing hub to realise their dreams on wheels. Against the prediction of a slowdown in the sales growth, the market showed reverse signs in 2004 as vehicle sales have been on an overdrive on the back of the rising middle class income, attractive finance schemes with low interest rates and higher sales in the festive season. However, the growth was to a large extent also driven by overall economic growth. Domestic vehicle purchases have soared by 29 per cent so far this calendar year and, as per estimates of the Society of Indian Automotive Manufacturers (SIAM), sales for this fiscal will touch 1.03 million, up 23.65 per cent from the 8,40,000 sold last year. Car makers made a record of 35 launches, including new models, variants and special editions. Rising international steel prices notwithstanding, some companies, like market leader Maruti and Ford, slashed the prices of some of their models to fuel volume growth. However, auto companies increased prices of their vehicles after the union budget announced the two per cent education cess. Special festive discounts by Hyundai for three days and maruti for a week in November fetched the two companies around 27,000 bookings each. The year witnessed the advent of a new segment with hatch-backs on Indian roads. The Indigo Marina, Ford Fusion and Hyundai Getz were launched keeping in mind the growing demand for cross-overs or fully loaded vehicles at reasonable price bands. Car manufacturers started giving fully loaded vehicles and reasonable prices. "This trend has so far been seen in more developed markets, but India is catching up fast," observed Ford India vice-president (marketing, sales and service) Vinay Piparsania. The entry level A and B segments like the Maruti 800, Alto, Santro and Indica recorded 17-20 per cent growth whereas the mid-size segment, in the price band of Rs 4-9 lakh, grew the fastest at 25-30 per cent. Besides driving towards the million-unit-mark and global auto firms like Nissan, Audi, BMW and Porsche making their vehicles available in the country through dealers, the year saw the launch of ‘crorepati’ cars by multinationals. And Daimlerchrysler India sold the country’s first maybach to pan masala tycoon and chairman of Manikchand Group of Companies Rasik Manikhand Dhariwal. Other expensive marquees like bentley’s continental Gt Coupe and Porsche Cayenne also entered India. The domestic auto industry received shot in the arm when Japanese car giant Suzuki Motor Corporation announced the Rs 1,050-crore investment plan in two different ventures in India in an attempt to capitalise on the rapid growth in the country’s automobile sector. It decided to set up a second automobile assembly company in the country under Suzuki Maruti India and construct a new plant with a capacity of 2.5 lakh units in Haryana. Driving ahead with its plans to make India the R D hub for small cars outside Japan, Suzuki has planned to launch a new premium compact car — swift — and foray into the India bike market next year. Many car makers like Hyundai, Ford, Mahindra and Mahindra and Tata Motors got into expansion mode to fulfil the domestic and export demands. As India is fast turning out to be the most preferred parking lot for the who’s who from the global car making business, the domestic auto players targeted global markets, with Tata motors acquiring Daewoo plant at Gunsan in South Korea and Mahindra and Mahindra picking up 80 per cent stake in Jiangling tractor company, owned by China’s Kiangling Motor Company Group. General Motors India, which started the due diligence exercise in April for buying Daewoo India’s idle car-making assets and expected to finalise its acquisition terms within two months, could not make much headway as the negotiations were stuck in bureaucratic and legal hurdles. GM India has said it was drafting a fresh proposal for locally producing a small car either at its existing facility in Gujarat or at a new location. Sales of commercial vehicles, including trucks and buses, jumped 26.4 per cent to 1,93,818 units in April-November 2004-05 from 1,53,348 a year earlier. The Indian two-wheeler market witnessed the launch of the costliest bike in the 250 cc kinetic comet from the Korean Hyosung Motors with a price tag of Rs 1.67 lakh. On the other hand, Japan-based Honda unveiled its first 150 cc bike Unicorn, priced at Rs 50,000, to take on Bajaj’s Pulsar and Hero Honda’s CBZ. India’s third largest motorcycle maker TVS Motors Co launched 125 cc bike star after phasing out 100 cc max, while Bajaj introduced a 125 cc motorcycle, discover. Though the country’s biggest motorcycle maker Hero Honda motors did not offer any new bike, it led the way in vehicle sales. Two-wheeler sales stood at 15.4 per cent to 3,207,515 units in April-November from 2,779,806 in the same duration last year. Three-wheeler sales in the April-November 2004 period stood at 1,94,301 units, up 11.15 per cent over 1,74,807 units sold in the first eight months of last fiscal. SIAM said exports grew 36.5 per cent in April-November with passenger vehicles (42.67 per cent), commercial vehicles (75.42 per cent), three-wheelers (3.38 per cent) and two-wheelers (40.71 per cent) registering positive growth rates. At the fag end of the year, many auto companies, including Hyundai, Maruti and Ford, have announced the price hike of their vehicles due to the rise in steel prices and technology cost for new emission norms to be effective from April 2005. (UNI) |
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RIL reacts downward, sensex still in positive territory MUMBAI, Dec 27: The scrip of Reliance Industries Limited (RIL) touched a high of 544.80 immediately after the announcement of buyback offer price at Rs 570 per share, but reacted downwards to quote at 527.50 at 1330 hrs on the BSE today on reports that the buyback of shares was from the open market through stock exchanges. Earlier in the day, it touched a low of Rs 505 reacting to the statement by Anil , who slammed the move for buyback of company shares for which the meeting is being held today. The BSE-30 share sensitive index opened slightly lower at 6484.84 as against last Friday’s close of 6498.06 and gyrated in a range between 6566.64 and 6469.96 before being quoted at 6545.26 at 1300 hrs, up by 57.20 points. Other Reliance group shares like REL, Reliance capital and IPCL were quoted steady to firm. Earlier, Reliance energy shot up to Rs 540 at noon against the previous close of Rs 529.75 and Reliance capital to Rs 139 from Rs 135.10. Shares of IPCL zoomed to Rs 184 from the last close of Rs 181.90. (PTI) |
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IA begins evacuation of tourists from Andaman KOLKATA, Dec 27: Indian Airlines today began an evacuation operation to airlift more than 2000 stranded tourists in the Andaman and Nicobar Islands which had been devastated by a powerful earthquake and resultant Tsunami tidal waves. The IA despatched three boeing 737 aircraft since early this morning to bring back the stranded passengers from Port Blair as the larger airbus 320 flights could not be operated with the runway at the Port Blair airport damaged by the earthquake, an IA spokesman told PTI here. The first flight, which had left here at 4:30 am, has already brought back 118 passengers from the battered islands in the Indian Ocean. The remaining two flights, which left after 11 00 am, would bring back another 236 passengers. Most of these flights went almost empty with only a small number of residents of Andaman and Nicobar, who were in the mainland and wanted to return following reports of the catastrophe, he said. Some relief materials were also despatched by these flights. The regional management of the IA under the supervision of a high powered team had last night taken the decision to arrange for special flights to evacuate the stranded tourists in the islands, the spokesman said. More than 2000 tourists are estimated to be stranded in the Andamans as in the four days leading to the disaster 1500 people had taken the ia flights to Port Blair during the Christmas weekend rush, the spokesman said. Normally ia operates larger airbus aircraft on the Kolkata-port Blair route but due to the damage to the runway they cannot land there. The runway at Port Blair had developed cracks due to the earthquake and as a result only 5500 ft of the runway was available as against 11,200 ft normally available, he said. IA would tomorrow operate two boeing 737 flights between Kolkata and Port Blair as against scheduled one flight. The airport building at Port Blair was also badly damaged due to earthquake yesterday. (PTI) |
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Budget to revamp tax structure for petro, telecom, sugar: FM NEW DELHI, Dec 27: Two months ahead of the budget for 2005-06, Finance Minister P Chidambaram today promised to make tax structure simpler for petroleum, telecom, sugar and textiles sectors. "What is common among textiles, petroleum, sugar and telecom sectors is a convoluted tax structure. We have to unravel it and make it simpler and investment-friendly. We will come up with a strategy in the next budget," he said at ficci’s annual general body meeting here. Government has set up a committee, headed by Chief Economic Advisor Ashok Lahiri, to streamline the duty structure of petroleum products and a report is expected shortly. On textiles, Chidambaram said the Government had announced a simpler tax regime for natural fibres and the next budget would attempt to unravel the tax structure for man-made fibres. The Finance Minister also indirectly favoured phasing out of subsidies saying a dole-led, subsidy-led, concession-led growth is not sustainable. "What is sustainable is investment-led growth," he said. He had tabled a report, prepared by NIPFP, in Parliament last week that proposed phase-out of subsidies for LPG, kerosene, fertilisers and other Centrally-sponsored schemes. FICCI outgoing president Y K Modi suggested a slew of fiscal measures, including a cut in corporate tax rate to 30 per cent, remodelling income tax slabs, lifting of surcharge and education cess, toning up tax system required to raise industry and services sectors’ growth rates to over 11 per cent and pushing up agricultural growth to 4 per cent. (PTI) |
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Woodland plans IPO, JV with global brand NEW DELHI, Dec 27: Footwear major woodland, part of the Rs 200-crore business house aero club, is planning to enter the capital market with an Initial Public Offer (IPO) and form a Joint Venture (JV) with a global brand in a couple of years. "We have plans to float the IPO within two years to fuel our business growth. Currently, we are studying the market vis-a-vis trends and prospects. Once it is finished, we will decide about the time-frame and size of the IPO," aero club managing director Harkirat Singh told UNI here today. Mr Singh said the company was in talks with three major global brands for the JV. "We are dictating our terms and conditions before finalising the deal with the international player in footwear and casual apparel segments," he added. The company is investing Rs five crore to set up a shoe manufacturing facility at Baddi in Himachal Pradesh, he said, adding that the new plant would be functional by October next. Recently, woodland had set up a manufacturing plant in Baddi and Dehradoon each with the total investment of Rs 10 crore and an initial capacity of 5,000 pairs per day. "We are also planning to foray into accessories segment with focus on watches, sun glass and furniture. At present, we are working on its modalities" Mr Singh added. The Rs 100-crore woodland expects 40 per cent jump in its turnover by this fiscal-end. Woodland, which has 100 exclusive showrooms presently, plans to open 50 outlets in the next two years and expand its distribution network by 20 per cent to about 2,500 dealers across the country. (UNI) |
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China launches next generation internet, breaks US monopoly BEIJING, Dec 27: China has launched the first backbone network of the next-generation internet, CERNET2, breaking US monopoly and allowing the Communist giant to dramatically narrow its gap with world leaders, officials and experts said today. Eight departments of the Chinese Government said CERNET2 has become formally operational from December 25. "We were a learner and follower in the development of the first generation internet, but we have caught up with the world’s leaders in the next-generation internet, become a first mover, and won respect and attention from the international community," Director of the Expert Committee of the China Education and Research Network (CERNET), Wu Jianping said. CERNET2 is the biggest next-generation internet network in operation in the world and connects 25 universities in 20 cities. The speed in the backbone network reaches 2.5 to 10 gigabits per second and connects the universities at a speed of 1-10 gigabits per second. A trial on CERNET2 between the Chinese capital Beijing and Tianjin, a port city in northern China, on December seven achieved a speed of 40 gigabits per second, the highest in the world in real applications, the ‘China daily’ reported. CERNET2 is also the first network based on pure Internet Protocol Version 6 (IPV6) technology. The IPV6 also helps a great deal in solving the problem of shortage of IP addresses. In the current internet based on IPV4 technology, the United States controls 74 per cent of four billion IP addresses, while the amount that China has is only equal to a campus of the University of California, despite its 80 million internet users. The National Development Reform Commission (NDRC) set up a China Next-Generation Internet (CNGI) fund of USD 169 million to support six next-generation internet networks. Half of them will be used on CERNET2-related projects while the rest of the money was given to five telecom operators. The Ministries of Science and Technology and Information Industry also have funds in related projects, the report said without divulging the amount. Gong Jian, a regional head of CERNET2 in the southeast university in Nanjing, pointed out that if an IPV4 address has a weight of one gram, the weight of all IPV4 addresses is 1/76th of the empire state building in New York, but the weight of all IPV6 addresses will be equal to the 56 times that of the earth. He said most of the 25 universities connected applied for slash48 IPV6 addresses, which are almost limitless for current needs. CERNET2 coverage is expected to expand to 100 universities soon. Deputy Director General of the Department of High-Tech Industries with NDRC, Xu Qin, believed progress in the development of CNGI will bring huge benefits of national economy and increase the country’s competitiveness in national defence, economy, science and technologies. (PTI) |
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Jindal stainless allots 99.97 lakh shares to American ex bank NEW DELHI, Dec 27: Jindal Stainless Ltd has allotted 99,97,524 shares of Rs 2 each to American Express Bank upon conversion of foreign currency convertible bonds, the company informed the stock exchanges today. The Board of Directors of the company would meet on January 17, 2005 to consider the unaudited financial results of the third quarter ending December 31, 2004. The meeting would also consider interim dividend for the financial year 2004-05, it said. (PTI) |
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Uncertainty in power sector as Govt reviews Electricity Act NEW DELHI, Dec 27: Uncertainty continues in the power sector as 2004 comes to a close with the UPA Government finally buckling under pressure of the Left parties to review the Electricity Act, 2003, viewed a key component in next generation of reforms. Within a few months of the passage of the act last year, 11 private projects envisaging an investment of about Rs 14,000 crore for adding 4000 mw were cleared and another eight projects totaling 6000 mw were in final stages of clearance. The projects include Jindal power’s 550 mw Raigarh Thermal Project, 500 mw Torangallu expansion project, Everest Power’s 100 mw Malana-II plant and Torrent Power Generation Ltd’s 1050 mw Akhakhol gas-based plant. According to analysts, the Electricity Act pulled back private sector investment as it addressed the core issue of distribution reforms, the area which remained neglected till now, by way of unbundling the state electricity boards. With the Government reviewing the act in consultation with the Left parties, the situation could undergo a change once again creating uncertainty among the investors. Though the review was part of the UPA’s Common Minimum Programme, Power Minister P M Sayeed had said during the monsoon sesion of Parliament that the review was complete with the extension given to states to unbundle their SEBS. It is in this context that the present exercise raises concern. The proposed review of the Act, which had devised a time-bound roadmap for states to Prune T&D losses, unbundle their electricity boards and the most controversial and politically sensitive issue of phasing out subsidies, could derail the process, say analysts. During the year, Government (first NDA and then UPA) has been claiming an improvement in the financial status of SEBS with many states reporting a reduction in transmission and distribution losses on the back of Centre-sponsored scheme of Accelerated Power Development and Reform Programme (APDRP). However, shortly after assuming office in May, the left-backed UPA Government extended by upto one year the June 10, 2004 deadline of unbundling the SEBS. The extension was given to 13 states, including Assam, Kerala, Maharashtra, West Bengal, Gujarat and Chhattisgarh. So far, none of these states has moved forward in the restructuring process. This could also affect the 41,000 mw capacity addition target for the 10th plan, which the power ministry claims would "definitely" be met. But estimates suggest otherwise, with the first eight months of the current fiscal witnessing an addition of less than 2000 mw as against the target of 5200 mw during 2004-05. The review and a further extension to states may discourage private investors, derailing the ministry’s ambitious plans. Overall, the first three years of the plan period have seen a capacity addition of just 8712 mw compared to a target of 14,557 mw during 2002-05. Going by estimates, it seems the 10th plan would also meet the same fate as that of the previous two plan periods when the achievement was about 50 per cent of the target. The review of act could further delay the formulation of other policy documents like the National Electricity Policy, National Tariff Policy and National Electricity Plan envisaged under the Act. While the Power Ministry had circulated a draft national electricity policy for public comments in June, there are still no indications that these policies would be finalised even in the next few months, especially now that the ministry is busy in reviewing the original Act itself. The change of Government, however, saw the crucial yet neglected area of rural electrification coming into focus. With over 56 per cent of rural households still without electricity, Government has formulated a strategy to provide electricity to all rural households in the next five years. The year also saw hectic activity by the new Government to resolve the Dabhol imbroglio. The 2,184 mw plant has been lying idle for over three years now. But efforts to revive the project gathered momentum only after general electric, who along with bechtel controls 85 per cent stake in Dabhol power company, shot off a letter to Planning Commission Deputy Chairman Montek Singh Ahluwalia virtually threatening to pull out from the negotiations. Simultaneously, offshore lenders and foreign stakeholders filed arbitration claims totaling a mammoth Rs 25,000 crore, prompting the Government to explore legal options as well. The empowered group of ministers, headed by Defence Minister Pranab Mukerjee, has met on a number of occasions though a final decision is yet to be taken. The e-gom is believed to have considered various options, including involving ntpc and gail to form a special purpose vehicle and referring the Dabhol assets to the debt recovery tribunal. Once billed as the single largest FDI inflow in the country, Dabhol has now come to be seen as the biggest impediment in attracting foreign investments for power projects in the country. Early resolution of the dispute is, therefore, vital for bringing multinational energy players back to India. The ministry of power would not have anything to boast about as achievement during the year, but for the hugely successful initial public offer of state-owned National Thermal Power Corporation. The power major mopped up Rs 5,368 crore through the exercise, half of which went to Government’s kitty, helping meet over 66 per cent of the Rs 4,000 crore disinvestment target set by the UPA regime for 2004-05. Steps are also being taken for a similar offer in other power psus like powergrid, Power Finance Corporation and National Hydroelectric Power Corporation, which may hit the market in the coming year. Unlike a lackluster 2004, the year ahead could be crucial as the Government gets down to consider a host of issues starting with the review of Electricity Act and public offers of other power psus. Various policy instruments required for encouraging competition and attracting an estimated Rs 900,000 crore for meeting the ‘electricity to all’ objective by 2012 would also have to finalised and implemented as soon as possible. As the Government alone cannot put in such a huge amount of money, it will have to make the sector attractive for the private players. Improving the health of State Electricity Boards and other distribution companies would be the first step in that direction. While unbundling SEBS may not be the panacea for all evils, analysts say the review should not be an excuse to allow further concessions to these loss-making SEBS. Free power emerged once again as a strong political tool during 2004, notwithstanding the fact it would deteriorate the financial health of already bankrupt states like Maharashtra. But whether the review aims at reducing cross-subsidies, introducing open access and including safeguards against political populism by State Governments remains to be seen. (PTI) |
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‘RIL buyback price fabulous but tussle will drive FIIs out’ MUMBAI, Dec 27: Stock brokers today said the share buyback price approved by the Reliance Industries Ltd (RIL) board at Rs 570 per share "is good news" but felt that the ongoing tussle between Ambani brothers will impact the Corporate Governance (CG) image and buyback scheme itself. "The buyback price of RIL is fabulous news for investors. However, the infighting between Ambani brothers will affect the buyback process. The investors will be prompted to get out of RIL stock rally as the tussle among the brother has become extreme", a stock broker told PTI here. The infighting and RIL vice chairman and managing director Anil Ambani’s statement prior to board meeting are definitely going to impact country’s CG image, Inventure Growth & Securities Ltd equity sales analyst’s Banerjee said. "Once the Financial Institutional Investors (FIIs) loose the trust in the country, they will move out to other markets with better CG background. The sound liquidity of the country is due to FIIs existence. To add, FIIs are holding handsome chunk of RIL stock", Banerjee said. "The buyback price at Rs 570 per share is good, much beyond the expectation. It is not healthy sign as Anil is opposing the buyback and RIL have to pass the resolution of buyback at the shareholders meeting", Sic Stock & Services Pvt Ltd Director Siddharth Handa said. He said the fight is now open from the inner circles of the family and this would definitely make the buyback scheme a complex process. "The prices at this level and the aggregate amount set for buyback are certainly a positive signal for the company. Shareholders of the company will benefit by this price", Sanjiv Bhambri of Hitech Securities said here. However, he raised questions of viability on raising roughly about Rs 3,000 crore for buyback amidst ongoing investments plans. Referring to Anil’s statement, a stock broker said it seems to be out of "frustration" and he could have said the same earlier. Statements of this kind minutes prior to the board meeting would adversely impact the bourses. He said the ownership issues should have been kept out from the business and they must sort out differences between themselves. "The statement of Anil is not in the interest of company’s shareholders. He should have waited till the board meeting was over", a stock broker said. Anil must be aware of the company policies and decisions and the statements are definitely going to impact the stock prices, he added. (PTI) |
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RIL board backs Mukesh on buyback MUMBAI, Dec 27: Mukesh Ambani, battling with Anil Ambani over control of the Rs 90,000 crore Reliance group, today appeared to have won the first round with the entire RIL board backing him fully on the controversial proposal for buy-back of shares and other issues, as the younger brother abstained during voting. The board, meeting for the first time ever since the proxy war began through the media in mid November, approved the buyback of shares at a price of upto Rs 570 per share and a provisioning of Rs 2,999 crores for the buyback scheme from its reserves of Rs 30,000 crores. Anil, who abstained from voting, had earlier sharply attacked the buyback proposal, when he told reporters "that there is more than what meets the eye. "I believe consulting on buyback is inappropriate as there are several other issues that need to be addressed. If you look at the recent run up at the stock prices after the announcement of buyback, I believe there is more than what meets the eye in terms of what is happening in the market place". All the agenda items before the board, including those on Reliance infocomm and Reliance energy, were passed. When the discussions on Reliance energy took place Anil Ambani recused himself on the ground that he headed the energy venture. He left the venue immediately after the board meeting ended. In the run up to the board meeting, Anil’s camp had given notice that it would raise issues relating to Reliance infocomm and REL. But sources said there was no discussion on these two companies, which the rival camp had threatened to raise. The board approved certain proposals relating to these two companies without any discussion. Meanwhile, market regulator SEBI has already begun assessing the matter in the wake of Anil’s allegations. (PTI) |
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VAT system to be fine-tuned over time: FM KOLKATA, Dec 27: The Value-Added Tax (VAT) system, proposed to be introduced from April one 2005 replacing the sales tax system, would be fine-tuned over time to free it from distortions, advisor to the Finance Ministry Parthasarathi Shome said today. Speaking at a seminar on Value-Added Tax organised by Bharat Chamber of Commerce here, shome said the present system would not be final, adding that changes would be made to suit the demands of the concerned parties. Commenting upon the revenue loss owing withdrawal of Central Sales Tax (CST), he said the centre would compensate for the loss. Drawing instance from the experiences of 130 countries, which had implemented VAT, he said "barring the exception of Czechoslovakia, none has withdrawn it. We are confident that India will also accrue the same benefits as those derived by others". He said the total tax collection by the states after implementation of vat was expected to be at the same level as that of now. "If the states suffer from any shortfall in collection, the Centre will share the burden". West Bengal Finance Minister and the chairman of empowered panel of Finance Ministers on VAT, Asim Dasgupta said that service tax would also be integrated with VAT except for the first year of its introduction. Discussions were still going on in the regard, he said adding that initially petro-products would also be kept out of the purview of the VAT system. Dasgupta said the most important contribution of VAT would be that prices of goods would come down as the cascading effect of multi-point taxation system would go away. On the white paper, which was being readied, Dasgupta said that it would be released by the middle of January. He said a consultative panel had also been set up with representatives from CII, ASSOCHAM and FICCI and three trade bodies to deliberate on the suggestions forwarded for improving the VAT system. He said that State Level Consultative Committees would also be set up consisting of members of city’s leading Chambers of Commerce. (PTI) Rs 2,952 crore World Bank project for UP LUCKNOW, Dec 27: Under the World Bank funded ‘UP State Road Project’, an amount of Rs 2,952 crore would be spent on connecting remote villages to link roads in Uttar Pradesh. State PWD Minister Shivpal Singh Yadav said here the funds would also be utilised on widening, repairing and maintence of the roads. He informed that under the project, Rs 1,708 crore would be spent on improvement of roads, Rs 1091.52 crore on maintenance and Rs 151.97 crore on miscellaneous works like roads safety, trade tax and check posts. "Upgradation of 64 kms of roads would be done by spending Rs 202.288 crore during current financial year of 2004-05 in initial phase," he added. The repairing of 226.50 kms of roads had been completed by November 2004. The PWD Minister said all the villages of UP would be connected to link roads under the Pradhanmantri Gram Sadak Yojna by 2007. A target had been fixed to connect 1,070 villages to link roads by completing constuction of 1,735 kms of roads and spending Rs 360.46 crore. (UNI) |
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