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• Forex: Rs 43.10/12; rupee closes steady

• BSE: 2968.75; Sensex loses 21 points

• NSE: 864.10; S&P CNX Nifty loses eight points



August 14, 1998

Three industrialists dissect India, find sprouts of a dark era
"We signed an MoU with the Karnataka government in 1992 to start the Cogentrix power project along India's western coastline. After that, we have seen five prime ministers and four chief ministers. It takes six months for each government to settle down. Thus, we have lost 30 months in the last six years," the company managing director Ron Sommers said at a conference in Madras. Two others joined issue to share their views on what ails India.

India signs pacts with WB for $ 115 million IDA credit for Kerala, Orissa
The Kerala project seeks to assist the state government in arresting the retrograde trend in forest cover development and improving forest productivity in an environmentally and socially sustainable manner. The Orissa project aims to make the health system more efficient and effective and improve access to selected basic health services with special emphasis on women, children, tribal people, and other disadvantaged groups, and those living in remote and underdeveloped areas.

NBFCs blame credit rating agencies for poor show
Non-banking finance companies have complained to the Reserve Bank that the requirement of minimum credit rating and linking of quantum of deposits to the level of credit rating have badly hit them, especially those engaged in leasing and hire-purchase finance activities. NBFCs also urged the RBI and other regulatory authorities to have a re-look at the entire system of rating. The rating mechanism does not play any productive or social role. There is no remedy if companies rated by agencies commit default, they argued.

India to join Paris Convention, may debate Patents Bill in winter session
India has agreements on inventions with 78 countries. However, an Indian inventor seeking patents outside India had to apply separately in each country -- a laborious, expensive and even risky process. Now, he/she merely has to apply for patent in India to get validity in the 147 member countries. Meanwhile, a group of ministers is preparing the ground for introduction of Patents Bill in Parliament in the winter session.

BUSINESS BRIEFS

• Minister vows to root out corruption in Prasar Bharati
• Bankmen to protest for higher wages

• Forex: Rs 43.12/15; rupee loses 13 paise

• BSE: 2990.22; Sensex recovers 39 points

• NSE: 872.25; S&P CNX Nifty moves up 12 points



August 13, 1998

Rupee touches all-time low; RBI checks crash, Rs 42.95/43.05
The rupee's fall was largely due to political uncertainty at the Centre coupled with the currency crisis in the far-east markets. Panic spread also due to Chinese ambassador to India Zhou Gang's statement that China may be forced to devalue yuan if the freefall of Asian currencies is not arrested. Market sources said that the rupee may fall further on Thursday depending on the intensity of the Reserve Bank's intervention in support of the rupee.

Mystery shrouds Vechoor cow patent issue
A section of the Kerala Agricultural University, which has an ongoing project to preserve this endangered breed, still believes the germ plasm of the cow is with Edinburgh's Roslin Institute, famed for developing Dolly, the first cloned sheep. However, nobody knows how the plasm was smuggled out of India.

Spend more in productive areas to overcome recession, Khusro tells government
Finance Commission chairman Professor Khusro said the government, at the moment, should not be too concerned with controlling fiscal deficit as this preoccupation could deepen the recession.

Small numbers, giant leaps: women entrepreneurs diversify into 'new' areas
According to a paper prepared by the National Institute for Entrepreneurship and Small Business Development, Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra and Gujarat account for 4,776 women entrepreneurs. While 25.53 per cent of the women are engaged in food processing, 16.11 per cent run chemical units and 14.51 per cent own textile and garment units. As many as 9.41 per cent of the women entrepreneurs were found to have opted for difficult and challenging ventures in the engineering and mechanical sector.

BUSINESS BRIEFS

• Final hearing of Rajan Pillai case on October 30
• Many power projects on the anvil: minister
• Reliance makes academic move on corporate law
• Economic zone structure planned for Delhi

• BSE: 2950.80; Sensex sheds over 19 points

• NSE: 860.10; S&P CNX Nifty loses six points

August 12, 1998

India's first bio-tech park: by the women, for the women
A unique, Rs 100-million project exclusively for women is coming up on a 20-acre site at Kelambakkom, 41 km from Madras. Women entrepreneurs who will set up their bio-tech shops in the park are expected to generate employment opportunities for at least 1,000 women in the first phase of the project.

Government plan for FDI in housing rattles domestic players
Urban Affairs and Employment Minister Ram Jethmalani is understood to have stressed 100 per cent equity participation by non-resident Indians, persons of Indian origin and multinational corporations in the housing and real estate sectors to develop this basic infrastructure industry in the country.

Parliamentary panel takes stock of finance scene
Although there was no official word on the outcome of the meetings that the standing committee on finance held with banks, financial institutions and industry leaders, sources said that the members were keen to gather comments, suggestions and thought processes from various participants. The exercise is expected to help the MPs to formulate a direction on future economic and industrial growth of the country.

BUSINESS BRIEFS

• 23 PSEs to be converted into JVs
• Export licensing process simplified

• Forex: Rs 42.89/91; rupee crashes 24 paise

• BSE: 2970.64; Sensex sheds 50 points

• NSE: 866.50; S&P CNX Nifty loses 12 points



August 11, 1998

Battle rages between India Cements and B V Raju for SVCL
A civil court in Hyderabad has restrained the nine companies associated with Raju from selling their current 43.88 per cent stake in the Rs 237 million paid-up capital of Sri Vishnu Cements until further orders. The matter has been posted to August 26.

Japan's sanctions affect Mizoram hydel project
The north-eastern state is facing the impact of economic sanctions imposed by Japan following the Pokhran nuclear explosions. Japan has shelved its Rs 2.75 billion overseas economic co-operation fund for the 210 mega-watt Tuivai hydel project, the biggest in the state.

Sanctions will strengthen India, avers FM
India is not only self-reliant in national defence but its economic structure is so strong that it could not be cowed down by any other country, Yashwant Sinha told an insurance industry gathering in Bihar.

I&B minister hints at code to check misinformation by foreign channels
M A Naqvi said that an 'Indian Programme Code' for all foreign channels will be formulated to stop the misinformation campaign against India. A Broadcasting Council will also be created to monitor activities of both foreign and domestic channels. The council would have representatives of private channels as members besides government officials.

Miracle!: Pakistan elite zooms around in foreign cars as economy crumbles
Although former finance minister Sartaj Aziz had put a ban on the import of luxury cars, yet as many as 409 BMWs landed at the Karachi Port. Many more are on their way to Karachi. The importers include many high-ups in the ruling elite.

Go-slow on Enron hydel power project provokes political storm in Nepal
Enron's supporters believe Nepal needs big projects to lift itself out of poverty. Big dams on the country's Himalayan rivers will generate electricity, which can be sold to neighbouring India and China. Nepal's rivers have an estimated potential of 83,000 MW of electricity, only a fraction of which -- 280 MW -- has been tapped so far.

Fusion of the hottest and the coolest forms promises fizzy fireworks this Diwali
She is considered the hottest property in Bollywood; apparently, her form can give the shapely bottle of the planet's coolest cola a complex. Perhaps, it's only well that Karisma, the princess of the Kapoor khandhaan, should be contracted to promote Coca-Cola during the forthcoming Diwali season, as if to add to the brilliance of nuclear '98.

BUSINESS BRIEFS

• 20 per cent foreign equity in private banks okayed
• WB to offer Rs 16 billion for Delhi projects

• Forex: Rs 42.66/67; rupee loses six paise

• BSE: 3020.71; Sensex sheds over 41 points

• NSE: 878.75; S&P CNX Nifty loses over 16 points



August 9, 1998

Five more airports to be made 'gateways'
The Union government will unveil a policy for upgrading five airports namely Bangalore, Ahmedabad, Hyderabad, Amritsar and Guwhati to international standards to be known as gateway airports, according to the Civil Aviation Minister Ananth Kumar.

Granny's tales for remote-happy kids, brought to you by Amar Chitra Katha
Keeping with the tele-times, Bombay-based India Book House, owner of the Amar Chitra Katha brand, has tied up with United Studios to produce a TV serial based on one of the favourite comic strips of Indian kids.

THE REDIFF BUSINESS COLUMNISTS

The case for deregulating the insurance sector
Insurance encourages savings, provides a safety net to tax-paying enterprises and individuals and generates long-term investible funds for infrastructure building. This makes insurance companies the biggest investors -- a compelling reason why private sector (and foreign) companies which will spread the insurance habit in the societal and consumer interest, are urgently required in this vital sector of the economy, writes Dilip Thakore.

BUSINESS BRIEFS

• Technocrat to advise Pak PM on finance
• CBI may probe Rajan Pillai's death

• Stocks Weekly Review: Poor Q1 results, FII pressure hold indices tight; Sensex crashes 150 points, Nifty loses 36 points

August 8, 1998

Curbs lifted on NRI, OCB investments in unlisted companies
Investment limit for a non-resident Indian, a person of Indian origin or an overseas corporate body will be five per cent of the paid-up equity capital of the investee company. The aggregate investment limit will be ten per cent.

Great response to RIBs, say officials
Although they would not reveal the exact figure collected from non-resident Indians, sources indicated today that SBI's Resurgent India Bonds have already netted in $ 100 million.

New hydro power policy in two weeks
Power Minister Kumaramangalam has also hinted that the issue of rationalisation of power tariff will be discussed by the Union Cabinet shortly. He said the society is more aware and consumers would like to know the production, transmission and distribution components in the tariff.

Hegde's export incentives will herald era of protection
Noted economist D M Nanjundappa has dismissed the recent export-boosters as short-sighted. Excessive dependence on the inflow of foreign capital and rise in exports would be dangerous, he said. Unless there were sustained exports arising from improvement in the competitive strength of Indian industry, the country's hope for a recovery would be will-o'-the-wisp.

Economic crisis: 1998 worse than 1991, discovers Manmohan
''Entrepreneurs perform a function of great societal value. A society which nurtures entrepreneurs develops great capability. The only constant about change is change itself. It is not possible to freeze intellectual, technological and other progress. The management of change is the hallmark of new India,'' the former finance minister has said.

BUSINESS BRIEFS:

• Export credit refinance rate cut to seven per cent
• Panna-Mukta hearing on September 9
•124 MPs sign note against Prasar Bharati
• Rajan Pillai died of asphyxia, court told
•Farmers body protests Monsanto-IIS tie-up
•Urea case hearing on August 11

• Forex: Rs 42.60/63; rupee loses three paise

• BSE: 3062.25; Sensex sheds 34 more points

• NSE: 895.55; S&P CNX Nifty loses 7 points

August 7, 1998

RBI group moots major changes in external debt management, goes soft on NRI deposits
The technical group suggested that the data on external debt statistics may be published on a quarterly basis within a quarter of the reference date. External debt may be recorded on a cash basis, the exception being non-resident deposits, in contrast to the accruals method underlying the Balance of Payments compilation.

US will remain India's business partner, assures official
Economic sanctions imposed on India after the nuclear tests in May were not intended to hurt the country's industry and business but to send across a strong message to the Indian government, US Consul General in Bombay, Dr Franklin Huddle, has said.

SBI open to tie-ups for personal banking products
India's largest bank is focusing not only on increasing its size and volume of business but on quality of services through outsourcing the selected technological and operation needs and by networking through subsidiaries as well as other like-minded and like-positioned organisations, according to Chairman Verma.

Government seeks to boost FDI through CD-ROM
Industrial and investment policies of all the states and Union Territories had been featured in the multimedia package along with the analyses of 20 different sectors, each highlighting the scope for growth and vast opportunities.

Himalayan Blunder: A trade transit passage goes awry
The 43-km stretch connecting India and Nepal is a misnomer for the transit passage that itself is an apology for a road. The route was set up during I K Gujral's tenure, to provide the landlocked Himalayan kingdom access to Bangladesh harbours. But, today, it is replete with potholes and ditches, and is shunned by traders and viewed with suspicion by officials briefed to check smuggling at the border. Traders continue to negotiate the same old tedious pathways.

Government to sensitise chemical industry to global developments
In view of the Trade Related Intellectual Property Rights Agreement and the new patent laws, indigenous research and development activities need to be strengthened, Union Minister of State for Chemicals and Fertilisers Dr A K Patel has said. Although the government has been making investment in R&D activities, this in itself will not be adequate and the industry will have to invest more in R&D, which will have an impact on global market, he added.

BUSINESS BRIEFS:

• Congress, JD protest Prasar Bharati ordinance
• L&T Q1 net down at Rs 720 million

• Forex: Rs 42.48/50; rupee loses three paise

• BSE: 3096.33; Sensex loses 37 points

• NSE: 902.75; S&P CNX Nifty loses over 4 points

August 6, 1998

States vie to bag Rs 1 billion business school
The AP-Karnataka race has since got steamier as some of the leading industrialists, who are keen on promoting the prestigious Rs 1 billion venture, have begun eyeing two more states, Maharashtra and Tamil Nadu for a close look. Meanwhile, West Bengal too has expressed an inclination to do everything to get the school located near Calcutta.

Government announces several measures to boost exports
Commerce Minister Ramkrishna Hegde today announced a series of measures in the Lok Sabha to boost flagging exports. The important elements of the package are reduction in the rate of interest on pre-shipment and post-shipment credit from 11 per cent to nine per cent. The exporting community says one reason for the bad export performance had been the high cost of export credit.

Bhadrawati Power Project: ex-BJP MP calls Mittals' price-cut claim a lie
According to Banwarilal Purohit, who last made news for his spat with Pramod Mahajan, the Mittals of the Ispat group had managed to get a rise of 23 paise per unit on what they had sought earlier, thus getting a further bonanza of Rs 1.82 billion per year for 20 years.

Taxes may be cut to achieve 7 to 8 per cent growth: Ahluwalia
The real challenge before India is to arrive at a consensus among the people to bring changes in policies related to high tariff barriers, industrial restructuring and global integration of the Indian economy, the finance secretary said.

Karnataka will be first state to privatise drinking water operation
The state government has signed a memorandum of understanding with the Anglian Water International of the United Kingdom for forming a joint venture utility.

SCOPE brings hope for dying PSUs
The Standing Conference of Public Enterprises, an apex body of public sector units, has recommended setting up an independent "public sector development fund" to help out loss-making PSUs.

THE REDIFF COLUMN

The thoughtful taxman
'Rarely have we had a finance minister ready to go on record saying he was wrong. Sinha was man enough to admit his errors promptly and roll them back swiftly, with no fuss. For the first time, we have a government eager to trust the tax payer. Sinha has taken the first step towards creating a more trusting system,' Pritish Nandy salutes the nabob of north block.

BUSINESS BRIEF:

• J & K identifies thrust areas, gets Rs 3 billion investment

• Forex: Rs 42.45/47; rupee gains five more paise

• BSE: 3133.42; Sensex gains over 13 points

• NSE: 907.45; S&P CNX Nifty makes marginal gain



August 5, 1998

FEMA, MLP Bills need fine-tuning, opines business community
While the Union government views money-laundering as a serious threat to the financial systems of the country, affecting its integrity and sovereignty, industry circles fear the Bills could lead to widespread harassment of business people.

FEMA, Money Laundering Bills introduced in Parliament
The Opposition did not try to block the introduction of the FEMA Bill that aims at ''consolidating and amending the laws relating to foreign exchange with the objective of facilitating external trade and payments''. Orderly development and maintenance of foreign exchange markets in India is also part of the Bill's objective.

Bhadrawati PPA signed, work to start in December
The electricity rate from the project would be in the region of Rs 2.50 to Rs 2.60 per unit based on today's coal prices. However, the rate may vary depending on the coal prices at the time of completion of project which is expected within 43 months from the date of financial closure (January 1999).

Chinese goods swamp northeast India
In Manipur, Mizoram, Nagaland, Meghalaya, Tripura and even in Guwahati, Chinese-made items hold sway and Indian products are practically extinct. Cigarettes, toys, electronic gadgets and household goods such as blankets, mosquito nets, kerosene lanterns, utensils, patent medicines, crockery and a host of Chinese goods are commonplace in the states bordering Myanmar.

Advani all for Indian companies going global
Union Home Minister Advani has said that some big companies in India like the fertiliser giant Indian Farmers' Fertilisers Cooperative Limited have the potential to become global players. Such companies should acquire advanced technological know-how and be run on professional lines to become ''global giants,'' he said after inaugurating the Kalol Ammonia Plant expansion project in Gujarat.

Opposition walks out from Rajya Sabha over Prasar Bharati
Manmohan Singh raised the Prasar Bharati issue, wanting to know why the upper house was bypassed and the Bill not brought for discussions, in spite of the opposition parties promising to cooperate with the government. He said bypassing the house was not a 'good precedent' and the house should not be deprived of giving its considered opinion.

BUSINESS BRIEFS:

• K M Birla appointed chairman of MRPL
• Raja Chellaiah favours VAT
• Rajan Pillai death: Advani rejects probe plea

• Forex: Rs 42.50/52; rupee gains five paise

• BSE: 3119.54; Sensex gains over six points

• NSE: 906.2; S&P CNX Nifty steady



August 4, 1998

An issue of bond, bonding and a win-win game
'If I were a foreign bank or MNC, I would catch hold of some NRI having investible funds of say, Rs 1 million. I would give him a loan of Rs 9 million against collateral of these bonds. Both of us will have a certain windfall!' Investment consultant A N Shanbhag assesses the Resurgent India Bonds.

SC issues notices to government, RBI over bank scams
The petition, filed by Common Cause, a registered society, urged the court to direct the Union of India and the RBI to frame rules and regulations for the speedy recovery of loans and interests thereon. The petition also prayed for the setting up of a fraud detecting mechanism to save banks from undergoing huge losses.

RBI governor moots new mantra to resurrect Indian economy
''Economic activity is no exception to the phenomenon of self-fulfilling prophecy. If all of you believe that India is doomed, indeed the country would be doomed and nothing can save it. Therefore, consciously nurse a robust confidence in our country's future,'' exhorted RBI governor Bimal Jalan, speaking to business people in Bombay.

CII to help rope in Gulf-based NRI investors to India
Addressing businessmen in Dubai, the CII chief Rajesh V Shah spoke of the openings in the services and infrastructure sectors in India. He also said that the government was expected to soon announce permission for foreign direct investment in some more areas, such as housing and insurance, and that the CII was actively considering a proposal to set up an office in Dubai.

DRDO product show to boost defence-industry ties
DRDO's R&D wing will demonstrate its engineering products -- it calls them 'technology demonstrators' -- between August 6 and 9 to big- and medium-size industry. DRDO has already signed three agreements with the private sector to meet the requirements of the army.

RBI vice-chief calls for faster growth of venture capital business
RBI Deputy Governor Y Venugopal Reddy has strongly suggested for undertaking a study of the type done by the Bank of England in 1996 on financing environment for technology-based industries through venture capital.

Prasar Bharati Bill gets entangled in parliamentary web
The passing of the Prasar Bharati (Broadcasting Corporation of India) Amendment Bill by Parliament will mean nullifying the effect of the ordinance promulgated by the United Front government last year and bring back to the statute book the 22-member committee of members of Parliament to oversee the working of the corporation and also the Broadcasting Council which can receive and hear complaints about its working.

Sonia faults Union government for slow industrial growth
The Congress president has also called upon the students to come to the forefront in demanding better job opportunities and education from the government. You should not be obsessed with politics and elections, she advised them.

Sukhbir Badal floats new system to monitor sick PSUs
The system had been introduced to segregate the performing units from loss-making ones. It would also help in identifying those loss-making units which could be brought out of the red by initiating certain steps or measures.

• Forex: Rs 42.55/57; rupee loses three paise

• BSE: 3112.95; Sensex dives 98 points

• NSE: 906.00; S&P CNX Nifty slips 25 points

August 2, 1998

Lok Sabha passes bill to revive 1990 Prasar Bharati Act
Information and Broadcasting Minister Sushma Swaraj said that her aim in reviving the 1990 Act was to bring in autonomy with accountability. She also announced that she planned to bring forward a modified Broadcasting Bill in the next session of Parliament.

Rajya Sabha asks government to keep foreign airlines off domestic routes
A special mention in the Rajya Sabha made by B S Ramoowalia sought protection for Indian Airlines ''which was operating in uneconomical areas''. Nowhere in the world were domestic routes thrown open for foreign airlines and there was an effort in India to do this under some garb, he said.

US foreign policy gurus denounce sanctions as business dips
More than 75 countries are now subjected to or threatened by sanctions, The New York Times says quoting trade groups. And the trend has been growing. More than 60 laws or executive orders authorising sanctions -- about half the total since World War I -- have been enacted in the last five years.

New PPA for Bhadravati Power rattles Maharashtra government
The revised power purchase agreement is causing concern to the state government. Although it could reduce the project cost and the cost of per mega watt of power, it had to compromise on equity participation.

BUSINESS BRIEF:

• Essar Steel incurs Rs 357 million loss in Q1

• Stocks Weekly Review: Renewed FII buying brings cheer back to the bourses; Sensex 3211.33, Nifty 931.40

August 1

'Investing in RIB would mean serving yourself and India'
'The infrastructure sector would start demanding money within one or two quarters. A very large number of projects are on our own books. We are at present having about 50 projects, the value of which would be more than Rs 400 billion. So, it's not that there is no requirement of funds.' SBI Chairman M S Verma defends the timing of Resurgent India Bonds in an exclusive interview with Rediff On The Net .

SEC waves green light to SBI's bonds in the US
The SEC decision brought down the curtain over week-long suspense. SBI hopes to net 25-30 per cent of its RIB target of $ 2 billion from US-based Indians, particularly those in the Silicon Valley. Its plans could have gone awry had the SEC refused to give its clearance.

SAARC freezes SAFTA, unveils regional trade plan
The decision to defer SAFTA was believed to have stemmed from the fear among the smaller member-states that it would lead to Indian goods flooding their tiny markets. The Colombo declaration, issued at the end of the summit, reiterated the importance of achieving SAFTA. ''To this end, they (SAARC leaders) decided that a committee of experts, in consultation with member-states, be constituted with specific terms of reference to work on drafting a comprehensive treaty regime for creating a free trade area,'' it said.

British companies reaffirm investment plans for nuclear India
British business leaders aver that ''loss to the US may be gain for the UK and other European countries''. Business will not stop for ever. Instead of US funding, India will see funds flowing in from other countries. Instead of buying turbines from the US, India will go in for European turbines, they say.

BUSINESS BRIEFS:

•HLL net rises 28 per cent to Rs 3.28 billion in H1
•Mixed results in Tata group: power up, telecom down

• Forex: Rs 42.53/54; rupee steady in dull trading

• BSE: 3211.31; Sensex steady on last day of settlement

• NSE: 931.40; S&P CNX Nifty slips 1.2 points

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