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• Forex: Rs 42.51/52; rupee down one paisa

• BSE: 3167.22; Sensex spurts over 83 points

• NSE: 920.50; Nifty gains over 20 points

September 13-14, 1998

FM does not rule out dismantling of FIPB, mulls countrywide VAT
Yashwant Sinha said the government would take a collective decision on the Foreign Investment Promotion Board. On Monday, he will hold discussions with chief ministers and finance ministers of states and Union Territories on regulation of non-banking finance companies.

Krishna Valley builders to protest against bill delays; state blames it on rising costs
Construction of the canal network has been postponed. Instead, focus will be on the construction of dams to block Maharashtra's share of the Krishna waters. The decision was inevitable because of the rising costs and the March 2000 deadline for dam construction, said irrigation minister Eknath Khadse. Funds will be raised by way of government bonds from September 14.

Hindalco to acquire majority stake in India Foils
The AV Birla group chairman stated that the move stems from the group's strategy of focussing on sectors where it can maintain its dominant position. It fits perfectly with Hindalco's strategy to attain leadership in the downstream value-added products in aluminium industry, such as foils, alloy wheels and rolled products.

July industrial production dipped to 1.7 pc from 5.2 pc in June
Ten out of 17 two-digit industry groups have shown positive growth during the month of July 1998 as compared to the corresponding months of the previous year. Metal products and spare parts have shown the highest growth of 24.8 per cent followed by paper and allied industries (14.2 per cent), and beverages, tobacco and related products (13.5 per cent).

Basu assures help to boost tea segment in West Bengal
The unique tea festival in Calcutta has apparently stimulated everyone into action. Industry captains are brewing plans to buy more gardens in the state. Chief Minister Basu has offered full assistance to push the famed Darjeeling tea harder into world markets.

Farmers to protest against WTO and free trade in agriculture
Workers of the Bharatiya Kisan Union of Mahinder Singh Tikait and several other farmers, farm labourers and left organisations from all over the country will march to Rashtrapati Bhawan on September 17.

Shiv Sena says sorry to Mahajan in row over Tata airline
Sena's Rajya Sabha member Sanjay Nirupam, who is also the managing editor of his party's eveninger Dopahar Ka Saamna, had written an article alleging nexus between the BJP general secretary Pramod Mahajan and a private airline chief. This is what scuttled the Tata project, Nirupam wrote. The spat rocked the ruling alliance in Maharashtra.

Japan's envoy keen on resumption of economic aid to India
Hiroshi Hirabayashi pointed out that the official Japanese development assistance to foreign countries was governed by strict conditionalities like the recipient country's mass destruction weapons programmes, human rights record and commitment to democracy. It was stopped to China in the wake of the Tiananmen Square incident, he recalled.

Pakistan's hopes rest on IMF and WB loans, but analysts see a bleak future
Analysts said Pakistan is desperate to raise cash reserves, which is why it had agreed to a $ 1.5 billion crisis package from the Islamic Development Bank at such crippling interest rates. It will do little to ease the country's economic crisis, they said.

Indian sugar industry sore over imports from Pakistan
The Indian Sugar Mills' Association said that by the next sugar season's onset, India would have an estimated stock of 5.5 metric tonnes, higher than the normal requirement of three months consumption of 3.5 MT. Next year's production and consumption are estimated at 15 MT each, hence India need not go in for any imports.

• Weekly Review : IT scrips take a dive, but FIIs sustain support



September 12, 1998

It's a question of extent of foreign equity in insurance sector, says Sinha
''It is no longer a debate on private participation but one on the question of the extent of foreign investment,' the finance minister told member-countries of the European Union. Swadeshi did not mean ' anti-technology' or 'anti-foreign investment', but reflects the concern for national interest in a world where each one is looking at 'one's own interest'.

Hegde hints at lifting of sales tax on diamonds
'Growth of exports depends upon how competitive goods are in the world market. Indian gems and jewellery are doing very well in exports and the government is committed to encouraging it further,' the commerce minister said at the 14th India International Jewellery Show 98.

Tata airline not a closed chapter, says Vajpayee
'I have appointed a high-level committee of experts to make an overall assessment of the situation,' the PM said but recalled that representations have been made to him that existing airlines are doing badly and hence there is no scope for a new player.

IDBI to receive 40 per cent of FIs' share of funds from RIBs
Other financial institutions like IFCI, ICICI and IDFC will receive a share much higher than their expectations from the Rs 170 billion raised by SBI from non-resident Indians last month.

Smirnoff ad upsets Indians in UK
A vodka advert, which replaces a naked woman's lower regions with a map of India, has got British Indians up in arms. Indian shopkeepers in London have threatened to boycott the brand. 'It is crude and shallow and does nothing to enhance India's image,' said one angry Indian. An ethnic media group has retaliated by publishing a photograph of a bottle of Smirnoff with a sketch of a demon on the reverse.

Flexibonds4 launched; IDBI to raise Rs 170 billion this year, 40% through pvt placement
The FI has issued an umbrella prospectus for raising Rs 50 billion through public issue in more than one tranche. The second tranche will open in December and the third in March 1999. IDBI is also raising additional funds through a private placement that will be outside the purview of the Rs 50 billion to be raised through the Flexibonds4 issue.

THE REDIFF BUSINESS SPECIAL

A committed, cautious liberaliser and consensus-builder
The new finance secretary, a non-IAS man, ''is all for market reforms and this was amply proven by the manner in which he dismantled the administered price mechanism of petroleum products". Only, he has to guard against the powerful IAS lobby that might still be nursing a grudge at being elbowed out from the most important bureaucratic post in India. A profile of Vijay Kelkar.

• Forex: Rs 42.50/51; rupee down four paise

• BSE: 3083.56; Sensex falls 25 points

• NSE: 899.70; Nifty slides over seven points

September 11, 1998

Sinha oozes optimism: Next century will be ours, gear up with cable, e-commerce, Net
'PSUs have helped the economy in the past, but it is now a point to ponder over,' the finance minister said. 'Divestment of the holy cows is a must. New assets can be created from the divested units.'

Hegde stresses trade with Lanka, hints at common currency for south Asia
The two countries are exploring the possibility of introducing free trade between them well ahead of 2005, when the SAFTA is expected to come into force. On Pakistan, he said: ''We are prepared to supply whatever goods they want, but they are not prepared to buy it officially and would rather have it through unofficial trade.''

New guidelines issued on import of aircraft; A-I, IA and AA net up in Q1
The parliamentary consultative committee has said that the aviation ministry should develop and modernise airports at places like Agra, Gorakhpur, Lucknow, Varanasi, Gwalior, Aurangabad, Jaisalmer and Jaipur to promote tourism.

Goa to review infrastructure privatisation plans Chief Minister Wilfred deSouza is planning to seek Rs 1 billion from the Centre for Goa. Next week, he will meet with the Planning Commission. He said top priority would be given to the power sector.

Government to amend Forward Contracts Act to include futures definition
The Cabinet has been guided by the Kabra Committee for Amendment to Forward Contracts (Regulation) Act, 1952. It has also agreed to strengthen the Forward Markets Commission.

THE REDIFF BUSINESS COLUMNISTS

Excellence beats inflation
Every time I hear people talking about protecting our industries, I puke. Protecting our industries means protecting our industrialists and that is not the job of any honest, self-respecting government. Business is meant for banias. The job of the government is to govern. Not meddle in business, argues Pritish Nandy.

BUSINESS BRIEFS:

• HC issues notice to Centre on SEBI chief's term
• No reservations in B-school, asserts Naidu
• Sri Vishnu offer to open on September 23
• Restructured IVCOL to be a biotech company

• Forex: Rs 42.46/48 paise; rupee gains eight paise

• BSE: 3108.67; Sensex gains over 11 points

• NSE: 907.40; Nifty gains over three points

September 10, 1998

FM urges industry to buy stake in India Inc
Declaring exports as a national priority, Yashwant Sinha said that the government will aim to synchronise the goals of export promotion and revenue collection. 'The department of customs will not be allowed to be a bottleneck in the growth of exports. Rather, it should be a facility and not a roadblock,'' he averred, adding that a taxpayer-friendly approach would be adopted by the departments engaged in collecting revenues. He compared the Indian economy to a tranquil island in a turbulent sea.

Hegde's mantra for stable Asia: counter-trade without dollar reference
In a bid to end the dominance of the almighty dollar in international trade, India had sent a team of officials to Indonesia, Malaysia and the Philippines to explore the possibility of counter-trade without any reference to the US dollar. Talks are on to convene a meeting of the governors of the central banks of the SAARC countries to work out a plan of action.

US declines to set conditions for lifting sanctions
'Ideally, the sanctions should have roughly the same effect on India as they do on Pakistan, the latter being in more fragile economic condition and more dependent on international financial institutions funding which the Glenn Amendment requires us to oppose,' a senior US official said.

Ramar Effect: New herbal wonderfuel to hit market on October 3
At a news conference in Madras, Ramar Pillai distributed bottles containing a litre of his 'wonderfuel' with a label proclaiming that 'this is indeed the wonder substitute for petrol'. The fuel tastes sweet and smells like nailpolish. However, he had a word of caution for those seeking to try it out: 'Please remove all the petrol in your vehicles and use my fuel.'

• Forex: Rs 42.53/56; rupee gains marginal gain

• BSE: 3097.12; Sensex up one point

• NSE: 903.60; Nifty gains over three points

September 9, 1998

Maharashtra is on top, we'll try to set up another B-school in Bombay, vows CM
Manohar Joshi remarked that Wharton School or the proposed Indian School of Business in Hyderabad are not the only business management institutions in the world. He also sought to dispel the impression that investments are shifting to other states. The state remains investors' most favoured destination, he claimed.

RBI rules against advances for badla transactions
The RBI has further stipulated that in case of demat shares, banks can avail of the stock pledging facility and the shares need not be transferred in the bank's name regardless of the holding period. Brokers are free to substitute the shares pledged by them and in case of default, the bank can exercise the option to get the shares transferred in its name.

Anti-cigarette body to protest against FDI in India
Tobacco, whether swadeshi or videshi, is equally poisonous, according to the National Organisation for Tobacco Eradication. In a letter written to the prime minister, it notes that the BJP's tobacco promotion policy is paradoxical to the party's public health programme.

Pakistan plans new package to revive ailing economy
'Without revamping our institutions, slashing down the administration, removing distortions in our laws and ensuring good governance, we would be back to square one even if we get foreign loans,' a senior official of Pakistan's Planning Commission has said.

THE REDIFF BUSINESS COLUMNISTS

The hidden virtues of the Indian economy
The fact that the democratic system has struck firm roots in post-Independence India makes this nation a good bet for long-term investment. And this perspective is clearer from abroad than it is back home, going by the tremendous response of the NRIs to RIB issue, says Dilip Thakore.

BUSINESS BRIEFS

• RBI to allow banks to fix credit norms for SSIs
• Wage issue: unions call off Sept 18 bank strike

• Forex: Rs 42.56/57; demand, supply match

• BSE: 3096.10; Sensex spurts 44 points

• NSE: 899.95; Nifty gains over 12 points

September 8, 1998

Our people made RIBs successful, so give us a share, demands Kerala
Both planners and politicians in Kerala feel the Central government owed the state a major share of the Rs 160 billion mobilised under the bonds as Keralites working in the Middle East and southeast Asian countries constituted the bulk of contributors. In fact, Chief Minister Nayanar has written to the PM demanding the due share.

Panel likely to select Rewas-Mandva for Bombay's new international airport
According to the experts panel constituted by the Airports Authority of India, New Panvel land cannot accommodate an airstrip more than 2,000 feet in length. Safety norms prescribe that an airsstrip should have a length of 6,000 feet. The Rewas-Mandva belt, however, has an extension tract available for setting up the international airport.

Corporate sponsors choose Hyderabad for setting up coveted business school
Business luminaries who piloted the project say they were impressed by Andhra Pradesh Chief Minister Nara Chandrababu Naidu's drive to make Hyderabad a world class technology hub. That, apparently, swung the decision in Hyderabad's favour, though several other states were vying to get presitigious, Rs 1 billion venture located in their respective capital cities.

Sri Vishnu nets Rs 60.5 million on Rs 1.63 billion sales, Raasi Rs 65.6 m on Rs 4 b
The contrast in performance of the two companies is surprising as the manufacturing units as well as markets of both companies were in the same region, analysts said.

Study expects two-wheeler players to zoom into Bajaj Auto's market share
UTI Securities's study on the Indian two-wheeler industry says that Hero Honda, TVS Suzuki and LML would record an expansion in aggregate sales. The study attempts to ascertain the market shares, operating profit margins and aggregate sales derived from financial analysis for a three-year period from 1997 to 2000.

THE REDIFF BUSINESS SPECIAL

The NRI who caused the Thai crash
Rakesh Saxena's activities spanned from corporate coups to political peddling. One story goes that Saxena got British officials involved in a British-based private security company called Sandline International. Sandline plotted the reinstatement of Sierra Leone's ousted president Ahmad Tejan Kabbah by supplying arms and mercenaries, much in violation of the United Nations' arms embargo. In exchange, Saxena was to get free access to Sierra Leone's diamond, gold and mineral mines. Sandlines' role is under investigation now, and could cost Foreign Secretary Robin Cook his job.

THE REDIFF BUSINESS FEATURE

Labour shortage threatens to pluck joy out of Lanka tea industry
Even as the 'Ceylon tea' segment rejoices over lifting of import curbs by India under the SAARC initiative, shortage of skilled pluckers of leaves, mostly Tamils of Indian origin, may turn the boom into gloom. The spread of education and the incursion of television in the region have induced the estate youth to think of a life outside the drudgery of the plantations.

BUSINESS BRIEFS

• Mutual funds not doing well, states RBI report
• India is hurtling towards crisis, warns economist
• Rangarajan exhorts banks to 'swim' hard
• REL's 'owners' to get Rs 200 for each share
• SEBI panel seeks to cut initial public offer costs

• Forex: Rs 42.55/56; rupee remains steady

• BSE: 3051.83; Sensex gains 77 points

• NSE: 887.10; Nifty gains over 20 points

September 6-7, 1998

The NRI fugitive
Rakesh Saxena had designs on diamond and mineral mines in Sierra Leone. Runs bank accounts in Switzerland. Owns companies in Cayman Islands and Virgin Islands. And is wanted in Thailand which is still smarting from the scandal he had allegedly triggered.

Deficit-hit Maharashtra seeks Centre's nod to impose tax on service sector
Maharashtra's finance minister Mahadev Shivankar has suggested that while assessing the financial strength of a state, the Indian government should take into consideration various criteria like the amount of funds allocated to various corporations and public developments projects, besides assets and debts.

BUSINESS BRIEFS

• Prabhu discharged in payment default case
• RBI okays transaction involving EEFC funds
• Urban Land Ceiling Act to go by month-end


September 5, 1998

Ratan Tata rules out reviving airline project
'The decision to pull out of the project was not an ultimatum but just a withdrawal.' He also said the Tatas were not involved in the proposed international airport project in Hyderabad. 'I came to know about it only on Friday morning from Chief Minister Nara Chandrababu Naidu,' he added.

RBI foresees 6.5 per growth
In its annual report for the year 1997-98, the central bank said that there were signs of recovery in both industrial and agricultural production followed by the expectations of good crop output induced by favourable rainfall.

NTPC proposes power project in Bangladesh
It would be a joint venture, involving the Bangladesh Power Development Promotion Board and Gas Company.

BUSINESS BRIEFS

• Ports, cities and expressways to be linked
• New car from Hindustan Motors

• Forex: Rs 42.55/57; rupee depreciates by 5 paise

• BSE: 2975.1; Sensex gains 56.21 points

• NSE: 846.45; Nifty gains nearly four points

September 4, 1998

Operators, Zee trade charges; latter denies merger with STAR
Cable TV operators charge that Zee has secret monopolistic plans to merge with STAR and foray into satellite broadcasting, terrestrial telecasting, sky teleshopping, cable distribution, programme production, advertising, basic telephony and satellite communications. But Zee says operators are taking advantage of media speculation to make allegations which are ''not in good taste, baseless, derogatory and uncalled for''.

Pakistan seeks IMF help to avert economic crisis
Pakistan's currency reserves have fallen to $ 600 million, intensifying doubts about its ability to pay its massive foreign debt. The country also suffers from high inflation and a depreciating currency, the rupee.

Flow of RIB proceeds, RBI moves expected to impact banking liquidity
While demand for funds is expected to improve gradually, a sharp and sustained increase in credit pick-up during the busy season could put an upward pressure on interest rates in the second half of the year.

THE REDIFF BUSINESS INTERVIEW

'Tata project was scuttled to protect a private airline'
'What is so controversial about the Tata airline project? It has become controversial because it has been purposely made to be controversial by a private airline that is lobbying against it. On top of that, political godfathers of this airline have been opposing the Tata project. Same thing happened with the previous regime. I think it's unfortunate that the BJP government which says it is different from other governments, is not really different.' Rajya Sabha member and convenor of United Parliamentary Group, Jayant Malhoutra, spits fire at Tata-baiters in an exclusive interview.

BUSINESS BRIEFS

• Foreign equity limit in banks raised to 40 per cent

• Forex: Rs 42.51/52; rupee gains one paise

• BSE: 2918.89; Sensex gains 32 points

• NSE: 846.45; Nifty gains nearly four points September 3, 1998

India will miss out on demographic bonus: UN report
According to the UN, all of south Asia is poised to experience the demographic bonus over the next two decades. But to take advantage of the bonus from a bulge in the workforce, India and other south Asian countries need to invest in their human population, especially in education and health in the manner those countries in east Asia and southeast Asia did 30 years ago.

Prasar Bharati: HC makes CEO appointment subject to outcome of Gill's petition
Delhi high court's division bench said: 'Gill's petition is conspicuously silent about the two persons (I&B ministers Sushma Swaraj and Mukhtar Abbas Naqvi) who have been impleaded as parties and in the absence of this, no ground was made for issuance of the notice (to them).' However, show-cause notices were issued to the I&B ministry, the law ministry, the Cabinet Secretary and the Prasar Bharati Corporation.

THE REDIFF BUSINESS SPECIAL

Three impediments that keep India off the global league
''Japanese sanctions were imposed not with any intention to penalise India; rather they are an expression of dismay and disappointment of the Japanese people over nuclear tests. India and Japan must, however, work together to promote trade and investment. But there are some impediments to Japanese investment.'' Japan's ambassador to India, Hiroshi Hirabayashi, on factors that debilitate Indian economy.

BUSINESS BRIEFS

• Chaukar is new MD of Tata Industries
• Enron raises $1 billion abroad for Dabhol
• Rupee will come under pressure: I-Sec study
• 'Government is committed to private airports'
• Honda offloads stake in JV with Kinetic
• Banking may be part of LIC's diversification plan
• Kotak Mahindra launches holiday finance scheme

• Forex: Rs 42.51/52; rupee makes marginal gain

• BSE: 2886.91; Sensex gains over 24 points

• NSE: 842.50; Nifty gains over eight points
September 2, 1998

THE TATA TAKE-OFF THAT WASN'T

Tatas withdraw airline proposal, accuse government of dithering
''The Tata proposal to provide a world class airline remained on paper due to the inability of four successive governments to implement their own policies,'' a Tata spokesperson said. ''The current proposal, made in December 1997, is fully in line with the government policy and the guidelines issued by the directorate general of civil aviation.''

Eternity on the runway, as take-off signal remains elusive
'You can't get more swadeshi than the Tatas,' points out former industry minister Murasoli Maran. 'The fact that three successive governments, all of different parties, could not clear a project supported by the mighty Tatas, can only speak for the strength of the 'vested interests' that have carried the day.'

'I refused to approve the Tata proposal because I felt they had a hidden agenda'
'One of the single most important hidden motives of the Tata-Singapore Airlines project was to kill Indian Airlines.' Former aviation minister Chand Mahal Ibrahim, who first scuttled the venture, speaks out.

Government to allow full investment of consortia in airport projects
Aviation Minister Anant Kumar said the government would clear the international airport project at Devanahalli near Bangalore ''within a week'', if the Tata consortium approached it.

OTHER REPORTS:

Delhi HC asks government to take a stand in agro companies' scam
Wrongful acts of omission and commission have put an estimated Rs 100 billion of agro plantation investors' money at risk. A petition accused the SEBI and its chief D R Mehta of collusion with some companies.

Plans afoot to ease loan repayment norms for corporates
The finance ministry is considering to change the norms under which financial institutions currently stop loan disbursement to corporate houses if any one of the companies run by a group or house defaults on loans.

States reject plan to transfer cinema to Concurrent List; Centre reveals uplinking logic
States and UTs are in agreement that the cinema issue could affect their revenues. However, they are prepared to consider revision in the entertainment tax. The Centre feels the grant of uplinking facilities to TV channels would help the government in monitoring their editorial content, besides helping to save valuable foreign exchange.

BUSINESS BRIEFS

• Tax disputes scheme to recover Rs 520 billion
• Gill moves court over ouster from Prasar Bharati

• Forex: Rs 42.52/53; rupee loses one paisa

• BSE: 2862.55; Sensex crashes over 71 points

• NSE: 834.55; Nifty loses 18 points

September 1, 1998

Fresh NRI enquiries raise hopes of revival in India's real estate market
According to Cushman and Wakefield, an international real estate consultant, the NRI investors have made inquiries on several available housing stock in Bombay in the last two months. ''We expect these inquiries to convert into transactions during the last quarter of 1998,'' says its paper on the market scene.

RIBs a sign of India's inherent strengths and imminent turnaround, says Sinha
The finance minister said the government is working out a scheme by which the foreign exchange risk in the RIB issue would not affect the country's fiscal deficit at any stage. He dismissed the charge that the fluctuating exchange rate would mean that the country would end up paying a lot more for the bonds issue. Whenever the government borrowed in foreign exchange, it assumed foreign exchange risk, he said.

Make cinema an industry, Centre tells states; market awaits transfer to concurrent list
This is perhaps for the first time that cinema will be the focus of the state information ministers conference. The meet will also discuss ways to provide institutional or bank financing for films, the grant of industry status at the state level, enforcement/amendment of the Copyright Act, and reduction and rationalisation of entertainment tax by states and Union Territories.

US links lifting of sanctions to non-proliferation
United States's Assistant Secretary of State for South Asian Affairs Karl Inderfurth has said that the ongoing diplomatic exercise featuring Jaswant Singh and Strobe Talbott will seek to ''reconcile the vital national interests of the United States and the interests of the entire world in nuclear nonproliferation with the vital national interests of India and Pakistan, respectively.''

Prasar Bharati ordinance meant to revive MPs' panel, not against Gill, says I&B minister
Announcing that All India Radio director-general O P Kejriwal had been asked to hold charge as the officiating chief executive officer, Sushma Swaraj said that the selection committee will be asked to take steps to fill the five vacancies in the Prasar Bharati board, including that of CEO.

HC asks government, TRAI, Sukh Ram to file replies in cell phone licence scam
The parties were asked to file their replies within two weeks and the matter was listed for further hearing on November 5.

BUSINESS BRIEFS

• RIL's Intellectual Report to be published annually
• India's first agri-card launched

• Forex: Rs 42.50/52; rupee recovers three paise

• BSE: 2933.85; Sensex gains over 26 points

• NSE: 852.80; Nifty gains three points

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