Ghulam Samdani Gráficos Forex

Forex Trading Magic Wave Review Onde comprar Para começar, para fazer o pedido sem fazer uso do meu link de afiliado você precisa usar este hyperlink (lembre-se que você won8217t ser elegível para a sua oferta de bônus embora se você escolher). Além disso, eu recebo um monte de perguntas sobre como encomendar produtos neste site. Com Forex Trading Magic Wave você primeiro tem que verificar a sua página web. Dê uma olhada no passo de vendas e, em seguida, role até o botão Adicionar ao carrinho. Em seguida, você será levado até a página de pagamento. Todos os pagamentos são tratados por Clickbank, um processador de pagamento estabelecido. It8217s uma página de pagamento muito fácil, e apenas depois de comprar you8217ll receber um e-mail dizendo-lhe como você pode carregar o produto. Publisher8217s Descrição Faça 50 ou mais pips todos os dias usando este simples de usar Estratégia Horários mais elevados, como H4 e Diário leva dias e algumas semanas para fazer a configuração certa para o comércio Embora dá configurações em todos os quadros de tempo, eu mesmo usa Principalmente por 5 e 15 min Nós simplesmente não podemos controlar nossas emoções como medo de perder e Greed Estratégias de gráficos intradiários como H1, 15. e 5 min gráficos Os meus gráficos fala por si mesmo e não requer explicação Comentário do usuário e de discussão Ao pensar em comprar um produto Não há nada como ouvir pessoas em circunstâncias equivalentes a você. Devido a isso we8217ve tem as opiniões dos consumidores parte da revisão 8211 para permitir que você ouça de indivíduos exatamente como você. Então, se you8217ve comprou Forex Trading Magic Wave por favor nos diga a sua opinião. Uma resposta para 8220Forex Trading Magic Wave Review8221 O que você começa quando você compra o sistema de onda mágica de negociação forex. Parece um sistema sólido, mas o site não tem informações e site de contato. Estatísticas do Produto e Avaliação Good 8211 portanto, deve haver zero incertezas em relação ao que exatamente este programa faz. O próximo pensamento é 8211 é de alta qualidade Para responder a esta pergunta, voltamos para estatísticas. Todos os produtos que analisamos utilizam o mesmo processador de transações. Eles dão estatísticas sobre cada um dos itens que incluem. (Confira a página sobre nós para obter mais informações sobre como usamos as estatísticas). As estatísticas nos dão duas indicações de qualidade: frenesi do comprador e satisfação do comprador. Satisfação do comprador Ok, I8217ve chicoteado para fora a calculadora eo ranking de satisfação comprador final para Forex Trading Magic Wave é 99,72 / 100. Isso é incrivelmente alto, o que mostra que quase todos os clientes estavam satisfeitos com o produto. Frenzy Comprador Frenzy Rating é realmente um termo I8217ve cunhado para nos ajudar a avaliar a quantidade de interesse existe no produto. Quanto maior a 8216frenzy8217, mais as pessoas estão lutando com pressa para adquirir o produto. Quanto maior a arremetida, maior o nível de qualidade do produto, ou assim a teoria vai. Forex Trading Magic Wave pontuação 61,80 que mostra uma quantidade perfeitamente padrão de vendas. It8217s ainda não é um best-seller, mas poderia estar no bom caminho. The Bottom Line Bem, we8217ve chegou à última parte da crítica e é o momento de somar todas as vantagens e desvantagens e fornecer-lhe a pontuação final. Este ranking leva em conta a pontuação de satisfação, a pontuação frenesi, e eu pretendo rever isso dependente dos pensamentos e opiniões das pessoas neste site. Ele também leva em conta a confiança que eu coloco no site do produto8217s e autor. Portanto, minha pontuação final é de 8,98 / 10. It8217s um ranking líder 8211 e isso significa um produto top-notch. Você deve adicioná-lo direito ao topo de sua lista curta de compra É um programa top rated, there8217s nenhuma questão sobre isso. Mas é o melhor que você pode gostar, além de olhar para o programa mais bem avaliado neste site para suas categorias. Então você pode querer examinar cada categoria e descobrir se há um produto que melhor corresponde às suas necessidades. Eu recomendo que você clique nos links a seguir. Câmbio. Negócios / Investimentos Forex Trading Magic Wave Bônus Se você comprar este produto imediatamente após visitar seu site através do nosso link, nós recebemos um pagamento de comissão do comerciante do produto. Portanto, gostaríamos de dizer obrigado. 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Com o primeiro aniversário de sua morte na idade de 87 em 5 de setembro do ano passado, homenagens ao diminutivo ainda mídia savvy freira que atendidos a Calcutá carente voltaram a esta questão para a frente. Até mesmo uma pessoa como Madre Teresa, cuja devoção desinteressada aos oprimidos e oprimidos ajudaram a conquistá-la no Prêmio Nobel da Paz de 1979, não pode justificar uma aceleração do processo, disse um porta-voz do Vaticano. Todos os candidatos à santificação são iguais perante Deus, disse ele. As regras exigem uma espera de cinco anos antes do início do caminho para a santidade. Após sua morte, muitas vozes dentro da igreja católica romana tentaram pressionar por uma exceção no caso de Madre Teresas e pediram uma canonização imediata. Entre eles estava seu amigo amigo, o cardeal italiano Pio Laghi, agora com 76 anos, que argumentou que Madre Teresa havia feito o que Jesus fez há 2.000 anos. Em Roma, no entanto, membros de Suas Missionárias da Caridade, uma comunidade de 2.500 freiras ao redor do mundo que ministram aos pobres, doentes e abandonados, mantêm as regras do Vaticano e não pressionaram por qualquer início precoce do processo de canonização. Embora o Papa João Paulo II simplificasse o processo em 1983, o caminho para a santificação ainda é longo. Começa com o bispo local na diocese onde viveu o candidato, que deve conduzir uma investigação completa sobre os atos, escritos e possível martírio de um indivíduo cuja reputação de santidade tem sido levada à atenção das autoridades religiosas. No caso de Madre Teresa, caberia à diocese de Calcutá recolher provas do que a igreja designa como a virtude heróica do candidato, ou seja, a prática das virtudes cristãs da fé, da esperança e da caridade em grau extraordinário. Se este inquérito inicial se revelar digno nos olhos dos bispos, o dossiê será transferido para uma comissão especial do Vaticano para um segundo olhar para ver se é considerado digno o suficiente para enviar ao Papa, que toma a decisão final. Em seus 20 anos como pontífice, João Paulo II quebrou os registros da igreja por pronunciar o maior número de beatificações - um primeiro passo formal no caminho da santidade - e canonizações reais. Em agosto, beatificou 803 pessoas e canonizou 279 santos. CHENNAI, 1 de setembro: Praticamente todos os principais partidos políticos em Tamil Nadu estão ocupados a mudar lealdades e cismas em alianças políticas dominam a cena como o jogo de números no Centro joga uma sombra sobre eles. Os aliados da votação de 1996, o DMK e o Tamil Maanila Congress (TMC) continuam a fazer parte da Frente Unida (UF), mas o DMK parece estar chegando ao BJP em um esforço para salvar o seu Governo da influência marauding do AIADMK, enquanto os TMCs GK Moopanar prefere um Governo liderado pelo Congresso no Centro. O ponto de vista dos TMC é fortificado pela inclinação dos partidos de esquerda para abrir caminho para um governo liderado pelo Congresso, que eles consideram ser o mal menor em comparação com o BJP. No entanto, com a opinião dividida na UF, a confusão permeia, com cada constituinte riscando a melhor opção para si. Apesar dos objetivos diferentes, o DMK e TMC continuam mantendo sua aliança em Tamil Nadu à tona. No entanto, uma ruptura será inevitável se tiverem que escolher entre o BJP eo Congresso como um aliado nacional. Seria necessário sagacidade considerável para manter a sua aliança indo em Tamil Nadu no caso de os dois optar por diferentes estábulos no Centro. A imagem do outro lado é ainda mais caótica. O AIADMKs agora-em agora-off relacionamento com o BJP tem mesmo seus aliados protestando. O Pattali Makkal Katchi (PMK), o Marumalarchi DMK (MDMK) eo Congresso Tamizhaga Rajiv (TRC) estão dispostos a jogar o seu lote com o BJP no Centro, mas relutam em anunciar uma ruptura com o AIADMK em Tamil Nadu. Estes aliados do AIADMK anunciaram que continuariam a apoiar o Governo Vajpayee e que queriam que o AIADMK continuasse a apoiá-lo. A PMK e o MDMK até mesmo atingiram uma nota de rebelião ao declarar que continuariam a apoiar o governo do BJP mesmo que Jayalalitha retirasse o apoio de sua parte. A CVR também deixou claro que não retiraria do governo. No entanto, eles estão dispostos a ferir, mas com medo de greve, quando se trata de sua relação com o AIADMK. Obviamente, para a TRC, é difícil desistir de uma boa carteira como o Petróleo. Estes aliados, também, estão em um dilema de escolher entre o BJP e o AIADMK como seu parceiro de pesquisa futuro, assim como os parceiros da UF têm suas próprias opções. É assim que o líder do MDMK Vaiko eo fundador-líder da PMK, Dr. S Ramadoss, pedem aos seus partidos em relação ao AIADMK e não levam o seu relacionamento com o AIADMK ao ponto de não-retorno, mesmo deixando claro para o BJP liderança que eles estão por ela. As dúvidas do MDMK, PMK e da TRC em relação às ameaças repetidas do AIADMK contra o governo Vajpayee podem ser atribuídas às formações políticas no Centro. Esses três partidos não encontram um lugar na estratégia de longo prazo da presidente da AICC, Sonia Gandhis, para formar um governo liderado pelo Congresso. A suavidade percebida do MDMK e PMK para o LTTE, que foi identificado pela Equipe de Investigação Especial (SIT) como responsável pelo assassinato de Rajiv Gandhi, veio no caminho de qualquer entendimento com o Congresso. Sonia Gandhi também está chateada com a forma como Vazhapadi K Ramamurthy, que lançou uma festa (TRC) em nome de Rajiv Gandhi, se uniu ao BJP e se juntou ao seu governo. Com as portas do Congresso provavelmente não abrir para essas três partes, eles preferem estar dentro da segurança oferecida pelo BJP, especialmente quando minoriações lucrativas estão em jogo. Por conseguinte, a situação política fluida lançou o curioso espetáculo destas três partes tentando agradar o BJP, por um lado, mesmo que isso signifique desgosto para a senhora Poes Garden e, por outro lado, humilde Jayalalitha para manter o AIADMK combinado indo. Jayalalitha, por sua vez, é um aliado proeminente da BJP, mas está mais ocupada nos dias de hoje tentando estabelecer linhas de comunicação com os líderes da AICC e inaugurar um governo alternativo. Seu único aliado neste empreendimento é Subramanian Swamy. O momento decisivo em que os partidos terão de se levantar e contar será o momento em que o Congresso se movimentar para formar um Governo no Centro e o AIADMK apoiar o Congresso. Se e quando isso acontecer, o AIADMK poderia ganhar alguns no Centro e perder alguns em Tamil Nadu. Os Vikings também podem ter inventado o precursor da pizza moderna há mais de mil anos, de acordo com descobertas publicadas por um arqueólogo norueguês . Crostas planas e redondas com uma variedade de coberturas saborosas e torradas em travessas de pedra em grandes fornos estilo pizza estavam sendo consumidas por vikings famintos já no século IX dC, o pesquisador Astri Riddervold disse em Oslos Digs descobriram os fornos e os pratos de pedra , Disse ela, acrescentando que as coberturas claramente correu a gama de tudo disponível em qualquer época do ano. Ela disse que as evidências indicam que as pizzas de frutos do mar eram um favorito especial por cerca de 400 anos até inovações em procedimentos de moagem e levedura-produção deu origem a panificação no século 13, inaugurando o desaparecimento de pizzas na Escandinávia até o século XX. O ministro da Agricultura, C Byre Gowda, culpou na terça-feira a estupidez do governo do BJP no Centro pelo déficit nacional em importações de fertilizantes e manteve o primeiro-ministro AB Vajpayee, Que também detém a carteira de Agricultura, responsável direta por essa negligência do setor agrícola. Ele estava contrariando Karnataka BJP presidente B S Yediyurappas acusação, feita na segunda-feira, que o Governo do Estado estava negligenciando os interesses dos agricultores por não tomar medidas para atender às suas necessidades de fertilizantes. Defendendo a falta de exigência dos Estados Unidos para o fertilizante, Muriate de fosfato (MoP) - para esta estação de kharif - ele disse que a exigência de todo o país estava sendo atendida através de importações que sempre foram da responsabilidade do governo da União. Gowda disse aos meios de comunicação aqui, que foi pela primeira vez que o país estava testemunhando esse déficit sem precedentes de mais de 50 por cento no fornecimento de MoP, que não é produzido localmente. De uma necessidade total de 21,40 mil toneladas métricas (mt) de MoP, apenas 10,00 mil toneladas foram fornecidas em todo o país este ano. Com o primeiro-ministro a manter-se responsável pela carteira de Agricultura para si mesmo, e Som Pal ser apenas um ministro de Estado, isso equivale a uma pura negligência do setor agrícola no país pelo governo BJP, acrescentou. Em todos os anos desde que os agricultores começaram a usar fertilizantes, o governo central cuidou das necessidades de fertilizantes de todo o país. A India Potash Limited, uma empresa de propriedade exclusiva do Governo da Índia, foi investida de poderes para autorizar as importações a este respeito. No entanto, este ano o Centro não tinha importado a quantidade necessária de potássio e por causa da estupidez dos governos do BJP todo o país tem de enfrentar esta escassez agora, acrescentou. O próprio Gowda havia escrito tanto a Som Pal como ao ministro de fertilizantes da União, S S Barnala, em junho deste ano, instando-os a tomarem medidas para atender às necessidades dos Estados. Além disso, já em março, durante a reunião zonal de ministros da agricultura, Karnataka havia indicado sua exigência para a temporada. No entanto, a resposta dos dois ministros não foi positiva. Posteriormente, o Ministro-Chefe J H Patel também escreveu para ambos os ministros da União, com pouco sucesso. No mês passado, tanto Gowda como Patel também tentaram encontrá-los, mas estavam ocupados lidando com os problemas políticos em seus respectivos estados. Fizemos todos os esforços para disponibilizar a quantidade necessária de MoP no Estado. Mas é responsabilidade do Governo da Índia cumpri-la, acrescentou. MUMBAI, SETEMBRO 1: O governo do estado concedeu o contrato para a instalação de uma usina hidrelétrica de 12 MW em Bhandaradara, no distrito de Ahmednagar, para uma empresa NRI D L International. Joshi anunciou hoje esta decisão depois que o gabinete de estado aprovou o mesmo em sua reunião semanal rotineira em Mantralaya. A DLI, de propriedade de um NRI originário de Maharashtra, V Rajadhyaksha, estará envolvida na instalação da usina de 36 MW que será concluída em 15 meses. Falando aos repórteres após a reunião semanal do gabinete, Joshi disse que a usina na conclusão seria dada à empresa em um contrato de 30 anos. A produção de energia seria comprada pelo Conselho de Eletricidade do Estado de Maharashtra (MSEB) a uma taxa inicial de Rs. 2.13 e posteriormente a Rs 2.38 por unidade. A DLI pagaria Rs 18 lakh por ano ao Departamento de Irrigação do governo do estado como realeza para usar água para gerar energia. O referido projeto foi resultado da exposição Advantage Maharashtra realizada recentemente para atrair NRIs para investir em setores-chave de desenvolvimento em Maharashtra. O Conselho de Estado, em outra decisão, conferiu ao MSEB o direito de alterar o acordo entre o governo do Estado e Reliance Industries Limited sobre o projeto Rs 463.13-cr Patalganga. O governo e representantes da empresa assinaram recentemente um acordo segundo o qual o MSEB compraria cerca de 410 MW de energia gerada na planta proposta. O acordo previa que a taxa de capacidade nivelada seria de Rs 1,55 por unidade. Mas quando a Autoridade Central de Eletricidade (CEA) impôs certas condições antes de sancionar o projeto para reduzir os custos do projeto em R $ 32,82 crore e aumentar a capacidade de geração para 447 MW dos 410 MW projetados, resultou na redução da carga de capacidade nivelada para Rs 1,41 por unidade. O Gabinete aceitou hoje o pedido do RI de aumentar a taxa e autorizou o MSEB a alterar o acordo anterior. A nova carga de capacidade nivelada será Rs 1,48 por unidade, em vez do mais cedo de Rs 1,55 por unidade. MYSORE, SETE 1: O capítulo de Mysore de povos para animais (PFA) decidiu-se à campanha de encontro à prática de fazer os elefantes carregar o howdah dourado de 750 quilogramas durante as celebrações de Dussehra. Isso equivale a crueldade em animais. Por que um elefante deve ser forçado a carregar o enorme peso por mais de 4 km durante a procissão Vijayadashami além de ter que praticar levá-lo semanas antes das comemorações Geetha Manja, PFA convocador perguntou. Geetha disse que o assunto foi discutido com o presidente nacional PFA Maneka Gandhi no domingo. Não imporemos nossa vontade aos organizadores ou ao povo, mas tentaremos convencê-los a não submeter os elefantes a tarefas tão ardentes. O howdah é usado para carregar o ídolo da deusa Chamundeshwari durante o festival. Sugestões para usar uma carruagem para levar o howdah têm feito as rondas desde que um elefante, Arjuna, danificou-o quando ele lançou uma birra quatro anos atrás. A morte de um outro elefante, Drona, que carregou o howdah por 16 anos, reforçou a idéia. Enquanto isso, especula-se que o descendente da família real de Mysore, Srikantadutta Narasimharaja Wadiyar, não entregará o howdah dourado ao governo do Estado. Wadiyar tinha ido anteriormente no registro dizendo que ele iria entregá-lo como ele não queria ser visto obstruindo as comemorações. Mas com o presidente dando o seu consentimento para a tomada do palácio, Wadiyar é improvável que furar a suas palavras. Os móveis no palácio, incluindo o trono de ouro são listados como coleções privadas de Wadiyar, com outros estão sob gestão conjunta do governo e Wadiyar. O ministro da Cultura e presidente da comissão das celebrações Dussehra Leeladevi R Prasad está frenético para encontrar Wadiyar e ter o assunto resolvido o mais rapidamente possível em um momento e lugar de sua conveniência. Mas Wadiyar está fora da cidade lutando batalhas legais para salvar seus palácios. Conseqüentemente, o ministro deixou uma carta com o oficial especial de Dussehra Bore Gowda para ser entregado pessoalmente a Wadiyar quando retornar. Na carta, o ministro procurou a cooperação total do scion para organizar o Nada Habba (um festival dos povos) sem nenhum hiccups. No entanto, ela disse ao The Indian Express que ela iria recorrer a medidas legais, se necessário para garantir o howdah dourado. Disse que procurou prevalecer sobre Wadiyar que o governo não estava para fora insultar qualquer um. NEW DELHI, 1º de setembro: O Congresso finalizou hoje a lista de membros executivos e portadores de escritórios de sua unidade de Karnataka após um longo atraso de cerca de dois anos. Também preencheu as vagas de chefes de 12 unidades distritais do Estado. O processo de finalização prosseguiu até esta tarde. O chefe do KPCC, Dharam Singh, teve extensas consultas ao longo das últimas semanas com o alto comando do partido representado por Tariq Anwar, secretário geral encarregado do Estado. A lista de 152 membros tem 18 vice-presidentes, 25 secretários gerais, 28 secretários, 31 membros executivos, 42 convidados permanentes e 16 convidados especiais. MOSCOU, 1º de setembro: No meio do impasse entre o presidente russo Boris Yeltsin ea câmara baixa do Parlamento, dominada pelos comunistas, o primeiro-ministro em exercício, Viktor Chernomyrdin, propôs hoje uma lista de ministros para aprovação, mesmo que as chances De sua própria re-eleição apareceu instável. Os comunistas expressaram sua determinação em rejeitar novamente a candidatura de Chernomyrdins na Duma. De acordo com a lista apresentada por Chernomyrdin a Yeltsin para aprovação, os ministros da Defesa, do Interior, dos Negócios Estrangeiros e do serviço federal todo-poderoso que cuida da segurança interna manterão seus postos, informou a agência de notícias Itar-Tass citando funcionários do governo. O desenvolvimento veio mesmo como o presidente eo partido comunista afirmou sua intenção de estar com suas posições. Enquanto Yeltsin disse que insistiria em Chernomyrdin como sua escolha para primeiro ministro, apesar da retumbante rejeição de sua nomeação ontem pela Duma, o líder do Partido Comunista Gennady Zyuganov disse que sua facção rejeitaria novamente o primeiro-ministro designa candidatura na segunda votação prevista para a próxima Segunda-feira. Eu insisto que Chernomyrdin ser confirmado como primeiro-ministro o mais rapidamente possível. Ele é meu candidato e insistirei nisso. Eu, claro, vou lutar para que, literalmente, no curso da semana, ele será confirmado como primeiro-ministro, disse Yeltsin em uma escola de Moscou para marcar o início do novo ano acadêmico Russias. Zyuganov, entretanto, disse aos jornalistas que a nossa decisão é firme - vamos votar contra a candidatura de Chernomyrdin. Ele (Yeltsin) insistiu na nomeação de Ilyushenko (ex-procurador-geral) e nomeou sua candidatura três vezes, que mais tarde foi direto para a prisão. Ele insistiu na nomeação de (Sergei) Kiriyenko, que faliu o país. Agora Yeltsin está novamente insistindo em Chernomyrdin. Este é o molestation da Duma, estupro da Rússia, disse Zyuganov. Uma moção para confirmar a nomeação de Chernomyrdins foi derrotada por 253 votos contra 94 ontem, mas Yeltsin em poucas horas o renomeou para uma segunda votação. Três rejeições do candidato de Yeltsins pela Duma levariam à dissolução de Dumas e a uma eleição parlamentar antecipada, uma opção que a Rússia não pode suportar numa época de profunda crise econômica. Questionado sobre a perspectiva de uma dissolução precoce da Duma, Zyuganov disse: O que está em jogo não é a dissolução da Duma, mas a dissolução do país. Copyright cópia 1998 Indian Express Newspapers (Bombaim) Ltd. MUMBAI, 1 de setembro: O assassino silencioso está nele, mais uma vez. Muthiah Muralitharan acrescentou mais uma pena a sua tampa, obtendo 16 batedores ingleses no Teste Oval para gravar a vitória histórica de Sri Lankas na terra do Old Blighty. Não só foram suas figuras o quinto melhor sempre em Test cricket, ele também se tornou o segundo spinner, após o lendário West Indian Lance Gibbs, para alcançar a cobiçada figura de 200 wickets de teste. Seu sucesso não foi apenas uma vitória pessoal, mas também é um tributo à fé que o Conselho de Críquete do Sri Lanka repousou nele. Sob tremenda pressão, depois de ter sido chamado para atirar pelo árbitro australiano Darell Hair na turnê Lankas Down Under em 95-96, a maioria dos jogadores teria quebrado. Não Murali, e o que é mais seus companheiros de equipe, e mais importante a placa de críquete de Lankan rallied atrás dele. Não mandando ao redor, foi os sinais de placas de Lankan ao ICC. Nós respeitamos sua contribuição ao grilo de Lankan e jogá-lo-emos mesmo se Murali não pode bacia seu fora spinners. Claro, ele rodará a perna na próxima Prova, disse o conselho, mesmo quando a Associação Australiana de Cricket estava pressionando a ICC para bani-lo. Subseqüentemente, cancelado pelo ICC, Murali, como certamente o lado inteiro de Lankan, era um lote mudado. Esse incidente mudou toda a percepção de críquete para nós. Ele reuniu todos os membros e os endureceu. Na verdade, foi um longo caminho em instar os jogadores para mostrar ao mundo o nosso potencial. A vitória na Copa do Mundo, em geral, foi o resultado disso, uma vez confessou Ranjit Fernando, um ex-jogador de Lankan virou administrador, que ele próprio foi instrumental em aconselhamento Murali durante o período turbulento. E agora, os poderes de críquete estão nisso mais uma vez. O treinador inglês David Llyods suspeitas sobre a ação de boliche de Muralis na imprensa inglesa na véspera do último dia do jogo de teste não passaram de um truque, destinado a perturbar Murali antes do último jogo decisivo. Mas, Murali estava imperturbável e como o resultado mostrou, Lloyd teria sido melhor aconselhado a aconselhar seus próprios batedores sobre a arte de jogar boliche em vez de encontrar falhas em outro lugar. Mas os ingleses são sempre conhecidos por cuidar de um rancor ou reboque, seja a poluição de Calcutá ou os camarões de Madras. Os comentários de Lloyds podem ter ateado fogo realmente Murali até expor o batting inglês frágil. Eles pagaram caro pela linha de indecisão em suas mentes. Preso entre jogar a frente ou voltar, eles não conseguiam entender as habilidades de Muralis. Se Alec Stewart não estivesse correndo, quem sabe Murali pode ter imitado outro fora-spinner, o feito de Jim Lakers de levar todos os dez wickets em um teste. Navjot Sidhu, indiscutivelmente um dos melhores batedores de bowling fora spin no mundo, sente que Murali é simplesmente unplayable para batsmen jogando a partir do vinco. Você tem que usar seus pés enquanto jogá-lo. Ele é muito preciso e com a quantidade de volta que ele recebe, você tem que ficar em cima dele, senão você está condenado. No meio, o preenchimento é a melhor defesa para ele. Pode-se confiar em Sidhu como ele tem sido bastante bem sucedido contra Murali. O clobbering que Murali recebeu do teste de Lucknow em 93-94 (Sidhu bateu seis seis fora de Murali) ou as últimas temporadas S A S Nagar Test confirmam a teoria de Sidhus. Ainda assim você não pode menosprezá-lo. Ele é um jogador campeão com um grande coração, acrescenta Sidhu. Na verdade, o novo e excitante fora-spinner Harbhajan Singh vê Murali como um modelo para si mesmo e sente que ele seria muito feliz para obter algumas dicas dele Fumaça sem fogo é difícil ea ação Muralis às vezes dobradiça na beira De suspeita (quase todos os off-spinner é assim). Felizmente, ele tem o apoio de seu conselho muito diferente do nosso próprio Rajesh Chauhan, que ele próprio pode ter perdido a contagem do número de vezes que ele foi colocado sob suspeita e depois limpos pelo ICC. Uma pena que nossa placa não poderia estar acima para uma causa dos jogadores internacionais. Murali, o único tamil na equipe Lankan, sempre foi ofuscado por Shane Warne, Anil Kumble e Saqlain Mushtaq no críquete internacional. Não mais como ele tem esculpido um lugar para a sua arte. Para isso, ele tem que agradecer a sua própria diretoria mais do que qualquer outra pessoa. A Tatas hoje retirou por agora sua proposta de Rs 1475-crore para uma companhia aérea doméstica cobrando quatro governos sucessivos da União com a incapacidade de implementar suas próprias políticas, reter assim afastamento Para o projeto por mais de três anos. Apesar de estarem em conformidade com as diretrizes da Aviação Civil, a proposta Tata permaneceu no papel devido à incapacidade de quatro governos sucessivos para implementar suas próprias políticas, Sujit Gupta, diretor residente de Tata Industries Limited, disse mediapersons aqui. Em vez disso, o ministério agora planeja levar mais tempo para considerar questões levantadas por terceiros que não têm relevância para a política em vigor ou para a proposta Tata, disse um comunicado da empresa. A decisão de retirar a proposta, que prevê 40% de capital estrangeiro, foi comunicada hoje ao Ministério da Aviação Civil e à Junta de Promoção de Investimentos Estrangeiros (FIPB). O projeto da companhia aérea está retirado a partir de agora, da mesma forma que o projeto do aeroporto de Bangalore, disse Gupta. Questionado se Tatas reconsideraria a proposta, originalmente discutida em fevereiro de 1995, Gupta disse que o projeto está fundamentado a partir de agora. A proposta da Tata foi adiada quatro vezes pela FIPB, sendo a última no sábado, já que o Ministério da Aviação Civil ainda não havia indicado se o projeto estava em conformidade com as novas diretrizes da Aviação Civil. A FIPB havia aprovado uma proposta anterior do Tatas para voar uma companhia aérea doméstica juntamente com a Singapore Airlines em dezembro de 1996. No entanto, este foi abatido pelo Conselho de Ministros após as mudanças nas diretrizes da Aviação Civil, que proibia as companhias aéreas estrangeiras de investir em linhas aéreas domésticas. O governo do BJP, depois de chegar ao poder, emitiu novas diretrizes, deixando claro que os investidores institucionais estrangeiros (FIIs) e outras entidades não deveriam ter companhias aéreas estrangeiras como seus acionistas. A FIPB adiou a proposta por seis semanas, na sequência de um pedido do Ministério da Aviação Civil, que pretendia criar um comité de peritos para analisar as questões levantadas pelos membros do Parlamento e pelos sindicatos. Vários deputados, incluindo três ex-ministros da Aviação Civil - Ghulam Nabi Azad, C M Ibrahim e Jayanti Natarajan - manifestaram a sua oposição ao projecto, alegando que permitiria a entrada de Singapura Linha Aérea Internacional no país. No entanto, em Bangalore hoje, o ministro da Aviação Civil Ananth Kumar afirmou que o governo ainda tinha uma mente aberta sobre o projeto da companhia aérea Tata doméstica. Ele negou a Tatas acusação de atraso excessivo pelo ministério. Não devemos estar computando os dois. Anteriormente você veio como Tata-Sinagpore Airlines e agora como a Tata Airlines Private Ltd. Não é justo computar tanto e prazo como atraso desordenado, disse ele. A participação estrangeira na aviação doméstica é em si uma questão muito sensível e tem sido rigorosamente monitorada e modulada em todo o mundo, acrescentou o ministro. Ele disse que o governo decidiu formar um comitê de especialistas para examinar a questão em profundidade e até agora há espaço para os empreendedores prosseguirem (seus projetos) de acordo com as diretrizes eo relatório dos comitês. Tenho uma mente aberta e as políticas dos governos Vajpayee são pró-ativas na promoção da participação e do investimento internacionais, disse ele. Ananth Kumar said the expert group would go into four issues, including one relating to the capacity, pointing out that with global recession, the domestic passenger traffic had gone down to minus 3.7 per cent in the last two years. As for criticism that the ministry had not taken a decision despite having over eight months time, Ananth Kumar pointed out that of the eight months, the BJP-led government had been in office only for the last four months. The governments policy, he said, was very clear -- that it would not allow any foreign airline to pick up equity in domestic aviation directly or indirectly. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sep 1: Industry Ministry Sikander Bakht said today that an effective system of protection of intellectual property is necessary for the countrys development. Hinting at the political objection to product patents, he said, There is some hesitation in political quarters about patent laws changes. But I am convinced that better laws will help Indian industry and scientists. He also announced that the Government was trying to have the National Patent Office declared as an International Search Authority and as International Preliminary Examination Authority under the terms of the Patent Cooperation Treaty. Speaking on the occasion of the first AGM of the Institute of Intellectual Property Development (IIPD), here today, he said that India had to globalise to survive. We have to enter the global game and win it to protect the interest of India, he said. The declaration of the National Patent office as examination and search centre will give great boost to the domestic scientific and inventor community. They will be able to access patent information at their doorstep without incurring high costs. It is absolutely necessary to ensure that accurate and authentic information is disseminated widely to the people, the minister said. Bakht said that the Government decision to accede to the Paris Convention would help Indian inventors and encourage them to market their inventions across the world. Dr Anji Reddy, head of IIPD said that he was keen to see tough patent protection laws so that the Indian companies which were innovating would be protected. I spent Rs 60 crore on developing new drug molecules. I do not want someone else to copy them and make profit without investing anything. He said that India needed process patent in the 1970s so that the local drug industry could prosper. But we cant keep asking for protection forever. We have to start coming up with fresh research on our own, he said. The Director General of CSIR, Dr RA Mashelkar said that information was the key to success in the global environment. Unless India learnt to protect and nurture knowledge creation, it would suffer, he said, adding Future wars will not be fought with bombs but with knowledge. India has grey gold in its grey cells which can help it be on top. For this we must protect intellectual property creation. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, September1: Talks between chemists and the civic authorities remained deadlocked today as pharmacies all over Mumbai shut shop on the first day of their indefinite strike to protest against the two per cent octroi duty on medical formulations. Mayor Nandu Satam told the Joint Coordination Committee of Chemists that the levy would not be withdrawn, adding that the duty should have in fact been imposed 10 years ago. He asked them why the Brihanmumbai Municipal Corporation (BMC) should exempt medicines from octroi when the levy is charged on other products. Over-the-counter sale of drugs was completely stopped with the 6,800 drugstores in Mumbai, affiliated to various chemists and distributors associations, remaining shut. The agitation has also received unconditional support from their counterparts in Thane and Navi Mumbai, who will down shutters on September 4 if the June 22 decision to levy octroi on medicines is not revoked. Life-saving drugs, though, were made available by the five control rooms opened by the coordination committee. It has been an extremely hectic day. Our staff manning the control rooms attended to over 4,000 calls from people requiring medicines. However, they were supplied only to persons who could produce a medical prescription. We also did not entertain people who wanted over-the-counter household drugs, Kishore Shah, president of the Retail and Dispensing Chemists Association, told There were two cases in South Mumbai which urgently required anti-cancer drugs costing about Rs 25,000 per ampoule. Our control room at Prarthna Samaj procured the drugs and delivered them at the callers doorsteps, Shah says. The strike will not immediately affect civic and state-run hospitals in Mumbai as they have been supplied with additional stocks. Dr L B Khotkar, superintendent of J J Hospital, says government hospitals do no merely depend on supply from chemists and will not run out of stocks for 10 days at least. However, they refused to sell medicines to outdoor patients. We have to be prepared for contingencies in the wake of a calamity or a disaster when we might have to use large stocks of medicines without notice. Selling medicines to outdoor patients under these circumstances is virtually impossible, says a doctor from KEM Hospital at Parel. Bombay Hospital in South Mumbai had some difficulty controlling the crowd which clamoured for supplies. The authorities divided the people into two queues - ones requiring medicines for the hospitals indoor patients and the other comprising outsiders. However, tempers ran high as indoor patients were given preferential treatment. All seven chemists around the hospital are not open and I have been waiting for two hours to get Amoxicillin capsules for my daughter, said Upendra Tripathi, a resident of Colaba. Is my daughters life less important than those who are admitted to this hospital, he asked. The hospital though says it is not duty-bound to cater to the general public. With around seven large chemists around the hospital, we generally never get requests for medicines from outside. Since they are shut today, we obliged those who produced prescriptions, the hospitals pharmacy manager Lalit P Kaushal, told Express Newsline. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CHANDIGARH, Sept 1: About 25 per cent of the sorties by Pakistan military aircraft along the Indo-Pakistan International Border (IB) have violated international airspace norms. Army and IAF agencies monitoring movement of Pakistan aircraft reveal that till date this year, there have been about 60 reported incidents of breach of the Air Agreement signed by the Indian and Pakistani government a couple of years ago. As per the terms of the agreement, no military aircraft or unscheduled civilian flights are to approach the restricted airspace over the IB. This airspace, akin to no-mans land on the ground, extends atleast 1,000 metres on either side of the demarcated IB and is out of bounds for all aircraft except trans-border flights. Military sources say that this year, about 264 Pakistani aircraft, both combat as well as non-combat types, were observed in close vicinity of the IB. The number of violations show that on an average, there are eight reported intrusions into the prohibited air-zone. These flights are observed and reported by BSF personnel manning pickets along the IB or by Army troops where their deployment is imperative. The Amritsar Sector, having the highest reported number of sorties and breaches, was particularly hot when a lot of work was being done on bunds near Ranian during flood control measures. Bunds also form important defences. The Dera Baba Nanak Sector along the Ravi, with its network of ditch-cum-bund defence system has also remained active. As per procedure, details about the number and type of aircraft sighted, their flight configuration and time of flight are passed on to the nearest Army division headquarters, which in turn directly intimates Army Headquartes along with the Command Headquarters. The Army Headquarters intimates the Ministry of Defence and a protest is lodged through the embassy of the concerned country by the Ministry of External Affairs. Though no scramble of interceptors by the IAF in such cases had been reported, sources say that any decision by ground forces to shoot down hostile aircraft would have to be taken on the spur of the moment, after determining the threat it poses. There have been instances of hostile aircraft coming right over the IB. The issue of airspace violation has also repeatedly been raised and discussed during operational conferences and tactical briefings at the highest level and concerned has also been voiced at their frequency. The only known instance of a infiltrating Pakistan aircraft being shot down was in 1996, when a Remotely Piloted Vehicle was downed in Kutch. Military sources say that though the breach may be inadvertent at times, there is a possibility of such aircraft involved in mapping out local defences. Their purpose could be a visual, first hand appraisal of our defences by commanders, judging the strength and layout of border out-posts as well as getting the lay of the land, an intelligence officer commented. Carrying photographic and survey equipment by these aircraft, particularly choppers and transport aircraft, is not ruled out. Helicopters of the Pakistan Army Aviation Wing, headquartered at Dhanval near Rawalpindi with detatchements attached with all major airbases for liason and search and rescue roles are also known to fly in close viciinity of the IB. Another reason for flying in close proximity to Indian positions is for new pilots getting themselves familiar with the topography of the area. Possible errors in navigation during training exercises are also cited as a reason. Sources say that some concessions in airspace restrictions have been allowed by both sides in the Northern Sector on account of the mountainous terrain. But they are trying to take advantage of these concessions in other sectors too, an officer commented. Pakistan does not possess any strategic reconnaissance capability, for which it depends on inputs from China and the US. Though the No 5 Squadron equipped with 13 Mirage-IIIRD carries out tactical reconnaissance sorties from its base at Sargodha, experts say that for border observations it flies atleast two-three kilometers behind the IB, using its sideways looking camera for photography. Though there have been no known instances of the Mirage infiltrating Indian airspace, there were unconfirmed reports sometime back of the more advanced F-16s carrying reconnaissance pods and electronic radar jamming equipment entering Indian airspace. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: Union Urban Affairs and Employment Minister Ram Jethmalani said that he is prepared to face any inquiry or raid following charges levelled by Janata Party national president Subramanium Swamy recently. In a letter to director of Central Bureau of Investigation (CBI) T Mishra, Jethmalani has stated that he will cooperate with the CBI authorities to exercise their powers including search, seizure, and arrest at any time against him and waive from using any legal obstacles to protect the inquiry. He said he suspected that some disgruntled officers of his department were passing official papers to Swamy. This aspect of the matter should be investigated by the CBI, he said. Jethmalani has requested the CBI chief to invite Swamy to file an FIR against him (Jethmalani) and alleged that if this turns out to be one of Swamys fabricated falsehoods, he should be prosecuted. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sep 1: The primary capital market continues to be in doldrums with the month of August, like July, witnessing only one public issue. This issue too like the July one was a debt issue from ICICI. The current fiscal, in the first five months, has seen only 12 public issues raising a meagre Rs 1,402 crore, compared to 62 issues aggregating Rs 3,061 crore in full 1997-98 and 753 issues for Rs 11,648 crore in full 1996-97, according to a study done by Prithvi Haldea of Prime Database. A significant, but worrying, feature, according to Prime, is the near-total absence of equity. Public issues of equity at Rs 182 crore have accounted for only 13 per cent of the five-month periods total mobilisation. These have successively been going down from a high 100 per cent (Rs 13,312 crore) in 1994-95. The most adversely affected are the corporates. Only Rs 83 crore representing 6 per cent of the total funds raised in the five-month period of the current fiscal have been from the manufacturing sector, down from a high 83 per cent in 1994-95. On the other hand, financial institutions and banks, as per Prime, have continued to dominate the market. Their offerings at Rs 1318 crore constitute 94 per cent of the five month periods total amount, up from a meagre 4 per cent in 1994-95. The government continues to monopolise the primary market, with a 93 per cent share in five month periods total mobilisation, up from 9 per cent in 1994-95. According to Prime, it is now for the 14th month in succession that the primary market has witnessed an extremely low level of activity in public issues. Since July 1997, there have been only 38 public issues. While August 1998 had 1 public issue, the earlier monthly figures have also been equally dismal: July (1), June (5), May (3), April (2), March (2), February (0), January (4), December 1997 (6), November (4), October (4), September (1), August (3) and July (2). Initial public offerings (IPOs), in specific, have been badly hit. IPOs, which are essentially first public issues from unlisted companies, had already fallen from a high of 1,350 in 1995-96 to only 51 in 1997-98. These are now down to only 7 in the first five months of fiscal 1998-99 mobilising a meagre sum of Rs 124 crore. Given the state of the market and economy, Haldea projects that the balance period of 1998-99 may also be dismal. One of the points is the number of public issue documents filed with SEBI for clearance. From an average of 87 documents per month in the January-December 1996 period, the figure fell to only 7 per month in the January-December 1997 period and is now down to only 3 per month in the January-August 1998 period. It said rescue act, if any, may come only from some bank issues and from materialisation of the disinvestment programme. What we may continue to see is some amount of debt mobilisation, it said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CHENNAI, Sept 1: There is much at stake for Indian hockey at the next weeks Commonwealth Games in Kuala Lumpur, Malaysia, admitted Indian Hockey Federation president KPS Gill at an impromptu press conference, here on Tuesday. In the wake of the debacle at the World Cup in Utrecht, earlier this year, Gill felt that the results in Malaysia will count vis-a-vis revival of Indian hockey. We will be attaching a lot of importance to our performance in the Commonwealth Games, and if we play to our potential, then we will win the tournament, he said. While expressing satisfaction at the fitness level of the players, Gill said he concurred with coach M K Kaushiks views that longer camps were needed to improve further. After we return from Malaysia, we will be giving a short break to the players who will reassemble in Bangalore for a long camp in our preparation for the Asian Games, the IHF chief said. Having learnt the futility of ill-advised foreign tours prior to a major tournament, Gill asserted that the Indian team for the Asiad will stay at home and probably play a few Test matches against visiting sides before the Bangkok Games in December. However, the developmental team which suffered crushing defeats at Hamburg last month, might be engaged in a couple of tours, he said, but did not elaborate. Gill confirmed that in 1999, India and Pakistan will be playing another series, like the one earlier this year. Since we have no major tournaments in 1999, a series against Pakistan will be of help, he said. Payments to players: Apparently, Gill believes in the adage, deserve and then desire. He opined that money alone will not produce results. When you excel, the money will come, and not the other way round, he said. Referring to the controversy over payment to players, earlier this year, Gill charged that it was a problem engineered by some ex-players. He said it was absolutely disgraceful and reprehensible on part of the former players who, by their action, had done a great disservice to the game. In a hard-hitting statement, with obvious reference to former India captain Pargat Singh, Gill said: He wrote in his little magazine that my re-election had done harm to Indian hockey. But the same person wrote to me later that I was the right choice. Gill underlined the importance of a physiotherapist, more than a doctor, accompanying the Indian team. I had suggested to the Sports Authority of India that they must send a physio abroad for training and then attach him to the Indian team. I hope they accept my suggestion, he said. On the thorny issue of former coach Vasudevan Baskarans adverse remarks against certain players, Gill stated that the players had got over it. I was surprised that the report was made public. There is no way I can guarantee confidentiality because by the time I receive it, the newspapers have already published it. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. COLOMBO, Sept 1: Sri Lankas cricket chief today criticised renewed attack on the bowling of one of the finest off-spinners, Muttiah Muralitharan, who demolished Englands batting in the just concluded Test. There is no issue as far as we are concerned, but surely the insinuation is disgusting, said Dammika Ranatunga, chief executive of the Board of Control for Cricket in Sri Lanka. English coach David Lloyds comments on Sunday in London about the unorthodox action of Muralitharan may open old wounds. It could start a new controversy before Sri Lanka goes to Australia in January for a triangular tournament. Muralitharan suffers from a birth deformity in his right arm that cannot be set right, Ranatunga said. To overcome the problem he uses an unusual double jointed wrist action. Muralitharan was first called for throwing by Ross Emerson, one of two Australian umpires, during a tour of Australia in 1995. He underwent bio-mechanical tests in Hong Kong and Australia. Three Australian cricket specialists, Daryl Foster, David Lloyd and Angus Burnett of the University of Western Australia viewed high speed films that shot 24 deliveries from six angles at 200 frames a second. It is clear that this apparent straightening of the bowling arm was a visual illusion, the team said in a report. The International Cricket Council then cleared Muralitharan. The 26-year-old bowler, who belongs to Sri Lankas Tamil minority, returned the fifth best bowling figures in Test cricket, taking 16 wickets in 113.5 overs in the one-off Test that ended yesterday, which Sri Lanka won by ten wickets. Coach Lloyd was quoted as saying he would make his views known to cricket authorities. The way he bowls and with the action he has got, he will always be a handful. Thilanga Sumathipala, president of the Board of Control for Cricket in Sri Lanka, said: we are disappointed Lloyd expressed his views through the public instead of going through the proper channels. Ranatunga said such allegations have a negative impact on the players. Our records are straight and we have tonnes of evidence to show that Murali is a perfect bowler and he will continue to bowl, he said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. September 1: For the first time this financial year, Indian exports started looking up registering a 7.71 per cent growth in dollar terms in July. The latest trade data released today showed Indian exports during July was increased to 2.99 billion against 2.78 billion in July 1997. However, exports during the first four months of the financial year registered a negative three per cent growth as shipments from the country from April to July slid to 10.62 billion against 11.03 billion during the corresponding period last year. In rupee terms, exports were up by 10.82 per cent during the period and for July the growth was 28.12 per cent. Trade deficit during the period widened further to 3.30 billion against 1.83 billion during the same period last year. The rise in trade balance was in tune with the fall in rupee value against the dollar during May and June this year as imports costs were up against lowered export value. Imports during July registered a significant rise of 18.70 per cent to 3.80 billion against 3.20 billion in July 1997 in view of the rupee fall. During April-July, imports increased by 8.26 per cent at 14 billion against 13 billion during the same period last year. Oil imports during the period was valued at 1.8 billion, down 31.27 per cent against 2.65 billion dollars during April-July last year. Non-oil imports during April-July were estimated at 12.1 billion dollars, up by 18.54 per cent against 10.2 billion during the same period last year. While exports during April-June had registered a 7.94 per cent fall and imports were up by 3.75 per cent during the period, compared to last year. Trade balance at the end of the first quarter was 2.4 billion. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MOSCOW, Sept 1: US President Bill Clinton today urged his Russian counterpart Boris Yeltsin to stop military cooperation with India and warned that nuclear rivalry in South Asia could lead to a direct war between the two nuclear super powers. According to local radio Echo Moskvy, Clintons plea came during his 30-minute meeting with Yeltsin. Expressing American concern over arms race between India and Pakistan in the backdrop of nuclear rivalry in South Asia, close to the Russian borders, Clinton warned that it could lead to a direct war between the two nuclear super powers. India remains the biggest customer of Russian arms in the world and Indian orders to the tune of two billion (US) dollars annually have a vital importance for the cash-strapped Russian economy. According to the Russian Defence sources, Washington is greatly alarmed at the Delhi-Moscow negotiations for the development of an advanced Air-Defence system capable of protecting India from the punitive missile strikes similar to the recent US attacks on Afghanistan and Sudan. In the grip of political storm each in his own country, Russian President Boris Yeltsin and US President Bill Clinton today bear-hugged in the formers study to inaugurate, what promises to be, a summit of uncertain terms. The first agreement to trickle out was a joint pledge to eliminate some stockpiles of plutonium taken from dismantled missile warheads. With Russia reeling from a political and economic crisis, Yeltsin formally welcomed Clinton outside the Kremlin after wreath-laying at Moscows tomb of the unknown soldier. Republican senator Pete Domenici who flew here with Clinton, told a media person today that the two Presidents would sign tomorrow an agreement to get rid of about 50 metric tons of plutonium on each side and break down the weapons material so it cannot be used for military purposes. A draft of the leaders joint statement said the plutonium would be withdrawn in stages, with financing arrangements to be set by years end. The draft said: Measures to manage and reduce such stockpiles are an essential element of irreversible arms reduction efforts and necessary to ensure that these materials do not become a proliferation risk. Earlier, Viktor Chernomyrdin, acting prime minister, met Clinton and his wife, Hillary, at the Moscow airport. Hoping to get a boost from summiteering, and doing his bit as an ambassador of Wests free market, Clinton pledged continued US support for Russia as long as its leaders stay on the path of reform and do not revert to the Communist ways of the past. With a message of support but no financial help, the US President urged Russians to reject the failed policies of the past in coping with their current economic crisis. Given the facts before you, I have to tell you that I do not believe there are any painless solutions, Clinton told a new generation of Russian leaders at Moscow state university of international relations. He repeatedly said that Russia must play by the rules of international commerce. With Russias economic turmoil throwing the summit agenda into uncertainty, Clinton addressed the crisis with frankness, but offered no specific ideas on how the infant democracy could weather the tailspin of its currency. Earlier, at the start of their meeting, Yeltsin presented Clinton with a loaf of salted bread, a traditional East European symbol of welcome. Clinton pushed at the bread with the heel of his hand, and it sprang back up. Amazing, kind of like you, Clinton told his embattled host. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: The Delhi High Court today pulled up the City Government for not placing on record the affidavit on unauthorised colonies despite the August 17 commitment to the effect by Chief Minister Sahib Singh Verma. A division bench, comprising Justices Y K Sabharwal and K S Gupta said, It is most unfortunate that on the one hand, considering the importance of the case, the Chief Minister thought it fit to appear in person (on August 17) and on the other, the affidavit in terms of the order passed by the court is still not filed. The CM had, on his voluntary appearance in court on August 17, submitted that a decision on regularisataion or demolition of 1,071 unauthorised colonies in the Capital would be taken within 45 days and an affidavit on the Government stand filed within 10 days. The court had allowed Vermas plea for construction of roads and drainage systems in these colonies, stating that the provision would not come in the way of the Government taking a decision. It seems the Government is not interested in filing the affidavit and wishes to rely upon the affidavit to be filed by the Centre, the bench observed, while expressing anguish over the Government taking the court direction lightly. The court gave two more weeks to the Government to file its affidavit and posted the matter for hearing on September 17. The court reminded the Government to enforce strictly its decision of December last, banning further construction in the city till it (the Government) took a decision on the issue of regularisation of the unuathorised colonies. The bench further directed the Government that water and electricity connections in unauthorised colonies would be provided after they were given on priority to the colonies built by the Delhi Development Authority (DDA). This direction came after DDA counsel Surinder Sethi submitted that thousands of DDA flats were not being allotted to applicants due to the lack of water and power connections. The court also directed the Government to submit a report on the boundries of each unauthorised colony to ensure that no further construction took place. Sethi told the court that 392 of the 1,071 unauthorised colonies in the Capital were raised on DDA land and the rest were either on the land owned by the State Government or the local civic bodies. The CM, on his personal appearance, had told the court that the Government has, in principle, decided to fix December 31, 1997 as the cut-off-date for regularisation of the colonies. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. September 1: With six Indian pairs competing in Societe Genarale World Open bridge pairs championships, three pairs are in with a good chance to make it to the finals. The scratch partnership of Vinod Sharma and Alok Sadhu had a 59.9 per cent score. They added a 50.8 per cent score in the second session to end day one of the semifinals in position 28 with a healthy aggregate of 53.36 per cent. JM Shah and Rajiv Khandelwal of Mumbai, and Prabhakar and Krishnan of Chennai are other two who show some promise of making the cut as well. Shah and Khandelwal had poor 47.64 per cent (rank 115) in session one but recovered to position 92 with a 54.94 per cent in session two to aggregate 51.14 per cent. Prabhakar and Krishnan made a good start with 53.36 per cent (rank 40) but dropped to rank 106, scoring a poor 45.95 per cent in session two. Their session average of 50.66 per cent. Three other Indian pairs languish in the bottom half of the draw and will need huge scores in both sessions to make the cut. At the bottom of the Indian rankings are Tewari/Gupta of Delhi who had led the six Indian pairs into the semi-finals. Scoring 43.37 per cent and 45.97 per cent in two sessions, the Delhi pair find themselves in rank 207 at the end of day. Ajay Khare and Vinay Desai of Mumbai improved from rank 190 45.3 per cent in session 1 to rank 165 in session 11 (50.04 per cent), but this rate of improvement will not be adequate to see them into the finals. Their cumulative scores are 47.66 per cent. Agarwal/Bandi from Indore are ranked 159 at the end of day 1, with 47.64 per cent in session 1 and 48.48 per cent in session 11 (48.07 per cent cumulative). Michael Rosenberg/Steve Weinstein from USA lead the field with 61.95 per cent. Followed by Polands Pityr Gawrys/Marcin Lesniewski (59.62 per cent). In the Louis Vuitton womens pairs where 119 pairs competed, the Indian challenge ended in the 1st elimination where the four Indian ladies combinations finished in the bottom half of the draw. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. PATNA, SEPT 1: Cooking oil including mustard oil and other grocery items worth over Rs 25 crore have been seized as raids on business establishments continue unabated after the Bihar Government enforced ban on sale of mustard oil following detection of dropsy cases. Official sources said today that district officials assisted by food inspectors and police had during the last five days conducted raids on over 750 places across the State to seize the adulterated cooking mediums. The sources said the samples of the seized edible oils were being collected to send them to different laboratories for test. The district magistrate were supervising the operations in their respective districts. The Chief Minister had on Friday ordered ban on sale of both packed and unpacked mustard oil till laboratory examination of samples of the oil being sold in open market was done. In the State capital, district magistrate Rajbala Verma led the team to conduct raids on departmental stores and premises of stock-holders to collect samples of edible oils for laboratory examinations. The district administration had so far seized cooking oils and other grocery items worth over Rs 8 crore by conducting searches on around 45 business premises, they said. In Marufganj business locality, a raiding team stumbled upon packets of poisonous chemicals. According to experts, if the chemicals are mixed with ordinary oil, it will look and smell like mustard oil. The mix of the chemicals in small quantity cannot cause any harm but an inadvertent excess use of the chemicals may prove to be fatal, experts opine. A Begusarai report quoting official sources said over ten oil tankers filled with over 50 lakh litre mustard oil value of which being estimated to be around one crore were impounded during the last two days and samples of the oil sent to laboratories. Over 285 tins of edible oils were seized from business premises and factories at Hajipur township in Vaishali district since yesterday, the district magistrate R N Prasad said. Reports of seizure of several tankers fully loaded with edible oils continue to pour in from different districts in the state. According to State health department sources a few more fresh dropsy cases were identified at Madhepura and Bhagalpur as an intensive campaign continued to detect such cases and take preventive measure to check further spreads of the disease. Over 200 people including traders and labourers have so far been arrested during the raids at different places in the state. The State Government had also banned supplies of mustard oil from outside Bihar till samples of existing stocks of the cooking oils were tested in laboratories. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: India had witnessed more than 30 epidemics of dropsy over past hundred years due to the wild weed argemone mexicana (mexican poppy) and its non-edible oil getting mixed with mustard oil naturally or because of deliberate adulteration, according to Prof Gunavant Oza, emeritus fellow of the University Grant Commission. Oza, a botanist from the Maharaja Sayajirao University of Baroda, who had worked extensively on the plant for decades, said the only method of preventing further dropsy epidemics was to eradicate argemone mexicana from the country which, of course, was a herculian task. The introduced mexican weed, naturalised throughout India and reaching the hilly regions upto 5000 feet, can tolerate almost any set of climatic conditions and bear flower and fruit most of the year. The plant produces numerous seeds, roughly about 20,000-30,000, and since it resembles black mustard seeds (brassica nigra) there were enough chances of it getting mixed with mustard seeds, Oza said. He said though hakims and vaidyas use argemone for its medicinal properties, it was high time for its eradication from the country. Oza, in one of scientific papers, had said We can destroy the seedlings by pulling them out of the soil during the rainy season and repeat the operations several times during monsoon and not allow the plant to grow and shed the seeds. He pointed out that since argemone seeds were collected by certain local people in large quantities and sold in the market, there was a possibility of taking their help for identifying the plant and seedlings for its complete eradication. Since the plant finds shelter in the cultivated fields quite often, chances of the seeds getting mixed with other grains were more, he said. Oza said the mysterious disease of the swelling of legs in Mumbai in late 1960s, a disease of similar nature in late 1950s in Nadiad (Gujarat), West Bengal and Bihar and the epidemic of dropsy had all resulted due to consumption of edible oil contaminated with argemone oil. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. DURBAN, Sept 1: Despite round-the-clock lobbying by Pakistani delegates, nations of the Non-Aligned Movement (NAM) meeting today refused to tow its line on having one comprehensive resolution on the US missile attack on Sudan and Afghanistan with majority of countries feeling that the Taliban regime was sponsoring terrorism the world over. Pakistan received this major diplomatic set-back when the issue came up for discussions at the ministerial and official level meetings of the NAM. An overwhelming majority of member countries felt that Washingtons attack on militant camps in Afghanistan cannot be equated with its strikes on Sudan. While the NAM is yet to formulate its response on attacks on militant camps on Saudi billionaire Osama bin Laden, it was already agreed to condemn the US action on a pharmaceutical company in Khartoum. Pakistani representatives were working hard for the last few days to convince and persuade NAM members to accept its proposal for a common resolution on Afghanistan and Sudan but there were not many takers for their theory. Pakistan was left with no option but to give up its efforts. Interestingly senior officials of US government who arrived here to seek observer status for their country were overtly and covertly lobbying for toning down of the NAM resolution on its attacks. The NAM in its resolution on the US attack on Sudan felt that the action was a serious violation of principles of international law and UN charter and contrary to the principles of peaceful settlement of disputes. The resolution stated that such acts are a serious threat to the sovereignty and territorial integrity of Sudan and to regional stability and international peace and security. The NAM condemns this act of aggression and continuing threats made by US against Sudan. it urged Washington to refrain from such unilateral acts. NAM sources said that India had played a vital role in delinking of the groupings approach on attacks on Sudan and Afghanistan. The Indian government also believed that the Taliban was providing training in arms to mercenaries who operate in Jammu Kashmir. The Arab countries, which form a dominating group in the NAM, were eager to have a strongly worded resolution on Sudan but most of them were not keen to have an identical resolution on strikes in Afghanistan. India also received a boost when its consistent efforts to mobilise international support for eradication of terrorism bore fruit. The NAM accepted the Egyptian proposal which called for an international summit conference under the auspices of the United Nations to formulate a joint organised response of the international community to terrorism in all its forms and manifestations. The Egyptian proposal is similar to Indias position on combating the menace of terrorism. India has proposed an international action plan to fight and tackle terrorism. A further boost to Indian diplomatic efforts came when the NAM expressed its serious concern on the role of mercenaries in acts of terrorism. The concern vindicates Indias position that it is facing terrorism being exported and executed by mercenaries from across its border in Jammu Kashmir. While making its standpoint, the Indian representative said the country was a serious victim of cross-border terrorism and hence was keen that there should be a major initiative to fight terrorism which posed a serious challenge to the sovereignty of a number of countries. The resolution said that the UN organs should take appropriate decisions, consistent with its charter, to fight and eradicate terrorism. It emphasised that international cooperation to combat this menace should be conducted in conformity with the principles of UN charter. It suggested strengthening of international legal regimes for combatting terrorism. Prime Minister Atal Behari Vajpayee, who arrived here last night, is expected to make a strong plea for coordinated action against terrorism. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. BANGALORE, Sept 1: Former prime minister H D Deve Gowda today unconditionally apologised to State unit Janata Dal president B L Shankar over his sons alleged misconduct with him. Gowdas son, H D Kumaraswamy, a former MP, had allegedly threatened and abused Shankar last week over phone on party affairs. His apology comes in the wake of reports which said Kumaraswamy had used foul language against Shankar over reported attempts to wean away Gowdas supporters to the Patel group and that the former prime minister was interfering in the appointment of chairmen to boards and corporations. Gowda told reporters it was true that his son spoke in an angry tone but he had denied having abused Shankar. Asserting that he was not locked in a cold war with Chief Minister J H Patel, Gowda said he had not interfered in the appointments made on Saturday last for the posts of chairmen to various State-owned boards and corporations. If Patel can cite even one such instance, I will retire from public life. He also, however, implicitly made known his displeasure over Shankar saying his son had verbally attacked him (Gowda) in strong terms for not recommending his name for a ministers post when I K Gujral was prime minister. Gowda claimed that he had become the target for assault after he demitted the prime ministers post. But the party in the State had not countered attacks against him, he said, however, adding that he did not feel neglected by the party. He said he had himself written to Patel, stating that he would not interfere in appointments to boards and corporations and had assured him of cooperation. In this context also, Gowda indirectly expressed displeasure over Shankar, who, he said, had not clarified that he was not meddling in the issue. Gowda also said he was hurt that some of our own friends in the party (Janata Dal) are feeding wrong and exaggerated information to the press. He appealed to partymen who were unhappy over being left out in appointment as chairmen to boards and corporations to forget their dissatisfaction and work for the party. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sep 1: In a significant move today, the new telecom secretary Anil Kumar met with the chairman of the Telecom Regulatory Authority of India (TRAI) Justice S S Sodhi at his 20th floor office housed in the STC building in the capital today. While there may be nothing unusual in the event itself, telecom observers have attached importance to this meeting as signifying a change in approach in the building up of dwindling investor confidence in the telecom sector. TRAI Chairman Justice Sodhi said that the meeting today was too preliminary for any conclusions to be drawn and included just an exchange courtesies. The meeting has however assumed importance as despite directions from the former Cabinet Secretary T S R Subramaniam last year insisting on a monthly informal interaction between officials on both sides, only one such meeting took place almost ten months ago. The impasse between the Department of Telecommunications (DoT) and the TRAI has now become legendary in telecom circles with the TRAI having pushed into a corner ever since the recent High Court judgement in July curtailed the latters powers by refusing to allow its jurisdiction to interfere in the licensing rights of the DoT. This has left the TRAI virtually with no powers to interfere in any disputes that pivate operators in the field of basic, cellular and paging services, and the DOT on encashment of bank guarantees for delayed licence fee payments. Before this, in February, the TRAI had acted tough with the DoT staying its proceedings in announcing the new internet policy, encashing bank guarantees of operators defaulting on licence fee payments and going as far as cancelling the licence issued by the DoT to the Mahanagar Telephone Nigam Ltd (MTNL) for allowing it entry in the field of cellular services. This had forced the DoT to drag the TRAi to court to get the jurisdiction of the authority sorted out. In the words of Sodhi himself, the TRAI has been reduced to being a toothless wonder. He says, the government has to have its objectives clear in forming a regulatory authority - it has to be an independent forum, expeditious in settling disputes and inexpensive for disputing parties to approach. If these are the objectives of any regulator then this is how these bodies should be allowed to function. Whether todays meeting will herald a new chapter in the TRAI-DoT relations, only time will tell, but for the moment industry hopes are high. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: The Mule track connecting the landslide-hit Malpa village and Dharchula, which was completely destroyed, was today recreated by the Army and it would be ready for vehicles by tomorrow. Announcing this here, Army and Air Force officials who led the rescue and relief operations in the area said the joint operations carried out by defence forces, Indo-Tibetan border police, the State police and administration, under very trying circumstances could well be taken as an example for successful large-scale disaster management in future. Air Commodore HPS Sidhu and Col Vikram Singh, who planned and got the operations implemented at the site, explained in detail the situation as it developed from the wee hours of August 18 when rocks, boulders and slush came rumbling down taking away with them the Malpa village and its inhabitants, including several Kailash-Mansarovar pilgrims. They said at least 200 people would have been buried dead in the debris, but bodies of only about 45 could be recovered. Elaborating how best man and machine were put to use to meet the massive devastation and trying to save those few who were still alive, they said Cheetah helicopters which could land at a maximum height of 10,000 feet were made to land at about 11,000 feet at another village of Gunji, which lay north of Malpa. As part of the Operation Blue Angels, braving foul weather 14 IAF choppers, including six MI-17s called from Western Command to Bareilly, carried out about 300 sorties, flew about 79,000 kgs of load and 572 passengers besides rescuing the injured, ferrying the dead and dropping rations and medicines. Sidhu said it was difficult for the helicopter pilots who had to fly only on one side of the river Kali, dividing India and Nepal, and through the deep gorges. Even at Bareilly, which had an average rainfall of 200 mms in August, the rains last month totalled a whopping 710 mms, he said while giving a picture of the bad weather in the area which made flying difficult. A company of about 90 Army men went to Malpa on August 19, even without the requisitions sought from the base headquarters, said Singh, adding that they set up two Inmarsat based communication system at Malpa and Dharchula as their VHF system was getting disturbed. About the artificial lake created by blocking of the stream by the falling boulders, he said the administration, and security forces took a joint decision not to blow it up in order to save the villages downstream. As explosions could cause further slides, ropes and crowbars were only used to dig out bodies from the slush and rocks, he said, adding that bodies were cremated on the spot as decided by the civil administration. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, Sept 1: Kinetic Engineering of the Firodias and Japanese automobile giant Honda Motor Corporation have decided to part ways with Pune-based Kinetic Engineering buying the entire 51 per cent stake held by Honda in the joint venture company, Kinetic Honda Motor Ltd (KHML), with effect from Tuesday. The Firodia takeover of the company is bound to trigger the SEBIs takeover code and the company will have to make an open offer to the shareholders of Kinetic Honda Motor. The SEBI has asked Nestle to make an offer to its shareholders as the Swiss firm had bought three per cent stake from one of the co-promoters, the Khaitans and did not make the offer to the small shareholders. The price of the acquisition was not made public by the Firodias in their statement though insiders say that the deal would be around Rs 32 crore. With this, the equity stake of Kinetic Engineering in the company will go up to over 76 per cent in the listed company. The Kinetic Honda Motor scrip remained static at Rs 42 as compared to yesterdays closing while Kinetic Engineering was marginally up at Rs 97.60 (Rs 95). In a statement to the stock exchanges, both companies said with the departure of Honda, the Kinetic Honda Motor will become a KEL group company and subsequently change its name. Both companies have been working as co-promoters and partners since 1985 and producing premium segment scooters -- Kinetic Honda ZX and Marvel. As per the agreement, Honda would continue to provide technical support to the venture and the company will continue to make the current scooter models. The company will also continue to export vehicles under the Hondas network under Hondas brand name. Honda Motor Corp is having a presence in the Indian market through its other joint venture with the Munjals of New Delhi which is making motor cycles and with SIEL to make Honda City cars. Among Hondas various joint ventures, Kinetic was the only company which was not doing well. Despite 15 years of operations, the company was unable to breach the 10 per cent market share in the scooter segment. Due to its low pricing, Bajaj Auto and LML are presently having a virtual monopoly in the Indian scooter market. The new arrangement between the two partners is subject to all necessary government approvals. KEL has already filed an application today with the RBI for its approval. KEL has said that with the departure of Honda, high overhead costs of the Japanese managers would be reduced along with communication costs and office locations in Tokyo, New Delhi, Indore and Pune. It said Honda will continue to provide technology for the current products so that they can met the year 2000 emission norms. It said the takeover of the joint venture company by the Indian promoters will reduce overheads by cutting out duplication of efforts in areas such as IT, training, selling and top management time. Further, Honda will also help the Indian company by providing it own manufacturing facilities in Japan or its authorised vendors for the critical parts which cannot be indigenised at present. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. THIRUVANANTHAPURAM, Sep 1: Chief Minister E K Nayanar has ruled out inquiry into the alleged lapses in the implementation of Peoples Planning programme. He said this during the Cabinet briefing yesterday when his attention was drawn to the demand by Opposition UDF for an inquiry into the alleged irregularities in Peoples Planning. Nayanar said that he himself had noted that there had been lapses in the implementation of the programme. But the Government had no plan to institute an inquiry into it, he said. In yet another development, the memorandum of understanding signed with International Network on Small Hydel Power of China for setting up of 18 mini hydel projects in the State was approved by the Cabinet. However, the Kerala State Electricity Board (KSEB) has been directed to study and discuss areas like floating a global tender to buy the necessary machinery, exchange rate fluctuations and export credit before signing the final agreement with the Chinese firm. Meanwhile, the chief minister said that Kozhikode Police Commissioner was inquiring into a complaint by Baburaj, who was taken into police custody and later admitted to Kozhikode Medical College. Baburaj was taken into custody following an altercation with an autorickshaw driver. He was produced before the magistrate and referred to the mental hospital as he was suspected to be mentally ill. Later, he was admitted to Kozhikode Medical College Hospital. Press photographers were prevented from visiting him to take pictures. The chief minister said that the Government had not received any complaint in this regard. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. GUWAHATI, Sept 1: The murder of three former militants by a Major of the 11 Jat regiment on the night of August 27 at Dibrugarh, has not only served a big blow to counter-insurgency operations in Assam, but has also painted a poor picture of the security force. The Dibrugarh deputy commissioner, meanwhile, has instituted a magisterial probe into the incident, while the army has begun its own investigations, after finding prima facie evidence against Major Jamir Khan of the Jat Regiment. The media, especially the vernacular press has come all out against the army in the state, more so after the army authorities tried to justify the detention of one Atanu Sarma, accusing him of being a pick-pocket, for nearly an hour after a major blast occured in the Guwahati Railway Station earlier last week. The wives of the three former ULFA (United Liberation Front of Assam) leaders who were gunned down by Major Khan on the other hand have filed a petition in the Guwahati High Court seeking a high-level probe into the killings, as also praying for exemplary punishment to Major Khan and his accomplices. The issue has shot into prominence because Major Khan did not kill the three youths, Rana Gogoi, Utpal Barua and Rajiv Phukan, as part of his counter-insurgency operations. The officer is stated to have gone to the house of one of the youths, took part in a drinking session, and then accused them of lodging a complaint against him with the higher-ups in the army, and then shot them dead. There are at least a dozen witnesses to the gruesome murders, with some even from the regiment to which Major Khan belonged. Reports have said that Major Khan snatched an AK-47 rifle from one of his jawans to shoot down the three youths. Other witnesses include some Assam Police constables deployed as personal security officers to some of the former ULFA leaders, and also five or six other former ULFA cadres. The former militants had apparently complained to the General Officer Commanding of 2 Mountain Division at Dinjan that Major Khan had embezzled about Rs three crore, which was part of about Rs 4.4 crore which Khans unit had recovered during a recent operation against the ULFA in a nearby village. The killing has embarrassed the army and the various organisations have once again demanded withdrawal of the army from operations against militants in Assam. Prominent organisations which have pleaded for withdrawal of the army and vesting of responsibility of tackling the situation on the state police, include the Assam Sahitya Sabha, the All Assam Students Union, Manab Adhikar Sangram Samiti and Asom Jatiyabadi Yuva Chatra Parishad. Some groups have also accused the army of having a hand in the killing of several family members of top ULFA leaders like chairman Arabinda Rajkhowa, commander-in-chief Paresh Barua and publicity secretary Mithinga Daimari. Last weeks triple murder is not the only instance of the armymen crossing limits. Armed with the Armed Forces (special powers) Act, the army had in 1994, killed five innocent youths in Tinsukia district in a fake encounter, while in several other instances, the high court has pulled up the army for various crimes inflicted upon the common people. It was only a few weeks ago that two jawans of the army were found guilty of raping a married woman in Nalbari district, with an army court awarding both of them ten years rigorous imprisonment. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK, Aug 31: Wimbledon runner-up Goran Ivanisevic avoided his usual US Open first-round jinx and Thomas Muster registered the first knock-out of a seed today as the last Grand Slam tournament of the year got under way at the National Tennis Centre. Ivanisevic, a first-round loser at the US Open in three of the last four years, ripped past Australian doubles specialist Mark Woodforde 6-3, 6-4, 6-4 with the sun pouring down on Centre Court at Arthur Ashe stadium. The last time I won the first round I made the semis, said Ivanisevic, recalling his 1996 Open campaign that ended with a defeat against eventual champion Pete Sampras. Maybe this is a good sign. Ivanisevic, who also fell to Sampras in this summers Wimbledon final, crashed 23 aces past Woodforde during the one hour, 27-minute match. While the lanky, goateed Croat was dismissing Woodforde, former world number one Muster, of Austria, mustered his ground-stroking arsenal to oust 15th-seeded clay courter Alberto Berasategui of Spain, the 1994 French Open runner-up, 7-6 (7-1) 6-2 6-3. Muster, three times a quarter-finalist at the Open, improved to 4-1 lifetime against the Spaniard as he avenged a defeat in the final of this years clay event in Estoril. World No 1 and top seed Pete Sampras was following the 14th-seeded Ivanisevic onto Centre Court, beginning his quest for a record-tying 12th Grand Slam title against Marc Goellner of Germany. On the womens side, top-seeded Martina Hingis of Switzerland was due to follow Sampras and begin defence of her Open crown with a Centre Court test against Aleksandra Olsza of Poland. Early womens winners included 11th-seeded Patty Schnyder of Switzerland, who beat Japans Yuka Yoshida 7-6 (7-5), 7-5, Polands Magdalena Grzybowska, Americans Kimberly Po and Laura Granville. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. SEOUL, Aug 31: North Korea is believed to have test-fired today a new longer-range missile for the first time, capable of striking targets throughout north-east Asia, South Koreas defence ministry said today. One stage of the ballistic missile is believed to have overflown Japan and come down in the Pacific, a senior Japanese defence agency official confirmed. There is a possibility that the missile landed on the high seas several hundred km off Sanriko coast (in northern Japan), defence councillor Toru Kawajiri told a news conference. A part reported earlier to have fallen in the Sea of Japan which separates North Korea and Japan may have been a booster for the missile, he said. We cannot but express serious concern over a test launch of a ballistic missile at a time when an international effort is being made against spread of weapons of mass destruction, a defence ministry statement had said earlier. We urge North Korea to stop developing this kind of missile and join international efforts for non-proliferation of missiles since the development harms peace and stability of not only the Korean peninsula but also north-east Asia, it said. The Japanese defence agency said North Korea test-fired the missile into waters that divide the Korean peninsula from Japan, prompting Japanese Prime Minister Keizo Obuchi to warn that Japan was considering unspecified steps in response. Russian news agencies quoted Russian military officials as saying the missile was faulty and had veered off course. There was an accident during the launch. The rocket fell 350-400 kms from the launch site after gaining little height and veering from its flight trajectory, ITAR-TASS news agency quoted an official from the strategic rocket forces as saying. Chief cabinet secretary Hiromu Nonaka said Japan would lodge a strong protest following reports that the missile overflew the country. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI: The Indian Olympic Association and the Union Sports Ministrys pressure tactics seem to have worked as the cricket Board is veering around to the fact that the best team should be sent to Commonwealth Games. The turnaround came after the Board of Control for Cricket in India (BCCI) president Raj Singh Dungarpur met Union Sports Minister Uma Bharati who is said to have expressed concern that India could lose face if it sent a weak team to Kuala Lumpur. The selectors have made it known that some players are automatic choices for the Top 14. If the strongest team is chosen for Toronto, the automatic choices would figure in that team. But with a compromise being worked out, it is learnt that the Board will ask the selectors to include some of the automatic choices in the side for Kuala Lumpur. According to sources, the list could even include Sachin Tendulkar, who has apparently said that while he has no objection to playing on either side, he would not want to be made captain for KL. In such a situation, Ajay Jadeja is likely to lead. Mohammed Azharuddin, who will lead the side to Toronto, is believed to have been informed of this. After some discussion Azhar is also said to have agreed to this compromise, even though the absence of Tendulkar would be a big blow for him. Meanwhile, at least one selector is opposed to the idea of having two equally strong teams but the other selectors say that they can only select teams from the pool of players the Board has made available to them for a specific event. In this case, the Board will mark some of the automatic choices for Toronto and some for Kuala Lumpur. The selectors will then work out the remaining slots on either side in an attempt to find the right balance. The controversy over the team has been raging for the past three weeks and both the IOA and the Government have been demanding that the Board send the strongest team to KL so that India could make a bid for a gold medal. At the same time, the Board has contractual obligations with International Management Group, the promoters of Sahara Cup. The Board stands to make upwards of a million dollars as its share from Sahara Cup, but there is no money guarantee for Commonwealth Games. Some members of the Board feel that this compromise could mean India losing at both Toronto and KL. In Toronto, Pakistan is fielding its best 14 and in KL, Australia who are in Indias group, have their best one-day side led by Steve Waugh. Since only team from each group goes to semis, India could well be out before the medal stage in Malaysia. But the Board, which has known about this possible clash of dates for the last two years, would have satisfied both the IOA and the organisers of Sahara Cup. The coffers would be full alright, but at the same time it could mean India losing at both places. But then, thats what happens when you try to kill the Goose that lays the Golden Eggs. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: The National Human Rights Commission (NHRC) has called for a report from the Bihar Chief Secretary on the police firing on a demonstration of flood victims at Dumra in Sitamarhi district on August 11. The Commission called for the report on a memorandum submitted by the Nagrik Sewa Morcha (NSM) demanding a probe into the unprovoked police firing on flood victims who were peacefully demonstrating for relief. Five persons died and 15 people sustained serious injuries in the firing. The report is to be submitted within six weeks. The memorandum said the police did not resort to lathi charge, water cannons, tear gas, or firing in the air, but directly opened fire on the demonstrators. The police also arbitrarily arrested 52 people and seized 350 bicycles, nine tractors, 25 motorcycles, two tents and loudspeakers and microphones, the memorandum said. A NSM delegation led by its President Dhruva Kumar also met Commission Member Justice V S Mallimath, Secretary General R V Pillai and Director General (Investigation) D R Kartikeyan and requested that a team be sent to Dumra investigate the incident and recommend payment of adequate compensation to the victims. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: SHIV Sena chief Bal Thackeray today contended before the Election Commission that there was no justification for him being disqualifed from contesting or voting in elections for having appealed to the electorate on ground of religion during a Maharashtra assembly bye-election in 1987. This was stated by Sena chiefs counsel Raju Ramachandran during the hearing of a reference sent to the commission to decide the quantum of punishment after the Supreme Court dismissed in 1995 a special leave petition filed by Thackeray and former Maharashtra MLA Yashwant Prabhu against a 1991 Mumbai High Court verdict. Thackeray was not present at the hearing and was represented through his counsel. The apex court had found them guilty of electoral malpractice under section 8-A of the Representation of People Act for having appealed to the electorate on ground of religion while campaigning for a Vile Parle assembly bye-election in 1987. Prabhu was disqualified from contesting election for six years following the Supreme Court order. Former Maharashtra minister and defeated Congress candidate Prabhakar Kunte had filed the election petition against Thackeray and Prabhu in the high court soon after the bye-election. Ramachandran told Chief Election Commissioner M S Gill and Election Commissioner J M Lyngdoh that there was no justification for initiating action to disqualify Thackeray at this late stage. Besides, Ramachandran contended that no action to disqualify Thackeray was called for as the Sena chief, who has never contested polls, has declared that he would never enter any electoral fray in his life. Though the hearing in the case concluded today, the Election Commission did not give any indication as to the time by which it would send its recommendation to the President in the matter. Gill declined to comment on the proceedings as it was a judicial matter. Besides Thackerays counsel, senior Sena leader, Subhash Desai attended the hearing. Under the Representation of People Act, the commission could recommend that Thackeray be disqualified from contesting or voting in elections up to a period of six years. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: Rattled by the frontal attack on the government by one of its own organisations -- the Swadeshi Jagran Manch (SJM) -- the BJP today defended the government saying it was pro - The party also ruled out acceding to the Manchs demand that the two economic advisory panels set up by the Prime Minister be reconstituted. The BJP and the government are not wholly in agreement with the criticism made (by the SJM). But we will consider any constructive suggestions, party spokesman K L Sharma said today. He said that the Budget and the policies of the government reflected its commitment to Yesterday, the SJM launched a scathing attack on the government accusing it of side-stepping the BJP manifesto which made the pivot of economic policies. It demanded that the government review the direction in which it was taking the economy. It also demanded that the government undo the recognition and promotion given to known anti - bureaucrats like Montek Singh Ahluwalia and N K Singh. Top RSS leaders such as K S Sudarshan, Madan Das and Dattopant Thengdi and representatives of other Sangh Parivar frontal organisations like the Vishwa Hindu Parishad and ABVP were present at the meeting at which the resolution castigating the government was passed. Sharma, however, insisted that the BJP-led government was working according to the National Agenda of Governance and that it believed that was important. What the SJM has said is their opinion. There can be two opinions, he said. He remained silent when asked if the Maruti-Suzuki deal, giving the Nyveli extension project to an inexperienced Italian company and the governments decision to significantly reduce its stake in Air-India could be characterised as pro-swadeshi . Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. September 1: Indias leading automaker Maruti Udyog Ltd (MUL) has been ranked 24th among the global vehicle manufacturers by an international automobile magazine. Another Indian automobile company, Telco has been ranked 28th by the Automotive News, 1998 market data book on the basis of production and sales in the year 1997. Korean auto giant Hyundai Motor Company, which is about to launch its first vehicle Santro the small car in India later this year, stood 13th in the list of leading auto companies topped by the U S-based General Motors. Quoting the magazine, Hyundai claimed in a statement here today that it topped the Korean auto market, edging out the nearest rival Daewoo Motor Company. Daewoo stood 18th in the list and second in Korea, according to the magazines global list. While MUL produced 3,49,230 vehicles and sold 3,46,159 during 1997, Telco, the only other Indian company to figure in the list, manufactured 1,83,982 vehicles and clocked a worldwide sales of 1,81,328 during the same year. The worldwide sales figures by the magazine for 1997 stood at 53,404,834 vehicles that included passenger cars, light, medium and heavy commercial vehicles. Three Japanese companies made it to the first ten in the group with Toyota Motor Corporation being ranked third and Nissan Motor Corporation seventh. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. September 1: The Bombay High Court today admitted a writ petition alleging involvement of Deputy Chief Minister Gopinath Munde in a Rs 185-crore fraud in the Maharashtra State Electricity Board (MSEB). The petition, filed by three consumers including Congress MLA Digvijay Khanvilkar, alleged that MSEB awarded the contract for retrofitting of 15 turbines and other machinery to Power Plant Performance Improvement Ltd. (PPIL) without considering other biddings of lower cost. The petition further said former MSEB chairman P L Gajralwar and three other board members were also involved in the fraud. However, the division bench of Chief Justice M B Shah and Justice Y S Jahagirdar refused to grant stay on the contract awarded to PPIL who have been allowed to proceed with the retrofitting of turbines in seven units as work on them are scheduled to commence in the next two years. As regards other units the court directed MSEB to advertise for fresh bids and consider tenders quoting lesser price without compromising the condition of increasing power generation. The board has been directed to place the tenders before the court on November 10, 1998. The petition alleged that at a meeting of the directors of the board on January 28, 1998, Gajralwar along with board members Sudam Mandlik, Ashok Sampat and Anil Rathod hurriedly decided to grant the contract to PPIL. The chairman pressurised other directors to award the contract to PPIL, the petition said adding that the technical and accounts members of the board were not in favour of awarding the contract to PPIL while another company LMZ had quoted lower rates. The petition stated that the board meeting was held to decide on the work on one unit. However, the chairman and the three members decided to award PPIL with contracts for other units as well. This is illegal, arbitrary and against the interests of consumers because it would affect the performance of the MSEB, the petition said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sep 1: The government has increased drawback rates on 219 items, lowered rates for 290 items and introduced six new items into the list. Major items on which drawback rates have been increased are readymade garments, hand tools, bicycle and bicycle parts, brass artware, brass hardware, leather and leather products, made-ups including handloom made-ups, and certain machinery items. The new rates will come into effect from Wednesday. Referring to the special additional duty levied in the budget, the finance ministry release says the levy of 4 per cent SAD has been taken into account alongwith 5 per cent SAD applicable on various imported inputs. This will provide export products the necessary leverage to compete with products of South East Asian Countries where prices have fallen steeply on account of the collapse of currencies, it says. The release adds that the increased drawbacks take into account the increased incidence of duties introduced on different inputs used by exporters. It has been the endeavor of the finance ministry to ensure that exports do not suffer on account of high custom and excise duties, it says. Highlights of the changes are as follows (i) the six new products which have been included are surgical blades, heat resistance rubber, non-computing registers, dual type, electrical motors and tennis rackets (ii) 219 items on which rates have been increased are items where duties have increased or the total incidence of duties have increased due to rise in input prices (iii) rates in respect of 238 products are being continued at existing levels as there is no change in input duties and prices (iv) rates of 290 products have to be revised downwards in view of reduction in duties and prices of inputs used by manufacturers (v) on handloom products rates have been revised upwards and the description has been revised to include all varieties of made-up articles. This will enable exporters to earn drawback on any article including new varieties which are in demand in the international market (vi) draw back rates have been re-introduced for garments exported from EOU/EPZ units which have inputs on which duty has been paid (vii) the major benefit extended to all export products on which government had decided to restrict the Modvat credit availed to 95 per cent is a new provision in the drawback table which compensates exporters for the 5 per cent Modvat credit which cannot be otherwise utilised. This removes the disability of 5 per cent which was making inputs costlier to exporters (viii) in the case of handloom products, handicrafts including handicrafts of brass artware, finished leather, grey fabrics and other export products which are unconditionally fully exempt from excise duty, it has been decided to dispense with the need to produce certificates regarding non-availment of Modvat facility as a measure to simplify export procedures and pay drawback moreexpeditiously to exporters (ix) in respect of certain other products a circular has been issued on guidelines to be followed for verification of Modvat availed. The range of exports which will now get higher duty drawback is wide. This is because the special additional customs duty is being levied -- on top of the 5 per cent special customs duty -- on a large variety of imports which go into exports. Among the beneficiaries of higher duty drawback are thrust items like textiles, drugs and pharmaceuticals and electronic hardware. On the flip side, duty drawback rates have been lowered for 290 items. This seems to be an economy drive. Apparently, duty foregone in favour of exports is large -- a consequence of efficient computerised settlement of drawback claims -- and is more than 25 per cent of annual customs revenue. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, Sept 1: Tatas today announced their formal decision to pull out of their proposed Rs 1,475-crore airline project with the Ministry of Civil Aviation continuing to delay the project for one reason or another -- the project has been delayed by over 43 months already. This makes it the second time in as many months that the Tatas have been forced to pull out of a major venture involving prestigious foreign investors because of the delay tactics of this very ministry -- in July, the Tatas pulled out of the Rs 1,200-crore Bangalore airport project after the ministry tried to change the terms of the project and later refused to honour commitments given by them to the Tatas at the time of the original bid. The Tatas decision to pull out of the airline project was communicated to Civil Aviation Secretary P V Jayakrishnan in a letter written by Tata Industries director Sujit Gupta. Gupta also sent a separate letter withdrawing the groups application with the FIPB to its chairman T R Prasad. Copies of the letter were also sent to all FIPB members including Finance Secretary Vijay Kelkar, Commerce Secretary P P Prabhu, and A N Ram who is the economic secretary in the Ministry of External Affairs. While no comments could be got from either the Civil Aviation Minister Anant Kumar or the Secretary, when contacted FIPB officials said the Tatas had in fact appreciated the positive role played by them and had said the main reason for the delays lay with the Aviation Ministry. Briefing the press shortly after todays letters were shot off, Gupta said their decision to pull out of the project was not in any way a vote of no-confidence in the government but was really a vote against the Ministry of Civil Aviation. Todays decision was interpreted by observers as a smart one since the expert committee set up by the Aviation Ministry to examine their project after sitting on it for eight months was sure to reject their case. As a Tata spokesperson put it at todays briefing: The committee has been set up by the same ministry which has been opposing the project. Indeed, all evidence seems to suggest that the ministry has played foul with the Tatas, with the aviation policy itself being changed, and several amendments added to it, to prevent the airline from taking off (see box). So, for example, while the earlier policy allowed foreign airline companies to have a 40 per cent stake in local carriers, this was changed when the Tatas roped in Singapore Airlines as their partner. This, despite the fact that the government allowed Jet Airways to carry on with a 40 per cent stake by foreign airlines. And, in December 1997, also allowed ModiLuft to sell 40 per cent of its equity to foreign investors -- the latter deal never worked out eventually, but for different reasons -- but never asked it to disclose who the investors would be. Similarly, when Jet Airways was given six months to divest the stake of foreign airlines -- Kuwait Airways and Gulf Air -- it just gave a three-line letter to the ministry saying it would comply. Nor were any questions asked about the details of the shareholders of its holding company, Tailwinds which is registered in the Isle of Mann. The Tata proposal was, however, put off for several months with the ministry insisting on getting full details of who the investors would be -- the fact, however, is that with the proposal not even cleared, how could the Tatas get any investors in the project. The key problem, as is evident to all including those in the government --the PMO, the Finance Ministry and the Industry Ministry have been strong supporters of the project -- is that the Tatas were checkmated by domestic vested interests, generally suspected to be competing airline companies. In fact, at one stage, even the state-owned Indian Airlines was brought into the act and put out a note saying that they would be hit badly by the proposed Tata Airline. Most of the facts in this note, however, were incorrect -- the note, incidentally, formed the basis on which several MPs opposed the project. The note, for example, talked of how IAs capacity utilisation (load factor, in jargon) had fallen in the last few years, when it had actually gone up. It also spoke of how there was plenty of excess capacity in the industry today, when in fact the civil aviation ministry itself had pointed out that there was a demand of 47 additional 120-seater aircraft in the next three years. Add to this the fact that, in the last two years, 17 aircraft of different airlines have gone out of use. The Tata Airline which would involve foreign equity of Rs 278 crore was expected to generate direct employment to around 2,400 people by the fifth year of its operations, and to 10,000 people indirectly in terms of support staff at airports, baggage handlers, and so on. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sep 1: The strong builder lobby of the Vasai-Virar region is taking on the City and Industrial Development Corporation (CIDCO) for the latters incompetence to announce a development plan for the region. Even as the last date to submit the final plan is fast approaching, CIDCO officials are not showing any signs of action. As per the provisions, the special planning authority has to submit the final plan to the State Government for its sanction on or before September 6. If CIDCO fails to do this then there will not be any development plan for the region which is legally valid. This will create a vacuum which means unauthorised construction and haphazard development, say builders. In 1990, the state government had appointed CIDCO as a Special Planning Authority for this region replacing the Bombay Metropolitan Region Development Authority (BMRDA). CIDCO took almost two years to prepare and publish the interim development plan, which was full of anomalies. It was expected that the final plan would be published after hearing suggestions and objections from the public. However, it turned out other way round and this time the objections, suggestions were to the tune of about 6000. It is mandatory for any planning authority to finalise the plan within three years from the date of publication. It was felt by the builders that CIDCOs Vasai office may not be able to complete the legal formalities before the final date. But even after almost eight years, CIDCO could not finalise even a Development Plan about the implementation. Recently in many building permission cases, CIDCO has refused to grant the development permission due to expectations of substantial modification in the published draft development plan. If major modifications are expected, the plan needs to be republished and once again the entire procedure of calling the objections/suggestions and conducting the hearing will have to be followed. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, September 1: In order to check the incidence of adulteration of edible oil, the Department of Sugar and Edible Oils of the Ministry of Food and Consumer Affairs has intensified its quality control measures. The department would hold surprise checks at units that manufacture vegetable oil products and solvent extracted products. Besides, the frequency of regular inspection has also been increased. Last week, the Government had taken a decision to import edible oilseeds. In order to ensure the availability of unadulterated oil at reasonable prices, the Government has also strengthened the public distribution system in edible oils and has made arrangements for the supply of imported oil wherever needed. All field officers have been instructed to draw samples from all manufacturing units in their zones for purity checks. These officers have also been directed to lift samples from the market. The Ministry has also strengthened the Consumer Service Centre of the Directorate of Vanaspati, Vegetable Oils and Fats at Super Bazaar (Connaught Place) in the Capital in order to provide testing facilities to the consumer. A fee of Rs 10 is being levied per test, at present. Besides, the industry has also been directed to check the purity of the raw materials and finished products. Operations are being suspended at manufacturing units that have found items to be adulterated till the time they set up adequate analytical facilities for checking their purity, to the satisfaction of the Government. The department has already banned the use of mustard oil in the manufacture of vanaspati oil. Besides, the state governments and Union Territories have been asked not to sell mustard oil in loose form. The states have also been directed to monitor the quality of edible oils more stringently. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, September 1: Hectic consultations are taking place between banks, financial institutions (FIs) and the RBI to come up with a bailout package for the thousands of small/medium sized industries which are facing problems repaying their interest or capital, due to the industrial slowdown. Among the suggestions doing the rounds are that FIs/banks be more liberal in considering the request of companies in distress and grant a three-year moratorium on repayment of interest/principal in a larger number of cases. The proposal has gathered steam in the last month, with major political parties putting pressure on banks/FIs to reschedule loans of various companies, especially those in the small and medium sector -- FIs are, in any case, rescheduling several loans of larger corporates these days. It is believed that the matter also figured during the last meeting of the standing committee on finance. In the last month, three sets of meetings have taken place on this between various banks, FIs and the RBI. Interestingly, in this case, the banks/FIs are also keen on working out something, as their non-performing assets (NPAs) are increasing since their borrowers are not paying their interest or repaying the capital borrowed in the past. It is now being proposed that the RBI change the classification of NPAs to take care of the interests of the banks/FIs. Under the present norms, if interest is not paid on a loan for two successive quarters, it is to be declared as an NPA. Under the proposed scheme, this will be increased to four quarters. The proposal, which will be widely welcomed by both industry as well as banks/FIs has, however, sent chills down the spines of several top bankers as this will make banks more lax in their loan appraisals and is also prone to a lot of misuse. If it is generally known that banks will be a lot more amenable to granting a moratorium, then there would be increased pressure to grant this to favoured companies. Among the other proposals being considered as part of this package are that, for new projects, loans be provided at a zero interest rate for the first three years, and to charge this from the companies by levying higher rates for the later years -- thus companies would not face a cash-flow problem in the early years. Another proposal is to allow banks/FIs to reschedule loans of companies engaged in new projects without attracting the provisions of NPAs. So, if a company is setting up a new project but does not start production, the FI/bank can renegotiate the loan, and make it more attractive for the company. This will benefit several greenfield projects currently underway and which are facing severe problems in their cash flows. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. September 1: Defending champions Air-India swelled their WIFA Super Division League points kitty today after registering a convincing victory over Central Bank of India (CBI) here at the Cooperage. In another Super Division match, substitute ME Satishs last minute strike a saw Bank of India (BoI) derail Central Railway (1-0). With todays victory, Air-India are sitting pretty at the second spot havign logged 18 points from 9 matches. Bengal Mumbai Football Club (BMFC) head the standings with 22 from 10 matches. Air-India who dominated the proceedings shot into an early lead, thanks to a bad collection by CBI goalkeeper Jerome Ghanekar. Mid-fielder Khambiton Singhs goal-ward bound aerial long-ranger found Ghanekar making a mess of it. Opportunistic striker Debdas Sen, who migrated from Eastern Railway this season, made full use of the chance at his feet to lob the ball into the net. Anthony Fernandes sealed victory for A-I in the 50th minute when he outpaced the Bank defenders and thumped into the net from close. The Central Railway-BoI encounter was an evenly contested affair. Though Railway dominated the first quarter of the match, BoI settled down before creating openings. The bankmens endeavour paid dividends in the last minute when Satish shocked the railwaymen when he nodded in a Navin Kotians cross. The opposition were found flatfooted as they waited for off-side trap. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: The Bombay High Court today allowed Revenue Minister Narayan Ranes plea requesting the deletion of his name from the list of respondents in a public interest petition filed by Nashik Municipal Corporation member Gajanan Shelar. A division bench of the High Court comprising Chief Justice M B Shah and Justice Y S Jahagirdar however admitted Shelars petition challenging a state government order restoring land acquired for the Nashik-based Maharashtra Engineering Research Institute (MERI) to its original owners. In his prayer, Shelar had urged the court to direct the Anti-Corruption Bureau to file a case against Rane under the Prevention of Corruption Act, contending that the order passed by the minister to restore the land was bad in law and with malafide intention. In 1963, the state government had acquired 400 acres of land for MERI at Nashik. The farmers were compensated as per the provisions of law. In 1993, some of the farmers approached the district collector, asking that the unutilised land be returned to them. The farmers submitted that as per the provisions of an order passed by the government, if the acquired land was not utilised within three years and if it was not required for any other public purpose, then the same should be returned to the original owners at a price, which should not be more than double the price of the original compensation. The plea however was rejected by the Nashik Collector, following which the farmers filed an appeal before Rane. The minister ordered that in addition to the 176 acres of land on which some construction had already taken place, MERI should retain an additional 50 acres of land and that the remaining land be restored to the original owners. Challenging Ranes order, Shelar alleged that it was passed with malafide intention and named Rane, along with the Revenue secretary and the Nashik Collector, as a respondent in his petition. Appearing for the minister, counsel Dhananjay Chandrachud urged the court that Ranes name be dropped from the list of respondents since the order was a quasi judicial verdict in his capacity as a Revenue Minister and that it was passed after taking into consideration the facts brought before him by the farmers. The court accepted Chandrachuds plea and dropped Rane from the list of respondents. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MOSCOW, Sept 1: In the grips of political storm each in his own country, Russian President Boris Yeltsin and US President Bill Clinton today bear-hugged in the formers study to inaugurate, what promises to be, a summit of uncertain terms. The first agreement to trickle out was a joint pledge to eliminate some stockpiles of plutonium taken from dismantled missile warheads. Clinton and I know one another well, and we are friends, Yeltsin said earlier at a Moscow school. With Russia reeling from a political and economic crisis, Yeltsin formally welcomed Clinton outside the Kremlin after wreath-laying at Moscows tomb of the unknown soldier. Republican senator Pete Domenici who flew here with Clinton, told a media person today that the two Presidents would sign tomorrow an agreement to get rid of about 50 metric tons of plutonium on each side and break down the weapons material so it cannot be used for military purposes. We both have way more than we need, Domenici said. A draft of the leaders joint statement said the plutonium would be withdrawn in stages, with financing arrangements to be set by years end. The draft said: Measures to manage and reduce such stockpiles are an essential element of irreversible arms reduction efforts and necessary to ensure that these materials do not become a proliferation risk. Earlier, Viktor Chernomyrdin, acting prime minister, met Clinton and his wife, Hillary, at the Moscow airport. Hoping to get a boost from summiteering, and doing his bit as an ambassador of Wests free market, Clinton pledged continued US support for Russia as long as its leaders stay on the path of reform and do not revert to the Communist ways of the past. With a message of support but no financial help, the US President urged Russians to reject the failed policies of the past in coping with their current economic crisis. Given the facts before you, I have to tell you that I do not believe there are any painless solutions, Clinton told a new generation of Russian leaders at Moscow state university of international relations. He repeatedly said that Russia must play by the rules of international commerce. With Russias economic turmoil throwing the summit agenda into uncertainty, Clinton addressed the crisis with frankness, but offered no specific ideas on how the infant democracy could weather the tailspin of its currency. Earlier, at the start of their meeting, Yeltsin presented Clinton with a loaf of salted bread, a traditional East European symbol of welcome. Clinton pushed at the bread with the heel of his hand, and it sprang back up. Amazing, kind of like you, Clinton told his embattled host. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: Former Prasar Bharati Board chief executive officer (CEO) S S Gill today filed a petition in the Delhi High Court challenging the constitutional validity of the Prasar Bharati ordinance which terminated his service by reducing his tenure as CEO. The petition, which will come up for hearing tomorrow, termed the ordinance unconstitutional, saying a Bill of the same nature was awaiting the Rajya Sabha (RS) nod after being passed by the Lok Sabha on July 31. The 72-year old Gill said the ordinance, which fixed the age limit of the CEO at 62 years, was politically motivated as the Bharatiya Janata Party Government, ever since its inception, had a one-point agenda to oust him from the post. He alleged in his petition that the Government was inimical to his continuation as CEO as he did not operate as per their whims and fancies. The way the ordinance was promulgated, he said, was a subversion of democratic and parliamentray norms, as one House of Parliament has passed the Bill and the other is yet to discuss it. By bringing in this ordinance, the Government has bypassed the RS, Gill said. The ordinance, restoring the original 1990 Act, was promulgated on Saturday night and the Government immediately appointed All India Radio Director General O P Kejriwal in Gills place. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, September 1: Tata Industries has roped in ICICI Securities and Finance Company (I-Sec) managing director Kishor Chaukar as its new managing director. Chaukar, who has been associated with the investment-banking arm of ICICI since its inception, will put in his papers over the next few days. Tata Industries is appointing a mew managing director shortly. He is KA Chaukar, currently the managing director of I-Sec. Chaukar brings to Tata Industries considerable experience in project evaluation and project finance, a Tata Services press release said. Tata Industries is the main promoter of the Tata group in new projects in the areas of information technology, telecommunications and other high technology areas. It happened very fast. It is not an opportunity in finance. I will be involved in setting up new projects for Tata Industries. It is a challenge I am looking forward to, he said. The financial sector has not been surprised by the development, as Chaukar is believed to be not enjoying his assignment in I-Sec for quite some time now. The massive loss posted by I-Sec in 1997-98 did not go down well with the ICICI management. More complications cropped up when overseas partner JP Morgan decided to call it a day early this year. I-Sec has also lost the prime of place in the new scheme of things at ICICI, which is fast turning into a universal bank, following the recommendations of McKinsey Co. A sizable number of I-Sec employees left the fold to join JP Morgan, few departments wound up and some of I-Sec executives were called back to ICICI. Chaukar, however, was made ICICI executive director and sent on deputation to I-Sec as its managing director. Chaukar has been associated with ICICI over 14 years. Joining as an officer in 1984, he spent four years with the merchant-banking wing and another four years heading ICICIs Delhi operations. In 1995, he took over as CEO of I-Sec when NJ Zaveri called it a day. A release issued by ICICI said that since Chaukar had decided to join Tata Industries, he would relinquish his position as director on the boards of ICICI, I-Sec and TDICI in October. Related directorships would be relinquished simultaneously, said the release. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: The cold war between the alliance partners over the Rs 10,000 crore Shivshahi Punarvasan Prakalp scheme is still simmering if the drama at todays special cabinet meeting is any indication. After BJP leader Kirit Somaiyya publicly criticised high-profile Housing Minister Sureshdada Jain over the housing scheme, it was Jains turn to hit back and he did so by halting a proposal mooted by Deputy Chief Minister Gopinath Munde. Munde, who also holds the energy portfolio, had put forward the revised Power Purchase Agreement between the Reliance and Maharashtra State Electricity Board (MSEB) for the 410 MW Patalganga power project before the cabinet members at a special meeting on August 29. Taking objection to it, Jain urged the Chief Minister to defer the proposal for the next cabinet meeting since he had not read the cabinet note drafted by the Energy Department. Joshi readily agreed to the proposal and accordingly, it was postponed and brought up again at todays cabinet meeting. But when Jain made the same plea at todays meeting, Munde virtually stalled the cabinet for a while, saying, that since he had not read any of the cabinet notes, all the items of the agenda should be taken up at the next meeting of the cabinet. Not only BJP Ministers, but a section of the Shiv Sena cabinet members openly came out in support of Munde, saying, such a practice should not be encouraged. Secondly, they also urged the Chief Minister to circulate the cabinet note atleast one day in advance so as to allow Ministers to carefully study them. Apparently sensing trouble and the possibility of BJP members boycotting the cabinet for a second time, the Chief Minister declined to take note of Jains plea and took up the proposal moved by Munde. Meanwhile, Jain looked completey disappointed over the progress of the slumdwellers scheme. So far we have met on three occasions, but we have not touched the basic objections raised by the BJP, Jain said. Following objection taken by Somaiyya, Thackeray had set up a committee comprising Chief Minister Manohar Joshi, Deputy Chief Minister Gopinath Munde, Sureshdada Jain, Kirit Somaiyya and Housing Development Corporation Chief Deepak Parekh to review the project and examine the objections raised by BJP. On the objection raised by the BJP over the tendering system, Jain said for more transparency in the entire process, he was prepared to appoint former Chief Secretary D M Sukthankar, Kirit Somaiyya, Congress leaders Chhagan Bhujbal and Madhukar Pichad on the committee. When his attention was drawn to the objections raised by the State Planning Board headed by BJP leader Prakash Jawdekar, Jain said since the project has been approved by the Cabinet, the highest decision making body, he was not concerned about the views of the planning board. Referring to the threats received by him and Housing Secretary V P Raja, Jain said it was brought to the notice of the Chief Minister, who has enhanced security for him with immediate effect. I do not know as to what is the additional security provided to him. But I am told that the security has been enhanced, Jain added. Munde confirmed that additional security has been provided to Jain following threats to his life. Like the security to former Ministers Ganesh Naik, Suresh Navale and Gulabrao Gawande, additional security has been provided to Jain and Raja, Munde pointed out. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI: Union civil aviation minister Ananth Kumar on Tuesday said the centre will allow 100 per cent participation by international consortiums with local partners in the construction of domestic airports. Inaugurating the first electronic international exhibition and conference Nepcon India 98 organised by the Confederation of India Industry (CII) and Electronic Components Industries Association (Elcina) here, Kumar said the centre had decided to allow consortiums to invest fully as against the earlier 74 per cent. Kumar said his ministry will clear the international airport project at Devanahalli within a week if the Tata consortium approached them. During his recent meet with the Tata group chairman Ratan Tata, the latter had promised to come back to him after revaluating the project with the consortium partners--Raytheon and Singapore consortium, besides consulting Karnataka chief minister JH Patel. Kumar said the review of the project was not put forth by his ministry but was suggested by Tata himself during the meeting. He said he had agreed to release the excess land held by the airport authorities near the Bangalore airport for construction of a four-way freeway to develop the whitefield IT Corridore. If the four-lane highway was completed, the proposed Pragati Maidan-like exhibition complex and international technology park, besides the airport, would stand to gain. On the exhibition, Kumar said the centre was committed to make the country a global IT destination and urged the sector and the state government to integrate technology as it would be more relevent in the 21st century. The four-day exhibition will have exhibits from Germany, Italy, Japan Switzerland, Taiwan and Singapore. Electronic component is one of the fastest growing sector with the estimated demand-supply gap expected to increase from 1.14 billion in 1997-98 to 2.94 billion by 2001-2002. While 18 companies under the banner of Udyog Mitra are participating from Maharashtra, ten manufacturers from Andhra Pradesh have put their products on display. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK Sep 1: White for day, black for night. And on that fashion note, Pete Sampras and another pair of former champions got the US Open started on a run that could end in Grand Slam history. Sampras, dressed all in white, but no country-club gentleman, starred on a sun-drenched Monday afternoon on the stadium court. Monica Seles, wearing a black dress to mourn this springs death of her father, outslugged Florencia Labat of Argentina 7-6 (7-0), 6-2. And Andre Agassi, merely making another in a series of fashion statements, beat Frances Sebastien Grosjean in the last match of opening day, 6-4, 6-1, 6-4. The afternoon crowd didnt see the best Sampras, the one who took Wimbledon for the fifth time and is trying to add a fifth US title and record-tying 12th Grand Slam singles crown. It didnt have to be. Goellner, a 27-year-old German, last won a match more than two months ago. His game consists primarily of a first serve that reaches 115 mph if hes on, and against Sampras much more is needed. Sampras had eleven aces and dropped just 15 points on his serve, clocking one first-set ace at 131 mph. He didnt allow Goellner, ranked 109th in the world, a break point, and toyed with him from both baseline and net in winning in just 84 minutes. You just try to get through the early rounds, said Sampras, eliminated in the fourth round a year ago. Its nice to get that monkey off your back and get into the tournament. I tried to stay focused and I think I did. Six more wins over the next two weeks and Sampras joins Roy Emerson as the only players to win an even dozen Grand Slam singles tournaments, the milestone the tradition-minded Californian treasures above all others. What more can you do in the game Win the French Open, maybe, or all four Slams in one year, Sampras said. The French Open, on clay, is the only Grand Slam tournament sampras has not won. Im thinking of entering the ladies tournament next year, he said. Maybe I can get lucky and win that. Adding a second Grand Slam title for the year also would do plenty to clinch the No 1 ranking for the season, the sixth straight year that would end with Sampras on top, breaking the record he shares with Jimmy Connors. All those records are important to me, Sampras said. Im not focused on this tournament any more than any US Open, but I hope to get some things done over the next two weeks. No fighting words there, nothing for defending champion Patrick Rafter, No 2 Marcelo Rios or any other challenger to hang on the refrigerator for inspiration. Sampras is no trash-talker. But he has an edge, and the crowd that half-filled the 20,000-seat Arthur Ashe Stadium saw it a couple times against Goellner. Meek Pete looked positively McEnroesque as he stared down a line judge he felt missed an ace. He smirked at the umpire, and tried to get the fans who remained in the third set back into the match, waving his arms like a cheerleader. He even took a light shot at Emerson, the storied Aussie who won a large share of his slams while Rod Laver was on the sidelines in the dispute between amateur tennis and the emerging professionals. I am not trying to take anything away from Emerson and what he did, but the competition is probably tougher today than it was 30 years ago, he said. Laver could have had 15 or 20. Thats not dissing anyone or stepping out of character, Sampras said. Just responding to the surroundings. This is the most hectic of the Grand Slams, he said. You walk out at Wimbledon and you feel the history. You walk out here and you feel the electricity. The player Sampras beat at Wimbledon, 14th-seeded Goran Ivanisevic, had 23 aces in a 6-3, 6-4, 6-4 victory over Australias Mark Woodforde. Agassi, who is seeded eighth and could meet Sampras in the quarterfinals, kept Grosjean pinned to the baseline with forehands and slicing backhands. After wasting a string of break points in the third set, the 1994 Open champ finally broke for a 5-4 lead and served out the match at love. I like to be here, Agassi said of a tournament where he has played consistently well and a court he called super-fast. You have to prioritise tournaments, but this is certainly at the top of my list. This is a city where Ive had some fantastic results. Defending womens champion Martina Hingis beat Aleksandra Olsza of Poland 6-2, 6-0. The Swiss teen-ager, who won the Australian Open in January has struggled recently and hopes the open will end that. Im definitely not as confident as I was last year, Hingis said. This is the last Grand Slam of the year and you put all your energy into this tournament. Seles, a two-time open champion and a quarterfinalist a year ago, traded groundstrokes and errors with labat before blitzing through the tiebreak, then dominated the second set. With her grunting subdued from her heyday and at times mixing with the squeals of a child in the stands Seles did not allow a point on her serve in the second set until she held triple match point. Labat tied it 40-all before Seles wrapped up the victory with a service winner and a lob that labat netted. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. DURBAN, Sept 1: A strong resolution condemning the US attack on Sudan will be passed by NAM during the two-day summit which starts here tomorrow. For India, the bright side is that there will be no similar resolution on the US aggression on terrorist camps in Afghanistan, with which India is directly concerned. India has consistently sought to differentiate between Americas actions in Sudan and Afghanistan. The strongly worded draft resolution condemning the US for its unilateral and unwarranted action is despite the presence of US Assistant Secretary of State Princeton Leeman in Durban as an observer. The formal opening of the 12th Non-Aligned Movement meet tomorrow with representatives from 113 countries follows sessions between officials and foreign ministers over the last four days to finalise the draft resolutions. The resolution against the US actions in Afghanistan could not be taken up since the Rabani government has not asked for a condemnation. Effectively, however, it is the Taliban and not the official Rabani government which is in control of the country. Apart from the resolution on terrorism being in tune with Indias own perception, India also scored a victory in members acceptance of Egypts proposal that there should be an international conference under the aegis of the United Nations to discuss how to combat terrorism globally. While India has got its way on the NAM resolutions relating to terrorism, it still is uncertain whether India and Pakistan will be indirectly rebuked by NAM for their recent nuclear tests. Till this evening, there was no final decision on the wording of the resolution on disarmament. While India will not be named, the phrasing of the resolution will be significant. Several countries, including reportedly the host country South Africa, have been pressing for a resolution which will call for halting nuclear weaponisation and tacitly support the existing nuclear power structure under NPT and CTBT. Indias stand, however, is that its nuclear tests cannot be seen in isolation but in totality. India is pressing for non-discriminatory nuclear disarmament within a specified time frame. While for India the focus this summit has been on the terrorism and nuclear issues, most African and Asian countries leaders felt that the summits economic resolution is most important. The draft of the NAM economic resolution stresses the need to set up a forum where developing countries can consider ways of re-structuring the international economy so that an economic crisis like that in South East Asia can be avoided. At tomorrows function, President Nelson Mandela will take over as chairman of NAM. This is seen as a significant point in NAMs history vindicating the movements struggle against apartheid and other forms of discrimination over the past three-and-a-half decades. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MOSCOW, Sept 1: Acting Prime Minister Viktor Chernomyrdin today proposed a list of ministers for the Presidents approval, even as his own nomination remained shaky in the wake of the Communists determination to reject again his candidature in the Duma. Observers say there is little chance that Chernomyrdins nomination will be approved. Communist leader Gennady Zyuganov said they would again vote against Chernomyrdin. President Boris Yeltsin had asked Chernomyrdin to submit the list of Cabinet members to him, Public Russian Television (PRT) reported. Quoting unnamed Kremlin insiders, it said that according to the list put forth by Chernomyrdin, foreign minister Yevgeny Primakov, interior minister Sergei Stepashin, defence minister Igor Sergeyev, and federal security head Vladimir Putin would retain their posts in the new Cabinet. Before going into summit talks with US President Bill Clinton in the Kremlin today, Yeltsin made it clear that he would stand by Chernomyrdin. I insist that Chernomyrdin be, as soon as possible, approved as Prime Minister because its impossible to have a temporary person at such a post, he said, greeting students at a Moscow school on the occasion of the first day of the academic year in Russia. I insist on the speedier confirmation of the candidate, because he is my nominee, noted Yeltsin, calling on the defiant Duma to approve Chenomyrdin in the second vote, scheduled for Monday. Under the Constitution, Yeltsin can submit the same nomination thrice and if the Duma refuses to confirm thrice in a row, he is entitled to dissolve the House and call for an early election. Zyuganov, however, made it clear that the Communists would again vote against Chernomyrdin. I am not concerned about the dissolution of the Duma. I am concerned about the dissolution of the country, he said, expressing the mood of majority of the deputies. He (Yeltsin) insisted on the appointment of Ilyushenko, (former prosecutor-general) and nominated his candidacy thrice. But Ilyushenko went straight to prison. He also insisted on the nomination of (Sergei) Kiriyenko, who brought the country on the verge of bankruptcy. Now he is insisting on Chernomyrdin. This is the molestation of Duma, rape of Russia, he said. Speaking to commercial NTV, recently-appointed Russias Federal Security chief Vladimir Putin said Yeltsin was not considering use of force to solve the economic problem of the country as claimed by many lawmakers. Putin said he had no instructions from either the Kremlin or the government to use force to deal with Yeltsins Communist rivals. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CALCUTTA: Formidable East Bengal defeated strong contender Mohammedan Sporting 2-0 in the first round of the Tata Tea-IFA Super League soccer at Salt Lake Stadium here today. The match was organised just to complete the formality as both these clubs along with Mohun Bagan had already assured their places in the second round of the league which would be contested between five top finishers of the first round. Dipendu put East Bengal in the lead in 34th minute converting a spot kick which was awarded when he was tripped inside the box by Mohammedan defender Soumen Sarkar. East Bengal kept up their pressure and buttressed the margin three minutes later. This time Dipendu collected the ball following nice through by medio Tushar Rakshit who beat a couple of defenders and scored. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: S Ramaswamy tamed the firepower of Nachiket Chawathe 17-21, 21-19, 21-15, 23-21, to win the mens singles title in the Clinic All-Clear sponsored Mumbai YMCA Major State Ranking Table Tennis tournament at the Sachivalaya Gymkhana here today. Chandani Asher won the womens final, clawing back from a 1-2 deficit to defeat Deepali Zaveri 21-18, 10-21, 18-21, 21-15, 21-6. However, Chandani blew a 2-0 lead in the junior girls final that allowed Sherry Crawford to win a double (16-21, 16-21, 21-19, 15-21, 22-20). Sherry had won the sub-junior title earlier. Eric Fernandes confirmed his status as the top-ranked junior in the absence of fancied Aditya Mahagaonkar to claim the boys title beating Kalpesh Mohite 21-15, 21-14, 18-21, 22-20. Ramaswamy, who had to bear the brunt of Chawathes attack in the first game, which resulted in a 17-21 loss. However, Ramaswamy slowed down the game in the second, forcing Chawathe to jab and make errors. Then came his familiar rally. Down 16-19, Ramaswamy won the next five points to win the second game. After winning the third game, Ramaswamy faced a determined Chawathe in the fourth game. Chawathe forced an 18-16 lead but Ramaswamy fought his way to take lead at 19-18. At 19-all, he hit a brilliant forehand topspin that gave him one match point. But Chawathe levelled the scores once again with a swift back-hand jab. After sharing two points each, Ramaswamy won the match on two errors to bring an end to a fine duel. Chandani tried to defend too much after winning the first game and lost the second and third. When she play a bit more positive, it gave her results as she won the fourth game and then won 11 points consecutively in the decider as she moved from 6-4 to 17-4. Deepalis fight ended then and there. Eric looked to have lost his concentration in the third game which he lost but he regained it on time to win the fourth game in extra points and claim his second title within a week. He had won the junior boys final in the state Ranking tournament at Anushakti Nagar on Saturday. The girls final was exciting and it showed the spirit of Sherry Crawford. She fought back from the loss of the first two games to win the title. In the first two games, it as a battle of patience and it was won by Chandani. In her eagerness to attack, Sherry made several mistakes. But a slight change in tactics turned the fortunes for her. Instead of attacking, she started pushing the ball and forced Chandani to attack paving way for more errors from the latter. The decider was tight with the scores running close from 15 all onwards. Sherry had one match point but Chandani saved it only to lose the next two points for a 20-22 loss in the decider. Yadav, Mamta triumph Sagar Yadav of Mithibai and Mamta Prabhu of Mulund Commerce won the boys and girls singles titles in the Junior Collegiate Table Tennis championships at the University Pavilion here today. Second seed Sagar defeated top seed Karan Kapoor 21-19, 21-11 while Mamta won 18-21, 21-19, 21-16 against Shriti Doshi of Podar. Shriti had knocked out top sed Janhavi Deshpande of Mulund Commerce in the semi-finals. Vaze won the boys team championships beating KC 2-0 in the final while the strong Mulund Commerce trounced Mithibai by the same margin to claim the girls title. Boys singles (final): Sagar Yadav (Mithibai) bt Karan Kapoor (Jai Hind) 21-19, 21-11. Semis: Yadav bt V Srinivasan (A Energy) 21-12, 21-14 Kapoor bt Gunjan Wagle (Vaze) 21-16, 21-14. Team championships (final): Vaze bt KC College 2-0 (A Ganpatye bt A Khambatta 21-10, 24-22 G Wagle bt B Mistry 21-12, 29-27). Girls singles (final: Mamta Prabhu (Mulund Commerce) bt Shriti Doshi (Podar) 18-21, 21-19, 21-16. Shriti bt Janhavi Deshpande (Mulund Commerce) 21-12, 21-12 Mamta bt Bindu Suvarna (Mithibai) 21-13, 21-13. Team championships (final) . Mulund Commerce bt Mithibai 2-0 (J Deshpande bt B Suvarna 21-7, 21-9 M Prabhu bt S Shroff 21-6, 21-6). Sujata, Nimkar top Unseeded Niranjan Nimkar and second-seeded Sujata Hailinge won the mens and womens singles titles, repectively, in the first Dilip Babar-sponsored Thane District Ranking carrom tournament, organised by the Sainath Seva Mandal (Bhayander), today. Sujata shocked top seed Shilpa Joshi, 25-12, 25-20 and Nimkar beat unseeded Shabbir Khan 25-8, 23-25, 25-3. Other results: . Mens (semi-finals): Niranjan Nimkar bt Sanjay Mande 25-1, 25-11 Shabbir Khan bt Priyang Vaidya 25-16, 25-17. Shilpa Joshi bt Minal Lele 11-25, 25-22, 25-24 Sujata Hailinge bt Sumedha Karkhanis 25-11, 24-25, 25-18. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI: Project 2000s Manisha Gawande was crowned the Best Athlete in the Freedom Road Race organised by Ryan International Sports Club at the St Lawrence High School yesterday. She was awarded the IC Colony Sports Club Trophy donated by former national long distance runner Dayanand Kumar. More than 4000 athletes from 45 institutions took part in the competition co-sponsored by Corporation Bank and KV Pai, according to reports reaching here. 1 Vijay Kashte (LIC) 22.36 mins, 2 Mahesh Monde (VPM), Yogesh Satam (VPM) Vivek Pratap Singh (Project 2000) 6:53, Deepak Thakur (Project 2000), 3 Dinesh Acharya (VPM) Rajul Paigaonkar (VPM) 9:16, Ashwin VK (United Athletes), Sameer Phople (VPM) Kailash Rao (VPM) 5:35:9, Khaiyam Malbari (VPM), Sumeet Roy (Holy Family, Andheri) V Satyabhama (WR) 12:47, Arti Malekar (Prabhodan), Sushma Chalke (WR) Judy Verghese (Project 2000) 9:35, Sushma Amre (Om Track), Manisha Tawade (Prabhodan Krida Bhavan) Manisha Gawande (Project 2000) 9:33, Shimona DCosta (United Athletes), Smita Salvi (Om Track) Aditi Tawade (Om Track) 6:28, Ramya Rao (VPM), Nafisa Khan (St Annes, Borivli) ST Andrews Junior College beat G N Khalsa 2-0 to lift the title in the Bombay Division hockey boys under-19 Junior Colleges final of the Multigames City and Suburb competition, organised by the District Sports Govt of Maharashtra, at the BHA today. Outside-left Gilroy DMello scored both the goals in a match totally dominated by Andrews. Khalsas had just one look at the goal in the first-half. In the sixth minute, Eldridge Saldanha, playing in the deep defence, moved well up to send a neat diagonal hit to find an unmarked Gilroy in the dee. Gilroy collected neatly and sent a rasping shot giving the Khalsa goalkeeper no chance to effect a save. Though Andrews dominated, they were unable to convert their chances. The culprits being Galvin Alfonso, Marshall Nazareth and Roshan. Warren Carvalho, at centre half position, played on the heels of his forwards and distributed well. In the 44th minute, Warren found Marshal who beat his left-half and sent in a cross. Gilroy, lying handy, collected the ball and scored with a reverse hit. Thereafter, the match was as good as won by Andrews, though superior but goal shy. Other results (all finals): St Annes, Orlem, 13 (Savio Nayak 5, A Sequeira 3, Snedden Pereira 3, Lawrence Soares, Adrian DSouza) bt St Sebastian Goan 0. St Andrews, Bandra, 11 (Tyron Pereira 3, Dexter Manki 2, Farhan Khan 3, Jerry Almeida, Gavin Pereira, Naeem Jagani) bt St Sebastian Goan 0. Khalsa 2 (Mamta Singh 2) bt St Andrews College 0. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: Nina Pillai, widow of biscuit baron Rajan Pillai, today filed a petition of criminal contempt against the Director of the Central Bureau of Investigation (CBI) for not complying with the court orders and investigate the alleged conspiracy behind her husbands death in July, 1995. The petition -- the first ever case of contempt against the CBI -- charged director Trinath Mishra and SP D P Singh of abuse of the process of the court calculated to hamper the due course of a judicial proceeding and the orderly administration of justice. Filed in the court of Chief Metropolitan Magistrate Prem Kumar today, the petition said the CBI had failed to comply with two of the courts orders dated August 12 and August 20, respectively, both directing the CBI to register a case and probe the conspiracy angle in the death of Rajan Pillai in Tihar jail. Nemi Chand Jain, better known as tantrik Chandraswamy, is the main accused in the case of conspiracy. However, Nina Pillais counsel Anitha Shenoy alleged that it is abundantly clear from the pattern of litigation initiated by the CBI that they are not interested in investigating the case and have therefore have tried every method to delay the proceeding. The CBI had filed its third application making the same request of adjournment for 15 days. There does not seem to be an end to these applications. This is nothing but a mockery of the court, Nina Pillai charged in the petition, adding, the repeated applications by the CBI despite refusal amounts to a daring raid on the court and is calculated to obstruct the due course of judicial proceeding and administration of justice, and thus falling squarely within the ambit of criminal contempt. Giving the details of the CBI conduct, the petition stated that on May 24, 1997 CMM Prem Kumar said that the CBI was a competent authority to investigate Pillais death. The CBI was asked to file a compliance report before September 30, 1997. But, the petition added that in order to delay the compliance, the CBI filed an application for recall of the order which was dismissed on August 14, 1997. The CBI then filed a revision application in the Delhi High Court saying that the lower court could not direct the agency to investigate a case. However, this too was dismissed by the High Court on August 7, 1998. The CBI, at the stage of passing the order by the High Court, requested for one month adjournment in order to file a Special Leave Petition (SLP) but this too was turned down. In the meantime, CMM Prem Kumar too rejected the CBI application for adjournment on the plea of filing a SLP on August 12. However, Nina Pillai alleged that knowing CMM Prem Kumar was on leave, the CBI obtained an ex-parte order on August 20, giving them 15 days time to comply with the previous order of August 12. This is clearly and unequivocally an abuse of the process of the court, the petition alleged. Nina Pillai stated that she filed an application for recall of the August 20 order and the court directed the CBI to register the case before 2 p. m. on August 31. However, yesterday again the CBI filed another application asking for 15 days time for filing the SLP. The application could not be heard and put off till September 4 as the CMM was on leave. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: Union Minister of State for Urban Affairs Bandaru Dattatreya said it would have been better if Secretary Kiran Aggarwal had been transferred rather then being divested of all her responsibilities (while still in the ministry). Otherwise, he said, the ministrys functioning and the officials morale suffered. While emphasising that he had the best of relations with Jethmalani and that he agreed with all his policy decisions, Dattatreya has said that the present crisis in his ministry should have been handled in a more smooth manner. Yesterday, his senior, Urban Affairs Minister Ram Jethmalani, had divested Secretary Kiran Aggarwal of all her powers as a sequel to differences over the MRTS project and the decision to re-allot a complex to MS Shoes in the Capital. He (Jethmalani) is a dynamic minister and wants his decisions to be implemented quickly but the bureaucracy works within a set framework and system. This is what has led to delays or objections to some of his decisions, on the matter of procedure, Dattatreya said. When a controversy becomes public, it is exploited by the Opposition to embarrass the government even though there may be no credibility in its attack, he said, referring to Janata Party leader Subramanian Swamys accusations. He said he agreed with Jethmalanis views on the controversy regarding the award of general consultancy for the Mass Rapid Transport System (MRTS). The credibility of the Delhi Metro Rail Corporation (DMRC) had come under a cloud over the manner in which the bid was awarded. He added that it was not correct for DMRC to question the authority of the Urban Affairs ministry in making inquiries in this regard. Aggarwal, a 1964 batch officer of the Haryana cadre, is an old hand with the ministry, having joined as Secretary in January last year. Sources said that Jethmalani had been asking for her transfer for quite sometime but his move was resisted by the Prime Ministers Office and Cabinet Secretary Prabhat Kumar. Meanwhile, Jethmalani today defended his decision to remove all important matters from Aggarwals charge. Speaking to The Indian Express he said that he had some suspicions about the goings-on in the ministry and that a re-allocation of work among officials was required to increase coordination and efficiency. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, Sept 1: Investigating authorities today made simultaneous raids in three cities to put an end to what they believe is one of the biggest networks from which illegal international call-back phonecalls are made. According to the Videsh Sanchar Nigam Limited (VSNL) which participated in todays raids, the total value of such illegal call-back services is around Rs 800 crore per annum -- with todays network itself resulting in call-backs of around Rs 250 crore, it is clearly among the largest. According to the raiding parties, from this evening itself, several of the flourishing illegal call-back services would have been disrupted. While there are hundreds of illegal call-back operators in the country -- the VSNL catches them from time to time, but they then change addresses -- all of them have to route their calls through a network, or a carrier. And this is what todays raid busted. Todays raids were jointly conducted by VSNL, the Directorate of Revenue Intelligence, the Enforcement Directorate and the Mahanagar Telephone Nigam Limited (MTNL) in Delhi, Mumbai and Chennai. No arrests have been made so far as the owner of the operations is a US national and is untraceable. The company whos premises were raided and which conducted the call-back services is called Cyberfast Network Systems Corporation (CSNC). Under a call-back service, users from India wishing to make a call to, say the US, call a local number which then connects them to the desired US number, and later bills them at a fraction of what one has to pay the VSNL. The way this is usually done is that a party which has a dedicated line to the US -- this facility is available from VSNL and is itself legal -- misuses this and allows outsiders to dial into this line and, then, connects them to the US. If calls have to be made to say, the UK, the user gets connected to the US, and then from there to the UK. How lucrative this operation is can be judged from the fact that VSNL charges a mere Rs 15 lakh per year for providing a dedicated line, operators who misuse this can make crores. Dedicated lines are taken by several people such as computer companies or simply corporates who make a lot of telephone calls and want a secure and efficient telecommunication network. CSNC, for example, had a 512Kbps dedicated line from New Delhi to California. Todays swoop showed that the three installations were completely unmanned, and had sophisticated equipment worth a few crores each, which actually routed the calls by using the dedicated VSNL line. Each of the installations had high-capacity modems which allowed most repairs/servicing of the network to be done through a telephone line. In all cases, some poorly-paid local help was hired to do some routine work. If, say 15 telephone lines went dead, then a message would be sent to the local help to have them repaired. Interestingly, while VSNL says it has been writing to the DoT about the menace of call back services -- VSNLs international call traffic has been falling by around 5 per cent per year due to diversion to such call-back service providers -- it has taken little concrete action so far. Indeed, while its agreement with users of such dedicated lines allows for a penalty of Rs 4.5 crore for such misuse, it does not ask for any bank guarantee for this amount. Nor has it built in any clause in the agreement which would allow it to monitor such illegal traffic and actually charge for it. Todays swoop in fact, was based on the intelligence efforts of the Central Economic Intelligence Bureau (CEIB) and not the VSNL. What the CEIB did was to get a list all users of dedicated lines from the VSNL, and then match this with the MTNL directory to see how many MTNL phones each one of these companies had. When it found that some of these companies had a huge number of MTNL lines -- CSNC had 70 in Delhi alone -- it asked MTNL to provide billing details. In CSNCs case, in Delhi alone 62 lakh local calls had been made in the last 18 months. Clearly, something was wrong. Several visits to its office in Bhikaji Cama Place in New Delhi showed that there were no visitors to the small one-room office, incidentally always kept locked and guarded. And since there were no people in the office, this clearly couldnt be a small-time call-back service provider -- it was clearly something larger. Telecom experts were consulted, and pointed that this was probably one of the networks through which the call backs larger. Telecom experts were consulted, and pointed that this was probably one. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. ST JOHNS (ANTIGUA), Sept 1: Trinidadian fast bowler Ian Bishop, a stalwart of 43 Tests and 161 wickets, was named captain of a 15-member West Indies A team to tour India in November and December, the West Indies Cricket Board (WICB) announced today. The 30-year-old Bishop, who lost form and his place during Englands tour of the Caribbean earlier this year, is among five players on the team with test experience. Leg-spinner Rawl Lewis, whose one Test cap was on the senior tour of Pakistan last winter, completes the quintet. Right-handed batsmen Richard Smith, Keith Semple and 20-year-old wicket-keeper Wayne Phillip earn their first overseas assignments at this level. Ian Bishop (captain), Richard Smith (Trinidad Tobago) Sherwin Campbell, Floyd Reifer, Adrian Griffith, Courtney Browne, Pedro Collins (all Barbados) Wavel Hinds (Jamaica), Ramnaresh Sarwan, Neil McGarrell, Keith Semple, Reon King (all Guyana) Wayne Phillip, Rawl Lewis (both Windward Islands) and Carl Tuckett (Leeward Islands). vs Board Presidents XI at Mumbai vs BCCI Youth Team at Pune 1st Test at Wankhede Stadium, Mumbai 2nd Test at Chennai One-day practice match at Bangalore 1st ODI at Bangalore 2nd ODI at Hyderabad Dec 15: 3rd ODI at Ahmedabad. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK, SEPT 1: Americas famed economic might staggered from stunning blows that sent its Dow Jones industrial average plummeting by a record 512 points on Monday. More volatility was in the air as the index remained unsteady in the opening hours on Tuesday casting a pall over a nation where more than half the population has a finger in the stock market pie. After an unsteady but unspectacular start on Monday morning, the Dow Jones index began a dipping run in the late afternoon that saw it lose 450 points in two hours, including 250 points in just half an hour before close. Millions of investors found themselves poorer in the evening than at lunch time as the fall cleaned out 6.37 per cent from the index. Many wondered if this was the end of the American economic honeymoon, a journey that had carried the Dow to a record of 9337.97 on July 17 when the manna of the 10,000 mark seemed imminent. Instead, in six weeks of sustained selling since then, the slide has left share prices 19 per cent below their peak, vapourising more than 2.3 trillion in paper profits. In the last three trading sessions alone, the Dow has been shaved of a whopping 1100 points, wiping out allinvestor gains during the current year. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. No one would make the mistake of saying the Vajpayee government is steering the economy in any particular direction. The last six months have been marked by so much policy confusion that only the determinedly blind would find some kind of orientation. The RSS evidently thinks otherwise and has fired a warning shot across the BJPs bows: change course or else. That it means business is obvious from the fact that a number of saffron organisations have formed a steering committee, the Swadeshi Vichar Manch (SVM), passed resolutions, announced a plan of action and told the BJP to watch out when Assembly elections are held in a couple of months in Delhi, Rajasthan, Madhya Pradesh and Mizoram. This spells trouble for policy-makers. The thinking in the SVM may be limited, its goals vague and its alternative prescriptions suspect. The charge of compromising the national interest may disguise a number of other realities such as business rivalries, disgruntled trade unions and gut-level hostility toward anyone whodoes not mouth swadeshi slogans. But who is to take this up with the RSS, now openly associated with the Swadeshi Jagran Manchs Pepsi-bashing notion of economics When the conscience-keeper of the BJP makes public its discontent in this fashion, the fear of a 1980s-style breach will be enough to pull the BJP up short. What are the governments options It could decide that Indian manufactured foreign liquor is swadeshi whereas foreign liquor made by foreigners in India is abhorrent. That would be a relatively small price to pay for peace. But it will not be enough to divert the SVM from key issues on the reform agenda. It is hard to see how the cabinet, at no time oversupplied with pragmatists, is going to be able to prise the insurance sector open. The norms for foreign entry are already scarred by intra-BJP battles. With the RSS throwing its weight on the side of the nay-sayers, the ministerial committee might well find the issue more or less dead on the table. The more is the pity because insurance reform did appear to be creeping forward inch by inch despite the efforts of hardliners. It could be counted as progress if economic policy-makers were taking two steps forward and one step backwards. Este não é o caso. Torn in diametrically opposite directions, they are going nowhere. Any radical thrusts from the finance or commerce ministries, or the Disinvestment Commission, are neutralised by retrogressive political pressures. Citing the national interest is no substitute for rigorous economic analysis. The swadeshi corps do not offer facts and sound arguments, they prefer to look for foreigners or quasi-foreigners under every bed. The complaints about the composition of the Prime Ministers economic and business advisory councils are a giveaway. Perhaps there are no names on either council that the SVM can identify with. So the feeling may be that the Sangh Parivar has been left out in the cold. Vajpayee could do two things. One, point out that there are many more points of view in India than the Parivar contains. Two, improve communications between the BJP and the RSS and make thelatter see reason. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. There may never be a dull moment in Russia, but the situation there is clearly now reaching a crescendo. For starters, as if symbolism was in short supply, is the spectacle of Bill Clinton and Boris Yeltsin the two emasculated leaders of the worlds one present and one erstwhile superpower meeting to set Russias colossal disaster to rights. It sums up, sadly but succinctly, how powerless either man is to halt Russias nightmare and how each got himself into this mess with all the goodwill in the world. Boris Yeltsin today must be painfully conscious of chickens coming home to roost. As many difficulties as he faced in his dealings with Russias notoriously recalcitrant parliament, Yeltsin has hardly done all he could to win its support. Monday gave the Duma its sweet revenge on a dictatorial president for the humiliation he heaped upon it only months ago by forcing it to rubber stamp his choice for prime minister: Sergei Kiriyenko, who later surprised his critics by his reformist conduct. At that time theDuma, which can reject the Presidents nomination for Prime Minister three times, was still intimidated by Yeltsins power to dissolve it and call elections. The reason was simple. The President was more popular than the parliamentarians. The tables have since been spectacularly turned. Any threat of dissolving the Duma now must ring singularly hollow from a President who needs to be thankful for every day he spends in the Kremlin. Yet it would be unfair to the Duma to say that it is motivated entirely by vengeance. Chernomyrdin is hardly the man to lead Russia out of a crisis which was partly of his making. Yeltsin appointing him as acting Prime Minister was a shamefully self-serving act, and the Duma is right to reject it. Somehow it no longer seems realistic to expect Yeltsin to do any single thing right, and he is giving evidence by pressing Chernomyrdins nomination a second time. The only wise course for him now is to accept the Dumas own suggestions for Prime Minister. For, even as Russias politics falls apart alongside its economy, he should be trying to get the Duma behind him rather than opposite him. It could come to that, but meanwhile precious time is being squandered in a country which has no time to waste. The West is desperately continuing to pin its hopes on Yeltsin, for it has no one else to pin them on. Witness Clintons failure to call off his visit in spite of fears of comparison with Yeltsin, for that would only further damage Yeltsin. Yet Clinton is wrong. It is time the West realised that Yeltsin is no longer the man to push forward its agenda. It behoves it to stand aside and leave Russian politics to play itself out as it will. Of course there are huge risks in that for America and its allies, but they needed to have thought about that when they failed to give Russia unstinted support in its early days of reform. Yeltsins replacement will more likely than not have communist or nationalist antecedents which so threaten the West. But it is helpless now. Russia will not even see a serious attempt to address its predicament till Yeltsin is gone. A firm leadership tackling Moscows multifarious crises is in the worlds interest as well as Russias. It should not try to prop a President who has outlivedhis utility. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. US missile strikes on Khartoum and terrorist sites in and around Jalalabad have been seen as a new phenomenon in the international situation. There is cognition about their legitimacy and implications. Yet this operation was not unprecedented. The US has taken unilateral punitive military action in foreign territories as retaliation or a pre-emptive measure. Recent examples are Lebanon, Libya, Grenada, Panama and Haiti. The most large-scale action was in Iraq, though undertaken under Security Council resolutions. The military build-up to compel Iraq to accept continuous UN inspection of its military facilities in February was also in essence a unilateral US action. Memories are short, but India has been a target of such action. Nixon sent the aircraft carrier Enterprise to the region in 1971 to press India to stop its military operations against Pakistani forces in East Pakistan. Britain, France, Israel and Russia have also undertaken such intervention. The only difference between the latest US strikes and the other examples is that the latter were reactions to political events or crises, whereas the US has now retaliated against what it identified as terrorist groups led by Osama bin Laden. Americas allies and a number of South American, African and Asian countries have welcomed the decisive action against international terrorism. The majority of Muslim countries and many developing and non-aligned countries have criticised it as a violation of international law and interference in sovereign states. A third reaction is that the US should have ensured legitimacy for the strikes from the Security Council. This was articulated in Boris Yeltsins outrage at not being consulted. Indias reactions have been mixed. According to information available so far, about 70 Tomahawk missiles were fired from the Arabian Sea and the Red Sea, traversing 1000 to 1500 miles in each case. These missiles overflew the coastal waters and air space of countries other than those which were targeted. The governments of the targeted areas were given no advance information. Nor were the countries whose coastal seas and air space were involved. The only exception was perhaps the visit of the Vice-Chairman of the US Joint Chief of Staff General Ralston to Pakistan to clarify that the missiles overflying their territory were not fired by India but were missiles from a friendly US aimed at specific targets. Reports state that while the missiles fired on the Khartoum chemical factory achieved pre-designated damage, those fired into Afghanistan destroyed more than the specific target, one or two even falling inside Pakistani territory and causing civilian casualties. The US says it targeted a group which hadcarried out anti-US terrorist activities which bombed the American embassies in Tanzania and Kenya which is likely to undertake further violent activities against US personnel and establishments and that the US could take such action under the provisions of article 51 of the UN Charter. The first three reasons given are factual predications rooted in the judgment of the US government. The provisions of Article 51 are worth recalling: Nothing in the present (UN) charter shall impair the inherent right of individual or collective self-defence if an armed attack occurs against a member of the United Nations, until the Security Council has taken measures necessary to maintain international peace and security. Measures taken by members in the exercise of this right of self-defence shall be immediately reported to the Security Council and shall not in any way affect the authority and responsibility of the Security Council under the present Charter to take at any time such action as it deems necessary in order to maintain or restore international peace and security. The US has not formally mentioned article 51 as the umbrella for its action. It has just implied that this is justification. But can the terrorist bombing of American embassies in third countries be perceived as an armed attack onUS territory Nor has the US so far formally reported its action to the Security Council. In fact it has precluded, by implication, the necessity of the Security Council taking further action by categorically stating that the US will carry out further unilateral strikes against its terrorist enemies if necessary. The US may participate in Security Council proceedings on the complaint lodged by Sudan in the Council. The political reality is that the UN has been given the go-by. In terms of normative requirements, Americas actions can be considered illegal. It has violated the territorial jurisdiction of a number of countries. From one point of view it creates a dangerous and destabilising precedent. It is that if a state is powerful and immune from retaliatory action, it can indulge in unilateral and coercive military operations against other countries or sections of their people at will. Israel perhaps is the only other country which has undertaken similar anti-terrorist action, but it has never launched large-scale missile attacks on other countries. Most of its operations have been commando operations. If the US considers a military or security posture of a country like India a threat to its security or to its stipulations on peace and stability in our region, it would feel free to undertake long-distance military strikes against Indian targets. Even if this is far-fetched, the fact remains that Tomahawk missiles cancarry nuclear warheads. How does the international community cope with such a prospect The Security Council and the General Assembly in its sessions between September and December should focus on this. Indian reactions have been mixed. Atal Behari Vajpayee, without commenting directly, has stated that the American action provides the basis for unified efforts by the international community against terrorism. This presumably is the government reaction: unified support for the US action. Americas action will certainly make it difficult for it to lecture us if we decided to take pre-emptive action against terrorist headquarters in Pakistan-occupied Kashmir. But George Fernandes has roundly criticised the Americans. So has the Communist Party, and Pranab Mukherjee of the Congress. Pakistan faces a contradictory predicament. If it supports the US, it risks strong domestic opposition and trouble from the Taliban and militant Afghan elements. If it opposes it, American pressure will debilitate it. It is also potentially vulnerable to India considering retaliatory strikes in PoK. Indias primary stance should be to utilise this precedent for its security interests while remaining committed to broad stipulations ofinternational law. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. The Supreme Court has become an arena of intra-judicial warfare on the issue of appointments. One bench of the court is handling the issue of whether a direction (writ of mandamus) should be issued to the Union Government to make the appointments to the high courts and the apex court of the persons recommended by Chief Justice of India, M. M. Punchhi. Another nine-judge bench is handling the reference made by the BJP-led government through the President for clarifying its doubts about the interpretation of the apex courts own judgment, Supreme Court Advocates on Record vs Union of India, about judicial appointments. The net result for the moment is that silently and implicitly the government has asserted its right to veto the recommendations of the Chief Justice of India. With the Attorney General himself presenting the reference to the apex court, the primacy given to the judiciary over the ruling politicians by the Supreme Court Advocates on Record judgment stands erased as of now. This is more so after the August 25 order of the nine-judge reference bench directing the Union Government to submit to it the written consultations held between Chief Justice Punchhi and his two senior colleagues Justices G. N. Ray and S. C. Agrawal for making the Supreme Court appointments and also with the various chief justices of high courts for filling in the high court vacancies. The order ends the shadow boxing over a reference that made no mention about the recommendations of Chief Justice Punchhi by linking the reference to the record of such recommendations. For the first time the apex court has indicated that it will get to the bottom of a Presidential Ref-erence by going beyond and even behind it. Hence in sum and substance the nine-judge bench has positioned itself to judicially review the acts of a Chief Justice of India and his two senior most colleagues at the time of making the recommendations. This is to be done by applying the standards laid down in the Supreme Court Advocates on Recordcase. If this is not to be done then there is little logic in calling for the confidential records of the recommendations made by Chief Justice Punchhi. But the irony is that the views of the nine-judge bench in the Reference are themselves recommendatory. It is upto the same ruling politicians who made the Reference to accept wholly or in part the views of the nine-judge bench finally expressed in the Reference. And if a different political party comes to power by the time the nine-judge bench answers the Reference then the fate of the answers really hangs in the political balance. Hence from the making of the Reference to its end the political encirclement of the judiciary is complete. This encirclement remains even if the nine-judge Reference bench ultimately reiterates the Supreme Court Adv-ocates on Record Association judgment to ensure judicial primacy through the Chief Justice of India and two of his senior most colleagues. This is so because henceforth any set of ruling politicians can through the Attorney General appointed by them freeze a Chief Justice of Indias recommendations for judicial appointments by simply making a reference without mentioning the recommendations. This innovative use of the constitutional provisions for a Presidential Reference is now a permanent weapon in the hands of ruling politicians to play with the Supreme Court. The linking of Chief Justice Punchhis recommendations with the Reference strikes at the ruling in the Supreme Court Advocates on Record case that such recommendations cannot be made part of a litigative debate through petitions challenging the appointments or the recommendations, except on the ground of absence of the written consultation between the chief justice of India, his two senior most colleagues and the high court Chief Justice. Without a stay order from the apex court and without mentioning Chief Justice Punchhis recommendations in the Reference, the appointments stand stayed simply because the ruling politicians will neither openly challenge them by a regular petition nor issue warrants of appointments on those recommendations. Little enlightenment can be expected from the politically appointed Advocates General of each state government to whom notices have been issued. There is today no equivalent of the late H. M. Seervai who could fearlessly address the judges with the sharpness derived fromintellectual integrity. The apex court can break this impasse by two steps. One, by realising that it is secrecy and lack of accountability of the Chief Justice of India in making appointments that has given rise to the problem. The documents of written consultation by the Chief Justice of India are kept secret from the public but are known to the ruling politicians who can then play with that information as it suits their political design. The political lawyer with a foot in the judicial door can make selective leaks. The moral test now is whether such documents are made public by the Reference bench. The second step is to realise that a national judiciary that determines the life of Indians is being fashioned not for judges and lawyers alone. That calls for participation of NGOs and professional associations other than participation of NGOS and professional associations. Only then will the Reference bench hear the relevant national vocabulary and idiom. The strength of the court lies in its association with the honest, educatedcitizenry. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. DORADO (Puerto Rico), Aug 31: The global tourism market is unlikely to recover until 2000 from the combined effects of the Asian economic crisis, the collapse of the Russian rouble, the stock market slump and new concerns about US-targeted terrorism, according to a leading tourism group. The worlds major tourism-generating markets are under new pressures, president Geoffrey Lipman of the London-based World Travel Tourism Council, told a business forum. The travel group had originally forecast industry growth averaging 7 per cent a year through 2008. But the Asian economic slump began to take the steam out of the travel market in mid-1997, and the group now expects the market to remain flat through 1999. In the short term, I dont think well see any growth on global terms. There arent very many positive signs out there, Lipman said late on Saturday ahead of Sundays opening of the US Southern Governors Associations three-day meeting with Central American presidents in Dorado, PuertoRico. At mid-year (1997) we saw a marginal downward shift in virtually every indicator and based on recent events, I expect well push recovery out to the beginning of the millennium, he said. It will be the third quarter of 1998 before industry experts can gauge the full impact of the downturn in the Japanese economy, which continued to drive Asia even after the collapse of the Thai, Indonesian and other currencies, Lipman said. The Asian collapse comes as Europe continues to struggle with high unemployment and nervous companies around the world limit corporate travel spending amid fears that last weeks stock market sell-off could signal the onset of recession. Fallout from the plunging rouble could drag down all of Eastern Europe, while Americans skittish over the embassy bombings in Africa early this month may become leery of international travel, he said. Not all the forecasts were gloomy, however. The regional markets within themselves will still keep some buoyancy, hepredicted. Despite the travel groups pessimism in the near term, it views the current problems as a downward blip in an industry whose economic importance has tripled in the last three decades and is still rising, Lipman said. The World Travel Tourism Council estimates that the economic impact of travel and tourism at 11 per cent of GDP on a global basis and expects that to rise to 12.5 per cent over the next decade. We still predict that travel and tourism will grow at twice the rate of GDP, will double in economic impact by 2010 and drive 100 million new jobs directly and indirectly across the world economy, Lipman said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Singapore, Aug 31: Singapore will launch a unique, smart card-based toll system on Tuesday in its latest effort to prevent the traffic jams that choke other Southeast Asian cities. Months of testing in every kind of tropical weather preceded the launch of the worlds first Electronic Road Pricing (ERP) system, at a cost of Singapore 200 million (US112 million). The use of cars is discouraged in the tiny island state, where traffic jams would rapidly overwhelm the public facilities, and Singapore uses a system of tolls and permits to control the number of cars in its streets. ERP eliminates the need for motorists to buy a monthly pass to enter the central business district or cruise main highways. Instead, vehicles are fitted with a smart card installed in a device on the dashboard. Electronic devices, mounted on gantries above the road, deduct the appropriate charge as the cars pass under them. The old pass cost the ordinary motorist S60 a month or S2 to S3 a day, depending on the destination andtiming of the journey. Motorists with no passes faced fines of up to S70. The new system will cost between 10 Singapore cents and S3 each time an ordinary car enters the business district or moves onto a highway. A consortium led by Philips Singapore, a unit of Philips Electronics NV, built the new system to the governments specification, with an accuracy of one error in 100,000 transactions. It went into action on two main highways early this month. There have been no reports of problems on those roads, but the government had to apologise last week after 1,500 motorists were charged when workers carrying out an overnight test forgot to switch off a gantry. For motorists, theres no escape from the ERP. Each gantry can read the unique number of every wind screen unit, thusidentifying car and owner, and whether it has a card in it or not. A missing card means a fine of up to S70. The ERP seems likely to be accepted a lot more easily than the old system introduced in 1975. But there is some grumbling, nevertheless. One taxi driver pointed to the list of rates varying from 15 Singapore cents to S1, Which the ERP will charge depending on destination and time of day. Whos going to be able to remember all that Still, well be passing the charge on to the passenger, so I suppose it doesnt matter much, he said. Singaporeans have got used to the idea that owning a car is expensive. Besides paying for a car, they must also pay for the licence to own and use it, known as a certificate of entitlement (COE). COEs, meant to limit the number of new cars on the roads were introduced in 1990. The government sells only a limited number at auction every month. Car dealers or potential owners bid for them, with rates varying from S20,000 to S40,000, Depending on engine size. Each is valid for ten years, after which it must be renewed or the car replaced. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. PRAGUE, Aug 31: Since the fall of communism in the Eastern Europe in 1989, millions of tourists have discovered the myriad architectural and cultural gems of the Czech capital Prague. But with the number of visitors slipping and valuable tourism revenues down, signs are growing that the city of Habsburg emperors, Franz Kafka and -- for a time -- Wolfgang Amadeus Mozart is losing its allure. Figures from the Czech statistical office (CSU) show that nominal revenues from tourism dropped by 10.5 per cent to 3.65 billion crowns (108.7 million) in 1997 from 4.08 billion in 1996. Inflation for the year was at 10 per cent, making the figures even more disappointing. First quarter figures for 1998 are only mildly encouraging, up only 0.26 per cent over last year at 655.4 million crowns, but up 12 per cent over the 1996 figure, with inflation up to 13 per cent during the period this year. Faced with the fall in revenues, which make up roughly six per cent of national income, the new Social Democratgovernment, which took office in July, has said it will draw up a comprehensive package of measures to develop tourism as a prime source of budget revenue. The government pledges to create a new legislative framework, economic instruments and an interdepartmental approach. So far, it has revealed no details. Preliminary CSU numbers show that 48.2 million foreigners crossed the border in the first half of 1998 -- a drop of 2.3 per cent over last year. The diminishing figures can be blamed partly on last summers floods and a mild winter which left ski areas gasping for business, tourism officials said. But even Prague, which attracts more than 60 per cent of the countrys tourist traffic, is feeling the pinch because of rising prices and a fall-off in the citys novelty value. Growth is not possible ad infinitum, we cannot expect much more of an increase. said Prague Information Service director Vaclav Novotny. A day in Prague costs 75 per cent of a day in Vienna. There is a price difference, butit is not so remarkable. But many in the business say the problem is more than a question of money. Prague has picked up an unenviable reputation for pickpockets on the metro, rampant car theft, and a growing drug scene. President Vaclav Havel alluded to the problem in a radio address a year ago, contrasting the Czech Republics reputation for political stability and economic reform successes with the fact that it was also known as a place where landlords and taxi drivers ripped off tourists. Prague taxis have become notorious for overcharging. After a year of deregulation, the city council reimposed rules, including a maximum fare per kilometre. We are still receiving countless complaints about bad service and overcharging in restaurants, said head of marketing and research Daniel Mourek at the Czech Tourism Authority. The tradition of offering quality services to tourists disappeared under communism and today we are trying to create something that we have had no experience with for 40years, he explained. Part of the problem is that, in the liberal atmosphere of the past eight years, the former strict national standards for hotels and restaurants were liberalised as well. Essentially, today any hotel or restaurant owner can put himself into any category he wants, and there is no one to tell him not to, said Novotny. Director of tourism at the regional development ministry Miroslava Pavlikova said the ministry was trying to solve the problem with a better rating system. We are trying to convince everyone to accept one system of categorisation which would make it easier for travel bureaux and clients to orient themselves, she said, adding that hotel owners support the effort. The ministry is also concerned at the double standard of pricing for Czechs and foreigners which many hotels still use. If two customers are charged differently (in hotels) because one is Czech and the other is foreigner, then presumably that is not right, Pavlikova said. Despite the vitalinjection of their cash, the droves of tourists who choke the historic squares and bridges throughout the year are not universally welcomed. Ten years ago Prague was a dead town, Pavlikova said. Suddenly you have this deluge of tourists clogging the streets -- it is not going to have a very positive effect on peoples attitudes. A majority of visitors to the Czech Republic come to Prague and go no further. Officials say the country has a potential for tourism which is simply not being realised. The Czech Republic has 2,000 castles and chateaux, 40 historic town centres (architecturally protected medieval zones) and six cities or structures listed by UNESCO, which puts it on a par with France and Italy, she said. However, industry insiders say attracting tourists was a low priority for the previous Czech government, which spent much less on marketing than its East European counterparts. In 1995, it appropriated about 3 million for the Czech Tourism Authority, compared to Hungarys 9.3million and Polands 10.5 million. At 107 million crowns, the 1998 budget is only slightly higher. This number is absolutely inadequate if you compare it to other organisations of this type abroad, Pavlikova said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Vizag unit to take control of utilities . Vizag AG said on Monday that its Bayernwerk AG power utility had reached an agreement to take over managerial control of three regional utilities in which it already holds stakes. Bayernwerk planned to take over Contigas Deutsche EnergieAG, OBAG AG and EVO Energieversorgung Oberfranken AG, and has agreed on control and profit-transfer contracts as well as cash payments to the outstanding shareholders of each of the three firms, Vizag said in a statement. Bank Plus investor urges sale . Bank Plus Corp investor LaSalle Financial Partners said the company should seek a buyer, said an article in the August 31 issue of Barrons. LaSalle, which owns 1.4 million shares or 7.3 per cent of Bank Plus, said it will oppose any moves by the company to acquire mortgage banking or loan-origination companies. LaSalles urging mirrors sentiments recently expressed by another investor, Jeffrey Gendell, who owns 9.9 per cent of the company. BT plans South Koreanmove . British Telecom Plc is preparing to invest some 300 million pounds (496 million) in a 20-per cent stake in South Korean cellular phone company LG Telecom, according to a report in the Independent newspaper. The paper said the move would be a significant step into South east Asian telecom markets for BT, which was seeking approval from the South Korean information and communications ministry for the bid. It said a deal could be struck by October. A spokesman for BT declined comment, saying the report was no more than a speculative story. Audi sees 600,000 car sales in 98 . Volkswagen AGs luxury car subsidiary Audi said it expects profit on sales to rise in 1998 and forecast 1998 group sales would climb to 600,000 vehicles from 546,436 in 1997. Audi also said it expected its profit to rise at least in line with sales this year. The company also expects its market share in Germany to climb to around seven per cent after netting 6.4 per cent of domestic market share in the first half of theyear, chairman Franz-Josef Paefgen said at an Audi TT-Coupe presentation. IMF has funds for other bailouts . With financial turmoil spreading fast, the International Monetary Fund (IMF) has toned down months of warnings it could be crippled by a cash shortage, hoping to soothe markets but risking a congressional rebuff as it seeks new US funding. IMF managing director Michel Camdessus told a news conference on Friday that the lending agency could arrange new loan packages to bail out countries in crisis despite past warnings to Congress that its cash reserves might be too low. Much has been said about the remaining usable resources of the IMF AND the IMFs response to future requests for assistance, Camdessus said. Assurances that the IMF could arrange new bailouts may comfort panic-stricken markets and countries affected by the crises in Russia and Asia, but they could also give ammunition to the IMFs congressional critics. Duma to vote on Russian PM . The state Duma, Russias lowerhouse of parliament, starts voting procedures on Monday on whether to endorse president Boris Yeltsins nominee for prime minister, Viktor Chernomyrdin. If the house votes in favour, Chernomyrdin (60), will be automatically installed in office and Yeltsin, after consulting the new premier, can formally appoint government ministers. The Kremlin offered at the weekend to give the prime minister and parliament much more say in the appointment of ministers, but this is yet to be confirmed and was conditional on Duma approving Chernomyrdin. If Duma votes against, in this first hearing, Yeltsin can nominate Chernomyrdin--or another canditate-- twice more. If Duma rejects the three nominations, the constitution demands that Yeltsin dissolve the Duma, appoint a prime minister and call a new parliamentary election. Godrej Soaps ropes in McKinsey Co Godrej Soaps has roped in international consultants McKinsey Co and Arthur Andersen to advise on strategic steps for its subsidiary Godrej Agrovet, in whichit holds 57 per cent. While McKinsey will advise Godrej Agrovet on making its poultry business more profitable, Arthur Andersen will give recommendations on cost reduction and business management. ITDC to speed up divestment process: The government-owned ITDC Hotels, in a bid to speed up its disinvestment-cum-restructuring process, has asked its corporate advisor SBI Caps to scout around for a global advisor. Around eight firms, including AF Ferguson and Citibank, have been short-listed to make a presentation to an inter-ministerial task force on September 8 in the capital. New Delhi, Namibia ink strategic pacts: India and Namibia on Monday signed four umbrella agreements to boost bilateral trade co-operation. The agreements, among other things, cover technology co-operation and agricultural research. Over time, the pacts, will help increase the level of Indo-Namibian trade, which is only Rs 6 crore both ways at present. RBI cuts its forward-contract liabilities: The ReserveBank of India has reduced its forward-contract liabilities by 515 million in the last 10 days of August following the inflow of Resurgent India Bonds proceeds. The reduction in the liabilites will continue to exert pressure on the forward rates, dealers said. The central banks decision to reduce its forward contracts will immensely benefit exporters, they added. Chemists to go on indefinite strike: The Maharashtra State Chemists Druggists Association has decided to go on an indefinite strike from Monday midnight to demand abolition of the octroi duty imposed by the Brihanmumbai Municipal Corporation (BMC). The All India Organisation of Chemists Druggists president Dilip Mehta said the BMC has imposed a 2 per cent octroi on medicines, which will push up their costs and hit the industrys growth. Enron plans to float two new subsidiaries: Enron International plans to float two new fully owned subsidiaries for financial-risk management business in the oil, gas and power sectors andfor renovation and modernisation of the countrys power plants. While plans for setting up the renovation and modernisation subsidiary will be finalised soon, the risk-management arm will take some more time. SAP AG to set up subsidiary: German software major SAP AG is setting up a subsidiary SAP Laboratories India, its second in the country. The subsidiary will undertake development activities for its core products future releases. SAP AG is the world leader in enterprise resource planning packages. A senior official said SAP AG would invest DM 10 million in the subsidiary over the next three years, which would be invested in infrastructure and manpower. UTI faces redemptions: Unit Trust of India has faced repurchases and redemptions worth Rs 2,000 crore in the first two months of its current financial year. In contrast, it has mobilised about Rs 5,000 crore during this period. The mobilisation from US-64 has fallen to Rs 200 crore in August, against Rs 3,100 crore in July, during thespecial offer price of Rs 14. SBI to recast seven associate banks: State Bank of India (SBI) will restructure its seven associate banks, which were kept out of the ambit of global consultancy firm McKinsey Cos, recast strategy for the bank. Deputy managing director and head of associate banks SN Sawaikar said a consultant will be appointed for the purpose. SBI is weighing the pros and cons of merging the associate banks with itself to add to its balance-sheet strength, or merge them to create another big entity. Patel, Piramal re-elected on SBI board IG Patel and Ajay G Piramal were re-elected on the 19-member State Bank board on Monday. Patel and Piramal have had a two-year term on the board representing shareholders. They were elected under section 19(c) of the SBI Act. Two other directors representing shareholders on the board include S Ramani and Shashikant B Garware. Bupa to conduct study for IFC: The International Finance Corporation (IFC) has appointed Bupa, aleading health-insurance company in the UK, to conduct a study on priavte health - insurance opportunities in the country. IFC is conducting evaluating future opportunities in the private medical insurance sector. Service chiefs retirement age raised The government has raised the retirement age of the three service chiefs to 62 years from the present 60. The tenure of appointment, however, will continue to be three years. Earlier, the centre raised the retirement age of civilian employees by two years, acting on the fifth pay commissions recommendations. Manch flays Vajpayee over councils: The Swadeshi Jagaran Manch has flayed prime minister Vajpayee for constituting the economic and trade advisory councils. Charging the government with staffing these councils with persons hostile to the idea of swadeshi, the Manch has also expressed concern over the recent top-level changes in the bureaucracy. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK, Aug 31: Global rating agency Moodys today lowered ratings of China International Trust and Investment Corp and six other government-run funding bodies, affecting about 3.4 billion in debt securities. The action was prompted by the continuing decline of the financial fundamentals of these government corporations and their worsening operating environments, Moodys said. It also reflects the increasing pressures on the financial resources of the firms government owners and their weakened ability to support them, the agency said. Severe problems of the state-owned enterprises in China and the slowing national and regional economies, affected by the prevailing Asian crisis have led to a sharp deterioration their investment and loan quality, the rating agency said. As a result, many of these corporations are facing severe difficulties in garnering repayments from borrowers and this in turn is affecting their disbursals. Moreover, they have significant foreign borrowings which constitute between20-75 per cent of their total funding, the agency said while pointing out that such heavy reliance made the corporations vulnerable to exchange rate fluctuations and global investor confidence. Besides China International, Moodys has also downgraded trust and investment corporations of Fujian, Guangdong, Shandong, Shanghai, Shenzhen and Tianjin. The rating agency said outlook for this sector remains negative, reflecting concerns over a possible deterioration in financial strength and conditions in China. Consolidation of the sector, now underway, could also involve the larger corporations taking over smaller ones, usually deeply impaired ones, thus undermining their financial position, Moodys said. The agency said though the funding corporations continue to be supported by their respective government owners, the strength of such support has weakened with increasingly difficult conditions in China. This has led to a slowdown in the governmental fiscal revenue growth and a sharp rise in fiscalexpenditures that are needed to boost the slowing economy and to ease rising unemployment. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. SINGAPORE, Aug 31: Russias financial crisis and recent torrential rains will be the main factors in Southeast Asias rubber market this week, regional traders said on Monday. Some traders said the market would receive more blows from the Russian crisis, which has brought down world commodities prices. But some saw a slightly firm tone for the market over recent torrential rains, which may reduce rubber output. Weather experts have said that La Nina, a weather phenomenon which followed the El Nino episode that seared much of Asia with drought last year, has arrived in Asia and will cause heavy rainfall for much of the rest of 1998. If the rains continue, rubber output will be affected. We have to see the rain situation, especially in Thailand, in coming weeks, said one Singapore-based trader. This is probably the only bullish news for the market, the trader said. But he saw limited help if there was an output reduction as there were still no signs of a recovery in demand. Traders in Thailand, theworlds biggest rubber producer and exporter, said the uncertainty of the Japanese yen and Russias financial woes were the main concerns. I think the price will hang on the currency exchange of the baht and yen, said one trader from one major trading house in Thailands southern Hat Yai. There was talk that the International Natural Rubber Organisation (INRO) was running out of funds and started to offer RSS3 rubber, said one trader from Trang province. INRO, which groups major producers and consumers, bought about 20,000 tonnes of rubber from Malaysia, Indonesia and Thailand earlier this month in its first buying intervention since December 1993. The market-stabilising buying by INRO failed to lift saggy rubber prices. However, according to an INRO document obtained by Reuters in Bangkok, INRO also sought to offer various grades of September/October shipment earlier this month. In Malaysia, traders expected prices to move narrowly this week, but they said the near-term trend could be firm onexpectations of a supply shortfall due to the approaching rains. A trader at a Malaysian plantation firm said weather was the main factor for the market and he expected prices to move in tight ranges on a lack of inquiries. The market is closely watching weather conditions rather than anything else, the trader said. Rainfalls are seen in the morning as well as in the afternoon. This could hit output and supply would get tighter and tighter from August onwards, he said. Consumers from both Europe and Asia stayed on the sidelines despite low prices due to a slump in the car industry and Russias crisis further dampening sentiment, traders said. Malaysian traders said they did not expect much impact from currencies movement on the market which already lacked liquidity. Trade in Indonesia, the other main Asian rubber producer, was also bearish. The market has acknowledged that INRO will not enter the market again, but frankly speaking I dont think INRO is capable of stabilising prices due to a lackof funds, said one Jakarta-based trader. He said the market was extremely quiet last week and was not expected to improve. At the end of last week, Thai RSS3 rubber for December delivery was quoted at around 64 US cents a kg. January 1999 shipment was quoted at 65.50 cents. Malaysias benchmark, September International Ones RSS buyer ended at 263 Malaysian cents (62.6 US cents) a kg and September SMR 20 buyer was at 236.50. Prices for October shipment were quoted at 25.00 US cents/lb fob Medan, Surabaya and Palembang. In Padang, the price was quoted at 25.00 and in Pontianak and Padang at 24.75. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. AMSTERDAM, Aug 31: Dutch postal and courier group TNT Post Group reported an 18 per cent rise in first-half 1998 net profit on Monday and said second-half results would be in line with the first six months. TNT, which split from Dutch telecommunications firm Koninklijke PTT Nederland in June, saw net profit grow to 365 million guilders in the first half, up from 310 million in the same period last year. The results fell within expectations of analysts polled by Reuters, who had forecast profits of 328-402 million guilders. Assuming present exchange rates, the board of management further expects for the remainder of the year that net income will develop in line with the first six months of 1998, the firm said. TNT revenues increased by eight per cent to 7.95 billion guilders and operating profit climbed nine per cent to 685 million. The logistics division showed the strongest growth, with revenue up 20.9 per cent to 1.1 billion guilders and earnings from operations jumping 20 per cent to 72million. TNT said it had signed a five-year contract with Fiat to provide inbound logistics for manufacturing in northern Italy and also signed new contracts with the auto maker in Brazil and Poland. The combination of these new contracts with the existing outbound logistics contracts will provide one of the biggest automotive logistics service offerings in the world, TNT said. In the Express division, solid growth in Europe was offset by the Asian currency crisis and a restructuring programme in the United States. Express revenues rose by 6.3 per cent to 3.19 billion guilders and earnings from operations increased 12.7 per cent to 142 million guilders. In Asia, the business grew nearly 10 per cent, but this could not compensate for the negative foreign exchange effect of 14 per cent due to the Asian currency crisis, TNT said. The mail division was responsible for a 6.7 per cent hike in revenues to 3.8 billion guilders, due to higher volumes in business and direct mail. Earnings from operationswere up 7.9 per cent to 809 million guilders. TNT said it used cash received from the demerger with KPN to pay off 2.1 billion guilders of debt, consisting of a 1.7 billion revolving credit facility and a high interest Swiss bond loan for 400 million. TNT is listed in Amsterdam, New York, London and Frankfurt. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. FRANKFURT, Aug 31: Leading German corporations have in recent months staged strategic takeovers and alliances, positioning themselves powerfully as the new millennium nears. Even if concrete deals have not been signed and sealed, zealous market talk has buzzed around numerous German companies on the belief that such transactions wait in the wings. Deals worth billions of marks have been forged by the countrys renowned car companies. Not only have they snapped up illustrious foreign brandnames, like Lambourghini and Rolls-Royce, but have bridged the Atlantic in the biggest industrial merger ever. More recently, Germanys prosperous financial sector is the centre of merger and acquisition talk and it is seen poised to swoop on some of Americas largest and most venerable banks. Analysts say the rapidly expanding global economy demands that German companies be international to compete successfully. Organic expansion is time-consuming and so they are looking at acquisitions, Olaf Conrad, analyst atMorgan Stanley, told Reuters. He was commenting on rumours, surfacing this month, that Germanys two biggest commercial banks, Dresdner Bank and Deutsche Bank were eyeing US purchases. German cars in Europe Since World War Two Germany has expanded into one of the worlds strongest economies with some of the most prosperous blue-chip companies. One of the most ironic success stories is Volkswagen AG. Founded in 1938 with Hitlers strong support to build a peoples car, it is now Europes biggest car maker. Owning brands across the continent, VWs expansionist policy came to the fore earlier this year when it and rival BMW AG battled for British limousine maker Rolls-Royce Motor Cars, both hell-bent on entering the luxury car market. While VW won the Rolls company, last month it lost the Rolls-Royce name rights to BMW, owner of Britains Rover Group, and was left with the limousine factory and sister brand Bentley. Not a bad name to slot into its stable that has also added the high-calibre Italiansportscar brand Lamborghini to existing labels like Spains Seat and the Czech Republics Skoda. Anglo-Saxons aim to please shareholders. Analysts said that the booming German car industry enabled the companies to look for faster ways of growing and making themselves more attractive by aiming for economies of scale. Anyone that goes into the motor industry knows that economies of scale are important. There is no doubt of the logic behind it. It certainly makes more sense to share one engine between two companies and cut expenses, said Jonathan Storey, analyst at European Auto Research. Shareholder value is always very good from an Anglo-Saxon point of view. The Germans have certainly hit a very successful patch. They have seen the benefits won by the large Japanese and US companies and they want them too, he added. Nor is it all quiet yet. VW merger and alliance rumours repeatedly surround Swedens Volvo and truck maker Scania and Frances Renault, despite the companies denying or decliningcomment. Analysts said it was very likely BMW and VW would soon turn to the East and the United States, following in the footsteps of Germanys biggest industrial group Daimler-Benz, and seek out joint ventures or mergers there. Merger, takeover talk centred on banks This month merger fever gripped German banks, suggesting that Deutsche Bank, with assets at the end of last year totalling 1,217 billion marks (681 billion) and smaller cousin Dresdner were poised to cross the Atlantic. Media reports said Deutsche was in preliminary talks with investment bank J. P.Morgan and Dresdner, with assets in mid-1997 of 350 billion marks, was in talks to buy the PaineWebber group, the fourth-largest US brokerage. Both banks declined to comment. The rumours drove the banks share price higher, indicating investors appreciation of the possibility. We all know that German banks are lacking a credible presence on Wall Street and we are arguing it is crucial to have a strong presence in US bankingin order to have global scope and scale, said Morgan Stanleys Conrad. German banks began significantly expanding existing operations overseas about 10 years ago as client bases grew but analysts say organic growth in a very competitive market is frustrating and the bigger banks are targeting purchases. The Asian financial crisis, while forcing banks to set aside billions in risk provisions this year, opened up numerous acquisition bargains and Commerzbank last month acquired 32.39 per cent of the Korea Exchange Bank. German insurance groups are also looking to grow by acquisition with giant Allianz AG saying recently that it was seeking a substantial acquisition in Asia. Moving East and West Staging the worlds biggest industrial merger ever, Daimler-Benz, maker of upmarket sedan Mercedes-Benz, announced last May it was merging with Americas Chrysler Corp in a deal worth 42 billion. Merger or takeover The terms of this, the biggest industrial merger ever, gives the German groupsshareholders 58 per cent of the new group DaimlerChrysler, the worlds fifth largest car maker. Daimler is not only looking West and is considering taking a controlling stake in Japans Nissan Diesel Motor Co, a subsidiary of Nissan Motor Co, Japans second biggest car group. Daimler and Nissan agreed last month to develop a lighttruck together. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK, Aug 31: Microsoft Corp has demanded flame mail messages from Netscape Communications Corp in a bid to scorch its competitor in next months antitrust trial. Hinting at one strategy it may use at the September 23 trial, the Redmond, Washington-based software company has subpoenaed internal electronic forums run by Netscape employees, the Wallstreet Journal reported. One forum, known as bad attitude, is used to vent everything from competitors to cafeteria food, and a second, really bad attitude, is where a small circle of young engineers posted barbed messages, known as flame mail, about their workplace and products. Microsoft may plan to use some of the more embarrassing of these electronic messages to show that it was management errors or weak products that led to a decline in Netscapes share of the Internet-browser market -- not the predatory practices of a monopolist, as the government charges, the Journal said. The subpoena surprised the engineering ranks at Netscape, where frankand often deeply cutting criticism was common on electronic bulletin boards that were never intended to be seen by outsiders, especially the arch-enemy Microsoft. Bad attitude was intended as an anything-goes forum for venting in as inappropriate and vitriolic a way as you felt like without fear of management reprisal, one engineer wrote, the Journal reported. The second, private bulletin board was open by invitation only. You could be on RBA only if you first flamed so hard that bile flowed from your eye sockets, the forums creator, Jamie Zawinski, wrote on his personal Web site. He says that he has discontinued the forum. The Journal said Zawinski could not be reached for comment. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Following the nuclear blasts, USA has imposed stiff economic sanctions against Pakistan but is willing to lift its embargo so that it is able to find market for its surplus wheat and help its farming community. The US House of Representatives has passed a bill to exempt farm exports so that US is able to sell 3.5 lakh tonnes of wheat valued at 37 million to Pakistan. The US policy marks high degree of pragmatism where economic self-interest overrides political considerations. Contrast this with the Indian situation where the government is resorting to large-scale wheat imports during the last few years, not only harming the interest of Indian farmers but also jeopardising Indias food self-sufficiency painstakingly achieved during last twenty-five years. A contract for purchase of 1.5 million tonnes of wheat worth 310 million (over Rs 1,000 crore) from Australia has been entered in April, 1998. The deal has become a subject of controversy. A heated debate took place in Lok Sabha on 4th June with somemembers alleging that kickbacks have passed hands. Irrespective of the fact whether bribe was taken in the deal, is there economic logic to import wheat given the present state of countrys food economy The apparent logic for foodgrain import is that it will help building public stock of food grains and maintain price level. This statement bears scrutiny. The central pillar of food management policy in India is procurement of foodgrains. Its twin purpose is to provide remunerative price to the farmers to avoid chance of distress sale and to enthuse him to increase production and also to build up public stock of foodgrains particularly wheat and rice for the benefit of general population. FCI maintains food stock, keeping in view the prescribed minimum buffer stock for food security and operation stock for monthly releases through PDS to state governments who are allotted a quota in the light of past demands, offtake trends, relative needs, etc. In addition stocks are maintained for marked intervention witha view to augment supply and help moderating the open market prices. Last year (1997-98) the country harvested a record 69.3 million tonnes of wheat. The procurement of wheat was 9.3 million tonnes adequate for the PDS and the stock with the center on April 1, 1998, was higher by 1.2 million tonnes. This year wheat production is expected to be at normal level and no difficulty was foreseen in FCI making purchases from the market to build buffer stocks as per its target. How has then the government came to a conclusion that there will be a shortfall and need to import wheat Even assuming that there is a production shortfall during last few years is government doing its best to provide an incentive structure to farming community so that the country produces enough foodgrains for its growing population It may be worthwhile recalling background of policy measures taken by government to achieve self sufficiency in foodgrains production against the backdrop of chronic shortages from the time India achievedindependence. During the last few years wheat production has not shown any buoyancy. The latest FAO forecast indicates that in the current year wheat output will fall by 3 per cent as compared to last year and would come down to 67 million tonnes. Farm economists have noted that there has been a steady decline of area sown under wheat. Does the procurement price fixed by the government create enough incentive for wheat farming The procurement price is fixed by the government taking into account the recommendations of Commission on Agriculture Costs and Prices (CACP). The procurement price every year becomes a subject of great controversy with farmers demanding higher support price. This year the government initially fixed the minimum support price at Rs 455 per quintal, Rs 20 less than last years support price of Rs 474 and after farmers raised a considerable hue and cry it was raised to Rs 510. While the farm sector gets some subsidy by way of lower prices for fertiliser, water and electricity, itneeds to be noted that CACP in its calculation of cost of production considers the actual rates paid by the farmers for these inputs and thus these subsidies get transferred to consumers. CACP often underestimates some critical cost inputs like family labour and thus support price recommended by it is often less than actual cost of production. In effect the minimum support price adopted by government becomes a distress price. While the farmer is not getting an economic price for wheat, a piquant situation has risen as a result of price policy adopted by government while supplying foodgrains to states under the public distribution system (PDS). The central government is supplying wheat to the states at Rs 2.50 and Rs 4.50 per kg, while the economic cost of its purchase is Rs 7.80 per kg after reckoning storage and distribution cost. The central governments food subsidy bill is rising every year as issue price of wheat is not periodically revised in line with increase in procurement price. The policyfollowed in India is in contrast to what has been followed by developed countries. The net assistance per tonne of wheat to domestic producers calculated as percentage of world price at national border was 7 per cent for New Zealand, 12 per cent for Australia, 66 per cent for Canada, 90 per cent for USA and 132 per cent for European Community (1991). In 1992 the EC was selling wheat on the world market for 80 per tonne for which it was paying producers around 180 a tonne. In 1995, OECD countries together spent about 182 billion subsidising their agriculture production, equivalent to about 40 per cent of the total value of farm output. It needs to be realised that India is an efficient producer of wheat and can effectively compete in global market (despite relatively low yield per hectare) and has capacity to produce not only for domestic requirement but generate surpluses for export. Wheat from Australia was contracted at 160.50 per tonne which works out to Rs 650 per quintal as against the procurementprice of Rs 150. It is an affront to Indian farming community that the policy makers resort to import of wheat. There is need for government to follow a pragmatic price policy so that the farmer has a sustained interest in growing foodgrains. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. SINGAPORE, Aug 31: Crudes traded into Asia face more downward pressure this week, although a temptation to sell into the firm Dubai market could offer some relief to Middle East differentials, traders said on Monday. The Middle East market fell steadily last week with most grades shedding double digit premiums in favour of single digit premiums on a notional basis. However, the Dubai market has remained firm and received a further boost on the upside on Monday with news that India awarded four cargoes in its October buy tender. Traders said the award could leave the October market short and has already resulted in the October/November Dubai spread firming Monday to 25/30 cents backwardation from 20/30 cents in late London and New York on Friday. Although the Asian market is deemed to be fundamentally weak, with ample supply facing modest demand, the rise in Dubai has contributed to the decline in the Middle East spot differentials on competitive grounds. But traders said that some holders of Dubai mightnow look to sell out Dubai and buy in a comparative and cheaper grade, which would take some pressure off the other Middle East grades. India also purchased five very large crude carriers (VLCCs) of West African and Suez crude for October delivery and one VLCC of West African crude for September delivery. The big awarded reflected the narrow Brent/Dubai spread --assessed Monday around flat for October -- and another factor depressing Middle East grades and regional grades. Oman has slipped to be talked in single digits and regional benchmark Minas is being talked as low as minus 50 cents to its official selling price. The test for the regional and Middle East markets will come this week, traders said. It would only take a sudden spurt of buying on one crude to start dragging the differentials back up, one trader said. Its not that the market is in difficulty. Its just stagnant. Any further Middle East spot trading is likely to emerge incoming days to test whether there is genuinely a lack ofdemand or whether buyers have held off because of bearish sentiment in the hope of even lower prices. The same holds true for regional grades. Traders said Minas has found only very thin demand for September, even on the eve of the new month. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Tokyo, Aug 31: Japan, the worlds third largest coffee consumer, is unlikely to show much of a drop in demand for the beverage this year despite its deepening recession, traders said on Monday. Japanese demand for the whole of 1998 will reach a fairly good level, little changed from last year, said a trader at one of Japans leading trading houses. We expect imports to increase in the second half after a decline in the first half. Data released last week showed Japanese green coffee imports during the first seven months fell 8.3 per cent to 197,946 tonnes from the same 1997 period. But traders expected green coffee imports to pick up in the next several months as new crops were arriving from Japans top suppliers, such as Indonesia and Brazil, which estimates its 1998/1999 crop at 35 million bags, the largest in 10 years. Weve seen some drop (in demand). But I cant imagine the fall this year to reach two per cent, said another trader. The yen is cheap (against the dollar). But domestic pricesare down somewhat as international prices are very low. Traders ascribed the decline in imports so far to a poor Brazilian crop last year and delays in shipments from Indonesia following political turmoil earlier this year. The Japanese Robusta market is still tight. But it will change over the next few months, said a third trader. Indonesian is harvesting its new crop, and shipments have been smooth, which is a big relief. The first trader added: The Rubusta market was tight early in August. But things are improving. And it was nothing like last year when we suffered some defaults from Vietnam. Earlier this year, Japanese traders scrambled for coffee from Vietnam to plug the gap opened by the Indonesian crisis ahead of the main season for iced coffee here. The data showed imports from Brazil totalled 38,169 tonnes in the seven months, against 47,078 tonnes in 1997 period, while imports from Indonesia fell to 29,652 tonnes from 39,859. Purchases from Vietnam grew to 14,694 from 12,124tonnes. Traders said imports from Vietnam might climb further this year as some buyers were shifting from Indonesian products due to poor quality of the new crop. More and more buyers are buying Vietnam coffee, said the first trader. It no longer offers the cheapest Robusta coffee in the world. But their quality is good. If its tasty, people here are willing to pay higher prices. Some traders said, however, imports from Colombia might drop this year because their new crops will not arrive in Japan until early next year despite talk of recovery in their harvest in the new season following a slump last year. Green coffee imports from Colombia fell to 39,835 tonnes during the first seven months from 40,590 tonnes in the same 1997 period, official import data showed. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. BARODA, Aug 31: A chemical Port underconstruction on Indias western coast will go on stream by October 1999, a top Port official said on Monday. The first phase of the project will be completed by the middle of next year and we will start operations immediately after the monsoon season, CS Patel, managing director of the Gujarat Chemical Port Terminal Company Limited (GCPTCL) told Reuters. The Port, designed exclusively for the import and export of chemicals is being constructed at Dahej, 120 km miles) South of Baroda in the western state of Gujarat. GCPTCL, promoted by Indian Petrochemical Corporation Limited (IPCL) and six Gujarati state-owned companies, has its headquarters in Baroda. Patel said the jetty, which is being built 2.4 km into the sea, has a deep draft of 15 metres where vessels up to 40,000 dead weight tonnes can be berthed. Cargo would be transported from the jetty to the terminal through pipelines. The Port, for which initial investment is Rs 7.25 billion (170.6 million), will bedesigned to handle 1.8 million tonnes of cargo a year in its first phase. In the second phase the capacity will go up to three million tonnes, the official said. No date has been set for the second phase of the port. He said the Port facility was only few kilometres away from some major chemical-intensive industrial units. The IPCL and GACL (Gujarat Alkalies and Chemicals Limited) plants are located only four kilometres away from the terminal, he said. Patel said bulk and hazardous chemicals would be supplied to these plants through pipelines. He said the advantage of setting up the port at Dahej was that all kinds of hazardous chemicals could be brought in without posing any risk because the area is sparsely-populated. There are only few villages that also very far away, he said. The port is expected mainly to handle imports of propylene, propane, naphtha and paraffin. Storage facilities of 336,000 cubic meters have been created around the port. An industrial park, where companies can locatemanufacturing facilities, is also being developed around the port. The terminal is 42 km from the nearest railhead and a four-lane road linking the port to the railway is under construction. The government also has a plan to make a broad-gauge railway line from the port terminal to the railway station, Patel said. The new chemical port terminal is part of the state governments plan to develop ten new greenfield sites, six of them in the private sector and four involving partnership between the government and private firms. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. PUNE, Aug 31: For British, it is business as usual, whatever the government may say at the political level about Indias nuclear tests. It was, moreover, absolute rubbish to say that the government is dissuading British industry from investing in India, British deputy high commissioner Michael C Bates said here on Monday. Bates, who is in Pune leading a 17-member trade and business delegation to promote joint ventures in the region, said India was among the top 12 markets identified by Britain for business. While the countrys political situation was uncertain, it was not unstable, he added. The gap between approvals and actual investment by Britain in India was high owing to multiplicity of clearances required, Bates said. At the start of the liberalisation process, the euphoria lead to lots of companies wanting to get in who then came up against the plethora of clearances which may have lead to firms directing their investments in other centres. Britains investments in India are at Pound 3billion, making it the second largest investor in the country. Actual investments in 1997 alone were at Rs 434 crore. The present outreach programme, which is targetted at non-metros, is the latest after successful visits to Nashik and Nagpur. Bates admitted that Pune had a presence in most of the priority areas earmarked by the delegation. These are: agro-food processing, environmental technology, infrastructure, especially power, health-care, mining, oil and natural gas, machine-tools and the British Councils focus on education. The 17-member group will visit 44 firms and meet representatives of 23 more over the two-day visit. He said the Nashik visit had provided 37 specific leads, while Nagpur had given 43. These leads would be followed up industry. Indo-British bilateral trade was evenly balanced in 1997, with India taking a slight edge. Bates attributed this to the strength of the pound sterling and the downturn in the Indian economy, which lead to lower imports by the country. British exports toIndia till June 1998 were at Pound 643 million, a fall of 19 per cent, while Indian exports to Britain over the same period were at Pound 36.8 million, a fall of 10.3 per cent. Indian exports to Britain are traditional goods like textile yarn and fabrics, apparel and clothing, vegetables and fruits. Bates said this could include non-traditional items too but Indian exporters would have to concentrate on volumes instead of small numbers. There are 800 Indo-British joint-venture companies in India, while there are 62 such joint ventures in Britain and 106 wholly-owned subsidiaries of Indian companies in Britain. The dual aim of the visit is to promote British investment in India as well as vice versa. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. News reports indicate that the Aditya Birla group is considering unifying all its cement brands. The move clearly indicates that the group, which has so far been concentrating on operational efficiencies, is now turning its attention on revamping its marketing strategies. Group companies, Indian Rayon and Grasim Industries have so far been marketing grey cement under six brands, each owning three brands. However, the disadvantage of selling cement under so many brands is the dilution of the groups market communication exercise which is aimed at promoting cement sales. Normally, the branding of a commodity product adds value and helps augment sales. However, unlike branded personal products such as perfumes that are often promoted as life-style products, brand promotion exercises for commodity products like cement do not generally translate into higher premiums. Therefore, it makes little sense for a commodity producer to build multiple brands as the expenditure involved would far outweigh the gainsaccruing from the exercise. Having a fewer number of brands would help to achieve better results and faster brand recall at lower costs. The cement operations of the two group companies have already been brought under the charge of a single business head. As this senior manager would be involved solely with cement operations, unlike the earlier arrangement where the same person held charge of several businesses, advantages resulting from specialisation would accrue to the group. Unification of the sales forces including the sales staff, distributors and retail outlets of all the cement units within the group is also being considered. Thus, both the companies through united efforts would be in a position to derive synergistic benefits, driving home the point that better gains can often be made by colluding with competition. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. DUBAI, Aug 31: Gold sales from Dubai to India are expected to remain lacklustre next week despite a rise in Indian imports fanned by weaker bullion prices and upcoming festival demand, Dubai-based traders said on Sunday. Demand in India -- the worlds largest consumer of gold --is expected to rise from the middle of September after a good monsoon season, reaching a peak in mid-October during Diwali, the main Hindu festival of lights. India-based dealers and analysts said the global slide in gold prices to their lowest level in 19 years would stoke fresh local demand after a sluggish start to the festival season. But Dubai-based traders said the ability of some Indian banks and state agencies to import gold directly from Europe and other producers, rather than going through Dubai, would cut into the Gulf Arab emirates re-export business this season. No doubt, demand is still subdued though prices are low. Demand so far has not picked up, said one Dubai-based trader. Demand may be higher from themiddle of September, he added. Traditionally about 80 per cent of the gold imported into Dubai -- some 660 tonnes in 1997 -- is re-exported to India, where demand reached 737 tonnes last year. The changes in Indian import regulations which have seen Indian banks source their needs directly from European and other banks rather than Dubai have already cut into Dubais trade. Bullion imports into the emirate during the first seven months of the year were 27.6 per cent down year-on-year to 268.3 tonnes, according to figures compiled by Dubai customs. Dubai traders said one bright point on the horizon was an anticipated fourth quarter retail recovery in the UAE and other Gulf Arab states as nationals and expatriates returned to the region from summer vacations. UAE gold demand in the first half of the year reached 47.3 tonnes, 21 per cent higher than the previous year, according to the World Gold Council. Hopefully the price drop will lead to more buying, said one trader. Spot international gold was lastquoted on Saturday at 273.75/274.25 an ounce, down from 284.55/285.05 a week ago. London gold fixed on Friday at 273.40 an ounce, driven by fund and producer sales as the metal lost its role as an inflation-hedge amid economic uncertainty. Dubais benchmark ten tola (TT) bar -- 3.746 ounces of 24-carat gold -- fell in line with the slump in world bullion prices, hitting 3,800 dirhams (1,035) from 3,936 dirhams a week earlier. The Dubai premium, which is applied to cover transport costs, insurance and profit was unchanged at 1.00, compared to a traditional 1.25, traders said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. SYDNEY, Aug 31: Sales from Australias 1.1-million bale wool stockpile will resume immediately, statutory authority Wool International (WI) said on Monday. This followed a statement by the Australian government earlier that it would not be able to introduce legislation to federal parliament to back its decision to freeze stockpile sales until after the October 3 election. Wool International (WI), which has responsibility for selling Australias wool stockpile, would be obliged to sell 16,000 bales by September 30 to meet its legislated minimum sales requirement of 90,000 bales for the September quarter, primary industries and energy minister John Anderson said in a statement. The Australian conservative government would introduce to parliament a bill to freeze sales from the countrys wool stockpile if it is returned to power, he said. The bill would provide for a suspension of sales for the remainder of the 1998/99 season, and would apply virtually as soon as it was passed, he added. Latest opinionpolls on average show the coalition government slightly behind the Labor opposition, but still within reach of re-election in the October 3 polls. The federal government announced that it would freeze sales of wool from the countrys stockpile on August 4 when prices plummeted on the resumption of trading after a three week recess. Anderson said freezing stockpile sales would provide relief for Australias hard pressed wool growers who are facing cash flow problems. I am confident that when amendments are passed growers will benefit from the additional sales of growers wool that will flow onto the market and replace sales that would otherwise have been made from the stockpile, he said. The decision to freeze stockpile sales left WI with 16,000 bales left to sell in the September quarter from the minimum of 90,000 bales which it was required to sell under existing legislation. Amid much industry opposition to the freeze, WI sought legal advice earlier this month on whether its legislative requirementto sell the minimum 90,000 bales overrode the governments freeze decision, which had not been backed by new legislation or changes to the existing act. Wool sales resume on Tuesday in Sydney and Melbourne. Wool futures brokers told Reuters that market belief that WI would resume sales from the stockpile, which stopped after the governments announcement, accounted for wool futures price declines late last week. Industry analysts have described the freeze as a bid by the government, in a split cabinet decision, to produce rising wool prices ahead of the federal election. Wool prices have recovered slightly, to an Australian Wool Exchange (AWEX) eastern market indicator (EMI) value of 563 cents a kilogram clean on August 27 from 548 cents a kg on August 4, when the freeze decision was announced. Wool futures fell sharply on Friday. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CHANDIGARH, Aug 31: About 10,000 women in five districts are expected to benefit from a Rs 4.48 crore women dairy project in Haryana. State cooperation minister Narbir Singh said on Sunday that the centrally-sponsored project of the Haryana Dairy Development Cooperative Federation was launched in Ambala, Kurukshetra, Jind, Rohtak, Faridabad and Sirsa. Under the scheme, 200 Women Dairy Cooperative Societies (WDCS) would be formed in three years -- 70 in first year, 80 in second and 50 in third year. The WDCS will be initially set up with 40 members collecting 80 litres of milk per day, which will gradually be increased to 150 litres. The project aims to increase production and procurement of milk besides contributing to the overall development of rural women. Narbir Singh said a number of facilities, including financial as well as training facilities, would be provided to the WDCS during the first three years. All the WDCS would be given initial support in terms of meeting their milk testing equipment, including chemicals, glassware and stationery, at the rate of Rs 5,000 and Rs 7,500 for five milk cans per society for one time only. A provision of managerial subsidy on a tapering basis at the rate of Rs 5,000, Rs 4,000 and Rs 2,500 for first, second and third year respectively per WDCS had been made to meet expenditure of salary and wages of their employees. The minister said under the programme, 5,000 milch cows would be distributed among economically weaker sections of the society, scheduled castes and those eligible under the integrated rural development programme. Women beneficiaries would be provided Rs 1,500 as margin money per member for the purchase. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: SAP AG, the world leader in enterprise resource planning (ERP) packages, is setting up another wholly-owned subsidiary in the country which will undertake development activities for the future releases of its core product. Called SAP Laboratories India, the development centre will be based out of Bangalore and will be the German software majors fourth development centre in the world. We have already applied with the Foreign Investment Promotion Board (FIPB) and hope to get all the required approvals shortly and are confident that the development centre will be operational by mid-October, SAP Asia executive vice-president and managing director Indian sub continent Rokiah Ahamed said. SAP AG at present has one subsidiary in the country, SAP India, which takes care of the marketing activities of the companys products. Besides, the subsidiary also runs SAPs Asian development centre which essentially does localisation of the companys ERP package to meet the specific requirements ofcustomers in the country and other parts of Asia. According to Ahamed, once SAP Laboratories India becomes operational, the activities of the Asian development centre will be undertaken by it with SAP India taking care of only the marketing and support activities. SAP has taken up two floors in the IT Park which is being developed by the Karnataka government in the outskirts of Bangalore. We have decided to invest DM 10 million in SAP Labs India over the next three years which will be invested in infrastructure and manpower, Ahamed said. For SAP Labs India, the company plans to recruit an additional 200 software professionals by the middle of next year. The development centre is expected to focus in the areas of providing functionality for the hi-tech industry and the banking industry. According to the company, SAP Labs India will develop pieces of core modules for the future releases of its ERP package. Meanwhile, SAP India plans tie ups with the Indian Institute of Management (IIM), Calcutta and theUniversity of Delhi for imparting training on relevant modules of its ERP package to management students. The company has a similar arrangement with IIM, Bangalore. This, according to the company, will help in increasing the availability of training manpower on its packages. SAP India hopes to have such arrangements with about six educational institutions by the end of the next year. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Egypt cancels red wheat tenders Egypts official commodities buyer said on Sunday he had cancelled an option for US soft red wheat in a tender for 50,000 tonnes he had made on Friday. Samir el-Shakankiri also said he had cancelled another tender for 50,000 tonnes of French soft red wheat made on Thursday. The prices were not reasonable, Shakankiri said when asked why he cancelled the tenders. On Saturday, Shakankiri bought 200,000 tonnes of US soft white wheat at 99.50 per tonne for loading in October. He had also tendered on Friday for the US red wheat. He is still negotiating with the Australian Wheat Board for 50,000 tonnes of Australian wheat which he had tendered for on Thursday along with the French wheat. Algeria oil, gas income down Algeria expects its 1999 total revenues to reach 14 billion, including 11.6 billion worth of oil and gas exports, the official APS news agency said on Sunday. APS, quoting the finance ministry, gave no comparative figures for 1998, but Algerianofficials have earlier estimated oil and gas revenues to reach 12 billion in 1998, down from 13.6 billion in 1997. Algeria on Wednesday unveiled a preliminary draft budget for fiscal 1999 with a deficit of 2.5 per cent of gross domestic product (GPD) due to falling oil prices. Algerias fiscal year follows the calendar year. The oil and gas industries are Algerias mainstay, representing more than around 96 per cent of the countrys total exports. Thai Oil lowers run Thailand refiner Thai Oil plans to lower crude runs at its 220,000 barrel-per-day (bpd) refinery by 20-30 per cent from September 1, a company official said on Monday. Portuguese bonds ease early, narrow range seen Portuguese bonds ease early, narrow range seen 0850 GMT - Portuguese bonds eased in early trading, and dealers expected trade to remain in a narrow range in the absence of LIFFE on a public holiday. Dealers said some profit-taking could take place as European stock exchanges opened firmer. From September, our runs willvary about 20 to 30-per cent, depending on the price situation, the official said. Initially we plan for 20-per cent cut but because of the low (product) prices, we are going a bit further. The runs will be cut for an indefinite period to 155,000-bpd from September 1, until a price recovery is seen, the official said. Gulf crudes under pressure Downward pressure on Abu Dhabi and Oman crudes for October loading was expected to mount following Indias purchase of four cargoes of Dubai in its latest purchase tender, traders said on Monday. India has awarded four cargoes of Dubai crude for October loading, traders said. It has also purchased five very large crude carriers (VLCC) of West African crudes including two VLCCs of Qua Iboe for October and one VLCC for September delivery. One VLCC of Gulf of Suez and one VLCC of Escravos were also purchased by India. Some traders said they expected the Dubai market to tighten following the latest purchase made by India, and thus cause Dubai to strengthenagainst Brent. One trader said he believed that one of the traders which had won the tender was actually short of a Dubai cargo. Dubais spread against Brent, usually quoted at a discount, was already assessed at a slight premium due to the Asian benchmarks strength. The prospect of more West African crudes flowing to Asia was expected to exert downward pressure on the October Middle East crude market already suffering from an oversupply and a virtual absence of buying interest. October cargoes of Murban and Lower Zakum were believed quoted at a discount to the official selling price due to the abundance of cargoes. Bangladesh calls new rice tender Bangladesh, facing a huge food shortfall due to severe flooding, has called a further import tender for 70,000 tonnes of par-boiled rice, food ministry officials said on Monday. They said bids were scheduled for September 29. The maximum moisture content should be 14 per cent, and maximum broken content 20 per cent, they said. The shipment should bemade within 30 days of signing the deals, the officials said. The officials said the ministry was holding a previously announced tender for 70,000 tonnes of par-boiled rice on Monday. Bangladesh has appealed for international food aid after seven weeks of floods which have damaged crops and killed more than 400 people. The country will need to bring in about four million tonnes of foodgrains through commercial imports and international food aid to make up the shortages, aid workers say. US coffee roastings flat Complete Coffee Coverage reported US green coffee roastings as follows: For the week ended Aug 22, roastings totalled approximately 350,000 60-kg bags, unchanged from the previous week, and compared with 335,000 bags in the corresponding week one year ago. Cumulative roastings totalled 10,990,000 60-kg bags, versus 11,155,000bags in the same year ago period. Indonesia olein prices down Palm olein prices were down during Monday morning on the Indonesian edible oil market due to asupply of subsidised stocks from market cooperatives group Inkoppas, traders said. Most of the stocks offered are from the Inkoppas, few factories offered olein today so generally the market is very thin said one trader In Jakarta. Inkoppas is the sole distributor of olein, appointed by the state regulator Bulog to supply it to the local markets, in a bid to boost stocks of domestic olein. Ex-factory olein, which is used as cooking oil, was quoted at 5,000-5,200 rupiah/kg in Jakarta while in Medan prices remain unchanged at 4,600 rupiah/kg. Traders said they are still waiting to see whether Bulog changes its policies after its Chief was replaced last week. They said moves to revamp the ailing distribution system were needed to further stabilise cooking oil prices. One trader in the provincial town of Medan in North Sumatra-- one of Indonesias main crude palm producing regions -- said that now that Bulog has merged with the Trade and Industry Department there was a possibility that distribution couldimprove. Nepal alert on edible oil Nepal on Monday warned against imports of adulterated mustard oil from India, where a dropsy epidemic caused by the cooking oil has claimed at least 15 lives. The move comes after reports said adulterated oil had been smuggled from India through clandestine routes into Nepal, which shares 1,500 km of open borders with its southern neighbour. India accounts for over 29 per cent of Nepals total trade and is the supplier of the bulk of its consumer goods. The ministry of supplies, in a statement, asked businesses dealing in cooking oil to get imports tested by the National Food Research Laboratories before selling them in the market. Several northern and eastern Indian states banned the sale of mustard oil last week as the death toll in the capital climbed. Mustard oil is used mostly in the eastern and northern states for cooking. Hundreds of people complained of swollen limbs, vomiting and breathing and cardiac problems after consuming adulterated oil. At least15 people have died and more than 500 have been treated in hospital. Dropsy is caused by the toxic alkaloid sanguinarine present in argemone oil, which -- whether added accidentally or deliberately -- adulterates mustard oil. Aramco Oct exports seen down State-owned oil firm Saudi Aramco is likely to cut crude exports to term customers in October by between nine and 13 per cent, the Middle East Economic Survey (MEES) newsletter reported on Monday. Saudi Aramco this month informed customers in Asia, Europe and the United States that it would slash 18 per cent from contractual export liftings in September. That doubled the size of Aramcos August contract reductions which ran at about 8-9 per cent for most customers and followed a five per cent cut in July liftings. Previous to that, dating back to April, Aramco had met its commitment to slice supply by wiping out the incremental top-up volumes, of up to five per cent, that customers were entitled to request under contract. Saudi Arabia has pledgedto cut its output by 725,000barrels per day (bpd) from February levels to 8.023 million bpd as part of a producers effort to lift oil prices from their lowest level in 10 years. Tocom PGMs rebound on short-covering Yen-based platinum and palladium futures closed higher on Monday, as Fridays recovery in Nymex platinum spurred short-covering and fresh buying, traders said. Gold and silver futures ended easier, carrying over a bearish mood from last week, but the prices ended off lows due to the dollars advance against the yen in afternoon trade, they said. Platinum futures ranged from 14 to 23 yen per gram higher. Benchmark August ended up 15 yen at 1,567 yen. Following a good performance in the New York market on Friday, operators covered short platinum positions, one brokerage analyst said. Some investors also hunted for bargains as the market looked oversold recently, he added. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. PUNE, Aug 31: The Maharashtra State Electricity Boards (MSEBs) subsidies to various segments amounted to Rs 4,000 crore, while its dues were Rs 3,000 crore in 1997-98. These subsidies resulted in pushing up the power tariff in the country, chairman Ashoke Basak said. MSEB may be able to recover only Rs 1,200-Rs 1,500 crore of the Rs 3,000 crore due to it, Basak said, while the interest and carrying costs are mounting at the rate of Rs 100 crore per annum. The board is coming down hard on defaulters in some cases, cutting off power and water-supply lines to civic bodies, which owe Rs 300 crore. Industrial units, which are either Board For Industrial Financial Reconstruction (BIFR) cases or are headed in that direction, owe MSEB Rs 300 crore, which Basak said were non - recoverable. The protected cooperatives in the state owe about Rs 150 crores, public-sector units (PSUs) Rs 150 crore and about Rs 800 crore is due from the agriculture sector. Basak said the cost of power to users would not go upafter Enron starts supplying electricity. Power supply from private producers would also not be the most expensive. Basak was confident that the tariff from Enron would range between Rs 1.60 and Rs 3 per unit. The 740mw Enron project is expected to begin generation from December 1998. Dabhol Power Co (DPC) would have been able to begin supply from October 1998, well ahead of its March 1999 deadline. MSEB, however, needs to erect a second transmission line to ensure that DPC does not invoke the penal provisions of the agreement in case of a transmission failure. Hence, generation from Dabhol will begin only from December. The board will very shortly declare a lower pricing structure for power supplied to high-tech agro units. This was in response to requests made by the regions mushroom units adversely hit by being charged the industrial rate of Rs 4 per unit. The industry claims this has led to the closure of several mushroom units in and around Pune. Admitting that the erratic power supply in Punewas a cause for concern, Basak said an investment of Rs 101 crore had to be made to ensure that transmission and distribution (TD) losses were minimised and the citys cabling went underground, like in Mumbai. The cabling project would be a three-year programme. But given the resource crunch, this will not be taken up immediately. The Tariff Advisory Commission has suggested that consumers must pay at least 50 per cent of the cost of the power supplied, which would raise charges to Rs 2.40 per unit in the current year. This would translate into a domestic rate of Rs 1.40 per unit and Rs 1.20 per unit for the agriculture sector, the latter paying at the rate of Re.0.24 per unit. However, this suggestion has not been accepted by any state government, Basak said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. WINDHOEK (Namibia), AUG 31: India and Namibia on Monday signed four umbrella agreements to give bilateral trade cooperation a significant boost. The agreements were signed during the second leg of prime minister Atal Behari Vajpayees four-nation trip that will take him to the NAM summit later in Durban and Mauritius. The agreements signed are: A technology-cooperation agreement under the Indian Technical and Economic Consultancy Programme, under which experts from India will offer Namibians training in various areas, including agriculture and small-industry development. An agreement on agricultural research, including irrigation and animal husbandry. An agreement for technology that will help boost employment. Broadly, this covers small industry development programmes, but specifically the Indian government plans to set up a plastic technology demonstration centre to train Namibians in the use of plastic technology. A line of credit agreement with the Indian Exim Bank toprovide 5 million worth of rupee-denominated credit for purchase of commercial vehicles, agricultural machinery and other items. This credit, if it is utilised fully by the Namibians, will help boost exports of Indian trucks and tractors to Namibia. The agreements will, over time, help increase the level of Indo-Namibian trade, which at present languishes at a pathetic Rs 6 crore both ways. The bulk of the trade constitutes Indian exports, leaving Namibia with a trade deficit. Namibia has a very small manufacturing sector, but is well-endowed with mineral resources, including diamonds and uranium. Though India is a major importer of diamond roughs, most of the trade is dominated by South African firms. Namibia is offering diamond prospecting contracts, but Indian companies have few skills to offer here. Any trade growth will, therefore, take a lot of effort. Recent discoveries of natural gas offer opportunities for ONGC to look for contracts to develop and utilise this reserve. A hydroelectric projectis also being planned, and this could be of interest to Bhel to bid for it. Another business opportunity could be in railways, where the Namibians are planning expansion. A huge country that is one-quarter the size of India but with a population base of just 1.6 million (just about the size of a large Lok Sabha constituency in India), Namibia has traditionally been a great friend of India in the African continent, both because of Indias early support for SWAPO, a guerilla organisation headed by San Nujoma which fought for independence from South Africa. After Independence in 1990, Namibia, continued its strong political ties with India with Sam Nujoma as president. The present visit of prime minister Vajpayee is intended to give more economic content to the political bonhomie. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, August 31: The government-owned ITDC Hotels is in the process of appointing a global adviser to take forward its planned disinvestment-cum-restructuring plan. The company has already asked its corporate adviser, SBI Caps, to invite bids from consultancy firms and investment bankers. Around eight firms, including AF Ferguson and Citibank, have been short-listed to make presentations to an inter-ministerial task force on September 8 at New Delhi. ITDC has witnessed a fall in its profits in the past year by more than 30 per cent, making it necessary for the government to hasten its revival process. In 1996-97, it posted a net profit of Rs 55.80 crore on a turnover of Rs 310.31 crore. But for 1997-98, the provisional net profit is pegged at lower Rs 38.61 crore against a turnover of Rs 296 crore. The chosen firms mandate will be to get ITDC back on a winning track. It will have to undertake the project in two phases. While the first phase will relate to finalising the various transaction structuringoptions, the second one, subject to the cabinets approval of the first, will involve executing the final options. Speaking to The Financial Express SBI Caps managing director AR Barwe confirmed that as corporate advisers to ITDC, his company is planning to finalise a global adviser within a months time. He said the chosen global firm will also have to keep in mind the recommendations of the disinvestment commission for ITDC. The commission had, as part its suggestions, stated that ITDC should let out its metro properties on a management-contract basis. It had also recommended that the non-metro properties of the company should be corporatised even up to 100 per cent. ITDC has a total of 26 properties, out of which nine are classified as metro properties. Out of these nine, eight are in New Delhi while one is in Calcutta. The other hotels are scattered all over the country, including Bangalore, Agra and Jaipur. Apart from incorporating these recommendations, various bidders will also have to encompass, in their presentation, a gamut of other issues outlined by SBI Caps. These include the methodology to be followed for valuation of properties, the constraints which ITDC may have in going for disinvestment and the different transaction structuring options which could be used by the company. Bidders will also have to do a Swot analysis of the company along with detailing its unique selling proposition. SBI Caps has also asked that bidders include strategic options for value enhancement of ITDCs transaction structuring options in their presentations. There is a possibility that ITDC may opt for a stand-alone disinvestment of a few of its prime properties rather than go in for a full corporatisation plan. However, according to senior industry experts, all bidders will have to find a sustainable solution for ITDCs 8,000-strong manpower. They say labour remains a contentious issue for the government-owned hotel chain. The global adviser will have to come up with a good re-deployment and/or voluntary retirementscheme to mange the issue, they add. Some experts do fear that a troublesome labour may put off global investors. However, sources at ITDC were confident that such issues will be offset by the obvious advantage offered by the hotels properties in terms of good locations and, therefore, immense potential for roping in traffic. They also pointed out the duty-free shops owned by ITDC will be an added benefit to future investors. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Aug 31: Kuoni Travel India has launched a 100 per cent subsidiary, Happi Holidays, which will offer package tours on credit to Indian tourists travelling abroad. Kuoni Travel India, which was previously called Kuoni SOTC, will launch these holidays in Delhi, Chennai, Bangalore, Mumbai, Pune and Ahmedabad. The Happi Holidays tours are targeted at the Indian middle-class which aspires to travel abroad but cannot afford the cost Kuoni Travel India Ltd vice-president and chief executive officer Zubin Karkaria said. Happi Holidays will enable people to holiday abroad now and pay later in 12 easy monthly installments, he added. The holiday packages include Thailand Thrill, an eight-day tour to Bangkok and Pattaya at Rs 1,850 per month, a swven-day tour of Mauritius at Rs 3,290 per month, a nine-day tour of Mauritius and Singapore. Happi Holidays is the second subsidiary of Kuoni Travels India. Its other subsidiary is SOTC, in which Kuoni acquired a 100 per cent stake last year. Kuoni TravelsIndia is a division of Kuoni Travel of Switzerland, a 4-billion multi-national travel company. Kuoni Travels India has tied-up with Kotak Mahindras K-Value, pioneers in the field of pre-approved consumer finance, for the Happi Holidays finance scheme. Under this scheme, a customer can avail of holiday finance at 0 per cent interest with no service charges. The monthly instalment will range from Rs 1,500 per month to Rs 8,000 per month depending on the holiday package chosen and is repayable over a period of 12 months. A customer wising to avail of the Happi Holiday scheme, can do so by applying for a K-value membership. Kotak Mahindra Finance Ltd vice-president P Sreekanth said, In line with our marketing strategy, Kotak Mahindras K-value first launched pre-approved consumer finance for consumer durables, this was followed by financing furniture, computers and mobile phones. In the third phase, we wanted to get into financing a service which no other company had though about. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Hyderabad, Aug 31: Ouest Syscon International Pvt Ltd, the Hyderabad-based software solution provider, plans to launch three of its globally successful software products in the domestic market. The three products which will cover the financial, hospital management, and automotive business were earlier developed by the company. It has capabilities to offer a wide range of specialised services in areas of onsite and offshore software development and maintenance, project management, consultancy and training, a release said. While the OPEN/FINANCIAL, a comprehensive package for business management, financial accounting and distribution system offers integrated view of the operations and financial performance of business at the head office, branch office and profit centre levels. The second package, CARE, an integrated hospital-management system generates extensive management reports and statistics and offers a powerful query module. It also facilitates recording and reporting of inpatient and outpatientinformation from pre-admission to the discharge. AUTOMAN, the software package WHICH the company proposes to launch in THE domestic market, is an automotive business management and operations support system and provides a total solution to automotive dealers. The package consists of three modules namely vehicle sales, parts, and garage. To meet the required skilled manpower, the company has set up a facility to train its manpower on international development standards and technologies, the release added. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Pune, Aug 31: Parametric Technology Corporation which took over Computervision (CV) globally early this year, has offered its Indian employees at the research development centre in the city an employee stock option plan, company director in-charge RD Prakash Desai said. The plan which in the country is a cashless operation, has been cleared by the Reserve Bank of India, which has also informed the company that such plans no longer need RBI clearances. Parametric Technologys plan will cover all its RD employees, about 200 at present, who will get stocks in numbers comparable with their international counterparts. This will ensure that employees get a substantially, larger package, Desai said. Declining to give numbers since these were still under consideration, he said the decisive factors would be the level at which the employee was and would definitely be performance linked. The RD centre at Pune, set up by Computervision, developed about 80 per cent of its products here. This is expected tocontinue under Parametric, with scope for growth. Company regional director South Asia Anurag Srivastav said Parametric will make additional investments here, in terms of upgrading hardware. The centre will develop localised products, he added. Desai said they were in need of greater bandwidth and were talking to the Videsh Sanchar Nigam Ltd (VSNL) for greater satellite connectivity. Its present 128 kbps link will soon be upgraded to 512 kbps which could be increased to 1 Mb. Parametric, which is a leading CAD/CAM/CAE supplier of software tools and launched its Pro/engineer family of tools in 1998, has been widely accepted by automotive, heavy engineering, aerospace, domestic electronics, medical electronics and consumer goods manufacturers. Desai said they will now look to users of CV products to use Parametric ones. CV had fewer customers though more seats per customer while Parametric has more customers, providing opportunity for growth. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, Aug 31: Hyundai Motor Company (HMC) has been ranked first amongst Korean auto makers and 13th globally for the year 1997, according to automobile magazine, Automotive News, 1998 Market Data Book. The global sales of HMC for 1997 totalled 1,242,895, against production of 1,123,237 vehicles, which is almost 500,000 units more than the other two Korean automobile manufacturers that figure in the Global 20. Daewoo Motor Company, that clocked sales of 749,758 vehicles last year against a production of 1,033,552 has been ranked 18th worldwide. Kia Motors is one slot behind Daewoo Motors at the 19th position with sales of 741,364 vehicles against production of 657,920. The worldwide sales figure for 1997 released by Automotive News stood at 53,404,834 vehicles and include passenger cars, light, medium and heavy trucks. General Motors ranks first in the worldwide vehicle sales, with total units sold in 1997 amounting to 8,776,000 followed by Ford with sales of 6,943,000 vehicles. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: The recent autonomy package for profit-making public sector banks has not helped in improving the State Bank of Indias existing system, the bank apprised the finance ministry. The bank has asked the centre to permit it to create posts up to Scale VI at its branches. The new guidelines applicable only for creation of posts up to top executive grade (Scale VI) for administrative offices is totally inadequate as an autonomy measure, the SBI note, which was submitted to the finance ministry, stated. We have to still approach the government for creation of posts in branches and for posts of top executive grades -- Grade VII and above, the paper stated. The guidelines are meant for nationalised banks and not for us. The existing system in relation to promotions of officers to senior and top executive grades is working satisfactorily, the note added. SBIs detailed note on ideal autonomy includes measures such as implementation of the Narasimham Committees suggestions regarding taxprovision on non-performing assets, a level playing field between domestic and foreign banks and between banks and financial institutions, cost/benefit of computerisation to the banking system, autonomy for banks in the area of officers recruitment and greater autonomy in the banks internal administration. On the freedom to depute officers and lateral mobility of officers within the bank, SBI has said that it already has an appropriate structure for deputing officials outside the organisation for a period of three years. For deputation exceeding three years, the bank obtains approval of the central boards executive committee. We also have several joint venture arrangements with foreign financial institutions, which have further broadened our expertise in different areas. As such, the bank does not require any specialist officer from other banks at present, the bank stated. On freedom to formulate the rural and semi-urban service rule, SBI has said that a committee has been formed to examine therevision in the existing norms on completion of rural and semi-urban assignments. The committees report is expected within two months and an appropriate policy will be framed as required. The bank has further said that a paper on campus recruitment of probationary officers has been sent to the SBI Officers Federation. In keeping with the recommendations of the DR Mehta Committee report, the centre has announced autonomy to public sector banks for creation of posts and recruitment of officers. The banks eligible for the package need to fulfil certain criteria such as recording a net profit for three consecutive years, 8 per cent capital adequacy ratio, net NPA level below 9 per cent and minimum owned funds of Rs 100 crore. Centre asks SBI to reopen Kashmir branches The centre has asked the State Bank to reopen all the 20 branches in Kashmir which were closed owing to insurgency in the region. SBI has been unable to reopen the branches as the centre has not provided any assured security. Thebank has asked the finance ministry to look into the issue. Sans the centres help, the bank has been able to reopen only one branch. In anticipation of the provision of security, the bank has promoted 50 employees to the officer level for the specific purpose of managing these 20 branches. These employees have been also transferred to Srinagar. The bank has spent a substantial amount in rehabilitation of these employees. In addition, SBI has been paying about Rs 60 lakh each year towards incentives for employees working in Kashmir. Some SBI employees have already migrated and are unwilling to return to the valley, the bank said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, Aug 31: A few members of the Western India Regional Council (WIRC) of the Institute of Company Secretaries of India (ICSI) have raised objections to the notice issued by the institute for convening an annual general meeting (AGM). According to the members led by Vinay A Rathi, the notice is not only bad in law but also faulty and incomplete. Rathi had earlier approached the city civil court against the councils decision to seek a postponement of the meet, scheduled to held on July 30, as the mandatory notice period of 14 days for the meeting was not served on account of the postal strike. In its order dated July 29, the court upheld Rathis plea and directed the council to hold its AGM after giving a fresh notice. Accordingly, the WIRC has now fixed the AGM for September 19. Rathi, along with two other members SN Bhandari and MG Samdani, has now objected to the fresh notice issued by ICSIs western council. The members have alleged that the council has not sought permission from any authorityfor postponing the AGM as required under the Company Secretaries Act. According to Rathi, who is also an advocate, the wordings of the notice clearly show that the council had conferred upon itself the right to postpone the meeting. The notice said: Notice is hereby given that the postponed 22nd annual general meeting. by order of the WIRC. He clarified that the courts order had not bestowed the power of postponement of the meeting on WIRC. As per the law, the WIRC should hold its AGM by July 31 and in case of delay, permission has to be taken from the Registrar of Companies or the central government or an appropriate authority. The members also pointed out a mistake in the notice which said that the AGM would be held at Belapur in Navi Mumbai. The place is not only incovenient, but is also outside the municipal limits of where the regional office is situated, members said. When contacted at Vadodara, WIRC chairman Hemant I Bhatt denied any irregularities in the issuance of the notice. Healleged that some members were trying to disturb the work of the institute and that the matter will be referred to a higher body of the council. The court has directed us to hold the AGM by issuing fresh notice and there is no need to obtain anybodys permission, a senior office bearer of WIRC said. According to him, the facilities of ICSIs Centre for Corporate Research and Training, which was constructed at a cost of Rs 3 crore, would be utilised for holding the AGM. There is nothing wrong in holding the AGM at Navi Mumbai, he added. The members have also said that the notice is bad in law as its date has been overwritten. The printed date of August 7, 1998 of the AGM has been changed to August 17. The notice is also alleged to be incomplete as in the explanation given for the postponement of AGM the footnote does not mention that the court has directed the WIRC to postpone the meeting. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Discovery Channel quiz 98 The annual Discovery Channel quiz 98 for school children will kick off in Cochin on August 19. The event will take place in nine cities this year, as against five last year. The cities to which the quiz will travel include Bangalore, Chennai, Calcutta, Hyderabad, Mumbai, New Delhi, Ahmedabad and Kanpur. Questions posed to students will relate to science and technology, history, adventure, world culture and nature, which are also the programming genres on Discovery Channel. A travel website: Spider Web Solutions has launched a web-site on India and the art of motorcycle touring. The site provides details about engine specifications, prices, road maps and pictures from all around the country. The site comprises 130 pages and has 200 photographs offering a variety of information. Wills International Cup from October 24: ITC Ltd using its Wills brand name to promote sports, especially cricket, is nothing new, but this time around it is not thecigarette brand which is lending its name to the Wills International World Cup (WIC). The WIC is being sponsored by ITCs new sports gear and fashion brand -- Wills Sport. This is perhaps the first sponsored event that will not be backed by a cigarette brand. ITC Ltd has decided to extend the franchise of its popular cigarettes brands into unrelated areas like retailing or fashion wear. Industry sources say this is being done keeping in mind an environment which is getting more health conscious and more hostile to cigarettes. Stainless steel water cooler: LL Equipment and Machines Pvt Ltd has introduced a full stainless steel body water cooler to ensure hygenic conditions. The unit has a PUF insulation which helps save power. The water cooler is available from Dew Drop Water Technologies, distributors for LL Equipments, with a 10-year warranty on the body and an 18-month warranty on the compressor. Inter Continental website: Inter Continental Computer System (ICCS) has launched a website(infoindia. net) which gives comprehensive information about airlines, railways and hotels in the different parts of the country, apart from giving a thorough description of all the Indian states. According to the company, the website will prove to be a one stop shop for all travel and accommodation needs for tourists and businessmen visiting India. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CHENNAI, Aug 31: Aruna Sugars Enterprises may have to part with more than its hotel division if it has to effectively turn around the company. Financial institutions have asked the management to explore ways to induct more funds to revive the ailing company. Aruna Sugars had recently entered into a memorandum of understanding with Asian Hotels to sell its hotel division for Rs 35 crore. The company has accordingly obtained shareholders approval for hiving off its other divisions or assets, if necessary, at the companys 36th annual general meeting on Monday. The company, which is saddled with Rs 102.83-crore debt as on September 97, has appointed consultants to explore options for raising interest-free funds. Aruna Sugars for the year ended September, 1997 has posted a Rs 13.51-crore loss and the carry forward loss of Rs 18.30 crore is fast depleting the companys Rs 27.56-crore net worth. The distillery division continues to be defunct owing to pollution-related problems. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Naidu inaugurates LTs Tadpatri cement plant: Andhra Pradesh chief minister Chandrababu Naidu formally inaugurated Larsen Toubros (LT) two million tonnes per annum (MTPA) cement plant at Tadapatri in Anantapur district. Naidu appreciated the companys accomplishment in setting up the unit in record time and complimented its role in setting up a water supply scheme at Anatapur and the hi-hi-tech techno-park project in Hyderabad, a release said. This is LTs sixth cement plant and takes its installed capacity for cement manufacture to 1065 MTPA, making it the largest cement producer in the country. IAs new regional director for western region: Indian Airlines has appointed Sisir Kumar Ghorai as the new regional director for its western region operations. Ghorai was the airlines director (projects) and also held additional charge of the engineering division at Mumbai. A technocrat by qualification, Ghorai has also undergone specialised training in the United States of America on theengines installed on the Airbus A 300 aircraft. He also holds endorsements for maintenence of all types of aircrafts in IAs fleet. Gorai takes over from PS Shetty who has moved to the airlines corporate office as commercial director. Hughes credit card-based payment over the Net: American computer major Hughes Software Systems on Monday became the first company to offer credit card-based payment over the Internet in the country when it tied up with the New Delhi Traders Association (NDTA). The arrangement allows NDTA to use the Hughes credit card-based secured payment solution which allows businessmen to make payments over the Internet, a company release said. The Hughes system will allow shoppers to choose merchandise and pay for it via the Internet thereby giving domestic shops a wide international access. Hyundai to launch Accent next September: The dismal performance of the midsize luxury cars in India has not deterred Korean auto major hyundai motors plans to launch its SedanAccent in the country, a senior company official said. Hyundai Motor india Ltd (HMIL) will introduce the Accent--its second car for the country--in September next year and the cars trial production will begin three months before the launch, company executive director JH Kim said. We believe the slump in the luxury segment will be over in the near future and certainly there is a good market for these types of cars in India, he said. Sap India in talks with public sector oil and gas firms: Sap India, provider of end-to-end business solutions, is holding talks with public sector Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation (IOC) for providing technology support for efficient management of their operations, a senior company official said. We are negotiating with a number of oil and gas companies, including public sector BPCL and IOC, to provide them Sap oil and gas solution, a comprehensive business solution that integrates functionality specific to the petroleum industry, Sap India managing director Rokiah Ahamed said. Multilingual websites, key to tap foreign markets: Domestic companies can tap unpenetrated foreign markets through multilingual websites on the Internet and localisation of their contents, the US-based Multimedia Marketing Group Inc senior official William J Hunt said. By developing software easily adaptable to languages without much changes in the program code and providing product information in a language specific to the target market, domestic companies could foray into the European and Asian markets, he said while addressing a technical session at the India Internet World 98 on Friday. Sundram Fasteners unveils TPM success: The TVS group auto parts company Sundram Fasteners Ltd (SFL) has successfully completed the first phase of total productive maintenance (TPM) project, a Japanese factory management concept to cut costs and boost bottomline. But for TPM, we would have been in the red. It helped us profitably stay in the business. The gains made by implementing tpm have come as a blessing when the automobile component industry is facing recession, company chairman and managing director Suresh Krishna said. Global satellite phone: ICO Global Communications and the Videsh Sanchar Nigam Ltd (VSNL) have joined hands to create a satellite-enabled global personal mobile communication service in the country. Addressing a seminar on global mobile satellite phones for the transport industry ICO Globalo chairman BD Pradhan said VSNL will sell the ICO services in different markets. It is proposed to do so through joint venture. The billings and other services will also be done by VSNL, he added. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Aug 31: Enron International plans to float two wholly-owned subsidiaries for financial risk-management in the oil, gas and power sectors and for renovation and modernising power plants in the country. The subsidiary for financial risk-management will take some more time as it is linked with the deregulation of the oil, gas and power sectors. This subsidiary may also see participation from an Indian company. Plans for setting up the independent subsidiary for the renovation and modernising jobs will be finalised soon. Enron, along with GEC, is already in the race for securing the RM joint venture project of the National Thermal Power Corporation (NTPC). Its plan for a subsidiary will take shape only after NTPC finalises the name of the partner for this venture. Another strong contender for this project is the Tata-ABB combine which has also been shortlisted by NTPC. Talking about Enrons existing and new ventures in India, the new chief executive officer and president of Enron International, Joseph W Sutton, told The Financial Express that his company is committed to invest in Indias power, oil and gas sectors in a big way. Sutton, who recently took over the reins of the company from Rebecca Mark, is in the capital for the next two days and has planned a series of meetings with senior bureaucrats in the power and finance ministries including power minister PR Kumaramangalam and finance secretary Vijay Kelkar. Giving details, Sutton said that in order to meet its LNG requirements of 2 million tonnes for the Dabhol Phase II project, the company is tying up with Oman LNG for sourcing 1.6 million tonnes of LNG. The balance will be sourced from Abu Dabi and Qatar. Enron already has a stake in Qatar Petroleum Corporation, which gives it the rights to develop LNG facilities in Qatar for the Indian market, he added. The LNG storage facility being created at Dabhol would have a capacity of 5 million tonnes, although initial supplies would be only 2 million tonnes. The second phase involvessetting up a regassification plant at a cost of over 400 million at Dabhol besides creating a minor harbour and laying pipelines to transport the fuel. The cost of power produced could be cheaper in the second phase as we would not be using naphtha which is costly. Also, capital costs of the project would also come down. All these would be adequately reflected in the tariffs, Sutton added. Sutton said that his first priority is to see the commercial operation of Dabhol Phase I by the end of this year. His next priority is to see the financial closing of Dabhol Phase II and start construction work by early next year. Talking about the financing of Dabhol Phase II vi-a-vis the sanctions imposed in the aftermath of the nuclear blasts, Sutton said that Enron has tied up finances of over 1 billion for its 1,444mw Dabhol Phase II power project in Maharashtra with guarantees coming from the Exim banks of Japan and Belgium. This debt of 1 billion will be raised from overseas commercial banks and exportcredit agencies. Over 300 million would come from financial institutions like IDBI in the form of rupee loans and the Exim bank of Belgium would stand guarantee for 200 million and Exim bank of Japan for about 50 million, he said. Sutton said the escrow account for Dabhol II, in the absence of a counter guarantee, was also likely to be put in place soon. Dabhol II is likely to be commissioned by 2001. Enron has shortlisted GE as its equipment supplier for Dabhol Phase II. However, this is yet to be approved by the Maharashtra State Electricty Board (MSEB). Sutton did not rule out the possibility of MSEB picking up an equity stake in Dabhol II. MSEB has a 30 per cent stake in Dabhol I and of the balance 70 per cent, Enron holds 50 per cent, Bechtel 10 per cent and the remaining 10 per cent is with GE. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. BPCL BPCLS foray into petrochemicals, at a time when the industry is undergoing a global recessionary phase is indeed intriguing. The project is expected to be commissioned only in the year 2004-2005, by which time there is a chance that prices would improve. But despite this, the risks involved are very high. In the past, all petrochemical projects were based on the fact that peak global capacity additions occur once in three years, which is also the time when the prices are at the lowest. But soon demand outstrips supply causing the prices to firm up. BPCLs project envisages an entry into the ethylene, styrene and propylene chain. Interestingly though, the project does not plan any global scale of production. More importantly, despite the venture into styrene being a first in India, the depressed prices due to capacity additions would mean that the company earns negligible returns from this line of business. In fact, the last two years has seen supply exceed demand by more than 10 per cent. Capacity additions of Styrene in the Asia-Pacific zone alone have been in the region of 3.15 mtpa, while the demand growth is expected to be a meagre 2 per cent. As far as the ethylene chain goes the drop in prices have already taken a toll, what with plants in Malaysia and Indonesia winding up their operations. However, the enforced shutdowns, will be of little benefit as a host of corporates like Adnoc-Burroughs, Philips and Equate (Kuwait) have already pledged capacity additions. Even on the domestic front Gail is poised to increase capacities, all of which will only deteriorate market prices further. Propylene, however, is the only chain where in petrochemicals units the world over are quite bullish. In fact, growth rates in this segment are expected to exceed 30 per cent per annum. But to BPCLs disadvantage, Reliance is commissioning capacities of 6 lakh tonne by the year 1999-2000. Compared to which BPCLs capacities would be miniscule, thus severely affecting the companys cost structure andprofitabilities. At a time when most petrochemical companies are moving into value-added products to safeguard margins, BPCLs entry into petrochemicals defies logic. But with the dismantling of the APM, there is no denying the fact that BPCL would need some exposure in downstream industries. However, would not the option of picking up a stake in IPCL or Gail prove more beneficial, rather than setting up a new green field plant In spite of an excellent second-half performance in 1997-98, the Gujarat Ambuja scrip has slipped to the Rs 180 levels. It is at these current prices that the stock appears attractively valued, especially given that earnings were driven largely by savings on the energy bill, a price hike in March, 1998, and volume growth. More importantly, valuations for the stock appear bright despite the fact that the companys prospects for the interim are not exciting given the backdrop of dwindling cement prices. In fact, prices in both Gujarat and Mumbai havecrashed, while prices in Punjab have stagnated. Thus, the lower realisation could also put a squeeze on operating margins. But this is where the grey area for GACL ends. Despite the jetty of LT becoming operational by end-September, it is highly unlikely that it will fuel a price war for the simple reason that the entire freight costs have to be borne by the supplier. It is then logical to believe that LT would opt for the better margins, as a price war would benefit neither GACL nor LT. Besides, GACL is self-reliant for power resulting in a saving of Rs 60 crore for the year, while LT has to rely on the grid. But even accounting for a worst case scenario, where in GACL would achieve a net profit CAGR of 5 per cent over the next five years starting from 1998-99 and assuming the cost of equity to be 22 per cent, the growth adjusted P/E works out to be just 9. Thus while the short-term outlook may not be very exciting, at the Rs 180 levels the stock seems to be attractivelypriced. Newsreports indicate than MTNL is all set to bag the Chennai circle for operating basic telephony services. Moreover, MTNL in the near past had decided to bid for operating basic services in Tamil Nadu and West Bengal. However some grey areas pertaining to the issue, still remain. For instance, currently there is a revenue sharing agreement between MTNL and DoT, under which 25 per cent of MTNLs revenue accruals are supposed to be paid to DoT. Therefore it can be argued with some degree of truth, that competitive forces between DoT and MTNL are defunct to some extent. This argument holds water, particularly if one considers that both MTNL and DoT have near identical work practices and face the same set of operational constraints. Interestingly, the near future could well see the DoT corporatised and renamed as India Telecom, which raises a question mark over the future of all those employees of DoT on deputation with MTNL. Especially those that have been operating DOTs Chennaicircle, which is to be handed over to MTNL. More importantly, if MTNL were to bag the Tamil Nadu licence also, this would clearly give rise once again to a monopoly situation which is undesirable. All of which means that there is a case for including another private operator in areas where MTNL and DoT currently operate. This should undoubtedly go a long way in ensuring true competition. However, MTNL with its tie-ups for setting up basic infrastructure networks, definitely enjoys a competitive edge. Thus, would it not be in the interest of the nation to ensure that competitive market forces are allowed to take their own route, which would ensure that the consumer once again comes up trumps. Emcee (With contributions from Manish Saxena, Urmik Chhaya and AG Krishnan) Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CALCUTTA, Aug 31: India Foils, of the Williamson Magor group of companies, has sought the help of a merchant banker in drawing up a strategy to tackle the companys interest burden, which will include restructuring its debt portfolio. The company, however, has not identified the merchant banker. Addressing shareholders at the companys annual general meeting on Monday, chairman BM Khaitan said that the mounting interest burden of Rs 42.01 crore (Rs 23.04 crore previous fiscal) was of paramount significance and the company would have to devise strategies to bring it down. The merchant banker is expected to draw up a blueprint shortly, he added. We are looking at the equity route too, but that would come about at a time when the markets are the most appropriate, he said. The company might adopt the preferential allotment route if desired, he stated. Moreover, the company was also planning to move out of certain investments. Khaitan said that the company had to suffer over-capacity in the foil industry. This was coupled with abnormal situations prevailing in the money and capital markets during 1997-98 which caused additional interest costs and depreciation charges to the new foil plant of the company at Kamarhati. This led to a decline in the companys profits, resulting in a net loss of Rs 3.88 crore. The companys debt burden had shot up to Rs 451.15 crore in 1997-98 from Rs 353.88 crore in the previous year. A low import duty of 20 per cent resulted in substantial import of foil from South East Asia and the Middle East. India Foils was able to maintain its sales at Rs 319 crore in 1997-98 against Rs 309 crore in the previous year. Profit before interest and tax was at Rs 48.83 crore. The companys metal demand is about 1100 tonnes per month, of which it domestically procures about 700-800 tonnes from Nalco or Hindalco. The rest is sourced from imports. About 250 tonnes of metal is available from scrap. Its new foil plant at Kamarhati was optimised during 1997-98 and the unit produced wide 6micron ultra light gauge foil, which is primarily used in cigarette foil packaging. The companys Hoera plant in the backward area of West Bengal achieved over 90 per cent capacity utilisation both in production and foilstock. The implementation of the intermediary rolling mill project at Hoera to augment capacity of foilstock manufacturing was kept in abeyance owing to depressed market situation. It will be done in the later part of the current fiscal. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: Forfaiting in India is expected to take off in a big way over the next two years, said Ian Guild, advisor to Standard Bank of London. Guild expects the market for forfaiting in the country to touch at least 100 million over the next few years. Standard Bank, through its co-operation partner in India, Triumph International Finance India Ltd, is the first organisation to undertake forfaiting in India apart from Export Import Bank of India. Standard Bank and Triumph are currently holding a series of seminars across the country to educate exporters on the benefits of forfaiting. Though forfaiting has been allowed in India by the Reserve Bank of India for over five years now, exporters have not shown much interest in it. Forfaiting allows exporters to explore new markets and new customers that were never considered earlier, or even enhance business with existing customers without increasing credit risks. Forfaiting, or without recourse financing, is a method of trade finance whereby theforfaiting bank purchases, on a without recourse basis, unconditional debt obligations arising from the supply of goods and services. By using forfaiting, exporters are able to eliminate all types of risks from the transaction. Forfaiting also enables exporters to be financed to the extent of 100 per cent of the receivables without any retention percentages. Exporters can also avail of financing at a cost which is comparable to the cost of similar financing available to competitors in other countries. Whenever the transaction risks are high, financing costs of the bidders for such transactions could be high. The discount fees levied for forfaiting services depend on the risk perceptions of each country. On an average, there is a 550 basis point spread over Libor between countries that are high risk and those that are low risk, Guild said. The size of the global forfaiting market has been pegged at 40 billion and has been growing over the past six to seven years at the rate of 15 per cent annually. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: The State Bank of India has finally decided to restructure its seven associate banks that were earlier kept out of the brief of global consultancy firm McKinsey Co which scripted the recast strategy for the countrys largest commercial bank. Confirming the development, the banks deputy managing director and head of associate banks SN Sawaikar told The Financial Express . We have decided to appoint a consultant to recast the associate banks. We need to look at the associate banks internal structure, relationship among seven associates as well as relationship with the parent. Sawaikar, who spearheaded the implementation of McKinsey recommendations in 1995-96, called it a day on Monday after a 37-year stint with the bank. We have constituted a task force to look into the synergies in operations of the associate banks. Once the task force submits the position paper, we will appoint a well-known consultancy firm for restructuring the associates, Sawaikar said. The task forcecomprises managing directors of three SBI associates -- State Bank of Saurashtra, State Bank of Maharashtra and State Bank of Indore. The bank has already kicked off an exercise to exploit the synergies of the group without disturbing the existing structures. To start with, it has decided to merge the forex and domestic treasuries of the associate banks, set up credit and investment committees and create a common human resources pool for placement in associate banks. We have also given operational freedom to associate banks in many areas. They are now free to fix lending and deposit rates, Sawaikar said. Restructuring of the associate banks has been a sensitive issue on which the State Bank has been deliberating for quite a few years. While a section of the associate banks has been clamoring for autonomy and operational freedom, there have been talks of merger to avoid competition. The State Bank has been weighing the pros and cons of merging the associate banks with the parent bank to add to itsbalance sheet strength as well as merging the associate banks to create another big bank. Things are not yet clear. If the government decides to accept the Narasimham Committee recommendations and wants to create a bank of international size, then the associate banks may be merged with the parent as the increase in size raises the risk-taking ability, Sawaikar said. The combined branch network of the seven associate banks is close to 4,000 and the asset base is over Rs 50,000 crore. State Bank of Hyderabad, Patiala, Bikaner Jaipur and Travancore are comparatively bigger in size while State Bank of Mysore, Indore and Saurashtra cover smaller regions. A few associate banks tapped the capital market last year with maiden equity issues in a bid to boost their capital adequacy ratio (CAR). Some of them also floated subordinated debt issues to lift the CAR. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, August 31: Air-India is a small, aged airline. It urgently needs to modernise and enlarge its fleet. So the commission has recommended that the government provide it immediate equity support of Rs 1,000 crore (taking up the total equity to Rs 1,154 crore) and issue new shares providing 40 per cent stake to a strategic partner (consortia of airlines and investors), with the proviso that 25 per cent brought in should be held by local investors. The strategic partner will have a crucial role in reviving Air India. Even so, the reduced government stake will be large. And the private ownership will be hefty. The issue then is whether the strategic partner (necessarily one or more foreign airlines) will bite the proposed offer--a difficult prospect since they are giving Air India a run for its money. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. BEIJING, Aug 31: China has warned currency punters to desist from speculating on the yuan and the Hong Kong dollar saying speculators could end up burning their fingers in the forex markets. Rumour mongers dare not overestimate their strength. They know they can never manipulate the yuans exchange rate through rumours, the official China daily business weekly quoted Li Guobin, a senior economist in the Chinese cabinet. If international currency speculators dare to attack the Hong Kong dollar, Beijing will respond to any request of the Hong Kong government for a helping hand to defeat them, said Li, a member of the Chinese state council. Assailing international currency speculators who tried to wreck havoc on the Hong Kong dollar (pegged to the greenback), Li said, Rumours of a possible yuan devaluation are fostered by some fund companies seeking quick profits. They plan to make use of the rumours of devaluation of the yuan to ruin the confidence of Hong Kong residents effort to stabilisethe stock market there. Any conspiracy to destroy the Hong Kong-US dollar pegging system will never succeed, he said. Fates of the yuan and Hong Kong dollar are in the hands of the Chinese people and will never be changed, Li said as the Hong Kong administration last week bought shares heavily in a bid to stabilise the stock market. Li said rumours of Chinas devaluation had escalated recently following the downward pressure on the Japanese yen but reiterated the statement made earlier by premier Zhu Rongji that China would not resort to competitive devaluation. Last week prime minister Atal Behari Vajpayee had warned Beijing against devaluation of its currency following the east Asian crisis and said this would be prove counter-productive to its economy as well as that of the region. Li alleged that black market currency traders had been spreading rumours to make a quick buck. These companies are liars with an axe to grind, he said. It is believed that overseas liars could create moresensational rumours in the future to further their sinister intentions on speculation, he said noting that speculators were predicting that China would not meet its growth targets of eight per cent set for 1998. Li Fuxiang, deputy director of the state administration of foreign exchange, said it will be easy for China to maintain the stability of the yuan for the next one or two years. Li Guobin said Chinas financial health was stable and any rumours on Chinas economic decline could be scotched by simply analysing the hard currency supply and demand. The foreign exchange supply in China includes the state foreign exchange reserves, foreign exchange assets of financial institutions and the hard currency assets of enterprises and families, amounting to US220 billion. The annual demand for foreign exchange only amounts to US60 billion, including US40 billion to meet the requirements of three months import payments and US20 billion for foreign debt repayment. Thus, regardless of the countrysgold and silver assets, the supply of foreign exchange in china is US160 billion greater than the demand, he said. The transaction volume of black market only accounts for less than 0.01 per cent of its foreign exchange transactions and will not have a strong impact on the countrys foreign exchange supply, the officials said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Aug 31: The Centre has launched the Kar Vivad Samadhan Scheme to recover a portion of the Rs 30,000 crore locked up in about 6.5 lakh cases pending at various stages of disputes and eligible for voluntary settlement. Launched jointly by Central Board of Direct Taxes (CBDT) chairman Ravi Kant and chief of the Central Board of Excise and Customs (CBEC) SD Mohile on Monday, the scheme, which provides a host of incentives for voluntary settlement of disputed cases, will remain open till December 31. However, for both direct and indirect taxes, the scheme excludes cases where there has been prosecution or conviction for concealment. Any person against whom prosecution has been instituted under Fera, NDPS, Tada, PC Act, Trial of Offences Relating to Transaction in Securities Act or Chapter 9 or 17 of IPC will not be covered under the scheme. It shall also not include those cases where no appeal is pending. Addressing a press conference on the occasion, CBDT chief Ravi Kant said that scheme soughtto provide quick and voluntary settlement of tax dues outstanding as on March 31, 1998, under various direct and indirect tax laws. In case of direct taxes, as much as Rs 42,000 crores was locked up in litigation in various cases, he said adding that about Rs 20,000 crore was covered under the scheme involving about 5 lakh cases. In case of indirect taxes, Mohile pointed out that about Rs 10,000 crore was pending in disputes and a large amount was recoverable under the scheme. The amount is locked in about 1.5 lakh dispute cases with various wings of the department of revenue. The scheme, which was being launched after the success of the Voluntary Disclosure of Income Scheme (VDIS) 1997, offers incentive by way of payment of outstanding tax arrears at reduced rates, waiver of interest and penalty and immunity from prosecution. On his part, the taxpayer will be required to withdraw appeals pending before various appellate authorities and courts. Under the direct tax enactments, it has been clarified, thescheme is available for taxes determined on or before March 31, 1998 which has remained unpaid on the date of declaration. Tax payer will be required to pay tax calculated at the current rate for various enactments. Ravi Kant said that it would be 35 per cent for the companies and 30 per cent in other cases. In case of direct taxes, only 50 per cent of the duties in arrears will be needed to be paid. The penalty and interest included in the tax arrear will be waived. If the tax arrear comprises only interest or penalty, the waiver will be to the tune of 50 per cent thereof. For demands relating to search and seizure cases the taxes are to be paid at a higher rate of 40 per cent or 45 per cent under the Income Tax Act and at similar differential rates under other direct tax enactments. The scheme is a package covering the entire demand pertaining to a given assessment year. The assessee has to opt for settlement on the basis of the entire unpaid demand and there will be no scope to settle on the basis ofindividual issues in relation to an assessment year. In case of indirect taxes, CBEC chief Mohile said that where the tax arrears comprise fine, penalty or interest but do not include duties or cess the taxpayers shall pay 50 per cent of such fine, penalty or interest. He added, the scheme shall also be applicable to credit of duty (Modvat), drawback of duty and any amount representing duty. He added that, in cases where the tax arrear comprises duties/cesses whether or not it also involves fine, penalty or interest the payment would be 50 per cent of the duties/cesses due or payable on the date of making a declaration, and the fine, penalty or interest would be completely waived. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: The Reserve Bank of India has directed banks not to capitalise the broken period interest paid to the seller as a part of the cost of acquisition of government paper, but treat it as an item of expenditure under the profit and loss account as per Accounting Standard 13 (AS 13). The directive targets public sector banks which generally capitalise the interest accrued as a capital cost for tax purposes. It is observed that some banks capitalise the broken period interest (interest accrued on the securities purchased up to the time of acquisition) included in the cost price on the ground that such accrued interest paid to the seller at the time of purchase is not recognised as a revenue expenditure for tax purposes, the RBI circular -- issued in the first week August -- stated. For example take the case of a security issued by the RBI at Rs 100 at a coupon of 12 per cent payable semi-annually. Bank A sells the security at Rs 100 to Bank B after three months. Bank B, which has to pay Rs 3to Bank A after six months, capitalises this expenditure and treats it as capital cost purely for tax purposes. The RBI now wants the bank to treat the interest outflow on behalf of Bank B as a revenue expenditure. The RBI has said that the accounting treatment does not take into account taxation implications and hence banks will have to comply with the requirements of the income tax authorities in the manner prescribed by them. According to the RBI, the matter has been examined and it has been decided to bring about uniformity in the accounting treatment of broken period interest (both foreign and private sector banks do not capitalise the interest outgo) on government securities paid at the time of acquisition. It has told banks to comply with accounting standards prescribed by the ICAI. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CALCUTTA, Aug 31: The Dunlop board has listed a number of legal suits it is facing at present including an eviction suit filed against the company to vacate its office premises at Vijaywada. The board of directors was informed that the high court at Hyderabad had directed the company on June 23 this year to vacate the premises within two months and pay damages within six weeks. The other cases considered at the board meeting were: Application under Section 138 of the Negotiable Instruments Act, 1881, before the Metropolitan Magistrate at Calcutta by RK Swamy/BBDO Advertising (P) Ltd on dues of Rs 13 lakh. The next date of hearing is on September 7, 1998 Winding-up application filed by Nidhish Transport Corp for non-payment of dues of Rs 37 lakh. The proceedings have been stayed Application under Section 138 of the Negotiable Instruments Act, 1881, before the Calcutta Metropolitan Magistrate by JG Finance Ltd on their claim of Rs 6.21 lakh. The hearing is slated for September5. Apart from these, the union at Ahmedabad had filed a case against the company for non-payment of wages and summons have been issued by the metropolitan magistrate. The joint labour commissioner at Chennai had issued a show-cause notice as to why a certificate under Section 33C(1) of the Industrial Dispute Act of 1947 should not be issued for recovery of wages due to the workmen. The Tamil Nadu government had also issued an order under Section 10(3) of the ID-Act prohibiting continuance of lockout at the Ambattur factory. Against this move, the company had obtained a stay for four weeks from the Chennai high court. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Aug 31: The Disinvestment Commission has recommended that government holding in Air India be scaled down to 40 per cent in two stages and the government should divest completely through a trade sale in Central Electronics Limited (CEL). In its eighth report released on Monday, the commission said in the first stage, 40 per cent equity in the airline should be divested to a strategic partner, which should be a consortium of airlines and investors with at least 25 per cent of the consortiums equity coming from Indian investors, the commission has said. Subsequent to the first round of disinvestment, where government holding will be scaled down to 60 per cent, the government should thereafter disinvest a further 20 per cent of the total paid-up capital by offering 10 per cent to domestic institutional investors at the price paid by the highest bidder for the shares. The remaining 10 per cent must be hawked to retail investors and employees at a discount, the commission has recommended. Any sharesnot taken by retail investors and employees may be offered to domestic institutional investors, it adds. As AI is in financial difficulties, the government should pump in Rs 1,000 crore in AI taking its equity to Rs 1,154 crore. The strategic partner can be selected through global competitive bids through issue of fresh equity shares of the face value of Rs 770 crore. This would enhance the paid-up capital in AI to Rs 1,924 crore, the commission has recommended. Speaking about the selection of partner the commission says that it should be done through global competitive bidding from among the pre-qualified bidders. The pre-qualification of bidders should be based on their financial, technical, marketing and managerial capabilities and commitment for AIs fleet expansion. A shareholder agreement providing for an appropriate share in the management to the strategic partner would also be necessary, the commission says. Speaking at the press conference while releasing the report G V Ramakrishna, chairmanDisinvestment Commission said there are no restrictions on investment in an international airline like Air India, the current aviation policy permits foreign equity participation in Indian aviation companies upto 40 per cent, he said. According to the commission, AIs turnaround is critical to reduce its debt servicing obligations. The commission expects AIs losses in 1998-99 to be about Rs 340 crore. To tackle its haemmorage AI is seeking Rs 2,000 crore from the government to repay costly working capital loans amounting to Rs 1,000 crore. And it requires Rs 500 to Rs 600 crore to refurbish fleet and assets. At the current level of financial performance, AIs net worth will be wiped out within the next two years and is likely to turn into a sick company. The continuation of AIs losses without significant improvement in operating efficiency will necessitate repeated financial support in the future, the report says. Air India has welcomed the suggestions, according to AIs spokesman, Lessergovernment control has helped airlines all around the world. The disinvestment will benefit Air India also. The financial help in the form of Rs 1000 crore of equity will prove to be most helpful, he said. The commission is of the view that the government should sell completely in Central Electronics Ltd as it is grossly overstaffed. CEL recorded a net loss of Rs 0.6 crore in 1996-97 while it had an operating loss of Rs 0.8 crore. The commission is of the view that if manpower reduction cannot be achieved in the company CEL should not be allowed to continue in the public sector. The government should divest completely in CEL through a trade sale, the commission has said. Speaking about the governments intentions to disinvest in Indian Oil Corporatin, Container Corporation, Videsh Sanchar Nigam Ltd and Gas Authority of India Ltd, he said, the government should not rush through the divestment in depressed market conditions. Disinvestment should not be rushed through because of budgetarycommitments. The market conditions have to be kept in mind for optimum realisation of share value, Ramakrishna said when asked about the governments plans to start the disinvestment process in September. If the government is keen to go ahead with disinvestment, they should go ahead with strategic sale of PSUs instead of global depository receipts (GDRs) at a discount, he said. Assailing the governments disinvestment programme he said, It was more than a year since the cabinet decided to sell stake in four state-run units nothing has happened so far. SBI Caps to scout about for ITDC advisor Strategic partner on sufference Air-India is slated to become sick in two years. To revive it, the government will have to infuse massive funds (Rs 17,500 crore-plus) in the near term. The over-stretched fiscal deficit just cannot foot the bill. Air-India is a small, aged airline. It urgently needs to modernise and enlarge its fleet. So the commission has recommended that thegovernment provide it immediate equity support of Rs 1,000 crore (taking up the total equity to Rs 1,154 crore) and issue new shares providing 40 per cent stake to a strategic partner (consortia of airlines and investors), with the proviso that 25 per cent brought in should be held by local investors. The strategic partner will have a crucial role in reviving Air India. Even so, the reduced government stake will be large. And the private ownership will be hefty. The issue then is whether the strategic partner (necessarily one or more foreign airlines) will bite the proposed offer--a difficult prospect since they are giving Air India a run for its money. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, Aug 31: Godrej Soaps has roped in international consultants McKinsey Co and Arthur Andersen to formulate strategic steps for its subsidiary Godrej Agrovet. Godrej Soaps holds 57 per cent stake in Godrej Agrovet. McKinsey will advise Godrej Agrovet on how to make its three-year-old poultry business more profitable, while Arthur Andersen will give its recommendations on broader issues like cost reduction and business management leading to improved profitability. According to Godrej Agrovet chief executive SL Anaokar, the poultry business, which is at present not profitable, will certainly turnaround with the implementation of certain positive steps. The company has appointed these consultants looking at the bright prospects offered by the poultry business in India. The company has already made its presence felt in markets like Bangalore and Kerala with its processed chicken brand--Godrej Real Good. We have been experimenting with the poultry business for the past three years. Now, we haveto see how to make this a more profitable one by expanding into other markets, Anaokar said. These consultants will also advise the company on how the profitability can be enhanced. While poultry is a fairly new business for Godrej Agrovet, the company is also present in the aqua-feed business which is large. However, the companys main activity is in cattle feed and poultry feed. Godrej decided to go in for forward integration and diversified into processing and marketing chilled broilers under the brand of Godrej Real Good. During 1997-98, Godrej Agrovet posted a net profit of Rs 18.96 crore on a turnover of Rs 241 crore, compared with a net profit of Rs 14.18 crore on a turnover of Rs 216 crore in the previous year. Turnover from the cattle and the broiler feed segments, although higher than the previous period, was affected during 1997-98, due to sluggishness in the industry growth and poor raw material prices. The aqua culture feed sales also suffered as the area under shrimp cultivation droppeddrastically as a result of the Supreme Court verdict prohibiting aqua culture within 500 meters of the coastal regulatory zone (CRZ). The companys agro-products division witnessed a 13 per cent growth. Total volumes in animal feed increased to 3.3 lakh tonnes from 3.28 lakh tonnes last year. The company also exports grapes to the United Kingdom. It has also made marginal exports of cattle feed and agriculture products. Godrej Agrovet is in the process of setting up a five tonne per hectare capacity oil palm mill at Eluru in Andhra Pradesh. The mill is expected to be commissioned by early 1999. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CALCUTTA, Aug 31: The West Bengal government has invited Itochu Corporation of Japan to develop industrial growth centres in the state. Bidyut Ganguly, the West Bengal minister for commerce and industries, told members of the Merchants Chamber of Commerce here on Monday that he held preliminary discussions with the representatives of Itochu during the day. The details of the project are yet to be finalised. Itochu played significant roles in the development of some good industrial development centres in the country. So I invited them to develop one in the state. Talks are in the preliminary stages. The size of investment or the locality are yet to be finalised, Ganguly said. However, he seemed displeased with Itochus insistence on participation by other private parties. They want the involvement of other private organisations. This may not be possible and total private participation may not be allowed. These minute details can be discussed later, he said. Ganguly also assured the industrialistspresent at the seminar that a new industrial incentive policy is likely to be announced by the state government by the end of this year. The current policy was extended for six months after expiring on March 31, 1998. We are working on a new incentive scheme which will be announced by the end of this year. All benefits, at par with national standards, will be offered to industrialists willing to invest in the state. Similar to the previous scheme, the new one will extend the same facilities to sick units willing to be revived, Ganguly said. According to him, West Bengal received 1,726 investment proposals between 1991 after the new industrial policy was announced and March 1998. The Rs 47,621.72-crore proposals would create direct employment for 3.79 lakh people. Already 253 proposals have been implemented. Production has started at a cost of Rs 7,264 crore. Another 82 proposals are under construction. I do not think any other state has so many units coming up, the minister said. Birendra Agarwal, the president of Merchants Chamber of Commerce, said only 35 projects with Rs 408-crore investments took off in 1997-98. While congratulating the state government for the remarkable improvement in power generation, Agarwal also mentioned the delay in getting power connections from the West Bengal State Electricity Board. He also discussed the non-availabilty of suitable land for new projects. Acquisition of farm land for conversion into industrial site is a long process. Any project which has to be commissioned within a given timeframe to avoid costs and time overrun suffers due to this factor. There should be precise and time bound guidelines for this purpose, he said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Aug 31: The Swadeshi Jagaran Manch (SJM) has flayed prime minister Atal Behari Vajpayee for his recent move to constitute economic and trade advisory councils. Charging the government with staffing these councils with persons who are hostile to the very idea of Swadeshi, the Manch has also expressed concern over the recent top-level changes in the bureaucracy. In a salvo aimed at top decision makers, the Rashtriya Swayamsevak Sanghs (RSS) key economic arm has expressed serious concern over, the retention, promotion and recognition of officers who are habituated to compromise national interests. Addressing media persons here, SJM National Organiser Muralidhar Rao attacked the BJP-led governments decision to allow 100 per cent foreign direct investment (FDI) in tobacco and liquor industries and charged the Vajpayee government with side-stepping the Swadeshi agenda. Many of the policy decisions in the past five months have been anti-swadeshi and anti-people, he said, adding that thedecisions were in complete contrast to the BJPs declared stand. Citing instances of such decisions, Rao lashed out at the recent award of Neyveli Lignite Corporations power plant extension project to the Italian firm Ansaldo Energia. He said that BHEL, which was the second highest bidder for the Rs 1,600 crore project, had ample experience of executing such projects. Ignoring BHEL who had executed the first phase of the project is a costly mistake for the nation, he added. Other government decisions, including the inclusion of over 380 items in the open general list (OGL) and Maruti-Suzuki deal show that the government was not committed to Swadeshi policy, said Rao. The SJM has also opposed the policy of signing counter-guarantee agreements for power projects. This is another instance of the government following short sighted policies, while as no government in the world pursued such policies. The Manch also criticised the government for not lifting the ban on sale of common salt, saying iodinedeficiency is prevalent only in some areas. This argument is only a ruse devised by a large business lobby said the statement. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: Consumer electronics major Videocon International will buy Philips Indias Salt Lake TV plant located in Calcutta for an undisclosed amount. According to a press release issued by Philips India, the two companies have reached a broad understanding on the sale and transfer of Philips consumer electronics factory. The two have entered into a memorandum of understanding to record the broad and indicative terms and conditions for the sale of the undertaking. According to the release, a sale agreement with detailed terms and conditions is being worked out. The agreement between the two companies puts to rest rumours about an impending buyout of the Salt Lake factory by Videocon, which was time and again denied by Philips officials saying that the plant will not be sold to any of its competitors. In fact, at the companys annual general meeting, company chairman DN Ghosh said, We will also not sell it to one of our competitors or any other promoter. Speculations about an impending saleof the Salt Lake factory of Philips had been rife ever since the company decided to move all its manufacturing activities to Pune. Philips vice-chairman and managing director K Ramachandran at the companys annual general meeting had said that a merchant banker had been appointed to help the company work out the various options for the plant. The company had been considering an outright sale of the plant too. We have appointed a group of individuals to help us in finding working out different options for the colour TV factory at Salt Lake. The final decision will be taken by the board of directors, Ramachandran had stated at the AGM. The Salt Lake plant employs about 340 workers, down from the 660-odd it used to employ some time ago. The reduction in work force was achieved through a voluntary retirement scheme introduced as part of the companys restructuring exercise. The plant is said to have an installed capacity of 38,000 colour television sets a month, however, production has been nowhere nearthe capacity levels. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Patna, Aug 31: The impasse between the Bihar State Electricity Board (BSEB) and the Coal India Ltd (CIL) has been broken with both sides agreeing to settle outstanding issues bilaterally. Addressing a press conference here on Monday, Bihars energy minister Jagdanand Singh said, according to the agreement reached at a meeting between top state and coal ministry officials on Sunday, Coal India subsidiaries will pay Rs 100 crore to BSEB towards arrears up to March 1997. Singh said the railway ministry has been requested to make an early payment of Rs 224 crore to the state government towards pilferage of coal during transportation. BSEB had earlier accused Coal India of not paying dues amounting to Rs 1,734.81 crore and threatened to disconnect power supply to the Loyabad coalfields. On the other hand, Coal India had stopped supplying coal to the Tenughat Thermal Vidyut Nigam Ltd. Union coal secretary SS Boparai and Bihar chief secretary SN Biswas held an emergency meeting here recently in which it wasdecided that both BSEB and Coal India will restore supply to each other. It was also decided that both sides will meet again after 15 days to settle their claims mutually. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, August 31: The Prasar Bharati (Broadcasting Corporation of India) Amendment Ordinance promulgated on Saturday reverts the ownership of the corporation, including Doordarshan and All India Radio, with the union government. The ordinance, promulgated in 1997 under the aegis of former IB minister S Jaipal Reddy, had transferred the assets to the corporation on perpetual lease on payment of a nominal fee of Re 1 per annum. The latest ordinance states that the Doordarshan (DD) and All India Radio (AIR) assets would be transferred to the corporation on such terms and conditions as may be determined by the central government and their book value would be treated as capital provided by the central government to the corporation. The union IB minister Sushma Swaraj had earlier stated that government weigh both the options of equity and grants-in-aid before such transfer takes place. Insertion of the 22-member parliamentary committee however, would do away with the possibility of ascribing a PSUstatus to the corporation in which case it will not be liable to taxation. The election for the parliamentary committee to which the corporation will be answerable, is to be held during the next session of the parliament. According to what Swaraj had earlier said the committee would have representations from the political parties in the same proportion as the parliament. Similarly, the ordinance also seeks to set up the a Broadcasting Council, which would oversee the activities of the public service broadcasters and make recommendations as well as receive complaints. There are also speculations that till the Broadcast Authority of India (as proposed by the pending Broadcasting Bill) is constituted the Broadcasting Council will assume a similar role for the private satellite channels. Significantly, the ordinance has also cleared the decks for the appointment of the member (finance) and member (personnel) as permanent members of the BCI board. Similarly, the new ordinance, which has brought back theprovision of setting up more than one recruitment board (to be comprised wholly of persons other that the members, officers and other employees of the corporation) for the purpose of appointing officials such as DG (DD), DG (AIR) and similar officers may help in initiating the process of appointing a new DG for DD. DGs post in Doordarshan has been lying vacant since the last acting-DG K S Sarma vacated post soon after the constitution of the current BCI board. The former Prasar Bharati CEO S S Gill is filing a petition in court on Tuesday seeking injunction against the Prasar Bharati Ordinance 1998. His tenure came to an end with the new ordinance fixing the CEOs age at 62. Gill however, feels that the ordinance is directed towards his disqualification and he is on a strong legal ground to continue for the full six years, the term for which he was appointed. The former IB secretary is determined to take the current government to task and gearing up for a royal show-down. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, Aug 31: The union agriculture minister Sompal has left for Nairobi to inaugurate the industrial technology exhibition, Indiatech 1998, being organised by the Engineering Software Council. The exhibition will focus on technology suitable to small and medium enterprises. It will help in increasing interaction at the official and business levels with the African countries. India is the seventh - largest exporter to Kenya and amongst its top 10 trading partners. During his five-day visit, Sompal will also meet the Indian business community in Kenya. The minister has directed the release of Rs 21.61 crore to Bihar as advance of two installments of the centres share of the Calamity Relief Fund. This decision of the government was taken on account of the recent floods in the state. These two installments are normally due for release to the state government on October 1, 1998, and January 1, 1999. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, Aug 31: The Mumbai Metropolitan Region Development Authority (MMRDA), headed by chief minister Manohar Joshi, will contribute Rs 300 crore as share capital towards the much debated Shivshahi Punarvasan Prakalp Ltd. This comes even as the fate of its dead investment of Rs 819.59 crore in various state government undertakings hangs in the balance. Shivshahi Punarvasan Prakalp Ltd (SSPPL) is a special purpose vehicle floated by the state government to provide two lakh free houses to city slumdwellers under the Slum Rehabilitation Scheme by December 1999. MMRDA, a nodal agency for carrying out infrastructural development in the Mumbai metropolitan region, agreed to contribute Rs 300 crore to the SSPPL following Joshis directives, although it is unsure of recovering Rs 819.59 crore from state undertakings. MMRDA has made this investment which amounts to about 35.63 per cent of the total funds of Rs 2,300.57 crore available as on August 1, 1998. The dead investment has been made in the followingundertakings: City and Industrial Development Corporation - Rs 265 crore, Maharashtra State Cooperative Cotton Growers Marketing Federation - Rs 201.27 crore, State finance department - Rs 160 crore, Maharashtra Water Authority - Rs 100 crore, Maharashtra State Financial Corporation - Rs 76 crore, Maharashtra State Small Industries Development Corporation - Rs 14 crore and Maharashtra Film State Corporation - Rs 3.32 crore. MMRDA has also provided Rs 531.53 crore however, it was confident of its recovery. MMRDA will be left with only Rs 1,281.58 crore excluding the dead investment of Rs 819.59 crore from the total funds available for various projects. However, MMRDAs requirement to provide assistance during 1998-99 will be Rs 1,381.63 crore which does not include the Rs 300 crore amount. MMRDA will also have to contribute Rs 83.41 crore and Rs 115.99 crore towards Megacity project and urban development project respectively. In addition to this, MMRDA will also have to make an investment in the Rs 6,433crore Mumbai Urban Transport Project - phase II and the Rs 900 crore Urban Rehabilitation Project. Moreover, MMRDA will also have to be party to the various other infrastructure projects with an investment of a whopping Rs 5,000 crore in the Mumbai metropolitan region. Top sources told The Financial Express that though MMRDA was solely banking upon the sale of land possessed by it to raise funds required for these projects, it had no other alternative but to sit quiet in view of slump in the real estate market. MMRDA is doubtful over raising necessary money required for various infrastucture projects in due course of time in the wake of volatile market situation, the sources added. Moreover, section 16 A of the Mumbai Metropolitan Regional Development Authority Act 1974 says, the Metropolitan Authority may, with the previous sanction of the state government and subject to such terms and conditions as the state government may impose, subscribe to the share capital of any company, or cooperative society, with a limited liability, established or to be established for providing any services in the Metropolitan region or any part thereof, which are directly or indirectly useful to the Authority in carrying out any of the duties imposed upon it by or under this Act or any other law for the time being in force. MMRDA sources however, said that providing free houses to city slumdwellers does not fall under the definition of providing any services as mentioned in the section 16 A. MMRDA fears that no way the much ambitious slums rehabilitation scheme to be implemented by the SSPPL will make profit. The sources said that according to section 24 A of the same Act, The Metropolitan Authority shall not and shall not be required to carry out any of its operation under this Act at a loss. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. The first steps towards direct industry participation in the governments decision-making process, through involvement of corporate chieftains, has caused debate. Some feel involvement of those rendered uncompetitive by globalisation will not push progressive policy-making. Others feel that the vast experience of the industry leaders of the past restraints will help the government prioritise much better. This is right. True, in the face of global forces senior Indian industrialists have been vocal in demanding protection and a level-playing field with giant MNCs. But that has not been the sum total of their reaction. Quietly, advanced management practices have been initiated within corporate behemoths, the results of which are yet to show because of a recession. This quiet revolution is still brewing, clearing cobwebs born of four decades of systemic inefficiencies. Tata Steel, which started with aggressive VRS programmes, has now appointed leading consultants to pare costs even as it braces forbone-crunching competition from south east Asian exporters. Aditya Birla group companies have gone for total productivity maintainance programmes, which have resulted in sharp rise in machine availability, production performance, and product quality in manufacturing. The Sundaram group, the southern auto-components giant, has started off an ambitious quest for the great zero: it is seeking to become a zero-defect, zero-time-loss, zero-customer dissatisfaction company. Almost every group has professionalised. At Reliance Industries, where the average age of employees is just 36, the average revenue per employee was up to Rs 77 lakh in 1997-98, against Rs 54 lakh the previous year, and average profit per employee was Rs 10 lakh against Rs 8 lakh. Almost every top company has either sharply pared investment portfolios or is in the process of cleaning up, as with the RPG group, ugly criss-cross holdings through multitudes of non-transparent investment companies. The Essar group has recruited industry toppers tohead its companies, and Ballarpur Industries has resolved its vexed succession issue by splitting operations. Bajaj Auto has improved design, and every employee there now wears the same uniform, a lesson learnt from a similar mass vehicle maker, Maruti Udyog. The list can go on, because Indian industry is busy re-equipping itself. The government will benefit from this spirit of introspection and action, and provided the arrangement precludes cronyism, can at least learn from the CEOs what to learn from globalisation. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. The financial year 1997-98 marked the year that the Kirloskar group, which prides itself on its engineering capabilities made a debut into the high end of the refrigeration and airconditioning industry with its joint ventures. While these businesses are through joint ventures with technologically strong foreign partners the Kirloskar groups holdings are through a group company Kirloskar Pneumatic. With the exception of the success that this company enjoyed through the launches of various products such as split air conditioning units (through Kirloskar OYL) and packaged units (through Kirloskar McQuay), last year has been a miserable one for KPL. The packaged air conditioning unit has bagged some prestigious orders in the first year of operations itself. And both the foreign principals are part of the 12 billion Hong Leong group. By design, Kirloskar Pneumatic seems set to emerge as a supplier of compressors to a clutch of joint ventures in various segments of the air conditioning business. Themanufacturing and marketing of the final product will be left to the JVs themselves. To this end it has entered into one more JV with an Italian company for manufacturing transport refrigeration equipment. This JV will directly compete with Carrier Transicold, the Indian subsidiary of United Technologies, USA, also a recent entrant. For Kirloskar Pneumatic, one fifth of its annual revenues comes from the non-airconditioning compressors business, which caters to both the manufacturing sector and to the oil and gas sector. Despite the boom in the oil and gas sector this business witnessed a slump due to the fact that there was an oversupply of compressors catering to this sector with most of the multinationals such as Ingersoll Rand, Atlas Copco and Chicago Pneumatic (CPI) offering competition. The dip in business witnessed by KPL was a little worse than what was seen by other companies such as Atlas and CPI. In KPLs case, the dip in revenues from this business was almost by 50 per cent as orders declinedwhile the fall in volumes was to the extent of 31 per cent. Its traditional strength has been in compressors for air conditioners. Despite the fact that the company has set-up capacities for manufacture of airconditioners itself (through the JVs) there has been only a marginal improvement in volumes. And to the extent that the company still sells its compressors to other manufacturers, its cash flows have been hurt due to delayed payments. Its other businesses dipped by similar or worse proportions. Power transmission equipment revenues fell by 31 per cent while gears for industrial and marine applications were down by 65 per cent and 70 per cent respectively. Volumes were also similarly lower. Overall annual revenues were lower by 25 per cent and operating margins fell to 9 per cent from 15 per cent in the previous year, which lead to a cash loss, for the year, of Rs 4 crore against a net profit for the previous year of Rs 6.7 crore. Given the emphasis that the company has put on the compressors divisionit is very unlikely that the current year will be much different, though the company has made some bold and optimistic statements about both holding onto its present margins as well as wiping out the carried forward losses. A major development for Kirloskar Pneumatic is the takeover of KG Khosla Compressors, an ailing and loss-making company. KG Khoslas manufacturing strengths are in air and gas compressors which will double the capacities available with KPL, in turn it will make the company one of the largest manufacturers of air and gas compressors in the country. But it is unlikely that there will be much of a beneficial impact on the fortunes of KPL immediately as the entire market for such compressors have shrunk, especially from the sectors such as textiles and chemicals. A lot will now depend on the success of the joint ventures that it supplies to. The Kirloskar Pneumatic stock is at the bottom of a long-term decline and currently trades at an eight year low. From the time of its rights issue inSeptember, 1990, until the present, the stock has steadily lost almost all of its market capitalisation. The stock is presently available at a little over 10 per cent of its then market price of Rs 80. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. (This is the concluding part of the article titled Delhi, Islamabad ape macho nations published in Mondays --31/08/98--edition) Should we now conclude from this episode which has filled the Indian people with such a conspicuous sense of glory that the India of ahimsa, of non-violence, of frugality, of ancient moral wisdom, has now finally been buried beneath the fall-out from the recent detonations in the Thar desert That the India of Gandhi should demonstrate its importance in the contemporary world by means of nuclear tests seems to be the final denial and the nullification of the tradition which earned the country independence 50 years ago. Are we now to write the last obituary of moral force, and to celebrate the enthusiastic embrace of a destructive and nihilistic real politik Governments, of course, always seek to silence opposition and to stifle critical voices by appeals to national security. The predictable riposte of Pakistan establishes the same balance of terror which, while it is supposed to have kept the peace in Europe during the Cold War, is perceived, with characteristic hypocrisy by the west, to be profoundly destabilising, when the same situation plays itself out in south Asia. National security offers, in any case, a strange kind of shelter to the 350 million or more Indians whose own insecurity, in terms of health, nutrition, livelihood and life itself, is only further undermined by the 15 per cent or so of government expenditure which is now being spent on this selective and highly volatile form of defence. Could it be that it is really a matter of national security, that the poverty, exclusion and marginalisation of so many people must be protected and perpetuated by nuclear weapons, their development inhibited, their education stunted, their life chances diminished In the light of all this, the bitter pleasure to be derived from observing the existing nuclear powers, with their curious moralisings, their synthetic indignation and contorted justificationfor their own monopolistic hold on weapons of mass destruction, becomes a sadly attenuated sentiment. The Indian government has little to fear from US sanctions: there is scant prospect that these will be deployed with the same earnestness with which the US has set about the pursuit of the people of Iraq. Sanctions in Iraq have, after all, been yet another weapon of mass destruction (destruction of health, of lives and of well-being), towards the banning of which there has been no crusade, no demonstrations or protests. India requires no such foreign visitations, for its own successive governments have imposed their indigenous form of sanctions upon their own impoverished people once again, in faithful conformity and in continuity with the example of their colonial predecessors. History thus repeats itself, cycles within cycles. In order for the Indian government to express its independence, it must abandon Indian traditions of non-violence, must emulate Western forms of dominance, and in the process, contribute to even greater levels of insecurity, not only in the south Asian region, but also for its own wanting people, who will soon discover, if indeed they do not know it already. that nuclear euphoria is a poor substitute for a full belly, that the draughts of national pride quench thirst less effectively than potable water, and that the whipping up of hatred for enemies, within or without, is a curious spiritual sustenance for those excluded from the basic necessities of even a half-decent life. Mumbai. It is late evening. On a piece of sacking on the sidewalk, three children are sleeping. A girl of about nine lies facing her brother, who is perhaps a year younger. Their knees are drawn upwards towards their stomach, and their heads touch, a tangle of dark hair. Between them sleeps a small child, two years old, utterly secure in the protective chamber formed by their vulnerable, utterly defenceless bodies. (Third World Network Features) Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CALCUTTA, Aug 31: Dunlop India has drawn up contingency measures to deal with a snowballing cash crisis. The company board finalised the plan at its meeting on August 18 in Mumbai. The board said several issues need to be addressed immediately. An urgent payment has to be made to West Bengal State Electricity Board, failing which electric lines at Sahagunj factory in West Bengal will be discontinued which will give rise to a serious law and order problem There are no funds to pay salaries and wages for July, 1998, which would spark a mass exodus of talent whom the company wants to retain The company will default in payment of quarterly interest falling due on September 9, 1998, to Mather Platt (India) Ltd on an intercorporate deposit It is learnt that the Dunlop board noted with concern the criticality of the situation and urgent need for mobilisation of funds to meet the units essential expenditure so as to keep the company running for few months till the operations wereresumed. Dunlops spokesman did not reply when The Financial Express sought clarifications on the issues. Dunlop slipped into the red with a loss of Rs 231.84 crore for the nine-month period to December 31, 1997, against a profit of Rs 5.14 crore to March 31, 1997. The company was referred to the Board for Industrial and Financial Reconstruction on January 14 this year and was admitted on June 22, under Section 17(3) of the Sick Industrial Companies (Special Provisions) Act of 1985. Dunlop submitted a two-phase revival strategy to the BIFR on July 29. The company did not circulate the plan to participating financial institutions and banks, although it was directed to do so by Industrial Development Bank of India, the operating agency for the scheme. The board noted that Dunlops consultant SR Jariwala had said that, in its reading of the BIFR order, the circulation of the scheme was not required. At the August 18 meeting, the board also took a number of other decisions to tackle the crisis. Sale ofproperty at Pune for Rs 2.2 crore, after obtaining the statutory approval of the BIFR To use the surplus from the Dunlop executive staff pension fund for meeting essential expenditure The board also proposed transfer of surplus funds from Dunlop employees gratuity fund to Dunlop management staff gratuity fund instead of amalgamating the two. The Dunlop board was informed that accumulated corpus of Dunlop executive staff pension fund was Rs 26 crore. However, future liability towards payment of pension was Rs 16 crore, leaving a surplus of Rs 10 crore. Since the pension fund was non-statutory, and the company paid the contribution out of its revenue, the actuarially determined surplus could be reverted to the company if tax authorities allowed the company to do so. The board proposed to carry out an actuarial valuation of the Dunlop employees gratuity fund for employees who had been promoted to the officer category and transfer the same to the Dunlop management staff gratuity fund. The boardnoted that it will not be able to realise royalty from Falcon Tyres Ltd for the use of Dunlops brand name since the it was adjusted against the companys business dues to Falcon Tyres. It was pointed out to the Dunlop management that the sale of raw materials which were approved by the board earlier, could not be made since there were no buyers. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. CALCUTTA, Aug 31: Dunlop India Ltd proposes to sell its land at Shivajinagar in Pune and use the money to pay the power bills of its sprawling factory-cum-residential complex at Sahagunj in West Bengal. The West Bengal state electricity board has threatened to disconnect power supply to the factory. The companys board met on August 18 in Mumbai to clear the sale of the Pune land, admeasuring 36,590 sqft vacant plot. Dunlop officials refused to comment on the proposed land sale. The tyremaker, which slipped into the red during the nine-month period to December 31, 1997, was admitted to the Board for Industrial Financial Reconstruction on June 22 this year. Dunlops two-phase revival plan, submitted to the BIFR on July 29, did not include the Pune land sale. The first phase had outlined infusion of working capital, a Rs 45-crore rights issue, sale of a property at Worli in Mumbai for Rs 60 crore and bank overdraft of Rs 45 crore for working capital. The company had said it will need Rs 45 crore to funda voluntary retirement scheme for 3164 employees. At the August 18 board meeting, it was pointed out that the company had already got offers for the Pune property, with one party quoting Rs 2.2 crore. The meeting was chaired by director RA Shah and attended by managing director PJ Rao, BS Mehta, Air Marshall (retd) PK Puri, V Prakash, RN Tripathy, KC Wazir and vice-president and company secretary RN Chakraborty. The board approved the sale of the property at Pune for Rs 2.2 crore, subject to the necessary statutory approvals including the approval from the BIFR. The board authorised PJ Rao to negotiate and finalise the terms and conditions or to delegate such powers to any officer in the group. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, August 31: The cellular operators are awaiting clearances from the Reserve Bank of India and other agencies to start offering international automatic roaming services to their subscribers. According to the operators, once the clearances are given to them, they will be able to start offering the service almost immediately. The Department of Telecommunications (DoT), a few months ago, had given the green signal to the cellular operators to offer domestic and international auto roaming services to their subscribers. However, international auto roaming services have not yet taken off as the operators are yet to get clearances from other agencies including RBI. For providing international auto roaming services, the operators in different countries enter into a bilateral agreement to support each others subscribers in their respective regions. So, when subscribers from India use their mobile phones in other countries, they are billed in rupees in India by their operator, thus reducing their dependenceon foreign exchange. The cellular operators, in turn, settle the difference (ie the difference between the bills of their subscribers in the region of a foreign operator and the bills incurred by the subscribers of the foreign operator in their network) at the end of a cycle on a bilateral basis. This settlement between the domestic and foreign operators will mean either an inflow or outgo of foreign exchange depending on the usage, for which the operators require clearances from RBI. Even while the operators are awaiting the necessary clearances, they have started tying up with cellular operators from other countries and some of them have also started testing their international auto roaming services. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, August 31: The Telecom Regulatory Authority of India (Trai) will announce the new telecom tariff structure within the next fortnight, chairman SS Sodhi told The Financial Express here on Monday. However, he declined to comment upon the restructuring of tariffs that Trai may effect. The new tariff rates were earlier expected to be announced by the August end. Trai has been holding open house sessions all over the country attended by the industry representatives. On Monday, Trai heard suggestions from the industry on the modalities for its funding requirements. Though the telecom industry has been pitching for a hike in the call charges across the board, some of the industry insiders who have been interacting with the Authority on the issue said that indications are that the local call charges may be increased, while a significant reduction is expected in the charges for STD and ISD. When the new tariffs are announced, you will see how much effort we have put in for taking all aspectsand opinions into consideration, said Sodhi, and pointed to the resource crunch faced by Trai. If not addressed, the lack of funds could severely cripple its future functioning. We may not be able to take on any further responsibilities in absence of funds, he said. Trais funding requirement is about Rs 26 crore, taking into account Rs 10 crore that it needs to keep in its general fund as contingency amount. It received only Rs 6.8 crore from the ministry of finance in 1998-99. With inadequate state financing, Trai has suggested certain mechanisms to fund its requirements which were discussed at Mondays meeting. As against a profit-based or per line charge, Trai proposes a uniform revenue-based levy on the service providers, as practiced in many countries. Initially, a 0.15 per cent levy on the basis and cellular operators will be adequate to meet its requirement, according to Trai. This is also stated to be desired by the ministry of telecom. Such a levy will cover all telecom providers asagainst the profit-based formula which may cover just Department of Telecom or MTNL. Also, such information on financial returns will be more easily available, Trai feels. The actual charge will, however, be imposed on the basis of financial data provided in the audited balance sheets of the providers. Trai has also proposed to charge a fee of Rs 5,000 for each petition and Rs 1,000 for each miscellaneous application submitted to it. A was expressed whether the CAG will agree to the proposed methodology of revenue-based levy. Instead, it was proposed to make the levy a part of the license fee itself. The funds thus collected could go towards forming a corpus for Trai. However, it was pointed out that since the remaining licenses for basic services will be granted on the basis of revenue-sharing, rather than bidding, it may not be a feasible idea. Also, the moratorium being demanded by the cellular operators and pagers companies for payment of license fees, if granted, will mean that Trai will not beable to raise the funds for a longer period. Some suggestions were made in this regard by those present at Mondays meeting which Trai will consider, Sodhi said. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: Maharashtra, which enjoys pre-eminence on the industrial front, continues to be a leader in the software exports also. The state has exported software worth Rs 3,500 crore last year, constituting more than half of the countrys exports of Rs 6,500 crore. The state boasts of an enviable 60 per cent share in the countrys hardware exports, state development commissioner Jayant Kawle said here on Monday. He was speaking on Maharashtras new information technology policy-opportunities for small and medium enterprises, organised by the Indian Merchants Chamber. Kawle said that the state government was committed to strengthen the IT sector and make the IT industry globally competitive. The mission of recently announced IT policy is empowerment through connectivity and its objective is to provide AAA connectivity (anytime, anyhow and anywhere). Kawle said that various fiscal and non-fiscal incentives have been given to the IT sector which includes permission in residential areas, provisionof 100 per cent floor space index on payment of 25 per cent premium for the IT parks to be developed by public institutions such as Maharashtra Industrial Development Corporation and City and Industrial Development Corporation. He said permission to use agricultural land for non-agricultural purpose will not be required for software industry in residential areas and software units will not require permission from Maharashtra Pollution Control Board. He informed that eligible IT units in A, B and C areas will be entitled to benefits in D areas under the Package Scheme of Incentives which will be modified to suit the IT industry and added that the IT package scheme will continue till the year 2000. Kawle said that though the government was unable to remove octroi on IT products, it has promised to refund it to the producers. However, he informed that electricity duty which is paid to the government will be waived on IT units. He said that property transactions in designated IT parks will be exemptedfrom stamp duty and there will be no stamp duty on leases and financial instruments of units in these parks. IMC vice-president Pradeep Chinai expressed concern over Indias low share in the world infotech market. He added that the size of the IT industry was Rs 18,016 crore in 1997-98 compared to Rs 13,434 crore in 1996-97. He said that with a correct strategy and focus on the IT sector, a double digit growth in GDP can appear to be realistic. IT is a sector which has the capability to make India one of the five economic superpowers in the world by 2020. Chinai lauded the state governments IT policy and said that the sops announced by the government would most certainly reflect well on the country. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. AHMEDABAD, Aug 31: Several global stainless-steel majors have given their consent to make presentations in latest applications of high-performance stainless steel in automotive, aeronautic, building and other industries at the first-ever global meet of its kind in the country to be held at Ahmedabad from November 5 to 8. The international conference-cum-exhibition, named Stainless98, has been jointly organised by Confederation of Indian Industry (CII) and Indian Stainless Steel Development Association (ISSDA). According to ISSDA president NC Mathur, Kawasaki Steel Corporation of Tokyo will make presentation in automotive exhaust system, Heinz H Parisar Alloy Metals Steel of Germany in prosperous coil products -- global trends, Hong Kong-based Avesta Sheffield Asia Pacific in architecture and Avestas Beijing-based on the application of super-austenitic stainless steel in hostile environment like nuclear reactors and off-shore drilling. Briefing newspersons here on Saturday, he said that NickelDevelopment Institute of Toronto and Steel Metals Market Research GmbH of Austria would present the world overview. Similarly, Indian majors like SAIl. ONGC, LT, Rail Coach Factory, Nuclear Power Corporation, Electrotherm, Mukand, Salem, Tetra Pak, among others, would present the latest trends on demand in application in the country. Jindal, who is also CEO of Jindal Strips Ltd, said the domestic production has increased consistently by around 15 per cent per annum from 20,000 tonnes in 1978 to 6 lakh tonnes today. He said 75 per cent of the production was still used in domestic utensils alone. CII Gujarat Council chairman Ramesh Wadhwani said it would be CIIs biggest ever exhibition anywhere in the country outside Delhi. CII deputy director Raju Krishnaswamy listed the latest applications of stainless steel in dairy, community kitchen, entire railway coaches and even wagons. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, August 31: Crisil credit assessment reports have provided the IPPs and their financiers a finer gradation amongst various SEBs in the country. It also offers a third party opinion on various factors impacting an SEBs finances. This criteria piece enumerates and explains the important factors that determine the rating agencys evaluation of an SEB. a) Industry and policy environment: The rating agency looks at the projected demand-supply gap, regulations governing SEBs and the political environment in the state as the major macro-economic and environmental factors critical to the performance of SEBs. Crisil believes that the state governments would continue to extend some support to SEBs, though the quantum, timing and nature of support could vary depending on the fiscal constraints of the state government backing the SEB. Any measures initiated by the respective government to improve the financial performance and give operational independence to SEBs in the statespower policy are viewed favourably. b) Market and service area: Rating agencies look at the SEBs consumer mix and its service area to arrive at a judgement of demand potential. The economic mix of consumers is assessed and the realisations from each of these consumer categories are examined for any trends. The rating agency also looks at the trend and degree of cross subsidisation among the segments to arrive at a judgement on sustainability of such a tariff policy. The rating agency evaluates changes in the mix over a period of time as an indicator of future average realisations, and views a diversified and balanced consumer base with cross subsidisation at sustainable levels as a positive factor. A track record of equitable tariff increases across the user segments gives comfort to the rating agencies. Crisil would take a favourable view of the SEBs which have already initiated the process of tariff reforms. c) Operations: The operational risk of SEBs is analysed on parameters likefuel supply arrangements, hydel:thermal mix, plant performance, environmental factors to judge whether the SEBs plants operate at efficient levels or not. The analysis includes : i) Fuel Linkage : The existence of dedicated and assured fuel linkages for the power stations is a positive factor in the rating agencys analysis. It looks at the receipt efficiency of fuel linkage - receipt efficiency of less that 90 per cent is considered unfavourable. It also considers the proximity of the fuel source from the plant and the reliability of the transportation system. ii) Hydel:thermal Mix: The source mix of power available to the SEB is compared to assess any possible variations in the supply and cost of pooled power. The larger the proportion of hydel generation of the SEB to the total power available, the higher is its generation susceptible to variation in rainfall. However, if the catchment of the hydel plant is a perennial water source (like snow fed river etc.) this is considered as apositive feature. iii) Plant Performance: The analysis focuses on the operating performance of the SEB on parameters like availability factor, plant load factor (PLF), transmission and distribution losses, auxiliary power consumption, station heat rate, personnel per MW of power, plant outages etc. The past trend of an SEB is looked at on the above parameters as a useful indicator. The fixed and operating cost structure of the SEBs plants are analysed on a per MW basis. Crisil also compares the operations of an SEB on the above parameters with other power utilities in India and abroad to assess the competitive position of the SEB on operating parameters. d) Completion of approved and ongoing projects: Crisil studies the pattern of financing employed by the SEB in financing the approved and ongoing projects and whether financing has been tied up. e) Management evaluation: Power supply and power tariffs being politically sensitive issues attract varying degrees of politicalinfluence on the companies operating in this sector. Crisil views the ability of the SEBs management to handle this pressure without compromising the boards interest as critical. The important areas of analysis of financial risk include analysis of accounting policies followed by the board, current financial position and future cash flows. Crisil has favourable opinion of the entities with conservative accounting practices. Though accounting guidelines for SEBs have been recommended in the Electricity Act, there is sufficient flexibility for SEBs to overstate their profits - a practice commonly adopted by most SEBs. Crisil compares the SEBs accounting policies with that of other utilities and with companies in other industries to assess the quality of SEBs accounts. The auditors qualifications, which are an important source of information, are taken note of. Some accounting policies that significantly influence the profitability of the SEB include depreciation, capitalisationof interest and expenses, provisioning for receivables and bad debts, prior period expenses and inter-unit reconciliation, contingent liabilities etc. SEBs provide for a fixed percentage (decided by each SEB) of the dues from consumers as provisions for accounts that may turn bad. However, a cursory look at the provisions for most SEBs portrays their inadequacy. Crisil conducts an age wise analysis of SEBs receivables. It applies norms for prudent provisioning to determine the adequacy of provisions (or lack of it) for potential bad debts in future. a) Analysis of financial position: Various financial ratios are analysed for the past five years along with a variation in their trends. Although, the financial parameters need to be quantified, Crisil does not limit its analysis on a few ratios. The parameters of analysis include the trends in revenue from operations, costs and profitability analysis, management of receivables and payables, trend and outlook on subsidies and subventions from the stategovernment (SG), capitalisation, analysis of loans and borrowings, payment track record, coverage ratios, return on capital employed etc. Crisil compares electricity sales to consumers within and outside the state (primarily other SEBs) to assess the ratio of intra state power sale to inter-state sale. The cost of power sold is compared to the average realisation over a time period to analyse the profitability and sustainability of operations at the gross and unit level. The analysis is conducted separately for SEBs own generated power and purchased power to estimate the trends in each source. This is important because if SEBs own generation is relatively cheaper, and if the SEB is entering into a PPA with an IPP, then to meet the assured offtake obligations, the SEB will be forced to back down its own generation and buy expensive power. b) Analysis of future cash flows and financial flexibility: Crisil focuses on the operational and financial forecasts of the SEB to assess the degree ofcertainty in the cash flow projections. Crisil attempts to predict the adequacy of projected flows to meet the financial obligations while meeting the operational expenses, capital and working capital requirements etc. The key factors in the Crisil analysis are projected coverage levels and the quality of coverage ie the certainty that actual cash coverage will match projections. For this purpose, the analysis takes into account the assumptions underlying the cash flows and projected key financial and operating parameters. Sensitivity analysis is conducted with respect to power tariffs, fuel prices and its availability, power purchase costs, plant availability and load factor, receivables collection etc. Some bad case scenarios are projected to check for the cash flows under the stress circumstances. Potential exposure risks on interest rate, foreign exchange rates etc is done to identify the exposure of coverage to adverse movements in key assumptions. Crisil also attempts to determine the flexibilityof the SEB in raising funds from its conventional and alternative sources to meet its financial obligations, capital expenditure plans. SEBs with ability to raise short term funds to tide over any temporary liquidity mismatch are viewed positively. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, August 31: The changes made by the finance ministry in the Kar Vivad Samadhan Scheme may render the scheme unattractive for ITC Ltd, which is facing an excise demand of Rs 681.54 crore and penalty of Rs 66.50 crore for alleged duty evasion. The amendment states that any deposit made by a company as part payment against the total demand will be treated as duty paid and excluded from the calculation of tax arrears. A company opting for the scheme would have to pay 50 per cent of tax arrears to settle its case while penalties will be fully waived. Applying this to the ITC case, since the company already paid Rs 350 crore as pre-deposit, it will have to shell out another Rs 166 crore, being 50 per cent of the balance demand of Rs 331.54 crore, if it opts for the samadhan scheme. The penalty of Rs 66.50 crore will stand fully waived. In case ITC opts for the scheme, it would save a little over Rs 230 crore since the company would have to pay a total penalty of Rs 516 crore (Rs 350 crore depositalready made plus Rs 166 crore being 50 per cent of balance demand) against the total demands of Rs 747 crore. Had the government retained the original scheme as proposed by the finance minister Yashwant Sinha in his Budget address, ITC would have had to pay only Rs 340.77 crore (being 50 per cent of total demand of Rs 681.54 crore). If ITC has to opt for the scheme, it has to do so within the next three days as the Customs, Excise and Gold (Control) Appellate Tribunal is expected to give its final verdict on the companys appeal on September 4. However, the company top brass has been maintaining that it has a strong case. Your company has obtained the opinion of an eminent jurist that the aforesaid demand is not sustainable in law, the directors have said in their report to the shareholders in the annual report of 1996-97. Your directors are of the view that your company has a strong case and the showcause, the demand notices and the complaints are not sustainable, the directors go on to say in theannual report. The company has two choices. First, to save Rs 232 crore while shelling out Rs 516 crore under the samadhan scheme. Second, fight it out in the appellate tribunals and, if required, in the higher courts which may save the entire duty and penalty of Rs 747 crore imposed on the company. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: The Reserve Bank of India has reduced its forward contract liabilities by 515 million in the last 10 days of August following the inflow of Resurgent India Bonds proceeds. The reduction in forwards liabilities will continue to exert pressure on the forward rates, dealers said. The six-month annualised premiums closed at 11 per cent while the one-month forward premiums closed at 13.50 per cent. The apex bank has said that it has been able to reduce its forward liabilities owing to the inflow of the RIBs. Dealers said that the RBI might have entered into a swap deal maturing in September with the State Bank of India. The aim, dealers said, is to block the entry of rupees into the market and minimise speculation in the forex market. The reduction in forward liabilities comes after months of rollover by the RBI. The apex bank generally rolled over its forward maturities to keep the forward premiums under control. But now it wants to keep the forward premiums under pressure so that theexporters come into the market and sell dollars. These rates also prove to be very prohibitive to the importers. So demand for dollars is less and the RBI wants to create supplies before the demand comes in, a corporate treasurer in a large oil company said. Dealers said that exporters will stand to gain through the RBIs decision to reduce its forward contracts. The current forward rates are attractive and exporters should come in the market to sell dollars, a dealer said. The RBI has been paying for September maturity after it hiked the repo rate and banks cash reserve ratio (CRR) on August 20 when the rupee touched a lifetime low of 43.70. This move by the RBI saw the one-month annualised premiums touch a high of 20 per cent before settling at 13.50 per cent on Monday. Exporters must sell dollars Exporters should come in and sell their dollar holdings as these forward rates are very attractive. The RBIs decision not to rollover its forward contracts will keep forwardpremiums on the higher side and importers will stay away from covering. This could result in a lacklustre demand for forward dollars, but at the same time exporters should come in and sell. Only then will the RBIs move to create a regular dollar supply in the forward market prove successful. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: Gilt Securities Trading Corporation Ltd (GSTC) has recorded a 65 per cent growth in its net profit for the year ended March 31, 1998. The company has posted a net profit of Rs 25.25 crore compared with Rs 15.30 crore during the last financial year. The company has maintained the dividend at 10 per cent for the current year to allow ploughing back of profits. GSTC, a subsidiary of Canara Bank, co-promoted by Bank of Baroda and Corporation Bank, has recorded a Rs 3,025 crore turnover in the treasury bills segment and a Rs 11,139 crore turnover in the Government of India dated securities market, indicating growths of 17 per cent and 126 per cent respectively. GSTCs gross profit during the year registered a growth of 40 per cent at Rs 38.99 crore compared with Rs 27.88 crore in the previous year. The return on capital employed works out to 21 per cent against 14 per cent in the previous year. The company has transferred Rs 5.05 crore to the statutory reserve against Rs 3.06 crore in theprevious year. A release issued by the company said that the easy money conditions prevailing during the first half of 1997-98 saw active trades in government securities in both the primary and secondary markets. The banks having comfortable liquidity picked up securities in excess of their statutory requirements and all loan tranches were floated without significant devolvement on the Reserve Bank of India or primary dealers. The RBI effected a phased reduction of the bank rate in the economy due to which the secondary market witnessed large volumes. However, the subsequent Asian currency crisis affected the rupee value and the RBI had to resort to certain emergency measures on January 16, 1998. This saw the call rate shoot up to 140 per cent before settling at bank rate levels, the release stated. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Call Money The overnight rates moved in a narrow range on Monday. The call rates opened at 8.75-9 per cent, compared with their previous close of 9.50-10 per cent, and quoted above the 8 per cent repo rate throughout the day. The rates eased to 8.10-8.25 per cent towards the close and finished slightly higher at 9-9.50 per cent. Liquidity is in the hands of a few banks. The Reserve Bank mopped up Rs 5,320 crore from just four applicants at the 8 per cent three-day repos, dealers said. Inflows of Rs 4,250 crore also came in through the maturing three-day repos. Banks are shying away from lending in the overnight market despite rates ruling higher than the repo rate in anticipation of tighter call rates, said a dealer from a private sector bank. The National Stock Exchanges Mibid and Mibor quoted at 8.59 per cent and 8.88 per cent respectively. FORECAST: The call money rates are seen at 10-12 per cent on Tuesday. The forex market witnessed lacklustre trades onMonday owing to little corporate interest for the dollar. The rupee opened at 42.52/53 compared with its previous close of 42.54/55. The local currency weakened to an intra-day low of 42.54/55, but later gained on lack of demand from importers to close at 42.49/50. Most players had covered because it was the month-end, dealers said. At the month-end, there is little activity and the market is dull, a dealer from a private bank said. The Russian crisis had no effect on the rupee, treasury chiefs said. The RBIs directive to not use the RIB funds in the forex market added to the sluggishness, dealers said. The spot rupee is seen holding the current levels. The Reserve Bank of Indias measures last Thursday have improved the mood, a dealer said. FORECAST: The rupee is seen between 42.45 and 42.54 on Tuesday. The forward premiums rose on Monday morning on reports that the RBI was seen paying dollars. But as the news could not be confirmed, the premiums fell acrossall maturities. September premiums finished at 41/44 paise (44/53 paise), October at 81/85 paise (88/92 paise) and November at 115/119 paise (121/126 paise). The annualised one-month cover quoted at 13.50 per cent (14.81 per cent), three months at 11.25 per cent (11.76 per cent), six months at 11 per cent and one year also at 11 per cent. Premiums have gone marginally lower in the near terms largely because importers still find it stiff to cover at these levels. But dollar demand is intact, a dealer with a brokerage said. In the far terms, May premiums finished at 342/346 paise (350/354 paise) and June at 383/386 paise (386/390 paise). FORECAST: The six-month annualised cover is seen at 10.70 per cent on Tuesday. Gilt prices appreciated by 5-10 paise on Monday morning from their previous closes. The 11.55 per cent 2001 traded between Rs 100.23 and Rs 100.24 in early trades, but came down at the close of trades to Rs 100.14. Buying interest was seen in the 11.78 per cent 2003at Rs 100.09-100.12 and the 11.68 per cent 2002 at Rs 100.05-100.15. Short-term bond prices rallied in the morning, but fell in the afternoon with call rates tightening to 9-9.50 per cent. A few banks were seen selling the 11.55 per cent 2001, triggering a 10 paise fall in short-term gilt prices, dealers said. The National Stock Exchanges wholesale debt market witnessed trades worth Rs 186.63 crore. FORECAST: Short-term gilt prices are likely to appreciate by 5-10 paise on Tuesday. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. AHMEDABAD, Aug 31: The Small Industries Development Bank of India (Sidbi), which has disbursed over Rs 36,000 crore to the small-scale industries (SSIs) since its inception in April 1990, is set to come out with a new face and a liberal approach by the year-end to play a more decisive role in supporting SSIs, especially in high-risk, high-tech areas. This was indicated by Sidbi managing director Shailendra Narain during his day-long interaction with small - and medium-scale entrepreneurs (SMEs) held under the aegis of the Confederation of Indian Industry (CII), Gujarat, here recently. Consultancy firm Partha Ghosh Associates is expected to submit its report redefining Sidbis role in both organisational and schematic areas by November, he said. He said Sidbi would go ahead with its restructuring plan as part of a move to delink Industrial Development Bank of India (IDBI) from Sidbi, even if the related bill could not be passed by Parliament in the coming winter session. Narain also announcedcreation of Venture Capital Funds dedicated to infotech and software, at least in nine states shortly with a corpus fund of Rs 20 crore each, with Sidbi sharing 50 per cent of the fund. He said the plan has already been finalised in seven states, as two more states may join in soon. He called upon entrepreneurs to reap benefits of Sidbi observing 1998-99 as techno-mission year with a special focus on its existing technological development and modernisation fund (TDMF). The mission is to encourage the import and export of technology transfer and setting up joint ventures in India and abroad. Negotiations are on with several African countries. While Rs 200 crore has been earmarked for the mission, he said, the amount could be increased to Rs 300 crore, if necessary. He said Sidbi was also encouraging infrastructure development by SSIs. Over Rs 900 crore has been advanced to SSIs in the last two years. SSIs are encouraged to get a general credit rating for their products from any of three domesticagencies -- Crisil, Icra and Care. He said that rating by London-based Dun Brad Street was like a gold card for export-oriented units. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, August 31: Notwithstanding the 26-point recovery in the Sensex today, the defensive pharmaceutical and FMCG stocks failed to recover on the bourses. The gains in the information technology stocks, too, was limited to a few scrips. Some info stock like NIIT Limited even reported a marginal drop in values. Monday witnessed a new set of gainers on the BSE -- Siemens, Essel Packaging, and Videocon International which attracted a buyer freeze. Lakme, too, was up 7.89 per cent to Rs 88.85. Among the worst losers were Carrier Aircon, Dr Reddys Laboratories, Great Easter Shipping and EIH Limited. The 85-point drop in the Sensex in two trading sessions last week had taken a toll of pharmaceutical stocks. The current week, too, seems to have brought bad for most of these stocks. Pharmaceutical and fast moving consumer goods (FMCG) scrips had succumbed to the selling wave fuelled by the rouble trouble and the Asian economic woes. Last week, pharma stocks witnessed a substantial fall as these provided thefund managers an opportunity to book profits. Among the Indian pharmaceutical stocks, Dr Reddys, Wockhardt and Dabur (India) had lost more than 12 per cent in the past two trading sessions. Dr Reddys has crashed by Rs 79 or 15.34 per cent in just two trading sessions from Rs 516.5 to Rs 437.25 on the Bombay Stock Exchange and continued its fall. Dr Reddys stock fell by another 5.32 per cent or Rs 23.25 on Monday to Rs 414. The stock has lost more than Rs 100 in the past three trading sessions. Institutions, domestic and foreign are beleived to have triggered the selling on this counter. Wockhardt, which had dropped by almost Rs 42 or 14.05 per cent to Rs 254 fell further to Rs 251. Sun Pharmaeuticals, after losing 9 per cent or Rs 34 to Rs 340 in two sessions, fell by another Rs 12.25 to Rs 327.75 on the BSE. However, multinational pharma stocks, which figured in the seller list last Friday, found some support on Monday, the fresh trading cycle on BSE. Glaxo, Pfizer, E Merck, German Remedies had droppedof over 7 per cent in the past two trading sessions. On Monday, however, Barring Glaxo (India) and Smithkline Pharmaceuticals improved by 4,19 per cent and 3.17 per cent respectively, most of the pharmaceutical scrips in the BSEs group A did not show any signs of major improvement. Scrips like German Remedies and Rhone Poulenc registered only a marginal rise on Monday. German Remedies inched up further by Rs 10.5 (2.38 per cent) to Rs 451 on the Bombay Stock Exchange (BSE) and Rhone Poulenc by 2.03 per cent to Rs 503.75. At the same time, other multinational pharmaceutical counters like Knoll Pharmaceuticals, Pfizer, E Merck and Novartis either showed a drop in values or were close to their previous levels. Among the multinational FMCG stocks, Smithkline Beecham Consumer, Reckitt Colman and Burroughs Welcome have slumped by over 6 per cent. On Monday, Smithkline was the only exception -- other FMCG stocks like Burroughs Welcome, Britannia, Parke Davis, Indian Shaving Products and Procter Gamble fell. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: Banks are cashing in on the low realty rates in the city by either buying or taking up properties on lease. Some of the major deals struck last month include those of HDFC Bank and ABN Amro, according to property-consultant firm Cushman Wakefield. HDFC Bank has secured about 24,000 square feet within the Tex Centre at Chandivili near Saki Naka, a suburb. The bank already possesses substantial space at the same site, which houses its back-office activities. ABN Amro Bank has leased a 5,000-square foot ground-floor retail premises in Raheja Chambers, Nariman Point, for Rs 11,25,000, which works out to Rs 225 per square foot. This property was previously occupied by Bank Internationale Indonesia. A domestic bank has invested about Rs 22 crore in a 800-square foot premises in Phatak building on Nehru Road, Vile Parle, which works out to an exorbitant Rs 27,500 per square feet. According to a report by Cushman and Wakefield, south Mumbai accounted for majority of residential sales, whilenorth Mumbai showed a spurt in commercial transactions. As much as 61 per cent of the transactions were in the suburbs, while south Mumbai accounted for the balance. In July, the residential property market showed maximum transactions, accounting for about 60 per cent of the total transactions. The commercial segment accounted for 30 per cent, while land transactions comprised the balance. Intra-company sales occur at high rates that do not reflect the prevailing market values, the report said. The average transaction value for Jolly Maker Chambers II ranges between Rs 14,000 and Rs 16,000 per square foot, the report stated. Retail leasing deals included that of Reebok which has opened an outlet on Linking Road, Bandra at an approximate rent of Rs 200 square feet, with six months rent as deposit for a 2,000 square feet area. The report also stated that Cuffe Parade appeared to be losing favour with expatriates given its limited shopping, social and recreational facilities. Demand from these clientsis largely for areas in Malabar Hill, Napean Sea Road, Breach Candy, Altamount and Carmicheal Road, the report added. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, August 31: Shares on the Bombay Stock Exchange (BSE) continued to trade in a lacklustre market with low volumes and dull demand. The markets were weak on account of continuing woes in the Asian markets and are expected to stay weak due to a fresh spate of declines in the Asian markets at the start of week. The 30-share BSE Sensitive Index (Sensex) rose by 25.75 points to close the first day of the week on BSE at 2,933.85. The Sensex moved in a narrow range registering the days high of 2,946.97 and the days low of 2,882.93. On the National Stock Exchange (NSE) the SP CNX Nifty gained a marginal 3 points to close at 852.80 over its previous close of 849.80. Although, the financial institutions (FIs) were moderately active, the FIIs were conspicuous in their absence. According to the figures collated by NSE FIIs were net buyers to the tune of Rs 1.67 crore while FIs were also net buyers to the tune of Rs 6.42 crore. The FII activity was also dull because of London Stock Exchange beingclosed. The market is poised to go either way but it seems that the market will improve from here due to a number of seemingly positive factors. The Jayalalitha factor has lost a little importance, India could sign the CTBT after some time, the massive Asian flu has not caught on to India plus the market cannot be hammered beyond this point. Thus, the recovery could be round the corner and the downside may be capped as valuations are starting to look attractive, said Ajai Doshi, a BSE broker. The markets were trading in a narrow zone and are basically listless with not much activity. Even the McKinsey report on India does not talk of economic recession but speaks of problems created due to conglomerates diversifying too much, said Chetan Shah, director Asian Markets Securities. The FIs bought shares triggering some local speculative bidding, but fresh investment demand was absent. Domestic institutions like Unit Trust of India (UTI), Life Insurance Corporation of India (LIC) and General InsuranceCorporation of India (GIC) continued its investment in the captial market. These institutions bought good quantity of blue chips like ITC, Bajaj Auto and LT. The market is just drifting - there is no definite direction at the moment, a dealer at one of the foreign brokerages said. The top gainers were ACC which rose by Rs 19.25 to Rs 1060, ITC hardened by Rs 6.75 to Rs 630 and SBI by Rs 2 to Rs 183. Among the losers were Bajaj Auto which fell by Rs 16.25 to Rs 640 and LT which fell by Rs 2 to Rs 173. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. BANGALORE, Aug 31: The BPL group is planning a foray into the domestic air-conditioner segment shortly. According to sources, the company will make its entry into the new segment through its group arm BPL Refrigeration. The Nambiars had recently commissioned a feasibility study for the same and will take a formal decision on the exact location, investment, soon, company officials said. The study has suggested that the plant could ideally be set up at Silvasa near Daman. Since Daman is a union territory, the company could avail of the tax benefits if it locates the unit there, the study said. Though many production facilities of the group are currently in Karnataka, there is a general feeling emerging within the group that it should now set up units elsewhere. This, according to company officials, stems from the fact that the sales tax structure in Karnataka is extremely high vis-a-vis other states. The sales tax is around 16 per cent in Karnataka. Locating the new unit in the North could also helpthe company to a large extent. The presence of untapped markets and the burgeoning demand for air-conditioners are the main factors that would help BPL if it decides to set up the unit there, the study added. The Nambiars are also toying with the idea of sourcing the air-conditioners from domestic firms. Company officials are believed to have initiated talks with some companies for the same. The group already has a tie-up with Voltas to procure refrigerators. Industry sources are of the view that BPL may opt for the sourcing route initially as it is unwilling to commit fresh funds for a new venture immediately. The group is also not too keen on raising funds from the capital market, or through borrowings, owing to the current state of market, feel sources. A third option before the company is to ride piggyback on Sanyos shoulders. Sanyo is already an established air-conditioner brand worldwide. With a tie-up with the Japanese firm already on, it may not be that difficult for the Nambiars to extend thisto air-conditioners. According to an industry survey, the air-conditioner market in India is expected to grow by about 25 per cent. The fastest growth would be in the household segment followed by the industrial segment. The total size of the air conditioners industry has been pegged at Rs 1,150 crore annually. Window and split air conditioners together account for Rs 550 crore while the balance comes from central and packaged products. The annual penetration of room air-conditioners in the country is 3.5 lakh units whereas in Korea it is eight lakh units. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, August 31: The Thrissur-based South Indian Bank (SIB) will enter the capital market with its maiden public offering aggregating Rs 51.20 crore on September 22. The bank will offer 1.60 crore shares of Rs 10 each at a premium of Rs 22 per share. ICICI Securities and Finance Company (I-Sec) and SBI Capital Market will lead manage SIBs public issue, which is scheduled to close on October 3. The bank is tapping the market for meeting its long-term capital requirement. Announcing the banks decision to enter the capital market, SIB chairman, Maurice DSouza, said, We are quite confident of garnering the targetted amount given our attractive pricing. We expect good support from non-resident Indians (NRIs), banks and financial institutions, as well as the banks employees. Post-issue, the paid up equity of the bank will go up by Rs 16 crore to Rs 35.4 crore against Rs 19.4 crore at present. The share premium account following the issue will increase to Rs 64.1 crore against Rs 28.9 crorecurrently. The bank has reserved 10 per cent of the total issue size for its employees, 13.7 per cent for NRIs, overseas corporate bodies and foreign institutional investor, 20 per cent for financial institutions and banks with 56.2 per cent for the public. The net offer to the public would be 90 lakh shares aggregating Rs 28.8 crore. The investors would have to pay Rs 16 down on application and the rest during the allotment. The public issue will augment the banks long term resources, enabling it to meet future capital adequacy requirements and expansion plans, added DSouza. The capital adequacy ratio of the bank as on March 31, 1998 was 9.4 per cent as against Reserve Banks minimum stipulation of 8 per cent. The banks Tier-I capital as on March 31, 1998 stood at Rs 92.66 crore with Tier-II at Rs 46.62 crore. During 1997-98, the bank came out with a rights issue amounting to Rs 12.8 crore and privately placement of Rs 3.9 crore. In 1997-98, the bank recorded a 166.92 per cent increase to Rs20.7 crore in its net profit and its deposits grew by 30.57 per cent to Rs 2,738 crore, up from Rs 2,097 crore in the previous year. The networth of the bank also increased from Rs 67.71 crore in 1997 to 99.36 crore in 1998. The bank offered a 28 per cent dividend payout to its shareholders for the last fiscal. For 1998-99, the bank has projected a net-profit of Rs 27.31 crore and a total income of Rs 484.42 crore. According to SIB general manager J Joseph Vithayathil, the bank is tapping the public for augmenting its networth for meeting the future capital adequacy requirement and long-term resources. SIB has the second largest branch network among the private sector banks in the country with 354 branches and 54 extension counters. Twenty-four of these branches are fully computerised and another 25 are partially computerised. The banks focus is on NRI services and export finance. SIB has 14 dedicated NRI branches and exclusive NRI wings at another nine branches. The bank has priced the issue at Rs 32against the pre-issue book-value of Rs 50.18. Even the diluted book-value of Rs 46 after the public issue would be much higher than the issue price. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, August 31: Reflecting a growing shift among investors to the depository, the percentage of demat shares delivered in the physical segment of the National Stock Exchange (NSE), in terms of quantity, has risen to 32 per cent in the last settlement. Overall, the percentage of demat shares delivered at all the three bourses ie the National Stock Exchange, Bombay Stock Exchange and Calcutta Stock Exchange, has gone up to 15 per cent of the total settlement in value terms during the month of August. The number of investors coming into the depository fold is rising by the day and the number of accounts opened have jumped to 64,000. The momentum has picked up even further following the announcement by the Securities and Exchange Board of India (Sebi) that all trades with regard to 10 securities would be compulsorily in demat form after January 4, 1998. The number of shares delivered in the demat form have been steadily rising at the National Stock Exchange. In the settlement ended August 12, thepercentage of demat shares delivered in the physical segment was 13.5 per cent. This increased to 24.40 per cent for the settlement ended August 19 and has risen to 32.20 per cent for the last settlement of the month, ended August 27. The most prominent among the securities which are seeing high level of demat shares being delivered is the State Bank of India scrip which has for the past six settlements has seen 99 per cent of shares delivered in the demat form. The percentage of demat shares delivered is somewhat lower at the Bombay Stock Exchange. The percentage was at 16.80 per cent for the settlement ended August 17, up from 11.40 per cent for the previous settlement. State Bank of India however, continued to have a delivery percentage of 98 per cent for the past five settlements even at the BSE indicating that a large SBI shareholder base has already shifted to trading in the demat form. The value of demat shares being delivered at all the three bourses which have demat trading is alsoincreasing. In the month of April when the unified segment was created, the percentage of demat delivery was 6.2 per cent of the total deliveries. This declined to 4.8 per cent in May, to increase subsequently to 9.1 per cent and 12.5 per cent for the months of June and July respectively. In the month of August this figure has risen to 15.2 per cent. With the number of shares being dematerialised and the number of accounts being opened increasing rapidly, an increase in trading in demat shares can only be the expected, said a depository official. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Aug 31: The Unit Trust of India (UTI) has faced repurchases and redemptions to the tune of Rs 2,000 crore in the first two months of the current financial year. In contrast, the trust has mobilised about Rs 5,000 crore during the same period. The repurchases in the first two months stood at Rs 497 crore while the scheduled redemption were to the tune of Rs 1,500 crore. The redemptions were witnessed in schemes including MIS-91 and Mastergain 91. Meanwhile, the mobilisation from the US-64 scheme has fallen sharply to Rs 200 crore in August as against Rs 3,100 crore during July, when the units were sold at a special offer price of Rs 14. The sale price has since gone up to Rs 14.25. UTI officials say that 50 per cent of the annual mobilisation for US-64 comes in July itself as this is when the marketing thrust is the strongest. UTI has mopped up Rs 100 crore through the ULIP scheme and the Bond Fund too is faring well and has mopped up about Rs 200 crore, said the sources. The trust will launch thefourth monthly income plan (MIP) for the year on September 21. Officials are hopeful of offering more than the 12.50 per cent monthly return provided by MIP (III) which has mopped up Rs 1,400 crore. UTI has decided to launch two more monthly income plans during the current calendar year. We are hopeful of being able to atleast offer the same rate of return if not more. The final decision to this effect will be taken by the board, said a UTI source. In addition, the sources said that since ICICI safety bond issue is offering 14 per cent for seven years and the IDBI issue which is expected in September is likely to match the same coupon, UTI would have to consider these rates before deciding on the coupon of MIP(IV). A target of Rs 1,500 crore has been set for MIP (IV). UTI sources said that the trust had expected higher mobilisations through MIP (III) and had therefore sought approval from the Securities and Exchange Board of India (Sebi) to mobilise upto Rs 2,000 crore. For MIP (IV) however, UTI hasdecided to keep the maximum level at Rs 1,500 crore only. We have mopped up Rs 97 crore through ULIP, Rs 60 crore in MMMF while the corpus of Bond Fund has gone up to Rs 200 crore. The Bond Fund should be able to mobilise about Rs 500 crore in the current year, said the source. The trust has deployed the funds raised through the Master Index Fund and the fund investing in the B1 and B2 group scrips. With the markets in the dumps, UTI has put its other schemes like the Banking Technology fund on hold. The trust is in the meantime placing a lot of emphasis on rural marketing. It has appointed chief agents for about 50-60 talukas of the country to tap the rural investor base and mobilise their savings. The pilot project will be evaluated after a year and if the response is good, more talukas would be added to the existing list. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. The Hero Honda stock has risen sharply from Rs 500 to Rs 600 in the recent times. Considering this swift rise, it would be prudent for short term traders to book profit here. The previous high for this scrip before the current spurt has been Rs 669 in March 98. Since the scrip is a strong investment, it would be risky to short sell except for those who are adept at the game. But those who are in profit should collect profit and preferably at Rs 580 and above. Short sellers could target Rs 596 to be on the safe side and cover their risk at Rs 605. On the downside, support can come anywhere at the first instance between Rs 554 and Rs 540. The volume build up as the scrip moved up from Rs 494 has the smack of speculative buying, which could try to get out quick. The daily stochastic has indicated a sell. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. More good news likely for Max India investors: Thanks to the interim dividend of Rs 165 crore from Max Telecom Ventures, there could be more good news in store for Max India shareholders. As Max India has come out with an impressive performance for the first quarter of fiscal 1999, a net profit of Rs 168 crore (against Rs 8.56 crore for the full year 1998), the shareholders can expect an adittional bonanza in the form of dividend. Few takers for HCL Info megabyte: HCL Infosystems net profit jump of over 400 per cent has failed to enthuse marketmen. On Friday the scrip fell by 4 per cent to Rs 207. Excessive speculation by operators in the past few days prior to the result announcement led to hectic activity in the counter. For one, the market had anticipated a much higher net profit figure and operators, who had built up large positions in the counter, are likely to offload now. Besides, the operating profit for the year-ended June 30 has not shown any major improvement. Sebi received5507 investor grievance applications: During the fornight ended August 15, Sebi received 5,507 grievances against 1,267 companies. In the same period 6,195 grievances were reported resolved by 609 companies. These resolved grievances include grievances brought forward from the previous periods. The number of grievances received during the fortnight in the Type-I category were 149 while those resolved were 149 in Type-II were 602 with 781 resolved in Type-III were 1,557 and those resolved were 1,400 in Type-IV were 934 and those resolved were 514 in Type-V were 387 and those resolved were 203 and in Type-VI were 52 and those resolved were 8. HDFC bond issue mops up Rs 196 cr: The Housing Development Finance Corporation (HDFC) has raised Rs 196 crores through its maiden privately placed bond issue. Initially, the issue was expected to raise Rs 100 crores. HDFC is expected to use its green shoe option to retain the Rs 96 crores it has raised above its declared offer. The issue, which was openfrom July 27 to August 14, was open to recognised individual private Provident Funds Trusts and Regional Rural Banks (RRBs). The bonds carry an interest rate of 14 per cent and has a lock in period of five years. DSE up 6 points on FI, FII support: Scrips at the Delhi Stock Exchange rallied steadily as FIIs made a comeback alongwith domestic punters despite a global stock market rout. The index at the DSE (base 1983) was up 6.11 points to close at 660.16. Investor confidence returned after news that the 225-issue Nikkei stock average rose moderately gaining 192.26 points or 1.38 per cent to close the day at 14, 107.89. Marketmen, however, said the cautius buying was due to the other Asian stock exchanges in Asia falling. Share prices tumbled in Hong Kong, Singapore and Taiwan. Scrips declines further in MSE: Values of scrips declined further due to increase in selling which coupled with profit taking on the Madras stock market on Monday. Infotech counters were actively traded and settledwith little gains. The MSE share price index went down by 12.83 points to close at 3342.22 as against the last Fridays close of 3355.05 points. HK down 7 per cent: Hong Kong share prices plummeted on Monday as the government let up on two weeks of market intervention on a mixed day for Asian stock markets amid lingering jitters over the Russian crisis. The key Hang Seng index of the Stock Exchange of Hong Kong ended 7.1 per cent lower, influencing price falls elsewhere in the region already worried over the direction of Wall Street after a weekend fall in New York. Nikkei up 1.4 per cent: Japanese share prices closed 1.4 per cent higher in a rally from the 12-year low hit on Friday, driven by a turnaround in bank stocks. Investors were encouraged after Sakura Bank Ltd said it will seek a 300 billion yen (2.1 billion dollar) lifeline cash injection from its business allies. Nikkei-225 rose 192.26 points to end the session at 14,107.89. The Topix index of all first-section issues was up 19.50points at 1,106.49. Singapore sheds 3.3 per cent as HK goes down: Singapore share prices closed 3.3 per cent lower, their fall in late trade attributed to negative sentiment over the plunge on the Hong Kong stock market. The new Straits Times Index (STI), which replaces the three-decades-old Straits Times Industrials index, fell 28.83 points to 856.43, while the broader All-Singapore index fell 11.04 points to 266.25. Bangkok down 2 per cent: Thai shares fell two per cent at the close as late buying failed to recover losses stemming from investors fears of further turmoil in emerging markets. The Stock Exchange of Thailand (SET) composite index ended 4.32 points in the red at 214.53 points, while the SET 50 selected index lost 0.37 points to end at 14.24. Jakarta up 1 per cent: Jakarta shares climbed one per cent with select big caps pushed higher on last-minute buying due to short-covering, and with support for telephone monopoly Telkom and satellite operator Indosat. The Jakarta Stock Exchangecomposite index closed up 3.415 points at 342.436. Manila: Philippine share prices closed 0.2 per cent lower on the back of bleak regional economic sentiment. Its still a continuation of Fridays decline, but today was a big improvement because we are down only less than one per cent and that means selling pressure has started to ease, Henry Ong of Sapphire Securities Inc said. The Philippine Stock Exchange composite index inched down 2.46 points to 1,192.25, after falling 5.7 per cent on Friday. Seoul rebounds, index up 1.8 per cent: South Koreas volatile stock market ended on Monday 1.8 per cent higher in a rebound fuelled by hopes that the government will soon announce a stimulus package. The Korea Stock Exchange composite index ended the session 5.37 points higher at 310.16 points, off a high of 311.70. Volume was 74.9 million shares worth 332.5 billion won (246 million dollars). Shanghai close marginally lower: Shanghais B shares, nominally reserved for foreign investors, closed 0.7 per cent lower pulled down by the drop in the Hong Kong share market. The Shanghai Stock Exchanges B share index closed 0.18 points down at 27.23 points while the A share index of locally-traded stocks finished 22.1 points, or 1.8 per cent, up at 1,224.07 points. Taipei drops 2.8 per cent on HK fears: Taiwan stocks plunged 2.8 per cent, depressed by a sharp fall on the Hong Kong stock market during the morning session, dealers said. The Taiwan Stock Exchange weighted price index dipped 185.81 points to 6, 550.11, following a 0.2 per cent rise the previous session. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, August 31: HCL Infosystems net profit jump of over 400 per cent has failed to enthuse marketmen. On Friday, the day the company announced its full-year results, the scrip fell by 4 per cent to Rs 207. Excessive speculation by operators in the past few days prior to the result announcement led to hectic activity in the counter. For one, the market had anticipated a much higher net profit figure and operators, who had built up large positions in the counter, are likely to offload now. Besides, the operating profit for the year-ended June 30 has not shown any major improvement and margins at the operating level have, in fact, stagnated at 6 per cent. Analyst also feel that the quality of earnings has not really improved. A year after its divorce with Hewlett Packard, HCL Infosystems with a new business strategiy was expected to report an exceptional growth in earnings. It was anticipated that net profit would zoom by over 600 per cent from Rs 5.1 crore to Rs 30-32 crore, which would yield anearning per share (EPS) of around Rs 10 against Rs 1.6 last year. Consequently, the counter witnessed a sudden spurt of activity. The price shot up by Rs 38 in just three trading sessions from Rs 176 to Rs 205. Trading volumes, too, spurted from a daily average volume of 30,000-40,000 to over 2 lakh shares a day. On a year-on-year comparision, HCL Infosystems turnover has grown by only 8 per cent from Rs 637.89 crore to Rs 694 crore in fiscal 1997-98. This means that business has not picked up as expected despite a change in the business model which has transformed the company from a pure hardware manufacturer into application of software solutions and providing end-to-end solutions as well as technology integration. What has, however, saved the day for HCL is the substantial reduction in interest cost from Rs 32.126 crore to Rs 8.91 crore. This is what has led to the over 400 per cent jump in net profit. Net profit for the year-ended June 30, has risern to Rs 26.12 crore compared with Rs 5.09 crore. Earning per share has seen a substantial jump from less than Rs 2 to Rs 8.1 and on the current market price of Rs 221 the PE multiple works out to 27.2, which is higher than the industry average. It is advisable to book profits and exit at this stage as the MACD has also indicated a sell signal on the daily charts. The 21-day RSI is close to the oversold zone, although there is no indication of a divergence so far. The reduction in interest cost in the full-year has been possible through prudent inventory as well as fiscal management. In the first-half, too, the net profit growth of 400 per cent was aided by a substantial reduction in interest cost. In the first-half, interest cost dropped to Rs 4.2 crore from Rs 13.28 crore in the corresponding period last year. Although the latest outstanding liability figure is not available, analysts say it is around Rs 107 crore. HCL Infosystems, which undertakes systems integration projects and provides total solutions to customers based on their hardware, software andnetworking needs, shifted its focus from hardware to software services and systems integration last year. This operational shift saw the stock zoom to over Rs 300 in early June this year. After dropping back sharply to Rs 100, the stock bounced back again to over Rs 200 in anticipation of exceptional results. HCL Infosystems now provides solution in key verticle segments like finance, banking, telecom and manufacturing. The company also hopes to add sectors like power, oil exploration, infrastructure and utilities to its existing portfolio. The company has already completed a pilot project for the excise department. Another new area of operation for HCL Infosystems is the standard accounting practices (SAP) implementation, for which the company has developed an excellence centre in Noida. HCL Infosystems has a good order book position and its clients include multinationals like General Motors, Samsung, Siemens as well as PSUs like VSNL. Copyright copy 1998 Indian Express Newspapers (Bombay) Ltd. This story was printed from Net Express located at expressindia. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.