Agriculture
Co-operative, not corporate, agriculture
THE just concluded agriculture committee meeting of the principal party in governance at New Delhi recommending ``contract farming'' is ominous. It is an open invitation to rich private sector companies and MNCs to have a go at converting acres of arable land into a capitalist goldmine. At a time when the agriculture top brass in New Delhi are still struggling to chart out a strategy to ``salvage'' Indian agriculture from the onslaught of the World Trade Organisation (WTO), the call to contract farming is a covert attempt at ``disinvestment'' in agriculture.

Call to bridge tobacco yield gaps
TOBACCO scientists should strive to bridge the yield gaps at the farm level and help farmers obtain maximum possible yields for different varieties in the wake of a stiff competition especially from China, Dr P. Dayachari, the Chairman of the Tobacco Boa rd, has said.

Airlines
No differences on IA, AI divestment: Yadav
The Civil Aviation Minister, Mr Sharad Yadav, has denied that there is any difference between him and the Union Cabinet on the disinvestment of the Indian Airlines and Air India.

If IA is put on the block again -- DoD not to press for allowing entry to foreign airlines
THE Department of Disinvestment (DoD) will not press for a change in the civil aviation policy to allow foreign airlines to enter the domestic skies if Indian Airlines is put on the block again for strategic sale following an unsuccessful first attempt b y the Government in this direction.

Automobiles
Labour relations, Hyundai style
FOR a manufacturing plant that has maintained productivity at 95-98 per cent, and has the capability to step up production when required, productivity has not been the central point of discussion in wage talks says Mr A.P. Gandhi, President, Hyundai Moto r India Ltd (HMIL).

Ford to focus on brand-building
WITH the launch of the Mondeo slated for the year-end, Ford India Ltd is in the process of rebuilding its marketing team. The focus, according to the company, is to create brand teams as brand-building is a real challenge in India for automobile companie s.

Banking and Finance
Tata group files police complaint against Pendse
THE Tata group has filed a complaint with the economic offences wing of the Mumbai Police here today against Mr Dilip Pendse, former Managing Director, Tata Finance Ltd (TFL).

Chemicals
Price cartelisation charges -- MRTPC dismisses case against chlor-alkali cos
THE Monopolies and Restrictive Trade Practices Commission (MRTPC) has dismissed the case against the chlor-alkali manufacturing companies on the charges of price cartelisation.

Coal
Govt mulling repeal of Colliery Control Order
IN a major move, the Government is considering withdrawal of the Colliery Control Order, 2000, which deregulates pricing and distribution of coal of all varieties from January 2000.

Commodities
Bertolli plans to promote olive oil for cooking
THE Mediterranean diet is the most balanced way to eat in terms of nutritional values, according to Bertolli International, leading manufacturer of olive oil.

Palm oil tariff rates to be revised periodically
THE Finance Ministry has said the tariff values of $337, $351 and $372 per tonne fixed in respect of imported crude palm oil, RBD palm oil and RBD palmolein, respectively would be revised periodically in tandem with international price movements of these commodities.

Good movement in leather market
A GOOD movement was witnessed, to an extent, in all kinds of leather in the domestic market last week. The movement was seen in nappa, upper lining, suede and E.I. tanned leather at the existing price levels only. The movement is expected to continue in the coming weeks at the same price levels only.

Corporate
Crompton looking at ways to exit non-core areas
THE 64-year-old Thapar group company, Crompton Greaves Ltd, hopes to turn around and record a profit during the current financial after registering losses for the last two consecutive years.

Bio-informatics: Do Indian cos have it in their genes?
BIO-INFORMATICS, a rapidly growing segment, in the myriad world of biotechnology, is fast catching the fancy of many domestic pharmaceutical companies. So much so that Indian companies are increasingly looking at setting up separate divisions to tap the enormous potential of this technology.

Thermax announces VRS
ENERGY and environment engineering company Thermax Ltd, which has been on a restructuring mode for the last couple of years, on Monday said it had announced a voluntary retirement scheme (VRS) as part of its ongoing exercise to become a leaner, more comp etitive organisation.

Honda to make Indian arm an export base
HONDA Motor Company Ltd of Japan is planning to make its wholly-owned Indian subsidiary, Honda Motorcycle & Scooter India Pvt Ltd (HMSI), into an export base for sourcing low-end scooters and scooterettes to cater to its operations worldwide.

BSES foreign bond cleared
OVERSEAS quasi-equity issuance by Indian corporates is set to be kicked off after a lull with the Finance Ministry giving an in-principle approval to BSES, for a Foreign Currency Convertible Bond (FCCB).

Open offer clause compliance -- Private cos can approach SEBI for exemption: DoD
THE Department of Disinvestment (DoD) is of the opinion that private companies could approach the Securities and Exchange Board of India (SEBI) if they have a problem in complying with the open offer clause in accordance with the takeover code prescribed by the market regulator following strategic acquisition of Government companies.

Jagdish Capoor in Indian Hotels board
MUMBAI: Mr Jagdish Capoor, former Deputy Governor, Reserve Bank of India, has been appointed as a director on the board of Indian Hotel Company Ltd, the company informed the Bombay Stock Exchange on Monday. -- Our Bureau

Economy
Brain drain
THE news is alarming, to say the least. A recent survey has revealed that `brain drain' costs India around $2 billion a year. The UNDP's Human Development Report-2001 further states that it costs the country $15,000-20,000 to create a professional.

World trade: Who needs a new round?
AN END-JULY meeting of trade officials of the WTO's 142 member-nations at Geneva, laid bare the constraints to the efforts of those pushing for the launch of a new, ninth round of international trade talks at the ministerial meeting scheduled for Novembe r at Doha, Qatar. Heading the drive for a new round is the US, which would like to see further reduction in barriers to its exports of industrial goods as well as more progress in the ongoing negotiations on freeing trade in agriculture and services. Any acceleration on trade liberalisation on these fronts it feels can only be achieved by incorporating negotiations on these matters into a new round of talks that cannot but end with agreement on freer trade.

Business index paints dark `bear' shades
CONFIRMING the continued sluggish phase of the economy, the business confidence index (BCI) of the National Council of Applied Economic Research (NCAER) at the end of the first quarter of the current fiscal has turned bearish.

`Special skills needed to meet challenges of globalisation'
THE managers of international business need to acquire special skills to face the new economic challenges including that of globalisation, Mr Omar Abdullah, Minister of State for External Affairs, has said.

BoE Dy Governor to address ICRIER anniversary
THE Bank of England Deputy Governor, Dr Mervyn King, will participate in the deliberations on the occasion of the 20th anniversary of the Indian Council for Research on International Economic Relations (ICRIER). ICRIER will complete two decades of existe nce on August 9.

WTO: `Implementation issues must not be linked'
IMPLEMENTATION-related concerns should be resolved without being linked to any new round of negotiations, the Special Secretary -- WTO, Ministry of Commerce and Industry, Mr Nripendra Mishra, has said.

Editorial
Monsoon hopes
THE MIXED-BAG that India Meteorological Department's mid-season review of south-west monsoon covering rainfall during June-July is, should sufficiently alert governments in the States and at the Centre not to take normalcy of monsoon during the rest of t he season for granted. Indeed, deficient rains in as many as nine out of the 35 meteorological sub-divisions this season is the worst performance of south-west monsoon since 1995.

Environment
The consumption trap
DESPITE serious energy shortages in the US, the American public has not appeared willing to sacrifice environmental concerns for increased energy supplies. Major opinion polls over the last few months have consistently shown that a large majority support s, in principle, the basic elements of an alternative energy road map -- such as conservation, utilising renewable energy sources, increasing energy efficiencies, and curtailing carbon-dioxide emissions -- which lead to global warming.

Will green valleys break the silence?
TO the tourist, the colour of `God's own country' is green. Kerala's itinerant tourists always return with visions of green vistas, unsullied beaches, palm fringed lagoons and backwaters.

Fast track
Dr Reddy's: On a perception wave
THE markets have been moving in a narrow range for close to three months now. Small gains in one week are whittled away later. But amidst these broad market trends, there are a few stocks that have managed to post sizable gains on the back of liquidity a nd perception of what may be in store.

Financial Performance
Rupa net at 1.02 cr
HOSIERY manufacturer Rupa & Co has posted a net profit of Rs 1.02 crore in the first quarter of the current fiscal as against Rs 57.23 lakhs in the corresponding period of last year.

Foreign Trade
Curbs on import of spares under EPCG scheme
THE Government has amended the Export-Import (Exim) Policy to stipulate that imports of spares under the export promotion capital goods scheme (EPCG) would be restricted to 20 per cent of the cost, insurance and freight (c.i.f) value of the licence issue d under the scheme.

India needs better image to attract business: Lord Paul
INDIA is still regarded as a difficult country to do business with even if the eventual returns are recognised as excellent, Lord Swaraj Paul, Ambassador for British Business, has said.

Dumping probe on porcelain tiles from China, UAE
THE Designated Authority in the Commerce Ministry has initiated anti-dumping investigations on alleged dumping of vitrified/porcelain tiles from China and the United Arab Emirates (UAE).

WTO, Russia and India
This refers to `Russia's WTO entry: US signals support' (Business line, August 3). Perhaps, it may be only a question of time before Russia enters the WTO. To analyse the potential of exports to China, as well as the threat posed by Chinese competition t o Indian exports, the Department of Commerce is to commission two ``Panels to go into India-China trade gamut'' (Business line, August 3).

Forex
Rupee seen steady in next six months
BACKED by a forex reserve of over $43 billion and an expected steady inflow of funds, the rupee is likely to remain stable in the next six months, say forex dealers and analysts.

Hotels
Indian Hotels to expand capital base
INDIAN Hotels Company Ltd (IHCL), which owns the Taj group of hotels, plans to expand its paid-up share capital from the current Rs 50 crore to Rs 200 crore.

Impact
Sterlite Optical: Stemming the decline
THE announcement of a buyback programme may not lead to any major spurt in the stock price of Sterlite Optical from the present levels. In the homestretch to the announcement, the stock had moved up 26 per cent to around Rs 212. In the preceding week or so, it had declined 32 per cent. In the context of these price trends, whether the recovery of the last four days would be sustained itself has to be subject to doubt. The company plans to buy back its shares at a maximum price not exceeding Rs 250 per s hare.

Hughes Tele.com: Early linkages still
THE indications that Tata Teleservices and Hughes Tele.com could combine in some form may infuse some interest in the stock of the latter. But since the process has been indicated as been in a fledgling state, the announcement may not lead to a significa nt change in the valuation of the stock.

Information Technology
Unfair recruitment practices
Even as the software industry is going through a slump and there is considerable uncertainty about its future direction of growth, it is surprising that several software companies are visiting educational institutions to conduct campus interviews to recr uit personnel for 2002.

Insurance
IRDA clears Metlife application
THE Insurance Regulatory and Development Authority (IRDA) has cleared the application of Metlife India Insurance Company Pvt Ltd, to set up a life insurance company.

Miscellaneous
Tiding Over
A victim of celebral palsy undergoes warm water swimming therapy from a recreational therapist at the Indian Institute of Cerebral Palsy in Kolkata. For some affected by the illness, swimming is their only independent activity as they are able to move mo re freely due to the body's buoyancy in water.

Mutual Funds
JM MF ropes in ABN-Amro for accounting services
JM Mutual Fund has retained ABN-Amro Bank for sourcing fund accounting services. The arrangement is likely to be implemented within a month.

US-64: Insurance cos keep head above water
PUBLIC sector insurance companies have been insulated from the crisis which has effected the Unit Trust of India's flagship scheme, US-64.

Pharmaceuticals
Wockhardt launches anti-depressant drug
MUMBAI: Wockhardt Ltd launched an anti-depressant drug, venlafaxine capsules under the brand name, Flavix-XR on Monday.

Cipla unveils Triomune
MUMBAI: Cipla Ltd launched a triple drug cocktail for HIV/AIDS by the brand name, `Triomune' on Monday. Triomune is a combination of three antiretroviral drugs - Stavudine, Lamivudine and Nevirapine.

Plantations
Coffee harvesting
Coffee harvesting is on in a multi-crop farm at Kottilpara in Kerala's Palakkad district. For the last 7 years, high-yielding coffee varieties have been cultivated in the region.

Policy
ERC tenure extended by a month
THE Finance Ministry has granted a month's extension to the Expenditure Reforms Commission (ERC) whose tenure ends on August 31.

Bill in LS to repeal MRTP Act
THE much-awaited Competition Bill, 2001 was introduced by the Government in the Lok Sabha on Monday. The Bill aims at repealing the Monopolies & Restrictive Trade Practices (MRTP) Act, 1969 and dissolution of the MRTP Commission.

Money orders via VSAT will minimise delays
With the process of sending money orders through low speed VSATs to high speed VSATs being put in place before the end of the current fiscal, the delay in despatch of money orders would be minimised, Mr Paswan told Mr M. Chinnasamy in the Lok Sabha. He s aid if there had not been a substantial decline in the number of complaints received pertaining to delay in the payment of money orders, it was partly due to the fact that only about 12 per cent of the money order traffic was being transmitted annually v ia satellite through 77 low speed VSATs.

Power
SC stays arbitration proceedings -- HC to decide on MERC authority in DPC case
THE Supreme Court today stayed the arbitration proceedings initiated by Enron and asked the Bombay High Court to decide whether the Maharashtra Electricity Regulatory Commission (MERC) had the jurisdiction to adjudicate the dispute with Dabhol Power Comp any (DPC).

Rubber
Low-cost rubber tapping method developed
A NEW research finding by the Rubber Research Institute of India (RRII) is set to reduce the cost of crop exploitation in rubber plantations.

States
Protest against smoking ban
MANGALORE: All the major Central trade unions have decided to protest against the State Government's proposal to pass a legislation banning smoking in public places. The newly-formed action committee of trade unions has organised a rally on August 9 to p rotest against the proposed legislation.

45 cases of CRZ rules violation in Karnataka
A COMMITTEE appointed by the Karnataka High Court to look into the violations of the Coastal Regulation Zone (CRZ) Notification along the 287-km-long Karnataka coast has found 45 prima facie cases of violation and has made specific recommendations to imp lement the notification.

Female mortality rate lower in AP: Study
SURVIVAL chances of females are more than males, particularly in the case of adults where male mortality is not only far higher than females but tends to stagnate, according to Dr N. Krishnaji, former Professor of the Centre for Economic and Social Studi es (CESS).

CAG raps Bengal PCB's working
THE West Bengal Pollution Control Board (WBPCB) has come in for sharp criticism for deviating from established test standards in pollution, and for its failure to enforce compliance of existing legislation on large industries.

Stocks
Lyons Range
THE Calcutta Stock Exchange on Monday saw the scrips of Rolta, DSQ Biotech, NIIT and Tata Engg move up marginally.

Buyback fails to prop up Sterlite Optical
STOCK prices remained range bound on Monday with the BSE Sensex ending the day with small gains. The firm trend in the stock price of Hindustan Lever and Reliance Industries, which together account for 31 per cent of the market capitalisation of Sensex, was mainly behind the higher close of the Sensex.

Reliance names brokers for buyback
RELIANCE Industries Ltd (RIL) has appointed three brokers to implement its share buyback programme through open market purchases.

`Rolling settlement must follow electronic fund transfer facility'
THE five-member delegation of the Securities Industry Association of India (SIAI), the recently formed apex body of stock brokers from across the country, has decided to seek continuation of weekly settlement until infrastructure for electronic fund tran sfer is put in place.

Taxation
Broadcasting cos to discuss service tax
BROADCASTING companies are expected to chalk out a fresh strategy for seeking exemption from the 5 per cent service tax at the meeting of its apex body, the Indian Broadcasting Foundation (IBF), on Tuesday.

e-com taxation panel seeks further study
THE high-power committee on e-commerce and taxation has asked the Government to factor in the aspect of diverse `income streams' in the IT sector before arriving at norms for e-commerce taxation.

India, Austria sign taxation agreement
INDIA and Austria have signed a treaty for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income in a bid to boost mutual flow of investments, technology and trade and services between the two countries.

Tea
Tea import should be no cause for worry
EVEN as the captains of the plantation industry continue to urge the Government to ban the import of tea and raise the customs duty to 150 per cent, the Tea Board feels that imports should cause no concern.

Technical Analysis
Narrow movement
MONDAY'S trading activity witnessed narrow movement in the index. It moved within a close band of 10 points. Neither the bulls nor bears gained from the day's trading. The trend in the index remained sideways for the sixth calendar day. The sentiment rea ding of the tradable counters remained bullish.

Technology
R. Chidambaram is new TIFAC chief
Dr R. Chidambaram, former Chairman, Atomic Energy Commission (AEC) is the new Chairman of the Technology Information Forecasting and Assessment Council (TIFAC), an autonomous institution under the Department of Science and Technology (DST).

Telecommunications
W(i)LL Paswan's dream come true?
FOR the feisty Communications Minister, Mr Ram Vilas Paswan, any overt attack on his pet subjects, such as providing rural people with Wireless in Local Loop (WLL) telephone at inexpensive rates, is to be met with equal vehemence. This he demonstrated in ample measure when Opposition members, led by Congress leaders such as Mr Priyaranjan Dasmunshi, Mr Pawan Kumar Bansal, and the party's Deputy Leader in the House, Mr Madhavrao Scindia, raked up the matter during question hour in the Lok Sabha.

Bharti Telecom eyeing new foreign partner
ON top of aggressive plans to rollout its new telecom ventures with estimated investments of over Rs 6,000 crores, the Bharti group proposes to rope in a new foreign equity partner in its flagship company Bharti Telecom Ltd.

Tatas, Hughes in tie-up talks for basic telecom services
THE Tatas and the Hughes group are in talks for an alliance in basic telephony services.

Issue of licences to 4th cellular bidders -- Minister denies tender norms violation
THE Union Communication Minister, Mr Ram Vilas Paswan, has said in the Lok Sabha that the process for issue of licences to the private bidders for the fourth cellular slot in 17 circles is already under way.

Travel & Places
Durga Ma to drive tourist traffic
The West Bengal Government is planning to cash in on the State's biggest socio-religious event by turning it into a tourist package.

Tyres
JK outsourcing LCV tyres from Chinese co
JK Industries, manufacturer of JK Tyres, has tied up arrangements to outsource LCV tyres from a Chinese manufacturer for meeting the demand for in various world markets. The company is keeping its options open on outsourcing of both truck and passenger t yres from China.

Source:Business Line