Agriculture
Agriculture in India, US: Washington stimulates, New Delhi stifles
AGRICULTURE is crucial for the Indian and US economies. But while Washington has been developing this sector with vigour and imagination, New Delhi has not given it the attention it deserves.

Silk board spins Rs 1,200 cr plan to raise output
THE Central Silk Board (CSB) has formulated a Rs 1,200 crore project to enhance the productivity and quality of silk in the country. The Project for enhancing of productivity and quality in sericulture is awaiting the formal approval from the Ministry of Textiles, according to official sources.

AP farmers may revert to tobacco cultivation
FARMERS in Guntur, Prakasam and Nellore districts may revert to tobacco this season due to lack of water for alternative crops. These districts are currently in the grip of drought.

`Raise casuarina for industry needs'
FARM scientists should develop varieties of casuarina suitable for large-scale commercial cultivation and use in the paper, rayon and other industries, representatives of the industry pleaded at the fifth annual workshop on casuarina organised by the Ins titute of Forest Genetics and Tree Breeding (IFGTB), Coimbatore, at the regional forest research centre here on Monday.

Airlines
Longer flying time for West-bound AI flights
FOLLOWING the US-led bombing over parts of Afghanistan late on Sunday, Air India (AI) on Monday announced that all 11 of its weekly services from India to the West would see an addition of 30-60 minutes in their flying time.

Panalpina looks to Delhi, Ahmedabad
PANALPINA, the world's third largest air transport carrier, is examining the possibility of operating cargo flights from Delhi and Ahmedabad to their hub in Luxembourg.

Automobiles
Eicher tractor, truck sales up
THE tractor and truck sales of the Eicher group have beaten the recessionary trends in the segment by posting decent growth rates, but motorcycle sales went against the current boom in the segment, company data showed today.

Banking and Finance
Krushi Bank to be liquidated
THE Andhra Pradesh Government has decided to initiate liquidation proceedings against the Hyderabad-based Krushi Cooperative Bank which had collapsed following a payment crisis.

Commodities
What dogs commodity futures? -- I: Forward transaction ban discourages price risks
POLICY makers in New Delhi and the commodity futures market regulator -- Forward Markets Commission (FMC) -- are in a quandary over extremely poor progress witnessed in the country's commodity futures. The disappointing performance can be attributed to p oor policy support for the physical market, rather than to the systems and procedures adopted for the futures trade.

Precious metals may harden
RETALIATORY action by the US in Afghanistan is expected to drive Indian precious metal prices higher in anticipation of a strong upturn on international markets.

Consumer Electronics
Bid to overcome SEBI ban -- BPL plans to tap European markets
BPL Ltd, the country's largest consumer durable conglomerate, may use its London-based subsidiary, BPL Eurotrade Ltd, as a vehicle to raise finance for its capital expenditure plans in future.

Corporate
Godrej Consumer board meet on Oct 15
MUMBAI: Godrej Consumer Products Ltd has informed the Bombay Stock Exchange that a meeting of its board of directors is scheduled to be held on October 15 to consider buyback of equity shares.

Hero Honda board to take up special dividend on Oct 17
THE board of Hero Honda Motors Ltd will consider a proposal to offer a one-time special dividend at its October 17 meeting here, the company informed the stock exchanges today.

Asian Paints board meet on interim
NEW DELHI: The board of directors of Asian Paints Ltd will meet on October 30 to consider the unaudited financial results of the company for the quarter ended September 30, 2001.

Acquires shares in Thomas Cook
MUMBAI: Thomas Cook (India) Ltd has informed the Bombay Stock Exchange that Mr Manmohan Vir Kakkar, father of Mr Ashwini Kakkar, its CEO and Managing Director, has acquired 3,142 shares of the company at a price ranging from Rs 244.95 to Rs 257.40 per sh are aggregating Rs 7,87,503.

RCF pays Rs 20.41-cr dividend
NEW DELHI: The Union Minister for Chemicals and Fertilisers, Mr S.S. Dhindsa, received a cheque of Rs 20.41 crore as dividend from Rashtriya Chemicals and Fertilisers (RCF) for the year 2000-01, here on Monday.

MRTPC confirms order against Thomas Cook
THE Monopolies & Restrictive Trade Practices Commission (MRTPC) has confirmed its earlier injunction order passed against Thomas Cook (India) Ltd restraining it from using an impugned advertisement.

Wartsila buyback
WARTSILA Corporation today made its open offer to buy back 58.96 lakh shares of Wartsila India Ltd at Rs 120 per share. The offer closes on November 6, a news release said.

`Oyzterbay cash break-even next fiscal'
OYZTERBAY Pvt Ltd, a retail enterprise in branded jewellery business, has been in the limelight since its inception. This venture capital-funded effort was floated by six professionals led by Mr Vasant Nangia, who quit Tanishq, Titan Industries Ltd's bra nded jewellery division, early last year. Oyzterbay's product line comprising 1,000-plus offerings (priced between Rs 500 and Rs 5,000) rolled into the marketplace in February this year. Today, the brand's retail presence is through 14 exclusive high-str eet stores, 11 of which are company-owned. Mr Vasant Nangia, Chairman, in an interview to Business Line talks about the company's prospects. Excerpts:

Knight Frank makes India hub
THE UK-based real estate consultant, Knight Frank, today announced plans to set up a regional office catering to South Asian and West Asian countries operating out of India.

Power of modern corporations
"CORPORATES rule Mumbai", says Mr S. S. Tinaikar, former Municipal Commissioner of Mumbai and a retired senior IAS official. Enron's chief executive recently wrote the Prime Minister warning him of adverse consequences for the economy if the Government f ailed to respond to his proposal. Does it not sound like a tough diplomatic note of an unfriendly foreign office?

India Inc says nothing to worry
INDIA Inc today came up with a mixed response to the impact of the US air strikes in Afghanistan on the Indian economy, even as it acknowledged the resilience of the economy in facing the adverse fallout of the attacks.

US cos cut down `casual' travel
AMERICAN companies in India have become extremely vigilant in all respect and are keeping a close watch on the events in and around Afghanistan as they unfold. Though there has been no official restrictions imposed on them either by the US embassy in Ind ia or their respective headquarters, they have decided to keep their travel schedules to the minimum.

Courts
Madras HC awards compensation in land registration case
A PURCHASER of land has been awarded a compensation of Rs 60,000 by the Madras High Court for the `heavy loss' suffered by him on account of the `negligence' on the part of the registration authorities of Tiruppur Taluk in Coimbatore District by issuing a `nil' encumbrance certificate without due verification.

Economy
`Security schemes for retrenched workers must'
THE Union Labour Minister, Mr Sharad Yadav, has stressed the need for evolving specially-designed social security schemes for retrenched workers.

Exim sops will stay on paper for SEZs
DEVELOPERS of Special Economic Zones (SEZ) may be in for some disappointment. The Government is unlikely to implement the seven-month-old Exim Policy proposal to allow developers to procure or import goods at a concessional rate of duty for building infr astructure in these designated enclaves.

Importance of knowledge-based economy stressed
DEVELOPING countries need to transform from a brick and mortar economy into a more knowledge-cum-technology driven economy and for that it is necessary to reassessment of strategies for growth and development.

Pushing 2-G reforms
THE CII, FICCI and other major various industry organisations have been pressing for speedy adoption of second generation reforms which among other things seek to amend labour laws, ensure little intervention of the government in corporate policies and an uneven field, meaning not level-playing, where they will have a free hand to take the country forward in their own way.

A case against subsidy chopping
IT HAS become fashionable among the elite in India to air views such as ``there is no such thing as free lunch''. They feel comfortable only when the free-market economy gets three cheers. But there are still those who were either accustomed to, or aware of, free lunches and the occasional luncheon even in the erstwhile princely regimes. Though there was discrimination in their reach and spread, it was expected that the democratic system would rectify such aberrations and that the state would reach out to all the needy in ways that were far more generous.

Sinha plays it cool
THE Finance Minister, Mr Yashwant Sinha, sought to downplay the impact of the US-led air strikes on Afghanistan on the Indian economy, saying that ``it would have very little impact''. According to him, there was really no urgency now to put in place any contingency plans.

Jalan keeps counter open
THE RBI Governor, Dr Bimal Jalan, has sent out a clear message that the country's central bank would intervene to meet any temporary demand and supply imbalances in the forex market.

Extradition pact with UAE is operational
THE extradition treaty and other agreements between the UAE and India for mutual legal assistance in criminal, civil and commercial matters is now in operation and could prove useful if specific needs are made out, according to a senior official of the I ndian Ministry of External Affairs.

Investors urged not to panic
WHILE the world capital markets are cracking up in the aftermath of September 11 terrorist attack on the US and the US-led coalition's attack on Afghanistan from yesterday, the CEO of a prominent Indian mutual fund has expressed confidence that India may prove to be an Oasis in a desert.

`US recession, not war, is hurting more'
THE US offensive in Afghanistan has not caused any reaction in the economy that was not caused by the expectation of it. The panic in stocks, fall in currencies, increase in war risk premiums -- everything has happened already and the bad news factored i n.

Cut down delays in approvals, say FIIs
FOREIGN investors who are at different stages of implementing their approved projects have urged the Foreign Investment Implementation Authority (FIIA) to initiate steps for cutting down delay in grant of various approvals and permissions by the Ministri es concerned and State Governments after the FDI proposal is approved by the Foreign Investment Promotion Board (FIPB).

Security of small savings
This refers to `Tax sops on small savings must go: Panel' (Business Line, October,6). The recommendations of the high-level Y. V. Reddy panel for withdrawal of the existing tax

Fast track
Stocks continue to head south
After a free fall, markets did seem to revive but the expectation was short-lived. On Monday, the stock markets again headed southward and closed marginally lower.

Foreign Trade
US terror attacks hit movement of cargo
WAR might have finally broken out on Sunday night, but the movement of Indian import and export cargo has been affected from September 11 itself.

Hotels
US attacks worry hotel industry
THE bombing of Afghanistan has brought with it a wave of fear and uncertainty in to the hospitality industry even as it is struggling to revive after the spurt of cancellations resulting from the attacks in the US on September 11.

Infrastructure
Land allotment for Gopalpur LNG project to be over soon
THE allotment of about 1000 acres of land for the proposed LNG project at Gopalpur will be complete by the end of this year or early next year, according to Mr K.V. Singh Deo, the Orissa Minister for Industries.

Insurance
Pvt cos see war-risk cover as asset
PHYSICAL assets of public sector utilities, refineries and some of the private sector companies are in a vulnerable situation since none of them is currently covered against war risks.

Mutual Funds
Unit Trust bids adieu to assured return schemes -- New scheme to have no income guarantee
AT Unit Trust of India, the curtains are finally coming down on assured returns. The country's largest fund house has mooted a regular-income scheme, which seeks to distribute income, if any, on a periodic basis.

PSU
PSU stocks up on divestment hopes
THE stock prices of PSUs lined up for disinvestment were in the limelight on Monday following the Government's decision on Friday to privatise CMC and HTL. The rise was despite across-the-board selling following the US-led attack on Afghanistan.

Petrochemicals
HPL spends Rs 97.12 cr on tech licence fees
HALDIA Petrochemicals Ltd (HPL) has had to fork out Rs 97.12 crore as technology licence fees during 2000-01.

Petroleum
`Comfortable' stock of petro-products
THE supply position of large consumption petro-products such as petrol, diesel, kerosene and LPG is comfortable, according to Government officials.

Pharmaceuticals
Beware of snakes, remedies are few
DO you know that it is highly difficult to get medicine if a snake bites you in India? The total production of anti-snake venom serum (ASVS) in the country is just above half of the demand for it.

Policy
I&B Ministry throws a spanner in Dow Jones' subsidiary wheel
THE proposal by Dow Jones Company Inc to set up a wholly-owned subsidiary in India has been put on hold for the second time by the Government on grounds that the issue of print media policy is pending before the Parliamentary Standing Committee.

Rubber
`Higher rubber prices hitting rubber goods sector exports'
EXPORT production costs for the rubber goods sector, including the tyre segment, have increased enormously in view of domestic rubber prices ruling higher than international prices and absence of facility to import the commodity under advance licence sch eme (ALS), an industry official has said.

`Higher rubber prices hit exports of goods sector'
EXPORT production costs for the rubber goods sector, including the tyre segment, have increased enormously in view of domestic rubber prices ruling higher than international prices and absence of facility to import the commodity under advance licence sch eme (ALS), an industry official has said.

Shipping
Tolani open offer begins
MUMBAI: The open offer of Tolani Shipping Co Ltd to acquire public shareholdings of Tolani Bulk Carriers Ltd opened on October 8.

Meet of shipping lines called
INDIA'S maritime administration has called an emergency meeting of domestic shipping lines on Tuesday to assess the impact of the US retaliatory attack on Afghanistan on the movement of ships, particularly crude tankers, between India and the Gulf countr ies.

Extra risk premium on merchant fleet
AN additional war risk premium of 0.05 per cent of the value of ship is being imposed on Indian merchant fleet.

Expenditure panel report irks Shipping Ministry
A REPORT containing drastic measures suggested by the Expenditure Reforms Commission (ERC) has raised the hackles of the Union Shipping Ministry.

States
TN sanctions food park at Aruppukottai taluk
THE Tamil Nadu Government has sanctioned the setting up of a Food Park (an industrial estate for food processing industries) at Aruppukottai Taluk in Virudhunagar district.

New cost sharing plan for Bangalore ELRTS
IN the prolonged tug-of-war over the cost of the country's first private promoted Elevated Light Rail Transport System (ELRTS) project, the UB led promoter consortium has now proposed an alternative cost sharing arrangement with the nodal Bangalore Mass Rapid Transit Ltd (BMRTL).

Steel
RINL turnover up 20% in H1
VISAKHAPATNAM: Steel major Rashtriya Ispat Nigam Ltd (RINL) has reported its best half-yearly performance in the current fiscal, recording a 20 per cent increase in turnover and 23 per cent increase in domestic sales as compared to the first six months o f the last fiscal.

Stocks
HZL, VSNL, IBP stand to gain in weak trend
AFTER the first US attack on Afghanistan, the bourses opened on a weak note. Though the effects of the attacks have already been discounted in the price movements of the past couple of weeks, the markets experienced a further downside on Monday. Though certain company-specific developments on the domestic front did give a fillip to a handful of stocks, the overall mood was negative.

Lyons Range
KOLKATA: THE impact of the US strikes on Afghanistan could not be felt as much at the Calcutta Stock Exchange on Monday as players waited for signals to come from the US markets.

Uncertainty rules the market
EQUITIES tumbled, rupee weakened and bond prices firmed up while commodities such as crude and yellow metal hardened today following the air strikes on the targets in Afghanistan by the US-allied forces Sunday night. Though widespread nervousness was see n in various markets across Asia, there was no great war fear, as reflected in moderate fall in equities and modest rise in bond and oil prices.

Tea
FAO meet on tea
NEW DELHI: As many as 120 delegates from abroad and 70 delegates from within the country are expected to participate in the 14th Session of the Inter-Governmental Group (IGG) on Tea to be held in the Capital under the Food & Agricultural Organisation (FA O) from October 10 to 11.

Technical Analysis
Bears dominate
RIGHT from the initial hours of Monday's trading, the bears were in total control. Nifty opened with a weaker note and saw a fall of around 30 points from Friday's close within few minutes of trading. Bulls managed to recover partially. Nifty closed w ith a net loss of 12 points with respect to previous close. The sentiment of the market turned mildly in favour of the bears.

Telecommunications
Kolkata circle sells more telephone cards
BHARAT Sanchar Nigam Ltd (BSNL)'s Calcutta Telecom District has notched a four-fold rise in revenue generation from sale of prepaid Indian Telephone Cards (ITC) in the last two-and-a-half months. In September 2001, ITC sales touched Rs 1.25 crore, up fro m a little over Rs 30 lakh in June 2000.

Terrorism
Will it be an American blitzkrieg?
THE air strikes on Kabul, Kandahar and Jalalabad in Afghanistan launched on October 7 by the US are the long-expected culmination of a series of tragic events set in motion by the terrorist attacks on New York and Washington a month earlier. The only sur prising aspect is that the US took so long to take the plunge, with its reputation for being in a state of battle-readiness round the clock, and for being quick on the draw.

From Bosnia, with terror
THE Lashkar-e-Toiba (LeT), the militant wing of the Pakistan-based Markaz Dawa wal Irshad (MDI), has been behind most of the recent terrorist attacks in Jammu and Kashmir (J&K). It describes its objective as three-fold: First, to `liberate' J&K and have it merged with Pakistan; second, to similarly `liberate' Hyderabad and Junagadh, which it considers as rightfully belonging to Pakistan, and have them brought under Pakistan's sovereignty; and, third, to `liberate' Muslims living in other parts of India and create two more `homelands' for Muslims of the sub-continent, one in North India and the other in the South.

Carrot and bomb
One of the six Japanese C-130H transport planes that made a refuelling stop at Kolkata airport on Monday, en route to Pakistan with relief supplies for Afghan refugees.

A Kabuliwalah's cry for peace
FARAWAY from the war zones of Afghanistan, the message of peace and non-violence is being spread here by a small group of Pakhtoons led by Ms Yasmin Khan, the great granddaughter of Khan Abdul Ghafoor Khan, better known as the Frontier Gandhi.

Self-righteousness vs the law
EVEN as the US-led ``war on terrorism'' has escalated into a militarised phase with the deployment of air and cruise missiles against what the American President, Mr George W. Bush, has described as ``Al-Qaeda terrorist training camps and military instal lations of the Taliban regime'' in Afghanistan, there is some evidence that there exists two distinct schools of thought in the US Government about the appropriate response to the September 11 terrorist attacks on the World Trade Center and the Pentagon.

The world sees US strikes through Al-Jazeera cameras
EVEN as the US struck back late on Sunday night, a non-descript Arabic channel called Al-Jazeera brought in visuals of Afghanistan and Al Qaeda leader, Osama bin Laden's call for `Jehad' to television sets across the world.

Testing times
With the launching of attacks on their country, the Afghan people, who have been suffering over the past decade, will now suffer more agonies. The large-scale exodus from Afghanistan will create problems for neighbouring countries. Pakistan is forced to put up a fight against its once puppet body, Taliban. In the process, there may be a large-scale backlash against the military regime.

Whither secularism?
Jalgaon, in Maharashtra, is considered a communally sensitive town, as it has witnessed communal violence more than once. Unfortunately, post September 11, the situation there is worsening as a group of Muslim youth, backed by fundamentalist leaders, hav e been going around the town shouting slogans hailing the notorious terrorist-backer, Osama bin Laden. The town's sarpanch, Mohan Dethe, tried to stop the procession but was beaten brutally and had to be admitted to a local hospital. Communal tension is said to be brewing in this area.

Textiles
New office bearers of TEKIC
COIMBATORE: Mr Ahill S. Rathanasamy and Mr J.D. Roy have been elected President and Secretary respectively of the Tirupur Export Knitwear Industrial Complex (TEKIC). The other office bearers elected include Mr Udhayakumar and Mr P.G. Krishnamoorthy (Vice -Presidents) and Mr N. Mahalingam, Treasurer. The new office-bearers elected will hold office for a three-year tenure. -- Our Bureau

Drawback revision leaves textile sector peevish
THE textile industry, which accounts almost for a quarter of the country's aggregate exports, felt aggrieved at the recent announcement of revised duty drawback rates on some 300-odd export products and removal of value caps on 400 items under the Duty E ntitlement Pass Book (DEPB) scheme.

Travel & Places
Wahi elected IATO President
THE Indian Association of Tour Operators (IATO) at its annual general meeting on October 6 has elected Mr I.S. Wahi as its new President.

Tyres
Two more members inducted in tyre industry body
THE Central Government has inducted two more members into the Development Council for Tyres and Tubes industry. The Director-General of the Bureau of Indian Standards (BIS) and the Director of the Automotive Research Association of India (ARAI), Pune, ha ve now been appointed as members of the council, which was constituted in April.

Dumping duty on SBR to remain
THE Designated Authority's recommendation for withdrawal of definitive anti-dumping duty on certain grades of styrene butadiene rubber (SBR) used by the tyre industry has not found favour with the Finance Ministry as the three-month period for its withdr awal ended on October 3.

Source:Business Line