Automobiles
About 5,000 Palios sold
FIAT India Ltd, which has sold about 5,000 units of the Palio so far, has on hand orders to deliver a further 5,000-6,000 units.

Santro, Accent drive away with J.D. Power honours
THE Santro and the Accent, both from Hyundai Motor India Ltd (HMIL), have topped their respective categories in the J.D. Power Asia Pacific 2001 India Automotive Performance, Execution and Layout (APEAL) Study, results of which were disclosed today.

Kinetic hopes to zip away with mobikes
TWO-WHEELER manufacturer Kinetic Engineering is gearing up to rapidly expand its presence in the motorcycles segment and has planned a string of launches in the next six months which will put it in the race for a larger share of the rapidly growing marke t.

Maruti debt doubles to Rs 1,112.1 crore
MARUTI Udyog Ltds market borrowing reached an all-time high of Rs 1,112.1 crore in the 2000-01 financial year, more than double the figure of Rs 546.1-crore in the previous year, as the company heavily invested in new models and capacity expansion.

Banking and Finance
Bouncing of cheques
The proposed amendment to the Negotiable Instruments Act, allowing banks to pay the customer the balance available in the account, is not likely to bring considerable relief to affected parties. Though it may be successful in Scotland and France, one dou bts whether it will suit Indian conditions.

PSU banks
In `Are public sector banks inefficient?'(Business Line, November 24), the author has compared public sector commercial banks with new private sector banks and foreign banks, mainly in respect of net profits, and operating costs. Though the PSU banks com pare unfavourably in all the respects, the worst disadvantage, it appears, is the high wage bill that forms the operating cost.

Cigarettes
Plea to cut excise duty on cigarettes
WORRIED over a depressed market, Virginia tobacco growers from Karnataka have urged the Centre to withdraw the 15 per cent surcharge and reduce the excise duties imposed on cigarettes.

Commodities
Global oilseeds output may scale new peak
GLOBAL production of major oilseeds is likely to reach a new high in 2001-02 on the back of record soyabean output, so will oilseeds crush. This will lead to record protein meal production, consumption and trade in the current year. World vegetable oil p roduction, consumption and trade will also witness expansion but at a slower rate leading to drawdown of stocks.

Tobacco growers asked to pare production
THE tobacco growers of Andhra Pradesh and Karnataka should co-operate and work in tandem with each other to safeguard their interests, as otherwise they will fall prey to the designs of the trade, Dr Y. Sivaji, President of the AP Virginia Tobacco Grower s Association, has said.

Corporate
Thermax disposes electronics arm
THERMAX Ltd said here on Monday it had sold off its subsidiary Thermax Electronics to Thakor Electronics Ltd for an unspecified sum. The deal was recently finalised with land, building, plant and machinery, the company said.

VRS payments begin at Binny
THE management of Binny Ltd today commenced payment to the workers who had opted for the voluntary retirement scheme and who were yet to receive any compensation.

`Corporates must adapt to changing standards'
CORPORATES can gain respectability if they follow market ethics and focus not just on growth equity but on distributive equity, said Mr Darin Vovre, President of the Centre for Innovation in Corporate Responsibility, Canada, here on Sunday.

Fresh exits create void at SWC top
THE Manu Chhabria-controlled Shaw Wallace & Company Ltd (SWC) is gripped by fresh shakeouts in high-level management. This time, two top executives, Mr Krishna Angara and Mr Sridhar Chary, have put in their papers, continuing the trend in exodus from the company.

Hunt on for `suitable boy' for Burnol
BURNOL, the over-the-counter (OTC) antiseptic cream from Reckitt Benckiser (India) Ltd (RBIL), is said to be looking for a potential buyer.

Manu back in action
THE Dubai-based Mr Manu Chhabria, Chairman, Jumbo Group, the holding company controlling liquor major Shaw Wallace and half-a-dozen other companies, is back in action in India after a long gap.

TCG launches woman entrepreneurship programme
THE Chatterjee Group (TCG), owned by Mr Purnendu Chatterjee, has launched its first Woman Enterpreneurship programme.

Sinha to inaugurate FICCI annual meet
BREAKING the tradition of the last few years, the 74th annual session of the Federation of Indian Chambers of Commerce & Industry (FICCI) would be inaugurated by the Union Finance Minister, Mr Yashwant Sinha, and not the Prime Minister, Mr A.B. Vajpayee. The session is scheduled between December 5 and 6.

Ear to the ground
Infosys up sharply on rumours
INFOSYS Technologies remained frozen in the 10-per cent upper circuit on both the bourses Monday. It closed at Rs 3,910.15 on the BSE and Rs 3,904.90 on the NSE. There were various rumours floating in the market regarding the sharp rise in the price. One rumour indicated that the software major might consider a bonus issue. Another rumour was that a number of short sellers were trapped in the counter and large number of shares would be auctioned after the closure of todays market. In another market talk , a big US-based FII was actively buying the stock. A number of rumours have been floating the market in the last few days. Last week, there was a rumour that the company had bagged a $150 million order from the US-government. Though none of the rumours have been confirmed, the scrip has risen by over 30 per cent.

Economy
Food distribution and growth-equity linkages
THE total quantity of foodgrains with the public sector soared to 62 million tonnes in June 2001, compared to 42 million tonnes a year ago. These stocks are most likely to swell further because the kharif output of foodgrains for 2001-02 has set an all-t ime record of 106 million tonnes. On the other hand, India continues to be home to the largest absolute number of under-fed and under-nourished people in the world. Thus, semi-starvation and under-nourishment co-exist with the mountain of the so-called s urplus foodgrains. How does one explain the paradox?

Financing hurdles for developing countries
DEVELOPING countries face the grim prospects of a sharp fall in exports with increase in current account deficits, a substantial decline in private capital flows with official financing continuing at lowest levels, and limited access to international cap ital market. After a decade of surging private capital flows, including foreign direct and portfolio investments, developing countries have entered a period of difficulty in mobilising external finance so critical for balance of payments and support for development.

Global downturn and the prospects for recovery
WHEN the IMF was preparing the World Economic Outlook that was released in October, it had estimated that global growth would be marginally lower than it had predicted in May this year. Global growth was at that time projected to touch 2.6 per cent in 20 01, which was 0.6 percentage points below the Funds May projections and more than 2 percentage points below the unexpectedly high (4.7 per cent) rate of growth recorded in 2000. Much has happened since those estimates were prepared, including the Septemb er 11 terrorist attacks in New York and Washington.

$10-m capitalisation for housing mooted -- FDI clause may include lock-in
THE Government has proposed a minimum capitalisation norm of $10 million and a 3- to 5-year lock-in period for investments in a draft policy paper on permitting foreign direct investment (FDI) in the housing and real estate development sector.

DSIR to focus on tech-driven exports
THE Department of Scientific and Industrial Research (DSIR) has focussed its Tenth Plan proposals on increasing the share of technology-driven content in India's exports.

Positive growth in farm goods, leather, chemicals exports
A SAVING grace in the negative export growth during the first five months of the current fiscal is the turnaround in the export of agriculture and allied products, a modest positive growth in leather and manufactures, chemicals and related products and a salutary show by petroleum products and unclassified exports.

CII maps a new agenda
IN tune with the prevailing business climate, the apex industry chamber - Confederation of Indian Industry (CII) - has forged a changed agenda.

Trade body's rural approach lauded
THE Union Agriculture Minister, Mr Ajit Singh, today lauded the India Trade Promotion Organisation (ITPO) for putting considerable focus the last two years on the role of India's rural backwoods in entrepreneurship despite certain inherent limitations.

World economic outlook pessimistic: Jalan
THE world economic outlook is more pessimistic post-September11 events than it was a few months ago, according to the RBI Governor, Dr Bimal Jalan.

Editorial
Cementing time
THE RECENT STRATEGIC alliance resulting from Grasim buying a 10 per cent stake in L & T carries forward the structural changes that the cementdomestic cement industry has been witnessing in the last four years or so. The Grasim deal matches in import and implication the one that saw the Gujarat Ambuja group buying out the Tatass 14.4 per cent stake in and ACC in December 1999. The re-structuring in the industry It all had been set off started in December 1997 when Modi Cement changed hands. After a lu ll in 1998, there was ere a spate of deals in 1999 and 2000.

Education
IIChE-Jadavpur varsity tie up for career guidance
THE Jadavpur University (JU) and the Indian Institute of Chemical Engineers (IIChE) have jointly launched an initiative in the sphere of career guidance and human resource management.

Talent search throws up nice surprises
IF there's one thing the Intel Science Talent Discovery Fair (Intel STDF) proves, its that the spirit of scientific inquiry is alive and kicking in this country, satellite TV notwithstanding. Consider this: The 2001 edition of the fair received 947 proje ct synopses, of which 171 projects were selected to participate in the city fairs, with 66 making it to the national finals.

Environment
`Civic bodies caught in debt servicing trap'
URBAN civic bodies in the developing world are finding it difficult to service debts accessed through the capital market, Prof Amitabh Kundu of the Jawaharlal Nehru University stated here today.

Financial Performance
CESC posts Rs 203.81-cr loss; to skip dividend
THE once cash-flush CESC Ltd has reported a Rs 203.81-crore loss for 2000-01 against a Rs 124.23-crore loss in the previous year.

IVRCL net up at Rs 5.54 cr
IVRCL Infrastructures & Projects Ltd has posted a turnover of Rs 150.14 crore and a net profit of Rs. 5.54 crore during the six-month period ended September 30. There was a significant increase in the companys turnover as well as profit when compared to the turnover of Rs 101.52 crore and a net profit of Rs 4.69 crore during the corresponding period last fiscal.

Foreign Trade
Benazir urges S. Asian co-operation on WTO
THE former Prime Minister of Pakistan, Ms Benazir Bhutto, on Monday said that South Asian countries are yet to hold meaningful discussions on how they should approach the various issues raised at the recent World Trade Organisation (WTO) meeting.

`Doha pact challenges will have to be met'
EVENTHOUGH the implications of WTO agreement is perceived to be tilted in favour of the developed nations, the developing countries have realised that the challenges would have to be met and nothing would be gained by coming out of the group.

Drawback hiked for 29 products
IN yet another move to boost exports, the Finance Ministry has hiked duty drawback rates on 29 categories of export products.

Infrastructure
`SCM to play key role in global trade'
EFFECTIVE supply chain management (SCM) has a significant impact on cost of product and could be a key factor in ensuring competitiveness in the global market, according to Mr S.B. Lovekar, Vice-President (South), Indian Institute of Materials Management (IIMM).

Miscellaneous
The `business' of acting
THEATRE is increasingly becoming a part of the business world. Shakespeare-acting courses for executives are becoming popular. The Boston-based theatre group, Ariel, has on its roll many Fortune-500 executives from General Electric, Mobil and Deloitte an d Touche. Since the Bard's plays touch on different types of leadership-styles, ranging from the dictatorial to the democratic, the crash courses in acting have great relevance for CEOs and others saddled with administrative responsibility. In a given si tuation, how would you behave: Like a captain, tyrant or democrat?

On the hedge
Keen demand for Reliance Petro, Satyam Computer options
THE derivatives segment did not quite dance to the tune of the spot market, which rose handsomely during Monday''s trading at the National Stock Exchange. Here are some of the pointers from the day's trading:

PSU
Andrew Yule bid to stem slide thru `other income' -- In talks with ONGC for lease rent deal
ANDREW Yule & Co Ltd has launched a major exercise to raise funds in the next six months through the other income route.

Petrochemicals
FIs discuss Haldia Petro
HEADS of financial institutions (FIs) met here today to discuss the fate of the troubled Haldia Petrochemicals Ltd.

Petroleum
ONGC shelves naphtha exports
CRASHING international oil prices have forced Oil and Natural Gas Corporation Ltd (ONGC) to shelve its naphtha exports.

Govt to gain Rs 400 cr by freeing natural gas price
THE Government's decision to free domestic natural gas pricing by linking it to 100 per cent parity with the price of international fuel oils will help the exchequer net close to Rs 400 crore during 2001-02.

Pharmaceuticals
Wockhardt drops China unit plans
WOCKHARDT Pharmaceuticals has shelved its overseas plans to set up facilities in China, according to Mr Habil Khorakiwala, its Chairman and Managing Director.

Power
A.V. Birla group not keen on Dabhol
THE A.V. Birla group today said it is not interested in buying a stake in the Enron-promoted Dabhol Power Co (DPC), although it appears to have studied the power project.

Vijaynagar power project in limbo
THE Karnataka Governments attempts to salvage the 500 MW Vijaynagar Power Project with the help of the National Thermal Power Corporation Ltd (NTPC) has come a cropper.

Rubber
Rubber market remains flat
RUBBER market remained flat on Monday with RSS 4 at Rs 26.25, RSS at Rs 25.50, ungraded rubber at Rs 24.25, block rubber ISNR 20 at Rs 25.50 and latex 60 per cent at Rs 25per kg.

States
New posts in TN banned
THE Tamil Nadu Government has imposed a complete ban on the creation of new posts in all departments. It has also decided that wherever posts are required for operational purposes, it would be filled up by redeployment.

Kerala to reform labour laws
THE Kerala Government will bring in comprehensive reforms in labour laws in line with the challenges posed by the need for the speedy industrialisation of the State.

Stocks
Padmalaya Tele spurts ahead of Hindi films release
THE Padmalaya Telefilms Ltd (PTL) was locked in the eight per cent upper circuit on the BSE. The PTL scrip has increased from Rs 60 in the beginning of October to todays closing price of Rs 106.50.

Acquisition of Aftek Info shares-- SEBI issues notice to Ketan Parekh firms
THE Securities & Exchange Board of India (SEBI) has issued a show-cause notice to certain entities connected with Mumbai-based broker Ketan Parekh for violating takeover regulations in the private placement of Aftek Infosys Ltd.

Court attaches properties of defaulting brokers
THE Calcutta Stock Exchange has suspended four of its members, recently notified by the Custodians office for attachment of all their property.

Index heavy-weights gain strength
RENEWED interest in many of the index-heavy counters led to a broad rally in the 30-share Bombay Sensitive Index on Monday. However, a significant proportion of the movement came in from the new-economy flanks, boosted by positive sentiments from the Nas daqs firm close this week-end.

Sensex at new peak
INDIAN stocks jumped up on Monday in tandem with equities in major Asian markets, with the BSE-30 Shares Sensitive Index (Sensex) hitting a new three-month high as did the Japanese benchmark Nikkei-225.

Private financing behind select IT stocks
THE Securities and Exchange Board of India (SEBI) has traced a private financing source that is active in certain technology stocks.

Taxation
E-com, transfer pricing to be I-T focus areas
THE Indian taxation authorities have zeroed in on taxation of e-commerce and the new legislation on transfer pricing as focus areas in the ensuing fiscal, considering the surge in cross-border transactions.

Audit of service tax assessees on the cards
STOCK-BROKERS and telephone service providers are set to come under the taxman's lens, with the Finance Ministry planning to kick off selective audit of established service tax assessees.

Ministry begins work on uniform tax regime
THE Finance Ministry proposes to begin work on integration of both Central and State taxes in a bid to create a uniform tax regime.

Tea
Lock-out at Kothari group tea estate
THE Waterfall Estates of the Kothari Industrial Corporation in Valparai has declared a lock-out from Monday, November 26 following differences over the bonus issue.

Tata Tea to launch new brand every quarter
BASED on the feedback from the consumer and its willingness to adapt to changing requirements, Tata Tea will be launching a new brand in the market once in three months.

Technical Analysis
Bulls dominate proceedings
RIGHT from the initial hours of Mondays trading, the bulls were in total control of the days proceedings.

Technology
Thai PM visits ISRO centre
THE Prime Minister of Thailand, Mr Thaksin Shinawatra, who has arrived in Bangalore on a two-day trip, visited the ISRO Satellite Centre on Monday.

Acid test for human cloning begins
ADVANCED Cell Technology Inc (ACT) on Monday announced publication of its research on human somatic cell nuclear transfer and parthenogenesis. The report, published in Journal of Regenerative Medicine, provides the first proof that reprogrammed human cel ls can supply tissue for transplantation.

Textiles
ICMF bid to draw road-map for textiles
INDIAN Cotton Mills Federation (ICMF) says that its interaction with up/downstream textile manufacturing sectors is not limited only to evolving consensus on fiscal structure acceptable to each one of them. But it is aimed at drawing a `road map' for Ind ian textile sector as a whole.

Spindle-based duty regime favoured
THE issue of a desirable excise duty rate structure being debated among different textile manufacturing segments has gained a new angle with some sectors evincing interest on `spindle capacity' based excise duty regime instead of the current `Cenvat' exc ise duty structure.

Knitwear sector seeks GSP from EU
KNITWEAR exporters from Tirupur have urged the Centre to initiate dialogue with the European Union on getting the Generalised System of Preferences (GSP) extended to apparels exports from India.

Transport
IR: Off the track?
This refers to the editorial, `Puffing off-track' (Business Line, November 5), which is a wake-up call to the Railways. Disposal of excess land belonging to any department of the Government — Central or State -- is advisable, as it is vulnerable to encroachment.

Travel & Places
Malaysia earmarks $1-m adspend for India
THE Malaysia Tourism Promotion Board (MTBP) has an adspend of $1 million for 2001 in India and will be spending as much or more during the next year, Mr Mirza Mohammad Taiyab, Director, International Marketing, MTPB, said.

Tyres
Probe to review duty on nylon tyre cord fabric
THE Designated Authority in the Commerce Ministry has initiated investigations to review the need for continued imposition of anti-dumping duty on imports of nylon tyre cord fabric (NTCF) from Indonesia, South Korea, Thailand and Taiwan.

Source:Business Line