Comments
June 12, 1995
With time overruns becoming commonplace for most Indian projects, the International Finance Corporation (IFC), the World Bank’s private financing arm, is insisting that ventures part financed by it should come under the Advance Loss of Profit (ALP) policy. The ALP policy, a cover introduced recently in the Indian insurance market, protects project investments against loss of potential earnings due to commissioning delays. For availing themselves of its benefit, the delay should be for reasons stated in the policy document.
OIDB cuts lending rates
The Oil Industry Development Board (OIDB) has slashed its term lending rate to 14 per cent from 16 per cent to link its interest rate with the financial institutions’ prime lending rate. The OIDB has decided to delink itself from the government lending rate, which is 2-3 per cent higher than the FI rates. The Board will thus discontinue the practice of offering term finance 1 per cent lower than the government rate but will fix it in tune with the FIs’ PLR.
Survey reveals increase in capital intensity
The “key results” of the annual survey of industries (ASI), recently announced by the Ministry of Planning and Programme Implementation, covering census factories employing 100 or more workers, reveal an increase in capital intensity and a simultaneous fall in organised employment elasticity. As per provisional ASI data compiled for 1993-94, there was a 26.1 per cent nominal rise in fixed capital formation in the organised factory sector to Rs. 1,16,946 crores from Rs. 92,736 crores in 1992-93. At the same time, there was a mere 1.1 per cent increase in the number of workers employed.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.