Automobile major, Tata Engineering & Z\Locomotive Co Ltd (Telco), has deferred capital investment to the tune of Rs. 700 crores, citing poor market conditions. The deferred investment, out of a total investment of Rs. 2,800 crores originally planned for 1997-98, pertained to capacity expansion for its heavy, medium and light commercial vehicles, a top company official told Business Line. In response to queries stemming from an official press release from rating agency Standard & Poor’s (S&P), he said the deferring of investment would be reflected in next fiscal’s balance sheet, while capital expenditure for the current year would proceed as scheduled.

Banks decide not to offload US-64 units

Though tempted to offload their holdings in the US-64 scheme of the Unit Trust of India (UTI), the public sector banks, which have substantial investments in the scheme, have decided against going in for any redemption to avoid adding to the turbulence in the capital market. Highly-placed bankers manning the investment section of leading public sector banks said that a conscious decision has been taken to hold on to their investments in US-64 scheme in order not to create any adverse effect on the stock market.

Fears over UTI unfounded: Sinha

The Finance Minister, Mr. Yashwant Sinha, said that Unit Trust of India (UTI) had no plans to unload shares, and investors had no reason for concern. "I am told that UTI has no such plans," Mr. Sinha told Reuters Television in an interview in Washington during the annual meeting of the IMF and the World Bank.

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