Mumbai: Reserve Bank of India governor D. Subbarao will meet chiefs of a few large public sector banks on Friday, 28 November, in the central bank’s headquarters in Mumbai to take stock of the bank credit flow into small and medium enterprises according to a senior banker who does not wish to be named. This will be Subbarao’s second meeting with public sector bank chiefs after the mid-year review of monetary policy in October.
—Staff Writer
*********
After closure at Dunlop, Jessop faces job cuts
Kolkata: After suspending production at Dunlop India Ltd, Kolkata-based businessman Pawan Kumar Ruia, who heads it as chairman, has decided to cut jobs at Jessop and Co. Ltd, the engineering firm he took over from the Union government.
At a press conference in Kolkata on Sunday, Ruia said Jessop has some 468 employees in administrative functions, but doesn’t need more than 200. “We have launched a voluntary retirement scheme (at Jessop), and have received 100 applications so far,” Ruia added.
The closure of Dunlop’s Sahaganj factory, announced earlier this week, made some 1,200 workers jobless though they haven’t been retrenched. The company claims to be paying a “subsistence allowance” to these employees.
Dunlop is looking to borrow a minimum of Rs70 crore from banks to restart production at the factory, but getting loans now isn’t easy. Ruia is also pressuring the state government to offer sales tax waiver to Dunlop for 10-12 years. “We are supposed to get this benefit…the government is considering the issue,” Ruia said.
—Aveek Datta
*********
Jet proposes 5-10% salary cut for employees
Mumbai: Jet Airways management was on Sunday understood to have suggested a 5-10% salary cut for its employees drawing monthly salary above Rs75,000 and a voluntary retirement scheme for older staff.
A meeting of the management, presided by chairman Naresh Goyal here, has decided to have a graded salary structure for all employees but kept a threshold for it saying those drawing Rs75,000 per month would not face any cut in their salary, sources said.
The management is also understood to have set up a committee to study the graded structure. However, the management was unable to convince its domestic pilots to accept salary cuts ranging from 10-20%, sources said.
—PTI
*********
Centre may allow export of wheat flour
New Delhi: Government may allow export of wheat flour, which was banned last year along with wheat as part of a host of steps to contain inflation.
“Allowing export of wheat flour is under consideration,” commerce secretary G.K. Pillai has said.
It is also going to review the sharp increase in the minimum support price (MSP) of cotton and minimum export prices (MEP) on basmati.
“MSP on cotton is a major issue because the increase in the MSP has been almost Rs700, compared with normal Rs40-50 every year. We have taken up the issue separately. The textile ministry will take a note to the cabinet and find a solution for that,” he said.