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.
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.
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.
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.
He also said, “Lowering of basmati MEP is an issue which we are willing to consider straightaway, and something can be done.”
Finolex eyes Rs600 cr from EHV cable business
Mumbai: Pune-based electrical and communication cables manufacturer, Finolex Cables Ltd, is targeting a Rs600 crore revenue from its upcoming extra high voltage cable (EHVC) plant, a top company official said.
“In the first year of production, the plant is likely to generate a revenue of Rs250 crore, but we expect an annual revenue of Rs600 crore from the plant at its full capacity,” managing director Deepak K. Chhabria said.
The plant was likely to achieve full scalability in three years, he said.
With a 1,000km capacity per year, the plant is expected to start production over the next 18 months, he said.
India may get away with crisis ‘lightly’: Plan panel
New Delhi: India will get away lightly with the global financial meltdown, which has pushed the economies of the developed world into a recession, according to the Planning Commission.
“The international situation has changed ...India could get away lightly due to its limited exposure in the international market,” the commission said in its recent analysis on the impact of global financial crisis on India.
Pointing out that India is not immune from the happenings in the international arena, it said, “If there is a decline in the capital inflow, as a result of the foreign investors’ need for liquidity, the stock markets would get affected.”
Falling crude prices will not impact CTL project
New Delhi: Despite the fall in global crude oil prices, the government is going ahead with its ambitious coal-to-liquid (CTL) project, with its technical advisors suggesting that firms such as GAIL (India) Ltd, Jindal Steel and Power Ltd, GMR group and Tata Group’s Strategic Energy have proper technologies.
Converting coal into liquid crude oil is thought to be viable only if the oil is sold at a price not less than $80 per barrel. But despite international prices falling to $50 a barrel, the government planners are keen to diversify the energy basket and start at least one CTL pilot soon, official sources said.
Jhajjar plant: land acquisition completed
Chandigarh: The Haryana government has completed acquisition of 1,115 acres of land for the establishment of a 1,320MW thermal power plant to come up at Jhajjar, a Haryana Power Generation Corp. Ltd spokesperson said here on Sunday. With the acquisition, the government is fast nearing the process of completion of the facilitation committed in the power purchase agreement, the spokesperson said.
TCS’ passport project set to start from March
Kolkata: The Tata Consultancy Services Ltd (TCS) is set to roll out a Rs1,000 crore Passport Seva Project from March 2009, which would have a nation-wide presence by the year-end.
“The pilot project of passport e-governance project will be rolled out by March from a few centres and the full-fledged roll-out would be by the year end,” TCS vice-president and head (government industry solutions) Tanmoy Chakrabarty said.
Under the pilot project, a total of six “passport filing centres” will be set up in Ambala, Chandigarh, Jalandhar, Hubli, Mangalore and Bangalore. Chakrabarty said the firm is eyeing a revenue of Rs1,000 crore from the project in the next seven years. The revenue is based on a charge per passport basis.
Sexual harassment case: KPMG officials get relief
New Delhi: Four top executives of KPMG India Pvt. Ltd got a major relief from the Supreme Court, which refused to interfere with an order of the Bombay high court and quashed an FIR against them in a sexual harassment case.
The apex court also allayed the apprehension of the woman employee that the observations made by the high court may affect other legal proceedings initiated by her.
“We find no reason for such an apprehension...,” a two-judge bench said in a recent order.
The four executives who got the relief are chief operating officer Richard Rekhy, chief executive officer Russel Parera, HR manager Niloufer Irani and former HR director Sumeet Mathur.
They were accused of not taking action upon her complaint of sexual harassment as per the guidelines of the apex court. She had made allegations of sexual harassment against three of her other senior colleagues—Vikram Uttamsingh, Abizer Diwanji and Anees Maloo.
On 6 August, the high court had concluded that the complaint did not reveal commission of cognizable offence by the officers.
Sun Pharma’s US arm to reply to USFDA today
Mumbai: Sun Pharmaceutical Industries Ltd’s US arm, Caraco Pharmaceutical Laboratories Ltd, will file a response to the US Food and Drug Administration’s (USFDA) warning on its quality standards on Monday.
Two weeks ago, USFDA had issued a warning to the firm that its quality and processes were not up to specifications.
The company, however, maintained that the warning was not with regard to product quality, but on the systems and processes in the facility.
“The USFDA letter to Caraco was referring to some quality concerns on the systems and processes of the company and not about product quality,” a Sun spokesperson said here.
USFDA had asked Caraco to reply in 15 days.
Mayawati seeks to woo voters ahead of polls
New Delhi: The Bahujan Samaj Party (BSP) supremo Mayawati on Sunday tried to woo voters in Delhi, promising development of all sections and full statehood.
Addressing an election rally in the Capital’s Trilokpuri constituency, Mayawati accused the successive governments of ignoring welfare of the Dalits and the poor and said as in Uttar Pradesh, her party will ensure welfare of each section of society in the city.
“If we come to power in Delhi and at the Centre, we will give full statehood to Delhi,” she said at the rally attended by at least 15,000 people.
Attacking the Congress government for poor law and order situation in Delhi, she said if the BSP comes to power it will put all the anti-social elements behind the bars. She said she would ensure reservation for the poor among upper castes, if her party came to power at the Centre.
R-Adag enters online retail biz; eyes top slot
New Delhi: Seeking to grab the top position within a year in the Rs20,000 crore market, the Reliance-Anil Ambani group (R-Adag) announced on Sunday its entry into the online retail business.
Under the banner of Reliance Money, the new venture would make available a wide variety of products for e-shopping, ranging from financial products such as IPOs, mutual funds, insurance policies and gold coins to items such as apparel, accessories, books, magazines, CDs, DVDs, home appliances and flowers.
Announcing the launch, Reliance Money chief executive officer Sudip Bandyopadhyay said the e- commerce web portal—RelianceMoneyMall.com—would be like a big shopping mall in electronic format where consumers would be able to buy whatever that can be sold online. Asserting that the company was targeting at least 20% market share for the new venture, Bandyopadhyay said the aim is to grab the top position in less than a year.
Tatas seek lock-in period for new telcos only
New Delhi: Tatas have asked the government to limit the proposed three-year lock-in period to new telecom players fearing that the move could stall Tata Teleservices Ltd’s (TTSL) tie-up with Japanese telecom firm NTT DoCoMo Inc..
“The proposed lock-in provisions (should) be only applied prospectively and that too to start-ups, which have been granted initial licences and which are yet to commence operations or establish their credentials. Concluded arrangements like the investment commitments of NTT DoCoMo in TTSL should not be affected,” the company said in a letter to telecom secretary Siddharth Behura.
Trai asked to review termination charge
New Delhi: Mobile telecom tariffs may see a further dip as the government has asked regulator Telecom Regulatory Authority of India (Trai) to review the five-year-old termination charge of 30 paise a minute per call for fixed and mobile telephony. Termination charge is the money given by an operator on whose network a call originates to the operator on whose network the call terminates.
“Termination charges reduction reference has gone to Trai. They have to recommend us what to do (...It is being discussed in Trai to look into the possibility of bringing down the termination charges),” telecom minister A. Raja said here.