INDIA INTELLIGENCE REPORT

 

Business & Economy
 
 
Govt held for failure to check fraudulent companies

What is India News Service, August 23, 2004, 2200 hrs IST


Parliamentary Standing Committee has rapped the government for its failure to keep a close eye on the fraudulent activities of various finance, plantation and other companies that have cheated the public worth thousands of crores of rupees over the past few years. 

The committee headed by Major-Gen B.C. Khanduri (retd), has expressed concern over the fact that \93out of about 6,52,000 registered companies operating in the country, not even one per cent of the companies are being inspected by the government agencies.\94

The Ministry of Company Affairs acknowledged that during the past four years the number of inspected companies have rather declined.

Global Trust Bank: best possible RBI action: The recent regulatory actions by the Reserve Bank of India concerning the Global Trust Bank and the South Indian Cooperative Bank, Mumbai, have come under scrutiny. 

Nissan Motor plans Indian facility to launch cars, LCVs: After making its re-entry into the country through the completely built unit (CBU) route, Japanese automaker Nissan Motor Co is mulling over setting up a manufacturing facility in India to introduce compact cars and LCVs.

Fusion targets City: The mid-size segment in the Indian car industry currently dominated by the Ford Ikon, the Honda City, the Hyundai Accent, the Maruti Baleno and Esteem, and the Opel Corsa will change considerably in the next two months. 

Tata Steel cuts price to arrest pressure: Tata Steel will reduce prices of its main products by Rs 2,000 per tonne with effect from midnight tonight.

Puzzling inflationary pressures
: Experts all over the world are anxiously waiting for crude prices to come down from their record levels as there is genuine concern that the recent happenings should not upset the recovery noticeable after a long time in the U.S. and other economies.

Govt mulls lower entry barriers for health insurers: The government and the Insurance Regulatory and Development Authority (Irda) are gradually considering that stand-alone health insurance companies ought to be allowed a lower capital base than the existing norm of Rs 100 crore. 

Oil shock: will consumers be spared again?; Every stakeholder in the petroleum business will obviously have to bear the brunt of the phenomenally high oil prices. 

PM sends another missive to ministers: Pointing to reports about some Public Sector Undertakings (PSUs) not following norms of good corporate governance, Prime Minister Manmohan Singh has asked his ministers to change the perception that the administrative ministries treat PSUs as their \93fiefdoms.\94

Plastic units for duty cut: According to the association the levies will have serious repercussions on the industry making them unviable against global competition. 

Oil prices will stablise;economist: Oil prices will return to stable levels of around $30 per barrel within a few months, World Bank chief economist Francois Bourguignon predicted in an interview published here.

Lalu\92s \91kulhars\92 enrich potters: Railway Minister Lalu Prasad\92s decision to replace plastic cups with earthen \91kullars\92 in trains, if implemented in toto, will result into a net yield of Rs 1,600 crore to the potters during this fiscal, according to Assocham.


ONGC bottomline energised: Oil and Natural Gas Corporation's bottomline this fiscal will not only be blessed with the soaring global crude prices but also lower insurance premium following improvement in India-Pakistan relations and sound management of its treasury operations.

PSUs will get more muscle for investing: Under the proposed plan, PSUs will be allowed to incur capital expenditure from Rs 10 crore to Rs 100 crore depending upon their revenues, without prior government approval. 

Rajendra Lodha likely to file affidavit: The battle between the Birlas and their auditor Rajendra S Lodha over the control of the M P Birla group has entered a crucial stage with Lodha expected to file affidavit in Calcutta High Court on Monday questioning the locus standi of four important Birla family members to raise objections to his claim to assets over Rs 5,000 crore.

Tech data security, privacy framework soon- Karnik: With software sector becoming country\92s top exporter, India has great potential to become an outsourcing hub. 

India Inc's sees lower profits, jobs in Q2-Q3: India INC'S business sentiments have been dampened during April-July with most of the companies lowering their sales and profit outlooks for the next six months, according to economic think-tank NCAER.

Inflation fear grips bourses: Soaring prices and rising inflation continued to haunt the bourses last week and the Sensex finished in the negative territory for the second week in succession after six straight weeks of gains. 


Overall:

Govt rapped over fraud by cos: Parliamentary Standing Committee has held the government responsible for its failure to check fraudulent activities of companies. 

Investors in petroleum business hit: Every stakeholder in the petroleum business will obviously have to bear the brunt of the phenomenally high oil prices. 

Fusion targets City: The mid-size segment in the Indian car industry currently dominated by the Ford Ikon, etc will change considerably in the next two months. 

Plastic units for duty cut: According to the association the levies will have serious repercussions on the industry making them unviable against global competition.