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HEC to become Rs 40 bn company in 4 years

Ranchi, Mar 02: The state-run Heavy Engineering Corp (HEC), set to post profit for the second successive year, will be worth Rs 40 billion in the next four years, a top official has said.

Unveiling the new projects and tie-ups, G K Pillai, chief managing director of the company in Jharkhand, said: "We have adopted a pro-active marketing strategy which was missing in the past. Our aim is to make it one of the best PSUs in the country."

This is seen as a huge turnaround for the company after the Board of Industrial and Financial Reconstruction (BIFR) recommended in 2004 that it be closed down for making losses.

On Friday, the company bagged a Rs 5 billion order from the Bhilai Steel Plant.

It is now undertaking projects for the Steel Authority of India Ltd, the Indian Space Research Organisation and Indian Railways.

"The HEC should not be seen as an ordinary engineering company. It will emerge as a strategic engineering company worth Rs 40 billion in the next four years," Pillai said.

"We focus on two things. First is the pro-active marketing and second is customer care. We try to complete the work on time and also make sure that our customers are happy in all the fronts," he said.

The HEC has huge expansion plans.

"At present we have cyclic production. If there is a boom in the steel sector, we get orders. We are also making efforts to produce static products, which will be needed every year," said Pillai.

"We are trying to set up a railway wheel making factory. If it becomes a reality, our turnover would be at least Rs 5 billion per annum."

HEC, which was set up in 1963, is also planning to set up thermal power plants.

India, US to expand high-tech trade

New Delhi, Mar 01: Despite uncertainty over the nuclear deal, India and the US Friday agreed on "a series of time-bound actions" that will bring the level of their high technology trade in tune with their growing strategic partnership.

Foreign Secretary Shivshankar Menon and US Undersecretary of Commerce for Industry and Security Mario Mancuso co-chaired the sixth two-day meeting of the India-US High Technology Cooperation Group (HTCG) that concluded here Friday.

They discussed ways of expanding high technology trade between them, a small but significant portion of which is restricted to India due to nuclear tests it conducted in 1974 and 1998.

"The two sides looked forward to a series of time-bound actions in the above areas to raise high technology commerce to the next level of bilateral cooperation - in keeping with the transformed nature of the strategic partnership between India and the US," said a statement from the external affairs ministry.

"Highlights of the action plan include a timetable for reviewing export controls in respect of India - building on innovative efforts already underway for simplifying export controls," the statement said at the end of the talks.

The action plan followed recommendations of the two sides' industries, which held their meeting Thursday, for enhancing US high-tech transfers to India.

"India recognised and welcomed the US administration's announcement of their dual use export control reform initiative," the statement said.

The two sides discussed the Validated End-User (VEU) programme, a US initiative to simplify export licensing requirements for Indian companies, and agreed that "further discussions were required" as US export control polices "should keep pace with the transformed relationship between India and the US".

Menon underlined India's record in non-proliferation and stressed the importance of US high technology exports to spur India's development that in turn will help the nation achieve the larger goals of better life for its citizens.

Over the years, India's high technology trade with the US has grown steadily which now accounts for 45 percent of USD 17 billion exports.

With defence ties emerging as a key pillar of transformed relationship, the group agreed on an ambitious plan to give an impetus to high technology transfers and trade that would address all issues related to licensing and the implementation of India's defence offsets policy. The resolution of these issues would spur collaborations at all levels including small and medium enterprises.

The US did a fine balancing act, assuring India that although the completion of the nuclear deal will be a big step forward, high technology trade will continue to expand regardless of the outcome the deal.

"The civil nuclear deal is different. I would disaggregate 0.2 percent of high technology trade that is restricted to India from the nuclear deal," Marcuso told reporters after industry-to-industry meeting Thursday.

India has regarded the nuclear deal, aimed at the resumption of global civil nuclear commerce with New Delhi, as a precursor for the dismantling of technology denial regimes that restricted the country's development options.

The deal is, however, languishing due to political opposition by the Left parties in India. The failure to push the deal may slow down the rolling back of technology denial regimes.

The HTCG, formed in 2003, had identified four broad areas of priority for promoting bilateral commerce in advanced technology items between India and the USA: defence and strategic trade, biotechnology, information technology and nanotechnology.

In the area of nanotechnology, the two sides agreed to focus on commercial application of cost-effective solutions in the areas of health, energy, potable water and sustainable development.

The two sides agreed to support advanced technology transfers that would stimulate capacity building in life sciences. "They also agreed to engage in harmonization of regulatory systems in medical devices, pharmaceuticals and biotechnology with ultimate objective of improving market access," the statement said.

The two countries decided to expand collaboration in trade on advanced electronics and software, high performance computers, encryption and next generation technologies.

Bureau Report

Upset with Budget, Kamal Nath to meet PM

New Delhi, Mar 02: Disappointed with the budget proposal relating to the export sector, Commerce and Industry Minister Kamal Nath will soon meet Prime Minister Manmohan Singh and seek fiscal relief for exporters distressed by rupee appreciation.

"None of the recommendations of both the Rangarajan and the Krishnamurthy Committee have been considered in the Budget. We are very disappointed and the Commerce Minister will meet the PM in the next few days," a senior official said.

However, when asked whether he was happy with the Budget proposals, Nath said, "I am happy with the non-commerce ministry part of it (the budget)".

As to how he would provide relief to the exporters, Nath said the "process will go on". He said the annual review of the Foreign Trade Policy, due by the month end, would try and address many of the concerns of the exporters.

The two expert committees appointed by the Prime Minister are believed to have recommended several fiscal and other measures to mitigate the trouble of exporters especially in the labour oriented sectors of textile, handicraft, leather and marine products.

According to the pre-Budget Economic Survey released last week, growth in textile exports for the April-September period of the current fiscal dropped sharply to a mere 1.2 percent from 33.5 percent in the same period last year. Handicraft exports have shown a big negative growth of 14.5 percent against a positive 5.2 percent a year ago.

"The Budget has not addressed concerns of the labour-intensive sectors of textile, handicraft, leather and marine products, which are the worst hit by the rupee rise," the official said.

Pakistan raises fuel prices after 22 months

Islamabad, Mar 01: Pakistan raised fuel prices by up to 10.70 percent on Saturday, the first rise in 22 months, the government said.

The government reviews fuel prices every two weeks but rises in global oil prices have not been passed on to the public.

Petrol and diesel prices were last raised on May 1, 2006. They were cut slightly in January 2007 but have been left unchanged since then. The latest adjustment is effective from Saturday.

"The per litre price of motor spirit (petrol) has been raised to 58.70 rupees (from 53.70), while that of light diesel oil has been increased to 36.07 rupees (from 32.57)," the official said.

Most analysts say the previous government, led by former Prime Minister Shaukat Aziz, held down fuel and utility prices so as not to antagonise voters ahead of the Feb 18 election.

The two main opposition parties won the election.

Loan waiver not to collapse banks: FM

New Delhi, Mar 02: Finance Minister P Chidambaram on Sunday sought to allay apprehensions that the Rs 60,000 crore farmers` package will lead to collapse of the cooperative and scheduled commercial banks and weaken the banking system.

A combative Finance Minister strongly defended the budget proposals including the loan waiver, which opposition parties have said was aimed at Parliament elections, and expressed confidence that the budget would spur growth despite the fears of global slowdown.

"I don`t think," he shot back when asked about fears that the loan waiver scheme to help four crore farmers will lead to collapse of the cooperative banks and the scheduled commercial banks.

"I have said whatever loans are written off an equivalent liquidity will be provided to the banks concerned. That is a statement which I am sure Dr Alagh (agricultural expert) will understand and appreciate. As for A B Bardhan (CPI leader) I have nothing to say," he said when asked about their comments that the waiver scheme could lead to collapse of cooperative banks.

Alagh, a former Planning Commission member and a Minister of State for Agriculture, had said that the Rs 10,000 crore waiver given by V P Singh government had led to closure of several cooperative banks.

The Finance Minister also said Bardhan should stand up and be counted as being opposed to the loan waiver scheme. "I don`t know what his position is," he said.

To a question about farmers owing repayment of loans to money lenders, he said, "which private money lender should I compensate."

Hello to all!

Is it safe to invest in finance sector for the month of march08 future
like ifci, pnb, andhra bank?

How is essar oil for march future?

It is a welcome move, but most farmers committing suicide are the ones being harrassed by private individuals for loans, not by banks. the money should go to farmers

farmers families , who have already committed suicide
govt should get the statistics about the no of suicides in different parts like vidarba, ap and other places and should only implement in effected districts and not nationally

it is more important that govt come up with permanent solutions for permanent problems, this problem is not going to go away soon, going forward govt should do three things

1. allocate funds for R&D to come up with disease/pest resistent seeds.
2. build dams for providing water
3. eliminate middle men

hopefully we will get politicians and leaders and above all "thinking responsible people", who can think beyond 6 months.

ifci, essar oil are quite good.but pnb bit high.

Revenue buoyancy may foot central staff pay hike: FM

New Delhi, Mar 02: Finance Minister P Chidambaram on Sunday said buoyany in revenue collections can meet the additional burden to pay the hike in the salary of Central government employees after the submission of Sixth Pay Commission report later this month.

"If my additional revenues are buoyant that will pay for the increment, failing which I will fall back upon the headroom that I have left for myself," Chidambaram said.

When asked about the likely impact of sixth pay commission, Chidambaram said,"I do not know what the liabilities of Central Pay Commission will be." On why funds were not provided in the budget for possible hike in salary of employees, Finance Minister said,

"I do not know what the recommendations would be. The budget already provides for the normal increase of 2008-09. When the Central Pay Commission report comes, it will subsume the increase of 2008-09 and provide a little more." "I have left for myself headroom," he said adding "that incremental has to be provided for."

When asked about the Railway budget earmarking Rs 5,000 crores in anticipation of the pay commission recommendatins, Chidambaram said, "I don`t know the numbers. Therefore I do not quantify."

EU plans to launch Blue Card on lines of US Green Card

Brussels, Mar 02: There is good news for Indian professionals seeking jobs abroad as the European Union (EU) is planning to set up a US Green Card style visa programme to attract highly qualified immigrant workers.

In an effort to meet the growing demand for professionals like doctors, engineers and IT experts, the 27-nation bloc may introduce EU Blue Card, a special residence and work permit to immigrants granting them a "very generous" legal status.

If the visa plan, still at the consultation level, materialises, it will open new avenues for Indian professionals in European countries besides the United Kingdom, a popular destination for job seekers.

The EU proposal aims at accelerating and simplifying the formalities for entry of immigrant workers by doing away with different complex national procedures besides facilitating their mobility throughout the EU.

Apart from making the procedure easier, the Blue Card will provide immigrant workers better conditions for family reunification and right to equal treatment with EU nationals on availing a host of social and economic rights.

To come into effect, the proposal needs the approval of member states and the nod of European Parliament. "Immigration issues are the prerogative of member countries," said Neena Gill, Chairwoman of the EU's Indian delegation.

Under the plan, immigrant workers will be able to move, work and live in any EU country, provided there is a work contract and a need in that labour market, European Union officials told a team of visiting Indian journalists in Brussels.

The plan, European Union officials said, stems from the realisation that EU, facing an acute shortage of skilled labour, has fared badly in attracting qualified professionals vis-a-vis countries like the US, Canada and Australia.

EU attracts mainly low qualified immigrant workers while highly qualified workers prefer destinations like America, Canada and Australia.

Leave aside attracting professionals from non-EU nations, statistics show that only one per cent of the EU citizens are ready to move to another EU country for work.

Other statistics showed that highly qualified workers from non-EU countries accounted for only 0.9% of all workers in the bloc, compared to 9.9% in Australia, 7.3% in Canada and 3.5% in the US.

Analysis of the present situation and forecasts show that there is a growing request for highly qualified workers in EU countries and European companies are facing problems in recruiting foreign professionals, the EU said.

Though it was up to member countries to decide on immigration issues, the EU says it has mooted the proposal as the member states will face stiff international competition for workers if they act alone.

By making use of the attractiveness of the combined EU labour market, the member countries will be in a much stronger position to compete on the world market for skilled workers, the EU noted.