Government rejects president's advise
New Delhi: The government has rejected president K.R. Narayanan's suggestion that the newly-announced package to private telecommunication operators be kept in abeyance pending the Lok Sabha elections and formation of a new government.

In a three-page reply to the president, the government has reiterated that it is well within its purview to enact the package as the "basic framework of the policy has not changed. The package merely addresses the issue of migration of the old licences to a new regime."

The communication pointed out that the decision is based on the recommendations of the attorney general who had studied the findings of a ministerial-level group and as such it was wrong to see the package as a new policy decision.

The opposition political parties had met the president and protested against the initiation of policy decisions by a caretaker government.
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Telecom companies still unhappy, plan litigation
New Delhi: Private telecom operators, who got a windfall in the new package announced by the government, are now finding that the policy measures are not to their advantage.

Some of the private companies, whom the new policy is meant to benefit, are threatening to go to court on this issue as they have discovered that the revenue-sharing is creating new problems for them.

They are also peeved at the department of telecommunications' directive that they withdraw all existing litigation prior to shifting to the new regime. The Cellular Operators Association of India has informed the DoT that it cannot withdraw the case as it has sought a clarification on the jurisdiction of the Telecom Regulatory Authority of India.

Interest on past dues is another contentious issue as DoT has insisted that the cabinet has waived only the Rs 1,400 crore licence fee dues and interest -- around Rs 400 -- is indeed payable.
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IDBI plans Rs 250 cr investment in US-64
Mumbai: Industrial Development Bank of India will be infusing Rs 250 crore into Unit Trust of India's US-64 scheme. The development bank will purchase the units at a special price of Rs 13.50 per unit declared for the month of July 1999.

The infusion of funds is part of the Deepak Parekh committee's recommendation that the initial unit corpus holders bring in Rs 500 crore as fresh unit capital into the scheme.

IDBI holds 50 per cent of the unit capital and has brought in its share. Some other banks have already put in their contributions in June.
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FIPB approves 28 proposals
New Delhi: The Foreign Investment Promotion Board has approved 28 proposals worth Rs 138 crore. The approvals include ANZ Grindlays' application to increase its equity stake in Esanda Finance to 75 per cent and ABB's to alter the equity pattern in its holding company.

ANZ Grindlays at present holds 50 per cent stake in Esanda, while NRIs and Indians hold the rest.

The new stake holders in ABB will include CG Elsag Bailey and Hartmann & Brown. The transaction will involve a Rs 4.5 crore infusion into ABB India, the German major's holding company.
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Uco Bank's special settlement scheme
Calcutta: Uco Bank has taken a lead in introducing a special settlement scheme for loan recovery in the small sectors. It has devised a scheme whereby from the day the loan has become a non-performing asset, it will reduce the compounding effect and take away the penal interest, if any, from the loan and charge a 10 per cent simple interest on the balance.
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Bank of India reduces deposit rates
Mumbai: Bank of India has reduced its deposit rates by 50 basis points with effect from 21 July. It will offer maximum rate of 210 per cent on deposits compared with 10.5 per cent offered by State Bank of India and Bank of Baroda.

Foreign banks such as ABN Amro and American Express have also revised their rates for short-term tenure deposits. 
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Dabhol charges Rs 4.95 per unit
Mumbai: Dabhol Power Company has submitted a second bill of Rs 117 crore to the Maharashtra State Electricity Board for 236 million units of electricity the board had purchased in June. The per unit price works out to Rs 4.95

The decline in demand for electricity and the lower plant load factor have caused the higher per unit rate.

The state's deputy chief minister Gopinath Munde had earlier stated that the per unit cost will be Rs 3.10.   
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IDBI, Sidbi reduce refinance rates
Mumbai: The Industrial Development Bank of India and Small Industries Development Bank of India have agreed to reduce refinance rates and increase ceilings for state financial corporations.

IDBI has agreed to raise the refinance limit to 80 per cent from the current level of 65 per cent while Sidbi will raise the limit to 100 per cent from the current 80 per cent.

Besides, the refinance rate will be reduced to 12.5 per cent from the current level of 14 per cent.  
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