Indian ‘Pusa no.1’variety not considered basmati by UK
New Delhi: A multi-million pound DNA test conducted by the UK’s ministry of agriculture, food and fisheries has concluded that the Indian ‘Pusa no.1’ basmati rice is not genuine basmati. The study came to the conclusion that ‘Pusa no. 1’ did not contain certain genetic characteristics of  basmati. Another controversial basmati rice, ‘Texmati’ has also failed the tests. The UK is defining what the characteristics of basmati really are.

The UK move may result in losses worth around $22.75 million per annum from export of ‘Pusa no. 1’.
Back to News Review index page

Calcutta Port Trust plans huge investment
Calcutta: The Calcutta Port Trust is planning to build a six-jetty port near Haldia at a cost of around Rs.6,000 crore. This will enable it to increase its market share.

The Calcutta Port Trust which earned a profit of Rs.180 crore last year, is expected to be granted autonomy by the ministry of surface transport.
Back to News Review index page

Centurion Bank focuses on the treasury
Mumbai: Centurion Bank will focus on the treasury business. It plans to increase increase its staff strength in this section from the current 6 to around 12 in the next two months. Thge bank is also upgrading  its systems by investing Rs.2.5-Rs 3 crore. According to a report in The Economic Times, the bank's new 8 am-12 midnight working hours will help it in straddling  time zones. The bank is installing Reuters software, Kondor Plus, and planning more dealer workstations.

The holdings of the main promoters of the bank, TCFC Finance and Singapore-based Keppel Bank,  will come down to 23.1 per cent and 17.7 per cent respectively, after the bank comes out with its issue of Rs.10 shares worth Rs.33.75 crore. International Finance Corporation of Washington and the  Asian Development Bank of Manila, which are also shareholders, will find their holdings decrease to 8.3 per cent and 10.22 per cent respectively. The bank’s paid-up capital will increase to Rs.152 crore, post-issue.
Back to News Review index page

PFs not investing in unrated securities
New Delhi: Provident funds are not investing in state government securities that are unrated or that are below investment grade. Crisil has recently downgraded Orissa-government’s Industrial Promotion and Investment Corporation of Orissa’s bonds from BBB (last rating in the investment grade category) to BB (speculative grade).

Though no fresh investments are being made in such securities, provident funds are not selling these securities as the funds require the permission of the finance ministry for this. The  move will have a negative effect on the future borrowings potential of state electricity boards.
Back to News Review index page

Tax department doing fine
New Delhi: Tax collections during April 1999 to August 1999 are said to have touched Rs.50,235 crore, showing a rise of 11.6 per cent. Direct tax collections, which include corporate taxes, showed a decline during the same period.

Tax collections during the same period in 1998 have been Rs.45,008 crore.
Back to News Review index page

Birla Sun Life aims high
Mumbai: Birla Sun Life Insurance has plans of touching an income of $25 million by the year 2001-02 and $1.6 billion by 2010-11. It is targeting a market share of 5 per cent, to be grabbed from the current monopoly, Life Insurance Corporation.

The initial equity investment would be Rs.100 crore, out of which the Birlas will put in Rs.74 crore. The company has plans to start operations by end-2000.

All plans of the company are subject to the final decision taken on the issue by the Insurance Regulatory Authority and the government.

The company's  Birla Balanced Fund and its two proposed  gilt funds and the acquisition of two funds from Apple Mutual Fund, will take its  total assets under management to around Rs.3,000 crore by end-2000.

Birla Global, the finance company in the Aditya Birla group, will spin off its retail finance activities into a separate company. The retail business has assets worth Rs.350 crore by way of car and consumer loans. Birla Global will thus become the holding company of the group’s financial activities, as it already holds 50 per cent stakes in the groups joint ventures in the fields of mutual fund, retail broking and retail distribution.
Back to News Review index page

Natwest’s bid to take over UK insurance co L&G
London: National Westminster Bank Plc offered 10.75 billion pounds to take over Legal & General Plc, a UK insurance company. Natwest has valued L&G’s shares at 210 pence each. The deal will benefit Natwest to the extent of at least 130 million pounds by calendar year-ended 2002, mainly by way of pre-tax cost savings.
Back to News Review index page