TRAI to revise cell rates, DoT may lose revenue
New Delhi: The Telecom Regulatory Authority of India will revise its plans on cellular rates and ‘calling party pays’ system. This is after the TRAI received feedback from operators.

The  rates are :

Mobile termination rate: original Rs 0.6 per pulse; proposed Rs 0.8 per pulse

Pulse frequency: original 2 minutes; proposed 1 minute

Tariff in circles: original Rs four per minute; proposed Rs 4.5 to Rs 4.75 per minute

The Department of Telecommunications claims that it may lose Rs.200 crore if there is an increase in the mobile operators share in the revenue from incoming cellular calls. It feels that its collection rate on a per call basis will fall below cost in many of the cases. According to the DoT, the basic companies would end up cross-subsidising the cell operators.
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IIP rises 5.4 per cent
New Delhi: Index of Industrial Production showed a rise of 5.4 per cent in July 1999 compared to the July 1998. The rise can be mainly attributed to increased demand in consumer durables, intermediate goods and capital goods sectors. The manufacturing and electricity segments grew in July 1999 by 6.1 per cent and 5 per cent respectively.
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IFCI subsidiary for jointly bidding for advising on infrastructure
Mumbai: Industrial Finance Corporation of India’s subsidiary, IFCI Financial Services Ltd., is holding talks with Deutsche Telekom, RITES and Hudco for jointly bidding for infrastructure advisory proposals.

IFCI Financial has identified project advisory as its core competence area. During 1998-99, it submitted many such bids along in conjunction with various established players like RITES, PriceWaterHouse-Coopers, and C B Richard Ellis.

The company has succeeded in getting itself enlisted as a project advisory company with Steel Authority of India Ltd. and Bharat Heavy Electricals Ltd.
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Enjoy the DA rise
New Delhi: A dearness allowance of 5 per cent will be released to government employees. This would cost the exchequer an additional Rs.978 crore.

Price hike envisaged on diesel has also been put off, in spite of the oil pool deficit soaring and the international prices of high speed diesel showing a rise of 20 per cent in the period April-August 1999. Some feel that the elections may have forced the government to take such populist measures, which in the short term will prove great for the consumers, but will be highly detrimental for the economy in the long run.
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RBI denies NBFC licence
Mumbai: The Reserve Bank of India has denied the registration of the following companies as non-banking finance companies.

Viswasakthi Finance of Chennai, Janapriya Finance & Industrial Investment of Calcutta, North Kamrup Small Investment Company of Assam and Koyalanchal Finance of Bihar.

These companies will not be able to undertake business as non-banking finance companies, as per clause (a) of Section 451 of the RBI Act, 1934.
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SBI starts automating dividend warrant processing
Mumbai: The State Bank of India has installed its first ‘reader sorter machine’ at its Ghatkopar(West) branch. The machine is capable of processing around 500 warrants per minute. It can capture data and also validate, report and monitor them. More importantly, it can also detect duplicates.
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HSBC, Centurion Bank go on-line
Mumbai: Centurion Bank will be servicing its 15 top customers on an on-line basis by end-1999. Two companies are already being provided on-line services in Bangalore.

Hongkong and Shanghai Banking Corporation is planning to provide on-line banking facilities to companies. This, the bank feels, will help them outsource their non-core financial activities. The bank is planning to act as transaction consultants to companies and also help them in their business process re-engineering.
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Drug industry will remain under price control
Mumbai: Dipak Chatterjee, chemicals secretary, has said that the drugs industry should not expect the removal of all controls on price. He was speaking at the 33rd annual general meeting of the Organisation of Pharmaceutical Producers of India (OPPI). Mr.Chatterjee said that such price controls were working fine in other economies similar to India. He felt that the product patents regime will hit hard, about 20,000 drug manufacturers.

Homi Khusrokhan, president, OPPI argued that price controls for the last three decades have proved counter-productive, as the cost of treating patients has increased.
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IFCI picks 5% of Bank of Shanghai
Washington: International Finance Corporation has taken a 5 per cent stake at $22 million in China’s Bank of Shanghai. IFC will also help the bank in overhauling and streamlining its operations. Bank of Shanghai, 30 per cent of whose equity is held by municipal administrations, focuses on lending to small and medium sized businesses in the Shanghai region. It was established in 1995 after a merger of several co-operatives.
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