Inflation inches up
New Delhi: Inflation measured according to the wholesale price index rose 0.14 per cent over the week to 1.81 per cent, according to provisional figures for week ended 28 August 1999. The figure was 1.67 per cent for week ended 21 August 1999.

The current rise is primarily owing to rise in the prices of edible oil and primary articles. During the corresponding period in the previous year, the index was 8.78 per cent.
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Staggered petro price hike in the offing?
New Delhi: According to a report in the Business Standard, The petroleum ministry is planning to increase the petroleum products’ prices in stages. This is aimed at reducing the oil pool deficit, which has shot up as a result of the spurt in oil prices internationally. The price increase is planned to be spread over a period of six months.

The oil pool deficit, which is currently over Rs.5,000 crore, can be wiped clean with a big rise in the prices of petroleum products. But ministry officials feel that this will be highly inflationary and may affect industrial growth.

The prices of products that have to be raised are the controlled petroleum products, such as motor spirit, kerosene, high speed diesel, liquefied petroleum gas and aviation turbine fuel. The price rise is expected to be anywhere between 15 and 20 per cent.
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MSEB to enter optic fibre business
Mumbai: The Maharashtra State Electricity Board is planning to float an optic fibre joint venture, pending approval from the state government. The electricity board will hold a 26 per cent equity stake.

MSEB is also planning to sell ‘right of way’, which is the exclusive right of the electricity board on the 30,000-km transmission network in the state. By selling the right of way, MSEB will be in a position to raise its share of equity for the optic fibre joint venture.
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MTNL may switch to revenue sharing system for mobile venture
New Delhi: Mahanagar Telephone Nigam Ltd. may switch to a revenue sharing regime for its cellular venture. Private cellular operators have already migrated to the revenue sharing system. The department of telecommunications has proposed a 15 per cent revenue sharing for MTNL too, the rate that applies to private cellular operators.

MTNL may insist on holding back the structure similar to its basic services licence at Rs.900 per subscriber per annum and 22.5 per cent share of total revenue, for the cellular venture.
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ADB’s projects to be supported by Exim Bank
New Delhi: The Export and Import Bank of India will lend financial support to projects of Indian companies that are being funded by the Asian Development Bank. The precondition will be that some of the material and services for the project will be sourced from India.

The Exim Bank will also support bids made by Indian exporters, as the bank has a policy of giving weights to credit facility clubbed with the prices quoted in bids.
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VSNL starts roadshows
Dubai: Videsh Sanchar Nigam Ltd. has started the promotion campaign for its forthcoming public issue of one million equity shares, at Rs.750 per scrip.

The company has a monopoly over international telecom services until 31 March 2004. This division contributed over 90 per cent to the revenues of VSNL during the financial year 1998-99.
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