Sonia to be leader of opposition
New Delhi: Congress president Sonia Gandhi and leader of the largest opposition party in the Lok Sabha, will take over as the floor leader of the opposition in the house.

Mrs Gandhi may resign from her Bellary Lok Sabha seat, which she won, and retain her Amethi seat.
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Insurance bill in this session
New Delhi: The government is likely to introduce the insurance bill during the current session of the Parliament beginning on 20 October. A meeting of the cabinet is being convened to discuss the matter and approve the bill.

The bill proposes to privatise the insurance sector in the country and allow 26 per cent private equity participation in the insurance business that is now run by public sector companies.
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AIG plans $1 billion investment in India
New Delhi: US-based AIG is planning to invest close to $1 billion in India. The insurance and investment company is looking at provident funds, infrastructure and financial markets, which it hopes will be further opened up with the new government pronouncing its emphasis on freeing the economy.

AIG's vice chairman (external affairs) Frank Wisner, has been quoted by The Economic Times as saying that the investment will be routed through its Asia Fund operating from Hong Kong and if the situation demands the entire earmarked amount can come in less than a year.

The company foresees provident funds, infrastructure financing through pension funds, insurance sector and forms of risk insurance as areas of growth.
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PSU bank unions not averse to reforms
Calcutta: Trade unions in nationalised banks appear to be giving in for reforms and structural changes in order to be market savvy and to compete with the more resourceful foreign banks. One of the largest trade union body in the sector, the All India Bank Employees Association, is said to be not averse to the extension of the banking hours and marketing of banking products by the employees. The association has already agreed to extending the working hours in computerised branches. The association has also welcomed moves towards increasing the nationalised banks' business.
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Railways may hike passenger fare
New Delhi: The railways is seriously considering an interim passenger fare hike to meet the increased input costs, operational and staff expenditure.

The proposal for the fare hike is likely to be presented in the supplementary budget for the railways to be presented to the new Lok Sabha later this year.
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IDBI not to issue LoI to Hinduja power project
Mumbai: The Industrial Development Bank of India is understood to have decided not to issue a letter of intent to Hinduja National Power Company for its proposed 1,040 MW coal-based power project in Visakhapatnam. The letter of intent is a preliminary document to power projects to enable them to achieve financial closure.

The Hinduja-promoted company is one among the seven fast-track power projects with a counter guarantee from the government. The company expects to achieve financial closure by February 2000.

IDBI has stressed on the condition asking the promoter to bring in an equity contribution of 40 per cent against the conventional norm of 30 per cent. IDBI is worried over the high project cost and it felt a need to take a fresh look at the project cost before issuing the letter of intent. The bank says the promoters will have to increase their contribution due to the cost overrun by Rs 177 crore.
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CBDT foresees tax payer base of 2.5 crore
New Delhi: The Central Board of Direct Taxes has revised its target of enrolling tax assessees to 2.5 crore by the end of the current financial year. The board finds from initial estimates that its earlier target of 2 crore assessees has already been achieved by end-September.

CBDT says the tax assessee base as on 1 April 1999 has been a little over 1.8 crore. During the current financial year 8,78,825 assessees were added till July-end taking the total to over 1.91 crore.

CBDT has issued 1.4 crore permanent account numbers by end September 1999. Nearly one crore numbers were allotted from August 1998 to August 1999.
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Indonesia hopeful of IMF loans
Jakarta: Indonesia says it is hopeful of the International Monetary Fund resuming loans to the recession-hit country once the controversial audit of the Bank Bali scandal is published. Finance minister Bambang Subianto said he expects the help will really come once the report is published.

The IMF is leading a $45 billion bail-out for Indonesia, which is now seeing faint signs of an end to recession. But the IMF and also the World Bank had stopped loans until the government resolved the Bank Bali issue which revolves around a $70 million loan collection fee the bank paid to a company headed by a senior official of president B.J. Habibe's Golkar party.
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Ayala buys stake in Far East Bank
Manila: Ayala Corporation, a Philippine conglomerate, has bought 20 per cent stake in Far East Bank, the seventh largest bank in terms of assets in the Philippines. The deal paves the way for the merger between Far East Bank and Bank of Philippine Islands, an Ayala subsidiary.

Metrobank, a rival and the Philippines' largest bank, had made an attempt to acquire some six per cent stake in Far East Bank.
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