BJP’s NDA allies want subsidy cuts revoked
New Delhi: The Bharatiya Janata Party-led coalition government is under pressure from its National Democratic Alliance partners to roll back the cuts in fertiliser and food subsidies proposed in the Union budget for 2000-01. They presented a list of demands to prime minister Atal Bihari Vajpayee, who asked them to talk to finance minister Yashwant Sinha.

The finance ministry may have to reckon with an additional subsidy burden of Rs 3,000-4,000 crore on fodgrains subsidy alone if the political pressure prevails. The dissenting partners include the Telugu Desam Party, the Janata Dal (United), the DMK, and the Akali Dal.
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Finance ministry refuses to remove ESOP tax
New Delhi: The finance ministry has reportedly ruled out a removal of tax at the time of exercise of employee stock options. The reason: fears of misuse and revenue loss.
The ministry will consider the exercise of a stock option as a perquisite, which will be taxed as a salary component.
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Supreme Court ruling on DA, CCA and HRA
New Delhi: A division bench of the Supreme Court has ruled against employees’ plea that income under the heads of dearness allowance, city compensatory allowance, and house rent allowance be excluded from the definition of incomes for the purpose of calculation of tax.
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HDFC may cut rates soon
New Delhi: The Housing Development Finance Corporation is expected to reduce the interest rates it charges for housing finance. The Housing and Urban Development Corporation, the apex agency body housing finance, recently announced a two percentage points cut in rates.

Any cuts by HDFC, the biggest provider of housing finance in India, will compel other housing finance companies to follow suit.
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RBI questions ICICI performance data
Mumbai: The country’s central bank and banking industry regulator, the Reserve Bank of India, has sparked off a controversy over ICICI Ltd’s finances. In its financial inspection report for 1998-99 the RBI has said ICICI has understated its non-performing assets by around 3.8 percentage points and also shown a net profit that is Rs 403-crore higher than it should be.

It is believed that one reason for the discrepancies could be the RBI guidelines being open to several interpretations. The dispute arose over treatment of several key areas of reporting, including income recognition, asset classification, provisioning, investment, fund management, post-sanction supervision and follow-up of advances, etc.

According to ICICI, the institution has submitted its detailed reply, and there has not been any further comeback from the RBI. News reports have quoted unnamed RBI officials as having said that the central bank is satisfied with ICICI’s responses.
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Weak banks may have to close foreign operations
New Delhi: The government may ask three weak banks, Uco Bank, United Bank, and Indian Bank, to shut down their foreign operations as part of their revival plans. They will also have to quickly rationalise their branches in India, for which the banks have already started negotiations with for the introduction of voluntary retirement schemes.
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MTNL will soon list on NYSE
Mumbai: The public sector Mahanagar Telephone Nigam Ltd will go for listing on the New York Stock Exchange by 15 March. The MTNL board, which took this decision, has informed the Bombay Stock Exchange of its decision.
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Vijaya Bank plans IPO
Bangalore: Vijaya Bank plans to make a Rs 100-crore public issue in the last week of June or first week of July 2000. The bank will also set off Rs 300 crore of accumulated losses against its equity capital of Rs 550 crore.

The Vijaya Bank management wants to charge a nominal premium on its share.
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Fertiliser output rises
New Delhi: India’s produced 83.04 lakh tonnes of nitrogen and 25.10 lakh tonnes of phosphate during April-December 1999 against a targeted 81.46 lakh tonnes and 24.83 lakh tonnes. Production in the corresponding period of 1998 was 78.42 lakh tonne of nitrogen and 23.33 lakh tonne of phosphate.

In December 1999 capacity utilisation was 112.2 per cent for nitrogen and 99.2 per cent for phosphates.
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UTI Bank plans private placement
Mumbai: UTI Bank will make a private placement of its shares during the week to raise Rs 100 crore to shore up its tier-II capital. Also, the holding of its main promoter, the Unit Trut of India is likely to reduce to 40 per cent of the bank’s equity in the next six months from 72 per cent on 31 March 1999.
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Port rate rise only after review
Mumbai: The Union shipping industry has decided that terminal handling charges at major Indian ports will be raised only after a committee comprising representatives of various concerned interests recommend it. Later rates will be determined by the Tariff Authority on Major Ports.

That will require an amendment of the Major Port Trusts Act, 1963.
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Rules for ozone-depleting substances
New Delhi: The Union ministry of environment and forests has drafted the Ozone Depleting Substances (Regulation) Rules, 2000. These rules cover the production, sale, reclamation, destruction, export and import of ozone depleting substances.

The rules are in line with the government’s plan to phase out ozone depleting substances. They make it mandatory for producers, sellers, importers and exporters of such substances and those who are involved with their reclamation and destruction to register with the ministry. Registration is also required for the of ODS.
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