GOVERNMENT SELLS ITS SHARES OF ICI (INDIA) LTD. The Government of India finalised the sale of its 9.2% stake in ICI (India) Ltd. (3760783 shares of face value Rs.10) to Asian Paints, the highest bidder @ Rs.205 per share yesterday. The Cabinet had approved the proposal in 1998 for sale of GOI shares held in ICI (India) Ltd. An Empowered Committee comprising of Secretary (Fertilizers), Secretary, Department of Public Enterprises and Chief Economic Advisor, Department of Economic Affairs was constituted for this purpose. Secretary, Disinvestment was also associated as a special invitee to the decision making process. ICICI Securities was the financial advisor for the transaction. The sale of shares was by auction through a public notice. The notice for sale was released and bids were invited from registered persons for which the last date was 22.10.2003. It evoked good response and bids were received from mutual funds, institutions and corporate bodies. The highest bidder was Asian Paints. Accordingly the sale was finalised on October 22, 2003 in favour of Asian Paints for a total value of Rs.77.09 crore. The Union Minister for Human Resource Development Dr. Murli Manohar Joshi releasing CD on Traditional Knowledge Digital Library (TKDL), Ayurveda in New Delhi on October 23, 2003 (Thursday). The Union Minister for Health and Family welfare Smt. sushma Swaraj also seen. RELIEF MEASURES FOR PLANTATION SECTOR ON THE ANVIL A package of relief measures to mitigate the problems facing growers in the plantation sector-tea, coffee and natural rubber- owing to fall in the global and domestic prices is being worked out in consultation with the Reserve Bank of India (RBI), Indian Bank Association (IBA) and the Revenue Department and action in this regard will be taken and implemented in the next 15 days. This follows the decision taken to this effect at an inter-ministerial meeting between Shri Jaswant Singh, Minister of Finance and Shri Arun Jaitley, Minister of Commerce & Industry and Law & Justice here on 21st October. The measures envisage the following: 1. The Ministry of Finance will take up the issue of reducing interest on Special Coffee Term Loan (SCTL) to 6% during moratorium period with the RBI, with the suggestion that sacrifice of such interest by the banks could be adjusted by spreading it over a period of few years by making suitable provisions in the prudential norms of the RBI. 2. The terms and conditions of the SCTL will apply mutatis mutandis to the relief package already worked out by banks for the tea industry 3. As the tea industry has a longer crop cycle ranging between 9-12 months, the ceiling limit for two crop cycles may be extended to 18 to 24 months in the case of tea as against 12 months for other agricultural crops for defining NPAs. 4. The proposal for extending price subsidy to all small growers on green tea leaf will be examined separately. Meanwhile, the Department of Commerce will take immediate steps to work out and implement a green tea leaf price formula under the relevant provisions of the Tea Act and Tea Marketing Control Order 2003. 5. With respect to the export incentive for export of orthodox tea, the Department of Commerce will examine and consider the quantum and other details for implementation within the resources available. 6. The prevailing import duty on machinery will be reduced to an all inclusive rate of 5%, for a period of 18 months from the date of issue of the notification, in order to improve productivity/quality of the product of plantation crops viz. coffee, tea and rubber. In this regard, the Ministry of Commerce will provide the details of required machinery for coffee, tea and rubber with HS codes at 8 digit level, to the Ministry of Finance. 7. As regards the problems with respect to CIT Rule 7B for coffee growers, the requirement of filing IT returns for those growers not otherwise liable to pay tax, may be dispensed with for a period of one as a test case. INDIA, OMAN FOR CLOSER TRADE & ECONOMIC TIES 4TH SESSION OF INDO-OMAN JOINT COMMISSION MEETS IN MUSCAT India and Oman have emphasized the need to accelerate all measures for closer trade and economic relations between the two countries. The bilateral trade has shown a consistent increase with Indian exports to Oman amounting to US $ 198.54 million in 2002-03 as compared to US $ 148.99 in 2001-02 and both countries are also examining the possibility of entering into a strategic trade alliance. This was indicated by Shri S. B. Mookherjee, Minister of State for Commerce & Industry who is leading the Indian delegation and H.E. Maqbool Bin Ali Bin Sultan, Minister of Commerce & Industry, leader of the Oman delegation at the 4th session of the Joint Commission meeting (20-22 October) which was held at Muscat. Citing Pharmaceuticals as an important area in commercial cooperation, Shri Mookherjee said that it was possible to invest jointly in production of antibiotic, vaccines and other life-saving formulations. In this regard he urged upon the Omani government to offer similar treatment to Indian drugs and pharmaceuticals companies as they are currently getting from Saudi Arabia. He also proposed joint investment in the production of medicines and cooperation in IT sector. The Indian Minister appreciated the fact that Oman had introduced a new Visa facility from July this year and said it will help in greater cooperation in the tourism sector. Both the Ministers discussed matters regarding WTO and said the recent Ministerial Conference in Cancun was an excellent example of solidarity amongst the developing countries. The Meeting also held discussions on the cooperation in the fields of transportation, textiles, agriculture and information technology. The major items of India's exports are machinery and instruments, manufactures of metals, manmade yarns etc. where as major items of imports are crude oil, non-metallic minerals and manufactures, metalifers ores and metal scrap etc. 23rd October, 2003 MYSORE –BANGALORE PASSENGER TRAIN DERAILS Five rear coaches of 231 Mysore-Bangalore passenger train derailed and capsized at 06.15 AM today on Bangalore-Mysore section, block section Naganahalli-Pandavpura, Bangalore Division of South Western Railway, killing 4 (EDITORS: CORRECT) passengers and injuring 25 including 10 grievously. The rear most coach overturned. The injured have been admitted to railway hospital, Mysore and Civil Hospital, Srirangapatanam. Through communication has been affected and restoration is awaited. An Accident Relief Medical Train and other ambulances from Mysore have reached the site. The Minister for Railways, Shri Nitish Kumar, the Minister of State for Railways, Shri Basanagouda R.Patil and Chairman, Railway Board, Shri R.K. Singh, have reached the site of the accident alongwith senior officials of South Western Railway overseeing rescue and relief measures. Shri Nitish Kumar has expressed profound grief over the accident and conveyed heart-felt condolences to the next of kin of those killed and deep sympathies to those injured. MPORT OF SENSITIVE ITEMS- CRUDE OIL MAJOR CONTRIBUTOR TO IMPORT GROWTH DATA FOR APRIL-JULY 2003 Press Note The total import of 300 sensitive tariff lines for the period April-July 2003 has been Rs 5,879 crore as compared to Rs 4,228 crore during the corresponding period of last year thereby showing a growth of 39%. The gross import of all commodities during same period of current year was Rs 1,06,440 crore as compared to Rs 86,802 crore during the same period of last year. Thus import of 300 sensitive items constitute only 4.9% and 5.5% to the gross import during last year and current year respectively. The major item that has contributed significantly to the growth is crude palm oil and its fractions. 2. Import of spices, Tea & coffee and Milk & Milk products have shown a decline at broad group level during the period. Import of edible oil, cotton & silk, fruits & vegetables, automobiles, rubber and SSI products have shown increase during the period under reference. 3. In the edible oil section, the import have increased from Rs 2,681 crore last year to Rs 4,038 crore for the corresponding period of this year. However, significant feature of edible oil import is that while import of crude oil have gone up by 69%, that of refined palm oil & palmolein have increased by only 11% indicating a better utilisation of the processing capacity in the country. Imports of Soya bean crude oil, kernail crude oil and sunflower crude oil have also gone up. 4. Imports of sensitive items from Indonesia, Malaysia, Argentina, USA, Egypt, Thailand, Mali, Greece, Guinea Bisu & Afganistan etc. have gone up while those from China, Brazil, Ivory Coast, Switzerland & Australia etc. have shown some decrease. DEFENCE COOPERATION AGREEMENT WITH CZECH REPUBLIC SIGNED India and the Czech Republic have signed an agreement on Defence Cooperation. The agreement was signed by the Defence Minister Shri George Fernandes and his Czech counterpart Miroslav Kostelka in Prague on Monday. Before the signing of the agreement both sides had elaborate discussions on matter of mutual interest. The highlights of the discussion include possibilities of joint production of trucks for the Indian Army, exploring the possibilities of procurement of protective equipment in nuclear, biological and chemical warfare, upgradation of T-72 tanks, MI series helicopters etc. It was also agreed that the two countries would constitute a Joint Committee on Defence Cooperation which would meet annually. Bharat Earth Movers Ltd. (BEML), a defence public sector undertaking and Tatra of Czech Republic are already engaged in joint production of trucks for the Indian Army. It has also been decided to increase the role of BEML in the joint production. The Defence Minister also held discussions with the Czech Prime Minister Mr. Vladimir Spidla. He also met the association of Czech Defence Industry and visited the plant where trucks for Indian Armed Forces are manufactured. Shri George Fernandes witnessed a live demonstration by a frontline Czech unit specialising in Nuclear, Biological and Chemical warfare counter measures. The Indian Defence delegation which included the Defence Secretary and Senior service representatives was on a three day visit to the Czech Republic.