This deadline was given to those operators who wished to migrate to the new policy.

In view of the Election Commission’s notification in this matter, the government had to take this stand. Considerable time had been lost owing to the matter going to court. It is said that most of the private operators may fail to pay because of the short time they have been given.
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India can send man to moon
New Delhi: U R Rao, space scientist, has said that the Indian Space Research Organisation has developed the capability to send men to the moon.

Isro has the Geostationary Launch Vehicle technology to make the complex launch vehicles. It can also make the spaceships needed for the journey.

He however said that ‘destination moon’ was not high on the priority list at Isro for the time being.
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Rs 600 crore to be raised through RBI auctions
Mumbai: The Reserve Bank of India will be trying to raise Rs.600 crore on August 19 through two state government auctions. These will be yield-based auctions and includes Rs.400 crore for the state of Andhra Pradesh and Rs.200 crore for Tamil nadu.

Sources say that the cut-off yield could be around 25 basis points more than the prevailing yield on similar ten year paper.

Punjab raised around Rs.60 crore in January at a cut off of 12.47 per cent.
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NHB asks Sebi to change MF guidelines
Mumbai: National Housing Bank, which is coming out with a Rs.100 crore mortgage-backed securites issue, has asked Sebi to change the mutual fund guidelines in such a manner that mutual funds will be able to invest in mortgage-backed securities.

So far, Sebi regulations in this regard, allow mutual funds to invest only in securities that have an underlying saleable asset. NHB general manager, R V Verma, said that they have initiated discussions with Sebi for suitable amendments, so that it would help mutual funds to participate in NHB’s issue.
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Industrial output index up
New Delhi: Indusrial production in the country recorded a 5.6 per cent growth in the first quartrer of 1999 compared with a growth rate of 4.5 per cent in the corresponding period last year. In June 1999 itself, the index of industrial productioin went up by 5.5 per cent, taking  the general index to 144.6.

The quick estimates of index of industrial   production were released by the Central Statistical Organisation.

The estimates show that the index for May 1999 had touched 7.2 per cent as comapred to 3.7 per cent in May 1998.

Manufacturing and electricity sectors grew by 6.5 per cent and 4.1 per cent respectively, while mining output dropped by 1.5 per cent.
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Huge tax collection gets nullified due to reliefs
New Delhi: Around 12.4 per cent of the gross tax gets nullified owing to the tax reliefs claimed as per the approx. 50 tax relief avenues that are available. This was stated in a study conducted by the statistics division of the Income Tax Department.

Tax deductions and rebates can be claimed by corporates and individuals as given in chapters VIA and VIII of the Indian Income Tax Act. Particular among these are the sections pertaining to PPF constribution, LIC premium, deduction for interest under section 80L, export turnover, and donations which cover 12.4 per cent of the total tax collected.
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Ratings by agencies show a mixed trend
Mumbai: The government guaranteed bonds of Industrial Promotion and Investment Corporation of Orissa Limited has been downgraded by Crisil to BB(so). BB(so) denotes inadequate safety –structured obligation. With this, the instrument has been downgraded by three notches, from BBB (so), which denoted moderate safety for a structured obligation. IPICOL had earlier issued these bonds for raising Rs.130 core.

The A+ Crisil rating assigned to the Nuclear Power Corporation’s Rs.1,035 crore bond issue, has been upgraded by two notches to AA, which means higher safety. Credit Analysis and Research Ltd. has rated these bonds as AA-, which give it a high safety rating, but with a lower standing within the same category.

The Ahmedabad Municipal Corporation’s Rs.100 crore bond issue, which was assigned a AA(so) – high safety structured obligation rating – has been put under a rating watch by Crisil. This is as a result of the Gujarat state cabinet’s move to abolish octroi in the state.
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HSBC raises Rs 230 crore
Mumbai: As per a report in The Economic Times, Hongkong and Shanghai Banking Corporation’s Indian wing has raised Rs.230 crore via a 10 year paper, with the book builders finally arriving at a coupon of 13.05 per cent. This is keeping in line with the capital adequacy norms that have to be followed by banks operating in India.

HSBC is having a capital to risk weighted assets ratio of 9.3 per cent, which it has to take it up to nine per cent by 31 March 2000. With the current issue, HSBC is expected to be comfortably home.
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SBI subsidiaries may have to report every six months
Mumbai: The State Bank of India would be calling on its seven associate banks to present half yearly accounts to itself. Currently, SBI monitors them on an yearly basis. Consolidation of group accounts could become easier, as and when this materialises.

This is also part of SBI’s move to taking its accounting standards close to the US Generally Accepted Accounting Practices, which will enable the bank raise funds from the American markets.
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LIC Housing plans consumer loans
Mumbai: Housing finance player, LIC Housing finance is plannng to enter the arena of consumer loans, intitially by providing it to its housing finance clients. These loans will be for items such as furniture, fixture, consumer durables and other such assets.
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Stanchart makes Bank Bali buy, contingent
Jakarta: Standard Chartered Bank plc, which offered to buy a portion of Bank Bali of Indonesia, has made the offer conditional. The Indonesian government has to recover Rupiah 546 billion that was found missing in the bank. This was stated by the Indonesian Bank Restructuring Agency.

The money seems to have been siphoned off by Bank Bali’s previous management. Indonesian government has to either use public funds to fill in the gap or forego the offer.
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