Mr Vajpayee is expected to take his oath of office on 14 October with a small and cohesive team.

With the Bharatiya Janata Party's commanding position in the alliance, the other alliance partners are rather subdued in their demands. The alliance can now count on the support of more than 300 members with some other smaller groups -- the Sikkim Democratic Front, the Mizo National Front, and the National Conference -- also pledging support to Mr Vajpayee. The effective strength of the Lok Sabha is 537.

The NDA convened a preliminary meeting on 8 October to discuss ministry formation. It was attended by all the alliance leaders except N. Chandrababu Naidu of the TDP. Mr Naidu had, however, sent in his letter pledging support to the alliance. He is busy in Hyderabad with the formation of the new state government after the state assembly elections re-elected his party to power.
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New govt may have to up diesel prices again
New Delhi: Diesel prices may be increased again in November 1999. The petroleum ministry has decided to change the price on a per month basis, depending upon the movement of world prices. The recent price increase has been found inadequate to cover the oil pool deficit.

The new government may also impose additional taxes on items falling within the levels prescribed by the World Trade Organisation, reduce the duty on crude, and plug the modvat loopholes.
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Syndicate Bank comes out with unique idea
Mumbai: The Manipal-based Syndicate Bank has said that it will permit all its employees to go on deputation to other private banks and financial institutions.

According to a report in the Business Standard, the bank has ruled out a voluntary retirement scheme. The bank's chairman, K V Krishnamurthy, has said that an employee who wished to go on deputation can apply for leave without pay and can join any other private bank or financial institution. He should be on such deputation for a minimum of two years and a maximum of three years.
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Ficci to be restructured
New Delhi: Andersen Consulting has been appointed by the Federation of Indian Chambers of Commerce and Industry for suggesting restructuring measures. Andersen has asked Ficci to restructure its internal organisation, and build the Ficci brand. It has given some advice on improving revenue generation.
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TDS for FIs on infrastructural investments
New Delhi: According to a report in The Economic Times, income from investments made in infrastructural facilities by financial market players will be subject to tax deduction at source, even though they are exempt under section 10(23)(G) of the Income Tax Act.

Upon receipt of the income, a certificate stating non-deduction of tax has to be obtained from the income tax officer and submitted to the company, where the investment is made. Another method is to claim a refund.
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Education to be ‘channel’ised
New Delhi: The information and broadcasting ministry is finalising a plan to allot a frequency for an education channel using the FM radio broadcasting. Universities such as Ignou can use this channel.

The channel will be relayed in about 40 citieswith facilities for FM radio broadcasting. This also means that in Delhi, Calcutta or Chennai, where 12 channels were reserved for FM operators, only 11 will be available now.
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Troubled banks ask for recapitalisation
Calcutta: Biswajit Choudhuri, chairman of United Bank of India, and Sharda Singh, chairman of Uco Bank, say they should get funds from the government rather than implement the Verma Committee’s recommendations.

The chairmen feel that they can devise their own turnaround strategies for their banks and that there is no need for advice from panels such as the Verma Committee. The bankers feel that remedies should be bank-specific and not industry-specific. They agree, however, that the Verma Committee’s findings are correct.

Unions of the Indian Bank, a ‘weak bank’,  led a rally in Chennai, protesting the recommendations of the Verma Committee. They feel that the best option is for the bank to take stringent measures to recover bad loans occurring due to wilful default. Proposing a wage freeze or a wage cut, the unions feel, is penalising people who were not responsible for the state of the bank.
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RBI may handle corporate applications
New Delhi: The finance ministry may hand over to the Reserve Bank of India the responsibility of evaluating and permitting companies to borrow abroad. That should come as a relief for companies with external borrowing plans because it will simplify procedures. Currently, the RBI can sanction external commercial borrowings up to $5 million.
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HSBC offers global card
Mumbai: Hong Kong & Shanghai Banking Corporation has launched its global credit card that will be accepted by about 1,00,000 establishments in India, and has a global reach of 16 million outlets. The card holders can avail of cash withdrawal facility at more than 5.3 lakh automatic teller machines spread over more than 100 countries. HSBC will also launch the HSBC Premier on 1 February 2000.
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Natwest wants to ward off bid
London: National Westminster Bank has said that it will consider even selling assets to avoid being taken over by the Bank of Scotland in a hostile manner. NatWest has announced that chairman David Rowland will replace Derek Wanless as chief executive. Ron Sandler, former chief of Lloyds Bank, will join Natwest as chief operating officer.

Bank of Scotland had earlier made a $35 billion hostile bid for NatWest. Market sources say that other banks such as Royal Bank of Scotland, Abbey National and Halifax are also bidding for NatWest.
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