EMBASSY OF INDIA DOHA
Vol. II No. 11	MONTHLY NEWSLETTER	December 15th, 1999

SECRETARY (EAST) VISITS QATAR
Mr Nareshwar Dayal, Secretary (East) in the Indian Ministry of External Affairs visited Qatar from 19-20 November, 1999 as a Special Envoy of the Indian Foreign Minister Mr Jaswant Singh and held wide-ranging discussions on bilateral and regional issues with HE Shaikh Hamad bin Jassim bin Jabor Al-Thani, the Qatari Foreign Minister and H.E. Abdul Rahman bin Hamad Al-Attiyah,  the Qatari Undersecretary in the Foreign Office.  Mr Dayal delivered a letter from Mr Jawant Singh addressed to the Emir HH Shaikh Hamad bin Khalifa Al-Thani, which was handed over to HE Shaikh Hamad bin Jassim bin Jabor Al-Thani, the Qatari Foreign Minister.  Mr Nareshwar Dayal was accompanied by Mr Talmiz Ahmad, Joint Secretary (Gulf) in the External Affairs Ministry.

Addressing the press after the official meetings, Mr Dayal indicated that the Indian Foreign Minister would be visiting Qatar sometime next year to take part in the first meeting of the Indo-Qatar Higher Joint Committee, to be held in Doha.  This Committee comprises of the Foreign Ministers of the two countries and has the mandate to address any bilateral issue. Mr Dayal also said that Qatar and India are discussing drafts of treaties for cooperation in civilian and criminal matters, including drug trafficking.

INDIAN COMPANY BAGS SHIPPING CONTRACT FROM QATAR
Baharati Shipyard, a Mumbai-based Indian company, signed a $15mn 10-year-contract with Qatar Shipping Company (Q-Ship) for building and launching four identical 55 tonne bollard-pull tug boats. The agreement papers were signed and exchanged by Q-Ship Chairman HE Mr Salem Butti al-Nuaimi and Mr P C Kapoor, Director, Bharati Shipyard. 

HE Nuaimi said the tugs would primarily be used for assisting QGPC in berthing and unberthing of ships at Messai'eed Port. They would also be used for fire fighting and pollution clean-up of vessels. The new tugs would be built in accordance with the regulations laid down by QGPC and the International Association of Classification Societies (IACS). "The tugs are scheduled to enter service after one year. But Bharati seems determined to complete work ahead of schedule", Nuaimi said.  The tugs would be built in Bharati Shipyard at Ratnagiri district of Maharashtra. 

As many as 17 companies from various countries had bidded for the contract of which six had been short-listed. Bharati Shipyard was selected after strict evaluation, Q-Ship officials pointed out. Kapoor said it was indeed an honour for Bharati Shipyard to be chosen for the execution of a contract for Q-Ship. "They have put a lot of trust in us. We will not disappoint them," he said. In May, the company had signed an agreement with the UK-based M/s Halmatic Ltd. to construct two identical 18 M pilot boats. These will be delivered by June 2000, he said. 

Bharati Shipyard is the leading medium-sized shipyard in the private sector in India and has been engaged in the design and construction of all types of seagoing/inland vessels up to 125m length. During the last seven years, it has built and launched some 40 tugs for users worldwide. In Mumbai, Bharati had set up a small shipyard about two years ago. Bharati is also the recipient of many national laurels, including the EEPC award for outstanding export performance (1994-95), National Corporate Excellence award (1995) and EEPC certificate for highest export performance (1995-96). 

PLASTINDIA PRESENTATION HELD 
The Indian Business and Professional Network (IBPN) held a presentation recently on the fourth international plastics exhibition Plastindia 2000 to be held in New Delhi from February 19 to 24. Plastindia's international relations committee member P D Sampat made the presentation at the Sofitel Hotel on November 20.  Targeted to occupy 50,000 square metres, Plastindia 2000 will be the largest trade fair of its kind in Asia and offers investors an opportunity to participate in the plastics industry, the press release said. Over 1,000 exhibitors from around 35 countries will participate and an estimated $500mn is expected to be generated from nearly 800,000 visitors. An international buyer-seller meet to be held along with the exhibition will help create joint ventures, collaborations and trading alliances in the plastics industry. 

The Plastindia official also offered to sign a Memorandum of Understanding (MoU) with IBPN to be finalised at a later date. India's Ambassador to Qatar R L Narayan was the chief guest at the presentation. Dr GRN Sastry,  member of the IBPN, gave an overview of the opportunities available for bilateral cooperation in the Plastics sector. 

INDO-GCC NEWS

GULF COUNTRIES OFFER INVESTMENTS IN KERALA
Several industrial and business groups in Oman and the UAE have reached informal understanding on making investments in Kerala with the industrial delegation from the State which visited these countries recently. The Industries Minister, Ms. Suseela Gopalan, who headed the delegation said that some companies had even applied for setting up units in the industrial parks being set up by the Kerala Industrial Infrastructure Development Corporation (Kinfra) at various locations in the State. She said the delegation, consisting of top officials from Kinfra and the Kerala State Industrial Development Corporation (KSIDC), had signed three memorandum of understandings with different companies for setting up a ceramic sanitaryware unit in Kasaragode, a refrigeration equipment factory in Kochi and a rubber-based industry at Ayrapuram in Ernakulam district. 

A team from Adminex, the UK-based company, which had come forward to set up the Rs 970 million sanitary ware unit, would visit Kerala in the first week of January to firm up the proposal, the Minister said. Besides, two companies from the UAE have sought allotment of land in the upcoming information technology park of Kinfra in Malappuram district for setting up Web design and data processing units. 

SHARJAH BID TO LURE INDIAN INVESTMENTS
India is among the five core markets identified by the Sharjah Free Zones Authority to attract investments into the Emirate's free zones. Sheikh Tariq bin Faisal Al Qasimi, Chairman of the Sharjah Department of Economic Development and the Sharjah Free Zones Authority, said that the two free zones in Sharjah have had a successful run despite the depressed markets in the recent past. 

Addressing the Indian Business Council (IBC) meeting, he said that the free zone authority had identified India, Pakistan, Iran, Kuwait, and Saudi Arabia as five major countries from where to attract investments into the Sharjah Airport Free Zone (SAIF) and the Hamriyah Free Zone in the Emirate. Sheikh Tariq said the response from Indian investors was very positive and various delegations had been sent to India to promote the two free zones. The SAIF Zone has currently 380 companies, while the Hamriyah Free Zone had 72 companies. He said the two zones offer the best of facilities to the investors and that services were tailored to meet individual investor needs.  Mr. Ashoke Mukherji, Indian Consul General, said that the IBC and the Consulate were working in tandem to play a supporting role to the Indian business community in Dubai. 

INDIAN GAS SCOUTING FOR LNG SUPPLIER  FROM ABU DHABI
The IGL (Indian Gas Ltd) is looking to source LNG (liquefied natural gas) from Abu Dhabi. IGL officials who attended the Gastrade’99 conference, made a presentation on the company’s power project in Vembar, Tamil Nadu, to the ADNOC (Abu Dhabi National Oil Company). IGL officials said at the conference that the power project in Vembar had secured the government clearance, as well as techno-economic clearance. It had also signed a the PPA (power purchase agreement) with the SEB (state electricity board). The project has a capacity of 1873 MW. The company, floated by non-resident Indians, is looking to put in place a fuel agreement to achieve financial close of the project. Talks are on with the ADNOC in this connection. The company is looking for an LNG supplier for its LNG terminal an c.i.f. basis. IGL is developing its own 2.5 MTPA (million tonnes per annum) LNG terminal at Manapad in Tamil Nadu. The Gastrade conference highlighted the importance of India as a focus market for all LNG project developers in the Gulf, with a number of LNG import schemes expected to sign up suppliers in the near future. 

 INDIAN PM REGRETS FAILURE OF WTO TALKS
Prime Minister Mr Atal Bihari Vajpayee has regretted the collapse of WTO talks in Seattle and emphasised the need for early negotiated settlement of trade issues while asserting that India will protect its core interests. In his response to Seattle ministerial meetings which ended without any agreement, Mr Vajpayee said "developing and large population countries like India have core interests to protect. India will do that." He said "the need for negotiated settlement of trade issues between nations, based not on dominance and unilateral advantage, is obvious."

A spirit of consensus and avoidance of linking trade with extraneous issues was necessary to reach a settlement, Mr Vajpayee stressed. He cautioned the rich nations to be sensitive to core interests of developing nations and said "India looks forward with renewed anxiety to resumption of talks soon." Stating that globalisation would increase interdependence of the nations, especially in trade and economy, Mr Vajpayee said in an unequal world it, however, tends to get distorted into a relationship between the dominant and the dependant.

INDIA-EU THINK TANK TO BE LAUNCHED
India and the European Union (EU) has decided to launch an India-EU think tank network and organise an Indo-EU round table next year. At the 12th India-EU ministerial troika meeting held in Helsinki, Finland, the two sides also stressed the importance of international cooperation to successfully combat international terrorism, organised crime and drug trafficking. "The EU side took note with interest the Indian initiative on an international convention on preventing terrorism introduced at the United Nations," a joint press statement issued at the end of the one-day meeting said.

It was agreed that practical mechanisms for cooperation in these areas should be identified, the statement added. The Indian External Affairs Minister Jaswant Singh led the Indian delegation which included C Dasgupta, Indian Ambassador to the EU and C R Balachandra, Indian Ambassador to Finland. The EU delegation was headed by Tarja Halonen, Foreign Minister of Finland, current Chairman of EU.

INDIA ELECTED CHAIRMAN OF OZONE FUNDING BODY
India was has elected Chairman of the executive committee of the multi-lateral fund of the Montreal Protocol on substances that deplete the ozone layer. It also received funds worth 17 million US Dollars for various chloroflurocarbons (CFCS) phase out programmes, at the two-day meeting in Beijing. India was amongst the developing countries which lent support to the Beijing declaration at the 11th meeting of the parties to the Montreal Protocol on substances that deplete the ozone layer.

India was represented by a high-level delegation led by Minister for Environment and Forests Mr T R Baalu. According to official sources, the Beijing declaration emphasises the need to ensure that the commitments of the developed countries to the replenishment of the multi-lateral fund were not less than what had been agreed to in the last replenishment period. A multi-lateral international fund set up by the participants has provided about one billion US Dollars in aid to help developing countries fulfil their obligations in ozone layer protection. 
 
 

PARLIAMENT OKAYS INSURANCE BILL
Six years after the Malhotra Committee recommended opening up the Indian insurance sector, the Indian Parliament has approved the Insurance Regulatory and Development Authority (IRDA) Bill, signalling the entry of private sector players, including foreign companies, into the insurance business. The Bill was approved by both the Houses of the Parliament with the Government receiving support from its allies, the principal opposition party, the Congress (I), and the Bahujan Samaj Party. 

The Finance Minister, Mr. Yashwant Sinha, who piloted the Bill in Parliament, assured members on the capping of foreign equity at 26%, accountability of the IRDA to Parliament, continuation of GIC's pre-eminent position as the leading reinsurer in India and ensuring a level playing field for the State-owned  companies, LIC and GIC, vis-a-vis private companies. The IRDA Bill would provide a signal to domestic and international investors that the Government was not in favour of State monopoly and instead, wanted competition between the public and private sectors, he said. Mr. Sinha made it clear that the Government would not permit the breaching of the threshold foreign equity level of 26% cent in any form. The Government, he said, had gone into the issue of a definition of an Indian company for the purpose of the IRDA Bill, and would choose to be guided by the definition of an Indian company in the Income-Tax Act. As a further measure of caution, the Government has also inserted a clause saying that no company can offload one per cent or more of its shares without the prior approval of the IRDA, Mr. Sinha said. All precautions against financial engineering have thus been taken, he pointed out. 
 

INFLATION IN INDIA FALLS BELOW 3% AGAIN
After a brief two-week spell above the three per cent mark, annual rate of inflation fell by 0.27 percentage points to 2.85 per cent for the week ended November 20, on account of a massive fall in the prices of food items. The prices of food items fell across-the-board leading to a drastic 0.4% decline in Wholesale Price Index (WPI) for all commodities to 368.3 (provisional) from 369.8 (P) in the previous week.

Indices of both primary food articles and manufactured food items declined during the week by 1.6% and 0.5% respectively during the week. Consequent to the fall in food prices, the rate of inflation declined to 2.85 per cent (P) compared to 3.12 per cent (P) in the previous week and 7.69 per cent in the corresponding week of last year. The lower rate of inflation during the most part of the current fiscal has been mainly on account of a comparison with a higher base last year when overall prices were up following an abnormal increase in vegetable prices. The rate of inflation based on the final index for the week ended October 10, stood at 2.55 compared to 1.9% on the provisional index. 

FDI INFLOWS LIKELY TO TOUCH $5 BILLION MARK
The FDI (foreign direct investment) inflows are expected to witness a quantum jump with insurance and financial sector reforms in place. The union minister of commerce and industry, Mr Murasoli Maran, while addressing the economic editors’ conference said that FDI inflows could even touch the $5 billion mark in the current financial year. Total FDI inflows till September 1999 were in the region of $3 billion. The government has set a target of $10 billion FDI inflows annually. Quoting a AT Kearney study on FDI, Mr Maran said that there seems to be a perceptive positive shift towards India compared to other Asian nations such as China, Indonesia, and Malaysia. Em-phasizing the need for improvement in infrastructure  to attract FDI, the National Council for Applied Economic Research had estimated that an investment of about $345 billion is required in the next six to eight years for development in the power, roads, ports, telecom, and urban infrastructure. 
 
 

EXPORTS INCREASE BY 22% IN OCTOBER
The export sector has registered a growth of 22% in October and cumulatively a 10.02% growth during the first seven months of the current fiscal. Provisional figures released by the Directorate of Commercial Intelligence and Statistics (DGCI&S) has shown that exports during April-October 1999 were estimated at $20,757.15 millions, against $18,866.21 millions in the corresponding months of 1998, showing a growth of 10.02%. In October alone, exports fetched $3,154.91 millions, against $2,593.48 millions in October 1998, showing a growth of 21.65%. Imports during October were valued at $3,898.59 million, against $3,376.84 millions in October 1998, showing a growth of 15.45%, while the cumulative growth of imports during the first seven months of the current fiscal at $26,552.71 millions were 7.53% higher than the level of $24,694.08 millions in the comparable period of 1998. Trade deficit during the first seven months of the current fiscal was estimated at $5,795.56 million which is slightly lower than the deficit of $5,827.87 millions in 1998 during the corresponding period. 

On the import front, the oil imports during April-October 1999 cost the Exchequer a massive $5,276.53 millions, against $3,470.45 millions in the corresponding months of 1998, reflecting a rise of 52.04%. Non-oil imports, however, showed only a modest growth of 0.25% during this period at $21,276.18 millions, against $21,223.63 millions in the corresponding months of 1998. 

According to the Economic Adviser in the Commerce Ministry, Dr. H.C.S. Prasad, the exceptional bounce in the exports was in line with the official expectations as the world economy was booming in general and the markets in South East Asia were also buoyant. Another reason for the buoyancy in the country's exports is that some big-ticket items like gems and jewellery, basic chemicals and engineering goods exports had picked up pronouncedly in recent months, spurring hope of a recovery in the industrial sector. Besides, exports of spices, cashew and oil meals too picked up in recent months. 

YARN EXPORTS IN JAN-OCT TOUCH RS 5.38 BN
Cotton yarn exports during the ten-month period ending October 1999 have touched Rs. 53.80 billion with the total quantity shipped under various export windows working out to 447.55 million kg. The shipment to the non-quota market falling under the count-quantitative ceiling category of exports stood at 132.54 million kg (valued at Rs. 13.91 billion) against the annual level of 300 million kg. 

Of the 447.55 million kg shipped, the coarser yarn of 1s to 40s count exported alone constituted 404 million kg, which is valued at Rs. 44.78 billion, followed by medium count yarn ranging from 41s to 60s count at 24.24 million kg valued at Rs. 4.59 billion. The finer yarn of 61s count and above exported during the period works out to 18.70 million kg valued at Rs. 4.42 billion. The share of the processed yarn in the total yarn shipped has been at 41.33 million kg valued at Rs. 5.36 billion.  The yarn exported by 100% export oriented units continue to constitute the major chunk and the total yarn shipped under this category stood at 216.78 million kg valued at Rs. 25.81 billion. 

Exports allowed under the export promotion capital goods (EPCG) stood at 35.14 million kg valued at Rs. 4.14 billion. The shipment under the advance license scheme (ALS) works out to 17.56 million kg at a value of Rs. 2.13 billion. The average (all-count) price realised in exports during the period has stood at Rs. 120.22 per kg. While the per unit value realised by yarn shipped under the open general licence remained higher at Rs. 222 per kg compared to Rs. 121 fetched by the ALS shipment, Rs. 119 by the EOU exports and Rs. 117.85 by EPCG exports. 

GEM AND JEWELLERY EXPORTS UP 21%
The Gem and Jewellery exporters have registered a 21% growth at $3.5 billions during the first half of the current year as compared to $2.89 billions in the corresponding period last year. The cut and polished diamonds which account for a major share of gem and jewellery exports has registered a growth of 22.6% over the previous year. Cut and polished diamond exports increased to $2.89 billions compared to $2.36 billions. Exports of gold jewellery have increased by 12% at $438.38 millions as compared to $391 millions during the same period last year. Export of coloured gemstones were up 20% at $86.53 millions as against $79.90 millions during the same period.

Mr. P.S. Pandya, Chairman, the Gem and Jewellery Export Promotion Council said,  `India's participation in various exhibitions abroad like the jewellery and watch show in Basle, JA International show in New York and the India International jewellery show has helped to boost the image of the industry and to impress upon the buyers in foreign markets about the immense capabilities of the Indian gems and jewellery manufacturing industry.''  The council is in continuous dialogue with the Government of India to ease some of the restrictive policies to provide a greater thrust to the export of gems and jewellery. 
 

OIL MAJORS, GAIL AND NTPC, TO GET 10% EACH IN PETRONET LNG
The IOC, BPCL, GAIL (Gas Authority of India Ltd), ONGC (Oil and Natural Gas Corporation), and NTPC are set to become equal partners in Petronet LNG with a 10% stake each, armed with special veto rights. In yet another turn to the equity controversy of Petronet LNG, the government has now zeroed down on a proposal by which all five contenders for the 50% stake get an equal stake of 10% each. The five companies vying to have a stake in the company are GAIL, the ONGC, the IOC, the BPCL, and the NTPC. Apart from the fact that all the companies come with an equal stake, they are also likely to be given veto powers and play a role in the management. The special resolution will enable each of these equity players to have voting rights and thus managerial control. Since the NTPC could not get 26% stake it would settle for an equal stake with the oil companies and also enjoy the same powers. The power ministry had earlier held that the NTPC would not be a part of the company unless it is given a minimum stake of 26% which would ensure voting rights for the company. But this could not be accommodated following strong resistance from all the oil companies.

GAIL, IOC, BPCL TO MARKET PETRONET’S LNG
GAIL, the IOC, and the BPCL are all set to enter the LNG marketing industry with Petronet LNG finalizing its marketing agreement. The three major oil companies, which were vying with each other to get the marketing rights of the product, have finally reached an agreement on the marketing of LNG. While it has been decided that GAIL would be the principle marketeer in both Dahej and Kochi, the IOC and the BPCL will be the subsidiary marketing companies for the northern and southern regions, respectively. Petronet LNG, which is developing two LNG terminals at Dahej and Kochi, will sell the entire product to the marketing company on a take or pay con-tract. The take or pay contracts will ensure that the gas producing company is paid in time. The memoranda of understanding, signed by various power and fertilizer companies with Petronet LNG for supplies, will now be transferred to the marketing companies as they would be the executing companies. 

AMIG, AUSTRALIA LNG PACT FOR SUPPLY TO ORISSA PROJECT
The Abu Dhabi-based Al Manhal International Group (AMIG), has signed a heads of agreement (HOA) with Australia LNG Pty Ltd, to investigate long-term LNG supply from Australia, for the $5 billion LNG project in Gopalpur in Orissa. The HOA was signed by Mr. Rashid Al Dhaheri, Managing Director, AMIG, and Mr. Bruce Gordon, Vice-President of Australia LNG. AMIG had earlier signed an MoU with Orissa to supply LNG by setting up a petrochemical complex and an onshore LNG terminal in Gopalpur. 

The project would be receiving LNG in late 2003 or early 2004, eventually receiving five million tonnes per year. This is the first time Australia will be supplying gas to India. AMIG is proposing to construct an LNG terminal as part of an integrated complex, including an import/regassification terminal, a urea ammonia plant, a 2,500 MW power plant, a naphtha and gas cracker with a petrochemical plant, Mr. Al Dhaheri said. AMIG is setting up the complex in a joint venture with the Industrial Promotion and Investment Corp of Orissa (IPICOL), a State Government undertaking. The total investment at Gopalpur by AMIG and associates Vasavi Oil & Gas Pvt. Ltd, of New Delhi, is envisaged to be over $5 billions. AMIG has retained the services of Sumitomo Bank as financial advisor for this project. 

BP AMOCO TO POPULARISE USE OF DME IN POWER PLANTS
BP Amoco has stepped up its efforts to popularise di methyl ether (DME), which has better properties than naphtha, as an alternative fuel for power projects. The company feels the time is now ripe for selling DME, as the Union Power Minister, Mr. P.R. Kumaramangalam, is now keen on discouraging the use of naphtha as power plant fuel. 

DME is derived from natural gas which has roughly the same burning properties as LPG. It is also easy to handle, unlike liquefied natural gas (LNG) or naphtha. BP Amoco Gas and Power India have just concluded a joint collaboration agreement with Gas Authority of India Ltd (GAIL) for producing (converting natural gas into) DME and selling it for power projects. The 50:50 joint venture company would be incorporated as soon as the partners find a buyer. The Indian Institute of Petroleum (IIP), Dehradun, will also be a partner in the venture; GAIL would give 1% equity to IIP from its holding. 

BP Amoco has initiated dialogue with some independent power producers (IPPs) in Tamil Nadu, in an effort to sensitise them to the superior qualities of DME vis-a-vis naphtha. Mr. Raj Puri, who is in charge of BP Amoco Gas in India, told Business Line that DME was 3.5 % more efficient than natural gas and 6.1% than naphtha, in production of heat. This, coupled with the lower maintenance costs if DME is used, translates to about an 8% increase in overall benefits as compared to naphtha, without regard to the prices of the fuels. Naphtha prices are highly volatile, while DME prices are stable, and most of the time lower than naphtha. 

CORPORATE NEWS

.ENRON EYES TELECOM SECTOR IN INDIA
US Multinational Enron has said it would be entering the fast growing telecom sector in India and said that the company would develop the fibre optic capability in the country to cater to the telecommuncations requirements. "We want to diversify into telecom and develop the fibre optic capability by bringing our technology from the U S," CEO of Enron International Kenneth L Lay said.

The telecommuncations business would be managed by Enron India, an affiliate of Enron International, and the multinational company would bring in its latest technology and its expertise of telecom to India, Lay said. Enron would initially focus on the higher band width segment by providing multimedia and video type data based services, he said.

Asked about the investments by the multinational company in the new area, Lay said "it is too premature to talk about the investments as we are still talking to various companies for collaboration in the telecom sector". Enron already has a tieup with IRCON for its foray into the telecom sector. The company operates from its Enron Intelligent Network worldwide. The multinational company, which is setting up a 1.2 billion dollar power project at Dabhol is also eyeing other sectors including the Liquefied Natural Gas (LNG) business for which Enron is setting up an LNG terminal at the project site. 

Enron is actively considering such alliances and the corporation has already picked up six per cent stake in the public sector Gas Authority of India Ltd (GAIL) when it went for disinvestment early in November this year, Lay said. The multinational company was also partnering another public sector Oil and Natural Gas Corporation (ONGC) at an off-shore oil field. 

DABUR, US CO IN TIE-UP FOR INSURANCE VENTURE
The Dabur group has signed a memorandum of understanding (MoU) with the $90-billion All State International Inc of the US for the setting up a life insurance business in the country. This follows the decision of Liberty Mutual of the US to withdraw from its earlier MoU with the group for a similar venture. 

Mr. Mohit Burman, Director, Dabur India Ltd, said: ``The insurance venture, involving a total investment of around Rs. 3 billion over a period of five years, will take the shape of a new company called Dabur All State Life Insurance Co Ltd, in which the Dabur group will hold 76% stake with the US partner holding the rest. It will initially start with an investment of Rs. 1.2 billion.'' 

The entire insurance venture will initially be funded by the two promoters as there are no immediate plans for raising funds through a public offer in the new company. The proposed new entity will commence operations immediately after the guidelines for private insurance companies are issued by the Insurance Regulatory and Development Authority (IRDA). The first policy is likely to be issued in January. The group is currently working on a business plan with the joint venture partner in this regard. The plan involves entry into life and health insurance, besides pension and annuity funds. 

NEWS IN BRIEF

SIX PORTS WORTH RS 8 BN MAY GET NOD
Six port projects worth Rs 8 billion are expected to be approved in the next few months. The projects include the second liquid chemical berth at Mumbai; two new and one existing multipurpose berths for captive users at Vishakhapatnam; captive coal & general cargo berth at Mumbai; barge handling facilities, a berth and a truck parking complex at Kandla. These six projects will be in addition to the already approved 12 port projects for a total cost of Rs 37.26 billion.  While the six new projects would result in capacity addition of 7.5 million tonne to the ports, the other 12 projects would add nearly 50 million tonne of capacity to the port system. 

Of the six new projects, the liquid chemical berth at Mumbai would involve a project cost of Rs 2 billion with a capacity addition of 3 million tonnes. Consultants have already been appointed for preparing the feasibility study of the project. The captive coal and general cargo berth at Pir Pau, Mumbai, would require an investment of Rs 2.5 billion and would result in 1.5 million tonne of capacity addition. The promoter of the project is Tata Electric Company. A consultant has already been appointed to prepare the feasibility study for the Rs 1 billion multi-purpose berth project at the Vishakhapatnam port. The project, which may involve capacity addition of 2 million tonne, would require creation of two new berths and improvement of an existing cargo berth. 

There are three projects under consideration at the Kandla port totalling an investment of Rs 2 billion. The first project is for the creation of a modern truck parking complex with an investment of Rs 500 million. The feasibility of the project has already been worked out and the proposal is awaiting approval of the surface transport minister. The second project is for construction of a cargo berth by Apeda at a cost of Rs 500 million with a capacity addition of 1 million tonne. The third project is regarding creation of barge handling facilities at a cost of Rs 1.5 billion. 

INDO-FRANCE TRADE TO DOUBLE BY 2005
France is aiming to double its trade with India and become one of the top five foreign investing countries by 2005, French Minister for Public Works, Housing and Transport, Louis Besson said. India is an important market and geographically well-placed in Asia, Besson said.  "We aim to double bilateral trade with India by 2005 which is currently about two bilion dollar per annum. France is looking at all the sectors for possible cooperation but both the countries can work together in areas such as Transport, Aeronautics, Space technology and water treatment technologies," Besson said.

He said cuurently the balance of trade was in favour of India but his government had no problem in this regard. Sale of French goods were increasing in India which was evident from the fact that during the first half of 1999 calander year, French exports to India increased by about 12% compared to exports in the same period last year.

AIR INDIA -VIRGIN ATLANTIC SIGN CODE SHARING AGREEMENT
A code-sharing agreement was signed between Air-India and Virgin Atlantic by which the later will be operating three flights a week on the Delhi-London route using A-I's unutilised routes on the sector. New bilateral agreements between the UK and India are expected to be signed in January 00, which would enable Air India to  sell seats on all the three Virgin flights and make on its unutilised frequencies. 

A-I has offered three unutilised rights to Virgin on the Indo-UK sector. It has three more such titles and is considering offering them to the British carrier in the future. The airlines are likely to extend the code-sharing agreement to the US routes as Virgin flies to a number of US cities that A-I does not. Virgin will be flying its Boeing 747s on the Delhi-London sector.