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VATICAN CITY, Sept 1: While many may already think of Mother Teresa as a saint, any official canonisation will has to wait, under Vatican rules that require a five-year interval after a candidate's death.

With the first anniversary of her death at the age of 87 on September 5 last year, tributes to the diminutive yet media savvy nun who catered to Calcutta's needy have again brought this question to the forefront.

Even a person like Mother Teresa, whose selfless devotion to the downtrodden and oppressed helped win her the 1979 Nobel Peace prize, cannot justify speeding up the process, said a Vatican spokesman.

``All candidates for sanctification are equal before God,'' he said. The rules require a five-year wait before the path towards sainthood starts. After her death, many voices within the Roman Catholic church tried to push for an exception in Mother Teresa's case and urged for an immediate canonisation. Among them was her close friend Italian cardinal Pio Laghi, now 76, who argued that Mother Teresa had ``done what Jesus did 2,000 years ago''.

In Rome, however, members of Her Missionaries of Charity, a community of 2,500 nuns around the world who minister to the poor, sick and abandoned, uphold Vatican rules and have not pressed for any early start to the canonisation procedure.

Though Pope John Paul II simplified the process in 1983, the path towards sainthood is still a long one. It starts with the local bishop in the diocese where the candidate lived, who must conduct a full inquiry into the acts, writings, and possible martyrdom of an individual whose ``reputation for holiness'' has been brought to the attention of religious authorities.

In the case of Mother Teresa, this would fall to the Calcutta diocese to collect evidence of what the church refers to as the ``heroic virtue'' of the candidate, meaning their practice of the Christian virtues of faith, hope and charity to an outstanding degree.

Should this initial inquiry prove worthy in the bishop's eyes, the file will be transferred to a special Vatican committee for a second look to see if it is deemed worthy enough to send on the Pope, who makes the final decision.

In his 20 years as pontiff, John Paul II has broken church records for pronouncing the most number of beatifications - a first formal step on the road to sainthood - and actual canonisations. As of August, he has beatified 803 people and canonised 279 saints.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. CHENNAI, Sept 1: Virtually every major political party in Tamil Nadu is busy shifting loyalties and schisms in political alliances dominate the scene as the game of numbers at the Centre casts a shadow on them.

Poll allies from 1996, the DMK and the Tamil Maanila Congress (TMC) continue to be part of the United Front (UF) but the DMK seems to be reaching out to the BJP in an effort to save its Government from the marauding influence of the AIADMK, while the TMC's G K Moopanar prefers a Congress-led Government at the Centre. The TMC's view is fortified by the Left parties' inclination to pave way for a Congress-led Government, which they consider is the lesser evil as compared to the BJP. However, with opinion divided in the UF, confusion pervades, with each constituent chalking out the best option for itself.

Despite different goals, the DMK and TMC continue to keep their alliance in Tamil Nadu afloat. However, a break will be inevitable if they have to choose between the BJP and the Congress as a national ally. It would require considerable sagacity to keep their alliance going in Tamil Nadu in the event of the two opting for different stable-mates at the Centre.

The picture on the other side is even more chaotic. The AIADMK's now-on now-off relationship with the BJP has even got her allies protesting. The Pattali Makkal Katchi (PMK), the Marumalarchi DMK (MDMK) and the Tamizhaga Rajiv Congress (TRC) are willing to throw their lot with the BJP at the Centre but are reluctant to announce a break in ties with the AIADMK in Tamil Nadu.

These AIADMK allies have announced that they would continue to back the Vajpayee Government and that they wanted the AIADMK to continue backing it. The PMK and MDMK have even struck a note of rebellion by declaring that they would continue to back the BJP Government even if Jayalalitha withdrew her party's support. The TRC has also made it clear that it would not pull out of the Government.

However, they are willing to wound but afraid to strike, when it comes to their relationship with the AIADMK. Obviously, for the TRC, it is difficult to give up a good portfolio like Petroleum. These allies, too, are in a dilemma to choose between the BJP and the AIADMK as their future poll partner, just as the UF partners have their own choices.

It is thus that the MDMK leader Vaiko and the PMK founder-leader Dr S Ramadoss soft-pedal their parties' stand regarding the AIADMK and do not take their relationship with the AIADMK to the point of no-return, even while making it clear to the BJP leadership that they stand by it.

The misgivings of the MDMK, PMK and the TRC regarding the AIADMK's repeated threats against the Vajpayee Government can be traced to the political formations at the Centre. These three parties do not find a place in AICC president Sonia Gandhi's long-term strategy to form a Congress-led Government.

The perceived softness of the MDMK and PMK for the LTTE, which has been identified by the Special Investigation Team (SIT) as responsible for the assassination of Rajiv Gandhi, has come in the way of any understanding with the Congress. Sonia Gandhi is also upset over the way in which Vazhapadi K Ramamurthy, who launched a party (TRC) in the name of Rajiv Gandhi, has teamed up with the BJP and joined its Government. With the Congress doors not likely to open for these three parties, they prefer to be within the security provided by the BJP, especially when lucrative ministerships are at stake.

Consequently, the fluid political situation has thrown up the curious spectacle of these three parties trying to please the BJP on one hand, even if that means displeasure for the Poes Garden lady; and on the other hand, humouring Jayalalitha to keep the AIADMK-led combine going.

Jayalalitha, on her part, is a prominent BJP ally but is more busy these days trying to establish lines of communication with the AICC leaders and usher in an alternative Government. Her only ally in this venture is Subramanian Swamy.

The decisive moment when parties will have to stand up and be counted will come when the Congress makes its moves to form a Government at the Centre and the AIADMK supports the Congress. If and when that happens, the AIADMK could gain some at the Centre and lose some in Tamil Nadu.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. OSLO, Sept 1: Not only did they probably discover America, the Vikings may also have invented the precursor of the modern pizza more than 1,000 years ago, according to findings published by a Norwegian archaeologist.

Flat, round crusts with an array of tasty toppings and toasted on stone platters in large pizza-style ovens were being consumed by hungry Vikings as early as the 9th century AD, researcher Astri Riddervold said in Oslo's Vaart Land

newspaper yesterday.

Digs have unearthed the ovens and the stone platters, she said, adding that the toppings clearly ran the gamut of ``everything available at any given season'' of the year.

She said the evidence indicates that seafood pizzas were a particular favourite for some 400 years up until innovations in grinding procedures and yeast-production gave rise to bread baking in the 13th century, ushering in the demise of pizzas in Scandinavia until the 20th century.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. BANGALORE, Sept 1: Karnataka's Agriculture Minister C Byre Gowda on Tuesday blamed the ``stupidity'' of the BJP government at the Centre for the nation-wide shortfall in fertiliser imports and held Prime Minister A B Vajpayee, who also holds the Agriculture portfolio, directly responsible for this ``neglect of the agriculture sector''.

He was countering Karnataka BJP president B S Yediyurappa's charge, made on Monday, that the State Government was neglecting the interests of farmers by not taking measures to meet their fertiliser requirements.

Defending the shortfall in the State's requirement of the fertiliser, Muriate of Phosphate (MoP) -- for this kharif season -- he said the country's entire requirement was being met through imports which have always been the responsibility of the Union Government.

Gowda told media persons here, that it was for the first time that the country was witnessing this unprecedented shortfall of over 50 per cent in the supply of MoP, which is not indigenously produced. Of a total requirement of 21,40,000 metric tonnes (mt) of MoP, only 10,00,000 mt had been supplied throughout the country this year.

With the prime minister having retained charge of the Agriculture portfolio for himself, and Som Pal being only a Minister of State, this amounts to a ``sheer neglect of the agriculture sector in the country'' by the BJP government, he added.

In all the years since farmers started using fertilisers, the Central government had taken care of the fertiliser needs of the entire country. India Potash Limited, a wholly-owned Government of India undertaking was vested with powers to authorise imports in this regard.

However, this year the Centre had not imported the required quantity of potash and because of the ``BJP government's stupidity the whole country has to face this shortage now,'' he added.

Gowda himself had written both to Som Pal and Union Fertiliser Minister S S Barnala, in June this year, urging them to take measures to meet the State's need. Moreover, as far back as March, during the zonal meeting of agriculture ministers, Karnataka had indicated its requirement for the season. However, the response from both ministers had not been positive.

Subsequently Chief Minister J H Patel too had written to both Union ministers, with little success. Last month, both Gowda and Patel had also tried to meet them, but they were busy tackling the political problems in their respective states.

``We have made all-out efforts to make available the required quantity of MoP in the State. But it is the responsibility of the Government of India to meet it,'' he added.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, SEPT 1: The State government has awarded the contract for setting up a 12 MW hydro power station at Bhandaradara in Ahmednagar district to an NRI firm D L International.

Joshi today announced this decision after the State Cabinet approved the same in its routine weekly meeting at Mantralaya. DLI, owned by an NRI originally from Maharashtra, V Rajadhyaksha, will be involved in setting up the 36 MW plant to be completed in 15 months.

Talking to reporters after the weekly cabinet meeting, Joshi said the power station on completion would be given to the company on a 30-year lease. The power produce would be purchased by the Maharashtra State Electricity Board (MSEB) at an initial rate of Rs 2.13 and subsequently at Rs 2.38 per unit.

DLI would pay Rs 18 lakh per year to the Irrigation Department of the state government as royalty to use water for generating power.

The said project was a result of the Advantage Maharashtra exhibition held recently to attract NRIs to invest in key sectors of development in Maharashtra.

PATALGANGA PROJECT

: The State Cabinet, in another decision, conferred the rights on the MSEB to alter the agreement between the State government and Reliance Industries Limited on the Rs 463.13-cr Patalganga project.

The government and representatives of the company had signed an agreement recently according to which the MSEB was to buy about 410 MW power generated at the proposed plant. The agreement had provided that the levelised capacity charge would be Rs 1.55 per unit. But, when the Central Electricity Authority (CEA) imposed certain conditions before sanctioning the project to reduce project costs by Rs 32.82 crore and to increase the generation capacity to 447 MW from the projected 410 MW, it resulted in reducing the levelised capacity charge to Rs 1.41 per unit.

The Cabinet today accepted the request from RI on raising the rate and empowered the MSEB to amend the earlier agreement. The new levelised capacity charge will be Rs 1.48 per unit instead of the earlier of Rs 1.55 per unit.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MYSORE, SEPT 1: The Mysore chapter of People For Animals (PFA) has decided to campaign against the practice of making elephants carry the 750-kg golden howdah during the Dussehra celebrations.

``This amounts to cruelty on animals. Why should an elephant be forced to carry the huge weight for more than 4 km during Vijayadashami procession apart from having to practise carrying it weeks before the celebrations?'' Geetha Manja, PFA convenor asked.

Geetha said the matter had been discussed with the national PFA chairperson Maneka Gandhi on Sunday. ``We will not impose our will on the organisers or the people but try to convince them not to subject the elephants to such ardous tasks.''

The howdah is used to carry the idol of goddess Chamundeshwari during the festival. Suggestions to use a chariot to carry the howdah have been doing the rounds since an elephant, Arjuna, damaged it when he threw a tantrum four years ago. The death of another elephant, Drona, who had carried the howdah for 16 years, has bolstered the idea.

Meanwhile, speculation is rife that the scion of the Mysore royal family, Srikantadutta Narasimharaja Wadiyar, will not hand over the golden howdah to the State Government. Wadiyar had earlier gone on record saying he would hand it over as he did not want to be seen obstructing the celebrations. But with the President giving his assent to the take-over of the palace, Wadiyar is unlikely to stick to his words. The movables in the palace including the golden throne are listed as private collections of Wadiyar, with others are under joint management of the government and Wadiyar.

Culture Minister and Dussehra celebrations committee chairperson Leeladevi R Prasad is frantic to meet Wadiyar and have the matter sorted out as soon as possible at a ``time and place of his convenience''. But Wadiyar is out of town fighting legal battles to save his palaces.

Consequently, the minister left a letter with Dussehra special officer Bore Gowda to be handed over personally to Wadiyar when he returns.

In the letter, the minister has sought total co-operation of the scion to organise the `Nada Habba' (a people's festival) without any hiccups.

However, she told The Indian Express

that she would resort to legal measures if necessary to secure the golden howdah. She said she has sought to prevail upon Wadiyar that the Government was not out to `insult' anybody.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: The Congress today finalised the list of executive members and office-bearers of its Karnataka unit after a long delay of about two years. It also filled the vacancies of chiefs of 12 district units in the State.

The process of finalisation went on till this afternoon. The KPCC chief, Dharam Singh, had extensive consultations over the last few weeks with the party high command represented by Tariq Anwar, general secretary in charge of the State.

The 152-member list has 18 vice-presidents, 25 general secretaries, 28 secretaries, 31 executive members, 42 permanent invitees, and 16 special invitees.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MOSCOW, Sept 1: Amidst the standoff between Russian President Boris Yeltsin and the Communists-dominated lower house of Parliament, acting Prime Minister Viktor Chernomyrdin today proposed a list of ministers for approval even as chances of his own re-election appeared shaky.

The Communists have express their determination to reject again Chernomyrdin's candidature in the Duma.

According to the list put forth by Chernomyrdin to Yeltsin for approval, the ministers of Defence, Interior, Foreign Affairs and the all-powerful Federal Service looking after internal security, will retain their posts, news agency Itar-Tass said quoting government staff.

The development came even as the President and the Communist Party asserted their intention to stand by their positions.

While Yeltsin said he would insist on Chernomyrdin as his choice for prime ministership despite the resounding rejection of his nomination yesterday by the Duma, Communist Party leader Gennady Zyuganov said his faction would again reject the prime minister-designate's candidature in the second vote scheduled for next Monday.

``I insist that Chernomyrdin be confirmed as prime minister as soon as possible... He is my candidate and I will insist on it... I, of course, will fight so that, literally in the course of the week he will be confirmed as prime minister,'' said Yeltsin at a Moscow school to mark the start of Russia's new academic year.

Zyuganov, meanwhile, told reporters that ``our decision is firm -- we shall vote against the candidacy of Chernomyrdin.''

``He (Yeltsin) insisted on the appointment of Ilyushenko (former prosecutor general) and nominated his candidacy thrice, who later went straight to prison. He insisted on the nomination of (Sergei) Kiriyenko, who bankrupted the country. Now Yeltsin is again insisting on Chernomyrdin. This is molestation of the Duma, rape of Russia,'' Zyuganov said.

A motion to confirm Chernomyrdin's nomination was defeated by 253 votes against 94 yesterday but Yeltsin within hours renominated him for a second vote.

Three rejections of Yeltsin's nominee by the Duma would lead to the Duma's dissolution and an early parliamentary election, an option Russia can ill afford at a time of deep economic crisis.

Asked about the prospect of an early dissolution of the Duma, Zyuganov said, ``What is at stake is not the dissolution of the Duma but the dissolution of the country.''

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, September 1: The `Silent Assasin' is at it, once again. Enjoying an amazing season with his off-spinners, Muthiah Muralitharan added another feather to his cap by snaring 16 English batsmen in the Oval Test to script Sri Lanka's historic maiden Test win in the land of the Old Blighty. Not only were his figures the fifth best ever in Test cricket, he also became the second off spinner, after the legendary West Indian Lance Gibbs, to reach the coveted figure of 200 Test wickets.

His success has not only been a personal victory, but is also a tribute to the faith the Sri Lankan Cricket Board reposed in him. Under tremendous pressure, after being called for `throwing' by the Australian umpire Darell Hair on Lanka's tour Down Under in '95-96, most bowlers would have broken down. Not Murali, and what's more his teammates, and most importantly the Lankan cricket board rallied behind him.

``No bossing around,'' went the Lankan board's signals to the ICC. ``We respect his contribution to Lankan cricket and will play him even if Murali cannot bowl his off spinners. Sure, he will bowl leg spin in the next Test,'' said the board, even as the Australian Cricket Board was pressurising ICC to ban him.

Subsequently, cleared by the ICC, Murali, as indeed the entire Lankan side, were a changed lot. ``That incident changed the entire perception of cricket for us. It brought all the members together and hardened them. Actually, it went a long way in urging the players to show the world our potential. The World Cup win, by and large, was a result of that,'' once confessed Ranjit Fernando, a former Lankan player turned administrator, who himself was instrumental in counselling Murali during the turbulent period.

And now, the `cricketing powers' are at it once again. England coach David Llyod's ``suspicions about Murali's bowling action'' in English press on the eve of the final day of the Test match were no more than a gimmick, meant to unsettle Murali before the crucial last day's play. But, Murali was unruffled and as the result showed, Lloyd would have been better advised to counsel his own batsmen on the art of playing spin bowling rather than finding faults elsewhere. But the English are always known for nursing a grudge or tow, be it the Calcutta smog or the Madras prawns.

Lloyd's comments may have actually fired Murali up to expose the brittle English batting. They paid dearly for the line of indecision in their minds. Caught between whether to play forward or go back, they could not fathom Murali's skills. Had Alec Stewart not been run out, who knows Murali may have emulated another off-spinner, Jim Laker's feat of taking all the ten wickets in a Test innings.

Navjot Sidhu, arguably one of the best batsman of off spin bowling in the world, feels that Murali is simply unplayable for batsmen playing from the crease. ``You have to use your feet while playing him. He is very accurate and with the amount of turn that he gets, you have to get on top of him otherwise you are doomed. In between, padding is the best defence to him.''

One can trust Sidhu as he has been fairly successful against Murali. The clobbering that Murali received from in the Lucknow Test in '93-94 (Sidhu hit six sixes off Murali) or the last season's S A S Nagar Test confirm Sidhu's theory. ``Still you cannot belittle him. He is a champion bowler with a great heart,'' Sidhu adds.

In fact, the new and exciting Indian off-spinner Harbhajan Singh sees Murali as a role model for himself and feels that he would be very happy to get a few tips from him

Smoke without fire is difficult and Murali's action sometimes does hinge on the verge of suspicion (almost every off-spinner is like that). Luckily, he has the support of his board quite unlike our own Rajesh Chauhan, who himself may have lost count of the number of times he was put under suspicion and then cleared by the ICC. A pity that our board could not stand up for an international player's cause.

Murali, the only Tamil in the Lankan squad, has always been overshadowed by the likes of Shane Warne, Anil Kumble and Saqlain Mushtaq in international cricket. Not any more as he has carved out a place for his art. For this he has to thank his own board more than anybody else.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: The Tatas today withdrew ``for now'' their Rs 1475-crore proposal for a domestic airline charging four successive Union governments with failing to implement ``their own policies'', thus holding back clearance for the project for over three years.

``Despite being in compliance with Civil Aviation guidelines, the Tata proposal remained on paper due to the inability of four successive governments to implement their own policies,'' Sujit Gupta, resident director of Tata Industries Limited, told mediapersons here.

``Instead the ministry now plans to take more time to consider issues raised by third parties that have no relevance to either the policy in place or to the Tata proposal,'' a company statement said.

The decision to withdraw the proposal, which envisaged 40 per cent foreign equity, was communicated today to the Civil Aviation ministry and the Foreign Investment Promotion Board (FIPB).

``The airline project stands withdrawn as of now, the same way as the Bangalore airport project,'' Gupta said.

Asked whether Tatas would reconsider the proposal, originally mooted in February 1995, Gupta said ``the project stands grounded as of now.''

The Tata proposal was deferred four times by FIPB, the last being on Saturday, as the Civil Aviation ministry had still not indicated whether the project was in conformity with the new Civil Aviation guidelines.

The FIPB had cleared an earlier proposal of the Tatas to fly a domestic carrier along with Singapore Airlines in December 1996. However, this was shot down by the Cabinet following changes in Civil Aviation guidelines, which barred foreign airlines from investing in domestic airlines.

The BJP government, after coming to power, had issued fresh guidelines making it clear that foreign institutional investors (FIIs) and other entities should not have foreign airlines as their shareholders.

FIPB had deferred the proposal for six weeks following a request from the Civil Aviation ministry, which wanted to set up an expert committee to look into the issues raised by members of Parliament and trade unions.

Several MPs including three former Civil Aviation ministers -- Ghulam Nabi Azad, C M Ibrahim and Jayanti Natarajan -- had expressed their opposition to the project claiming it would allow ``back door entry'' of Singapore International Airlines into the country.

However, in Bangalore today, Civil Aviation Minister Ananth Kumar asserted that the government still had an ``open mind'' on the Tata domestic airline project.

He denied the Tatas' charge of inordinate delay by the ministry.

``We should not be computing the two. Earlier you came as Tata-Sinagpore Airlines and now as the Tata Airlines Private Ltd. It is not fair to compute both and term it as inordinate delay,'' he said.

``Foreign participation in domestic aviation is itself a very sensitive issue and has been rigorously monitored and modulated the world over,'' the minister added.

He said the government had decided to form an expert committee to examine the issue in depth and ``even now there is scope for entrepreneurs to pursue (their projects) according to the guidelines and the committee's report''.

``I have an open mind and the Vajpayee government's policies are pro-active in promoting international participation and investment,'' he said.

Ananth Kumar said the expert group would go into four issues, including one relating to the capacity, pointing out that with global recession, the domestic passenger traffic had gone down to minus 3.7 per cent in the last two years.

As for criticism that the ministry had not taken a decision despite having over eight months' time, Ananth Kumar pointed out that of the eight months, the BJP-led government had been in office only for the last four months.

The government's policy, he said, was very clear -- that it would not allow any foreign airline to pick up equity in domestic aviation directly or indirectly.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sep 1: Industry Ministry Sikander Bakht said today that an effective system of protection of intellectual property is necessary for the country's development. Hinting at the political objection to product patents, he said, ``There is some hesitation in political quarters about patent laws changes. But I am convinced that better laws will help Indian industry and scientists.''

He also announced that the Government was trying to have the National Patent Office declared as an International Search Authority and as International Preliminary Examination Authority under the terms of the Patent Cooperation Treaty.

Speaking on the occasion of the first AGM of the Institute of Intellectual Property Development (IIPD), here today, he said that India had to globalise to survive. ``We have to enter the global game and win it to protect the interest of India,'' he said.

The declaration of the National Patent office as examination and search centre will give great boost to the domestic scientific and inventor community. They will be able to access patent information at their doorstep without incurring high costs. ``It is absolutely necessary to ensure that accurate and authentic information is disseminated widely to the people,'' the minister said.

Bakht said that the Government decision to accede to the Paris Convention would help Indian inventors and encourage them to market their inventions across the world.

Dr Anji Reddy, head of IIPD said that he was keen to see tough patent protection laws so that the Indian companies which were innovating would be protected. ``I spent Rs 60 crore on developing new drug molecules. I do not want someone else to copy them and make profit without investing anything.'' He said that India needed process patent in the 1970s so that the local drug industry could prosper. ``But we can't keep asking for protection forever. We have to start coming up with fresh research on our own,'' he said.

The Director General of CSIR, Dr RA Mashelkar said that information was the key to success in the global environment. Unless India learnt to protect and nurture knowledge creation, it would suffer, he said, adding ``Future wars will not be fought with bombs but with knowledge. India has grey gold in its grey cells which can help it be on top. For this we must protect intellectual property creation.''

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, September1: Talks between chemists and the civic authorities remained deadlocked today as pharmacies all over Mumbai shut shop on the first day of their indefinite strike to protest against the two per cent octroi duty on medical formulations.

Mayor Nandu Satam told the Joint Coordination Committee of Chemists that the levy would not be withdrawn, adding that the duty should have in fact been imposed 10 years ago. He asked them why the Brihanmumbai Municipal Corporation (BMC) should exempt medicines from octroi when the levy is charged on other products.

Over-the-counter sale of drugs was completely stopped with the 6,800 drugstores in Mumbai, affiliated to various chemists' and distributors' associations, remaining shut. The agitation has also received ``unconditional support'' from their counterparts in Thane and Navi Mumbai, who will down shutters on September 4 if the June 22 decision to levy octroi on medicines is not revoked. Life-saving drugs, though, were made available by the five control rooms opened by the coordination committee.

``It has been an extremely hectic day. Our staff manning the control rooms attended to over 4,000 calls from people requiring medicines. However, they were supplied only to persons who could produce a medical prescription. We also did not entertain people who wanted over-the-counter household drugs,'' Kishore Shah, president of the Retail and Dispensing Chemists' Association, told Express Newsline.

``There were two cases in South Mumbai which urgently required anti-cancer drugs costing about Rs 25,000 per ampoule. Our control room at Prarthna Samaj procured the drugs and delivered them at the callers' doorsteps,'' Shah says.

The strike will not immediately affect civic and state-run hospitals in Mumbai as they have been supplied with additional stocks. Dr L B Khotkar, superintendent of J J Hospital, says government hospitals ``do no merely depend on supply from chemists'' and will not run out of stocks for 10 days at least.

However, they refused to sell medicines to outdoor patients. ``We have to be prepared for contingencies in the wake of a calamity or a disaster when we might have to use large stocks of medicines without notice. Selling medicines to outdoor patients under these circumstances is virtually impossible,'' says a doctor from KEM Hospital at Parel.

Bombay Hospital in South Mumbai had some difficulty controlling the crowd which clamoured for supplies. The authorities divided the people into two queues - ones requiring medicines for the hospital's indoor patients and the other comprising outsiders.

However, tempers ran high as indoor patients were given preferential treatment. ``All seven chemists around the hospital are not open and I have been waiting for two hours to get Amoxicillin capsules for my daughter,'' said Upendra Tripathi, a resident of Colaba. ``Is my daughter's life less important than those who are admitted to this hospital,'' he asked.

The hospital though says it is not duty-bound to cater to the general public. ``With around seven large chemists around the hospital, we generally never get requests for medicines from outside. Since they are shut today, we obliged those who produced prescriptions,'' the hospital's pharmacy manager Lalit P Kaushal, told Express Newsline.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. CHANDIGARH, Sept 1: About 25 per cent of the sorties by Pakistan military aircraft along the Indo-Pakistan International Border (IB) have violated international airspace norms.

Army and IAF agencies monitoring movement of Pakistan aircraft reveal that till date this year, there have been about 60 reported incidents of breach of the `Air Agreement' signed by the Indian and Pakistani government a couple of years ago.

As per the terms of the agreement, no military aircraft or unscheduled civilian flights are to approach the restricted airspace over the IB. This airspace, akin to no-man's land on the ground, extends atleast 1,000 metres on either side of the demarcated IB and is out of bounds for all aircraft except trans-border flights.

Military sources say that this year, about 264 Pakistani aircraft, both combat as well as non-combat types, were observed in close vicinity of the IB.

The number of violations show that on an average, there are eight reported intrusions into the prohibited air-zone. These flights are observed and reported by BSF personnel manning pickets along the IB or by Army troops where their deployment is imperative. The Amritsar Sector, having the highest reported number of sorties and breaches, was particularly ``hot'' when a lot of work was being done on bunds near Ranian during flood control measures. Bunds also form important defences.

The Dera Baba Nanak Sector along the Ravi, with its network of ditch-cum-bund defence system has also remained active.

As per procedure, details about the number and type of aircraft sighted, their flight configuration and time of flight are passed on to the nearest Army division headquarters, which in turn directly intimates Army Headquartes along with the Command Headquarters.

The Army Headquarters intimates the Ministry of Defence and a ``protest'' is lodged through the embassy of the concerned country by the Ministry of External Affairs. Though no `scramble' of interceptors by the IAF in such cases had been reported, sources say that any decision by ground forces to shoot down hostile aircraft would have to be taken on the spur of the moment, after determining the threat it poses. There have been instances of hostile aircraft coming right over the IB.

The issue of airspace violation has also repeatedly been raised and discussed during operational conferences and tactical briefings at the highest level and concerned has also been voiced at their frequency.

The only known instance of a infiltrating Pakistan aircraft being shot down was in 1996, when a Remotely Piloted Vehicle was downed in Kutch. Military sources say that though the breach may be inadvertent at times, there is a possibility of such aircraft involved in mapping out local defences.

``Their purpose could be a visual, first hand appraisal of our defences by commanders, judging the strength and layout of border out-posts as well as getting the lay of the land,'' an intelligence officer commented. Carrying photographic and survey equipment by these aircraft, particularly choppers and transport aircraft, is not ruled out.

Helicopters of the Pakistan Army Aviation Wing, headquartered at Dhanval near Rawalpindi with detatchements attached with all major airbases for liason and search and rescue roles are also known to fly in close viciinity of the IB.

Another reason for flying in close proximity to Indian positions is for new pilots getting themselves familiar with the topography of the area. Possible errors in navigation during training exercises are also cited as a reason.

Sources say that some concessions in airspace restrictions have been allowed by both sides in the Northern Sector on account of the mountainous terrain. ``But they are trying to take advantage of these concessions in other sectors too,'' an officer commented.

Pakistan does not possess any strategic reconnaissance capability, for which it depends on inputs from China and the US. Though the No 5 Squadron equipped with 13 Mirage-IIIRD carries out tactical reconnaissance sorties from its base at Sargodha, experts say that for border observations it flies atleast two-three kilometers behind the IB, using its `sideways' looking camera for photography.

Though there have been no known instances of the Mirage infiltrating Indian airspace, there were unconfirmed reports sometime back of the more advanced F-16s carrying reconnaissance pods and electronic radar jamming equipment entering Indian airspace.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: Union Urban Affairs and Employment Minister Ram Jethmalani said that he is prepared to face any inquiry or raid following charges levelled by Janata Party national president Subramanium Swamy recently.

In a letter to director of Central Bureau of Investigation (CBI) T Mishra, Jethmalani has stated that he will cooperate with the CBI authorities to exercise their powers including search, seizure, and arrest at any time against him and waive from using any legal obstacles to protect the inquiry. He said he suspected that some disgruntled officers of his department were passing official papers to Swamy. This aspect of the matter should be investigated by the CBI, he said. Jethmalani has requested the CBI chief to invite Swamy to file an FIR against him (Jethmalani) and alleged that if this turns out to be one of Swamy's fabricated falsehoods, he should be prosecuted.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sep 1: The primary capital market continues to be in doldrums with the month of August, like July, witnessing only one public issue. This issue too like the July one was a debt issue from ICICI.

The current fiscal, in the first five months, has seen only 12 public issues raising a meagre Rs 1,402 crore, compared to 62 issues aggregating Rs 3,061 crore in full 1997-98 and 753 issues for Rs 11,648 crore in full 1996-97, according to a study done by Prithvi Haldea of Prime Database.

A significant, but worrying, feature, according to Prime, is the near-total absence of equity. Public issues of equity at Rs 182 crore have accounted for only 13 per cent of the five-month period's total mobilisation. These have successively been going down from a high 100 per cent (Rs 13,312 crore) in 1994-95.

The most adversely affected are the corporates. Only Rs 83 crore representing 6 per cent of the total funds raised in the five-month period of the current fiscal have been from the manufacturing sector, down from a high 83 per cent in 1994-95.

On the other hand, financial institutions and banks, as per Prime, have continued to dominate the market. Their offerings at Rs 1318 crore constitute 94 per cent of the five month period's total amount, up from a meagre 4 per cent in 1994-95. The government continues to monopolise the primary market, with a 93 per cent share in five month period's total mobilisation, up from 9 per cent in 1994-95.

According to Prime, it is now for the 14th month in succession that the primary market has witnessed an extremely low level of activity in public issues. Since July 1997, there have been only 38 public issues. While August 1998 had 1 public issue, the earlier monthly figures have also been equally dismal: July (1), June (5), May (3), April (2), March (2), February (0), January (4), December 1997 (6), November (4), October (4), September (1), August (3) and July (2).

Initial public offerings (IPOs), in specific, have been badly hit. IPOs, which are essentially first public issues from unlisted companies, had already fallen from a high of 1,350 in 1995-96 to only 51 in 1997-98. These are now down to only 7 in the first five months of fiscal 1998-99 mobilising a meagre sum of Rs 124 crore.

Given the state of the market and economy, Haldea projects that the balance period of 1998-99 may also be dismal. One of the points is the number of public issue documents filed with SEBI for clearance. From an average of 87 documents per month in the January-December 1996 period, the figure fell to only 7 per month in the January-December 1997 period and is now down to only 3 per month in the January-August 1998 period.

It said rescue act, if any, may come only from some bank issues and from materialisation of the disinvestment programme. ``What we may continue to see is some amount of debt mobilisation,'' it said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. CHENNAI, Sept 1: There is much at stake for Indian hockey at the next week's Commonwealth Games in Kuala Lumpur, Malaysia, admitted Indian Hockey Federation president KPS Gill at an impromptu press conference, here on Tuesday.

In the wake of the debacle at the World Cup in Utrecht, earlier this year, Gill felt that the results in Malaysia will count vis-a-vis revival of Indian hockey. ``We will be attaching a lot of importance to our performance in the Commonwealth Games, and if we play to our potential, then we will win the tournament,'' he said.

While expressing satisfaction at the fitness level of the players, Gill said he concurred with coach M K Kaushik's views that longer camps were needed to improve further. ``After we return from Malaysia, we will be giving a short break to the players who will reassemble in Bangalore for a long camp in our preparation for the Asian Games,'' the IHF chief said.

No tours:

Having learnt the futility of ill-advised foreign tours prior to a major tournament, Gill asserted that the Indian team for the Asiad will stay at home and probably play a few Test matches against visiting sides before the Bangkok Games in December.

However, the `developmental team' which suffered crushing defeats at Hamburg last month, might be engaged in a couple of tours, he said, but did not elaborate.

Indo-Pak series:

Gill confirmed that in 1999, India and Pakistan will be playing another series, like the one earlier this year. ``Since we have no major tournaments in 1999, a series against Pakistan will be of help,'' he said.

Payments to players:

Apparently, Gill believes in the adage, ``deserve and then desire''. He opined that money alone will not produce results. ``When you excel, the money will come, and not the other way round,'' he said.

Referring to the controversy over payment to players, earlier this year, Gill charged that it was a ``problem engineered by some ex-players''. He said it was absolutely ``disgraceful and reprehensible'' on part of the former players who, by their action, had done a great ``disservice'' to the game.

In a hard-hitting statement, with obvious reference to former India captain Pargat Singh, Gill said: ``He wrote in his little magazine that my re-election had done harm to Indian hockey. But the same person wrote to me later that I was the right choice.''

Team physio:

Gill underlined the importance of a physiotherapist, more than a doctor, accompanying the Indian team. ``I had suggested to the Sports Authority of India that they must send a physio abroad for training and then attach him to the Indian team. I hope they accept my suggestion,'' he said.

No ill-effects:

On the thorny issue of former coach Vasudevan Baskaran's adverse remarks against certain players, Gill stated that the players had got over it. ``I was surprised that the report was made public. There is no way I can guarantee confidentiality because by the time I receive it, the newspapers have already published it.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. COLOMBO, Sept 1: Sri Lanka's cricket chief today criticised renewed attack on the bowling of one of the finest off-spinners, Muttiah Muralitharan, who demolished England's batting in the just concluded Test.

``There is no issue as far as we are concerned, but surely the insinuation is disgusting,'' said Dammika Ranatunga, chief executive of the Board of Control for Cricket in Sri Lanka.

English coach David Lloyd's comments on Sunday in London about the unorthodox action of Muralitharan may open old wounds. It could start a new controversy before Sri Lanka goes to Australia in January for a triangular tournament.

Muralitharan suffers from a birth deformity in his right arm that cannot be set right, Ranatunga said. To overcome the problem he uses an unusual double jointed wrist action.

Muralitharan was first called for throwing by Ross Emerson, one of two Australian umpires, during a tour of Australia in 1995. He underwent bio-mechanical tests in Hong Kong and Australia.

Three Australian cricket specialists, Daryl Foster, David Lloyd and Angus Burnett of the University of Western Australia viewed high speed films that shot 24 deliveries from six angles at 200 frames a second.

It is clear that this apparent straightening of the bowling arm was a visual illusion,'' the team said in a report. The International Cricket Council then cleared Muralitharan.

The 26-year-old bowler, who belongs to Sri Lanka's Tamil minority, returned the fifth best bowling figures in Test cricket, taking 16 wickets in 113.5 overs in the one-off Test that ended yesterday, which Sri Lanka won by ten wickets.

Coach Lloyd was quoted as saying he would make his views known to cricket authorities. ``The way he bowls and with the action he has got, he will always be a handful.''

Thilanga Sumathipala, president of the Board of Control for Cricket in Sri Lanka, said: ``we are disappointed Lloyd expressed his views through the public instead of going through the proper channels.''

Ranatunga said such allegations have a negative impact on the players.

Our records are straight and we have tonnes of evidence to show that Murali is a perfect bowler and he will continue to bowl,'' he said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. September 1: For the first time this financial year, Indian exports started looking up registering a 7.71 per cent growth in dollar terms in July.

The latest trade data released today showed Indian exports during July was increased to $ 2.99 billion against $ 2.78 billion in July 1997.

However, exports during the first four months of the financial year registered a negative three per cent growth as shipments from the country from April to July slid to $ 10.62 billion against $ 11.03 billion during the corresponding period last year.

In rupee terms, exports were up by 10.82 per cent during the period and for July the growth was 28.12 per cent. Trade deficit during the period widened further to $ 3.30 billion against $ 1.83 billion during the same period last year.

The rise in trade balance was in tune with the fall in rupee value against the dollar during May and June this year as imports costs were up against lowered export value.

Imports during July registered a significant rise of 18.70 per cent to $ 3.80 billion against $ 3.20 billion in July 1997 in view of the rupee fall.

During April-July, imports increased by 8.26 per cent at $ 14 billion against $ 13 billion during the same period last year. Oil imports during the period was valued at $ 1.8 billion, down 31.27 per cent against 2.65 billion dollars during April-July last year.

Non-oil imports during April-July were estimated at 12.1 billion dollars, up by 18.54 per cent against $ 10.2 billion during the same period last year. While exports during April-June had registered a 7.94 per cent fall and imports were up by 3.75 per cent during the period, compared to last year. Trade balance at the end of the first quarter was $ 2.4 billion.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MOSCOW, Sept 1: US President Bill Clinton today urged his Russian counterpart Boris Yeltsin to stop military cooperation with India and warned that nuclear rivalry in South Asia could lead to a ``direct war'' between the two nuclear super powers.

According to local radio ``Echo Moskvy'', Clinton's plea came during his 30-minute meeting with Yeltsin. Expressing American concern over arms race between India and Pakistan in the backdrop of nuclear rivalry in South Asia, close to the Russian borders, Clinton warned that it could lead to a ``direct war'' between the two nuclear super powers.

India remains the biggest customer of Russian arms in the world and Indian orders to the tune of two billion (US) dollars annually have a vital importance for the cash-strapped Russian economy.

According to the Russian Defence sources, Washington is greatly alarmed at the Delhi-Moscow negotiations for the development of an advanced Air-Defence system capable of protecting India from the ``punitive'' missile strikes similar to the recent US attacks on Afghanistan and Sudan.

In the grip of political storm each in his own country, Russian President Boris Yeltsin and US President Bill Clinton today bear-hugged in the former's study to inaugurate, what promises to be, a summit of uncertain terms.

The first agreement to trickle out was a joint pledge to eliminate some stockpiles of plutonium taken from dismantled missile warheads.

With Russia reeling from a political and economic crisis, Yeltsin formally welcomed Clinton outside the Kremlin after wreath-laying at Moscow's tomb of the unknown soldier.

Republican senator Pete Domenici who flew here with Clinton, told a media person today that the two Presidents would sign tomorrow an agreement to get rid of about 50 metric tons of plutonium on each side and break down the weapons material so it cannot be used for military purposes.

A draft of the leaders' joint statement said the plutonium would be withdrawn in stages, with financing arrangements to be set by year's end.

The draft said: Measures to manage and reduce such stockpiles are an essential element of irreversible arms reduction efforts and necessary to ensure that these materials do not become a proliferation risk.

Earlier, Viktor Chernomyrdin, acting prime minister, met Clinton and his wife, Hillary, at the Moscow airport.

Hoping to get a boost from summiteering, and doing his bit as an ambassador of West's free market, Clinton pledged continued US support for Russia as long as its leaders ``stay on the path of reform'' and do not revert to the Communist ways of the past.

With a message of support but no financial help, the US President urged Russians to reject the ``failed policies of the past'' in coping with their current economic crisis.

``Given the facts before you, I have to tell you that I do not believe there are any painless solutions,'' Clinton told a new generation of Russian leaders at Moscow state university of international relations.

He repeatedly said that Russia must play by the rules of international commerce.

With Russia's economic turmoil throwing the summit agenda into uncertainty, Clinton addressed the crisis with frankness, but offered no specific ideas on how the infant democracy could weather the tailspin of its currency.

Earlier, at the start of their meeting, Yeltsin presented Clinton with a loaf of salted bread, a traditional East European symbol of welcome. Clinton pushed at the bread with the heel of his hand, and it sprang back up. ``Amazing, kind of like you,'' Clinton told his embattled host.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: The Delhi High Court today pulled up the City Government for not placing on record the affidavit on unauthorised colonies despite the August 17 commitment to the effect by Chief Minister Sahib Singh Verma.

A division bench, comprising Justices Y K Sabharwal and K S Gupta said, ``It is most unfortunate that on the one hand, considering the importance of the case, the Chief Minister thought it fit to appear in person (on August 17) and on the other, the affidavit in terms of the order passed by the court is still not filed.''

The CM had, on his voluntary appearance in court on August 17, submitted that a decision on regularisataion or demolition of 1,071 ``unauthorised'' colonies in the Capital would be taken within 45 days and an affidavit on the Government stand filed within 10 days.

The court had allowed Verma's plea for construction of roads and drainage systems in these colonies, stating that the provision would not come in the way of the Government taking a decision.

``It seems the Government is not interested in filing the affidavit and wishes to rely upon the affidavit to be filed by the Centre,'' the bench observed, while expressing anguish over the Government taking the court direction lightly.

The court gave two more weeks to the Government to file its affidavit and posted the matter for hearing on September 17.

The court reminded the Government to enforce strictly its decision of December last, banning further construction in the city till it (the Government) took a decision on the issue of regularisation of the ``unuathorised'' colonies.

The bench further directed the Government that water and electricity connections in unauthorised colonies would be provided after they were given on ``priority'' to the colonies built by the Delhi Development Authority (DDA).

This direction came after DDA counsel Surinder Sethi submitted that thousands of DDA flats were not being allotted to applicants due to the lack of water and power connections.

The court also directed the Government to submit a report on the boundries of each ``unauthorised'' colony to ensure that no further construction took place.

Sethi told the court that 392 of the 1,071 unauthorised colonies in the Capital were raised on DDA land and the rest were either on the land owned by the State Government or the local civic bodies.

The CM, on his personal appearance, had told the court that the Government has, in principle, decided to fix December 31, 1997 as the cut-off-date for regularisation of the colonies.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. September 1: With six Indian pairs competing in Societe Genarale World Open bridge pairs championships, three pairs are in with a good chance to make it to the finals.

The scratch partnership of Vinod Sharma and Alok Sadhu had a 59.9 per cent score. They added a 50.8 per cent score in the second session to end day one of the semifinals in position 28 with a healthy aggregate of 53.36 per cent.

JM Shah and Rajiv Khandelwal of Mumbai, and Prabhakar and Krishnan of Chennai are other two who show some promise of making the cut as well.

Shah and Khandelwal had poor 47.64 per cent (rank 115) in session one but recovered to position 92 with a 54.94 per cent in session two to aggregate 51.14 per cent.

Prabhakar and Krishnan made a good start with 53.36 per cent (rank 40) but dropped to rank 106, scoring a poor 45.95 per cent in session two. Their session average of 50.66 per cent.

Three other Indian pairs languish in the bottom half of the draw and will need huge scores in both sessions to make the cut. At the bottom of the Indian rankings are Tewari/Gupta of Delhi who had led the six Indian pairs into the semi-finals. Scoring 43.37 per cent and 45.97 per cent in two sessions, the Delhi pair find themselves in rank 207 at the end of day.

Ajay Khare and Vinay Desai of Mumbai improved from rank 190 45.3 per cent in session 1 to rank 165 in session 11 (50.04 per cent), but this rate of improvement will not be adequate to see them into the finals. Their cumulative scores are 47.66 per cent. Agarwal/Bandi from Indore are ranked 159 at the end of day 1, with 47.64 per cent in session 1 and 48.48 per cent in session 11 (48.07 per cent cumulative). Michael Rosenberg/Steve Weinstein from USA lead the field with 61.95 per cent. Followed by Poland's Pityr Gawrys/Marcin Lesniewski (59.62 per cent).

In the Louis Vuitton women's pairs where 119 pairs competed, the Indian challenge ended in the 1st elimination where the four Indian ladies' combinations finished in the bottom half of the draw.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. PATNA, SEPT 1: Cooking oil including mustard oil and other grocery items worth over Rs 25 crore have been seized as raids on business establishments continue unabated after the Bihar Government enforced ban on sale of mustard oil following detection of dropsy cases.

Official sources said today that district officials assisted by food inspectors and police had during the last five days conducted raids on over 750 places across the State to seize the ``adulterated'' cooking mediums.

The sources said the samples of the seized edible oils were being collected to send them to different laboratories for test.

The district magistrate were supervising the operations in their respective districts.

The Chief Minister had on Friday ordered ban on sale of both packed and unpacked mustard oil till ``laboratory examination'' of samples of the oil being sold in open market was done.

In the State capital, district magistrate Rajbala Verma led the team to conduct raids on departmental stores and premises of stock-holders to collect samples of edible oils for laboratory examinations.

The district administration had so far seized cooking oils and other grocery items worth over Rs 8 crore by conducting searches on around 45 business premises, they said.

In Marufganj business locality, a raiding team stumbled upon packets of poisonous chemicals. According to experts, ``if the chemicals are mixed with ordinary oil, it will look and smell like mustard oil''.

``The mix of the chemicals in small quantity cannot cause any harm but an inadvertent excess use of the chemicals may prove to be fatal,'' experts opine.

A Begusarai report quoting official sources said over ten oil tankers filled with over 50 lakh litre mustard oil value of which being estimated to be around one crore were impounded during the last two days and samples of the oil sent to laboratories.

Over 285 tins of edible oils were seized from business premises and factories at Hajipur township in Vaishali district since yesterday, the district magistrate R N Prasad said.

Reports of seizure of several tankers fully loaded with edible oils continue to pour in from different districts in the state.

According to State health department sources a few more fresh dropsy cases were identified at Madhepura and Bhagalpur as an intensive campaign continued to detect such cases and take preventive measure to check further spreads of the disease.

Over 200 people including traders and labourers have so far been arrested during the raids at different places in the state.

The State Government had also banned supplies of mustard oil from outside Bihar till samples of existing stocks of the cooking oils were tested in laboratories.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: India had witnessed more than 30 epidemics of dropsy over past hundred years due to the wild weed argemone mexicana (mexican poppy) and its non-edible oil getting mixed with mustard oil naturally or because of deliberate adulteration, according to Prof Gunavant Oza, emeritus fellow of the University Grant Commission.

Oza, a botanist from the Maharaja Sayajirao University of Baroda, who had worked extensively on the plant for decades, said the only method of preventing further dropsy epidemics was to eradicate argemone mexicana from the country which, of course, was a herculian task.

The introduced mexican weed, naturalised throughout India and reaching the hilly regions upto 5000 feet, can tolerate almost any set of climatic conditions and bear flower and fruit most of the year.

The plant produces numerous seeds, roughly about 20,000-30,000, and since it resembles black mustard seeds (brassica nigra) there were enough chances of it getting mixed with mustard seeds, Oza said.

He said though `hakims' and `vaidyas' use argemone for its medicinal properties, it was high time for its eradication from the country.

Oza, in one of scientific papers, had said ``We can destroy the seedlings by pulling them out of the soil during the rainy season and repeat the operations several times during monsoon and not allow the plant to grow and shed the seeds''.

He pointed out that since argemone seeds were collected by certain local people in large quantities and sold in the market, there was a possibility of taking their help for identifying the plant and seedlings for its complete eradication.

Since the plant finds shelter in the cultivated fields quite often, chances of the seeds getting mixed with other grains were more, he said.

Oza said the mysterious disease of the swelling of legs in Mumbai in late 1960s, a disease of similar nature in late 1950s in Nadiad (Gujarat), West Bengal and Bihar and the epidemic of dropsy had all resulted due to consumption of edible oil contaminated with argemone oil.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. DURBAN, Sept 1: Despite round-the-clock lobbying by Pakistani delegates, nations of the Non-Aligned Movement (NAM) meeting today refused to tow its line on having one comprehensive resolution on the US missile attack on Sudan and Afghanistan with majority of countries feeling that the Taliban regime was sponsoring terrorism the world over.

Pakistan received this major diplomatic set-back when the issue came up for discussions at the ministerial and official level meetings of the NAM. An overwhelming majority of member countries felt that Washington's attack on militant camps in Afghanistan cannot be equated with its strikes on Sudan.

While the NAM is yet to formulate its response on attacks on militant camps on Saudi billionaire Osama bin Laden, it was already agreed to condemn the US action on a pharmaceutical company in Khartoum.

Pakistani representatives were working hard for the last few days to convince and persuade NAM members to accept its proposal for a common resolution on Afghanistan and Sudan but there were not many takers for their theory. Pakistan was left with no option but to give up its efforts.

Interestingly senior officials of US government who arrived here to seek observer status for their country were overtly and covertly lobbying for toning down of the NAM resolution on its attacks.

The NAM in its resolution on the US attack on Sudan felt that the action was a ``serious violation of principles of international law and UN charter and contrary to the principles of peaceful settlement of disputes.''

The resolution stated that ``such acts are a serious threat to the sovereignty and territorial integrity of Sudan and to regional stability and international peace and security.

``The NAM condemns this act of aggression and continuing threats made by US against Sudan.'' it urged Washington to refrain from such unilateral acts.

NAM sources said that India had played a vital role in delinking of the grouping's approach on attacks on Sudan and Afghanistan. The Indian government also believed that the Taliban was providing training in arms to mercenaries who operate in Jammu & Kashmir.

The Arab countries, which form a dominating group in the NAM, were eager to have a strongly worded resolution on Sudan but most of them were not keen to have an identical resolution on strikes in Afghanistan.

India also received a boost when its consistent efforts to mobilise international support for eradication of terrorism bore fruit.

The NAM accepted the Egyptian proposal which called for an international summit conference under the auspices of the United Nations to formulate a joint organised response of the international community to terrorism in all its forms and manifestations. The Egyptian proposal is similar to India's position on combating the menace of terrorism. India has proposed an international action plan to fight and tackle terrorism.

A further boost to Indian diplomatic efforts came when the NAM expressed its serious concern on the role of mercenaries in acts of terrorism. The concern vindicates India's position that it is facing terrorism being exported and executed by mercenaries from across its border in Jammu & Kashmir.

While making its standpoint, the Indian representative said the country was a serious victim of cross-border terrorism and hence was keen that there should be a major initiative to fight terrorism which posed a serious challenge to the sovereignty of a number of countries.

The resolution said that the UN organs should take appropriate decisions, consistent with its charter, to fight and eradicate terrorism. It emphasised that international cooperation to combat this menace should be conducted in conformity with the principles of UN charter. It suggested strengthening of international legal regimes for combatting terrorism.

Prime Minister Atal Behari Vajpayee, who arrived here last night, is expected to make a strong plea for coordinated action against terrorism.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. BANGALORE, Sept 1: Former prime minister H D Deve Gowda today ``unconditionally apologised'' to State unit Janata Dal president B L Shankar over his son's alleged misconduct with him.

Gowda's son, H D Kumaraswamy, a former MP, had allegedly threatened and abused Shankar last week over phone on party affairs.

His apology comes in the wake of reports which said Kumaraswamy had used foul language against Shankar over reported attempts to wean away Gowda's supporters to the Patel group and that the former prime minister was interfering in the appointment of chairmen to boards and corporations.

Gowda told reporters it was true that his son spoke in `an angry tone' but he had denied having abused Shankar.

Asserting that he was not locked in a `cold war' with Chief Minister J H Patel, Gowda said he had not interfered in the appointments made on Saturday last for the posts of chairmen to various State-owned boards and corporations. ``If Patel can cite even one such instance, I will retire from public life''.

He also, however, implicitly made known his displeasure over Shankar saying his son ``had verbally attacked him (Gowda) in strong terms for not recommending his name for a minister's post when I K Gujral was prime minister''.

Gowda claimed that he had become the target for assault after he demitted the prime minister's post. But the party in the State had not countered attacks against him, he said, however, adding that he did not feel neglected by the party.

He said he had himself written to Patel, stating that he would not interfere in appointments to boards and corporations and had assured him of cooperation.

In this context also, Gowda indirectly expressed displeasure over Shankar, who, he said, had not clarified that he was not meddling in the issue.

Gowda also said he was hurt that ``some of our own friends in the party (Janata Dal) are feeding wrong and exaggerated information to the press.''

He appealed to partymen who were unhappy over being left out in appointment as chairmen to boards and corporations to forget their dissatisfaction and work for the party.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sep 1: In a significant move today, the new telecom secretary Anil Kumar met with the chairman of the Telecom Regulatory Authority of India (TRAI) Justice S S Sodhi at his 20th floor office housed in the STC building in the capital today. While there may be nothing unusual in the event itself, telecom observers have attached importance to this meeting as signifying a change in approach in the building up of dwindling investor confidence in the telecom sector.

TRAI Chairman Justice Sodhi said that the meeting today was too preliminary for any conclusions to be drawn and included just an exchange courtesies. The meeting has however assumed importance as despite directions from the former Cabinet Secretary T S R Subramaniam last year insisting on a monthly informal interaction between officials on both sides, only one such meeting took place almost ten months ago.

The impasse between the Department of Telecommunications (DoT) and the TRAI has now become legendary in telecom circles with the TRAI having pushed into a corner ever since the recent High Court judgement in July curtailed the latter's powers by refusing to allow its jurisdiction to interfere in the licensing rights of the DoT. This has left the TRAI virtually with no powers to interfere in any disputes that pivate operators in the field of basic, cellular and paging services, and the DOT on encashment of bank guarantees for delayed licence fee payments.

Before this, in February, the TRAI had acted tough with the DoT staying its proceedings in announcing the new internet policy, encashing bank guarantees of operators defaulting on licence fee payments and going as far as cancelling the licence issued by the DoT to the Mahanagar Telephone Nigam Ltd (MTNL) for allowing it entry in the field of cellular services. This had forced the DoT to drag the TRAi to court to get the jurisdiction of the authority sorted out.

In the words of Sodhi himself, the TRAI has been reduced to being a "toothless wonder". He says, the government has to have its objectives clear in forming a regulatory authority - it has to be an independent forum, expeditious in settling disputes and inexpensive for disputing parties to approach. If these are the objectives of any regulator then this is how these bodies should be allowed to function.

Whether today's meeting will herald a new chapter in the TRAI-DoT relations, only time will tell, but for the moment industry hopes are high.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: The Mule track connecting the landslide-hit Malpa village and Dharchula, which was completely destroyed, was today recreated by the Army and it would be ready for vehicles by tomorrow.

Announcing this here, Army and Air Force officials who led the rescue and relief operations in the area said the joint operations carried out by defence forces, Indo-Tibetan border police, the State police and administration, under very trying circumstances could well be taken as an example for successful large-scale disaster management in future.

Air Commodore HPS Sidhu and Col Vikram Singh, who planned and got the operations implemented at the site, explained in detail the situation as it developed from the wee hours of August 18 when rocks, boulders and slush came rumbling down taking away with them the Malpa village and its inhabitants, including several Kailash-Mansarovar pilgrims.

They said at least 200 people would have been buried dead in the debris, but bodies of only about 45 could be recovered.

Elaborating how best man and machine were put to use to meet the massive devastation and trying to save those few who were still alive, they said Cheetah helicopters which could land at a maximum height of 10,000 feet were made to land at about 11,000 feet at another village of Gunji, which lay north of Malpa.

As part of the ``Operation Blue Angels'', braving foul weather 14 IAF choppers, including six MI-17s called from Western Command to Bareilly, carried out about 300 sorties, flew about 79,000 kgs of load and 572 passengers besides rescuing the injured, ferrying the dead and dropping rations and medicines.

Sidhu said it was difficult for the helicopter pilots who had to fly only on one side of the river Kali, dividing India and Nepal, and through the deep gorges. Even at Bareilly, which had an average rainfall of 200 mms in August, the rains last month totalled a whopping 710 mms, he said while giving a picture of the bad weather in the area which made flying difficult.

A company of about 90 Army men went to Malpa on August 19, even without the requisitions sought from the base headquarters, said Singh, adding that they set up two Inmarsat based communication system at Malpa and Dharchula as their VHF system was getting disturbed.

About the artificial lake created by blocking of the stream by the falling boulders, he said the administration, and security forces took a joint decision not to blow it up in order to save the villages downstream.

As explosions could cause further slides, ropes and crowbars were only used to dig out bodies from the slush and rocks, he said, adding that bodies were cremated on the spot as decided by the civil administration.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. Mumbai, Sept 1: Kinetic Engineering of the Firodias and Japanese automobile giant Honda Motor Corporation have decided to part ways with Pune-based Kinetic Engineering buying the entire 51 per cent stake held by Honda in the joint venture company, Kinetic Honda Motor Ltd (KHML), with effect from Tuesday.

The Firodia takeover of the company is bound to trigger the SEBI's takeover code and the company will have to make an open offer to the shareholders of Kinetic Honda Motor. The SEBI has asked Nestle to make an offer to its shareholders as the Swiss firm had bought three per cent stake from one of the co-promoters, the Khaitans and did not make the offer to the small shareholders. The price of the acquisition was not made public by the Firodias in their statement though insiders say that the deal would be around Rs 32 crore.

With this, the equity stake of Kinetic Engineering in the company will go up to over 76 per cent in the listed company. The Kinetic Honda Motor scrip remained static at Rs 42 as compared to yesterday's closing while Kinetic Engineering was marginally up at Rs 97.60 (Rs 95).

In a statement to the stock exchanges, both companies said with the departure of Honda, the Kinetic Honda Motor will become a KEL group company and subsequently change its name. Both companies have been working as co-promoters and partners since 1985 and producing premium segment scooters -- Kinetic Honda ZX and Marvel.

As per the agreement, Honda would continue to provide technical support to the venture and the company will continue to make the current scooter models. The company will also continue to export vehicles under the Honda's network under Honda's brand name.

Honda Motor Corp is having a presence in the Indian market through its other joint venture with the Munjals of New Delhi which is making motor cycles and with SIEL to make Honda City cars.

Among Honda's various joint ventures, Kinetic was the only company which was not doing well. Despite 15 years of operations, the company was unable to breach the 10 per cent market share in the scooter segment. Due to its low pricing, Bajaj Auto and LML are presently having a virtual monopoly in the Indian scooter market.

The new arrangement between the two partners is subject to all necessary government approvals. KEL has already filed an application today with the RBI for its approval. KEL has said that with the departure of Honda, high overhead costs of the Japanese managers would be reduced along with communication costs and office locations in Tokyo, New Delhi, Indore and Pune. It said Honda will continue to provide technology for the current products so that they can met the year 2000 emission norms.

It said the takeover of the joint venture company by the Indian promoters will reduce overheads by cutting out duplication of efforts in areas such as IT, training, selling and top management time. Further, Honda will also help the Indian company by providing it own manufacturing facilities in Japan or its authorised vendors for the critical parts which cannot be indigenised at present.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. THIRUVANANTHAPURAM, Sep 1: Chief Minister E K Nayanar has ruled out inquiry into the alleged lapses in the implementation of People's Planning programme.

He said this during the Cabinet briefing yesterday when his attention was drawn to the demand by Opposition UDF for an inquiry into the alleged irregularities in People's Planning.

Nayanar said that he himself had noted that there had been lapses in the implementation of the programme. But the Government had no plan to institute an inquiry into it, he said.

In yet another development, the memorandum of understanding signed with International Network on Small Hydel Power of China for setting up of 18 mini hydel projects in the State was approved by the Cabinet.

However, the Kerala State Electricity Board (KSEB) has been directed to study and discuss areas like floating a global tender to buy the necessary machinery, exchange rate fluctuations and export credit before signing the final agreement with the Chinese firm.

Meanwhile, the chief minister said that Kozhikode Police Commissioner was inquiring into a complaint by Baburaj, who was taken into police custody and later admitted to Kozhikode Medical College.

Baburaj was taken into custody following an altercation with an autorickshaw driver. He was produced before the magistrate and referred to the mental hospital as he was suspected to be mentally ill. Later, he was admitted to Kozhikode Medical College Hospital. Press photographers were prevented from visiting him to take pictures.

The chief minister said that the Government had not received any complaint in this regard.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. GUWAHATI, Sept 1: The murder of three former militants by a Major of the 11 Jat regiment on the night of August 27 at Dibrugarh, has not only served a big blow to counter-insurgency operations in Assam, but has also painted a poor picture of the security force.

The Dibrugarh deputy commissioner, meanwhile, has instituted a magisterial probe into the incident, while the army has begun its own investigations, after finding prima facie evidence against Major Jamir Khan of the Jat Regiment.

The media, especially the vernacular press has come all out against the army in the state, more so after the army authorities tried to justify the detention of one Atanu Sarma, accusing him of being a pick-pocket, for nearly an hour after a major blast occured in the Guwahati Railway Station earlier last week.

The wives of the three former ULFA (United Liberation Front of Assam) leaders who were gunned down by Major Khan on the other hand have filed a petition in the Guwahati High Court seeking a high-level probe into the killings, as also praying for exemplary punishment to Major Khan and his accomplices.

The issue has shot into prominence because Major Khan did not kill the three youths, Rana Gogoi, Utpal Barua and Rajiv Phukan, as part of his counter-insurgency operations. The officer is stated to have gone to the house of one of the youths, took part in a drinking session, and then accused them of lodging a complaint against him with the higher-ups in the army, and then shot them dead.

There are at least a dozen witnesses to the gruesome murders, with some even from the regiment to which Major Khan belonged. Reports have said that Major Khan snatched an AK-47 rifle from one of his jawans to shoot down the three youths. Other witnesses include some Assam Police constables deployed as personal security officers to some of the former ULFA leaders, and also five or six other former ULFA cadres.

The former militants had apparently complained to the General Officer Commanding of 2 Mountain Division at Dinjan that Major Khan had embezzled about Rs three crore, which was part of about Rs 4.4 crore which Khan's unit had recovered during a recent operation against the ULFA in a nearby village.

The killing has embarrassed the army and the various organisations have once again demanded withdrawal of the army from operations against militants in Assam.

Prominent organisations which have pleaded for withdrawal of the army and vesting of responsibility of tackling the situation on the state police, include the Assam Sahitya Sabha, the All Assam Students' Union, Manab Adhikar Sangram Samiti and Asom Jatiyabadi Yuva Chatra Parishad.

Some groups have also accused the army of having a hand in the killing of several family members of top ULFA leaders like chairman Arabinda Rajkhowa, commander-in-chief Paresh Barua and publicity secretary Mithinga Daimari.

Last week's triple murder is not the only instance of the armymen crossing limits. Armed with the Armed Forces (special powers) Act, the army had in 1994, killed five innocent youths in Tinsukia district in a fake encounter, while in several other instances, the high court has pulled up the army for various crimes inflicted upon the common people. It was only a few weeks ago that two jawans of the army were found guilty of raping a married woman in Nalbari district, with an army court awarding both of them ten years rigorous imprisonment.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK, Aug 31: Wimbledon runner-up Goran Ivanisevic avoided his usual US Open first-round jinx and Thomas Muster registered the first knock-out of a seed today as the last Grand Slam tournament of the year got under way at the National Tennis Centre.

Ivanisevic, a first-round loser at the US Open in three of the last four years, ripped past Australian doubles specialist Mark Woodforde 6-3, 6-4, 6-4 with the sun pouring down on Centre Court at Arthur Ashe stadium.

``The last time I won the first round I made the semis,'' said Ivanisevic, recalling his 1996 Open campaign that ended with a defeat against eventual champion Pete Sampras. ``Maybe this is a good sign.''

Ivanisevic, who also fell to Sampras in this summer's Wimbledon final, crashed 23 aces past Woodforde during the one hour, 27-minute match.

While the lanky, goateed Croat was dismissing Woodforde, former world number one Muster, of Austria, mustered his ground-stroking arsenal to oust 15th-seeded clay courter Alberto Berasategui of Spain, the 1994 French Open runner-up, 7-6 (7-1) 6-2 6-3.

Muster, three times a quarter-finalist at the Open, improved to 4-1 lifetime against the Spaniard as he avenged a defeat in the final of this year's clay event in Estoril.

World No 1 and top seed Pete Sampras was following the 14th-seeded Ivanisevic onto Centre Court, beginning his quest for a record-tying 12th Grand Slam title against Marc Goellner of Germany.

On the women's side, top-seeded Martina Hingis of Switzerland was due to follow Sampras and begin defence of her Open crown with a Centre Court test against Aleksandra Olsza of Poland.

Early women's winners included 11th-seeded Patty Schnyder of Switzerland, who beat Japan's Yuka Yoshida 7-6 (7-5), 7-5, Poland's Magdalena Grzybowska, Americans Kimberly Po and Laura Granville.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. SEOUL, Aug 31: North Korea is believed to have test-fired today a new longer-range missile for the first time, capable of striking targets throughout north-east Asia, South Korea's defence ministry said today.

One stage of the ballistic missile is believed to have overflown Japan and come down in the Pacific, a senior Japanese defence agency official confirmed.

``There is a possibility that the missile landed on the high seas several hundred km off Sanriko coast (in northern Japan),'' defence councillor Toru Kawajiri told a news conference.

A part reported earlier to have fallen in the Sea of Japan which separates North Korea and Japan may have been a booster for the missile, he said.

``We cannot but express serious concern over a test launch of a ballistic missile at a time when an international effort is being made against spread of weapons of mass destruction,'' a defence ministry statement had said earlier.

``We urge North Korea to stop developing this kind of missile and join international efforts for non-proliferation of missiles since the development harms peace and stability of not only the Korean peninsula but also north-east Asia,'' it said.

The Japanese defence agency said North Korea test-fired the missile into waters that divide the Korean peninsula from Japan, prompting Japanese Prime Minister Keizo Obuchi to warn that Japan was considering unspecified steps in response.

Russian news agencies quoted Russian military officials as saying the missile was faulty and had veered off course.

``There was an accident during the launch. The rocket fell 350-400 kms from the launch site after gaining little height and veering from its flight trajectory,'' ITAR-TASS news agency quoted an official from the strategic rocket forces as saying. Chief cabinet secretary Hiromu Nonaka said Japan would lodge a strong protest following reports that the missile overflew the country.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI: The Indian Olympic Association and the Union Sports Ministry's pressure tactics seem to have worked as the cricket Board is veering around to the fact that the ``best team'' should be sent to Commonwealth Games. The turnaround came after the Board of Control for Cricket in India (BCCI) president Raj Singh Dungarpur met Union Sports Minister Uma Bharati who is said to have expressed concern that India could lose face if it sent a weak team to Kuala Lumpur.

The selectors have made it known that some players are automatic choices for the `Top 14'. If the `strongest' team is chosen for Toronto, the automatic choices would figure in that team. But with a compromise being worked out, it is learnt that the Board will ask the selectors to include some of the automatic choices in the side for Kuala Lumpur.

According to sources, the list could even include Sachin Tendulkar, who has apparently said that while he has no objection to playing on either side, he would not want to be made captain for KL. In such a situation, Ajay Jadeja is likely to lead. Mohammed Azharuddin, who will lead the side to Toronto, is believed to have been informed of this. After some discussion Azhar is also said to have agreed to this compromise, even though the absence of Tendulkar would be a big blow for him.

Meanwhile, at least one selector is opposed to the idea of having two equally `strong' teams but the other selectors say that they can only select teams from the pool of players the Board has made available to them for a specific event. In this case, the Board will mark some of the ``automatic choices'' for Toronto and some for Kuala Lumpur. The selectors will then work out the remaining slots on either side in an attempt to find the right balance.

The controversy over the team has been raging for the past three weeks and both the IOA and the Government have been demanding that the Board send the strongest team to KL so that India could make a bid for a gold medal. At the same time, the Board has contractual obligations with International Management Group, the promoters of Sahara Cup. The Board stands to make upwards of a million dollars as its share from Sahara Cup, but there is no money guarantee for Commonwealth Games.

Some members of the Board feel that this compromise could mean India losing at both Toronto and KL. In Toronto, Pakistan is fielding its best 14 and in KL, Australia who are in India's group, have their best one-day side led by Steve Waugh. Since only team from each group goes to semis, India could well be out before the medal stage in Malaysia.

But the Board, which has known about this possible clash of dates for the last two years, would have satisfied both the IOA and the organisers of Sahara Cup. The coffers would be full alright, but at the same time it could mean India losing at both places. But then, that's what happens when you try to kill the `Goose that lays the Golden Eggs.'

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: The National Human Rights Commission (NHRC) has called for a report from the Bihar Chief Secretary on the police firing on a demonstration of flood victims at Dumra in Sitamarhi district on August 11.

The Commission called for the report on a memorandum submitted by the Nagrik Sewa Morcha (NSM) demanding a probe into the unprovoked police firing on flood victims who were peacefully demonstrating for relief. Five persons died and 15 people sustained serious injuries in the firing. The report is to be submitted within six weeks.

The memorandum said the police did not resort to lathi charge, water cannons, tear gas, or firing in the air, but directly opened fire on the demonstrators. The police also arbitrarily arrested 52 people and seized 350 bicycles, nine tractors, 25 motorcycles, two tents and loudspeakers and microphones, the memorandum said.

A NSM delegation led by its President Dhruva Kumar also met Commission Member Justice V S Mallimath, Secretary General R V Pillai and Director General (Investigation) D R Kartikeyan and requested that a team be sent to Dumra investigate the incident and recommend payment of adequate compensation to the victims.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: SHIV Sena chief Bal Thackeray today contended before the Election Commission that there was no justification for him being disqualifed from contesting or voting in elections for having appealed to the electorate on ground of religion during a Maharashtra assembly bye-election in 1987.

This was stated by Sena chief's counsel Raju Ramachandran during the hearing of a reference sent to the commission to decide the quantum of punishment after the Supreme Court dismissed in 1995 a special leave petition filed by Thackeray and former Maharashtra MLA Yashwant Prabhu against a 1991 Mumbai High Court verdict.

Thackeray was not present at the hearing and was represented through his counsel.

The apex court had found them guilty of electoral malpractice under section 8-A of the Representation of People Act for having appealed to the electorate on ground of religion while campaigning for a Vile Parle assembly bye-election in 1987. Prabhu was disqualified from contesting election for six years following the Supreme Court order.

Former Maharashtra minister and defeated Congress candidate Prabhakar Kunte had filed the election petition against Thackeray and Prabhu in the high court soon after the bye-election.

Ramachandran told Chief Election Commissioner M S Gill and Election Commissioner J M Lyngdoh that there was ``no justification'' for initiating action to disqualify Thackeray ``at this late stage''.

Besides, Ramachandran contended that no action to disqualify Thackeray was called for as the Sena chief, who has never contested polls, has declared that he would never enter any electoral fray in his life.

Though the hearing in the case concluded today, the Election Commission did not give any indication as to the time by which it would send its recommendation to the President in the matter.

Gill declined to comment on the proceedings as it was a judicial matter.

Besides Thackeray's counsel, senior Sena leader, Subhash Desai attended the hearing.

Under the Representation of People Act, the commission could recommend that Thackeray be disqualified from contesting or voting in elections up to a period of six years.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: Rattled by the frontal attack on the government by one of its own organisations -- the Swadeshi Jagran Manch (SJM) -- the BJP today defended the government saying it was pro-swadeshi

. The party also ruled out acceding to the Manch's demand that the two economic advisory panels set up by the Prime Minister be reconstituted.

``The BJP and the government are not wholly in agreement with the criticism made (by the SJM). But we will consider any constructive suggestions,'' party spokesman K L Sharma said today. He said that the Budget and the policies of the government reflected its commitment to swadeshi

.

Yesterday, the SJM launched a scathing attack on the government accusing it of ``side-stepping'' the BJP manifesto which made swadeshi

the pivot of economic policies. It demanded that the government review the direction in which it was taking the economy. It also demanded that the government ``undo'' the recognition and promotion given to known anti-swadeshi

bureaucrats like Montek Singh Ahluwalia and N K Singh.

Top RSS leaders such as K S Sudarshan, Madan Das and Dattopant Thengdi and representatives of other Sangh Parivar frontal organisations like the Vishwa Hindu Parishad and ABVP were present at the meeting at which the resolution castigating the government was passed.

Sharma, however, insisted that the BJP-led government was working according to the National Agenda of Governance and that it believed that swadeshi

was important. ``What the SJM has said is their opinion. There can be two opinions,'' he said.

He remained silent when asked if the Maruti-Suzuki deal, giving the Nyveli extension project to an inexperienced Italian company and the government's decision to significantly reduce its stake in Air-India could be characterised as pro-swadeshi.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. September 1: India's leading automaker Maruti Udyog Ltd (MUL) has been ranked 24th among the global vehicle manufacturers by an international automobile magazine.

Another Indian automobile company, Telco has been ranked 28th by the `Automotive News, 1998 market data book' on the basis of production and sales in the year 1997.

Korean auto giant Hyundai Motor Company, which is about to launch its first vehicle `Santro' the small car in India later this year, stood 13th in the list of leading auto companies topped by the U S-based General Motors.

Quoting the magazine, Hyundai claimed in a statement here today that it topped the Korean auto market, edging out the nearest rival Daewoo Motor Company. Daewoo stood 18th in the list and second in Korea, according to the magazine's global list.

While MUL produced 3,49,230 vehicles and sold 3,46,159 during 1997, Telco, the only other Indian company to figure in the list, manufactured 1,83,982 vehicles and clocked a worldwide sales of 1,81,328 during the same year.

The worldwide sales figures by the magazine for 1997 stood at 53,404,834 vehicles that included passenger cars, light, medium and heavy commercial vehicles. Three Japanese companies made it to the first ten in the group with Toyota Motor Corporation being ranked third and Nissan Motor Corporation seventh.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. September 1: The Bombay High Court today admitted a writ petition alleging involvement of Deputy Chief Minister Gopinath Munde in a Rs 185-crore fraud in the Maharashtra State Electricity Board (MSEB).

The petition, filed by three consumers including Congress MLA Digvijay Khanvilkar, alleged that MSEB awarded the contract for retrofitting of 15 turbines and other machinery to Power Plant Performance Improvement Ltd. (PPIL) without considering other biddings of lower cost. The petition further said former MSEB chairman P L Gajralwar and three other board members were also involved in the fraud.

However, the division bench of Chief Justice M B Shah and Justice Y S Jahagirdar refused to grant stay on the contract awarded to PPIL who have been allowed to proceed with the retrofitting of turbines in seven units as work on them are scheduled to commence in the next two years.

As regards other units the court directed MSEB to advertise for fresh bids and consider tenders quoting lesser price without compromising the condition of increasing power generation. The board has been directed to place the tenders before the court on November 10, 1998.

The petition alleged that at a meeting of the directors of the board on January 28, 1998, Gajralwar along with board members Sudam Mandlik, Ashok Sampat and Anil Rathod hurriedly decided to grant the contract to PPIL. ``The chairman pressurised other directors to award the contract to PPIL,'' the petition said adding that the technical and accounts members of the board were not in favour of awarding the contract to PPIL while another company LMZ had quoted lower rates.

The petition stated that the board meeting was held to decide on the work on one unit. However, the chairman and the three members decided to award PPIL with contracts for other units as well. ``This is illegal, arbitrary and against the interests of consumers because it would affect the performance of the MSEB,'' the petition said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sep 1: The government has increased drawback rates on 219 items, lowered rates for 290 items and introduced six new items into the list.

Major items on which drawback rates have been increased are readymade garments, hand tools, bicycle and bicycle parts, brass artware, brass hardware, leather and leather products, made-ups including handloom made-ups, and certain machinery items. The new rates will come into effect from Wednesday.

Referring to the special additional duty levied in the budget, the finance ministry release says the levy of 4 per cent SAD has been taken into account alongwith 5 per cent SAD applicable on various imported inputs. This will provide export products the necessary leverage to compete with products of South East Asian Countries where prices have fallen steeply on account of the collapse of currencies,it says.

The release adds that the increased drawbacks take into account ``the increased incidence of duties introduced on different inputs used by exporters.'' It has been the endeavor of the finance ministry to ensure that exports do not suffer on account of high custom and excise duties, it says.

Highlights of the changes are as follows (i) the six new products which have been included are surgical blades, heat resistance rubber, non-computing registers, dual type, electrical motors and tennis rackets (ii) 219 items on which rates have been increased are items where duties have increased or the total incidence of duties have increased due to rise in input prices (iii) rates in respect of 238 products are being continued at existing levels as there is no change in input duties and prices (iv) rates of 290 products have to be revised downwards in view of reduction in duties and prices of inputs used by manufacturers (v) on handloom products rates have been revised upwards and the description has been revised to include all varieties of made-up articles.

This will enable exporters to earn drawback on any article including new varieties which are in demand in the international market (vi) draw back rates have been re-introduced for garments exported from EOU/EPZ units which have inputs on which duty has been paid (vii) the major benefit extended to all export products on which government had decided to restrict the Modvat credit availed to 95 per cent is a new provision in the drawback table which compensates exporters for the 5 per cent Modvat credit which cannot be otherwise utilised. This removes the disability of 5 per cent which was making inputs costlier to exporters (viii) in the case of handloom products, handicrafts including handicrafts of brass artware, finished leather, grey fabrics and other export products which are unconditionally fully exempt from excise duty, it has been decided to dispense with the need to produce certificates regarding non-availment of Modvat facility as a measure to simplify export procedures and pay drawback moreexpeditiously to exporters (ix) in respect of certain other products a circular has been issued on guidelines to be followed for verification of Modvat availed.

The range of exports which will now get higher duty drawback is wide. This is because the special additional customs duty is being levied -- on top of the 5 per cent special customs duty -- on a large variety of imports which go into exports. Among the beneficiaries of higher duty drawback are thrust items like textiles, drugs and pharmaceuticals and electronic hardware.

On the flip side, duty drawback rates have been lowered for 290 items. This seems to be an economy drive. Apparently, duty foregone in favour of exports is large -- a consequence of efficient computerised settlement of drawback claims -- and is more than 25 per cent of annual customs revenue.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, Sept 1: Tatas today announced their formal decision to pull out of their proposed Rs 1,475-crore airline project with the Ministry of Civil Aviation continuing to delay the project for one reason or another -- the project has been delayed by over 43 months already.

This makes it the second time in as many months that the Tatas have been forced to pull out of a major venture involving prestigious foreign investors because of the delay tactics of this very ministry -- in July, the Tatas pulled out of the Rs 1,200-crore Bangalore airport project after the ministry tried to change the terms of the project and later refused to honour commitments given by them to the Tatas at the time of the original bid.

The Tatas' decision to pull out of the airline project was communicated to Civil Aviation Secretary P V Jayakrishnan in a letter written by Tata Industries' director Sujit Gupta. Gupta also sent a separate letter withdrawing the group's application with the FIPB to its chairman T R Prasad. Copies of the letter were also sent to all FIPB members including Finance Secretary Vijay Kelkar, Commerce Secretary P P Prabhu, and A N Ram who is the economic secretary in the Ministry of External Affairs.

While no comments could be got from either the Civil Aviation Minister Anant Kumar or the Secretary, when contacted FIPB officials said the Tatas had in fact appreciated the positive role played by them and had said the main reason for the delays lay with the Aviation Ministry.

Briefing the press shortly after today's letters were shot off, Gupta said their decision to pull out of the project was not in any way a vote of no-confidence in the government but was really a vote against the Ministry of Civil Aviation.

Today's decision was interpreted by observers as a smart one since the expert committee set up by the Aviation Ministry to examine their project after sitting on it for eight months was sure to reject their case. As a Tata spokesperson put it at today's briefing: ``The committee has been set up by the same ministry which has been opposing the project.''

Indeed, all evidence seems to suggest that the ministry has played foul with the Tatas, with the aviation policy itself being changed, and several amendments added to it, to prevent the airline from taking off (see box). So, for example, while the earlier policy allowed foreign airline companies to have a 40 per cent stake in local carriers, this was changed when the Tatas roped in Singapore Airlines as their partner. This, despite the fact that the government allowed Jet Airways to carry on with a 40 per cent stake by foreign airlines. And, in December 1997, also allowed ModiLuft to sell 40 per cent of its equity to foreign investors -- the latter deal never worked out eventually, but for different reasons -- but never asked it to disclose who the investors would be.

Similarly, when Jet Airways was given six months to divest the stake of foreign airlines -- Kuwait Airways and Gulf Air -- it just gave a three-line letter to the ministry saying it would comply. Nor were any questions asked about the details of the shareholders of its holding company, Tailwinds which is registered in the Isle of Mann.

The Tata proposal was, however, put off for several months with the ministry insisting on getting full details of who the investors would be -- the fact, however, is that with the proposal not even cleared, how could the Tatas get any investors in the project.

The key problem, as is evident to all including those in the government --the PMO, the Finance Ministry and the Industry Ministry have been strong supporters of the project -- is that the Tatas were checkmated by domestic vested interests, generally suspected to be competing airline companies. In fact, at one stage, even the state-owned Indian Airlines was brought into the act and put out a note saying that they would be hit badly by the proposed Tata Airline.

Most of the facts in this note, however, were incorrect -- the note, incidentally, formed the basis on which several MPs opposed the project. The note, for example, talked of how IA's capacity utilisation (load factor, in jargon) had fallen in the last few years, when it had actually gone up. It also spoke of how there was plenty of excess capacity in the industry today, when in fact the civil aviation ministry itself had pointed out that there was a demand of 47 additional 120-seater aircraft in the next three years. Add to this the fact that, in the last two years, 17 aircraft of different airlines have gone out of use.

The Tata Airline which would involve foreign equity of Rs 278 crore was expected to generate direct employment to around 2,400 people by the fifth year of its operations, and to 10,000 people indirectly in terms of support staff at airports, baggage handlers, and so on.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sep 1: The strong builder lobby of the Vasai-Virar region is taking on the City and Industrial Development Corporation (CIDCO) for the latter's incompetence to announce a development plan for the region. Even as the last date to submit the final plan is fast approaching, CIDCO officials are not showing any signs of action.

As per the provisions, the special planning authority has to submit the final plan to the State Government for its sanction on or before September 6. If CIDCO fails to do this then there will not be any development plan for the region which is legally valid. This will create a vacuum which means unauthorised construction and haphazard development, say builders.

In 1990, the state government had appointed CIDCO as a Special Planning Authority for this region replacing the Bombay Metropolitan Region Development Authority (BMRDA). CIDCO took almost two years to prepare and publish the interim development plan, which was full of anomalies. It was expected that the final plan would be published after hearing suggestions and objections from the public.

However, it turned out other way round and this time the objections, suggestions were to the tune of about 6000. It is mandatory for any planning authority to finalise the plan within three years from the date of publication. It was felt by the builders that CIDCO's Vasai office may not be able to complete the legal formalities before the final date. But even after almost eight years, CIDCO could not finalise even a Development Plan about the implementation.

Recently in many building permission cases, CIDCO has refused to grant the development permission due to expectations of substantial modification in the published draft development plan. If major modifications are expected, the plan needs to be republished and once again the entire procedure of calling the objections/suggestions and conducting the hearing will have to be followed.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, September 1: In order to check the incidence of adulteration of edible oil, the Department of Sugar and Edible Oils of the Ministry of Food and Consumer Affairs has intensified its quality control measures.

The department would hold surprise checks at units that manufacture vegetable oil products and solvent extracted products. Besides, the frequency of regular inspection has also been increased.

Last week, the Government had taken a decision to import edible oilseeds. In order to ensure the availability of unadulterated oil at reasonable prices, the Government has also strengthened the public distribution system in edible oils and has made arrangements for the supply of imported oil wherever needed.

All field officers have been instructed to draw samples from all manufacturing units in their zones for purity checks. These officers have also been directed to lift samples from the market.

The Ministry has also strengthened the Consumer Service Centre of the Directorate of Vanaspati, Vegetable Oils and Fats at Super Bazaar (Connaught Place) in the Capital in order to provide testing facilities to the consumer. A fee of Rs 10 is being levied per test, at present.

Besides, the industry has also been directed to check the purity of the raw materials and finished products. Operations are being suspended at manufacturing units that have found items to be adulterated till the time they set up adequate analytical facilities for checking their purity, to the satisfaction of the Government.

The department has already banned the use of mustard oil in the manufacture of vanaspati oil. Besides, the state governments and Union Territories have been asked not to sell mustard oil in loose form. The states have also been directed to monitor the quality of edible oils more stringently.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, September 1: Hectic consultations are taking place between banks, financial institutions (FIs) and the RBI to come up with a bailout package for the thousands of small/medium sized industries which are facing problems repaying their interest or capital, due to the industrial slowdown. Among the suggestions doing the rounds are that FIs/banks be more liberal in considering the request of companies in distress and grant a three-year moratorium on repayment of interest/principal in a larger number of cases.

The proposal has gathered steam in the last month, with major political parties putting pressure on banks/FIs to reschedule loans of various companies, especially those in the small and medium sector -- FIs are, in any case, rescheduling several loans of larger corporates these days. It is believed that the matter also figured during the last meeting of the standing committee on finance. In the last month, three sets of meetings have taken place on this between various banks, FIs and the RBI.

Interestingly, in this case, the banks/FIs are also keen on working out something, as their non-performing assets (NPAs) are increasing since their borrowers are not paying their interest or repaying the capital borrowed in the past. It is now being proposed that the RBI change the classification of NPAs to take care of the interests of the banks/FIs.

Under the present norms, if interest is not paid on a loan for two successive quarters, it is to be declared as an NPA. Under the proposed scheme, this will be increased to four quarters.

The proposal, which will be widely welcomed by both industry as well as banks/FIs has, however, sent chills down the spines of several top bankers as this will make banks more lax in their loan appraisals and is also prone to a lot of misuse. If it is generally known that banks will be a lot more amenable to granting a moratorium, then there would be increased pressure to grant this to favoured companies.

Among the other proposals being considered as part of this package are that, for new projects, loans be provided at a zero interest rate for the first three years, and to charge this from the companies by levying higher rates for the later years -- thus companies would not face a cash-flow problem in the early years.

Another proposal is to allow banks/FIs to reschedule loans of companies engaged in new projects without attracting the provisions of NPAs. So, if a company is setting up a new project but does not start production, the FI/bank can renegotiate the loan, and make it more attractive for the company. This will benefit several greenfield projects currently underway and which are facing severe problems in their cash flows.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. September 1: Defending champions Air-India swelled their WIFA Super Division League points kitty today after registering a convincing victory over Central Bank of India (CBI) here at the Cooperage.

In another Super Division match, substitute ME Satish's last minute strike a saw Bank of India (BoI) derail Central Railway (1-0).

With today's victory, Air-India are sitting pretty at the second spot havign logged 18 points from 9 matches. Bengal Mumbai Football Club (BMFC) head the standings with 22 from 10 matches.

Air-India who dominated the proceedings shot into an early lead, thanks to a bad collection by CBI goalkeeper Jerome Ghanekar. Mid-fielder Khambiton Singh's goal-ward bound aerial long-ranger found Ghanekar making a mess of it. Opportunistic striker Debdas Sen, who migrated from Eastern Railway this season, made full use of the chance at his feet to lob the ball into the net.

Anthony Fernandes sealed victory for A-I in the 50th minute when he outpaced the Bank defenders and thumped into the net from close.

The Central Railway-BoI encounter was an evenly contested affair. Though Railway dominated the first quarter of the match, BoI settled down before creating openings.

The bankmen's endeavour paid dividends in the last minute when Satish shocked the railwaymen when he nodded in a Navin Kotian's cross. The opposition were found flatfooted as they waited for off-side trap.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: The Bombay High Court today allowed Revenue Minister Narayan Rane's plea requesting the deletion of his name from the list of respondents in a public interest petition filed by Nashik Municipal Corporation member Gajanan Shelar.

A division bench of the High Court comprising Chief Justice M B Shah and Justice Y S Jahagirdar however admitted Shelar's petition challenging a state government order restoring land acquired for the Nashik-based Maharashtra Engineering Research Institute (MERI) to its original owners.

In his prayer, Shelar had urged the court to direct the Anti-Corruption Bureau to file a case against Rane under the Prevention of Corruption Act, contending that the order passed by the minister to restore the land was bad in law and with malafide intention.

In 1963, the state government had acquired 400 acres of land for MERI at Nashik. The farmers were compensated as per the provisions of law. In 1993, some of the farmers approached the district collector, asking that the unutilised land be returned to them.

The farmers submitted that as per the provisions of an order passed by the government, if the acquired land was not utilised within three years and if it was not required for any other public purpose, then the same should be returned to the original owners at a price, which should not be more than double the price of the original compensation.

The plea however was rejected by the Nashik Collector, following which the farmers filed an appeal before Rane. The minister ordered that in addition to the 176 acres of land on which some construction had already taken place, MERI should retain an additional 50 acres of land and that the remaining land be restored to the original owners.

Challenging Rane's order, Shelar alleged that it was passed with malafide intention and named Rane, along with the Revenue secretary and the Nashik Collector, as a respondent in his petition.

Appearing for the minister, counsel Dhananjay Chandrachud urged the court that Rane's name be dropped from the list of respondents since the order was a quasi judicial verdict in his capacity as a Revenue Minister and that it was passed after taking into consideration the facts brought before him by the farmers. The court accepted Chandrachud's plea and dropped Rane from the list of respondents.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MOSCOW, Sept 1: In the grips of political storm each in his own country, Russian President Boris Yeltsin and US President Bill Clinton today bear-hugged in the former's study to inaugurate, what promises to be, a summit of uncertain terms.

The first agreement to trickle out was a joint pledge to eliminate some stockpiles of plutonium taken from dismantled missile warheads.

``Clinton and I know one another well, and we are friends,'' Yeltsin said earlier at a Moscow school.

With Russia reeling from a political and economic crisis, Yeltsin formally welcomed Clinton outside the Kremlin after wreath-laying at Moscow's tomb of the unknown soldier.

Republican senator Pete Domenici who flew here with Clinton, told a media person today that the two Presidents would sign tomorrow an agreement to get rid of about 50 metric tons of plutonium on each side and break down the weapons material so it cannot be used for military purposes.

``We both have way more than we need,'' Domenici said.

A draft of the leaders' joint statement said the plutonium would be withdrawn in stages, with financing arrangements to be set by year's end.

The draft said: Measures to manage and reduce such stockpiles are an essential element of irreversible arms reduction efforts and necessary to ensure that these materials do not become a proliferation risk.

Earlier, Viktor Chernomyrdin, acting prime minister, met Clinton and his wife, Hillary, at the Moscow airport.

Hoping to get a boost from summiteering, and doing his bit as an ambassador of West's free market, Clinton pledged continued US support for Russia as long as its leaders ``stay on the path of reform'' and do not revert to the Communist ways of the past.

With a message of support but no financial help, the US President urged Russians to reject the ``failed policies of the past'' in coping with their current economic crisis.

``Given the facts before you, I have to tell you that I do not believe there are any painless solutions,'' Clinton told a new generation of Russian leaders at Moscow state university of international relations.

He repeatedly said that Russia must play by the rules of international commerce.

With Russia's economic turmoil throwing the summit agenda into uncertainty, Clinton addressed the crisis with frankness, but offered no specific ideas on how the infant democracy could weather the tailspin of its currency.

Earlier, at the start of their meeting, Yeltsin presented Clinton with a loaf of salted bread, a traditional East European symbol of welcome. Clinton pushed at the bread with the heel of his hand, and it sprang back up. ``Amazing, kind of like you,'' Clinton told his embattled host.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: Former Prasar Bharati Board chief executive officer (CEO) S S Gill today filed a petition in the Delhi High Court challenging the ``constitutional validity'' of the Prasar Bharati ordinance which terminated his service by reducing his tenure as CEO.

The petition, which will come up for hearing tomorrow, termed the ordinance unconstitutional, saying a Bill of the same nature was awaiting the Rajya Sabha (RS) nod after being passed by the Lok Sabha on July 31.

The 72-year old Gill said the ordinance, which fixed the age limit of the CEO at 62 years, was ``politically motivated'' as the Bharatiya Janata Party Government, ever since its inception, had a one-point agenda to oust him from the post.

He alleged in his petition that the Government was inimical to his continuation as CEO as he did not operate as per their whims and fancies.

The way the ordinance was promulgated, he said, was a subversion of democratic and parliamentray norms, as one House of Parliament has passed the Bill and the other is yet to discuss it. By bringing in this ordinance, the Government has bypassed the RS, Gill said.

The ordinance, restoring the original 1990 Act, was promulgated on Saturday night and the Government immediately appointed All India Radio Director General O P Kejriwal in Gill's place.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, September 1: Tata Industries has roped in ICICI Securities and Finance Company (I-Sec) managing director Kishor Chaukar as its new managing director. Chaukar, who has been associated with the investment-banking arm of ICICI since its inception, will put in his papers over the next few days.

"Tata Industries is appointing a mew managing director shortly. He is KA Chaukar, currently the managing director of I-Sec. Chaukar brings to Tata Industries considerable experience in project evaluation and project finance," a Tata Services press release said.

Tata Industries is the main promoter of the Tata group in new projects in the areas of information technology, telecommunications and other high technology areas.

"It happened very fast. It is not an opportunity in finance. I will be involved in setting up new projects for Tata Industries. It is a challenge I am looking forward to," he said.

The financial sector has not been surprised by the development, as Chaukar is believed to be not enjoying his assignment in I-Sec for quite some time now. The massive loss posted by I-Sec in 1997-98 did not go down well with the ICICI management. More complications cropped up when overseas partner JP Morgan decided to call it a day early this year.

I-Sec has also lost the prime of place in the new scheme of things at ICICI, which is fast turning into a universal bank, following the recommendations of McKinsey & Co. A sizable number of I-Sec employees left the fold to join JP Morgan, few departments wound up and some of I-Sec executives were called back to ICICI.

Chaukar, however, was made ICICI executive director and sent on deputation to I-Sec as its managing director. Chaukar has been associated with ICICI over 14 years. Joining as an officer in 1984, he spent four years with the merchant-banking wing and another four years heading ICICI's Delhi operations. In 1995, he took over as CEO of I-Sec when NJ Zaveri called it a day.

A release issued by ICICI said that since Chaukar had decided to join Tata Industries, he would relinquish his position as director on the boards of ICICI, I-Sec and TDICI in October. "Related directorships would be relinquished simultaneously," said the release.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: The cold war between the alliance partners over the Rs 10,000 crore Shivshahi Punarvasan Prakalp scheme is still simmering if the drama at today's special cabinet meeting is any indication.

After BJP leader Kirit Somaiyya publicly criticised high-profile Housing Minister Sureshdada Jain over the housing scheme, it was Jain's turn to hit back and he did so by halting a proposal mooted by Deputy Chief Minister Gopinath Munde.

Munde, who also holds the energy portfolio, had put forward the revised Power Purchase Agreement between the Reliance and Maharashtra State Electricity Board (MSEB) for the 410 MW Patalganga power project before the cabinet members at a special meeting on August 29.

Taking objection to it, Jain urged the Chief Minister to defer the proposal for the next cabinet meeting since he had not read the cabinet note drafted by the Energy Department. Joshi readily agreed to the proposal and accordingly, it was postponed and brought up again at today's cabinet meeting.

But when Jain made the same plea at today's meeting, Munde virtually stalled the cabinet for a while, saying, that since he had not read any of the cabinet notes, all the items of the agenda should be taken up at the next meeting of the cabinet.

Not only BJP Ministers, but a section of the Shiv Sena cabinet members openly came out in support of Munde, saying, such a practice should not be encouraged. Secondly, they also urged the Chief Minister to circulate the cabinet note atleast one day in advance so as to allow Ministers to carefully study them.

Apparently sensing trouble and the possibility of BJP members boycotting the cabinet for a second time, the Chief Minister declined to take note of Jain's plea and took up the proposal moved by Munde.

Meanwhile, Jain looked completey disappointed over the progress of the slumdwellers scheme. ``So far we have met on three occasions, but we have not touched the basic objections raised by the BJP,'' Jain said.

Following objection taken by Somaiyya, Thackeray had set up a committee comprising Chief Minister Manohar Joshi, Deputy Chief Minister Gopinath Munde, Sureshdada Jain, Kirit Somaiyya and Housing Development Corporation Chief Deepak Parekh to review the project and examine the objections raised by BJP.

On the objection raised by the BJP over the tendering system, Jain said for more transparency in the entire process, he was prepared to appoint former Chief Secretary D M Sukthankar, Kirit Somaiyya, Congress leaders Chhagan Bhujbal and Madhukar Pichad on the committee.

When his attention was drawn to the objections raised by the State Planning Board headed by BJP leader Prakash Jawdekar, Jain said since the project has been approved by the Cabinet, the highest decision making body, he was not concerned about the views of the planning board.

Referring to the threats received by him and Housing Secretary V P Raja, Jain said it was brought to the notice of the Chief Minister, who has enhanced security for him with immediate effect. ``I do not know as to what is the additional security provided to him. But I am told that the security has been enhanced,'' Jain added.

Munde confirmed that additional security has been provided to Jain following threats to his life. ``Like the security to former Ministers Ganesh Naik, Suresh Navale and Gulabrao Gawande, additional security has been provided to Jain and Raja,'' Munde pointed out.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI: Union civil aviation minister Ananth Kumar on Tuesday said the centre will allow 100 per cent participation by international consortiums with local partners in the construction of domestic airports.

Inaugurating the first electronic international exhibition and conference "Nepcon India '98" organised by the Confederation of India Industry (CII) and Electronic Components Industries Association (Elcina) here, Kumar said the centre had decided to allow consortiums to invest fully as against the earlier 74 per cent.

Kumar said his ministry will clear the international airport project at Devanahalli within a week if the Tata consortium approached them. During his recent meet with the Tata group chairman Ratan Tata, the latter had promised to come back to him after revaluating the project with the consortium partners--Raytheon and Singapore consortium, besides consulting Karnataka chief minister JH Patel.

Kumar said the review of the project was not put forth by his ministry but was suggested by Tata himself during the meeting.

He said he had agreed to release the excess land held by the airport authorities near the Bangalore airport for construction of a four-way freeway to develop the whitefield IT Corridore. If the four-lane highway was completed, the proposed Pragati Maidan-like exhibition complex and international technology park, besides the airport, would stand to gain.

On the exhibition, Kumar said the centre was committed to make the country a global IT destination and urged the sector and the state government to integrate technology as it would be more relevent in the 21st century.

The four-day exhibition will have exhibits from Germany, Italy, Japan Switzerland, Taiwan and Singapore.

Electronic component is one of the fastest growing sector with the estimated demand-supply gap expected to increase from $1.14 billion in 1997-98 to $2.94 billion by 2001-2002. While 18 companies under the banner of Udyog Mitra are participating from Maharashtra, ten manufacturers from Andhra Pradesh have put their products on display.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK Sep 1: White for day, black for night. And on that fashion note, Pete Sampras and another pair of former champions got the US Open started on a run that could end in Grand Slam history.

Sampras, dressed all in white, but no country-club gentleman, starred on a sun-drenched Monday afternoon on the stadium court.

Monica Seles, wearing a black dress to mourn this spring's death of her father, outslugged Florencia Labat of Argentina 7-6 (7-0), 6-2.

And Andre Agassi, merely making another in a series of fashion statements, beat France's Sebastien Grosjean in the last match of opening day, 6-4, 6-1, 6-4.

The afternoon crowd didn't see the best Sampras, the one who took Wimbledon for the fifth time and is trying to add a fifth US title and record-tying 12th Grand Slam singles crown.

It didn't have to be. Goellner, a 27-year-old German, last won a match more than two months ago. His game consists primarily of a first serve that reaches 115 mph if he's on, and against Sampras much more is needed.

Sampras had eleven aces and dropped just 15 points on his serve, clocking one first-set ace at 131 mph. He didn't allow Goellner, ranked 109th in the world, a break point, and toyed with him from both baseline and net in winning in just 84 minutes.

``You just try to get through the early rounds,'' said Sampras, eliminated in the fourth round a year ago. ``It's nice to get that monkey off your back and get into the tournament. I tried to stay focused and I think I did.''

Six more wins over the next two weeks and Sampras joins Roy Emerson as the only players to win an even dozen Grand Slam singles tournaments, the milestone the tradition-minded Californian treasures above all others.

``What more can you do in the game? Win the French Open, maybe, or all four Slams in one year,'' Sampras said. The French Open, on clay, is the only Grand Slam tournament sampras has not won.

``I'm thinking of entering the ladies' tournament next year,'' he said. Maybe I can get lucky and win that.''

Adding a second Grand Slam title for the year also would do plenty to clinch the No 1 ranking for the season, the sixth straight year that would end with Sampras on top, breaking the record he shares with Jimmy Connors.

``All those records are important to me,'' Sampras said. ``I'm not focused on this tournament any more than any US Open, but I hope to get some things done over the next two weeks.''

No fighting words there, nothing for defending champion Patrick Rafter, No 2 Marcelo Rios or any other challenger to hang on the refrigerator for inspiration.

Sampras is no trash-talker. But he has an edge, and the crowd that half-filled the 20,000-seat Arthur Ashe Stadium saw it a couple times against Goellner.

Meek Pete looked positively McEnroesque as he stared down a line judge he felt missed an ace. He smirked at the umpire, and tried to get the fans who remained in the third set back into the match, waving his arms like a cheerleader.

He even took a light shot at Emerson, the storied Aussie who won a large share of his slams while Rod Laver was on the sidelines in the dispute between amateur tennis and the emerging professionals.

``I am not trying to take anything away from Emerson and what he did, but the competition is probably tougher today than it was 30 years ago,'' he said. ``Laver could have had 15 or 20.''

That's not dissing anyone or stepping out of character, Sampras said. Just responding to the surroundings.

``This is the most hectic of the Grand Slams,'' he said. ``You walk out at Wimbledon and you feel the history. You walk out here and you feel the electricity.''

The player Sampras beat at Wimbledon, 14th-seeded Goran Ivanisevic, had 23 aces in a 6-3, 6-4, 6-4 victory over Australia's Mark Woodforde.

Agassi, who is seeded eighth and could meet Sampras in the quarterfinals, kept Grosjean pinned to the baseline with forehands and slicing backhands. After wasting a string of break points in the third set, the 1994 Open champ finally broke for a 5-4 lead and served out the match at love.

``I like to be here,'' Agassi said of a tournament where he has played consistently well and a court he called super-fast.''

You have to prioritise tournaments, but this is certainly at the top of my list. This is a city where I've had some fantastic results.''

Defending women's champion Martina Hingis beat Aleksandra Olsza of Poland 6-2, 6-0. The Swiss teen-ager, who won the Australian Open in January has struggled recently and hopes the open will end that.

``I'm definitely not as confident as I was last year,'' Hingis said. ``This is the last Grand Slam of the year and you put all your energy into this tournament.''

Seles, a two-time open champion and a quarterfinalist a year ago, traded groundstrokes and errors with labat before blitzing through the tiebreak, then dominated the second set.

With her grunting subdued from her heyday and at times mixing with the squeals of a child in the stands Seles did not allow a point on her serve in the second set until she held triple match point. Labat tied it 40-all before Seles wrapped up the victory with a service winner and a lob that labat netted.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. DURBAN, Sept 1: A strong resolution condemning the US attack on Sudan will be passed by NAM during the two-day summit which starts here tomorrow.

For India, the bright side is that there will be no similar resolution on the US aggression on terrorist camps in Afghanistan, with which India is directly concerned. India has consistently sought to differentiate between America's actions in Sudan and Afghanistan.

The strongly worded draft resolution condemning the US for its ``unilateral and unwarranted action'' is despite the presence of US Assistant Secretary of State Princeton Leeman in Durban as an observer. The formal opening of the 12th Non-Aligned Movement meet tomorrow with representatives from 113 countries follows sessions between officials and foreign ministers over the last four days to finalise the draft resolutions.

The resolution against the US actions in Afghanistan could not be taken up since the Rabani government has not asked for a condemnation. Effectively, however, it is the Taliban and not the official Rabani government which is in control of the country.

Apart from the resolution on terrorism being in tune with India's own perception, India also scored a victory in members' acceptance of Egypt's proposal that there should be an international conference under the aegis of the United Nations to discuss how to combat terrorism globally.

While India has got its way on the NAM resolutions relating to terrorism, it still is uncertain whether India and Pakistan will be indirectly rebuked by NAM for their recent nuclear tests.

Till this evening, there was no final decision on the wording of the resolution on disarmament. While India will not be named, the phrasing of the resolution will be significant.

Several countries, including reportedly the host country South Africa, have been pressing for a resolution which will call for halting nuclear weaponisation and tacitly support the existing nuclear power structure under NPT and CTBT.

India's stand, however, is that its nuclear tests cannot be seen in isolation but in totality. India is pressing for non-discriminatory nuclear disarmament within a specified time frame.

While for India the focus this summit has been on the terrorism and nuclear issues, most African and Asian countries leaders felt that the summit's economic resolution is most important.

The draft of the NAM economic resolution stresses the need to set up a forum where developing countries can consider ways of re-structuring the international economy so that an economic crisis like that in South East Asia can be avoided.

At tomorrow's function, President Nelson Mandela will take over as chairman of NAM. This is seen as a significant point in NAM's history vindicating the movement's struggle against apartheid and other forms of discrimination over the past three-and-a-half decades.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MOSCOW, Sept 1: Acting Prime Minister Viktor Chernomyrdin today proposed a list of ministers for the President's approval, even as his own nomination remained shaky in the wake of the Communists' determination to reject again his candidature in the Duma.

Observers say there is little chance that Chernomyrdin's nomination will be approved. Communist leader Gennady Zyuganov said they would again vote against Chernomyrdin.

President Boris Yeltsin had asked Chernomyrdin to submit the list of Cabinet members to him, Public Russian Television (PRT) reported.

Quoting unnamed Kremlin insiders, it said that according to the list put forth by Chernomyrdin, foreign minister Yevgeny Primakov, interior minister Sergei Stepashin, defence minister Igor Sergeyev, and federal security head Vladimir Putin would retain their posts in the new Cabinet.

Before going into summit talks with US President Bill Clinton in the Kremlin today, Yeltsin made it clear that he would stand by Chernomyrdin.

``I insist that Chernomyrdin be, as soon as possible, approved as Prime Minister because it's impossible to have a temporary person at such a post,'' he said, greeting students at a Moscow school on the occasion of the first day of the academic year in Russia.

``I insist on the speedier confirmation of the candidate, because he is my nominee,'' noted Yeltsin, calling on the defiant Duma to approve Chenomyrdin in the second vote, scheduled for Monday.

Under the Constitution, Yeltsin can submit the same nomination thrice and if the Duma refuses to confirm thrice in a row, he is entitled to dissolve the House and call for an early election.

Zyuganov, however, made it clear that the Communists would again vote against Chernomyrdin. ``I am not concerned about the dissolution of the Duma. I am concerned about the dissolution of the country,'' he said, expressing the mood of majority of the deputies.

``He (Yeltsin) insisted on the appointment of Ilyushenko, (former prosecutor-general) and nominated his candidacy thrice. But Ilyushenko went straight to prison. He also insisted on the nomination of (Sergei) Kiriyenko, who brought the country on the verge of bankruptcy. Now he is insisting on Chernomyrdin. This is the molestation of Duma, rape of Russia,'' he said.

Speaking to commercial NTV, recently-appointed Russia's Federal Security chief Vladimir Putin said Yeltsin was not considering use of force to solve the economic problem of the country as claimed by many lawmakers.

Putin said he had no instructions from either the Kremlin or the government to use force to deal with Yeltsin's Communist rivals.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. CALCUTTA: Formidable East Bengal defeated strong contender Mohammedan Sporting 2-0 in the first round of the Tata Tea-IFA Super League soccer at Salt Lake Stadium here today.

The match was organised just to complete the formality as both these clubs along with Mohun Bagan had already assured their places in the second round of the league which would be contested between five top finishers of the first round.

Dipendu put East Bengal in the lead in 34th minute converting a spot kick which was awarded when he was tripped inside the box by Mohammedan defender Soumen Sarkar. East Bengal kept up their pressure and buttressed the margin three minutes later. This time Dipendu collected the ball following nice through by medio Tushar Rakshit who beat a couple of defenders and scored.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI, Sept 1: S Ramaswamy tamed the firepower of Nachiket Chawathe 17-21, 21-19, 21-15, 23-21, to win the men's singles title in the Clinic All-Clear sponsored Mumbai YMCA Major State Ranking Table Tennis tournament at the Sachivalaya Gymkhana here today.

Chandani Asher won the women's final, clawing back from a 1-2 deficit to defeat Deepali Zaveri 21-18, 10-21, 18-21, 21-15, 21-6. However, Chandani blew a 2-0 lead in the junior girls final that allowed Sherry Crawford to win a double (16-21, 16-21, 21-19, 15-21, 22-20). Sherry had won the sub-junior title earlier.

Eric Fernandes confirmed his status as the top-ranked junior in the absence of fancied Aditya Mahagaonkar to claim the boys title beating Kalpesh Mohite 21-15, 21-14, 18-21, 22-20.

Ramaswamy, who had to bear the brunt of Chawathe's attack in the first game, which resulted in a 17-21 loss.

However, Ramaswamy slowed down the game in the second, forcing Chawathe to jab and make errors. Then came his familiar rally. Down 16-19, Ramaswamy won the next five points to win the second game. After winning the third game, Ramaswamy faced a determined Chawathe in the fourth game.

Chawathe forced an 18-16 lead but Ramaswamy fought his way to take lead at 19-18. At 19-all, he hit a brilliant forehand topspin that gave him one match point. But Chawathe levelled the scores once again with a swift back-hand jab. After sharing two points each, Ramaswamy won the match on two errors to bring an end to a fine duel.

Chandani tried to defend too much after winning the first game and lost the second and third. When she play a bit more positive, it gave her results as she won the fourth game and then won 11 points consecutively in the decider as she moved from 6-4 to 17-4. Deepali's fight ended then and there.

Eric looked to have lost his concentration in the third game which he lost but he regained it on time to win the fourth game in extra points and claim his second title within a week. He had won the junior boys final in the state Ranking tournament at Anushakti Nagar on Saturday.

The girls final was exciting and it showed the spirit of Sherry Crawford. She fought back from the loss of the first two games to win the title. In the first two games, it as a battle of patience and it was won by Chandani. In her eagerness to attack, Sherry made several mistakes.

But a slight change in tactics turned the fortunes for her. Instead of attacking, she started pushing the ball and forced Chandani to attack paving way for more errors from the latter.

The decider was tight with the scores running close from 15 all onwards. Sherry had one match point but Chandani saved it only to lose the next two points for a 20-22 loss in the decider.

Yadav, Mamta triumph

Sagar Yadav of Mithibai and Mamta Prabhu of Mulund Commerce won the boys and girls singles titles in the Junior Collegiate Table Tennis championships at the University Pavilion here today.

Second seed Sagar defeated top seed Karan Kapoor 21-19, 21-11 while Mamta won 18-21, 21-19, 21-16 against Shriti Doshi of Podar. Shriti had knocked out top sed Janhavi Deshpande of Mulund Commerce in the semi-finals.

Vaze won the boys team championships beating KC 2-0 in the final while the strong Mulund Commerce trounced Mithibai by the same margin to claim the girls title.

RESULTS

Boys singles (final):

Sagar Yadav (Mithibai) bt Karan Kapoor (Jai Hind) 21-19, 21-11. Semis: Yadav bt V Srinivasan (A Energy) 21-12, 21-14; Kapoor bt Gunjan Wagle (Vaze) 21-16, 21-14.

Team championships (final):

Vaze bt KC College 2-0 (A Ganpatye bt A Khambatta 21-10, 24-22; G Wagle bt B Mistry 21-12, 29-27).

Girls singles (final:

Mamta Prabhu (Mulund Commerce) bt Shriti Doshi (Podar) 18-21, 21-19, 21-16. Semis:

Shriti bt Janhavi Deshpande (Mulund Commerce) 21-12, 21-12; Mamta bt Bindu Suvarna (Mithibai) 21-13, 21-13.

Team championships (final):

Mulund Commerce bt Mithibai 2-0 (J Deshpande bt B Suvarna 21-7, 21-9; M Prabhu bt S Shroff 21-6, 21-6).

Sujata, Nimkar top

Unseeded Niranjan Nimkar and second-seeded Sujata Hailinge won the men's and women's singles titles, repectively, in the first Dilip Babar-sponsored Thane District Ranking carrom tournament, organised by the Sainath Seva Mandal (Bhayander), today.

Sujata shocked top seed Shilpa Joshi, 25-12, 25-20 and Nimkar beat unseeded Shabbir Khan 25-8, 23-25, 25-3.

Other results:: Men's (semi-finals):

Niranjan Nimkar bt Sanjay Mande 25-1, 25-11; Shabbir Khan bt Priyang Vaidya 25-16, 25-17.

Women's (semi-finals):

Shilpa Joshi bt Minal Lele 11-25, 25-22, 25-24; Sujata Hailinge bt Sumedha Karkhanis 25-11, 24-25, 25-18.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. MUMBAI: Project 2000's Manisha Gawande was crowned the Best Athlete in the Freedom Road Race organised by Ryan International Sports Club at the St Lawrence High School yesterday. She was awarded the IC Colony Sports Club Trophy donated by former national long distance runner Dayanand Kumar.

More than 4000 athletes from 45 institutions took part in the competition co-sponsored by Corporation Bank and KV Pai, according to reports reaching here.

RESULTS

8 kms Men:

1 Vijay Kashte (LIC) 22.36 mins, 2 Mahesh Monde (VPM), Yogesh Satam (VPM)

Boys U-16:

Vivek Pratap Singh (Project 2000) 6:53, Deepak Thakur (Project 2000), 3 Dinesh Acharya (VPM)

U-14:

Rajul Paigaonkar (VPM) 9:16, Ashwin VK (United Athletes), Sameer Phople (VPM)

U-12:

Kailash Rao (VPM) 5:35:9, Khaiyam Malbari (VPM), Sumeet Roy (Holy Family, Andheri)

5 Kms Women:

V Satyabhama (WR) 12:47, Arti Malekar (Prabhodan), Sushma Chalke (WR)

Girls U-16:

Judy Verghese (Project 2000) 9:35, Sushma Amre (Om Track), Manisha Tawade (Prabhodan Krida Bhavan)

U-14:

Manisha Gawande (Project 2000) 9:33, Shimona D'Costa (United Athletes), Smita Salvi (Om Track)

U-12:

Aditi Tawade (Om Track) 6:28, Ramya Rao (VPM), Nafisa Khan (St Anne's, Borivli)

Andrew's champs

ST Andrew's Junior College beat G N Khalsa 2-0 to lift the title in the Bombay Division hockey boys under-19 Junior Colleges final of the Multigames City and Suburb competition, organised by the District Sports Govt of Maharashtra, at the BHA today.

Outside-left Gilroy D'Mello scored both the goals in a match totally dominated by Andrew's. Khalsa's had just one look at the goal in the first-half.

In the sixth minute, Eldridge Saldanha, playing in the deep defence, moved well up to send a neat diagonal hit to find an unmarked Gilroy in the dee. Gilroy collected neatly and sent a rasping shot giving the Khalsa goalkeeper no chance to effect a save.

Though Andrew's dominated, they were unable to convert their chances. The culprits being Galvin Alfonso, Marshall Nazareth and Roshan. Warren Carvalho, at centre half position, played on the heels of his forwards and distributed well.

In the 44th minute, Warren found Marshal who beat his left-half and sent in a cross. Gilroy, lying handy, collected the ball and scored with a reverse hit. Thereafter, the match was as good as won by Andrew's, though superior but goal shy.

Other results (all finals):

Boys under-17:

St Anne's, Orlem, 13 (Savio Nayak 5, A Sequeira 3, Snedden Pereira 3, Lawrence Soares, Adrian D'Souza) bt St Sebastian Goan 0.

Boys under-14:

St Andrew's, Bandra, 11 (Tyron Pereira 3, Dexter Manki 2, Farhan Khan 3, Jerry Almeida, Gavin Pereira, Naeem Jagani) bt St Sebastian Goan 0.

Girls under-19:

Khalsa 2 (Mamta Singh 2) bt St Andrew's College 0.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: Nina Pillai, widow of biscuit baron Rajan Pillai, today filed a petition of criminal contempt against the Director of the Central Bureau of Investigation (CBI) for not complying with the court orders and investigate the alleged conspiracy behind her husband's death in July, 1995.

The petition -- the first ever case of contempt against the CBI -- charged director Trinath Mishra and SP D P Singh of ``abuse of the process of the court calculated to hamper the due course of a judicial proceeding and the orderly administration of justice.''

Filed in the court of Chief Metropolitan Magistrate Prem Kumar today, the petition said the CBI had failed to comply with two of the court's orders dated August 12 and August 20, respectively, both directing the CBI to register a case and probe the conspiracy angle in the death of Rajan Pillai in Tihar jail. Nemi Chand Jain, better known as tantrik Chandraswamy, is the main accused in the case of conspiracy.

However, Nina Pillai's counsel Anitha Shenoy alleged that ``it is abundantly clear from the pattern of litigation initiated by the CBI that they are not interested in investigating the case and have therefore have tried every method to delay the proceeding.'' The CBI had filed its third application making the same request of adjournment for 15 days.

``There does not seem to be an end to these applications. This is nothing but a mockery of the court,'' Nina Pillai charged in the petition, adding, ``the repeated applications by the CBI despite refusal amounts to a daring `raid' on the court and is calculated to obstruct the due course of judicial proceeding and administration of justice, and thus falling squarely within the ambit of criminal contempt.''

Giving the details of the CBI conduct, the petition stated that on May 24, 1997 CMM Prem Kumar said that the CBI was a competent authority to investigate Pillai's death. The CBI was asked to file a compliance report before September 30, 1997. But, the petition added that in order to delay the compliance, the CBI filed an application for recall of the order which was dismissed on August 14, 1997.

The CBI then filed a revision application in the Delhi High Court saying that the lower court could not direct the agency to investigate a case. However, this too was dismissed by the High Court on August 7, 1998. The CBI, at the stage of passing the order by the High Court, requested for one month adjournment in order to file a Special Leave Petition (SLP) but this too was turned down.

In the meantime, CMM Prem Kumar too rejected the CBI application for adjournment on the plea of filing a SLP on August 12. However, Nina Pillai alleged that knowing CMM Prem Kumar was on leave, the CBI obtained an ex-parte order on August 20, giving them 15 days time to comply with the previous order of August 12. ``This is clearly and unequivocally an abuse of the process of the court,'' the petition alleged.

Nina Pillai stated that she filed an application for recall of the August 20 order and the court directed the CBI to register the case before 2 p.m. on August 31. However, yesterday again the CBI filed another application asking for 15 days time for filing the SLP. The application could not be heard and put off till September 4 as the CMM was on leave.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW DELHI, Sept 1: Union Minister of State for Urban Affairs Bandaru Dattatreya said it would have been better if Secretary Kiran Aggarwal had been transferred rather then being divested of all her responsibilities (while still in the ministry). Otherwise, he said, the ministry's functioning and the officials' morale suffered.

While emphasising that he had the best of relations with Jethmalani and that he agreed with all his policy decisions, Dattatreya has said that the present crisis in his ministry should have been handled in a more smooth manner.

Yesterday, his senior, Urban Affairs Minister Ram Jethmalani, had divested Secretary Kiran Aggarwal of all her powers as a sequel to differences over the MRTS project and the decision to re-allot a complex to MS Shoes in the Capital.

``He (Jethmalani) is a dynamic minister and wants his decisions to be implemented quickly but the bureaucracy works within a set framework and system. This is what has led to delays or objections to some of his decisions, on the matter of procedure,'' Dattatreya said.

``When a controversy becomes public, it is exploited by the Opposition to embarrass the government even though there may be no credibility in its attack,'' he said, referring to Janata Party leader Subramanian Swamy's accusations.

He said he agreed with Jethmalani's views on the controversy regarding the award of general consultancy for the Mass Rapid Transport System (MRTS). The credibility of the Delhi Metro Rail Corporation (DMRC) had come under a cloud over the manner in which the bid was awarded. He added that it was not correct for DMRC to question the authority of the Urban Affairs ministry in making inquiries in this regard.

Aggarwal, a 1964 batch officer of the Haryana cadre, is an old hand with the ministry, having joined as Secretary in January last year. Sources said that Jethmalani had been asking for her transfer for quite sometime but his move was resisted by the Prime Minister's Office and Cabinet Secretary Prabhat Kumar.

Meanwhile, Jethmalani today defended his decision to remove all important matters from Aggarwal's charge. Speaking to The Indian Express

, he said that he had some suspicions about the goings-on in the ministry and that a re-allocation of work among officials was required to increase coordination and efficiency.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. New Delhi, Sept 1: Investigating authorities today made simultaneous raids in three cities to put an end to what they believe is one of the biggest networks from which illegal international `call-back' phonecalls are made. According to the Videsh Sanchar Nigam Limited (VSNL) which participated in today's raids, the total value of such illegal `call-back' services is around Rs 800 crore per annum -- with today's network itself resulting in `call-backs' of around Rs 250 crore, it is clearly among the largest.

According to the raiding parties, from this evening itself, several of the flourishing illegal call-back services would have been disrupted. While there are hundreds of illegal call-back operators in the country -- the VSNL catches them from time to time, but they then change addresses -- all of them have to route their calls through a network, or a carrier. And this is what today's raid busted.

Today's raids were jointly conducted by VSNL, the Directorate of Revenue Intelligence, the Enforcement Directorate and the Mahanagar Telephone Nigam Limited (MTNL) in Delhi, Mumbai and Chennai. No arrests have been made so far as the owner of the operations is a US national and is untraceable. The company who's premises were raided and which conducted the call-back services is called Cyberfast Network Systems Corporation (CSNC).

Under a `call-back' service, users from India wishing to make a call to, say the US, call a local number which then connects them to the desired US number, and later bills them at a fraction of what one has to pay the VSNL. The way this is usually done is that a party which has a `dedicated' line to the US -- this facility is available from VSNL and is itself legal -- misuses this and allows outsiders to dial into this line and, then, connects them to the US. If calls have to be made to say, the UK, the user gets connected to the US, and then from there to the UK.

How lucrative this operation is can be judged from the fact that VSNL charges a mere Rs 15 lakh per year for providing a dedicated line, operators who misuse this can make crores. Dedicated lines are taken by several people such as computer companies or simply corporates who make a lot of telephone calls and want a secure and efficient telecommunication network. CSNC, for example, had a 512Kbps dedicated line from New Delhi to California.

Today's swoop showed that the three installations were completely unmanned, and had sophisticated equipment worth a few crores each, which actually routed the calls by using the dedicated VSNL line. Each of the installations had high-capacity modems which allowed most repairs/servicing of the network to be done through a telephone line. In all cases, some poorly-paid local help was hired to do some routine work. If, say 15 telephone lines went dead, then a message would be sent to the local help to have them repaired.

Interestingly, while VSNL says it has been writing to the DoT about the menace of call back services -- VSNL's international call traffic has been falling by around 5 per cent per year due to diversion to such `call-back' service providers -- it has taken little concrete action so far. Indeed, while its agreement with users of such dedicated lines allows for a penalty of Rs 4.5 crore for such misuse, it does not ask for any bank guarantee for this amount. Nor has it built in any clause in the agreement which would allow it to monitor such illegal traffic and actually charge for it.

Today's swoop in fact, was based on the intelligence efforts of the Central Economic Intelligence Bureau (CEIB) and not the VSNL. What the CEIB did was to get a list all users of dedicated lines from the VSNL, and then match this with the MTNL directory to see how many MTNL phones each one of these companies had. When it found that some of these companies had a huge number of MTNL lines -- CSNC had 70 in Delhi alone -- it asked MTNL to provide billing details. In CSNC's case, in Delhi alone 62 lakh local calls had been made in the last 18 months.

Clearly, something was wrong. Several visits to its office in Bhikaji Cama Place in New Delhi showed that there were no visitors to the small one-room office, incidentally always kept locked and guarded. And since there were no people in the office, this clearly couldn't be a small-time `call-back' service provider -- it was clearly something larger. Telecom experts were consulted, and pointed that this was probably one of the networks through which the `call backs larger. Telecom experts were consulted, and pointed that this was probably one.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. ST JOHN'S (ANTIGUA), Sept 1: Trinidadian fast bowler Ian Bishop, a stalwart of 43 Tests and 161 wickets, was named captain of a 15-member West Indies A team to tour India in November and December, the West Indies Cricket Board (WICB) announced today.

The 30-year-old Bishop, who lost form and his place during England's tour of the Caribbean earlier this year, is among five players on the team with test experience.

Leg-spinner Rawl Lewis, whose one Test cap was on the senior tour of Pakistan last winter, completes the quintet.

Right-handed batsmen Richard Smith, Keith Semple and 20-year-old wicket-keeper Wayne Phillip earn their first overseas assignments at this level.

The squad:

Ian Bishop (captain), Richard Smith (Trinidad Tobago); Sherwin Campbell, Floyd Reifer, Adrian Griffith, Courtney Browne, Pedro Collins (all Barbados); Wavel Hinds (Jamaica), Ramnaresh Sarwan, Neil McGarrell, Keith Semple, Reon King (all Guyana); Wayne Phillip, Rawl Lewis (both Windward Islands) and Carl Tuckett (Leeward Islands).

The schedule

November 18-20:

vs Board President's XI at Mumbai; Nov 23-25:

vs BCCI Youth Team at Pune; Nov 28-Dec 1:

1st Test at Wankhede Stadium, Mumbai; Dec 4-7:

2nd Test at Chennai; Dec 9:

One-day practice match at Bangalore; Dec 11:

1st ODI at Bangalore; Dec 13:

2nd ODI at Hyderabad; Dec 15: 3rd ODI at Ahmedabad.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK, SEPT 1: Americas' famed economic might staggered from stunning blows that sent its Dow Jones industrial average plummeting by a record 512 points on Monday. More volatility was in the air as the index remained unsteady in the opening hours on Tuesday casting a pall over a nation where more than half the population has a finger in the stock market pie.

After an unsteady but unspectacular start on Monday morning, the Dow Jones index began a dipping run in the late afternoon that saw it lose 450 points in two hours, including 250 points in just half an hour before close. Millions of investors found themselves poorer in the evening than at lunch time as the fall cleaned out 6.37 per cent from the index.

Many wondered if this was the end of the American economic honeymoon, a journey that had carried the Dow to a record of 9337.97 on July 17 when the manna of the 10,000 mark seemed imminent.

Instead, in six weeks of sustained selling since then, the slide has left share prices 19 per cent below their peak, vapourising more than $ 2.3 trillion in paper profits. In the last three trading sessions alone, the Dow has been shaved of a whopping 1100 points, wiping out allinvestor gains during the current year.Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. No one would make the mistake of saying the Vajpayee government is steering the economy in any particular direction. The last six months have been marked by so much policy confusion that only the determinedly blind would find some kind of orientation. The RSS evidently thinks otherwise and has fired a warning shot across the BJP's bows: change course or else. That it means business is obvious from the fact that a number of saffron organisations have formed a steering committee, the Swadeshi Vichar Manch (SVM), passed resolutions, announced a plan of action and told the BJP to watch out when Assembly elections are held in a couple of months in Delhi, Rajasthan, Madhya Pradesh and Mizoram. This spells trouble for policy-makers. The thinking in the SVM may be limited, its goals vague and its alternative prescriptions suspect. The charge of ``compromising the national interest'' may disguise a number of other realities such as business rivalries, disgruntled trade unions and gut-level hostility toward anyone whodoes not mouth swadeshi slogans. But who is to take this up with the RSS, now openly associated with the Swadeshi Jagran Manch's Pepsi-bashing notion of economics?

When the conscience-keeper of the BJP makes public its discontent in this fashion, the fear of a 1980s-style breach will be enough to pull the BJP up short. What are the government's options? It could decide that Indian manufactured foreign liquor is swadeshi whereas foreign liquor made by foreigners in India is abhorrent. That would be a relatively small price to pay for peace. But it will not be enough to divert the SVM from key issues on the reform agenda. It is hard to see how the cabinet, at no time oversupplied with pragmatists, is going to be able to prise the insurance sector open. The norms for foreign entry are already scarred by intra-BJP battles. With the RSS throwing its weight on the side of the nay-sayers, the ministerial committee might well find the issue more or less dead on the table. The more is the pity because insurance reform did appear to be creeping forward inch by inch despite the efforts of hardliners.

It could be counted as progress if economic policy-makers were taking two steps forward and one step backwards. This is not the case. Torn in diametrically opposite directions, they are going nowhere. Any radical thrusts from the finance or commerce ministries, or the Disinvestment Commission, are neutralised by retrogressive political pressures. Citing the national interest is no substitute for rigorous economic analysis. The swadeshi corps do not offer facts and sound arguments, they prefer to look for foreigners or quasi-foreigners under every bed. The complaints about the composition of the Prime Minister's economic and business advisory councils are a giveaway. Perhaps there are no names on either council that the SVM can identify with. So the feeling may be that the Sangh Parivar has been left out in the cold. Vajpayee could do two things. One, point out that there are many more points of view in India than the Parivar contains. Two, improve communications between the BJP and the RSS and make thelatter see reason.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. There may never be a dull moment in Russia, but the situation there is clearly now reaching a crescendo. For starters, as if symbolism was in short supply, is the spectacle of Bill Clinton and Boris Yeltsin the two emasculated leaders of the world's one present and one erstwhile superpower meeting to set Russia's colossal disaster to rights. It sums up, sadly but succinctly, how powerless either man is to halt Russia's nightmare and how each got himself into this mess with all the goodwill in the world. Boris Yeltsin today must be painfully conscious of chickens coming home to roost. As many difficulties as he faced in his dealings with Russia's notoriously recalcitrant parliament, Yeltsin has hardly done all he could to win its support. Monday gave the Duma its sweet revenge on a dictatorial president for the humiliation he heaped upon it only months ago by forcing it to rubber stamp his choice for prime minister: Sergei Kiriyenko, who later surprised his critics by his reformist conduct. At that time theDuma, which can reject the President's nomination for Prime Minister three times, was still intimidated by Yeltsin's power to dissolve it and call elections. The reason was simple. The President was more popular than the parliamentarians. The tables have since been spectacularly turned. Any threat of dissolving the Duma now must ring singularly hollow from a President who needs to be thankful for every day he spends in the Kremlin.Yet it would be unfair to the Duma to say that it is motivated entirely by vengeance. Chernomyrdin is hardly the man to lead Russia out of a crisis which was partly of his making. Yeltsin appointing him as acting Prime Minister was a shamefully self-serving act, and the Duma is right to reject it. Somehow it no longer seems realistic to expect Yeltsin to do any single thing right, and he is giving evidence by pressing Chernomyrdin's nomination a second time. The only wise course for him now is to accept the Duma's own suggestions for Prime Minister. For, even as Russia's politics falls apart alongside its economy, he should be trying to get the Duma behind him rather than opposite him. It could come to that, but meanwhile precious time is being squandered in a country which has no time to waste.

The West is desperately continuing to pin its hopes on Yeltsin, for it has no one else to pin them on. Witness Clinton's failure to call off his visit in spite of fears of comparison with Yeltsin, for that would only further damage Yeltsin. Yet Clinton is wrong. It is time the West realised that Yeltsin is no longer the man to push forward its agenda. It behoves it to stand aside and leave Russian politics to play itself out as it will. Of course there are huge risks in that for America and its allies, but they needed to have thought about that when they failed to give Russia unstinted support in its early days of reform. Yeltsin's replacement will more likely than not have communist or nationalist antecedents which so threaten the West. But it is helpless now. Russia will not even see a serious attempt to address its predicament till Yeltsin is gone. A firm leadership tackling Moscow's multifarious crises is in the world's interest as well as Russia's. It should not try to prop a President who has outlivedhis utility.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. US missile strikes on Khartoum and terrorist sites in and around Jalalabad have been seen as a new phenomenon in the international situation. There is cognition about their legitimacy and implications. Yet this operation was not unprecedented. The US has taken unilateral punitive military action in foreign territories as retaliation or a pre-emptive measure. Recent examples are Lebanon, Libya, Grenada, Panama and Haiti. The most large-scale action was in Iraq, though undertaken under Security Council resolutions. The military build-up to compel Iraq to accept continuous UN inspection of its military facilities in February was also in essence a unilateral US action.Memories are short, but India has been a target of such action. Nixon sent the aircraft carrier Enterprise to the region in 1971 to press India to stop its military operations against Pakistani forces in East Pakistan. Britain, France, Israel and Russia have also undertaken such intervention.

The only difference between the latest US strikes and the other examples is that the latter were reactions to political events or crises, whereas the US has now retaliated against what it identified as terrorist groups led by Osama bin Laden. America's allies and a number of South American, African and Asian countries have welcomed the decisive action against international terrorism. The majority of Muslim countries and many developing and non-aligned countries have criticised it as a violation of international law and interference in sovereign states. A third reaction is that the US should have ensured legitimacy for the strikes from the Security Council. This was articulated in Boris Yeltsin's outrage at not being consulted.

India's reactions have been mixed. According to information available so far, about 70 Tomahawk missiles were fired from the Arabian Sea and the Red Sea, traversing 1000 to 1500 miles in each case. These missiles overflew the coastal waters and air space of countries other than those which were targeted. The governments of the targeted areas were given no advance information. Nor were the countries whose coastal seas and air space were involved. The only exception was perhaps the visit of the Vice-Chairman of the US Joint Chief of Staff General Ralston to Pakistan to clarify that the missiles overflying their territory were not fired by India but were missiles from a ``friendly'' US aimed at specific targets. Reports state that while the missiles fired on the Khartoum chemical factory achieved pre-designated damage, those fired into Afghanistan destroyed more than the specific target, one or two even falling inside Pakistani territory and causing civilian casualties. The US says it targeted a group which hadcarried out anti-US terrorist activities; which bombed the American embassies in Tanzania and Kenya; which is likely to undertake further violent activities against US personnel and establishments; and that the US could take such action under the provisions of article 51 of the UN Charter.The first three reasons given are factual predications rooted in the judgment of the US government. The provisions of Article 51 are worth recalling: ``Nothing in the present (UN) charter shall impair the inherent right of individual or collective self-defence if an armed attack occurs against a member of the United Nations, until the Security Council has taken measures necessary to maintain international peace and security. Measures taken by members in the exercise of this right of self-defence shall be immediately reported to the Security Council and shall not in any way affect the authority and responsibility of the Security Council under the present Charter to take at any time such action as it deems necessary in order to maintain or restore international peace and security''. The US has not formally mentioned article 51 as the umbrella for its action. It has just implied that this is justification. But can the terrorist bombing of American embassies in third countries be perceived as an armed attack onUS territory? Nor has the US so far formally reported its action to the Security Council. In fact it has precluded, by implication, the necessity of the Security Council taking further action by categorically stating that the US will carry out further unilateral strikes against its terrorist enemies if necessary. The US may participate in Security Council proceedings on the complaint lodged by Sudan in the Council.

The political reality is that the UN has been given the go-by. In terms of normative requirements, America's actions can be considered illegal. It has violated the territorial jurisdiction of a number of countries. From one point of view it creates a dangerous and destabilising precedent. It is that if a state is powerful and immune from retaliatory action, it can indulge in unilateral and coercive military operations against other countries or sections of their people at will. Israel perhaps is the only other country which has undertaken similar anti-terrorist action, but it has never launched large-scale missile attacks on other countries. Most of its operations have been commando operations. If the US considers a military or security posture of a country like India a threat to its security or to its stipulations on peace and stability in our region, it would feel free to undertake long-distance military strikes against Indian targets. Even if this is far-fetched, the fact remains that Tomahawk missiles cancarry nuclear warheads. How does the international community cope with such a prospect? The Security Council and the General Assembly in its sessions between September and December should focus on this.

Indian reactions have been mixed. Atal Behari Vajpayee, without commenting directly, has stated that the American action provides the basis for unified efforts by the international community against terrorism. This presumably is the government reaction: unified support for the US action. America's action will certainly make it difficult for it to lecture us if we decided to take pre-emptive action against terrorist headquarters in Pakistan-occupied Kashmir. But George Fernandes has roundly criticised the Americans. So has the Communist Party, and Pranab Mukherjee of the Congress. Pakistan faces a contradictory predicament. If it supports the US, it risks strong domestic opposition and trouble from the Taliban and militant Afghan elements. If it opposes it, American pressure will debilitate it. It is also potentially vulnerable to India considering retaliatory strikes in PoK. India's primary stance should be to utilise this precedent for its security interests while remaining committed to broad stipulations ofinternational law.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. The Supreme Court has become an arena of intra-judicial warfare on the issue of appointments. One bench of the court is handling the issue of whether a direction (writ of mandamus) should be issued to the Union Government to make the appointments to the high courts and the apex court of the persons recommended by Chief Justice of India, M.M. Punchhi. Another nine-judge bench is handling the reference made by the BJP-led government through the President for clarifying its doubts about the interpretation of the apex court's own judgment, Supreme Court Advocates on Record vs Union of India, about judicial appointments. The net result for the moment is that silently and implicitly the government has asserted its right to veto the recommendations of the Chief Justice of India. With the Attorney General himself presenting the reference to the apex court, the primacy given to the judiciary over the ruling politicians by the Supreme Court Advocates on Record judgment stands erased as of now.

This is more so after the August 25 order of the nine-judge reference bench directing the Union Government to submit to it the written consultations held between Chief Justice Punchhi and his two senior colleagues Justices G.N. Ray and S.C. Agrawal for making the Supreme Court appointments and also with the various chief justices of high courts for filling in the high court vacancies. The order ends the shadow boxing over a reference that made no mention about the recommendations of Chief Justice Punchhi by linking the reference to the record of such recommendations. For the first time the apex court has indicated that it will get to the bottom of a Presidential Ref-erence by going beyond and even behind it. Hence in sum and substance the nine-judge bench has positioned itself to judicially review the acts of a Chief Justice of India and his two senior most colleagues at the time of making the recommendations. This is to be done by applying the standards laid down in the Supreme Court Advocates on Recordcase. If this is not to be done then there is little logic in calling for the confidential records of the recommendations made by Chief Justice Punchhi. But the irony is that the views of the nine-judge bench in the Reference are themselves recommendatory. It is upto the same ruling politicians who made the Reference to accept wholly or in part the views of the nine-judge bench finally expressed in the Reference. And if a different political party comes to power by the time the nine-judge bench answers the Reference then the fate of the answers really hangs in the political balance.

Hence from the making of the Reference to its end the political encirclement of the judiciary is complete. This encirclement remains even if the nine-judge Reference bench ultimately reiterates the Supreme Court Adv-ocates on Record Association judgment to ensure judicial primacy through the Chief Justice of India and two of his senior most colleagues. This is so because henceforth any set of ruling politicians can through the Attorney General appointed by them freeze a Chief Justice of India's recommendations for judicial appointments by simply making a reference without mentioning the recommendations. This innovative use of the constitutional provisions for a Presidential Reference is now a permanent weapon in the hands of ruling politicians to play with the Supreme Court.

The linking of Chief Justice Punchhi's recommendations with the Reference strikes at the ruling in the Supreme Court Advocates on Record case that such recommendations cannot be made part of a litigative debate through petitions challenging the appointments or the recommendations, except on the ground of absence of the written consultation between the chief justice of India, his two senior most colleagues and the high court Chief Justice. Without a stay order from the apex court and without mentioning Chief Justice Punchhi's recommendations in the Reference, the appointments stand stayed simply because the ruling politicians will neither openly challenge them by a regular petition nor issue warrants of appointments on those recommendations. Little enlightenment can be expected from the politically appointed Advocates General of each state government to whom notices have been issued. There is today no equivalent of the late H.M. Seervai who could fearlessly address the judges with the sharpness derived fromintellectual integrity.

The apex court can break this impasse by two steps. One, by realising that it is secrecy and lack of accountability of the Chief Justice of India in making appointments that has given rise to the problem. The documents of written consultation by the Chief Justice of India are kept secret from the public but are known to the ruling politicians who can then play with that information as it suits their political design. The political lawyer with a foot in the judicial door can make selective leaks. The moral test now is whether such documents are made public by the Reference bench. The second step is to realise that a national judiciary that determines the life of Indians is being fashioned not for judges and lawyers alone. That calls for participation of NGOs and professional associations other than participation of NGOS and professional associations. Only then will the Reference bench hear the relevant national vocabulary and idiom. The strength of the court lies in its association with the honest, educatedcitizenry.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. DORADO (Puerto Rico), Aug 31: The global tourism market is unlikely to recover until 2000 from the combined effects of the Asian economic crisis, the collapse of the Russian rouble, the stock market slump and new concerns about US-targeted terrorism, according to a leading tourism group.

``The world's major tourism-generating markets are under new pressures,'' president Geoffrey Lipman of the London-based World Travel & Tourism Council, told a business forum.

The travel group had originally forecast industry growth averaging 7 per cent a year through 2008. But the Asian economic slump began to take the steam out of the travel market in mid-1997, and the group now expects the market to remain flat through 1999.

``In the short term, I don't think we'll see any growth on global terms... There aren't very many positive signs out there,'' Lipman said late on Saturday ahead of Sunday's opening of the US Southern Governors' Association's three-day meeting with Central American presidents in Dorado, PuertoRico.

``At mid-year (1997) we saw a marginal downward shift in virtually every indicator and based on recent events, I expect we'll push recovery out to the beginning of the millennium,'' he said.

It will be the third quarter of 1998 before industry experts can gauge the full impact of the downturn in the Japanese economy, which continued to drive Asia even after the collapse of the Thai, Indonesian and other currencies, Lipman said.

The Asian collapse comes as Europe continues to struggle with high unemployment and nervous companies around the world limit corporate travel spending amid fears that last week's stock market sell-off could signal the onset of recession.

Fallout from the plunging rouble could drag down all of Eastern Europe, while Americans skittish over the embassy bombings in Africa early this month may become leery of international travel, he said.

Not all the forecasts were gloomy, however. ``The regional markets within themselves will still keep some buoyancy,'' hepredicted.

Despite the travel group's pessimism in the near term, it views the current problems as a downward blip in an industry whose economic importance has tripled in the last three decades and is still rising, Lipman said.

The World Travel & Tourism Council estimates that the economic impact of travel and tourism at 11 per cent of GDP on a global basis and expects that to rise to 12.5 per cent over the next decade.

``We still predict that travel and tourism will grow at twice the rate of GDP, will double in economic impact by 2010 and drive 100 million new jobs directly and indirectly across the world economy,'' Lipman said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. Singapore, Aug 31: Singapore will launch a unique, smart card-based toll system on Tuesday in its latest effort to prevent the traffic jams that choke other Southeast Asian cities.

Months of testing in every kind of tropical weather preceded the launch of the world's first Electronic Road Pricing (ERP) system, at a cost of Singapore $200 million (US$112 million).

The use of cars is discouraged in the tiny island state, where traffic jams would rapidly overwhelm the public facilities, and Singapore uses a system of tolls and permits to control the number of cars in its streets.

ERP eliminates the need for motorists to buy a monthly pass to enter the central business district or cruise main highways. Instead, vehicles are fitted with a smart card installed in a device on the dashboard.

Electronic devices, mounted on gantries above the road, deduct the appropriate charge as the cars pass under them. The old pass cost the ordinary motorist S$60 a month or S$2 to S$3 a day, depending on the destination andtiming of the journey. Motorists with no passes faced fines of up to S$70.

The new system will cost between 10 Singapore cents and S$3 each time an ordinary car enters the business district or moves onto a highway.

A consortium led by Philips Singapore, a unit of Philips Electronics NV, built the new system to the government's specification, with an accuracy of one error in 100,000 transactions.

It went into action on two main highways early this month. There have been no reports of problems on those roads, but the government had to apologise last week after 1,500 motorists were charged when workers carrying out an overnight test forgot to switch off a gantry.

For motorists, there's no escape from the ERP.

Each gantry can read the unique number of every wind screen unit, thusidentifying car and owner, and whether it has a card in it or not. A missing card means a fine of up to S$70.

The ERP seems likely to be accepted a lot more easily than the old system introduced in 1975. But there is some grumbling, nevertheless.

One taxi driver pointed to the list of rates varying from 15 Singapore cents to S$1, Which the ERP will charge depending on destination and time of day. ``Who's going to be able to remember all that? Still, we'll be passing the charge on to the passenger, so I suppose it doesn't matter much,'' he said.

Singaporeans have got used to the idea that owning a car is expensive. Besides paying for a car, they must also pay for the licence to own and use it, known as a certificate of entitlement (COE).

COEs, meant to limit the number of new cars on the roads were introduced in 1990. The government sells only a limited number at auction every month.

Car dealers or potential owners bid for them, with rates varying from S$20,000 to S$40,000, Depending on engine size.Each is valid for ten years, after which it must be renewed or the car replaced.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. PRAGUE, Aug 31: Since the fall of communism in the Eastern Europe in 1989, millions of tourists have discovered the myriad architectural and cultural gems of the Czech capital Prague.

But with the number of visitors slipping and valuable tourism revenues down, signs are growing that the city of Habsburg emperors, Franz Kafka and -- for a time -- Wolfgang Amadeus Mozart is losing its allure.

Figures from the Czech statistical office (CSU) show that nominal revenues from tourism dropped by 10.5 per cent to 3.65 billion crowns ($108.7 million) in 1997 from 4.08 billion in 1996. Inflation for the year was at 10 per cent, making the figures even more disappointing.

First quarter figures for 1998 are only mildly encouraging, up only 0.26 per cent over last year at 655.4 million crowns, but up 12 per cent over the 1996 figure, with inflation up to 13 per cent during the period this year.

Faced with the fall in revenues, which make up roughly six per cent of national income, the new Social Democratgovernment, which took office in July, has said it will draw up a comprehensive package of measures to develop tourism as a prime source of budget revenue.

The government pledges to create a new legislative framework, economic instruments and an interdepartmental approach. So far, it has revealed no details. Preliminary CSU numbers show that 48.2 million foreigners crossed the border in the first half of 1998 -- a drop of 2.3 per cent over last year.

The diminishing figures can be blamed partly on last summer's floods and a mild winter which left ski areas gasping for business, tourism officials said. But even Prague, which attracts more than 60 per cent of the country's tourist traffic, is feeling the pinch because of rising prices and a fall-off in the city's novelty value.

``Growth is not possible ad infinitum, we cannot expect much more of an increase.'' said Prague Information Service director Vaclav Novotny. ``A day in Prague costs 75 per cent of a day in Vienna. There is a price difference, butit is not so remarkable.''

But many in the business say the problem is more than a question of money. Prague has picked up an unenviable reputation for pickpockets on the metro, rampant car theft, and a growing drug scene.

President Vaclav Havel alluded to the problem in a radio address a year ago, contrasting the Czech Republic's reputation for political stability and economic reform successes with the fact that it was also known as a place where landlords and taxi drivers ripped off tourists.

Prague taxis have become notorious for overcharging. After a year of deregulation, the city council reimposed rules, including a maximum fare per kilometre. ``We are still receiving countless complaints about bad service and overcharging in restaurants,'' said head of marketing and research Daniel Mourek at the Czech Tourism Authority.

``The tradition of offering quality services to tourists disappeared under communism and today we are trying to create something that we have had no experience with for 40years,'' he explained.

Part of the problem is that, in the liberal atmosphere of the past eight years, the former strict national standards for hotels and restaurants were liberalised as well.

``Essentially, today any hotel or restaurant owner can put himself into any category he wants, and there is no one to tell him not to,'' said Novotny.

Director of tourism at the regional development ministry Miroslava Pavlikova said the ministry was trying to solve the problem with a better rating system.

``We are trying to convince everyone to accept one system of categorisation which would make it easier for travel bureaux and clients to orient themselves,'' she said, adding that hotel owners support the effort.

The ministry is also concerned at the double standard of pricing for Czechs and foreigners which many hotels still use.

``If two customers are charged differently (in hotels) because one is Czech and the other is foreigner, then presumably that is not right,'' Pavlikova said.

Despite the vitalinjection of their cash, the droves of tourists who choke the historic squares and bridges throughout the year are not universally welcomed.

``Ten years ago Prague was a dead town,'' Pavlikova said.``Suddenly you have this deluge of tourists clogging the streets -- it is not going to have a very positive effect on people's attitudes.''

A majority of visitors to the Czech Republic come to Prague and go no further. Officials say the country has a potential for tourism which is simply not being realised.

``The Czech Republic has 2,000 castles and chateaux, 40 historic town centres (architecturally protected medieval zones) and six cities or structures listed by UNESCO, which puts it on a par with France and Italy,'' she said.

However, industry insiders say attracting tourists was a low priority for the previous Czech government, which spent much less on marketing than its East European counterparts.

In 1995, it appropriated about $3 million for the Czech Tourism Authority, compared to Hungary's $9.3million and Poland's $10.5 million.

At 107 million crowns, the 1998 budget is only slightly higher. ``This number is absolutely inadequate if you compare it to other organisations of this type abroad,'' Pavlikova said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. Vizag unit to take control of utilities: Vizag AG said on Monday that its Bayernwerk AG power utility had reached an agreement to take over managerial control of three regional utilities in which it already holds stakes. Bayernwerk planned to take over Contigas Deutsche EnergieAG, OBAG AG and EVO Energieversorgung Oberfranken AG, and has agreed on control and profit-transfer contracts as well as cash payments to the outstanding shareholders of each of the three firms, Vizag said in a statement.

Bank Plus investor urges sale: Bank Plus Corp investor LaSalle Financial Partners said the company should seek a buyer, said an article in the August 31 issue of Barron's. LaSalle, which owns 1.4 million shares or 7.3 per cent of Bank Plus, said it will oppose any moves by the company to acquire mortgage banking or loan-origination companies. LaSalle's urging mirrors sentiments recently expressed by another investor, Jeffrey Gendell, who owns 9.9 per cent of the company.

BT plans South Koreanmove: British Telecom Plc is preparing to invest some 300 million pounds ($496 million) in a 20-per cent stake in South Korean cellular phone company LG Telecom, according to a report in the Independent newspaper. The paper said the move would be a significant step into South east Asian telecom markets for BT, which was seeking approval from the South Korean information and communications ministry for the bid. It said a deal could be struck by October. A spokesman for BT declined comment, saying the report was no more than a speculative story.

Audi sees 600,000 car sales in 98: Volkswagen AG's luxury car subsidiary Audi said it expects profit on sales to rise in 1998 and forecast 1998 group sales would climb to 600,000 vehicles from 546,436 in 1997. Audi also said it expected its profit to rise at least in line with sales this year. The company also expects its market share in Germany to climb to around seven per cent after netting 6.4 per cent of domestic market share in the first half of theyear, chairman Franz-Josef Paefgen said at an Audi TT-Coupe presentation.

`IMF has funds for other bailouts': With financial turmoil spreading fast, the International Monetary Fund (IMF) has toned down months of warnings it could be crippled by a cash shortage, hoping to soothe markets but risking a congressional rebuff as it seeks new US funding. IMF managing director Michel Camdessus told a news conference on Friday that the lending agency could arrange new loan packages to bail out countries in crisis despite past warnings to Congress that its cash reserves might be too low. "Much has been said about the remaining usable resources of the IMF AND the IMF's response to future requests for assistance," Camdessus said. Assurances that the IMF could arrange new bailouts may comfort panic-stricken markets and countries affected by the crises in Russia and Asia, but they could also give ammunition to the IMF's congressional critics.

Duma to vote on Russian PM: The state Duma, Russia's lowerhouse of parliament, starts voting procedures on Monday on whether to endorse president Boris Yeltsin's nominee for prime minister, Viktor Chernomyrdin. If the house votes in favour, Chernomyrdin (60), will be automatically installed in office and Yeltsin, after consulting the new premier, can formally appoint government ministers. The Kremlin offered at the weekend to give the prime minister and parliament much more say in the appointment of ministers, but this is yet to be confirmed and was conditional on Duma approving Chernomyrdin. If Duma votes against, in this first hearing, Yeltsin can nominate Chernomyrdin--or another canditate-- twice more. If Duma rejects the three nominations, the constitution demands that Yeltsin dissolve the Duma, appoint a prime minister and call a new parliamentary election.

Godrej Soaps ropes in McKinsey & Co

Godrej Soaps has roped in international consultants McKinsey & Co and Arthur Andersen to advise on strategic steps for its subsidiary Godrej Agrovet, in whichit holds 57 per cent. While McKinsey will advise Godrej Agrovet on making its poultry business more profitable, Arthur Andersen will give recommendations on cost reduction and business management.

ITDC to speed up divestment process:

The government-owned ITDC Hotels, in a bid to speed up its disinvestment-cum-restructuring process, has asked its corporate advisor SBI Caps to scout around for a global advisor. Around eight firms, including AF Ferguson and Citibank, have been short-listed to make a presentation to an inter-ministerial task force on September 8 in the capital.

New Delhi, Namibia ink strategic pacts:

India and Namibia on Monday signed four "umbrella" agreements to boost bilateral trade co-operation. The agreements, among other things, cover technology co-operation and agricultural research. Over time, the pacts, will help increase the level of Indo-Namibian trade, which is only Rs 6 crore both ways at present.

RBI cuts its forward-contract liabilities:

The ReserveBank of India has reduced its forward-contract liabilities by $515 million in the last 10 days of August following the inflow of Resurgent India Bonds' proceeds. The reduction in the liabilites will continue to exert pressure on the forward rates, dealers said. The central bank's decision to reduce its forward contracts will immensely benefit exporters, they added.

Chemists to go on indefinite strike:

The Maharashtra State Chemists & Druggists Association has decided to go on an indefinite strike from Monday midnight to demand abolition of the octroi duty imposed by the Brihanmumbai Municipal Corporation (BMC). The All India Organisation of Chemists & Druggists president Dilip Mehta said the BMC has imposed a 2 per cent octroi on medicines, which will push up their costs and hit the industry's growth.

Enron plans to float two new subsidiaries:

Enron International plans to float two new fully owned subsidiaries for financial-risk management business in the oil, gas and power sectors andfor renovation and modernisation of the country's power plants. While plans for setting up the renovation and modernisation subsidiary will be finalised soon, the risk-management arm will take some more time.

SAP AG to set up subsidiary:

German software major SAP AG is setting up a subsidiary SAP Laboratories India, its second in the country. The subsidiary will undertake development activities for its core product's future releases. SAP AG is the world leader in enterprise resource planning packages. A senior official said SAP AG would invest DM 10 million in the subsidiary over the next three years, which would be invested in infrastructure and manpower.

UTI faces redemptions:

Unit Trust of India has faced repurchases and redemptions worth Rs 2,000 crore in the first two months of its current financial year. In contrast, it has mobilised about Rs 5,000 crore during this period. The mobilisation from US-64 has fallen to Rs 200 crore in August, against Rs 3,100 crore in July, during thespecial offer price of Rs 14.

SBI to recast seven associate banks:

State Bank of India (SBI) will restructure its seven associate banks, which were kept out of the ambit of global consultancy firm McKinsey & Co's, recast strategy for the bank. Deputy managing director and head of associate banks SN Sawaikar said a consultant will be appointed for the purpose. SBI is weighing the pros and cons of merging the associate banks with itself to add to its balance-sheet strength, or merge them to create another big entity.

Patel, Piramal re-elected on SBI board

IG Patel and Ajay G Piramal were re-elected on the 19-member State Bank board on Monday. Patel and Piramal have had a two-year term on the board representing shareholders. They were elected under section 19(c) of the SBI Act. Two other directors representing shareholders on the board include S Ramani and Shashikant B Garware.

Bupa to conduct study for IFC:

The International Finance Corporation (IFC) has appointed Bupa, aleading health-insurance company in the UK, to conduct a study on priavte health- insurance opportunities in the country. IFC is conducting evaluating future opportunities in the private medical insurance sector.

Service chiefs' retirement age raised;

The government has raised the retirement age of the three service chiefs to 62 years from the present 60. The tenure of appointment, however, will continue to be three years. Earlier, the centre raised the retirement age of civilian employees by two years, acting on the fifth pay commission's recommendations.

Manch flays Vajpayee over councils:

The Swadeshi Jagaran Manch has flayed prime minister Vajpayee for constituting the economic and trade advisory councils. Charging the government with staffing these councils with "persons hostile to the idea of swadeshi", the Manch has also expressed concern over the recent top-level changes in the bureaucracy.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. NEW YORK, Aug 31: Global rating agency Moody's today lowered ratings of China International Trust and Investment Corp and six other government-run funding bodies, affecting about $3.4 billion in debt securities.

The action was prompted by the continuing decline of the financial fundamentals of these government corporations and their worsening operating environments, Moody's said. It also reflects the increasing pressures on the financial resources of the firms' government owners and their weakened ability to support them, the agency said.

Severe problems of the state-owned enterprises in China and the slowing national and regional economies, affected by the prevailing Asian crisis have led to a sharp deterioration their investment and loan quality, the rating agency said.

As a result, many of these corporations are facing severe difficulties in garnering repayments from borrowers and this in turn is affecting their disbursals. Moreover, they have significant foreign borrowings which constitute between20-75 per cent of their total funding, the agency said while pointing out that such heavy reliance made the corporations vulnerable to exchange rate fluctuations and global investor confidence.

Besides China International, Moody's has also downgraded trust and investment corporations of Fujian, Guangdong, Shandong, Shanghai, Shenzhen and Tianjin. The rating agency said outlook for this sector remains negative, reflecting concerns over a possible deterioration in financial strength and conditions in China.

Consolidation of the sector, now underway, could also involve the larger corporations taking over smaller ones, usually deeply impaired ones, thus undermining their financial position, Moody's said. The agency said though the funding corporations continue to be supported by their respective government owners, the strength of such support has weakened with increasingly difficult conditions in China.

This has led to a slowdown in the governmental fiscal revenue growth and a sharp rise in fiscalexpenditures that are needed to boost the slowing economy and to ease rising unemployment.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. SINGAPORE, Aug 31: Russia's financial crisis and recent torrential rains will be the main factors in Southeast Asia's rubber market this week, regional traders said on Monday.

Some traders said the market would receive more blows from the Russian crisis, which has brought down world commodities prices.

But some saw a slightly firm tone for the market over recent torrential rains, which may reduce rubber output. Weather experts have said that La Nina, a weather phenomenon which followed the El Nino episode that seared much of Asia with drought last year, has arrived in Asia and will cause heavy rainfall for much of the rest of 1998.

"If the rains continue, rubber output will be affected. We have to see the rain situation, especially in Thailand, in coming weeks," said one Singapore-based trader. "This is probably the only bullish news for the market," the trader said. But he saw limited help if there was an output reduction as there were still no signs of a recovery in demand.

Traders in Thailand, theworld's biggest rubber producer and exporter, said the uncertainty of the Japanese yen and Russia's financial woes were the main concerns. "I think the price will hang on the currency exchange of the baht and yen," said one trader from one major trading house in Thailand's southern Hat Yai.

There was talk that the International Natural Rubber Organisation (INRO) was running out of funds and started to offer RSS3 rubber, said one trader from Trang province. INRO, which groups major producers and consumers, bought about 20,000 tonnes of rubber from Malaysia, Indonesia and Thailand earlier this month in its first buying intervention since December 1993.

The market-stabilising buying by INRO failed to lift saggy rubber prices. However, according to an INRO document obtained by Reuters in Bangkok, INRO also sought to offer various grades of September/October shipment earlier this month.

In Malaysia, traders expected prices to move narrowly this week, but they said the near-term trend could be firm onexpectations of a supply shortfall due to the approaching rains.

A trader at a Malaysian plantation firm said weather was the main factor for the market and he expected prices to move in tight ranges on a lack of inquiries.

"The market is closely watching weather conditions rather than anything else," the trader said. "Rainfalls are seen in the morning as well as in the afternoon. This could hit output and supply would get tighter and tighter from August onwards," he said.

Consumers from both Europe and Asia stayed on the sidelines despite low prices due to a slump in the car industry and Russia's crisis further dampening sentiment, traders said. Malaysian traders said they did not expect much impact from currencies movement on the market which already lacked liquidity.

Trade in Indonesia, the other main Asian rubber producer, was also bearish. "The market has acknowledged that INRO will not enter the market again, but frankly speaking I don't think INRO is capable of stabilising prices due to a lackof funds," said one Jakarta-based trader.

He said the market was extremely quiet last week and was not expected to improve. At the end of last week, Thai RSS3 rubber for December delivery was quoted at around 64 US cents a kg. January 1999 shipment was quoted at 65.50 cents.

Malaysia's benchmark, September International Ones RSS buyer ended at 263 Malaysian cents (62.6 US cents) a kg and September SMR 20 buyer was at 236.50.

Prices for October shipment were quoted at 25.00 US cents/lb fob Medan, Surabaya and Palembang. In Padang, the price was quoted at 25.00 and in Pontianak and Padang at 24.75.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd. AMSTERDAM, Aug 31: Dutch postal and courier group TNT Post Group reported an 18 per cent rise in first-half 1998 net profit on Monday and said second-half results would be in line with the first six months.

TNT, which split from Dutch telecommunications firm Koninklijke PTT Nederland in June, saw net profit grow to 365 million guilders in the first half, up from 310 million in the same period last year.

The results fell within expectations of analysts polled by Reuters, who had forecast profits of 328-402 million guilders.

"Assuming present exchange rates, the board of management further expects for the remainder of the year that net income will develop in line with the first six months of 1998," the firm said.

TNT revenues increased by eight per cent to 7.95 billion guilders and operating profit climbed nine per cent to 685 million. The logistics division showed the strongest growth, with revenue up 20.9 per cent to 1.1 billion guilders and earnings from operations jumping 20 per cent to 72million.

TNT said it had signed a five-year contract with Fiat to provide inbound logistics for manufacturing in northern Italy and also signed new contracts with the auto maker in Brazil and Poland.

"The combination of these new contracts with the existing outbound logistics contracts will provide one of the biggest automotive logistics service offerings in the world," TNT said.

In the Express division, solid growth in Europe was offset by the Asian currency crisis and a restructuring programme in the United States.

Express revenues rose by 6.3 per cent to 3.19 billion guilders and earnings from operations increased 12.7 per cent to 142 million guilders. "In Asia, the business grew nearly 10 per cent, but this could not compensate for the negative foreign exchange effect of 14 per cent due to the Asian currency crisis," TNT said.

The mail division was responsible for a 6.7 per cent hike in revenues to 3.8 billion guilders, due to higher volumes in business and direct mail. Earnings from operationswere up 7.9 per cent to 809 million guilders.

TNT said it used cash received from the demerger with KPN to pay off 2.1 billion guilders of debt, consisting of a 1.7 billion revolving credit facility and a high interest Swiss bond loan for 400 million. TNT is listed in Amsterdam, New York, London and Frankfurt.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.

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