New Delhi, Sri Lanka sign free trade pact: Overcoming last-minute hitches, India and Sri Lanka on Monday signed a landmark free trade pact paving the way for phased reduction in tariffs and enhanced economic cooperation between the two countries. President Chandrika Kumaratunga and prime minister Atal Bihari Vajpayee signed the agreement after they gave "appropriate instructions" to respective officials for firming it up. The agreement, the first of its kind in Saarc countries, provides for a three-yearphaseout of all tariffs by India and removal of tariffs by Sri Lanka over eight years. It will come into effect from March 1.

Lever's VRS aims at sharp cut in work force: Hindustan Lever has launched sweeping voluntary retirement schemes at locations across the country, which is expected to sharply reduce the giant Unilever subsidiary's work force. While the workers' union alleged "pressure tactics" to force the VRS on them, Lever maintained that the exercise was entirely voluntary.

Forty-one granted ISP licences: Basic telephony major MTNL, Indusind Cable Television, Zee Telefilms, Bharti Communications, Ortel Communications, Suchibh Communications and 35 others have received Internet service provider licences from DoT. Department sources said that the licences had been issued on the basis of the New Internet Policy announced on November 6. The policy allows private ISPs to set up their own gateways, does away with the licence fee, and extends the term of the licence to 15 years. The ban onInternet telephony, however, continues.

Prasar Bharati Ordinance may not be repromulgated: The centre may not repromulgate the Prasar Bharati Ordinance issued under Sushma Swaraj. The Prasar Bharati bill was not tabled in the last session of parliament, and in approximately two weeks' time, the ordinance will lapse. AI employees demand reduction in retirement age: Air India employees have urged the management to reduce the retirement age to 58 years from the present 60. The proposal, an effort of various unions, is being examined. The demand was made at a recent joint meeting this month, where unions sought restoration of 58 years as the retirement age.

Kilburn Chemicals seeks shareholder nod: Kilburn Chemicals, a Williamson Magor group company, has sought shareholder approval for a 50 per cent reduction in its equity capital as part of its rehabilitation package approved by financial institutions. Its net worth has eroded by more than 50 per cent.

Hitachi picks up 35.2% stake inAmtrex: Hitachi Ltd of Japan on Monday announced that it will pick up a 35.2 per cent stake in the Ahmedabad-based Lalbhai family-controlled Amtrex Appliances Ltd. The shares will be issued through preferential allotment of equity shares. Hitachi is bringing in Rs 16 crore to acquire 51.66 lakh shares in Amtrex. The company will pay a premium of Rs 21 on each equity share of Rs 10.

Matrix, Planetasia in tie-up for news information: Planetasia, a joint venture between Microland Ltd and ICICI Venture Capital and Matrix, a Kotak Mahindra group company, will work together to bring news information to web-sites, intranets and extranets.

Book-building bye-laws may be relaxed: The finance ministry has mooted relaxation of entry barriers and changes in the book-building bye-laws to kickstart the long-dormant domestic primary market in equities. The change is to strengthen the underwriting facilities by making the members of the syndicate book builders directly underwrite a portion of the publicissue and make them responsible directly to Sebi to fulfil the conditions of underwriting.

Trade deficit doubles to $4.9 bn during April-September: The country's trade deficit has doubled to $4.9 billion during the first six months of fiscal '99, compared with $2.49 billion during the corresponding period the last fiscal. The first six months' increase in trade deficit is higher than the last full year's rise.