For the first time in 11 weeks, the inflation rate crossed the 2-per cent barrier at 2.02 per cent on September 11, mainly due to a spurt in the prices of food articles and non-food articles. Inflation was 1.94 per cent the week before. It has been witnessing an uptrend for the fourth successive week. The latest 0.08-per cent rise was on account of a jump in the prices of tea, arhar, rice bran oil, solvent-extracted groundnut oil, caprolactum and zinc. This buoyancy was despite the considerable fall in prices of sunflower, raw rubber, linseed oil and spanners.

Cairn to raise equity in Tata venture

Cairn Energy India, a unit of Cairn Energy Plc, plans to raise its equity in one of its domestic joint ventures to 75 per cent by buying 30 per cent from its partner Tata Petrodyne. Cairn and Tata Petrodyne hold 45 per cent each in the firm, which is exploring for oil in the Cambay Basin block off the western state of Gujarat.

Customs mopup onupswing

The customs revenue mopup during September is likely to go up by more than 25 per cent as compared to the same month last year due to rising global crude oil prices. Senior revenue department officials said collection figures in the first two weeks of September 1999 indicated that customs duty realisation this month would be about Rs 1,000 crore more than that of last month's collections.

SBI seeks Y2K okay from borrowers

State Bank of India (SBI) has directed all borrowers with a limit of over Rs 10 lakh to submit their Y2K compliance level immediately. Confirming the move, SBI chief general manager, systems and technology, and in-charge of the Y2K project, K Seshasayi said that the bank was worried about the Y2K compliance level of its customers.

Oil PSUs to step up payout

The finance ministry is reported to have arm-twisted three oil public-sector units -- Gas Authority of India, Indian Oil Corporation, and Oil and Natural Gas Corporation -- to shell out an extra Rs 864crore as dividend payout for 1998-99. This is despite near-stagnant profits for the year by two of the three majors.

Private firms dividend payment up

The private corporate sector paid Rs 3,799 crore by way of dividend in 1998-99, up 7.7 per cent from Rs 3,526 crore in 1997-98. According to a study, the net sales of the 300 companies rose 9 per cent during 1998-99 and net profit increased by 3.8 per cent from Rs 12,141 crore to Rs 12,601 crore. So the ratio of dividends to net profit rose from 29.05 per cent in 1997-98 to 30.15 per cent in 1998-99.

Nicholas Piramal bulk drugs business

The fast-growing Nicholas Piramal plans to gradually "disinvest" from the bulk drugs business, Global Bulk Drugs and Fine Chemicals, as part of an overall group strategy to enhance shareholder value. Though it had already zeroed in on an American company to partner it in the area of bulks, the deal, sources said, would fructify only after Nicholas Piramal's manufacturing facility at Pithampur, in MadhyaPradesh, receives a US FDA certification.

RCF mulls equity recast

Rashtriya Chemicals & Fertilizers (RCF), the Rs 2,061-crore state-owned company, is planning to restructure its equity base prior to the proposed disinvestment. The process may involve conversion of a substantial chunk of the Rs 551-crore share capital into long-term debt.

Bilt plans Rs 125cr rights issue

Ballarpur Industries Ltd plans to come out with a rights issue of around Rs 125 crore soon after completion of its restructuring programme by April next year. The rights issue is being planned for funding the modernisation of various units as well as capacity expansion. Bilt managing director Gautam Thapar said that the restructuring exercise is expected to end by April 2000.

GM mulls small car for India

General Motor Corporation of the US is planning to introduce a small car and a super luxury saloon in India, a senior company executive said. Besides, its entire line-up of multi-utility vehicles and 4-wheeldrives is also being studied to finalise a vehicle for India, General Motors Asia Pacific executive-in-charge, operations, Kevin E Wale, said here.

SBI FCNR (B) deposits

State Bank India (SBI) has announced an across-the-board hike in interest rates on its FCNR (B) deposits by 0.25 per cent for all maturities effective September 27. There will, however, be no change in the interest on Japanese yen deposits. In the case of dollar deposits, interest rate for maturities of six months and above but less than one year have been increased to 5 per cent.

Food processing under priority sector

The food processing industry in the country has been brought under the priority sector for purposes of lending by financial institutions, Union ministry of food processing industries secretary PS Bhatnagar said on Sunday. He told newsmen here that the industry had found a place in the priority sector along with small scale industries, agriculture and infotech.

Compiled by Samuel Bodapaty