The Hindu Business Line
TWENTY YEARS AGO TODAY
APRIL 3, 1999
Differential pricing for PDS sugar likely
Differential pricing in sugar supplied through the Public Distribution System (PDS) — on the lines of foodgrains — for population below and above the poverty line is on the anvil. The Cabinet Committee on Prices (CCP) will take a final view after consulting State Governments. Senior officials said that the proposed move will reduce the sugar subsidy bill by around Rs. 150 crores from the Rs. 360-crore level budgeted for 1999-2000. In effect, this would mean raising the issue price of sugar supplied through the PDS for the APL segment closer to the open market price. Currently, the issue price is a uniform Rs. 12 per kg as against the wholesale price of around Rs. 15-16 per kg.
Rossell set to sell its largest estate
Rossell Industries Ltd (erstwhile Jokai India Ltd), controlled by Mr. Y.K.Modi, is in an advanced stage of negotiations for the sale of its largest tea estate — Koilamari. Rossell has eight tea gardens — all in Assam. According to reliable sources in the tea industry, Rossell is in negotiation with the city-based M.K.Shah Exports Ltd, which has a tea garden in the Dooars region of West Bengal. Shah Exports is a merchant exporter of tea.
Steel projects: FIs, banks clash over cash flows
A major tussle has broken out between the financial institutions and banks over the first right on the cash flows of steel corporates. This is a major setback for the steel manufacturers who were expecting to complete their projects following IDBI's decision to grant additional loans. One of the main conditions imposed by the FIs for granting additional loans was that the steel companies open a Trust and Retention (T&R) account, with FIs having the first charge.