The ministry of finance has reaffirmed that all real estate consultants will have to pay an additional 5 per cent service tax on feasibility reports, techno-economic studies and marketing of projects for real estate developers. The service tax will come into effect from October 16, 1998.

Bangladesh devalues currency:

The Bangladeshi taka has been devalued by three per cent to boost exports. The Bangladesh Bank said on Thursday that the new buying and selling rates effective from Sunday would be taka 48.35 and taka 48.65 respectively to the US dollar. With the devaluation the dollar has become costlier by taka 1.40.

Prime rights issue mobilisation falls 83%:

Decline in primary capital market has further accentuated this fiscal with mobilisation from rights issues falling by an alarming 83 per cent in the first half of 1998-99 to Rs. 235 crore. Compared to this, the mobilisation in the first half of last year was to the tune of Rs. 1,376 crore,Prime database, a leading primary market monitor said.

Corporate Briefing

Lakme not to increase prices:

Lakme Lever Ltd, the wholly-owned subsidiary of Hindustan Lever Ltd, has decided not to increase prices this year to keep up volumes growth in recessionary market conditions. The move is aimed at covering up margins, said analysts, who feel that the industry has been impacted by a slowdown. Given that the company is posting a higher than industry growth, analysts feel this will roughly translate into a minimum of 25 per cent growth in turnover this year.

SRF hives off lenses business in two JVs:

SRF Ltd has hived off its plastic ophthalmic lenses business into two joint ventures with Essilor of France and Sola of USA as part its plan to shed non-core businesses. The deal will fetch SRF Rs 12 crore. Essilor International SA and Sola will hold 45 per cent stake each in the new manufacturing joint venture company Indian Ophthalmic Lenses Manufacturing Company Pvt Ltd. SRF willhave only 10 per cent stake.

Leela group alleges `negative campaign':

The Leela group has claimed that vested interests were forging letters in the names of MPs against the group to prevent them from setting up a five star hotel in the capital on land purchased from Housing & Urban Development Corporation.

ALF: securitisation for survival:

Ashok Leyland Finance, the Hinduja group company and one of the top 10 non-banking financial companies in India, has chalked out a survival strategy based on consolidation and growth. A strategy study by the Boston Consulting Group has helped ALF fix on securitisation as its main weapon.

JK Helene Curtis to double retail reach:

JK Helene Curtis has decided on a twin-track strategy to chart out a growth route: first, to use the strength of its lead brands Park Avenue and Premium, and second, to double its retail reach. The company, a subsidiary of Raymond Ltd, plans to launch eight products under its two umbrella brands -- `ParkAvenue' and `Premium'.

Economy Briefing

HDFC Bank's profit rises 26%:

HDFC Bank has recorded a 26 per cent rise in net profit for the half-year ended September 30, 1998. The bank has posted a net profit of Rs 42.17 crore compared to Rs 33.51 crore in the year-ago period. Total income during the first half of the current year stood at Rs 197.38 crore against Rs 142.52 crore in the corresponding period in the previous year, indicating a growth of over 38 per cent. HDFC Bank has reported a profit before tax of Rs 60.51 crore against Rs 48.68 crore for the half year ended September 30, 1997.

DGFT extends time limit for credit:

The Director General of Foreign Trade has extended the time limit for grant of credit under the old pass book scheme. Credit under this scheme wherever admissible, has to be given latest by October 31. DGFT had earlier issued instructions that credit under this scheme must be finalised before September 30. A month's extension is being allowed as severalcompanies have requested for more time.

MSEB bond issue closing date extended

The Rs 150 crore bond issue of the Maharashtra State Electricity Board, which was to close on October 7, has been extended to the third week of the month. This has been done to "enable the board to generate more funds" to buy a 30 per cent stake in the Dabhol Power Company and also part finance its own projects.

Pak traders gain from India's onion shortage:

Pakistani traders are cashing in on India's onion shortage by dispatching thousands of bags of the commodity across the border thereby sending prices shooting in that country as well. About 1.6 million kg of onion have been exported to India in recent weeks. Onion prices in Pakistan have gone up from Rs16 a kg to Rs.24 in recent weeks.

ICICI Bank at top in deposits:

ICICI Bank has overtaken IndusInd Bank by mobilising the highest quantum of deposits among nine new generation private sector banks. Global Trust Bank has also surpassed IndusIndwhich has now been relegated to third position (as on September 30, 1998) in terms of deposit mobilisation. ICICI Bank's deposits base stood at Rs 4,366 crore in September against IndusInd's Rs 3,658 crore. Global Trust Bank has notched up a deposits base of Rs 3,850 crore.

Jute exchange rudderless due to court orders:

The new board of the East India Jute & Hessian Exchange, headed by its new president Bhag Chand Jain, has not been able to take charge of the futures trading body as two Calcutta High Court orders have created a deadlock. At present, the exchange is functioning without any board as members are waiting for the court to reopen on October 31 and issue a final clarification.

Policy

Andhra CM demands price for his support:

Andhra Pradesh chief minister N Chandrababu Naidu has demanded immediate aproval of the Rs 4,000 crore Iffco fertiliser project and cent per cent tax exemption to the donations for his favourite Janmabhoomi programme. Naidu during his meeting withthe prime minister recently, however, refused to name his nominees for induction in the union cabinet. He assured to continue his support but `urged' Atal Behari Vajpayee to keep the needs of his state uppermost.

Gowda not sure of success of third front:

Former prime minister H D Deve Gowda on Friday expressed doubts whether the formation of the third front would help win the confidence of people. Gowda, chairman of the United Front, said the formation of a front for the sake of ``convenience or political compulsion'' would not serve the purpose. The UF has become ``non-functional.''

UP eyes 16% share of IT industry

The new information technology policy of the Uttar Pradesh government aims at exploring the full potential of low cost, high quality manpower with the initiative of private sector, state resources and government of India. It is aiming to capture 16 per cent of the total information technology industry of the country.

FHRAI to set up tourism council:

The hospitalityindustry will set up a tourism council by early next year which will act as an advisory body to the government. Federation of Hotels and Restaurants Association of India president K K Mehra said the council was being set up by various segments of the tourism industry as they had realised that they were inter-dependent and had to work cohesively with the government.