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Indian Rayon s Leap Forward

concept of self-reliance. Their 'aloofness', their obsession with growth models elsewhere, their lack of understanding of the Indian environment has been taking the country inexorably towards bankruptcy in external payments. On this, it is not the Saracens who are mounting the attack; it is the global politics of the developed world which would like to keep the developing countries in their prc-colonial state of development. How else does one explain their recommendation regarding liberalisation of import policy and borrowing on commercial terms by the developing countries, while conceding that the developing world should stick to exports of primary commodities (the demand for which is not growing), since the prospects of trade growth in the world are dim, and that the OECD countries have to inevitably follow restric- tionist policies in regard to cheap imports?

Wide-Ranging Expansion

Render unto Caesar what belongs to... The religious corporations have proved themselves to be what Americans describe as smart cookies. Of course they constitute important vote banks, and therefore have to be handled with care. There is however a little bit more to it than that. These religious outfits render a specific service to public men as launderers of their image. You are a minister, you are at the same time well known as a thief and a womaniser. You cannot afford to cease to be a thief, you cannot stay away from the temptations of the flesh, and yet, for the sake of your political career, you must somehow keep your image above water. You pick your neighbourly religious corporation, and contract out the assignment to them. They will do a wonderful public relations job for you. You will be invited to all their important occasions. You will be one of the principal performers at the religious discourses they organise, you will he a regular fixture at the jamborees they hold on the philosophy of illusion or the taxonomy of transcendentalism, you will be made a trustee of this or that educational or cultural body the corporation decide:, to establish, you will be constantly in the news, either invoking soulfulness or preaching spiritualism. With so much religiosity rubbed on you, you are safe with your thieving and debauchery, You may be a crook and worse, but who can deny that you are a deeply spiritual person too, who can deny a safe Lok Sabha or Assembly seat to a religious person of such impeccable credentials?

Making More Steel and Profits

Making More Steel and Profits Hansavivek TATA IRON AND STEEL COMPANY (TISCO) has expressed to the government its willingness to expand capacity by about a million tonnes in flat products and is awaiting government's reaction. Meanwhile, the company has undertaken a 5-year modernisation-cum-replacement programme of Rs 1,127 crore and approached the Steel Development Fund (SDF) for loans of Rs 492 crore to meet a part of the rupee cost of the programme. The SDF Committee has sanctioned loans of Rs 273 crore and applications for the balance amount are being appraised by the economic research unit of the Joint Plant Committee on behalf of the SDF. A foreign collaboration agreement has been finalised with LURGI of West Germany for obtaining technical knowhow and equipment for setting up the second sinter plant. The rupee cost of this project is proposed to be financed from the SDF and foreign exchange component of DM 37 million will be financed out of two foreign exchange loans sanctioned by IFC, Washing- The Week's Companies ton (DM 25 million) and SBI (DM 12 million). A new company has been registered under the name 'Tata Korf Engineering Services' which will be applying to the government for the various approvals required in cases of technology transfer. Korf of Germany has a novel method of making steel. The company has received permission from the Government of MP for mining limestone and producing clinker. It has submitted a proposal to the Central government for setting up a plant of 1.4 million tonnes per annum of slag-based cement at Jamshedpur and a 3-lakh tonnes per annum cement unit in MP.

High-Yield Agrochemicals

High-Yield Agrochemicals Hansavivek NATIONAL ORGANIC CHEMICAL INDUSTRIES (NOCIL) fared so well during, 1985 that the directors have recommended not only a one-for-two bonus issue but also raised dividend by two points to 18 per cent. The proposed bonus issue will involve capitalisation of Rs 12 crore out of the general reserve. The company has obtained necessary approval of the financial institutions, as required under the loan agreements, both for dividend and issue of bonus shares. Sales increased from previous year's Rs 200.18 crore to Rs 219.40 crore and gross profit expanded from Rs 26.96 crore to Rs 34.43 crore. These figures show the impact of widened margins on profits. Although tax liability has claimed more, net profit is Rs 19.15 crore (Rs 14.02 crore). The increased dividend finds an earnings cover of 4.42 times as against 3.65 times previously. Profit has increased owing to increased sales specially of agrochemicals, better plant performance both at Thane and Lote Parshuram and increased income from The Week's Companies commission.

Gaining from Industrial Liberalisation

Gaining from Industrial Liberalisation Hansavivek MOTOR INDUSTRIES COMPANY'S licensed capacities for most of its products have been enhanced by 20 to 24 per cent under the automatic growth scheme. The government has also accorded sanction under the capacity re-endorsement scheme to increase annual production of glow plugs at the Bangalore factory from 2.50 lakh to 6,52 lakh. Consequent to the grant of the letter of intent for its sixth expansion, the company is taking steps to develop a manufacturing programme, whereby production of multi-cylinder fuel injection pumps will be taken up at the Nashik factory, in addition to raising production of nozzle holders by 3.40 lakh units. Further to the letters of intent received by the company for diversification in the fields of special purpose machines and auto-elec- tricals, the company has submitted to the Central government a phased manufacturing programme for special purpose machines. In addition to electro-chemical machining centres, hydraulic and pneumatic equipment, machine tool accessories and so on, the company will manufacture thermal energy method (TEM) machines under licence of Robert Bosh. As a result of its developmental efforts, the company began the manufacture of bi-metallic thermo-elastic spark plugs with projected nose. Initially introduced for a limited number of high performance engines, the company plans to increase the range of manufacture from time to time in accordance with the manufacturing programme of its customers. Modifications, carried out in some types of fuel injection equipment, to create higher injection pressures, have led to enhancement in fuel economy and reduction in smoke levels.

Vertical Integration

a Trotskyite and a Social Democrat the behavioural difference simply disappeared. At the next stage, many of the Trotskyites discovered themselves in the clasp of the Congress for Cultural Freedom: have hate for Stalin, will travel.

Successful R and D

 experts chosen for their exercise, what time horizon are the politicians themselves interested in

Dreaming Steel Again

Dreaming Steel Again Hansavivek HINDUSTAN ALUMINIUM CORPORA- TION (HINDALCO) is diversifying its activities into steel. It proposes to set up an integrated steel plant for the manufacture of hot rolled strips. The project, estimated to cost Rs 690 crore, is intended to be established in Raipur district of MR Besides, the company has undertaken a modernisation programme with a view to reducing the overall energy cost (including petroleum products) and to further lowering the cost of production of metal. For this purpose, an agreement has been entered into with Kaiser Aluminium and Chemical Corporation and Kaiser Aluminium and Technical Services, USA. The entire project, estimated to cost Rs 45 crore, will take a little over three years, Meanwhile, construction work relating to the expansion of the alumina plant is in progress and is the plant expected to be commissioned soon. The company's licensed capacity has been increased from 1.2 lakh tonnes to 1.5 lakh tonnes per annum and that of fabricated items from 37,000 tonnes to 55,700 tonnes. The company is seeking further expansion of fabrication facilities equivalent to 50 per cent of the primary metal production. The demand pattern of aluminium is fast changing. Hitherto, bulk consumption of aluminium was in the electrical sector. A huge potential for the use of aluminium exists in the shape of semi-fabricated items in the field of transportation, construction, agriculture and defence. The existing fabrication facilities of the company need modernisation to enable manufacture of aluminium extrusions in hard alloys and larger dimensions. New extruded profiles will have to be developed for truck bodykits, aluminium doors and windows, special defence applications and for agricultural needs. Similarly, rolling facilities need modernisation to cater to the demand for diversified end uses. The company has initiated action in this regard. It has also applied to the government for import of the fifth generator for Rcnusagar Power Company, its subsidiary, which is its captive source of power. HINDALCO was able to produce 1,23,646 tonnes of aluminium metal during 1985 as against 1,21,698 tonnes produced during the previous year, despite various constraints. Sales amounted to Rs 232.32 crore against Rs 220.30 crore and gross profit Rs 16.86 crore against Rs 16.38 crore, reflecting a small contraction of margins. Net profit, however, turned out to be lower at Rs 6.92 crore compared to previous year's Rs 7.45 crore. Equity dividend is maintained at 15 per cent and is covered 3.07 times by earnings as against 3.72 times previously. The directors have also recommended issue of bonus shares on a one-for-two basis by capitalising Rs 6.69 crore from the general reserve. For the purpose of financing a portion of the cost of modernisation scheme, the company has raised Rs 40 crore by the issue of 15 per cent non-convertible secured redeemable debentures of Rs 100 each at par by way of 'rights' to the resident preference and equity shareholders and debenture holders. The directors observe that the increase of Rs 371 per tonne in the price of aluminium allowed to the company on December 20 last was nowhere near the actual increase in the cost of production. This was offset by increase in the price of coal and a steep rise in power tariff by UPSEB. The cost of production on account of these two items alone has increased by as much as Rs 900 per tonne. Government is being requested to urgently compensate for this increase.

All-round Progress

 either too self-centred or too pusillanimous to do something about it, should it not then become the prerogative of ordinary men and women, as part of the broader social contract which is humanity, to enforce the law of civilisation on those who are violating it? No, the problem does not lie in the moral or social sanction, it lies in the gradual deadening of our sensibilities. Citizens of every nation have their own immediate priorities. Young people continue to commingle, but they commingle for reasons that might seem altogether peripheral in the light of the spark which ignited millions of souls fifty years ago in the cause of Spain. Idealism has acquired an unsavoury odour, they laugh in your face when you say that one is none, you are not supposed to die any more for other people's cause. At this distance of fifty years, in the context of the worries and concerns of today's crowd, it was a crazy thing what those young people did, the Audens and Caudwells, the Bunuels and Bretons, the Ehrenburgs and Hemingways: why must you fritter away your talent, resources and, ultimately, lives merely because fascists have gone on the rampage in some remote place or because some racists are indulging in genocide in that vague geographical tract, South Africa?

Pesticides Import Duty Anomalies

Pesticides: Import Duty Anomalies Hansavivek BASF INDIA has decided after prolonged deliberations and feasibility calculations not to implement the, letter of intent for caprolactum. Some 4

A Forgings Success Story

course you have every reason to rage, what is the meaning of law and order if you are denied the possession of land you legally own and have to watch helplessly while decrepit specimens of humanity occupy it by force?

Leading the Consumer Electronics Boom

Leading the Consumer Electronics Boom Hansavivek PEICO ELECTRONICS AND ELECTRICALS has suffered a sharp setback in its working during 1985 as reflected in the drop in gross profit from previous years Rs 15.55 crore to Rs 11.05 crore despite a higher turnover of Rs 240.05 crore against Rs 209.38 crore. Margins have been squeezed between rising costs of raw materials, components and wages and the company's inability to increase prices correspondingly in a highly competitive market. Moreover, there was prolonged disruption of production at the Kalwe factory due to disturbed industrial relations. Interest cost rose sharply, as requirement of finance increased for the ongoing investment programmes and working capital. Net profit is Rs 3.03 crore (Rs 4.64 crore). Dividend has been reduced from 20 per cent to 15 per cent, which too is slightly short-earned.

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