National Economic Events in January 2000

Cabinet Committee on Economic Affairs (CCEA) approves the award of 25 oil exploration blocks to various bidders under the New Exploration and Licensing Policy (NELP).

Videsh Sanchar Nigam Limited cuts rates for international private leased lines, Internet access, ISDN access and web-hosting.

The Director General of the World Trade Organisation, Mr. Mike Moore, meets Finance Minister, Mr. Yashwant Sinha; impact of globalisation on developing countries discussed.

Agriculture Ministry notification bans cotton import from Pakistan on grounds of pest contamination.

Ban on export of semi-finished leather and EI tanned hides and skins removed subject to imposition of export duties.

Cabinet decides to allow foreign companies to invest up to 74 per cent in Indian registered companies to establish and operate satellite systems.

Union Cabinet clears proposal to amend the Airport Authority of India Act, 1994, to enable framing of guidelines for long-term leasing of five international airports at Delhi, Mumbai, Chennai, Calcutta and green field project at Bangalore.

Union Cabinet clears Rs. 600-crore Cotton Technology Mission to be implemented over five years.

Interest rate on small savings and deposits under the Public Provident Fund (PPF) cut by one percentage point.

SA Dave Committee recommends a parallel pension scheme; creation of an autonomous regulatory authority for the pension system and replacement of the Public Provident Fund with a new scheme.

Finance Ministry clamps provisional anti-dumping duty on all imported soda ash from China.

Delhi High Court quashes the proposal of the Telecom Regulatory Authority of India (TRAI) in respect of inter-connection charges for cellular mobile service providers and calling-party-pays regime. Directs TRAI to devise an alternative scheme.

Government launches Rs. 40-crore scheme for modernisation of tanneries.

Government permits Indian companies to issue American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) without its prior approval and to place ADRs/GDRs privately with overseas investors. Automatic approval also for Employee Stock Option Plan (ESOP) structured as ADRs/GDRs.

FIEO declared as the nodal agency for promotion of service exports.

M.A. Chidambaram, Chairman, SPIC and head of the Chennai-based MAC group passes away at the age of 81.

A Russian arbitration court rules in favour of Dr.Reddy's Laboratories in a patent dispute with Merck and Co over `enalapril maleate.'

National Statistical Commission headed by Dr. C. Rangarajan, set up former RBI Governor, to examine deficiencies in the country's statistical system in terms of ``timeliness, reliability and adequacy'' established.

Cellular Operators Association of India (COAI) announces cut in mobile rentals and time charges ``in deference to the wishes of the Delhi High Court.''

Cogentrix of the US formally opts out of the much delayed 1000 MW Mangalore Power Project, citing ``better investment prospects in the US after deregulation of the power sector there.''

RBI prescribes prudential norms for banks lending to infrastructure projects under the takeout financing system.

Government approves SEBI proposal to permit investment by high networth overseas investors in Indian stock markets within the existing ceiling of 24 per cent on foreign portfolio investment.

Supreme Court bans discharge of effluents from heavily polluting industries in Delhi and Haryana with immediate effect.

Government decides to offload 51 per cent of its equity in Indian Airlines in favour of public, employees, Financial Institutions and a joint venture strategic partner, who will have a maximum of 26 per cent stake.

SEBI finalises norms for market making.

15 per cent customs duty on imports of milk powder from the US, the European Union and Australia following the first tariff rate quota (TRQ) deal under the WTO that India entered into on any commodity.

Government agrees to allow Hindustan Lever Limited to acquire 74 per cent stake in the public sector bread manufacturer, Modern Foods Industries India Limited (MFIL).

SEBI grants in-principle approval for Internet-based stock trading, allows unlisted companies without three years track record to list if they are funded by venture capital.

Ordinance issued for the constitution of the TRAI and for establishing the Telcom Dispute Settlement and Appellate Tribunal.