January 10, 2000

BPL, Videocon and Sterlite
Time is running out on BPL, Videocon and Sterlite — the three companies which were caught in a deal with scamster Harshad Mehta to rig up their share prices in the 1998 payment crisis. The firms had been given three weeks in which to inspect documents or file an appeal against the SEBI notice. Only Mehta has so far bought time. This seems to confirm what we have often written that ‘‘SEBI had all the information it needed to charge the firms for more than a year, but was dragging its feet.’’ It still has to complete its action against the former BSE vice president. No wonder then that several stock brokers believe that SEBI is still an unwilling disciplinarian. One can’t but notice the contrast between this and the zeal with which is pursued HLL on insider trading charges.

We are the world
It’s the time for millennium surveys. This time, most surveys are click-able ones limited to netizens — those in the age group of 16 to 35 and whose collective memories probably do not extend beyond the 80s. Yet, few bother to qualify the surveys and edit writers have written edits based on the skewed findings. At this rate, in a few years Indians will be sweeping all the international polls, with only China as our competition. We will be the best in everything, because our population will allow us to log in the maximum number of clicks. Haven’t all of us already received messages urging us to ensure that Gandhi is voted the Time Magazine Person of the Century? He is running at number four, we hear. The Mahatma did not make it this time, but in a few years there will be no stopping us. In terms of numbers, there will be more Indians using the Net than the entire population of the USA. The headlines of our many triumphs will then rival the celebration of a Miss World victory — and we can truly delude ourselves that we are the best.

The Enron way
From a coffee table book to commemorate the millennium to sponsoring the Millennium Ustav, Enron Power Corporation is everywhere. The Utsav is interesting. It is being presented by the Maharashtra government with Godrej as the main sponsor. However, Enron Corporation as well as its subsidiary, Dabhol Power Company, are co-sponsors. The guest of honour is Chief Minister Vilas Rao Deshmukh who has threatened to re-negotiate the second phase of the Enron project. Is the Utsav then a meeting ground? Another ‘power’ sponsor is the Ispat Group. The Mittals, on one hand, have a huge coal-based state electricity board and even had its power supply cut off for sometime. Maybe the Utsav will power some discussions and settlements.

ICICI: VRS and shutdown
Few people at ICICI were in the mood to pop champagne this New Year. While ICICI has been announcing growth plans and diversification into e-commerce and such like, it has also been pushing a particularly ruthless VRS. The package itself is hefty, but insiders say that it was not very ‘voluntary’. Those in departments such as the library , administration and development, which have been shut down were almost hounded by the management to accept VRS. They even claimed to have exceeded targets for ensuring VRS. The message was clear, if they hung on, they did not have much of a future.

Supporting Marathon
The demand for support to the Essar group continues to get more bizarre. A few weeks ago, the FIs extended the period for the sale of the power project by 200 days. At the same time they dropped this being a pre-condition for the grant of fresh loans to the group. Now comes the news that Marathon wants to buy the project and control management with FIs holding 51 per cent of the equity. One wonders why the FIs do not have a proper valuation done and offer the project to a public sector company instead. But then again, maybe they are not really serious about restructuring the group at all.

Updated weekly.

The author's e-mail address is: suchetadalal@yahoo.com

 

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