New Delhi, October 19
The LNG Bhilwara Group and Statkraft Nortfund Power Invest AS (SN Power) of Norway has set up a joint venture to set up 192 MW capacity hydel power project in Himachal Pradesh at an estimated cost of Rs 900 crore.

The joint venture will be effective through Malana Power Company Ltd. (MPCL)

The LNG Bhilwara Group will hold 51 per cent equity stake while SN Power will hold 49 per cent in the company, said Mr Ravi Jhunjhunwala, chairman, LNG Bhilwara Group, here today. Addressing a press conference, he said: “The construction work of the Allain Duhagan in Himachal Pradesh will begin in early 2005, with commercial operation scheduled to commence by 2008-09.”

As per the financing plans for the development of the project, the MPCL will provide 90 per cent equity amounting to Rs 282 crore, while the International Finance Corporation (IFC), the investment arm of the World Bank, will take 10 per cent stake by investing Rs 184 crore.

Mr Jhunjhunwala claimed the IFC has also approved a loan of Rs 184 crore ($ 40 million) for the project. “Of the total project cost, Rs 585 crore is the debt component,” he said. Besides the IFC, the company will raise money from financial institutions and commercial banks.

The project would provide 12 per cent free power to Himachal Pradesh for the first 12 years and 18 per cent thereafter.

The Rs 1,800-crore LNJ Bhilwara Group is a diversified group with interests in textiles manufacturing, graphite electrodes and power generation and having about 20,000 employees.

SN Power is a 50:50 JV of Norway’s biggest power company Statkraft and the Norwegian government’s risk capital investment firm Norfund.

New Delhi, October 19
Bharti Tele-Ventures Ltd will pump in Rs 3,000 crore in the next fiscal year (2005-06) to expand its network and the company’s lawyers and auditors are examining the proposal to float American Depository Receipts (ADRs).

“We invest about Rs 3,000 crore every year. Last year, we invested Rs 2,700 crore. About similar investments will be done in the next fiscal”, Chairman and Group Managing Director Sunil Bharti Mittal told newspersons here.

On the proposed ADR, Mr Mittal clarified that the company has not filed any registration statement with the US Securities and Exchange Commission but work is progressing.

Supporting the proposal to increase the ceiling of foreign direct investment (FDI) in the telecom sector to 74 per cent, he said: “India needs FDI and if telecom has to grow from 45 million mobile phones to 200 million mobile phones, we need FDI”.

The fresh investment of the company will go into increasing the number of base stations from 5,000 to 10,000 this year.

“We are going to new towns, villages, highways and of course, creating more capacity in existing large towns. But mostly, they are in new places and we will complete this work by March, 2005”, he said.

The company also announced the launch of the Blackberry Wireless Solution in India under which Airtel customers will be the first to access push-based and always-on connectivity through the BlackBerry smart phone.

Bharti will bundle three models of BlackBerry handhelds, which combine the functions of a mobile phone and a personal digital assistant, with an Airtel connection and specialised services, primarily targeted at corporate clients.

The BlackBerry Wireless Solution consists of an integrated hardware, software and service elements. It will give the Airtel customers the power to manage their e-mail on the move and users can read, compose, forwards, reply, file or delete messages at their convenience.

The handheld device also includes an integrated mobile that enables the customers to place and receive both phone calls and SMSes.

Mumbai, October 19
UTI Mutual Fund (UTI MF) and HDFC Bank have entered into a strategic tie-up for distribution of UTI MF schemes worth of Rs 5,000-crore through the bank’s channel partners and branches.

M Damodaran, chairman and managing director, UTI AMC and Aditya Puri, managing director, HDFC Bank told reporters here that the strategic tie-up with HDFC Bank is a part of UTI MF’s strategy to rapidly expand its distribution network. The UTI MF has set a target of Rs 5,000-crore worth of funds for HDFC Bank to be sold through its channel partners and bank’s branches, he said.

Mr Damodaran said the new initiative would increase the access points for existing UTI MF investors, besides adding new investors.

In reply to a question, Mr Damodaran said the UTI MF has entered into an agreement with Corporation Bank, Indian Bank, Bank of India, Allahabad Bank, Union Bank of India and Indian Post. “Each bank has been given different targets to fulfil,” he said.

Mr Damodaran said the bank would sell the MF schemes in eight metros and the second-tier cities. — UNI

New Delhi, October 19
India will allow 100 per cent foreign direct investment (FDI) in real estate in Special Economic Zones (SEZs) after the Bill on SEZ is passed by the Parliament, Commerce and Industry Minister Kamal Nath said here today.

“The SEZ Bill will include bio-technology parks and free trade and warehousing zones. In all these, FDI up to 100 per cent would be permitted, including the real estate development and establishment of the zones,” Mr Nath said while inaugurating the OECD-India Investment Round Table here.

In all these, FDI up to 100 per cent would be permitted, including in the real estate development and establishment of the zones. “We see SEZs as hubs of manufacturing and FTWZs as trading hubs,” Mr Nath said.

On outsourcing, the minister pointed out several authoritative studies, which have shown that outsourcing was a win-win situation.

“India benefits no doubt but so do the foreign companies. And the additional profitability of the companies sustain and create more jobs in the developed countries as well. We should seek out more innovative areas for outsourcing and benefit from the comparative advantage and complementarities of our economies,” he said.

He said India’s investment policies, including policies on foreign direct investment (FDI), are among the most liberal in developing economies.

He said there was no restrictions on the FDI in most sectors in India and the Indian government welcomed foreign direct investment.

“What we really want is FDI that generates the maximum economic activity, and, thereby creates employment, that creates wealth for ordinary people. We, especially, look to FDI in manufacturing sectors and greenfield projects,” the minister said.

Mr Nath said the medical expertise and para-medical skills available in India made it an ideal place for pharmaceuticals and clinical research.

“Our Patent Law is currently fully Trips-compliant. Our obligations require we provide for product patent protection with effect from January 1 next year. We shall do it,” he said.

Mr Nath said the overseas investments by Indian companies had exceeded $ 3 billion in the last two years with nearly 60 per cent in the manufacturing sector.

Speaking separately at the third India-Asean business meet here, Mr Nath said the Framework Agreement on Comprehensive Economic Cooperation between India and the Asean aimed at an eventual Free Trade Area covering trade in goods, services and investment within a fixed time frame.

New Delhi, October 19
Pepsi today launched its $ 2-billion sports drink brand Gatorade in India and said star cricketers Mohammad Kaif and Irfan Pathan will endorse the novel product.

Priced at Rs 45 for a 500-ml bottle, Gatorade, which helps prevent dehydration, will be available at popular gyms, clubs and fitness centres in New Delhi and Mumbai.

“We will promote the sports nutrition beverage in a phased manner and target only the metro cities in the beginning,” PepsiCo India Chairman Rajeev Bakshi told newspersons at its launch here.

Gatorade, claimed to be scientifically formulated to replace fluids and electrolytes and provide energy to enhance athletic performance, is sold as a sports drink in several variations across the world. — UNI

Corporate briefs

Tata Chem posts 5 pc growth in profit

Announcing the results, the company said its total income declined to 10 per cent to Rs756.24-crore in the quarter-ended September 30, 2004.

UCO Bank

The net profit margin of the city-based UCO Bank has recorded a dip of 9.61 per cent to Rs 141 crore during the second quarter of the current financial year, even as its overall business recorded an impressive growth of 20.25 per cent to Rs 65,013 crore.

Announcing the public sector bank’s half yearly results and its future projections, UCO Bank Chairman and Managing Director V P Shetty here today said though the bank’s net profit was marginally reduced, compared to what achieved on September 30 last year (Rs156 crore), because of a sharp fall in treasury profit, its operating profit went up by 17.49 per cent to Rs 262 crore from Rs 223 crore earned during the corresponding period of last year.

Union Bank

The Union Bank of India has posted a 24.12 per cent hike in its net profit at Rs 211 crore for the second quarter ended September 30, 2004, as against Rs 170 crore in the same period last year. The total income for the reporting quarter rose by 5.45 per cent at Rs 1,355 crore as against Rs 1,285 crore in July-September 2003, Union Bank said in a release here today.

ABB

ABB Ltd has posted a net profit of Rs 35.97 crore for the quarter ended September 30 as compared to Rs 20.84 crore for the quarter ended September 30. Announcing the results, the company said its total income has increased from Rs 345.63 crore in the SQ 03 to Rs 575.47 crore in the quarter ended September 30. — Agencies