The Tribune, Chandigarh, India

Punjab seeks Rs 20,000-cr investment in power sector
Manoj Kumar
Tribune News Service

New Delhi, November 22
Undeterred by the negative publicity over its decision to supply free power to the agricultural sector and Scheduled Caste families, the Punjab Government is making all-out efforts to attract investors to set up power plants in the state with an investment potential of over Rs 20,000 crore.

At the India International Trade Fair here, Punjab has put up its stall with the power and communication sectors as the theme. Punjab Chief Minister Amarinder Singh is expected to woo investors here tomorrow as part of the Punjab Day celebrations.

Talking to The Tribune, a senior official of the Punjab State Electricity Board (PSEB) said: “we are trying to convince the independent power producers to set up power plants based on gas, coal or non-conventional sources. With the boom in industrial and service sector, the state is likely to witness a supply gap of 4503 MW requiring an investment of Rs 20,000 crore, excluding proposed capacity addition.”

Referring to the 17th electric power survey conducted by the Central Electricity Authority (CEA), he said the projected peak demand of power would be 13582 MW by the end of the 11th Plan (2012) with a future cumulative annual growth rate (CAGR) of 10 per cent instead of the present rate of 6.4 per cent. A number of potential investors, he said, had shown a keen interest in the state power sector.

Notably, GAIL has already signed an MoU with the state government to set up an over 1000 MW gas-based power plant at Doraha, near Ludhiana. Prime Minister Manmohan Singh has also assured the state government that the NTPC would look into the feasibility of setting up a power plant in the state.

The government is showcasing its success in checking power theft and introducing power reforms at the stall.

The transmission and distribution (T&D) losses in Punjab were 24.27 per cent in 2004-05, the second-lowest in north India after Himachal Pradesh as against the all-India average of 32.53 per cent. The manpower in the PSEB has also been reduced by 14,000 over six years.

The PSEB is implementing the Rs 670-crore 75-MW UBDC stage-III hydel power project on a BOT basis.

India to spend $10 b on airport revamp

Dubai, November 22
India is embarking on a massive drive to upgrade existing airports and build new ones at a cost of $10 billion over the next four years, Civil Aviation Minister Praful Patel has said.

The projects involve both upgrading and building airports in 41 cities, including six key cities, he told reporters at the Dubai Air Show yesterday.

While airports in the metro cities of New Delhi, Mumbai, Chennai and Kolkata would be upgraded to receive the largest and latest aircraft, two new airports would be built at Bangalore and Hyderabad.

The minister said these projects would be completed in five years.

Sounding bullish on the growth of the Indian aviation sector, Mr Patel said the industry saw growth topping 25 per cent last year and reaching 30 per cent this year.

Two Indian carriers — Air-India and Indian Airlines — would also go public by issuing IPOs early next year, Mr Patel said.

On demand from new private Indian carriers for permission to operate on the lucrative Gulf sector, the minister said the current restrictions would remain in place.

“We want the country to be connected from within and the private airlines have to show consistency for five consecutive years. Then the reward is to fly overseas,” he said.

Kingfisher plans IPO

India’s private Kingfisher Airlines, which placed orders for 30 Airbus A320 aircraft worth $1.9 billion at the ongoing Dubai Air Show, has said the carrier would go public to finance the deal.

“So far a mix of equity and debt has met all our deposit and pre-delivery payments for the aircraft orders. Going forward, we would have to take the company public,” its Chairman and Managing Director Vijay Mallya told reporters here. — PTI

Punjab moots tax sops for small manufacturers
Ajay Banerjee
Tribune News Service

Chandigarh, November 22
A major shift in the taxation policy of Punjab is on the anvil as the government is set to give concessions to small manufacturers.

A high-powered meeting presided over by Finance Minister Surunder Singla to take up issues related to VAT gave the final shape to the proposal here today, which was expected to be announced by Monday.

Sources said a detailed list classifying small manufacturers under each category was ready. This will take up at least 80 items manufactured in Punjab. This kind of variable taxation would be levied on finished products.

An official said branded goods would attract 12 per cent tax while unbranded ones would be liable to pay 4 per cent tax.

The move is aimed at wooing the business community. The number of small manufacturers in the state is more than the big ones.

The issue of refund of money to traders was also taken up. Some portion of VAT is refunded to traders and this is now totalling close to Rs 400 crore. It was reportedly decided to make all payments by year. About 20 per cent of the payments have been cleared while the rest are pending.

The issue of double taxation was also taken up and it was decided to correct the anomaly. At present there was a tax on raw material first and then again on the finished product.

Largest airport

Dubai has announced plans to build the world’s largest airport at a cost of 30 billion dirham that could handle 120 million passenger. The Jebel Ali International Airport (JXB) would be of the combined size of London’s Heathrow and Chicago’s O’Hare airports and would be 10 times bigger than Dubai International Airport. Currently, London’s Heathrow hold the first position with a capacity of 83.5 million passengers. — UNI

Japan to invest $160 b in India

New Delhi, November 22
Japan is planning a $ 160 billion investment in India in the next three years, mainly in the automobile sector, and is desirous of associating with SAARC.

The two countries are also cutting the double taxation rate from 20 to 10 per cent, specially in software. An agreement had been reached on the revision of the tax treaty to reduce it by half. An agreement would be signed at a meeting in the middle of 2006.

Japan’s Ambassador to India, Mr Yasukuni Enoki, said at a press conference here today that more than 27 Japanese companies, including auto giants Suzuki (Maruti Udyog), Honda and Toyota, plan the lions share of investment, namely six FDI projects accounting for 125.7 billion yen ($ 1.1 billion constituting 77 per cent of the total), Maruti Udyog 82.8 billion yen, Honda Motor Cycle and Scooter and Hero Honda Motors 12.5 billion yen each.

Describing the period post-1998 as the “second boom” for Japanese investment in India, Mr Enoki said India’s political stability, impressive economic growth, China’s “saturating” market and India’s participation in the East-Asia summit were the indicators that had attracted more and more Japanese investors towards India.

The Ambassador announced that a 20-member delegation of the Japan Federation of Economic Organisations, including prominent business leaders from Japan, would arrive here on November 27. — UNI

Top officials of PSU banks may get pay hike

Mumbai, November 22
The Finance Ministry is considering a proposal by Indian Banks Association (IBA) to give post allowance to Chairmen and Executive Directors of public sector banks, a key official said today.

“We are considering the proposal mooted by IBA,” KBL Mathur, Economic Advisor (Banking) in the Union Finance Ministry, said.

He, however, refused to specify timeframe by when the ministry would take a decision on post allowance to chairpersons and EDs of PSU banks.

Post allowance is over and above Chairperson’s and EDs basic salary, DA and other perquisites.

The proposal calls for giving up to Rs 50,000 to Chairman and Rs 40,000 to Executive Director of PSU banks as post allowance.

This is one of several proposals that IBA had sent to the ministry to reduce the growing gap between top officials of PSU banks and their counterparts in private banks.

The salaries of the CEOs of the State Bank of India (SBI), the Industrial Development Bank of India (IDBI), Nabard and a Deputy Governor of the Reserve Bank of India (RBI) are now linked to the salary of a secretary in Union Government. — PTI

AstraZeneca sues Ranbaxy

New Delhi, November 22
Global pharma firm AstraZeneca said today it had filed a lawsuit in the US district court of New Jersey against India’s biggest drug-maker Ranbaxy Laboratories for “wilful infringement” of its patent for acidity drug esomeprazole magnesium (marketed as nexium).

In a statement on its website the company said the lawsuit was in response to an abbreviated new drug application (ANDA) filed by Ranbaxy with the US Food and Drug Administration regarding its intent to market a generic version of AstraZenecas nexium in America prior to the expiration of six of its patents.

The expiration date for AstraZeneca’s patents: 5,714,504, 5,877,192, 6,369,085, 6,428,810; 6,875,872 and 5,948,789 range from 2014 through 2019, the statement said.

AstraZeneca said it had “full confidence and will continue vigorously to defend and enforce its intellectual property rights protecting nexium.”

The drug is prescribed for gastroesophageal reflux, also called heartburn or acid reflux.

Ranbaxy officials were not available for comment. — PTI

Iffco inks $325 m joint venture with Egyptian firm

New Delhi, November 22
Indian Farmers Fertiliser Cooperative Ltd (Iffco), in collaboration with Egyptian El Nasar Mining Company, has launched Indo-Egyptian Fertiliser Company’ for setting up a $325 million phosphoric acid project in Egypt.

The project is scheduled to be commissioned in early 2009, an Iffco statement said here.

The mega project to be set up at an estimated cost of $325 million would be financed with the debt equity ratio of 70:30, it added.

Iffco would have an assured supply of nearly one million tonne bulk phosphoric acid for its Kandla plant in Gujarat once the venture gets commissioned, Iffco Managing Director U.S. Awasthi said.

The Indian fertiliser cooperative major would have 76 per cent equity while the balance 24 per cent would be held by its Egyptian counterpart in the venture. — PTI

Bank Account
Doha Bank ties up with SBI Capital Markets

Dubai, November 22
Doha Bank, Qatar’s leading private bank, has entered into collaboration with the SBI Capital Markets Limited (SBI Cap), Asia’s premium financial institution, to offer project finance.

The services, offered by way of this alliance signed yesterday, will help Doha Bank enhance its corporate and commercial services significantly, a statement said.

Doha Bank Acting General Manager R Seetharaman said as Qatar booms with billions of dollars being invested in various projects, the alliance is in a position to offer support at all stages of project financing by way of offering prudent advisory services.

SBI Cap has its presence in London and has alliance arrangements in Sri Lanka and Bangladesh.

SBI Cap is owned 86.16 per cent by the SBI and 13.84 per cent by Asian Development Bank.

HSBC’s centre

HSBC, the global banking and financial services giant, today opened its fifth group service centre in India at Salt Lake near Kolkata to provide superior services to its customers worldwide.

The new centre, which can accommodate 3,000 persons, would initially take up basic data entry and back office job for HSBC offices in the UK and the US, Alan W Jebson, Chief Operating Officer, HSBC Holdings Plc, said.

The group now has five centres in the country — two in Hyderabad, one each in Bangalore, Visakhapatnam and Kolkata — employing a total of about 10,000 persons.

NRE FD rates

RBI’s move to raise ceiling on NRE rupee deposits have prompted IDBI, the Union Bank of India and Yes Bank to increase interest rates on fixed deposits of non-resident Indians.

The three banks raised the interest rates with effect from November 18.

IDBI Bank increased interest rate by 27-basis points on NRE fixed deposits maturing in one or less than two years.

For deposits of two years to less than three years and three years to less than five years, IDBI hiked the interest rates by 25 basis points each to 5.60 per cent and 5.65 per cent, respectively, the bank said in a statement.

The Union Bank of India raised interest rates on such deposits by 25-basis points. The new rate for deposits maturing in less than two years stand at 5.47 per cent, while that for those maturing in two years to less than three years is 5.60 per cent.

New generation Yes Bank also hiked interest rates on these deposits by 25-basis points.

Syndicate Bank

Syndicate Bank proposes to float a fully owned subsidiary for undertaking Business Process Outsourcing (BPO) activities.

The government has given its approval in principle. — Agencies

Corporate News

Zee to invest $50 m in Gulf region

Dubai, November 22
Chairman of Zee Network Subash Chandra has said he would be investing $50 million in the Gulf region over the next two years.

Zee has signalled its long-term interest in the region with a new $30-million Zee Tower that comes with state-of-the-art broadcast infrastructure for the new free-to-air television channel Zee Arabiya, its first dedicated Arabian channel.

Mr Chandra told the local media that Zee’s operation in the region would be profitable in two years as the multilingual music and lifestyle channel begins making money in the Middle East, which is one of the world’s fastest growing economies and home to a diverse mix of nationalities.

IA pact for m-ticket

Reliance Infocomm today joined hands with national carrier Indian Airlines to offer mobile booking to its customers for domestic tickets at a monthly cost of Rs 25 or a day pass of Rs 3.

Reliance IndiaMobile users can now book IA tickets for domestic travel using their phones from any part of the country. To being with bookings will be available against INR full fare and easy fare options, Reliance Infocomm CEO (Delhi circle) Navneet Saluja said here.

A RIM user has to enter the origin and destination points as well as date of travel, full and discounted fares in economy and executive classes are displayed on the mobile screen. The user then has to select the fare and payment mode and book the ticket. The PNR is displayed on the mobile screen and the ticket can be collected at the airport or an Indian Airlines office producing the PNR and photo identification.

KPIT Cummins

KPIT Cummins Infosystems Ltd has entered into two definitive agreements to acquire majority stakes in US-based SolvCentral.com Inc, providing Business Intelligence (BI) Solutions for $ 2 million and in French company Pivolis, for Euro 1.75 million.

The company would acquire a substantial majority stake in SolvCentral for $2 million and the remaining equity stake will be acquired by the company over a three year period at a price related to the quantity and quality of revenues of SolvCentral, a company press note here said.

The company would also acquire a substantial majority stake in French Pivolis, an offshore consulting services provider, for a consideration of Euro 1.75 million comprising 50 per cent cash and 50 per cent stock.

Viceroy Hotels’ plans

Hyderabad-based Viceroy Hotels Ltd today said it would construct a five-star deluxe category hotel at Chennai and a star category hotel at Bangalore at an estimated project cost of Rs 620 crore.

The Board of Directors have taken note of the proposal received from J W Marriott, US, to take the property on management contract and approved the proposal to construct five-star deluxe category Hotel at Chennai with a project cost of Rs 460 crore, Viceroy Hotel informed the Bombay Stock Exchange.

The Board also authorised the MD to explore the possibility to have franchisee agreement or management contract with Marriott International Inc, US, and approved the construction of a star category hotel at Bangalore with a project cost of Rs 160 crore, it said. — Agencies

BRIEFLY

IOC to raise $250 million
New Delhi, November 22
The IOC said today it planned to raise $250 million from the world market to meet its capital expenditure requirements, with a green shoe option of $50 million. “IOC has mandated BNP Paribas, Caylon bank, Citigroup, ING Bank NV, Mizuho Corporation and Sumitomo Mitsui to arrange the syndicated term-loan facility. The term-loan facility was launched on November 21 and will be completed by mid-December,” IOC’s Director (Finance) S.V. Narasimhan said. The PSU had also raised Rs 1225 crore in September, 2005, and Rs 1000 crore in May from the domestic market via the issue of secured redeemable non-convertible bonds. — PTI

VSNL-MS pact
Mumbai, November 22
Videsh Sanchar Nigam Ltd has forged strategic alliance with Microsoft Corporation India Pvt Ltd for venturing into the Web conferencing market. The company has launched the Tata Indicom Web Conferencing Service based on the Microsoft Office Live Meeting Platform, VSNL informed the Bombay Stock Exchange. — PTI

Binani Ind stake
Mumbai, November 22
Binani Industries Ltd has decided to sell up to 15 per cent of its stake in Binani Cement Ltd (BCL), its wholly-owned subsidiary. The company will appoint a merchant banker for selling part of its shares held in the BCL, at a price determined and approved by a Committee of Directors, Binani informed the Bombay Stock Exchange. — PTI

Ispat Ind plans
New Delhi, November 22
Ispat Industries Ltd today said it will merge its arm Ispat Metallics India Ltd with itself and restructure its capital structure. After the merger, the company would issue 34.49 crore shares to the shareholders of Ispat Metallics at Rs 10 each at par. — PTI

NHAI project
Mumbai, November 22
Madhucon Projects Ltd, engaged in construction business, today said it has bagged a Rs 360 crore National Highway Project in Tamil Nadu from the National Highway Authority of India (NHAI). — PTI

Monnet Ispat
New Delhi, November 22
Monnet Ispat Limited said today it had negotiated a deal for a manganese ore mine in Zambia with the intention on setting up a ferro alloys plant in the African nation. “However, we are yet to decide on the specific details of the deal,” a company official said here. — PTI

Himalya Intl pact for cheese plant
Mumbai, November 22
Himalya International Ltd and a US Company have entered into a collaboration to set up a Mozzarella cheese plant in Himachal Pradesh. Himalya informed the Bombay Stock Exchange that the plant would process 15 million pounds of specialty cheese per annum valued at $ 25 million. The entire produce would be marketed by a new company ‘Artiginale Italiano Inc’, formed by the collaborators. — PTI

Nabard sanctions Rs 14 crore for HP
Shimla, November 22
The National Bank for Agriculture and Rural Development (Nabard) has sanctioned Rs 14.47 crore to Himachal Pradesh for the construction of nine rural roads and five bridges under the Rural Infrastructure Development Fund (RIDF-XI), an official spokesman today said. He said with this fund the cumulative amount sanctioned to the state has gone up to Rs 1,188.85 crore, since its inception in 1995-96. The spokesman said of the total amount committed to the state, a sum of Rs 792.99 crore had already been released. The new constructions would provide new and improved connectivity to 88 villages and 61 marketing centres and would benefit a population of over one lakh, he said. — UNI

Aircel launches operation in J&K
Jammu, November 22
Aircel, a mobile operator, yesterday launched its operations in Jammu and Kashmir but without connectivity with the BSNL or Airtel. The Aircel has come here with much fanfare, but its subscribers shall have to wait for a pretty long time to dial either to the landline phones of the BSNL or the other two cellular operators. The newcomer has started booking new connections, but enthusiasm from the public was lacking. Long queues were witnessed earlier when the BSNL mobile came here about two year ago. Their subscribers shall have to satisfy within the Aircel circle in the state till the BSNL connectivity was provided to the service provider, BSNL officials said. — TNS