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Process to review FDI in telecom begins
Deora wants service tax on oil exploration abolished
Samsung rings in Manesar
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Hooda lays NTN-NIE project stone
Bathinda refinery to be delayed further
Amritsar airport revamp to be over by month-end
Taj Hotels keen on international tie-ups
Hyundai unveils sporty Accent
Lockout in LML’s unit
Tata Chem buys out UK firm
Corporate
News
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Process to review FDI in telecom begins
New Delhi, March 7 Last week, Essar had sought clarification from DoT and PMO on whether sale of equity by Hutchison to another foreign firm Orascom, which is alleged to have links with firms in Pakistan, required government approval. The Prime Minister’s Office last week held a close-door meeting with senior officials from Intelligence agencies as well as ministries of Home, Defence, Commerce and DoT, senior government officials said. The Department of Telecom has now sought views from all ministries concerned and other stakeholders, including telecom operators, on the issue. Orascom is understood to have some links in Pakistan and this could be a serious issue for India from security point of view, officials said, indicating the issue required a close scrutiny and government would look into it on priority basis. The government has already extended the deadline for meeting requirements of FDI policy in the telecom sector, which last year allowed foreign equity holding of 74 per cent from 49 per cent earlier. Officials said telecom was a sensitive sector in most countries and security was a concern whenever a new player comes in. Moreover, now that any investor with 10 per cent stake has been designated as “serious investor” in the company, the government must know who was investing, they said. “We must have strong guidelines to keep a check... we are looking into it but nothing has been decided as yet,” the officials said. The government move comes days after telecom providers were given a four-month extension to comply with FDI norms, which required them to disclose all foreign holdings and appoint only Indian nationals as Chief Executive Officers, Chief Financial Officers and Chief Technical Officer. Essar had last week asked the government whether sale of equity in an Indian telecom joint venture by a foreign partner to another foreign company required government approval. Tatas had also approached DoT recently regarding Tata Teleservices, a closely-held group company, in which one of the top executives is a foreign national.
— PTI
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Tariff reporting norms eased
Special tariff schemes offered by telecom companies to bulk customers need no longer be reported to regulator TRAI within seven days of their introduction, but it would suffice to do so every quarter. Relaxing the reporting norms for tariff plans, the Telecom Regulatory Authority of India today said such special tariffs for bulk customers would also not be counted among the 25 plans that an operator is empowered to introduce. Meanwhile, after failing to meet the benchmark on network congestion level set by it, TRAI today issued show-cause notices to Bharti Televentures, Tata Teleservices Ltd, Reliance Infocomm Ltd as well as Reliance Telecom, BPL Mobile, and Spice Communication for the quarter ending December 2005. In cases of Idea Cellular, Hutchison Essar Mobile Service Ltd, Aircel Cellular Ltd, BSNL and MTNL, there is no deterioration in regard to congestion above 0.5 per cent during this period. In case of Dishnet Wireless Ltd, the company was set up recently and, hence, no comparison can be
made. — PTI
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Deora wants service tax on oil exploration abolished
New Delhi, March 7 “We have attracted their attention to financial health of oil PSUs, which have slipped into the red, and sought subsidies for them,” Petroleum Minister Murli Deora told reporters after a “fruitful” meeting with Finance Minister P. Chidambaram. “As government gives subsidies for fertiliser and food, the Budget should provide subsidies for fuel also,” he said. Mr Deora also asked Mr Chidambaram to compensate oil companies for selling petrol, diesel, LPG and kerosene below their production cost. The Petroleum Ministry wanted a transparent system of subsidies for fuel, which is also an essential commodity for the masses. Mr Deora also raised the issue of granting infrastructure status to oil and gas pipelines, while exempting exploration and drilling from the service tax. ONGC Chairman Subir Raha, who also attended the meeting, said cess on petroleum products was also discussed at the meeting. “Whatever problems we have in our ministry, we have raised. Mr Chidambaram was very kind and considerate. The Finance Ministry did agree to some of the points that we raised. So, we are discussing them again,” Mr Deora said. Mr Chidambaram has agreed to consider the service tax exemption on exploration and drilling, but did not respond immediately to the demand of granting infrastructure status to pipelines. He also agreed to issue oil bonds worth Rs 11,500 crore to oil PSUs by March 15. Mr Deora said the Finance Minister has agreed to issue the oil bonds worth Rs 11,500 crore in two tranches by March 15. “The first tranche of bonds would be issued day after tomorrow and the second tranche by March 15,” he said. The non-SLR tradable special securities will carry an average coupon rate of 7.3 per cent. Mr Chidambaram also agreed to let Oil Industry Development Board extend working capital loans to oil companies and provide government guarantee to oil firms for procuring crude oil during “difficult” times. On whether the two ministries discussed pricing of petroleum products on the lines of Rangarajan committee report, Mr Deora said: “There was no discussion on Rangarajan Committee. It will take some time.” “When we prepare some other points, we will meet Finance Minister again,” he said. — PTI
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Samsung rings in Manesar
Manesar (Gurgaon), March 7 The project, Samsung Telecommunications mobile phones project, aims to initially produce 10 lakh folder mobile phones each year at its plant here in Industrial Model Township (IMT), the flagship industrial centre of Haryana. This figure was claimed to increase to 20 lakh per year by 2010. Also, the firm has plans to invest about Rs 15 million dollar in the current financial year. During the initial period of production majority of the hardware material will be imported. The Chief Minister, however, hoped that the hardwares will be produced in India in future. The Korean Ambassador in India, Mr J.I. Choi was also present on the occasion of the inauguration. Speaking at a public function on the occasion, Mr Hooda said that Samsung has plans to invest a sum of Rs 700 million dollar in Haryana. Dwelling on the issue, he said that the investment by Samsung in Haryana was firmed up during his visit to Korea, a few months ago. He said that his government was taking all measures to promote investment in Haryana. Strengthening of existing infrastructure and creating new ones are some of the measures that the government has involved its self with in a big way, he added. The steps taken by the Haryana government has created confidence among the investors and several big time firms have approached its with investment proposals. Besides, the government has also planned to set up 11 Special Economic Zones (SEZs) which are expected to give a greater fillip towards industrial development of the state, he added. He further said that in view of the increased demand and enthusiasm of prospective investors the government will further expand and develop the IMT. From the present area of about 1,700 acres, its geographical expanse will be pushed up to 3,177 acres. The new part will be developed in four phases. Already the Maruti Udyog Ltd has procured 600 acres in the new area for setting up its diesel unit. The government has already initiated moves for acquiring 900 acres of land for expansion of the IMT. The Haryana State Industrial Development Corporation (HSIDC) will set up a technology park on 140 acres of land in the IMT which is expected to provide jobs to 12,000 skilled youths.
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Hooda lays NTN-NIE project stone
Rewari, March 7 The project, a joint venture between the NTN Corporation, Japan, and NEI Ltd. India, will be established at a cost of about Rs 115 crore. It will manufacture constant velocity joints (CVJ), a high- precision automobile component used in all modern cars. Mr Hooda said while the state had witnessed an unprecedented spurt in investment, the growth centre at Bawal had emerged as a preferred destination for domestic as well as multinational companies. The Chief Minister said he was happy to say that Japan, which was today the fourth largest investor in India, had boosted industrialisation through its world -class companies like Suzuki, Honda, Mitsubishi, Mitsui and Denso in the Gurgaon region, which was fast emerging as the corporate capital of the country. There were about 65 companies in Haryana which had Japanese collaboration. Earlier, welcoming the Chief Minister, Mr Y. Suzuki said the NTN, which was a well-known bearing manufacturer having a global production network, had now made its debut in India as well as Haryana. The Chairman of NEI, Mr C.K. Birla, said NEI’s association with the NTN, had been growing steadily since 1985. The joint venture would provide ample employment opportunities.
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Bathinda refinery to be delayed further
New Delhi, March 7 The project has already been delayed by over three years due to the delay in signing of the agreement between HPCL and the Punjab Government over the sales tax exemptions for the refinery. Official sources said: “ the project has been delayed since HPCL is currently incurring heavy losses which increased to Rs 1607.78 crore during the first nine months of the financial year 2005-06 as against Rs 777.53 crore during the corresponding period in the previous year.” Further, the global oil major BP, which has entered into a tie-up with HPCL for this project is showing more interest in marketing of its products, they added. Company officials maintained that it had also been decided to defer until next year refinery expansion projects at Mumbai and Visakhapatnam, which were scheduled to be completed this year. HPCL is expanding the capacity of its Mumbai refinery to 7.9 million tonnes a year, or about 158,000 barrels per day (bpd), from 110,000 bpd and upgrading the plant at Visakhapatnam to 168,000 bpd from 150,000 bpd. “The project is likely to be completed in the financial year 2010-11,” said Minister of State for Petroleum and Natural Gas Dinsha Patel while giving a written reply to a question raised by Akali Dal MP Varinder Singh Bajwa in the Lok Sabha today. He said about 1,996 acres of land had been acquired at Bathinda for the refinery. “ Major activities completed within the refinery premises include site-grading of 1,600 acres of refinery land, area lighting system, construction and drinking water system, power receiving and distribution system,” he said. Work had also started for the construction of office building, besides completion of a 31-km drain, a 12-km raw water channel to the refinery site and internal and the external road network. The company had acquired, said the minister, 310 acres of land at Mundra, Gujarat, for a crude oil terminal and had also secured a tie-up with the port authorities. However, the major work on the refinery was still to be started. Despite an increase in demand for its oil products, the refinery throughput of HPCL marginally declined to 9.71 MMT during the April-December, 2005, period as against 10.75 MMT in the April-December, 2004, period.
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Amritsar airport revamp to be over by month-end
New Delhi, March 7 “The upgradation and development of infrastructure, including the terminal building under first phase at Amritsar Airport, is in final stage of completion,” Minister for Civil Aviation Praful Patel informed the Parliament today. He said the ancillary buildings such as cargo terminal, fire station and ATC cum technical block have been completed. The arrival and departure areas of the terminal building have been made operational and are being utilised by the various airline agencies. The building has been completed to the extent of 96 per cent, said Minister, and only minor works are pending. The building shall be completed in all respect by March 31, 2006. Initially, the building shall be without aerobridge, the action for which has been taken and the aerobridge shall be provided within next six months. The work shall be completed within the estimated sanctioned amount of Rs 79.27 crore.
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Taj Hotels keen on international tie-ups
Mumbai, March 7 “We are in talks with many big players in Asia Pacific and other parts and soon expect to enter into tie- ups and enhance our global footprint,” Taj Hotels Resort and Palaces Senior Vice- President, Sales and Marketing Ajoy Misra said here. Meanwhile, the company entered into a joint marketing alliance with Korea-based Shilla Hotels and
Resorts. The tie-up with Shilla Hotels and Resorts would develop cross-promotional opportunities for both companies to harness each other’s strengths in their respective markets of dominance .It will give us the opportunity to work with the Shilla network to create greater awareness of the Taj brand in Korea which is one of our key markets,” Taj Hotels CEO and Director Raymond Bickson, said .”We are also looking at the Chinese market”, he
added. — PTI
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Hyundai unveils sporty Accent
Geneva, March 7 Speaking at the launch of the vehicle here, Hyundai’s Executive Vice- President of Export Management Division Lee Bong-Guo said the new car had been initially aimed at the European market. Mr Lee, who served for three years at Hyundai Motor India, however, did not rule out the possibility of the new car reaching the Indian market in the near future, considering that Accent is already an established brand in India. The three-door Accent, which is the sixth generation in its class, would be sold in the European market from April. Although Accent’s major markets have traditionally been Korea and the USA, the advanced engineering of the new Accent would find new market in other areas, Mr Lee said.
— PTI
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Mumbai, March 7
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Tata Chem buys out UK firm
Mumbai, March 7 Earlier the company’s wholly owned subsidiary (WoS) had acquired 63.50 per cent of the paid-up capital of BMGL, it said. With this acquisition, the company’s WoS now holds the entire share capital of BMGL.
— PTI
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Telelogic acquires I-Logix for $80 m
Mumbai, March 7 Godrej Industries
The Board of Directors of Godrej Industries today approved the sale of the foods division of the company (excluding the Wadala Factory) to Godrej Tea Ltd, an associate company, for Rs 70 crore, plus excess of the net working capital, if any. The company is expected to sign an agreement with Godrej Tea Ltd, for the sale of the foods division shortly, a company press note said.
Interim dividend
BHEL has declared a 85 per cent special interim dividend for the financial year 2005-06. The BHEL Board today declared the 85 per cent interim dividend, which works out to Rs 8.50 per equity share, and also fixed March 23 as the record date for payment of the dividend.
Tata Steel
Looking to fund its growth projects and acquisitions Tata Steel Ltd has signed an external commercial borrowing agreement for $ 500 million at Singapore. The syndicated term loan facility of $ 400 million was oversubscribed and a greenshoe option of an additional $100 million was exercised, the company said.
GM order for DCM
DCM Engineering Ltd., Ropar, has bagged a prestigious order worth $3. 15 lakh from General Motors, USA, for developing a high- tech V8 cylinder block called Bowtie. This will be used in the sports model cars being developed by General Motors. The engine block is being developed by the DCM technical team with direct involvement from the corresponding team at Detroit. DCM will supply 2000 cylinder blocks per year to General
Motors.
BoI pact with NCML
The Bank of India (BoI) has inked a memorandum of understanding (MoU) with the National Collateral Management Services Ltd
(NCMSL) for facilitating lending against warehouse receipts under the D-mat mechanism or manually operated mode. This arrangement would enable a large number of traders, commission agents as well as farmers.
— TNS & Agencies
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