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Wednesday,
January 15, 2003, Chandigarh, India  
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Moody’s downgrades RIL outlook Cellular-WLL row deepens
Reliance mobile launched
Infosys centre in Hyderabad |
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SBI notices to 341 defaulters
Pepsi cuts prices
LIC Housing Finance cuts rates
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Moody’s downgrades RIL outlook New Delhi, January 14 “The rating action reflects concerns relating to the aggressive internal and external expansion by the Reliance group and the growing business and financial risk associated with rapid expansion”, Moody’s said in a statement. “The outlook for the rating has been changed from stable to negative”, it said. Moody’s Investor Services affirmed Ba2 rating unsecured debt securities of RIL. Observing that Reliance’s recent expansion was “significantly outside its well protected, strong margin petrochemical business”, it said “Moody’s believes that this rapid expansion into liberalising and more competitive markets will lead to weaker profitability and operating cash flow margins.” It cited refining and telecom operations in particular as reasons for weaker operating cashflow margins and said the expansion at the same time would increase the investment levels. “It is unclear at this stage how much of the financing for these various investments will be taken on Reliance Industries balance sheet,” the statement said while clarifying that the group’s telecommunication companies — Reliance Infocomm and Reliance Telecom — are only treated as non-consolidated associate investments. It also wondered as to how much would be debt-financed via Reliance Industries associate companies and how much would be provided by strategic or financial partners. RIL is the top private corporate in India, having interests in chemicals, polymers, fibres and oil refinery with growing interest in telecommunications and power generation. RIL has generated a consolidated turnover of Rs 5,710 crore. Moody’s Ba2 ratings, however, continue to reflect the Reliance group’s entrenched domestic positions in its
petrochemical activities, including very strong market shares, its world class production facilities with strong economies of scale, the statement said. It also cited the group’s strong margin performance and good cash flow generation in
petrochemicals and derivatives even during periods of cyclical weakness for the Ba2 rating. For its rating action, Moody’s took into account the recent expansion, including acquisition of “minority position” in IPCL for a little over $ 500 million. The statement said the expansion has included RIL merging with its sister company Reliance Petroleum, launching of its new low cost telecom services across India, announcement to build a nationwide petrol retailing network, increased stake in power generation and transmission company BSES and a major gas discovery in south-western coast of India.
PTI |
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Cellular-WLL row deepens
New Delhi, January 14 The resentment from the industry comes soon after it had come out with a public letter to TRAI which was published in several newspapers yesterday. The Cellular Operators Association of India suggested that private cellular operators would offer interconnect facilities on the same basis as they get from basic operators in terms of tariff for each call on their respective networks. “We are paying Rs 1.20 to fixed line operator for every call made from cell phone which in turn is passed on to the customer making cellular services expensive. We are ready to interconnect provided this is on the same basis,” Rajeev Chandrashekhar, Chairman of COAI told reporters here. The cellular operators met here to discuss the situation arising out of TRAI issuing directives to the Bharti group and other cellular operators asking them to provide interconnection to the Tatas for completing their calls on WLL-based limited mobile services. All operators agreed that if the access charges of Rs 1.20 being paid by the cellular operator to basic operators was withdrawn, they would be able to offer free incoming call on cell phones besides some cut in airtime for outgoing calls. The cellular operators said over 1 crore cellular subscribers across the country were made to pay about Rs 1,600 crore annually by way of access charges of Rs 1.20 for making calls on fixed line phones from their cellular phones. |
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Reliance mobile launched
Mumbai, January 14 Reliance IndiaMobile’s rate of 40 paise per minute is the lowest telephony rate in the country, whether it is mobile or fixed line, local or STD, claims the company. The real cost of a call is lowered further with billing at 15 seconds pulse rate and free incoming calls. It also offers the lowest STD rates in the country at 40 paise per minute — from Reliance IndiaMobile to Reliance IndiaMobile under the Dhirubhai Ambani Pioneer Scheme. Mr Mukesh Ambani said “We are overwhelmed by the interest expressed by the people to the next generation Reliance IndiaMobile service and the Dhirubhai Ambani Pioneer offer,’’.
UNI |
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Infosys centre in Hyderabad Hyderabad, January 14 Spread over 30 acres at Madhapur on city outskirts, the centre, presently housing 800 employees, has the expansion potential to take the strength to 8,000 in the next two years, Chairman and chief mentor of Infosys N. R. Narayana Murthy told reporters. “From infrastructure point of view, we are fully prepared... It is entirely left to the leadership of the centre here to take advantage and make it happen,” he said. Sounding optimistic about India’s growth in IT industry, IT-enabled services and business process outsourcing, the software icon said “The media reports speak of the likely growth in IT and technology spending by global corporations. Thanks to outsourcing operations of Indian companies, they will have much better future. We will bring better value for money”. The Hyderabad centre, developed in a record time of nine months after the company signed an MoU with the state government during Partnership Summit in January, 2001, has already notched up an export revenue of Rs 352 crore. Mr Naidu urged Mr Murthy to open a similar development centre in Visakhapatnam where a Special Economic Zone was being developed by the state.
PTI |
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SBI notices to 341 defaulters Chandigarh, January 14 Talking to TNS here today, Mr D.L. Manwani, General Manager (Development & Personal Banking), SBI, disclosed that the bank was fully geared up to takeover the assets of defaulters, if they failed to respond positively within the given period. Unlike other banks the SBI had decided to give adequate time to them to come forward to settle their cases before issuing notices. The NPA management cell have received overwhelming response from a large section of defaulters. In the last week of December alone, 79 cases amounting to Rs 20.82 crore have been settled. Mr Manwani said among others, notices have been issued to RMI Cycles, Doon Valley Rice, Saket Steels, Bakshi Industrial Corporation, Dixon International, Wood Land Lamps, Himachal Steel Mills and Singla Furnace. Notices have also been issued to Grewal Petroleum, K.K. Jain Traders, Punjab Indo Fabricators, Pashupati Woollen Mills, Narain Rice Mills and Karan Rice Mills. These notices included 179 in Punjab, 60 in Haryana, 35 in J&K and 11 in Chandigarh. Mr Deepak Chawla, G.M, claimed that 19 commercial branches in the Chandigarh circle alone have issued 106 notices for recovery of Rs 51.29 crore in the circle. |
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Pepsi cuts prices
New Delhi, January 14 The company also reduced prices of its smaller bottles in select markets. Returnable glass bottles of 200 ml and 300 ml will now be available at Rs 5 and Rs 7 against Rs 10 and Rs 7 respectively, in high-growth areas such as east Uttar Pradesh. In the rest of the northern markets, including Delhi, the 300-ml bottle is priced at Rs 8.
UNI |
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