SPECIAL COVERAGE
CHANDIGARH

LUDHIANA

DELHI



THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

RCoVL debuts at Rs 290, propels Sensex to new high
Mumbai, March 6
Reliance Communication Ventures Limited, which was today listed at the Bombay Stock Exchange, got a rousing welcome from the trading community.


Investors dump other telecom shares

ADAG group Chief Anil Ambani rings the ceremonial bell at the Bombay Stock Exchange on Monday. — PTI photo
ADAG group Chief Anil Ambani rings the ceremonial bell at the Bombay Stock Exchange

DoT questions Tatas about Idea
New Delhi, March 6
In the midst of the battle between Tatas and Birlas over stakeholding in their telecom joint venture Idea, the government has asked the former to give details of its shareholdings in the joint venture, as also of some other group companies.



EARLIER STORIES

 
A Chinese bank employee counts yuan notes at a local bank in Nanjing
A Chinese bank employee counts yuan notes at a local bank in Nanjing on Monday. China’s yuan is likely to appreciate around 3 per cent a year in the near term, a prominent economist and adviser to Parliament said. — Reuters

India becomes London’s second largest foreign investor
New Delhi, March 6
At a time when the Left parties are pressuring the UPA Government not to open the retail or finance sector for foreign direct investment, they may be surprised to know that Indian-owned businesses, including 140 Indian multi-nationals, entrepreneurs from the Indian states like Punjab and Gujarat, have heavily invested in cities like London— generating a combined turnover of approximately £8.5 billion.

Maruti may end Zen production
New Delhi, March 6
Maruti Udyog’s “Zen” model could well be nearing the end of the road, with the company likely to stop or reduce its production from this month-end to make way for other large-selling models like “Swift”, “WagonR” and “Alto”.

Arcelor to take 50 per cent stake in Moroccon firm
Brussels, March 6
Luxembourg-based steelmaker Arcelor SA said today it would buy 50 per cent of Moroccan steel firm Societe Nationale de Siderugie — known as Sonasid — saying this would strengthen its position in high-growth markets.

Corporate News
Vietnam plans unit with Essar Steel
Hanoi, March 6
The Vietnam Steel Corporation is seeking to build a $300-million hot-rolled steel mill in a joint venture with Indian steel- maker Essar Steel Ltd, state media reported today.

ICICI Bank hikes auto loan rates
Mumbai, March 6
ICICI Bank has increased the auto loan rates by 100 basis points with effect from today, a bank official said. However, there was no change in the home loan rates, he said, adding that the discount the bank had been offering on certain categories of home loans had been withdrawn.

BPCL loses Rs 4,000 cr on selling fuel below cost
New Delhi, March 6
Bharat Petroleum Corporation Ltd was losing Rs 3 per litre on sale of diesel and Rs 2 per litre on petrol, and the total revenue loss on sale of all fuels was likely to be about Rs 4,000 crore this fiscal, BPCL Chairman and Managing Director Ashok Sinha said here.

Media Video signs MoU for Rs 220-cr township project
Mumbai, March 6
Media Video Ltd said today it had signed an MOU to acquire 110 acres of land in Haryana to construct a Rs 220- crore integrated township project. Media Group is an entertainment company with interests also in real estate business.

NYSE goes public

The famous landmark of The Charging Bull statue stands in front of the New York Stock Exchange

The famous landmark of The Charging Bull statue stands in front of the New York Stock Exchange (NYSE). Founded by some traders under a tree on the Wall Street two centuries ago, the world’s biggest stock exchange enters a new growth phase this week as it goes public. The New York Stock Exchange ends 213 years as a member-owned exchange on Tuesday when it seals its purchase of electronic rival Archipelago Holdings and sets up the NYSE Group Inc, which starts trading on Wednesday.

Top








 

RCoVL debuts at Rs 290, propels
Sensex to new high

Tribune News Service and Agencies

Mumbai, March 6
Reliance Communication Ventures Limited (RCoVL), which was today listed at the Bombay Stock Exchange (BSE), got a rousing welcome from the trading community. The scrip opened strongly at Rs 290 a share, much higher than the expectation of analysts and touched an intra-day high of Rs 309 before closing at Rs 290.85 on a volume of 2.17 crore.

RCoVL Managing Director Anil Ambani, who announced the listing by ringing the opening bell, later told stockbrokers at the Reliance Infocomm headquarters that the company would hike FDI. “A mechanism would be in place after two to three weeks of listing,” Mr Ambani said.

RCoVL has already sought approval of the shareholders to increase the FDI up to 74 per cent by the month end. The company presently has foreign holding of 32 per cent just behind promoters stake of 37 per cent. In his presentation, Mr Ambani, while comparing the telecom operations of his group with Bharti and Tatas, said the performance of RCoVL was better than the competitors.

Recalling his family history, Mr Ambani said: “My mother had been the force behind the success of my father, some even said hidden force. Now she is the force behind the success of myself and my elder brother Mukesh in creating two independent Reliance groups. We will gain strength to strength and create world-class assets for prosperity of our shareholders.”

Anil Dhirubhai Ambani Group’s market capitalisation increased to Rs 86,000 crore following the listing of RCoVL.

“The market capitalisation of ADAG has jumped to Rs 86,000 crore following the listing of RcoVL today,” Mr Ambani said.

The networth of the ADAG stands at Rs 25,000 crore making it the third largest on this parameter.

The operating profit of the group stands at Rs 5,000 crore.

Mr Ambani said the group would invest Rs 5,000 crore a year over the next three years on telecom business, including broadband and wireless.

The equity of RCoVL is Rs 612 crore and will consist of 122 crore shares of Rs 5 each.

Meanwhile, the Sensex today breached the 10,700 mark on the back of across-the-board buying by FIIs. Among other things, the enthusiastic response to the listing of Reliance Communication Ventures Limited (RCoVL) buoyed the sentiments.

After opening well today, the Sensex ruled high for most of the day to gain 139 points to close at 10,735. In the broader markets, the Nifty closed at 3,188. Among the major gainers included scrips in the metals, automobile, cement, engineering, technology and infrastructure stocks.

Top

 

Investors dump other telecom shares

Shares of telecommunication companies showed mixed trends today as investors reshuffled their portfolios following the listing of Reliance Communication Ventures Ltd (RCoVL), the holding company of Anil Ambani’s telecom businesses, on the bourses.

“Many, both retail and institutional investors, have sold other telecom stocks from their portfolios and bought RCoVL.

Bharti Televentures has witnessed heavy sell out today,” Mr Suresh Paramar, a dealer with Mumbai-based Darashaw Broking and Investment Banking said.

While the biggest loser in the basket of telecom shares was Bharti Televentures that slid 1.27 per cent or Rs 5.20 to close at Rs 403.25, MTNL went down by 0.40 per cent at Rs 149 on the day.

However, Tata Teleservices grew stronger by 4.38 per cent to close the day at Rs 26.20. VSNL made marginal gains moving up by 0.43 per cent at Rs 382.

Top

 

DoT questions Tatas about Idea

New Delhi, March 6
In the midst of the battle between Tatas and Birlas over stakeholding in their telecom joint venture Idea, the government has asked the former to give details of its shareholdings in the joint venture, as also of some other group companies.

Besides Idea, the Department of Telecom has asked Tatas to give the details of shareholding in Tata Industries, which holds stake in the joint venture, and other telecom entities — Tata Teleservices (TTSL) and Tata Teleservices Maharashtra (TTML). Tatas are expected to file their reply by tomorrow.

DoT has sought details of the shareholdings on six different dates since January 2004, sources in the know said.

DoT has also sought information from the Tatas on cross-holding of various group companies, they said.

The query follows allegation by Birlas that Tatas had not complied with the licence conditions and hence, be asked to exit from Idea, where they hold over 48 per cent equity, expeditiously.

Earlier, tearing down the arguments of Tatas that as a group they were not promoters of telecom joint venture Idea and hence not obliged to exit, Birlas today urged the government to act fast on its plea, saying non-compliance by Tatas was “grave, wide-ranging and comprehensive.” — PTI

Top

 

India becomes London’s second
largest foreign investor

Manoj Kumar
Tribune News Service

New Delhi, March 6
At a time when the Left parties are pressuring the UPA Government not to open the retail or finance sector for foreign direct investment, they may be surprised to know that Indian-owned businesses, including 140 Indian multi-nationals, entrepreneurs from the Indian states like Punjab and Gujarat, have heavily invested in cities like London— generating a combined turnover of approximately £8.5 billion.

Think London, the foreign direct investment agency for London, today announced that the number of Indian companies it had assisted in setting up business in London had doubled in the past year.

Indian companies now represent 30 per cent of all foreign investment in London, making it the capital’s second biggest overseas investor after the USA, which accounts for 50 per cent, it claimed.

During the past year alone, 22 Indian companies have set up their operations in London. Three quarters of the investing businesses are in the telecom, pharmaceutical and IT sectors, led by software and computer companies from Bangalore and Mumbai.

“While much attention has been given to UK companies outsourcing jobs to India, the fact is that successful Indian businesses - notably in the technology sector - are expanding rapidly in the global market and bringing new jobs to London,” said Mr Michael Charlton, Think London’s Chief Executive.

Among the biggest new Indian investors in London last year was Bangalore-based Microland, said Mr Charlton, adding that other companies included D’zine Interactive and the Export-Import Bank of India (Exim Bank).

Mr Anupam Jhunjhunwala, Senior Business Development Manager at Think London, said: “Indian-owned businesses already in London include 140 Indian multi-nationals and generate a combined turnover of approximately £8.5 billion, representing 5 per cent of London’s total economy. Between 1997 and 2004, there were 119 Indian foreign direct investment projects in Europe, of which almost half - 55 - went to London.”

Top

 

Maruti may end Zen production
Tribune News Service & PTI

New Delhi, March 6
Maruti Udyog’s “Zen” model could well be nearing the end of the road, with the company likely to stop or reduce its production from this month-end to make way for other large-selling models like “Swift”, “WagonR” and “Alto”.

Sources, however, said the “Zen” brand would continue.

The model, once among the top-selling brands of the country’s largest carmaker, has witnessed dwindling sales since the introduction of Swift and the rising popularity of WagonR and Alto models.

Industry watchers believe that the company may come out with an all-new model under the same brand in the coming months.

Tata-Fiat network

Tata Motors and Fiat India Private Limited today announced the commencement of a Tata-Fiat dealer network to sell both Tata and Fiat cars under one roof, along with service and sales of spare parts, in 11 cities across India.

The Tata-Fiat dealer network comprises 25 existing Tata Motors passenger vehicles dealers and three existing Fiat India dealers. These 28 Tata-Fiat dealers will sell Fiat Palio (1.2 EL PS, 1.2 ELX, 1.6 Sports) and Fiat Adventure (1.6 Sports), besides Tata Indica, Tata Indigo, Tata Indigo Marina, Tata Sumo and Tata Safari. These 28 Tata-Fiat dealers, who together have 44 outlets, are located in 11 cities - Mumbai, Pune, Ahmedabad, NCR Delhi, Chandigarh, Ludhiana, Bangalore, Chennai, Hyderabad, Kochi and Kolkata.

Mr Rajiv Dube, Senior Vice-President (Manufacturing & Commercial - Passenger Cars Business Unit), Tata Motors, said: “ Between the Tata and Fiat brands, the company is in a position to offer one of the widest product offerings in the Indian market with the promise of several exciting options to come.”

The Fiat Palio range will now be available at a new attractive price of Rs 3.8 lakhs onwards (all prices ex-showroom Delhi). The 1.6 litre Adventure Sports is now available at a new uniform price across the country at Rs 5.65 lakh.

Discussions are on to explore other areas of co-operation.

Top

 

Arcelor to take 50 per cent stake in Moroccon firm

Brussels, March 6
Luxembourg-based steelmaker Arcelor SA said today it would buy 50 per cent of Moroccan steel firm Societe Nationale de Siderugie — known as Sonasid — saying this would strengthen its position in high-growth markets.

Arcelor and Morocco’s state-owned Societe Nationale d’Investissement would join an all-cash capital increase for a holding company that would take 64.86 per cent of Sonasid, the company said.

The holding company will then launch a takeover bid for the rest of the shares, offering 1,350 Moroccan dirhams ($148) in a deal valuing Sonasid at Euro 480 million ($577 million.) Arcelor, currently fending off a surprise Euro 18.6 billion ($22.13 billion) bid from rival Mittal Steel Co., is trying to convince shareholders that it would offer better value if it remained independent.

Meanwhile, a report from London said Lakshmi Mittal is considering relinquishing his controlling stake — a move that could lower the barriers to shareholders accepting his $22.1 billion hostile offer for Luxembourg-based Arcelor, a media report said today.

Lakshmi Mittal and family who own 88 per cent of the shares in Mittal Steel, is considering letting his stake fall to less than 50 per cent to address concerns of Arcelor shareholders, The Financial Times said.

Under one option being studied by the Indian billionaire’s advisers, the company could drop its insistence that the Mittal family have twice as many votes as ordinary shareholders in a new combined Mittal/Arcelor, it said.

Some Arcelor shareholders had reservations about the size of the overall stake and the preferential voting rights for his family, an advisor was quoted as saying in the paper.

The decision to reduce his stake and scrap the special voting rights might also encourage the Arcelor Board, hostile to the bid so far, to agree to open talks, it said. — AP, PTI

Top

 

Corporate News
Vietnam plans unit with Essar Steel

Hanoi, March 6
The Vietnam Steel Corporation is seeking to build a $300-million hot-rolled steel mill in a joint venture with Indian steel- maker Essar Steel Ltd, state media reported today.

If approved, the mill would be Vietnam’s first to produce hot-rolled steel and have a designed capacity of 2 million tonnes per year, the Dau Tu (Investment) newspaper quoted officials of the Vietnamese firm as saying.

They said the mill would be built in the southern province of Ba Ria-Vung Tau and its construction would take around two years.

$170 m US order

Mumbai-based Uttam Galva Steels (UGSL), the country’s galvanised steel manufacturer, has bagged a $ 170 million order from world major Stemcor to supply cold-rolled, galvanised and color coated steel, company sources said. While the deal is for supply of steel over three years, Uttam Galva Steels will fix the price of its products every quarter, thereby ensuring factoring of market dynamics through the tenure of the agreement.

Valuemart

Valuemart Info Technologies Limited (Valuemart), a Bangalore-based software development and BPO company, has hiked its stake in Tejas Infoscripts Private Limited, a city-based BPO, to 100 per cent. Valuemart, which had acquired a 74 per cent stake in Tejas in 2005, has bought out the balance 26 per cent from its promoters.

New venture

Hotmail founder Sabeer Bhatia has floated a new venture Blogeverywhere.com, that enhances the speed and functionality of e-mail browsing and allows users to post their comments on any website in the world. “In the past 10 years, there has been no significant development of technology in Hotmail. — Agencies

Top

 

ICICI Bank hikes auto loan rates

Mumbai, March 6
ICICI Bank has increased the auto loan rates by 100 basis points with effect from today, a bank official said.

However, there was no change in the home loan rates, he said, adding that the discount the bank had been offering on certain categories of home loans had been withdrawn.

The bank had also hiked the deposit rates by 50 basis points with effect from February 7.

It had hiked the home loan rates by 50 basis points, effective from February 13.

However, for the existing floating rate customers, the hike would be applicable from the next financial year, it said. — PTI

Top

 

BPCL loses Rs 4,000 cr on selling fuel below cost

New Delhi, March 6
Bharat Petroleum Corporation Ltd (BPCL) was losing Rs 3 per litre on sale of diesel and Rs 2 per litre on petrol, and the total revenue loss on sale of all fuels was likely to be about Rs 4,000 crore this fiscal, BPCL Chairman and Managing Director Ashok Sinha said here.

Mr Sinha said the company was also losing Rs 171 on an LPG cylinder and about Rs 12 per litre on kerosene.

Mr Sinha said the company expected at least one-fourth of the Rs 11,500 crore bonds that the government would issue to oil retailers for compensating them for losses suffered on the sale of LPG and kerosene below cost. — PTI

Top

 

Media Video signs MoU for
Rs 220-cr township project

Mumbai, March 6
Media Video Ltd said today it had signed an MOU to acquire 110 acres of land in Haryana to construct a Rs 220- crore integrated township project. Media Group is an entertainment company with interests also in real estate business. The project is expected to generate Rs 50 crore in income over the next three years to the company .The development of the project will begin in October, 2006, and will be completed in around 36 months, it said. — PTI

Top

  bb
BRIEFLY

Allahabad Bank office in China
Kolkata, March 6
Allahabad Bank today obtained approval from the China Banking Regulatory Commission to open a representative office in Shenzen. A statement by Allahabad Bank said the bank had already received RBI’s licence for opening a full-fledged branch in Hong Kong.This would be Allahabad Bank’s first overseas presence. The bank was awaiting approval from the Hong Kong Monetary Authority. — PTI

Reliance Petro
Mumbai, March 6
Reliance Petroleum, a group company of Mukesh Ambani- controlled Reliance Industries, today filed the red herring prospectus with SEBI for its about Rs 6,000 crore IPO slated for April. The IPO proceeds will be used to part-finance the company’s Rs 27,000- crore project in Jamnagar. — PTI

Macmillan India
Mumbai, March 6
Leading publisher Macmillan India Ltd said today it would acquire the 100 per cent equity stake in US-based Interactive Composition Corp for Rs 15 crore.The company will enter into a formal agreement for the purchase shortly. ICC ,USA, has a wholly owned subsidiary in India, it said.The acquisition is expected to enable the company enhance its presence in the USA and contribute to increased revenue growth in the North American region. — PTI

CLB directive
New Delhi, March 6
The Company Law Board (CLB) has restrained Nalwa Sons, a part of the O.P. Jindal group, from issuing shares under the employees stock option scheme and asked the company to file replies within two weeks. Hearing a petition filed by Ricky Kirpalani, a minority shareholder, and his associates, CLB Chairman N. Balasubramanian passed an interim order on March 3 restraining the shell company from allotting its share to employees. This will be applicable till the company files its reply. — PTI

Bt cotton
New Delhi, March 6
Mahyco Monsanto Biotech Ltd has cut the technology fee for Bt cotton by 30 per cent. The reduction in the price follows talks between the government and Mahyco Monsanto in the wake of farmers’ suicides in several states after crop failures due to use of spurious seeds, Science and Technology Minister Kapil Sibal told a news conference today. Mahyco Monsanto had been dragged to court by the Andhra Pradesh Government in January for not adequately compensating the farmers in the state who failed to receive the desired yields for some Bt cotton varieties. The Andhra Government had also filed a petition in the Monopolies and Restrictive Trade Practices Commission. against the high technology fee of Bt cotton seeds. — TNS

Kpit Cummins
New Delhi, March 6
Kpit Cummins Infosystems Ltd said today it would acquire the 100 per cent stake in Bangalore-based CG-Smith Software Pvt Ltd for Rs 38 crore. Kpit Cummins would pay Rs 35 crore upfront and balance after six months upon the fulfilment of certain performance conditions for the 100 per cent stake in the software solutions and services company, the IT company said. — PTI

Airtel cuts rates
New Delhi, March 6
Following a reduction in access deficit charge, which private operators have to pay telecom PSU BSNL, Airtel today announced a reduction in ISD and STD rates for both its post as well as pre-paid mobile customers. All STD rates currently above Rs 2.40 a minute will be reduced by 25 paise for Airtel mobile users. The ISD rates for mobiles have also been reduced. For mobile customers, all ISD rates will be reduced to Rs 7.20 per minute (USA, Canada, Europe) and Rs 9.99 per minute (Africa and Gulf countries). — PTI

BSNL PCO booths highest in Punjab
Chandigarh, March 6
Bharat Sanchar Nigam Limited (BSNL) has the highest concentration of PCO booths in Punjab, including Chandigarh. As against 42,317 booths of BSNL, HFCL Infotel has 41,701 booths followed by Reliance Infocomm (37,621 booths) and Tata Teleservices (19,372). This information was given by the Union Minister of State for Communication and Information Technology, Dr Shakeel Ahmad. He said that as on January 31, the maximum number of BSNL booths were located in Ludhiana (6,260), followed by Amritsar (4,949) and Gurdaspur (4,450). — TNS

Three Max India workers awarded
Ropar, March 6
Max India Limited Deputy General Manager S.P Bansal said here today that Mr Subhash Chand, a technician, and Mr Sham Lal, a senior operator, working in a business unit of Max India Limited were jointly honoured with the Kirti Shiromani award. Mr Jag Lal Yadav, an operator, was given the Kirti Vir Award. The awards were presented by the state Minister for Labour and Employment, Choudhary Jagjit Singh, at a state-level function in Jalandhar. — TNS

IHG pact for Crown Plaza
New Delhi, March 6
Intercontinental Hotels Group today announced signing an agreement with Today Hotels Pvt Ltd to manage Crown Plaza, scheduled to open in the national capital region in the last quarter of this calendar year. Under the agreement, United Kingdom’s Intercontinental Hotels Group (IHG), would manage the Gurgaon-based hotel slated for opening by this year end, a statement from IHG said here. — PTI

Lok Adalat for bank loanees
Chandigarh, March 6
Haryana State Legal Service Authority, with the involvement of commercial banks, has been holding lok adalats all over Haryana for the settlement of cases related to bank loanees. Both pre-litigative and post-litigative matters are being covered by them. Mr B.P. Chopra, General Manager, PNB, Haryana Zone, said the Haryana State Legal Service Authority has decided to hold such adalats exclusively for women borrowers on March 11 at district headquarters. The banks have been asked to refer all eligible cases to these adalats. PNB is the lead bank of the state. — TNS

Development body in Himachal
Nahan, March 6
Himachal Chief Minister Virbhadra Singh, while addressing a press conference here yesterday, said a single-line industrial development authority would be created in every industrial area of the state to look after the civic amenities. The Bill regarding the same has been tabled before the state Assembly. The CM said labour officers would be appointed in the industrial areas to ensure the payment of the minimum wages to the factory workers. — OC
Top



HOME PAGE | Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Opinions |
| Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi |
| Calendar | Weather | Archive | Subscribe | Suggestion | E-mail |