London/Mumbai, December 13
It may not come as a surprise if Tata and CSN clash more fiercely over Corus, which for the second time has deferred a meeting of its shareholders to take a call on its suitor.

According to different reports, the final bidder may offer anywhere up to 550 pence a share, although both rivals are tight-lipped about what they have in store for shareholders.

The adjournment of the December 20 EGM, announced by Corus late last night, should give Tatas more time to muster the support of shareholders.

This is the second time that the shareholders’ meeting has been put off, with the first time being postponement of the December 4 meeting to enable CSN make a formal bid.

This time around, Tata Steel might use the additional time to seek support of the shareholders, sources close to the development said.

The sources said Tatas wanted to use the opportunity to hold parleys with shareholder lobbies in order to gain their maximum support for the bid.

However, investment bankers are still divided on the prospects of a further hike in the bid, with some saying that a deal at around 525 pence per share might not be a bad one and others seeing it go up to as much as 550 pence.

Then there are those who still maintain that anything beyond 500 pence is a costly affair and depends on the risk appetite of the acquirer.

The adjournment holds significant importance as the ball is now in the shareholders' court, and whoever manages to please them could walk away with the deal, they added. — PTI 

New Delhi, December 13
Reliance Communications is understood to be in touch with leading global equity firms that are trying to acquire India's third largest mobile operator Hutchison-Essar.

The Hong Kong-published Asian edition of the Financial Times said three American firms -- Carlyle, Blackstone and Texas Pacific Group -- were in talks with RCL to buy a 67 per cent stake held by Hutchison in the joint venture Hutch-Essar

According to reports, the deal, if successful, could fetch Hutchison as much as $14 billion and would be Asia's largest private equity deal.

However, industry sources pointed out that the deal could face hurdles with Essar expected to fight strongly against any such move and it was possible for the corporate house to take legal recourse.

They said the latest action could be a result of Providence, Citigroup and other investors succeeding in buying out some equity in Aditya Birla Group's Idea Cellular ahead of its proposed IPO.

Hutch-Essar also had plans to go public but differences between the foreign and Indian partner have put paid to such wishes.

A top official of Essar Teleholdings had earlier said: "we have no knowledge of anybody approaching our partner for buying them out." He, however, had declined to comment on whether Essar had a first right of refusal and whether the present regulatory norms permitted another telecom player acquiring equity in their venture. He was asked if Reliance Communication, along with Blackstone, was pitching for Hutchison's stake.

Sources said Reliance Communications, which has evinced interest in expanding its GSM-based mobile operations throughout the country, may look for such opportunities.

According to reports, Hutchison wanted money to revive its struggling third-generation telecom division. The company has been unable to come out with an IPO to generate funds in view of differences between Hutch and its Indian partne, Essar Teleholdings.

Going by this, Reliance Communication may face hurdles in acquiring Hutchison's stake. — PTI 

Chandigarh, December 13
The Agriculture Department, Haryana, and Haryana Agricultural Marketing Board have joined hands to rope in farmers across Haryana for organic farming of wheat. The wheat thus produced will be sold under the brand name of “Harshakti”.

After marketing their organic farming initiative under its Farmers Marketing Assistance Scheme, the Agricultural Marketing Board has managed to get orders for almost 600 quintals of desi wheat (C-306) variety. The Agriculture Department has thus commissioned farmers in the three districts of Panchkula, Rohtak and Faridabad, through their Pragatisheel Kisan Clubs, for sowing and cultivating desi wheat without the use of chemicals, insecticides or pesticides. A total of 76 acres of land in these three districts will be put under organic wheat cultivation.

“We are expecting a yield of 10 quintals per acre. Because of the growing demand for organic food in the region, we decided to take this up and help the farmers reap a rich harvest. Though we had initiated organic farming of wheat last year, it was restricted to just 30 acres in Panchkula. But the success last year prompted us to take it up in other districts,” said Mr R.K. Khullar, Director, Agriculture, Haryana, .

He also informed that as against an assured price of Rs 1,300 per quintal last year, farmers have been assured a price of Rs 1660 per quintal this year. Though the Agriculture Department had initiated this organic farming on its own last year, this year they decided to rope in Agriculture Marketing Board for marketing the organic wheat.

The organic wheat cultivation is more eco-friendly. It may be noted that organic wheat flour sells for Rs 60 to Rs 70 a kg in various department stores. It will now be available at almost one-third of this price, says Ms Navraj Sandhu, Managing Director, Agricultural Marketing Board.

Chandigarh, December 13
Tata Motors, which is facing heat in West Bengal with regard to its small car project, has contacted Punjab Chief Secretary K.R. Lakhanpal, showing keenness to set up a a mini-truck manufacturing unit in the state.

Earlier, the Punjab Government had made a liberal offer to Tata Motors to set up a small car manufacturing unit but the company preferred West Bengal .

Sources said Tata Motors would not shift the small car project from West Bengal to Punjab. The mini-truck unit has nothing to do with the West Bengal project.

Tata Motors is keen to invest Rs 800 crore on the mini-truck project. Punjab had offered concessions to the tune of Rs 1700 crore for the small car project.

Punjab had offered three sites to Tata Motors to set up its car project. As no other unit has come up at these sites in Nabha, Laddowal and Birla Farm, near Ropar, the government will offer any of the sites for the project. 

New Delhi, December 13
India-born billionaire Lakshmi Mittal will pay Russia's Lukoil $980 million (Rs 4,410 crore) to buy 50 per cent stake in a Kazakhstan oil firm and may later transfer it to ONGC-Mittal Energy Ltd (OMEL), his venture with ONGC.

Separately, OMEL plans to give Total of France and Royal/Dutch Shell a stake in its two Nigerian deep-sea blocks.

"Mittal Investment will buy 50 per cent stake in the Russian company's wholly owned subsidiary in Kazakhstan, Caspian Investments Resources. If approved by local authorities and Lukoil, the acquisition will go to OMEL at a later stage," an industry official said.

Late last year, Caspian Investments Resources served as the vehicle for Lukoil's purchase of Nelson Resources, a Canadian firm with assets in Kazakhstan.

The deal with Mittal Investments, planned for completion in early 2007, also covers debt of $160 million held by the venture. Caspian Investments Resources has reserves totalling 270 million barrels of crude.

The official said OMEL will give Total of France 18 per cent stake in Block 279 and 26 per cent Block 285 in Nigeria, the only country where the joint venture between the world's largest steel producer and ONGC has been successful till date.

Shell will also be roped in as a partner in the block with 10-15 per cent stake, he said. OMEL had agreed to pay $50 million to Nigerian government for Block 285 and $65 million for Block 279. Total and Shell will have to bear this payment in proportion to their shareholding.

As part of deal with Total, OMEL will have the right to take a stake in the French company's Block 215.

ONGC Chairman and Managing Director R S Sharma confirmed the talks with Total and Shell for the Nigerian oil blocks but refused to divulge details.— PTI

New Delhi, December 13
The government has decided to close down seven non-operating cement plants out of the ten run by the Cement Corporation of India (CCI) while the remaining three will be expanded and modernised, Minister for Heavy Industries Santosh Mohan Deb told the Lok Sabha today.

''The machinery of the plants being closed down has become obsolete while the remaining three plants, which will continue to run, are earning good profits,'' he said replying to a discussion on the Dalmia Dadri (Acquisition and Transfer of Undertakings) Amendment Bill, 2006.

The minister said those cement plants, which could not be revived, were being sold off. ''People were more interested in buying the land of the cement plants than running the factory,'' he noted.

Referring to the Bill, which was eventually passed by voice vote, Mr Deb said the government had accepted the recommendation of the Parliamentary Standing Committee to close and dispose of the assets of the Charkhi Dadri cement plant and there was ''no question of keeping the House in the dark.''

Stressing that there was a ''transparant panel'' to see to the sale of its land through public auction, Mr Deb said whatever price was fixed in the auction would be payable by the buyer. ''Liabililties will be paid through the proceeds of the sale of the land,'' he added. — UNI

Mumbai, December 13
Raymond Ltd today signed a 50:50 joint venture agreement between Ring Plus Aqua Ltd , a subsidiary of the company and AJ Rose Manufacturing Company of the USA (AJ Rose).

Raymond said the agreement was signed for setting up a project for manufacture of sheet metal components by establishing a manufacturing facility in India at an estimated initial project cost of Rs 16.6 crore. — UNI

New Delhi, December 13
The Ministry of Food Processing Industries has urged the Finance Ministry to consider a uniform VAT of 4 per cent on all basic processed foods, nil or low excise duty on food grains, condiments & spices, fruits & vegetables and strong fiscal support for R&D in the food processing sector.

This was stated by Mr P.I. Suvrathan, Secretary, Ministry of Food Processing Industries, here today while unveiling the strategic interventions proposed by the ministry to give a shot in the arm to the sector.

Mr Suvrathan also announced that a Central Food Authority would be in place in few months to oversee the implementation of the integrated food law in place of the 16 laws that govern the food sector.

Addressing an Industry Consultation Meeting on ‘Strategy for enhancing growth & competitiveness of the food processing sector in India’ organised by Ficci and the National Manufacturing Competitiveness Council (NMCC), Mr Suvrathan said the ministry was looking beyond just five years and had zeroed in on four key areas — creation of a corporate structure at the district level in the shape of mega food parks, setting up of modern and hygienic abattoirs, upgradation in quality of street food and provision of fiscal incentives to drive the growth of the industry.

Dr V Krishnamurthy, Chairman, NMCC highlighted the potential of the food processing sector in increasing farm incomes and creation of jobs.

He said the decisions relating to the growth of the sector would be finalised in the next two days.

Mr Suvrathan said the government had decided to set up mega food parks in 30 districts of the country at a cost of Rs 50 crore each for accessing the farmer. Under the scheme, the processor and the retailer would reach out to the farmer, especially farm and marginal framers, tailor production, and quality of the produce to raise farm productivity and meet the exacting export norms.

Describing meat processing as the most neglected area, the Secretary said, about 50 modern abattoirs would be established in the next two to three years with a provision of viability gap funding.

Mr P.M. Sinha, Chairman, Ficci Agriculture Committee, underlined the need to persuade the retail chain to develop backward linkages with the farmers to improve their productivity and produce for the market. 

Kolkata, December 13
Allahabad Bank's proposed joint venture with Punjab National Bank (PNB) for setting up a banking subsidiary in Kazakhstan is understood to have been put on hold.

Allahabad Bank sources said no progress had been made so far regarding the formation of the JV, where PNB was likely to take the major role with a shareholding of 60 per cent.

The Kolkata-based bank was supposed to hold 40 per cent in the JV.

The sources said Allahabad Bank, along with three others partners — Indian Overseas Bank, Karnataka Bank and Dabur — would approach Insurance Regulatory Development Authority (IRDA) during the middle of January for obtaining licence for setting up a non-life insurance company along with overseas partner Sompo of Japan.

The Indian partners had already formed a company Universal Sompo General Insurance Company Limited and had applied to RoC for registration.

The company would be registered in Mumbai.

In the non-life JV, Allahabad Bank would hold 30 per cent, Indian Overseas Bank 19 per cent, Karnataka Bank 15 per cent and Dabur 10 per cent.

As per regulations, Sompo would be holding 26 per cent.

Sources said this would be first venture into the non-life insurance business by public sector banks in the country.— PTI