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Interest rates likely to come down
Reliance Power to list in Feb: Anil
RIL to revive sugar mills in Bihar
Sensex at new peak
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Centre to hike spectrum fee
SBI to foray into general insurance business
Inflation rises to 3.5 pc
RBI to issue Rs 10,000-cr
Jaguar, Land Rover Deal M&M pulls out of JV with Renault, Nissan
Reliance plans biggest IT centre at Ropar
India keen on services deal with WTO
CPSEs can invest in govt-owned MFs
Sun TV moves TDSAT on TRAI directive
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Interest rates likely to come down
New Delhi, January 4 The government is also considering softening bank interest rates in key sectors, such as housing, in the coming months. Indications from the finance ministry are that forthcoming elections will be kept in mind while framing the budget as also the pressure from the Left parties, who are insisting on lowering personal income tax rates. Add to this, there are also going to be more incentives and programmes for the agriculture sector and minorities in the coming budget session. The exercise towards the same has already started. The finance minister has urged the public sector banks to make easy credit available for consumer durables and non-durable purchases. The finance minister, in his meeting with the chief executives of the PSU banks, has also insisted on increasing spending on the minority sector. Sources in the banking circles reasoned the interest lowering move, saying that “the interest rates are likely to soften because the inflation is low and is likely to be in control, banks deposits are growing at a healthy pace, the economy is looking strong and the growth rates are as per the target, these strong macro-economic fundamentals are likely to see the interest rates taming in the coming months.” Bankers are also of the view that the general mood all over the world is of lowering taxes, the large economies are cutting down rates to spur economic activity and the same model is likely to reflect in India. The finance minister has already indicated earlier that with a significant direct tax collection in the past nine- month period (April-December) of the current fiscal year, there is a likelihood of lowering tax rates. The direct tax collection has grown over 42 per cent to Rs 2.05 lakh crore in April- December 2007 and are likely to cross the Rs 3 lakh-crore mark.
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Reliance Power to list in Feb: Anil
Mumbai, January 4 Chairman, Reliance Power, Anil Ambani, said at a press conference here that shares in Reliance Power would not opt for private placement ahead of the IPO, which opens for subscription on January 15. The number of shares, which will be offered to investors, will not be reduced by offering a part of it as private placement to select investors. The IPO will close on January 18. It will be listed on both the BSE and the NSE during the first week of February, he said. Ambani said the company has had a number of offers for pre-IPO placement of shares in the company, but has decided not to do so. He further added that the company would have preferred to offer 100 per cent shares in the company to retail shareholders but was hampered by regulations. "Unfortunately, only 30 per cent of the issue size could be offered to retail investors," Ambani said. Ambani said the new company, spun off Reliance Energy (REL), would be developing 11 mega power generation projects. "The 11 projects will be developed by nine special purpose vehicles," he said. He said REL would pursue projects in infrastructure, transmission and distribution while Reliance Power looks at generation. He confirmed that his companies are looking for manufacturing power equipment as well in association with global majors. However, these joint ventures may be independent from REL and Reliance Power, Ambani said. Ambani confirmed that 40 per cent of his companies’ power generation would be gas-based and that they were still tying up supplies. Meanwhile, he also exuded confidence for a “win-win” solution for both RNRL-RIL, headed by him and elder brother Mukesh in the ongoing dispute over supply of gas. “Discussions are on and we are hopeful that a win-win solution would emerge for both groups,” Ambani said.
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RIL to revive sugar mills in Bihar
Patna, January 4 The development came as a major breakthrough for the Nitish government, which was trying hard to bring the economy of the backward state on tracks. The successful execution of these deals would cumulatively fetch the government about Rs 300 crore. Talking to the media here today, state sugarcane development minister Nitish Mishra said while RIL won the bid for revival of Motipur sugar mill, HPCL got the contracts for Sugauli, Hathua and Lauria. New Delhi-based Rollcon Projects won the bid for the mill at Lohat, while S. S Infrastructure, Darbhanga, got a mill at Rayani. |
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Sensex at new peak
Mumbai, January 4 In the broader markets, the Nifty gained 1.55 per cent to close at 6,274. Today's main gainers were companies in the oil and gas, metals, banking and real estate space. Power companies, too, were on a roll following expectations of huge re-rating following the Reliance Power IPO. Among the gainers included Larsen & Toubro, Hindalco Industries, ICICI Bank, Reliance Industries, ONGC and Reliance Communication. All the scrips registered gains of nearly 3 per cent. Among today's losers were NTPC, Nalco, Sun Pharma, BPCL and Hero Honda Motors, which fell by more than 1.49 per cent each. Today's momentum was fuelled by gains from the Asian markets. |
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Centre to hike spectrum fee
New Delhi, January 4 According to DoT sources, communications and IT minister A Raja, who met Prime Minister Manmohan Singh today, briefed the latter on the department’s plans to ensure efficient utilisation of spectrum. Raja informed the Prime Minister that main reason for charging spectrum fee is that government got incremental revenue over the years and kept telecom services cheap as upfront auction charge would lead to higher initial investment, sources said. According to sources, Raja said: “Since this policy has been implemented by the department for long and is providing the government incremental annual revenue, it is desirable to continue with the existing policy instead of auction as suggested by some people.” He also pointed out that TRAI, in its recent recommendations, has also “not” suggested auction of 2G spectrum. “Auction of spectrum may also lead to legal implications as it will be a major departure from the existing policy,” he said. In 2006-07, the government received about Rs 1,956 crore from mobile operators as spectrum charges. At current rate, it is likely to increase to Rs 3,000 crore in 2007-08. However, if spectrum charges as percentage of adjusted gross revenue (ADG) are enhanced by about 75 per cent, the government would get about Rs 7,000 crore in 2008-09 and will grow every year without substantial impact on tariffs, the minister pointed out.
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SBI to foray into general insurance business
New Delhi, January 4 "We have invited expressions of interest and it should take three months or six months to identify the partner," SBI chairman O P Bhatt said on the sidelines of Bankers' Meet. A considerable due diligence is needed to decide on a partner, he said. When asked about a preferred partner, Bhatt said, "EoI is there, everybody can apply, so, wherever we see good fit we will take. We don't mind whether it is a foreign firm or a domestic one." The last date for submission of EoI by interested parties is January 21. According to an advertisement for the EoI, the bank is looking for a joint venture partner for its proposed foray into non-life insurance in accordance with the foreign direct investment regulations for insurance companies in India. The prospective JV partner is expected to bring in non-life insurance experience in mature and emerging markets, relevant knowledge of product development, risk management and other systems, technology. The group is already present in life insurance in partnership with French firm Cardif SA.— PTI
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Inflation rises to 3.5 pc
New Delhi, January 4 The wholesale price-based index stood at 5.78 per cent in the corresponding week a year ago. Despite the marginal increase in the index, it remained well below RBI projection of close to 5 per cent for the current fiscal. During the week, furnace oil got expensive by 5 per cent while bitumen and naptha rose by 4 and 3 per cent, respectively. In the food article segment, prices of coffee and vegetable moved up, while gram, moong, urad and rice became cheaper. Finance minister P Chidambaram said he would be happy if there was a free inter-state movement of food articles. It would also help the cause if there were big retail chains for procurement and supplies, he added. |
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RBI to issue Rs 10,000-cr bonds
New Delhi, January 4 The Rs 6,000-crore bond will carry a coupon rate of 7.99 per cent and will mature in 2017, while Rs 4,000 crore bonds will carry a coupon rate of 8.33 per cent and will mature in 2036, said the statement. Notably, the government has revised the limit to Rs 2,50,000 crore for issuing bonds under the market stabilisation scheme for 2007-08. The central bank last sold treasury bills to mop up surplus money on December 5, but has refrained from selling the short-term securities under the market stabilisation scheme for four weeks. It last offered longer-maturity bonds under the plan in November 1. — PTI
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Jaguar, Land Rover Deal
London, January 4 Ford has named India's Tata Motors as its preferred suitor in case of a sale and the two companies have entered into "detailed discussions." "It is possible, Ford, which is likely to continue to supply engines and components for the cars, may retain a stake in the businesses — similar to the deal it struck with the Gulf-based consortium which bought Aston Martin —although there is no certainty this will happen," Daily Telegraph reported today, quoting sources close to the development. The report said talks could run into February as Tata needs to negotiate a settlement with pension trustees and would seek to convince the unions about the safety of 15,000 British jobs accounted for by Jaguar and Land Rover at plants in Solihull, Castle Bromwich and Halewood. Tatas would need to convince the workers that these jobs "are not at risk of being moved to India," it noted. The daily said Tata's trucks dominate highways in India and the company was making passenger cars since 1991, but acquiring the two marquees would mark its foray into an unchartered luxury territory. — PTI |
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M&M pulls out of JV with Renault, Nissan Chennai, January 4 Sources said M&M decided to separate from the JV as it was unhappy with Renault and Japan's Nissan firming up multiple partnerships in India. The move comes barely a year after the parties announced plans to set up a Rs 4000-crore car manufacturing plant here. When contacted, M&M officials declined to comment. The sources, however, said M&M was peeved at the fact that Renault decided to go with Bajaj Auto for a small car project, despite the fact that the partners have an existing joint venture to produce mid-sized sedan, Logan, in India. Also, the fact that Nissan had firmed up agreement with Ashok Leyland for three separate joint ventures for light commercial venture manufacturing in India is believed to have led to M&M deciding not to be a part of the tri-lateral joint venture anymore. — PTI
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Reliance plans biggest IT centre at Ropar
Ropar, January 4 He said Reliance wants to bring up Dhirubhai Ambani Institute of Information Technology in Punjab. The government has suggested Birla farm near Ropar as an ideal site for the institute keeping in view its proximity to Chandigarh and ample availability of land. The farm near Ropar is spread across an area of about 500 acre. Earlier, a research center of Punjab Agriculture University (PAU) was being run there. However, PAU closed its center and farm was handed back to the Agriculture Department. The previous Congress government had offered the land to Tata for its Rs 1 lakh-car project. However, the Tata’s preferred West Bengal. Since Mohalli was carved out of Ropar, the residents here have been demanding some big project be brought up near the town to sustain its economy. The Birla farm is the only large chunk of land that can be used for bringing up a mega project in the vicinity. However, instead of handing over the land to a single company, the government should consider the idea of developing an IT park in the area. It is ironical that when the entire country was benefiting from IT revolution, Punjab failed to bring up even a single IT park in the state to attract the evolving industry. The only IT Park, which is coming up in the region, is being brought up by Chandigarh administration.
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India keen on services deal with WTO
New Delhi, January 4 “At a time when negotiations to open up agricultural manufacturing markets have taken centrestage at the WTO, there is a risk that the critical area of trade in services might not receive its due attention. For countries like India, this would mean a tremendous opportunity lost,” Aaditya Mattoo said speaking at a Ficci-World Bank session on the launch of the World Bank Handbook of International Trade in Services here. Additional secretary in the ministry of commerce and industry and India’s chief negotiator at the Doha Round Rahul Khullar said India’s interest in reviving the services negotiations under the Doha Round stems from the fact that “it would generate employment, put the vast pool of available skills to work and otptimise the benefits arising out of having a youthful population”. Khullar said, what is of concern is the barriers to trade in services that are likely to emerge in the future. In this context, he highlighted the importance of reform of domestic regulations and commitments to opening up of markets. “If opening trade in services is good for competitiveness, why are we afraid of competition”, he asked and cited the example of the liberalisation of the tariff regime, which has not opened the floodgates of imports. The handbook, edited by Aaditya Mattoo, Robert M. Stern and Gianni Zanini highlights the potential gains from the reform of trade in communications, finance, transport and business services are estimated to be more than five times larger than those from the comparable liberalisation of trade in goods. In the past 15 years, India’s services exports have increased fifteen-fold, from around $5 billion in 1990 to nearly $74 billion in 2006. India has also benefited a great deal from openness at home and from greater foreign participation in its own services market. The liberalisation of telecommunications, banking, insurance and transport markets has led to increased foreign investment in services and to an enhancement in the scale and quality of the services sector.
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CPSEs can invest in govt-owned MFs
New Delhi, January 4 "Public sector mutual funds mean MFs registered with and regulated by SEBI where the Government of India, its financial institutions and public sector banks hold individually or collectively more than 50 per cent of shares in the asset management company running the funds," a communication from the DPE to CEOs of navratna and mini-navratna CPSEs has said. The government had allowed CPSEs in August 2007, to invest their surplus cash in the mutual funds owned by the public sector AMCs. However, the department was approached by the CPSEs to clarify as to what would be the exact definition of a public sector mutual fund. The total surplus of CPSEs in 2005-06 was estimated at Rs 2,39,535 crore. — PTI
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Sun TV moves TDSAT on TRAI directive
New Delhi, January 4 Admitting the petition, Telecom Disputes Settlement and Appellate Tribunal sought a reply from Telecom Regulatory Authority of India within a week. In its petition, Sun TV has raised objections on TRAI's method of fixing tariffs for such a distribution of channel feed and requested for quashing the fees. During the proceeding, Sun TV condoned the delay in filing the petition as the due date for implementation of TRAI directive was in December last year. Other major broadcasters, including Zee-Turner, Star India and Set Discovery has already filed their petition challenging the TRAI October 4 circular. In their petition, the broadcasters had alleged that the price fixation by TRAI is "arbitrary and discriminatory". — PTI
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