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RCom-MTN deal in limbo
Decision on bio-fuel policy tomorrow
Daimler-Hero JV to set up plant in TN
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Surging crude may ground major airport projects
Sugar output likely to come down
Re falls by 14 paise
Realty prices to determine parking charges in M’rashtra
Cairn in pact with Lanka
Tanti Group to invest $2 b in China
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RCom-MTN deal in limbo
New Delhi, July 7 Emerging reports said Anil Ambani group was ready to meet the Reliance Industries (RIL) officials, the group led by his elder brother Mukesh Ambani, to clarify on any misunderstanding that the latter might have. Besides, there were reports that the South African telecom giant was actually looking at pulling out of the talks due to litigation from RIL looming large. Although none from RCom was ready to confirm the reports officially, but sources said RCom has written to RIL that they were willing to meet in an effort to clarify that the latter had no claim whatsoever on the RCom shares. RCom shot off a letter today, just a day before a deadline for its exclusive talks with South Africa's MTN Group ends, that they were prepared to meet RIL officials in the week of July 14 "to clarify any doubts". RCom, however, maintained that RIL's claims were untenable. Sources said India's No. 2 mobile firm has maintained that the meeting was not part of "conciliation" or "dispute resolution". There were, however, also reports that caught in the middle of the Indian billionaire Ambani siblings' feud, MTN was mulling walking away from talks for a possible amalgamation with RCom. These reports emerged after there was also speculation that RCom and MTN may actually extend their exclusivity talks to the period beyond 45-days, which comes to end tomorrow. RCom began exclusive talks with MTN in end-May. UK daily Financial Times reported that MTN was considering walking away from a tie-up with RCom because of fears that an acrimonious spat between the two brothers could leave the deal open to legal action. While MTN and RCom are said to be working on various deal structures, the FT report said there were "mounting fears" that "none of the myriad deal structures under discussion would insulate the combined company from Mukesh's lawyers." MTN would have to get the legal assurances (from RCom) that they are in a position to defend themselves against a move from Mukesh-led Reliance Industries, the report quoted Morgan Stanley's telecom analyst Sean Gardiner as saying. There were also reports that the two could extend their talks beyond the Tuesday's limit, firstly with the idea of sorting out the matters between the two brothers and secondly to also give RCom a chance to raise the funds it needs to buy out the 51 per cent stake it is looking at in MTN. A report in Wall Street Journal said the two may continue their tie-up talks beyond Tuesday's deadline. Experts said more than anything the talks might be extended only with the idea of giving Anil a chance to sort out things with his brother and also to raise up to $5-6 billion from banks to part-finance its planned acquisition. RCom may even pledge the shares of MTN to raise the funds and also provide some sort of guarantee to the lenders. Reports suggested that Deustsche Bank, HSBC and Barclays, among others, are putting in place short-term financing for RCom to finance the deal. A few Indian banks and a host of European banks have also offered an underlying commitment to lend money for the transaction. Reports said that the entire transaction is expected to be routed through a special purpose vehicle (SPV). In addition to RCom, other partners could also pick up equity in this SPV.
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Decision on bio-fuel policy tomorrow
New Delhi, July 7 The policy envisages replacement of 10 per cent of the petroleum products requirement of the country with bio-fuels by 2012. Experts say that Rs 20,000 crore can be saved if the country adopts National Policy on Bio-fuels. Which is why the July 9 meeting holds significance since alternative clean energy technologies like bio-fuels can bridge the gap between demand and supply and reduce dependence on fossil oil. Moreover, bio-diesel is coming up in a big way in states like Andhra Pradesh and the industry has been asking the government to come out with a comprehensive policy and subsidy for farmers cultivating jatropha. Minister for new and renewable energy Vilas Muttemwar told The Tribune that on July 9 the GoM would hold final discussions on the policy. Apart from the proposed policy, details of setting up an advisory biodiesel board under the chairmanship of Prime Minister to take care of all related issues on biofluels will also be finalised. Apparently the inter-ministerial tussle on setting up of the National Biofuel Mission and National Biofuel Development Board has been resolved. Muttemwar said the board would function directly under his minsitry and have members from all concerned ministries.
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Daimler-Hero JV to set up plant in TN
New Delhi, July 7 "The Indo-German joint venture will soon begin the construction of a new factory in Chennai, where it will produce commercial vehicles under a new brand name for the Indian volume market and exports," DHCV said in a statement. The plant, which would be functional in 2010, would produce up to 70,000 trucks in its initial phase of operation. The company said it plans to export from the plant to markets whose product requirements are similar to those of the Indian market. The investment plan is valued at about Rs 4,500 crore. The company said it has signed a memorandum of understanding (MoU) with the Tamil Nadu government for setting up the plant. DHCV is aiming to achieve a localisation rate of up to 80 per cent in order to optimally utilise cost advantages, it said. The proximity of the Chennai plant to the local supplier industry will greatly help utilise these cost advantages and also help the local industry and community. The plant would be set up on 400 acres of land, located at Oragadam in the direct neighbourhood to several supplier parks, where Daimler Hero Commercial Vehicles could also secure sites for future suppliers, it added. — PTI
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Surging crude may ground major airport projects
Mumbai, July 7 According to information available from various infrastructure companies, which have been bidding for developing airports in different parts of the country, the number of air passengers have fallen sharply in the past three months. This has resulted in revenues falling sharply at airports already in operation. "There is a fall in projected air traffic across all airports worldwide following the rise in crude oil prices," admits an official of GMR Infrastructure, which recently completed the swanky airport at Hyderabad. Even Mumbai airport, the country's busiest, has not been spared with a number of flights being re-scheduled. GVK, the company which operates the Mumbai airport, is already said to be planning for a slow growth in projected revenues due to fall in passenger traffic. On the whole, say analysts, air passenger growth is expected to slow down from the 25-30 per cent growth during the past few years to single-digit growth this year. "The number of air passengers from smaller towns are falling sharply as airlines have raised fares," says Anand Giriraj, who runs a travel agency in Mumbai. Many small businessmen who made use of the low fares introduced by airlines over the past many years have now taken to travelling by train. The impact of the fall in passengers will be visible when the results for the first quarter of the current financial year is announced in the next few weeks. Revenues from the airports at Bangalore and Hyderabad are expected to be poor. Adding to the woes of the private operators are pleas by airlines to government calling for lower fees. Airlines, already hit by high ATF rates, are now demanding that the government regulate the charges levied by airport operators like landing charges, navigation fees, parking and user development fees. So far, sources say, airlines have discontinued 150 flights across the country. However, this does not reveal the actual figure. Reports say, in June alone more than 1,700 flights that were scheduled to arrive or depart from Mumbai airport were `not operated' The changed situation has already thrown a question mark on the proposed new airport at Navi Mumbai. The project has been delayed as parts of the proposed facility came under the CRZ.
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Sugar output likely to come down
New Delhi, July 7 India’s sugar production for 2007-08 is 26 MT against 24 MT in 2006-07 while that for 2008-09 it is expected to be 24 MT. V.K. Bansal of Sugarasia 2008 says the government has to “decontrol” sugar and industry explore “cogeneration avenues” to increase profitability. "Since sugarcane is no longer renumerative, farmers are shifting to other cash crops, which is the main reason that production will be down to 17 MT in 2009-10," he adds. Indian sugar industry is the second largest in the world after Brazil. However, the global demand-suply gap is narrowing each year, largely due to lower production in EU and India. "In 2006-07, the world production was 164 MT and consumption 156 MT, in 2007-08, production was 168 MT and consumption 159 MT and in 2008-09, production is expected to be 166 MT and consumption 163 MT," Bansal explains. "Scrapping all curbs will allow Indian sugar mills to compete more efficiently as liberalisation will enable mills to sell sugar freely in the market and get a more direct link between prices of cane and sugar. Farmers, too, stand to benefit as the cane reservation system would be abolished," he says, adding that the matter for decontrolling is pending with Prime Minister. At present, sugar mills are required to sell 10 per cent of their production to PDS at prices fixed by the government. Even monthly quantities to be sold for remaining 90 per cent are fixed by the government . Sugar mills are required to buy sugarcane from allotted area only and at prices fixed by the states. To encourage sugar producers to divert molasses for production of ethanol, the government is being asked to provide tax breaks for ethanol producers so that mills can be persuaded to divert molasses to ethanol production. The industry can gain further edge by focusing on production of by-products in the value chain. Bagasse and molasses are two most important products .
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Pepsi drops Tendulkar
New Delhi, July 7 The dropping of Tendulkar comes on the backdrop of Pepsi axing the other two members of the Indian batting trioka — Rahul Dravid and Sourav Ganguly — earlier this year. Industry sources said Pepsi did not renew the contract with Tendulkar, who has been their brand ambassador since the 90s, following its decision to focus on younger cricketers. "The decision was also influenced in a big way by a premium demanded by the batting maestro," the sources added. As per market estimates, Tendulkar with a fee ranging between Rs 3-4 crore for endorsement per brand annually has been the most highly paid cricketer of his generation. When contacted Pepsi officials refused to comment or clarify if the company has not renewed the contract.— PTI |
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Realty prices to determine parking charges in M’rashtra
Mumbai, July 7 Cities like Mumbai, Thane, Pune, Nashik and Nagpur, which have seen a spurt in new vehicle registrations, are all set to levy parking charges on private cars and two-wheelers based on the rateable value of properties in the area. Confirming this, senior officials say, well off citizens who use public property almost free of charge must be made to pay. "Parking charges may be fixed on the basis of the ready reckoner rates," says a senior state government official. Maharashtra has a ready reckone which keeps a tab on property prices across the state, based on which stamp duty is levied. At present, parking spaces have been earmarked in major business districts of the state and these have been given out to private contractors. However, under the new proposal, even roads and bylanes in the suburbs and interior areas of every city in Maharashtra will be monetised by the respective civic bodies. This proposal has already drawn flak from car owners associations and residents' groups. "We have no alternative but to park on the roads after the BMC acquired our compound to expand the road," says R Venkateshwaran, a resident of a housing society in Borivli in suburban Mumbai. However, civic officials say, residents have been well compensated for properties acquired by the BMC. Housing societies, which give up part of their compounds, are provided with additional Floor Space Index, which allows them to build additional floors. Officials of the Brihanmumbai Municipal Corporation (BMC) say, such proposals, apart from bringing additional revenues, would curb the influx of new vehicles into the city. More than 1,200 new vehicles are registered with the Regional Transport Office at Mumbai every day. However, the actual number of vehicles entering the city could be higher as a large number of vehicles are registered in Thane, Navi Mumbai and the extended suburbs of the city to avoid high octroi charges. Observers say, the number of vehicles entering the city will go up sharply when companies like Tata Motors introduce their low-cost cars like the Nano in the market. Mumbai's municipal corporation is among the first movers to implement the suggestions of the state government. According to this body, the proposed policy will soon be unveiled to invite suggestions from citizens. However, a few organisations like the Western India Automobile Association has come out in opposition to the policy. Nitin Dossa, president, Western India Automobile Association (WIAA), told reporters that the BMC was holding car owners to ransom with such a proposal.
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New Delhi, July 7 The pact was signed by Sri Lankan minister for petroleum and petroleum development resources A H M Fowzie and Indrajit Banerjee, the chief financial officer and executive director of Cairn India, a company release here said. Block SL 2007-01-001, which is offshore North West Sri Lanka and covers approximately 3,000 square kilometer in water depths of 200 metres to 1,800 metres, was awarded to Cairn India in the recent Sri Lanka bid round. — PTI
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Tanti Group to invest $2 b in China
Mumbai, July 7 The joint venture partners have signed an agreement to acquire Honiton Energy Holdings, which will build the portfolio, a company statement said here. The acquisition will be done by Colossus Holdings, a Singapore-based holding company of the Tanti Group of companies. "This investment reinforces our commitment towards the renewable energy sector and belief in the exponential growth potential of wind energy in developing markets like China and India," Colossus Holdings Director Tulsi Tanti said. Established in 2005, Honiton has 50 MW of installed capacity and is in the process of development of additional 100MW of wind power. It has also secured agreements to develop wind farms on five separate areas in China. Yes Bank was the sole advisor to Colossus Holdings in this transaction. —
PTI |
BHEL bags 2,500-cr order Rs 446-cr contract for L&T Corp Bank deposit scheme Patni Computer’s buyback ICSA bags Rs 80cr order Eicher Motors’ June sales up Amartex outlet in Hamirpur
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