The Tribune, Chandigarh, India

	Govt may cancel NTPC’s mega order to TPE New Delhi, November 25 In the face of alleged multi-crore rupee kickback, which is being probed by the CBI, the government is considering cancelling power PSU NTPC’s Rs 2,000-crore contract with a Russian equipment firm. When asked whether the contract for importing equipment to Russian firm Technopromexports (TPE) would be cancelled, Power Minister Shushilkumar Shinde told PTI, "I can not comment as the matter is with the Cabinet." NTPC had given the contract to TPE in 2005, when the PSU was headed by CP Jain, for supplying equipment to a power project in Bihar. Sources in the know, however, said that the Ministry of Power has sent a proposal to the Cabinet for cancelling the contract. The CBI had registered a case in 2006 against unknown officials of NTPC, TPE and unknown others, a CBI spokesperson said when asked if the issue is being probed. The three-year-old CBI investigations into the alleged irregularities in awarding of the contract is yet to be completed as the agency is still awaiting information from the UK and Latvia. "The CBI has issued Letters Rogatory (LRs) through the competent courts for investigation and information to the UK and Latvia. "Since the complete information has not been received from abroad, the investigation is yet to be completed," CBI spokesperson Harsh Bhal told Refraining to give further information as the case is in progress, Bhal said the investigations of the case pertaining to within India have been partly completed and a report was sent to the Ministry of Power in June this year. As per media reports, some officials of the public sector power generator accepted bribe for awarding the contract to the Russian firm. The Board of NTPC is believed to have given its go-ahead to the cancellation of the contract with TPE, sources said. NTPC's Rs 8,000-crore Barh stage-I project in Bihar is running behind schedule due to contractual dispute with TPE as the Russian company was asking a higher price for equipment due to increase in raw material costs. TPE had been given contract for supplying boilers and power machines for turbines and generator sets for three 660- MW units of Barh-I project at a contracted price of Rs 2,000 crore. NTPC has also served a legal notice to the Russian company regarding the same. — PTI
	Tata Motors eyes stake in Swaraj Mazda Ruchika M. Khanna Tribune News Service Chandigarh, November 25 The news of the UK-based private equity fund, Actis, trying to offload its stake in Swaraj Mazda Isuzu here, has suitors now queuing up. Other than Tata Motors, some leading private equity funds and a Kolkata-based engineering company is reportedly eyeing to pick up the stake in Swaraj Mazda. Actis has a 7.74 per cent stake in the company directly. It also owns a 9.28 per cent stake in the company through its holding company CDC. Being a strategic investor, the company is now exploring exit options, initially for the 7.74 per cent share that it owns directly. Actis had picked up this stake in the company in 2004, reportedly for Rs 370 crore. Sources in the company here said Tata Motors is the frontrunner for buying stake in the company. By acquiring a stake in the company, Tata Motors, which is the country’s largest bus and truck carmaker, will be able to consolidate its position in the light commercial vehicle market in North India. Swaraj manufacturers light commercial vehicles like trucks and buses, ambulances, water tankers and special vehicles. Besides catering to the domestic market, the company also exports to countries like Nepal, Zambia, Bangladesh, Kenya, Tanzania, Rwanda, Ghana, Ivory Coast and Seychelles. Presently, Sumitomo Corporation of Japan owns a majority stake of 53.5 per cent stake in Swaraj Mazda. The Japanese major had upped its stake earlier this year, after Punjab Tractors Limited (PTL) sold off its share in the company. It may be noted that Swaraj Mazda was established in 1983 with a joint partnership between Sumitomo Corporation and PTL. It later took on board Isuzu and Mazda for technical collaboration, with Isuzu now owning 1.99 per cent stake in the company.
	Gas Row RIL can’t dub MoU as family pact: RNRL R Sedhuraman Legal Correspondent New Delhi, November 25 Reliance Natural Resources Ltd (RNRL) today contended in the Supreme Court that Reliance Industries (RIL) could not shy away from endorsing and implementing the MoU between the Ambani brothers, Mukesh and Anil, as any decision taken by Mukesh was binding on RIL for several reasons. RIL Board had passed a resolution on July 27, 2004, delegating all its powers to Mukesh, who was the company’s promoter and CMD. He also held controlling stakes in the company and was its life-time director, the position which had no deadline for retirement. In short, the RIL Board had made him the “alter ego” and the “directing mind and will” of the company, senior counsel Ram Jethmalani argued before the special Bench headed by Chief Justice KG Balakrishnan. In view of all this, there was no way RIL could dub the MoU as a family document and argue that the agreement was not binding on it, Jethmalani pleaded with the Bench, which included Justices B Sudershan Reddy and P Sathasivam. RNRL chief Anil Ambani, who was present in the court throughout the day yesterday, did not turn up today. Jethmalani also explained how RIL was obligated to complete the demerger scheme as envisaged in the MoU and supply gas to RNRL at $ 2.34 a unit, irrespective of the fact that the government had fixed the rate at $4.2 a unit. Under Section 392 of the Companies Act, if the scheme did not go through as per the MoU, RIL would have to be wound up which was not in the interest of millions of shareholders. Jethmalani said the court had full powers and jurisdiction under Sections 391 and 392 of the Companies Act to ensure the implementation of the scheme by removing all hurdles. The gas supply agreement should have been implemented and finalised after the control of RNRL was transferred to the Anil Dhiribhai Ambani Group (ADAG). Clause 17 of scheme clearly envisaged the division of companies of Reliance group of companies between Anil and Mukesh, while Clause 19 mandated the “suitable” arrangements between RIL and RNRL for the supply of gas. He also maintained that RIL could not enter into any contract without ADAG’s consent.
	Gold glitters at Rs 18,000 Tribune News Service Mumbai, November 25 Gold prices touched Rs 18,000 mark per 10 grams in the bullion market amidst speculation that central banks around the world would continue to increase their holdings in the yellow metal. According to members in the gold trade, there is speculation that the Reserve Bank of India may attempt to buy more gold from the International Monetary Fund. The IMF is planning to sell 403.3 metric tonnes of gold. India purchased the entire tranche of 200 MT of gold that was put on sale by the IMF late last month. The RBI had paid around $1,058 per ounce of gold. The central bank is tight-lipped about its next move but speculators are pushing up gold prices, according to the trade. One section of analysts say gold prices may go in for a sharp correction before resuming its upward move as central banks around the world dump dollars for the precious metal. Following India's purchase of gold other buyers have emerged for the the stash being unloaded by the IMF. Vietnam and Mauritius are other buyers though the quantities picked up by these two countries are much smaller.
	Punjab seeks sops for industry Ajay Banerjee Tribune News Service New Delhi, November 25 Hemmed in by Pakistan on the one side and tax concessions enjoyed by states of Himachal Pradesh and J&K on the other, Punjab has yet again made a fervent plea to the Central government to save the industry in the state. Punjab Industries Minister Manoranjan Kalia, while talking to mediapersons on the “Punjab Day” at the ongoing India International Trade Fair here said, “Punjab deserves and needs special incentives for all agro-based and dairy farming industry. This will automatically attract the food-processing units in big numbers. Agriculture and dairy farming are two of the biggest resources of Punjab and they need to be nurtured.” “This will also help Punjab to counter the ill effects of the tax concessions given to neighbouring hill states of Himachal Pradesh and J&K,” he said. Industry in Punjab is at a locational disadvantage - being far away from the sources of supply of raw materials and from the ports. He said Punjab government has requested the Central government to immediately end such discriminatory policies and put an end to the special concessions given to the hill states. The period of concessions to these states ends on March 31, 2010. Kalia said it should not be extended else it could spell doom for Punjab. Kalia said he has suggested to the Central government that special economic package should be state-specific and keeping in kind the natural resources of each state. “The concessions given to hill states have impacted us the most as Haryana enjoys a locational advantage of being close to Delhi. At present, the northern states are competing with each other instead of collectively competing with countries like China,” he added. Punjab, he said, has no objection in case the government provides special concessions for encouraging hydropower generation, tourism or fruit-based industry in Himachal Pradesh and J&K. At present, the industrial scenario in Punjab is largely dominated by small-scale industries. There has been an increase in exports and it stood at Rs 13,888 crore for the year ending March 2009. He said despite all odds, Punjab has taken several steps during the past two years to facilitate the growth of existing industry and to attract new investments. In the report on “Doing Business in India - 2009” released by the World Bank, Ludhiana has been adjudged as No.1 place where it is easiest to do business, he said.
	RIL refineries to get one-fifth of gas from KG-D6 New Delhi, November 25 Reliance Industries has been allocated 2.34 mmscmd of gas from its KG D-6 fields to meet just about one-fifth of the gas requirement at its twin refineries at Jamnagar in Gujarat. RIL had sought 11.80 million standard cubic meters per day of KG D-6 gas to meet feedstock requirement at its twin refineries but it got only 2.34 mmscmd. An Empowered Group of Ministers (EGoM) had on October 27 allocated one-fourth of the additional 20 mmscmd gas that RIL is ready to produce from KG-D6 to refineries. "Refineries had projected a demand of 25.20 mmscmd but since the EGoM allocated only 5 mmscmd, the same has been allocated on pro-rata basis," an Oil Ministry official said. State-run Indian Oil got 1.6 mmscmd while HPCL and BPCL have been allocated 0.26 and 0.20 mmscmd, respectively. Private sector Essar Oil would get 0.60 mmscmd against a demand of 3 mmscmd for use at its Vadinar unit in Gujarat. RIL, which had so far not been allocated any gas from KG D-6, is currently buying imported liquefied natural gas at 60 per cent premium to the price of gas from its own block in the Krishna-Godavari Basin. Of the 20 mmscmd, 12.9 mmscmd has gone to power plants, the official said, adding the new customers notified to RIL include state-run NTPC who has been given 2.71 mmscmd. — PTI
	RBI asks banks to become more efficient Shiv Kumar Tribune News Service Mumbai, November 25 Reserve Bank of India Governor D Subbarao today asked banks to become more efficient so that the benefits of interest rate cuts can flow down to customers in the banking sector. "Although overall efficiency and productivity have improved, resources are not being utilised in the most efficient manner. There is.... non-transparency in bank lending rates," Subbarao said at a banking conference organised by the Indian Merchants Chamber here today. The Governor said banks would have to reduce costs and pass on consequent benefits to depositors and lenders. Subbarao suggested that banks tweak their business models and come up with newer products for the rapidly evolving Indian economy. According to Subbarao, the central bank has drawn a number of lessons from the global financial meltdown that badly hurt the banks in America and some European countries. The RBI, he said, was mulling measures like creation of a “contingent capital” fund by banks. Under this, banks would be required to issue long-term debt instruments which would be converted into automatically into equity under specific triggers, the Governor said. “This contingent arrangement will accordingly enable banks coming under stress to quickly buffer their capital without imposing any cost on taxpayers,” Subbarao said.
	Retd HC judge to take charge as CLB chief New Delhi, November 25 Retired Chattisgarh High Court judge Dilip Rao Saheb Deshmukh would take charge as the chairman of the Company Law Board, which fell vacant after the arrest of the presiding CLB head R Vasudevan by the CBI, from Friday. "He was supposed to join by the first of December but we have requested him to take over day after tomorrow given the situation now. I am given to understand that he will fly in tomorrow and take over day after," said Corporate Affairs Minister Salman Khurshid. Vasudevan, who was both a member and the presiding chairman of the CLB, was arrested by CBI on charges of bribery. — PTI
	Satyam plunges 11 pc Mumbai, November 25 Shares of Satyam Computer Services (now Mahindra Satyam) today plunged nearly 11 per cent on the BSE, a day after the CBI said the loss suffered by investors in the fraud may stretch to a staggering Rs 14,000 crore, instead of the initial estimate of Rs 7,800 crore. The scrip ended today's trade at Rs 90.55, down by 10.92 per cent from its previous close on the Bombay Stock Exchange. During day hours, shares shuttled between Rs 102 and Rs 88.15. Yesterday, the CBI filed the second chargesheet in the multi-crore Satyam scam against its founder chairman B Ramalinga Raju and others. — PTI
	TVS launches India’s first gearless bike Tribune News Service Chennai, November 25 TVS Motors today unveiled the country's first auto-clutch motorcycle named "TVS Jive", featuring a rotary gear technology, besides an automatic scooter with the brand name "TVS Wego". The company's chairman Venu Srinivasan said one of the major features of TVS Jive was the absence of the clutch lever, providing a "a hands-free gear shift experience". As there was no need for manual clutch-gear coordination while shifting, riding would be more easier, he said. The anti-stall mechanism in the vehicle would make riding smooth at low speeds even in high gears without the engine shutting off. This bike would be useful in city roads with traffic congestion and many signals, where the vehicle needed to be stopped many times, he said. The bike could be started with any gear and was fitted with an electric start for convenience. The Jive is propelled by a 110cc engine and the bike weighs only 110 kg, which would make it convenient to handle. It is priced at Rs 41,000 and gives mileage of 60 km per litre. Explaining the features of TVS Wego, Venu Srinivasan said it would be a multi-user family-friendly scooter for any category of users — men, women, young and old. Priced at Rs 42,500, it has a low-friction engine ensuring best-in-class mileage (about 50 km per litre).