Washington, June 23
India will set up a high-level committee to identify areas for expanding economic ties with the US, from where it expects an estimated investment of $250-300 billion in infrastructure space.

The committee, to be set up under Planning Commission Deputy Chairman Montek Singh Ahluwalia, would coordinate with various ministries and prepare a road map before US President Barack Obama's India visit in November, Finance Minister Pranab Mukherjee told PTI in an interview here.

India needs $1 trillion of infrastructure investment, where there is still a gap of 25-30 per cent and can be filled in by the US companies, Mukherjee said.

Speaking after attending a meeting of Indo-US CEOs Forum here, Mukherjee said the US wants India to expedite relevant legislative actions for economic reforms like opening up of insurance, other sectors.

Terming his meetings here as very successful, Mukherjee said: "My bilateral discussions with Secretary of the State (Hillary Clinton) and the Secretary of Treasury (Timothy Geithner) clearly indicated that they are interested in widening and deepening the relationship between India and the US.

"We have identified certain issues on which we should work together. And this was the recommendations made jointly by both Indian CEOs and the US counterparts - education, infrastructure, clean energy, bio tech and health," Mukherjee said.

"They also suggested what are the impediments in fully exploiting the relationship between our two countries and a breakthrough of the long-term ideas," he noted.

"I am quite confident that in major areas we will be able to make real breakthrough. Our relationship is expanding very fast. Despite the slowdown, I think, both way international trade is $37 billion." Asked why India was not getting much US investment into the infrastructure, despite it being a focus area, he said: "We require more. It is incorrect to say that we are not getting. But we require more.”

Asked whether the US counterparts in his meetings sought more opening up on issues like taxation and liberalisation, he said, "Certain issues that are pending, naturally they emphasised on it. For instance, the opening up of the insurance sector, 26 per cent to 49 per cent, where the pending legislation is there." — PTI

New Delhi, June 23
As the country’s second largest car maker Hyundai Motor India Ltd (HMIL) today launched an advanced version of its mid-sized sedan Verna, it said it was looking to bring in a small car by 2012 to compete with country’s largest selling model, Maruti’s Alto.

Officials of HMIL disclosed that the development of the small car was currently underway at its parent company's R&D centre in Korea.

It has been designed and developed keeping in mind the Indian market and would be put on display at the next Auto Expo in 2012.

As the company came out with the newer models of Verna, priced between Rs 6.56 lakh and Rs 9.22 lakh (ex-showroom Delhi), officials said the new small model from HMIL would be positioned below the company's existing flagship model, Santro, and operate in the segment of Alto.

Alto is currently the highest selling car model in India, with average sales of over 20,000 units per month, and is priced between Rs 2.28 lakh and Rs 2.8 lakh (ex-showroom, Delhi).

In the past, HMIL had indicated that its small car could be priced at around $3,500 (around Rs 1.60 lakh), which would have meant that it would compete with the likes of Maruti Suzuki's M800 (at a Delhi ex-showroom price of Rs 2.05 lakh to Rs 2.14 lakh) and even the Tata Nano (with a Delhi ex-showroom price of Rs 1.23 lakh to Rs 1.72 lakh).

However, the rising input costs could increase its price also, as is the case with other car makers.

The company had set a timeline of 2011-12 for the launch of the small car, to be powered by an 800 cc engine.

Meanwhile, the new Verna Transform will be available in two engine variants of 1.6 litre petrol and 1.5 litre diesel.

Mumbai, June 23
India's largest sugar refiner Shree Renuka Sugars today said it would acquire 50.34 per cent stake in the Brazil's Equipav AA for Rs 1,151 crore, which is 25 per cent less than what the two firms had agreed on earlier. In February, the company had announced to buy 50.79 per cent stake in Equipav for Rs 1,530 crore.

"It has been successful in concluding a revised agreement to acquire a controlling stake in Equipav," Shree Renuka Sugars said in a filing to the Bombay Stock Exchange.

The company was re-negotiating the deal owing to sharp fall in sugar prices in the global market.

As per the new agreement, the company would invest Rs 1,151 crore ($250 million) in Equipav leading to a majority and controlling stake of 50.34 per cent.

"This values Equipav AA at an enterprise value of $1.147 billion," the filing said.

This is Shree Renuka's second acquisition in Brazil this year. The company on March 19 had completed the buyout of Vale do Ivai S A Acuar e Alcool, another sugar and ethanol producer in that country with an annual capacity of 3.1 million tonnes.

Equipav has two large mills in southeast Brazil having a combined cane crushing capacity of 10.5 million tonnes a year and has a co-generation capacity of 203 MW.

Renuka plans to expand the capacity to 12 million tonnes per annum, while co-generation capacity will be increased to 295 MW at an investment of Rs 562 crore.

The investment in Equipav would be utilised to fund the capital expenditure, partly pay down debt and increase working capital, the filing said, adding that the remaining debt would be repaid over a period of 10 years. As on December 2009, Equipav had a debt of Rs 3,821 crore.

Renuka has a largest sugar refining capacity in India of 4,000 tonnes per day. — PTI

New Delhi, June 23
The government today said it would stick to 10 per cent stake sale in Coal India Ltd and the decision of 25 per cent disinvestment in listed PSUs would not be applicable in case of the state-owned firm.

"I want to clear one thing, as there is some confusion - the disinvestment in Coal India Ltd (CIL) will not be more than 10 per cent even if government decides on 25 per cent disinvestment in (listed) PSUs. Any such decision will not be applicable on Coal India," Coal Minister Sriprakash Jaiswal told reporters here.

The Union Cabinet had last week decided to disinvest 10 per cent of its holding in the world's largest coal producer. The Centre holds 100 per cent equity in CIL.

In June, the government announced that all the listed companies should increase the public holding to 25 per cent in a phased manner and had later said that it was open to "amendments" in the policy.

"The IPO could be launched in September if market conditions are conducive for it," he said.

Explaining the rational behind only 10 per cent stake sale, Jaiswal said, "When we got navratna status, there was a clause that minimum 10 per cent of CIL be divested and it should be listed on the bourse within three years. We do not want to lose the navratna tag." CIL was granted navratna status in October 2008.

Talking about the trade unions opposition to the selloff move in the coal company, he said, "We don't think that there is a very strong opposition to the disinvestment move from the trade unions. The left-wing trade unions are opposing, they have always been opposing any disinvestment proposal." The minister did not elaborate on the fund the government is looking to raise through the disinvestment. However, he had earlier said that a sum of Rs 10,000-12,000 crore could be raised by CIL's divestment.

CIL is the world's largest coal producer with an output of 431.5 million tonnes last fiscal. It accounts for over 80 per cent of India's total coal production of 531.5 million tonnes as on March 31, 2010. — PTI

Ludhiana, June 23
The Punjab Pollution Control Board (PPCB) has constituted a committee to consider the use to pet coke as a fuel in the dyeing industry. The Federation of Dyeing Factories Association had sent a representation to the board in this regard.

In a communique sent by the department to the federation, the board said it could consider the use of pet coke as fuel in the dyeing industry and has constituted a committee to look into the pros and cons of the same.

Further, it mentions that in future whenever the samples will be taken from any dyeing unit, it would be tested in three labs and the reports of all the three labs should be same. “All the three reports should match each other. Only that report will be considered as final which matches with the remaining two,” it said.

Further, it said it was not mandatory for all the dyeing units to be member of common effluent treatment plant. “The pollution control board is concerned with the zero liquid discharge while it is not obligatory on anybody to be a part of any specific common effluent treatment plant,” it said.

TR Mishra, president of the Federation of Dyeing Factories Association, said the industry was looking forward to the proposal after the constitution of the committee. “Pet coke is being used as a fuel in the dyeing industries in states like Uttrakhand,” he said. 

BRIEFLY

BHEL in pact with Sheffield
New Delhi: Power equipment maker BHEL on Wednesday said it signed a technology transfer agreement with UK-based Sheffield Forgemasters International to produce forgings for turbines and generators up to 1,000 MW rating. The agreement was signed here by BHEL CMD BP Rao and chief executive of Sheffield Forgemasters Graham Honeyman.— PTI

Gold recovers by Rs 120
New Delhi: Gold prices recovered by Rs 120 to Rs 18,970 per 10 grams in the national capital on Wednesday on emergence of buying by stockists and jewellers on the back of a firming trend in global markets. The trading sentiment improved after the metal recovered in international markets from a steep fall in the previous session.— PTI

Handicraft exports up 19 pc
New Delhi: India's handicraft exports grew by about 19 per cent to over $154.16 million in May over the year-ago period, thanks to the increasing demand from the US market. The handicraft export stood at $129.60 in the same period last fiscal, according to the Export Promotion Council for Handicrafts data.— PTI

Oil extends losses in Asia
Singapore: Oil extended losses in Asian trade on Wednesday as disappointing economic data tempered optimism that China's move to a more flexible yuan would lift energy demand, analysts said. New York's main futures contract, light sweet crude for delivery in August, shed 28 cents to $77.57 a barrel while London's Brent North Sea crude for August delivery was 18 cents off at $77.86.— AFP

Fortis Hospital tie-up
Amritsar: Fortis Escorts Hospital here on Tuesday reached an agreement with Smt Paarvati Devi Hospital for providing critical care services to the hospital by managing its ICU and 24-hour ambulance service. Dr HP Singh, medical superintendent of Fortis Escort Hospital, said a team of super specialists would provide emergency services at the hospital besides providing round-the-clock ambulance fitted with advanced life support system and trained staff.— TNS