New Delhi, September 6
As GTL Infrastructure today called off its merger deal with the debt-laden Reliance Communications (RCom), the Anil Dhirubhai Ambani Group company said it was in talks with other strategic and financial investors to sell stake in its telecom tower businesses.

In a statement issued today, GTL Infrastructure Ltd. said its deal with RCom to merge their telecom tower business would not take place.

A deal would have lowered RCom's debt by $3.9 billion.

In June, GTL and RCom had agreed to combine their tower operations that would own more than 80,000 towers and have an enterprise value of over $11 billion.

The non-binding term sheet signed by the companies expired on August 31, GTL said. "Subsequently despite efforts, both parties have neither extended the term sheet nor entered into any definitive transaction agreements," the company said.

It did not give specific details about why the deal was called off. RCom is looking to sell a 26 per cent stake.

RCom, which is looking to lower its debt, later said following the expiry of the non-binding term sheet with GTL Infrastructure, it was now engaged in discussions with certain other strategic and financial investors, to pursue a similar transaction aimed at significant reduction in the company's debt and unlocking of value for RCom shareholders from the passive infrastructure and related assets in its 95 per cent owned subsidiary, Reliance Infratel Ltd.

“Owing to the provisions of mutual confidentiality agreements, RCom cannot provide any comment on the reasons for the inability to conclude a transaction with GTL Infrastructure Ltd," it further said.

Reliance Infratel Limited is proposing, subject to market conditions and other considerations, an initial public offering and has filed a Draft Red Herring Prospectus (DRHP) with the SEBI.

New Delhi, September 6
The world's largest bicycle maker, Hero Cycles, today said it plans to enter the US market by the end of this year, for which it is close to signing up with a local partner.

The company, which plans to not only sell to consumers directly but also supply to retail giant Walmart and departmental store chain Sears in the US, said it will invest up to Rs 35 crore on a new plant in India to produce bicycles for the US market.

"At present we are focusing on products and distribution of bicycles for the US market. We are in the process of signing up with a local partner there," Hero Cycles Managing Director Pankaj Munjal told PTI.

Hero Cycles products are currently sold in the US through third party distributors. The company is now looking at a more direct presence there.

"In the next two months, we expect to sign a contract with the US partner and start selling products by the end of the year," he said, without disclosing the name of the potential partner.

On the branding front, Munjal said the bicycle will not have the Hero badge. Instead, it will be marketed under the brand of the US firm, which will distribute the products.

"There will be a two-way approach for the US market.

While we will also focus on the youth segment, we will go for institutional supplies to players like Walmart, Sears, etc," Munjal said.

The bicycles are likely to be priced between $ 200 and $ 800, he added.

In order to supply to the US market, Hero Cycles will set up a new plant in Punjab at an estimated investment of up to Rs 35 crore.

"The plant will have an annual capacity of 1.5 lakh units in the first year of operations. Investment from Hero Cycles would be around Rs 30-35 crore, but other component suppliers will also put in money there, which is difficult to quantify at the moment," he added. He said the company's investments would be through internal accruals. When the new plant goes onstream by April, 2011, Hero Cycles will have a total capacity of around six million units annually, Munjal said. The company currently has two manufacturing plants at Ludhiana, in Punjab. He said the company's investments would be through internal accruals.

When the new plant goes onstream by April, 2011, Hero Cycles will have a total capacity of around six million units annually, Munjal said.

The company currently has two manufacturing plants at Ludhiana, in Punjab. — PTI

Mumbai, September 6
The National Textile Corporation (NTC) is all set to reap a bonanza by selling land owned by defunct textile mills in Central Mumbai after cracking a deal with the Maharashtra government.

As per the understanding reached with the state government, NTC will hand over one-third of the land set for auction each to the Mumbai Municipal Corporation and the Maharashtra Housing and Development Authority (MHADA) for building low-cost housing.

Successful bidders will be allowed to construct high-rises in one-third of the land, according to the state government sources. As per the deal with the state government, winning bidders would be allowed to construct extra floors to compensate for the land allotted for civic facilities and low-cost housing.

The state-owned textile corporation, which took over several sick units in Mumbai, earned a windfall on two plots of land auctioned last month.

Land belonging to the Bharat Textile mills measuring 8.3 acres went for Rs 1,505 crore while another 2.3-acre plot belonging to Podar Mills fetched Rs 474 crore. The winning bidder, Indiabulls Realty, paid nearly double the reserve price set for the plots located in the upmarket Worli area in South Central Mumbai.

In all, NTC will auction 108 acres of land in Mumbai, Bangalore, Indore and Coimbatore during the current financial year with a combined reserve price of Rs 3,990 crore.

Chandigarh, September 6
The government’s policy of allowing raw iron ore exports needs a relook in order to protect the mineral wealth of the country. Every other developed country is now protecting its mineral wealth, and India, too, should not fritter away its resources.

With Karnataka already having decided that it will not allow export of raw iron ore (only finished goods will be allowed for exports), there is a need for the Government of India to act immediately and allow exports only after value addition has been done to its mineral wealth. These views were expressed by J. Mehra, director, Essar Group, during his visit to the city today. He was here to announce Steel Mart 2010, to be held in the city on September 10-11, a conference and exposition on steel and allied products being organised by the CII.

Iron ore is a vital raw material for making steel and India is the world's third largest iron ore exporter. Of the 218 million tonnes of iron ore produced in 2009-10, 128 million tonnes of iron ore was exported.

Over the past couple of months, the steel industry and Opposition parties have been demanding a ban on raw iron ore exports. They have been demanding that the government allow only as much volumes to be mined as is required for domestic consumption, so that adequate resources are left for the future generations. However, the Centre has taken a plea that the state governments themselves have been unable to prevent illegal mining and are thus making a case for banning export of iron ore. The Centre is asking the mineral-rich states to ensure that there is no illegal mining leading to illegal production of iron ore.

“China is not exporting its coal, only limited quotas are released by their government. Similarly, the USA is preserving its huge oil reserves and relying on the Gulf countries for exports. For gain of just about $100-110 per tonne, it may not be worthwhile to fritter away our resources,” said Mehra.

He added that with technology aiding the mining industry in India, the “rat hole’ mining was a thing of the past. “In the past, large heaps of iron ore were left after the slabs had been mined. But we now have technology to use almost the entire raw iron ore that is mined. 

Abohar, September 6
Amidst reports that the cotton market remained volatile in the subcontinent as the government had deferred the decision to remove or extend the 15 per cent regulatory duty on cotton yarn exports, the white gold on Monday fetched highest ever price of Rs 3,651 per quintal in Abohar, once called the Manchester of Punjab.

The arrival was recorded at 1,000 quintals at the local cotton yard.

Interestingly, traders were busy in deals on Sunday also, despite being a holiday, as about 100 quintals of Bt cotton was brought by the farmers. “The arrivals are advanced by a fortnight this time due to fluctuation in climatic conditions,” said Pramil Kalani, president, Arhtiya Association.

Accordingly, the purchase was kick-started late last month with opening rate of Rs 3,551, which was Rs 600 more than the previous year’s opening price.

A recent survey had indicated that cotton production was comparatively poor in the villages located on the Abohar-Sriganganagar road even when most of the farmers had sown Bt cotton only. The agriculture scientists observed that spraying of synthetic insecticide in the cotton belt coupled with orchards failed to combat the leaf curl menace that was preceded by severe attack from the white fly.

Non-availability of canal water in the villages located on the tail-end was a major cause of poor production, feel Kulwant Singh Sandhu and Tejwinder Singh Aulakh, senior functionaries of the tail-end village farmers’ action committee.

Local legislator, Sunil Jakhar, had also lambasted the state government for not releasing adequate water. He had also criticised the Agriculture department for going through an eye-wash exercise by organising poorly attended awareness camps at the fag end of the season in few villages. The officials had conceded, praying anonymity, that the govt had not provided funds for a massive awareness campaign in the rich cotton belt. The pro-government faction of the Bhartiya Kisan Union, too, had suspected nexus among the ruling leaders, officials, Bt cotton seed suppliers and insecticide marketing agencies.

In such a situation, the overall cotton production may not be up to the expectations, some of the progressive growers and traders said.