Infosys, IBM selected for over $400 mn RBS contract

Infosys , India's second largest software services exporter, and software giant IBM have won a 300 million euro (about Rs 2,535 crore) contract to develop the computer system for the UK-based bank Williams & Glyn's.

Also Read: IT, Biotechnology are engines of growth: Sonia Gandhi

The bank (Williams & Glyn's), which was dormant for about 30 years, is being revived by UK-based lender the Royal Bank of Scotland Group Plc (RBSG). The bank is part of the RBS Group and is scheduled to launch operations by 2015.

"RBS will spend over 300 million euro to develop computer systems for Williams & Glyn's bank. Infosys and IBM will lead the project to build the system, which will be based on RBS's computer platform," a person in know of the development said.

The new bank will have 314 branches located mainly in the north-west England and it is scheduled to be floated on the London market in late 2015, the source added. When contacted, a Infosys spokesperson said: "We do not comment on client engagements."

Last week RBS in a statement said: "RBSG has agreed a 600 million euro pre-IPO investment in its Williams & Glyn's business (formerly known as Project Rainbow), which centres around 314 branches in the UK, with a consortium of investors led by global financial services specialists Corsair Capital and Centerbridge Partners."

On the operationability of the bank, RBS said: "We expect Williams & Glyn's to be floated on the London stock exchange in the next two or three years." However, it is not clear on how the job to develop the state-of-the-art system for the 314 branches will be divided between Infosys and IBM, the source said.

The acquisition of Switzerland-headquartered Lodestone Holding by Infosys in October last year has strengthened its consulting and systems integration capabilities and increased its global presence particularly in continental Europe, Latin America and Asia Pacific.

Europe, which includes continental Europe (both the East and the West), Ireland and the UK, is the second biggest revenue generator for the Bangalore-based Infosys after North America.

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Wal-Mart extends equity conversion date in India's Cedar

Wal-Mart Stores Inc's India unit has sought an extension of its equity conversion date in Cedar Support Services, the parent firm of Bharti Retail, its joint venture partner in India.

Wal-Mart had invested USD 100 million in 2010 in Cedar in exchange for "compulsorily convertible debentures" that can be exchanged for 49 percent in Cedar. The conversion deadline has been extended twice previously, most recently to September 30.

A Wal-Mart India spokeswoman told Reuters on Monday that the company had filed to extend the conversion date again.

Wal-Mart, the world's largest retailer, has yet to apply to open its own retail stores in India despite a rule change last year allowing global retailers to own 51 percent of their Indian operations.

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Cooper shareholders set to approve $2.5bn Apollo deal

Cooper Tire and Rubber Co shareholders will likely approve on Monday the US company's USD 2.5 billion sale to India's Apollo Tyres , in a transaction that is expected to create the world's seventh-largest tyre maker.

A green light from Cooper shareholders will bring Apollo one step closer to completing the takeover, although hurdles still remain due to opposition from workers at Cooper's joint venture in China and U.S. labour issues which could delay the deal.

Shareholders stand to receive USD 35 per Cooper share, a premium of more than 40 percent to its price before the acquisition announcement.

"Because this is an all cash deal with a substantial premium to the pre-deal price the vast majority of shareholders will support this deal at this price," said Chris DeMuth Jr, portfolio manager at U.S.-based Rangeley Capital.

Still, Cooper shares have lost nearly 12 percent after rising close to the offer price, as roadblocks to the acquisition emerged due to worries over the debt burden of the new owner.

"You're putting pressure on the company by the amount of debt that they want to use to buy this. And so I think the market will always be skittish in the situation," DeMuth said. Rangeley Capital owns less than 5 percent in Cooper, he said.

Workers at Cooper's China joint venture, Cooper Chengshan Tire Co in China's eastern Shandong province, have been striking against the deal for about three months, while its local partner has filed a lawsuit, seeking to dissolve the business arrangement.

Separately, a USarbitrator ruled Cooper cannot sell two of its factories in the country until a collective bargaining agreement is reached between Apollo and members of the plants' union.

The two companies have said they hope the deal will get the final all-clear by the end of the year.

Apollo plans to fund the acquisition entirely through debt, most of which will be raised through Cooper, whose market value is currently nearly four times that of the Indian company.

Apollo, whose shares have lost a quarter of their value since the deal was made public, hopes to gain a foothold in the world's two biggest auto markets - China and the United States - by buying Cooper.

If completed, the deal would be the second-largest U.S. acquisition by an Indian company and one of the top 10 outbound takeovers from Asia's third-largest economy, according to Thomson Reuters data.

A shareholder approval of the deal also means Apollo can start drawing down loans, which are already committed by banks, according to a source with direct knowledge of the matter.

Apollo declined comment on Monday, while Cooper did not immediately respond to an email seeking comment outside US business hours.

The banks financing the deal include Standard Chartered and Morgan Stanley.

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GSK sells thrombosis drugs to Aspen for $1 bn

Sep 30, 2013, 08.23 PM IST

The company said on Monday the divestment to South Africa's biggest generic drug maker would earn it proceeds of 600 million pounds and 100 million pounds of the headline price related to inventory.

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GSK sells thrombosis drugs to Aspen for $1 bn

The company said on Monday the divestment to South Africa's biggest generic drug maker would earn it proceeds of 600 million pounds and 100 million pounds of the headline price related to inventory.

Like this story, share it with millions of investors on M3

GSK sells thrombosis drugs to Aspen for $1 bn

The company said on Monday the divestment to South Africa's biggest generic drug maker would earn it proceeds of 600 million pounds and 100 million pounds of the headline price related to inventory.

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Britain's biggest drugmaker GlaxoSmithKline agreed the 700 million pounds sale of its thrombosis drug brands and a related factory to Aspen Pharmacare

Action in GlaxoSmithKline Pharmaceuticals

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Vodacom in talks to buy Tata Comm-controlled Neotel

British major Vodafone's South African subsidiary Vodacom today said it has entered into exclusive discussions regarding a potential acquisition of Neotel, controlled by Tata Communications .

"There are a number of important steps that we still need to complete in order to conclude the transaction. If the deal is implemented, Vodacom intends to put significant investment into the combined entity to provide high-speed fixed connectivity to many more businesses and consumers," Vodacom Group CEO Shameel Joosub said in a joint-statement.

Neotel, South Africa's second-biggest fixed-line phone operator, is 68.5 per cent owned by Tata Communications.

The company, which was established as South Africa's second fixed-line operator, competes with former state-owned service provider Telkom.

Neotel reported a revenue growth of 12 per cent in FY13. Tata Communications Chairman Subodh Bhargava too has confirmed that the companies are in talks.

"We have engaged in dialogue with Vodafone in South Africa...the process is just initiated so at this point I don't think there is anything more one can say," Tata Communications Chairman Subodh Bhargava told PTI on the sidelines of a CII event.

The deal is reportedly valued at USD 500 million (Rs about Rs 3,130 crore) but the companies have not mentioned an amount so far.

"By further building on the capabilities within Neotel, we would also aim to develop entirely new services such as fibre to the home and business. Neotel has access to over 15,000 km of fibre-optic cable, including 8,000 km of metro fibre in Johannesburg, Cape Town and Durban," Joosub said.

The finalisation of the transaction is subject to the successful conclusion of commercial negotiations and receiving the requisite regulatory and corporate approvals, the statement added.

"Spectrum is also an important consideration as the combined entity could use this resource more efficiently, and in doing this we can keep pace with South Africa's rapidly growing demand for mobile data," Neotel CEO Sunil Joshi said.

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Singh brothers sell 2.7% stake in Religare for Rs 139.52cr

Religare Enterprises' promoters billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh today sold 2.7 per cent stake in the diversified financial services major worth nearly Rs 139.52 crore.

Promoters of Religare, a non-banking financial services company and a major contender for new banking licences, had in June decided to sell nearly 23 per cent stake to meet the RBI eligibility norms for new banks.

According to information available with the bourses, Singh brothers have offloaded a total of 40.44 lakh shares, amounting to 2.70 percent stake, of Religare at an average price of Rs 345 per share through open market route.

The shares were purchased by Mehta & Mehta Real Estate in a transaction worth Rs 139.52 crore.

Earlier this month, Singh brothers had sold 6.13 percent stake in Religare worth Rs 322.5 crore.

The company had earlier announced its promoters, including Singh brothers, decided to lower their stake in Religare to 49 per cent, from 71.75 per cent currently, to meet the eligibility criteria for a bank licence.

On June 26, Religare had announced said Customers Bancorp Inc of USA has agreed to pick up 6 per cent stake in the Delhi based banking aspirant for USD 51 million.

Religare shares today grew by 0.23 per cent to settle at Rs 345.55 apiece on the BSE.

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NALCO to invest Rs 33Kcr for diversification and expansion

Unveiling a new plan for high growth through diversification and expansion, aluminium giant NALCO is set to invest more than Rs 33,000 crore in a host of sectors including energy to boost its productivity and profitability.

" NALCO is embarking upon an ambitious growth plan involving a massive investment of more than Rs 33,000 crore in next 3 to 4 years, not only in aluminium sector but also in energy sector," Nalco CMD Ansuman Das told reporters.

Interview: See FY14 output at 3.5 lakh tonne: Nalco

"NALCO has begun a new odyssey to conquor the challenges of present and threats of future with its new Corporate Plan ... this will give a significant boost to the company's productivity and profitability," he said.

The plan encompasses expansion - both brownfield and greenfield, diversification into energy and non-ferrous metal sectors, backward integration, merger and acquisition, Das said after NALCO's annual general meeting held here yesterday.

Referring to greenfield projects, the NALCO CMD said the company is planning to set up a Rs 5,500 crore alumina refinery in Gujarat with one million tonne per annum capacity. Preparation of detailed project report for this has started.

Similarly, the company is also planning a Rs 16,450 crore smelter of 0.5 MTPA capacity and power plant of 1260 MW capacity in Odisha's Sundargarh for which approval of the high level clearance authority of the state government has been obtained, Das said.

Site selection study and preliminary land survey for the proposed project is under way and the company is actively pursuing allocation of coal block in this regard, he said.

On Nalco's foray into energy sector, Das said the company had formed a joint venture with Nuclear Power Corporation of India (NPCIL) to set up nuclear power plants.

Both the partners have selected Kakrapar Units 3 and 4 of 700 MW each in Gujarat as their first JV project with an estimated project cost of Rs 11,500 crore, he said, adding construction work had already started and the project was scheduled to be commissioned by December, 2015.

In pursuit of harnessing renewable energy sources, NALCO has entered into new business of wind power generation with the establishment of 50.4 MW wind power plant at Gandikota in Andhra Pradesh at an investment of Rs 274 crore.

Second wind power plant of 47.6 mw is being set up in Rajasthan with an investment of Rs 283 crore. Another plant has been planned in NALCO's own mined out area at Panchpatmali in Koraput district of Odisha.

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No issue on S'pore Airlines and Tata MoU: Tony Fernandes

Clearing the air with regard to the Tatas signing MoU with Singapore Airlines, AirAsia Group CEO Tony Fernandes today said there was no issue between him, Singapore Airlines and Tatas.

"I have and continue to have no issue on SIA (Singapore Airlines) and Tata. No difference to Ginger and Taj Hotels. These are two very separate business", Fernandes said in social networking portal --Twitter.

Tata Sons, the holding company of the Tata Group, signed a memorandum of understanding with Singapore Airlines for a joint venture to start a new full service airline in India. 

The new venture, to be called Tata SIA Airlines Ltd, would have Tata Sons as the majority partner with 51 per cent stake, while Singapore Airlines would hold 49 per cent stake with USD 49 million of foreign direct investment.

Meanwhile, the AirAsia India's first board meeting is scheduled to be held in Mumbai later today.

Commenting about it, Fernandes said, "first Air Asia India Board meeting. Superb cooperation between partners. I am confident we will make profits in first year and change aviation".

However, Fernandes would skip the board meeting as he was in Indonesia. "In Jakarta. Good Quarter. Adding more aircraft to Indonesia", he said.

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Nalco rejects Vedanta's request for alumina

Aluminium major NALCO has rejected a request to sell surplus alumina to bauxite starved Vedanta for its smelter at Jharsuguda, saying it was against the Navaratna PSU's policy to supply it in domestic market.

"We are not in a position to provide alumina or bauxite to any other company inside the country," Nalco CMD Ansuman Das told reporters after the company's annual general meeting here today.

According to the policy adopted by Nalco's board, the company does not sell either bauxite or alumina to other companies in the domestic market, Das said while responding to queries about the plea by Vedanta Aluminium Ltd (VAL) VAL's Managing Director S K Roongta had recently sought the Odisha government's intervention to impress upon Nalco to sell its surplus alumina for its smelter at Jharsuguda.

In a letter to Chief Secretary J K Mohapatra, he had said: "We earnestly request you to impress upon Nalco to start selling/allow participation of smelter companies located in Odisha, which would be treated as deemed exports for Nalco in its alumina tenders, so that same can be utilised for increasing revenues for the exchequer, ensuring value addition and also generation of employment opportunities."

Stating that Nalco was exporting surplus alumina of over one million tonne a year, Roongta said: "The diversion of this surplus alumina for VAL's alumina smelter will generate extra revenue for Nalco at around Rs 200 crore annually over and above its export realisation, thus helping improve its financial balance sheet."

As VAL's refinery at Lanjigarh in Kalahandi district is running at a depleted capacity of 30-40 per cent on outsourced bauxite from states such as Gujarat, Chhattisgarh and Jharkhand, this has been hurting alumina availability for its smelter plants, Roongta had said.

VAL has two smelters at Jharsuguda. The 0.5-million tonne per annum (mtpa) smelter plant, supported by a 1,215 Mw captive power plant, produces downstream products such as wire rods and billets. This unit was in operation and meeting its alumina requirement through imports, sources said. The other smelting facility of 1.2 mtpa capacity was installed as a special economic zone (SEZ) unit. This was yet to be commissioned due to non-availability of alumina.

Overall performance of VAL's smelter was hit after Lanjigarh refinery faced shutdown between December 5, 2012 and July 11, 2013 as bauxite sources dried up, they said.

It may be noted that Nalco had earlier turned down VAL's request to allow it to participate in the tendering process for sale of surplus alumina. VAL had even offered a premium of 7-10 per cent over Nalco's export price of alumina.

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In talks with KKR to sell stake in holding co: Apollo

Apollo Hospitals on Tuesday confirmed that they are in talks with private equity player KKR to offload a stake in the holding company, PCR Investments.

Speaking exclusively to CNBC-TV18's Shereen Bhan on the day the hospital turned 30, founder Prathap Reddy says that negotiations for the sale are on and could be concluded over the next few weeks.

KKR could pick up 7 percent in PCR investments which would be equivalent to 3-4 percent stake in Apollo Hospitals. 

Reddy also said that the company was on track to touch 2,000 pharmacies over the next few months. It could also take a call on divesting the pharmacy business or bringing a strategic partner on board after 6-7 months. 

Apollo hospitals has outlined a capex plan of Rs 2500 crore. Out of those, Rs 600 crore has already been spent and doesn't take into account the sharp depreciation of the rupee.

Reddy is confident of adding 900 beds in the next few months and the total bed strength could touch 3,500 by 2015.

India's largest hospital chain is also looking at stepping on its international expansion over the next 2-3 years. It is in talks with 2-3 countries to start day care clinics and hospitals with Tanzania being the first destination.

Below is an excerpt of his interview to CNBC-TV18.

Q: Please comment on whether you are in talks with private equity giant KKR to sell a stake in Apollo Hospitals or your holding company. There has been a lot of speculation.

A: We are talking to KKR. I am sure you know that KKR wants a major part of HCA. We met Mr. Travis. We were really pleased with his views and we thought it is very nice to be associated with them. I am not giving any of the Apollo equity. We are only giving our PCR Investments' portion.

We are talking to them and whatever has happened in the last one month, there has been some delay. We have not finalised anything, but all that I can assure is we are talking and it is going well. Hopefully, when all is well, we will announce to you.

Q: So there are no plans to offload any stake in Apollo Hospitals if at all a deal fructifies will KKR. KKR will pick up an investment in the holding company which is PCR Investments. How much stake are you looking to offload in the holding company?

A: It will be equivalent to about 3-4 percent of Apollo which should work out around seven percent of PCR. PCR also holds other investments; so it is probably around that level. It is equivalent to approximately around USD 100 million.

We are still talking, nothing is final yet. There is a good wavelength because KKR wants HCA- the world's largest healthcare system in US. Since we are probably one of the largest in this part of the world, it is nice to have association with the person who has a large interest there.

Q: By when do you hope to finalise the negotiations with KKR?

A: I do not know. We thought they were a little busy and we were busy. Maybe, in the next few weeks; it should not be too long. If it happens, it should happen in the last few weeks.

Q: Any plans for the pharmacy business going forward? You were looking to possibly hive that off? Have those plans been shelved altogether?

A: We have not shelved at all. Somehow or the other, we have never been serious on hiving pharmacy division. What we thought was pharmacy first it should reach what they think is a critical level 2000 pharmacies. It hopefully will reach in the next six months. At that time, they will probably think.

However they should go with someone not in private equity investor, but someone who has got a similar business.

We have no idea at this point, but we are positive. I spoke to Shobana Kamineni, she said we are very clear that our next target is to hit 2000 pharmacies. We are marching there with all our efforts and also creating little change in the models to suit the present time because people now are talking more about wellness. So, we are adding little more portion of wellness into the new pharmacies.

Q: When you touch the 2000 pharmacy stores, you will look at bringing on board either a strategic partner or possibly hiving-off this business? Those plans are very much on the cards, but you will not like to sell it off or bring on board private equity investor?

A: We want to go ahead and complete these 2000 pharmacies. At this time we have no plans of hiving out or associating with anybody at this time, perhaps after six-seven months. If there is something good in these partnerships, the board will consider it but in the last meeting Shobana very categorically said that we have no plans at this time to do.

Our next objective is to fine-tune all our stores and then reach that 2000 pharmacy number. Two thousand is not a magic number but the software they have at the moment so it is nice to reach that number which will be taking us to a few more places where we are not there now. 

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Nalco to pay Rs 322.15 crore as dividend to government

Aluminium giant Nalco has announced a total dividend payout of 25 percent, amounting to Rs 322.15 crore for 2012-13, as against 20 percent paid in the previous year.

Also read: Nalco rejects Vedanta's request for alumina

Announcing this after the Annual General Meeting of the company here, Nalco CMD Ansuman Das said the shareholders of the Navaratna PSU approved a total dividend payout of 25 percent which works out to Rs 1.25 per share.

With this, the total payout would be Rs 322.15 crore for 2012-13, he said, adding, since inception Nalco had paid a total of Rs 4519.17 crore as dividend, including Rs 3920.73 crore as share of the central government.

The upward revision was approved following a recommendation for payment of a final dividend at Rs 0.50 per share (10 percent) in addition to the interim dividend of Rs 0.75 per share (15 percent) paid on March 30, 2013.

The total dividend pay-out for 2012-13 would work out to be at Rs 1.25 per share (25 percent) as against Rs 1.00 per share (20 percent) paid for 2011-12.

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Nationwide ban on earth mining for bricks and roads: NGT

In a blow to brick-kiln industry and road contractors, the National Green Tribunal has banned digging of earth across the country for making bricks and roads without prior environment clearance (EC).

A bench headed by Justice P Jyothimani has directed the Chief Secretaries of all the states and union territories to ensure that its interim order is adhered to.

"We restrain any person, company and authority to carry out any such digging activities of brick earth or ordinary earth against the directives issued by the Ministry of Environment and Forests (MoEF) of June 24, 2013 in any part of the country without obtaining EC from the competent authority.

"The Chief Secretaries of all states/Union Territories (UTS) are to ensure strict adherence to this order," it said.

The tribunal issued notices to Uttar Pradesh seeking its response on the plea for directions to the state government to stop extraction of earth for making bricks and roads, which is allegedly going on in violation of a Supreme Court decision as well as directions of the MoEF to all the states.

"Considering the seriousness of the issue", the bench restrained the UP government from permitting such digging until further orders of the tribunal.

The NGT made the order applicable to all the states saying "as the judgement of the apex court as well as the directives issued by MoEF has got the effect and applicability throughout the territory of India,... what is applicable to respondents (UP government) by our interim order is applicable to all the other states and UTs also".

The ban on brick earth mining comes one-and-a-half months after the NGT banned sand mining from river beds, without environment clearance, across the country.

As per the petition, MoEF in its office memorandum to the states has directed that digging of earth for making bricks and roads requires EC from the competent authority.

The petition has alleged that in spite of the decision of the apex court and the directives of the MoEF, the Uttar Pradesh government has not framed rules/guidelines for the purpose of obtaining EC and are allowing indiscriminate digging of earth.

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NALCO to invest Rs 33Kcr for diversification and expansion

Unveiling a new plan for high growth through diversification and expansion, aluminium giant NALCO is set to invest more than Rs 33,000 crore in a host of sectors including energy to boost its productivity and profitability.

" NALCO is embarking upon an ambitious growth plan involving a massive investment of more than Rs 33,000 crore in next 3 to 4 years, not only in aluminium sector but also in energy sector," Nalco CMD Ansuman Das told reporters.

Interview: See FY14 output at 3.5 lakh tonne: Nalco

"NALCO has begun a new odyssey to conquor the challenges of present and threats of future with its new Corporate Plan ... this will give a significant boost to the company's productivity and profitability," he said.

The plan encompasses expansion - both brownfield and greenfield, diversification into energy and non-ferrous metal sectors, backward integration, merger and acquisition, Das said after NALCO's annual general meeting held here yesterday.

Referring to greenfield projects, the NALCO CMD said the company is planning to set up a Rs 5,500 crore alumina refinery in Gujarat with one million tonne per annum capacity. Preparation of detailed project report for this has started.

Similarly, the company is also planning a Rs 16,450 crore smelter of 0.5 MTPA capacity and power plant of 1260 MW capacity in Odisha's Sundargarh for which approval of the high level clearance authority of the state government has been obtained, Das said.

Site selection study and preliminary land survey for the proposed project is under way and the company is actively pursuing allocation of coal block in this regard, he said.

On Nalco's foray into energy sector, Das said the company had formed a joint venture with Nuclear Power Corporation of India (NPCIL) to set up nuclear power plants.

Both the partners have selected Kakrapar Units 3 and 4 of 700 MW each in Gujarat as their first JV project with an estimated project cost of Rs 11,500 crore, he said, adding construction work had already started and the project was scheduled to be commissioned by December, 2015.

In pursuit of harnessing renewable energy sources, NALCO has entered into new business of wind power generation with the establishment of 50.4 MW wind power plant at Gandikota in Andhra Pradesh at an investment of Rs 274 crore.

Second wind power plant of 47.6 mw is being set up in Rajasthan with an investment of Rs 283 crore. Another plant has been planned in NALCO's own mined out area at Panchpatmali in Koraput district of Odisha.

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No issue on S'pore Airlines and Tata MoU: Tony Fernandes

Clearing the air with regard to the Tatas signing MoU with Singapore Airlines, AirAsia Group CEO Tony Fernandes today said there was no issue between him, Singapore Airlines and Tatas.

"I have and continue to have no issue on SIA (Singapore Airlines) and Tata. No difference to Ginger and Taj Hotels. These are two very separate business", Fernandes said in social networking portal --Twitter.

Tata Sons, the holding company of the Tata Group, signed a memorandum of understanding with Singapore Airlines for a joint venture to start a new full service airline in India. 

The new venture, to be called Tata SIA Airlines Ltd, would have Tata Sons as the majority partner with 51 per cent stake, while Singapore Airlines would hold 49 per cent stake with USD 49 million of foreign direct investment.

Meanwhile, the AirAsia India's first board meeting is scheduled to be held in Mumbai later today.

Commenting about it, Fernandes said, "first Air Asia India Board meeting. Superb cooperation between partners. I am confident we will make profits in first year and change aviation".

However, Fernandes would skip the board meeting as he was in Indonesia. "In Jakarta. Good Quarter. Adding more aircraft to Indonesia", he said.

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Nalco rejects Vedanta's request for alumina

Aluminium major NALCO has rejected a request to sell surplus alumina to bauxite starved Vedanta for its smelter at Jharsuguda, saying it was against the Navaratna PSU's policy to supply it in domestic market.

"We are not in a position to provide alumina or bauxite to any other company inside the country," Nalco CMD Ansuman Das told reporters after the company's annual general meeting here today.

According to the policy adopted by Nalco's board, the company does not sell either bauxite or alumina to other companies in the domestic market, Das said while responding to queries about the plea by Vedanta Aluminium Ltd (VAL) VAL's Managing Director S K Roongta had recently sought the Odisha government's intervention to impress upon Nalco to sell its surplus alumina for its smelter at Jharsuguda.

In a letter to Chief Secretary J K Mohapatra, he had said: "We earnestly request you to impress upon Nalco to start selling/allow participation of smelter companies located in Odisha, which would be treated as deemed exports for Nalco in its alumina tenders, so that same can be utilised for increasing revenues for the exchequer, ensuring value addition and also generation of employment opportunities."

Stating that Nalco was exporting surplus alumina of over one million tonne a year, Roongta said: "The diversion of this surplus alumina for VAL's alumina smelter will generate extra revenue for Nalco at around Rs 200 crore annually over and above its export realisation, thus helping improve its financial balance sheet."

As VAL's refinery at Lanjigarh in Kalahandi district is running at a depleted capacity of 30-40 per cent on outsourced bauxite from states such as Gujarat, Chhattisgarh and Jharkhand, this has been hurting alumina availability for its smelter plants, Roongta had said.

VAL has two smelters at Jharsuguda. The 0.5-million tonne per annum (mtpa) smelter plant, supported by a 1,215 Mw captive power plant, produces downstream products such as wire rods and billets. This unit was in operation and meeting its alumina requirement through imports, sources said. The other smelting facility of 1.2 mtpa capacity was installed as a special economic zone (SEZ) unit. This was yet to be commissioned due to non-availability of alumina.

Overall performance of VAL's smelter was hit after Lanjigarh refinery faced shutdown between December 5, 2012 and July 11, 2013 as bauxite sources dried up, they said.

It may be noted that Nalco had earlier turned down VAL's request to allow it to participate in the tendering process for sale of surplus alumina. VAL had even offered a premium of 7-10 per cent over Nalco's export price of alumina.

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In talks with KKR to sell stake in holding co: Apollo

Apollo Hospitals on Tuesday confirmed that they are in talks with private equity player KKR to offload a stake in the holding company, PCR Investments.

Speaking exclusively to CNBC-TV18's Shereen Bhan on the day the hospital turned 30, founder Prathap Reddy says that negotiations for the sale are on and could be concluded over the next few weeks.

KKR could pick up 7 percent in PCR investments which would be equivalent to 3-4 percent stake in Apollo Hospitals. 

Reddy also said that the company was on track to touch 2,000 pharmacies over the next few months. It could also take a call on divesting the pharmacy business or bringing a strategic partner on board after 6-7 months. 

Apollo hospitals has outlined a capex plan of Rs 2500 crore. Out of those, Rs 600 crore has already been spent and doesn't take into account the sharp depreciation of the rupee.

Reddy is confident of adding 900 beds in the next few months and the total bed strength could touch 3,500 by 2015.

India's largest hospital chain is also looking at stepping on its international expansion over the next 2-3 years. It is in talks with 2-3 countries to start day care clinics and hospitals with Tanzania being the first destination.

Below is an excerpt of his interview to CNBC-TV18.

Q: Please comment on whether you are in talks with private equity giant KKR to sell a stake in Apollo Hospitals or your holding company. There has been a lot of speculation.

A: We are talking to KKR. I am sure you know that KKR wants a major part of HCA. We met Mr. Travis. We were really pleased with his views and we thought it is very nice to be associated with them. I am not giving any of the Apollo equity. We are only giving our PCR Investments' portion.

We are talking to them and whatever has happened in the last one month, there has been some delay. We have not finalised anything, but all that I can assure is we are talking and it is going well. Hopefully, when all is well, we will announce to you.

Q: So there are no plans to offload any stake in Apollo Hospitals if at all a deal fructifies will KKR. KKR will pick up an investment in the holding company which is PCR Investments. How much stake are you looking to offload in the holding company?

A: It will be equivalent to about 3-4 percent of Apollo which should work out around seven percent of PCR. PCR also holds other investments; so it is probably around that level. It is equivalent to approximately around USD 100 million.

We are still talking, nothing is final yet. There is a good wavelength because KKR wants HCA- the world's largest healthcare system in US. Since we are probably one of the largest in this part of the world, it is nice to have association with the person who has a large interest there.

Q: By when do you hope to finalise the negotiations with KKR?

A: I do not know. We thought they were a little busy and we were busy. Maybe, in the next few weeks; it should not be too long. If it happens, it should happen in the last few weeks.

Q: Any plans for the pharmacy business going forward? You were looking to possibly hive that off? Have those plans been shelved altogether?

A: We have not shelved at all. Somehow or the other, we have never been serious on hiving pharmacy division. What we thought was pharmacy first it should reach what they think is a critical level 2000 pharmacies. It hopefully will reach in the next six months. At that time, they will probably think.

However they should go with someone not in private equity investor, but someone who has got a similar business.

We have no idea at this point, but we are positive. I spoke to Shobana Kamineni, she said we are very clear that our next target is to hit 2000 pharmacies. We are marching there with all our efforts and also creating little change in the models to suit the present time because people now are talking more about wellness. So, we are adding little more portion of wellness into the new pharmacies.

Q: When you touch the 2000 pharmacy stores, you will look at bringing on board either a strategic partner or possibly hiving-off this business? Those plans are very much on the cards, but you will not like to sell it off or bring on board private equity investor?

A: We want to go ahead and complete these 2000 pharmacies. At this time we have no plans of hiving out or associating with anybody at this time, perhaps after six-seven months. If there is something good in these partnerships, the board will consider it but in the last meeting Shobana very categorically said that we have no plans at this time to do.

Our next objective is to fine-tune all our stores and then reach that 2000 pharmacy number. Two thousand is not a magic number but the software they have at the moment so it is nice to reach that number which will be taking us to a few more places where we are not there now. 

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Nalco to pay Rs 322.15 crore as dividend to government

Aluminium giant Nalco has announced a total dividend payout of 25 percent, amounting to Rs 322.15 crore for 2012-13, as against 20 percent paid in the previous year.

Also read: Nalco rejects Vedanta's request for alumina

Announcing this after the Annual General Meeting of the company here, Nalco CMD Ansuman Das said the shareholders of the Navaratna PSU approved a total dividend payout of 25 percent which works out to Rs 1.25 per share.

With this, the total payout would be Rs 322.15 crore for 2012-13, he said, adding, since inception Nalco had paid a total of Rs 4519.17 crore as dividend, including Rs 3920.73 crore as share of the central government.

The upward revision was approved following a recommendation for payment of a final dividend at Rs 0.50 per share (10 percent) in addition to the interim dividend of Rs 0.75 per share (15 percent) paid on March 30, 2013.

The total dividend pay-out for 2012-13 would work out to be at Rs 1.25 per share (25 percent) as against Rs 1.00 per share (20 percent) paid for 2011-12.

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Nationwide ban on earth mining for bricks and roads: NGT

In a blow to brick-kiln industry and road contractors, the National Green Tribunal has banned digging of earth across the country for making bricks and roads without prior environment clearance (EC).

A bench headed by Justice P Jyothimani has directed the Chief Secretaries of all the states and union territories to ensure that its interim order is adhered to.

"We restrain any person, company and authority to carry out any such digging activities of brick earth or ordinary earth against the directives issued by the Ministry of Environment and Forests (MoEF) of June 24, 2013 in any part of the country without obtaining EC from the competent authority.

"The Chief Secretaries of all states/Union Territories (UTS) are to ensure strict adherence to this order," it said.

The tribunal issued notices to Uttar Pradesh seeking its response on the plea for directions to the state government to stop extraction of earth for making bricks and roads, which is allegedly going on in violation of a Supreme Court decision as well as directions of the MoEF to all the states.

"Considering the seriousness of the issue", the bench restrained the UP government from permitting such digging until further orders of the tribunal.

The NGT made the order applicable to all the states saying "as the judgement of the apex court as well as the directives issued by MoEF has got the effect and applicability throughout the territory of India,... what is applicable to respondents (UP government) by our interim order is applicable to all the other states and UTs also".

The ban on brick earth mining comes one-and-a-half months after the NGT banned sand mining from river beds, without environment clearance, across the country.

As per the petition, MoEF in its office memorandum to the states has directed that digging of earth for making bricks and roads requires EC from the competent authority.

The petition has alleged that in spite of the decision of the apex court and the directives of the MoEF, the Uttar Pradesh government has not framed rules/guidelines for the purpose of obtaining EC and are allowing indiscriminate digging of earth.

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FIPB likely to consider Tata-SIA airline proposal on Oct 18

The Foreign Investment Promotion Board (FIPB) is likely to consider the proposal of Tatas and Singapore Airlines for a new joint venture on October 18 entailing a foreign investment of USD 49 million.

"The application has been received and would be considered at the next meeting of FIPB on October 18," an official told PTI.  The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, is an inter-ministerial panel for approving Foreign Direct Investment (FDI) across sectors.

In their new venture, Tata SIA Airlines Ltd, Tata Sons would hold 51 per cent stake and Singapore Airlines (SIA) 49 per cent.  The proposed venture would also require approvals from agencies like the DGCA and tax department besides other ministries and government departments.

Also read: Centre expects states to slash taxes on aviation fuel

The companies had last week announced a pact to set up a new full-service airline with an initial investment of USD 100 million. "High foreign investment inflows would further strengthen the civil aviation sector," the two partners said in an application to the FIPB, while seeking approval for the USD 49 million worth FDI by SIA.

Tatas and SIA, which are together attempting an aviation venture for the third time, are also understood to have said that the JV would create significant job opportunities in India. Tata Sons, the holding company of most of the operating firms of the salt-to-software conglomerate Tata group, has signed an MoU with SIA for the venture.

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Don't expect rollback on quadricycles: Rajiv Bajaj

Sep 27, 2013, 08.33 PM IST

Original equipment manufacturers (OEMs) had earlier opposed the quadricycle segment of automotives and differences over the government's decision to notify them as a new class of autos quoting safety reasons.

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Don't expect rollback on quadricycles: Rajiv Bajaj

Original equipment manufacturers (OEMs) had earlier opposed the quadricycle segment of automotives and differences over the government's decision to notify them as a new class of autos quoting safety reasons.

Like this story, share it with millions of investors on M3

Don't expect rollback on quadricycles: Rajiv Bajaj

Original equipment manufacturers (OEMs) had earlier opposed the quadricycle segment of automotives and differences over the government's decision to notify them as a new class of autos quoting safety reasons.

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Rajiv Bajaj, managing director, Bajaj Auto believes there will be no rollback on the in-principle nod given by the Government on including quadricycles into the automotive segment.

Speaking to CNBC-TV18 on the sidelines of the AIMA Convention, Bajaj said that he isn't clear on what specifications the government will announce for the quadricycles or what the timeframe for the rollout of the same will be.

"My own expectation is that there will be no rollback. The quadricycle will be implemented. But what exact specifications will be announced and what exact timeframe will be announced is what we have to wait and watch," said Bajaj.

Original equipment manufacturers (OEMs) had earlier opposed the quadricycle segment of automotives and differences over the government's decision to notify them as a new class of autos quoting safety reasons. 

The 30-day notice period for the quadricycle norms expired on September 26.

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Essar Steel promoters to infuse up to Rs 1,000 cr equity

Promoters of Essar Steel will infuse an additional equity of up to Rs 1,000 crore into the loss making steelmaker by acquiring its shares on a preferential basis. The move is aimed at meeting the company's capex and operational requirements as well as strengthening the capital base, Essar said in its Annual General Meeting notice, while seeking shareholders approval. The AGM is scheduled to be held tomorrow in Hazira, Gujarat.

The capital infusion by the promoters will also help the company in reducing strain on its balance sheet as its consolidated net loss had widened by over 2.5 times in the last fiscal to Rs 5,105 crore. Its interest payments had also risen by over 32 percent to Rs 2,955 crore, while the current liabilities (Rs 21,498.48 crore) have exceeded its current assets (Rs 9,593.19 crore) by Rs 11,905.29 crore in 2012-13.

Also read: 'Open to all means for buying residual stakes in HZL,Balco'

The unlisted leading steelmaker has proposed to make the preferential allotment in next 12 months to the promoters. Following this, promoters' stake in the company will increase marginally by 0.18 percent to 97.45 percent.

"Resolved that...consent of the company be and is hereby accorded to the Board of Directors of the company to issue and allot...on preferential basis such number of equity shares...for an amount not exceeding Rs 1,000 crore to Essar Steel Asia Holdings Ltd, Mauritius/Essar Steel Ltd, Mauritius...," the company said in the AGM notice.

The Ruia family, led by Shashi and Ravi Ruia, are the promoters of the company through Essar Steel Asia Holdings Ltd, Mauritius. According to the Annual Report of Essar, its promoters infused Rs 764.86 crore equity into the company between November, 2012 and June, 2013 by acquiring over 16.81 crore shares.

As of March 2013, the company's paid up equity capital was Rs 2,798.20 crore. "In order to raise balance funds and to meet fund requirements, enabling resolution is required as proposed at item no 10 of the (AGM) notice," the company said.

The company said it has approached a Chartered Accountant for valuation of shares and number of shares to be allotted would be decided accordingly. Last month, the company had taken shareholders approval to raise a minimum of Rs 2,241 crore by selling three non-core assets for paring some of its USD 4 billion (around Rs 26,000 crore) debt and reducing the strain on its balance sheet.

Essar also has plans to raise USD 2 billion through pre-export finance to retire majority of its rupee-denominated debt and is aiming to complete its during the current fiscal. The move would help the company in reducing interest costs by about Rs 850 crore, enhancing loan tenure and negating the impact of fluctuation in currency rates. The company, which has invested Rs 37,000 crore to increase its capacity to 10 MTPA, has already secured Reserve Bank's permission for raising dollar loans.

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Reliance Power CEO resigns, plans to move overseas

In a surprise announcement, Reliance Power today said its long-serving Chief Executive J P Chalasani has resigned from the company. Chalasani, who served the firm for 18 years, will leave "towards the end of the year to pursue his entrepreneurial ambitions and relocate overseas," Reliance Power said in a stock exchange filing.

Chalasani did not take phone calls seeking comments. After starting his career with state-run NTPC , Chalasani went with the Anil Ambani Group when the Dhirubhai Ambani empire was split between brothers Mukesh and Anil in June 2005. He handled various assignments for Reliance Power. A close associate of Anil Ambani, Chalasani, 55, rose to become Chief Executive Officer of Reliance Power in March 2008 and spearheaded its operations.

During his tenure as CEO, Reliance Power won three ultra mega power projects worth Rs 20,000 crore each in Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand).

Reliance Power also signed a USD 10 billion deal with China's Shanghai Electric Corporation to secure equipment supply for its power projects for 10 years in October 2010.

The company said it will name a new CEO in due course. Reliance Power shares closed at Rs 70.70, down 1.05 percent on the BSE.

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US aircraft lessor ILFC sends rental default notice to Jet

Naresh Goyal-promoted Jet Airways has been slapped with a default notice by one of its lessors, ILFC, for non-payment of rentals.

Also Read: Jet-Etihad deal: CVC may close complaints of irregularities

Jet, however, said it is negotiating with the US-based International Lease Finance Corp (ILFC), and hopes to reach an amicable settlement.

The default amount could not be ascertained. According to reports, Jet has been served a notice by ILFC for non-payment of rentals of its about six Boeing 737s.

The aircraft for which the rentals have not been paid are currently with both Jet Airways and its low-cost arm JetLite.

"Jet Airways has a long and excellent relationship with ILFC. Jet and ILFC are currently in discussions to reconcile their respective accounts to identify the exact dues. On completion of the same, the accounts will be settled," a Jet spokesperson told PTI.

The Jet Group has 115 planes, both narrow-body and wide-body aircraft, a majority of them leased.

The airline reported a net loss of Rs 355.38 crore in the June quarter and is pinning hopes on the impending Rs 2,058 crore deal by divesting 24 percent stake to Etihad to overcome the financial problems.

The deal, which is awaiting approval from the Cabinet, the market regulator Sebi and competition watchdog CCI, has been challenged in the Supreme Court by BJP leader Subramanian Swamy, alleging corruption.

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NALCO plans new ventures, expansion, diversification

Despite declining prices and adverse market conditions, aluminium giant NALCO , which posted 4.75 per cent jump in sales turnover at Rs 6,809 crore in 2012-13, has plans for ambitious new ventures, expansion and diversification programmes, a top company official said today.

Also Read: See FY14 output at 3.5 lakh tonne: Nalco

Nalco is pursuing with Odisha government plans to obtain Pottangi Bauxite Mines, which has a mineable reserve of about 70 million tonnes, NALCO CMD Ansuman Das said at the 32nd annual general meeting of the Navaratna PSU here.

Subject to availability of Pottangi Mines, the company has plans to go for 5th stream Refinery based on medium pressure digestion technology at Damanjodi, he said.

The capacity of the stream will be approximately 1 million tonnes per annum and investment will be approximately Rs 5,000 crore.

The CMD said NALCO is planning to set up a Rs 5,500 crore greenfield Alumina Refinery in Gujarat with 1 MTPA capacity, for which Bauxite shall be supplied by Gujarat Mineral Development Corporation.

Listing the achievements of NALCO, the CMD said: "The company has posted a higher net sales turnover of Rs 6,809 crore, which is 4.75 per cent over Rs 6,500 crore achieved in the previous fiscal."

The rise in sales turnover was mostly attributed to higher production and sale of alumina, he said. However, the net profit of the company was Rs 593 crore during the year as compared to Rs 850 crore in the previous fiscal, primarily due to high input costs, Das said.

NALCO achieved in last fiscal the highest-ever performance in Bauxite transportation of 54.19 lakh tonnes (LT), against the previous best of 50.03 LT in 2011-12, the CMD said.

At the same time, Nalco's Alumina Refinery has produced 18.02 lakh tonnes of alumina hydrate, which is an all-time high, against the previous best of 16.87 LT achieved in 2011-12, he said.

The Aluminium Smelter Plant at Angul achieved cast metal production of 4.03 LT against 4.13 LT achieved in 2011-12, Das said.

On sales, the Nalco CMD said the company achieved total chemical sale of 9.85 LT in 2012-13 compared to 8.43 LT achieved during 2011-12. This includes Calcined Alumina Export of 9.44 LT made during 2012-13 compared to 7.92 LT export during 2011-12.

The total metal sale during 2012-13 was 4.03 LT compared to 4.15 LT during 2011-12. Total metal sale consists of domestic sale of 2.59 LT and export of 1.44 LT.

Total metal sales during the year was lower due to production curtailment at Smelter Plant because of high input costs, he said.

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Zuari to sell MCFL stake if JV with UB Group doesn't happen

Zuari Fertilizers promoter Saroj Poddar today said he will sell his 16 per cent stake in the Mangalore Chemicals and Fertilizers Ltd (MCFL) if a joint venture with the firm's promoter UB Group does not materialise.

Also Read: Will sell MCF stake if Mallya keeps mum on JV plan: Zuari

Poddar's statement comes two days after UB Group Chairman Vijay Mallya had said that he was ready to buy stakes from Zuari and Deepak Fertilisers in MCFL.

In UB group's MCFL, Zuari currently has 16.43 per cent stake while Pune-based Deepak Fertilisers and Petrochemicals has about 24.46 per cent stake.

"Mallya has said that he is keen to buy shares in MCFL held by Zuari Fertilisers. If Mallya is keen to buy shares, I am more than willing to sell my shares," Saroj Poddar said when asked about his comment on Mallya's offer.

"As a business professional, Mallya has every right to take a decision. I will respect his decision. If he is willing to go for joint venture, I am ready.

"If he does not, I am okay with it. And if the JV does not happen, I will sell MCFL shares to the highest bidder as I will have to protect my shareholders' interest. I hope this will happen soon," Poddar told reporters on the sidelines of an event here.

Poddar said that Zuari had bought shares of MCFL in consultation with Mallya with an idea of floating joint venture between the two companies.

"I have bought shares of MCFL in consultation with Mallya. And this was based on an idea of floating joint venture with Zuari. It was very clear. I also have first right of refusal of MCFL shares with UB Group," Poddar said.

Shares of MCFL today closed at Rs 52.30, up 1.65 per cent. At current price, Zuari's stake in MCFL is worth Rs 102 crore. After touching 52-week low of Rs 27.30 on March 4, the stock jumped to 52-week high of Rs 73 in second week fo July.

While speaking to media on September 24 in Bangalore after the Annual General Meeting, Mallya had said that the focus is on UB maintaining control over MCFL.

"I intend to keep MCF within the UB Group fold and that we are not sellers and if either of them (Saroj Poddar of Zuari and Sailesh Mehta of Deepak Fertilisers) wish to sell their shares we would be happy to buy them," Mallya had said earlier this week.

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PFC invites initial bids for Odisha, Tamil Nadu UMPPs

Power Finance Corporation , the nodal agency for ultra mega power projects in the country, has invited preliminary bids for setting up a UMPP each in Odisha and Tamil Nadu. The Power Ministry proposes to set up a 4,000 MW ultra mega power project at Bedabahal (Odisha) and Cheyyur (Tamil Nadu).

"Under the initiative for development of UMPPs launched by the Ministry of Power, PFC invites applications for selection of eligible bidders for development and operation of 4,000 MW Cheyyur project on DBFOT basis," a notice inviting tender on PFC website said.

DBFOT is design, build, finance, operate and transfer model. Cheyyur UMPP is a coastal power project based on imported coal. The beneficiary states are Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Kerala, Uttar Pradesh and Punjab.

Also read: 'Will seek Cabinet nod for capping gas price for power'

In another notice, PFC also invited initial bids for executing 4,000 MW UMPP at Bedabahal in Odisha. The project, to be set up on DBFOT basis, is a coal-fired pit head project near Bedabahal village in the state. The coal from the project will be sourced from the mines -- Meenakshi, Meenakshi B and dip side of Meenakshi in Ib valley coalfields allocated by Coal India for this project.

Estimated investment in each UMPP is approximately Rs 20,000 crore. These bids have been invited after the government revised the existing Standard Bidding Documents for Case-II projects including UMPPs.

Under the revised norms, any escalation in cost of fuel will be passed on to the consumer in the form of higher tariff and the companies, executing the projects, will have to mandatorily source equipment from the domestic manufacturers.

Case-I projects are where developers have the choice to decide on location, fuel and technology to be used. In Case-II, the location of the project and fuel to be used are already decided before the start of competitive bidding.

So far, four UMPPs have been awarded of which three --Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) -- have been bagged by Reliance Power . Tata Power is operating the Mundra UMPP in Gujarat.

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Govt to soon permit private cos to explore shale resources

After allowing state-owned firms to explore shale oil and gas from their blocks, the government will soon permit private companies like Reliance Industries and Cairn India to find and produce shale resources.

"My first original draft (shale gas policy) was for a comprehensive policy involving exploration of shale resources by both public and private sector companies. But finance ministry had some constraints... so we bifurcated that allowing national oil companies first," Oil Minister M Veerappa Moily said on the sidelines of the HSE Conference organised by Cairn India here.

The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved the long-awaited shale gas and oil exploration programme to boost domestic output .

In the first phase, state-owned ONGC and OIL have been permitted to explore for and produce shale oil and gas from onland blocks that were allotted on a nomination basis before advent of the New Exploration Licensing Policy in 1999.

The government will offer shale oil and gas blocks to other companies through an auction planned after such a policy is taken to the Cabinet for approval in the next few weeks.

The policy for allowing private firms to also explore and produce shale oil and gas "will come very soon," he said. Shale gas, or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface, is the new focus area in the US, Canada and China as an alternative to conventional oil and gas for meeting growing energy needs.

As per available data, six basins -- Cambay (in Gujarat), Assam-Arakan (in the North-East), Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo-Gangetic basins, hold shale gas potential.

Various studies have estimated recoverable reserves of shale gas at between 6 trillion cubic feet and 63 trillion cubic feet.

Shale production will be taxed at par with conventional fields.

"Initially, I was in favour of an integrated shale gas policy but due to certain issues we decided to take the first step (of allowing state-owned firms to explore)," Moily said.

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Sebi settles SpiceJet case with WL Ross for Rs 1.10 cr

Billionaire investor Wilbur Ross-headed global private equity group WL Ross has paid Rs 1.10 crore to settle long-running Sebi proceedings with regard to purchase of shares in Indian carrier SpiceJet.

WL Ross had acquired controlling stake in low-cost carrier Spicejet in August, 2008, but later sold it to Kalanithi Maran-led Sun Group in June, 2010. As on June quarter, Marans held 52.14 per cent stake in the airline.

Market regulator Sebi was probing suspected violations by WL Ross entities with regard to takeover norms, including alleged failure to make a public announcement to acquire shares of Spicejet and suppression of information from the regulator and the public at large.

Also read: Sebi relief for P&G in Gillette case

In 2011, the Securities and Exchange Board of India (Sebi) had initiated adjudication proceedings against WL Ross group entities --  WLR Recovery III (India), WLR Recovery IV/ESC (India), India Asset Recovery Fund and WLR/GS (India) -- over the alleged violations.

While the adjudication proceedings were in progress, the entities had filed for a settlement plea in 2012 with Sebi under the regulator's consent order mechanism. The entities had offered an amount of Rs 1.10 crore as part of the settlement terms.

The consent terms were approved by Sebi's High Powered Advisory Committee (HPAC) and the panel of whole time members, this year.

Accordingly, the WL R entities have remitted the consent amount on August 13, 2013, said a Sebi consent order today. Sebi said it is disposing of the adjudication proceedings initiated against the entities with immediate effect.

The market watchdog said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by WL R entities is found to be untrue.

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Nokia launches Lumia 1020 with 41 megapixel camera

Targetting camera aficionados, Nokia India today unveiled its much-anticipated 41 megapixel camera phone Lumia 1020, which will hit shelves on October 11. The price of the device will be disclosed on October 10 but as per estimates, it will be available in the range of Rs 47,000-Rs 48,000. It is currently selling in other markets for USD 800.

"We have received extremely encouraging response for our Lumia range and believe that Nokia 1020 will further strengthen our leadership in imaging, which plays a important role in the lives of consumers today," Nokia India Managing Director P Balaji told reporters here.

The dual-capture feature of the phone allows to take a high resolution 38 megapixel image and also creates a 5 megapixel picture that can be shared on social networking sites. The device has an application called Nokia Pro Camera, which makes it easy for anybody to take professional quality images.

The application allows users to click pictures first and then zoom later to get their desired shot. "It is our premium smartphone and our target market is people who value great imaging experience. There are 50 per cent people who click pictures with their smartphones and a fraction of those are camera lovers, who are our target audience for this phone," Nokia India, Middle East and Africa Director (smartphone devices) Vipul Mehrotra said.

Also read: Nokia weighs Alcatel tie-up after Microsoft deal, say Sources

He said when it comes to volumes, there is this pyramid structure. Lumia 520 will be the lower end of the pyramid and 1020 will be the top end. Mehrotra said Lumia 520 has received an amazing response from the people and it is one of the largest selling devices on the e-commerce sites.

"Lumia 520 is a favourite with the younger audience, its a high end smartphone at a very affordable price," he added. The company now has 13 devices in the Lumia portfolio in India. Lumia 1020 runs on Windows 8 and has 32 GB on board storage. The company has also tied up with Vodafone wherein the customers will get free 2GB of 3G data usage for two months. Customers will also get an application voucher worth Rs 1,000 with the phone.

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Want to buy additional spectrum, invest in India: SSTL

Sistema Shyam Teleservices Ltd, which offers mobile services under the MTS brand, has informed Trai that it wants to invest in India and participate in spectrum auctions to expand operations across the country.

SSTL has said this in a protest letter to the Telecom Regulatory Authority of India against its recommendation that there should be no auction of CDMA airwaves. It was only bidder for the CDMA spectrum (800 Mhz band) in the March 2013 auctions and won radiowaves to operate in 8 circles for Rs 3,639 crore.

Also read: Spectrum auction expected in Jan, target Rs 11k cr revenue

In the letter, SSTL CEO Dmitry Shukov said: "We have already made USD 3.6 billion long-term investment in India and would need additional spectrum to meet the growing demand from subscribers for better quality services.

"SSTL is committed towards India, and are willing to continue to make investments in India."  Trai has said in its recommendations that there is no demand for the CDMA spectrum, except from SSTL, as was seen in the last auction and one telecom operator had offered to surrender some its airwaves frequency in the CDMA band.

The regulator also said that unlike 1800 Mhz band (2G spectrum), government is not bound by the Supreme Court order to auction CDMA radiowaves, recommending that "the auction in the 800 MHz band should not be carried out now".

Countering the point, Shukov said that there was no demand for even premium 2G spectrum in 900 Mhz band but still Trai has recommended its auction at much lower rate.  "Had reserve price for 800 MHz spectrum band been reasonable, we may have bought more spectrum in 8 circles and participated in auction for remaining 13 circles and continued with Pan India operations," he said in the letter dated September 20.

Trai has recommended up to 62 per cent lower price for 900 Mhz band spectrum compared to last reserve price. Government is considering auction of certain amount of frequencies in 900 Mhz band which are with telecom companies like Airtel, Vodafone and Loop Mobile in service areas where their licences will expire in the last quarter of 2014.

Shukov has also protested against Trai recommendation to explore opportunity for making part of CDMA spectrum band available for extended GSM services. "We are perturbed by the Authority's recommendation to cull out significant portion of 800 MHz band to create EGSM band and withhold auction of 800 MHz spectrum band. Our decision to investment in 800 MHz spectrum band was based on current and future availability of spectrum in this band," he said.

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JSPL to set pellet plant in Odhisa, to invest Rs 1400cr

Jindal Steel and Power today said it plans to set up a 7 million tonnes per annum (mtpa) pellet plant at Angul in Odisha with an investment of up to Rs 1,400 crore.

Also Read: JSPL lauds coal auction to pvt cos; getting many nods snag

"We are going to set up a pellet plant at Angul. We already have the clearance from the state government to put up the plant," Jindal Steel and Power's (JSPL) Deputy Managing Director and CEO (Steel) V R Sharma told reporters here.

"The investment for a pellet plant of 7 mtpa size varies somewhere between Rs 1,200-1,400 crore," he added.

JSPL has a 4.5 mtpa pellet plant at Barbil in Odisha and and is in the process of doubling the capacity. The additional 7 mtpa capacity would come as a part of its expansion project at Angul, where the company is expanding its steel-making capacity to 3.5 mtpa from 2.5 mtpa now.

"The pellet plant will come with our second phase of expansion at Angul. We are going to put up blast furnace, another DRI, another coke oven battery at Angul. With that we are going to put up the pellet plant," Sharma said.

The expansion work at Angul would start as soon as JSPL secures the financial closure for which it is in talks with the prospective banks. Sharma said JSPL was keen on adding value to the iron ore fines by setting up the pellet plant as in the areas closer to Angul plant, there is hardly any pelletisation taking place now.

"Fines are available in plenty there, but people are not converting (fines) to pelletes. So, we will happy to convert them (fines) into pellets," he said.

Sharma said India currently has around 50 mtpa pellet capacity and with the ongoing expansions, it would go up to 70 mtps in the next five years. He also expressed hope that the capacity would go up to 120 mtpa by 2022.

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SBI says Q2 corporate lending soars 18%; tops Rs 2 trillion

State Bank of India today said its large corporate assets base registered a full 18 per cent growth in the second quarter compared to the previous fiscal, resulting in its loan book crossing the Rs 2-trillion-mark.

"The CAG (corporate accounts group) has crossed a business of Rs 2,00,000 crore," the bank said in a statement today.

Also read: SBI well capitalised; rating cut won't impact local biz: MD

The bank's exposure to the corporates had stood at Rs 1,68,901 crore at end of the June quarter. Interestingly, the jump comes even as bankers are complaining about no new project coming up for funding and the bank reportedly stopping lending to road projects which do not have fully secured the land.

Bankers say majority of corporates are back to banks to meet working capital requirements.

SBI had yesterday said it posted a healthy growth of over 20 per cent in advances during Q2 as the commercial papers (CP) and certificate of deposits (CD) markets have dried up of late as pricing have shot up.

The rates in the call money markets, too, have hardened following the Reserve Bank's liquidity tightening measures in July to arrest the rupee fall.

SBI has denied facing any liquidity issues though it has taken some measures like being cautious on new loans by discounting the letters of credit of only the top-rated companies. Meanwhile, SBI also opened a corporate branch in the Bandra Kurla Complex area of the metropolis.

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Aircel, Micromax enter into strategic partnership

Leading telecom player Aircel has entered into a strategic partnership with handset manufacturer Micromax to drive data growth in the country. Under this new partnership, Aircel and Micromax will share their Channel and Retail Networks, Sales Resources and run an integrated device sales activation program.

Also, they introduced unique and exciting Reverse Bundling handset Offers worth Rs 12000 per month for every new Aircel customer. Aircel's focus on data innovation and its expertise in mobile network, along-with Micromax's expertise in device marketing will redefine the user experience and take data penetration to the next level, Dhiraj Israni, Circle Business Head, Aircel, Orissa told reporters here.

Also read: TRAI recommends full number portability within 6 months

"India is at the cusp of a data revolution and device tie-ups will strengthen the telecom ecosystem in the country, which is critical to drive data penetration. According to a recent study, by the year 2020, mobile internet users are set to grow 4 - 5 times and smartphone penetration is set to increase 5 times to 50 per cent in India," he said.

Affordability in devices will give a rise to data proliferation which will be the main revenue generator for both telecom operators as well as handset manufacturers in the near future. Aircel recognizes the  importance of smartphone devices to drive data usage. In line with that, it is our focus to get into partnerships with leading smartphone device manufacturers in an endeavor to bring to our customers exciting bundled products.

"In exclusive partnership with Micromax, we will share their robust channel and retail network to deliver innovative and best value for money products and services," Israni said Vikas Jain, Co-founder, Micromax, said, "At Micromax, we have always believed in democratizing technologies for masses by bringing alive affordable innovations through our product and service offerings. We are very happy to partner with Aircel, as this partnership will be an excellent amalgamation of Aircel's innovative offerings in the market place and superior hardware capabilities of Micromax, which will enable millions of consumers in India to enjoy seamless connectivity through affordable call rates, data usage and internet TV on Micromax devices."

Vikas said the partnership will further provide a major boost to better connectivity and internet adoption as Aircel's network coupled with our innovative devices, backed by a strong channel and retail presence will take these offerings across the country.

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Will act if Fin Tech breaches fit-and-proper norms: Sebi

Rajeev Agarwal, wholetime director, Securities and Exchange Board of India (Sebi) said the market regulator will take the necessary action if Financial Technologies ' (FTIL) breaches the fit-and-proper norms.

"The thing is that the order mentions, and our fit and proper criteria is already laid down. So, if there is any breach of that, the suitable necessary action will be taken," says Agarwal.

Agarwal's comment comes a day after the company's auditor, Deloitte Haskin & Sells, announced that the company's FY13 accounts should not be relied upon.

More drama followed as National Spot Exchange Limited's auditor, Grant Thornton said that the exchange had been defaulting on loans for the past 2.5 years and despite being aware of the fact continued its operations.

Meanwhile, Jignesh Shah, managing director, FTIL, while addressing media and investors, continued to make more promises and requested investors to give him more time.

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SAT adjourns RIL insider case hearing to Oct 11

The Securities Appellate Tribunal (SAT) today and adjourned hearing to October 11 on Reliance Industries Limited 's (RIL) appeal against market regulator SEBI in the long-running insider trading case.

Read more: Sebi looks to strengthen insider trading norms

The SAT also declined to allow an intervention petition by an individual who had alleged that there could be collusion between Sebi and the Mukesh Ambani-led Reliance Industries to settle the case.

Rejecting the plea, the SAT asked him to approach the Bombay High Court or the Supreme Court, saying the tribunal is not the appropriate forum to hear such a plea.

Meanwhile, the tribunal continued the final arguments in the seven-year-old case between Sebi and the country's largest corporate entity. RIL counsel Janak Dwarkadas making the final arguments said his client has not yet received all relevant documents from the regulator, a claim disputed by Darius Khambata, the Advocate General, appearing for Sebi, who instead asked RIL to file an affidavit stating so.

Khambata alleged that all these are time-buying tactics by RIL.

The SAT adjourned the matter to October 11 when Khambata will conclude his arguments. The capital market watchdog has been maintaining that RIL's appeal against its order is "not maintainable".

The matter relates to RIL's appeal against Sebi in a case related to alleged violation of insider trading norms in sale of shares of its erstwhile subsidiary Reliance Petroleum (RPL) in 2007. RPL was later merged with RIL.

RIL had approached SAT against Sebi after its application to settle the matter through a 'consent mechanism' was rejected by the regulator. Under Sebi's consent mechanism, companies can seek to settle cases with the regulator after paying certain charges and disgorgement of any ill-gotten gains.

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Oberoi Realty promoter to sell shares via OFS

Oberoi Realty today said its promoters will sell 1.14 crore shares tomorrow at Rs 158 per share through stock exchanges to meet market regulator Sebi's guidelines on minimum public shareholding norm. The sale is expected to fetch over Rs 180 crore to the promoters if it is fully subscribed.

Also Read: Realty stocks under pressure on high inventories

In a filing to the BSE, the Mumbai-based developer said that its CMD and promoter Vikas Oberoi will sell 1,14,41,069 shares through Offer For Sale (OFS), representing 3.49 per cent of the total paid-up share capital of the company.

The floor price for the sale would be Rs 158 per equity share of the company, which is lower than the current market price. The company's share price closed at Rs 166.85 apiece on BSE, down by 1.65 per cent from previous closing.

Promoters had 78.49 per cent stake in the company as on June 30, 2013 and they need to pare their stake to 75 per cent for meeting Sebi guideline on minimum 25 per cent public shareholding for private sector listed companies.

Oberoi Realty has 36 completed projects across Mumbai.

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Baring-Hexaware deal gets CCI nod

Approving one of the biggest deals in the Indian IT space, fair trade watchdog CCI has cleared Baring Private Equity's proposed acquisition of controlling stake in outsourcing firm Hexaware Technologies , saying the transaction will not adversely impact competition.

The Rs 2,745 crore proposed deal involves HT Global IT Solutions, part of Baring Private Equity Asia, purchasing 41.48 per cent stake of Hexaware Technologies following execution of 'share purchase agreements' and an additional stake of up to 26 per cent pursuant to a mandatory open offer.

Also read: Weak rupee to benefit only in short-term, says Tech Mahindra

In an order dated September 19, Competition Commission of India (CCI) said that "the proposed combination is not likely to have an appreciable adverse effect on competition in India and, therefore, the Commission hereby approves the proposed combination under the (Competition) Act".

The fair trade regulator noted that while Hexaware is engaged in the business of providing information technology (IT) and Business Processing Outsourcing (BPO) services, none of the companies belonging to Baring Private Equity Asia, including HT Global have any investments or interests in firms engaged in giving IT and IT enabled solutions and having operations in India.

"The proposed combination, therefore, does not contemplate combination of two existing players in the Indian IT & IT enabled service industry," CCI said. Last month, HT Global had entered  into two separate 'Share Purchase Agreements'. One agreement was entered with Elder Infosystems and Elder Venture LLP and another one with GA Global Investments.

Following the execution of the agreements HT Global had approached CCI for its approval earlier this month. Most of the merger and acquisition deals in the country have to get clearance from the CCI, which has the mandate to address anti-competitive practices in the market place.

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Tata, SIA say airline to always remain under Indian control

Tatas and Singapore Airlines have assured the government that control of their proposed airline venture would always remain in Indian hands, while seeking approval to offer passenger services on both domestic and international routes.

The new venture, proposed to be called Tata SIA Airlines Ltd, would have Tata Sons as the majority partner with 51 percent stake, while Singapore Airlines would hold 49 percent stake with USD 49 million of foreign direct investment (FDI).

The two partners have sought approval from the Foreign Investment Promotion Board (FIPB) for the FDI. The proposed venture would also require approvals from other agencies like the DGFT, DGCA and CBEC, besides other ministeries and state government departments.

Also read: Tiger Airways gears up funds for SpiceJet bid, say sources

According to sources, FIPB has been informed that the new company would eventually have six board members, including four to be nominated by Tatas. The two partners have so far announced three board nominees -- two from the Tatas and one from SIA.

The companies had announced last week they have reached a pact to set up a new full-service airline. According to their FIPB application dated September 20, "the JV company will be engaged in the activity of operating domestic and international full service scheduled airline services in India."

Noting that the substantial ownership and effective control of the JV would be with Tatas with a 51 per cent stake, the application said that SIA would have a minority representation on the board and "will not be in a position to have 'de-facto' control over the Board".

"Therefore, the control of the JV company will remain in the hands of an Indian owned and controlled company." The chairman of the board would always remain a Tata nominee. Besides, the chairman and at least two-third of directors would always be Indian citizens.

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India's domestic air traffic set to grow at 10%: Airbus

India's domestic air traffic is set to grow at the "fastest rate" of 10 percent against the global average of about five percent in the next two decades, triggering a demand for over 29,000 additional planes across the world, aircraft manufacturer Airbus said today. Air travel till 2032 will be fuelled by traffic to and from emerging markets like India, Brazil and China, and world air traffic will grow at 4.7 per cent annually, requiring 29,220 new passenger and freighter aircraft valued at nearly USD 4.4 trillion.

Also read: IndiGo eyes profit for 5th yr; eyes stronger FY14 growth

In its latest Global Market Forecast for the next 20 years (2013-2032), Airbus said: "Domestic flows are set to rise strongly, with domestic India growing at the fastest rate (nearly 10 percent), followed by China and Brazil (seven per cent)." The forecast said that "by 2032, Asia-Pacific will lead the world in traffic overtaking Europe and North America". "Today on average, a fifth of the population of the emerging markets take a flight annually and by 2032, this will swell to two-thirds," the major aircraft firm said. Overall, with an above world average traffic growth rate of 5.5 per cent, Asia-Pacific will account for 36 per cent of all new passenger aircraft demand, followed by Europe (20 percent) and North America (19 per cent), it said. "The attraction of air travel means that passenger numbers will more than double from today's 2.9 billion to 6.7 billion by 2032, clearly demonstrating aviation's essential role in economic growth," Airbus' Chief Operating Officer (Customers) John Leahy said while releasing the forecast. He said that in the very large aircraft market, dominated by super jumbo A-380, there is a requirement for 1,334 passenger aircraft valued at USD 519 billion. "Of these, 47 percent will be needed in the Asia-Pacific region, followed by the Middle East (26 per cent) and then Europe (16 per cent). Asia-Pacific's requirement for the A-380 is demonstrated by the region's growth in middle classes which is set to quadruple in Asia-Pacific in 20 years," Leahy said.

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United Spirits appoints Anand Kripalu as next MD an CEO

United Spirits Ltd ( USL ) today said its board has appointed Anand Kripalu as CEO-Designate of USL with effect from 1 October 2013 and he will assume charge as MD and  CEO on May 1 2014.

"Anand Kripalu will be appointed CEO-Designate of USL with effect from October 1, 2013. Anand will officially become Managing Director and CEO on May 1, 2014, succeeding Ashok Capoor, currently President and Managing Director of USL,"United Spirits said in a statement.

Commenting on the development, Chairman of USL Vijay Mallya and Diageo PLC Asia Pacific President Gilbert Ghostine said: "Anand brings with him an outstanding track record of over 30 years in building, leading and transforming businesses in the FMCG sector.

Also read: Firmly in control of Mangalore Chemicals, says Vijay Mallya

"His extensive leadership experience and expertise in emerging markets make him a strong asset to the future growth of the business in India and both USL and Diageo brands. We look forward to working closely together to take the business to even greater heights."

Kripalu was formerly President, India and South Asia, at Mondelez International where he played a key role in leading Mondelez after the Cadbury acquisition by Kraft in India, it added. Prior to this he spent 22 years in the Unilever Group where he held various senior sales and marketing roles.

Ashok Capoor will continue his tenure as President and Managing Director of USL until April 30, 2014. Following this, he will be appointed as President, Strategy of United Spirits for a year with effect from 1 May 2014, USL said.

"In this role, he will work with Vijay Mallya, Chairman of USL, and Gilbert Ghostine, President, Asia Pacific, Diageo PLC," it added.

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India approves 1st ever coal block auction for private cos

The Indian cabinet has approved auction of coal blocks to private companies, Coal Minister Sriprakash Jaiswal said on Tuesday, enabling the government to allot coal mining licences through competitive bidding for the first time.

Also read: Centre files affidavit on coal blocks identification

Coal mining licences used to be allocated on recommendations of a panel of top bureaucrats across ministries, but the federal auditor censured the process last year saying it lacked "transparency" and probably deprived the government of billions of dollars of potential revenue between 2004 and 2011.

India relies on coal to fuel more than half of its power generation, but state-run monopoly Coal India Ltd , that accounts for around 80 percent of the country's output has been unable to dig out coal fast enough to feed the country's growing power demand.

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Infrastructure debt funds (IDFs) get powers to recover debt

The government today modified norms for Infrastructure Debt Funds (IDFs) by giving them powers to recover debt, in line with those provided to banks. The Cabinet Committee on Economic Affairs (CCEA) has removed "certain impediments" in operationalisation of IDFs, according to an official statement.

Now, such funds will have "access to the benefits of  Public Financial Institutions (PFI) status to IDFs like permitting IDF NBFCs to file Shelf Prospectus...and access to provisions of the SARFAESI Act, including to the adjudicatory process through Debt Recovery Tribunals as currently permitted to Banks and PFIs."

Also read: Don't see rise in interest rates for infra sector,s says Feedback

"In addition, post-successful COD (commercial operation declaration) PPP projects will now be eligible for investment by insurance companies, provident funds, EPFO and mutual funds, among others," the release said.

The government envisages Rs 56.3 lakh crore (about USD 1 trillion) investment in the infrastructure sector during the 12th Five Year Plan period. IDFs are expected to channelise long term funds from insurance and pension funds, sovereign wealth funds to supplement lending for infrastructure projects by banks which are increasingly being constrained by their asset-liability mismatch and exposure limits.
   
The cost and tariff of infrastructure services are likely to go down as a result of low cost, long term debt provided by IDFs, the release said.  In addition, the taking over of existing bank debts by IDFs will release an equivalent volume for fresh lending by banks to infrastructure projects, it added.

"This will also help in overcoming the issue of asset-liability mismatch being faced by banks," it said. The CCEA also approved the capping of the annual guarantee fee payable to the concession authority at 0.05 per cent a year of outstanding debt financed by the IDF NBFC (Non Banking Financial Companies) for the first three years of operation of the IDF NBFC.

With an aim to deal with the issue of asset-liability mismatch being faced by banks, the framework for the IDFs was announced and in October 2012, the Cabinet Committee on Infrastructure (CCI) approved the adoption of a Model Tripartite Agreement (MTA) for the Highways Sector.

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Mahindra Mahindra elevates Pawan Goenka to ED

Sep 23, 2013, 05.32 PM IST

Before this, Goenka was President of Automotive and Farm Equipment sectors, a position he held since April 2010. Goenka has been responsible for the development of several new products including the Scorpio SUV, Mahindra and Mahindra said.

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Mahindra & Mahindra elevates Pawan Goenka to ED

Before this, Goenka was President of Automotive and Farm Equipment sectors, a position he held since April 2010. Goenka has been responsible for the development of several new products including the Scorpio SUV, Mahindra and Mahindra said.

Like this story, share it with millions of investors on M3

Mahindra & Mahindra elevates Pawan Goenka to ED

Before this, Goenka was President of Automotive and Farm Equipment sectors, a position he held since April 2010. Goenka has been responsible for the development of several new products including the Scorpio SUV, Mahindra and Mahindra said.

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Auto-maker Mahindra & Mahindra on Monday said its board has promoted Pawan Goenka as Executive Director of the company for a period of 5 years with effect from today.

"He will now be designated Executive Director and President (Automotive and Farm Equipment sectors)," Mahindra & Mahindra said in a filing to BSE.

Commenting on the development, Mahindra Group Chairman Anand Mahindra said, "Pawan has played an integral role in transforming the Group's automotive product development capabilities, and has provided growth and strategic direction to both automotive and tractor businesses. I am confident he will add tremendous value to the Board by providing fresh insights and invaluable guidance on key issues facing the company."

Before this, Goenka was President of Automotive and Farm Equipment sectors, a position he held since April 2010.

"I am truly honoured and delighted to join the Mahindra Board... I look forward to the future with a greater sense of responsibility, and will strive to contribute my best to meet the long-term aspirations of all stakeholders," Executive Director and President (Automotive and Farm Equipment sectors) Pawan Goenka said.

Goenka has been responsible for the development of several new products including the Scorpio SUV, Mahindra and Mahindra said.

HEALTHCARE: Future of Healthcare

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Bajaj Electricals eyes 25% growth this fiscal

Bajaj Electricals , a leading lighting and household electrical items maker, is eyeing a revenue of Rs 4,200 crore during the current financial year, a top company official said today.

"Last fiscal, the company's revenue was Rs 3,400 crore. This fiscal, we are aiming at a revenue of Rs 4,200 crore, 25 percent higher," company's Chairman and Managing Director Shekhar Bajaj said told reporters on the sidelines of the AGM of Indian Fan Manufacturers Association.

He said out of the three divisions of the company, the consumer durables segment was expected to grow between 20 to 22 percent, lighting segment between 18 to 20 percent and engineering and projects (EPC) arm at 50 percent.

Although the EPC division witnessed a de-growth of 17 percent in the last fiscal, this time the expected growth in the first six months was 60 percent driven by transmission and rural electrification, he said.

By 2016-17, the company was eyeing a revenue of Rs 10,000 crore, Bajaj said.

He said the company was looking at both organic and inorganic growth.

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Coal linkage panel allows Lanco Babandh to ink FSA with CIL

Amid delays by some firms in inking of fuel supply agreements (FSAs) with Coal India , an inter-ministerial panel has allowed Lanco to enter into the pact, condoning delays in achieving milestone for its 660 MW Babandh power project in Odisha.

The Standing Linkage Committee (Long-Term) on Coal after noting that all milestones barring forest clearance for 18 acres could not be achieved, allowed the company to sign the FSA saying it will take effect only after submission of remaining stage II clearance by December 31.

Also read: Coal block auctions likely by Dec-Jan: Govt

"The Committee took note of the fact that all milestones except stage II forest clearance for 18 acres out of 947 acres have been achieved. Out of the 947 acres, more than 90 percent land has been acquired which is free of forest," the Standing Linkage Committee (SLC) said in an official document.

It said there has been substantial progress on meeting the milestone and  "MCL (Mahanadi Coalfields - CIL subsidiary) may verify this and satisfy itself. For the remaining stage II clearance, the party is given time up to December 31, 2013."

The SLC said: "It (Lanco Babandh) may sign FSA which shall take effect only after submission of remaining stage II clearance within the stipulated time December 31, 2013. In view of the above delay in achieving milestones is condoned."

Letter of Assurances for linkages to the power firm was approved in August 2007 for a quantity of 2.83 MT from MCL for unit 1 & 2 for 660 MW capacity.

Earlier this month, during the SLC meeting, the company pleaded that "... only the forest clearance was pending for reasons beyond the control of developer and project is already in advance stage of construction. Therefore the unit may be allowed to sign the FSA subject to the condition that coal supply will only start after obtaining stage II forest clearance."

The Coal Ministry had set a deadline of August 31 for signing of FSAs which could not be met and was extended to September 6. So far, Coal India has entered into fuel supply agreements with 142 power plants. CIL has to sign 173 FSAs for a capacity of 78,000 MW.

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CREDAI alleges cartelisation by cement industry

Realtors' body CREDAI today said cement prices have gone up by Rs 60-70 per bag of 50 kg in the last one week and it is mulling approaching CCI alleging cartelisation by cement producers.

"CREDAI will consider going to CCI seeking intervention against cartel of cement manufacturers," the association said in a statement.

When contacted CREDAI Chairman Lalit Kumar Jain said cement prices have gone up by about Rs 60-70 per bag across the country in last one week. "We feel that there is a cartel. We are considering moving CCI. We are currently taking legal advice," he added.

Also read: Checkout why Jaypee Group is under CCI scanner

"Cement prices have increased from Rs 210 to Rs 275 over the past few days in Pune and indications are that they will go up further by Rs 50 per bag in the near future," Jain said. He said rates have gone up by Rs 60-70 per bag across the country.

"A rise of Rs 50 per cement bag leads to an  increase in cost of construction by approximately Rs 20-25 per sq ft. We are concerned about this sudden price rise," he said. Jain said the increase in cement prices would lead to rise in housing prices. He explained that it is the common man who ultimately bears the burden of such price hikes.

"Considering that buyer sentiment is currently low, the cement price rise defies logic," CREDAI said.

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Mayaram panel on NSEL submits report to FM

The high-level panel on alleged irregularities at NSEL today submitted to the Finance Minister its report which is believed to have pointed out certain
'minor systemic' failures in the functioning of the exchange.

The report details long term measures, Economic Affairs Secretary Arvind Mayaram, who headed the Panel, told reporters here.

Meanwhile, according to sources, the NSEL report has found "minor systematic" failures in the functioning of the exchange.

The panel had met on Friday and finalised the report on National Spot Exchange Ltd - a commodities bourse which is grappling with Rs 5,600 crore payment crisis.

The findings are based on reports of two working groups- Enforcement Directorate and Reserve Bank.

Secretaries from the Corporate Affairs and the Consumer Affairs Ministries, the Revenue Department, and head of Enforcement Directorate, were part of the committee.

The government might consider streamlining the norms for commodities and capital markets, regulated by FMC and Sebi, respectively, to plug potential regulatory gaps, sources said.

The government had last month set up two working groups under this panel, comprising representatives from Sebi, RBI, FMC, Enforcement Directorate, Income Tax Department, Finance Ministry, Corporate Affairs Ministry and Consumer Affairs Ministry, among others.

A part of Jignesh Shah-led Financial Technologies group, NSEL is grappling with a payment crisis for settling dues worth Rs 5,600-crore and had to suspend trading activities on July 31 following a government directive.

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