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Andhra Bank's profitability NEW DELHI, Dec 13: Andhra Bank today said the hike in Cash Reserve Ratio, the percentage of deposits banks keep with the Reserve Bank, is likely to marginally .. .........more L&T Infotech acquires US-based GDA Tech MUMBAI, Dec 13: Larsen and Toubro Infotech (L&T Infotech) has signed an agreement to acquire GDA Technologies and .......more OVL talks with Shell for sale of 10-15 pc stake NEW DELHI, Dec 13: ONGC Videsh Ltd is in talks with Shell to find out whether the world's fourth largest oil company is interested in acquiring 10-15 per cent stake in its Nigerian blocks.......more India Inc becomes 2nd largest borrower in Asia Pacific NEW DELHI, Dec 13: It’s not only the big mergers and acquisitions like Tata Steel’s over 11 billion ......more |
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Centre’s gross mkt borrowings
at Rs 1,48,000 cr till Dec 8 NEW DELHI, Dec 13: The Centre has mobilised Rs 1,48,000 crore till December 8, which is 77.16 per cent of the budgeted gross market borrowing Rs 1,91,........more Cement production expected to touch 197 million tonnes by 08-09 NEW DELHI, Dec 13: The cement production in the country is expected to touch 197 million ......more Raymond to set up sheet metal components unit NEW DELHI, Dec 13: Raymond Ltd today said it has entered into an equal joint venture with Ring Plus Aqua Ltd (RPAL), a subsidiary of US-based AJ Rose Manufacturing Company......more RIL says to double output in KG basin gas field at $5.2 bn NEW DELHI, Dec 13: Reliance Industries today said it has secured approval for doubling output from its gas field in KG basin at an enhanced investment of 5.2 ..........more |
Hike in CRR may marginally hit Andhra Bank's profitability NEW DELHI, Dec 13: Andhra Bank today said the hike in Cash Reserve Ratio, the percentage of deposits banks keep with the Reserve Bank, is likely to marginally hit the Hyderabad-based bank's profitability. "Rise in CRR would take a marginal hit on its net profit, which translates to Rs 2.8 crore for the fiscal," Andhra Bank CMD K Ramakrishanan told reporters here. The bank would have to transfer an additional Rs 300 crore after the RBI decided to hike CRR by 0.5 per cent to 5.5 per cent last week, he said. On raising resources, he said, the bank has headroom to raise Rs 1,400-1,500 crore through Tier II capital. (PTI) |
L&T Infotech acquires US-based GDA Tech MUMBAI, Dec 13: Larsen and Toubro Infotech (L&T Infotech) has signed an agreement to acquire GDA Technologies and all its design centers in the US and India. All the three GDA founders would in the L&T Infotech management team and would help drive the product engineering service business to the next level, Larsen and Toubro informed the Bombay Stock Exchange. L&T infotech, subsidiary of Larsen and Toubro signed the definitive agreement regarding the acquisition today. "GDA’s electronic design capabilities are a key building block in our roadmap towards creating end-to-end solution delivery capability for our global customer base. Such acquisitions are an integral part of our strategic plan to strengthen our presence in the IT consulting and services space," L&T Infotech Chairman A M Naik said. However, the company did not disclose the financial details of the deal. GDA, a privately held electronic design firm the US, has over 350 employees in America and India. It has over 100 customers in US, Japan and India. (PTI) |
OVL talks with Shell for sale of 10-15 pc stake NEW DELHI, Dec 13: ONGC Videsh Ltd is in talks with Shell to find out whether the world's fourth largest oil company is interested in acquiring 10-15 per cent stake in its Nigerian blocks. "We are talking to Shell because they have evinced interest for participating in the Nigerian blocks and their team was here," ONGC's Chairman and Managing Director R S Sharma told reporters. On oil shipment from the Sakhalin fields in Russia, he said the second consignment of crude was expected in the next 10 days. "The cargo would be about the same quantity as the first one," Sharma said. The first shipment of 90,000 tonnes had arrived in India on December 2. (PTI) |
India Inc becomes 2nd largest borrower in Asia Pacific NEW DELHI, Dec 13: It’s not only the big mergers and acquisitions like Tata Steel’s over 11 billion dollars bid for London-based Corus for which India Inc is borrowing money-corporates are also going for a kill with huge loans to fund their various projects. India has become the second biggest borrower in Asia Pacific by borrowing over 3.7 billion dollars for project financing since the beginning of 2006, taking a big jump from its 10th position last year. Australia continues to lead the table in the region by raising 8.6 billion dollars so far this year, as part of its project financing exercise, data compiled by global financial information provider Dealogic shows. The overall Asia Pacific project finance volume has rose to a record high of 25.7 billion dollars in 2006 YTD, up 24 per cent from 20.8 billion dollars in the same period last year. Indian companies have executed over 10 project finance deals in 2006, while its loan volumes used to be non-extinct till a couple of years ago. The project financing by Indian companies have more than doubled in the past one year. Project financing is used to fund very large capital intensive projects, with long gestation period, where the lenders rely on the assets created for the project as security and the cash flow generated by the project as source of funds for repaying their dues. Raising loans have become a preferred instrument for the corporates to fund their various activities-be it big projects or costly M&A deals. (PTI) |
Centre’s gross mkt borrowings at Rs 1,48,000 cr till Dec 8 NEW DELHI, Dec 13: The Centre has mobilised Rs 1,48,000 crore till December 8, which is 77.16 per cent of the budgeted gross market borrowing Rs 1,91,856 crore for 2006-07. The net market borrowings, after redemption of Rs 68,040 crore, stood at Rs 79,960 crore during the period under review, 72.5 per cent of the estimated Rs 1,10,278 crore for the entire fiscal, according to a report by PNB Gilts. Amid liquidity tightening, the government raised Rs 9,000 crore through 8-year (Rs 5,000 cr) and 30-year papers (Rs 4,000 cr). Eight state governments are scheduled to mobilise Rs 1,963 crore tomorrow from market through sale of 10-year State Development Loans. RBI’s move to hike CRR by 50 basis points to contain inflation and moderate growing demand for credit, and concerns on advance tax outflows in the coming weeks would squeeze liquidity, putting pressure in Government securities yields, PNB Gilts said on the bond market outlook. (PTI) |
Cement production expected to touch 197 million tonnes by 08-09 NEW DELHI, Dec 13: The cement production in the country is expected to touch 197 million tonnes in 2008-09 as against 148 tonnes in 2005-06 and the prices have stabilised around 205 per bag in October 2006. Answering questions of Mr R M Majitha and Mr Ram Jethmalani, Minister of State for Commerce and Industry, Ashwin Kumar in a written reply said that the cement production had increased gradually from 123 tonnes in 2003-04 to 133.57 tonnes in 2004-05. The average cement prices which was at Rs 157 had stabilised since May 2006. To a queston of Mr B K Hari Prasad, the minister said cement was a decontrolled commodity and its prices were governed by economic factors like demand, supply, cost of raw materials, fuel and other inputs, production and distribution costs. Asked if the Cement Manufacturers Association had committed to a final retail price of Rs 147 per bag to the consumer in April 2006, the minister replied in the negative and said they were giving a discount of five per cent on the prevailing prices for the Central Government Deparments. They had promised to increase the production to ensure against profiteering by retailers. On the issue of iron ore production in the country, minister of State for Commerce Mr Jairam Ramesh said ore production in the country was surplus to the domestic demand and was exported through ports closer to centres of production depending on the infrastructure. China was the biggest importer of iron in the country with 74 million tonnes out total export of 89 million tonnes. Japan, South Korea, Taiwan, were the ore importing countries and Asia and Europe countries accounted for a mere 2.1 million tonnes, he said. (UNI) |
Raymond to set up sheet metal components unit NEW DELHI, Dec 13: Raymond Ltd today said it has entered into an equal joint venture with Ring Plus Aqua Ltd (RPAL), a subsidiary of US-based AJ Rose Manufacturing Company, for setting up sheet metal components manufacturing facility in India at Rs 16.6 crore.
RPAL is engaged in manufacturing and marketing of starter ring gears, integral shaft bearings, flexplates and sheet metal pulleys at its plant situated at Maharashtra. AJ Rose is a premium sheet metal component manufacturer. It supplies different kinds of pulleys, precision stampings, water pump components to the automobile manufacturers, through its manufacturing units based in Avon and Cleveland, Ohio. (UNI) |
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RIL says to double output in KG basin gas field at $5.2 bn NEW DELHI, Dec 13: Reliance Industries today said it has secured approval for doubling output from its gas field in KG basin at an enhanced investment of 5.2 billon dollar. "The Directorate General of Hydrocarbons approved addendum to the initial development plan for the deepwater Block KG-DWN-98/3 (KG-D6). The capital expenditure for initial phase of development to produce 80 mmscmd of gas is 5.2 billion dollar," RIL said in a statement. Originally, the company had planned to invest 2.47 billion dollar to produce 40 mmscmd gas. However, with rig prices going up and more reserves being found in the block the company raised the capex and the planned output. Reliance will invest 5.2 billion dollars in Phase-I of the development involving drilling of 22 wells. Together with the Phase-II committment of 28 additional wells, the total project cost would be 8.84 billion dollars. "The development plan envisages commencement of delivery of first gas by second half of 2008-09," the statement said. The block KG-D6 in Krishna Godavari basin in the Bay of Bengal was awarded to RIL and NIKO Resources of Canada under NELP-I bidding round. RIL, as operator holds 90 per cent in the block and NIKO the remaining 10 per cent. (PTI) |
Wireless segment adds 6.8 mln subscribers in Nov ‘06 . NEW DELHI, Dec 13: The country’s wireless segment added 6.8 million subscribers during November 2006, the highest ever growth in a single month. At the end of November 2006, total wireless (GSM, CDMA, WLL-F) subsribers were 143.02 million. The fixed line subscriber-base registered a negative growth of 0.05 million resulting in net addition of 6.75 million subscribers as compared to 6.52 million during October. It was 40.51 million at the end of November, a TRAI statement said today. The gross telephony subscribers reached 183.53 million at the end of the month as compared to 176.78 million in October. The overall tele-density reached 16.60 as compared to 16 at the end of October. The tele-density in November 2005 was 11 and "thus there is steep growth in tele-density in previous 12 months (50 per cent)". The net addition of wireless and fixed line subscribers in the first eight months of the FY 2006-07 is 43.21 million, which is almost twice as compared to the addition 21.52 million in the corresponding period of the last fiscal. At the end of November, total braodband connections in the country reached two million, adding 0.08 million subscribers. (UNI) |
Flower growers skeptical about CII employment projection. NEW DELHI, Dec 13: Floriculturists have expressed doubts about employment generation figure projected by leading industry association Confederation of Indian Industry (CII) for the sector. A CII-study released by Planning Commission Deputy Chairman Montek Singh Ahluwalia said "average employment generation per hectare of floriculture is 7,295". Based on this, the study has projected future employment generation in the 11th Plan period in the sector and estimated 15.22 lakh people to be employed by 2012-13 if the area under cultivation increases to 209 hectare from the present level of 131 hectare. "However, the figure is in terms of mandays," a CII official clarified. Floriculturists, on the other hand, do not buy the CII figure which was submitted to the Planning Commission as the Plan panel is soon going to finalise the 11th Plan. The Approach Paper on the Plan was released last week during the National Development Council meet. Flower exporter Kaushlendra Agarwal of Siam Floritech (India) said, "There could be hardly one lakh people in the floriculture sector who are directly involved and the estimated projection by CII doesn't seem possible. And even if you count in terms of mandays, it would not be so big." It is, however, very much possible to substantially increase the level of employment, provided government policies facilitate development of floriculture in the country, said Agarwal who has set up units in north-east. (PTI) Prices rule steady in thin trading NEW DELHI, Dec 13: There was not much activity in the wholesale chemical market today with prices, after moving in a tight range, closed around previous levels. Arrivals and offtake too remained negligible and volume of business was small. Following were today’s quotations: Ammonia bicarb (25 kg) 310 Ammonium chloride (50 kg) 750-1250, acetic acid (1 kg) 42, boric acid technical (50 kg) 2,900-3,050, borex granular (50 kg) 1300-1400. Caustic soda flake (50 kg) 1,260 citric acid (50 kg) (China) 2,400-2,600 citric acid deshi (50 kg) 2,500-2,900, camphor slab (1 kg) 165-170, camphor powder (1 kg) 155, glycerine (1 kg) 57-59, hexamine (1 kg) 78, hydrogen peroxide (1 kg) 31-32, mercury (34.5 kg) 31,500, menthol bold crystal (per kg) 820, menthol flake (1 kg) 775 and Mentha oil (1 kg) 645. (PTI) |
Govt defends tenure employment in ONGC NEW DELHI, Dec 13: Petroleum Minister Murli Deora today defended the practice of employing field operators for drilling operations of ONGC on a tenure basis, saying it was not possible to recruit all the employees on a regular basis and was also in tune with the Corporation’s policy in changed business scenario. Replying to a string of supplementaries on the issue, Mr Deora told the Rajya Sabha that of the 34,000 employees of ONGC, only 600 amounting to two per cent are tenure-based. The minister said The Recruitment and Promotion Regulation, 1980 of ONGC has a provision for filling up posts by methods, which may be decided by the Coprporation. "The Board of Directors has approved the policy of engagement of employees on a tenure basis. Even the Gujarat High Court has upheld it," he told the House. Mr Deora said tenure-based engagements are not against regular posts, but are made according to work requirements, nature of job and required physical standards. Also, the labour unions had been apprised of the rationale and need for the tenure-based engagements and the policy of ONGC in the changed business scenario, he said. The minister further defended the practice by saying that tenure-based employees enjoy decent salary and emoluments. Mr Deora informed that tenure-based employees enjoy almost ‘pucca’ jobs with an initial employment of four years, extendable by four years for a maximum period of 12 years. Not convinced from the minister’s reply, Mr Tapan Kumar Sen (CPM) said such an arrangement might create a situation leading to strike in ONGC, a ‘Navratna’ company. "BPCL has already served a notice for a three-day strike this month. Similar situation may be a distinct possibility in ONGC," he apprehended. Mr. Jayantilal Barot (BJP) said ONGC operations had adversely affected agricultural land in Gujarat, and demanded employment for at least one member of 700-800 affected families. (UNI) |
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