Daily Excelsior...Business

SPV will be set up for restoration of NHs:Baalu ...........

Essar begins commissioning Vadinar refinery ......

ESIC to launch online facility by 2007 ................

Tax exports of fe-rich iron ore: CII ................

Infosys raises 1.6 bn dlrs from ADS issue

MUMBAI, Nov 21: IT major Infosys Technologies today priced its secondary offering of three crore American Depositary Shares at 53.50 dollar each, taking the total proceeds to over 1.6 billion dollars (Rs 7,193.76 crore).

The ADS issue was priced 3.2 per cent below the company's closing share price of 55.27 dollar at the Nasdaq stock market yesterday.

As part of this offering, 50 lakh ADSs representing equal number of equity shares would be placed with Japanese investors through a Public Offer without Listing (POWL), it added.

The company is sponsoring this ADS issue to increase its stock liquidity in the overseas market to 19 per cent from 14 per cent.

The company would not receive any proceeds of this offering and the entire amount would be distributed to the selling shareholders.

On November 17, the Indian invitation to the offer concluded with 3,477 valid offers for over 8.40 crore equity shares. The unsold shares would be returned to the selling shareholders by December 4.

The combined holdings of all the shareholders who offered their shares in the Indian invitation to offer were 24.61 crore equity shares.

Shares of the company were trading at Rs 2226.50, down 1.18 per cent on the Bombay Stock Exchange. (PTI)

I-flex bags risk analytics suite contract from Peru bank

NEW DELHI, Nov 21: I-flex Solutions Ltd today said its global provider of analytical applications for the financial services industry has bagged an order from Peru's Interbank for supply of its operational risk analytics suite.

Under the agreement, Reveleus Operational Risk will provide Interbank with a comprehensive system to monitor operational risk on a continuous basis for real-time escalation and remediation. Reveleus_ solution will provide the foundation for Basel II regulatory reporting and can be used for economic capital calculations as the bank may require in the future.

''Latin American banks are becoming increasingly aware of the critical importance of managing risk in their daily operations. This customer win is a testament to Reveleus_ suitability for the region and expands i-flex_s presence into new countries in Latin America,'' company's Regional Sales Director (Latin America and Caribbean) Anand Pitre said.

While other Reveleus Risk solutions are currently in use at various Latin American and Caribbean banks, this customer engagement marks the entry of Reveleus as a strategic operational risk solution provider, the company said.

Reveleus CEO S Ramakrishnan said the company expects tangible benefits to flow from the bank’s approach to operational risk as a driver for operational improvement and compliance initiatives.

I-flex Solutions also said it has implemented Reveleus Operational Risk Version at DBS Bank, which enables firm-wide monitoring and management of operational risk in line with Basel II standards.(UNI)

Wine: French, Italians bet big on India

NEW DELHI, Nov 21: The Italians and the French are here, and they have one aim-to change the drinking habits of Indians.

Flying in sommeliers and wine experts, organising wine promotion events and experimenting the western wines with Indian food are some of the things that the French and Italians have in store.

While the French are organising a wine festival, "Try more French wine by the glass" in restaurants across the country by offering discounts on various hit brands, the Italians are organising a ‘gastronomic week’ consisting of the best of Italian wine. Even a guide on Italian wines was recently released here.

"There are certain myths related to wine in general and French wine in particular, that wine is drunk only by the snooty and that our wines are very costly, both are wrong," says Rajiv Singhal, Charge de Mission, Sopexa India, an organisation that promotes French agro products in the country.

Indian wine market is estimated to be growing at a robust 30 per cent per annum and is expected to be more than 5000 crores in less than a decade.

According to Singhal, more than 40 per cent of the Indian market is dominated by the French manufacturers. Italy commands a little over 10 percent, according to the Italian Trade Commission. But Italy hopes to increase its share.

Recently Italy flew in 54 wine producers to India to understand the Indian market better. In a seminar organised by the Italians, Italian wine expert and author, Dr Marco Sabellice, says that Italian wines are better suited to Indian palate, "We have around 30,000 varieties of wines, and I can tell you, there are many that go very well with the Indian food."

Celebrated French Sommelier Daniele Raulet Reynaud who was here to train Indian Sommeliers says that even certain French varieties are well suited for Indian conditions. "There are various wines in France, that I myself have experimented with Indian food, and it works perfectly," says Reynaud.

Reynaud says that goal for wine manufacturers from anywhere in the world should be to give confidence to Indians to follow the ‘culture wine drinking.’

Another reason why wine makers are turning to India is the saturation in the Western and other markets around the world.

"We in France faced a bit of a crisis because of too many wines flooding the marketing, and lack of experimentation by our wine producers to cater to various palates, same was the case with the Australian wines," says Reynaud.

Regarding the high cost of wine in India, experts say that it is because of the high entry costs that importers have to pay. "The customs are more than double the cost of the wine, and unless that comes down, good quality wine will continue to be out of reach of most of the Indians," says Subhash Arora, President, Indian Wine Academy.

Arora who is the also the President of Delhi Wine Club, says that while more and more Indians are taking to wine drinking, there is still a long way to go before an average Indian could taste a Pouilly Fume or a Beaujolias. (PTI)

National biosecurity system need of the hour

BANGALORE, Nov 21: The National Institute of Advanced Studies (NIAS) here has convened a two day meeting from November 23 to discuss the emerging concerns for biosecurity affecting agriculture, environment and human health.

The meeting jointly organised with the M S Swaminathan Research Foundation (Chennai) would discuss the country’s preparedness for ensuring biosecurity besides aspects of biosecurity relating to food and agriculture, human health and in national context.

According to a NIAS document the meeting would convey a set of recommendations for ensuring biohappiness in the country based on scientifically sound and socially relevant agenda for biosecurity in appropriate areas of concern.

The meeting has been convened by NIAS in the backdrop of the recent concern by the National Commission on Farmers (NCF) on the lack of biosecurity system in the country and the need for evolving a National Agricultural Biosecurity System characterised by high professional, public and political credibility.

NCF’s broad outline for a biosecurity system involved goals such as safeguarding the income and livelihood security of farm and fisher families as well as food, health and trade security of the nation. This could be only achieved through effective and integrated surveillance, vigilance, prevention and control mechanisms designed to protect the productivity and safety of crops, farm animals and forest trees, NIAS said.

NCF also called for enhancing national and local level capacity in intiating proactive measures in areas of monitoring, early warning, education, reserach and international cooperation and to introduce an integrated biosecurity package comprising regulatory measures, education and social mobilisation.

The National Bureau of Plant Genetic Resources had been intercepting many alien invasive pests in imported agricultural commodities and this had trigged the NCF to initiate national debate for a biosecurity system to be put in place.

NIAS said biosecurity was a strategic and integrated approach that encompassed policy and regulatory frames which analyse and manage risks in the sectors of food safety, animal life and health and plant life and health, including assocaited environmental risks.

Currently India had no effective system for detecting, reporting and effectively mitigating outbreaks of new diseases or pests in crop plants and animals. Similarly no validated intervention was available for food production, processing and distribution system to react to an international contamination or occurance of a biosecurity threat.

NIAS said biosecurity was of even greater significance to the country since it related to livelihood security and major percentage of population, food, health and trade security of the nation. (UNI)

Biggest US trade misson to India from Nov 28

HOUSTON, Nov 21: US Under Secretary of Commerce for international trade Frank Lavin is leading one of the largest business development missions to India to participate in the India Business Summit, which begins in Mumbai from November 28.

The mission includes 238 business participants representing 186 US companies, according to a Commerce Department statement released yesterday.

"With US export growth to India in excess of 24 per cent in 2006 and sustained annual Indian economic growth of 8 per cent, the time is ripe for American companies to look for business opportunities there," Lavin said.

"The goal of the mission is to position US firms for long-term business success in this fast growing market so we can expand our exports and create more American jobs."

Total US exports to India in 2005 were USD 7.9 billion, an increase of 30 per cent over 2004. Through September 2006, US exports have grown 24.3 per cent over the same period last year.

Following the business summit, most companies will continue on to spin-off business matchmaking missions in Bangalore, Kolkata, Chennai, Hyderabad, Mumbai, and New Delhi.

The US commercial service is arranging market briefings, networking receptions, and one-on-one business appointments with prospective agents, distributors, partners, and end-users for each US company.

The mission stems from a commitment by President George W Bush to elevate the commercial dialogue during his March 2006 visit to India.

"India is now at a transformational time in its economic development and the economic reforms India has made in the last few years have seen an improved business and investment climatev," Lavin said.

"There is much more that can be done and I will use this mission to continue our commercial dialogue with India to knock down barriers to trade and investment."

The trade mission represents a diverse range of industry sectors, with the greatest participation from medical/healthcare companies, information technology companies, energy/power/oil and gas companies, and telecommunications companies.

There are participants from 35 US states, the district of Columbia, and from outside the US within the US, California, Texas, the district of Columbia, Virginia, New Jersey, New York and Pennsylvania have the largest number of participants.

Businesses of all sizes will be participating, but small firms comprise 68 per cent of the mission.

"This delegation promises to be the largest ever US trade mission to India and participants will have access to India’s high-level business, industry, and Government representatives and opportunities to gain insights into the country’s trade and investment climate during strategic breakout sessions," Jagdip Ahluwalia, executive director of the Indo American Chamber of Commerce of Greater Houston (IACCGH) said. (PTI)

SPV will be set up for restoration of NHs:Baalu

CHENNAI, Nov 21: The Union Road Transport and Highways Ministry has decided to set up a Special Purpose Vehicle (SPV) with State Governments for quick restoration of National Highways affected by natural calamities like heavy rainfall and landslides.

The National Highway Authority of India (NHAI) would organise a workshop to work out the modalities for the purpose, a PIB release here said.

The decision was taken in view of the severity of damages caused to NH-34 in West Bengal and NH-66 in Tamil Nadu due to heavy rains and landslides.

Union Shipping, Road Transport and Highways Minister T R Baalu reviewed the immediate restoration of the highways with NHAI authorities and department officials in New Delhi today, the release said.

Largescale damages had been reported in the Tindivanam-Puducherry stretch of nh-66 with specific reference to severely-damaged road at Killiyanoor and on the stretches from Coimbatore-Mettupalayam-Ooty-Karnataka border on NH-67 extension in Tamil Nadu.

The worst affected patches on those stretches, included Marapalam to Kargudi and Mettupalayam to ooty. Heavy landslides due to continuous rain in the area had resulted in diversion of the vehicular traffic to utilise the Mettupalayam-Kothagiri road instead of the Mettupalayam-Ooty road.

Similar damages had also been reported at various places on the stretches from Barasat-Berhampore-Farakka-Raiganj-Dalkola on NH-34 falling in the districts of Nadia, Murshidabad and Malda in West Bengal due to incessant rains for the last two months.

Officials pointed out that the estimated financial requirement for undertaking the repair work on those stretches would be far beyond the normal budgetary allocation earmarked for those kind of calamities, the release added. (UNI)

Essar begins commissioning Vadinar refinery

NEW DELHI, Nov 21: Essar Oil Ltd has begun commissioning its 2.2 billion dollar refinery at Vadinar in Gujarat, with first product expected by the weekend.

"We have begun circulating cold crude to check systems of any fault or leakage. This process will take a couple of days, after which the actual crude oil processing will begin. First product from the refinery is expected by Friday-Saturday," a company source said.

The refinery would initially produce 7.5 million tonnes of petrol, diesel, LPG and kerosene, mainly for export. The 10.5 million tonnes a year refinery would reach its full capacity in March-April 2007.

Essar, which restarted work on the refinery in March last year, would raise the refinery capacity to 12 million tonnes per annum in a years time and further to 16 mtpa in another year. The capacity will then be doubled by replicating the existing units.

The company has already imported four cargoes totaling to 4 million barrels of crude oil and the fifth cargo of 2 million barrels was expected on November 25-26. Three more cargoes have been ordered.

"We are initially processing sweet crude and are importing cargoes from Algeria, Yeman, Nigeria and Middle-East," the source said.

While 35-40 per cent of the products would be exported, the refinery would also feed products to the company’s 900 retail outlets. By March the number of outlets would go up to 2000.

Essar, which restarted work on the refinery in March last year, had originally scheduled to begin commercial operations in April 2007 but the company had speeded up work for completion of the project before the scheduled date.

Sources said Essar oil’s refinery is configured in a manner that allows it the flexibility to process diverse varieties and qualities of crude. This gives the company a significant advantage of flexibility in refining and purchase in international markets.

Like any other chemical plant, Essar oil’s 10.5 million tonnes per annum refinery is also expected to be commissioned in phases, with primary units and a few secondary units going on stream this week and fluid catalytic cracker and a diesel hydro desulfurizer expected to be commissioned in a couple of months thereafter.

Initially, the crude distillation unit, the vacuum distillation unit, Sulphur gas unit, Naphtha hydrotreater, catalytic cracker and visbreaker would be commissioned, sources said.

The Fluid Catalytic Cracer Unit (FCCU) and diesel hydro de-sulphurisation plant have been configured to meet Euro-III and Euro-IV standards.

Essar’s refinery is a fully integrated complex with a dedicated 120-mw power plant, port and terminal facilities including a single bayou mooring capable of handling vessels up to 350,00 dwt with a capacity of 25 million tonnes a year.

The refinery tankages with interconnecting pipelines have a capacity of 20 million tonnes per annum capacity, while marine product dispatch facility can handle 12 million tonnes per annum.

The company has also set up a dedicated railway sliding and truck loading facility to feed the domestic market. (PTI)

ESIC to launch online facility by 2007

LUDHIANA, Nov 21: Aiming to make it easier for the employers to comply with the statutory requirements of the ESI Schemes, Employees State Insurance Corporation (ESIC) has decided to provide online facility and computerise all its offices in Punjab by 2007.

"We will be computerising all our offices in Punjab during next year, which will facilitate online submission of statutory forms and depositing of ESIC contribution. For this purpose we have earmarked Rs 80 lakh," ESIC Regional Director G C Gena said here.

With the launch of this online facility, the employers would no longer require to visit our offices for submitting forms and deposits, he said.

ESIC has also launched an amnesty scheme for those employers against whom it had filed cases for not depositing the contribution amount.

"We are urging the employers to take benefit of Amnesty Scheme, under which the cases against employers would be withdrawn subject to the fulfillment of several conditions," he said adding that the scheme was valid till January 31, 2007.

The corporation had filed cases against nearly 2000 establishments in Punjab, including 971 from here, for not depositing the ESI contribution.

Gena said, Punjab has about 4.85 lakh ESIC members and the corporation receives Rs 70 crore per annum as ESI contribution from the state. (PTI)

Tax exports of fe-rich iron ore: CII

NEW DELHI, Nov 21: Industry body CII has demanded levying duty on exports of iron ore with high ‘fe’ content, while pointing out the need for investment of at least Rs 20,000 crore to modernise mining operations and create benefaction capacity worth 200 million tonnes.

"It is recommended that an export duty be levied on exports of iron ore lump with fe content of 65 per cent and above and the existing system of canalisation and export licensing should be discontinued," the Confederation of Indian Industry said in a study on growth of the mineral sector.

After remaining stagnant at around 35 million tonnes during 1991-2000, exports of iron ore from the country have grown by 78 mt during the past four years, primarily to China.

Arguing that a judicious balance between exports and domestic supply of ore was imperative, CII suggested that long-term export supply of Iron ore be confined to a maximum of five-year contracts and the duration should be reviewed periodically.

"Government would encourage investments in creation of an additional modern mining and benefaction capacity of 200 mt and the size of investment will be arounf Rs 20,000 crore," the CII said.

It said exports would be around 100 mt by 2019-20 and pointed out that "in terms of future policy, exports of iron ore, especially high-grade lumps, would be leveraged for imports of coking coal or for investment in India."

Advocating for continuation of captive mining leases for the private steelmakers, the industry body pointed out that it was necessary that investment plans be put in place for idle mining leases.

"State Governments should recommend renewal of existing leases only against credible mining investment plans in a specified period," the CII said.

It pointed out that the Government should lay down priorities and guidelines for the State Governments to recommend fresh mining leases, having regard to the entrepreneur’s mining investment plans along with technical and financial capabilities.

In order to encourage investments in adding value to iron ore fines, the Government should encourage scientific mining and economies of scale through consortia of small users and by prescribing a minimum economic size for mines, the industry body suggested.

It said that environmental and forest clearances should be granted within a pre-specified timeframe.

Currently the in-situ reserves of relatively rich Iron ore in India are 11.43 billion tonnes of Haematite and 10.68 billion tonnes of Magnetite ores.

Though the reserves of Haematite ore appear to be large, high-grade lumpy reserves constitute only 8.7 per cent of the total reserves. (PTI)