IOC gets shareholders nod for BRPL merger with itself...........

Reliance to get 3.6 mmscmd gas from PMT fields........

SEBI seeks clarification from Reliance Infratel, 24 others........

Govt issues new telecom licenses; competition to pare tariffs....

Honda steering clear of ultra-cheap cars: president

TOKYO, Feb 27: Honda Motor is staying out of the race to develop ultra-cheap cars, hoping motorists in fast-growing markets like India will pay more for safer, greener vehicles, its president said today.

India’s Tata last month unveiled a USD 2,500 car, the world’s cheapest, which is set to hit the roads there by October. French-Japanese partners Renault and Nissan aim to launch a similarly priced vehicle by 2010.

"Honda will not make cars at such a low price," said Takeo Fukui, president and chief executive of Japan’s second-largest automaker.

"I don’t think our Indian customers buy cars that are cheaper but at the same time poor in quality," he told a press conference.

"Whether it is the Indian market or the Chinese market, I believe that state-of-the-art safety and environmentally friendly technologies are necessary for our products," he said.

Tata says its new "Nano" cars are safe, affordable and meet emission requirements in India and abroad.

But environmentalists fear they will jam up India’s already clogged roads even further and add to choking pollution.

Analysts said the era of ultra-cheap cars will spur the creation of a vast new market segment in India, a nation of 1.1 billion people, where the auto sector is already booming amid rapid economic growth.

"In India, there will be competition between motorcycles and four-wheel vehicles, because India is a hot country and motorcycles don’t need to use air-conditioners," said Fukui. "As for four-wheel vehicles, the battle will be tough," he added.(AGENCIES)

IOC gets shareholders nod for BRPL merger with itself

MUMBAI, Feb 27: The country’s largest oil firm, Indian Oil Corporation, today said the shareholders have approved the merger of its subsidiary Bongaigaon Refinery and Petrochemicals with itself.

The Scheme of Amalgamation of merger of BRPL with IOC was approved by shareholders, secured creditors and unsecured creditors during their respective meetings held on February 22.

In a filing to the Bombay Stock Exchange, the firm said meetings were convened as per the the orders of the Ministry of Corporate Affairs, which is the competent authority to approve amalgamation of government companies.

Earlier in November 2006, the Board of Directors of IOC had approved the merger with BRPL by recommending a swap of four equity shares of Rs 10 each of IOC for every 37 equity shares of the same value of BRPL.

Shares of the company were trading at Rs 566.45, up 2.82 per cent on the BSE. (PTI)

Reliance to get 3.6 mmscmd gas from PMT fields

NEW DELHI, Feb 27: After protests lodged by Reliance Industries, the Petroleum Ministry has decided to restore gas supplies to its petrochemical plants from Panna/Mukta and Tapti fields, but other consumers may not get such preferential treatment.

The Ministry, which had in December 2007 cancelled almost all contracts for sale of gas produced from PMT fields and asked state-run GAIL to sell it to critical power and fertiliser sectors, has decided to restore 3.6 million cubic meters of gas per day to RIL’s petrochemical plants, government sources said.

Of the 17 mmscmd gas produced by PMT joint venture of RIL-ONGC-BG, GAIL may get 3 mmscmd for its LPG fractionators and petrochemical units, while Gujarat Gas’ allocation may be curtailed to 2.1 mmscmd from earlier 3.05 mmscmd.

Torrent Power and Rajasthan Rajya Vidyut Nigam Ltd, who too had protested against the ministry’s decision, would also see restoration of 0.9 and 1.5 mmscmd gas allocation. The rest would be given to power and fertiliser sectors, they said.

Industry sources said small consumers in Gujarat, who had contracted PMT gas supplies from Gujarat Gas, would be the worst hit by the ministry’s decision.

With curtailment in its supplies, Gujarat Gas would limit supplies to city gas projects in the state. This may force some industries to run their captive power units on expensive liquid fuels in the absence of connectivity with power grid.

Gujarat Chief Minister Narendra Modi has already taken up the issue with Prime Minister Manmohan Singh, but unlike Reliance whose protests letters got supplies restored, his request may not find favour, sources said.

The Petroleum Ministry, which had in 2005 given the PMT joint venture freedom to market gas, in a surprise move in December 2007 decided to divert all of PMT gas to GAIL, barring quantities committed to Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL), for sale at higher price of 5.7 dollars per million British thermal unit (mBtu).

The biggest beneficiary of the decision would be GAIL, which previously did not receive any gas for its units from PMT.

The ministry’s decision had also met with protest from Torrent Power which feared that its 12-year gas supply contract with ONGC for 0.9 mmscmd may not be honoured.

Panna/Mukta and Tapti fields, off the west coast in the Arabian Sea, are jointly operated by RIL, British Gas and Oil and Natural Gas Corp.

RIL-BG-ONGC had entered into contracts for sale of the gas they produced to various units including their affiliates. All these contracts were cancelled in December 2007 but some like supplies to RIL’s petrochemicals plant at Hazira and its subsidiary IPCL plants at Gandhar and Vadodara have been restored. (PTI)

SEBI seeks clarification from Reliance Infratel, 24 others

MUMBAI, Feb 27: The Securities and Exchange Board of India has sought clarifications from lead managers of proposed IPOs of 25 firms, including Reliance Infratel, JSW Energy and Oil India, that plan to raise money through share sale.

According to the latest processing status of draft offer documents filed with SEBI on or after April 1, 2007, clarifications are awaited from lead managers in relation to the draft offer document of 25 firms.

These 25 firms include Reliance Infratel, Cox and Kings (India), JSW Energy, Oil India Ltd, Mahindra Holidays & Resorts and National Hydroelectric Power Corporation.

In terms of the Disclosure and Investor Protection Guidelines, 2000, SEBI may issue observations on a draft offer document filed with it within 30 days from the date of receipt of such draft offer document.

But it may seek any additional information or clarification in relation to the draft offer document from the merchant bankers and issue such observations within 15 days from the date of receipt of satisfactory reply.

Anil Ambani group’s tower business subsidiary Reliance Infratel had filed the draft prospectus with SEBI on February 4 for entering the capital market with a public issue of 8.91 crore equity shares.

JSW Energy, part of the Sajjan Jindal-led JSW group, also filed draft documents with the regulator for its maiden public issue of over 6.32 crore shares of Rs 10 each.

State-run National Hydroelectric Power Corp plans to sell 13.6 per cent of the company’s equity to raise up to Rs 3,000 crore.

Clarifications were also sought in eight cases related to rights issue of CHL Limited, Damodar Threads, Dhandapani Finance, GE Capital Transportation Financial Services, JK Tyres and Industries, The Tengpani Tea Co, United Breweries and Oudh Sugar Mills. (PTI)

Govt issues new telecom licenses;
competition to pare tariffs

NEW DELHI, Feb 27: The Government today started issuing telecom licenses to new players, beginning with Videocon-controlled Datacom Solutions, in a move that will spice up competition in the GSM mobile telephony space.

A total of 22 licenses would be given away today to three new players, including permits for 19 circles to Datacom, according to senior officials in the Department of Telecom.

Birla’s Idea Cellular would get license for one circle in Punjab and Swan Telecom for the Delhi and Mumbai circles.

A total of 120 licenses would be distributed among nine companies, including Unitech, Spice, Shyam Telelink and others that were issued Letters of Intent on January 10, this year.

Asked when the exercise would be completed, officials said all agreements with the nine companies would be inked by this weekend.

Subsequently, these firms would have to apply for spectrum (radio frequency) separately to start rolling out network in their respective circles.

The entry of new players is bound to increase competition in the GSM mobile segment and tariffs may fall in the coming months. DoT has worked out that entry of 5-6 new players would result in fall in tariffs by at least 50 per cent from the current level.

Officials said Communications and IT Minister A Raja wants to, in fact, bring local mobile call tariffs to 25 paise a minute and domestic long-distance call rates to 50 paise. This will be possible only through increased competition. (PTI)