21oct2011182638_info-spectrum - 21st oct 2011

IN FOCUS "Nothing is more hopeless than a scheme of merriment." Johnson, Samuel.

Pranab says to make "strenuous efforts" to meet FY12 fisc gap aim

India's gross tax collections rose 23% on year at Rs.2.57 trn. While indirect tax mop-up in Apr-Sep rose 20.7% to Rs.1.686 trn, direct tax collections saw a 7.2% on year rise to Rs.1.948 trn. "Recent developments relating to economic growth like moderate GDP growth (expected to be below 8%), rising inflation, costlier credit, sliding industrial output, Eurozone uncertainties, etc may affect revenue collection in remaining months of the current financial year and are a matter of concern" a government report ahead of the Economic Editors' Conference said. The government also indicated that its Budget aim to keep fiscal deficit under 4.6% of GDP in the current financial could be under strain and it will have to make "strenuous efforts" to meet the target. "With the crude prices remaining where they are, it will be a great challenge to maintain the fiscal deficit numbers at 4.6% this year; however, we will make strenuous attempts to keep the...numbers" Finance Minister Mr. Mukherjee said.

Public procurement policy, Companies Bill likely in winter session

The government is likely to introduce the public procurement policy and the Companies Bill in the winter session of Parliament, Veerappa Moily, corporate affairs minister, said. "Companies Bill has gone to the cabinet," Moily said at a conference on corporate governance and company law organised by Indian Chamber of Commerce here. "Maybe in the next cabinet, it will be approved. I would like to see it passed in the first half of the winter session of Parliament." "Public procurement policy is being finalised...bill has to be introduced by Dec 2011," he said. The minister said the government's procurement was in the tune of Rs.12,000 bn annually and the bill will help reduce corruption in the system. "This (public procurement bill) will reduce at least 50% of the corruption," Moily said.

Japan government trims economic outlook; aims to launch key policy council

The Japanese government cut its view of the economy in Oct, saying in its monthly economic report released that the pace of recovery from the Mar disaster is losing steam, as the global slowdown drags on exports and production while the strong yen and energy constraints continue to cloud the outlook. "The Japanese economy is still picking up, although the pace of recovery is decelerating, as difficulties due to the Great East Japan Earthquake persist," the Cabinet Office said in the report. Tokyo lowered its assessment of exports, industrial production & personal consumption, and said that the adverse effects of deflation still threaten the economy. Also, Japan's economy minister said the government hopes to hold this month an inaugural meeting of a new national strategy council, which brings together key ministers, the Bank of Japan governor and the head of the biggest business lobby to compile a badly needed growth strategy. The council is touted as a key body to tackle a range of policies from economic to diplomatic issues, and looks similar to the once-powerful Council on Economic & Fiscal Policy used by past governments to break vested interests.

Spains rating cut two notches by Moodys, S&P downgrades Egypt a notch

MOODYS Investors Service cut Spains credit rating by two notches as Europes debt crisis threatens to engulf the nation. The credit rating agency reduced its ranking to its 5th highest investment grade, cutting it by two levels to A1 from AA2, with the outlook remaining negative. Standard & Poors downgraded Spain to its 4th highest investment grade, and Fitch Ratings cut it to the same level on Oct 7,, the day it also downgraded Italy. Moodys is maintaining a negative outlook on Spains rating to reflect the downside risks from a potential further escalation of the euro-area crisis, the agency said. The company cited the continued vulnerability of Spain to market stress that is driving up the cost of borrowing, as well as weaker growth prospects. Meanwhile, Standard & Poor's Ratings Services downgraded Egypt's speculative-grade debt rating a notch, citing the continuing risk high government debt and political turmoil are posing to the country's economy. S&P now rates Egypt at double-B minus, three steps below investment-grade. The firm also lowered its long-term local currency rating two notches, also to double-B minus. Its outlook is negative. "Risks to macroeconomic stability have risen during the transition period for Egyptian political reform, which we expect to evolve over the next two years," analyst Trevor Cullinan said. The ratings service cited legitimate and pressing public expectations for improved living standards that will likely prompt the government to continue to spend, adding to budget deficits and inflation risks.

Oct 21, 2011 Weekly Indicators

Indicators Current Last Week

Sensex 16,786 17,083

Nifty 5,050 5,132

Food Inflation 10.60% 9.32%

Exchange Rates Currency Current Last Week

US$1 Rs.50.0670 Rs.49.0675

1 Rs. 69.0350 Rs. 67.7248

JP 100 Rs. 65.26 Rs. 63.78

1 Rs. 79.1559 Rs. 77.4187

Global Economic and Corporate News

Citi to pay $285 mn over SEC charges Citigroup Inc. agreed to pay a $285 mn fine to settle civil charges brought by the Securities and Exchange Commission that it sold securities backed by mortgages that it simultaneously bet against.

Blackstone takes minority stake in Leica Camera Germany's Leica Camera AG said investment funds advised by Blackstone Group L.P. have bought a 43.9% stake in the German camera maker from majority shareholder ACM Projektentwicklung GmbH. Financial details weren't disclosed.

Abbott to split into two new companies Abbott Laboratories plans to split into two publicly traded companies, separating its medical products and research-based pharmaceuticals operations.

Sony to launch new handheld in America Feb. 22 Sony Corp. will release its next-generation handheld videogame console next February as it ramps up competition against the growing number of smartphones that play increasingly advanced games, a senior company official said.

Carlyle buys Spanish Telecable for 400 mn euro The Carlyle Group said it had agreed to buy an 85% stake in Spanish cable operator Telecable in a deal valuing the company at EUR400 mn.

Telstra investors approve Australian NBN deal Telstra Corp. shareholders voted for the company to participate in the federal government's plan to roll out high speed internet around the country in a deal worth 11 bn Australian dollars (US$11.2 bn).

Apple says iPhone 4S sales top 4 mn Apple Inc. said that it sold more than 4 mn units of the iPhone 4S in the three days since the device first went on sale.

Tredegar to buy Terphane for $188 mn Tredegar Corp. greed to buy Terphane Holdings LLC, a maker of specialty polyester films, from the international investment firm Vision Capital LLP for $188 mn, allowing it to expand into Latin America.

Kinder Morgan buying El Paso in $38 bn deal Kinder Morgan Inc. said it will create the largest natural-gas pipeline system in the U.S. by buying El Paso Corp. in a $38 bn cash, stock and warrant deal that includes $17 bn in debt.

Airbus confirms China Eastern orders 15 A330s European commercial aircraft builder Airbus confirmed it has received an order from China Eastern Airlines Corp. for 15 of its wide-bodied A330 jets.

HSBC to shut UAE retail brokerage services U.K.-based banking giant HSBC Holdings PLC will close its retail brokerage business in the United Arab Emirates from Dec and instead focus on institutional clients, a senior bank executive said.

Nishita Shah Parsekar [email protected]

Pleaserefertoimportantdisclosuresattheendofthereport ForPrivateCirculationOnly. SushilFinancialServicesPrivateLimited Member:BSEL,SEBIRegn.No.INB/F010982338|NSEIL,SEBIRegn.No.INB/F230607435. Regd.Office:12,HomjiStreet,Fort,Mumbai400001. Phone:+912240936000Fax:+912222665758Email:[email protected]

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Weekly Newsletter 2

INDEX

1. Indias Data Watch 03-06

2. Economy 07-14

3. Infrastructure 15-24

4. Sectors 25-52

A. IT & ITeS 25-28

B. Pharma & Healthcare 29-30

C. Telecom 31-34

D. Banking & Financial Services 35-38

E. Steel, Metals & Minels 39-42

F. Auto & Auto Ancillaries 43-45

G. Miscellaneous 46-52

5. Earnings 53-54

6. IPO Watch 55-55

7. Mergers & Accquisition 56-56

8. Ratings 57-63

8. Global Economy & Business 64-71

A. Global Economy 64-67

B. Global Business 69-71


Weekly Newsletter 3

INDIAS DATA WATCH India Apr-Sep finished steel output up 9.3%

India's finished steel production rose 9.3% on year in Apr-Sep even as real consumption grew by a lacklustre 1.8%, Joint Plant Committee said. Finished steel production available for sale in Apr-Sep was 34.80 mn tn compared with real consumption of 33.70 mn tn, the committee said. Finished steel exports in Apr-Sep rose 46.1% to 2.15 mn tn, while imports fell 36.4% to 2.86 mn tn.

The Joint Plant Committee of the steel ministry detailed Apr-Sep finished steel production, in mn tn, as follows:

Apr-Sep

2011-12

Apr-Sep

2010-11

Yr-on-Yr

% change

Total production for sale 34.80 31.83 9.3

Imports 2.86 4.49 (-)36.4

Exports 2.15 1.47 46.1

Availability 35.51 34.85 1.9

Variation in stock (-)0.24 (-)0.05 -

Apparent consumption 35.75 34.89 2.5

Double counting 2.05 1.79 14.4

Real consumption 33.70 33.10 1.8

India Apr-Sep gem, jewellery exports Rs.1.02 trn, up 16%

India's gem and jewellery exports in the first half of current financial year that began Mar 1 rose 16% on year to Rs.1.02 trn, according to provisional data published by Gem & Jewellery Export Promotion Council. In dollar terms, Apr-Sep exports were up 17% on year at $22.58 bn, GJEPC said. The data doesn't include figures from Visakhapatnam special economic zone, Cochin Air Cargo and Mumbai Foreign Post Office, the Council said. Gold jewellery exports from domestic tariff area rose 17% on year to Rs.51.91 bn, while the same from Special Economic Zones were up 43% at Rs.304.88 bn. Overall, gold jewellery exports in Apr-Sep rose 38% on year to Rs.356.78 bn, the data showed. Cut & polished diamond exports in Apr-Sep rose 3% on year to Rs.602.59 bn, while rough diamond exports during the same period were up 67% on year at Rs.38.54 bn, the Council said. The total imports in Apr-Sep were Rs.1.04 trn, showing the country was net importer of gem & jewellery to the tune of over Rs.20 bn. Rough diamond imports in Apr-Sep were Rs.361.77 bn, up 37% from corresponding period a year ago. Gold bar imports during this period rose 49% to Rs.229.07 bn. Imports of cut & polished diamonds in Apr-Sep were Rs.416.15 bn, up 7% on year, it said.

India Sep National Consumer Price Index 113.1 vs 111.7 in Aug

India's National Consumer Price Index rose to 113.1 in Sep from 111.7 a month ago, the Central Statistics Office said. CPI Rural for Sep rose 1.32% on month to 114.6, while CPI Urban rose 1.18% to 111.1, data showed. The base year for the new series is 2010. Within the national CPI for Sep, indices of fuel and light rose 1.46% on month to 118.1, while food, beverages, and tobacco grew 1.34% to 113.2. The index for clothing, bedding and footwear was up 1.44% on month at 119.4, while housing rose 1.11% to 108.8. CSO had introduced the new CPI series in Jan to track price movements across the country. The new data--combining the urban and rural sectorscan be used to compile inflation rates only from next Jan when the comparative year ago figures are available. The labour bureau also compiles CPI for Agricultural Labourers, Rural Labourers and Industrial Workers. Once the comparative figures are available, the new index can even replace the Wholesale Price Index as the headline inflation rate.

RBI says Indian cos invest in overseas JVs, arm up at $3.46 bn Sep

Indian companies invested $3.46 bn in overseas joint ventures and subsidiaries in Sep, compared with $2.29 bn in Aug, according to Reserve Bank of India data released. Of the total investment, $1.29 bn was in the form of equity, $336 mn as debt, and the remaining $1.83 bn in guarantees.

India Aug industrial growth 4.1% vs 3.8% a month ago

India's industrial production rose to 4.1% in Aug from 3.8% a month ago. The rise in factory output was primarily due to 9.5% on year rise in electricity output and growth in capital goods segment. The capital goods sector, which had contracted by a massive 15.2% in Jul, grew 3.9% during the period of review


Weekly Newsletter 4

compared with 4.7% a year ago. However, during Apr-Aug, growth in the capital goods segment fell to 7.2% from 18.9% a year ago. Going ahead, industrial growth is likely to moderate as series of rate hikes by the Reserve Bank of India and turmoil in global economy start to hurt demand, which could slow down overall investments.

India Aug refining up 3.9% on yr; natural gas output dn 5.3%

Crude oil output of Indian refiners rose 3.9% on year in Aug to 14.04 mn tn as most refineries exceeded their planned target for the period. Out of the eight refineries of Indian Oil Ltd, which processed 4.3 mn tn of crude oil in Aug, production at Haldia, Panipat, and Mathura increased on year. Production from Hindustan Petroleum Corp Ltd's refineries rose 18.9% on year to 1.38 mn tn. However, natural gas output fell 5.3% on year in Aug. The fall in the natural gas output was due to the decline in output from Reliance Industries Ltd's KG-D6 basin. Gas output from the KG-D6 block declined to an average of 45 mscmd in Jul-Sep against the peak level of 60 mscmd a year ago. Crude oil output for Aug rose 1.6% on year to 3.25 mn tn. Going ahead, crude oil output is likely to further increase following the rise in output from Cairn India's Rajasthan fields.

Oct 8 primary articles inflation at 3-wk high of 11.18%

India's primary articles inflation for week to Oct 8the final data indicator that Reserve Bank of India would refer to before its quarterly monetary policy review on Oct 25--rose to a three week high of 11.18%. The primary articles index for Oct 8 week rose 0.2% to 203.8 due to higher prices of food articles and fuel in addition to the statistical impact of a high base, data released by the commerce ministry showed. The odds of another interest rate hike by the RBI have strengthened following the release of this data, as inflation is showing no signs of abating despite 12 hikes since Mar2010 for a cumulative 350 basis points. Food price inflation surged to a near six-month high of 10.60% led by a 4% rise in poultry chicken prices, a 2% jump in bajra, vegetables and potato rates. Index for the segment was up 0.4% to 200.3. Fuel group inflation rose for the second consecutive week, rising to 15.17%, against 15.10% a week ago. The index for the fuel group was up 0.1% due to a 1% rise in prices of bitumen and furnace oil for the week. The headline inflation rate based on Wholesale Price Index for Sep has eased marginally to 9.72% from an over one-year high of 9.78% in Aug. However, WPI inflation rate has been over 9% since Dec last year. The Reserve Bank of India estimates headline inflation rate at 7% by the end of the current financial year.

Today's inflation data shows indices for primary articles, and fuel and power were as follows in the week ended Oct 8:

--Primary articles index up 0.2% to 203.8 from 203.4 in the previous week; food articles index rose 0.4% to 200.3 from 199.5; non-food articles index was down 0.4% at 179.8 from 180.5 a week ago.

--Fuel and power group index rose 0.1% to 170.1 from 170.0.

Below are the provisional levels, week-on-week and year-on-year changes, in per cent, of the indices of key commodity groups:

Commodity groups Weight Oct 08

2011

wk-on-wk

% change

Yr-on-Yr

% change

I. PRIMARY ARTICLES 20.12 203.8 0.20 11.18

Food articles 14.34 200.3 0.40 10.60

Cereals 3.37 177.0 (-)0.23 4.73

Rice 1.79 177.0 (-)0.06 4.42

Wheat 1.12 167.1 (-)0.30 (-)0.18

Pulses 0.72 211.4 (-)0.05 7.42

Vegetables 1.74 239.3 1.66 17.59

Potatoes 0.20 159.1 1.99 1.73

Onions 0.18 237.0 0.68 (-)11.27

Fruits 2.11 177.8 0.11 12.39

Milk 3.24 196.9 0.41 10.80

Egg, Meat & Fish 2.41 212.8 0.52 14.10

Non-food articles 4.26 179.8 (-)0.39 8.51

Fibres 0.88 216.3 (-)0.41 12.77


Weekly Newsletter 5

Oilseeds 1.78 153.5 (-)2.79 8.63

Minerals 1.52 303.6 0.00 19.72

II. FUEL & POWER 14.91 170.1 0.06 15.17

Liquefied petroleum gas 0.91 147.3 0.00 14.27

Petrol 1.09 181.1 0.00 29.17

High speed diesel 4.67 167.8 0.00 9.32

India adds 6.52 mn GSM mobile users in Sep vs 5.33 mn Aug

India added 6.52 mn GSM subscribers in Sep compared with 5.33 mn in Aug. With this, the total GSM user base in the country now stands at 618.28 mn as on Sep 30. The addition of GSM subscribers rose month-on-month for the first time since Mar. Unitech Wireless Ltd, operating under Uninor brand, added highest number of subscribers in Sep at 1.92 mn. India's largest telecom company Bharti Airtel Ltd added 935,947 users during the month while Idea Cellular added 1.74 mn. The rise in new users in Sep was mainly due to the subscribers' addition in Kerala, Punjab, Uttar Pradesh, West Bengal, Rajasthan, Madhya Pradesh and North East, where operators such as Uninor and Idea Cellular have added good numbers of users. However, stricter subscriber verification norms may continue to limit a sharp rise in GSM monthly subscriber additions.

India Sep CPI farm labourer inflation 9.43% vs 9.52% Aug

India's annual inflation rate based on the Consumer Price Index for agricultural labourers eased to 9.43% in Sep from 9.52% in Aug, the Labour Bureau said. CPI inflation for rural labourers also eased to 9.25% during the month from 9.71% a month ago. Month-on-month, the CPI-AL index and the CPI-RL index rose 0.82% to 615 and 0.65% to 614, respectively in Sep. In the year-ago period, inflation rate for CPI-AL was 9.13%, and at 9.35% for CPI-RL. The most-widely tracked inflation based on the Wholesale Price Index fell to 9.72% in Sep, compared with 9.78% in the previous month.

The point-to-point annual inflation rates, based on CPI for Agricultural Labourers and for Rural Labourers, are as follows:

CPI-AL

Point-to-Point

Inflation(%)

CPI-RL

Point-to-Point

Inflation(%)

Month 2011-12 2010-11 2009-10 2008-09 2011-12 2010-

11 2009-

10 2008-

09

Apr 9.11 14.96 9.09 8.88 9.11 14.96 9.09 8.61

May 9.63 13.68 10.21 9.11 9.63 13.68 10.21 8.84

Jun 9.32 13.02 11.52 8.77 9.14 13.02 11.26 8.75

Jul 9.03 11.02 12.90 9.41 9.03 11.24 12.67 9.41

Aug 9.52 9.65 12.89 10.29 9.71 9.66 12.67 10.29

Sep 9.43 9.13 13.19 10.98 9.25 9.34 12.97 10.98

Oct 8.43 13.73 11.14 8.45 13.51 11.14

Nov 7.14 15.65 11.11 6.95 15.65 11.11

Dec 7.99 17.21 11.14 8.01 16.99 11.14

Jan 8.67 17.57 11.62 8.69 17.35 11.35

Feb 8.55 16.45 10.79 8.55 16.45 10.79

Mar 9.14 15.77 9.46 8.96 15.52 9.69

Note: CPI-AL and CPI-RL seek to measure the rate of inflation in the countryside. Both indices use 1986-87 as the base year. The index levels and the corresponding inflation rates are averages of 20 states across the country. The government calculates consumer price indices separately for three categories--industrial workers, agricultural and rural labourers.


Weekly Newsletter 6

INDIA DATA CALENDAR

Oct 20-25 Crude, refinery output for Sep, from petroleum ministry

Oct 25-30 Core sector growth for September, by commerce ministry

Oct 27 Primary articles inflation rate for week to Oct 15, by commerce and industry ministry

Oct 30 Government finances for Sep, Apr-Sep, by CGA

Nov 01 Manufacturing PMI for October, by HSBC

Nov 01 Trade data for September, by commerce and industry ministry

Nov 05 Services PMI and composite PMI for October, by HSBC

Nov 08-11 Automobile sales data for October, by SIAM

Nov 08-11 Major port traffic in October, by Indian Ports Association

Nov 11 Index of Industrial Production for September, by CSO

Nov 11-14 Cement production, despatches in October, by CMA

Nov 11-14 Foreign tourist arrivals in Oct, by tourism ministry

Nov 11-14 Power generation for October, by Central Electricity Authority

Nov 14 WPI inflation for Sep, by commerce and industry ministry

Nov 15-20 Power generation for October, by Central Electricity Authority

Nov 18 CPI for rural, urban areas and combined for October, by CSO

Nov 21-25 GSM mobile subscribers data for Aug, by COAI

Nov 30 GDP growth estimate for Jul-Sep, and Apr-Sep, by CSO

Dec 30 Balance of payments for Jul-Sep, by RBI

Sources: Government of India, Reserve Bank of India, Securities and Exchange Board of India, stock exchanges, and various industry and trade bodies.


Weekly Newsletter 7

ECONOMY ECONOMY:

India offers $500 mn in aid to Myanmar. Encephalitis hits Uttar Pradesh hard, 400 dead in 1 hospital this yr. SC notice over threat to Taj Mahal. Searches at houses of Deve Gowda's eldest son. Delhi put on high alert. India's longest rail tunnel ready in J&K. Enforcement Directorate seeks details of funds from Formula 1. Maya unveils Rs.6.85 bn park in Noida, Cong calls it a 'waste'. Doctor Chakrabarty prescribes RBI action Crocin for inflation fever. India Sep WPI inflation rate 9.72% vs 9.78% Aug. Nandan Nilekani to head special purpose vehicle on GST. Rangarajan says worried about econ growth in next fiscal. Centre may match NREGA payouts with minimum wages in states. GST panel head says still lot of ground to be covered for Apr rollout. Govt source says winter session likely from week beginning Nov 21. Kohinoor Foods to reduce debt with stake sale in arm. Lack of export offtake drags onion prices. Rahul steps in, Anna aides step forward: 'Talks only way'. Law Minister Khurshid says no proposal to review RTI Act. Election Commission Right to recall will destabilize country. Anna for working with Cong if Govt creates strong Lokpal. Huge quantity of explosives recovered in Madhya Pradesh . Rajasthan Chief Minister Gehlot to sack ministers in Bhanwari Devi case. Anna Hazare begins 'maun vrat' at Ralegan Siddhi. Jailed Former Karnataka chief minister Yeddyurappa in ICU. Nitish says include corporate sector, PPP projects under RTI. Anna's aides to meet Rahul Gandhi. Employees' PF accounts to fetch 9% interest this fiscal. Finance ministers of G-20 nations give the European Union a week's time to resolve their debt crisis.. Pranab says advanced economies' monetary steps hurting emerging markets. Wholesale and ex-factory sugar prices have gone up by 3-5% on festival demand. Centre for Monitoring Economy has lowered its economic growth forecast for 2011-12 (Apr-Mar) to

7.9% from 8.0%.

Rajasthan government to offer free generic medicines in the state. Allocates 2 bn Rs in its annual budget for this purpose.

Rural regional banks have been asked to open 1,600 branches in 2011-12. Ministry of corporate affairs likely to extend its deadline for companies to file their balance sheets in

the new reporting formats.

Ministry of Corporate Affairs has given companies another year to amortise their liabilities on account of foreign exchange borrowings accruing from exchange fluctuations.

Finance Ministry to start discussions on the budget for 2012-13. Finance ministry turned down railway ministry's request for Rs.21 bn loan to cover developmental

expenses.

All states to levy value added tax on sugar and textiles from Apr 1, 2012. Maharashtra government has announced a eight-year holiday on non-agricultural tax.


Weekly Newsletter 8

G20 has put off its decision to levy a financial transaction tax giving a breather to India, which was resisting this tax.

Congress loses Hisar Lok Sabha seat, 3 Assembly bypolls. 'Right to recall' to form part of all-party meet, says Khurshid. PM leaves for Pretoria to attend IBSA Summit. Court grants bail to suspended Gujarat cop Bhatt. Anna dismisses reports of rift in his team. Dengue cases touch 450 in Delhi. CPM accuses Mamata of cheating on Maoists issue. No communal intent in report, say Kashmir interlocutors. Yeddyurappa moves high court seeking bail. Normal life hit by bandh in Telangana region. Karnataka HC to hear former Karnataka chief minister bail plea. FDI deals with debt options likely to stage a comeback. Govt faces revenue gap of Rs.500 bn. Econ affairs secy says inflation has peaked; to decline from Nov. Public procurement policy, Companies Bill likely in winter session. Govt body says India Apr-Jun pulses exports Rs.4.2 bn, up 39%. Finance minister Mukherjee said growth in Asia crucial for global economy. Chief Economic Advisor Kaushik Basu said rising labour costs feeding inflation. Finance minister Mukherjee said Indian economy firmly on the 8.5-9% growth path in medium to

long term.

Government is mulling raising foreign institutional investment cap on government bonds from the current limit of $10 bn.

Economic Affairs Secretary R. Gopalan said Wholesale Price Index-based inflation in Oct is likely to be lower than 9.72% in Sep.

Government likely to hike FDI cap in broadcasting sector to 74% from 49%. The government is likely to increase the limit on foreign institutional investment in government

securities from $10 bn now.

World Gold Council Managing Director-India Ajay Mitra said India's gold demand in the second half of 2011 is likely to be flat on year at around 500 tn.

Sees Rs.500 bn shortfall in accounts due to failed disinvestments and prospects of missing out on cash from sale of spectrum.

Finance ministry expects inflation to come down to 7% by Mar. A senior finance ministry official has said rationalisation of the Securities Transaction Tax rate is

possible only in the next Budget.

2 Team Anna members quit; movement's political turn irks Anna aides. Activist to drag Maharashtra state to court over toll policy. Yeddyurappa bail plea hearing adjourned to Oct 20. Team Anna member Kejriwal attacked with slipper in Lucknow. Bring Telangana bill, BJP will support it, says Advani. Jayalalithaa fires fresh salvo at Centre on Tamil Nadu nuclear project. Cash-for-vote scam: High court defers Amar Singh's bail plea. As Centre fails to act, Jayalalithaa to ensure Kudankulam project stall. West Bengal chief minister Banerjee says 'Talks with Maoists on'. Formula 1: SC issues notice to UP state on granting tax exemption. Govt says global uncertainty, inflation may hit FY12 tax mop-up.


Weekly Newsletter 9

Plan panel Montek says last RBI rate hike hasn't impacted econ yet. Govt so far issued 478,504 tn sugar export permits in 3rd tranche. Plan panel Montek says last RBI rate hike hasn't impacted econ yet. EGoM may mull lowering onion export floor by $75-100/tn Oct-end. India Sep National Consumer Price Index 113.1 vs 111.7 in Aug. Planning Commission's Deputy Chairman Ahluwalia said that the farm sector is seen growing 3.5% in

the 11th Five-Year Plan as against 2.0% in the previous plan period.

Fiscal deficit target seen hit on telecom spectrum allocation delay. Non-tax revenue estimates of the government likely to face Rs.300 bn hit.

May ask state-run blue chip companies to use the global depositary receipt or the American depositary receipt route.

Commerce Secretary Khullar said FDI in multi-brand retail decision likely by end of 2011. Deadline to file returns of service tax online extended by a month. Anna Hazare slams critics for 'illogical takes'. Resigned member says, 'Anna, Kejriwal autocratic, politicising campaign'. France gave info about Rs.400 crore illegal money: Pranab. HC reserves order on Amar Singh's bail plea in cash-for vote scam. Why no statehood to Telangana by NDA? Congress asks Advani. Yeddyurappa discharged from hospital, back in jail. US issues travel alert warning of terror attacks in India. Government lies when it comes to inflation, says BJP. Karnataka CM Gowda declares Rs.24.4 mn assets. Go to Karnataka for trial, SC tells Jayalalithaa. Bring Telangana Bill in next session, will support: Advani. Jaipal Reddy rules out fuel price cut as rupee depreciates. Pawar questions food security law economics. World Bank says India econ to grow at 7-8% in FY12, FY13. Rail board hopes to raise up to Rs.80 bn via tax-free bonds FY12. Govt source says don't see need for extra borrow Oct-Mar. Pawar for limited sugar exports/mo; says govt cautious on exports. Pawar says Cabinet to decide wheat MSP by next week. Fin min source says may up cap on FII gilt investment to $15 bn. Govt to up wheat price in open mkt sale plan on rail freight hike. Finance Minister Mujkherjee said 4.6% fiscal deficit goal too ambitious. Pranab Mujkherjee said India would not blindly follow other countries that have been cutting rates

despite high inflation.

Maharashtra on the verge of announcing regularisation of slums built in Mumbai before Jan 1, 2000. Agriculture Minister Sharad Pawar said that the proposed Food Security Act, which will provide food

at subsidised rates, to damage country's financial health.

Approves building of four expressways with 1,000 km length at Rs.167 bn. Sahara group has won an appeal against the income tax department that will help the group get a

refund of Rs.18 bn.

Moody's arm sees India econ slowing 2011, 2012; RBI rate hike Oct 25

The Indian economy is seen slowing markedly in the second half of 2011 and the first six months of 2012, and may register a GDP growth rate of 7.4% for 2011 and 2012, said Glenn Levine, Senior Economist, Moody's Analytics. "Recent data confirm the slowdown and suggest that the Reserve Bank's tightening campaign is hurting growth, capping consumer and corporate spending," Levine said in a report. The Budget for 2011-12 (Apr-Mar) had pegged GDP growth at 8.75-9.25%. However, these estimates were later scaled


Weekly Newsletter 10

down to close to 8% following the slowdown and sovereign debt crisis in the global economy. Reserve Bank of India's persistent interest rate hikes are also expected to curb demand in the economy. "India's central bank has been the most aggressive in Asia in trying to rein in inflation, but the use of this blunt policy instrument has hurt domestic demand, which still accounts for the bulk of economic activity," he said. A slowing external sector, and in turn exports and foreign inflows, is also likely to drag down domestic growth, Moody's Analytics said. India's merchandise exports grew 44.3% on year in Aug to $24.31 bn. Exports have grown over 40% on year for the fourth consecutive month now mainly because of a low base effect. "The global turmoil and slowdown will shave around a percentage point from Indian GDP growth through the second half of 2011 and opening six months of 2012. This figure could grow higher if Europe's troubles get substantially worse, or if the US slips into recession," it said. Terming RBI's efforts to rein in inflation as a "failure", the report said recent comments from central bank officials indicate that they could hike rates further on Oct 25. Last week, Reserve Bank of India Deputy Governor Subir Gokarn said the central bank will raise interest rates further if high inflation persists. Levine, however, expects inflation to stabilise at 6-7% in 2012.

World Bank says Indian economy to grow at 7-8% in FY12, FY13

The Indian economy is likely to grow at 7-8% in 2011-12 (Apr-Mar), as well as in the next financial year, the World Bank said in a release. India's gross domestic product grew at 8.5% in the last financial year ended Mar. "The slowdown is expected because of structural problems, tighter macroeconomic policies, slow growth in the core OECD (Organisation for Economic Co-operation and Development) countries, and a base effect," the multilateral funding agency said. Fiscal consolidation and higher interest rates are likely to have a dampening effect on aggregate demand, the report said. "Domestic interest rates could have a stronger effect on domestic investment in the near future, because of the lower availability of external loans in the more uncertain international environment," the report said. The report said downside to growth are high because of risks to global growth posed by the sovereign debt crisis in Europe. The multilateral funding agency said the headline inflation would start decelerating from Oct-Dec that could prompt the Reserve Bank of India to lower policy rates eventually. The RBI has hiked repo, the rate at which it lends to banks, a dozen times by a cumulative 350 basis points, in the past 18 months to tame inflation and it is expected to raise the rate by another 25 basis points on Oct 25. The report said slowdown in industrial production witnessed in Apr-Jun is likely to continue as lower aggregate demand would reduce the capacity utilisation. During Apr-Jun, India's industrial output grew 6.8% compared with 9.7% a year ago. World Bank said the current account deficit of the country is likely to rise to 3% of the GDP in the 2011-12 (Apr-Mar).

Govt says global uncertainty, inflation may hit FY12 tax mop-up

India's tax mop-up so far this financial year ending Mar 31 may be healthy so far, but could be a matter of concern in coming months, a government report ahead of the Economic Editors' Conference said. "...recent developments relating to economic growth like moderate GDP growth (expected to be below 8%), rising inflation, costlier credit, sliding industrial output, Eurozone uncertainties etc may affect revenue collection in remaining months of the current financial year and are a matter of concern," the report said. India's gross tax collections rose 23% on year at Rs.2.57 trn. While indirect tax mop-up in Apr-Sep rose 20.7% to Rs.1.686 trn, direct tax collections saw a 7.2% on year rise to Rs.1.948 trn. The government was, however, iffy on the rollout of the Direct Tax Code, which is one of its major tax reforms. The Direct Tax Code is likely to be implemented from Apr 1 onwards, but the government said the transition to the new regime from the old could pose a challenge. "It (the transition) includes various issues like redrawing processes, rules, forms, software modifications, training needs of manpower etc." When enforced, the Direct Tax Code will replace the Income Tax Act, 1961. The new tax regime seeks to simplify the direct tax law and its administration.

Govt says new takeover code to boost mergers, acquisitions

The new Takeover Code is expected to boost mergers and acquisitions in the Indian capital market, said a report released by the finance ministry ahead of the two-day Economic Editors' Conference. "The new takeover code regime is expected to boost the mergers and acquisitions activity in the Indian capital market while enhancing the rights and benefits to the minority shareholders," the report said. The government will soon notify the detailed regulations of the new Takeover Code. "Recommendations of the committee were examined by the Securities and Exchange Board of India and have been approved by the SEBI board with certain modifications," it said. The new Takeover Code is aligned according to the international standards, the report said. The recommendations that were approved with modifications include the increase in threshold limit of open offer to 25% from the existing 15% of the voting rights of a listed company. The



government said the timeline for the entire open offer process has been reduced to 57 days from 95 days, while the open offer exemptions have been reduced and streamlined.

Indian Railways may raise Rs.75-80 bn via tax-free bonds FY12

Indian Railways is expected to raise Rs.75-80 bn through Tax-free bonds in 2011-12 (Apr-Mar), Railway Board Chairman Vinay Mittal said. "We have the approval to raise 10,000 crores (Rs.100 bn) through tax-free bonds this year. Of this, we hope to raise 7,500-8,000 crores (Rs.75-80 bn) through tax-free bonds," Mittal told reporters on the sidelines of the Economic Editors's conference here. Mittal also said they may reduce the 993-mn-tn freight target for the current financial year. "Heavy rains have affected coal loading while the mining ban in Karnataka has almost completely finished iron-ore loading...yes, we are going to review our freight loading target soon. I think it will have to be revised downwards." In 2010-11, the railways transported 921.5 mn tn freight compared to the target of 924 mn tn. The target was scaled down from the initial aim of 944 mn tn.

Plan panel Montek says last RBI rate hike hasn't impacted econ yet

Reserve Bank of India's last interest rate hike, by 25 basis points on Sep 16, has not yet had its impact on the economy, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said. RBI's second quarter monetary policy review is scheduled on Oct 25. "I don't think anybody is expecting Governor to lower the interest rate. The issue is whether it is going to be paused or (hiked) a little more. Monetary policy has long lag. Last interest rate (hike) has not yet impacted," Ahluwalia said. The RBI has hiked repo rate, at which it lends to banks, 12 times by 350 basis points since the past 18 months to tame inflation. Inflation based on the Wholesale Price Index has remained over 9% since Dec last year. For Sep, WPI inflation was at 9.72%. Ahluwalia said he expected inflation to soften Nov onwards. "My view is that at the moment, year on year basis, inflation is too high, but it is slowing down. Our expectation also is that it will come down significantly by the end of March 2012... I expect some softening from November onwards."

Public procurement policy, Companies Bill likely in winter session

The government is likely to introduce the public procurement policy and the Companies Bill in the winter session of Parliament, Veerappa Moily, corporate affairs minister, said. "Companies Bill has gone to the cabinet," Moily said at a conference on corporate governance and company law organised by Indian Chamber of Commerce here. "Maybe in the next cabinet, it will be approved. I would like to see it passed in the first half of the winter session of Parliament." "Public procurement policy is being finalised...bill has to be introduced by Dec 2011," he said. The minister said the government's procurement was in the tune of Rs.12,000 bn annually and the bill will help reduce corruption in the system. "This (public procurement bill) will reduce at least 50% of the corruption," Moily said.

Pawar for limited sugar exports/mo; says govt cautious on exports

The government may allow sugar exports in the new season that began Oct 1 but in limited quantities as overseas sale of the commodity in bulk may depress global prices, Agriculture Minister Sharad Pawar said. "We must see that our decision to allow sugar exports should not impact global prices," Pawar told reporters at the Economic Editors' Conference. India is one the largest producer and exporter of the commodity. An Empowered Group of Ministers on Food will meet Oct 20 to discuss farm product exports, and food grain prices. "We (the government) are cautious on exports as we want to ensure enough domestic availability and keep prices in check," he said.

Pranab says India needs to be alert to emerging challenges

Although India remains on the 8.5-9.0% growth path in the medium term, it needs to be alert to and respond to emerging challenges, Finance Minister Pranab Mukherjee said. Mukherjee also said food security and volatile prices were a matter of concern for the country. India's inflation based on the Wholesale Price Index was detailed at 9.72% for Sep compared with 9.78% a month ago. Mukherjee also said "quality infrastructure" was key to sustaining India's growth momentum. He reiterated the country's investment need of $1 trn in the 12th five year plan.

Pranab says govt committed to phasing out fossil fuel subsidies

With global economic recovery fragile amid Eurozone debt crisis, Finance Minister Pranab Mukherjee said significant rise in commodity prices and volatility, especially in case of oil prices, has put focus on the growing "financialisation of commodities". Speaking at a session on energy and commodities at the meeting of finance ministers of G-20 nations in Paris, he also asserted that India is strongly committed to phasing out fossil fuel subsidies.



Govt says headline inflation to remain under pressure till Dec

The headline inflation based on the Wholesale Price Index is likely to remain under pressure till Dec and start moderating after festival season, said a report released by the finance ministry. "...prices of primary articles will start to decelerate from Dec 2011 due to an expectation of sharp decline in some food articles (fruits and vegetables) and major non-food articles," said the report released ahead of the two-day Economic Editors' Conference.

PM says India econ growth steady despite global slowdown

Developing nations such as India cannot remain immune to the sovereign debt crisis in Europe and recessionary trends in the US and Japan, and these events have hampered developmental efforts of emerging market economies, Prime Minister Manmohan Singh said. However, despite the global turmoil, India, along with Brazil and South Africa, has been able to hold its own and register a steady growth rate, Singh said.

Pranab says to make "strenuous efforts" to meet FY12 fisc gap aim

The government indicated that its Budget aim to keep fiscal deficit under 4.6% of gross domestic product in the current financial year ending Mar could be under strain and it will have to make "strenuous efforts" to meet the target. "With the crude prices remaining where they are, it will be a great challenge to maintain the fiscal deficit numbers at 4.6% this year; however, we will make strenuous attempts to keep the...numbers," , Finance Minister Pranab Mukherjee said

Simbhaoli Sugars head says co to begin 2011-12 cane crushing Oct 28

Simbhaoli Sugars Ltd is going to start crushing cane for the new season from Oct 28 due to early monsoon rains this year, Executive Director, G.S.C Rao told. "This year we are planning to start our crushing by Oct 28, a month earlier than last year," Rao told. Rao said that there is currently a dry spell in cane growing states after early monsoon rains this year. The cane crop matures when there are 40 days or more of dry spell. Last year, the company started crushing cane from Nov 25.

Zuari Ind promoter co completes merger with OSI

With reference to the earlier announcement dated Sep 07, 2011, Zuari Industries Ltd has now informed BSE that the Company have now received intimation from Globalware Holdings Limited that OSI Limited (Now OSI International Limited), a foreign shareholder, has completed its merger with Globalware Holdings Limited, an overseas Company (which is a part of the promoter group).

Prime Minister to hold informal meeting on inflation situation

With inflation nearing double digits, Prime Minister Manmohan Singh has called an informal meeting on the issue to take stock of the situation. The meeting will be attended by Planning Commission Deputy Chairman Montek Singh Ahluwalia, Prime Minister's Economic Advisory Council Chairman C. Rangarajan and Chief Economic Advisor Kaushik Basu. Wholesale price index-based inflation stood at 9.72% in Sep.

Sep inflation, RBI Chakrabarty remarks bring back rate hike fears

Hopes that the Reserve Bank of India may not hike rates at the Oct 25 policy review were dashed by the September inflation reading, which showed demand pressures persist, and a top RBI official said the high inflation will drive interest rates up.

Simbhaoli Sugars, Welspun India get carbon credits from UN body

Simbhaoli Sugars Ltd has received 30,861 certified emission reductions, or carbon credits, for its bagasse-based power plant at Ghaziabad in Uttar Pradesh, the United Nations Framework Convention on Climate Change said in a release.

Court issues arrest warrant against former Karnataka CM Yeddyurappa

A special Lokayukta court issued arrest warrant against former Karnataka Chief Minister B.S. Yeddyurappa in a land denotification case and also rejected his bail plea, CNN-IBN channel reported. The arrest warrant will be executed by the Lokayukta Deputy SP.

Pranab says reform of international monetary system won't be easy

Asking The Group of Twenty countries to play a stabilizing role by keeping global imbalances within manageable limits, Finance Minister Pranab Mukherjee said reform of the international monetary system will not be easy and G-20 cannot be expected to address all problems in a short time frame.



Minister Kharge says EPFO panel to meet Dec on FY12 interest rate

The Central Board of Trustees is likely to meet in Dec to decide on the annual rate of interest for employees provident fund, Labour Minister Mallikarun Kharge said. "There is no talk of it as of now. Only the committee will propose. The committee (CBT) will be meeting some time in Dec," Kharge told.

MD sees Coromandel Intl fertiliser capacity 4 mn tn by FY14

Coromandel International Ltd expects its fertiliser capacity to touch 4.00 mn tn by 2013-14 (Apr-Mar) from 3.24 mn tn now led by the expansion of its Kakinada unit, Managing Director Kapil Mehan told reporters here.

Bajaj Hindusthan's rights issue partially devolves on underwriters

Bajaj Hindusthan Ltd's Rs.16.4 bn rights issue of 456.7 mn shares was partially devolved on the nine investment banks that underwrote the issue, the company informed the Bombay Stock Exchange. The company's shareholders, which include the promoters, subscribed to only around 73.44% of the issue size.

Oct 20th EGoM meet on sugar export, onion export floor deferred

The Empowered Group of Ministers on Food, which was to take a call on overseas sale of sugar and lowering the minimum export price of onion on Oct 20, has deferred its meeting, senior government officials said. "The meeting is now likely after Diwali (which falls on Oct 26)," one of the official said.

India Sep National CPI 113.1 vs 111.7 in Aug

India's National Consumer Price Index rose to 113.1 in Sep from 111.7 a month ago, the Central Statistics Office said. CPI Rural for Sep rose 1.32% on month to 114.6, while CPI Urban rose 1.18% to 111.1, data showed.

Ministries told to revive or shut sick units

The public enterprises department has written to all ministries asking them to prepare comprehensive proposals to either revive or close down sick state-owned companies under their charge, the Economic Times reported.

States to levy 4-5% VAT on sugar, textiles from Apr 1

All states will levy value added tax on sugar and textiles from Apr 1, the convener of Empowered Group of State Finance Ministers on Goods & Service Tax Sushil Modi said.

Andhra industry body seeks moratorium on tax collection, loan dues

Hit by the ongoing Telangana strike, the Federation of Andhra Pradesh Chambers of Commerce and Industry has appealed to the state government for a moratorium on tax collection and payment of loans for a month.

Pranab says advanced econs' monetary steps hurting emerging mkts

Strong liquidity injections by central banks of advanced economies have had a "damaging spill over" effect on emerging economies, Finance Minister Pranab Mukherjee told his French counterpart Francois Baroin.

Govt source says Parliament's winter session likely Nov 21 onwards

The winter session of Parliament is likely to commence from the week beginning Nov 21, but a final decision has to be taken by the Cabinet Committee on Parliamentary Affairs, a government source said.

Govt enters tax information exchange pacts with 16 countries

The government has completed negotiating 16 new tax information exchange agreements to fight black money stashed in tax havens, Central Board of Direct Taxes Chairman M.C. Joshi said.

PM Singh says to enact whistleblower protection law in few months

The government plans to enact a law to safeguard whistleblowers in the next few months, Prime Minister Manmohan Singh said in his address to a convention of information commissioners.

CBDT head says hopes to improve corporate tax mop-up in Oct-Dec

Corporate income tax collection is expected to improve in the third quarter (Oct-Dec) of the current financial year ending March, Central Board of Direct Taxes Chairman M.C. Joshi said.

Doctor Chakrabarty prescribes RBI action Crocin for inflation fever

With barely 10 days to go for the next monetary policy review, Deputy Governor K.C. Chakrabarty said, the Reserve Bank of India needs "to do something" if inflation remains high.



RBI says India Aug services exports $11.90 bn, imports $6.86 bn

India's services exports in Aug rose to $11.90 bn from $10.40 bn in Jul, and service imports advanced to $6.86 bn from $5.89 bn, the Reserve Bank of India data released showed.

Kohinoor Foods plans to halve debt via stake sale in arm to US co

Kohinoor Foods Ltd is looking to halve its debt of around Rs.10 bn with money from the stake sale in its subsidiary Kohinoor Speciality Foods India to US-based food and spices giant McCormick.

Centre may raise payouts under rural job guarantee scheme

The Centre is likely to raise remuneration under its Mahatama Gandhi National Rural Employment Guarantee Scheme and align it with the notified minimum wages of states following a court order last month.

Pranab says tax evasion, illicit flows challenges to global econ

Tax evasion and illicit capital flows have posed serious challenges to the world economy and have hit efforts of nations to raise revenue for development, Finance Minister Pranab Mukherjee said.

Econ affairs secy says inflation has peaked; to decline from Nov

Inflation based on the Wholesale Price Index in Oct is likely to be lower than Sep's 9.72%, Economic Affairs Secretary R. Gopalan said. Gopalan said that inflation has peaked and that it would start to fall from Nov.

Hisar sings Bhajan tune; Cong faces music in 3 other bypolls too

It was a rank bad day for the ruling United Progressive Alliance at the hustings with the Congress and its allies losing all four bypolls in different parts of the country.

Food EGoM to consider sugar exports, cut in onion export floor

The Empowered Group of Ministers on Food is likely to meet Oct 20 to take a call on export of sugar in the new season and a cut in the minimum export price of onion, senior government officials said.

Chambal Fert to set up phosphate unit in Gujarat at Rs.1.22 bn

Chambal Fertilisers & Chemicals Ltd plans to set up a 500,000 tn Single Super Phosphate unit at its Dahej plant in Gujarat with an investment of Rs.1.22 bn, the company said in a notice to the stock exchanges.

RBI says FIIs can buy up to 60% stake in Jain Irrigation Systems

Foreign institutional investors can buy shares and convertible debentures of Jain Irrigation Systems Ltd up to 60% of the its paid-up capital under the portfolio investment scheme, the Reserve Bank of India said.

Govt appoints 2 more members on RBI's Central Board of Directors

The government has appointed Y.H. Malegam and M.V. Rajeev Gowda on the Central Board of Directors of the Reserve Bank of India for a period of four years, a RBI release said.

Sakthi Sugars redeemed FCCBs worth $5 mn Sep 29

Sakthi Sugars Ltd has informed BSE that the Company has redeemed Foreign Currency Convertible Bonds Due 2011 (Series B) aggregating to USD 5.0 mn on Sep 29, 2011.

SIMBHAOLI SUGARS: The company will start crushing sugarcane for the new season from Oct 28 due to early monsoons. The company aims to produce 200,000 tn sugar in the 2011-12 season.

KOHINOOR FOODS: Is looking to halve its debt of around Rs.10 bn with money from the stake sale in its subsidiary Kohinoor Speciality Foods India to US-based food and spices giant McCormick.

COROMANDEL INTERNATIONAL: Plans to set up an 800 tn per day single super phosphate plant in Punjab, and a Rs.4.95 bn bonus issue of redeemable debentures to its shareholders.

BAJAJ HINDUSTHAN: The company's Rs.16.4 bn rights issue of 456.7 mn shares was partially devolved on the nine investment banks that underwrote the issue.

JAIN IRRIGATION SYSTEMS: RBI has said foreign institutional investors can buy shares and convertible debentures of the company up to 60% of its paid-up capital.

SAKTHI SUGARS: Has redeemed foreign currency convertible bonds due 2011 aggregating $5 mn on Sep 29.

RALLIS INDIA: Plans to tap around 7,000 farmers in Latur, Osmanabad, and Nanded to source pulses.



INFRASTRUCTURE INFRASTRUCTURE:

Power regulator may impose penalty on states for overdrawing electricity. Order inflows of capital goods, infrastructure cos hit 2-yr low Jul-Sep. Source says BEML may get around Rs.13 bn India defence order. Sobha Developers buys Pan Atlantic's 81% stake in SPV for $21 mn. MahaGenco solar plant runs into forest dept hurdle. Thiruvananthapuram to get Rs.2.50 bn defence nanotech hub. REC to fund Chhattisgarh project via 2-step loan from China. Power crisis short-circuits factory output across country. Environ min refuses nod to Phase 1 of HCC's Lavasa project. Cement capacity utilisation falls in Apr-Sep. Source says Mercator in talks to buy 2 dredgers; deal likely Oct-end. Railways ups busy season levy to 10%, development charge to 5%. RIL Jul-Sep net up 16%, but still a "damp squib". CBI registers preliminary enquiry against DB Realty. Protests against Kudankulam nuclear plant temporarily called off. Pranab says govt committed to phasing out fossil fuel subsidies. RIL to suspend drilling for oil and gas. Reliance, Tatas among 150 in race for solar photovoltaic projects. Indian Oil Corp wants to get crude on credit. HDFC Jul-Sep net up 20% on year at Rs.9.71 bn. NTPC says renewable energy JV with ADB, Kyushu arm incorporated. Source says Noida Toll Bridge expects to be debt free by Mar 2014. Bombay High Court dismisses Sahara plea against Jet Air. RIL halts fresh drilling at least till Feb; awaiting review by BP. Source says oil cos losing Rs.2.59 bn/day on subsidised fuel sale. Regulator may settle RIL case via consent. SAT orders Sahara firms to refund bond investors. GMR, Lanco power plants face cut in D6 gas supply. 2 IRB Infra promoters sell 10% stake to raise Rs.4.57 bn. Govt says PSU oil marketing cos' total borrow Rs.1.19 trn Aug 31. Govt says expect to launch ONGC follow-on issue by Dec. Petronet says plans 30-bn-rupee spend to up Dahej terminal capacity. Ramco Systems gets order from South Korea's T'way Airlines. 11th Five-Year Plan's investment target for infrastructure could fall short by 5%.. Demand for office space in India declined 37.5% sequentially to 5 mn sq ft in July-Sep, according to

realty consulting firm CB Richard Ellis.

Govt's new reality bill to give buyers a fair deal. Pranab says to make "strenuous efforts" to meet FY12 fiscal gap aim. Oil minister asks fin min for higher subsidy for oil retailers. Oil minister says financial conditions of PSU oil cos "fragile". Oil minister says implementation of diesel dual pricing not feasible. IOC Paradip refinery ops put off by a yr as BHEL power unit delayed. Power loans worth 560 bnRs. at risk sans reforms: CRISIL. India's power situation grim as more states face crunch.



OIL & GAS:

Prime Minister Manmohan Singh has requested state governments to cut the tax on natural gas and imported liquefied natural gas; the plea, if accepted, will bring down the value-added tax on them to 5% from the current 12%.

Fuel retailers INDIAN OIL CORP, BHARAT PETROLEUM CORP, and HINDUSTAN PETROLEUM CORP lost Rs.213 bn during Jul-Sep on sale of diesel, LPG and kerosene.

Delay in compensation by government to INDIAN OIL CORP has prompted it to take crude oil on credit from OIL AND NATURAL GAS CORP.

Oil ministry has asked the finance ministry for 140-bn-rupee cash subsidy to compensate the loss of Rs.210 bn suffered by state-owned oil marketing companies.

Government said oil marketing companies would not cut fuel prices even if crude oil prices fall below $100 a barrel as any gain in crude oil prices would be offset by rupee depreciation.

State-run oil marketing companies fear they will not be able to meet the country's demand unless government raises fuel prices or compensates them for losses via cash transfers.

Oil ministry has proposed to the finance ministry to impose a duty on diesel-run passenger vehicles, which will be equal to 15% of the diesel consumption of such vehicles.

AVIATION:

State-owned oil marketing companies have cut the prices of aviation turbine fuel by an average of Rs.355.00 a kL in the four metro cities from Sunday.

Civil Aviation Minister Vayalar Ravi said airlines are free to raise air fares. Airlines owe Rs.3 bn to Delhi Airport Authority towards landing and parking charges, with Air India

alone owing Rs.2.45 bn.

Government has decided to set up a civil aviation authority that will replace Directorate General of Civil Aviation to address issues of civil aviation sector.

Airlines have sought government approval for flying to several foreign cities by tapping unutilised bilateral rights.

Private airlines like Jet IndiGo want Air India, which is selling tickets 15-20% lower than operating costs forcing others to follow suit, to raise fares to make up their losses.

POWER:

The Central Electricity Regulatory Commission may impose penalty on Uttar Pradesh, Haryana and Rajasthan for overdrawing power from the northern grid during the recent electricity shortage.

Coal Minister said that coal shortage would ease in three-four days but power generating companies need to increase imports to maintain adequate stock.

A consortium led by GAIL (INDIA), ENGINEERS INDIA, and PUNJ LLOYD lost a bid to develop Ghana's gas master plan.

Maharashtra government looking at buying 1,400 MW power from two private players--one owned by Indiabulls in Amravati and the other owned by Adani Group.

Government to cut supply of RELIANCE INDUSTRIES KG-D6 gas to GMR's plant in Karnataka and LANCO's plant in Andhra Pradesh, as it wants low-cost gas to be used at plants that provide power at steady rates to consumers.

Karnataka is facing a 27% power shortfall on rising demand from irrigation sector and reduction in generation due to coal shortage.

Tariff of coal-based power projects has gone up forcing power companies to stop burning expensive imported coal the imported coal contracted for by the power companies piling up at ports. Companies say there are no buyers for expensive.

PORTS:

Public Investment Board set to approve Jawaharlal Nehru Port Trust's project to widen and deepen the Mumbai harbour channel and JN Port channel with a revised cost of Rs.15.5 bn.

Vizhinjam Port in Kerala to raise more than Rs.16 bn through bonds and institutional investors to develop the country's deepest port.



Shipping Secretary K. Mohandas said companies that were earlier denied security clearance for developing cargo-loading terminals at ports can now bid for other such projects.

RAILWAYS:

Indian railways has increased two surcharges that would have a combined effect of 6% on overall freight.

Indian Railways is expected to raise Rs.75-80 bn by issuing tax-free bonds in 2011-12 (Apr-Mar). Railway ministry considering a hike in higher-class passenger fares.

CAPITAL GOODS:

Order inflows for capital goods, engineering and infrastructure companies have fallen to a two-year low in Jul-Sep; about 64 firms reported order inflows worth Rs.400.1 bn during the quarter as against the 508.6-bn-rupee orders reported last year.

SHIPPING:

Ministry to seek sharp reduction in port charges for cruise liners, more facilities for passengers at ports, and easier movement of foreign-flagged vehicles.

RIL halts fresh drilling at least till Feb; awaiting review by BP

Reliance Industries Ltd has suspended fresh drilling at its deepwater blocks at least till Feb, awaiting a detailed review by its newly-inducted UK-based partner BP for future exploration strategy, a senior RIL official told. "The teams of RIL and BP have already started the re-evaluation of these (deepwater) blocks. We want to wait for the study to complete. We don't want to continue drilling just for the sake of it," the official said on condition of anonymity. The company's only available ultra-deepwater rig has been sub-leased to Malaysian national oil company Petronas, and is expected to be returned towards the end of this calendar year, he said. "The rig will be available to us sometime in Jan-Feb. Hopefully, by then we will be ready with the re-evaluation plan," the official said. The suspension in drilling, however, will not have any impact on the current production from RIL's D6 Block in Krishna-Godavari Basin, he said.

Suryachakra Power arm, US cos in pact for 500 MW project in India

Suryachakra Global Ventures Ltd, the Hong Kong-based subsidiary of Suryachakra Power Corp Ltd, has signed a memorandum of understanding with two US-based companies for implementing renewable energy power projects in India with a cumulative capacity of up to 500 MW. American Bio Sources Inc and Environmental Energy Finance Corp Inc will form one half of the 50:50 joint venture with Suryachakra Global, the Indian company said in a release. American Bio Sources has approved funding of $200 mn from the Export-Import Bank of the US to set up renewable energy power plants in India. The equity stake will be distributed equally between the two groups, with the two US companies bringing $200 mn to the venture. The three partners will work in tandem to secure funding for the commissioning of the power plants in India, the company said.

Maharashtra to set up 5 units to expedite highway land acquisition

The Maharashtra government has decided to set up five special units to speed up land acquisition for national highways that pass through the state, a senior revenue department official told. The need to expedite land acquisitions has gained urgency as many key highway projects in the state have not made progress as they are mired in over 86,000 court cases where land owners have contested the acquisition or the compensation offered, the official said. For instance, the Vadodara-Mumbai Expressway project in Thane district needs 2,810 ha of land, and the acquisition has not even begun. The government intends to convince landowners who are contesting the acquisitions to arrive at a compromise, with compensation being made under the guidance of district collectors. Lok Adalats, too, will be set up if necessary to expedite a resolution, the official said. The five special land acquisition units will be based in Solapur, Thane (two units), Raigad and Nagpur.

Maharashtra to set up 5 units to expedite highway land acquisition

The Maharashtra government has decided to set up five special units to speed up land acquisition for national highways that pass through the state, a senior revenue department official told. The need to expedite land acquisitions has gained urgency as many key highway projects in the state have not made progress as they are mired in over 86,000 court cases where land owners have contested the acquisition or the compensation offered, the official said. For instance, the Vadodara-Mumbai Expressway project in Thane district needs 2,810 ha of land, and the acquisition has not even begun. The government intends to convince landowners who are contesting the acquisitions to arrive at a compromise, with compensation being made



under the guidance of district collectors. Lok Adalats, too, will be set up if necessary to expedite a resolution, the official said. The five special land acquisition units will be based in Solapur, Thane (two units), Raigad and Nagpur.

CB Richard Ellis says office space demand down 37.5% on qtr Jul-Sep

Mirroring the general economic sluggishness, demand for office space in India declined 37.5% sequentially to 5 mn sq ft in July-Sep, according to a report by global realty consulting firm CB Richard Ellis. In Apr-Jun, 8 mn sq ft of space was absorbed across major metro cities. Of the 5 mn sq ft, National Capital Region, Mumbai and Bengaluru accounted for almost 80% of the space absorbed. "The slowdown in office space take-up is indicative of the global corporate sector sentiment affecting the Indian office property market," said Anshuman Magazine, chairman & managing director, CB Richards Ellis South Asia Pvt Ltd. "It is also indicative of the continuing volatility in the financial markets within India. This decline in absorption levels is further reflected in the slowdown in rental growth across key micro markets in the country," Magazine added. The Jul-Sep quarter also saw over 5 mn sq ft of new office space available in the market. This is almost 50% lower than the supply that came in the last quarter and can be largely attributed to the increase in the cost and reduction in availability of debt besides, sluggish off-take of existing stock. The new supply was largely concentrated in NCR, Bengaluru, Pune and Hyderabad.

GVK Power ups Mumbai International Airport stake to 50.5% via arm

GVK Power & Infrastructure Ltd said it has increased stake in Mumbai International Airport Pvt Ltd to 50.5% through its step-down subsidiary GVK Airport Holdings Pvt Ltd. In a release, GVK Power & Infrastructure said GVK Airport Holdings bought 108 mn shares, or 13.5% stake, of Mumbai International Airport from Bid Services Division (Mauritius) Ltd for $231 mn. GVK Power had signed the share purchase agreement with Bids Services in March. With this stake buy, GVK Power has become the majority stakeholder in Mumbai International Airport, in which Bid Services holds another 13.5%, Airports Company South Africa Ltd 10%, and the Airports Authority of India 26%. GVK Power also operates the Bengaluru international airport. In April 2006, Mumbai International Airport won the contract for the modernisation and operation of the Chhatrapati Shivaji International Airport in Mumbai.

REC in MoU with Nuclear Power Corp of India to fund capital outlay

Rural Electrification Corp Ltd and Nuclear Power Corp of India Ltd inked a memorandum of understanding under which the former will fund the capital outlay of NPCIL. Under the terms of the agreement, the financier of power projects will also provide consultancy services to NPCIL for setting up nuclear power reactors based on foreign and indigenous technology, according to a release by NPCIL. NPCIL currently operates 20 nuclear power reactors with an installed capacity of 4,780 Mwe. Besides, the state-owned nuclear power generating company is building four 700 Mwe pressurized heavy water reactors--two each at Kakrapar in Gujarat and Rawatbhata in Rajasthan. To meet its long-term funding requirements, NPCIL is also in the process of raising loans through external commercial borrowings and non-convertible debentures through private placement.

Oil India in talks with French co for West Africa asset buy

State-owned Oil India Ltd is in advanced talks with Paris-based oil producer Etablissements Maurel & Prom's to acquire assets in the African nation, Gabon, a senior official of the Indian company said. "We have come to a reasonable stage. We have conducted technical and financial due diligence and have identified a producing asset in Gabon, West Africa. We will soon take it to the board," the official said on conditions of anonymity. According to reports, Maurel wants to sell a controlling stake in the fields, which may be valued at more than $1.5 bn. However, the Oil India official said the company has an appetite to spend only around $1 bn-$1.2 bn for acquiring producing assets abroad. Oil India may be joined by state-run refiner Indian Oil Corp for the acquisition, he added. Oil India holds participating interest in overseas assets in Libya, Gabon, Iran, Nigeria and Sudan.

Bombay HC dismisses Sahara plea against Jet Air in buyout deal

The Bombay High Court dismissed an appeal filed by Sahara Airlines against an earlier court ruling that Jet Airways India Ltd was liable to pay Rs.14.50 bn and not Rs.20.0 bn for the purchase of Sahara Airlines. Justice D.Y. Chandrachud, in the ruling on May 4, had directed Jet Airways to pay Rs.4.78 bn to the Sahara group to complete the purchase of Sahara Airlines, which is now called JetLite. Sahara Airlines appealed against the order before the division bench headed by Chief Justice Mohit Shah, claiming Justice Chandrachud had not accepted the company's argument Jet Airways was liable to pay Rs.20 bn for the deal as it had breached a certain clause in the purchase agreement. The division bench said the appeal by Sahara



Airlines was not maintainable, and the company was free to move the Supreme Court. The bench also dismissed Jet Airways' appeal against the 9% interest payment directed in the May 4 order.

Reliance Ind sees US shale gas JVs on track to support earnings

Reliance Industries Ltd said its US shale ventures have achieved impressive developmental progress during Jul-Sep and remain on track to be able to make material contribution to the company's earnings. "US shale hydrocarbon production becoming meaningful...," RIL said in a post-earnings presentation to analysts over the weekend. RIL has invested in three shale projects in the US so far. The Mukesh Ambani-owned company said RIL's gross production from these shale assets was 210 mcf per day of gas and 24.7 mn bbl per day of condensate as on Sep 30. These shale assets, which are operated through three separate joint ventures, had 19 rigs operational till the end of Sep. "Additional rigs and frac crews contracted for Chevron and Carrizo JVs," RIL said.

Oil PSUs to cut jet fuel prices by average Rs.355/kL from Oct 16

State-owned oil marketing companies will cut the prices of aviation turbine fuel by an average of Rs.355.00 a kL in the four metro cities from Oct 16. Jet fuel prices will be cut by Rs.325.00 to Rs.58,721 a kL in Delhi, by Rs.379.00 to Rs.66,208 in Kolkata, by Rs.338.00 to Rs.59,021 in Mumbai, and by Rs.377.00 to Rs.62,647 in Chennai. Aviation turbine fuel is sold at market rates, and state-owned companies such as Indian Oil, Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd revise prices every fortnight in line with the tariffs in the global market. Jet fuel accounts for nearly 40% of an airline's operational cost.

JSW Energy commissions unit IV of 1,200 MW Maharashtra project

JSW Energy Ltd started commercial operations at the 300 MW fourth and final unit of its 1,200 MW Ratnagiri project in Maharashtra. The company also resumed operations at the two 135-MW units of the Barmer project after the Rajasthan Electricity Regulatory Commission approved an ad hoc tariff for the power produced by these units. Operations at the remaining units would commence by Mar, the company said. The company's arm, Barmer Lignite Mining Co Ltd, has also started mining from the Kapurdi reserves in the state to feed the power plant. Total power generation capacity for the company now stands at 2,330 MW.

Krishnan appointed Petroleum and Natural Gas Regulatory Board head

The government appointed former fertiliser secretary and 1975-batch officer of the Indian Administrative Services S. Krishnan as Chairperson of the Petroleum and Natural Gas Regulatory Board, an official release said. Krishnan's appointment comes into effect from and his term ends after five years or after he attains the age of 65. Krishnan, who took charge of the board, retired as fertilizer secretary in Aug last year. He fills up a post that had been lying vacant since the superannuation of Labanyendu Mansingh on Oct 10. One of the major tasks for Krishnan would be the issue of third city gas licensing round now pending for over seven months.

Tantia Constructions gets 4 orders worth Rs.1.67 bn

Kolkata-based Tantia Constructions Ltd has received four construction orders, including one from Bangladesh, worth a total amount of Rs.1.67 bn, the company said in a notice to the exchanges. Of the four orders, the company has bagged two orders from Punjab's public works department for construction of two bridges, one over the Sutlej river and another at Dhanoya Pattan in Gurdaspur. The Sutlej bridge contract is worth Rs.507 mn and the Gurdaspur project is worth Rs.480 mn, the company said. Besides, the company has won a Rs.141.86-mn order from Mizoram for the 27-km road stretching from West Phaileng to Marpara Road. The company won the Bangladesh order for construction of a 686.75-mtr-girder bridge on Arial Kha river. The order is worth Rs.540 mn and has been won by its joint venture in Bangladesh.

Initial success prods Cairn India to drill 2nd well in Lanka block

Buoyed by the success of the maiden exploration well in Sri Lanka, Cairn India Ltd has started drilling its second well to gauge the extent of the natural gas discovery it made in the Mannar Basin earlier this month, a company source told. "The first well has been capped after the discovery and the second well was spud last week using the same drillship," the official said. He said the second well is being intentionally drilled at a location far from the first well to see the hydrocarbon prospectivity of the block. Drilling of the second well is expected to be completed by next month. "Depending on the result of the second well, we will decide on the location of the third well in the block," the official said.

Reliance Power redeems FCCBs worth $299.90 mn

Reliance Power Ltd has informed that the Company has redeemed the principal amount of US$ 299.90 mn corresponding to Rs.1474.93 Crore due on the 4.928% Foreign Currency Convertible Bonds (FCCBS) on the



due date for their redemption i.e. Oct 17, 2011. In view of the above redemption, there has been no dilution in the Company's Equity Share Capital, which would have otherwise happened through the issue of 13,15,37,871 Equity shares of Rs.10 each representing 4.48 % of the paid up share capital of the Company) to the Bondholders upon exercise of their rights to convert the Bonds into Equity shares of the Company.

Areva T&D gets substation order worth Rs.580 mn from BHEL

Areva T&D India Ltd said its transmission business has bagged an order worth around Rs.580 mn from Bharat Heavy Electricals Ltd for a gas-insulated substation package. The contract covers manufacturing, engineering, and installation of 11 bays of 420kV gas-insulated substations for BHEL's hydro project at Rampur in Himachal Pradesh. The substations will be delivered from Areva's ultra high voltage switchgear factory at Paddapai in Tamil Nadu. Areva's high voltage technology is under the operational control of Alstom Grid, a part of the Alstom group.

FIPB cancels OK to Cals Refineries' GDR issue plan

Cals Refineries Ltd has informed BSE that consequent to the Order of SEBI on the Company, FIPB has withdrawn its recommendation to CCEA and has advised the Company to take up with them once the facts of the case change with respect to SEBI's order. The Hon'ble Member of SEBI has given Personal Hearing to the Company on Nov 08, 2011 to present its case. The Company has appealed to SEBI to grant a waiver from its subject Order for issue of GDRs to Hardt group to enable it to proceed with the project work.

Bhagyanagar India redeems FCCBs worth $10 mn

Bhagyanagar India Limited has informed the Exchange that the company had issued FCCBs aggregating to US$ 15 mn in Oct 2006. After repurchase and cancellation of FCCBs from time to time, the outstanding nominal value of FCCBs of USD 10,000,000 has been paid in full at redemption value of USD 14,825,500 including YTM of 8% on principle amount as on maturity date i.e. Oct 17, 2011 as per the terms and conditions of the offering circular dated Oct 10, 2006. In view of the above payment, the entire liability on account of FCCB's is discharged.

Pipavav Defence confirms I-T search at co premises

Pipavav Defence and Offshore Engineering Company Ltd has informed BSE that: "1. The Income-Tax department visited the premises of Pipavav Defence and Offshore Engineering Company Limited (formerly known as Pipavav Shipyard Limited) ("the Company"). IT officials visited for verification of certain issues for which required information was provided to their satisfaction. The management of the Company extended full co-operation to the authorities. 2. There was no disruption of any kind at the production units and the business of the Company was carried out as usual."

FDC Ltd to acquire 100% stake in ASL for Rs.64.3 mn

FDC Ltd has informed BSE that based on valuation of independent valuers, the Board of Directors, at its meeting held on Oct 15, 2011, have resolved to purchase 100% equity shares of ASL, a related, unlisted Public Company, from its erstwhile shareholders, for a total consideration of Rs.6.43 Crores, thereby making ASL, a wholly owned subsidiary of FDC Limited. Though ASL does have not any substantial operations, it owns a property at Dombivali admeasuring 81,855 sq.ft. which FDC proposes to use for its business operations.

Power utilities restore supply in all affected South Mumbai areas

The power situation in South Mumbai was back to normal, with supply restored to all the affected parts of the region, Tata Power Co Ltd and Brihanmumbai Electric Supply & Transport Undertaking said in a joint statement. There was a disruption in supply in certain of South Mumbai following a fire at Brihanmumbai Electric Supply & Transport Undertaking's Backbay Veej Bhavan 110 KV station. The power supply has been restored in all the affected areas from 1900 IST.

Rudh Investment makes open offer for 20% more in Midland Polymers

Rudh Equities and Investment Advisors Pvt Ltd has made an open offer to acquire 786,500 shares or 20% additional stake in Midland Polymers Ltd at Rs.29 per share, the manager to the open offer, Intensive Fiscal Services Pvt Ltd said. The open offer will be open from Dec 9-28. Rupesh Soni and Radhika Soni, promoters at Rudh Equities, had bought 610,100 shares or 15.51% stake at Rs.28.75 per share in Midland Polymers through open market operations on Oct 14.

Suzlon promoter to raise stake up to 3.94% via inter se transfer

Suzlon Energy Ltd said that one of its promoters Samanvaya Holdings Pvt Ltd would buy an additional stake of up to 3.94% in the company by Nov 12 via inter se transfer. The proposed transaction, under which



Samanvaya Holdings is to buy up to 70 mn shares of Suzlon Energy, was previously intended by Oct 11 but could not be completed. The acquisition may be done in one or more tranches either through off-market transactions or block deals, the company said.

GVK Power arm buys 14% stake in Bangalore Intl Airport

GVK Power & Infrastructure Ltd has informed BSE that Bangalore Airport & Infrastructure Developers Private Ltd., a subsidiary of our company has on Oct 19, 2011, acquired 53,844,000 equity shares of Rs.10 each (amounting to 14%) in Bangalore International Airport Limited (BIAL) from Siemens Project Ventures GmbH (Siemens) at a cost of Rs. 613.82 Crores. With this acquisition, GVKPIL would now have an effective stake of 43% in BIAL.

J Kumar Infraprojects gets Rs.1.83 bn orders

J. Kumar Infraprojects Ltd has informed BSE that the Company has received following work orders worth Rs.183.39 Crores: 1. Work Order from CIDCO worth Rs.145.69 Crores. 2. Work order from Pune Municipal Corporation worth Rs.24.70 Crores. 3. Piling work orders from various parties worth Rs.13.00 Crores.

Oil cos subsidised fuel sale loss slightly dn at Rs.2.6 bn/day

State-owned oil marketing companies' daily revenue loss on sale of subsidised fuels has come down marginally over the last fortnight to Rs.2.59 bn, a fall of 4.4%, following a dip in global crude oil prices coupled with exchange rate fluctuations in the preceding fortnight, an official told.

Oil min sought 140-bn-rupee Jul-Sep fuel compensation from fin min

The petroleum ministry has sought from the ministry of finance Rs.140 bn to partly compensate revenue losses incurred by public sector oil marketing companies on sale of diesel and cooking fuels at subsidised rates during Jul-Sep, petroleum secretary G.C. Chaturvedi told reporters on the sidelines of the Economic Editors' Conference.

Sobha Developers buys Pan Atlantic's 81% stake in SPV for $21 mn

Sobha Developers Ltd has bought Dubai-based Pan Atlantic Investments Ltd's entire 81% stake in the special purpose vehicleSobha Developers (Pune) Pvt Ltd, the Bengaluru-based real estate company said in a release.

Power regulator may impose penalty on 3 states for overdrawing power

The Central Electricity Regulatory Commission may impose penalty on Uttar Pradesh, Haryana and Rajasthan for overdrawing power from the northern grid during the recent electricity shortage. The electricity regulator has already issued notices to these states.

JNPT set to get invest board nod to widen Mumbai harbour channel

The Public Investment Board is set to approve Jawaharlal Nehru Port Trust's project for deepening and widening of the Mumbai harbour channel and JN Port channel (Phase II) with a revised estimated cost of Rs.15.46 bn.

NHAI to seek leeway on norms for public issue

The National Highways Authority of India will seek exemption from the SEBI on some of the norms to be followed before the public issue for Rs.100 bn tax-free infrastructure bonds.

Power Grid plans to enter generation business overseas

State-run power transmission utility Power Grid Corp of India Ltd plans to enter the power generation sector overseas. Power Grid plans to enter the power transmission business in Bangladesh and Sri Lanka by setting up companies there.

Finance ministry turns down railways' request for funds

The finance ministry has rejected the railway ministry's request for a loan of Rs.21 bn to cover development expenses. The railway ministry made the request in August saying it was falling short by that sum to meet its planned expenditure.

Source says Noida Toll Bridge expects to be debt free by Mar 2014

Noida Toll Bridge Co Ltd, which is currently undergoing a corporate debt restructuring programme, expects to repay its entire debt by Mar 2014, a person familiar with the development told. The operator of the toll bridge connecting Delhi to Noida is restructuring a total debt of around Rs.4 bn.



BP tells govt to develop new blocks to arrest D6 output fall

Reliance Industries' UK-based partner BP Plc has said the only way to arrest the decline in production from KG-D6 block is by developing new and satellite blocks. BP has hinted at conducting pre-development activities in this regard from December to Mar.

Indian Oil wants to get crude on credit

Indian Oil Corp Ltd has sought crude from Oil and Natural Gas Corp and Oil India Ltd on credit as long as the government does not transfer subsidy. Indian Oil's monthly bill on crude purchases from the two companies is Rs.12.67 bn and Rs.4.17 bn, respectively.

Govt says oil retailers' total borrow Rs.1.19 trn till Aug 31

The borrowings of state-owned oil marketing companies rose by over 23% from Mar 31 to Aug 31 due to mounting revenue losses on subsidized sale of diesel and cooking fuels, a government report ahead of the Economic Editors' Conference said.

HUL puts 3 prime Mumbai flats on sale, eyes at least Rs.100 mn

In line with the strategy to monetise some of its prime real estate assets in Mumbai, Hindustan Unilever Ltd has put on the block three residential apartments in south and central parts of the country's financial capital.

Indian Oil seeks RBI's direct dollar window to combat volatility

State-owned Indian Oil Corp Ltd has sought a direct dollar purchase window for its crude oil payments as depreciating rupee against the dollar is pressurising the company's finances.

IOC Paradip refinery ops put off by a yr as BHEL power unit delayed

The commissioning of Indian Oil's Paradip refinery project is likely to be deferred by over 12 months to Jun 2013, mainly because Bharat Heavy Electricals Ltd has not been able to complete its power plant at the refinery in time, a senior Indian Oil official told.

Environ min refuses green nod to Phase-I of HCC's Lavasa project

The environment ministry has refused to give clearance to the first phase of Lavasa Corp Ltd's Hill City project near Mumbai for not meeting set pre-conditions.

Essar Energy reinstates buy pact with Gujarat co for Salaya II unit

Essar Power Gujarat Ltd, the subsidiary of Essar Energy Plc, has reinstated a long-term power purchase agreement with Gujarat Urja

21oct2011182638_info-spectrum - 21st oct 2011

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