India Business Insight articles from February 2002

India Business Insight archives from February 2002

COMMENDABLE GROWTH: NICHOLAS PIRAMAL INDIA (recorded a 65% rise in its turnover at Rs218.33 crore in the quarter ended 31 Dec 2001).
February 28, 2002... Nicholas Piramal India Ltd (NPIL) recorded a 65 percent growth in its sales turnover to Rs218.33 crore in the 3 months ended 31 Dec 2001 (Rs132.50 crore in the 3 months ended 31 Dec 2000). Its net profit increased by 35 percent to Rs18.35...

RAPID PROGRESS: GUFIC BIOSCIENCES (recorded a 59% rise in its turnover at Rs1,037.47 lakh in the quarter ended Dec 2001).
February 28, 2002... Gufic Biosciences recorded a 59 percent increase in its turnover to Rs1,037.47 lakh in the 3 months ended 31 Dec 2001 (Rs651.49 lakh in the 3 months ended 31 Dec 2000). Its net profit increased by 413 percent to Rs60.53 lakh (Rs11.81 lakh)...

SALES AT A NEW HIGH: JYOTI STRUCTURES (recorded a 27% rise in its sales to Rs222.24 crore in the 9 months ended 31 Dec 2001).
February 28, 2002... Jyoti Structures recorded a 27 percent increase in its sales to Rs222.24 crore in the 9 months ended 31 Dec 2001 (Rs175.20 crore in the 9 months ended 31 Dec 2000). Its net profit was Rs4.58 crore (Rs6.25 crore). The company expects to...

SHARP DROP IN INCOME: MASCON GLOBAL (recorded income of Rs49.47 crore in the 3 months ended 31 Dec 2001).
February 28, 2002... Computer software company, Mascon Global of Chennai, recorded a fall in its income to Rs49.47 crore in the 3 months ended 31 Dec 2001 (Rs108.24 crore in the 3 months ended 31 Dec 2000). Its net profit fell by 78.41 percent to Rs5.07 crore...

BUCKING THE TREND: THE JAMMU and KASHMIR BANK (recorded a 41% rise in its net profit at Rs66.32 crore in the 3 months ended 31 Dec 2001).
February 28, 2002... The Jammu and Kashmir Bank (J and KB) of Srinagar recorded a 33 percent increase in its income to Rs398.75 crore in the 3 months ended 31 Dec 2001 (Rs297.74 crore in the 3 months ended 31 Dec 2000). Its operating profit was Rs136.54 crore...

SATISFACTORY PERFORMANCE: SHRENUJ and COMPANY (recorded a net profit of Rs2.09 crore in the 3 months ended 31 Dec 2001).
February 28, 2002... Shrenuj and Company (S and C) manufactures polished diamonds and studded jewellery. It recorded a net profit of Rs2.09 crore in the 3 months ended 31 Dec 2001 (Rs2.08 crore in the 3 months ended 31 Dec 2000) on a turnover of Rs53.89...

ZERO-DEBT STATUS: E MERCK (INDIA) (interest expenditure in the year ended 31 Dec 2001 fell to Rs55.77 lakh from Rs230.50 lakh).
February 28, 2002... E Merck (India) (EMI) recorded a growth of 8 percent in its turnover to Rs338.47 crore in the year ended 31 Dec 2001 (Rs313.41 crore in the year ended 31 Dec 2000). Its net profit increased to Rs44.71 crore (Rs38.54 crore) while its other...

DECLINING SALES: COLOUR-CHEM (sales turnover fell to Rs71.72 crore in the 3 months ended 31 Dec 2001 from Rs82.83 a year earlier).
February 28, 2002... The sales turnover of Colour-Chem fell to Rs75.72 crore in the 3 months ended 31 Dec 2001 from Rs82.83 crore in the 3 months ended 31 Dec 2000. Its other income fell to Rs3.37 crore (Rs4.23 crore) even as the company recorded a net profit of...

POOR SHOW: VANAVIL DYES and CHEMICALS (recorded a net profit of Rs16 lakh in the 3 months ended 31 Dec 2001).
February 28, 2002... Vanavail Dyes and Chemicals (VDC) recorded a net profit of Rs16 lakh in the 3 months ended 31 Dec 2001 (Rs1.37 crore in the 3 months ended 31 Dec 2000). Its net sales fell to Rs8.91 crore (Rs15.78 crore). Its earning per share, on an...

EXCELLENT THIRD QUARTER SHOW: INGERSOLL-RAND INDIA (recorded a 38% rise in its sales at Rs118.55 crore in the 3 months ended 31 Dec 2001).
February 28, 2002... Ingersoll-Rand India (IRI) has a strong presence in the Indian compressor and construction and mining equipment fields. It recorded a 38 percent increase in its sales to Rs118.55 crore in the 3 months ended 31 Dec 2001 (Rs85.75 lakh in the 3...

EMERGING KNOWLEDGE STATE OF INDIA: KARNATAKA (new industrial policy aims to attract investments of at least Rs20,000 crore per year).
February 28, 2002... Karnataka is the eighth largest State in India and is progressing rapidly to become the knowledge and technology State. During 1996- 1997 and 2000-2001, 21 large and mega industries were set up in the State with in investment of Rs8,682.62...

INFORMATION TECHNOLOGY CONSOLIDATION: BEGINNING OF THE END? (it has been projected that only around 50 information technology firms are likely to grow from 2003).
February 28, 2002... The information technology (IT) industry of India is consolidating. The performance of most of the companies in the 3 months ended 31 Dec 2001 has been depressing, with hundreds of companies, including Silverline Technologies, Tata Infotech,...

A VERITABLE TOURIST PARADISE: KARNATAKA TOURISM (Karnataka has been the first State in India to chalk out a cogent tourism policy).
February 28, 2002... Karnataka is the eighth largest State in India with several ancient temples, hill stations, tropical forests and wild life sanctuaries. It has been the first State in the country to formulate a cogent tourism policy and it has subsidised...

MUSHROOMING TERMINALS: BASE CORPORATION (has fabricated 69 Base terminals).
February 28, 2002... Base Corporation Ltd (BCL) of Bangalore has set up its branches in all major cities of India. It is the Indian marketing partner of Panasonic of Japan and Varta of Germany. It was the first to introduce the use of SLA-MF (UPS) in India. ...

GIANT STRIDES WITH GIANT MACHINES: TELCO CONSTRUCTION EQUIPMENT COMPANY (holds 66% share of the Hitachi excavators market).
February 28, 2002... Telco Construction Equipment Company (Telcon) will further consolidate its position as India's largest construction equipment manufacturer by introducing Euclid Hitachi dumpers EH- 600 and EH-650, motor graders and road equipment. It is...

TURNING ARID LAND INTO GREEN PARADISE: KRISHNA BHAGYA JALA NIGAM (project will irrigate 6,22,000 hectares of dry land on completion).
February 28, 2002... The Krishna Bhagya Jala Nigam (KBJN) project has been undertaken by the Karnataka Government to tap the water resources of the Krishna. It will irrigate 6,22,000 hectares of dry land on completion and is expected to increase the annual income...

ENSURES BALANCED GROWTH OF PROJECT: KARNATAKA RENEWABLE ENERGY DEVELOPMENT LIMITED (commissioned non-conventional energy projects of 34 megawatts during the first 3 months of 2001-2002).
February 28, 2002... Karnataka Renewable Energy Development Ltd (KREDL) was promoted by the Karnataka Government in 1996 to facilitate the development of non-conventional energy sources in the State by setting up projects to harness wind, water, co-generation,...

WHERE THERE'S A WILL, THERE'S A WAY: KUDREMUKH IRON ORE COMPANY (recorded a sales turnover of Rs583.03 crore in 2000-2001).
February 28, 2002... Kudremukh Iron Ore Company Ltd (KIOCL) produces iron ore concentrates of different specifications. It is India's largest 100 percent export-oriented unit with an annual turnover of Rs600 crore. It earns foreign exchange of about $140...

THRUST ON R and D: ASTRAZENECA PHARMA INDIA (plans to invest $5 million per year from 2001 to 2005 on discovery and research and development activities).
February 28, 2002... AstraZeneca Pharma India (AZPI) is a subsidiary of AstraZeneca AB of Sweden and has its basic research facility in India. It has already invested $10 million in setting up its research and development (R and D) infrastructure and plans to...

BASKING IN TECHCELLENCE: WIDIA INDIA (product portfolio includes a wide range of cutting and mining tools and special purpose machines).
February 28, 2002... Widia India is the largest subsidiary of Widia GmbH of Germany. Cincinnati Milacron Inc of the USA wholly owns Widia GmbH, giving the Indian company the advantages of German precision and American management principles. The product...

CARDAMOM EXPORTS UP (2002 promises to be fragrant).
February 28, 2002... For a long time, cardamom prices remained stagnant at Rs250-300 a kg and then shot up to Rs464 in Apr 1999-Mar 2000 and Rs574 in Apr 2000-Mar 2001. India exported 1,110 tonnes of cardamom in 2000-2001 and earned Rs56.55 crore as against...

ITC TO STEP UP NET INITIATIVES (choupal is its interface with the farmers).
February 28, 2002... ITC Ltd has provided farmers numbering 2,50,000 in 2,500 villages in Madhya Pradesh, Andhra Pradesh and Karnataka. In 2000, it used its choupals (coordinators) in Madhya Pradesh to guide and help the soya farmers through its...

PLANTATION SECTOR IN SOUTH INDIA HIT (statutory bonus not paid).
February 28, 2002... Seventy-one percent of India's major cash crops come from the plantation industry in south India. But in 2001, the plantation industry had a dire year, unable to pay even the statutory bonus, pending in some cases for two years. Worse still,...

PEPPER EXPORTS SLIDE DURING GLOBAL UPSWING (India exports six percent less in Jan-Sep 2001).
February 28, 2002... According to International Pepper Community of Jakarta, international pepper sales grew from 1,34,413 tonnes in Jan-Sep 2000 to 1,54,317 tonnes in Jan-Sep 2001. But India had no share in the rise, its exports declining from 19,004 tonnes to...

INDIA-NZ TO BOOST BILATERAL TRADE (through joint business councils).
February 28, 2002... India has asked the Minister for Commerce in the Government of New Zealand to restart the special ENZA scheme for exports of apples from Himachal Pradesh. The two countries want the bilateral trade between the two to spurt from the present...

CROPPING FOR CASH (Konkan and Goa still use seeds for planting).
February 28, 2002... Though grafted plants are a better source for growing cashew plants, Konkan and Goa still use cashew seeds for planting. Konkan Krishi Vidyapeeth has through continuous research now launched many varieties, most popular among them being...

WHO TO SOURCE HIV DRUGS FROM INDIA (as part of a major international initiative to provide medicines to AIDS-affected victims in African countries).
February 28, 2002... The World Health Organisation (WHO) plans to source 15 approved HIV/AIDS drugs from Indian drug companies. The sourcing of drugs is a part of a major international initiative to provide healthcare access and medicines to AIDS-affected victims...

CIPLA SETS ITS SIGHT ON INHALABLE INSULINS (working on both dry powder as well as aerosol delivery platforms for buccal and pulmonary absorption mechanisms).
February 28, 2002... Cipla is working on developing an inhalable form of insulin, which is heralded among the most interesting new therapeutical approaches. The company is working on both dry powder as well as aerosol delivery platforms for buccal and pulmonary...

THINKGEN EYES SINGAPORE FOR BIOINFORMATICS HUB (targets to set up hubs at eight locations in the first phase and 21 more in the second phase).
February 28, 2002... ThinkGen of Bangalore, a company that offers consulting and solutions to the pharma and biotech sectors, plans to set up a bioinformatics hub in Singapore. The company has targeted to set up hubs at eight locations in the first phase and 21...

ALEMBIC TIES UP WITH COGNIS FOR ISOVON (for importing soy isoflavones, the raw materials used in the manufacture of Isovon).
February 28, 2002... Alembic Ltd based in Gujarat has launched Isovon, used for the treatment of pre-menopausal and menopausal symptoms. The company has also entered into a tie-up with Cognis Health and Nutrition of the US for importing soy isoflavones, the raw...

CADILA TO SPREAD MARKETING WING TO EUROPE (targets a turnover of Rs1,000 crore by 2005).
February 28, 2002... Cadila Pharmaceuticals Ltd (CPL) of Ahmedabad plans to expand its operations to Europe, as part of its future growth plans. CPL has presence in various countries including Nigeria, Kenya, the US and Japan. The company is targeting a...

LYKA APPROVES JV WITH HETERO (to transfer its formulation business, valued at Rs65 crore, to the new company).
February 28, 2002... The Board of Lyka Labs of Mumbai has approved the proposal of the company entering into joint venture with Hetero Drugs of Hyderabad. As proposed, Lyka will hold a 49-percent stake in the venture with Hetero holding the remaining 51 percent....

CIBA'S GOREGAON PROPERTY SOLD (to realty firm Kingston Properties).
February 28, 2002... Ciba Speciality Chemicals has finalised the sale of its property in Goregaon, Mumbai, to realty firm Kingston Properties. Ciba had already received an advance payment of Rs4.06 crore in May 2001. In addition, it will receive Rs16.24 crore as...

BAL PHARMA TO ENTER AYURVEDIC NUTRACEUTICALS (targets a turnover of Rs100 crore within the next 2-3 years through these diversifications).
February 28, 2002... Bal Pharma Ltd of Bangalore is planning to enter the ayurvedic nutraceutical segment, as part of its diversification plans. It is targeting a turnover of Rs100 crore within the next 2-3 years through these diversifications. The company...

SEAGLAD LAUNCHES LACTOUP AND FREEJOINT POWDER (Freejoint is a combination of glucosamine with methyl sulphonyl methane).
February 28, 2002... Seaglad Pharmaceuticals of Chennai has launched Lactoup and Freejoint powder in the Indian market. Freejoint is a combination of glucosamine with methyl sulphonyl methane (MSM), fortified with vitamin C, calcium, proteins and minerals. ...

WHY BANGALORE IS SMILING: KARNATAKA INFORMATION TECHNOLOGY (contributes about 40% of India's total software exports).
February 28, 2002... Bangalore has been termed the information technology (IT) capital of India. The city is considered 1 of the top 10 technology cities in a survey the Business Week magazine has conducted. Bangalore contributed about 40 percent of India's...

RESTRUCTURING WITH A DIFFERENCE: VYSYA BANK (has embarked on an organisational restructuring exercise).
February 28, 2002... Vysya Bank (VB) of Bangalore has begun an organisational restructuring exercise. It is integrating products, process and procedures with the new technology. VB has already invested about Rs75 crore in technology during 2002. The...

CARVING ROLE IN NATIONAL ARENA: STATE BANK OF MYSORE (plans to upgrade its technological capabilities to introduce new products and services).
February 28, 2002... The State Bank of Mysore (SBM) plans to play an important role at the national level. The bank plans to increase its deposits to Rs9,965 crore and advances to Rs5,830 crore in 2003. SBM plans to upgrade its technological capabilities to...

ON THE MOVE: NATIONAL SKIN AND HAIR CARE CENTRE (plans to focus on sophisticated medicare of skin and hair on a national basis).
February 28, 2002... The National Skin and Hair Care Centre (NSHCC), a division of Skin and Hair Care Devices (India) Pvt Ltd, Bangalore, plans to focus on sophisticated medicare of skin and hair on a national basis. The centre offers treatment such as laser...

REACHING OUT TO COMMON MAN: KARNATAKA TELECOM CIRCLE (plans to provide Internet services to all towns in the State).
February 28, 2002... The Karnataka Telecom Circle, part of Bharat Sanchar Nigam Ltd (BSNL), provides telecom services in Karnataka covering 1,91,800 square kilometres. The circle is subdivided into 19 telecom districts or secondary switching areas serving a...

CREATOR OF DREAM HOUSES: KARNATAKA HOUSING BOARD (has undertaken an ambitious housing scheme at a cost of Rs850 crore).
February 28, 2002... The Karnataka Housing Board (KHB) has undertaken an ambitious housing scheme at a cost of Rs850 crore. As part of the scheme, KHB plans to construct 13,500 houses for various categories of income groups and form 15,000 sites of different...

UNIQUE INTRUSION DETECTION SYSTEM: nSECURE SOFTWARE (has designed and developed an ultra modern intrusion detection system, called nPatrol).
February 28, 2002... nSecure Software (P) Ltd, Bangalore, specialises in information security and Internet solutions and services. The company has designed and developed a state-of-the-art intrusion detection system called nPatrol.

PARKING SOLUTION PROVIDER: ARMATIC ENGINEERING (introduces a space saving solution to car parking problems).
February 28, 2002... Armatic Engineering Pvt Ltd, Bangalore, is engaged in design, manufacture and supply of custom-built material for handling equipment. The company's product range includes material handling devices for handling coils, slabs, ingots, truck...

TOTAL SOLUTIONS IN ELECTRICAL CONNECTIVITY: LAPP INDIA (has introduced the concept of total solution in electrical connectivity).
February 28, 2002... LAPP India Pvt Ltd (LIPL), Bangalore, a 100 percent subsidiary of the LAPP group of Germany, has introduced the concept of total solution in electrical connectivity in India. The company's products include cables, connectors, cable glands...

RESURRECTION WITH ADDED STRENGTH: VST TILLERS TRACTORS (plans to expand its presence in the power tiller and tractor segment).
February 28, 2002... VST Tillers Tractors, a joint venture of the VST group and Mitsubishi Corporation of Japan, plans to expand its presence in the power tiller and tractor segment. The company has an installed capacity of 10,000 units. The company...

STRIVING FOR A CLEANER ENVIRONMENT: BANGALORE WATER SUPPLY AND SEWERAGE BOARD (has established new waste treatment plants to meet the growing needs of Bangalore city).
February 28, 2002... The Bangalore Water Supply and Sewerage Board (BWSSB) provides potable water and sewerage facility to Bangalore city. It has undertaken a number of initiatives, ranging from the Cauvery Water Supply Scheme to the setting up of new waste...

BUILDING FRIENDSHIP WITH INDUSTRY: KARNATAKA STATE FINANCIAL CORPORATION (provides financial assistance for setting up tiny/small/medium-scale industrial units).
February 28, 2002... The Karnataka State Financial Corporation (KSFC) was established to provide monetary aid for setting up tiny, small and medium scale industrial units in Karnataka. The corporation has sanctioned about 1,60,000 loans since its inception....

BRAVE FIGHT AGAINST ODDS: HOTEL ABHISHEK (offers excellent setting, best quality food and personal attention).
February 28, 2002... Hotel Abhishek, Bangalore, is a 3-star hotel with 39 well- furnished rooms. The hotel also has a speciality restaurant, called Banjara. Hotel Abhishek is known for its excellent ambience, best quality food and personal attention.

TURNING DREAM INTO REALITY: MAINI GROUP (has launched the Reva, an electric car).
February 28, 2002... The Maini group, Bangalore, is a multi-product, multi-division enterprise with business interests ranging from manufacture of high precision products for the auto industry to electric inplant material handling equipment, granites, abrasives...

REVOLUTION IN COMFORT: KURLON (plans to diversify into designer furniture).
February 28, 2002... Kurlon Ltd, Bangalore, is a brand leader in rubberised coir mattresses. The company also plans to diversify into designer furniture using Italian technology, called Kurlocraft. Kurlon has 2 production units in Bangalore and Bhubneshwar, 4...

TOP-CLASS SERVICE ORIENTATION: VYSYA BANK HOUSING FINANCE (plans to provide a range of loans, such as personal loans, car loans and study loans).
February 28, 2002... Vysya Bank Housing Finance (VBHF), Bangalore, provides finance to the housing sector. The company sanctioned loans of Rs67 crore and disbursed Rs56 crore during 2000-2001. It also accepts deposits at attractive rates of interest. ...

TRANSLATING DREAMS INTO REALITY: CAN FIN HOMES (offers a unique on-the-spot, in-principle loan sanctions facility).
February 28, 2002... Can Fin Homes Ltd (CFHL) offers housing loans. It has a network of 42 offices across India. CFHL offers a unique on-the-spot, in- principle loan sanctions facility. The company has launched a unique all-India campaign-Can Fin Home...

SPREADING WINGS: WEIZMANN HOMES (made a net profit of Rs2.20 crore during the 9 months ended 31 Dec 2001).
February 28, 2002... Weizmann Homes Ltd (WHL), part of the Weizmann group, is a leading housing finance company. It provides loans for construction, purchase and renovation of residential units. WHL also offers loans for purchase of 2-wheelers, office...

QUALITY HUB OF THE WORLD: SOFTWARE TECHNOLOGY PARK OF INDIA -BANGALORE (connects all the information technology companies in Bangalore).
February 28, 2002... The Software Technology Park of India (STPI), Bangalore, has about 928 information technology (IT) companies. It added 165 companies in 200l. The STPI-Bangalore network connects all the IT companies in Bangalore through microwave or...

BUILDING BIOTECHNOLOGY ECOSYSTEM: SARTORIUS INDIA (plans to set up a mother biotechnology incubator).
February 28, 2002... Sartorius India Pvt Ltd (SIPL), part of the Sartorius group, exports engineering products and solutions to more than 20 countries. The activities of the group fall under the categories of biotechnology, mechatronics and environmental...

THIN CLIENT KING: VXL INSTRUMENTS (has a 65% share in the Indian thin client market).
February 28, 2002... VXL Instruments Ltd, Bangalore, manufactures thin clients. It has a 65 percent share in the Indian thin clients market and more than 1 percent share of the global market. The company is also engaged in high-end design and research in thin...

ECO-FRIENDLY PAINT COMPANY: SURFA COATS (plans to make building chemicals and sophisticated products in the decorative coatings segment).
February 28, 2002... Surfa Coats, Bangalore, makes cement paint and various allied products. Its customers include leading hotels, such as the Taj West End and Taj Residency, and corporate companies, like Infosys and Motorola, and public buildings and...

PIONEER OF PROFESSIONAL ELECTRONICS: BHARAT ELECTRONICS (is a multi-product, multi-unit electronics company).
February 28, 2002... Bharat Electronics Ltd (BEL), Bangalore, is a multi-product, multi-unit electronics company accredited with ISO 9001/9002 quality standards. The company designs, develops and manufactures state-of-the-art products, such as radars, night...

CONNECTED WITH NEW ECONOMY: NETWORK SOLUTIONS (plans to invest in software processes and tools).
February 28, 2002... Network Solutions Ltd (NSL), Bangalore, is an end-to-end solutions provider to call centres, banks and financial institutions (FIs). It plans to invest in software processes and tools during 2002. The company's networking services include...

FOCUS ON CORE COMPETENCY: KRONE COMMUNICATIONS (recorded a net profit of Rs15 million in the 3 months ended 30 Sep 2001).
February 28, 2002... Krone Communications, Bangalore, was established as a joint venture of Krone AG of Germany and Keonics. The company manufactures telecom/cabling-related equipment. The company's product portfolio is divided into 2-PremisNET and...

MAKING DREAM HOME A REALITY: VIBANK HOUSING FINANCE (plans to increase lending for housing by 51%).
February 28, 2002... Vibank Housing Finance Ltd (VHFL), a subsidiary of Vijaya Bank, provides long-term finance to individuals, corporate bodies and builders to enable them to purchase or build houses or flats. The plans to increase lending for housing by 51...

KEY DEVELOPMENTS: INDIAN OIL CORPORATION (acquires the Government's 33.58% stake in IBP Co Ltd).
February 28, 2002... Indian Oil Corporation (IOC), a public sector enterprise, has acquired the Government of India's 33.58 percent stake in IBP Co Ltd. It was the highest bidder for the Government's stake with a bid of Rs1,551.25 per share, in a deal aggregating...

KEY DEVELOPMENTS: RELIANCE INDUSTRIES LTD (to acquire stake in three oil and gas blocks in the Gujarat- Kutch and Krishna-Godavari basins).
February 28, 2002... The Government of India has cleared Reliance Industries Ltd's acquisition of stake in three oil and gas blocks in the Gujarat- Kutch and Krishna-Godavari basins. Reliance will acquire the stake from Tullow Oil Plc of Ireland. The company...

KEY DEVELOPMENTS: PORT SECTOR (norms eased for qualifying private operators for implementing projects in the major ports sector).
February 28, 2002... The Ministry of Shipping, Government of India has eased norms for private operators interested in undertaking projects in the major ports sector through the build-operate-transfer (BOT) route. Under the new norms, the cash accruals of the...

KEY DEVELOPMENTS: KOCHI INTERNATIONAL AIRPORT (appoints UTI Bank to find institutional investors to invest in the equity of the company).
February 28, 2002... The Kochi International Airport Ltd (KIAL) has entered into an agreement with UTI Bank. The agreement mandates UTI Bank to find institutional investors, both in India and abroad, to acquire equity stake in the company. KIAL plans to...

KEY DEVELOPMENTS: NAPHTHA (the MoF has extended full waiver of excise duties on naphtha for power generation).
February 28, 2002... The Ministry of Finance, Government of India has fully waived excise duties on naphtha for power generation. This had earlier attracted an excise levy of 27.6 percent. The exemption is applicable to all power plants that have already been...

KEY DEVELOPMENTS: MAHARASHTRA ELECTRICITY REGULATORY COMMISSION (rules that consumers will have to bear T and D losses with the MSEB, if losses cross the threshold limit of 26.87%).
February 28, 2002... The Maharashtra Electricity Regulatory Commission (MERC) has ruled that consumers will have to bear transmission and distribution (T and D) losses with the Maharashtra State Electricity Board (MSEB), if losses cross the threshold limit of...

KEY DEVELOPMENTS: ALSTOM POWER INDIA LTD (to be renamed Alstom Projects India Ltd).
February 28, 2002... The merger of Alstom Transport, Alstom Systems and Alstom Power Boilers with Alstom Power India Ltd (APIL) will increase Alstom's stake in the merged entity to 67 percent. It currently holds 50.99 percent stake in APIL. Following the...

KEY DEVELOPMENTS: BASPA II HYDEL PROJECT (Jaiprakash Industries is looking for fresh investments).
February 28, 2002... Jaiprakash Industries Ltd (JIL) has decided to offer collateral security to raise fresh term loans amounting to Rs1.67 billion for the Baspa II hydel project in Himachal Pradesh. The funds are being sought from banks and financial...

KEY DEVELOPMENTS: POWER GRID CORPORATION OF INDIA (launched commercial operations on the Delhi-Meerut telecom link on 18 Jan 2002).
February 28, 2002... The Power Grid Corporation of India (PGCI) launched commercial operations on the Delhi-Meerut telecom link on 18 Jan 2002. The link comprises 50 kilometres (kms) of underground and 100 kms of overhead optic fibre cabling. The PGCI has also...

KEY DEVELOPMENTS: PRAGATI POWER PROJECT (the first unit of the project commenced operations on 20 Feb 2002).
February 28, 2002... The 104-megawatt (MW) first unit of the Pragati power project commenced operations on 20 Feb 2002. The 330-MW Pragati power project is being set up at a cost of Rs11 billion. The second unit of the plant is scheduled to commence operations by...

KEY DEVELOPMENTS: INFRASTRUCTURE PROJECTS (RBI issues a notification relating to extension of financial assistance to infrastructure projects).
February 28, 2002... The Reserve Bank of India has issued a notification in Feb 2002 aimed at enforcing stricter internal assessments for extension of financial assistance to infrastructure projects. The notification requires all banks and financial...

KEY DEVELOPMENTS: BOT ROAD PROJECTS (Rajasthan has revised the policy for awarding road contracts under the BOT model).
February 28, 2002... The Government of Rajasthan has revised the policy for awarding road projects under the build-own-transfer (BOT) model. It has also identified thirty bridge and bypass projects for implementation under the new policy. The total cost...

KEY DEVELOPMENTS: SWARNA TOLLWAY LTD (CIDB Inventures of Malaysia has acquired 30% stake in the SPV).
February 28, 2002... CIDB Inventures of Malaysia has acquired 30 percent stake in Swarna Tollway Ltd, the special purpose vehicle set up to execute the National Highways Authority of India's (NHAI) projects in Andhra Pradesh. CIDB was part of a consortium of...

KEY DEVELOPMENTS: ROAD DEVELOPMENT (a consortium of EPL and UEB has bagged the order for four- laning three stretches between Haveri and Tumkur on NH-4).
February 28, 2002... A consortium comprising Essar Projects Ltd (EPL) and United Engineers Berhad (UEB) of Malaysia has bagged the order for four- laning three of the five stretches between Haveri and Tumkur on National Highway-4 (NH-4). The three stretches...

KEY DEVELOPMENTS: JAIPRAKASH ASSOCIATES (bags contract for developing the Delhi-Gurgaon expressway in alliance with DS Constructions).
February 28, 2002... A consortium comprising Jaiprakash Associates and DS Constructions has bagged the contract for developing the Delhi- Gurgaon expressway on National Highway-8 (NH-8). The consortium had made a payment offer of Rs610 million for the...

KEY DEVELOPMENTS: INTERNET SERVICE PROVIDERS (the Government will allow ISPs that have not yet launched their services to surrender their licences).
February 28, 2002... The Government of India has eased the exit policy for Internet service providers, who have not yet launched their services. It has said that these ISPs can surrender their licences by paying five percent of their performance bank guarantees....

KEY DEVELOPMENTS: ROAMING SERVICES (Trai sets new tariffs for roaming services).
February 28, 2002... The Telecom Regulatory Authority of India (TRAI) has ruled that cellular operators cannot charge over Rs3 per minute as airtime rates for national roaming (they currently charge as high as Rs10 per minute). It has also mandated that...

KEY DEVELOPMENTS: VSNL (Tatas have acquired 25% stake in the company).
February 28, 2002... The Tata Group has acquired 25 percent stake in Videsh Sanchar Nigam Ltd (VSNL) for Rs14.39 billion. This has given it access to gateways for international traffic, trained manpower, a widespread network, an existing customer base,...

KEY DEVELOPMENTS: RELIANCE COMMUNICATIONS LTD (plans to launch basic and NLD telephony services by the end of May 2002).
February 28, 2002... Reliance Communications Ltd has entered into a licence agreement with the Department of Telecommunications (DoT) to launch national long distance (NLD) services in India. The company has paid Rs1 billion as entry fee and Rs4 billion as...

KEY DEVELOPMENTS: HUTCHISON TELECOM INTERNATIONAL (finalises a deal with Essar Teleholdings to consolidate their cellular businesses into a single entity).
February 28, 2002... Hutchison Telecom International and Essar Teleholdings have entered into an agreement to consolidate their cellular businesses into one entity. The merged entity is likely to be values at about $2.2 billion. It is also expected to make its...

KEY DEVELOPMENTS: CELLULAR TARIFFS (on prepaid cards slashed in both Delhi and Mumbai circles after the launch of Trump from MTNL).
February 28, 2002... Launch of its low-priced cellular service-Trump by Mahanagar Telephone Nigam Ltd (MTNL) has prompted Bharti and Essar, its competitors in the Delhi circle, to announce a 46-percent reduction in airtime rates on their pre-paid cellular cards....

KEY DEVELOPMENTS: KONKAN RAILWAY CORPORATION (gets approval in principle for launching its sky bus metro system project in Delhi).
February 28, 2002... The Government of Delhi has given in-principle approval to the Konkan Railway Corporation Ltd's (KRCL's) proposed sky bus metro system project. The project is expected to cover 124.9 kilometres (km) and cost Rs66.2 billion. It is...

KEY DEVELOPMENTS: INDIAN RAILWAYS (Planning Commission is likely to grant an annual plan support of Rs70 billion for the Railways for 2002-2003).
February 28, 2002... The Planning Commission is likely to allot an annual plan support of Rs70 billion for the Indian Railways for 2002-2003. This is a 100- percent increase over the allotment of Rs35.4 billion made for 2001-2002. However, it is lower than...