India Business Insight articles from March 2002, page 5

India Business Insight archives from March 2002

IFC BACKS OUT OF EXPOSURE PLAN IN TATA HOME FINANCE (IFC was supposed to have infused Rs9.5 crore for picking up a 19 percent stake).
March 29, 2002... International Finance Corporation (IFC), the private financing arm of the World Bank, has backed out of negotiations for acquiring a 19 percent stake in Tata Home Finance (THF). IFC was supposed to have infused Rs9.5 crore for picking up a...

CASH FUND LARGESSE HAS AN AGENDA (Birla Cash Plus has declared a 22.7 percent dividend).
March 29, 2002... The Indian mutual fund industry has witnessed over 150 dividend announcements by various schemes in Mar 2002 alone. Of these, more than 100 are short-term or liquidity schemes, which are attracting large inflows. These liquid schemes of...

PRICE OF PASSPORTS INCREASED FROM Rs300 TO Rs1,000 (district headquarters in all states empowered to accept passport applications).
March 29, 2002... The Government of India has increased the price of acquiring passports from Rs300 to Rs1,000 with effect from 1 Apr 2002. The fees for Jumbo passports containing 60 pages has been increased from Rs800 to Rs1,500. It has also announced a...

DATA ACCESS GETS LICENCE FOR GLOBAL SERVICES (it has invested Rs100 crore and intends to commence ILD operations by Apr 2002).
March 29, 2002... Data Access, a joint venture between SPA Enterprises and PCCW of Hong Kong, has received the licence to operate international long distance (ILD) services. The company has been granted the licence after pay the entry fee of Rs25 crore...

PROTOCOL TELE TIES UP WITH OPENTIDE (to jointly set up a concept centre at Bangalore).
March 29, 2002... Protocol Telecom Solutions (India) has entered into an alliance with OpenTide, a Samsung SDS company, to commence operations in India. Protocol Telecom and OpenTide would jointly be setting up a concept centre at Bangalore. Protocol will be...

KSHEMA TECH TO ADD NEW SERVICES TO ITS PORTFOLIO (to provide embedded software for industrial equipment).
March 29, 2002... Kshema Technologies of Bangalore has added new service offerings like testing and validation, engineering design and quality consulting to its portfolio. The company has also entered new segments like industrial automation and niche...

DOMESTIC COMPUTER MAKERS UNFAZED BY CHINESE THREAT (Chinese PCs are 25-30 percent cheaper than Indian brands).
March 29, 2002... The possible entry of two Chinese personal computer manufacturers - Legend Computer System and China Great Wall Computer-into the Indian market does not seem to worry local manufacturers. Chinese PCs are 25-30 percent cheaper than Indian...

MOSCHIP SHAREHOLDERS GIVE NOD TO PREF ISSUE (the company expects to complete the allotment of shares by the end of Apr 2002).
March 29, 2002... MosChip Semiconductor Technology has obtained approval from its shareholders for a preferential issue of equity shares and warrants. The company expects to complete the allotment of shares by the end of Apr 2002, but will issue warrants only...

STERLING READIES TO ENTER ILD, 3G, BASIC TELE SERVICES (it currently provides cellular mobile services in Tamil Nadu through Aircel).
March 29, 2002... Sterling Infotech is getting ready to foray into basic telecom services, international long distance services and third generation wireless services. The company has received approval from the Foreign Investment Promotion Board to bring...

TP CELL TO BE SET UP TO MAN CROSS-BORDER TRANSACTIONS (transfer pricing is a new concept in the Indian tax regime).
March 29, 2002... The Central Board of Direct Taxes, Government of India, intends to establish an exclusive transfer pricing cell to deal with cross border transactions by Oct 2002. An exclusive cell manned by officers specialising in the subject is...

KARNATAKA SEES TOURISM SUN RISING (European tour operators interested in making Hampi a part of their India package).
March 29, 2002... The Karnataka Tourism Department says that leading European tour operators like TUI have shown interest in making Hampi an integral part of their India package. TUI is sending a delegation to India in Sep 2002 to visit Karnataka on a...

CHARGESHEET NOT TO STOP RIL FROM BIDDING FOR PSUs (documents recovered during CBI raids do not relate to the IPCL bid).
March 29, 2002... Officials of the Government of India say that Reliance Industries Ltd (RIL) is unlikely to be barred from the disinvestment process for public sector units despite being chargesheeted by the CBI under the Official Secrets Act. RIL is...

COURT ALLOWS CUSTOMS DEPT TO ENCASH DPC GUARANTEE (DPC will have to pay an additional duty of Rs246 crore if the customs departments wins).
March 29, 2002... The Bombay High Court has issued an interim order permitting the Customs Department to encash a bank guarantee of Rs72.5 crore provided by Dabhol Power Company (DPC) in the ongoing legal battle over misdeclaration in imports of liquefied...

MUMBAI, NEW DELHI BECOME CHEAPER PLACES TO LIVE IN (downtown Mumbai has slipped to eleventh position in occupancy costs).
March 29, 2002... A comparison of occupancy costs (rentals) across 155 prominent metros globally shows that downtown Mumbai has slipped from seventh position in Jan 2001 to eleventh position in Jan 2002 while New Delhi, which was ranked as the 28th most...

BANKMUSCAT MULLS LOCAL ARM TO INCREASE PRESENCE (the bank is open to the idea of bringing in an Indian partner for such a venture).
March 29, 2002... BankMuscat, which presently operates out of Bangalore, is thinking of setting up a local subsidiary to increase its presence in India. The bank is open to the idea of bringing in an Indian partner for such a venture. It is also considering a...

CENTURION LIKELY TO PLACE 26% STAKE WITH MORE THAN 1 SUITOR (HSBC and ABN Amro are interested in acquiring a stake in Centurion Bank).
March 29, 2002... Centurion Bank is considering a proposal to allot the 26 percent equity stake, pledged by TCFC Finance, with more than one strategic partner. Keppel (Singapore) holds a 17.7 percent stake in Centurion Bank, International Finance Corporation...

STERLITE TO RAISE Rs150-CRORE DEBT TO FUND HZL BUY (plans to pay the government the entire amount of Rs445 crore by the first week of Apr 2002).
March 29, 2002... Sterlite Industries plans to raise Rs150 crore from the debt market to part-finance the Rs445 crore acquisition of the Government of India's 26 percent stake in Hindustan Zinc Ltd. The balance is to be met through equity, which would come...

SAHARA GROUP MAY HAVE PICKED UP 3% IN INDUSIND (it is believed to have picked up this stake from the open market at Rs16-17 per share).
March 29, 2002... The Sahara Group is reported to have recently acquired around three percent stake in IndusInd Bank. Market sources say that the group has picked up this stake from the open market at Rs16-17 per share. This move comes at a time when the...

A-I EYEING 2% TRAFFIC GROWTH (intends to lease 1-2 aircraft more in order to meet additional demand towards end-2002).
March 29, 2002... Air-India has projected a two percent growth in traffic for 2002- 2003. The airline intends to lease 1-2 aircraft more in order to meet additional demand towards end-2002. It is also preparing to restructure its frequent flying programme with...

MFs ANNOUNCE Rs1,000-CRORE DIVIDENDS IN RUSH TO BEAT TAX (dividends become taxable in the hands of shareholders from 1 Apr 2002).
March 29, 2002... Mutual funds in India have announced dividends amounting to almost Rs1,000 crore under all their debt-oriented schemes in order to beat the deadline of 31 Mar 2002, when dividends become taxable in the hands of shareholders. Mutual funds do...

BAYER PUTS Rs1,460-CRORE POLYCARBONATE UNIT ON HOLD (the group has doubts over the feasibility of the project).
March 29, 2002... Bayer AG of Germany has decided to put on hold its planned investments of Rs1,460 crore to set up a polycarbonate manufacturing unit in India. This move is a fallout of the global restructuring in the German conglomerate as well as doubts...

CANARA BANK, BoB REDUCE DEPOSIT RATES (they have left their lending rates untouched).
March 29, 2002... Canara Bank and Bank of Baroda (BoB) have reduced their deposit rates but have left their lending rates untouched. Both the banks have reduced their deposit rates by 25 basis points, effective from 1 Apr 2002. BoB will offer 7.75 percent on...

`UTI BOARD REVAMP LED TO SBI CHIEF, OTHERS RESIGNING' (UTI's board of trustees intends to have more professionals from accounting, law, management).
March 29, 2002... Mr M Damodaran, chairman of the Unit Trust of India (UTI), says that resignation of the chairmen of the State Bank of India, Industrial Development Bank of India and Life Insurance Corporation of India from UTI's board of trustees is a result...

COS CAN ISSUE WARRANTS AS PART OF FDI (pricing of the detachable warrants should comply with SEBI rules).
March 29, 2002... The Government of India has announced that companies would be allowed to issue warrants on preferential basis and detachable warrants to foreign investors as part of foreign direct investment. But 10 percent of the price fixed for the...

PNB's PUBLIC ISSUE OVERSUBSCRIBED (first IPO by a bank at a premium in the last three years).
March 29, 2002... The maiden initial public offering (IPO) of Punjab National Bank (PNB) has received a huge oversubscription. The bank's Rs165 crore public issue of shares at a premium of Rs21 per share opened on 21 Mar 2002 and closed on 28 Mar 2002....

Re ENDS AT 48.80 (dollar suppliers were very strong on 28 Mar 2002).
March 29, 2002... The rupee closed at 48.7950/80 against the dollar in the interbank foreign exchange market at Mumbai on 28 Mar 2002. Dealers said that the rupee was quoted at 48.8050/81 in early deals as dollar remittances from exporters entered the market....

KPA WELCOMES AIT WAIVER, WANTS IT TO BE ENHANCED (this would benefit the 1,700 holdings of between 25 acres and 50 acres each in Karnataka).
March 29, 2002... The Karnataka Planters' Association (KPA) has welcomed the waiver of agricultural income tax (AIT) on Karnataka coffee growers with holdings of up to 50 acres by the state government. This waiver would benefit the 1,700 holdings of between...

`PATENTS BILL MAY DENY POOR ACCESS TO LIFE-SAVING DRUGS' (as the legislation does not take into account the Doha declaration on the TRIPs agreement).
March 29, 2002... Narendra Zaveri, who has researched trademark and patent laws in relation to the pharmaceutical industry over the last 40 years, has warned that the Patents (second amendment) Bill, recently revised by the Joint Parliamentary Committee, could...

VOLTAS DONS NEW ROLE TO TARGET OLD FAITHFUL (to enter the retail end of the white goods business through room air-conditioners).
March 29, 2002... Voltas Ltd, a Tata Group company, has decided to exit from the consumer durable business and concentrate on industrial air- conditioning. It has roped in Euro RSCG to spearhead the image change, by which it will enter into the retail end of...

BROKERS PANIC AS TAXMEN SEEK DETAILS ON CLIENTS (Department of Income Tax seeks details of clients who have carried out transactions of over Rs20,000 per year).
March 29, 2002... The Department of Income Tax, as per the instructions of the Ministry of Finance, Government of India, has served a notice to all stockbrokers, seeking details of clients who have carried out transactions worth more than Rs20,000 in a year....

CRB CAPITAL PLANS NEW SCHEME FOR REPAYMENT (scheme will have to be approved by the secured and unsecured depositors).
March 29, 2002... CRB Capital has prepared a detailed scheme to repay money to its depositors and bondholders. The scheme will have to be approved by the secured and unsecured depositors. The meeting of the secured creditors is scheduled for 1 Jul 2002, while...

GOVT MAY CONSIDER EXCISE DUTY CUT TO CHECK PETRO PRICES (and to balance the effect of volatilities in the international oil market on the domestic petro prices).
March 29, 2002... The Ministry of Petroleum (MoP), Government of India is considering a cut in excise duties as one of the options available to it to balance the effect of volatilities in the international oil market on the domestic prices of petroleum...

NEW PRICING MECHANISM FOR IPCL FEEDSTOCK BY APRIL 2 (the Government has directed ONGC and IPCL to devise a new pricing mechanism for feedstock supplies by 2 Apr 2002).
March 29, 2002... The Government of India has directed the Oil and Natural Gas Corporation (ONGC) and Indian Petrochemicals Corporation Ltd (IPCL) to devise a new pricing mechanism for feedstock supplies by 2 Apr 2002. Currently ONGC supplies the feedstock to...

SBI CAPS APPOINTED GLOBAL ADVISERS FOR MECON SELLOFF (the Government has decided to offload 51% stake in the company in favour of a strategic partner).
March 29, 2002... The Government of India has appointed SBI Caps as the global adviser for the privatisation of MECON Ltd, a loss-making engineering consultancy company. The Government has decided to offload 51 percent stake in the company in favour of a...

INDIAN OIL PLANS TO ENTER NEW MARKETS OVERSEAS (plans to invest Rs85 crore to set up oil terminals and retail outlets in Mauritius).
March 29, 2002... Indian Oil Corporation (IOC) is planning to set up a retail presence in Mauritius as part of its plans to promote its retail business aggressively by entering into new markets. The company plans to invest Rs85 crore to set up oil terminals...

Dr REDDY'S LAUNCHES DRUG FOR CHRONIC CANCER (has launched Bicalutamide, a once-a-day generic drug indicated in the treatment of advanced prostate cancer).
March 29, 2002... Dr Reddy's Laboratories Ltd (Dr Reddy's) has launched Bicalutamide under the brandname, Tabi. Bicalutamide is the generic version of AstraZeneca's Casodex. It is indicated in the treatment of advanced prostate cancer. Its once-a-day...

APOLLO HOSPITALS SET TO EXECUTE 19 PROJECTS IN TWO YEARS (including three overseas).
March 29, 2002... Apollo Hospitals Ltd (AHL) of Chennai has said that as part of its expansion plans, it will execute 19 new projects by 2003. The projects will be implemented in two phases and will result in the number of beds under the Group's management...

ITDC EYES Rs115-CR TURNOVER; TO REVAMP ITS DUTY-FREE SHOPS (plans to launch a perfume and cosmetic boutique at the Delhi international airport in Apr 2002).
March 29, 2002... The India Tourism Development Corporation (ITDC) is upgrading its duty-free retail business at the Delhi international airport. As part of the revamp, it is launching an exclusive wine counter and a perfume and cosmetic boutique at the...

GOOD HEALTH AGRO'S Rs9-CR UNIT STARTS PRODUCTION (Nikhil Refineries will produce refined palmolein, soyabean and sunflower oils).
March 29, 2002... Good Health Agrotech Ltd has commissioned its new edible oil refining unit, Nikhil Refineries Ltd, near the Kakinada port in Andhra Pradesh. The unit, set up with an investment of Rs9 crore, has the capacity to produce 200 tonnes of edible...

SOVL PLANS TO HAVE Rs275-CR CAPITAL FOR HZL ACQUISITION (which is likely to be used in full to fund the acquisition of the Government's 26% stake in HZL).
March 29, 2002... Sterlite Opportunities and Ventures Ltd (SOVL), the Sterlite Group's special purpose vehicle for mergers and acquisitions, will have an equity capital base of Rs275 crore. Sterlite is expected to lever up on its subsidiary's equity capital to...

INDAL EXPECTS ORISSA UNIT OUTPUT TO DOUBLE (to 57,000 tpa by Feb 2003).
March 29, 2002... Indian Aluminium Company Ltd (Indal) has said that the capacity of its Hirakud smelter in Orissa will almost double to 57,000 tonnes per annum (tpa) by Feb 2003 (30,000 tpa now). The company has said that it will complete the process of...

SIENA TO BE RELAUNCHED WITH PALIO ENGINE (to be priced at about Rs5 lakh for the base model).
March 29, 2002... Fiat India Ltd plans to relaunch its Siena car model with the 1.2- litre and 1.6-litre Palio petrol engines. The new Siena, to be launched with spruced-up exteriors and interiors, will be priced at about Rs5 lakh for the base model. The...

HM TO ROLL OUT TOP-END LANCER VARIANT (likely to be priced at about Rs12 lakh).
March 29, 2002... Hindustan Motors Ltd (HML) is working on a top-end variant of its Lancer car model, which will be positioned to fill the gap between the existing Lancer (Rs10 lakh) and Hyundai Sonata/Honda Accord (Rs13-15 lakh). The top-end variant is...

STERLITE MAY INCREASE STAKE IN HZL BY OVER 60% (after 20 percent mandatory public offer and 18.92 percent hold and call option).
March 29, 2002... The Sterlite group, on 28 March 2002, acquired 26 percent stake of Government of India in the public sector Hindustan Zinc Limited (HZL). It will also have the management control. The Sterlite group acquired the Government's stake at Rs40.54...

EXCISE CUT ON PETRO PRODUCTS ON THE CARDS (excise duty reduction is the only instrument available for Government to check price rise).
March 29, 2002... With the deregulation of petroleum products' prices from 1 Apr 2002, the Government of India feels there should be stability in prices and any change in prices should not be too frequent and should be effected once in a month or once in...

EXIM BANK MAY EXIT FROM ZIMBABWE JV (as no Indian interest is involved in Caps Zimbabwe with the exit of Tatas).
March 29, 2002... The Export-Import Bank of India has decided to come out of the pharmaceutical joint venture in Zimbabwe, Caps Zimbabwe. Caps Zimbabwe is the largest pharmaceutical marketing venture in Zimbabwe. Rallis India had acquired 40 percent stake and...

Rs58.50-CR FDI OF CDP MEDIA CLEARED (for acquiring 100 percent equity in UTV Software Communications of Mumbai).
March 29, 2002... The Commerce and Industry Ministry of Government of India has given go ahead for Mauritius-based CDP Media Holdings (CMH) to invest Rs58.50 crore for acquiring 100 percent equity in UTV Software Communications of Mumbai. The amount will...

BOMBAY HIGH COURT REJECTS L and T PETITION (on a case of cheating and criminal conspiracy filed by Everest Media Limited).
March 29, 2002... Everest Media Limited (EML) had filed a criminal case against the Larsen and Toubro Limited (L and T) and six of its directors in Girgaum Metropolitan Magistrate's court for cheating and criminal conspiracy. EML had claimed that by...

AGRICULTURE SECTOR LEADS ECONOMIC GROWTH (agriculture and allied sector achieves 7.1 percent growth during Oct-Dec 2001).
March 29, 2002... The growth of gross domestic product (GDP) has gone up to 6.3 percent during Oct-Dec 2001 quarter (3.4 percent in Oct-Dec 2000) due to excellent performance by the agriculture and allied sector. The agriculture and allied sector achieved...

ETERNAL DREAMS TAKES OVER BASU'S TARA MARATHI (channel has been relaunched with a new logo).
March 29, 2002... Eternal Dreams, a media marketing company, has acquired Tara Marathi channel of Broadcast Worldwide. Broadcast Worldwide was promoted by Rathikant Basu. The channel has been relaunched with a new logo. Eternal Dreams will be in charge of...

HOTEL CHAINS PLAN RESORTS AT HAMPI (talks to be held with State Government in Apr 2002).
March 29, 2002... Kempinski Hotels and Resorts Limited, a subsidiary of Swiss hotel chain Kempinski Hotels and Leela Venture group have come forward to set up upmarket resorts for foreign travellers at Hampi in Karnataka. The officials of the two companies had...

PROTOCOL TIES UP WITH OPENTIDE (OpenTide will bring Enterprise Relationship Management solution suite).
March 29, 2002... Protocol Solutions (India) Private Limited (PSPL) has struck a strategic deal with OpenTide (a Samsung SDS company) to launch its operations in India. OpenTide will set up a concept centre in Bangalore jointly with PSPL. OpenTide...

IBM TO BUILD E-BUSINESS INFRASTRUCTURE (releases wide range of software solutions to ensure robust, secure and scalable e-business infrastructure).
March 29, 2002... The IBM has released wide range of software solutions to ensure robust, secure and scalable e-business infrastructure. These solutions cater to web management, security, data protection and recovery, storage management, quality of service,...

INFOSYS, NMIS PLAN ONLINE TRANSFER OPTION (to help customers of NMIS variable life and annuity policyholders to make immediate fund transfers).
March 29, 2002... Infosys Technologies Limited and Northwestern Mutual (NMIS) have tied up to develop and launch an online funds transfer option. This would help customers of NMIS variable life and annuity policyholders to make immediate fund transfers by...

DUMPING CHARGE ON PET: FUTURA POLYMERS GIVES UNDERTAKING TO EU (price undertaking means that the company will not export PET to the EU below a fixed price).
March 29, 2002... Futura Polymers, the Chennai based subsidiary of Indian Organic Chemicals Ltd, has submitted a price undertaking to the European Community after it was found that the company was dumping polyethylene terephthalate (PET) into the European...

KERALA TO APPROACH AAIFR ON TRAYONS CLOSURE ORDER (decision follows after a revival proposal from a Coimbatore entrepreneur for the ailing unit).
March 29, 2002... The Kerala State Government will appeal to the Appellate Authority for Industrial and Financial Reconstruction against the closure order, dated 31 Jan 2002, issued to the sick Travancore Rayons Ltd (Trayons) by the Board for Industrial and...

IDBI TO EXAMINE IDPL PLEA ON SALE OF SHARES (to settle the dues of Andhra Pradesh Gas Power Corporation Limited).
March 29, 2002... The Board for Industrial and Financial Reconstruction (BIFR) has directed the Industrial Development Bank of India (IDBI) to examine the Indian Drugs and Pharmaceuticals Ltd's (IDPL) request to sell its shares to settle the dues of Andhra...

THE 'A1+' RATING FOR H and R JOHNSON (rating for CP programme of Rs25 crore).
March 29, 2002... ICRA has reaffirmed 'A1+' rating to the Rs25 crore commercial paper (CP) programme of H and R Johnson India Ltd, a leading player in the ceramic industry with strong brand image and wide retail reach. The rating has considered the stand-by...

HIND SANITARYWARE CP ASSIGNED 'A1+' (rating considered the strong brand image of the company).
March 29, 2002... The Rs35 crore commercial paper (CP) programme of Hindustan Sanitaryware Industries Ltd has been given 'A1+' rating by ICRA. The NCD programme of the company has a 'LA-' rating from ICRA. The rating considered the strong brand image of the...

AUROBINDO PHARMA NCD RATED 'LAA' (rating factors the company's proven re-engineering capabilities and its cost competitiveness).
March 29, 2002... ICRA has reassigned the 'LAA' rating to the Rs10 crore NCD programme of Aurobindo Pharma Ltd and has affirmed 'A1+' rating to its Rs40 crore commercial paper (CP) programme. The rating factors the company's proven re-engineering capabilities...

NIKHIL, ACALMAR EDIBLE OIL REFINERIES GO ON STREAM (expect great future with a large demand-supply gap).
March 29, 2002... Nikhil Refineries Ltd, a project promoted by the Hyderabad-based Good Health Agro Tech Ltd and Acalmar Oils and Fats Ltd (Acalmar), owned by a Singapore company, commissioned their operations on 29 Mar 2002 in Kakinada, Andhra Pradesh. With...

HPCL TENDERS TO SELL NAPHTHA (for 20-24 Apr 2002 lifting from Visakhapatnam).
March 29, 2002... Hindustan Petroleum Corporation Ltd (HPCL) has offered a tender to sell 30,000 tonnes of low aromatic naphtha for 20-24 Apr 2002 lifting from Visakhapatnam. The tender requested bids on a differential to West Asia, Japan or Singapore are on...

9-GROUP NORM FOR UREA RETENTION PRICE PROPOSED (which may usher significant changes in the 5-group formula proposed under the Group Concession Scheme).
March 29, 2002... The recommendations of the Department of Fertilisers of the Government of India for a 9-group classification is likely to bring about significant changes in the 5-group formula proposed under the Group Concession Scheme (GCS) of the...

NAIK TO TAKE UP PETROLEUM PRODUCT PRICING WITH SINHA (to retain the prices of kerosene, LPG, diesel and petrol fixed on the basis of global crude oil price of $19 per barrel).
March 29, 2002... The Minister of Petroleum of the Government of India, Ram Naik, is to discuss the issue of fiscal intervention with the Finance Ministry, Yashwant Sinha, to ensure that the prevailing prices of kerosene, liquefied petroleum gas (LPG), diesel...

RPL SIGNS DEALS WITH PUBLIC SECTOR OIL UNITS (to sell 13.1 million tonnes of petroleum products from its Jamnagar refinery per year from 1 Apr 2002).
March 29, 2002... Reliance Petroleum Ltd (RPL) has signed individual 2-year contracts with Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) to sell 13.1 million tonnes of petroleum products...

ANTI-DUMPING DUTY ON CAUSTIC SODA IMPORTS ($48.5 per tonne on the caustic soda of Qatar Vinyl Company Ltd and $58.6 per tonne on that of other firms of Qatar).
March 29, 2002... The Revenue Department of the Government of India has levied provisional anti-dumping duty on all imports of caustic soda from Qatar, based on the recommendations of the designated authority in the Commerce and Industry Ministry. A...

GAS SUPPLY TO GANDHAR, NAGOTHANE PLANTS: IPCL, ONGC TO WORK OUTPRICING FORMULA (the supply accord will be for 10 years and logically related to a product, preferably gas).
March 29, 2002... Indian Petrochemicals Corporation (IPCL) and Oil and Natural Gas Corporation (ONGC) plan drafting the pricing formula for a long- term gas supply from ONGC to the Gandhar and Nagothane plants of IPCL. This was decided at the meeting between...

CHENNAI PETRO MoU SETS LOWER TARGET FOR 2002-2003 (7.6% lesser throughput of 6.643 million tonnes of crude oil).
March 29, 2002... Chennai Petroleum Corporation Ltd (CPCL) and the Ministry of Petroleum and Natural Gas of the Government of India have signed a memorandum of understanding (MoU). According to the MoU for 2002-2003, CPCL has a target of 7.6 percent...

BAYER INDIA NET PROFIT, SALES UP (net profit of Rs9.17 crore on net sales of Rs700.26 crore in the year ended 31 Dec 2001).
March 29, 2002... Bayer (India) Ltd has recorded a net profit of Rs9.17 crore in the year ended 31 Dec 2001 (Rs7.26 crore in the year ended 31 Dec 2000) on net sales of Rs700.26 crore (Rs623.89 crore). In the fourth quarter ended 31 Dec 2001, the company...

THE GAMEPLAN BEHIND HINDUSTAN ZINC BUY (by Sterlite Industries Ltd purchasing Hindustan Zinc Ltd shares for Rs40.51 each when the average price was Rs23.3).
March 29, 2002... Sterlite Industries Ltd (SIL) acquired 26 percent stake in Hindustan Zinc Ltd (HZL) for Rs445 crore at Rs40.51 per share when the weighted average price was Rs23.3 per share. The acquisition allows SIL, a copper major, to gain control of...

DEEPAK FERTILISERS TO EXPAND CAPACITY (by 30,000 tonnes from 70,000 tonnes a year of prilled ammonium nitrate at its plant in Taloja).
March 29, 2002... Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPC) proposes to expand its prilled ammonium nitrate production capacity by 30,000 tonnes a year from 70,000 tonnes a year at Taloja in Maharashtra. The estimated Rs55-crore expansion...

DRL LAUNCHES NEW DRUG (Tabi used in the treatment of prostate cancer).
March 29, 2002... Dr Reddy's Laboratories Ltd (DRL) is introducing Tabi (bicalutamide) in India. Tabi, indicated in the treatment of prostate cancer, will be available in the form of 50-gram tablet. Globally, bicalutamide, the anti-androgen therapy, with...

ICICI, IDBI TO PROVIDE Rs5,000 CRORE TO CLEAN UP BALANCE SHEETS (accelerated provisioning in 2001-2002 to wipe out bad debts).
March 29, 2002... ICICI Ltd and ICICI Bank are making a provision of Rs2,500 crore to wipe out the bad and doubtful assets from their balance sheets for 2001-2002 ahead of their merger. ICICI Ltd made the normal provision of Rs312.04 crore and ICICI Bank,...

I-T NOTICES FOR BROKING DEALS OVER Rs20,000 (asking for details of transactions worth Rs20,000 and over during Apr 2001-Feb 2002).
March 29, 2002... The Department of Income Tax, Government of India, has issued notices asking stockbrokers to submit details of transactions worth Rs20,000 and above during Apr 2001-Feb 2002. It has also directed them to file soft copies of details of such...

10% CREEPING ACQUISITION LIMIT EXTENDED TO SEPT 30 (extension of six months from 1 Apr 2002).
March 29, 2002... The Securities and Exchange Board of India (SEBI) had raised creeping acquisition limit from five percent to 10 percent in Oct 2001, valid up to 31 Mar 2002. It has extended its validity up to 30 Sep 2002. Not many companies had taken...

UTI BORROWS Rs350 CRORE TO MEET PRESSURE (borrowing for 90 days to meet redemption demands of its schemes).
March 29, 2002... Unit Trust of India (UTI) has borrowed Rs350 crore from Bank of Baroda (BoB) for 90 days at 8.75 percent to meet redemption demands of its schemes. It has given a margin of 10 percent and pledged government securities for the loan. ...

DUTY CUTS MAY BE USED TO EASE OIL PRICES, SAYS NAIK (Ministry of Petroleum and Natural Gas to move the Ministry of Finance whenever the situation demands).
March 29, 2002... The Government of India may reduce excise duties to check any abnormal rise in retail prices of petrol and diesel in the post- liberalisation regime from 1 Apr 2002. The Ministry of Petroleum and Natural Gas will move the Ministry of Finance...

COMPETITION CHURNS CELL INDUSTRY (every third subscriber shifts to a competing service provider).
March 29, 2002... The cellular services industry in India has reached the level of severe competition in terms of options for subscribers. The Cellular Operators Association of India (COAI) has analysed business information up to 30 Sep 2001 collected from its...

ELECTROLUX TO CONSOLIDATE UNDER SINGLE BRAND (bringing entire white goods range under Electrolux- Kelvinator brand).
March 29, 2002... Electrolux India Ltd and Electrolux Kelvinator Ltd will consolidate their entire range of white goods under the Electrolux-Kelvinator brand. They will phase out Maxclean, White Westinghouse and Allwyn brands. They had positioned Electrolux as...

GDP GROWS 6.3% IN THIRD QUARTER (as against 3.4 percent in Oct-Dec 2000).
March 29, 2002... The growth of gross domestic product (GDP) in India during Oct- Dec 2001 was 6.3 percent against 3.4 percent in Oct-Dec 2000. Average growth in Apr-Dec 2001 was 5.3 percent and the estimated growth for 2001-2002 is 5.4 percent. GDP...

100% FDI IN ADVERTISING PUT ON AUTOMATIC ROUTE (limit raised from the earlier 74 percent).
March 29, 2002... The Government of India has raised the limit for foreign direct investment (FDI) through the automatic route in the advertising sector from 74 percent to 100 percent. It has also removed the pre-requisites for 100 percent FDI through the...

ONGC-IPCL FEEDSTOCK ISSUE STILL UNRESOLVED (bidders for IPCL stake ask for firm commitment to feedstock supply at concession rate).
March 29, 2002... Oil and Natural Gas Corporation (ONGC) has an agreement with Indian Petrochemicals Corporation Ltd (IPCL) to supply the feedstock, naphtha, at concession rate. The agreement is valid up to 2006. The Government of India is divesting 26 percent...

SUPREME COURT ON EXCISE EXEMPTIONS TO R and D BY-PRODUCTS (items manufactured by virtue of technical expertise do not qualify for exemption).
March 29, 2002... The Supreme Court of India has ruled that research and development (R and D) organisations cannot claim excise duty exemption for items manufactured by virtue of technical expertise. Such items cannot be considered as research products. The...

APSFC RAISES Rs61.9 CRORE VIA BOND FLOAT IN 2001-2002 (proceeds to fund higher volume of operations in 2002-2003).
March 29, 2002... The Andhra Pradesh State Finance Corporation (APSFC) raised Rs61.9 crore through an issue of bonds in 2001-2002. The proceeds bring down the cost of borrowing for the Corporation and fund higher volume of operations in 2002-2003.