India Business Insight articles from March 2009

India Business Insight archives from March 2009

RBI-MOF REPORT PITCHES FOR LOWER GOVERNMENT STAKE IN BANKS (as the banking industry would find it difficult to meet the increasing credit needs of the industry under the government control).
March 31, 2009... As per the annual risk assessment of the financial sector conducted by the Reserve Bank of India and the Ministry of Finance, Government of India, the public sector-dominated banking industry would find it difficult to meet the increasing...

WITH SURPLUS WHEAT INVENTORY, CENTRE REMOVES CAP ON STORAGE BY TRADERS (by withdrawing the wheat stock limit order).
March 31, 2009... The Government of India has withdrawn the wheat stock limit order, which empowered the States to put a ceiling on the quantity held by the traders. The production and procurement of wheat were at 78.57 million tonnes (mt) and 22.6 mt last...

RBI TO HAVE LITTLE SPACE TO FUND DEFICIT (says Goldman Sachs).
March 31, 2009... Goldman Sachs, which scrutinised the balance sheet of Reserve Bank of India (RBI), has calculated that RBI can fund the Government borrowings up to Rs15,00,000 crore without giving scope for inflation. However, it will be left with little...

SHARE OF INDIAN COMPANIES IN TOTAL H-1B VISAS (was only 11.9 percent in 2008).
March 31, 2009... As per the data prepared by a US think-tank, Indian companies used only 11.9 percent of the total new H-1B visas issued in 2008. The data also reveals that the share of Indian companies in such visas has been declining over the years.

NO BANKING CASH TRANSACTION TAX FROM APRIL 1 (as per budget 2008-2009).
March 31, 2009... The Government of India has withdrawn the banking cash transaction tax from 1 Apr 2009 in its budget 2008-2009. The tax had been introduced in 2005 to keep track of large cash withdrawals.

MAYTAS BOARD GOES TO LENDERS FOR LOAN RESTRUCTURING. (submits the proposal during a meeting with the lending bankers).
March 31, 2009... The board of Maytas Properties Ltd has requested its lending bankers to restructure its loans. Its lending bankers include State bank of India, ICICI Bank Ltd, IDBI Bank Ltd and Axis Bank Ltd. The directors of the board submitted their...

CREDIT DERIVATIVES MARKET YET TO TAKE OFF; RISK MANAGEMENT, INFRA NEED A PUSH (as per the report released by the Committee on Financial Sector Assessment).
March 31, 2009... The report released by the Committee on Financial Sector Assessment (CFSA) mentions that the credit derivatives market is yet to take off and even though the primary market in corporate bonds has shown increase, the secondary market has not...

CERC RESTRUCTURES UI REGIME TO ENFORCE GRID DISCIPLINE (effective from 1 Apr 2009).
March 31, 2009... The Central Electricity Regulatory Commission (CERC) has introduced new regulations on unscheduled interchange (UI) for operations of the electricity grid and also amended the Indian Electricity Grid Code(IEGC) effective from 1 Apr 2009. ...

NTPC TO ROPE IN GLOBAL FIRM FOR MINES BUY IN INDONESIA (proposes to invest Rs2,000 crore).
March 31, 2009... NTPC Ltd has decided to appoint a global consultant to carry out a due diligence of coalmines in Indonesia. The company proposes to invest Rs2,000 crore for either acquiring of 30 percent stake in an Indonesian coalmine or for entering into a...

RIL STOPS PRODUCTION OF CRUDE OIL AT KG-D6 BLOCK FOR 45 DAYS (to increase the production level to 40,000 barrels per day).
March 31, 2009... Reliance Industries Ltd (RIL) has stopped the crude oil production at KG-D6 block on 22 Mar 2009. It will hook up with more wells to increase the production level to 40,000 barrels per day and recommence production after 45 days. It was...

NMDC TO INK PACT WITH SOUTH AFRICA TO SCOUT MINERALS (plans for a tie up with Kopanao Ke Metla Investment Company).
March 31, 2009... NMDC Ltd has decided to tie up with Kopanao Ke Metla Investment Company (KKMIC) of South Africa to acquire coal, iron ore and manganese properties in African countries. KKMIC is the investment wing of South Africa's biggest trade union...

LGEIL LAUNCHES DSC TO BOOST BRAND IMAGE (in Chennai).
March 31, 2009... LG Electronics India Ltd (LGEIL) has inaugurated its fully equipped direct service centre (DSC) in Chennai. The company will open such DSCs across the country to serve the customers with speed, quality and speed. DSCs will have direct...

GE HEALTHCARE TO BEEF UP R&D (plans investing $75 million to build a brand new laboratory in Bangalore).
March 31, 2009... GE Healthcare is planning to invest $75 million to build a brand new laboratory to enhance research and development (R&D) at its John F.Welch Technology Centre in Bangalore. The company employs 1,000 engineers in this laboratory. The...

MAYTAS INFRA COMPLETES GAS PIPELINE PROJECT FOR GSPL (the company has secured a certificate to handle pipelines of 48 inch diameter).
March 31, 2009... Maytas Infra Ltd has completed the commissioning of the high- pressure gas pipeline for Gujarat State Petronet Ltd (GSPL). The pipeline will supply natural gas to the new refinery of Reliance Industries Ltd at Jamnagar. Maytas had bagged...

NAVY LAUNCHES PATROL VESSEL (the 2,215-tonnes vessel has a top speed of 25 knots).
March 31, 2009... Indian Navy has launched an offshore patrol vessel, INS Saryu, on 30 Mar 2009. The vessel with a displacement of 2,215 tonnes has a top speed of 25 knots. The Navy intends to use the vessel for surveillance and surface warfare operations.

ARMY TO INDUCT NEW VERSION BRAHMOS (the Army has conducted the tests successfully).
March 31, 2009... Indian Army is planning to induct a new version of BrahMos cruise missile into service. The Army has conducted the accuracy tests successfully. The Army intends to use the new version to hit specific targets accurately in urban...

CERC TO WIELD THE STICK ON STATES NOT GRANTING OPEN ACCESS (SLDCs are denying open access on flimsy grounds).
March 31, 2009... The Central Electricity Regulatory Commission (CERC) intends to impose stiff penalties on states not granting open access to power. The State Load Despatch Centres (SLDCs) are denying open access on flimsy grounds with the support of the...

GOVERNMENT APPROVES BETTER PAY TERMS FOR ALL PSU OFFICERS (the oil industry is not happy with the offer).
March 31, 2009... The Government of India has approved a better pay packet for the officers of public sector units (PSUs). The Cabinet has approved merger of 78.2 percent of dearness allowance (DA) with the basic pay from 26 Nov 2008. The Government had...

SUZLON TO RAMP UP CAPACITY (the company expects to announce a net profit for Jan-Mar 2009).
March 31, 2009... Suzlon Energy Ltd is planning to increase its capacity from 4,000 megawatt (MW) to 5,700 MW in 2009-2010. The company expects to announce a net profit of Jan-Mar 2009. Suzlon is planning to use the funds to pay for the stake of REPower...

BEL, BHEL PLAN 250-MW SOLAR VENTURE (the companies are looking for suitable vendors and technology partners).
March 31, 2009... Bharat Electronics Ltd (BEL) and Bharat Heavy Electricals Ltd (BHEL) have signed a memorandum of understanding to set up a joint venture to manufacture solar products of 250 megawatt (MW). The companies are looking for suitable vendors and...

EMAMI, ZANDU BOARDS FORM PANELS TO STUDY MERGER (the committees will consider the benefits in the FMCG business).
March 31, 2009... The boards of Emami Ltd and Zandu Pharmaceutical Works have set up separate committees to study the possibilities of a merger. The committees will consider the benefits in the fast moving consumer goods (FMCG) business in concrete terms....

FIVE COMPANIES WIN BIDS FOR DELHI AIRPORT HOTEL PROJECT (the bidders will enter into long-term lease agreements with DIAL).
March 31, 2009... Delhi International Airport Ltd (DIAL) has selected five companies to develop and operate six hotels in its hospitality district. Accor, Hyatt, InterGlobe Hotels, Lemon Tree and Bird Group will enter into long-term lease agreements of 30...

MUDRA SOUTH VOTED AGENCY OF THE YEAR (Advertising Club of Cochin received over 1,000 entries).
March 31, 2009... Advertising Club of Cochin has voted Mudra South as the Agency of the Year in its third edition of Pepper-2009 annual creative award competition. Mathrubhumi has bagged the Advertiser of the Year award. The club received over 1,000 entries...

BITS INDIANA SHOWROOM IN KOCHI (the company will sell garments made of linen).
March 31, 2009... Bits Indiana of Bangalore has opened a showroom at Oberoi Hotel in Kochi. The company will sell shirts, pants, pyjamas, kurthas and other garments made of linen. The linen garments are expected to protect the body from ultra violet rays. ...

UNEMPLOYMENT ON THE RISE IN KERALA (workers from other states are seeking employment in Kerala).
March 31, 2009... The State Planning Board of Kerala is of the view that unemployment in the State is increasing. The number of job seekers on the registers of employment exchanges was 41.2 lakh in Jun 2008. The State receives large amount of...

KARNATAKA GRAMEEN BANK TARGETS Rs6,000-CRORE BUSINESS (the bank expects to reach business of Rs10,000 crore by Dec 2010).
March 31, 2009... Karnataka Vikas Grameen Bank (KVGB) expects to announce business of Rs6,010 crore for 2008-2009 (Rs5,305 crore for 2007-2008). The bank has launched a door-to-door campaign to promote banking services in rural areas. KVGB has collected Rs300...

CSL DELIVERS PLATFORM SUPPLY VESSEL TO NORWAY FIRM (the ship has received certification from Det Norske Veritas).
March 31, 2009... Cochin Shipyard Ltd (CSL) has delivered a platform supply vessel to NFC Offshore of Norway on 30 Mar 2009. The company has designed the vessel for meeting the demands of deck cargo, pipes, liquid cargo and other materials. The vessel...

HARIDASPUR-PARADIP RAIL LINK PROJECT A NON-STARTER (owners of the land are demanding higher compensation).
March 31, 2009... Rail Vikas Nigam Ltd (RVNL) is not in a position to start the work on Haridaspur-Paradip rail link project. The company had planned to start the work in Jun 2008 and complete the project in two years. RVNL has awarded the project to a number...

V-GUARD FORAYS INTO LOW TENSION POWER CABLE (the company has set up a facility in Coimbatore at a cost of Rs23 crore).
March 31, 2009... V-Guard Industries Ltd has entered into low tension power cable business. The company has set up a manufacturing facility in Coimbatore with an investment of Rs23 crore. The new facility is expected to process 3,000 tonnes of aluminium...

HEINZ EXTENDS COMPLAN BRAND TO MUESLI (the company intends to launch the product in South India).
March 31, 2009... Heinz India Ltd intends to extend its Complan brand to Nutri Bowl Muesli. The company intends to build the brand with a number of products in the health and nutrition segment. Heinz had extended the Complan brand to the cream biscuit...

TRUTEK PLANS TO ENTER HOME APPLIANCES RETAILING (the company has launched Essentials range of furniture).
March 31, 2009... Trutek Products Pvt Ltd is planning to enter into consumer electronics and home appliances retailing. The company owns the Nitraa furniture brand. Trutek is planning to set up three stores in Sivakasi, Tirunelveli and Tuticorin in the second...

GROWERS SWITCHING OVER TO ROBUSTAS FROM ARABICAS (white stem borer has affected the Arabica plants in the last two years).
March 31, 2009... Coffee growers in South India are switching over from Arabica plants to Robusta plants. White stem borer has affected the Arabica plants in the last two years. The growers are forced to uproot the affected plants and burn them to control the...

STATES CAN RELAX WHEAT STOCK LIMITS (the Government of India has extended the validity to 30 Sep 2009).
March 31, 2009... The Government of India has allowed the State governments to relax the limit of wheat stocks held by traders. The Government has extended the validity of powers to take de-hoarding measures for farm products to 30 Sep 2009. The Government had...

TEA EXPORTS TO EGYPT MAY RISE (ITPC expects to export 20 mkg of tea in 2009).
March 31, 2009... The Tea Board expects exports of tea to Egypt to increase in 2009. India Tea Promotion Centre (ITPC) is planning to open its office in Cairo in Apr 2009. India had exported 14.87 million kilogram (mkg) of tea to Egypt in 2008 (5.14 mkg in...

EICHER MOTORS Q3 PAT DIPS (to Rs14.42 crore for Oct-Dec 2008).
March 31, 2009... Eicher Motors Ltd has announced a 1.9 percent dip in its consolidated profit at Rs14.42 crore for Oct-Dec 2008. The company had registered a consolidated profit of Rs14.7 crore in Oct-Dec 2007.

NOD FOR RAIN COMMODITIES SHARE BUYBACK (of 40,56,801 shares at a price of Rs127 per share).
March 31, 2009... The board of Rain Commodities Ltd has approved buy back of shares worth Rs51.52 crore. The company will be buying 40,56,801 shares at a price of Rs127 per share.

NOD TO AMALGAMATE ASIAN PAINTS UNIT (Board of Asian Paints approves the merger of TIML with itself).
March 31, 2009... The board of Asian Paints Ltd has approved the scheme of amalgamation of Technical Instruments Manufacturers (India) Ltd (TIML) with itself. TIML is a subsidiary of Asian paints and it owns the property that houses the corporate office of...

ZYDUS CADILA IN R&D PACT WITH ELI LILLY (to develop drugs for cardiovascular diseases).
March 31, 2009... Zydus Cadila Ltd has entered into a new drug discovery and development agreement with Eli Lilly and Company to develop drugs for cardiovascular diseases. The collaborative research programme will be for six years. As per the agreement Lilly...

HINDUSTAN UNILEVER, GODREJ JOIN IPL BANDWAGON (IPL has 10 sponsors now for season 2).
March 31, 2009... Hindustan Unilever Ltd and the Godrej Group have jointed as sponsors of Indian Premier League-2 (IPL-2). While HUL jointed as sponsors, Godrej Group has signed up as one of the co-sponsors for IPL-2 scheduled for Apr 2009. IPL has 10 sponsors...

ALLAHABAD BANK SIGNS MoU (for inward money transfer services).
March 31, 2009... Allahabad Bank has entered into a memorandum of understanding (MoU) with UAE Exchange & Financial Services Ltd for inward money transfer services. Under the agreement the bank will become the service provider in the area of inward money...

SBT'S TOTAL BUSINESS MAY CROSS Rs1 LAKH CRORE (by Sep 2009).
March 31, 2009... State Bank of Travancore is targeting total business of Rs1 lakh crore by Sep 2009. Out of it, credit component would be Rs40,000 crore and Rs60,000 crore would be deposits. The bank expects to close 2008-2009 with total business of...

UNSEASONAL RAINS WON'T IMPACT WHEAT OUTPUT IN NORTH (as per the directorate of wheat research in Karnal).
March 31, 2009... As per the directorate of wheat research in Karnal, unseasonal rains in some parts of northern India during the weekend will not adversely affect wheat output in North. Farmers have already harvested the crop in Punjab and Haryana. Wheat...

GRASIM RAJASTHAN PLANT OPENS (with a capacity of 3.3 million tonnes per annum).
March 31, 2009... Grasim Industries Ltd has commissioned its clinkerisation plant at Kotputli in Rajasthan. The capacity of the plant is 3.3 million tonnes per annum.

KEC INTERNATIONAL BAGS ORDERS (worth Rs207 crore from PGCIL and CESC).
March 31, 2009... KEC International Ltd has secured two orders worth Rs207 crore from Power Grid Corporation of India (PGCIL) and CESC Ltd for infrastructure related works. PGCIL has placed an order for Rs166 crore with the company for power lines...

XYLO BOOKINGS CROSS 12,000 (M&M to increase Xylo production to meet the increase in demand).
March 31, 2009... Mahindra & Mahindra Ltd (M&M) has over 12,000 bookings for its utility vehicle Xylo. The company is augmenting its production to meet the increase in demand.

SHIPPING BUSINESS CHOPPY DESPITE FREIGHT RECOVERY (Indian shipping companies expect no improvement in the immediate future).
March 31, 2009... Indian shipping companies are not expecting any improvement in the immediate future despite freight recovery. The Baltic Dry Index, indicator of global dry bulk freight rates was at 1,758 on 19 Mar 2009. The index was at 2,298 on 10 Mar 2009...

FOREIGN BANKS MAY HAVE TO SELL 26% IN SUBSIDIARIES (review of rules for foreign banks from Apr 2009).
March 31, 2009... A panel set up jointly by the Reserve Bank of India and the Ministry of Finance, Government of India, has recommended that foreign banks should list their subsidiaries on stock exchanges, sell at least 26 percent stake and cap ownership at 74...

L&T GETS Rs345-CRORE ORDER (order for supply of four steam generators to Nuclear Power).
March 31, 2009... Larsen & Toubro has bagged an order worth Rs345 crore from Nuclear Power Corporation of India Ltd for design, manufacture and supply of four steam generators for 700 MWe pressurised heavy water reactors. The steam generators are critical...

RAIN COMMODITIES TO BUY BACK SHARES (plans buyback of shares for an amount not exceeding Rs51.52 crore).
March 31, 2009... The board of directors of Rain Commodities Ltd of Hyderabad has cleared a buyback of the company's fully paid-up equity shares of Rs10 each from the open market. The buyback would be at a price not exceeding Rs127 per share for an amount of...

NOD FOR AUROBINDO'S EPILEPSY DRUG (tentative US FDA clearance for Topiramate tablets).
March 31, 2009... Aurobindo Pharma Ltd of Hyderabad has received tentative approval from the US Food and Drug Administration for Topiramate tablets. These tablets are the generic equivalent of Topomax tablets produced by Ortho McNeil Janssen Pharmaceutical and...

TYRE INDUSTRY SEEKS SAFEGUARD DUTY ON PASSENGER CAR RADIALS IMPORT (imports from China and South Korea at 17.66 lakh units for 2008-2009).
March 31, 2009... The Automotive Tyre Manufacturers Association will be meeting the Director General of Safeguards to seek the imposition of a safeguard duty on imports of passenger car radial tyres. This is in view of increasing imports of tyres, especially...

AREVA T&D PLANS TO DOUBLE SALES BY NEXT YEAR (it has so far invested Rs950 crore to set up plants in India).
March 31, 2009... Areva T&D India has set a target of doubling its sales in the country to Rs4,000 crore by 2010. The company has so far invested Rs950 crore to set up a series of manufacturing facilities in the country. It has recently inaugurated four...

SKODA TO LAUNCH DIESEL VERSION OF NEW SUPERB (move to strengthen its presence in the D segment).
March 31, 2009... Skoda India is planning to introduce a diesel version of the newly-launched Skoda Superb model to strengthen its presence in the D segment. The company claims to have sold 300 Superb cars in the 10 days since its launch. Superb has been...

RANBAXY GETS USFDA NOD FOR ANTI-SEIZURE DRUG (clearance to produce and market Topiramate tablets).
March 31, 2009... Ranbaxy Laboratories Ltd says that it has received approval from the US Food and Dug Administration to manufacture and market Topiramate tablets, a generic drug indicated for treating seizures. These tablets are the generic equivalent of...

DHL BEGINS LCL SERVICE FROM LUDHIANA TO NHAVA SHEVA (the new service will considerably reduce transit time).
March 31, 2009... DHL has introduced its direct Less than Container Load (LCL) service from Ludhiana to Nhava Sheva. All LCL services were being routed through New Delhi prior to the launch of the Ludhiana- Nhava Sheva service. The new weekly service will...

TATA POWER ANNOUNCES OPERATION OF 250-MW UNIT 8 IN MUMBAI (generation capacity at Trombay thermal plant will rise to 1,600 MW).
March 31, 2009... Tata Power Company has announced the launch of commercial operations of the 250-MW Unit 8 at Trombay thermal power station in Chembur, Mumbai. Trombay Unit 8 successfully completed 72 hours of full load trial operations on 29 Mar 2009....

3I INFOTECH TO EXPAND REACH IN DOMESTIC MARKET (talks with utilities for bill generation and printing services).
March 31, 2009... 3I Infotech has announced plans to expand its reach in the domestic market by targeting the utilities and infrastructure verticals. The company is holding talks with several power and telecom firms to offer bill generation and printing...

NOKIA SIEMENS SETS UP GLOBAL CENTRE AT NOIDA (to complement existing GNSCs in Lisbon and Chennai).
March 31, 2009... Nokia Siemens Networks opened its new Global Network Solutions Centre at Noida near Delhi on 30 Mar 2009. This forms part of the company's strategy to make India the global hub for its services platform. Nokia had earlier established a...

IT, BPO SLOWDOWN DENTS CAB OPERATORS' BUSINESS (BPOs ask operators to reduce charges by 10-15 percent).
March 31, 2009... The slowdown in the IT and business process outsourcing sectors has adversely affected the business of cab operators. Several business process outsourcing companies have been asking cab operators to club multiple trips and reduce charges...

BHARTI, VODAFONE HAVE MOST CONGESTED NETWORKS: TRAI (Airtel's network congested beyond specified benchmark in 14 places).
March 31, 2009... The Telecom Regulatory Authority of India says that Bharti Airtel and Vodafone Essar have the most congested telecom networks in the country. The regulator says that Bharti Airtel's network was congested beyond the specified benchmark in 14...

ORIENTAL BANK MAY REDUCE SELECT DEPOSIT RATES (rate may reduce for less than one year term periods).
March 31, 2009... Oriental Bank of Commerce is likely to reduce deposit rates by 25- 50 basis points for less than one year term periods. The bank had reduced its prime lending rate by 50 basis points to 12 percent on 27 Mar 2009. The bank presently offers a...

RUPEE FALLS BY 60 PAISE (currency closes at 51.17 to the dollar on 30 Mar 2009).
March 31, 2009... The rupee opened at 50.90/92 and touched an intra-day low of 51.31/32 before recovering to close trade at 51.17 to the US dollar in the interbank foreign exchange market at Mumbai on 30 Mar 2009. This was around 60 paise down from the...

BOND PRICES DECLINE (volumes at Rs6,525 crore on the order matching system).
March 31, 2009... Bond prices fell steeply in the Mumbai bond market on 30 Mar 2009, with total traded volumes at Rs6,525 crore on the order matching system. Prices declined after news reports quoted Reserve Bank of India Deputy Governor Dr Rakesh Mohan...

CALL RATE ENDS LOWER (rates close at 3.75-4 percent on 30 Mar 2009).
March 31, 2009... Call rates ended lower at 3.75-4 percent in the overnight call money market at Mumbai on 30 Mar 2009, against its previous close at 4.50-4.60 percent levels. There was one repo bid for Rs1,200 crore and three reverse repo bids for Rs5,700...

DENA BANK CUTS PLR TO 12.5% (reduces its prime lending rate by 25 basis points).
March 31, 2009... Dena Bank has reduced its prime lending rate by 25 basis points from 12.75 percent to 12.25 percent with effect from 1 Apr 2009. Other banks that have reduced their prime lending rates include United Bank of India, Union Bank of India,...

LIC LAUNCHES CREDIT CARD (card will be issued initially in Mumbai and Delhi).
March 31, 2009... Life Insurance Corporation of India unveiled its white-labelled credit card on 30 Mar 2009. The card will be issued initially in Mumbai and Delhi on a limited scale. The card will be launched by the insurer's subsidiary LIC Cards Services Ltd...

ALLAHABAD BANK, UAE FIRM TIE-UP (pact for launching inward money transfer services).
March 31, 2009... Allahabad Bank has entered into an alliance with the UAE Exchange and Financial Services Ltd for launching inward money transfer services. This will boost the bank's NRI business and enhance its fee-based income. Under the agreement,...

RBI's OIL BOND PURCHASES MAY TOP Rs40,000 CRORE (it has already purchased bonds worth around Rs39,000 crore).
March 31, 2009... Oil bond purchases by the Reserve Bank of India through special market operations may exceed Rs40,000 crore for 2008-2009. The banking regulator has purchased oil bonds worth about Rs39,000 crore from Indian Oil Corporation, Hindustan...

ROLE OF NABARD, NHB NEEDS TO BE REDEFINED: CFSA REPORT (housing finance companies should get financial support).
March 31, 2009... The report of the Committee on Financial Sector Assessment states that the regulatory/supervisory and developmental role of the National Bank for Agriculture and Rural Development and the National Housing Bank should be segregated so that...

NET NPAs OF BANKS SET TO RISE (banks disallowed from using excess provisions to set off against gross NPAs).
March 31, 2009... A recent circular issued by the Reserve Bank of India will result in an increase in the net non-performing assets (NPAs) of most banks in the country. The regulator has disallowed banks the option of using excess provisions to set off against...

CABINET NOD FOR UBI CAPITAL REJIG (PSU bank to get capital infusion of Rs800 crore).
March 31, 2009... The Union Cabinet of the Government of India has given its clearance for equity capital restructuring of United Bank of India. The government will be infusing Rs800 crore into the bank in two tranches under the restructuring proposal. ...

MITSUBISHI SMALL CAR PLANS FOR INDIA ON HOLD FOR LACK OF FUNDS (had planned to launch the premium compact car through its technical tie-up with Hindustan Motors).
March 31, 2009... Mitsubishi Motor Corporation's plan to produce a compact car from India has been indefinitely deferred owing to lack of funds and declining demand. The company had planned to launch the premium compact car through its technical tie-up with...

POWER PROJECTS WITHIN SEZs BECOME MORE LUCRATIVE (new guidelines issued by the Government permit sale of power to users based outside SEZs).
March 31, 2009... Setting up of power plants within Special Economic Zones (SEZs) has become more lucrative than outside following the new guidelines issued by the Ministry of Commerce, Government of India. The guidelines, which cover stand-alone...

CITY GAS PROJECT MOVES UP IN GOVT PRIORITY LIST (5 mmscmd gas to be allocated to the CGD project).
March 31, 2009... The Government of India has promoted the city gas distribution (CGD) project to the second spot in its priority list for gas utilisation. The first spot is held by the fertiliser sector. The empowered group of ministers (EGoM) has decided to...

DLF TO DIVEST ITS WIND POWER BIZ (has an installed capacity of around 260 Mw).
March 31, 2009... DLF Ltd has decided to divest its windmill power generation business. The company has an installed capacity of around 260 Mw. The company has invested about Rs1,500 crore in the business. The funds raised from the divestment will be used for...

ZTE INDIA BANKING ON 3G, MOBILE DEVICES (expects its India revenues exceed $1 billion in 2009).
March 31, 2009... ZTE of China expects its India revenues exceed $1 billion in 2009. The company registered sales revenues of $750 million in 2008. The company expects the launch of 3G services and mobile device business to increase its revenues....

DELL INDIA RESTRUCTURES OPERATIONS (operations restructured into four segments).
March 31, 2009... Dell has restructured its business operations in India into four segments - consumer, large enterprise, public sector, and small- and medium-businesses. Dell India has an estimated turnover of $900 million. The company employs about 12,000...

GITANJALI GEMS BUYS ENTIRE STAKE IN JV (has acquired the stake from Modern India).
March 31, 2009... Gitanjali Gems has acquired the entire stake in its joint venture firm, Modali Gems. The stake has been acquired from Modern India.

RIL SHUTS DOWN CRUDE OIL PRODUCTION AT KG-D6 (to connect more wells in order to increase production to 40,000 bpd).
March 31, 2009... Reliance Industries Ltd (RIL) has shutdown crude oil production at its KG-D6 block to connect more wells in order to increase production to 40,000 barrels per day (bpd). The company shutdown production at the MA field on 22 Mar 2009 for 45...

RATING SHADOW ON NEXT CHAIN'S EXPANSION PLAN (plans to open 200 outlets in the next six months).
March 31, 2009... Fitch has assigned BB+ rating to Next, the consumer durables and electronics retailing division of the Videocon group. The rating has been assigned owing to low margins in consumer durable retailing and the working capital-intensive nature of...

FINANCIAL PANEL FOR GRADUAL OPENING UP OF SECTOR TO FOREIGN BANKS (has favoured holding of up to 74% stake in the Indian venture).
March 31, 2009... The committee on financial sector assessment (CFSA) has favoured a process of gradual opening up of the sector to foreign banks. According to the CFSA, such as process should be consistent with the overall financial policy. The committee has...

TATA MOTOR TIES UP WITH UBS, UNITED BANK (for financing its range of passenger vehicles).
March 31, 2009... Tata Motors has tied up with Union Bank of India (UBI) for financing its range of passenger vehicles. The facility will be available at all 1,450 branches of UBI and 470 sales touch points of Tata Motors. UBI has also been empanelled for the...

UNIVERSAL SOMPO EYES Rs250-CRORE PREMIUM IN 2009-10 (has sold over 50,000 policies).
March 31, 2009... Universal Sompo General Insurance Co, a joint venture between Allahabad Bank, Indian overseas Bank (IOB), Dabur and Sompo Japan insurance, is targeting Rs250 crore in premium collection in 2009- 2010. The company, which commenced...

ICICI BANK, CHINA EXIM TIE UP FOR BUYER CREDIT (will provide finance to Indian companies importing capital goods from China).
March 31, 2009... ICICI Bank has signed a loan agreement for $98 million with the Export-Import Bank of China (China Exim) under the buyer credit arrangement. The programme will provide finance to Indian companies importing capital goods from China. The...