IRDA Constitutes Committee On Distribution Channels

Hyderabad: The Insurance Regulatory and Development Authority has established a committee to examine the functioning of the various distribution channels for life insurance products. The authority feels that there is a need for a study to be undertaken to ascertain the manner in which these (distribution) channels have been functioning, their efficacy, cost effectiveness, weaknesses and make recommendations on the changes to be made to make them effective, professional and accountable. Mr N.M. Goverdhan, former Chairman, LIC of India, will act as the Chairman of the panel, which will have managing directors and CEOs of leading life insurance players as its members. The terms of reference of the committee would include, among others, to review the system of licensing of the corporate agents, their qualifications, consider the advisability of permitting several corporate agencies within the same group, examine in detail the commission structure and recommend necessary changes. The panel will also examine the need for a system of referral providers and scope for direct marketing, e-marketing, web-enabled sales points besides the scope of existing micro-insurance agency system and its remuneration, and suggest modifications and enlargement.

Bajaj Allianz To See Changes In Leadership

Mumbai: Bajaj Allianz will witness top level changes in the leadership of its life and non-life insurance companies. Mr Sam Ghosh, who was the Country Manager and CEO of Bajaj Allianz Life Insurance, will now be the regional CEO of Allianz Middle East, a new region made in the growth market. Mr Kamesh Goyal is being elevated to Country Manager of Allianz companies in India and will also be the new CEO of Bajaj Allianz Life Insurance. Mr Swaraj Krishnan who was General Manager of Bajaj Allianz General will be the new CEO of Bajaj Allianz General Insurance.

Petronet In Talks With Algeria For LNG

NEW DELHI: Petronet LNG Ltd, India's largest liquefied natural gas importer, is in talks with Sonatrach of Algeria for a 25-year contract to import 1.25 million tons of LNG per annum.

"Petronet LNG will shortly sign a long-term contract for import of 1.25 million tons of LNG per annum for 25 years," Algeria's Ambassador to India Noureddine Bardad-Daidj said at Assocham's 10th Energy Summit here on Friday.

While the Ambassador did not give any further details, Petronet officials said the company was in talks with Algeria's national oil company Sonatrach for import of LNG from its under-construction Skikda LNG terminal. The 4.5- million-tonne LNG export terminal would come up by 2011.

The diplomat said Algeria holds world's fifth largest gas reserves and is fourth largest exporter of LNG (behind Indonesia, Malaysia and Qatar), exporting around 13 per cent of the world's total.

The vast majority of Algeria's LNG exports go to Western Europe, especially France, Spain and Turkey.

Petronet officials said the agreement was not likely before next year and supplies would commence in 2011.

The company currently imports 5 million tons a year of LNG from RasGas of Qatar on a long-term contract. Besides importing spot LNG cargoes, it is also in talks to import LNG from the Chevron-operated Gorgon liquefaction project in Australia. Volumes are expected to come from the 25 per cent capacity share being marketed by partner Exxon Mobil.

ONGC Turns Down Sri Lanka Oil Block Offer

NEW DELHI: India's state-run Oil and Natural Gas Crop has turned down an offer from Sri Lanka to operate a block in the Mannar basin due to the size of a bonus request and poor prospects, its chairman said on Friday.

Sri Lanka earlier this year offered Block 1 on a nomination basis to the Indian firm.

"We did not find the prospectivity. Moreover, they were asking for a fantastic signature bonus for that. So we are not interested," R. S. Sharma told reporters on the sidelines of an industry seminar.

ADAG Eyeing Cement Biz

New Delhi: Power-to-telecom business house Reliance Anil Dhirubhai Ambani Group (R-ADAG) plans to enter cement manufacturing by setting up a plant near its 4,000MW coal-fired power project proposed at Sasan in east Madhya Pradesh.

The cement plant proposed by R-ADAG will use millions of tonnes of fly ash generated at the power station, billed ultra mega power project for its large capacity, to produce cement. Fly ash is generated while burning coal.

Not only is the cost of cement production using fly ash 5-10% lower than the cost using the traditional clinker-based method, it also saves on transportation and disposal of a material seen as environment-unfriendly.

“They (R-ADAG) plan to set up a cement plant near the newly bagged power project at Sasan to utilize the fly ash generated from the project,” said a senior government official, who did not wish to be identified.

An R-ADAG executive declined details of the cement project. J.P. Chalasani, director, business development, Reliance Energy Ltd, said, “Our company keeps on evaluating various proposals from time to time.” Reliance Energy is the parent of Reliance Power Ltd, the company in charge of the Sasan project.

Ultra mega power projects are expected to see a major expansion of cement manufacturing capacity in India with cement companies such as Grasim Industries Ltd, Ultratech Ltd, Sanghi Cement Ltd, The India Cements Ltd, Zuari Cements Ltd and My Home Industries Ltd already evincing interest in setting up greenfield cement plants in the vicinity of such power stations, as reported by Mint on 26 September.

The size of the R-ADAG cement plant was not immediately known. Going by the amount of fly ash—some 9 million tonnes a year—the 4,000MW power project will generate, the cement plant capacity could be huge. One tonne of cement needs an input of 0.2 tonne of fly ash.

“Depending on the amount of fly ash the projected is expected to produce, R-ADAG can put up a capacity of 45 million tonnes per annum (mtpa). But nobody would want to put up such a huge capacity. The impact of R-ADAG’s move will depend on the size of the unit,” Rupesh Sankhe, an analyst tracking the commodity for ICICI Direct, said.

The cost of setting up a 1mtpa cement capacity is up to Rs400 crore.
The Rs20,000 crore Sasan project was awarded to Reliance Power after it matched the winning bid for the project after the original winning consortium of Lanco Infratech and Globeleq Singapore was disqualified by a government panel on 25 July for violating terms of the deal.

Analysts said by the time the Sasan project goes online, cement capacity in the country may be less beneficial to cement producers, who have enjoyed a 30-34% price rise in different regions in the past year alone. India, the world’s second largest cement market with Rs55,000 crore estimated demand, has a cement manufacturing capacity of 148mtpa.

“The power project is expected to come up only after 2012, when the cement supply is expected to outstrip demand,” Sankhe said.

E.N. Murthy, secretary general of trade body Cement Manufacturers Association, welcomed the capacity addition. “Around 60% of the cement produced in India uses fly ash. In a situation of supply-side constraint, any additional capacity is good news for the industry,” he said.

The government had planned nine ultra mega power projects. While those at Sasan, Mundra in Gujarat, Tilaiya in Jharkhand, Krishnapattnam in Andhra Pradesh, Tamil Nadu’s Cheyyur and Orissa’s Jharsuguda are on track, others at Girye in Maharashtra, Tadri in Karnataka and Chhattisgarh’s Akaltara are yet to take off. Sasan, Tilaiya and Jharsuguda are coal pithead projects and those at Mundra, Krishnapattnam and Cheyyur are based on imported coal.

YSR May Turn Off RIL Gas Tap In Andhra

NEW DELHI: Reliance Industries' (RIL) retail fiasco in Uttar Pradesh may be repeated in Andhra Pradesh, this time for gas.

Chief Minister YSR Reddy has cautioned that RIL would face UP-kind of opposition — where RIL retail stores were forced to shut down — unless the state's demand for KG basin gas is met and the Centre approves AP's proposed city gas pipeline project.

In a meeting with petroleum minister Murli Deora on Wednesday, Mr Reddy is understood to have said the delays in granting approval to the proposed pipeline or denial of gas to Andhra Pradesh would lead to mass opposition, similar to what had happened in Uttar Pradesh against Reliance Fresh stores.

Mr Reddy met Mr Deora to register protest against delay in granting permission to the state for laying 2,000-km pipeline. The state has been awaiting the Centre’s nod for nine months.

The Andhra Pradesh government’s veiled threat, which follows close on the heels of the Uttar Pradesh government’s decision to disallow opening of retail stores, is expected to have major implications for investors. The production-sharing contract allows the gas producer, RIL, to have complete freedom in marketing the gas.

Claims like the one being made by Andhra Pradesh are unlikely to have legal standing. Even on the pipeline issue, it is not within the state jurisdiction to have a mandate on pipelines including city gas distribution pipelines. This has been ordained in an earlier ruling of the Supreme Court. Further, all decisions on pipelines now rest completely with the newly-constituted Petroleum & Natural Gas Regulatory Board (PNGRB).

It is learnt Mr Reddy was not satisfied with Mr Deora’s answer that his proposal (of laying pipeline) would be referred to PNGRB. Mr Reddy said the Centre was already late to in granting approval, and referring the proposal to PNGRB would delay the project. The state is seeking the Centre’s approval for laying 2,000-km gas transmission pipeline network across 23 cities in the state.

The timing of Mr Reddy’s visit is stated to be significant as the empowered group of ministers (EGoM) on natural gas pricing and utilisation is likely to meet for the fourth time in early October. The date of the meeting is expected to be finalised soon after the return of its chairman and external affairs minister Pranab Mukherjee from foreign tour.

The EGoM — which had approved RIL’s KG basin gas pricing formula with certain modifications on September 12 — is likely to meet soon to resolve issues related to natural gas utilisation policy.

It is understood from official sources that Andhra Pradesh has broadly accepted the KG basin’s gas price of $4.20 per mmBtu as discovered through the modified formula, approved by the EGoM. “Mr Reddy didn’t raise the issue of gas pricing in the meeting with the petroleum minister,” an official said.

The state has incorporated Krishna Godavari Gas Network (KGGNL) to implement the city gas pipeline project in the state. Andhra Pradesh government, GSPC and IDFC are the shareholders in KGGNL

Formal Nod To RIL's KG Gas Price After Pranab’s Return

NEW DELHI: RIL’s wait for a formal approval of its gas pricing formula is not over as yet. The government is yet to send in its approval for RIL’s KG Basin gas pricing formula, despite a decision by the empowered group of ministers (EGoM) almost a fortnight back.

The petroleum ministry, it is learnt, is in the process of communicating the formal approval letter to RIL specifying “certain conditions” , including “life of the contract” and “issues related to price revision at the end of the term period of the contract” . EGoM had approved RIL’s pricing formula on September 12 after three rounds of meetings. The group is headed by external affairs minister Pranab Mukherjee.

According to official sources, a formal letter of approving gas price formula is likely to be dispatched to RIL soon after Mr Mukherjee comes back from his foreign visit. RIL is eagerly awaiting a formal approval to go ahead with its gas contracts with potential customers. The gas from the block is scheduled to start flowing in by mid-2008. The delay in getting a formal approval would have an adverse impact on work schedule.

So far, EGoM has approved only a gas pricing formula, applicable to the gas produced under provisions of the New Exploration Licensing Policy (Nelp) one to six rounds. It will meet again in the next month to take up various issues, including commercial utilisation of natural gas under Nelp regime. “The EGoM is not looking at an individual case but it is examining policy issues related to natural gas production,” an official said.

EGoM has only approved the pricing formula for valuation of the government’s profit share, which translates to a minimum selling price of $4.2 per mmbtu. However, RIL is free to sell the gas at a higher price but it will then have to pay a higher profit petroleum to the government.

RIL’s gas pricing formula which was recently approved by EGoM will be applicable for all natural gas producers who have acquired oil and gas blocks under new exploration licencing policy bidding rounds I to VI. A total of 162 blocks have been bid out between NELP I to VI. These companies will now only need to call for price bids from potential customers based on this approved formula to determine the market price at which gas will be sold.

Rubber Tappers Can Apply For Insurance Scheme

Kottayam: Eligible rubber tappers can apply for the group insurance-cum-deposit saving scheme carried out by the Rubber Board for tapping labourers in small rubber plantations. The tappers working in small plantations of not less than one acre and for which Plantation Labour Act ,1951, is not applicable are eligible to join the scheme. The applicants should be of the age group 18 to 51. Their monthly income should not go beyond Rs 5,000. Application forms and other details can be had from the head office of the Rubber Board at Kottayam and other regional offices. The applications duly filled up should reach the Assistant Director (Labour Management), Rubber Board, Kottayam -2 before October 15.

Ofcom Looks To Future Of Fast Net

Regulator Ofcom has added its voice to the growing debate about how the UK should roll out super-fast broadband. It has launched a consultation, running until December, to probe ways to keep UK net services up to speed with those of other nations.

Current broadband speeds have a natural limit which are unlikely to satisfy growing consumer demand for bandwidth. In other countries, networks delivering speeds of up to 100Mbps (megabits per second) are already being rolled out.

Some experts are concerned that the UK is falling behind its competitors. Last week Stephen Timms, Minister for Competitiveness, ordered a summit on the issue and did not rule out the possibility of public sector intervention.

The debate centres on the question of whether the UK should put in place a nationwide fibre network and, in its consultation, Ofcom lays out some of the options for the UK as well as suggesting ways in which such a network should be regulated.

So-called fibre to the kerb would offer speeds of up to 50Mbps and cost up to £10bn to roll out nationwide, experts predict. Fibre to the home is more expensive - with an estimated £15bn price tag - but offers speeds of up to 100Mbps.

Ofcom points out that no one technology will answer the needs for more bandwidth. Cable networks will also play an important role in offering high-speed net access and Virgin Media is already trialling speeds of up to 50Mbps.

Vishal Retail To Start Food Outlets

When major retailers are banking on the convenience format, north-based Vishal Retail is planning to enter the fast food segment, which the company claims would be the Hindustani version of McDonalds. It will also open destination stores offering FMCG products and services like SPAs and water parks. The company has raised Rs 110 crore from its recently concluded IPO. It plans to have around 100 stores by this year. The big format stores will be on an average between 25,000 - 30,000 sq ft in size and small format will be about 5,000 sq ft. This move by Vishal to diversify into new areas of operation in its retail business is a clear hedge against the risk involved in committing to a single format, also finding foothold in businesses that yield better margins.

City Union Bank Opens Branch At Rajkot (Gujarat)

City Union Bank Ltd has informed that the Bank has opened the Branch at Rajkot (Gujarat) on September 24, 2007.

GE Shipping - takes delivery of a modern Platform Supply Vessel

Great Eastern Shipping Company Ltd (GE Shipping) has informed that Greatship (India) Ltd (GIL) a wholly owned subsidiary of the Company has taken delivery of a 2005 built modern Platform Supply Vessel (PSV). The PSV now named Greatship Dipti was contracted byGIL in September 2006.

Declining Premiums Fail To Drive General Insurance Growth

Mumbai: The non-life insurance industry growth was slower at 13 per cent in the first five months of FY08 compared with 20.29 per cent a year ago, despite premium rates declining sharply in a free pricing regime. The gross premium income of the general insurance industry, which was freed of pricing controls from the start of 2007, stood at Rs 11,780.49 crore against Rs 10,413.08 crore a year earlier. The industry had grown by 20.29 per cent in April-August 2006 with a gross premium of Rs 8,668.7 crore. The premium rates for fire and engineering policies have fell by more than 30 per cent, while discounts offered is over 20 per cent for motor own damage cover in case of private cars. The eight private players collected a gross premium of Rs 4,627.93 crore, a growth of 27 per cent against a gross premium of Rs 3635.69 crore up to the month of August last year. The four public sector players New India Assurance, Oriental Insurance, National Insurance and United India Insurance showed a marginal growth of 5.54 per cent at Rs 7152.56 crore compared with Rs 6777.39 crore in the year-ago period.

In August this year, the non-life industry recorded a total gross premium of Rs 2,108.92 crore the private sector cornered Rs 881 crore and the public sector accounted for the balance Rs 1,227 crore. The largest private insurer, ICICI Lombard General Insurance, increased by 14 per cent with a premium of Rs 1,464 against a premium of Rs 1284.52 crore up to August in 2006-07. Reliance General Insurance registered the highest growth of 195 per cent among industry players by underwriting a gross premium to Rs 808 crore. Cholamandalam grew by 77 per cent, Bajaj Allianz 33 per cent, Tata AIG grew marginally by 5 per cent and Royal Sundaram by 9 per cent. Iffco Tokio General insurance continued growth declined by 20 per cent.

TN To Launch New Health Insurance Scheme For State Govt Employees

Coimbatore: The Tamil Nadu Government has decided to unveil a new health insurance scheme for its staff under which the assistance provided will be doubled from what the employees are able to get under the existing insurance scheme. The new scheme, while marginally increasing the monthly subscription the employees pay for the health insurance cover, will bring those employees receiving non-standard scales of pay and also employees of the local bodies, PSUs, statutory boards and state government universities under health insurance cover.

The Government has proposed to call competitive bidding for selection of the health insurance provider. Under the present Tamil Nadu Government Employees Health Fund Scheme providing coverage to the government employees and their family members, a monthly subscription of Rs 10 was collected and assistance to the extent of 75 per cent of the expenses or Rs 1 lakh whichever was less was granted to the eligible applicants. Employees also found it difficult to meet the cost of treatment themselves first before applying for reimbursement under the insurance scheme and in certain areas the employees/their dependents had to travel long distances for treatment due to lack of approved institutions nearby.

The existing insurance scheme also left out employees of PSUs, local bodies, state government universities and statutory boards and some major ailments were out of coverage. The State Government has now decided to implement a new health insurance scheme to provide for comprehensive healthcare assistance to the employees with a wider scope of coverage. It would be extended to employees of government departments including those drawing pay under non-standard scales of pay like noon- meal workers, village assistance etc and would also cover employees of local bodies, PSUs, statutory boards and state government universities.

BCG Set 6mnths Deadline To Submit PSU Insurers Revamp Report

Bangalore: The Boston Consulting Group (BCG) has been set a deadline of six months for submitting its report on restructuring of the three public sector general insurance companies Oriental Insurance Company Ltd, United India Insurance Company Ltd and National Insurance Company Ltd. The restructuring would revolve around improving underwriting profits of the companies. So far insurers have been focusing only on topline growth. The consequent pressure on profitability was evident from the slim underwriting margins of barely 0.5 per cent. Moreover, insurers recognise that sale of investments is not a permanent source of bolstering capital for meeting solvency. The BCG group will assist the three insurers to restructure the operations so as to optimise costs and rationalise operations.

Panacea Biotec Inaugurates Vaccine Formulation Plant (VFP) On Their Annual Day At Baddi, Unveils Its

Panacea Biotec Ltd has informed that the Company has inaugurated its Greenfield construction Vaccine Formulation Plant (VFP) in Baddi, Himachal Pradesh. The plant has been commissioned with several filling lines for bacterial and viral vaccines complying with WHO, cGMP norms for liquid Vaccines in pre-filled syringes, liquid & lyophilized Vaccines in vials. The total production capacity of this facility is one billion doses per annum.

The Company has also unveiled its new Corporate Identity on the occasion and the new identity displays a pole star and tag-line-Innovation In Support of Life.

In this regard the Company has issued the following Press Release:

Panacea Biotec inaugurated its Greenfield construction Vaccine Formulation plant (VFP) in Baddi - Himachal Pradesh. The plant has been commissioned with several filling lines for bacterial and viral vaccines complying with WHO, cGMP norms for liquid Vaccines in pre-filled syringes, liquid & lyophilized Vaccines in vials. The total production capacity of this facility is one billion doses per annum. The plant was inaugurated by Company Chairman, Mr. Soshil Kumar Jain.

The new world class facility has been designed, constructed, and approved for the production of filling lines of bacterial and vital combination vaccines. The unit will increase our production capacity of vaccines substantially in scale and size. It would significantly improve our market presence globally and augment our plans to become a global leader in this field. said Mr. Soshil Kumar Jain, on the occassion.

The three-story production block is spread over approx. 2800 M2 construction area at each floor. The production floor has non-metallic Modular Panels for partitioning in the critical area having walk able ceiling for easy maintenance of supply ends for utilities, clean air and lighting system. The plant also has a two-story block of Warehouse-cum-Cold Storage facility admeasuring approx. 2500 M2 on each floor.

Gremach Acquires 75% Controlling Stake In 11 Coal Mines In Mozambique

Gremach Infrastructure Equipments & Projects Ltd has announced that the Company has taken 75% controlling stake in 11 Coal mine licenses in Mozambique having an aggregate 13,520 hectares (appx. 13,52,00,000 sq. mts) in prime region of Moatize. This region falls in Karoo basin which is recognized as Prime Hard Coking coal bearing area in Africa. There is a global shortage and crisis of hard coking coal and this will add huge value to the profitability of the Company.

The Company has renamed out of above two licence no. 1165L as GRE Mine no 1 and 1100L as GRE Mine no. 2. The Company is planning to start prospecting of the area in the month of October, 2007 and will be complete by mid 2008. Expected reserves in the above mines are more than 200 million. With this acquisition, the Company has entered into the list of selected club of few Indian Companies like JSW, Tatas and Gujarat NRE Coke which has mines outside India.

These licenses have been purchased form a Mozambique Company viz. Osho Mozambique Coal Mining Limitada having registred office at Maputo.

Mr. Rishi Raj Agarwal, MD of the Company said These 11 licences are very close to existing Companhia Vale do Rio Doce (CVRD) mines and few of them are having common boundary with CVRD licences where hard prime coking coal has already been found. These strategic acquisitions will make Gremach one of the most important players in prime hard coking coal mine in the world.

To take advantage of government incentives, many Indian Companies are working bee-line in coal mining business in Mozambique. JSW group, Ispat Industries and Tata Steel have recently made acquisition of coal mines in Mozambique. Tata Steel has acquired 35 percent stake in Australian firm Riversdale Mining Ltd.s Coal Project in Mozambique for Australian $ 100 million (about $85 million). Companhia Vale do Rio Doce (CVRD), the worlds largest iron ore producer is investing a $2 billion in Mozqmbique that may develop the southern hemispheres biggest mine for the black gold.

Micro Technologies Foreys Into The Middle East

Micro Technologies India Ltd has informed that the Company has come with an Understanding with Lazer Technology Solutions granting rights for the distribution of its selected security products in the Middle East and Egypt. It has been observed that there are fluctuations in the exchange rates but these fluctuations would not lay an impact in the net revenue of the Company and on the contrary this arrangement is expected to bring added benefit to the Company even during the current scenario.

Micro Products are already growing rapidly across India. The Company has started up with the distribution in Egypt and has received an overwhelming response in the Middle East. The Company being ranked No 2 in the recently concluded GITEX Technology Week where roughly 3,300 exhibitors from 82 countries spread out over 64,000 square meters of floorspace participate In itself speaks the success story of the Company in the Middle-East. Gitex 2007 is held in Dubai from the 8th to 12th, of September every year and is the Middle Easts largest and most popular technology exhibition.

The safety and security products industry In Egypt is growing steadily and is governed by the Ministry of Interior, Government of Egypt. The Egyptian Government is looking for specialized Companies working in the field of security and other related business to become acquainted with the most up-to-date security technology available and the Company is well positioned to get into the market with its high-end technology.

GMR Infrastructure - DIAL Cargo Gets International

GMR Infrastructure Ltd has informed that Delhi International Airport (P) Ltd. (DIAL), a subsidiary of the Company has won the highly prestigious e-Asia 2007 Award on Implementation of e- Commerce / Electronic Data Interchange in Air Cargo Sector at an international convention held in Bangkok, Thailand. The award was given by Asia Pacific Council for Trade Facilitation & Electronic Business (AFACT).

In this regard the Company has issued the following Press Release:

The Cargo operations of Delhi International Airport (P) Ltd (DIAL) has won a highly prestigious e-Asia 2007 Award on Implementation of e- Commerce / Electronic Data interchange in Air Cargo Sector at an international convention held in Bangkok, Thailand. The award was given by Asia Pacific Council for Trade Facilitation & Electronic Business (AFACT). Over 30 contestants from 18 different countries had made presentations on their e-operations and DIALs entity, was adjudged Best by the Evaluation Committee of AFACT.

Implementation of the Electronic Commerce / Electronic Data Interchange is one of the thrust areas of the Govt. of India under Export Promotion Board (EPS) and is coordinated by Ministry of Commerce. This results in paperless e-transactions as per international standards. The said project was initiated by AAI at four metro Indian airports and steered by a core team of DIAL officials for IGI Airport.

IVRCL Infrastructures Bagged Orders Valued Rs 394.24 Cr

IVRCL Infrastructures & Projects Ltd has announced the Pune Region of the Company has bagged the following works of an aggregate value of Rs 394.24 Crores as detailed hereunder:

- Building Division

1. Name of the work: Construction of 3 Nos. of Towers at Rajiv Gandhi Infotech Park, Hinjewadi, Phase-II, Pune, Maharashtra with 13 Floors (1B+4P+9 floors) with a built-up area of approximately 30.88 lacs square feet awarded by DLF Akruti Info Parks (Pune) Ltd

Value of the Work (Rs in Crores): 180.00

2. Name of the work: Construction of Sea-Woods Estate Phase-II, Part-II Housing in Sectors 54, 56 & 58 (Part) at Nerul, Navi Mumbai consisting of a built up area of 3.87 lacs square of awarded by City and Industrial Development Corporation of Maharashtra Ltd.

Value of the Work (Rs in Crores): 85.07

3. Name of the work: Design, Construction, Commissioning, Operation and Maintenance Clear Water Sump and Pumping Station at Near WTP, BS-1 and BS-2, Package, No. IND/WS/09 awarded by Indore Municipal Corporation, Indore.

Value of the Work (Rs in Crores): 67.79

- Power Division

4. Name of the Work:

(i) Laying of Transmission / Distribution Lines of a) 400 KV of 5 Km b) 132 KV D/C of 64.80 Km c) 33KV of 165 Km and d) 11 KV of 63 Km aggregating to 297.80 Km

(ii) Replacement and Reconductoring of 33 KV and 11 KV lines of 349 Km

Reliance Industries - First Oil Discovery In Krishna Deep Water Basin

Reliance Industries Ltd (RIL) has announced an oil discovery in the deepwater block KG-DWN-98/l (KG-D4) located in the Krishna Basin. This is the first time an oil discovery has been made in the Krishna deep-water basin. This deep-water block was awarded to RIL under first round of NELP bidding. RIL holds 100% participating interest in this block, which spans over an area of 8100 sq kms.

The oil find in this exploration block marks a new beginning in this basin. The well was located in a depth of 565 meters and was drilled to a target depth of 3595 meters. The well encountered elastic reservoir with gross oil column of more than 20 meters in the Mesozoic section. During the Drill Stem Testing (DST), the well flowed 596 barrels of oil per day. This discovery namely Dhirubhai - 36 has been notified to Government of India and Directorate General of Hydrocarbons.

Encouraged by successes in the Godavari and Cauvery deeper Mesozoic plays, Reliance continued its exploration effort in Krishna offshore. This oil discovery comes after nearly two decades of exploration history with, more than 30 exploratory wells drilled by various operators in this geologically complex basin. The potential commercial interest of the discovery is being ascertained through integration of additional data and analysis.

ICRA - ICRA Online Launches ICRA Mpower

ICRA Ltd has informed that ICRA Online Ltd, a wholly-owned subsidiary of ICRA Ltd is announcing the launch of ICRA Mpower, a web-based platform for mutual fund distributors and financial advisors, which provides all the tools required for making the distribution business more effective and efficient. A cost effective solution for setting up the business, ICRA Mpower offers mutual fund distributors a gamut of financial tools to cater for both the pre- and post-investment requirements of clients, thereby paving the path for distributors to build enduring relationships with clients on the strength of quality service and appropriate advice.

In this regard the Company has issued the following press release:

ICRA Online Ltd, a wholly-owned subsidiary of credit rating major ICRA Ltd (an Associate of Moodys Investors Service Inc.), on September 21, 2007 announced the launch of ICRA Mpower, a web-based platform for mutual fund distributors and financial advisors, which provides all the tools required for making the distribution business more effective and efficient. A cost effective solution for setting up the business, ICRA Mpower offers mutual fund distributors a gamut of financial tools to cater for both the pre- and post-investment requirements of clients, thereby paving the path for distributors to build enduring relationships with clients on the strength of quality service and appropriate advice.

Speaking on the occasion, Mr. P K Choudhury, Vice-Chairman & Group CEO, ICRA said, The wealth management industry in India has been growing at a very rapid pace. The stupendous growth in the stock markets over the last couple of years has generated a lot of interest in mutual funds among retail participants. With more and more investors investing in mutual funds, the number of mutual fund distributors has also increased sharply. We see ICRA Mpower as a facilitator for mutual fund distributors.

ICRA In Mou With Dena Bank To Rate Bank Loans Under RBI''s New Capital Adequacy Framework For Basel-I

ICRA Ltd has informed that ICRA Ltd (ICRA) and Dena Bank have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the Banks loans and its other exposures under the standardized approach of RBIs New Capital Adequacy Framework for Basel-II and also to Small Scale Industries (SSIs) and Small and Medium Enterprises (SMEs).

In this regard the Company has issued the following press release:

ICRA Ltd (ICRA) and Dena Bank have signed a Memorandum of Understanding (MOU) under which ICRA will assign ratings to the Banks loans and its other exposures under the standardized approach of RBIs New Capital Adequacy Framework for Basel-II and also to Small Scale Industries (SSIs) and Small and Medium Enterprises (SMEs).

ICRAs ratings for the standardized approach would be carried out under its Line of Credit rating service and would enable Dena Bank to assign the new risk weights applicable to its borrowers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBIs above guideline.

The SSI ratings will be carried out under the National Small Industries Corporation - ICRA (NSIC - ICRA) Performance and Credit Rating Scheme for SSIs. The SME ratings on the other hand will be assigned under the ICRA-SME Rating Scale.

To assist potential and existing borrowers of Dena Bank in obtaining ratings, ICRA is offering special terms to the clients of Dena Bank covered by the MoU.

HCL Technologies - HCL ISD Emerges As The ONLY Indian Company Cited As A ''Leader'' In European Remote

HCL Technologies Ltd has announced that in an August 2007 report by Forrester Research, Inc., an independent research firm, HCL Technologies Infrastructure Services Division (HCL ISO), has been cited as a Leader in Forrester Wave European Remote Infrastructure Management, Q3 2007.

The Report evaluated the Companys capability in this space vis-à-vis 13 players including 3 Indian service providers and 7 global IT giants. The Indian provider has a modest number of delivery and support centers but has a strong processes based on ITIL and a clear vision and road map for service enhancement. This positions the Company as a promising Company In RIM and highest ranked Indian Offshore firm in this market, the Report said. HCL Is best suited for infrastructure management with special care. The report also noted that HCL is a good fit for buyers that require a partnership environment and want structured infrastructure transformation.

The Company received the highest score (5) on criteria such as consolidation and virtualization, service management, management tools, visions and productivity investments and partnerships. Overall the report rated the companies based on a comprehensive set of 37 evaluation criteria grouped under three main categories, namely, Current Offering, Strategy and Market Presence.

Commenting on the findings of this latest report, Anant Gupta, COO, HCL Infrastructure Services Division, said, HCL ISD continues to enjoy a phenomenal success of its RIM services in Europe which is clearly evident from this independent Report also which puts us in the same league as the global IT giants who have beer) mapping this continent since a far longer time than us. Last year we recorded an impressive 120% growth in Europe and continued to add to our European client list.

Rupee Appreciation Was A Response To General Dollar Weakness: ICICI

The government has set a $160 billion target for exports this fiscal year, ending in March 2008. Unless it introduces significantly more tax breaks and other incentives for exporters, it is unlikely to meet that estimate, said Samiran Chakrabarty, chief economist at India''s largest private lender, ICICI Bank. You will not see an unfettered momentum in the rupee, the central bank is likely to intervene going forward. His prediction for exports is $150-$152 billion, with a downward bias.The rupee was estimated by ICICI Bank to be at 39 to 39.50 against the dollar by year end, at a time when it assumed a 25-basis-point Fed rate cut. Chakrabarty said the appreciation was more a response to a general dollar weakness. If you look at the index of a real effective exchange rate, on a relative basis the rupee has not appreciated so much. It''s moved by 1.5% from a pre- to post-Fed rate cut span, while the Euro has risen over 2%.

Reliance Energy Eyeing Coal Mines

The next big focus for Anil Ambani''s group companies is Reliance Energy as it diversifies into engineering, construction and power.Reliance Energy is planning to increase its capacity to 20,000 MW over next five years. But one big constraint as it ramps up is the availability of fuel especially coal.

However, Reliance Energy is scouting for coalmines abroad. Its eyeing stakes in Australian, Indonesian and African coal mines and its also evaluating options to sign long-term contracts with coal miners.

Reliance Energy says that right pricing would be the key to any acquisition. However, it''s not shying away from any size of the acquisition target. It may consider raising funds via debt for coal mine acquisition.

The strategy behind acquiring mines is to ensure regular supply of coal and it''s targeting coal mines with high calorific value to maximize investment returns.

Reliance Energy stock has outperformed markets. It has gained 111 per cent in last one year and closed at an all time high on Thursday. Analysts say that more value could be unlocked if Reliance Energy demerges its engineering and construction business from power.

BPCL To Diversify With Global Alliances

Bharat Petroleum is trying to make exploration and production its key focus area with alliances already in place with international energy giants. But a major success in this area still eludes the company. It is now trying to diversify into other segments.

We export 7,00,000 tonne of furnace oil and Matrix brings in captive capacity of 60-70 ships. Singapore is world''s largest bunkering market with capacity of 28 million metric tonne per annum, said Ashok Sinha, Chairman, BPCL.BPCL in an alliance with Videocon Industries has recently acquired EnCana Brasil Petroleo, which has interest in 10 offshore exploration blocks in Brazil.The company in collaboration with Brazil''s national oil company Petrobras, Australian Norwest Energy and Videocon is scouting for more exploration projects across South America, West Africa and East Asia.

BPCL Seeks Petrol, Diesel Price Hike

BPCL, state-owned oil major, has sought a hike in prices of petrol by Rs 4 and diesel by Rs 2 per litre in line with the rising crude oil prices in the international market. The other two companies are public sector Hindustan Petroleum and Indian Oil Corporation. With crude prices touching a record $82 a barrel, petrol and diesel retail prices are likely to be hiked. The basket of Indian crude oil touched an all-time high of $75.37 a barrel on Wednesday, widening the losses of the public sector oil companies. The issue has acquired political overtones with Opposition parties re-affirming their demand for reduction in prices of petroleum products to the pre-June 2006 level. The Left parties, providing crucial outside support to the ruling coalition, have also demanded that the government cut the petrol and diesel prices.

Ratan Tata May Hike Stake In Tata Steel

Ratan Tata is on the prowl yet again and this time he wants to tighten the grip on group companies. Sources say that the Tatas plan to hike stake in Tata Steel by 10 per cent and the group is debating whether to take the creeping acquisition route or if the steel maker will go for preferential allotment of shares.

In last one year, Tata Sons has increased it''s stake in Tata Steel by about seven per cent to over 33 per cent. This was of course due to the Mittal effect just before Mittal acquired Arcelor. Looks like the M&A season is not yet over in the metal space, and the ghosts of hostile bids continue to haunt the industry..

No wonder then that the metal biggies have to keep assuring the shareholders of the promoter holdings and have to make sure that they are safe from predators..

Promoter holding is at about 44 per cent, we are safe, said Sajjan Jindal, VC & MD, JSW Steel. The Tatas may not be forthcoming but one thing is clear that they don''t want to take any chances. And that''s why the ambitious plan to hike stake in Tata Steel to a controlling majority of around 51 per cent.

Tulip IT Services Bags West Bengal State Wide Area Network (WBSWAN) Project Worth Rs 53 Crores

Tulip IT Services Ltd on September 19, 2007 has announced that it has been awarded the West Bengal State Wide Area Network Project. The network will be established on the Build Own Operate & Transfer (BOOT) model and the total value of the current component of the bid, that has been awarded to the Company, is in excess of Rs 53 Crores. The Companys Services will deploy, manage and operate the entire network for a period of five years.
The scope of the project includes expansion of the existing State infrastructure beyond districts to connect all Sub-division, Block Headquarters and Gram Panchayats, as well as managing operation of the entire network for a period of 5 years. The network supports data, voice and video, and will enable the State to implement various e-Governance initiatives. With this project, the State of West Bengal aims to strengthen its position under the National e-Governance Plan of Government of India.
This will be a total IP Network based on open standards having scalability and high capacity. It is planned to meet the present and future requirements of the Government of West Bengal. On completion of this project, the Government will have an integrated backbone for common citizen services, online monitoring of performance of various promotional schemes, integration of data bases of various Govt. departments, unified communication, etc.
Lt. Col. H S Bedi, VSM, CMD, of the Company, said, It is a privilege for Tulip to be a part of the prestigious National e-Governance Plan of Government of India (NeGP) & we are really happy to extend our expertise for the successful deployment of the West Bengal SWAN. We are implementing a similar project in Haryana, and we are all set to repeat our success in West Bengal. Tulips extensive presence across almost every district in India, uniquely positions it as a leading provider of eGovernance services.
With this win, the Company has further strengthened its position in the field of setting up eGovernance infrastructure.

Gail India - Feedstock Supply Agreements For Assam Gas Cracker Project Signed GAIL Assures Full Supp

Gail India Ltd has announced that the Feedstock Supply Agreements for the Rs 5460 crore, 2,80,000 TPA gas cracker plant being set up at Lepetkata, Dibrugarh, Assam were signed in Dibrugarh on September 19, 2007. The Gas Supply Agreement was signed between Brahmaputra Cracker and Polymer Ltd (BCPL), and Oil India Ltd and Naphtha Supply Agreement was signed between BCPL and Numaligarh Refineries Ltd (NRL). The Feedstock Supply Agreements were signed by Shri R K Kashyap, Chief Operating Officer, BCPL, Shri N M Bora, Director (Operations), OIL and Shri D Chakraborty, Director (Technical), NRL in the presence of Shri B K Handique, Honble Union Minister of State for Chemicals, Shri Prithibi Majhi, Honble Minister for Planning & Development, Government of Assam, and Dr. U D Choubey, CMD of the Company and Chairman, BCPL. Other dignitaries present on the occasion were Shri S Sonowal, Principal Secretary to the Government of Assam, Shri M R Pasrija, Chairman and Managing Director, OIL, Shri A K Purwaha, Director (Business Development) of the Company, Shri R K Graver, Director (Projects), EIL and Shri S. Bhujbal, Director, Ministry of Chemicals and Fertilizer, Government of India along with other senior officials of the respective companies and the State Government.
The signing of Feedstock Supply Agreements is a major milestone in the execution of the project. Government of Assam has handed over 890 acres of land for the project and BCPL has acquired necessary Environmental and Pollution clearances.
Speaking on the occasion, Dr. U D Choubey, CMD of the Company and Chairman, BCPL said that the Company was committed to ensure project success and pre-project activities have already been initiated. The most recent development has been the appointment of Engineers India Limited (EIL) as the Project Management Consultant (PMC) for the project, he added.

KEC International Wins Rs 317 Crores Projects

KEC International Ltd has announced that the Company has bagged a major Asian Development Bank funded contract from Afghanistans Ministry of Energy & Water through an international competitive bidding process. Power Grid Corporation of India Ltd (PGCIL) is consultant to the project, which will be completed in 18 months.
The special feature of this prestigious win is its composite nature. To be executed in two lots in the North and Eastern regions of Afghanistan, this order, in totality, involves turnkey construction of 2 X 110 KV Transmission lines totaling over l00 kms; 4 Sub Stations and; 8 power Distribution Systems of 20 KV each.
The size and composite nature of this win underlines KECs status as the largest and most sought after Transmission EPC player in Afghanistan. With this win, the total contract value of orders, under execution in Afghanistan, is over Rs 500 crore. Additionally, KEC has just completed two important ADB funded projects there. We have received a great letter of appreciation from the Japanese consultants who tend to be sparing in their praise especially on quality, said Ramesh Chandak, Managing Director of the Company.
In Raiasthan, the Company has been awarded a Rs 91.50 crores contract by Rajasthan Rajya Vidyut Prasaran Nigam Ltd for Supply and Construction of 400kv Double Circuit Transmission line from 400Kv sub-station at Raj West Lignite Thermal Power Station, (Barmer) to 400KV sub-station at Jodhpur, on turnkey basis.
This line is required to evacuate power from Raj West Thermal Power Station. The job involves design and testing of all the four types of towers, supply of towers, line materials, erection and commissioning. The length of the line is 220 Kms and the project is scheduled to be completed by February 2009.

HCL Technologies Announces New Worldwide SAP Development & Support Contract With Celestica

HCL Technologies Ltd on September 18, 2007 announced it has expanded its relationship with Celestica, a global provider of innovative electronics manufacturing services (EMS), to provide SAP deployment and support. Under the terms of this three-year agreement, the Company will deploy and customize Celesticas SAP suite in a global delivery model across Asia, North America, Latin America and Europe.

Through the Companys global implementation and support methodology, Celestica and the Company will execute common processes and adhere to common governance structures under a fully managed service executing customer-related projects more rapidly and achieving consistent levels of service worldwide.

This new contract expands upon a four-year relationship between the two Companies through which the Company and Celestica have successfully provided integrated solutions to customers across the telecom, enterprise, consumer, medical, aerospace and semiconductor sectors. Last year, the partnership was further expanded with a joint venture to provide a fully integrated product lifecycle solution to OEM customers - including product concept, design, engineering, manufacturing, fulfillment, sustaining engineering, reverse logistics and after-market services. The Companys broad and scalable design engineering capabilities combined with Celesticas existing strengths in hardware design for manufacturability and supply chain integration create an exciting new alternative for OEMs seeking time-to-market and total cost advantages.

Jubilant In Multi Million Dollar Long Term Contract With Syngenta

Wipro Ltd on September 18, 2007 announced the completion of the tender offer by its indirect wholly-owned subsidiary, Roxy Acquisition Corp. for all outstanding shares of Infocrossing, Inc., at a price of $18.70 per share in cash.

The tender offer expired at 11:59 pm, New York City time, on September 17, 2007.

The depositary for the tender offer has advised the Company that, as of the expiration of the tender offer, approximately 20,465,514 shares had been validly tendered and not withdrawn in the tender offer, and such tendered shares (together with all shares tendered pursuant to guaranteed delivery procedures) represent approximately 100% of Infocrossings issued and outstanding shares, All validly tendered shares have been accepted for payment in accordance with the terms of the tender offer.

Assuming the receipt of a sufficient number of shares tendered pursuant to guaranteed delivery procedures to ensure that the Company holds at least 90% of Infocrossings outstanding shares, the Company intends to complete the acquisition of Infocrossing through a short-form merger as soon as practicable. If necessary, the Company intends to exercise its option under the merger agreement to purchase newly issued Infocrossing shares in order to ensure ownership of at least 90 percent of the outstanding Infocrossing shares to complete the short-form merger. In the short-form merger, all outstanding Infocrossing shares not purchased in the tender offer will be converted into the right to receive $18.70 per share in cash.

Lanco Infratech Signs Strategic Agreement With Gulftainer

Lanco Infratech Ltd has announced that the Company entered into a Memorandum of Understanding with Gulftainer Company Ltd, UAE to co-operate on a variety of port and transportation projects.
The Company, one of the fastest growing corporate entities in India, has more than two decades of experience operating in the core sectors of Power Generation, Power Trading, Construction & EPC, Infrastructure and Property Development. With a proven record in integrated infrastructure development, LANCO constructs, develops and operates projects in power, roads and other infrastructure. At present, the power portfolio includes an operating capacity of 518 MW and additional capacities under construction aggregating to more than 3,400 MW. The construction and EPC wing has so far executed USD 500 million worth of projects and has an order book worth of nearly USD 2 billion.
Gulftainer Company Ltd is a leading port developer and operator and was established in 1976 in the Emirate of Sharjah in the United Arab Emirates. The Companys prime role is to manage and operate the container terminals in Port Khalid and also Khorfakkan on behalf of Sharjah Port Authority. Complimenting this work, Gulftainer also owns one of the largest heavy transport fleets in the United Arab Emirates, a container repair Company, a shipping agency which undertakes local ship / cargo agency work and actively pursues international port management opportunities.
Commenting on the development, Mr. L Madhusudhan Rao, Chairman, of the Company said This is a significant step and would enable Lanco to participate in the Port and transportation projects coming up for bidding. The agreement would synergise LANCOs strength in Infrastructure development with those of Gulftainer in development and operations of ports and other transportation projects.

Wockhardt Gets US FDA Nod To Enter The US$ 2.6 Billion Norvasc Market

Wockhardt Ltd has announced that the Company is all set to launch Amlodipine tablets in the US market. The tablets to be marketed are in strengths of 2.5 mg, 5 mg and 10 mg Amlodipine besylate, which is used for treating hypertension and other related cardiac ailments. Amlodipine is the generic name for the brand Norvasc, sold in the US by Pfizer Inc. As per IMS, the US market for Amlodipine tablets is about $2.6 billion equivalent to 1.7 billion tablets.
Wockhardt is gaining a very strong position in several other cardiovascular products, like Enalapril and Captopril. With Amlodipine, Company will reinforce our robust cardiovascular portfolio , said the Companys Chairman Habil Khorakiwala. This rapid increase in our US product portfolio is enabling us to synergistically gain market share across products.
The Amlodipine tablets are manufactured at the US FDA certified formulation plant at Waluj, Maharashtra. The product was developed in-house.

i-flex Solutions - Bank M (Tanzania) Selects i-flex''s FLEXCUBE As Core Banking Solution

i-flex Solutions Ltd on September 17, 2007 has announced that Bank M (Tanzania) has selected its flagship product FLEXCUBE® as its core banking solution.

Technology is the backbone of the financial services industry. We selected FLEXCUBE after an exhaustive rating process. We are confident of i-flexs regional support, and impressed with the commitment of i-flex personnel. We are sure the association will be an enduring and beneficial one, said Nimrod Mkono, Chairman and Chief Executive Officer, Bank M (Tanzania).

Bank M (Tanzania) is the first Service Standard Guarantee (SSG) provider in East Africa and uses technology to deliver on its promises. If the bank fails to meet expected timelines or customer care standards, it undertakes the transaction or delivery of the product free of cost. Bank M (Tanzania) provides money-round-the-clock; and all its branches are open from 8 am to 8 pm, unlike most banks that operate until 3 pm and work only half-days on Saturdays. Bank M (Tanzania) has also instituted a program to provide Drive in cash banking at all its branches.

Commenting on the selection, Anil Rai, who heads Africa Sales of the Company said, We are delighted to partner with Bank M (Tanzania) to help them redefine their technology strategy to create competitive advantage. We have over 70 customers in over 23 countries in Africa, including five in Tanzania. This win is a testimony to our growing presence and traction in the region and also our deep commitment to the continent.

IVRCL Infrastructures Secures Orders Valued Rs 368.14 Crores

IVRCL Infrastructures & Projects Ltd has announced that Chennai Region of IVRCL has bagged the following works of an aggregate value of Rs 368.14 Crores as detailed hereunder from various organizations:

(A) Name of the Project : From Chennai Metropolitan Water Supply & Sewerage Board

(i) Water Distribution Station at Kilpauk in Chennai

- Brief Details of the Project : Storage & Pumping station of Drinking Water including civil, electrical, mechanical & instrumentation.

- Value of the Project (Rs. in Crores) : 56.27

(ii) Water Distribution Station at K. K. Nagar in Chennai :

- Brief Details of the Project : Storage & Pumping station of Drinking Water including civil, electrical, mechanical & instrumentation

- Value of the Project (Rs. in Crores) : 26.12

(iii) Pipeline for Conveyance of Desalination Product Water - Package - I

- Brief Details of the Project : 22 kms of 1000mm Ductile Iron Pipeline, supply laying and jointing including all related appurtenances and civil works

- Value of the Project (Rs. in Crores) : 50.00

(iv) Pipeline for Conveyance of Desalination Product Water - Package - II

- Brief Details of the Project : 12 kms of 900mm Ductile iron Pipeline, supply laying and jointing including all related appurtenances and civil works

- Value of the Project (Rs. in Crores) : 29.00

(B) Name of the Project : From Tamilnadu Water Supply & Sewerage Board

(i) Water Supply in Tsunami affected areas in Kanyakumari District funded by ADB

- Brief Details of the Project : 55kms of PSC pipeline with Elevated & Ground Level storage reservoirs, pumping stations including Electrical Mechanical and Instrumentation

- Value of the Project (Rs. in Crores) : 29.00

L&T Bags EPCC Order For Methanol Reformer Package At RCF Chembur

Larsen & Toubro Ltd (L&T) has announced that the Company has been awarded an order for Methanol Reformer package as a part of Trombay Methanol Revamp Project for Rashtriya Chemicals and Fertilizers Ltd (RCF), Chembur.

This project is of paramount importance to RCF in order to enhance overall energy efficiency, reliability and life of the methanol plant along with augmentation of capacity from present 180 TPD to 220 TPD of methanol product. The Owner has retained M/s. Haldor Topsoe A/S of Denmark as the process licensor and Projects & Development India Ltd (PDIL) as the Project Consultant.

This order, valued at Rs 77 crores, comprises the Detailed Engineering, Procurement, Supply, Transportation, Storage, Fabrication, Inspection, Construction, Installation, Testing, Mechanical Completion and Assistance for Pre-Commissioning, Commissioning and Performance Guarantee Test Runs for the said project.

The order was bagged by the Company against stiff competition from internationally reputed Reformer suppliers, on the strength of its track record in execution of similar projects meeting strict quality requirements and conforming to stringent delivery schedule.

Mcnally Bharat Receives Order From SAIL At Rs 258.68 Crores

McNally Bharat Engineering Company Ltd has informed that the Company has received an Order for setting up of By-Product Plant for IISCO Steel Plant, Burnpur from Steel Authority of India (SAIL) valued at Rs 258.68 crores, inclusive of all taxes and duties.

The completion period shall be 29 months from the effective date of Contract.

Nagarjuna Construction Secures New Orders Totaling Rs 150 Crores

Nagarjuna Construction Company Ltd has informed that the Company has bagged new orders totaling Rs 150 crores. Out of this, the major order comprise of a project for construction of IV Phase Bridges in Karnataka for Karnataka Road Development Corporation Ltd (KRDCL) valued at Rs 109 crores and Construction of Water Treatment Plant for Ahmedabad Municipal Corporation, Ahmedabad valued at Rs 32 crores.

Ess Dee Mulls To Acquire Alcan Arm

Mumbai: Ess Dee Aluminium, whose promoter Sudip Datta once depended on Alcan for the bulk of his income, has joined the competition to buy the packaging business of the Montreal-based giant, which was recently taken over by Rio Tinto. Rio Tinto, the new promoter of Alcan, has already started negotiations with the three companies, they said, adding that the deal size is expected to be around $1 billion (Rs 4,000 crore), or 1.2 times the turnover of the target.

RAlcan makes packaging material for food and beverages, medical and pharmaceuticals as well as cosmetics and tobacco industries. For Ess Dee, the successful acquisition of the packaging business of Alcan will give it presence in 13 countries something which, otherwise, will take at least 10 years. It is learnt that DSP Merrill Lynch and Enam are advising Ess Dee on the acquisition. The fact that two domestic companies are in the fray to buy a business, which is much bigger in size, indicates the growing appetite of Indian companies for overseas purchase. Post-Tata Steel''s acquisition of Corus-Tata Steel is one-fourth the size of Corus Indian Davids are not shy of vying for the assets of global Goliaths.

Biocon Plans To List In Int''l Bourses

Will Biocon go the Sun Pharma way Hive-off its subsidiaries into separate entities and list them on the bourses The answer according to Biocon Chief Kiran Majumdar Shaw is a emphatic yes.Syngene and Clinigene are often referred as pioneers of the Indian custom and clinical services industry, now Biocon may be looking at listing them at the right time to unlock value.Biocon may also list itself on the international bourses in its effort to strengthen its pharmaceutical business and in all probability it is going to be the US market.

Kiran Majumdar Shaw says that US is a natural fit for the listing as it is a market, which fully knows how to value research driven pharmaceutical businesses.Biocon is also scouting for acquisitions; soon the company will have over $100 million in its kitty from the sale of its enzymes business. The company may utilise its internal resources and if the need be look at raising more money. Though rupee continues to be a worry for Biocon, it is learning to live with that fact and as always the company is positive on its research capabilities for some time.

BPCL Arm, Videocon In Agreement To Acquire Stake In Brazilian Oil Firm

Mumbai: Videocon Industries Ltd and Bharat PetroResources Ltd ( a wholly owned subsidiary of Bharat Petroleum Corporation Ltd) have jointly forayed into a pact with EnCana Corporation and 749793 Alberta Ltd of Canada to purchase 100 per cent share capital of Encana Brasil Petroleo Limitada (EBPL), a company incorporated in Brazil, for a consideration of about $165 million. The closure is subject to normal closing conditions, regulatory approvals and pre-emptive rights associated with certain underlying assets. The sale is hoped to finish in the first quarter of 2008. An oil exploration company, EBPL''s assets are 10 deepwater offshore exploration blocks in four concessions in Brazil. VIL and BPRL are equal associates in the consortium.

ICICI, SBI Apply For Singapore Licences - RBI

The Monetary Authority of Singapore (MAS) is considering full banking licence applications from State Bank of India and ICICI Bank, Reserve Bank of India deputy governor V. Leeladhar said on Thursday. India was also processing licence applications from Singapore banks, he said, but these were not conditional on the other licences being granted. State-run SBI is India''s largest bank, and ICICI is the country''s leading private-sector bank.He said applications from some Singapore banks for qualified full banking (QFB) licences in India were also being processed. I don''t think it is a quid pro quo. In matters like this there can''t be. Each problem will have to be tackled on its own, Leeladhar said.

If these two banks satisfy the requirement of the MAS they should be given licenses irrespective of whether we give branches here for Singapore banks or not, he said. Singapore''s DBS Group, Oversea-Chinese Banking Corp and United Overseas Bank have applied for Indian licences, India''s Economic Times newspaper reported on Sunday. The paper, quoting a senior Finance Ministry official, said SBI, Bank of Baroda and Bank of India may be given qualifying full banking licences in Singapore, which would enable them to open more branches in the city state.

NTPC''s Sri Lanka Power Plant To Receive New Site

New Delhi: National Thermal Power Corporation Ltd''s maiden foray outside the country a proposed 500-MW thermal station in Sri Lanka has faced a staggering block, with the original site proposed in the Trincomalee region of the island nation being dropped in view of security concerns. An alternative site is now being proposed by the Sri Lankan administration, in view of the worries raised by NTPC with regard to the original site.

The original site location recommended by the Sri Lankan Government for the NTPC-Ceylon Electricity Board joint venture station at Sampoor in northern Sri Lanka has been ruled out as being politically sensitive. NTPC had forayed into a Memorandum of Agreement with the Sri Lankan Government and Ceylon Electricity Board on December 29 last year to set up a 2x250 MW coal-based project in the Trincomalee region. The project is to be executed via a 50:50 joint venture between NTPC and the Ceylon Electricity Board. The proposed project is to be run entirely on imported coal and NTPC is eyeing at the option of coal imports from Indonesia and Australia.

TCS Insurance Solution To Help GIC''s Motor Insurance

MUMBAI: TCS Financial Solutions, a subsidiary of Tata Consultancy Services (TCS) has implemented TCS BaNCS Insurance Platform for General Insurance Corporation of India''s (GIC) third party insurance. TCS BaNCS Insurance solution will facilitate timely and accurate apportionment of premium, claims, service tax and other income and expenses, enabling an efficient multilateral reinsurance arrangement between the constituents of Indian Motor Third Party Insurance Pool (IMTPIP). The insurance product from TCS was a flexible and highly functional solution for the world''s leading insurance companies. TCS Financial Solutions delivers software solutions for the banking, insurance and capital markets industries worldwide. Insurers increasingly need system to run their business that are rule-driven, flexible and easy both to implement and maintain.

ICICI Prudential Life Joins Hand With CT Group

ICICI Prudential Life has launched India’s first one year Post Graduate Programme in Management and Insurance in association with CT Group of Institutions Jalandhar for the entire North-West region. The company, which is India’s largest private life insurer is partnering with leading business schools across India to create a team of well adjusted industry-ready professionals. Other Top B-Schools along with CT, where this programme has been launched are IILM, Delhi, XLRI, Jamshedpur, SP Jain Mumbai and ISBM, Pune etc.

It is a unique Programme happened first time in India in Insurance Sector. After clearing the necessary selection screening the candidate will get an Offer letter from ICICI Prudential mentioning that they will be placed as Executive Trainee after successful completion of this Programme. The offer letter is given before the start of the program. The selection process is very rigorous based on the test, G.D. and Interview conducted by ICICI Pru for graduates of 2005, 2006 and 2007 only. The students are being offered excellent salary package between Rs 3.14 lac to Rs 3.44 lac p.a. and hence this programme has an edge over MBA, the statement said.

The PGPMI Programme was launched in Maqsudan Campus of CT Group Jalandhar on July 21st 2007 by Dr Daljeet Singh Cheema, Advisor to Chief Minister, government of Punjab for a Batch of 90 seats. Dr Cheema while delivering his inauguration speech appreciated the step taken by ICICI Pru in association with leading Education Institution CT Group.

NTPC Plans To Enter LED Lamps Manufacturing

New Delhi: NTPC Ltd mulls to get into manufacturing Light Emitting Diode (LED) lamps, widely considered the future of lighting technology. It has joined hands with the Bangalore-based Society for Integrated Circuit Technology and Applied Research for making the lamps as they have frugal power consumption, considerably lower than even compact fluorescent lamps (CFLs). They are in the process of identifying the technology provider. An LED lamp is solid state lighting device that utilises light emitting diodes as a source of illumination instead of electrical filaments or gas. LEDs, besides being small, hardy, highly energy-efficient and long-lasting, do not have the mercury content issue associated with CFLs.

While LED lamps, till recently, were limited only to single-bulb use in applications such as instrument panels and electronics, subsequent improvements in technology have widened their application. Several cities in the country, led by Delhi, have started replacing their incandescent traffic lights with LED arrays because electricity costs can be reduced by almost 80 per cent. The LED technology has the potential to light up an entire village with less energy used by a single conventional 100 watt incandescent bulb. LED lamps provide the best hope for the ongoing rural electrification efforts, especially in case of off-grid connections.

RIL Gas Formulae: Govt Knocks-Off 13 Cents

In April this year Mukesh Ambani decided to auction gas from his gas fields, but it has taken the government four months to knock thirteen cents or Rs 5.25 off the price of gas that Reliance wanted. The Group of Ministers on Wednesday has set the landed cost of $4.2 per mmBtu gas which is 13 cents lower than the Reliance Industries original price. But Reliance sources have told that the consumers across India will need to pay more. For example in nearby Andhra Pradesh it will be around $4.7-4.8 per mmBtu. While in Gujarat and across the country it could be as high as $5.5-$6 per mmBtu, the formula will be valid for five years.

The EGoM formula does not apply to NTPC and Reliance Natural Resources Ltd which have sued Reliance because they already have contracted prices that are much lower for the gas.With the ministers coming out with the price formula, all attention shifts to the Bombay High Court which will take a judgment call on the contract dispute between RIL, NTPC and REL.

HCL Infosystems On A Comeback Trial

HCL Infosystems is on a comeback trail trying to diversify and grow their distribution business while at the same time looking to enter new areas.Nokia phones have not only been big business for the Nokia but for HCL Infosystems also, as the later has been their largest distributors. HCL got 70 per cent of its Rs 11, 875 crore revenue from distribution and 90 per cent of this distribution revenue came from distributing Nokia phones. But since last year Nokia has decided to do its own distribution in half of India cutting HCL''s potential business by half.But Ajay Chowdhary is not too worried, he feels that the huge growth in volumes has helped him tide over the crisis and HCL expects its Nokia distribution business to grow almost 25 per cent as compared to last year.

SBI Plans To Rise Rs 10,000 Cr By Dec 2007

SBI Chairman O P Bhatt is doing the balancing act trying to raise much needed capital for his bank while dealing with government''s reluctance to reduce its stake in the country''s largest public sector bank.While final decisions are still awaited, O P Bhatt indicated that the bank will finish raising capital this year.The bank is planning to raise Rs 10,000 crore and despite the delays fund raising is expected to be completed by December this year.O P Bhatt also said that a follow-on public issue remains the preferred option but other fund raising options like rights issue are also being considered.The flip-flop over SBI''s fund raising plans continues as the government tries to make up its mind. But it is not just SBI that is waiting for cues from North Block, other public sector banks are also looking for cues so that they can finalize their fund raising plans.

Tata Motors Dharwad Bus Plant Receives Karnataka Govt''s Approval

Pune: The Karnataka Government has given Tata Motors Ltd all the necessary clearance to start work immediately on a facility to manufacture luxury buses and vans at the Belur Industrial Area near Dharwad. It may be recalled that Tat Motors had declared the forming of a 51:49 joint venture company with Brazil-based bus maker Marcopolo SA last year for the manufacture and assembly of fully built luxury buses and coaches in India.

A Karnataka Government order stating that Tata Motors can start work on the massive, three-phase plan to manufacture luxury buses, vans, light commercial vehicles and components and parts in association with joint venture partners at Dharwad was issued on Sept 3. In addition to granting several concessions to the Rs 3,000-crore project, the Government has sanctioned the auto company''s request for an additional 300 acres to put up a vendor park for the manufacture of various parts, components and sub-assemblies. The first project (luxury buses and their components) involves an investment of Rs 325 crore in two phases by Tata Motors, and around Rs 90 crore by vendors. The second project manufacture of LCVs, vans and their components comprises a financial outlay of Rs 2,500 crore in three phases, and production will start by early 2011.

ICICI To Launch Infrastructure Fund

India''s ICICI Bank plans to launch a US$2 billion infrastructure fund to invest in ports, power and aviation projects, the Financial Times reports. The bank anticipates that Indian companies will invest about US$250 billion in infrastructure throughout the next three years. We already play a major role as term lenders in all the projects, said Chanda Kochhar, deputy managing director of ICICI. We feel that there is also a large amount of equity opportunity that we can take care of through the fund. Aside from domestic investors, foreign operators including Citigroup, Blackstone and 3i are starting India infrastructure funds. The government predicts the country will need US$470 billion of investment in the area in the next five years.

NMCE Unveils New Series Of Contracts

Ahmedabad: The National Multi-Commodity Exchange (NMCE) has unveiled new series in turmeric, soya oil, guarseed and chana desi for futures contracts. The new contracts in turmeric, soya oil and guarseed will expire on January 19, 2008, while the delivery period begins three days prior to that on January 16. The new agreements for chana desi will expire on March 20, 2008, while the delivery period will begin on March 17. The basis delivery centre for turmeric is Central Warehousing Corporation (CWC) warehouse at Erode in Tamil Nadu, and the additional delivery centre is at CWC, Nizamabad, in Andhra Pradesh. The delivery centres for guarseed are Jodhpur (basis centre), Bikaner, Nokha in Rajasthan and Deesa in Gujarat with freight discount through CWC receipt. The delivery centre for chana desi is CWC warehouse in Delhi.

Jindal Alliance Receives Bolivian Parliament Approval

New Delhi: The joint venture agreement inked between the Bolivian Government and Jindal Steel and Power Ltd (JSPL) to develop the El Mutun iron ore mines has cleared the first step with the Bolivian Chamber of Deputies giving its clearance. The Bolivian Parliament has two Houses the House of Deputies and the Senate. And the joint venture has got the permission from the House of Deputies. JSPL along with its subsidiary Jindal Steel Bolivia had inked a contract in July with the Bolivian Government for the development of the El Mutun mines, which is the biggest investment by an Indian company in South America. The JSPL said that the Bolivian Government was exploring the way to disburse the initial funding for the joint venture company. The contract inked with the Bolivian Government is to develop a 20 billion tonne iron ore mine and establishing a two million tonne steel plant, which is likely to be commissioned by 2010.

ICICI Not Interested On Foreign Banks

MUMBAI: ICICI Bank, the biggest private lender that has played a main role in India Inc''s overseas expansion drive, itself does not see any merit in taking over a foreign bank at the moment and prefers to grow via the organic route in the domestic market. ICICI Bank said that if anything was required for boosting the bank''s growth trajectory, it was more branches to service customers. ICICI has just about 1,000 branches compared to nearly 10,000 branches of the country''s largest bank SBI. There are huge opportunities in the Indian market. Even foreign banks are coming here only because of huge growth potential in the banking space it said. ICICI Bank also ruled out any foreign acquisition.

Canara Bank Ink JV For Life Insurance Co

Further to the announcement in March 2007, Canara Bank, HSBC Insurance (Asia-Pacific) Holdings and Oriental Bank of Commerce have formally signed agreement to jointly establish life insurance company in India.

The new company, Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited, will have access to over 40 million customers and nationwide distribution network of 3,600 branches throughout India.

The new insurance company aims to introduce a variety of insurance products, fulfilling the needs of entire spectrum of people, Chairman and Managing Director of Canara Bank M B N Rao said. While both Canara Bank and Oriental Bank of Commerce offer an extensive client base, HSBC brings in its insurance experience, product range and bancassurance capabilities. Under the proposed agreement, Canara Bank will take a 51 per cent stake in the new company, HSBC a 26 per cent interest and Oriental Bank of Commerce the remaining 23 per cent.

ICICI Bank To Mop Up Over $6Bn

Mumbai: ICICI Bank needs to mop up over $6 billion (Rs 244 billion) abroad in the current financial year to fund its international business. The need for resources is pretty large. Last year (2006-07), the bank mopped up $6 billion, but this year it''s going to be more than that because its growth itself is more. Recently, the bank mopped up $1.5 billion (Rs 61 billion) through syndicated loan overseas. Even domestically, need for deposits continue to be strong to meet the large asset base of the bank. ICICI Bank now hopes its credit growth to be around 20 per cent in the current financial year compared with 34 per cent last year. Global operation is largely fee-income driven than interest income. Apart from M&As, loan syndication, there are other kinds of fee income as well, like swap derivatives.

Most of ICICI''s global fee income comes from managing merger and acquisition deals of companies, loan syndication, and remittance income from retail investors. It also hopes global business to continue contributing around 20 per cent to the bank''s income and net profit in the current financial year. On lending side, the demand continues to remain strong, so while liquidity is there, there is also demand. It''s just that, growth scenario has changed. The bank''s loan book internationally is growing at over 50 per cent from a year ago. The bank''s total corporate loan growth rate is hoped to be 25 per cent in 2007-08, almost flat from the first quarter of 2007-08. The domestic loans growth is likely to be around 15-20 per cent.

There continues to be strong investment interest by foreign institutions, indicated by the huge response to the bank''s follow-on issue in June. The other indication is from the lending side as was noted in the $1.5 billion loan syndication that was done by 23 banks. Even now, foreign investors are evincing interest to pick up stake in ICICI Bank in the secondary market. Foreign institutional investors own 72.5 per cent in the bank, almost near the maximum limit of 74%.

Rcom To Beef-Up Enterprise Business

Anil Ambani''s Reliance Communications may have emerged a strong number two in the Indian telecom space, but high-end users that bring better margins and better revenues are still eluding the company.

While competitors like Hutch and Airtel are way ahead in the race, no wonder that the next big focus for Reliance Communications is to build up its enterprise services like Blackberry.

The margins in this business is 8 to 10 times higher than retail, also reflects on better ARPUs. It will certainly flow into our balance sheet and have a positive impact, President of Reliance Communications Prakash Bajpai said.

Currently Reliance Communications clocks about 14 per cent of its revenue from enterprise business and wants to go all out to take lions share of the market pie.

The recent $300 million Yipes acquisition is also an effort to take the fast lane to bolster its enterprise capability and tap into the $100 billion enterprise market opportunity globally.

Going forward focus for Reliance Communications is increasingly going to be on Enterprise services, one that will bring better margins. Launching services like Blackberry is one step in that direction, a market in which Reliance Communications has so far lagged behind.

RIL Buys Malaysian Based Polyester Firm

Mukesh Ambani is on global tour after acquiring GAPCO in Africa last week. The company has now stopped in Malaysia for polyester shopping.

Reliance has acquired Malaysian polyester firm Hualon for an undisclosed amount. Reliance expects to add $1 billion in polyester revenues from this acquisition.

The company expects to add additional 25 per cent polyester capacity with seven per cent share in the global market. Post this acquisition Reliance strengthens its No 1 position in the global polyester market.

Hualon is Reliance''s second polyester acquisition after Trevira in 2004. Reliance expects to strengthen its position in textile value chain. Through this acquisition RIL sees smother access to western markets and plans to launch innovative, high value premium products.

Dalal Street has also given thumbs up to this acquisition. The stock was one of the biggest gainers in the markets Monday. Last year Reliance generated cash profits worth $3.6 billion. Analysts say it is best for Reliance to deploy such reserves into business expansion.

SBI Provides Tata $1Bn For Corus Acquisition

Mumbai: The State Bank of India (SBI), the country''s largest lender, has come to Tata Steel''s assist for completing the fund mopping up for its $12.9 billion acquisition of Anglo-Dutch steelmaker Corus. The bank has accorded to give up to $1 billion to Tata Steel''s special purpose vehicle, Tata Steel UK, to refinance $7.2 billion of bridge loans taken for the biggest take over by an Indian company. Tata Steel had to turn to the SBI after some foreign banks backed out, thanks to the sub-prime crisis in the US and the credit squeeze that followed. About $500 billion of fund-raising has been caught in a global credit logjam caused by risk aversion among banks and otherinvestors. This is also the first acquisition financing of this size given by the SBI, which till now was involved in deals of less than $100 million (Rs 410 crore).

The SBI had mopped up close to $700 million $300 million under the medium term note programme and $400 million through innovative perpetual debt instruments which could have been used to fund the acquisition. Early last month, Tata Steel had to agree to pay 50 basis points more on a $1-billion, seven-year loan as the banks taking part in the loan syndication bargained with the underwriters for higher yield. The loan''s underwriters were ABN Amro, Citigroup and Standard Chartered. There has been as much as 200 basis point increase in credit spreads on Indian loan and bond issues since the last week of July, when the sub-prime crisis first struck international credit markets.

ICICI Lombard Emerges Lowest Bidder For Rail Passengers Cover

Leading private insurer ICICI Lombard is understood to have emerged as the front-runner to bag Indian Railways'' account to provide insurance cover to more than 650 crore passengers who travel by trains every year. ICICI Lombard is said to be the lowest bidder for providing insurance cover to passengers against death and disability in train accidents, industry sources said. The company is believed to have made a bid of Rs 0.0475 per person, resulting in a total premium of Rs 34.35 crore, pipping private sector rival Reliance General Insurance of the Anil Ambani Group. Four state-run insurers -- United Insurance, New Indian Assurance, Oriental Insurance and National Insurance -- were also in the race to bag the deal.

The cover could be up to Rs four lakh to the next of kin of passengers in case of death and lower in case of disability resulting from train accidents. When contacted, Vishakha Mulye, ICICI Bank''s Group Chief Financial Officer, told the company did not have any communication from the Railways on the issue. Asked as to who ICICI Lombard would be tying up with for re-insurance of the mega deal, she said: The partner and the size of re-insurance would be taken up at appropriate time we are yet to hear if we are the lowest bidder. ICICI Lombard is a joint venture between the country''s largest private lender ICICI Bank and Lombard, a part of Royal Bank of Scotland.

Blackstone, Temasek Eye Stake In LIC''s Firm

Five private equity investors including Blackstone and Singapore state investment firm Temasek are in talks with India''s state-owned Life Insurance Corp (LIC) to buy a 15 percent stake in its proposed credit card venture, the Business Standard said on Sunday.The other private equity companies are JC Flower, Fortress and 3i Group, the paper quoted a senior LIC official as saying.

LIC has already signed a memorandum of understanding with its partner GE Money and an agreement is likely to be finalised by the end of October, the paper said. LIC will hold a 40 percent stake in the venture while GE Money will own a 30 percent stake. Corporation Bank, LIC Housing Finance and LIC Mutual Fund will own a 5 percent stake each, the paper said. Industry sources said the Carlyle Group had also shown interest in buying a stake in the venture.

ICICI Bank To Raise $2b From Overseas Investors

ICICI Bank India''s most valuable, is seeking $2 billion from overseas investors to tap demand for roads, ports and power in the fastest-growing economy after China, following similar funds by Citigroup and Blackstone Group. The fund raising will probably be finished in about three months, Chanda Kochhar, deputy MD at the Mumbai-based bank, said on Friday. There''s a lot of demand for funds from sectors like power, airports, roads and telecoms, Kochhar said. The fund will have a lifetime of more than 10 years, she said.

Indian government plans to build $320 billion of infrastructure projects to ease bottlenecks that are constraining growth. GDP has expanded at a record 8.6% average pace since 2003, faster than any of the world''s 20 biggest economies except China. Citigroup, buyout firm Blackstone and Infrastructure Development Finance in February agreed to put $250 million each into an infrastructure fund that will invest $2 billion in companies.

In August, Europe''s biggest publicly traded buyout and venture capital firm 3i Group said it will invest a minimum of $250 million in an infrastructure fund that was set to raise $1 billion. India''s infrastructure story is just beginning and it has strong appetite for funds, said TP Raman, who oversees assets equivalent to $2.5 billion as MD of Sundaram BNP Paribas Asset Management. ICICI''s latest fund will only be available overseas as domestic investors have other ways to invest in infrastructure projects, Kochhar said. The fund does not promise or target any rate of return and it has not decided on how much it will leverage, she said.

We would initially begin with investments from the fund and later decide whether to leverage or not, Kochhar said.

Godrej & Boyce Looks At International Partner

Mumbai: Godrej Appliances, a division of Godrej & Boyce Manufacturing Company is eyeing at an international strategic partner to strengthening its prospects in a new venture, commercial refrigeration. The company is now looking the commercial refrigerator and the cold storage market, where it will look at infusing Rs 70-100 crore in a facility. The demand for chest coolers, commercial refrigerators is going to increase with the opening of more and more large-format retail stores. They are in the process of making an underway into this segment. For its commercial refrigerator segment, the company hopes the demands to come from sectors such as F&B, pharma and hospitality. Godrej Appliances is scouting strategic partnership with an international company in this segment. We are still studying the segment. In India, the cold storage industry is fragmented and there are very few established players.

Reliance Life To Spend Rs 2000cr On Expansion

Reliance Life Insurance Company will invest over Rs 2,000 crore to increase its reach and support an expansion programme over the next two years. The company also expects to earn new business premium worth Rs 3,000 crore during this financial year. We would like to achieve top rankings in the industry during this financial year. We are rapidly expanding all our channels of distribution, especially agencies, which have grown from 9000 to over 1,25,000. Our branch office network has increased from 118 offices last year to 340 now. We are planning to enter the rural and semi-urban markets, P. Nandagopal, CEO of Reliance Life Insurance said. Unlike other private insurers, who mostly depend on the bancassurance model to distribute policies, Reliance Life Insurance receives most of its premium income from agency distribution channels. The company is willing to introduce the bancassurance model but feels the agency distribution route is more cost-effective.

Tatas In Talks With Fiat For Jaguar, Rover

As the race for Jaguar and Rover assets hots up with equity players throwing in their muscle Tata Motors has come out with unique strategy. The company now wants to capitalise on its alliance with Fiat. According to sources Tata Motors is in talks with Fiat to jointly bid for Jaguar and Rover assets.

Fiat might pick up minority stake in the venture if Tatas win the bid. Ratan Tata is seeing synergy only in the Land Rover acquisition. Both the companies will finalise plans on joint bidding before the second round of bidding which scheduled for mid October.

While Citigroup, JP Morgan are advising Tata Motors on the deal, sources say that Tata Motors is through the first round of bidding and is currently in active talks with Jaguar and Land Rover managements.The official line is of course somewhat different. Analysts are all for the Tata-Fiat joint bid, since the high end car space is not really Tata''s domain. While Fiat will definitely extract sufficient synergies from Jaguar acquisition and Land Rover will fill the SUV gap in its portfolio.

Volvo Starts India Operations

Swedish carmaker Volvo, part of the Ford family is finally here. The company has kicked off its operations in India with two models-the S80 sedan and the XC90 SUV. Volvo will begin with three dealers this year and follow up with another eight or nine in 2008. The business is based on importing completely built units, but the idea of using Ford''s Chennai plant is definitely still on the cards. Volvo joins the slew of high-end carmakers keen to cash in on the big growth that luxury cars are seeing in India, but it has plans to bring in its smaller models only post 2008.

Bharti''s DTH Venture Gets Frequency Allocation

While Bharti''s mobile arm is still gasping for additional spectrum to expand its telecom business, its DTH venture seems to be facing no such problem.Bharti, which recently got a letter of intent from the government to start DTH services, has been allotted six transponders and six frequency bands to start DTH services.

Each transponder can handle between 10-15 channels allowing Bharti to start its services with 60-90 channels by early next year.But the battle for eyeballs will not be easy for Bharti. Apart from entrenched players like Tata Sky and Dish TV, Anil Ambani is ready with big plans for his DTH venture.

Sun TV and Videocon are the other two big players ready to enter the market. The paid DTH market, which is around 3.5 million subscribers, is expected to become 15 million subscribers market in the next four years.With each subscriber expected to fork out about $120 annually, the market will be between $2-2.5 billion. Telcos like Bharti and Reliance now have transponders as well as frequencies in place, which means they can go for a rapid pan India rollout.These companies are sure to replicate the aggressive strategies they have employed in the telecom business, which could lead to a pricing war in the DTH market pushing down tariffs and putting non-serious players out of business.

Mastek To Mop Up Rs 150 Cr For Expansion In Insurance

Mumbai: Mumbai-based IT company Mastek plans to mobilize around Rs 150 crore ($30 million) through the issue of overseas convertible bonds, external commercial borrowings or any other securities. The company plans to use the funds for acquisitions and expansion of existing subsidiaries. The company is looking for acquisitions in the insurance space and in companies that are addressing the government vertical. Mastek wants to acquire such firms which will provide them skill and access to the huge e-governance market in the US. While the company wants to increase its revenue shares from these two regions, it is also keenly looking for specific state government led projects in the domestic market. For FY07, the company''s revenues were Rs 810 crore ($184 mn). It has close to 3,400 employees and has presence in the UK, Japan, South East Asia and the US.

ICRA In Mou With State Bank Of India To Rate Bank Loans Under RBI''s New Capital Adequacy Framework

ICRA Ltd has informed that the Company and State Bank of India (SBI) have signed a Memorandum of Understanding (MoU) under which the Company will assign ratings to the Banks loans and its other exposures under the standardized approach of RBIs New Capital Adequacy Framework for Basel-II.

In this regard the Company has issued following Press Release:

Credit rating agency ICRA Ltd (ICRA) and State Bank of India (SBI) have signed a Memorandum of Understanding (MoU) under which ICRA will assign ratings to the Banks loans and its other exposures under the standardized approach of RBIs New Capital Adequacy Framework for Basel-II.

ICRAs ratings for the standardized approach would be carried out under its Line of Credit rating service and would enable SBI to assign the new risk weights applicable to its borrowers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBIs above guideline.

To assist potential and existing borrowers of SBI in obtaining ratings, ICRA is offering special terms to the clients of SBI covered by the MoU.

The MoU between ICRA and SBI seeks to deliver a number of benefits to the SBI as well its clients. For SBI, ICRAs Line of Credit ratings would assist in implementing RBIs New Capital Adequacy Framework under Basel-II.

Godrej To Enter Commercial Refrigeration Biz

After establishing a toehold in retail, Godrej Group now wants to get into the back end. Godrej Appliances is all set to enter the commercial refrigeration market with initial due diligence already underway. Godrej plans to invest around Rs 70-100 crore for setting up a new facility. The company aims to start this venture in this financial year. The potential areas that it plans to tap include food, beverages, pharma and hospitality.

In India, the commercial refrigeration market size is said to be in the tune of Rs 1,200-1,500 crore with Voltas, Blue Star as category leaders. With significant revenue growth expectation, company was also exploring the option of having a strategic partner for this venture and wants to diversify its product portfolio, which currently only restricted to households. This is a strategic move by Godrej Appliances to diversify from household products to commercial refrigeration segment.

RIL-IPCL Merger Becomes Effective

The country''s most valuable company by market capitalisation - Reliance Industries has said that the amalgamation of IPCL with itself has come into effect from September 5.The certified copies of the orders of the Gujarat and Bombay High Court, sanctioning the scheme of amalgamation of IPCL with Reliance Industries, were filed with the respective registrar of companies on September 5.

Earlier on September 3, the Gujarat High Court approved the scheme of amalgamation of IPCL with Mukesh Ambani-controlled Reliance Industries. In June 2002, the government as part of its disinvestment programme sold 26 per cent of its equity in IPCL to Reliance Petroinvestments Ltd (RPIL), a Reliance Group company. RPIL acquired an additional 20 per cent equity shares through a cash offer in terms of SEBI (Takeover Regulations) and now holds 46 per cent of the company''s equity. RIL ended the day at Rs 1,987 levels, up 1.5 per cent or Rs 29. IPCL at Rs 388 levels ended the day flat with a marginal gain of 0.6 per cent or Rs 2.

LIC To Enter Credit Cards With GE Money

Life Insurance Corporation of India, the largest life insurer in the country, is all set to offer credit cards. The corporation has entered into an agreement to create a credit card company with GE Money India, Corporation Bank, LIC Housing Finance Ltd and LIC Mutual Fund. LIC will hold the largest stake in the new entity at 40 per cent, followed by GE Money at 30-35 per cent. While around 10 per cent stake will be sold to financial investors, the rest will be held by Corporation Bank, LIC Housing Finance and LIC Mutual Fund.

The new entity will be set up with a capital base of Rs 150 crore, and the joint venture partners will finalise the agreement by end-October. LIC had engaged KPMG to study the prospects of entering the credit card market and identify joint venture partners. Through this joint venture, LIC aims to offer its policyholders the facility to pay their premium with LIC''s own credit card.

The new venture will use the extensive branch, ATM and sales distribution network of LIC and Corporation Bank. GE Money will provide its global and local expertise in credit cards, business management processes and technology-driven platforms GE Money, a unit of General Electric Company, operates in over 55 countries and has 10 crore cards in force. GE Money is part of a strategic joint venture in SBI Cards.

Neyveli Lignite Plans To Augment Mining Capacity

Neyveli Lignite Corporation is drawing expansion plans for increasing mining and power generation capacity during the 12th Five Year Plan. It plans to expand its mining capacity to 61.9 million tonnes per annum (mtpa) from the present 24 mtpa and power generating capacity to 11,990 Mw from 2,490 Mw. The proposed capacity addition will be from projects under implementation and through projects under formulation, said S Jayaraman, chairman and managing director, at the company''s 51st annual general meeting recently. The power sector in the country is all set to grow at a faster pace with massive capacity additions in the next 10 years. Accordingly, the company has submitted a number of power project proposals for the 11th and 12th Five Year Plan periods, entailing an investment outlay of about Rs 50,000 crore. The company has proposed two 1,000Mw projects in Tamil Nadu, two projects (250 Mw and 500 Mw) in Rajasthan, a 2,000-Mw project in Orissa and a 1,000-Mw project in Gujarat in addition to its mines expansion programme. NLC is also exploring opportunities to establish coal-based power projects in collaboration with Northern Coal Fields Ltd, Central Coal Fields Ltd and South Eastern Coal Fields Ltd, the three subsidiaries of Coal India Ltd.

It also intends to develop underground coal gasification (UCG) projects to tap deepseated as well as shallow lignite deposits which are not amenable to conventional mining. To this effect, an agreement has been entered into with ONGC and suitable lignite blocks identified for development. During the first four months ended July 31, 2007, lignite production stood at 7.49 million tonnes as against 6.55 million tonnes in the same period a year ago, registering an increase of around 14 per cent.

LIC Likely To Bid To Buy 26% In IFCI

Life Insurance Corporation of India (LIC) is looking at the option of bidding for IFCI. The Delhi-based term-lending institution has invited bids for a 26% stake in the company. The bids will close on September 14, 2007. According to sources, the country''s largest insurance company has been approached by a number of private equity firms and hedge funds to bid for the IFCI stake as a consortium. However, senior officials from LIC said that they would prefer to bid alone. IFCI has said that a consortium of four members can apply for 26% stake, but each consortium should nominate a lead member. Private equity funds and hedge funds are keen on LIC or IDBI as their lead member. Among Indian entities, Punjab National Bank (PNB) has shown interest in acquiring 26% in IFCI. Similarly, several foreign banks and private equity firms have approached IDBI to bid as a consortium for IFCI. Even as many foreign entities have shown interest in IFCI, sources said the Central government is very keen that the controlling stake continues with Indian financial firms.

The FI, too, has indicated the applicant itself should be in the business of financial services. These are some of the main reasons for private equity firms and hedge funds looking at bidding as consortium with Indian players like IDBI and LIC. IFCI has also stipulated that there would be a lock-in period of, at least, three years for the investor who acquires 26% stake in it. According to the criteria set by IFCI, the applicant''s asset book should not be less than Rs 10,000 crore or it should have a net worth of Rs 4,000 crore as of March 2007

BSNL To Offer Net Telephony Soon

BSNL broadband users will be able to make international calls to any part of the world for as low as Re 1 per minute through their fixedline phones. The PSU will be soon floating a global tender for technical tie-up to offer internet telephony services across the country. BSNL is looking to offer internet telephony, or Voice Over Internet Protocol (VoIP), by the year end, a top company official told ET on condition of anonymity. That may make BSNL the second telco after MTNL to offer VoIP, where subscribers can enjoy ultra-cheap ISD calls without even having a computer at home. Last month, MTNL, which offers telecom services in Delhi and Mumbai, had launched internet telephony in these metros by utilising its broadband network. MTNL had tied up with Aksh Optifibre to be its network and technical partner to offer VoIP services. As per the deal, Aksh will invest about Rs 110 crore towards enabling MTNL''s VoIP service during the next three years. The MTNL offer is open to those who did not have a PC at home. Such customers are required to subscribe to MTNL''s broadband connection (which comes for monthly rentals starting at Rs 199) and buy an analog telephone adaptor (ATA) for Rs 1,500. The adaptor converts the fixedline phone into an IP (internet protocol) device so that the user does not have to use a computer and carry it over the broadband internet line. Globally, this kind of service, which is fixed to one location, is generally offered by broadband internet providers such as cable and telephone companies as a cheaper flat-rate equivalent to the traditional landline service. While private operators have so far refrained from matching MTNL''s move, BSNL''s entry into this segment is set to change the market dynamics and force other operators to follow suit. So far, all major telcos have not ventured into internet telephony as they fear it will eat into their revenues from traditional mobile and fixedline calls.