Insurance entry norms for banks eased

18 March 2000

Hudco to securitise Raheja rentals for Rs 60-crore loan
Bangalore: In an unprecedented move, the Housing and Urban Development Corporation has agreed to securitise rentals the Raheja group expects to be paid by Philips International. The deal has been arranged for a Rs 60-crore loan Hudco is giving for the Millennium Towers, a software technology park the Rahejas are building in Bangalore.

Hudco will disburse Rs 28 crore initially, and the balance as the project progresses. It is believed that Philips International will move into a 1.75-lakh sq ft area of the Millennium Tower by November 2000.

17 March 2000

Insurance entry norms for banks eased
Mumbai: It will become easier for banks to enter insurance with the Reserve Bank of India withdrawing the requirement that banks have non-performing asset levels of one percentage point below the industry average in order to start an insurance business. The RBI has also modified the maximum stake rule, allowing banks to retain up to 10 per cent equity in an insurance firm.

46 FDI proposals cleared
New Delhi: On 16 March industry minister Murasoli Maran cleared 46 foreign direct investment proposals worth Rs 802 crore. Of these, 19 proposals involving aggregate investments of Rs 494.55 crore are from the information technology sector.

The companies whose applications have been cleared include SSI, whose Rs 435-crore global depository securities has been approved, and Nestle SA, whose application for raising its holding in its Indian subsidiary by five percentage points has been passed. Caltex has been allowed bring in Rs 180 crore for various infrastructure projects for import, storage and distribution of LPG.

Others include:

Universal ABB Power Cables, for issue of 13 per cent cumulative redeemable preference shares worth Rs 30 crore for expanding activities into insulated power cables with accessories.
Dana Corporation, to create a wholly-owned subsidiary with an investment of Rs 30 crore, for the design, manufacture, contract for buying and selling, export and import of highway components.
Chaitime, for setting up a wholly-owned subsidiary for creating and designing of websites for Indian ethnic population worldwide with an investment of Rs 22 crore.
Asia Online, Hong Kong, for a wholly-owned subsidiary with an investment of Rs 21.5 crore to develop, promote, engage and undertake business of providing various information technology related services.
Citicorp Finance (India), to acquire 74 per cent equity in an unnamed downstream venture by bringing in Rs 14 crore.
ABB Holdings (South Asia), for acting as a holding company for ABB Switzerland's investments in India.
Schenectady India, which is into manufacturing of wire enamels and insulation varnishes and phenolic resins, to increase its foreign holding.
Taib Capital Corporation, engaged in underwriting, distribution and research functions in the capital markets, to increase its holding in the Indian venture to 74 per cent from the current 51 per cent by bringing in an additional Rs 16.35 crore.
Carlsberg for manufacture, distribution and sale of beer.
Sembawang Shriram Integrated to increase the foreign holding from 97 to 100 per cent by bringing in Rs 7.59 crore.
Thermax Energy Performance Service Ltd, to dilute its holding by one per cent to 49 per cent.
MTL Instruments, to increase its foreign holding from 74 per cent to 100 per cent by bringing in Rs 4 crore.
H2mG, to set up a wholly-owned subsidiary for providing IT-enabled Internet and e-commerce related back-end services and content provider.

Prudential norms for housing finance cos
New Delhi: The government has, prescribed prudential norms for housing finance companies, which it has issued through the National Housing Bank. The aim is to keep non-performing assets in check.
The NHB guidelines relate to issues like income recognition, accounting standards, asset classification, risk weighted assets, capital adequacy and investments by HFCs. They prevent a housing finance company from lending against its own shares.

Sidbi Act amendment approved; $500-million line
New Delhi: On 16 March the Lok Sabha approved changes to a bill seeking to amend the Small Industries Development Bank of India Act, 1989, which provides for establishment of a principal financial institution for promoting, financing and development of industrial concerns in the small-scale sector. The amendments, moved by minister of state for finance Babasaheb Vikhe Patil, have already been approved by the Rajya Sabha.

Meanwhile, the US Exim Bank will extend a $500-million line of credit to the Small Industries Development Bank of India for financing the sourcing of capital goods and technology by the domestic small-scale industry.

Rs 20,000 crore lost power theft
New Delhi: According to Union power minister PR Kumaramangalam, India is losing around Rs 20,000 crore annually on account of theft of power. He says 'technical losses' account for a much lower part of the transmission and distribution losses than theft.