Rs 1,000 crore package for ASC Enterprises
New Delhi: Satellite communications project of media entrepreneur Subhash Chandra, ASC Enterprises, will receive a loan package of Rs 1,000 crore from a consortium of financial institutions and banks.

The consortium is led by Industrial Finance Corporation of India and includes the Industrial Development Bank of India, ICICI, the State Bank of India, Uco Bank and Bank of India. The consortium has taken advice from a technical committee on the viability of sanctioning the loan.

ASC Enterprises plans to commission the project on a 1:1 debt-equity ratio While Rs 1,000 crore has been promised by the consortium, another Rs 800 crore is required at the final stage of the project. Besides Mr Chandra, other promoters of the company are Videsh Sanchar Nigam Ltd and Lockheed Martin.
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Tata fund not to advance money for elections
Mumbai: The Tata Electoral Fund will not be collecting any money from group companies to fund the forthcoming elections. The Economic Times said in a report that the fund has not given any reason for its decision.

The Tata Electoral Fund was set up two years ago to collect voluntary contributions from group as well as other companies and offer donations to recognised political parties for election purposes.
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Allied Boston to invest $1 billion in India

Mumbai: Allied Boston International, one of the largest investment funds in the United States, will invest $1 billion in Indian companies in the form of loans and equity during 1999-2000. The company has entered into a memorandum of understanding with Fedex Securities, a financial services company engaged in non-fund activities. Fedex will identify avenues for investment for Allied Boston.

Allied Boston is the US arm of the Geneva-based Allied group, which operates in seven countries with disbursals of over $72 billion worldwide.
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John Fowler quits JV plan with German firm
Bangalore: John Fowler (India) has shelved plans for joint venture with Filterwerk Mann+Hummel Gmbh, Germany.

However, in another joint venture between John Fowler India and Dickinson Legg Ltd, UK -- Dickinson Fowler Ltd -- has been incorporated for the manufacture of tobacco processing equipment. The new venture has been set up with an initial investment of Rs 16 crore with both partners holding 50 per cent equity in the venture.
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SmithKline request for duty exemption rejected
New Delhi: The ministry of finance has turned down SmithKline Beecham Pharmaceuticals request for exemption from import tariff for its hepatitis vaccine.

The company had contended in its representation that since hepatitis is projected to be a deadlier disease than AIDS, companies making the vaccine available in the Indian market should be encouraged by the government.

The ministry of finance has decided to withdraw the exemption and levy about 60 per cent duty on the high volume imports, including 35 per cent basic customs duty.

The department of science and technology has told the finance ministry that the Centre for Molecular Biology has developed indigenous hepatitis vaccine at a lower cost, including reasonable margins to wholesalers and retailers.
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Birla companies to focus on core activities
Mumbai: Birla companies forming part of the Rs 20,000-crore AV Birla group will not diversify into non-core areas and will not invest in ventures that do not support the core business of the investor company, Kumar Mangalam Birla, chairman of the group, has said.

Mr Birla said the group companies are actively exploring possibilities of unwinding investments already made by operating companies in unrelated areas.

This strategy has been revealed in Mr Birla's letter to the shareholders of aluminium major Hindalco. He also said if growth opportunities are not found in such businesses, the group will use cash generated from such businesses in a manner that increases shareholder value, meaning pursuing payout policies and share buybacks.
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Otis cuts work force through VRS
Mumbai: Otis Elevator Company has completed a trimming exercise. Around 350 of its 470 employees at the Kandivali plant have opted for a voluntary retirement scheme.

An Otis spokesman said all retiring employees earned the Rs two-lakh incentive, which the company offered it a minimum of 150 workers in the plant opted for VRS. The retiring employees were also eligible for Rs 5 lakh as compensation under the VRS.
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Canara Bank to appeal against BIFR order
Mumbai: Canara Bank will appeal to the Appellate Authority of Industrial and Financial Reconstruction against the 9 July order of the Board for Industrial and Financial Reconstruction declaring Amitabh Bachchan Corporation Ltd as a sick company.

Canara Bank, which had advanced Rs 10 crore to the company, will file an appeal within a month and simultaneously urge the Bombay high court to pass orders for attachment of the palatial bungalow of Amitabh Bachchan at Juhu in Mumbai.
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Duracell, Sony to outsource battery production
Calcutta: Duracell India and Sony have approached Eveready Industries, manufacturers of dry cell batteries to utilise its capacity as an outsourcing exercise.

Talks between the Khaitans of Eveready and Duracell and Sony have taken place in this regard.

Indian Shaving Products market Duracell batteries.
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RPG group, Webel in dispute over land
Calcutta: The RPG group and the West Bengal Electronics Industry Development Corporation are locked in a battle for a prime plot of land in Calcutta. The one-acre plot, situated in the Salt Lake Electronic complex, has been taken by the Goenkas from Webel at Rs 10 lakh in 1990 to set up a CD manufacturing facility. Since the proposed venture has failed to take off, the Webel wanted the plot back, which the group has refused.

The plot was purchased by Phillips Carbon Black of the group.
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Essar to reduce debt to FIs
New Delhi: The Essar group plans to reduce its institutional exposure by Rs 4,765 crore. Ravi Ruia, vice chairman of the group, says the group's debt to financial institutions will come down from Rs 7,957 to Rs 3,192 crore.

The financial institutions are taking up the debt reduction plan on 13 July when they are also to decide whether or not they should extend a Rs 1,075 crore loan to Essar Steel to refinance its floating rate note, which is due for redemption on that date. If the loan does not come through, Essar Steel will have to default on the FRN, the first time ever by an Indian company.

The debt reduction involves divesting 100 per cent in Essar Power, selling 51 per cent stake in Essar Minerals and hiving off Essar Oil into a joint venture with Bharat Petroleum Corporation. The new owners will be responsible for repaying the loans to the financial institutions.
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Reliance to take McKinsey as consultants
Mumbai: Reliance Industries is considering engaging an international consultants group for its entry into the next millennium.

The group is in talks with McKinsey & Co for this purpose, the Business Standard reported.

In addition to the existing businesses, the group has planned initiatives in power, telecommunication and agriculture,. The consultants are expected to advise on how to go about these unrelated businesses besides identifying the future growth potential of petrochemical and petroleum businesses.
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Fiat celebrates centenary
Rome: Fiat celebrated its centenary on 11 July expressing confidence that it can take up challenges for the next 100 years.

In an interview to the La Stampa newspaper on the eve of a massive birthday bash at Turin, Gianni Agnelli, honorary chairman of the company, said Fiat had helped drive Italy's development over the past century.

Asked how he wanted Fiat to be remembered in 10 years, he said, "As a great concentration of human, managerial and technological resources that helped Italy carry her head high abroad and keep the country in the vanguard of world development."

Fiat has revealed a deal with Mitsubishi Motor Corporation to produce a sport utility vehicle for Italy. But, many in the industry feel this is no major alliance, with which Fiat can hope to remain in the top league.
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Sun Life to exit life insurance
London: Sun Life & Provincial Holdings is poised to sell for about 600 million pounds the life insurance business it gained as part of its 3.3 billion pounds takeover of Guardian Royal Exchange early this year.

The Telegraph of London said investment bank Donaldson, Lufkin & Jenrette has been sounding out potential buyers and is thought to have been approached by more than five UK and foreign groups. 
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Swisscom buys stake in Debitel
Zurich: Swisscom, Switzerland's national telephone utility, is paying a total of $2.2 billion for a near 80 per cent stake in Debitel, Germany's third largest mobile phone company.

The deal will double Swisscom's customer base to 7 million and give it a significant presence in the fastest growing segment of Europe's telecom market.

Debitel was founded eight years ago with a staff of eight. It is today Europe's biggest independent network service provider with 8,000 outlets.
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