Suzuki Motor refuses to buy govt stake in MUL
New Delhi: Suzuki Motor Corporation (SMC) of Japan has refused to accept the government’s offer to sell its stake in Maruti Udyog Ltd. (MUL) and has suggested same be sold to public or new partners. The decision followed the first round of informal discussions, the company officials had with the government last week.

The government had proposed a number of options for disinvestment of its equity in MUL including sale of its share to SMC. A high level team of SMC had arrived in Delhi in November to hold discussions with government officials and explore the proposals for divestment in MUL. SMC is also believed to have suggested to the government that it sell its stake to a new partner with the condition it be with the approval of the Japanese company.

Suzuki, the Japanese partner in MUL has agreed in principle for government divesting its 50 per cent stake in the auto venture. However, SMC is not in favour of divestment plan ushering in a second strategic partner in MUL.

The disinvestment ministry would have to now make a fresh proposal for sale of government equity to the cabinet committee on disinvestment (CCD) for its upcoming meeting on December 23. A final decision on divestment of government's 50 per cent equity and other modalities are expected to be finalised at this CCD meeting, to be presided over by the Prime Minister Atal Bihari Vajpayee.
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Fortune ranks Sify among top 10 tech companies to invest
New York: Satyam Infoway, India's largest internet service provider, is among the 10 top technology companies world-wide recommended for investment by Fortune, leading American business magazine. "Satyam's rich media content and large Internet subscriber base could position it as the AOL-Time Warner of India," the magazine has said in a recent issue.

In fiscal 1999-2000, the company posted a loss of $8 million on revenue of roughly $15 million. Quoting analysts of Salmon Smith Securities, the magazine said Satyam's revenues would grow to $54 million this fiscal and its losses will widen to $12.9 million.

But the company should turn the corner in 2001, when Salmon expects Satyam to post first net profit of $6.3 million and net profits to quadruple the following year. Till then, Satyam should remain financially stable, with $220 million in cash from two well-timed Nasdaq stock offerings earlier this year, says the magazine.

Others top-notch tech companies mentioned in the Fortune report include five European companies - Alcatel (French), Nokia (Finnish), STMicroelectronics (Swiss), Philips (Dutch) and Kudelski (Swiss). The list also included two Chinese, one Japanese and one Singaporean company.
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BSES Telecom charts Rs 500-cr broadband plan
Mumbai: BSES Telecom, the telecom subsidiary of power utility BSES is preparing to kickoff the first leg of its Rs 5000 crore broadband services plan in January 2001. The company is presently implementing a trial project in the western Mumbai suburbs of Bandra and Khar involving 100 households.

The BSES Telecom’s plans have been delayed due to problems in top-level decision making with its former CEO Mr. D K Nimal quitting the post within three months of joining in July this year. Mr. Guru Hariharan, the new CEO, formerly with the Mumbai-based paging company Easycall Paging, formally took charge at BSES Telecom on December 1, 2000.

The broadband system offers connectivity that comes free of dial-up hassles and telephone bills. The cost per connection is Rs 950 per month and a one-time charge of Rs 3,000. Once the ISP achieves a mass subscriber base for broadband connectivity, it will be in a position to bring down the per month connectivity charges to as low as Rs 200. The BSES is targeting a 500,000-subscriber base by 2005.
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New York Life to pick 3 per cent stake in Pipavav port
New Delhi: New York Life (NYL), the $500-billion US-based insurance company is planning to take a $10 million equity stake in the country's first private sector port project at Pipavav in Gujarat. The proposed acquisition equity stake estimated to cost around Rs 45 crore will allow the American insurance giant to take a 3 per cent stake in the enhanced equity Gujarat Pipavav Port Limited (GPPL).

The shareholder agreement with NYL is likely to be signed by January 15, 2001.

Seaking Infrastructure Ltd., the principal promoters of GPPL presently holds 45 per cent in GPPL while PSA Ports of Singapore is a 26 per cent partner in the 10.8 million tonnes capacity port, which built at an estimated cost of Rs 800 crore. Recently Maersk, one of the largest container carriers in the world has picked up 12 per cent equity in the project. The other major single entity holding significant stake in GPPL is the UK-based Commonwealth Development Corporation (CDC).

Located in Saurashtra coast of Gujarat, the Pipavav port has three dry cargo berths and one LPG/liquid cargo berth. The port has handled 2.5 million tonnes of cargo during 2000.
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Eveready to raise Rs 300 crore through restructuring plan
Calcutta: Eveready Industries (India) Ltd. has planned to raise Rs 300 crore, through the dilution of minority stake in its battery business and outright sale of tea gardens or transfer of assets to group companies. The company would mop up Rs 100 crore from hiving off its minority stake in batteries division to a strategic partner, while Rs 200 crore is to be generated from selling or transferring tea gardens.

The fund-raising plan aimed at retiring high-cost debt and enhancing shareholders' value, forms a part of a three-pronged strategy to revitalise the tea and battery major. In the process, the company hopes to reduce its debt burden from Rs 644 crore (as on March 31, 2000) to Rs 344 crore.

As a first step, Bishnauth Tea, a tea company, is being merged with Eveready, which has Rs 900 crore business-from its tea and battery businesses. In the second stage, the group will spin off its battery business from the merged company into a separate entity. In the third and final phase, a part of the equity of the battery company is to be hived off to a foreign company.

Several battery majors, including some of the Korean companies and the US battery major Gillette, are believed to have expressed interest to forge a strategic alliance with Eveready.
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ONGC readies plan for Bombay High renewal
New Delhi: The Oil & Natural Gas Corporation (ONGC) has decided to re-appoint CFP, the French company to recommend Enhanced Oil Recovery (EOR) methods for Bombay High North. The French company’s recommendations could now be implemented in the second phase of the Bombay High’s re-development plan, which is expected to be shortly cleared by the ONGC board.

CFP of France, have acted as consultants for Bombay High for nearly ten years.

ONGC and its consultant, Gaffney, Cline and Associates had decided on a water injection method to enhance oil recovery in Bombay High, convinced that this is the best method for the purpose. But the advisory council attached to the directorate of hydrocarbons differed with this prescription and recommended polymer injection as the right solution. The ONGC management thought the best way to break the stalemate was to induct CFP to make its recommendations.
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