VSNL cuts leased line rates in most cities
Mumbai: VSNL has cut the rates of Internet leased lines by 40 per cent across all centres, except Mumbai and Cochin, with effect from Thursday. The cut brings leased line tariffs in cities like Kolkata, Chennai and Delhi almost at par with Mumbai and Cochin. VSNL slashed tariffs by 70 per cent in Mumbai and Cochin in January this year.

A 64 kpbs leased line will now cost Rs 2.4 lakh per annum compared with Rs 4.25 lakh. An 8 mbps line will cost Rs 85.20 lakh compared with Rs 140 lakh. In Mumbai and Cochin, which are connected to international bandwidth carriers by undersea cables, a 64 mbps leased line costs Rs 2 lakh. The tariffs at these two centres were reduced by 70 per cent with effect from January.

VSNL has also announced a reduction and rationalisation of co-location and Web hosting tariffs. Under the new scheme, the ISP will provide shared and dedicated Internet LAN ports with speeds up to 100 mbps to customers who have located their servers in VSNL's premises. VSNL also announced the continuation of the scheme to provide concessional tariffs to retail consumers for its regular Internet package.
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RBI cuts interest rates
New Delhi: The Reserve Bank has cut its key interest rate by 0.5 per cent on Thursday, in quick follow up of Budget proposals which has sought to raise growth and trim the fiscal deficit.

The half-point cut in the RBI's Bank Rate to 7 per cent – is the the second reduction in its benchmark rate in the last two weeks. The RBI's rate cut is widely expected to spur investments.
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ICICI Venture to launch biotech fund
Bangalore: ICICI Venture will launch a biotechnology fund shortly with a corpus of Rs 50-100 crore. The venture capital arm of ICICI has already had some exposure to biotech firms through its general funds. To tap the growing opportunities, ICICI has now decided to have a corpus specific to the biotech sector.

The wholly owned subsidiary of ICICI will invest in start-ups as well as existing enterprises. As India is believed to be on the threshold of a biotech boom, the company has mooted the biotechnology fund after analysing the prospects of the industry. ICICI Venture has its exposure in biotech firms like Ajanta Pharma, Bangalore Genei, Biocon, Biochemizyme, Intas Pharmaceuticals and Morepen Laboratories and Neuland Laboratories.

The funds will be extended to a company on the basis of its technological back-up and research work. The company is giving a final shape to the financing pattern and the size of the fund.

Presently, investments are made out of four active funds: ICICI Global Opportunities Fund, ICICI IT Fund, ICICI Technology Incubator Fund and ICICI Equity Fund.
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ING Vysya Life Insurance gets IRDA nod
Mumbai: IRDA has granted an in-principle approval to ING Vysya Life Insurance -- the joint venture between ING Insurance, The Vysya Bank and the Damani Group. The company plans to deliver value-added and need-based products and services via easily accessible distribution channels.

ING Vysya Life plans to launch its products "within a short period". The insurance products will include innovative products for all segments such as the self-employed, salaried and the rural market. The company is building professional sales force and customer services supported by marketing, training, technology and finance functions, and is developing novel distribution channels to sell these insurance products.

ING Vysya Life will commence operations with its corporate office in Bangalore, supported by branch and regional operations in Delhi and Mumbai. It plans to expand operations to other cities later this year.
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HDFC lowers housing-loan rates to 12.5 per cent
Mumbai: The Housing Development Finance Corporation (HDFC) has lowered its lending rate by 50 basis points. It will now offer home loans at 12.5 per cent — the lowest rate offered since its inception. It has also cut its fixed deposit rates by 50 basis points.

The lower interest rate would mean that a 15-year loan of Rs 12 lakh would be available against an equated monthly installment of Rs 15,077. A loan of this size would enable the borrower to fully utilise the tax exemption available on interest paid toward housing loans.

An exemption of Rs 1.5 lakh, announced in the Budget and applicable for the next financial year, would result in tax savings of over Rs 45,900 for the first year for those at the highest tax bracket. The deposit rates before the half percentage point rate cut ranged from 9 per cent for one year to 10.25 per cent for five years.
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ITC makes counter-offer for VST at s 115 a share
Calcutta: ITC Ltd. has reportedly made a counter-offer for 20 per cent of VST Industries which is the target of a hostile takeover bid by Mumbai-based broker RS Damani, who has offered Rs 112 per share.

ITC will offer Rs 115 per share, which is higher trumping the Damani offer but still 5.2 per cent lower than VST’s closing price of Rs 121 on Thursday. Offer documents have been filed on Thursday with the Securities and Exchange Board of India.

ITC’s shares on Thursday meanwhile closed 2.03 per cent lower at Rs 762, bringing its decline over the past two days to 8.28 per cent.
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New drug policy in June
Mumbai: The Union government is likely to announce the new drug policy in June. The new policy is expected to drastically prune the drugs list under the Drug Price Control Order (DPCO) in line with Mr. Sinha’s budget assurance to do away with the policy of administered prices.

Union ministry of chemical and fertilisers is reportedly in the final stage of drafting the new drug policy. Meanwhile the expert panel formed by the ministry in to advise on the policy has recently submitted its recommendations. The government is planning to remove majority of drugs from the current drug list under DPCO. Currently, there are around 75 drugs under DPCO and after the revision it may come down to 35-40.
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