Minimum investment for 4-wheeler makers--100m
New Delhi--The cabinet note new auto policy has for the first time stipulated that investments in component manufacturing by an overseas automobile maker will be considered as part of the minimum foreign investment made by it in an automobile manufacturing subsidiary in the country. The new policy, sent for cabinet approval, has fixed $100 million as the minimum limit for companies manufacturing four-wheelers (including commercial vehicles) and $25 million for those making two and three wheelers, sources told.
The extant auto policy (based on the MoU route), subsidiaries of foreign auto firms in India were required to make a minimum $50 million foreign equity investment. A previous draft of the new policy sent to the Cabinet last year, had proposed $250 million as the minimum FDI for car makers, $100 million for commercial vehicle manufactures and $25 million for two and three wheeler companies. The draft was later withdrawn.
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Re down to historic low of 47.14 to a dollar
Mumbai--The spot rupee has plummeted to a new low, falling 10 paise in intra-day trading before closing at 47.1450/1550, after trading at 47.15/16 levels. Forward premiums remained marginally unchanged.
The rupee opened lower at 47.05/06 against its close on Friday of 47.04 and started falling to its intra-day low in the morning itself with the nationalised banks buying huge quantities.
According to dealers the rupee fell primarily due to lower supply and good demand. Supplies came in from some exporters and what was left over from the weekend.
They added that the rupee is likely to stabilise in the range of 47.15 to 47.20, with some long overdue correction in the value. Considering the fact that the premiums have moved only marginally, it is likely that the Reserve Bank of India approved today’s buying spree, said a dealer with a foreign bank.
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Bidding rules for cellular license
New Delhi--The government has indicated that all the bidders in 14 of the 17 circles, for the fourth cellular license, where there are less than four bids, will be allowed to go through to the subsequent two rounds without competing in the first. This is primarily being done because the government does not want a situation wherein the three-stage bidding is left without enough competition in the final round.
However, Karnataka, which has received five bids, will be the only circle where the bidders would have to go through competitive bidding in all the three stages.
Bharti and Escotel have almost bagged the licence for Madhya Pradesh and Himachal Pradesh, by virtue of being the lone bidders in the respective states.
The circles that would effectively have only two competitive rounds include Delhi, Chennai, Gujarat, Maharashtra, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh (east) which got only 4 bids each and Mumbai, Kolkata, Andhra Pradesh, Haryana, Kerala, and Uttar Pradesh (west), with three bids each.
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Three US firms interested in DPC says IDBI
Mumbai—According to the Industrial Development Bank of India (IDBI) three US energy companies have shown interest in taking over the troubled $3 billion Dabhol Power Company (DPC). It also indicated that Indian financial institutions were ready to take over the DPC if promoters Enron pulled out, but said they would not run the company.
Enron has threatened to walk out of the 740 mw first phase of the project, which is operational, and 1,444 mw second phase of the project to be commissioned shortly, over payment disputes with the Maharashtra State Electricity Board (MSEB).
Indian financial institutions are meeting in Delhi later today to discuss the future course of action.
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