Foreign banks can tap parents
Mumbai: The Reserve Bank of India has allowed foreign banks operating in India to borrow foreign currency from their head offices and show it as capital.

The move would enable foreign banks to raise their exposures, step up dollar supply in the medium and save some from closing down shop in India.

It will particularly go down well among the smaller foreign banks that are struggling to cope with the revised capital adequacy norms that come into effect on 1 April 2002.

The RBI said the amount eligible for inclusion in tier II capital as subordinated debt will be subject to a maximum ceiling of 50 per cent of the tier I capital maintained in India.

The head office borrowings will also have to have a minimum initial maturity of five years. If the borrowing is in tranches, each tranche will have to be retained in India for a minimum period of five years.
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PM gives nod to APM dismantling
New Delhi: Prime minister Atal Behari Vajpayee has approved the dismantling of price controls on petrol and diesel from 1 April.

A new set of duties and subsidies on cooking gas and kerosene will be announced in the next annual budget to be presented on 28 February.
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No time frame for MTNL, BSNL privatisation
Mumbai: The government has said it would disinvest its stake in Mahanagar Telephone and Bharat Sanchar Nigam Limited (BSNL) through competitive bidding route.

Information technology minister Pramod Mahajan said Tatas would not be excluded when bids for BSNL and MTNL would be invited.

This is the first time government has indicated that BSNLcould be privatized.
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DPC lenders to meet next week
Mumbai: Foreign and domestic lenders to Enron's Indian power plant will meet next week in Singapore to discuss the process for selecting a buyer for the project's 85-per cent foreign equity stake.

Eight companies have made preliminary bids for the foreign stake in Dabhol Power.

Enron owns 65 per cent of DPC, General Electric Co and US-based contractor Bechtel each own 10 per cent of DPC. The remaining 15 per cent is held by the Maharashtra State Electricity Board (MSEB) which is the plant's sole customer.

Among the international bidders are British Gas, Royal Dutch/Shell, European oil major TotalFinaElf and French utility Gaz de France.

Indian bidders include Reliance Industries, BSES and Tata Power, and Gas Authority of India.
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Debt market goes online
Mumbai: India's government bond and money markets will shift to screen-based trading with electronic settlement starting from 15 February.

The Reserve Bank of India's negotiated dealing system (NDS) will enable screen-based trading and tie participants together in a live environment, while the Clearing Corporation of India will settle trades electronically.

Government securities, call money, repos, commercial paper and certificate of deposits will be available instruments for negotiated dealing through NDS among members.

India's government securities market has an average daily turnover of around Rs 2000-3000 crore.
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Investor clinics to be set up
New Delhi: The Institute of Company Secretaries of India has planned to set up Investor Clinics for creating awareness among investors.

The proposed clinics would organise seminars on investor education programmes and bring out booklets and pamphlets in English, Hindi and other languages, besides developing software and website for the purpose.

They would supplement efforts of the 13-member investor education and protection fund committee, constituted recently under the chairmanship of company affairs secretary Vinod Dhall.
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VRS for PSEs to re-open in March
New Delhi: The heavy industry ministry has asked the planning commission to enahnce its annual plan allocation by Rs 200 crore to effect a voluntary retirement scheme for public sector enterprises next month.

The commission is understood to have proposed a budgetary support for 2002-03 to be limited to Rs 100 crore against Rs 351 crore proposed by the department.
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India to add 31,000 MW power
Kolkata: India's power sector will produce an additional 31,000 MW by 2007 through new projects.

India plans to double its generation capacity by adding 100,000 MW by 2012 to end chronic power cuts and ensure reliable supply to all consumers.

The government is also keen to add capacity by modernising state-run thermal power plants to improve their performance.
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Handicrafts fair generates Rs 350 cr business
New Delhi: The Indian handicrafts and gifts fair 2002, which concluded in the capital last week has generated business worth Rs 350 crore.

Over 900 handicraft manufacturers and exporters took part in the four-day fair the main highlight of which was active participation by buyers from USA, UK and Germany.

The fair was visited by 3000 foreign buyers and buying agencies from all over the world.
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AP to launch virtual varsity
Hyderabad: The Andhra Pradesh government is in the process of establishing a virtual university aimed at broadbasing the IT education.

The proposed virtual university will leverage a combination of computer based training (CBT) modules and online content and live programmes. The state government, which has announced a series of policies covering the IT-enabled sector, is in the process of broadbasing the necessary human resources.
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