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ONGC profits up 50 per cent - allotted 15 per cent stake in Nigerian field
New Delhi:
ONGC has announced that it has been assigened a mere 15 percent stake in Block 2 of Nigeria's Sao Tome joint development zone, even as the company has posted its highest-ever profit of Rs12,983 crore in 2004-05, or a 50 percent increase over the previous year.

Chairman Subir Raha has said ONGC's overseas investment arm, ONGC Videsh, and its local partner, Equator Exploration, have been alloted a mere 15 percent stake in the Nigerian field though the combine emerged as the highest bidder.

Devon Energy of the US and and Pioneer have 65 percent equity in the block, while A & Harmattan has 10 percent, Foby Engineering and Momo Oil and Gas 5 percent each.

With this acquisition ONGC now has stakes in 15 properties in thirteen countries. Raha said ONGC Videsh's production rose 31 percent to 5.06 million tonnes of oil and gas in 2004-05 as net profit jumped 78 percent to Rs 761 crore on Rs 6,026 crore revenue.

Production from Sudan's Greater Nile field, the only oil-producing assets as of now, rose from 263,000 barrels per day in March 2003 to 295,000 barrels per day in March 2005. Gas production from Vietnam was up 158 percent to 1,349 billion cubic meters.

Raha said ONGC registered a 50 percent rise in profit despite increased subsidy burden of Rs4,104 crore, a jump of 53 percent from the previous fiscal, and under-recovery on account of selling gas at government-controlled prices.

ONGC also maintained its increasing trend in oil production which stood at 28.13 million tonne against 27.71 mt previously. Gas production, however, declined to 25.23 billion cubic metres from 25.70 bcm.

Raha said gas production from Russia's Sakhalin-I field, where ONGC Videsh has a 20 percent stake, would begin in July with an initial output of 70 million cubic meters per day and full production will be reached in 2010. Oil exports would commence in April 2006 with 12,500 barrels per day and full production of 50,000 barrels per day would be reached in December 2006.
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Mumbai Textile Mill sold for Rs.702 crore
New Delhi/Mumbai:
Delhi-based Jwala Real Estate Pvt Ltd has successfully bagged the tender for the National Textile Corporation's (NTC) Mumbai Textile Mills 17.5 acre property for a stunning Rs702 crore. This is the biggest ever realty deal in India and it could push up property prices in Mumbai.

According to analysts, as per the deal, the price per square feet is pegged at anywhere between Rs8,000 to Rs12,000, against Rs4,000 in the recent Jupiter Mill sell-off.. Two more NTC mills - Elphinstone and Kohinoor - are now lined up for sale.

In a separate deal on Monday, Mumbai-based Lodha Group won the tender for 7.5 acre of land with Apollo Textile Mills, another NTC property, by putting in a Rs180 crore bid.

In March this year, the NTC's 11-acre Jupiter Mills at Elphinstone Road had fetched Rs276 crore creating a turmoil in the property market. The bid for Mumbai Textile Mill is the highest ever and is much higher than the anticipated winning bid price of Rs400-550 crore.

Last month, a Supreme Court ruling allowed NTC to sell five of its defunct mill lands to retire outstanding debts of Rs1891 crore. The NTC has been trying to utilise its 300 acres of real estate situated at prime locations in Mumbai to repay debts and revive its remaining mills.
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Tata Steel to get $200 million loan
Hong Kong: Tata Steel is working out a $200 million seven-year loan which it will use to expand production. It plans to build a $2.3 billion plant in the eastern Chattisgarh state. Tata steel is also aiming to triple its production to 15 million tonnes by 2010.

The International Finance Corp., the World Bank's private lending unit, is providing $100 million while other banks will co-finance the loan.

Tata will pay interest of 0.55 percentage point more than the London interbank offered rate for the loan.

The company had $1.4 billion in earnings before interest, tax, depreciation and amortization for the year ended March.
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Nasscom: Outsourced engineering services is new growth opportunity
Bangalore:
Outsourced engineering services is fast emerging as a potential growth opportunity that Indian software companies should tap, said Nasscom officials at a press meet here on Monday. They said that providing engineering services to overseas clients promises a huge business opportunity for Indian software service exporters.

According to Nasscom officials, the present market potential for outsourced engineering services is estimated to be between $ 7 billion to $12 billion, while the value of work currently undertaken by India-based vendors in this space is estimated to be around $400 million -$500 million.

Engineering services include product design, process, plant automation, and enterprise asset management services. These services find application in a variety of domains. S Ramadorai, chairman, Nasscom said that several MNCs have adopted hybrid sourcing strategies and are working with outsourced vendors, in addition to the work done out of their captive units.
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Ambani feud: emails are now harbingers of peace
New Delhi:
After a couple of emails seven months back contesting who was the boss at the Ambani empire, the emails have resurfaced, this time indicating that the brothers are burying the hatchet

While Mukesh Ambani referred to Anil's enormous energy, drive and commitment to pushing Dhirubhai's dream and wished him success in running the telecom business, Anil, resigning from the board of flagship RIL, wrote that he's proud of the role Mukesh played translating their father's dreams to reality.
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S&P: RIL's credit quality might 'weaken'
New Delhi:
Global rating agency Standard and Poor's has cautioned that the credit quality of Mukesh Ambani controlled Reliance group's flagship company RIL might "weaken" if significant cash outflows were part of the settlement between him and younger brother Anil.

Though financial details are still "unclear", S&P said, "specifically, significant cash outflows, possibly resulting from share repurchases, division and distribution of liabilities and/or the contingent obligations on RIL, could materially affect the company's financial profile, which might weaken its credit quality."

However, S&P noted that the de-merger and eventual exit of RIL from the group's capital-intensive telecommunications and power busines should not have a negative impact on its business risk profile and may even have a positive impact.
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W. Bengal will not let Haldia Petro take part in Basell acquisition
Kolkata:
The West Bengal Government will not permit Haldia Petrochemicals Ltd to participate in The Chatterjee Group (TCG) led global consortium for the acquisition of the Amsterdam-based Basell NV as long as it remains a shareholder of the company. Dr Sabyasachi Sen, Secretary to the West Bengal Commerce and Industry Department, stated this.

According to Dr Sen, the West Bengal Government wants Haldia Petrochemicals to play a significant role in the development of the State's economy. It does not want to take the company into the top international league for now.

However, if the State Government sells its stake to Dr Purnendu Chatterjee of TCG, it will not attach any rider to the stake transfer agreement under which it would bar Haldia Petrochemicals from participating in the Basell acquisition.

"We will certainly like to see a company from our State become a global player. But as long as we are a shareholder, we will not want Haldia Petrochemicals to participate in the Basell acquisition," Dr Sen said.

He added that West Bengal Government still wants to get out of Haldia Petrochemicals and according to the existing terms and conditions, it had offered its shares to TCG.

On the stake transfer, he said that things are yet to fall into shape.
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Voltas FY05 net up 29.16 per cent
Mumbai: The Board of Directors of Voltas Limited, a Tata Enterprise announced on Monday the audited financial results including the consolidated financial results and segment report for the year ended March 31, 2005.

For FY05, the company reported net profit after tax of Rs504.1mn compared to Rs390.3mn, an increase of 29.16 % over the previous year. Net sales increased by 8.38 % to Rs14.41bn as compared to Rs13.29bn. Operating profit increased by 42.29 % to Rs526.2mn as against Rs369.8mn.

For the quarter ended March 2005, the Company registered an 18.23 % increase in net profit after tax to Rs228.3mn as against Rs193.1mn in the corresponding quarter of the previous year.
Operating profit (profit before tax & exceptional items) increased by 28.03% to Rs219.7mn as against Rs171.6mn over the corresponding quarter of the previous year.

Net sales for the quarter rose by 22.66 % to Rs5bn as against Rs4.07bn in the corresponding quarter of the previous year. The Company's performance was driven by strong growth in electro-mechanical project and services segment (42.56%); the engineering agency and services segment (35.15%) and others (31.85%).

The Board has also recommended an increased dividend of 50% for the year ended 31st March 2005 (previous year 30%) including special golden jubilee dividend of 15%, on the equity shares of Rs 10 each of the Company.
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domain-B : Indian business : News Review : 21 June 2005 : companies