document.writeln("

NTPC to invest Rs.500 crore in Ratnagiri Gas and Power Ltd.
New Delhi: The State-owned National Thermal Power Corporation Ltd (NTPC) on Monday said it would invest up to Rs500 crore as share application money in the equity capital of Ratnagiri Gas and Power Pvt Ltd (RGPL). RGPL has been floated to take charge of the assets of the $2.9-billion Dabhol power project.

The company's board of directors, at a meeting held on July 9, has approved an investment of up to Rs500 crore as share application money in the equity capital of RGPL, which will be a 50:50 joint venture between NTPC and GAIL (India) Ltd, and will take over the assets of the Dabhol Power Company (DPC).

RGPL would take over the assets of DPC from the Indian lenders to the project by going through the Debt Recovery Tribunal and court process, NTPC informed the Stock Exchange, Mumbai (BSE).

The investment decision is subject to the approval by Cabinet Committee on Economic Affairs or relaxation of power granted by the Centre to NTPC for the purpose of acquisition of assets and investment in the joint venture company, it said.

The decision is also subject to the approval by the board of directors of GAIL in the equity of RGPL, it added.
Back to News Review index page  

Tata Motors looking at overseas acquisitions
Mumbai: According to Tata group Chairman Ratan Tata, Tata Motors will look at acquisitions of commercial and passenger vehicle plants across Europe, South Africa, Latin America, South East Asia and China. Tata Motors operates in these economies through acquired companies and joint ventures.

Addressing the shareholders of the company at its 60th annual general meeting in Mumbai Ratan Tata, said that it is ideal to go global and operate in different economies across all continents than limiting one's self to one or two countries.

Tata said the company would focus more on cars for the middle and lower middle-class and less on high-end cars. The company expects to roll out the Rs1 lakh small car over the next three years.

"We will endeavour on making cars more affordable to the common man. India has a growing middle class, equivalent to the size of the US. We will be looking towards tapping this potential," he said.

Post WTO, with the removal of trade barriers, the Indian economy is expected to face tough competition from global players. Tremendous pressure on margins on account of growing metal prices has also been expected.

"We will face the challenge through cost reductions, new launches and, above all, focus on cars for the common man," Tata said.

A good monsoon, significant infrastructural investment from the government and foreign direct investment in infrastructure will be good for the growth of the car and commercial vehicle market in the country, he said.
Back to News Review index page  

POSCO to develop new port in Orissa
Seoul: South Korean steel giant Pohang Steel Company (POSCO) has dropped its plan to use the Paradip Port due to its low cargo-handling capacity and has decided to develop a new port, about six kilometres from Paradip instead, at an investment of about US$200mn.

The Paradip port has a capacity to handle about 15,000 metric tons while the company was scouting for a port capable of handling more than 20,000 metric tons.

POSCO was in favour of getting the special economic zone (SEZ) status for its 12 mt steel project to be built at a whopping cost of Rs520bn thereby making it the single largest foreign direct investment (FDI) in the country.
Back to News Review index page  

FIPB okays GM India's payment plan to GMDAT
New Delhi: The Foreign Investment Promotion Board (FIPB) has accepted General Motors India's application for payment of both lump sum engineering fee and royalty to GM Daewoo Auto & Technology, Korea (GMDAT).

According to an official release, GM had made the application for payment of lump sum engineering fee to GMDAT amounting to $9.4 million (approximately Rs42.3 crore) over a period of three years and five per cent running royalty payment on each vehicle manufactured and sold by GM India with the technical know how given by GMDAT up to 2012.

The proposal had been deferred earlier as the Department of Heavy Industry had said that it needed more time to examine it. The department, however, in a recent letter gave its nod for the proposal and stated that it would help in promoting healthy competition.

According to market watchers, GM's proposal is indicative of the company's plans to roll out new car models in the country from GMDAT's portfolio. Sources said GM India is planning to roll out the Chevrolet Aveo, which is based on the GMDAT Kalos platform, sometime next year. The vehicle is likely to be positioned in the premium compact segment, which has seen a spate of launches over the last few months.
Back to News Review index page  

Indian Airlines to augment fleet size through lease
New Delhi: The government has said that Indian Airlines (IA) would take on lease 12 wide-bodied aircraft and six turbo-prop ATRs in order to increase its fleet size. It is also considering taking on a further ten A320s on lease.

The airline is battling to regain its market share, which has dropped to 38 per cent from 65 per cent in 2004.

The main reason for the decline in market share is its fleet size, which has remained static while other airlines have grown. The government has plans to allow IA to buy up to 43 Airbuses.

IA plans to buy a mix of Airbus-319s, Airbus-320s and Airbus-321s, which are to be delivered over a period of four years between 2005 and 2009. In the interim period, IA will take on these aircraft on lease.

Indian Airlines has told a parliamentary consultative committee on civil aviation that it plans to have a dedicated freighter operation by converting its B737 aircraft into freighters. Apart from this, it is also planning to join a global airline, the state-owned carrier told the committee. IA would benefit by way of getting access to new markets through code sharing, enhancing its global image, and upgrading technology and service standards.
Back to News Review index page  

Numaligarh Refinery moves petro products through river barges
Kolkata: Numaligarh Refinery Ltd in Assam has started moving petroleum products by a river route that passes through Bangladesh. The first consignment of 1,450 tonnes of diesel transported by a barge arrived a few days ago at the Budge Budge oil jetty of the Kolkata Dock System.

Vivada, the local barge operator, transported the consignment from Silghat on the bank of the Brahamaputra River to Budge Budge. Silghat is about 100 km from the refinery and the distance was covered by road. The maiden voyage was without a hitch.

Vivada, according to sources, has taken on charter two of CIWTC barges, "Naharkatiya" (1,800-tonne capacity) and "Barauni" (1,200 tonnes). Once the two vessels start operation on regular basis, it should be possible to offer two sailings a month totalling 3,000 tonnes.

The turnaround time of the first voyage by Vivada was 42 days. Vivada wants to bring it down to a month or so. A faster turnaround time will ensure movement of a larger volume.
Back to News Review index page  

BPCL to enter the DTH arena
New Delhi: State-owned Bharat Petroleum Corporation Ltd from has firmed up plans to venture into the direct-to-home (DTH) TV domain. Plans have been finalised for a push into DTH broadcasting services through a 100 per cent subsidiary with an initial paid-up capital of Rs95 crore.

The decision was based on a study by KPMG and later validated by ICICI-Securities.

BPCL wants to float a separate company since its articles of association does not allow a foray into the entertainment business. At a later date, it may induct a joint venture partner too. A financial feasibility study indicates the payback period as 8.5 years and an 11.6 per cent return after 10.5 years, which is expected to go up to 23.5 per cent in 14.5 years. The firm is willing to pump in Rs990 crore to be spent over five years.

Justifying the diversification, BPCL told the board it has commissioned a Ku band transponder-based VSAT hub. Experience on the existing radio frequency system of the VSAT hub can be used effectively while operating DTH platform. BPCL wants to leverage its extensive network and is confident its huge customer base would bring in users.

It has 20 million domestic consumers, two million petro-card/fleet-card customers, besides a large number of industrial and retail LPG customers.
Back to News Review index page  

Bajaj Hindusthan announces Rs.750 crore expansion plan
Mumbai: Bajaj Hindusthan has announced a Rs750-crore expansion plan which would make it among the top five sugar producers globally.

The company, already the largest player in India, said on Monday that it will add three new plants in UP to take total capacity from 52,000 tonnes crushed per day (tcd) to 95,000 tcd by September this year.

Bajaj Hindusthan has also decided to withdraw its bid for the 24 mills of the Uttar Pradesh government because of the "inordinate delays" in the divestment process.

"Once the expansion is complete, we would rank among the top five producers of sugar globally. We have grown six-fold in the past five years and are targeting annual revenues in excess of $1bn over the next two years," said Kushagra Nayan Bajaj, Chief Executive
of Bajaj Hindusthan.

Bajaj Hindusthan, which recently raised $100m through a mix of global depository receipts and foreign currency convertible bonds, would use the proceeds to part-finance the expansion plans. The company will bring in around Rs300 crore from internal accruals. Going forward, the company plans to take the inorganic route to grow capacities. On the anvil are plans to diversify into upstream and downstream businesses to maintain growth.

Bajaj Hindusthan has reported a 285% rise in net profit for the third quarter ended June 30, 2005 to Rs52.9 crore, up from Rs13.8 crore a year ago. Gross sales shot up over three times from Rs106.7 crore to Rs366.9 crore.

For the period, the company's net profit jumped from Rs28.2 crore to Rs84.6 crore, while gross sales surged from Rs306.9 crore to Rs599.1 crore. Bajaj Hindusthan expects its top line to grow by around 80% in the next fiscal.
Back to News Review index page  

TCS to up headcount by 13,000 in the fiscal
New Delhi: India's largest software exporter Tata Consultancy Services (TCS) will hire up to 13000 professionals in this fiscal, the company said.

With over 40,000 IT professionals in 33 countries, TCS is positioned to deliver its services seamlessly to any location. TCS reported consolidated revenues of USD 2.24 billion in the fiscal year 2004-2005.

The company is listed on the National Stock Exchange and Bombay Stock Exchange.
The company's Q1 results are scheduled to be announced in July 15.

TCS, which has a sizeable China operation, earlier last week entered into a strategic partnership with Microsoft for the Chinese market, which is expected to take off this year.
Back to News Review index page  

Consumer award: Tata Group picked as the 'Most Preferred Employer'
Mumbai: The Tata Group has been awarded the Awaaz Consumer Award 2005 in the 'Most Preferred Employer' category.

Awaaz, India's first dedicated Consumer Channel, and a member of the worldwide CNBC Network, in keeping with its commitment as the Voice of the Indian consumer, had initiated India's first exhaustive Consumer Preference Poll for India's best brands called 'Awaaz Consumer Vote 2005' in association with AC Nielsen ORG MARG.

The award ceremony that was held yesterday evening in New Delhi was attended by the top management of some of India's most respected companies as well as senior Government officials.

Satish Pradhan, Executive VP, Group Human Resources, Tata Sons Ltd, said, "It is an honour for the Tata Group to receive this award. The award is recognition of the work being done by our companies in the area of human resource development. Some of our companies have also individually received awards in the field of HR from bodies in India and globally in the recent past. Today, the Tata Group has a stronghold in seven business sectors and 80 companies under its belt and most of its companies have attained positions amongst the top three in their respective sectors."
Back to News Review index page