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HM-Mitsubishi to expand operations
Chennai: Mitsubishi Motors Corporation of Japan has said that it will expand its operations in India jointly with Hindustan Motors Ltd.

According to a recent press release issued by Mitsubishi Motors Corporation, available on its Web site, the two companies reached an agreement on working together in "driving forward MMC (Mitsubishi Motors Corporation) business strategy in India".

The release said that Hindustan Motors would start producing another model in the Lancer range in January 2006. Hindustan Motors would also add other Mitsubishi models such as Pajero, Outlander and Grandis to its line up of imported built-up models. All these models would be sold through Hindustan Motors' sales network, the release said.

Hindustan Motors now makes Mitsubishi's Lancer sedan and assembles the Pajero sports utility vehicle, at its plant on the outskirts of Chennai.

The release added that the two companies had agreed to explore the possibility of Hindustan Motors supplying Mitsubishi with automotive parts made in India. "As part of the company's global sourcing programme, the move would allow MMC to reduce procurement and material costs," the release said.

The Outlander is a crossover vehicle that combines the off-road capabilities of a sports utility vehicle with the urban styling and comfort of a sedan. It has a 2.4 litre engine in overseas markets. The Grandis is a luxury sports utility vehicle and has a 3 litre GDI engine, according to information available on Mitsubishi Motors' Web site.

The strengthening of operations in India forms part of Mitsubishi Motors' strategy for the BRIC countries (Brazil, Russia, India and China), which are seen as promising growth markets, according to the release.

According to a HM spokesperson, the Lancer Cedia would come with a two-litre engine and be brought in as completely knocked down kits and assembled at Hindustan Motors' Chennai Car Plant, at Tiruvallur. The Lancer Cedia would compete with the likes of Toyota Corolla, the spokesperson said, without providing details on the likely price.

Hindustan Motors was likely to supply the engines for the Lancer Cedia, from its Pithampur plant. The company would continue to make the present Lancer models too after the launch of the Cedia, the spokesperson said.

In 2004, Hindustan Motors sold about 2,200 units of the Lancer and Pajero.
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Bhilai Steel to get new slab caster
New Delhi: The board of Steel Authority of India Ltd (SAIL) has approved the proposal for setting up a new slab caster with associated facilities for second steel melting shop (SMS II) at Bhilai Steel Plant (BSP) with an estimated cost of Rs520 crore.

The new single-strand slab caster will have a capacity of eight lakh tonnes per annum (TPA) that would help the plant to produce value added/special quality of steel besides ensuring higher utilisation the converters, according to a company release.

The installation of the slab caster with associated facilities such as RH degasser and ladle furnace will further augment BSP's capabilities to produce high quality plates and rails conforming to the stringent specifications for Indian Railways, the release added.
The addition of a new caster will also enable the plant to enhance steel production.
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Power Grid bags Bhutan project
New Delhi: Power Grid Corporation has bagged a consultancy project from Bhutan Power Corporation for construction of a 132 kV transmission line.

The 60-km long single circuit line from Deothang in Bhutan to Rangia in Assam is being financed by the Government of India. The line would provide adequate transmission arrangement for reliable operation of Kurichhu hydroelectric project in Bhutan, a Power Grid release said.

The scope of consultancy includes design, preparation of tender documents, bid evaluation, contract management, construction supervision, quality assurance, testing and commissioning of the project.
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Centre clears lease of land for Haldia coke project
New Delhi: The shipping ministry has given its assent to the proposal of handing over 180 acres of land at Haldia to Tata Steel and the West Bengal Industries Development Corporation for their proposed power plant and coke unit projects.

Shipping Secretary D.T. Joseph has said that the land would be given on a 99-year lease to the consortium for Rs56.17 crore and the Calcutta Port Trust would be apprised of the ministry's approval to the land allotment in a day or two.

The 180-acre plot is where Hindustan Fertiliser Corporation's plant was located. The unit has now turned sick and the new project proposal will help put the land into more productive use. The Tata Steel-WBIDC consortium has guaranteed a minimum throughput of 1 million tonnes of coal every year, ensuring the Calcutta port trust regular revenue of around Rs8 crore.

The consortium will form a new company, Hooghly Metcoke & Power, which will be a subsidiary of Tata Steel with WBDIC holding a minority stake. The new company will import coal and convert it into high-grade coke for steel furnaces. Initial capacity of the coke plant will be 8 lakh tonnes a year, which will be later increased to 1.6 million tonnes.

Tata Steel sources said that the coke will be either bought by the company itself for its new furnaces planned for Jamshedpur steel plant, with the option of selling some of the high grade coal to other steel makers also there.

The by-products generated in the form of gases during the coke production process will be used in generating electricity. The power will then be fed to the West Bengal State Electricity Board grids. The project aims to generate 120 mega-watt power annually when completed.
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Enforcement Directorate has Jet Airways under its scanner
New Delhi: The Enforcement Directorate (ED) is probing the sources of overseas funding to Jet Airways in order to determine whether any underworld connections are involved.

The probe was initiated after the ED found out that some of the funding received by the Jet Airways from abroad had allegedly not been reflected in its account books. The investigations were being carried out under Foreign Exchange Management Act and Prevention of Money Laundering Act.

The Union civil aviation minister, Praful Patel had recently alluded to the issue in a reply to a question in Lok Sabha. He had said that the ED had informed that they were investigating Jet Airways.

Earlier, the company had come under scrutiny from the ministry of company affairs which had lodged eight cases against it. Patel had informed Parliament that the home ministry had also conducted inquires against Jet Airways, but it had not revealed anything.

The revenue department in finance ministry had also inquired into the finances of the Jet Airways and scrutinised its income tax assessments up to 2002-3. However, it had informed the aviation ministry that the funds received by the company had come through legal banking channels.
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ESC: IT exports to touch $60bn by 2008
New Delhi: Total IT exports, including hardware, software and IT-enabled services, are expected to touch the $60-billion mark by 2008, having increased by 164 per cent between 2000-01 and 2004-05, according to the Electronics and Computer Software Export Promotion Council (ESC).

In absolute terms, IT exports have grown from Rs32,288 crore in 2000-01 to Rs85,300 crore in 2004-05.

"The pace at which IT exports are growing gives us the impression that the target of $60 billion by 2008 will be achieved," the ESC Executive Director, D.K. Sareen, said in a release.

Between 2000-01 and 2004-05, export of computer software and related services (excluding ITES) has almost doubled and if this trend continues, export from this segment will touch Rs1,00,000 crore ($25 billion) by 2007-08, ESC said.

The council said the export of IT-enabled services has grown by 121 per cent between 2002-03 and 2004-05, recording the highest percentage of growth in the IT sector. Exports have gone up from Rs10,500 crore to Rs23,300 crore during this period.

Electronic hardware exports between 2000-01 and 2004-05 grew by 67 per cent, increasing from Rs4,788 crore to Rs8,000 crore during the period.
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Corporate Results: California Software, Suprajit Engineering

California Software nets Rs 96.38-lakh profit
California Software Ltd, the Chennai-based software firm, has reported a net profit of Rs96.38 lakh for the quarter ended June 30, compared to a net profit of Rs39.69 lakh for the corresponding quarter last year.

Revenues for the quarter increased to Rs6.60 crore (Rs5.34 crore).

The company's total consolidated revenue, including Indian operations and subsidiaries, was Rs21.78 crore for the first quarter of the current fiscal.

Consolidated net profits after taxes and minority interest adjustments were Rs58.18 lakh.

This is the first year that the company is compiling and reporting consolidated results on quarterly basis and hence prior year comparisons are not available for the consolidated results, says a company press release.

"At this pace we are on course to achieve a significant milestone of group revenues of about Rs100 crore in current fiscal," the company's Chief Financial Officer, K.N. Nayak, said in the release.

The company informed the Bombay Stock Exchange that a meeting of its board of directors would be held on August 6 to consider raising additional funds through various options, including rights issue, global depository receipts and other instruments such as preferential allotment.

Suprajit Engineering pre-tax profit up 81.3 per cent
Suprajit Engineering Ltd, the automotive cable manufacturer, has announced its financial results for the first quarter ended June.
It has recorded an increase of 56 per cent in turnover at Rs30.39 crore against Rs19.48 crore achieved in the corresponding previous period.

Pre-tax profit for the quarter was Rs3.96 crore (Rs2.18 crore), an increase of 81.3 per cent.

For the year ended March 2005, the company had recorded a turnover of Rs109.89 crore against Rs82.62 crore earlier, recording an increase of 33.01 per cent. Pre-tax profit amounted to Rs14.81 crore (Rs11.91 crore).

Exports continue to be robust, clocking Rs1.61-crore turnover for the first quarter of the year, against Rs1.32 crore earlier, recording an increase of 21.67 per cent.
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