ONGC to invest Rs.2,300 crore to stem decline in Gujarat fields
Kolkata: As a part of its plan to increase onshore crude oil production to 10 million tonnes in the next few years, ONGC plans to invest Rs2,300 crore in the onshore oil fields in Gujarat to stem the 5-7 per cent natural decline in production.

The Gujarat and Assam projects of the company are relatively un-remunerative as they engage roughly 45 per cent of the company's 37,000-strong workforce. The onshore crude production of 8.2 million tonnes, from the two states, accounted for less than 30 per cent of the total production of 27 million tonnes in 2004-05.

Seven million tonnes (85 per cent) of the total onshore production comes from three fields - Ahmedabad, Ankleshwar, and Mehsana in Gujarat, which employ substantially less manpower than in Assam.

The onshore fields in KG basin produce 5.5 billion cubic metres of gas and associated oil.

Stating that they are not expecting any marked increase in the three oil fields in Gujarat, sources said that despite having fewer non-flowing wells the average per well output is considerably low and are subject to five to seven per cent natural decline.
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Apollo ties up with Stanford Emergency Medicine
Hyderabad: Apollo Hospitals has tied up with Stanford Emergency Medicine International, US, to launch the International Training Program for Emergency Medical Technicians here.

Dr Hariprasad, chief executive officer of Apollo Hospitals, said in a press release, "Emergency Medicine, particularly pre-hospital emergency care, is rapidly growing in the country and the need for trained and qualified personnel is immense." He also said that only structured training programmes would generate quality human resources that could, in turn, offer quality emergency medical systems.

Candidates who have passed Intermediate or equivalent are eligible to enroll for this one-year full-time programme. The first batch commences from January 10.
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Sun Pharma acquires US pharma company
Mumbai: Domestic pharmaceutical company Sun Pharma has completed the purchase of dosage form manufacturing operations of the US-based Able Laboratories for US$23.15mn. The acquisition was made by its wholly owned subsidiary, Sun Pharmaceutical Inc, Michigan.

Along with the assets of two sites in New Jersey, Sun Pharma has also bagged significant intellectual property.

On November 29 this year Able Laboratories had entered into an asset purchase agreement with Aurobindo Pharma USA, on October 19, to sell its assets.

That deal, however did not materialise. The US bankruptcy court of the district of New Jersey, which had allowed Able to auction for highest bid, has accepted Sun Pharma's bid.

Assets include ownership and lease rights to manufacturing operations at two sites in New Jersey, with total 275,000 sq ft floor area, including special suites for the manufacture of controlled substances.

The purchase also includes intellectual property for the products marketed by Able until it was required by the US Food and Drug Administration to withdraw these earlier this year, as also products under approval.
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Hearing on RIL-NTPC dispute set for Jan. 30
Mumbai: The Bombay HC has adjourned till January 30, '06, the hearings on a petition filed by the National Thermal Power Corp (NTPC) against the Reliance Industries. The state owned Power Company has sued RIL for not signing a gas sale and purchase agreement, and has prayed for an interim relief for execution of the contract.

The single bench of justice SF Vajifdar suggested that both the parties should explore the possibility of an out-of-court settlement, probably an arbitration, to settle the dispute. According to NTPC, not signing the contract was a violation of the terms of the agreement between RIL and NTPC. The contract sent by RIL to NTPC last week was not acceptable to the latter.

In the contract RIL has agreed to pay the bid price at the rate of US$2.98 per mbtu (Million British Thermal Unit). This rate is about a quarter cheaper than the current rate. What was not acceptable to NTPC was RIL seeking a cap on the liability, in order to maintain the bankability of the project. RIL sought to limit its liability to 175 per cent of the gas price. NTPC did not find this acceptable.
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Reliance Energy invites bids for power project in Uttar Pradesh
Mumbai: Reliance Energy has invited engineering, procurement and construction (EPC) bids for its 5,600-MW combined cycle power project at Dadri in Uttar Pradesh, and for the 1,400-mw first-phase of the Maharastra power plant of 4,000 MW capacity.

The projects are expected to be worth at least Rs20,000 crore.
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Ranbaxy in bid for acquisition of Romanian drug company
New Delhi: Ranbaxy Laboratories, much in the news recently for its overseas activities, is in the race to acquire Romanian company, Terapia, managed by Advent International, a private equity firm that acquired 95 per cent of the erstwhile public company in 2003.

Terapia was then Romania's third-largest pharmaceuticals business. The leveraged buyout, in which Advent acquired 90.7 per cent of the company's shares, was valued at US$44mn.

Terapia with a turnover of US$32.6mn in 2002 was privatised in 1996.

The Romanian pharmaceuticals market is estimated to be worth over US$600m and is understood to be significantly underdeveloped with one of the lowest expenditures per head in Central Europe. The market has almost doubled since 1996, driven by growing GDP and purchasing power, improved health education and living standards and increased life expectancy.
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VSNL residual stake sale hits block
New Delhi: The Government's plan to disinvest the remaining 26 per cent stake in VSNL has run into a block. The government finds that if it sells the residual stake it loses control over 773 acres of prime land valued around Rs1,000 crore spread over various cities, which is VSNL's surplus land.

According to the shareholders' agreement between the Government and the Tata Group, post-disinvestment, VSNL would be de-merged into two companies. One would be the telecom company VSNL under Tata control, and the second would be a land company and would remain under Government control, to which VSNL's surplus land will be transferred.

By virtue of the residual stake in VSNL, the Government would naturally get a 26 per cent stake in the land company. As per the shareholder's agreement, the Tatas would transfer their share of 25 per cent stake to the Government, thereby making it a Government company with a 51 per cent holding.

The Government's interest is at stake because the due date for the Tatas to exercise their call option for acquiring residual stake is fast approaching and the Department of Telecom (DoT) has not yet been able to put through all the modalities for such a land transfer.
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New drug policy may prescribe sops for filing patents, clinical trials
Mumbai: The apex chemicals and fertilizers (C&F) ministry has recommended that tax incentives given to drug companies should be broad based to include, among other things, expenses incurred on filing patents or during clinical trials.

As filing patents abroad in developed markets are expensive, an official with the apex said, clinical trials done locally will also be given tax support. This, and a string of research-oriented sops for drug companies recommended by the C&F Ministry are expected to be announced through the proposed new pharma policy or in the Union Budget next February.

The proposed new drug policy, expected to be circulated for discussion next week, has also upgraded the `gold standards' outlined by the Mashelkar Committee of 1999. Drug companies meeting these research-related criteria will be eligible for more sops.
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Bajaj Auto offloads 11 per cent in Mukand
Mumbai: Bajaj Auto has sold nearly 11 per cent of its stake in Mukand to its joint venture partner, the Shah family. With this, the holdings of both the families in Mukand are likely to be equal.

The shareholding pattern of the company does not clearly indicate the promoters' individual holdings. On September 30, the promoters held 32.2 million, representing a 44.12 per cent stake.

Of this, Jeewan held 5.04 per cent, Fusion Investment & Financial, 1.13 per cent, Bajaj Auto, 2.74 per cent, and Jamnalal Sons, 28.22 per cent. Jeewan Ltd is a 50:50 venture between the two families. Bajaj Auto and Jamnalal Sons are owned by the Bajajs, while Fusion Investment is an investment arm of the Shah family.

The transfer is likely to be effected on Thursday, after the completion of the notice period according to a member of the Shah family.

Stock market sources said the Bajajs sold nearly 7.9 million shares, representing a 10.80 per cent stake in Mukand, to the Shahs in an off-market deal last week. The deal is said to have been struck for Rs12 a share, substantially lower than the ruling market price. The Mukand scrip closed at Rs86.85 on the Bombay Stock Exchange on Friday, 1.71 per cent lower than Thursday's closing of Rs87.85.
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Philips to launch new CTVs in India
Chennai: Philips Electronics India will launch a new 14 inch colour TVs and Plasma and LCD TVs at "affordable prices," in the first quarter next, in all screen sizes, next year. The company has also launched a new range of audio systems in Tamil Nadu market for Christmas and New year.

Philips India plans to make an investment of six per cent of its last year's global sales turnover of Rstwo lakh crore on its new products. The turnover last year in India totalled Rs2,300 crore.

Philips India, a subsidiary of Netherlands-based Royal Philips Electronics, entered the audio market in the country with radio systems in 1930 and currently nearly one million of its products were sold annually.
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