ECS overrules DGH, allots blocks to ONGC
New Delhi: The Empowered Committee of Secretaries (ECS) has over-ruled the recommendations of the Director General of Hydrocarbons (DGH) on exploration blocks under the New Exploration Licensing Policy (NELP) -VI, and has allotted 12 blocks to ONGC.

DGH, had recommended against awarding the 12 blocks to ONGC in the sixth round of auction under NELP due to its "poor" track record.

The ECS, comprising officials from the ministries of petroleum, finance and law, did not agree with its suggestions, official sources said.
The consortium of ONGC-GSPC-HPCL-GAIL was a clear winner in 11 deep-sea blocks while the ONGC-Cairn India-Tata consortium was ranked number one in a Kerala-Konkan basin block.

DGH had also suggested that Reliance Industries, the second highest bidder in most of these blocks, should be given these contracts.

Sources said the oil ministry opposed the DGH recommendations on ONGC saying if a company was qualified to bid and had bid the highest it should be awarded the block.

Of the 21 deep sea block offered in NELP-VI, Reliance had emerged clear winner in seven - two in Krishna Godavari basin and five in Mahanadi basin. Santos was recommended award for two North-East-Coast (NEC) blocks.
Back to News Review index page  

Tata Steel may increase bid price for Corus
Mumbai: Tata Steel and the Brazilian steel company CSN, are gearing up for a bidding match for acquisition of Anglo-Saxon steel giant Corus. The Tata Steel board which met on Thursday to take stock of the situation after CSN approached Corus last week with a 475 pence-a-share offer, came to the view that it had to up its bid to stay in the Corus race. For the time being, however, Tata Steel will not be showing its hand.

Sources following the deal said Tata was getting ready to up its bid in small measures to match a possible re-bid by its rival CSN.

Bankers have also been alerted on the development. Earlier reports in the British media indicated that CSN is even prepared to further up its bid for control of Corus.
Back to News Review index page  

Siemens Q4 net rises 31 pc
Mumbai: Siemens has reported a 31 per cent increase in net profit for the fourth quarter ended September 30, 2006, aided by a 60 per cent increase in net sales. The key drivers of growth were the power, automation & drives and industrial solutions businesses of the company, said a statement from Siemens.

Net profit stood at Rs136.7 crore, up from Rs104.5 crore in the corresponding year-ago quarter. Net sales amounted to Rs1,492 crore, up from Rs933 crore. The company's net profit for the fiscal, at Rs360 crore, rose by 41 per cent from a year ago (Rs255 crore); while net sales grew 64 per cent, to Rs4,510 crore (Rs2,749 crore). Total expenditure also grew by as much, (around 64 per cent) to Rs4,136 crore (Rs2,514 crore). Profit before interest and depreciation grew 38.3 per cent, to Rs513 crore (Rs371 crore).

New orders, at Rs8,202 crore for the year ended September 30, 2006, registered a 99 per cent rise from a year ago. Unexecuted order value stood at Rs7,526 crore, higher by 97 per cent.

The company plans to divest its 100 per cent stake in subsidiary Siemens Public Communication Networks, to Nokia Siemens Networks India.

The board of Siemens has also approved in-principle the proposal for sale of the company's undertaking comprising the `communication-enterprise networks' division in favour of a new 100 per cent subsidiary to be incorporated by Siemens AG in India. This will be done by April next year and is subject to approval of shareholders by postal ballot, said a statement.
Back to News Review index page  

Essar Steel, Sinosteel to set up plants
Mumbai: Essar Steel is in talks with Sinosteel Corporation of China for setting up steel plants in Paradip, Chhattisgarh and Jharkhand. The $6.6-billion project will increase the production capacity of Essar from 4.6 million tonnes (mt) to 30 mt. The company also plans to expand its Hazira plant to produce 10 mt of steel.

Sinosteel is a state-owned company in China and has 62 subsidiaries in countries like India, Australia, South Africa, Brazil and Germany. The company is engaged in development of metallurgical mineral resources, trading and logistics of metallurgical raw materials and providing auxiliary services for the steel industry.
Back to News Review index page  

Simbhaoli Sugar to expand capacity
Mumbai: Simbhaoli Sugar plans to invest Rs423 crore in overall capacity expansion including setting up a new sugar factory in Ghaziabad, Uttar Pradesh which will augment the crushing capacity at its two existing sugar factories. With the investment the company's crushing capacity will go up from 11,000 tonnes crushed per day (tcd) to 20,000 tcd.

The company will invest Rs125 crore in the new plant which will be fully automated and reduce the need for workforce by 50 per cent. The specialised sugar manufactured in this plant will target institutional users like pharma companies, candy manufacturers and high-end users said company officials. To finance its expansion plans, the company has raised Rs52 crore through a rights issue, Rs150 crore through foreign currency convertible bonds, Rs70 crore from banks, Rs 50 crore from internal accruals and Rs80 crore from sugar development fund.

Gemini Comm to set up RFID unit near Chennai
Chennai: Gemini Communication plans to set up RFID tags manufacturing facility at an SEZ at Sriperumbudur near here instead of Himachal Pradesh with an investment of Rs 25-crore. Earlier it had announced the Himachal Pradesh project at a cost of Rs 20 crore. The company has cited logistics and availability of manpower in Himachal Pradesh as the main reasons for the proposed shift in location.

RFID technology is used for storing and remote retrieving of data using devices called RFID tags or transponders. Gemini offers customers customised RFID consulting and project management services.
Back to News Review index page  

Aircel to enter Bihar, HP by year-end
Chennai: Aircel majority owned by Malaysian company Maxis plans to launch commercial services in Bihar and Himachal Pradesh by the end of 2006, according to a press release. Aircel is a leading cellular phone service provider in Chennai and Tamil Nadu circles.

During the third quarter of 2006, Aircel added 371,000 net subscribers in Chennai and Tamil Nadu and is making inroads into the North and North-East circles where it has recorded 234,000 new subscribers, representing a 48 per cent subscriber growth rate, the release said.

Revenue from Indian operations' grew 20 per cent RM 247 million (Rs 303 crore) mainly due to an increase of 19 per cent or 605,000 in net subscribers (comprising 552,000 prepaid and 53,000 post-paid) to bring the total subscriber base to 3.8 million.
Back to News Review index page  

Swiss firm acquires 26 pc in Race Tech
Chennai: Sauter AG of Switzerland has acquired a 26 per cent stake in the Chennai-based Race Technologies for Rs5 crore and plans to invest Rs25 crore more over the next two years in the company. Race Tech said it had not decided on the extent of further dilution in favour of Sauter.

Race Technologies provides building automation solutions such as atmosphere control and safety solutions. It imports equipment from Sauter. Its projects include Tidel Park, World Bank and Ascendas in Chennai, Microsoft in Hyderabad and IBM in Bangalore. The Indian market for building management systems, a sector in which Race Technologies specialises is about Rs700 crore.
Back to News Review index page  

VSNL to give access to landing station to all operators
New Delhi: Tata managed Videsh Sanchar Nigam Ltd (VSNL) has decided to open access at its submarine cable landing stations in Mumbai, Chennai and Ernakulam to all operators.

VSNL was under pressure from the industry for opening up the landing rights and was being criticised for stifling competition in the international telephony segment by allowing limited access to its landing station. The VSNL move will benefit ISP and leased line operators who will pass on the cost savings to the consumers.

Eight submarine cables land in India today, with over 18 terabits of design capacity and over 1 terabit of lit capacity. At least 5 other cable systems are likely to land in India in the next couple of years. Indian operators will be connected to cable capacities at VSNL's landing stations in about 15 days from the date of signing an access facilitation agreement.

VSNL is also setting up meet-me-rooms in Mumbai, Chennai and Ernakulam to consolidate its access and interconnection facilities; this will provide Indian operators with better access, lower costs, improved security and efficient support, said a VSNL source.
Back to News Review index page  

United Phosphorus buys DowAgro's propanil
Mumbai: United Phosphorus has acquired the global propanil herbicide business of DowAgroSciences LLC for $25 million. With this acquisition United Phosphorus and its subsidiaries all over the world can start selling Propanil and its formulations immediately. statement. The total turnover of this product in 2005 was $18.9 million. Propanil is a global product with more than 100 registrations in over 30 countries in North America, Latin America, Europe, Africa and Asia-Pacific. This is the sixth acquisition by United Phosphorous this calendar year, it said. The revenues of United and its subsidiaries were $410 million for the year to March 2006.
Back to News Review index page  

Microsoft acquires 10 pc in TCS China
Mumbai: US software giant Microsoft has acquired a 10 pc stake in TCS China. The US company will hold a 10 per cent stake in TCS China whereas TCS will hold 65 per cent and the Chinese partners will hold the remaining 25 per cent. The equity capital of the company would be around $14 million. TCS China will allow TCS to provide the best in technologies to clients there at affordable local prices.

Tata Consultancy Services (TCS) and its three Chinese partners have a tripartite investment agreement for their joint venture TCS China, the Chinese arm of TCS.

TCS China will have 5,000 employees in five years' time. The company will focus on the BFSI (Banking, Financial Services and Insurance), manufacturing, telecom and government sectors. Beijing Zhongguancun Software Park, Uniware Company Ltd and Tianjin Huayuan Software Construction are the Chinese parties to the agreement.
Back to News Review index page