Hutchison offers $415 million to Essar as `sign-on bonus'
New Delhi: Essar group's tie up with Vodafone to jointly manage Hutchison Essar, Hong Kong-based Hutchison Telecommunications International Ltd (HTIL) has been further sweetened by Vodafone offering the former a $415 million as `sign-on bonus' in return for its cooperation in completing the deal between Hutch and Vodafone. The two agreements are likely to put an end to all the differences that had come up between Essar, Vodafone and Hutchison ever since the $11.1-billion deal was announced in February.

Essar will now take all reasonable steps to ensure completion of the transaction and will refrain from initiating any action that may inhibit or delay the completion of the transaction said HTIL in a statement. Essar has agreed to provide HTIL certain indemnities and waive any rights it may have in relation to the transaction, it added.

Vodafone is aiming to be the number one operator in the country by 2010 with a market share of 20-25 per cent up from 16 per cent at present.
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Maruti cars become more expensive
New Delhi: Maruti Udyog says it has hiked prices of all its models due to the increased education cess announced in the Union Budget 2007-08. The hike ranges between Rs258 and Rs1,017 (ex-showroom-Delhi prices) and is effective across the country.

The company said post price hike, its popular premium hatchback Swift will be costlier between Rs656 and Rs818 across different variants. Omni Cargo LPG prices have been increased by Rs258, while that of Omni 5 seater by Rs307. The price of Versa Dx model has also been hiked by Rs826. The base model of Swift will now cost Rs4,68,657 compared to Rs4,68,000 earlier. The popular Maruti 800 model will now be costlier by Rs268 at Rs1,93,914 as against Rs1,93,646. Zen Estilo Vxi would now cost Rs3,74,019 as against Rs3,73,500. The prices of Esteem models have been hiked by Rs912 and Rs982 for the Lxi and Vxi variants respectively. Esteem's base model would now cost Rs4,79,135 compared to Rs4,78,223 earlier. The prices have gone up most for Gypsy King Ambulance, which has become dearer by Rs1,017 per car at Rs5,25,549.
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GAIL, Reliance sign cooperation pact
New Delhi: GAIL India and Reliance Industries Ltd (RIL) have signed a memorandum of understanding (MoU) for cooperation in the gas sector here. The six areas identified for cooperation include CBM gas opportunities, city and local gas distribution, operation and maintenance (O&M) services, exploration and production and technology and knowledge sharing. (See: GAIL, Reliance to jointly bid for Indian oil and gas)
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Battery operated Yo bikes launched
Kolkata: Indus Elec-Trans, a division of Electrotherm (India) has launched its YoBykes range of battery-operated two-wheelers in eastern India. The range of six YoBykes variants will be available at prices between Rs16,000 and Rs29,000.

The YoBykes are based on electrical technology where the rechargeable battery replaces the conventional engine. The batteries can be charged as easily as a mobile phone wherever power connection is available. The bikes are manufactured in Kutch, Gujarat. The Gujarat facility has been equipped to manufacture 2,88,000 such vehicles per annum.

The YoBykes can run 700 km at the cost of one litre of petrol. The company has sold 25,000 units since the product was launched in Gujarat in February 2006. The life span of the battery of the Yo Bikes is up to 20,000-25,000 km. Since the maximum speed limit has been pegged at 25 km per hour, no registration or licence is required for the vehicle. The company is gradually rolling out the product in other parts of the country also and has appointed over 200 dealers and sub-dealers were appointed across the country.
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L&T consortium gets order worth Rs1,400 crore for VSP expansion
Mumbai: Larsen & Toubro (L&T) and its consortium partner Paul Wurth Italia have bagged an EPC (Engineer-Procure-Construct) package, valued over Rs1,400 crore, for the expansion of Vizag Steel Plant of Rashtriya Ispat Nigam Ltd (RINL). (See: L&T consortium bags Rs1,400-crore order for Vizag Steel Plant expansion)
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Areva's revised bid for REpower 33.3 pc higher than Suzlon's
New Delhi: French company Areva has put in a counterbid of 140 euro per share to acquire Germany's third-largest wind power company, REpower Systems AG. Areva's bid is 11.1 pc more than the Suzlon Energy-Martifer's offer of 126 euros per share.

Suzlon Energy, India's largest producer of wind turbines recently got approval of German regulator for its bid for REpower Systems. Suzlon had offered 1.2 billion euros ($1.33 billion) to acquire REpower Systems.

The French company had earlier offered to buy the remaining stake in REpower at 105 euros per share, and its revised offer is 33.3 pc higher than the first bid.

The French company had earlier made an offer to buy the remaining stake in REpower at 105 euros per share. Its revised offer is 33.3 pc higher than the previous one.
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RIL to divest stake in overseas oil and gas arm
Mumbai: Reliance Industries Ltd (RIL) plans to induct a strategic partner in its overseas oil and gas projects after it is spun off as a new entity.

Sources said global energy major Chevron Corporation, which has equity interest in RIL's subsidiary Reliance Petroleum, might be the preferred partner for Reliance Exploration.

RIL will divest 20 to 25 per cent in the Dubai-based Reliance Exploration and Production DMCC, the holding company for RIL's foreign oil and gas projects.

Reliance Exploration will house RIL's interest in a discovered oil block in Yemen and an offshore exploration block in Oman and exploration projects in northern Iraq, East Timor and Columbia.

RIL is keen to acquire gas fields in central and West Asia. Sources said the proposed divestment will strengthen Reliance Exploration in terms of pooling expertise and improving overseas bidding prospects.

The move to divest equity in Reliance Exploration is part of a restructuring exercise that began last year.
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Small car project to be ready by mid 2008: Kant
Kolkata: The Singur small car project of Tata Motors will be ready by the middle of next year, said Ravi Kant, managing director Tata Motors.

Kant said that the company was working closely with the West Bengal Government to resolve all issues related to the setting up of the plant that will roll out the Rs1 lakh car. He said it was for the State and the people to decide what was beneficial for them.

He said that the eastern region needed industrialisation and Tata Motors had confidence in the investment climate in the State.
He cited the example of Uttarakhand, where Tata Motors has set up a mini-truck plant.

The investment has changed the entire dynamics of the region, which has emerged as an automobile hub. He said West Bengal too has the potential to emerge as an automobile hub.

Tata Motors is setting up the small car plant at Singur, 45 km from Kolkata, at an investment of Rs1,500 crore.
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Cement companies file highest tax collection numbers
Mumbai: Cement companies have been top performers regarding advance tax collection numbers for the fourth quarter of 2006-07 following an upturn in the business cycle.

While Hindalco paid Rs265 crore for the fourth quarter as against Rs171 crore in the same period last year, Ultratech paid Rs110 crore, as against Rs27 crore in the same quarter last year. Bharat Petroleum Corporation Ltd and Central Bank of India paid Rs275 crore and Rs150 crore, respectively.

Reliance Industries, which paid Rs237 crore in the same quarter last year, is likely to pay lesser amount this quarter following the proposed merger with group company Indian Petrochemicals Corporation Ltd.

State Bank of India paid Rs690 crore, as against Rs1,036 in the same quarter last year. According to analysts, the bank paid around Rs850 crore in the third quarter of this fiscal.

According to sources, the Mumbai tax department may fall short of the revised target set by the government following buoyant collections in the third quarter.

While total collections for Mumbai may touch Rs75,000 crore, which is higher than the Budget target of Rs70,000 crore for 2006-07, it may be difficult to achieve the revised target of Rs79,000 crore. Mumbai accounts for almost 45 per cent of the total direct tax collections in the country.
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