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Economy News
4 To partially neutralize the outflow of money from the system to the
government's exchequer due to advance tax payment by corporate this
week, the Reserve Bank of India (RBI) has announced an open market
operations (OMO) worth Rs.120 bn on Wednesday. The advance
corporate tax outgo this quarter is estimated to suck out between Rs 400
bn to Rs 500 bn from the system. (ToI)
4 Petroleum minister Murli Deora has asked state-run oil marketing
companies to raise petrol price by a rupee per litre instead of Rs 2.50
warranted to offset their loss. The price rise is scheduled from the
midnight of Tuesday-Wednesday. As for diesel, he plans to leave the
decision on the Empowered Group of Ministers (EGoM), which meets on
December 22, with a plea that the government fund bulk of the required
raise of Rs 4.70 per litre. "At best, our recommendation would be to raise
diesel price by Re 1 a litre," said a ministry official. (IE)
4 The telecom ministry on Monday began issuing show-cause notices to 85
telecom licence holders identified by the CAG for obtaining 2G licences by
submitting ineligible applications as well as to 69 others identified by Trai
for failing to meet their rollout obligations. The CAG had identified 85 of
122 licences issued in 2008 to be ineligible as companies misrepresented
facts. The companies that are impacted by this include Unitech (Uninor),
Loop Telecom, Datacom, S Tel, Swan Telecom (Etisalat) and Sistema
Shyam (MTS). (ToI)
Corporate News
4 ICICI Bank is again accessing the overseas market to mobilize $545 Mn
through its US commercial paper (USCP) programme. Standard & Poor's
has assigned its 'A-1' short-term issue rating to the proposed issue. The
programme is supported by a $545 Mn irrevocable direct-pay letter of
credit issued by Bank of America. In November, the bank had raised $1
billion through 10-year US dollars denominated bonds. The bank had
offered the notes to investors at a yield of about 335 basis points more
than similar-maturity US Treasuries. The bank had also raised $150
million on November 16. (IE)
4 Reliance Communications launched 3G, mobile services in Mumbai,
Delhi, Kolkata, and Chandigarh on Monday. The company plans to launch
services in the remaining areas where it has spectrum before March.
Earlier this year, the company bought 3G bandwidth in 13 service areas
for Rs 85.8 bn. The technology is expected to get customers hooked to
using data services that are priced at better profitability than voice calls.
(ET)
4 Novartis to acquire 49% stake in Chiron Behring Vaccines. Chiron Behring
is a joint venture of Novartis Vaccines and Diagnostics Inc. and Aventis
Pharma. Novartis and Aventis are currently fighting a couple of cases on
the largest selling rabies vaccine brand, Rabipur, after the brand went to
Novartis in 2009. Rabipur was the largest selling rabies vaccine brand in
India sold by Aventis for the last one decade. With this transaction, this
dispute will be mutually settled. Another case is also pending between
these two companies as Aventis was planning to sell its own rabies
vaccine brand Verorab in India which Novartis argued that as they were
partners in one rabies vaccine company, it may create conflict of interest.
(Mint)
4 Sintex Industries will develop projects in monolithic construction, solid
waste & water management and power after its acquisition of a majority
stake in New Delhi-based Durha Constructions Pvt Ltd (DCPL), said group
president Sunil Kanojia. Sintex on Monday announced that it has acquired
30% in DCPL for Rs 420 mn, valuing the latter at Rs1.4 bn. It will acquire
another 21% by early next fiscal based on DCPL's 2010-11 results. (DNA)
News Round-up
` Diesel price hike decision on Dec 22, inflation, allies may force govt. to restrict
increase to INR 2 a litre. (ECNT)
` International Coal Ventures Ltd, floated by SAIL (SAIL IN), NMDC (NMDC IN), NTPC
(NATP IN), RINL and Coal India (COAL IN), may bid for Austria's Riversdale Mining.
(BSTD)
` Tata Motors (TTMT IN) plans to invest around USD 89 mn to develop a new set of
fuel-efficient engines for its light commercial vehicles (trucks), which would help
increase its sales in overseas markets. (FNLE)
` AAA Project Ventures, the promoter group co. of Anil Ambani owned Reliance
Infrastructure (RELI IN), may have to forgo the upfront payment of around USD
94.44mn made while subscribing to the convertible warrants in July 2009, as
company shares are trading at 13% discount to conversion price. (ECNT)
` Vedanta Resources said shareholders have approved the proposed acquisition of a
51-60% interest in Cairn India from Cairn Energy. (BSTD)
` Sterlite Industries India Ltd (STLT IN) informed the BSE that the Supreme Court had
adjourned hearing of a special leave petition against the Madras High Court order to
close down the company's copper smelting plant in Tuticorin, Tamil Nadu, on alleged
environment pollution The matter has been adjourned to last week of January 2011.
(BSTD)
` NTPC (NATP IN) signs PPA with Bengal government for 1,600 Mw project.
` PNB (PNB IN) has acquired a 63.64% stake in JSC Dana Bank Kazakhstan for USD
23.76mn. (ECNT)
` Hindalco (HNDL IN) to get USD 1.7bn dividend from Novelis, which recently
announced plans to raise USD 4bn through debt. (THBL)
` Ashok Leyland (AL IN) wins orders for 600 vehicles from VRL Logistics. (THBL)
` JSW Steel (JSTL IN) issues USD 102.67mn GDRs to Japan's JFE Steel Corp. (THBL)
` RCom (RCOM IN) launched its 3G services in four circles at an "affordable" tariff rate.
(BSTD)
` Hindustan Zinc (HZ IN) raised zinc product prices by INR 500 a tonne and lead
product prices by INR 700 a tonne. (FNLE)
` Sintex Industries (SINT IN) subsidiary Sintex Infra Projects acquired 30% stake in
Durha Constructions for USD 9 mn. (FNLE)
` GMR Infrastructure (GMRI IN) inks service pact with General Electric. (FNLE)
Source: ET = Economic Times, BS = Business Standard, FE = Financial Express,
BL = Business Line, ToI: Times of India, BSE = Bombay Stock Exchange
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