New Delhi, July 10
Market regulator Securities and Exchange Board of India (SEBI) today simplified disclosure norms for listed companies by amending Clause 41 of the Equity Listing Agreement.

"The revised Clause 41 of the Equity Listing Agreement shall come into force for all filings made to stock exchanges in respect of accounting periods commencing on or after July 1, 2007", SEBI said in a communication to all stock exchanges.

Under the revised norms, the companies furnishing unaudited financial results will be required to file a copy of the limited review report to the stock exchanges within two months from the end of the quarter.

With a view to enable investors know the performance as early as possible, companies have the option to furnish either unaudited or audited quarterly and yearly financial results to the stock exchanges within a month from the end of the quarter. These unaudited results, however, are subject to a limited review.

SEBI has also decided to simplify the provisions for explanation for variation between items of unaudited and audited quarterly/yearly annual results by restricting it to net profit, loss after tax and for exceptional/extraordinary items.

The regulator, however, has reduced the percentage of variation for revision from '20 per cent or more' to '10 per cent or Rs 10 lakhs, whichever is higher'. — PTI

Mumbai, July 10
Reliance Energy Ltd (REL) is planning a major foray into nuclear power generation, the company’s chairman and managing director Anil Ambani told shareholders at annual general meeting.

The foray would be part of a $15 billion expansion plan, which would see REL generate a fourth of India’s fresh power capacity over the next five years, Ambani said. The company, he added, plans to generate 15,000 MW power by 2012. At present, REL generates 941 MW of power.

Ambani added that REL is awaiting rules on private participation in nuclear power generation to become clear before venturing into the field. The company, he said, planned to invest in the generation of 2,000 MW of nuclear power.

Ambani informed that the company would bid for the construction of two ultra mega power projects (UMPP), which would require an investment of Rs 40,000 crore. REL had been pre-qualified for the final bid for Krishnanpattanam UMPP, while it has submitted its request for the Tilaiya UMPP in Jharkhand, Ambani said.

REL, he said, planned to become an all-round player in the power sector. Apart from generating nuclear power, REL is bidding in the power transmission business and would bid for captive coal blocks to ensure fuel supply at reasonable cost.

Ambani said he wanted the government to reform the policy framework that governs the production and supply of natural gas and coal so that fuel is supplied at a reasonable cost and financial interests of the lenders are protected.

New Delhi, July 10
Consumer goods major Videocon plans to list in the US market in two years by when it dreams of putting its products in American homes.

"My dream is to enter the US market... we would like to enter the market as soon as we are ready. Probably in two years’ time. Once we enter the market, we will ring the Nasdaq bell," Videocon Group chairman Venugopal Dhoot told PTI.

Videocon could then join the likes of IT giants Infosys, Wipro and Satyam, which are listed on US bourses. While Dhoot himself could be rubbing shoulders with tech czars N.R. Narayana Murthy and Azim Premji, who rang the opening bell at the NYSE and Nasdaq.

"You cannot go haphazardly or half heartedly in the US market, because it is 'the market'. It is 40 per cent of the world's market. So when you want to enter the US market you have to be very cautious," he said.

The company's plant in Mexico could serve as the route to the US, he added.

Currently, 17 Indian companies are listed on the US bourses, six on Nasdaq and the remaining 11 on NYSE.

Infosys was the first Indian company to tap US exchanges with a listing on Nasdaq in March 1999. — PTI

New Delhi, July 10
Amid stiff global competition from major airport construction companies, a consortium led by Indian developer GMR has bagged an about Rs 11,000-crore (two billion euros) project to modernise Istanbul’s second airport.

“We have to pay a license fee of 1.93 billion euros ($2.57 billion) and we will invest 400 million euros in the beginning as part of the project cost,” GMR CFO Madhu Terdal said today.

The GMR Infrastructure Limited-led consortium faced stiff competition from Fraport, Venice Airport, Chicago Airport and two other local companies.

The consortium, in which GMR and Turkish firm Limak Insaat Sanayi own a 40 per cent stake each and Malaysia Airports Holdings Berhad the remaining 20 per cent, would develop the Sabiha Gokeen International Airport, which is second one at Istanbul after the Attaturk Airport.

“With this deal, we have made our first global footprint,” Terdal said, adding that “we have to take over the Sabiha Gokeen airport within the next three months.” He said Istanbul’s main airport, Attaturk, has already reached its peak capacity of 20 million passengers.

The Sabiha Gokeen project, to develop a new international terminal among other things, would be built on build-operate-transfer basis within 30 months and BOT concession would be for 20 years, he said.

The GMR-led consortium would also have to manage the existing domestic and international terminals till the new terminal is constructed. The existing terminal would become the domestic terminal once the new international terminal comes up, Terdal said. — PTI

New Delhi, July 10
The six core infrastructure industries have recorded a growth of 8.7 per cent in May thanks to a better performance by cement, steel, electricity and petroleum products.

The index of the infrastructure industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) and registered a growth of 8.7 per cent as compared to a growth of 7.2 per cent in May.

Better performance by cement, steel, electricity and petroleum products also helped the overall growth figures in first two months of 2007-08 to touch 8.1 per cent as against 7.2 per cent during the corresponding period in the previous year. In April, the index had risen to 7.4 per cent.

According to the official data released here today, production in the cement sector grew by 9.4 per cent in May as against 6.8 per cent in the same month in 2006.

Petroleum refinery production grew by 14.9 per cent as compared to 12.1 per cent in May last year.

Electricity production registered a growth of 9.3 per cent in May this year as against 5.1 per cent in the corresponding period last year.

Finished steel production was up by 11.8 per cent. The growth displayed by the sector in May last year was 10.7 per cent.

However, the production of crude oil went down by 1.6 per cent in May while the sector had grown 1.2 per cent in the same month previous year.

The growth of coal production declined to 0.9 per cent from 8.3 per cent in the same period previous year.

New Delhi, July 10
India witnessed second highest appreciation in its currency of 8.35 per cent between January and June 2007 after 9.28 per cent of Brazil among emerging economies that are in direct competition with Indian exporters, revealed Assocham Eco Pulse Study.

The fallout of rupee appreciation against dollar is expected to amount to deceleration of India’s exports proceeds to $145 billion against targeted figure of $160 billion for 2007-08, concludes the chamber.

The Assocham had undertaken a study on currencies of competing countries comprising China, Taiwan, Brazil, Indonesia, Malaysia, Hong Kong, Pakistan, Russia, Thailand, Bangladesh, Indonesia, South Korea and Singapore.

The appreciation of rupee from January to June 2007 is one of the second highest in developing countries taken for the study.

The Indian rupee has appreciated by around 8.35 per cent, Brazil by 9.28 pr cent, Thai by 7.56 per cent, Russia by 2.08 per cent, Malaysia by 1.98 per cent, China by 1.82 per cent whereas the appreciation in Singapore, Bangladesh, Indonesia, Pakistan and South Korea is less than 1 per cent and quiet insignificant.

On the other hand, the currencies of Hong Kong and Taiwan are depreciating which is a major concern as India competes with both these countries.

Releasing the study, Assocham president Venugopal N Dhoot forecast that modest rupee appreciation would contain export growth and if corrective measures are still missing, the rupee might fall below 40 against dollar in the next few weeks.

According to the study, the major export sectors that come directly under appreciation threat are IT & services, textiles, leather, sugar and pharmaceuticals.

Pakistan and China are performing better than India in textiles sector, as their currencies are not appreciating as high as Indian rupee. 

New Delhi, July 10
At a time when India is focusing on integrated development approach to enhance its growth rate, the World Bank has assured to maintain high engagements with New Delhi by funding a number of new and innovative projects in the current fiscal.

“We hope to maintain a similar momentum during the current year when a number of new and innovative projects, designed in India are likely to come up,” World Bank’s executive director Dhanendra Kumar has assured in a letter to the finance ministry.

The World Bank had extended a loan of $3.8 billion during 2006-07, which was 169 per cent more than previous year’s lending of $1.4 billion. This was the largest ever in the history of engagement of India and the World Bank for any single country.

This included concessional IDA (International Development Association) credits of $2.32 billion and IBRD (International Bank for Reconstruction and Development) loans of $1.5 billion. In addition, the IFC (International Finance Corporation) has funded $700 million in different projects in India.

Nearly one-third of IBRD lending during 2006-07 ($470 million) was designed to improve the quality of road networks in the states of Himachal Pradesh ($220 million) and Punjab ($250 million), Kumar said in his letter, a copy of which is available with The Tribune.

These projects are aimed at ensuring speedier movement of agriculture products to markets, help in reducing travel costs for people and improving their access to social service.

The project pertaining to strengthening rural credit cooperatives, with $600 million funding by the World Bank, one of the largest single projects funded in India or elsewhere by the World Bank during 2006-07, would support the programme to reform and revitalise the rural cooperative banks enabling significantly enhanced access to formal finance, especially for the small and marginal farmers, he said.

Since 1995, IDA has supported India with $11 billion through 62 projects. Three quarters of IDA lending has gone to rural development (28 per cent), health and nutrition (26 per cent), and education (20 per cent).

A major portion of the World Bank’s FY07 total lending — $1.6 billion — will support government rural development initiatives and one third of IBRD lending for infrastructure, including components of Bharat Nirman.

Chandigarh, July 10
After consolidating its operations in India and other Asian markets, Metro Tyres is now eyeing European markets with its wide range of two-wheeler and bicycle tyres.

The company is all set to enter the European market under its own brand ‘Ortem Tyres’ for two-wheelers. It already had a presence in the European market through Continental AG of Germany - the technology partner of Metro Tyres - and has now set up an overseas office in Barcelona.

Commenting on the development, Rummy Chhabra, managing director, Metro Tyres, said: “With the start of our operations in Europe, the company is taking a decisive step in establishing a platform for growth in Europe and it will allow us to remain close to our strategic customers in the region, develop local market and increase the profitability of our operations.”

“Our European strategy is similar to that pursued in the other overseas market, which centres on creating partnerships with well established companies having extensive product range, sales networks in their target markets. In addition, we intend to continue forming new agreements with original equipment manufacturers,” he added.

Metro has also signed up an agreement with Continental AG to roll out tubeless motorcycle tyres, which would be manufactured in India, primarily for overseas markets to cater to the demand of tubeless tyres among the global two wheeler players like Honda, BMW and Yamaha. It also plans to roll out these tubeless tyres in the domestic market.

Besides this, the company is also planning to set up a new manufacturing facility for motorcycle, scooter and three-wheelers tyres at an estimated cost of over Rs 50 crore in the tax free zones in north India. 

New Delhi, July 10
Assocham has cautioned the government against “excessive focus” on IT and ITeS and advocated the need for larger concentration on manufacturing, agriculture, services and other allied sectors.

Policy makers should lay their focus more on manufacturing, agriculture, services and other allied sectors that contribute about 95 per cent to Gross Domestic Product (GDP) rather than confining to IT and ITeS, which contribute a meagre 5 per cent to the national GDP, Assocham president Venugopal N Dhoot said in a statement here.

“In view of Assocham, a focussed attention needs to be deviated from IT and ITeS to sectors such as manufacturing, which in totality contributes 17 per cent to GDP and agriculture whose contribution to it is less than 22 per cent,” Dhoot said.

He emphasised that India needs to understand the importance of the balance of 95 per cent of the economic activity which hover around manufacturing, wholesale and retail, tourism and travel, healthcare, education, construction and retail business worldwide.

The chamber also suggested encouraging the growth of small and medium enterprises (SMEs) to boost the manufacturing sector, giving successful examples from the US, Japan, Taiwan, Europe, South East Asia and Brazil.

Policies should be formulated in a way so as to attract maximum amount of investments and modern technology in sectors such as textiles, engineering, auto components and machine tools, he said, adding effective steps should also be taken to leverage the amount of foreign capital inflows in the country.

New Delhi, July 10
Amidst demand from exporters for special package to tackle the adverse impact of hardening of rupee against dollar, RBI Governor Y.V. Reddy today met finance minister P. Chidambaram here.

Both Chidambaram and Reddy refused to comment on what transpired during their hour-long meeting.

The meeting assumes significance as the Prime Minister’s Office would hold a meeting to clear a relief package for exporters.

The meeting also assumes significance as after 20 days, the RBI Governor is scheduled to announce the quarterly credit policy. — TNS

New Delhi, July 10
GAIL and Apollo Tyres today signed an agreement for a steam conversion project based on waste heat recovery system from GAIL’s gas turbines. This rare, multi-benefit project would not only utilise Clean Development Mechanism (CDM) for power generation, but would also lead to conservation of gas and increased energy efficiency.

B C Tripathi, director (marketing), GAIL and Mahesh Sharma, chief (legal), Apollo Tyres signed the agreement, a release said.

A first-of-its-kind project, it will be implemented by GAIL at its Vaghodia compressor station for supply of steam to Apollo Tyres within two years at a cost of about Rs 35 crore. The project is conceived as a CDM project under the Kyoto Protocol. — TNS