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RIL’s German unit goes bust
Markets set for correction; Re, gold may harden
Govt promises incentives for exporters
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Local cheques to be cleared same day
BSE market cap touches $1 trillion
Chinese Co to drive away Hummer
Commission Row
WB praises NREGA
HPCL to pump in Rs 614 cr for ethanol
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RIL’s German unit goes bust
New Delhi, June 3 Reliance Industries had acquired Trevira five years ago for Rs 440 crore and group chairman Mukesh Ambani had announced the deal at the Annual General Meeting that year. This acquisition in 2004 had propelled Reliance to the position of the world's largest polyester fibre and yarn producer. The German unit had 1,800 employees as of March 2009 and a turnover of Euro 323 million last year. "Trevira filed an application with the Augsburg Court in State of Bavaria, Germany, for the commencement of insolvency proceedings with a restructuring plan," RIL said in a press statement here. Reliance is the latest in the list of Indian conglomerates that have been hit by the financial tsunami on their global acquisitions. Trevira is among the few prized acquisitions that the second generation of Ambanis executed after taking charge from their father late Dhirubhai Ambani, before the siblings Mukesh and Anil parted ways. The Trevira deal followed acquisition of Flag Telecom in early 2004 for $311 million. Trevira faced severe demand contraction in its principal market segments due to the global financial crisis. — PTI |
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Markets set for correction; Re, gold may harden
New Delhi, June 3 The rally began on March 6 when the Nifty started its upward journey from the 2,500 point level. This might have been in response to the UPA’s victory in the general elections as well as improved sentiment in both the global and domestic economy, say marketmen. However, stocks have gone up by nearly 80 per cent during the past three months, with the Nifty touching 4,500 points, indicating there has been an irrational exuberance in the bullish market, they add, hence the necessary correction. Some marketmen are of the view that the bourses, especially the Nifty, will touch the 4,650 level and then start undergoing a correction. A growth of 10 percent per month in the index is healthy but 80 percent over a three-month period is a matter of concern, they add. However, foreign institutional investors continue to make a beeline for Indian markets. Capital flows to the country are expected to almost double to US $33.9 billion (Rs 1,59,003 crore) in the current fiscal from an estimated $17.3 billion in 2008-09, riding on an improved growth outlook, says financial services major Morgan Stanley in a report, adding capital flows in 2011 are expected to be around $41.3 billion. The report stated that in line with the deterioration in the global capital market environment, capital inflows into India declined during the quarter ended December 2007, despite the attractive long-term investment prospects. The currency markets are also upbeat with the rupee rallying towards the 47 mark against the dollar, again aided by a weakening greenback together with a buoyant equity market. Besides concerns about the risk of the US sovereign rating losing its ‘triple A’ status on a ballooning budget deficit and the dollar’s future as a global reserve currency have also weighed in. These concerns have no doubt influenced FIIs to pump in close to $800 million in Indian markets over the last five sessions, helping somewhat in arresting the rupee’s decline when it slipped to 48 against the dollar. The country’s bullion market also saw money flowing in as a safe haven, though the resistance is at $990 per ounce. Marketmen say the dollar’s current weakness is tied to overoptimism about the country’s economic and financial outlook and that other fundamental factors will soon put a lid on any gains. However, it is expected with India’s widening fiscal deficit gold is likely to touch Rs 16,000 per ounce. |
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Govt promises incentives for exporters
New Delhi, June 3 "We will be giving incentives so that Indian exports will become competitive," Commerce and Industry Minister Anand Sharma told reporters after meeting heads of different export organisations, including commodity boards here. Faced with slump in demand in key markets such as the US and Europe, India's exports plunged by 30 per cent in May as per the quick estimates, given by Commerce Secretary G K Pillai. The final figures will be released on July 1. Exports fell the most in 14 years by 33.2 per cent in April to $10.74 billion in April 2009-10, from $16.08 billion a year ago. "We do still expect negative trend, may be, till August," the Commerce and Industry Minister said. Sharma said he would be meeting Finance Minister Pranab Mukherjee soon and make sector-specific recommendations and policy measures. Mukherjee, who is to present the Budget for this fiscal in the first week of July, yesterday met exporters who briefed him about their difficulties. Among other things, exporters seek a cut in the cost of credit. "Yes, there is a case to cut interest rates... we will be taking up this issue," Sharma said. — PTI |
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Local cheques to be cleared same day
Chandigarh, June 3 "Ideally, in respect of local clearing, banks shall permit usage of the shadow credit afforded to the customer accounts immediately after closure of relative return clearing and in any case withdrawal shall be allowed on the same day or maximum within an hour of commencement of business on the next working day, subject to usual safeguards," RBI said in its circular. The central bank has fixed a time frame for collection of outstation cheques as well. The time frame for collection of cheques drawn on state capitals and major cities has been capped at seven days and 10 days, respectively. For all other locations, banks have to clear the cheque within 14 days. If there is any delay in collection beyond this period, the bank has to pay the customer interest at the rate specified in the bank's cheque-clearing policy. If no interest rate is specified, the bank will have to pay interest at the rate on fixed deposits for the corresponding maturity. Meanwhile, instructions have also been issued by RBI on the contents of Cheque Collection Policies (CCPs) framed by banks as also regarding publicity to be given thereto in the interest of better information dissemination and service to customers. The banks have been asked to give publicity to the CCP by displaying salient features thereof in bold and visible letters on the notice board at its branches. A copy of the complete CCP shall be made available by the branch manager, if the customers want. |
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BSE market cap touches $1 trillion
Mumbai, June 3 According to information available with BSE, the combined market value of all firms listed on the bourse rose to Rs 49,61,449.51 crore or over $1 trillion (calculated at an exchange rate of 46.83 rupees for a dollar). This represents a sharp gain of over two-fold from $485 billion or Rs 24,10,256 crore on October 27 last year when the benchmark Sensex plunged to its 52-week low and the rupee was quoting at 49.74 against the greenback. — PTI
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Chinese Co to drive away Hummer
New York, June 3 The proposed transaction, which is expected to save as many as 3,000 jobs, was announced on Tuesday, a day after the iconic auto maker filed for bankruptcy protection. According to the planned deal, General Motors in a statement on Tuesday said the Chinese industrial machinery group Tengzhong would acquire the rights to the premium off-road Hummer brand, along with senior management and operational team. In a separate statement yesterday, General Motors had said it has entered into a "memorandum of understanding (MoU) with a buyer for Hummer, its premium off-road brand". The car maker noted that the deal is anticipated to secure more than 3,000 US jobs in manufacturing, engineering and at Hummer dealerships around the country.— PTI
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Commission Row
New Delhi, June 3 The letter has asked 14 foreign airlines to reply within 10 days. The action came after travel agents and members of six associations, including the Travel Agents’ Association of India (TAAI), Travel Agents Federation of India (TAFI) and the IATA Agents Association of India (IAAI) met DGCA yesterday and demanded regulation to protect the travel agents and industry. TAAI president Rajji Rai said DGCA’s letter asked foreign airlines to explain the transaction fee and the logic behind asking agents to take commission from consumers when it were the agents who were providing them with the service. Most airlines have stopped paying the five per cent commission to agents from November, forcing them to shift to a fixed transaction fee on every ticket purchased. However, the fixed transaction fee, in the range of Rs 350 to Rs 2,500 a ticket depending on the class and routes, had also been discontinued from December, prompting agents to boycott booking of tickets of foreign airlines. Rai said they were hopeful for a solution after this DGCA letter to foreign airlines. The ongoing tussle has not been good for business and that the agents should get their due for the services they provide to the airlines. Incidentally, in December, the Karnataka High Court had held that the DGCA as the final authority to resolve the issue and asked the agents to submit a petition to it.
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New Delhi, June 3 Describing the NREGA scheme as an innovative programme, he said, "(it) is an important cushion for poor people living in rural areas who might be at risk of being pushed further into poverty." — PTI
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City gas distribution for Chandigarh on the cards
Chandigarh, June 3 Talking to TNS here today, on the sidelines of a discussion on local natural gas distribution networks being organised by the board in association with CII, the chairperson of the board, L Mansingh, said they had successfully allotted the bids for city grid pipeline projects in Kakinada, Dewas, Sonepat, Mathura, Meerut and Kota. “The projects in five of these cities have been allotted to GAIL and its subsidiaries. We have now floated Expression of Interest (EoI) to invite bids for seven cities, namely Chandigarh, Rajamundri, Yanam, Shehdol, Jhansi, Allahabad and Ghaziabad. The last date for submission of bids is June 21, and till date 21 applicants have already submitted their bids. Each of these areas would require an investment of Rs 500 crore upon full implementation,” he said. He said besides the technical and financial conditions, the board was also looking for a natural gas sourcing plan and experience in either laying pipelines or piping gas, before awarding these projects. The bid winners would enjoy 25 years exclusivity on infrastructure and gas marketing exclusivity of five years. After five years, the board would again invite bids for marketing of gas. Mansingh said those cities had been chosen by the PNGRB which either have a pipeline network, or which are likely to come up on the pipeline network soon. “After the Dadri-Nangal pipeline is laid out by October 2010, spur lines will be laid and we should be able to start the city gas distribution project at Ludhiana, Mandi Gobindgarh and Jalandhar. The Punjab government is quite keen on the city gas distribution (CGD) network for Ludhiana, Amritsar and Jalandhar and we should be able to start this within the next two years,” he said. The chairperson also said the board was now urging Punjab government to initiate a single- window clearance system for laying down the pipeline and spur lines. He said the state governments in Tamil Nadu, Andhra Pradesh and Gujarat had already appointed nodal agencies for setting up single-window clearances for these projects.
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HPCL to pump in Rs 614 cr for ethanol
New Delhi, June 3 "The HPCL Board had a few weeks ago approved the investment proposal but due to the General Elections it was not implemented. The board was yesterday informed of the decision to go ahead with the investments," a company official said. The two plants will produce 60 kilolitres of ethanol per day, to be used to dope petrol. "We are now tendering for plant equipment and the two units would be operational by 2010-end," he said. India has mandated blending of ethanol in petrol to cut the country's dependence on imported oil. Currently, 5 per cent ethanol is doped in petrol and the percentage may be doubled in coming years. HPCL had last year taken the two closed sugar mills from the Bihar government on a 60-year lease for Rs 95 crore.
— PTI |
NHPC public offer likely in August US firm to buy into NSE ICICI Pru launch Lucas Indian plan
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New York, June 3
