New Delhi, January 8
Essar has announced that it is interested in buying out its foreign partner in Hutch-Essar, coinciding with UK’s telecom giant Vodafone commencing due diligence for acquiring India’s fourth largest mobile player.

“Yes, we are interested in Hutch. That is our company,” Essar Group Chairman Shashi Ruia said today.

Asked if Essar needed to study the books (due diligence), he retorted: “Why should I do due diligence. It is our company”. Essar by virtue of its 33 per cent stake in Hutch Essar Ltd (HEL) has three directors on the JV company’s Board and thus access to all operational, infrastructural and financial information about the joint venture.

Ruia’s announcement came within hours of a 20-member Vodafone team meeting HEL officials to start the process of due diligence, for which it is taking support from audit firm Ernst & Young and advisor UBS.

Ruias had held several rounds of discussions with their Hong Kong-based partner on issues of valuation, which is being pegged at up to $21 billion.

Both partners are also understood to have taken legal opinion on the issue of right of first refusal (RoFR), which would not be applicable in case Essar, which owns 33 per cent in the JV, decides to buy out the remaining stake.

Meanwhile, sources said during the next four days the 20-member Vodafone team would look into the top-line and earnings multiples of HEL along with the customer base and cash flow figures that had been told to Vodafone for the sale of Hong Kong-based Hutchison Whampoa’s 67 per cent stake in HEL.

Vodafone CEO Arun Sarin was tipped to visit India during the due diligence process on January 10. But the Vodafone spokesperson in London neither confirmed nor denied media reports to this effect.

A successful acquisition of the 67 per cent stake held by Hutchison Telecom and its associates in HEL would help Vodafone gain a strong presence in one of the world’s fastest growing mobile phone markets. — PTI

New Delhi, January 8
The green bags of the overseas Indians caught the attention of the Indian Government, which urged them to follow the path of overseas Chinese in the economic development of the nation.

While minister after minister listed out the areas of investment, the Home Minister tried to instil confidence amongst them that their assets in the country would be safe and the risks, India was as much as anywhere else in the world.

“You have the knowledge, expertise, experience and capital and can contribute in a big way towards not only enabling India to be on the path of development and reforms, but also towards balanced development within India,” External Affairs Minister Pranab Mukherjee said at the Pravasi Bharatiya Divas here today

He urged the states to take specific initiatives and devise strategies to benefit from the creativity, talent, and enterprise of the overseas Indian community.

Agriculture Minister Sharad Pawar said a second green revolution was urgently needed to raise the growth rate of agriculture GDP in India to around 4 per cent.

He said policies were being framed to ensure that growth was broad based.

Tourism Minister Ambika Soni said a tax holiday scheme for investments in budget hotels was expected to be announced in a few weeks and invited the Indian diaspora to avail the opportunity.

Acknowledging that tourism had remained on the backburner for long, she said the UPA government was giving a major thrust to the development of the sector through various measures, including simplification of visa system and improving connectivity.

In the next few weeks, there can be a decision to give tax holiday to those investing in budget hotels, Ms Soni said, adding, “You have experience in budget hotels. Please come and share your experience.”

To instil confidence amongst the overseas Indian to invest in the country, Union Home Minister Shivraj Patil assured them that India was as safe as any other part of the world.

“We are duty bound to provide security to all those who come to India. The risk involved in carrying out activities (in India) is definitely not going to be more than in other parts of the world,” he said. Presenting India as a happening place, the Home Minister said, “Please do not entertain any apprehension. We would be in a position to provide security”.

New Delhi, January 8
Haryana Chief Minister Bhupinder Singh Hooda today urged ovrseas Indians to contribute in nation-building as “we, together, can make India a strong and developed country”.

Speaking at the Pravasi Bharatiya Divas here, Mr Hooda invited them to Haryana to see for themselves how this ancient land of Mahabharata was fast transforming itself into a most modern and prosperous state of India.

He said NRIs were playing a significant role in building bridges for trade and industry between India and countries of their adoption.

While pointing out that over $10 billion investment by foreign institutional investors was an ample evidence of foreign investors’ growing faith in the Indian economy, Mr Hooda appreciated that all of them had been keenly following the results of the economic liberalisation in India’s policy initiatives taken 15 years ago.

Haryana also offered an enormous potential in tourism-related enterprises like starred hotels, recreation parks, golf courses, multiplexes, adventure and destination tourism. The Chief Minister said tourism had been given the status of industry in Haryana and farm tourism had been identified as a major area of growth in this sector.

Haryana had already been chosen as one of the states where tourists could come and stay in rural farms with farmers for a first-hand experience, Mr Hooda said.

He said 68 proposals for setting up of SEZs received in the state offered excellent opportunities for setting up of export-oriented units in a globally competitive environment.

The Nano City being developed at Raipur Rani in Panchkula district also offered unique opportunities for setting up hi-tech institutes and research and development centres.

It offered major investment opportunities for development of infrastructure projects and investment in key sectors of economy like information technology, autos and textiles. 

Patiala, January 8
BHEL has bagged an order worth nearly Rs 380 crore for renovation and modernisation of 2x110 MW units (3&4) of Guru Nanak Dev Thermal Plant (GNDTP), Bathinda.

The Punjab State Electricity Board, which has undertaken the major renovation and modernisation (R&M) work of the II & IV units of the GNDTP, placed the order with BHEL as it had given the lowest bid, PSEB Member Generation H.M. Jain said.

BHEL would also upgrade the units from their existing capacity of 110 MW to 120 MW each, which have completed their designed lifespan, to increase their lives by 15-20 years

Mr Jain said the turnkey contract was for renovation, modernisation and upgrading of two thermal generating units of the GNDTP. The plant would be modernised and renovated in 28 months. — UNI

New Delhi, January 8
Opposed to acquisition of farm land for industrial projects, the BJP today asked Prime Minister Manmohan Singh to call an all-party meeting over (SEZs).

Senior BJP leader L.K. Advani, in his address to FICCI's annual general meeting here, described as "wasted" the period between the late 1960s and the early 1990s for the Soviet-influenced model of economic development.

He also accused the Communists of double-speak on current economic issues, citing the row over farmland acquisition at Singur in West Bengal for a Tata Motors car project.

Mr Advani, who called SEZs as enclaves of world-class manufacturing units with special focus on exports, alleged that the UPA Government did not exercise necessary precaution in formulating and implementing the policy.

"In view of the recent and ongoing developments in West Bengal, I urge the Prime Minister to call an all-party meeting on this issue," he said.

Advani maintained that farmers whose land is acquired for industrial use should be given some kind of stake in the projects or a regular income stream.

The former BJP chief, whose party stood staunchly beside its ally and Trinamool chief Mamata Banerjee during her hunger strike against the Singur land aquisition for Tata, however, praised Mr Ratan Tata for his accomplishments. 

Chandigarh, January 8
With private dairy players in Punjab and Haryana increasing their share of milk procurement, Milkfed, Punjab and Dairy Development Cooperative Federation, Haryana, are facing a shortage of milk for procurement, even during the flush season.

As a result, Milkfed is keeping its growth plans for export on hold. Though the milk production in the state has increased, yet Milkfed procurement is less than expected as private dairy players have increased their share of milk procurement. Milkfed has decided not to export milk powder this year.

This even as Milkfed has already increased the procurement price of milk from Rs 220 per kilogram fat in November last year to Rs 230- 240 per kilogram fat. It is the highest-ever price paid to dairy farmers in the state till date. Last year, the procurement price offered to dairy farmers in Punjab was Rs 170- Rs 175 per kg fat.

Officials in Milkfed informed TNS that the procurement prices of milk are reduced with the onset of winter, but this year they were forced to increase the prices.

“Since the private players in the dairy sector are paying more to the farmers, the latter are selling milk to private players. At this time of the year, procurement by Milkfed should have been around 11 lakh to 11.50 lakh litres per day, but our average daily procurement is around 10. 50 lakh litres,” says a senior official in Milkfed.

On the other hand, Dairy Development Cooperative Federation, Haryana, is leaving no stone unturned to woo dairy farmers. “We have initiated several schemes for the dairy farmers so that they do not shift to private milk companies. We have recently sanctioned loans worth Rs 12 crore for the cooperative members and also offered an insurance scheme for them.

Seoul, January 8
South Korea's strike-plagued Hyundai Motor today filed a $1-million damages suit against its union for financial losses caused by stoppages.

The nation's top automaker said it would file more suits in future if the union organises any more "illegal" walkouts.

"Today's legal action concerns the losses made until last week," spokesman Park Hyung-Chol said after the $1.07-million lawsuit was filed.

"The management has warned the union of more damages lawsuits if workers continue to cause financial losses to the company with illegal walkouts." The damages -- the largest sum ever sought against the Hyundai Motor Workers Union -- were to compensate for production losses caused by union walkouts in protest at reduced bonus payments.

The company since 2000 had filed a total of nine damages lawsuits against the union but backed down each time under pressure. But Hyundai Motor Vice-Chairman Kim Dong-Jin said the 10th time would be different.

"We will never withdraw this suit," he was quoted by JoongAng Daily as saying.

The management decided last month to cut the year-end bonus by a third after Hyundai Motor sold 2.66 million vehicles in 2006, falling short of its annual sales target of 2.7 million.

The union has boycotted overtime and staged sit-ins to press for the full bonus payment while the management has insisted that the payment be commensurate with business performance.

Hyundai Motor said it had lost production of 7,752 vehicles worth some $126 million since the latest industrial action began on December 28. — AFP

Bangalore, January 8
Developing the aerospace industry is the next target of the Karnataka Government that has proposed a special economic zone (SEZ) for the industry.

This along with the likely establishment of a facility by the European Aeronautics Defence and Space Company (EADS) and the entry of Hindustan Aeronautics Limited (HAL) into the MRO (maintenance, repair and overhaul) segment is likely to make Bangalore an aeronautic hotspot, just like it is an IT hotspot at present.

Minister for State for Large and Medium Enterprises Katta Subramanya Naidu said the aeronautics SEZ would come up at Devanhalli, close to the international airport, which was coming up there. He said the SEZ would focus on component manufacture for the aerospace industry. He said EADS and Lufthansa had already shown interest in setting up manufacturing facilities in Bangalore and that the state would woo other major aerospace players as well.

The government has proposed to acquire 900 acres for the SEZ close to the international airport. He said preliminary work for the acquisition had been completed and that the entire process would be completed within one year.

Mr Naidu said simultaneously SEZ projects were also being planned for two tier cities with Mysore and Mangalore already benefiting from the policy and other cities like Hubli and Shimoga in the pipleline.

New Delhi, January 8
Media conglomerate Zee Group’s recently demerged group firms Zee News and Wire & Wireless India will begin trading on January 10 after chairman Subhash Chandra rings the opening bell at the Bombay Stock Exchange.

The company’s news broadcasting arm Zee News Ltd (ZNL) and cable business entity Wire and Wireless India Ltd (WWIL) would be listed on the BSE, NSE as well as the Calcutta Stock Exchange.

As per a scheme of demerger, Zee Telefilms has hived off its news and cable businesses and was renamed as Zee Entertainment Enterprises Ltd, which had begun trading on bourses as a demerged entity on December 18. — PTI