New Delhi, January 11
The Cabinet today referred the proposed pharmaceutical policy to a Group of Ministers (GoM) that would be set up shortly, Information and Broadcasting Minister P R Dasmunsi said here.

Members of the GoM would be decided by Prime Minister Manmohan Singh soon, Mr Dasmunsi told reporters after the Cabinet meeting.

Asked about any timeframe for the policy, he said the policy was likely to be announced in the Budget session of Parliament.

The draft policy circulated by Department of Chemicals had mooted drug price control, which the industry has opposed.

The Cabinet today gave in-principle approval for the semi-conductor policy that seeks to provide incentives to hi-tech companies proposing to set up chip manufacturing facilities in India.

"Cabinet today gave its in-principle approval for giving special incentives to attract semi-conductor companies to set up fabs in hi-tech areas," Mr Dasmunsi said.

These special incentives will be available to companies till March 2010. The threshold limit, incentive package and subsidy will be worked out later by the Prime Minister's Office and the Cabinet Secretary, he added.

Meanwhile, the Cabinet also approved amending the Drug and Cosmetics Act, 1940, to bring uniformity in licensing among other things, besides giving the go-ahead for setting up of a Central Drugs Authority of India as an autonomous organisation in the health ministry.

The decision would facilitate upgradation of the national drug regulator, bring uniformity in licencing, beside improving quality and ensuring safety of drugs, he said.

The Cabinet also gave its clearance to a phased five-year transition from the present system of grant of manufacturing licences to a complete central licensing of drug manufacturing units from state to union government.

Besides, the Cabinet approved upgradation of post of Drug Controller (India) from the grade of Joint Secretary to that of Additional Secretary to the Government of India.— PTI

Bangalore, January 11
Infosys Technologies Ltd today beat forecasts for quarterly earnings by reporting a 51.5 per cent jump in consolidated net profit at Rs 983 crore in the third quarter.

This was achieved due to a surge in outsourcing, which resulted in revenues growing by 44.4 per cent to Rs 3,655 crore in the quarter ended December 31, 2006, as compared to the previous quarter. The standalone net profit for the third quarter stood at Rs 958 crore, a 49.22 per cent jump over Rs 642 crore posted in the year-ago period.

The company has gone in for an upward revision of its guidance for revenues in this fiscal despite a strong rupee appreciation impacting its operating margins. The guidance has now been fixed between 46.1 to 46.2 per cent. The earnings per share have increased to Rs 17.64 from Rs 11.83 for the corresponding quarter previous year.

While announcing the results, the Managing Director and CEO of Infosys, Mr Nandan Nilekani, said ''Our investment in enriching and synergising our portfolio of services have created compelling value proposition to our clients''.

Commenting on the performance of the company, President and COO S. Gopalakrishnan said ''We have seen an accelerated growth in Europe, which continues to be a key focus market for us.'' Europe accounted for about 26.8 per cent of the total revenue in the quarter.

Mumbai, January 11
The Securities Appellate Tribunal (SAT) today stayed SEBI's disgorgement order that had asked 10 entities, including depositories NSDL and CDSL, to cough up about Rs 116 crore for their role in the IPO scam.

Admitting the appeal by the 10 affected parties, SAT's presiding officer, Justice N.K. Sodhi said: "After detailed consideration in the disgorgement order, the operational part of the order has to be stayed."

SEBI's first-ever disgorgement order passed on November 21 last year had directed the 10 entities to pay Rs 115.81 crore within six months for gross violations of know-your-client (KYC) norms in the allotment of shares in 21 IPOs during 2003 to 2005.

"We see no urgency for SEBI to go for the disgorgement order when the enquiry was still continuing. I think the Board needs to wait and complete the inquiry first and then pass the disgorgement order," Justice Sodhi said.

"I find it to be a unique and strange order where the quantum of penalty has been determined even before the inquiry has been completed," he said.

Besides NSDL and CDSL, other eight entities were depository participants.

Under the disgorgement order, SEBI had directed NSDL to pay Rs 45.01 crore and CDSL to pay Rs 12.89 crore.

Among the DPs, Karvy Stock Broking Ltd has been asked to cough up the maximum amount of Rs 51.52 crore, HDFC Bank (Rs 1.64 crore), ING Vysya (Rs 0.55 crore), IDBI Bank (Rs 0.86 crore), Jhaveri Securities (Rs 0.44 crore), Khandwala Integrated Fin. (Rs 0.29 crore), Pravin Ratilal (0.68 crore) and Pratik (Rs 1.93 crore).

The idea behind the disgorgement order is to make the entities pay for the unethical gains it made in the IPO scam and the money so secured will be used among other things compensate the affected retail investors. — PTI

New Delhi/London, January 11
In pursuit of acquiring mobile player Hutch-Essar, Vodafone today offered to align with Ruias' Essar, saying it is the "natural partner" for the biggest acquisition deal in India.

"Essar (a 33 per cent stake-holder in HEL) is a natural partner. It is already there in the joint venture," Vodafone CEO Arun Sarin told reporters at the close of his two-day visit to India.

Keeping his options open to join hands with other firms, he said: "We are talking to several companies... We will see who we can have as partner on a long-term basis."

Vodafone was the first player to announce its intention about acquiring Hutch-Essar and Sarin visited Hong Kong recently to meet officials of Hutchison Telecom (HTIL), which owns 67 per cent stake in HEL, before coming to India. Essar has also expressed its intention to buy HTIL's stake.

On reports that HEL could be valued up to $21 billion, Sarin made it clear that his company would not madly rush into a bidding war. "There is only a certain valuation to which we will go and not beyond," he said.

Stating that Vodafone, which started due diligence for HEL on Monday, would make its bid in the next few weeks for all "available equity".

He said he was also open to partnership with other suitors, including Reliance Communications while listing out Vodafone's track record as "good partner".

Meanwhile, Essar and Reliance Communications are reported to have completed first round of examination of the Hutch-Essar's books today. — PTI

San Francisco, January 11
Cisco Systems Inc. sued Apple Inc. over its use of the iPhone trademark, a day after Apple shook up the cellphone market by unveiling its sleek mobile phone using the name claimed by Cisco.

Apple Chief Executive Steve Jobs debuted the long-rumoured iPhone at the start of Apple's annual Macworld conference in San Francisco on Tuesday, and both companies had said a deal on the 'iPhone' name was near.

''We think this is silly,'' said Apple spokesman Steve Dowling of the tiff over trademarks. ''There are already several companies using the name iPhone for voice over IP (Internet protocol) products.'' Cisco said it wanted to keep Apple from ''infringing upon and deliberately copying and using'' the trademark, which the No. 1 network equipment maker obtained in 2000 after acquiring Infogear. Infogear had previously owned the trademark and had sold devices called iPhones for several years, it said.

Linksys, a division of Cisco, has been selling wireless products with the iPhone name since early last year, with new products added to the line in December. Linksys is part of Cisco's strategy to tap consumer electronics markets; Cisco early last year bought set-top box maker Scientific-Atlanta — Reuters

New Delhi, January 11
In submitting its outlook for the balance of payments (BOP) position for the current fiscal to Prime Minister Manmohan Singh, the Economic Advisory Council (EAC) notes that the current account deficit (CAD)might be reined in at 1.5 per cent of the GDP, net FDI flows will be $9 billion and accretion to reserves will be $22.6 billion.

The report of the EAC highlights that BOP data indicates a CAD for the first half year at $11.7 billion. A mechanical extrapolation of this after adjusting for the seasonal variation results in a full year CAD of around $20 billion or 2.5 per cent of the expected GDP of $900 billion. However, historial experience with data shows mechanical extrapolations would be off target as the provisional figures are substantially adjusted downwards in later revisions.

Applying the correction accordingly, the EAC estimates the CAD for the first half year at $6.5 billion and for the full year at $13.4 billion which translates to "1.5 per cent of the projected GDP." The EAC, however, finds disquieting the substantial downward revisions which have become a common feature and erode the credibility of data.

As regards the BOP, the EAC said there has been significant improvement in the divergence of trade data of DGCI&S and the RBI providing confusing signals to economic agents. Following subsequent revisions, the disparity in the two data series has narrowed by nearly 50 per cent. The disparity in the trade deficit between the two data systems for 2005-06 has narrowed to $5.76 billion from nearly twice that level reported earlier.

The EAC found another heatening feature in the BOP outlook for the first time wherein the net FDI is projected to be larger than portfolio capital flow. Net FDI this year will be around $9 billion compared to $ 4.7 billion last year. The net figure results from inbound FDI of around $12 billion and outbound FDI of $3 billion.

New Delhi, January 11
Hindustan Aeronautics Ltd (HAL) has approached the Foreign Investment Promotion Board (FIPB) for setting up a joint venture with US-based Edgewood Ventures for development and manufacture of high-technology miniature modules for aerospace applications.

In the proposed joint venture, Edgewood Ventures sought to have a 26 per cent stake and HAL the remaining 74 per cent, sources said.

The proposed JV is also seeking to have collaboration with 3D Plus, France, for setting up an R&D centre, besides developing new technologies. For this also, HAL has approached the FIPB.

Initially, the Edgewood Ventures would make a nominal investment of over Rs 1.26 crore for a 26 per cent stake in the JV.

Although, 3D Plus will not have any equity stake in the new company, it would transfer technology for developing software for the aerospace industry, radar data simulators and others for royalty.

HAL has also entered into a $700 million joint venture agreement with the Irkut Corporation of Russia for manufacturing 60-tonne multi-role transport aircraft (MRTA).

HAL, which has so far manufactured over 3200 aircraft, is a major supplier to the defence and civil aviation sector.

HAL is also planning to set up an engine plant in Bangalore and Koratput, Orissa, for manufacturing the high-precision engine components. For this, HAL had recently signed a 10-year $20 million deal with the US based company.

These plants are expected to become operational in the next two years. Bangalore will have a plant for static engine parts and Koraput for rotating engine parts. — PTI

Mumbai, January 11
Mukesh Ambani group flagship Reliance Industries, the country's largest private company, is eyeing global conglomerate GE's Plastics unit, estimated to be valued at about $10 billion.

RIL is considering a takeover of GE Plastics, which is expected to be soon put on the block and has generated interest among various private equity buyout firms, sources close to the development said.

While an RIL spokesperson declined to comment, industry sources said: "It makes business sense as GE Plastics could give the Indian conglomerate a global marketing network." The company has been looking for opportunities to expand its presence in petrochemicals and plastics businesses across the world, as part of which it had unsuccessfully pursued acquisition of UK energy giant BP Plc's petrochemicals business Innovene last year, sources said.

In the past, RIL had acquired German speciality polyester manufacturer Trevira for 80 million euro (Rs 430 crore) a couple of years ago. — PTI 

Mumbai, January 11
HDFC Bank has posted a net profit of Rs 295.64 crore for the quarter ended December 31, 2006 as compared to Rs 224.40 crore for the quarter ended December 31, 2005.

The total income has increased from Rs 1475.94 crore for the quarter ended December 31, 2005, to Rs 2132.61 crore for the quarter ended December 31, 2006.

As of December 31,2006, the bank’s distribution network had expanded to 583 branches and 1,471 ATMs in 263 cities from 535 branches and 1,326 ATMs in 228 cities as of December 31, During the quarter ended December 31, 2006, the bank has raised Rs 479 crore of a subordinated debt qualifying as upper tier II capital (including $100 million in foreign currency). — UNI