Moscow/New Delhi, April 25
In his first major oil deal, billionaire Lakshmi N. Mittal has acquired Russian oil firm Lukoil's 50 per cent stake in a Kazakhstan oil firm for $980 million (nearly Rs 4,000 crore).

Mittal Investments will also take over half of Caspian Investments Resources Ltd's (CIR) outstanding debt, which is equivalent to about $175 million, Moscow-based Lukoil said in a statement.

CIR has equity in five Kazakh oil fields — Alibekmola, Kozhasai, Northern Buzachi, Karakuduk and Arman - in the Aktyubinsk and Mangistau regions. Current production from the fields, which have total proven reserves of some 270 million barrels, is more than 40,000 barrels per day and is set to increase in the coming years.

Kazakhstan is one of the 10 countries Mittal had originally identified for exclusive pursuit of hydrocarbon opportunities in joint venture with Oil and Natural Gas Corp (ONGC).

Some in ONGC see the acquisition as violation of the pact unless Mittal transfers the stake to the joint venture firm, ONGC-Mittal Energy Ltd.

"Mittal had promised us that the stake will be transferred to OMEL once the transaction is complete. Let’s see if he keeps the promise now that has happened," an ONGC executive said in New Delhi.

Mittal and ONGC had in July 2005 agreed to participate on an exclusive basis through OMEL in Angola, Azerbaijan, Congo Brazzaville, Democratic Republic of Congo, Indonesia, Kazakhstan, Romania, Trinidad and Tobago, Turkmenistan and Uzbekistan.

"Caspian Investment Resources Ltd., which was Lukoil Overseas' 100 per cent subsidiary, has become a joint venture of Lukoil Overseas and Mittal Investments, where each holds 50 per cent," Lukoil's press note said.

Lukoil used the unit, Caspian Investments Resources Ltd, to buy Kazakh oil producer Nelson Resources Ltd for $2 billion in 2005.

Caspian Investments will also hold a 25 per cent stake in Zhambay Llp, which is exploring offshore deposits in the Caspian Sea, Lukoil said in December.

Lukoil's president Vagit Alekperov said the decision to sell the 50 per cent stake was linked to Mittal's strong political connections in Kazakhstan. The alliance would increase Lukoil's chances to acquire new assets in the region, Alekperov hoped.

Mittal Investments is the controlling shareholder of Arcelor Mittal, the world's biggest steel company which is majority owned by the family of India-born Lakshmi Mittal. — PTI

New Delhi, April 25
The investigative arm of the country's anti-monopoly watchdog has recommended action against two multinational banks for making false promises to their credit card customers and violating the RBI guidelines.

In its preliminary report submitted to the Monopolies and Restrictive Trade Practices Commission, the Director General of Investigation and Registration (DGIR) said that Citibank and HSBC have violated the rules framed by the Reserve Bank and caused loss to the general public.

DGIR had found that both banks were allegedly delaying delivery of bills and realisation of cheques toward payment just to charge increased interest rate, late fee and fine etc.

Moreover, DGIR also said the two banks were doing credit card business in the country through direct sales agents, who were working either as independent contractors or on commission basis.

These agents were soliciting the general public by giving an impression that they were the direct agents of the bank — without disclosing their independent status. It gives an impression to a common man that whatsoever promises they are making are as good as made by an officer of the bank, DGIR said.

It also said that the agents of these banks even used government/semi-government offices and premises for soliciting business and sales promotion.

As per the terms and condition of the licenses granted by RBI, these banks are supposed to carry out their banking activities only from their own branches and offices, the report said.

The guidelines also require Citibank and HSBC to provide a 24-hours toll-free number for customer care service. However, sources said after investigation DGIR found that numbers were not toll-free.

The authority also found that the most important terms and condition (MITC) document supplied by the banks with the credit card was in English and not in the language known to common people.

The language used by the banks in MITC did not convey in full the interest-free grace period in respect of credit cards, DGIR has said.

Moreover, Citibank did not mention the address of either its registered office or corporate address, making it difficult for a consumer to issue notice of termination for credit card services.

As per the RBI guidelines, MITC should have couple of examples of calculation of interest rates applicable to the cardholder, which was not found.

DGIR observed that HSBC’s MITC was in the smallest font size, which hardly any one could barely read. Moreover, the MITC was not part of the packet in which credit card was delivered.

In addition, the banks were even not maintaining a do not call registry (DNCR), which a person can use if he does not wish to receive unsolicited calls or SMS. — PTI

Mumbai, April 25
Pharmaceutical research company Jubilant Organosys has acquired US-based Hollister-Stier Laboratories LLC for $122.5 million (around Rs 502 crore), which will augment the Indian firm's growth in the custom research and manufacturing service business globally.

The acquisition is on a debt free cash free basis and the purchase price for the existing business (base business) is $122.5 million, Jubilant Organosys said in a communique to the Bombay Stock Exchange.

Jubilant would also reimburse capital expenditure incurred for capacity expansion of $16 million and certain cash capital expenditure for capacity expansion incurred by Hollister until the date of closing of the transaction.

Hollister's capex programme, is expected to be completed by the first quarter of 2008 and would significantly enhance capacities and performance outlook, Jubilant said.

The acquisition is expected to be completed by June and Jubilant plans to use a combination of cash-on-hand and Hollister's debt capacity to fund the acquisition.

The transaction is subject to the customary closing conditions and necessary regulatory approvals.

This is the largest overseas acquisition in contract manufacturing sector by an Indian company, Jubilant added. Bear, Stearns & Co Inc served as financial advisers to the company in this transaction.

Hollister is one of the leading North American immunotherapy and vaccine companies with 85 years presence and strong brand loyalty. It has a well-recognised, allergy extracts and products business. — PTI

New Delhi, April 25
The government has proposed to encourage setting up of stand-alone health insurance companies, which could provide cover even for routine OPD treatment in hospitals and nursing homes without getting admitted.

These are some of the provisions that are being pushed by Finance Ministry through amendments in the Insurance Act, 1938.

The proposed comprehensive insurance bill is currently in limbo as the Left is opposing it as it also entails a provision of raising FDI limit from 26 per cent to 49 per cent.

"The Bill has a provision for setting up stand-alone health insurance companies, for which investment requirement could be reduced from Rs 100 crore to Rs 50 crore," a Finance Ministry official said.

At present, very few companies, including Star Health Insurance, are offering sole health insurance. With the lowering of investment limits, the government hopes that there will be more and more companies, including hospital chains to sell insurance products, including routine treatments.

The ministry has claimed that Left, which is opposing the Bill on political ground, have also supported this move.

On this, CITU National Secretary Tapen Sen, who attended recent meeting of Left parties with the Group of Ministers on insurance said: "We are waiting for details on such matters and want to know why the government intends to lower investment limits for stand-alone health insurance companies."

Finance Ministry has claimed that lower investment limit will encourage competition in the segment and better health insurance products.

At present, the official said, health insurance forms a part of the miscellaneous business underwritten by general insurers. The comprehensive insurance bill aims to define health insurance as a separate category of business to cover contracts that provide sickness benefits or medical, surgical or hospital expenses benefits, he said.

The non-life insurance companies, which claim to be incurring losses in health insurance business as well, are likely to oppose the provision of insurance cover for OPD services. — PTI

Ludhiana, April 25
Car manufacturers apprehend a decline in sales due to rising interest rates this year. The impact, they feel, will be the maximum in smaller car segment. A significant reduction in growth of auto market is also being perceived.

“Nearly six months ago, almost 80 per cent cars were being financed. This figure has now declined to 65 per cent," Arvind Saxena, vice-president, marketing and sales, Hyundai Motors, said while talking to The Tribune here today.

The company, said Saxena, had established tie ups with several finance firms and banks to offer minimal interest rates to customers. The issue of interest rates, however, is unlikely to impact auto market in the long run, he added.

To increase the capacity, Hyundai will set up a plant in Chennai, which is likely to be completed by October this year. After the company attains a capacity level of six lakh units, it plans to export almost 50 per cent of them.

Last year, the company exported 1.15 lakh units which included 10,000 Accent cars and the remaining were Santro.

The company also launched its new Verna CRDi SX in Ludhiana today. The car is priced at Rs 7,97,637 (ex-showroom). The ABS option costs Rs 8,19,683.

New Delhi, April 25
Telecom companies account for over 19 per cent of the complaints received by the National Consumer Helpline (NCH), followed by banks and insurance companies.

The NCH forwards complaints to the telecom service providers for redressal. Of the six telecom companies, MTNL and Idea have been providing regular feedback to the NCH on the complaints sent to them. The NCH has proposed that a telecom ombudsman may be set up on the lines of banking and insurance ombudsmen, an official release said today.

About 10 per cent of the complaints received by the NCH are against banks. Over 3 per cent of the complaints relate to defective services provided by insurance companies.

The NCH has started transmitting complaints to various companies and track them online to facilitate speedy redressal of grievances. This is a voluntary approach and so far Standard Chartered Bank, HDFC Bank, HSBC Bank, Citibank, ING Vysya Bank, ABN Amro Bank, ICICI Bank, PNB, Canara Bank and Banking Ombudsman (New Delhi), LG, Samsung and MTNL have joined this system.

The NCH receives complaints against various service providers and guides consumers in finding solutions to problems related to products and services.

New Delhi, April 25
The name, brand and the names of at least three top officials of the new airline, created by the merger of Air-India and Indian, would be finalised by June this year.

“A new company has been registered and the scheme for amalgamation, now under preparation, will have to be approved by the boards of the two airlines. I expect all legal formalities to be completed by June,” Air-India chairman and managing director V Thulasidass said.

He said the location of the corporate headquarters of the new airline along with the names of its top brass, three top-most officials, the name, the brand and the mascot would also be decided by then.

Both airlines have already started working toward integrating their domestic and international flight schedules, including the regional routes serviced by the Indian, he said. A fully integrated schedule would be worked out for the winter schedule, he added.

Asked when would the merged entity decide on an IPO, Thulasidass said it would only be considered after the merger was completed and the two airlines fully integrated.

Besides using the money raised for acquiring fleet, the IPO is aimed at making the new company a business venture and make it accountable to the investing public, he said.

Earlier Thulasidass said the acquisition of 68 Boeing and 43 Airbus aircraft by Air-India and Indian, respectively, as well as their subsidiaries, would make the merged carrier one of the largest in this region.

In world rankings, AI is now placed at 48 and Indian 67 position. “After the merger, we will improve our position to 31,” he said.

Talks were going on with various global airline alliances and the merged entity would “shortly” take a decision to join one of them, Thulasidass said.

To a question on the proposed US flights, the A-I CMD said though the dates had not yet been firmed up, “we expect to launch nonstop Mumbai-New York flights in June and a flight from Delhi later”. — PTI

Chandigarh, April 25
On the basis of its performance in the agricultural sector, the union government has selected Punjab’s agriculture department for the first prize for 2004-05.

Director-general of the national productivity council N.A. Viswanathan has informed Punjab agriculture director Balwinder Singh Sidhu that the award will be given on May 24 at Vigyan Bhavan in Delhi by union agriculture minister Sharad Pawar.

He said the department had qualified for the first award for 2004-05 in the agriculture extension service sector. “The performance of your organisation in productivity enhancement has deservedly won the highest appreciation of all concerned. It will no doubt help in making Indian agriculture and economy stronger and more competitive”, states the letter written by Viswanathan to Sidhu.

Punjab has done exceedingly well on the cotton and maize fronts in recent years. In fact, the average cotton productivity had gone up to 697 kg of lint per hectare in 2004-05 and to 731 kg of lint per hectare in 2005-06.

Compared to other states, Punjab has performed better as far as the productivity of wheat and rice is concerned.

Asked to comment, Sidhu said the national award in productivity was recognition of the hard work put in by Punjab farmers. “ Punjab’s farmers have shown great interest in integrated pest management, raised bed planting, minimum tillage and laser levelling”, he added. 

Kolkata, April 25
The Centurion Bank of Punjab (CBoP) will float a new company, “CERMA”, to offer value-added management services, including legal services, taxation, wealth, asset and estate management.

CBoP MD & CEO Shailendra Bhandari said, “CBoP will hold 20 to 30 per cent in this bank while a single or several solicitor firms will hold the rest”.

“We are the first among the Indian companies to introduce this service,” he claimed.

Legal experts, solicitor firms and all other wealth management experts would be part of the CERMA team which will guide and help individuals with their expertise. — UNI

Mumbai, April 25
Idea Cellular has reported a 133 per cent jump in net profit in the fourth quarter of 2006-07 to Rs 132.01 crore from Rs 56.60 crore in the same period of 2005-06. Total revenues of the Aditya Birla Group firm increased to Rs 855.54 crore for the three months ended March 31, up 46.3 per cent from Rs 584.86 crore for the corresponding period in 2006.

For the year ended March 31, the company posted a net profit after tax of Rs 277.72 crore as against Rs 125.60 crore earlier. Total revenues for the period also increased to Rs 2,826.58 crore over Rs 2021.06 crore recorded in 2006.