Need to Know | Tata Motors’ plant to be shut yet again for 6 days

Need to Know | Tata Motors’ plant to be shut yet again for 6 days
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First Published: Fri, Jan 09 2009. 10 56 PM IST
Updated: Fri, Jan 09 2009. 10 56 PM IST
Jamshedpur: Tata Motors Ltd ’s commercial vehicle plant at Jamshedpur would be closed for six days, from 12-17 January, to match production with demand, company sources said.
A company spokesman, P. J. Singh, said the continuous unavailability of finance, coupled with high interest rates, across the industry was forcing customers to postpone purchases.
PTI
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Nissan says car project with?Bajaj?on track
Mumbai: A project between Japan’s Nissan Motor Co. and Bajaj Auto Ltd to build a low-cost car in India is on track, but the company is assessing the market potential, the Japanese firm’s India head said on Friday.
“We are checking the visibility of the market. Our first priority is to maintain cash flow,” Shouhei Kimura told reporters when asked if the project would be delayed.
Nissan, which is separately setting up a car plant in south India jointly with Renault SA, plans to begin initial production in the first half of 2010, Kimura said.
REUTERS
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Bial to charge user fee from passengers
Bangalore:Bangalore International Airport Ltd (Bial), the operator a new airport in Bangalore, will begin charging a user fee of Rs260 from passengers on domestic flights from 16 January .
So far, only passengers flying on international routes were being charged the so-called user development fee or UDF of Rs1,070, a tax for using the airport to fly to other destinations and a source of revenue for the airport.
The fee was approved by the Union civil aviation ministry, after Bial sought to levy Rs675 as UDF for each domestic passenger.
Staff Writer
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Cabinet clears liquidity support of Rs25,000 cr
New Delhi: The government on Friday set in motion the process of providing liquidity support up to Rs25,000 crore to cash-strapped non-banking finance companies (NBFCs) to enable them to pay existing liabilities, as was announced in the second stimulus package to spur economic growth.
A Stressed Asset Stabilisation Fund, set up for acquiring the stressed assets of Industrial Development Bank of India, would function as a special purpose vehicle (SPV) to provide money to such NBFCs.
“These securities would be purchased by (the) RBI and funds would be used by (the) SPV to acquire only investment grade commercial paper and non-covertible debentures of NBFCs,” home minister P. Chidambaram told reporters here.
PTI
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ONGC borrows $1 bn to fund Imperial buy
Hong Kong:Oil and Natural Gas Corp. Ltd, India’s biggest energy exploration company, borrowed Rs5,250 crore to help finance its takeover of the UK-based Imperial Energy Corp. Plc., a person involved in the matter said.
ONGC Videsh Ltd sold one-year commercial paper to about 15 investors paying interest of 8.15%, said the person, who declined to be identified before an announcement.
Citigroup Inc. arranged the sale, which will help fund the New Delhi-based company’s £1.4 billion (Rs10,416 crore) acquisition of explorer Imperial, the person said.
Bloomberg
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Tata Power ‘suppressed facts on Sasan UMPP’
New Delhi: The government on Friday told the Delhi high court that Tata Power Co. Ltd has suppressed facts in challenging the decision to allow diversion of coal from Sasan project by Reliance Power Ltd (RPL).
The court was hearing a petition by Tata Power against a decision of the empowered group of ministers to allow use of coal from the captive mines for Sasan ultra mega power project to other projects. The court has fixed the next date for hearing on 24 February.
“There does not seem any reason to grant an interim stay at this stage,” said the court.
PTI
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Sri Lanka says its troops captured Elephant Pass
Sydney: Sri Lankan soldiers captured Elephant Pass from the Liberation Tigers of Tamil Eelam (LTTE), maintaining pressure on the rebels after seizing their political headquarters last week, the government said.
Troops gained full control of the pass, which links the Jaffna Peninsula with the rest of the island, Lucien Rajakarunanayake, a spokesman for President Mahinda Rajapaksa, said by telephone from the capital, Colombo.
Bloomberg
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Chief administrator of UNDP resigns
New York: The chief administrator of the United Nations Development Programme, Kemal Dervis, has announced his decision to step down from 1 March, citing personal and family reasons.
In a statement, secretary general Ban Ki-moon said he has accepted Dervis’ resignation with “regret” and begun a search for his successor. A former Turkish finance minister, Dervis was named to the post for a four-year term in 2005.
PTI
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Punj Lloyd subsidiary begins legal action
New Delhi: Infrastructure firm Punj Lloyd Ltd on Friday said its subsidiary has commenced legal proceedings against SABIC UK Petrochemicals Ltd for restitution of £28.5 million (Rs212.04 crore) in respect of bonds called by SABIC.
Additional costs and damages will also be sought by Simon Carves Ltd (SCL)—Punj Lloyd’s UK subsidiary—against SABIC associated with cost overruns in the project caused by changes in scope and design requested by the latter and also to recover damages for losses arising as a consequence of the termination of the contract, Punj Lloyd said in a filling to the Bombay Stock Exchange.
PTI
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MCX launches futures trading in electricity
New Delhi: Futures trading in electricity started on Friday in the country with leading commodity exchange MCX launching March and April contracts.
The contract can be traded between 10am and 11.55pm on week days, while on Saturday trading will continue till 2pm, the exchange said in a circular.
India Energy Exchange (IEX), promoted by MCX, deals in spot trading of electricity.
PTI
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Bharat Forge cancels debenture issue
Mumbai:Indian auto parts maker Bharat Forge Ltd said on Friday it has decided to cancel a Rs400 crore issue of non-convertible debentures due to weak market conditions.
The debentures, which had detachable warrants convertible into equity shares, were to be issued on rights basis, it said in a statement.
Shares in the company were trading down 4.3% at Rs87.30.
REUTERS
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Kotak raises $295 mn in Indian realty fund
Mumbai: India’s Kotak Mahindra Bank Ltd’s realty arm has raised $295 million (Rs1,442.55 crore) private equity fund from offshore clients to invest in Indian property sector, a top executive said on Friday.
“We have investors from Korea, Japan, the Middle East, the UK and the US,” S. Sriniwasan, chief executive of Kotak Realty Funds Group, told Reuters over telephone.
He said the unit had $800 million across three funds of which $450 million was available for investment.
REUTERS
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Sebi to review earnings of index companies
Mumbai: India’s stock market regulator plans to review working papers of auditors at companies that are part of the benchmark Sensex and Nifty indexes, after the accounting fraud at Satyam Computer Services Ltd.
The Securities and Exchange Board of India’s (Sebi) committee on disclosures and accounting standards will hold a peer review of the auditor’s working papers related to quarterly and full-year financial statements, Sebi said in an emailed statement on Friday.
The first review of the auditor’s working papers on firms constituting the Bombay Stock Exchange’s 30-stock Sensex and National Stock Exchange’s Nifty Index would begin after the publication of the December quarterly results, it said.
Bloomberg
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Wyeth sues Torrent over patent infringement
Delaware:Wyeth Inc., the US drug maker in talks to buy Dutch researcher Crucell NV, sued India’s Torrent Pharmaceuticals Ltd alleging infringement of three patents for the antidepressant Effexor.
Ahmedabad-based Torrent has asked the US Food and Drug Administration for permission to market copies of Effexor XR capsules before the patents expire, Wyeth said in a complaint filed on Friday in federal court in Wilmington, Delaware.
Bloomberg
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Ranbaxy-GSK start respiratory drug trials
Mumbai: India’s Ranbaxy Laboratories Ltd said on Friday it had started initial-stage clinical trials on an experimental respiratory inflammation drug it is jointly developing with UK’s GlaxoSmithKline Plc..
Ranbaxy said it would receive a milestone payment from Glaxo for initiating the trials but did not give details. The trials will be conducted in India and Europe, it said in a statement to the stock exchange.
REUTERS
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Trinamool wins Nandigram by-poll
Nandigram: Trinamool Congress has won the Nandigram assembly by-election, with its candidate Firoza Bibi defeating Communist Party of India (CPI) nominee Paramananda Bharati in a multi-cornered contest.
The by-election was caused by the resignation of CPI legislator Mohammad Illyas.
PTI
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Jharkhand CM Soren hints at stepping down
New Delhi: A dejected Jharkhand chief minister (CM) Shibu Soren has indicated that he may step down in the wake of his defeat in the by-election.
“I have lost the elections...since I have been defeated in people’s court, I am certainly a defeated man. Moreover, I have lost as chief minister, hence I will have to think on the issue of continuing as CM,” he told reporters here.
PTI
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Great Eastern Shipping cancels two contracts
Mumbai:Great Eastern Shipping Co. Ltd has cancelled two shipbuilding contracts it had placed with a Chinese shipyard because of “the current uncertain business environment”.
Great Eastern cancelled the orders, placed in 2007, to build two supramax bulk carriers, the company said in a statement to the Bombay Stock Exchange on Friday.
Bloomberg
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Trai releases consultation paper on issues of lock in period
New Delhi: The Telecom Regulatory Authority of India or Trai, has released a consultation paper on issues of lock in period for promoter’s equity for unified access service licencees among other related issues after the Department of telecom sought recommendations from the regulator.
The DoT had earlier proposed a three year lock-in period for the promoters to disallow them from selling stake in telecom firms as well as to discourage opportunistic promoters who may sell the stake at a premium even without launching the services.
The move gains importance after two new telecom players - Swan and Unitech - sold stakes to foreign companies at high premiums after they were allotted spectrum without starting any operations.
The last date for comments on the consultation pare has been set for January 20 of this month.
Staff Writer
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First Published: Fri, Jan 09 2009. 10 56 PM IST
More Topics: Tata Motors | Nissan | Bajaj | Bial | Liquidity |