Need to Know | Mallya prefers equity over debt for Kingfisher

Need to Know | Mallya prefers equity over debt for Kingfisher
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First Published: Mon, Jan 26 2009. 12 21 AM IST
Updated: Mon, Jan 26 2009. 12 21 AM IST
New Delhi: Kingfisher Airlines Ltd chairman Vijay Mallya has the necessary approval for raising Rs7,500 crore through debt route, but has said he would rather raise funds through equity in the next fiscal for his airline.
“No...on the contrary, I am talking of raising equity. I have not talked about additional borrowing,” Mallya said when asked if the company was planning to borrow from the market for expansion and other capital requirement.
However, raising equity in the airline could materialize only after the end of the year when the global economic situation is expected to improve.
—PTI
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Kakodkar, Bindra to get Padma awards
New Delhi: The names of winners of the Padma awards this year were announced on Sunday. Atomic Energy Commission chairman Anil Kakodkar, environmentalist Sunderlal Bahugna, Missionaries of Charity’s Sister Nirmala, Indian Space Research Organisation chief (Isro) G. Madhvan Nair are among 10 people awarded with Padma Vibhushan.
The Padma Bhushan has been awarded to 30 people, including Olympic gold medallist Abhinav Bindra, technocrat Sam Pitroda, journalist Shekhar Gupta and Lt Gen. Satish Nambiar. Actors Aishwarya Rai Bachchan and Akshay Kumar, cricketers M.S. Dhoni and Harbhajan Singh, world billiards champion Pankaj Advani and former hockey player Balbir Singh Khullar among are among the 93 who will be given the Padma Shri awards.
—PTI
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671 officials named for police awards
New Delhi: As many as 671 personnel, including inspector Mohan Chandra Sharma of Delhi Police, who sacrificed his life fighting terrorists, have been awarded police medals on the occasion of Republic Day this year.
The President’s Police Medals for Distinguished Service have been awarded to 71 personnel, the President’s Police Medals for Gallantry to 15 and Police Medals for Gallantry to 107 personnel, an official release said on Sunday. Police Medals for Meritorious Service have been awarded to 478 personnel.
—PTI
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RPG plans Rs 18,000 cr capex over two years
Mumbai: Unfazed by the economic slowdown, Harsh Goenka-led RPG group has chalked out a Rs15,000-18,000 crore investment in the next two years for power, retail, tyres, carbon black and transmission tower businesses.
“We have lined up a capex of Rs15,000-18,000 crore over the next two years across our various businesses, but we have no plans to enter new ones,” Goenka said.
—PTI
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Corus may axe 3,500 jobs this week: report
London: Corus Group Plc. plans to axe 3,500 jobs this week, and more large-scale job losses are expected within weeks, with Jaguar and Land Rover considering another 1,500 layoffs, ‘The Sunday Times’ claimed on Sunday.
Corus was bought by India’s Tata group two years ago. According to the report, union leaders have been in last-ditch talks with the government to fend off some of the job cuts.
Claiming that job cuts will go ahead, the newspaper said these were part of a restructuring plan drawn up by outgoing chief executive Philippe Varin.
—PTI
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IMF to cut global growth forecast further: official
Abu Dhabi: The International Monetary Fund (IMF) will cut its 2009 global growth forecast again, this time to between 1% and 1.5%, as economic conditions deteriorate further, Axel Bertuch-Samuels, deputy director of IMF’s monetary and capital markets department said on Sunday.
IMF’s latest forecast, made in November, was for growth of 2.2%.
“Global economic prospects have deteriorated in recent months, consumer and business confidence have dropped to levels that we have not seen in decades and activity too has dropped sharply,” Bertuch-Samuels said on the sidelines of a conference in the United Arab Emirates.
—Reuters
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Petrol prices likely to be cut by Rs5, diesel by Re1
New Delhi: The reduction in fuel prices may see petrol prices being cut by Rs5 a litre and diesel rates by just Re1 per litre, lower than the speculated rates as the government plans to take away part of the gain from falling global oil prices through higher taxes, officials familiar with the matter said.
Petroleum minister Murli Deora has spoken about a reduction in prices since the last week of December, but no date has yet been fixed for an announcement. There is no consensus on reducing LPG prices as oil firms continue to lose Rs32.97 per cylinder.
—PTI
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Foreign firms may get entry on reciprocal basis
New Delhi: Joining the intense debate over opening up of legal services on which the country’s legal fraternity is divided, Chief Justice of India K.G. Balakrishnan has said foreign law firms may be allowed to enter India on a reciprocal basis.
“They (foreign-based law firms) could only be allowed entry here if they do the same for us. It has to be on the basis of reciprocity,” Balakrishnan said.
According to Balakrishnan, unilateral permission to foreign lawyers to practice in India would not be a wise step. “How could you allow them and you are not permitted to work in other country?” Balakrishnan questioned.
—PTI
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Income funds may fare well over next 6 months
Mumbai: ICICI Prudential Asset Management Co. Ltd has said that income funds are likely to outperform over the next six months amid falling inflation and expectations of softer interest rate regime.
Income fund or plan is a debt scheme, offered by mutual funds, which invests in both short and long-term debt securities of the government and the corporate sector.
“The focus on income fund should continue for the next six months on expectations of outperformance during this period,” the company said in a note to investors.
—PTI
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Spencer’s Retail to carry on with expansion plans
New Delhi: Spencer’s Retail Ltd is continuing with its Rs1,500 crore expansion plan, envisaged for the next two years, despite the slowdown. The company, which said it planned to open 400 new stores in the next two years, is eyeing Rs1,250 crore sales turnover by the end of the current financial year.
“We are continuing to expand (our business) with more and more stores, including hypermarkets. We will open as many stores as necessary and wherever they are required,” Spencer’s retail president Vineet Kapila said.
—PTI
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Ministry to seek 10% import duty, yet again
New Delhi: The steel ministry has decided to push for 10% import duty on steel items to protect the domestic industry against cheap shipments from overseas, a senior official said.
The proposal if accepted by the finance ministry, would help boost domestic demand for the commodity produced by companies such as Steel Authority of India Ltd, Rashtriya Ispat Nigam Ltd, Tata Steel Ltd, Essar Steel Ltd, JSW Steel Ltd and Ispat Industries Ltd.
—PTI
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Corporate tax collection may meet 26.1% target
Mumbai: Growth in corporate tax collection was likely to meet the budget estimate level of 26.1% on account of a ‘recovery’ in the fourth and last quarter of the current fiscal, Centre for Monitoring India Economy (CMIE) has said. The budget amount for corporate tax collection for FY09 is Rs2.26 trillion.
“Advance tax payment was down 22% to Rs42,000 crore in December over the year-ago level. However, corporate tax collection is likely to revive in the last quarter of the current fiscal,” CMIE has said in its report.
—PTI
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Noida shootout: 2 killed,4 held for questioning
Noida: In a pre-down encounter, two suspected Pakistani terrorists were shot dead by an Uttar Pradesh anti-terror squad team while they were trying to enter New Delhi, a day before the Republic Day celebrations.
Two AK-47 assault rifles, four magazines, 120 rounds of ammunition, five hand-grenades, nine suspected RDX rods and detonators along with a Pakistani passport were recovered from them. The two died on the way to hospital. A police officer was also injured in the incident.
The UP Police has identified the duo as Farooq and Abu Ismail and said they were both from Pakistan. Further investigation of their identities were on.
Pakistan foreign ministry spokesman Mohammed Sadiq declined to comment.
Four persons were also picked up for questioning, hours after the encounter. “We are questioning four persons picked up, on initial suspicion, from different areas in and around Noida,” a senior police official said.
—PTI and Reuters
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First Published: Mon, Jan 26 2009. 12 21 AM IST