New Delhi: Reliance Power Ltd (RPL), controlled by Anil Ambani, will renegotiate commercial terms to buy gas from Reliance Industries Ltd, which won the backing of the Supreme Court to sell the fuel at state-set prices.
“There are 40-50 commercial issues,” Jayarama Chalasani, chief executive officer of RPL, said in a telephone interview. “Now there is clarity on how each issue needs to be resolved in line with the Supreme Court judgement.”
India’s apex court on 7 May said RIL, controlled by Mukesh Ambani, should negotiate gas sales afresh with brother Anil’s Reliance Natural Resources Ltd, which sought to buy the fuel at a discount to a state-set price in accordance with a family agreement.
Moody’s cautious on Vedanta’s acquisitions
New Delhi: While retaining a stable outlook on Vedanta Resources Plc, Moody’s Investors Services said it remains cautious on the company’s $1.34 billion (Rs6,043 crore) purchase of zinc mines in Africa and Ireland from Anglo American Plc.
“Most of Vedanta’s cash is for pre-funding the group’s other capex requirements. This acquisition adds to an already heavy expansion plan, which includes the acquisition of minority interests in Balco (Bharat Aluminium Co. Ltd) and Hindustan Zinc (Ltd), and an ambitious capital expenditure programme for expansion mainly in aluminium and power, of which $8 billion is yet to be spent,” said Philipp Lotter, a senior vice-president at Moody’s.
Srei repaying public deposits; net up 10-fold
Kolkata: Srei Infrastructure Finance Ltd, a non-banking finance company (NBFC), is repaying public deposits to qualify as an infrastructure finance company, which would enable it to lend up to 25% of its net worth to a single project.
Currently, under Indian law, NBFCs can lend only up to 15% of their net worth to a single project.
Under recently released RBI guidelines, such firms are not allowed to have public deposits. Srei had Rs8-9 crore of public deposits, half of which has already been repaid, said managing director Hemant Kanoria.
Srei on Tuesday announced its net profit in the quarter till 31 March had increased 10-fold from the last year to Rs47 crore. Loan disbursals during the quarter increased 3.5 times to Rs3,500 crore.
Volvo invests Rs90 cr in Indian arm
Bangalore: Swedish firm Volvo Construction Equipment, a subsidiary of AB Volvo, on Tuesday announced a Rs90 crore investment in its India arm for building capacity to produce medium-sized excavators.
“This investment will allow Volvo Construction Equipment to fulfil the needs of customers in the large Indian market much more effectively than we could do in the past,” Eberhard Wedekind, president for Asia, said.
‘Enterprise software market to touch $3.8 bn’
Bangalore: India’s enterprise software market is expected to grow at 12.3% a year to $3.8 billion (Rs17,138 crore) by 2014, technology researcher Gartner Inc. said on Tuesday.
The increasing globalization of the Indian economy is leading to a growing need for modern software with the latest features and improved functionality, it said in a statement.
By 2014, India will have a 1.3% share of the total worldwide software market revenue of $299 billion, Gartner said.
Lupin loses levofloxacin case in US
New Delhi: Drug maker Lupin Ltd lost its patent litigation against Daiichi Sankyo Co. Ltd and Ortho-McNeil Pharmaceutical Inc. for blockbuster antibiotic drug Levaquin, a generic version of levofloxacin.
Lupin was challenging a decision given by a US district court that upheld the patent extension for Levaquin. However, the US court of appeals for the federal circuit affirmed the district court’s judgment on 10 May.
The patent for Levaquin expires in December while the pediatric patent extends till June 2011. The court held that levofloxacin was viewed by the US Food and Drug Administration as a new product requiring full regulatory approval, and that levofloxacin was viewed by the US Patent and Trademark Office as separately patentable.