New Delhi: Electrical equipment manufacturer Indo Asian Fusegear Ltd (IAFL) has formed a joint venture (JV) with Spanish firm Simon to manufacture wiring devices for home automation.
IAFL, which would own 51% in the JV, would inject roughly Rs30 crore into the venture, which has been valued at Rs55 crore. “We have formed a JV with Simon for manufacturing wiring devices for home automation,” joint managing director P.K. Ranade said.
The company has already invested Rs15-20 crore in a project to manufacture household wires and cables and that would become operational in two months. IAFL is also setting up a unit at Kurukshetra in Haryana to manufacture energy meters. It will invest Rs5 crore in this project, out of a total Rs35 crore investment earmarked for the current fiscal year.
The company plans to supply these meters to state distribution companies and has already secured orders from such companies in Haryana and Madhya Pradesh.
Goldman Sachs to pay Rs700 cr for M&M stake
New Delhi: US investment bank Goldman Sachs Group Inc. will take a minority stake in Indian auto company Mahindra and Mahindra Ltd (M&M) by investing Rs700 crore through its Cybrentity Goldboot Holdings based in Cyprus.
M&M has given the go-ahead to the proposal under which the Goldman Sachs-controlled entity would invest about Rs700 crore by subscribing unsecured and compulsorily convertible debentures. The foreign firm will get a 3.68% stake in M&M by converting its debentures into an equal number of equity shares over 18 months.
The investment by Goldboot has been approved by the Foreign Investment Promotion Board.
Goldboot has proposed to get Rs9,395,000 unsecured fully and compulsorily convertible debentures of face value of Rs745 each, aggregating Rs700 crore from M&M, which could be later converted into shares., according to the information submitted by M&M to the Bombay Stock Exchange last week.
Tata Power, Sterlite to be added to Sensex
Mumbai:Tata Power Co. Ltd, India’s second biggest utility by sales, and Sterlite Industries (India) Ltd will be added to the Bombay Stock Exchange’s benchmark sensitive index from 28 July.
Ambuja Cements Ltd, a unit of the world’s second-largest cement maker Holcim Ltd, and Cipla Ltd, the nation’s third biggest drug maker by sales, will be removed from the gauge, the bourse said in a statement on Friday.
Tata Power dropped 15% this year while Sterlite, the nation’s biggest copper and zinc producer, fell 25%. The sensitive index has lost a quarter of its value in the same period, closing at 15,189.62 on Friday.
Indian Bank to revive mutual fund arm
New Delhi: Indian Bank is planning to revive its mutual fund arm, IN Fund Management, to participate in the more than Rs6 trillion market.
“We are in the process of reviving the asset management business, the licence for which was surrendered to the Securities and Exchange Board of India a few years ago,” Indian Bank chairman and managing director M.S. Sundara Rajan said.
Besides, the Chennai-based bank is also considering to rope in a partner that could bring expertise in the sector, he said. “We are considering all options including roping in of a foreign partner who could bring on board fund management expertise.”
Although the licence was surrendered a few years back, a small amount is still under management.
Indian Bank was one of the early entrants into the asset management space. It started the fund house in the early 1990s. However, it decided to merge its mutual fund arm with the banking operations in 2004, and surrendered registration certificate to Sebi. The fund house, which, had launched 12 close-ended schemes with a corpus of Rs627.10 crore has already redeemed nine schemes.
KSK Energy Ventures raises Rs415 crore
New Delhi: KSK Power Ventures Plc., a company listed on the AIM market of London Stock Exchange, said its Indian subsidiary has raised Rs415.34 crore through a pre-IPO placement.
KSK Power said its subsidiary, KSK Energy Ventures Ltd, has successfully completed a pre-IPO placement of 1.73 crore equity shares at a price of Rs240 per share, a company statement said.
The company has issued shares to six financial institutions including Macquarie Bank, Tree Line Asia Master Fund, Infrastructure Development Finance Co. (IDFC), Axis Bank Ltd, Universities Superannuation Scheme, UK and GE Capital (Mauritius).
The two Indian entities, IDFC and Axis Bank, have invested Rs75 crore and Rs62.97 crore, respectively, in the power projects firm. Besides, Macquarie Bank has invested Rs85.2 crore, Tree Line Asia Master Fund Rs85.99 crore, GE Capital Rs62.97 crore and Universities Superannuation Rs43.2 crore.
PM undergoes cataract surgery at AIIMS
New Delhi: Prime Minister Manmohan Singh on Sunday underwent a surgery in his left eye for cataract removal at the All India Institute of Medical Sciences (AIIMS). “The Prime Minister has since returned home. Doctors have said that he can resume his normal work from Monday,” according to an official statement. Singh, 75, underwent “an intra-ocular lens implantation after a brief surgical procedure” it added.
Portugal court refuses Abu Salem’s plea
Mumbai: The Supreme Court of Portugal has refused a plea from extradited gangster Abu Salem to take him back from India, but said if any country violates the terms of extradition, the court may reject new requests by such nations.
Hearing an application filed by Salem in which he sought to be taken back to Portugal claiming extradition conditions are being violated, the court said that his claims are yet to be ascertained.
It, however, gave a clear warning to India that future requests will not be entertained easily if Salem’s claim is found to be true.
Stating that Portugal can ask for relevant information from the state (India in this case) concerned regarding the plea, the court observed: “Portuguese state may always invoke the disrespect that will have occurred, in future requests for extradition submitted by the same country, rendering it difficult or even rejecting new extraditions.”
Salem was extradited to India in November 2005.
Surplus steel production by fiscal 2012: Paswan
New Delhi: The country’s steel production is likely to surpass the domestic requirement by 2011-12, easing pressure on the alloy’s prices, which has been adding to the spiralling inflation.
“We shall achieve 124 million tonnes (mt) of steel capacity by 2011-12, well exceeding the requirement that would be to the tune of about 110mt at that point of time,” steel minister Ram Vilas Paswan said.
Steel prices shot up by more than 50% since January, adding to the woes of the Union government, which is battling a seven-year high inflation in its last year before the next elections.
The annual demand for steel in India has been rising by about 13%, but production is growing by more than 6%, according to official sources.
Last fiscal year, the country’s crude steel production stood at 53.9mt, of which about 5mt were exported. To bridge the demand-supply mismatch, India had to import nearly 7mt of steel.
As per official figures, the country’s finished steel import went up by more than 300%, from 1.6mt in 2002-03 to nearly 7mt in 2007-08 based on provisional data.
India restarts import of silver; demand still dull
Mumbai: After a total halt in imports for almost three months owing to a lack of demand, India has restarted imports of silver again, a top industry official said.
In view of a lack of demand, India had stopped silver imports for the three-month period ended April. However, the country has imported 24 tonnes of silver in the May-June period, Bombay Bullion Association’s president Suresh Hundia said.
The demand is expected to remain dull this month, but it may pick up in the next two months, Hundia said.
India’s silver demand of 3,000-4,000 tonnes comes from rural India, where agricultural output is determined largely by the June-September monsoon.
The silver price may see some correction up to Rs22,100 per kg from the current level of Rs23,200, he said. The price had touched a high of Rs28,000 per kg two months ago.
Meenas up the ante fearing Gujjar victory
Karwadi/Jaipur: One more Bharatiya Janata Party (BJP) MLA from the Meena community, Kanhaiya Lal Meena, resigned on Sunday, following resignations by BJP MLAs Kantiprasad Meena and Kirori Lal Meena on Saturday. Out of the 122 BJP MLAs in the Rajasthan assembly, 10 are Meenas. These resignations are seen as an attempt to put pressure on the government, which is in talks with Gujjar leaders over their long-standing demand for scheduled tribe (ST) status.
“We feel that the government will give ST status to the Gujjars,” said Kanhaiya Lal Meena, reflecting the insecurity among the Meenas, an ST community, even as details of talks between Gujjar leaders and the Rajasthan government have not been made public yet.
Meanwhile, the Gujjar leadership on Sunday decided to hold further talks with the Rajasthan government after community leader Kirori Singh Bainsla was briefed on the proposals made by the state authorities for ending the 24- day-old agitation. The two-day talks had concluded in the state capital on Saturday. “My presence in the talks will depend on the government’s response to the fresh suggestions given by us. I will not be going to Jaipur for now,” said Bainsla, who is camping in Karwadi, the Gujjar agitation nerve centre. Both Bainsla and chief minister Vasundhara Raje have stayed away from the talks.
Krishnamurthy Ramasubbu and PTI
Govt to strengthen border infrastructure
New Delhi: As part of efforts to check infiltration and ensure balanced development of sensitive border areas, the government will intensify infrastructure development in more than 360 blocks along the international boundary.
Under the Border Area Development Programme of the Union home ministry, steps are being taken for balanced development of all the 362 blocks in the 17 states, which share international border with neighbouring countries.
“In the 11th Plan, the emphasis will be on allocation of more funds from the Centre, dove-tailing of on-going schemes and adopting bottom-up planning approach,” a senior home ministry official said.
He said the objective was to augment the resources and to upgrade infrastructure and socio-economic services as recommended by a task force on comprehensive development of border areas.
The 17 states that share international border are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, West Bengal, Sikkim, Bihar, Uttar Pradesh, Uttarakhand, Jammu and Kashmir, Himachal Pradesh, Punjab, Rajasthan and Gujarat.
The government had earmarked Rs635 crore for centrally-sponsored programme during 2008-09.