New Delhi: The state-run power company NTPC has now decided to buy gas from the Mukesh Ambani-led RIL at a price that includes a marketing margin. Earlier NTPC had insisted it would not pay a margin to RIL gas obtained from D6 block in KG basin. The government has yet to approve the new deal.
The corporate affairs ministry plans to set up an early warning system to detect corporate fraud. The ministry is working with the National Institute of Smart Government in Hyderabad to use data from company and auditor reports as well as from news stories, public complaints, and whistleblowers to spot fraud in companies.
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India’s real estate market is picking up, but revenues still remains low when compared to last year. Analysts say first quarter sales are likely to be better than in the last quarter because of an improving economy and increasing demand for affordable homes.
But most developers are likely to see falls in profits over last year.
India’s largest real estate developer DLF is expected to see a nearly 70% fall in net profit.
India’s auto industry has sped past its expected potential. A McKinsey study in 2004 that drew up a 10 year vision for the industry projected revenues from the auto component industry between $33 billion and $40 billion. This included $20 billion to $25 billion of exports and $13 billion to $15 billion of domestic sales. However midway in 2009 the sales that included of local firms have grossed Rs14.4 billion whereas exports lagged way behind. This is because Indian economy grew much faster and export market slumped.
Vedanta Group firm Sterlite Industries says it will raise $1.50 billion or about Rs7,294 crore by issuing securities in the US market in the form of American Depository Shares. The proceeds will be used for developing power generation business, capital expenditure and for potential acquisitions.
State-run NHPC is likely to come up with its Initial Public Offer to raise Rs1,670 crore in the first week of August. According to NHPC Chairman and managing director SK Garg the IPO is likely in the first week of August.
Mahindra Holidays and Resorts India Limited got listed on the National Stock Exchange on Thursday, making modest gains. Shares of the company ended 6% high at about Rs317. The company plans to use the money it raises from the IPO to expand several of its resorts and build new ones.
The stock markets on Thursday remained flat after shooting up on Tuesday and Wednesday. The Sensex, the sensitive index of Bombay stock exchange went up by nearly 850 points on these two days. On Thursday it dropped by 3 points.
Bond prices rose and yields dropped on Thursday after RBI announced that the government would borrow Rs1.1 trillion between now and September.
The borrowing plan translates into Rs11,000 crore every week. The market was expecting a higher figure of Rs15,000 crores a week. The announcement will take the borrowing in the first half of fiscal 2010 to Rs2.99 trillion as opposed to Rs2.41 million in the interim budget. The government wants to frontload its borrowings so that there is no crowding out effect in the second half when economy picks up.