Sep 30, 2011

IN FOCUS "Nothing is more hopeless than a scheme of merriment."– Johnson, Samuel.

IMD sees dry weather over most parts of country till Oct 4

The IMD said most parts of the country will experience dry weather for the next few days, till Oct 4, as the southwest monsoon withdrawal is in full swing. It said dry

north-westerly winds are prevailing over northwest and central India in lower levels. The southwest monsoon has been subdued over Arunachal Pradesh, Gangetic West Bengal, Odisha, Jharkhand, east Madhya Pradesh, Vidarbha, Chhattisgarh, Rayalaseema, coastal Karnataka, and Kerala. The withdrawal line currently passes through Bahraich, Lucknow, and Jhansi in Uttar Pradesh; Bhopal and Indore in Madhya Pradesh; and Baroda and Veraval in Gujarat. On Sep 23, the monsoon current began

its withdrawal from the mainland—22 days behind schedule. IMD also forecast fairly widespread rains over Andaman and Nicobar Islands and scattered rains over northeastern states till Oct 2. India got 33% below normal rainfall at 24.1 mm during the week ended Sep 28. During the week to Sep 28, rains were excess--20% or more above normal--in seven of 36 meteorological subdivisions, normal in two, deficit in

three, and scanty in 24.

India, Myanmar to raise trade to $3 bn by 2015

India and Myanmar decided to double the bilateral trade to $3 bn by 2015 by ensuring greater cooperation in sectors such as oil and gas, infrastructure, agricultural products and pharmaceuticals. Both neighbours also vowed to increase two-way trade through the land route by strengthening the necessary infrastructure. India and Myanmar have implemented the India-Asean (Association of Southeast Asian Nations) Free Trade Agreement (FTA) since Sep 1 last year. India had also implemented the Duty Free

Tariff Preference (DFTP) scheme for Myanmar in Jan 2009, under which Myanmar would gain market access for 94% of India‘s products at zero duty. India and Myanmar have also expanded the list of items for border trade from 22 to 40. India said that businesses of both sides merited encouragement so as to use DFTP and Asean FTA channels to diversify trade.

CRISIL Research lowers FY12 car sales growth forecast to 0-3%

CRISIL Research expects domestic car sales to grow at a mere 0-3% in the current financial year that started Mar due to hike in interest rates and rising fuel prices. In a

study released, the organisation said it expects the overall domestic passenger vehicle sales--cars and utility vehicles--to grow merely by 2-4% as against its Jul forecast of 8-10%. It had forecast a 14-16% growth in May but pared the figures due to subsequent fuel price hikes and rise in Repo Rate of the Reserve Bank of India. Car sales had grown by nearly 30% in 2010-11 (Apr-Mar). Rise in Repo Rate has a cascading effect on lending rates of banks and hits car sales as most vehicle purchases

in India are done on credit. Sales growth is expected to reach to the levels comparable to 2008-09, when the domestic car sales grew by only 1.4% due to global recession.

Greece meeting with troika "positive": reports

The Greek government's meeting with officials from the European Union, the International Monetary Fund and the European Central Bank on Sep 29 was held in a "positive and constructive" atmosphere, according to media reports. The meeting is part of a review by the so-called troika to determine whether Greece has met its

reform targets to receive the next installment of bailout funds. The review team will continue to meet with Greek officials in the coming days, the reports said. Separately, Greek Finance Minister Evangelos Venizelos welcomed the German parliament's support for the euro-zone rescue fund and stressed that Greece is committed to meeting its obligations. "Those are not obligations towards the troika, Greece's institutional partners and creditors, but towards the country itself and most of all

towards its young generation," the Finance Ministry said in a statement.

Japan auto sales seen at 34-year low after quake

Auto sales in Japan are expected to fall to a 34-year low in the current fiscal year that ends in Mar due to a sharp drop in production after the Mar 11 earthquake and tsunami. But the Japan Automobile Manufacturers Association also expects sales to pick up over the second half of the year as companies iron out production bottlenecks caused by the disasters and ramp up output to make up for lost time. Marking the first time it has released a sales outlook for the current fiscal year, JAMA said it expects

domestic auto sales to fall 3.3% from a year earlier to 4.450 mn vehicles. That would be the lowest since the fiscal year ended in Mar 1978.

Sep 30, 2011 Weekly Indicators

Indicators Current Last Week

Sensex 16,454 16,162

Nifty 4,943 4,868

Food Inflation 9.13% 8.84%

Exchange Rates

Currency Current Last Week

US$1 Rs.48.9253 Rs.49.6730

€ 1 Rs. 66.6458 Rs. 66.9815

JP¥ 100 Rs. 63.90 Rs. 65.10

£ 1 Rs. 76.5192 Rs. 76.5064

Global Economic and Corporate News Nokia to cut 3,500 jobs worldwide.

Nationwide Mutual to buy Harleysville

for $760 mln.

S&P raises GM credit rating by two

notches.

Nokia and Siemens invest 1 bln euros

in joint venture.

US to probe HTC's complaint against

Apple.

BP may sell some global assets to RIL.

BAE Systems to cut 3,000 jobs at sites

across Britain.

S&P may face SEC charges over CDO

rating.

Boeing to deliver first 787 Dreamliner

to All Nippon after 3 yr delay.

AB Invev seen in $80 bln deal with

SABmiller.

Boeing hands over first 787

Dreamliner to ANA.

Apple opens first Hong Kong store as

retail spending surges.

Ford Motor may build electric cars in

China with partner, CEO Mulally says.

AstraZeneca settles Seroquel patent

litigation.

Rusal may sign $4.75 bn loan from

banks

SAIC agrees to $20 mln settlement on

Navy billing

Isuzu to build new pickup truck plant

in Thailand

PdVSA forms joint venture with

Brazil's Odebrecht

S&P takes Fortune Brands off

downgrade watch

Nishita Shah Parsekar [email protected]

Please refer to important disclosures at the end of the report For Private Circulation Only.

Sushil Financial Services Private Limited Member : BSEL, SEBI Regn.No. INB/F010982338 | NSEIL, SEBI Regn.No.INB/F230607435. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected]

Info-Spectrum Bridging the Information Gap in Corporate Landscape

Weekly Newsletter 2

INDEX

1. India’s Data Watch 03-05

2. Economy 06-14

3. Infrastructure 15-26

4. Sectors 27-59

A. IT & ITeS 27-28

B. Pharma & Healthcare 29-31

C. Telecom 32-34

D. Banking & Financial Services 35-38

E. Steel, Metals & Minerals 39-43

F. Auto & Auto Ancillaries 44-47

G. Miscellaneous 48-59

5. IPO Watch 60-62

6. Mergers & Accquistion 63

7. Ratings 64-72

8. Global Economy & Business 73-79

A. Global Economy 73-76

B. Global Business 77-79


Weekly Newsletter 3

INDIA’S DATA WATCH India adds 5.33 mn GSM mobile users in Aug vs 7.64 mn Jul

India added 5.33 mn GSM subscribers in Aug taking the total GSM user base in the country to 611.76 mn.

However, the addition of GSM subscribers declined month-on-month from 7.64 mn in Jul. Idea cellular

added the maximum number of subscribers during the month at 2.33 mn taking its total GSM subscriber

base to over 98 mn. In Jul, the company had added 1.0 mn users. India's largest telecom company Bharti

Airtel Ltd added 1.15 mn users in Aug while Vodafone Essar Ltd added 1.13 mn. Going ahead, GSM monthly

subscriber additions are likely to fall further due to stricter subscriber verification norms that have led to

rationalisation in the reporting of subscriber additions.

IMD sees dry weather over most parts of country till Oct 4

The India Meteorological Department said most parts of the country will experience dry weather for the next

few days, till Oct 4, as the southwest monsoon withdrawal is in full swing. "Weather would continue to

remain mainly dry over many parts of the country," the weather bureau said. It said dry north-westerly

winds are prevailing over northwest and central India in lower levels. The southwest monsoon has been

subdued over Arunachal Pradesh, Gangetic West Bengal, Odisha, Jharkhand, east Madhya Pradesh,

Vidarbha, Chhattisgarh, Rayalaseema, coastal Karnataka, and Kerala. The withdrawal line currently passes

through Bahraich, Lucknow, and Jhansi in Uttar Pradesh; Bhopal and Indore in Madhya Pradesh; and Baroda

and Veraval in Gujarat. On Sep 23, the monsoon current began its withdrawal from the mainland—22 days

behind schedule. IMD also forecast fairly widespread rains over Andaman and Nicobar Islands and scattered

rains over northeastern states till Oct 2. "Isolated rains would occur over remaining parts of the country

outside Gujarat, northwest and central India where weather would be mainly dry," it said. India got 33%

below normal rainfall at 24.1 mm during the week ended Sep 28, the IMD said. During the week to Sep 28,

rains were excess--20% or more above normal--in seven of 36 meteorological subdivisions, normal in two,

deficit in three, and scanty in 24, the weather department said.

India Aug core sector growth 3.5% vs 4.4% year ago

Growth in India's key infrastructure industries fell to 3.5% in Aug compared with 4.4% a year ago due to a

sharp decrease in the output of coal, crude oil and natural gas. Data released by the commerce and industry

ministry showed that growth in coal production during Aug contracted 15.3%, compared with a 1.0% growth

a year ago, while natural gas production contracted 5.3% against a growth of 11.9% a year ago. In Jul,

India's key infrastructure industries had grown 7.8%. The core sector data for Aug is based on the 2004-05

series, which has eight items. Key infrastructure industries now comprise data from two more sectors--

natural gas and fertilisers. Earlier, the series had a base year of 1993-94 and included six items--electricity,

cement, coal, steel, crude oil and petroleum refining. Crude oil production grew 1.6% on year in Aug, while

output of petroleum products grew 3.9%. On the other hand, steel and cement output grew 7.7% and 7.2%

compared with a growth of 10.8% and 1.6%, respectively a year ago. During Apr-Aug, the country's key

infrastructure industries comprising electricity, cement, coal, steel, crude oil, petroleum refining, natural gas

and fertilisers grew 5.3%, compared with 6.1% a year ago. With the inclusion of fertilisers and natural gas,

the eight key infrastructure industries account for 37.9% of the Index of Industrial Production. The Central

Statistics Office will detail the industrial production data for Aug on Oct 12.

The ministry detailed index of core sector output in Apr-Aug as follows:

Apr-Aug 2011 Apr-Aug 2010 Yr-on-Yr Change (%)

Coal 121.0 124.0 -2.4

Steel 159.5 145.9 9.3

Crude oil 113.7 107.2 6.1

Refinery 134.1 128.1 4.7

Cement 165.6 161.0 2.8

Electricity 148.8 136.1 9.3

Natural gas 154.6 169.6 -8.9

Fertilisers 102.8 101.6 1.2

Overall Index 140.2 133.2 5.3


Weekly Newsletter 4

India’s Sep 17 food articles inflation again gallops past 9%

After a brief reprieve, India's food inflation was back above 9% during the week to Sep 17 due to higher

prices of gram, fish, fruit, and vegetables, data released by commerce ministry showed. Food inflation for

the week ended Sep 17 surged to 9.13%, against 8.84% a week ago. The food index rose a whopping 0.8%

on week to 197.3 and more than offset the positive impact of a high base. A year ago, the index for food

articles had risen 0.55% to 180.8. "The food inflation is perilously close to the double-digit mark...the rise in

food inflation is a grave concern," Finance Minister Pranab Mukherjee told reporters. Inflation for primary

articles, however, fell to 11.43% for week to Sep 17 compared to 12.17% a week ago even as the index

rose 0.4% in the same period. Inflation for minerals declined further to 24.73% from 25.84% a week ago,

with the index declining 0.9% to 303.6 because of lower prices of copper ore, chromite, and bauxite, the

commerce ministry said. The fuel group inflation rate also rose sharply to 14.69% from 13.96% in the

previous week. The fuel index rose 0.7% to 169.4. Fuel group inflation has risen on higher prices of petrol,

light diesel oil, and aviation turbine fuel. State-owned oil marketing companies had raised petrol prices by

Rs.3.14 per ltr with effect from Sep 16. The headline inflation rate based on Wholesale Price Index for Aug

rose to a near one-year high of 9.78%, compared to 9.22% in Jul. The Reserve Bank of India estimates the

headline inflation rate at 7% at the end of the current financial year.

Today's inflation data show indices for primary articles, and fuel and power were as follows in the week

ended Sep 17:

--Primary articles index rose 0.4% to 202.7 from 201.9 in the previous week; food articles index rose 0.8%

to 197.3 from 195.7; non-food articles index was down 0.3% to 184.8 from 185.4 a week ago.

--Fuel and power group index rose 0.7% to 169.4 from 168.2 a week ago.

Below are the provisional levels, week-on-week and year-on-year changes, in per cent, in the indices of key

commodity groups:

Commodity groups Weight Sep 17

2011

wk-on-wk

% change

Yr-on-Yr

% change

I. PRIMARY ARTICLES 20.12 202.7 0.40 11.43

Food articles 14.34 197.3 0.82 9.13

Cereals 3.37 176.1 (-)0.28 3.83

Rice 1.79 172.7 (-)0.35 3.48

Wheat 1.12 167.5 (-)0.36 (-)2.67

Pulses 0.72 205.0 3.48 4.86

Vegetables 1.74 218.7 3.31 11.98

Potatoes 0.20 161.1 1.07 14.91

Onions 0.18 256.2 3.94 17.04

Fruits 2.11 175.0 (-)0.85 12.47

Milk 3.24 196.1 0.77 10.35

Egg, Meat & Fish 2.41 218.3 0.78 13.17

Non-food articles 4.26 184.8 (-)0.32 12.89

Fibres 0.88 235.9 3.33 24.42

Oilseeds 1.78 158.9 (-)2.03 13.50

Minerals 1.52 303.6 (-)0.88 24.73

II. FUEL & POWER 14.91 169.4 0.71 14.69

Liquefied petroleum gas 0.91 147.3 0.00 14.27

Petrol 1.09 181.1 5.05 29.45

High speed diesel 4.67 167.8 0.00 9.32


Weekly Newsletter 5

Sources: Government of India, Reserve Bank of India, Securities and Exchange Board of India, stock

exchanges, and various industry and trade bodies.

INDIA DATA CALENDAR

Oct 01 Manufacturing PMI for September, by HSBC

Oct 01 Trade data for August, by commerce and industry ministry

Oct 05 Services PMI and composite PMI for September, by HSBC

Oct 05-10 Major port traffic in September, by Indian Ports Association

Oct 05-10 Cement production, despatches in September, by CMA

Oct 05-10 Foreign tourist arrivals in Sep, by tourism ministry

Oct 03-07 Power generation for September, by Central Electricity Authority

Oct 07-12 Automobile sales data for September, by SIAM

Oct 07 Bank deposits and credit as on Sep 23, by RBI

Oct 10-15 GSM mobile subscribers data for Sep, by COAI

Oct 12 Index of Industrial Production for August, by CSO

Oct 14 WPI inflation for Sep, by commerce and industry ministry

Oct 18 CPI for rural, urban areas and combined for September, by CSO

Oct 20 CPI for rural and farm labourers for September, by Labour Ministry

Oct 20-25 Crude, refinery output for Sep, from petroleum ministry

Oct 30 Core sector growth for September, by commerce ministry

Nov 30 GDP growth estimate for Jul-Sep, and Apr-Sep, by CSO


Weekly Newsletter 6

ECONOMY ECONOMY:

After meeting Manmohan Singh in US, minister Pranab mum on 2G note.

Finance minister Pranab calls home minister Chidambaram valued colleague.

Narendra Modi accuses govt of running parallel govt in Gujarat.

ATS may lose seven-year turf war to crime branch.

BJP President Nitin Gadkari mulls Parliament debut.

AICC general secretary Rahul Gandhi to visit J&K for two days.

Nepal tourist plane crash kills 19 including 10 Indians.

'Rail roko' protest paralyses Telangana for second day.

Supreme Court to examine guidelines for issuing security to VIPs.

'Investigators on the verge of cracking 13/7 blasts case'.

No war within govt; PC won't resign, law minister Khurshid says.

11 die in Orissa flood; 3003 villages marooned.

Defence minister Antony asks Indian Air Force to fully support Orissa.

Ex-Lokayukta chief Hegde: Time constraint in nailing Bellary culprits.

Singer Jagjit Singh still critical; on ventilator support.

Geologists say another quake may affect Teesta course.

CBI registers case in virus attack on T-3 security.

CVC for dedicated wing to probe important cases.

Rupee's drop in 'so short a time' is a concern, RBI deputy Gokarn says.

India to monitor rupee before acting, as RBI warns of growth risks.

Expert Mistry says India may import 250,000 tn palmolein in Oct.

MD sees Ruchi Soya FY12 soymeal export 1.1 mn tn.

Food secy defends 24.6 mn tn sugar estimate yr to Sep 2012.

Expert Fry sees crude palm oil at 2,525 ringgit/tn by Mar.

Adani Wilmar sees India yr to Sep 2012 soy output 11 mn tn.

SC to resume 2G hearing; petitioner Swamy vows more revelations.

Home minister Chidambaram says always favoured auction route.

Telangana stir turns violent; Hyderabad bandh called Sep 30.

Sonia steps in, holds talks with Pranab, Chidambaram.

Sonia demands report on illegal mining in Goa.

Gujarat governor seeks details of expenditure on Modi's fast.

Baba Ramdev's supporter dies, family blames police.

Rahul Gandhi strikes chord with Kashmiri youth.

Mayawati suspends MLA Haji Yaqoob from BSP.

CIDCO seeks revised land acquisition rates for new Mumbai airport.

Govt reviews options to put divestment on track.

Growth in emerging mkts can counter slowdown, GE head Jeff Immelt says.

Indian rice ready to set sail; 95,000 tn at Krishnapatnam Port.

India Jul pulses import from Myanmar at 82,805 tn vs 83,149 tn Jun.

FIEO sees "unimaginable" export growth slowdown from Oct.

CRISIL sees India Inc Jul-Sep revenue growth slow, margin pressured.

Govt targets 2.78 mn tn additional pulses output in rabi season.

USDA sees India yr to Sep 2012 oilmeal export dn 11% at 4.9 mn tn.


Weekly Newsletter 7

Home Minister P. Chidambaram met Sonia Gandhi and offered to resign.

The finance ministry has ordered an overhaul of the government's disinvestment strategy for the

year.

Opposition restless to force early polls, says PM.

Don't expect high margin victory, says Mamata.

Cash scam: Advani's former aide Kulkarni arrested.

Pranab to speak on 2G issue, if needed, after meeting PM.

No selective approach to fight terror, India tells US.

We are autonomous, Centre can't dictate us, says CBI.

Finance Ministry to monitor PSB promotions.

Plan panel wants Nilekani's UIDAI to be monitored.

RBI Subbarao says fisc consolidation must for policy to aid growth.

RBI Subbarao says no textbook solutions for real life policy.

India Aug infrastructure sector growth 3.5% vs 4.4% yr ago.

Co-op sugar body urges govt to create 2 mn tn buffer stock 2011-12.

The Supreme Court has adjourned hearing on a plea on Home Minister P. Chidambaram's role in the

2G spectrum allocation scam.

May relax Life Insurance of India's equity exposure cap in order to boost the market.

Has released the draft of a national public-private partnership policy seeking to ensure transparency.

SC seeks ex-finance secy's files on 2G spectrum spending.

Pranab writes to PC, defends home minister Chidambaram.

Mamata Banerjee wins Bhowanipore assembly by poll.

Singur land act upheld by Calcutta high court.

CBI says enough proof to book Marans in Aircel deal issue.

Court refuses bail to Amar Singh in cash-for-votes issue.

J&K assembly ruckus kills Parliament-attacker Afzal's mercy plea.

Rich must pay higher tax, home minister Chidambaram says.

RBI Gokarn says high oil prices hurting monetary policy flexibility.

Econ affairs secy says not pruning FY12 divest aim; have other options.

RBI ED Mohanty says maintaining current pace of growth a challenge.

Madhya Pradesh official refutes talk of stock limit on chana.

Tea Board official sees India FY12 export earnings up 30%.

RBI Deputy Governor Subir Gokarn has said high energy prices are obstructing the flexibility of the

central bank's monetary policy.

Finance Minister Pranab Mukherjee has written to Prime Minister Manmohan Singh and Congress

chief Sonia Gandhi on the 2G spectrum scam.

Mukherjee, Chidambaram try to end 2G note issue; opposition unmoved.

2G note just a background paper, says Pranab.

CBI probing Anil Ambani in 2G spectrum allocation case.

2G scam: CBI opposes monitoring of probe by experts.

All 269 accused found guilty in Vatchathi rape case.

BJP seeks all-party meet on Telangana.

Bombay Muncipal Corp defers property tax proposal, eye on upcoming polls.

Activist Aruna Roy says plan panel needs reality check.

Rangarajan says hope govt doesn't exceed borrowing target for FY12.

Rangarajan says cannot afford to sacrifice growth at current stage.

Economic adviser Basu confident of India's growth prospects.


Weekly Newsletter 8

India Sep 17 primary articles inflation 11.43% vs 12.17% wk ago.

Govt to borrow 528 bln rupees extra during Oct-Mar via gilts.

Fin secy says can't divest PSU stake without considering mkt scenario.

AGRICULTURE:

National Bank for Agricultural and Rural Development has disbursed loans worth Rs.5.2 trn in the

year to Mar so far.

EXPORTS:

Federation of Indian Export Organisations President Ramu Deora expects exports to rise merely

13.82% to $280 bn during 2011-12 (Apr-Mar).

TAXATION:

High-value share market transactions in the secondary market, insurance premiums, bank accounts

and debit card payments may come under income tax department's watch.

The government may impose 5% customs duty on the import of power equipment for mega projects.

India to become world’s third-largest economy

India is expected to overtake Japan to become the world‘s third-largest economy in 2011 in terms of gross

domestic product (GDP), measured according to the domestic purchasing power of the rupee, also called

purchasing power parity (PPP). The PPP is a method which estimates the size of an economy by leveling

differences in prices that occur between countries when converting to a single currency. A dollar should be

able to procure the same quantity of goods worldwide and the exchange rates between different currencies

are adjusted accordingly under this method. In 2010, the Japanese economy was worth US$ 4.31 trn, with

India trailing close at US$ 4.06 trn. Due to the devastating tsunami and earthquakes in Mar 2011, Japan,

however, is expected to contract in 2011. The International Monetary Fund‘s (IMF) estimates state that the

Japanese economy will contract by 0.7% this year while the Indian economy will grow at 8.2%. According to

IMF forecasts, India and Japan were at par in 2011, but the disaster in Japan has brought the event forward.

As suggested by an earlier report by consultant Price Waterhouse Coopers (PwC), the Indian economy would

move ahead of the Japanese economy in 2012. The University of Pennsylvania‘s PPP tables state that India

has already moved ahead of Japan in 2010. It is estimated that the Indian economy will reach a size of

almost US$ 5 trn by the end of 2011. ―India should overtake Japan in 2011 to become the third-largest

economy in the world at purchasing power parity,‖ said Sunil Sinha, head of research and senior economist

at Crisil. Countries from all over the world now consider India to be a fast growing economy with great

opportunities. The benefit of having a bigger economy gives the government more bargaining power and

clout abroad. ―A bigger economy would also mean more clout in international forums,‖ said Madan Sabnavis,

Chief Economist at ratings firm Care. "India has the advantage of size. The scope of growth and excess

capacity present in terms of resources would drive growth in the future," said Sabnavis. A change in the

ranking points to broad trends in the growth trajectories of nations. ―It‘s a long process of development, but

this shows that the markets are expanding and there is robust demand within the economy,‖ said

Siddhartha Sanyal, Chief Economist, Barclays Capital.

India, Myanmar to raise trade to $3 bn by 2015

India and Myanmar decided to double the bilateral trade to $3 bn by 2015 by ensuring greater cooperation

in sectors such as oil and gas, infrastructure, agricultural products and pharmaceuticals. Both neighbours

also vowed to increase two-way trade through the land route by strengthening the necessary infrastructure.

India and Myanmar have implemented the India-Asean (Association of Southeast Asian Nations) Free Trade

Agreement (FTA) since Sep 1 last year. India had also implemented the Duty Free Tariff Preference (DFTP)

scheme for Myanmar in January 2009, under which Myanmar would gain market access for 94% of India‘s

products at zero duty. India and Myanmar have also expanded the list of items for border trade from 22 to

40. India said that businesses of both sides merited encouragement so as to use DFTP and Asean FTA

channels to diversify trade. ―Outsourcing of manufacturing and sourcing of raw materials can also boost

trade,‖ pointed out Commerce and Industry Minister Anand Sharma. The minister said construction of the

Kaladan Multimodal Transit Transport Project comprising waterway and roadway components would

transform the trade between the country‘s Northeast and the rest of the world. The project costing $120 mn

is expected to be completed by 2013. The aim is to create a direct trade corridor between Indian ports on

the eastern side and Sittwe Port in Myanmar and then through riverine transport and by road to Mizoram,

thereby providing an alternate route for transport of goods to Northeast India. In the last fiscal, pulses and

wooden products accounted for 97.5% of Myanmar‘s export to India, while it imported mainly buffalo meat


Weekly Newsletter 9

and pharmaceuticals. Both sides have also issued notifications for upgrading the border trade to normal

trade at Moreh in India and Tamu in Myanmar. In the meeting both the ministers decided to open another

border trade point connecting Zowkhatar in Mizoram to Rhi in Myanmar. There had been talks to look at

some more potential trading points from Pangsau Pass (in Arunachal Pradesh) and Avangkhung (in

Nagaland).

Govt clears FDI proposals worth Rs.243 cr

The government cleared 12 FDI proposals worth Rs.242.88 crore, including one from Indian Rotorcraft to

carry out the assembly of both military and civil helicopters. The Foreign Investment Promotion Board

(FIPB), however, deferred decisions on 15 FDI proposals and rejected seven applications. Indian Rotorcraft

had sought permission to induct foreign equity to carry out the business of final assembly of both military

and civil versions of helicopters. The proposal, if implemented, would attract Rs.17.42 crore in FDI. Also

approved was an Allcargo Global Logistics' proposal for FDI worth Rs.141.36 crore. The company had sought

ex-post facto approval for the issuance and allotment of optionally convertible warrants to raise funds for

setting up multi-modal transport operations and inland container depot/container freight stations as part of

its logistics business. Gujarat-based Checkmate Services had sought the government's permission for

induction of foreign equity in its private security services business. The proposal is worth Rs.66 crore.

Besides, the board deferred a decision on Bangladesh-based Rahimafrooz Batteries' proposal to set up a

wholly-owned subsidiary to undertake the import and wholesale distribution of batteries and provide services

in India. A decision on Vodafone Essar's request to transfer shares from a resident to a non-resident to carry

out activities relating to its telecommunications business was deferred. The proposals that were rejected

include those of Jadoli Systems (Bangalore) and AOS Holding India SAS France.

Forex reserves rise by $266 mn to $316.76 bn

India's foreign exchange reserves rose by $266 mn to $316.763 bn in the week ended Sep 16, according to

Reserve Bank of India's ‗Weekly Statistical Supplement'. This rise in reserves, which is mainly on account of

change in currency valuation, follows a huge decline in reserves in the previous week. In the previous week

ended Sep 9, India's foreign exchange reserves fell by $4.29 bn to $316.497 bn. The reserves rose due to

an increase of $202 mn in the country's foreign currency assets to $280.903 bn. Foreign currency assets

expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as

the euro, sterling and yen held in reserves. In the week under consideration, the euro strengthened against

the dollar. Gold was unchanged at $28.319 bn. SDRs declined by $2 mn to $4.549 bn. India's reserve

position in the IMF rose by $62 mn to $2.992 bn. After a sharp fall this week, when it almost touched levels

of 50 against the dollar, the rupee is likely to trade between 49.30 and 49.70/90, next week. There would

be pressure on the rupee due to pressure of half-yearly closing and settlement of import bills. Starting Oct

the rupee could be back to levels of 47, said the treasury head of a public sector bank.

Govt reconstitutes RBI's central board; 7 new directors appointed

The government has reconstituted the Central Board of Directors of the Reserve Bank of India and appointed

seven new directors for a period of four years, a RBI release said. The government notified the

reconstitution of the RBI board on Sep 30. Four existing members, K.M. Birla, Azim Premji, H.P. Ranina and

Lakshmi Chand will continue as board members. The seven new directors are Dipankar Gupta, sociologist,

Najeeb Jung, vice chancellor, Jamia Milia Islamia, G.M. Rao, chairman, GMR Group, Ela Bhatt, founder, Self-

Employed Women's Association Indira Rajaraman, professor emeritus, Emeritus, National Institute of Public

Finance & Policy, Anil Kakodkar, former chairman of Atomic Energy Commission Chairman and Kiran Karnik,

former chairman of NASSCOM. The new directors' induction came into effect between Sep 20-23. M.M.

Sharma, Sanjay Labroo, Suresh Kumar Neotia, A. Vaidyanathan, U.R. Rao and Y.H. Malegam have now

retired as directors of the central board of the RBI.

RBI notifies norms for external commercial borrowings in yuan

The Reserve Bank of India notified Indian infrastructure companies could raise up to $1 bn annually via

yuan-denominated external commercial borrowings. The RBI has permitted fundraising in the Chinese

currency through the approval route. Nods to companies will be valid for three months from the date of

issue of the approval letter. The RBI has also provided details on how the companies can go about

registering and executing their loan applications for yuan loans. Category-1 authorised dealers have been

permitted to open Nostro accounts in yuan, and monitor the end use of funds. Indian banks have not been

allowed to provide any guarantee for such loans. On Sep 15, the government had added the yuan to the list

of currencies in which Indian companies could borrow funds from overseas. The industry had been seeking

liberalisation of external commercial borrowings as many Indian companies are looking to raise money


Weekly Newsletter 10

overseas because of high interest rates in the domestic market. Since March 2010, the RBI has raised its

repo rate 11 times by a total of 350 basis points to curb inflationary pressures. The repo rate is currently at

8.25%. In most overseas markets, policy rates are lower than 1%, which translates into cheaper loans for

Indian firms.

Co-op sugar body urges govt to create 2 mn tn buffer stock 2011-12

India would have to create a buffer stock of 2 mn tn sugar and more than double exports of the sweetener

in 2011-12 to safeguard the industry amid higher output estimated for the new season, National Federation

of Co-operative Sugar Factories President Jayantilal B. Patel said. The federation has projected India's sugar

output in 2011-12 (Oct-Sep) at 26.5 mn tn, up 9% from 24.3 mn tn produced in the current year. "To save

sugar factories from the crisis of surplus, a buffer stock of 2 mn tn of sugar will have to be created and 4 mn

tn sugar exported under open general licence," he said at the federation's Annual General Meeting. The

government has allowed exports of 2.6 mn tn sugar in 2010-11, including 1.5 mn tn under the open general

licence route. Patel said the higher exports and buffer stock would stabilise the domestic market and ensure

that sugar factories get reasonable realisation. The federation has projected carryover stocks in 2011-12 at

5.6 mn tn, up 12%.

Sugarfed Punjab sells sugar for export at 3,020 rupee/tn premium

The sharp fall in global sugar prices over the last two weeks has more than halved the hefty margins mills

were getting on sale of export quotas for the sweetener. The Punjab State Federation of Cooperative Sugar

Mills Ltd or Sugarfed Punjab, sold 2,567.7 tn sugar for export at a premium of Rs.3,020 a tn over the ex-mill

price in a tender to Shree Renuka Sugars Ltd, an official from the federation said. This is a sharp fall in value

of export quota premiums, which were over Rs.8,500 a tn last month. An industry official said the premiums

in the Punjab tender, however, are slightly better than those quoted in the Andhra Pradesh tender last week.

Nabard loan for Madurai water supply schemes

National Bank for Agriculture and Rural Development (Nabard) has sanctioned a loan of Rs.264.74 crore for

implementing rural drinking water supply schemes in Madurai district under its Rural Infrastructure

Development Fund (RIDF). The projects involve an investment of Rs.311.46 crore. While Nabard has

sanctioned Rs.264.74 crore to the State Government, the State Government has contributed the balance

Rs.46.72 crore. The projects would be implemented by the Tamil Nadu Water Supply and Drainage Board at

Alanganallur, Palamedu, Singampunari, Melur, Kottampatti, Madurai east, Madurai west, Tirumangalam,

Tiruparankundram and Vadipatty taluks. The projects when complete will ease the drinking water supply

situation and benefit over 11.87 lakh people.

Ruchi Soya earmarks Rs.600 cr on capex

Ruchi Soya Industries Ltd has earmarked Rs.600 crore for capacity expansion of its palm oil refinery by 1.1

mn tonnes by next fiscal. The company currently has palm oil refining capacity of 2.1 mn tonnes per annum

at its refineries in Mumbai, Kandla and Haldia. The capex will be funded through internal accruals and debts

and will be completed by Mar 2012. The company, which sells edible oils under Nutrela Soyumm, Ruchi Gold

and Sunrich brands, is also in the process of raising palm plantation acreage by 10,000 hectare in the

country by this fiscal-end. Currently, the company has 20,000 hectare under palm plantation.

Nabard sanctions Rs.400 cr

The National Bank for Agriculture and Rural Development has sanctioned Rs.399.22 crore under its Rural

Infrastructure Development Fund (RIDF) for the Indira Jala Prabha project to be implemented across 22

districts in Andhra Pradesh. The loan is sanctioned to provide irrigation facilities across 490,029 acres of

land in 16,472 villages of the 22 districts. It includes drilling of 26,262 bore-wells, purchase of 25,278

pump-sets, electric motors, diesel engines and other irrigation work, benefiting 480,000 farmers in the

state.

Bajaj Hindusthan's rights share issue to open Sep 29, close Oct 13

Bajaj Hindusthan Ltd's rights issue of 456.71 mn shares will open Sep 29 and close Oct 13, the company

said in a notice in The Financial Express. The company, which will issue two shares for every one held at

Rs.36 each on rights basis, will use the issue proceeds to prepay and repay debt worth Rs.17.2 bn. The

Mumbai-based sugar and ethanol maker's debt stood at around Rs.40 bn as on Mar 31.

INTERVIEW: FIEO sees "unimaginable" export growth slowdown from Oct

The country's exports have grown a robust 54% during Apr-Aug, the first five months of the current

financial year. Go beneath the number and the picture appears grim. Move beyond to the prospects for the



coming months, and the export story will seem further awry, with the global meltdown seen eating into

demand for the country's merchandise.

INTERVIEW: Frequent base yr update to trim data volatility, says CSO

Chief Statistician of India T.C.A. Anant has been striving to make data more representative and less volatile

in a country where statistics collated by government agencies are often taken with a pinch of salt.

Duty drawback rate on sugar gets doubled to 2% as DEPB sop goes

The duty drawback rate on raw and white sugar has been doubled to 2% from last financial year's 1% after

the government discontinued the Duty Entitlement Passbook Scheme benefits with effect from Oct 1.

FOCUS: Rupee fall may upset RBI's inflation mgmt but not stance

The Indian rupee's sharp fall over the past two weeks will perhaps upset the Reserve Bank of India's careful

considerations on inflation outlook because the depreciating currency has wiped out most of the positives

that could be derived from falling global commodity prices.

Trade secy says FX rates may remain volatile on global uncertainty

The Indian rupee is likely to remain volatile amid uncertain global conditions, Commerce Secretary Rahul

Khullar said. "Exchange rates are going to remain volatile as long as economic condition in these large

economies remain uncertain," he said at a media briefing here.

SC split on govt plea against special team probe into black money

A two-member Supreme Court bench gave a split verdict on the maintainability of government's application

seeking recall of the apex court order to set up a Special Investigation Team to probe black money cases

and referred the issue to the Chief Justice of India for the constitution of a larger bench.

Southwest monsoon begins withdrawal from parts of northwest India

The southwest monsoon began withdrawing from the Indian mainland 22 days behind normal schedule. "The

southwest monsoon has withdrawn from parts of Punjab, Haryana, Rajasthan, Gujarat and north Arabian

Sea," the weather bureau said.

Food minister says 2011-12 sugar output unlikely to top 25 mn tn

India's sugar output in the new season starting Oct 1 is unlikely to cross 25 mn tn, Food Minister K.V.

Thomas said. "One view that I have received is that our 2011-12 production will be to the tune of 24.2-24.5

mn tn...," Thomas told.

Gokarn says mustn't view RBI FX policy with just inflation in mind

The Reserve Bank of India's exchange rate policy must not be viewed within the narrow boundaries of

inflation management and the central bank is not likely to change this policy, Deputy Governor Subir Gokarn

said.

Uttar Pradesh govt seeks bids to set up 202 bus stations

The Uttar Pradesh government invited bids to set up 202 bus stations on public private partnership mode.

The project will be on a Design Build Finance Operate Transfer basis, an advertisement by the state

government in The Economic Times said.

BRICS nations seek structural steps from US, Europe; promise reform

Advanced economies must adopt structural reforms, and responsible macroeconomic and financial policies

as such steps are critical to lift growth and create jobs, finance ministers and central bankers of the BRICS

nations said in a joint release.

RBI Subbarao says US, Eurozone econ woes affecting emerging mkts

Reserve Bank of India Governor D. Subbarao said renewed fears of a recession in the US, and deepening

Eurozone sovereign debt crisis have adversely affected emerging market economies through various

channels.

Telangana stir turns violent; Hyderabad bandh called Friday

The ongoing agitation seeking a separate statehood for Telangana region of Andhra Pradesh turned violent

with the agitators attacking several government and private offices and blocking roads across the region.



Former BJP strategist Kulkarni sent to jail in cash-for-vote scam

Former Bharatiya Janata Party strategist Sudheendra Kulkarni was sent to judicial custody in the cash-for-

votes case, which was allegedly organised to save the United Progressive Alliance government in 2008 when

the Left Front withdrew its support to protest India's nuclear deal with the US.

India, Greece working on strategic partnership

In a meeting here last week on the sidelines of the annual meeting of the IMF and the World Bank, Finance

Minister Pranab Mukherjee and his Greece counterpart Evangelos Venizelos discussed a wide range of

bilateral and global issues including the current economic crisis in Europe.

India-Japan trade to rise substantially after CEPA

During his meeting with Japanese counterpart Jun Azumi, Finance Minister Pranab Mukherjee is believed to

have told him CEPA will further strengthen Indo-Japan economic ties to the benefit of both countries

immensely.

Commerce secy says govt mulling relief package for exporters

The government is planning a relief package for exporters as the country's economic growth is seen

moderating in the wake of the ongoing turmoil in developed nations, India's largest export destinations,

Commerce Secretary Rahul Khullar said.

Pranab says tough to sustain high growth over longer period of time

The fundamentals of the Indian economy are intact, but sustaining high growth rate over an extended

period of time was getting "more difficult", Finance Minister Pranab Mukherjee said.

INTERVIEW: NSL Sugars joint MD says may tap pvt equity for funds

Hyderabad-based NSL Sugars Ltd is planning to raise funds through private equity in a year to fund its next

stage of expansion, Joint Managing Director K.V. Hari said.

Pranab says govt priority to make growth inclusive, sustainable

Finance Minister Pranab Mukherjee has said the priority of the government is to make economic growth in

the country more inclusive and sustainable.

Market abuzz with talk RBI enquired about rupee levels post drop

The foreign exchange market is abuzz with talk the Reserve Bank of India enquired about the dollar-rupee

levels, after the rupee opened with a negative gap of 45 paise against the greenback, dealers said.

Farm minister sees yr starting Oct sugar output at 25.5-26.0 mn tn

The agriculture ministry seems to be more bullish than the food ministry on the country's 2011-12 (Oct-Sep)

sugar output with Farm Minister Sharad Pawar saying production will be 25.5-26.0 mn tn.

FOCUS: Sugar exporters see looming defaults as global prices tumble

The sharp fall in global sugar prices over the last three days has raised questions about the fate of some of

the export deals, signed at lucrative premiums as late as last month.

Pranab says commodity, food price rise grave threat to global econ

Finance Minister Pranab Mukherjee said the recent commodity and food price rise was a "grave threat" to

economic growth and food security.

Sugar industry reiterates India's output seen 26 mn tn in 2011-12

The sugar industry reiterated the country is likely to produce 26 mn tn sugar in the new season starting next

month, an estimate substantially higher than the food ministry's projection of 24.6 mn tn.

RBI Gokarn downplays rupee fall, says volatility part of game now

The Reserve Bank of India appears unperturbed by the 7% fall in the rupee against the dollar this month,

with Deputy Governor Subir Gokarn saying volatility is "part of the game now".

Pranab says BRICS nations must explore role amid global challenges

Finance Minister Pranab Mukherjee said Brazil, Russia, India, China and South Africa--that have been key

drivers of global growth--should explore their role amid challenges and look at synergies to tap growth.

Shree Renuka Sugars raises Rs.4 bn

Shree Renuka Sugars Ltd raised Rs.4 bn through issue of three-year bonds that had opened for subscription

Wednesday and closed, merchant bankers said.



Godrej sees India FY12 farm growth over 4% on good rains

India's farm sector growth may exceed 4% in 2011-12 (Apr-Mar) due to good rainfall across the country,

Godrej Group Chairman Adi Godrej said.

MD sees Ruchi Soya FY12 soymeal export 1.1 mn tn

Ruchi Soya Industries Ltd is likely to export 1.1 mn tn soymeal in 2011-12 (Apr-Mar) as against 700,000 tn

exported in the previous year, Managing Director Dinesh Shahra said.

India disappointed over slow progress in Doha talks

Leaders of the world's most influential countries, including the US and the European Union, Brazil and India

had agreed for concluding WTO talks for a multi-lateral agreement in 2011.

CRISIL sees India Inc Jul-Sep revenue growth slow, margin pressured

Steep interest rates, inflation, and high input costs may lead to a moderation in Indian companies' Jul-Sep

revenue growth, and lower operating profit margins, CRISIL Research said in a note.

RBI Subbarao says fiscal consol must for policy to support growth

Reserve Bank of India Governor D. Subbarao said it is important for fiscal consolidation to take firm roots for

monetary policy to take more cognizance of growth concerns.

Food ministry asks PM econ panel head to look into sugar decontrol

Food ministry has asked Prime Minister's Economic Advisory Council Chairman C. Rangarajan to look into

issues relating to deregulation of the sugar industry, Food Minister K.V. Thomas said.

RBI Subbarao says fisc consolidation must for policy to aid growth

Reserve Bank of India Governor D. Subbarao said it is important for fiscal consolidation to take firm roots for

monetary policy to take more cognizance of growth concerns.

WRAP: RBI Subbarao says no textbook solutions for real life policy

Central bankers, including US Federal Reserve chairman Ben Bernanke, European Central Bank head Jean-

Claude Trichet have been often criticized even for the best of their policies.

RBI Subbarao says every policy action involves complex judgement

Reserve Bank of India Governor D. Subbarao has defended the central bank's calibrated approach to rate

tightening adopted last year saying, "every monetary policy action involves complex judgement."

Govt readies contingency for more pulses output

Govt has prepared a contingency plan for more production of pulses in the rabi season 2011-12 through

area expansion and productivity enhancement.

'130 lakh tonne of paddy arrival expected in Punjab'

Procurement agency Food Corporation of India (FCI) expects 130 lakh tonne of paddy arrival in Punjab in

the crop procurement season starting from Oct 1.

'Farm loan to exceed target, touch Rs.5.20 lakh cr'

Farm loan disbursal is expected to exceed the target of Rs.4.75 lakh crore and touch Rs.5.20 lakh crore in

2011-12 on the back of good monsoon, National Bank for Agriculture and Rural Development said.

India needs to focus on agri research: UGC Chairman

India needs to lay more emphasis on farm research programmes to help increase agricultural productivity,

University Grants Commission (UGC) Chairman Ved Prakash said.

US Cong may revive trade benefits to India, others

The US Congress is likely to approve trade preferences for the least developed and developing countries in

the next few weeks, a move which will help Indian exporters as well.

US to invest in Indian infra, defence and edu sectors

US companies are looking at investing in sectors like energy, education, communications and infrastructure

in India, thererby further deepening economic ties between the two countries.

Follow Punjab & Rajasthan on farm land reforms: CII

Amid growing concerns over shrinking agriculture land holdings, industry chamber CII called for replication

of farm land reforms initiated by Rajasthan and Punjab by other states.



RBI Gokarn says high oil prices hurting monetary policy flexibility

Reserve Bank of India Deputy Governor Subir Gokarn said high energy prices are obstructing the flexibility

of the monetary policy formulated by the central bank.

India, Pakistan aim to double bilateral trade in 3 years

India and Pakistan will in November seek to lay down timelines to dismantle non-tariff trade barriers and

normalise all commerce relationships as the two countries aim to double their bilateral trade in three years

from $2.7 bln now.

Telangana stir intensifies, 32 Telugu Desam legislators quit

Raising the ante for a separate statehood, 32 Telugu Desam Party legislators from the Telangana region

today resigned from their posts in the Andhra Pradesh state assembly.

Econ affairs secy says not pruning divest aim; have other options

Economic Affairs Secretary R. Gopalan said the government can look at options other than launching public

issues of state-owned companies to meet its divestment aim of 400 bln rupees for the current financial year

ending March.

Calcutta HC upholds Bengal act to return Singur land to farmers

The Calcutta High Court today upheld the validity of the Singur Land Rehabilitation and Development Act

2011, which will allow the West Bengal government to return the Singur land to farmers.

RBI Gokarn says high oil prices hurting monetary policy flexibility

Reserve Bank of India Deputy Governor Subir Gokarn said high energy prices are obstructing the flexibility

of the monetary policy formulated by the central bank.

RBI ED Mohanty says maintaining current pace of growth a challenge

Maintaining the current pace of economic growth is a challenge for policymakers and requires reforms as

well as a conducive global environment, Reserve Bank of India Executive Director Deepak Mohanty said.

Fin secy says need to monitor mkt situation before divestments

Finance and Revenue Secretary R.S. Gujral said the market situation needs to be monitored before the

government divests its stake in state-owned companies.

Rangarajan says cannot afford to sacrifice growth at current stage

The government cannot afford to sacrifice growth at the current stage, Prime Minister's Economic Advisory

Council Chairman C. Rangarajan said.

FOCUS: Shock & awe as govt bombs mkt with 528 bln rupee extra borrow

"It is time for bond dealers to leave the country," was the terse reaction of a jilted bond dealer after the

government shocked the market today with an extra borrowing of 528 bln rupees for Oct-Mar.

Pranab takes Chidambaram home, discards 2G note as not his view

Finance Minister Pranab Mukherjee again did what has come to be his second job--that of a troubleshooter.

Only this time, he himself is in the throes of the trouble--his ministry's note on the 2G spectrum mess that

has sent this government's former minister, bureaucrat and corporate executives behind bars and shaken

the very foundations of it.

Trade minister says to announce export relief package before Diwali

Commerce and Industry Minister Anand Sharma said the government may announce a relief package for

exporters before Diwali, which falls on Oct 26, after having a high-level consultation with exporters' body.

Adviser Basu confident on India growth prospects, safe haven appeal

Economic Adviser to the Finance Ministry Kaushik Basu expressed confidence in the economy's growth

prospects as well as the country's reputation as a safe haven for investments.

IMD sees dry weather over most parts of country till Tue

The India Meteorological Department said most parts of the country will experience dry weather for the next

few days, till Oct 4, as the southwest monsoon withdrawal is in full swing.

Rangarajan says hope govt doesn't exceed borrowing target for FY12

The Prime Minister's Economic Advisory Council Chairman C. Rangarajan said he hoped the government

would not exceed its market borrowing target for 2011-12 (Apr-Mar).



INFRASTRUCTURE

INFRASTRUCTURE:

Air India launches austerity drive; to shrink overseas staff size.

Deal with Vedanta to cost Cairn Energy $1.5 bn as tax.

Leela, AAI spar over land lease terms.

DGH pulls up Mukesh Ambani's RIL over CBM block.

Alok Industries' arm to sell Mumbai office building.

Goldman Sachs buys green energy co stake for Rs.1 trn.

Mazagon-Pipavav JV put on hold.

DLF sells land for Rs.2.8 bn, plans sale of Rs.4 bn plot.

Defence ministry puts Mazagon Dock-Pipavav partnership on hold.

Bajaj Electricals sees margin pressure in FY12, sales growth 20%.

MD says Mercator Lines to invest more in non-shipping ops in near term.

Parsvnath shareholders OK raising up to Rs.20 bn via QIP.

PBA Infra gets Rs.304 mn orders; shrs off intraday high of 4%.

Minister Patel says market not appropriate for BHEL FPO.

GMR to sell 30% stake in GMR Energy Singapore to PETRONAS.

Bajaj Electricals head sees sales growth at 20% in FY12.

Reserve Bank of India has liberalised external commercial borrowings policy for the infrastructure

sector.

The National Highways Authority of India will develop 60 service plazas on major highway stretches

across the country and set up such complexes every 50-50 km along the roads.

CAG probing Sasan power project coal diversion issue.

India Aug infrastructure sector growth 3.5% vs 4.4% yr ago.

IOC seeks predictable business landscape in fuel pricing, subsidy.

Tanti Holdings stake in Suzlon Energy rises to 17.05% vs 7.33%.

GMR Infrastructure gets highway project from NHAI on PPP basis.

GSK eyes $1 bn-$2 bn buys in India, but reluctant to pay premium.

Official says Ansal Prop to mull debt recast via overseas borrowing.

Areva T&D gets Rs.400-mn sub-station order from Reliance Power.

RInfra CEO says Mumbai Metro line 1 to be commissioned in 2012.

Infrastructure sector grew at 3.5% in Aug compared with 4.4% a year ago. The sector grew 5.3% in

Apr-Aug against 6.1% a year ago.

Reserve Bank of India has allowed infrastructure companies to raise up to $1 bn annually via yuan-

denominated external commercial borrowings.

Govt may levy import duty on power equipment for mega projects.

Railways may get Airports Authority of India-like authority.

Rail ministry plans setting up Stations Authority of India.

CEO Dudley says restoring gas output at D6 block BP's top priority.

RIL Chairman Ambani says expect KG-D6 gas output to rise from 2014.

NTPC arm achieves fincl closure for Bihar project stage II.

Kingfisher Air chairman says will exit low-cost Kingfisher Red ops.

Punj Lloyd gets 11.95 bln rupee power equipment order from CESC arm.

The credit scheme of Indian Infrastructure Finance Co may be delayed further as the finance ministry

asks the company to launch a pilot for few months before final launch.

Minister Dinesh Trivedi has said that he would consider setting up an authority on the lines of the

Airport Authority of India to monitor modernisation of railway stations.



Sources say L&T MF looking at Bhattacharya, Nanavati, Naqvi as CEO.

Atomic energy secy hopes Parliament to OK civil nuclear bill soon.

HCC Concessions completes 14.5% stake sale to The Xander Group.

REC aims 280 bln rupee disbursal FY12, so far disbursed 100 bln.

BG India to supply 2.5 mtpa LNG to Gujarat State Petroleum.

POWER:

Around 8,000 MW of new gas-based power capacity may get stranded due to lack of fuel as the

domestic gas output continues to fall with no signs of recovery in sight.

The new Indonesian coal law has added to the power companies' concerns by increasing costs and

upsetting their viability calculations.

Maharashtra State Electricity Distribution Co is proposing a nearly 40% tariff hike for domestic users

who consume up to 100 units a month.

Hitachi and SFO Technologies Pvt Ltd to set up a joint venture in advanced control systems for

thermal power plants.

ENERGY:

Essar Group is in talks with four of China's largest oil and gas producers for resource quest.

SBI Capital Markets to complete valuation of Adani Energy's city gas distribution assets in Lucknow in

mid-October, paving way for the merger of assets in Green Gas, a joint venture of GAIL INDIA.

HOUSING:

Centre may unlock Mumbai's 5,000-acre salt pan road for housing purposes.

ELECTRICITY:

Rural Electrification Corp will raise $200 mn through Swiss franc-denominated bonds.

Oil India joins rush for energy assets, lines up Rs.4k crore for buys

Oil India, the country's second largest oil explorer, plans to spend up to Rs.4,000 crore in buying oil and gas

assets abroad, joining bigger state-run rival ONGC in the quest to boost India's energy security. "We have

Rs 12,000 crore in cash reserves, of which we plan to invest Rs.4,000 crore on overseas acquisitions," said

Chairman NM Borah. OIL, in which the government owns a 78% stake, is looking at oil and gas blocks in

Africa, Australia and Latin America. Borah said it had already conducted due diligence and was in advanced

stages of negotiation with the target companies, but he refused to name them. "We (could) either own

100% of an acreage or pick up stakes of foreign companies that own blocks in these countries." Oil India,

whose exploration and production activities are spread mostly in the North East, sells its output at

government-determined prices, sharing the subsidy burden with the downstream oil companies. Its shares

took a beating earlier this week after the finance ministry said the fuel subsidy outgo for the upstream oil

company could almost double this fiscal year. Upstream firms bear a third of the revenue loss that oil

marketing companies suffer on account of selling diesel, domestic LPG and kerosene at governmentment-

controlled rates. ET had reported earlier that the ministry wanted the upstream share to be fixed at

Rs.56,707 crore, or one-third of the revenue loss estimated before the June price hike and the cut in

customs and excise duty. Of this, ONGC's share would be Rs.47,640 crore and the rest would be split

between Oil India and GAIL India. Asked if there was on any clarity on the subsidy-sharing formula, Borah

said, "No, we don't want to put undue focus on that as it is really not in our control." Oil India plans to begin

production from its oil block in Venezuela from the second half of 2012. "We could start production from

Carabobo 1 Norte and Carabobo 1 Centro blocks, located in the Orinoco Heavy Oil Belt... The total reserves

there are of 3 bn barrels, but the initial production target is of 400,000 barrels, of which our share is 15,000

barrels," said BN Talukdar, director, exploration. These Venezuelan oil blocks are being jointly developed by

an international consortium comprising Petronas, which holds 11% stake, Spain-based Repsol 11%, ONGC

Videsh 11 %, Indian Oil Corporation 3.5% and Oil India with 3.5% shareholding. The company also said to

relinquish its twin acreage in Libya. "Even after all efforts we had to concede that there is no potential for

commercial hydrocarbon discovery in the area," said Talukdar. The company had invested Rs 56.8 crore

there. On E&P in India, the company said, "We would like to bid for shale gas assets and are eagerly

awaiting the policy announcement from the government but plan to be very cautious with our investments in

new exploration frontiers as we want to de-risk our exploration portfolio to some extent by investing in

discovered targets," Talukdar said. On their presence in the Krishna-Godavri basin, Talukdar said, "We have



done our initial surveys and should drill our first well in the basin by the middle of next fiscal." Discussing

the firms' downstream ambitions, Borah said, "We are very keen to diversify into city-gas distribution and

will be partnering with Hindustan Petroleum Corporation especially as we have already signed an MoU with

them to jointly pursue business in areas of mutual interest like city gas distribution, pipeline projects and

green-field refineries."

Goldman Sachs invests Rs.1,000 cr in ReNew Wind

Global investment banker Goldman Sachs has invested about Rs.1,000 crore in ReNew Wind Power.

Globally, Goldman Sachs has over $1.5 bn investment in alternative/clean energy-related companies,

including Horizon Wind Energy and Nordex AG. ReNew Wind Power has several wind projects under

development, including a 25 MW project in Gujarat and a 60 MW farm in Maharashtra. The company says it

has business framework agreements with Kenersys, Regen Powertech and Suzlon Energy to establish and

operate wind farms in India and will expand its portfolio by 200-300 MW annually. Mr Sumant Sinha,

Chairman and CEO, ReNew Wind Power, said: ―Goldman Sachs' global experience and network in the

alternative/clean technology industry will provide us with additional momentum. ―Our vision is to be the

leading renewable energy generation company in India.‖ Mr Ankur Sahu, co-head of private equity in Asia at

Goldman Sachs said, ―ReNew Wind Power stands out as an example of Indian entrepreneurial excellence and

we look forward to teaming with the management to help the company become a leader in India's

renewable energy sector.‖ Wind power companies in India are raising money to fund expansion as the

nation plans to add 2,400 MW of wind energy capacity in the financial year ending March 31, 2012 and had

14,723 MW as of Jul. ReNew Wind will invest the money in renewable energy and acquire projects on an

opportunistic basis, Mr Sinha said in a telephone interview. He said Goldman's investment will be made over

time. India, the biggest market for new wind park installations after China and the US, is dominated by

Ahmedabad-based Suzlon, which installed 41 per cent of new capacity in the last financial year. Goldman

will have representatives on ReNew Winds board and the company may consider trading publicly in the

future, Mr Sinha said. There are no listing plans in the near future but several years down the road, that

could be the exit possibility for an investor.

Maharashtra power utility seeks 40% tariff hike for low-end users

Maharashtra State Electricity Distribution Co Ltd, also called Mahavitaran, is proposing a nearly 40% hike in

the tariff of power supplied to domestic users who consume up to 100 units a month, Maharashtra Electricity

Regulatory Commission said in a notice. Mahavitaran, which supplies power across Maharashtra except

Mumbai, has proposed raising the tariff to Rs.4 a unit from Rs.2.86 now. The Maharashtra electricity

regulator has called for public feedback on the proposal between Oct 7 and Oct 25 across the state.

Mahavitaran also wants to restore the system of fixed charge to ensure recovery of fixed cost from all

consumers, MERC said. The utility also wants to increase the rebate to industrial consumers to Rs.2.50 a

unit from 85 paise now for power consumed between 2200 IST and 0600 IST the next day. Mahavitaran also

proposes the creation of a new sub-category within low-tension and high-tension commercial consumers

without increasing the existing tariff for government-owned or 100% government-aided educational

institutions and government hospitals.

Omaxe shelves Rs.800-bn invest plan in low cost housing

Delhi-based realty company Omaxe Ltd has shelved its plan to invest Rs.800 bn in developing one mn

affordable houses across India over five years, according to a report by Press Trust of India. "The project

could not take off after the slowdown impacted all the developers in 2008," Omaxe Chairman and Managing

Director Rohtas Goel was quoted as saying by the agency. "We tried to develop some houses at some

locations... The project is shelved now," he said. In May 2008, the company had announced an elaborate

plan to build 1 mn affordable houses in tier II and III cities at a price ranging between Rs.300,000 and

Rs.1.5 mn. The company had tied-up with farmers in Gujarat and Maharashtra to acquire land for

developing the affordable houses, he added. "However, it did not finally materialise," Goel said. He,

however, declined to divulge if the company had put in any money in initiating the project. Omaxe had

formed a subsidiary, National Affordable Housing and Infrastructure Ltd, for the low-cost housing project

and had also initiated an international design competition, besides publishing advertisements. Later, the

company divested 51% stake in National Affordable Housing to a promoter group firm.

Commercial Engg & Body Builders expects large Railways orders soon

Commercial Engineers & Body Builders Co Ltd is expecting large orders from the Ministry of Railways

shortly, the company said in its annual report for the year to Mar 2011, released. Commercial Engineers also

said it has bid for supplying around 15,000 wagons to the Indian Railways, and is hopeful of getting the



order. The company is setting up a 1,200-wagon-a-year manufacturing plant at Deori in Madhya Pradesh, in

order to cash in on the Railways' requirement of 290,000 wagons by 2020, projected in the Indian Railways'

Vision 2020 document. Also, with a view to expand its presence in the power sector, the company has set a

target to manufacture 2,000 tn per month over the next 18 months. The company builds power structurals

for boilers and electrical standard products for Larsen & Toubro Ltd. The company aims to increase its

revenues fourfold by 2014. Its total income for 2010-11 (Apr-Mar) stood at Rs.2.36 bn.

GMR Infra to sell 30% stake in GMR Energy Singapore to Petronas

GMR Infrastructure Ltd has agreed to sell 30% stake in subsidiary GMR Energy (Singapore) Pte Ltd to

Petronas International Corp Ltd, a subsidiary of Malaysia's Petronas, the company said in a release. Financial

details of the deal were not disclosed. had reported earlier this month that GMR Infrastructure is looking to

sell 30% in the Singapore subsidiary. "Petronas is one of the largest groups in south east Asia with

substantial resources in oil and gas. This relationship would pave the way for other possible opportunities

between the groups in India as well as internationally," GMR said in the release. The Singapore arm of GMR

is developing an 800 MW combined cycle gas turbine power plant on Jurong Island in Singapore. A

consortium of Siemens AG and Samsung C&T Corp will develop the power generating facility at this plant. In

July, GMR announced achieving financial closure for the project by tying up loans from six banks. The

company said the plant is expected to start commercial production in 2013.

RBI eases external commercial borrowings policy for infra sector

With a view to ease the external commercial borrowing norms for the infrastructure sector, the Reserve

Bank of India has allowed foreign investors to provide credit enhancements without seeking prior approval

from the central bank, a release said. Credit enhancement by all eligible non-resident entities will henceforth

be permitted under the automatic route with immediate effect. A direct foreign equity holder holding

minimum 25% of the paid-up capital and indirect foreign equity holder holding at least 51% of the paid-up

capital will now be permitted to provide credit enhancement for the domestic debt raised by Indian

infrastructure companies through issue of capital market instruments. The credit enhancement can also be

availed by domestic non-banking finance companies falling under the category of infrastructure finance

companies.

Brigade Group unveils 'Brigade Exotica'

Brigade Group, has unveiled its 35 storeys apartment project 'Brigade Exotica' in Bangalore. Each apartment

in the project is modelled on contemporary design with abundant light and ventilation. This unique

apartment design lends to a striking facade for the 35 floor towers. The project is pre-certified Gold by IGBC

Green homes. 'Brigade Exotica, spread over of 10 acres offers 6 apartment sizes of 3 & 4 bedroom

apartments and will have 80 per cent of the area set aside for green open spaces with a lifestyle clubhouse,

department store and coffee shop. The Tropland Studio of Thailand will undertake the landscaping of the

area and will include theme gardens, lawns, water bodies and a heavily wooded area.

DB Realty in talks to jointly develop 2 Mumbai properties

DB Realty Ltd is in talks with major real estate companies to jointly develop two of its prime properties in

Mumbai that are valued around Rs.30 bn. The first property is located in the Bandra Kurla Complex, which

has a development potential of 1 mn sq ft. The second one at Kala Nagar in Bandra has a potential of

500,000 sq ft. Quoting sources, the report said DB's bankers are in talks with Mumbai-based Rustomjee,

which is looking at the deal seriously. The Bandra Kurla Complex project operating entity, MK Malls &

Developers Pvt Ltd, has UK-based Trinity Capital and IL&FS Investment Managers as main investors. The

Kala Nagar land was bought by DB's promoters from the Wadias of Bombay Dyeing. "The idea of the joint

development is that Rustomjee could bring execution skills, construction finance and other expertise, DB will

share the development profits while continuing to hold the land," the report quoted a person as saying.

GAIL eyes stakes in LNG plants of Chevron, Algerian co

State-owned GAIL (India) Ltd is in talks with at least two international energy companies, including US-

based Chevron Corp, to acquire stakes in their liquefied natural gas plants in Australia and Algeria. The

company is aggressively pursuing Chevron for equity interest in its Gorgon plants in Australia and Algeria's

state-run firm Sonatrach for a stake in some of its plants in the country, the report quoted two people

familiar with the development. "We are keen to pick up an equity stake in Chevron's Gorgon LNG plants in

Australia and the LNG plant of an Algerian company," the paper said quoting a senior GAIL executive as

saying. The move by the company to acquire stakes in LNG plants is prompted by falling output and rising

demand of fuel in the domestic market.



GMR Infra to tie up debt for Gujarat highway project by Apr

GMR Infrastructure Ltd expects to achieve financial closure for the Kishangarh-Udaipur-Ahmedabad highway

project in six months, A. Subba Rao, GMR group chief financial officer, told. "We are trying for a debt equity

of 75:25. Roughly, I can say it (financial closure) may happen by April of the next calendar year," Rao said.

The cost of the project, received from the National Highways Authority of India, is approximately Rs.72 bn.

On completion of the project, the company expects Rs.6.6 bn a year as toll revenue, Rao said. The highway

project is on a design-build-finance-operate-transfer basis and will be implemented under a public-private

partnership model. The concession period for the project is 26 years, the company said.

PBA Infra gets Rs.304-mn orders

PBA Infrastructure Ltd has bagged three orders worth a total sum of Rs.304 mn for building roads in Pune,

Nagpur, and in Jammu & Kashmir, it said in a notice to the National Stock Exchange. The company has

received orders worth Rs.205.33 mn from Pimpri Chinchwad Municipal Corp for widening, developing, and

treating roads with hot mix and bituminous. It has won another Rs.63.02-mn order for re-carpeting of taxi

ways and existing apron at Dr. Babasaheb Ambedkar International Airport at Nagpur from MIHAN India Ltd.

The last order worth Rs.35.66-mn is from Jammu & Kashmir Rural Roads Development Agency.

BEML gets Rs.2.30-bn mining equipment orders Aug-Sep

BEML Ltd received orders totalling Rs.2.30 bn during Aug and Sep for supplying 100 tn and 60 tn dump

trucks to two subsidiaries of Coal India Ltd. Placed by Central Coalfields Ltd and Northern Coalfields Ltd,

these two orders have taken BEML's order book to Rs.47.12 bn, without mentioning the value of each of the

orders or the date by when the company would execute them. BEML has set a target of Rs.42 bn turnover

for the current financial year and Rs.50 bn for 2013-14 (Apr-Mar), as per the release. Its revenue in 2010-

11 was Rs.36.23 bn.

PSA-ABG consortium gets Rs.67-bn cargo terminal project

The consortium of Singapore's PSA International Pte Ltd and India's ABG Ports Pvt Ltd, has won a Rs.67-bn

project for the fourth container terminal at Mumbai's Jawaharlal Nehru Port. At Rs.67-bn, the project will

mark the highest direct foreign investment into India's port sector, the paper said. The consortium's bid of

sharing 50.8% of the revenue with the government was the highest, leading the JN Port Trust to approve it,

the daily reported. ABG Ports will hold 26% stake in the project, the report said.

GMR Infrastructure gets highway project from NHAI on PPP basis

GMR Infrastructure Ltd has received a contract from the National Highways Authority of India for six laning

the 555 km Kishangarh-Udaipur- Ahmedabad highway. The highway project will on a design-build-finance-

operate-transfer basis and will be implemented under a public-private partnership model. The total cost of

the highway project is around Rs.72 bn, A. Subba Rao, GMR group chief financial officer told television news

channel CNBC-TV18. The concession period for the project is 26 years, the company said.

Mauritius-based FII Xander Investment ups stake in HCC to over 5%

Mauritius-based foreign institutional investor Xander Investment Management Ltd has raised its stake in

Hindustan Construction Co Ltd to 5.03% from 4.99%, the latter said in a notice to the bourses. Xander

Investment acquired 200,000 shares of HCC through secondary market purchases on Sep 20, 2011. It now

holds 30.48 mn shares of the company, the notice said.

Airports authority, Leelaventure spar over land lease terms

Serious differences have cropped up between Hotel Leelaventure and Airports Authority of India over the

terms for renewal of the lease agreement of the land where the company's Hotel Leela near the Mumbai

international airport is situated. AAI has demanded that the hotel company should fork out 7.5% of gross

turnover of the hotel as royalty.

Tanti Holdings stake in Suzlon Energy rises to 17.05% vs 7.33%

Tanti Holdings Pvt Ltd's stake in Suzlon Energy Ltd has increased to 17.05% from 7.33% following the

merger of Sanman Holdings Pvt Ltd with Tanti Holdings. Sanman Holdings held 173 mn shares or 9.7%

stake in Suzlon Energy, which, by virtue of merger, has been transferred to Tanti Holdings. Tanti Holdings

now holds 303 mn shares of Suzlon.

Areva T&D gets Rs.400-mn sub-station order from Reliance Power

Areva T&D India Ltd said it has received a Rs.400-mn order from Reliance Power Ltd for constructing a 220-

kV substation for the latter's 350 MW solar power plant in Rajasthan. Areva T&D's transmission unit, now a



part of Alstom Grid, will execute the order on a turnkey basis. The order includes design and construction of

transformers, monitoring systems and civil work of the plant, Areva T&D India said in a release.

Govt mulling reversal of excess capex allowed to RIL on D6 block

The oil ministry is considering reversal of excess capital expenditure allowed to Reliance Industries Ltd for its

D6 block in Krishna-Godavari basin, due to lower than estimated gas output, CNBC-TV18 reported quoting

sources.

Tata Power eyes coalmine in Australia, Africa, Asia for Mundra unit

Tata Power Co Ltd is scouting for additional coalmines overseas, possibly to hedge against the uncertainties

on import of the commodity from Indonesia that was to fuel its upcoming 4,000 MW ultra mega power

project in Mundra, Gujarat.

Power min may factor in costly coal for new ultra mega plant bids

The government may consider including a clause in the bid document for new ultra-mega power projects

that will allow developers to factor in any unforeseen rise in fuel prices in the tariff, said G.B. Pradhan,

special secretary at the power ministry,.

Power min may factor in coal price rise in new UMPP bid paper

The government may consider including a clause in the bid document for new ultra-mega power projects

that will allow developers to factor in any unforeseen rise in fuel prices in the tariff, said G.B. Pradhan,

special secretary at the power ministry,.

Essar Energy allocated coal from Amelia block for Mahan power unit

Essar Energy Plc, the London Stock Exchange-listed parent company of Essar Oil Ltd, has been allocated a

share of coal from the Amelia coal block by the Madhya Pradesh government to fuel its 1,200 MW Mahan-I

power project.

L&T gets Rs.7-bn order from Oman co to set up gas treating unit

Larsen & Toubro Ltd said its hydrocarbon division has received a Rs.7-bn order from Petroleum Development

Oman LLC for setting up a gas treatment plant that will treat 3 mscmd of gas and supply it to the

government gas plant at Yibal in Oman.

JSW Energy 1,200 MW Ratnagiri plant to go full stream in a week

JSW Energy Ltd will commission the final 300 MW unit of its 1,200 MW Ratnagiri power project in

Maharashtra by the end of this month, but has not yet managed to tie up firm coal supplies, L.K. Gupta,

managing director and chief executive officer, told.

GVK says moving slum dwellers from Mumbai airport land a challenge

Shifting slum dwellers occupying 276 acres of airport land in Mumbai is the "mother of all challenges," said

Isaac George, chief financial officer of GVK Power & Infrastructure Ltd that operates the Chhatrapati Shivaji

International Airport.

FOCUS:Oil cos in limbo as rupee's fall offsets weak crude oil price

While the recent sharp fall in crude oil prices buoyed hope that state-owned oil marketing companies'

profitability would improve, the equally sharp decline in the rupee against the US dollar wiped out all such

optimism.

Two GAIL pipelines delayed on land issues, more may get affected

GAIL (India) Ltd is facing a tough time completing its gas pipeline expansion projects across the country

over rising public resentment against land acquisition, which has already delayed two of its projects,

Ashutosh Karnatak, executive director-projects, said.

HPCL plans to raise $750 mn overseas loans in FY12 for capex

Hindustan Petroleum Corp Ltd plans to raise $750 mn through external commercial borrowings in the

current financial year ending March, to fund its capital expenditure, three senior officials of the state-owned

oil refiner and retailer told.

Indraprastha Gas mulling nominal hike in CNG, PNG prices

Indraprastha Gas Ltd is planning a slight hike in prices of compressed natural gas and piped natural gas

because of increase in gas prices and the depreciation in rupee against the dollar, Managing Director Rajesh

Vedvyas said.



HPCL plans to raise $750 mn overseas loans in FY12 for capex

Hindustan Petroleum Corp Ltd plans to raise $750 mn through external commercial borrowings in the

current financial year ending Mar, to fund its capital expenditure, three senior officials of the state-owned oil

refiner and retailer told.

HPCL plans 450-bn-rupee capex by FY17, to expand ops, new refinery

State-owned Hindustan Petroleum Corp Ltd plans to invest around Rs.450 bn over the next five years ending

Mar 2017 on expanding its operation, including on setting up a new refinery in Maharashtra, S. Roy

Choudhury, chairman and managing director, said.

Tata Housing head sees realty prices falling 10-15% in near term

Prices of residential properties, especially in the luxury segment, are likely to decline 10-15% in the near-

term due to subdued demand, said Brotin Banerjee, managing director and chief executive officer, Tata

Housing Development Co Ltd.

HPCL-Mittal Energy plans to raise 20 bn Rs. via IPO

HPCL-Mittal Energy, a joint venture between Hindustan Petroleum Corp Ltd and Mittal Energy, plans to raise

Rs.20 bn through a public issue. Part of the proceeds will be used to lay crude pipeline from Bhatinda to

Lahore in Punjab for export of petroleum products to Pakistan.

Climate funding must not hurt emerging mkts: India

In this regard, India wants a global levy on shipping and aviation-related carbon emissions to be considered

as a climate-funding measure only after ensuring an eventual refund of revenues collected from the

developing nations.

Delhi govt considering buying gas from intl market

As uncertainty continues over the fate of 1,500 MW Bawana power plant after Reliance Industries'' refusal to

supply gas, Delhi government is now considering procuring 20% of fuel from the international market to

commission the plant built at a cost of Rs.4,500 crore.

AAI seeks exemption from Union Cabinet for sale or long-term land lease

The Airports Authority of India has asked for selective exemption from the Union Cabinet for selling or long-

term lease of any land of the government or a government-controlled statutory body. The airports operator

is estimated to have a land bank of 45,000 acres across all airports.

Adani Power plans to move SC against electricity regulator order

Adani Power Ltd plans to file a petition in the Supreme Court soon against electricity regulator's recent

judgement declaring illegal the company's move to unilaterally terminate power purchase agreement signed

with the Gujarat Urja Vikas Nigam Ltd.

Cairn Energy may have to pay $1.5 bn as tax for Vedanta deal

Cairn Energy will have to pay about $1.5 bn as tax for its 40% stake sale in its Indian arm, Cairn India, to

UK-based Vedanta Resources Plc in a deal valued at $6.5 bn. The company has already sold 10% holding in

Cairn India to Vedanta and the remaining 30% is awaiting final approval.

Kirloskar Oil Engines gets Rs.3.96-bn order

Kirloskar Oil Engines Limited has informed that the Company has received an order of Rs.396 Crores from

Nuclear Power Corporation of India Limited (NPCIL) for the supply of 16 nos. emergency Diesel Generating

sets of 4.2 MW each. This order is to be executed over next 42 months.

KS Oils board discusses sale of wind power ops

KS Oils Ltd has informed that the Board of Directors of the Company at its meeting held on Sep 26, 2011,

inter alia, has approved the following; 1. Appointment of Mr. Ramesh Chand Garg as Chairman aim

Managing Director (CMD). 2. The Board has discussed the matter for sale of Wind power segment of the

Company.

Minister Patel says market not appropriate for BHEL FPO

The government is likely to wait for conducive market conditions before it launches the follow-on public offer

of state-owned Bharat Heavy Electricals Ltd, Praful Patel, minister for heavy industries and public

enterprises, said.



Defence ministry puts Mazagon Dock-Pipavav partnership on hold

The defence ministry has put on hold the proposed joint venture between state-owned Mazagon Dock Ltd

and Pipavav Shipyard Ltd for manufacturing submarines and warships after rivals Larsen and Toubro Ltd and

ABG Shipyard Ltd raised objections to the deal, CNBC-TV18 reported.

Alok Ind's realty arm may sell Lower Parel commercial property at a loss

Alok Realtors, the real estate arm of Alok Industries Ltd, may sell a commercial building in Lower Parel,

Mumbai that it had bought from Peninsula Land Ltd, at a loss. Alok Realtors had bought the building for

Rs.10.75 bn in 2007.

DLF sells 10.8-acre Gurgaon land parcel for Rs.2.8 bn

DLF Ltd has sold 10.8 acres land parcel in Gurgaon to a Dubai-based Indian investor for Rs.2.8 bn as part of

efforts to reduce its debt burden. The company is also in talks with other investors to sell another 20 acres

in Gurgaon, which is expected to fetch around Rs.4 bn.

Petron Engineering gets order worth Rs.665 mn

Petron Engineering Construction Ltd has informed that the Company have been awarded a contract by

Lafarge India Pvt. Ltd., Mumbai for Mechanical Erection, Electrical and Automation Installation for its 5000

TPD Cement Plant Project at Chittaurgarh, Rajasthan, India, for an apprx. Contract Value of Rs.66.50

Crores.

Reliance Infra to get revenue from 20 of its 27 projects by Mar

Within the next six months Reliance Infrastructure Ltd will start earning revenue from 20 of the 27 projects

it is working on, Chief Executive Officer Lalit Jalan told the shareholders at the company's annual general

meeting.

IOC eyes second LNG terminal on east coast to meet captive need

State-owned Indian Oil Corp Ltd is considering setting up a second liquefied natural gas import terminal

along the east coast to mainly meet the requirement at its upcoming refinery at Paradip in Orissa, Chairman

and Managing Director R.S. Butola said.

IOC seeks predictable business landscape in fuel pricing, subsidy

The state-owned oil marketing companies need a "predictable business landscape" on fuel pricing and

subsidy payout to help undertake their investment needs, R.S. Butola, chairman and managing director of

Indian Oil Corp Ltd said.

NTPC slashes Ramagundam plant capacity by 25% on coal shortage

The state-owned NTPC Ltd has slashed the power generation capacity of its 2,600 MW Ramagundam project

in Andhra Pradesh's Karimnagar district by 25% because of shortage of coal, a senior company official told.

IVRCL consortium wins Rs.15-bn Arunachal Pradesh road order

A consortium of IVRCL Ltd's arm and Sushee Infra Pvt Ltd has received a Rs.14.9-bn order to widen a 311-

km road in Arunachal Pradesh into a two-lane road, the former said in a press release.

Govt to table real estate regulator bill in House winter session

The government is likely to seek Parliament's approval for the real estate regulator bill in the winter session,

Minister for Housing and Urban Poverty Alleviation Kumari Selja said.

REpower shareholders OK Suzlon's offer to buy balance stake in co

Shareholders of German wind turbine maker REpower Systems SE have allowed majority shareholder Suzlon

Energy Ltd to acquire the remaining 4.8% stake in the company for 142.77 euro a share, a Suzlon release

said.

Air India cuts its monthly working loss to Rs.2.66 bn Aug

State-owned carrier Air India's monthly operational loss has come down to Rs.2.66 bn in Aug from Rs.5.07

bn in Apr, the airline said in a release.

McNally Bharat says FY13 to be "tough year" due to project delays

McNally Bharat Engineering Co Ltd expects 2012-13 (Apr-Mar) to be a "tough year" for the company due to

delay in projects and payment from clients, Executive Chairman Deepak Khaitan told shareholders.



Petronet says spot LNG prices doubled in past mos to $15/mBtu now

Petronet LNG Ltd is buying liquefied natural gas at around $15 an mBtu on spot basis, which is almost

double the price the country's largest gas importer used to pay a few months ago, Director-Finance R.K.

Garg said.

Tata BP Solar commissions 1-MW solar power plant in Andhra Pradesh

Tata BP Solar India Ltd's 1-MW solar power plant was synchronised with the Andhra Pradesh electricity grid,

the company said a press release.

Peninsula Land to launch 12 new projects over next 1 year

Peninsula Land Ltd will launch around 12 new projects over the next one year, and will aim to complete its

existing three projects in the near term, Executive Vice-President Rajeev Piramal said.

Promoter Nutan Jain ups stake in Parsvnath Developers to 10.09%

Nutan Jain, one of the promoters of Parsvnath Developers Ltd, increased her stake in the company to

10.09% from 10.02% on Sep 22, according to a disclosure to the Bombay Stock Exchange.

Individual investor Rao ups Exelon Infra stake to 14.50% vs 4.74%

Exelon Infrastructure Ltd said that individual investor M. Srinivas Rao has increased his stake in the

company to 14.50% from 4.74% through off-market and open market share purchases from Sep 19 to Sep

21.

Mexico to emulate MGNREGA scheme

Impressed with the functioning of MGNREGA and rural road construction schemes in the country, Mexico has

said it would its own welfare programmes for poor on these initiatives.

Bajaj Electricals sees margin pressure in FY12, sales growth 20%

Bajaj Electricals Ltd's profitability may be hit in 2011-12 (Apr-Mar) following a slowdown in real estate and

depreciation of the rupee against the dollar, Chairman and Managing Director Shekhar Bajaj said.

Parsvnath gets shareholder OK for up to 20-bn-rupee QIP

Real estate major Parsvnath Developers Ltd has received shareholder approval to raise up to Rs.20 bn via

qualified institutional placement of shares, the company said in a notice to the Bombay Stock Exchange.

ONGC OK to Cairn-Vedanta deal; Cairn to agree to royalty cess norms

The board of Oil & Natural Gas Corp Ltd has decided to give its consent to Cairn India for the latter's deal

with Vedanta Resources Plc.

CEO says RPower on course to achieve 5,000 MW capacity by Dec 2012

Reliance Power Ltd is on course to achieve power generation capacity of 5,000 MW by December 2012, J.P.

Chalasani, chief executive officer, reiterated at the company's annual general meeting here.

HPCL raises Rs.800 mn through sale of 6.35%, 2024 oil bonds

Hindustan Petroleum Corp Ltd raised Rs.800 mn through sale of oil bonds in the secondary market,

merchant bankers said.

Official says Ansal Prop to mull debt recast via overseas borrows

Ansal Properties and Infrastructure Ltd would consider restructuring its debt through external commercial

borrowings, Dinesh Chander Gupta, assistant vice president-investor relation, told.

HPCL to raise at least Rs.1 bn via 6.35%, 2024 oil bonds' sale

Hindustan Petroleum Corp Ltd will raise at least Rs.1 bn through the sale of oil bonds in the secondary

market, merchant bankers said.

New global air navigation system to boost air safety

A new global air navigation system with its base in Mumbai would connect China and Pakistan by the year

end giving a fillip to air safety across the region.

Bangla finds new one trillion cubic feet gas reserve

"This reserve will significantly help reduce the country''s perennial gas crisis," Chairman of Petrobangla,

Hussain Monsur, told PTI.



Hitachi, SFO Technologies to set up JV in India

Hitachi Ltd and Kochi-based SFO Technologies, a NeST Group company, announced that they have agreed to

set up a joint venture for advanced control systems for thermal power plants.

NTPC arm achieves fincl closure for Bihar project stage II

NTPC Ltd today said its arm, Kanti Bijlee Utpadan Nigam Ltd, has tied up 23.41-bln-rupee loan from a

consortium of Indian banks for the second stage of its 390 MW Muzaffarpur Thermal Power Project in Bihar.

Kingfisher Air to exit low cost flight ops; focus on premium svc

Kingfisher Airlines Ltd is planning to exit its low cost, no frills service Kingfisher Red, Chairman Vijay Mallya

said.

Rail ministry plans setting up Stations Authority of India

The Ministry of Railways is planning to set up the Stations Authority of India to develop stations as multi-

purpose hubs, Railway Minister Dinesh Trivedi said.

Pipavav Ship, SKIL Infra, Airbus form JV for aircraft repair unit

Pipavav Shipyard Ltd has inked a memorandum of understanding with its promoter SKIL Infrastructure Ltd

and European aircraft maker Airbus to form a joint venture to set up a facility in India for maintenance,

overhaul and repair of civil and defence aircrafts.

Dewan Housing OKs merger of arms First Blue, DHFL Holdings with co

Dewan Housing Finance Ltd's board has approved the merger of subsidiaries First Blue Home Finance Ltd

and DHFL Holdings Pvt Ltd with the company.

Chartered Logistics in pact with Arshiya Intl, Jindal Vector

Road transportation services provider Chartered Logistics Ltd said that it had tied up with Arshiya

International Ltd for its foray into rail logistics and with Jindal Saw Ltd's subsidiary--Jindal Vector Water

Ways Ltd--for transportation of bulk cargo through the sea route.

CEO Dudley says restoring gas output at D6 block BP's top priority

BP Plc wants to focus on restoring gas production from the D6 in the Krishna-Godavari Basin, Robert Dudley,

group chief executive officer, told reporters after meeting Petroleum and Natural Gas Minister S. Jaipal

Reddy and Commerce and Industry Minister Anand Sharma in Delhi.

Punj Lloyd gets 11.95 bln rupee power equipment order from CESC arm

Punj Lloyd Group today said it was won an 11.95-bln-rupee order from Haldia Energy Ltd, a wholly-owned

subsidiary of CESC Ltd.

Godrej Ind cuts stake in Godrej Properties to 69.5% vs 70.6%

Godrej Industries Ltd has cut its stake in Godrej Properties Ltd to 69.49% from 70.63% through inter-se

transfer, the latter said in a notice to the exchange.

UN body grants 1.37 mln carbon credits to SRF, 16,435 to KRBL

SRF Ltd has been allotted 1,374,957 certified emission reductions or carbon credits, the United Nations

Framework Convention on Climate Change said in a statement.

Power Grid seeks bids by Nov 4 to lease out 29,800 telecom towers

State-owned transmission utility Power Grid Corp of India Ltd, which also owns a large telecommunication

infrastructure across the country, has invited bids from mobile service providers and telecom infrastructure

operators to lease out 29,800 telecom towers in four states, officials familiar with the development told.

Bangalore Metro seeks bids for developing property around terminus

Bangalore Metro Rail Corp Ltd today invited initial bids for developing property around metro terminus at

Baiyappanahalli in the city, according to a tender notice on its website.

Court asks Lanco to give Perdaman notice before securitising asset

Australia's apex court has asked Lanco Infratech to give a 10-day notice to Perdaman Chemicals and

Fertilisers Pty Ltd before securitising any of Griffin Coal's assets.

Maharashtra regulator refuses interim relief to power distributor

The Maharashtra Electricity Regulatory Commission has refused to allow Maharashtra State Electricity

Distribution Co Ltd's petition seeking to immediately recover 48.47 bln rupees from its consumers through a

uniform additional charge.



INTERVIEW: REC head sees 15-20% growth in disbursals annually

The monetary tightening by Reserve Bank of India has pinched banks and non-banking finance companies

alike, whose disbursals have taken a beating due to the spiralling interest rates. But Rural Electrification

Corp Ltd is better placed than most in its league, because of its ability to keep borrowing costs under check.

HCC Construction arms closes 2.4-bln-rupee stake sale to Xander

HCC Concessions, a subsidiary of Hindustan Construction Co Ltd, said it has closed a 14.5% stake sale deal

with the investment firm Xander Group for 2.4 bln rupees.

Nuclear Power Corp, Areva to start talks post France govt review

Nuclear Power Corp of India Ltd will begin talks with Areva SA for setting up a nuclear power project in

Maharashtra only after the government receives the French Nuclear Safety Authority review of Areva's

proposal, Srikumar Banerjee, chairman of the Indian Atomic Energy Commission, said.

PFC to raise at least 2 bln rupees via tax-saving infra bonds

Power Finance Corp Ltd will raise at least 2 bln rupees through retail issue of tax-saving infrastructure bonds

that open for subscription Nov 4 and close the same day, the company said.

Power Company of Karnataka invites bids for 700 MW power supply

Power Company of Karnataka Ltd, a special purpose vehicle set up by the government of Karnataka for

helping the state bridge its power deficit, has invited bids for supply of 700 MW power between Nov 1 and

Jun 15, 2013, the company said in public notice.

Karnataka government arm invites bids for 700 MW power supply

Power Co of Karnataka Ltd, a state government-owned public sector undertaking, invited bids from

generating companies for supplying total 700 MW power from Nov 1, 2011 to Jun 15, 2013.

RELIANCE INDUSTRIES:

Directorate General of Hydrocarbon has said that newer natural gas finds in the eastern offshore KG-

D6 block are not economically viable at the government stipulated price of $4.205 per mmBtu.

To formulate a strategy with government to ramp up output from the KG-D6 block by 30-35

mmscmd.

The oil ministry representative on the panel that oversees operations in the company's KG-D6 block

has not approved eight gas finds the company has made.

DEWAN HOUSING FINANCE CORP:

Plans to merge arm First Blue Home with self and raise funds through qualified institutional

placement.

Deutsche Postbank Home Finance board will meet Wednesday to consider amalgamation of company

with Dewan Housing Finance Corp.

Has approved merger of subsidiaries First Blue Home and DHFL Holdings with self. First Blue

shareholders will get 10 shares of Dewan Housing for 97 held.

The company has approved raising up to 10 bln rupees through QIP.

DLF:

Government allows special economic zone promoted by DLF Ackruti Info Parks in Pune to change

majority ownership.

Sells Gurgaon land to a Dubai-based Indian investor for Rs.2.8 bn. To reduce debt burden by a third

in 2010-11 (Apr-Mar).

RELIANCE INFRASTRUCTURE:

Shareholders approve issue of equity shares to qualified institutional buyers and raising funds from

overseas markets.

Within the next six months, the company will start earning revenue from 20 of the 27 projects it is

working on.

OIL AND NATURAL GAS CORP: Has issued a no-objection certificate to CAIRN INDIA for deal with

Vedanta Resources, subject to pact on royalty and cess norms.

ALOK INDUSTRIES: Arm to sell Mumbai office building in Lower Parel at a loss to cut down debt of

Rs.106.85 bn; may exit real estate business.



PIPAVAV SHIPYARD: The defence ministry has put on hold a proposed joint venture between the

company and state-owned Mazagon Dock.

RELIANCE POWER: Shareholders approve issuing equity shares to qualified institutional buyers and raising

funds from overseas.

BAJAJ ELECTRICALS: Says profitability may be hit in 2011-12 (Apr-Mar) due to slowdown in real estate

and depreciation in the rupee.

DB REALTY: Is in talks with major real estate firms for jointly developing two of its prime properties in

Mumbai valued at Rs.30 bn.

GMR INFRASTRUCTURE: Agrees to sell 30% stake in subsidiary GMR Energy (Singapore) to Malaysia's

Petronas International Corp.

KS OILS: Apr-Jun net loss Rs.3.55 bn against Rs.505.1 mn. Profit year ago, company discusses sale of wind

power operations.

SUZLON ENERGY: Company's Saurashtra wind power project faces hurdles as locals protest over land

allotment.

PETRON ENGINEERING CONSTRUCTION: Has received a contract worth around Rs.665 mn from Lafarge

India.

GLOBAL OFFSHORE SERVICES: Promoter Clearwell has raised stake to 5.27% from 4.44%.

BEML: Has received Rs.2.30-bn mining equipment order in Aug-Sep.

ABAN OFFSHORE: Shareholders have approved raising up to $400 mln via equity overseas and raising up

to 25 bln rupees through QIP.

CAIRN INDIA: The petroleum ministry has objected the company's plans to start production at Rajasthan

block by end of this fiscal.

GVK POWER & INFRASTRUCTURE: Has planned to raise stake in Hancock Assets by increasing its holding

to 47% in 2-3 years.

NTPC: Has tied up a syndicated loan worth 23.41 bln rupees from a consortium of Indian banks for its 390-

MW Muzaffarpur thermal power project in Bihar.

PIPAVAV SHIPYARD: Has inked a pact with promoter SKIL Infrastructure and Airbus to set up a joint

venture aircraft maintenance facility in India.

SUZLON ENERGY: Shareholders have approved raising up to 50 bln rupees through issue of securities.



IT & ITeS

INFORMATION TECHNOLOGY:

Infosys eyes deals in UK public sector.

Advent closes in on BT's stake in Tech Mahindra.

Infonet IT Solutions seeks OK for 600-mn IPO.

SMART Tech appoints HCL Info as distributor for S Asia, India.

General Electric to invest $200 mn in a multi-technology and multi-business facility in Pune.

Telecom Regulatory Authority of India plans to impose a termination charge of five paisa for every

commercial SMS on the service provider from whom it originates.

Cognizant has acquired Zaffera LLC, a strategic SAP retail consulting and software development firm

also based in the US.

HCL Tech opens delivery centre in Redmond

Indian IT services company HCL Technologies has opened a new global delivery centre in Redmond,

Washington. The initial investment of $4 mn will create more than 400 jobs in the Seattle area over the next

two years, an HCL statement said. With a 350-seat capacity, the ‗Collaborative Engineering Hub' will be a

focal point for HCL's near-shore engineering programs and will provide both engineering and product

development services in the areas of internationalisation and mobility. The centre was inaugurated by the

Washington State Director of the Department of Commerce, Mr Rogers Weed, in the presence of officials

from HCL and Microsoft. HCL also announced Microsoft as its first official enterprise customer, and Mr Weed

pledged $200,000 from the Workforce Investment Act Fund to HCL to assist with the training of future

employees from the Seattle area. In addition, HCL will work closely with several local universities to recruit

graduates, including the University of Washington, University of Washington-Bothell Campus, University of

Washington-Tacoma, Seattle University, and Seattle Pacific University.

Alok Bharadwaj named President of MAIT

Hardware association MAIT has appointed Dr Alok Bharadwaj, Senior Vice-President at Canon India, as its

new President. J.V. Ramamurthy, President and COO of HCL Infosystems, is its new Vice-President for 2011-

12, the association said in a release. The new office-bearers were announced at MAIT's 28th Annual Session

held in the Capital. Dr Bharadwaj said that although the current environment is challenging as growth in IT

industry is slowing down, the long-term demand.

SMART Tech appoints HCL Info as distributor for South Asia, India

Nasdaq-listed SMART Technologies has appointed HCL Infosystems Ltd as an authorised distributor for its

products in South Asia, including India, Sri Lanka, the Maldives, Nepal, Bhutan and Bangladesh. HCL

Infosystems will also provide after-sales support for SMART products, the Noida-based company said in a

press release today. "SMART is well positioned to become the preferred supplier of interactive whiteboards

and other education technology products through HCL's sales activities and channel, and it will provide

extensive training for HCL staff and resellers on an ongoing basis," HCL Infosystems said.

Zenith Infotech spins off MSD division

Zenith Infotech Limited has informed that the Company have spun off one Division of the Company Business

Known as MSD Divsion to M/s Zenith Monitoring Services Pvt. Ltd. Mumbai which will be a Subsdiary of

Zenith RMM LLC, by way of an Asset Purchase Agreement. However, Zenith Infotech Ltd is going to be a

major shareholder.

Wipro mulls options to sell some assets of US arm Infocrossing

Wipro is evaluating options to sell data centres and other hardware assets of its US subsidiary, Infocrossing,

to unlock value from its non-core business. India's third biggest software exporter has already received

initial offers from several medium to large US companies for the assets.

INTERVIEW: Persistent Systems looks to buy "niche, boutique" IT cos

Close on the heels of acquiring Agilent Technologies' French software marketing and development business,

Pune-based software developer Persistent Systems Ltd is on the prowl to buy out niche technology firms.



HCL Tech opens delivery centre in Washington

HCL Technologies Ltd has opened an engineering-focused global delivery centre at Washington with an initial

investment of $4 mn and Microsoft as its first official enterprise customer, the company said in a notice to

the stock exchanges.

INTERVIEW: Fall in rupee to aid Infotech Enterprises Jul-Sep margin

The recent sharp fall in the rupee may be spooking domestic markets, but for software service providers like

Infotech Enterprises Ltd, this is a time to rejoice.

Standard Chartered downgrades Infosys to in-line from outperform

Standard Chartered Securities (India) Ltd has cut its rating on Infosys Ltd to 'in-line' from 'outperform' and

has also cut the target price to Rs.2,290 per share from Rs.3,150 as the information technology company

sees early signs of a slowdown in the banking, financial institution vertical.

Highlights of Infotech Enterprises CMD Reddy's interview

Infotech Enterprises Ltd Chairman and Managing Director B.V.R. Mohan Reddy plans to focus on Australia,

Japan to de-risk business, even as the company holds talks with clients to up billing prices.

Open China market to Indian IT, Pharma: Montek

"I believe the Chinese side is aware of our market access concerns," said Planning Commission Deputy

Chairman Montek Singh Ahluwalia at the first Strategic Economic Dialogue (SED) between the two countries

here.

Promoter T. Mohan Reddy sells entire 0.93% stake in Acropetal Tech

Acropetal Technologies Ltd's promoter T. Mohan Reddy sold his entire 0.93% stake in the company for

Rs.5.4 mn through inter-se transfer, the company said in a notice to the National Stock Exchange.

Solix Tech, SRA OSS tie up to offer data management solutions in US

Solix Technologies Ltd's said that its parent company Solix Technologies Inc has entered into a partnership

with SRA OSS Inc to jointly provide data management governance solutions in the US.

HCL INFOSYSTEMS: Nasdaq-listed SMART Technologies appoints the company as an authorised distributor

for its products in South Asia, including India.

TATA CONSULTANCY SERVICES: Mulling acquisitions in France, Germany, Japan and the US as it sees

further rising demand despite global economic concerns.

ECLERX SERVICES: Shareholders approve raising foreign institutional investment limit to 100%.



PHARMA & HEALTHCARE

PHARMACEUTICALS & HEALTHCARE:

Maira panel says 'CCI must clear pharma M&As'.

Glenmark arm gets US FDA tentative approval for generic of Zomig.

US FDA gives tentative nod to new Cipla drug for HIV-1 infections.

Dr Reddy's ends pact to buy JB Chem's Russia prescription drug ops.

US Food and Drug Administration to up India staff.

Finance ministry confirms there will be no cap on foreign direct investment in the sector.

GlaxoSmithKline is looking for acquisitions in the range of $1 bn-$2 bn in India.

Dr Reddy's ends pact to buy JB Chem's Russia prescription drug ops

Dr Reddy's Laboratories Ltd has called off the Rs.1.37-bn deal to acquire JB Chemicals & Pharmaceuticals

Ltd's prescription drugs business in Russia and Commonwealth of Independent States countries, just three

weeks after the latter got approval of its shareholders. The deal was signed on Jul 22 and expected to be

completed by this month. "...The proposed business deal...has been mutually terminated in the overall

business interest of both parties," the press release stated. Had the sale gone through, JB Chemicals would

have completely exited from the said regions, having earlier sold its over-the-counter business in Russia and

Commonwealth of Independent States countries and global rights for three brands to Johnson & Johnson for

Rs.11.57 bn in May. The pact to sell the inventory of its wholly-owned subsidiary in Russia to Dr Reddy's

arm in the region for $3.9 mn also stands terminated, JB Chemicals said in a disclosure to the National

Stock Exchange. JB Chemicals planned to use the proceeds of the deal with Dr Reddy's, and that from

Johnson & Johnson to expand Indian operations. When the deal was announced, analysts said it would help

Dr Reddy's expand its prescription, hospital, and over-the-counter portfolio, Russia being a key market for

the company. In Apr-Jun, Dr Reddy's revenue from Russia and CIS region was Rs.2.49 bn, around 30% of

which came from over-the-counter segment. Both companies have expressed their commitment to

furthering their business in Russia.

GSK eyes $1 bn-$2 bn buys in India, but reluctant to pay premium

GlaxoSmithKline Plc is looking for acquisitions in the range of $1 bn-$2 bn in India, Group Chief Executive

Officer Andrew Witty said. In a sign that multinational companies now see the Indian pharmaceutical

acquisition space as overheating, he stressed big ticket acquisitions were not what the group had in mind,

and that it was under no such pressure to do so. "We are disciplined in how we allocate funds...We are not

going to give a strategic premium for the buy," said Witty. "We are happy not to do it also." This is in sharp

contrast to acquisitions that have taken place in recent years in the domestic pharmaceutical space, wherein

global majors have paid a huge sum to gain a hold and ground in India. One of the prime examples remains

Abbott acquiring Piramal Healthcare Ltd's domestic formulations business for a whopping $3.72 bn or nine

times its sales. This was the second-largest deal in the Indian pharmaceutical space after Japan's Daiichi

Sankyo snapped up Ranbaxy Laboratories in 2008 for $5.4 bn. Witty said GSK was looking for acquisitions

whose business would compliment its existing operations and may even consider buying manufacturing

facilities. He was talking at the annual general meeting of the Organisation of Pharmaceutical Producers of

India.

Vivimed Labs raises Rs.1.27 bn from 2 private equity cos

Vivimed Labs Ltd announced raising Rs.1.27 bn from two private equity firms, which the Hyderabad based

pharmaceutical and specialty chemical products manufacturer will utilise for ongoing expansion at its

existing facilities in Karnataka and Hyderabad. NYLIM Jacob Ballas India Fund III LLC has invested Rs.670

mn in the company by way of compulsorily convertible preference shares. The Jacob Ballas Capital India-

owned fund will get 13.2% stake in Vivimed on conversion of the preference shares within 18 months at

Rs.315 per share. The other private equity firm, Kitara Capital has invested Rs.600 mn into the company by

subscribing to similar instruments at 327 per share and will get 11.4% stake in the company after 18

months. Vivimed is also setting up a special economic zone unit at Visakhapatnam near Pydibhimavaram

and a US Food and Drug Administration-compliant facility for pharmaceuticals at Choutuppal near

Hyderabad. The company is also considering acquisition of pharmaceutical manufacturing units in India and

Europe.



Glenmark arm gets US FDA tentative approval for generic of Zomig

Glenmark Generics, the US arm of Glenmark Pharmaceuticals Ltd, has received tentative nod from the US

Food and Drug Administration for its drug Zolmitriptan, according to the information available on the

regulator's website. Zolmitriptan, an anti-migraine drug, is a generic version of AstraZeneca's Zomig. The

drug is a triptan and is used in acute treatment of migraine attacks with or without cluster headaches.

According to the regulator, the company has received the US FDA approval for two different strengths of the

Zomig generic - 2.5 mg and 5 mg in tablet form. AstraZeneca also markets the drug as Zomigon in

Argentina, Canada and Greece, as AscoTop in Germany and Zomigoro in France.

India-Latin America pharma meet from

A three-day pharma business meet of India, Latin America and Caribbean (LAC) countries will begin. ―The

objective of the meeting is to provide business opportunity to Indian pharma exporters, especially Small and

Medium Enterprises,‖ Dr P V Appaji, Executive Director, Phamaceutical Export Promotion Council said. About

14 important Latin American countries with huge potential for exports from India were identified, he added.

During the conference, four business sessions and a conclave of chief executive officers of pharma

companies, would be organised. Over 500 delegates from India, 250 exporters and 76 delegates from the

LAC region are likely to participate.

US FDA gives tentative nod to new Cipla drug for HIV-1 infections

Cipla Ltd has received US Food and Drug Administration's tentative nod for a new combination drug--

lamivudine and zidovudine tablet--used in treatment of HIV-1 infections, according to the US regulator.

According to a posting on the US drug regulator's website, the Mumbai-based drug maker has got a

tentative nod to sell fixed dose combination tablet containing lamivudines and zidovudine in 30 mg and 60

mg, respectively. The drug is used, along with other anti-retrovirals, for the treatment of HIV-1 infections in

children of three months and older weighing at least 5 kg.

Orchid Chemicals says fire at arm's Chennai unit

Orchid Chemicals & Pharmaceuticals Ltd has informed BSE that there was a fire that broke out in a portion

of the New Drug Discovery Laboratories located in the Company's research subsidiary Orchid Research

Laboratories Limited, Sholinganallur, Chennai. The fire was brought under control by the Tamil Nadu Fire

Services squad assisted by the Orchid safety team. There was damage to office and laboratory equipment,

furniture and building interiors. However, there were no injuries to anyone.

Pharma company officials say operations hit by Sikkim quake

The earthquake that affected Sikkim and Nepal on Sunday has hit operations of several pharmaceutical

companies' manufacturing plants, including Sun Pharmaceutical Industries Ltd, Torrent Pharmaceutical Ltd,

and Cadila Healthcare Ltd, industry officials said.

Some drugs of Aventis, Novartis get dearer as NPPA OKs price hike

Prices of Aventis Pharma's Combiflam tablets and Novartis' Vitalux Plus TR tablets are set to go up soon as

the National Pharmaceutical Pricing Authority has allowed these companies to hike rates of these drugs

within 15 days, a source said.

NPPA OKs price hike of select drugs of Aventis, Novartis

Prices of Aventis Pharma's Combiflam tablets and Novartis' Vitalux Plus TR tablets are set to go up soon as

the National Pharmaceutical Pricing Authority has allowed these companies to hike rates of these drugs

within 15 days, a source said.

Plan panel suggests lowering 100% FDI cap in pharma via automatic route

A high-level expert panel of the Planning Commission on universal health has recommended lowering the

present cap of 100% foreign direct investment in pharmaceutical sector through the automatic route to

below 49% "to retain predominance of Indian pharmaceutical companies".

Open China market to Indian IT, Pharma: Montek

"I believe the Chinese side is aware of our market access concerns," said Planning Commission Deputy

Chairman Montek Singh Ahluwalia at the first Strategic Economic Dialogue (SED) between the two countries.

Differences in Govt over FDI filter in pharmaceuticals



An expert group headed by Planning Commission member suggested that all mergers and acquisitions

(M&As) in the pharmaceutical industry should be cleared by competition watchdog, CCI, a proposal strongly

opposed by Industry Ministry.

Maira panel to submit report on M&As in pharma sector to PM

A high-level committee headed by Planning Commission Member Arun Maira will submit its report on

mergers and acquisitions in the pharmaceutical industry to Prime Minister Manmohan Singh and Deputy

Chairman of Planning Commission Montek Singh Ahluwalia.

Dr. Reddy's launches generic of dementia drug Exelon in US

Dr. Reddy's Laboratories launched the generic version of brand Novartis' Exelon used for the treatment of

dementia due to Alzheimer and Parkinson's disease in the US on Sep 15.

Deutsche Bk sees little impact of Europe crisis on India pharma cos

Indian pharmaceuticals companies may not face a major setback because of worsening economic scenario in

Europe as they have limited exposure to that market, Deutsche Bank AG said in a note.

Ind Swift Lab gets Australia drug regulator's nod for 7 bulk drugs

Ind Swift Laboratories Ltd said it has received an approval from Australia's drugs regulator to supply seven

of its active pharmaceutical ingredients to that market.

Promoter Semit Pharma pledges 1 mn more shares of Elder Pharma

Elder Pharmaceuticals Ltd's promoter Semit Pharmaceuticals & Chemicals Pvt Ltd pledged 1 mn shares of

the company on Monday, the former said in a notice to the stock exchanges.

Sun Pharma US arm gets FDA nod to sell generic of Zantac syrup

Sun Pharmaceutical Industries' US arm has received the US Food and Drug Administration's approval to sell

ranitidine hydrochloride syrup, the generic version of GlaxoSmithKline Pharmaceuticals' Zantac.

Fire at Orchid Chemicals' Chennai unit; no casualty

Orchid Chemicals & Pharmaceuticals said a fire broke out at its Chennai-based research subsidiary's facility

but no one was injured in the accident.

DR REDDY'S LABORATORIES: Has called off the 1.37-bn-rupee deal to acquire JB CHEMICALS &

PHARMACEUTICALS' prescription drugs business in Russia and Commonwealth of Independent States

countries.

ELDER PHARMACEUTICALS: Shareholders approve final dividend of 30% for the financial year-ended Mar

31, 2011.

VIVIMED LABS: Will raise Rs.1.27 bn from two private equity firms for expansion of its existing facilities.

DIVI'S LABORATORIES: Promoter has gifted 20.35% stake in the company to his daughter Motaparti and

12.05% stake to son Kiran Divi.

TRANSGENE BIOTEK: To mull opening date for $20 mn GDR issue on Sep 30.

UNICHEM LABORATORIES: Has earmarked Rs.1.2 bn for capital expenditure in 2011-12.



TELECOM

TELECOMMUNICATION:

Telenor to change partner if rift with Unitech widens.

Telenor's Indian joint venture Unitech Wireless initiates rights issue of Rs.82 bn to secure long-term

funding.

Anil Ambani reiterates RComm to cut debt via tower arm stake sale.

Telecom secy says examining 3G spectrum bid norms for roaming pacts.

Telecom Authority of India has issued notices to BHARTI AIRTEL, Vodafone and IDEA CELLULAR for

providing 3G services in the states where they do not own spectrum for offering such services.

Reliance Telecom, accused in 2G spectrum scam, has sought discharge from the case contending

before a Delhi court that a report of the Law Ministry exonerated it as its stake in alleged beneficiary

Swan Telecom was below 10%.

Nokia has announced the launch of Near Frequency Communication smart phones in India market.

Anil Ambani faces 2G probe; clean chit for Tatas.

Bharti signs pact with Nokia Siemens for 2G, 3G svcs in Africa.

Sistema Shyam gets 3-yr loan of $200 mln from ICICI Bk, Barclays Bk.

Bharti signs pact with Nokia Siemens for 2G, 3G services in Africa.

TRAI plans termination fee of 5 paise/commercial SMS from Oct 15

The Telecom Regulatory Authority of India is planning to charge a termination charge of 5 paise per

commercial short message service from Oct 15 to curb the increasing number of unsolicited SMSs to users.

"From Oct 15, we plan to come out with a regulation to impose on commercial SMS a termination charge of

5 paise," TRAI Chairman J.S. Sarma said at a press conference to address the issue of unsolicited SMSs and

calls. "These termination charges do not apply to personal SMS and are only for commercial messages," he

said. A telecom operator pays another operator termination fee for calls that end on the latter's network.

Under new TRAI regulations that have came into force from Sep 27, the number of SMSs from one particular

number has been capped at 100 SMSs per day. The SMS limit, however, does not apply to telecom service

dealers and direct-to-home service operators for electronic recharge requests. Directory services, social

networking sites, and e-ticketing agencies have also been exempted. The new rule also mandates all

telemarketers to be registered with TRAI, and now need to have phone numbers prefixed with 140 to make

commercial calls. Sarma also said that the Mobile Number Portability scheme that was available pan-India

from Jan has been well accepted by users and around 20 mn requests for porting of numbers have been

received since its launch. Requests for mobile number portability have touched 15.55 mn as of Jul 31,

according to last data.

Gemini Comm OKs share buyback at up to Rs.45 each

Gemini Communication Ltd has informed that consequent to the discussions at the Annual General Meeting

of the Company held on Sep 09, 2011, the Board of Directors, of the Company at its meeting held on Sep

24, 2011, have provided final approval for the buy-back of equity shares of the Company. Further, in

compliance with Companies (Passing of the Resolution by Postal Ballot) Rules, 2011, they have also finalized

proceedings for approval of shareholders through postal ballot. The buy-back would be through open market

purchases from the BSE Ltd and the NSE of India Ltd at a maximum price of Rs.45 per equity share, and the

maximum amount utilized for the buy-back shall be Rs.2978.43 Lakhs, which is within 25% of the

Companys fully paid-up Equity Share Capital and Free Reserves as per the Audited Balance Sheet as on Mar

31, 2011. Further, the promoter and promoter group of the Company shall not participate in the proposed

buy-back process.

Tata Comm inks pact with Pakistan co for providing ethernet svcs

Tata Communications Ltd has entered into a partnership with data and voice communication provider

Multinet Pakistan Pvt Ltd for an undisclosed amount for providing global ethernet services. The new services

are ideal for banking, financial services, and insurance companies that want to grow their presence in

Pakistan, or for companies wanting to migrate from international private lines to multi-protocol label

switching or Ethernet. Ethernet services use high bandwidth fibre optic media to deliver data at very high

speeds.



Telenor to invest up to Rs.15,500 cr in India

Norwegian telecom giant Telenor proposes to invest around Rs.15,500 crore in Indian operations in joint

venture with Unitech Wireless. The joint venture operates mobile services under the brand of Uninor in

India. Telenor holds 67.25% stake in Uninor, the rest is with real estate firm Unitech. The company had

received licence to roll out services in 21 of the 22 circles in India and it has launched its services in only 13

circles.

CBI to study fin min note to PM on 2G scam, govt counsel tells SC

The Central Bureau of Investigation would study the finance ministry note sent to the Prime Minister's Office

on the 2G spectrum allocation case, and may cover the issue in its next status report, government counsel

P.P. Rao told the Supreme Court.

Apex court told CBI to study finance ministry note to PM on 2G scam

The Central Bureau of Investigation would study the finance ministry note sent to the Prime Minister's Office

on the 2G spectrum allocation case, and may cover the issue in its next status report, government counsel

P.P. Rao told the Supreme Court.

Bharti more than doubles 3G data offer at same rate in some plans

India's largest telecom services provider Bharti Airtel Ltd has more than doubled data download limit in

some 3G plans for the same price. Bharti is offering revised 3G data plans in nine circles including Mumbai,

Maharashtra, Karnataka, Tamil Nadu, and Chennai, for pre-paid and post-paid users.

INTERVIEW: CFO sees telecom data svcs driving Tech Mahindra growth

Even as information technology majors such as Infosys Ltd and Tata Consultancy Services Ltd see growth in

their telecom vertical business slowing, Tech Mahindra Ltd is planning to increase penetration into the

sector, the only one it services.

Telecom department may fine Bharti airtel for alleged breach of norms

Bharti Airtel may face the telecom department's ire for allegedly camouflaging its calling-line identification

mechanism while making promotional calls to non-Airtel customers. The department also plans to slap a

Rs.500 mn fine on Bharti for breach of licence norms.

2G: Anand Sharma says PC shouldnt be targeted

"The Supreme Court is hearing the matter. Let us leave it to the Court and not prejudge. What has been

said by some opponents, critics against Home Minister P Chidambaram is very unfair," Sharma told reporters

here on the sidelines of an investment forum.

Norway's Telenor may rope in new partner in Unitech Wireless

Norwegian company Telenor's Group Chief Executive Officer Fredrik Baksaas has said it will look at inducting

another partner for its India operations, Unitech Wireless Ltd, if its existing joint venture partner Unitech

does not meet its obligations and participate in the proposed Rs.82 bn rights issue.

PE co Advent in talks to buy British Telecom's stake in Tech Mahindra

Private equity firm Advent International has intensified negotiations with British Telecom to acquire its stake

in Tech Mahindra Ltd. As on Jun 30, BT held 23.27% stake in Tech Mahindra equalling to 29.5 mn shares.

Pranab, Chidambaram meet Congress head as 2G fire refuses to die

Home Minister P. Chidambaram offered to resign during his meeting with Congress President Sonia Gandhi

to discuss the finance ministry's note on allocation of 2G spectrum, news channel CNN-IBN reported.

Anil Ambani reiterates RComm to cut debt via tower arm stake sale

Reliance Communications Ltd's Chairman Anil Ambani today reiterated the company is looking to reduce its

huge debt by selling stake in its mobile tower arm Reliance Infratel Ltd, and is in "advance talks" with

various global private equity consortiums for the same.

INTERVIEW: Maverick Swamy's 2G can of worms in times of UPA turmoil

Maverick, enfant terrible, Hindu Taliban... These are just some of the sobriquets that Janata Party's

President Subramanian Swamy has earned over the years as he has pursued a host of issues with dogged

determination.

Essar Telecom Kenya selects Tata Comm to route international calls



Essar Telecom Kenya, a unit of the Essar Group, has selected Tata Communications Ltd as its sole provider

of international voice termination, the Indian company said in a release to the exchanges.

Pranab to meet PM; may discuss fin min note on 2G

Finance Minister Pranab Mukherjee will have an unscheduled meeting with Prime Minister Manmohan Singh

in New York, according to a report the Business Standard.

Telecom secy says examining 3G spectrum bid norms for roaming pacts

The Department of Telecommunications is looking into the regulatory norms pertaining to the roaming pacts

signed among telecom operators for 3G services in the country.

RIM launches BlackBerry Curve 9360 for Rs.19,990

Canadian firm Research In Motion (RIM) launched its new BlackBerry Curve smartphone in the country,

priced at Rs.19,990.

Bharti signs pact with Nokia Siemens for 2G, 3G svcs in Africa

Bharti Airtel Ltd said it has signed an agreement with Nokia Siemens Networks to expand its 2G network,

deploy 3G network and manage services in seven African countries.

GSM industry body says BSNL disconnected pvt operators in Punjab

Cellular Operators Association of India, the industry body representing operators providing services based on

global system for mobile communications technology, has alleged that state-owned Bharat Sanchar Nigam

Ltd withdrew its interconnect with them in Punjab on non-payment of dues.

Sistema Shyam gets 3-yr loan of $200 mn from ICICI Bk, Barclays Bk

Telecom operator Sistema Shyam TeleServices Ltd, a joint venture between Russia's Sistema, the Russian

Federation and the Shyam Group, said it has raised a total of $200 mn from ICICI Bank and Barclays Bank.

Bharti cuts rate on new DTH pack for captive cell, broadband users

Bharti Airtel Ltd is leveraging its advantage of having the largest mobile subscriber base and the fourth

largest internet service subscriber base in the country by offering its direct-to-home platform to captive

users at cheapest prices.

GEMINI COMMUNICATION: Has approved buyback of shares at up to Rs.45 each and will spend up to

Rs.297.8 mn on the share buyback.

NET4INDIA: Has tied up with Finland-based Smart Phone solutions to launch operator-independent push

mail solutions in India.



BANKING & FINANCIAL SERVICES

BANKING & FINANCE:

SBI head says govt to soon decide quantum, time for fund infusion.

Reliance Cap keen to enter banking, expand other major businesses.

Corporation Bk arm to start loan syndication, broking ops Diwali.

Royal BANK OF Scotland's efforts to sell its retail and commercial banking businesses in India to

Hongkong and Shanghai Banking Corp may miss deadline as RBI is yet to approve the deal.

Finance Ministry to monitor public sector bank promotions.

Private bank promoters may be allowed 15% stake.

RBI says Aadhaar not enough to open bank accounts.

Bank of Baroda ED sees 8-bln-rupee cash infusion from govt Oct-Dec.

Source says Indian Overseas Bk may hire advisor for fincl svcs foray.

The RBI may raise the stake-holding limit of the private bank promoters to 15% from 10%.

Due to volatile markets, banks have deferred foreign fund-rasing plans through medium-term notes

and are finding alternative routes.

Banks make U-turn on prepayment; bks want charges capped, not waived.

Source says YES Bank defers $350 mln-$500 mln capital raising plan.

Axis Bank offers lifetime fixed interest home loan plan at 11.75%.

Banks, NBFCs allowed to sponsor infra debt funds

The Reserve Bank of India (RBI) has allowed banks and non-banking financial companies (NBFC) to sponsor

infrastructure debt funds (IDF), which can be set up as mutual funds and NBFCs. The move follows Finance

Minister Pranab Mukherjee‘s announcement in the 2011-12 budget of setting up of IDFs in order to

accelerate and enhance the flow of long-term debt in infrastructure projects. Infrastructure debt funds which

can be set up as NBFCs should have a minimum net-owned fund of Rs.300 crore and a capital adequacy

ratio of 15%, the RBI said in a statement. Banks acting as sponsors of infrastructure debt funds as MFs have

been subjected to existing limits, including limits on investments in financial services companies and on

capital market exposure. A bank‘s capital market exposure has been capped at 40% of its net worth, both

through direct and indirect routes. In case of NBFCs, it should have a minimum net owned funds (NOF) of

Rs.300 crore to act as a sponsor, and should be able to maintain the same level of NOF even after investing

in the fund. Also, the NBFC should maintain a capital adequacy ratio of 15% after investment. The entity

should also have good track record for five year and been profitable for the last three years. Banks and

NBFCs keen on sponsoring an IDF-NBFC must contribute at least 30% and a maximum of 49% of the total

capital of the fund, besides meeting the other requirements prescribed for floating an IDF-MF. ―The

guidelines will be big boost for the infrastructure sector which needs long term funds. NBFCs taking part in it

would be able to diversify their borrowing portfolio. We have other fund like gold fund. Hence we would be

keen to launch an infrastructure debt fund,‖ said G S Sundararajan, managing director of Shriram Capital.

RBI further said an infrastructure debt fund set up as an NBFC should have a minimum net worth of Rs.300

crore and at the least should have a credit rating of ‗A‘ or its equivalent by CARE, Fitch, Icra and Crisil. The

NBFC‘s Tier-II capital should not exceed Tier-I capital, while the minimum capital adequacy ratio should be

15%. ―For the purpose of computing capital adequacy of the IDF, bonds covering PPP and post commercial

operation date projects in existence over a year of commercial operation shall be assigned a risk weight of

50%,‖ said RBI. The fund can have an exposure of up to 50% towards a borrower or a group of borrowers.

The limit can be increased by up to 60% if the board of the IDF-NBFC agrees. Limited additional extension

beyond 60% can be granted only after RBI approval.

Global CEOs flying into India to review operations and look at growth opportunities

India's significance as an emerging market is growing steadily with more global CEOs flying into the country

to review operations and look at growth opportunities. While the trickle used to start closer to the winters,

this year it seems to have picked up pace early. The latest to join the list is GlaxoSmithKline CEO, Andrew

Witty who will be in Mumbai on September 26 for a two-day visit. Around the same time the top leadership

team of GE, including CEO Jeff Immelt, top bosses of Tokio Marine Holdings, Shuzo Sumi, and EMA Partners

International, James Douglas, would also be flying down, while that of German giant Siemens Peter Loescher

and Reckitt Benckiser, Rakesh Kapoor are already here. Other top bosses like that of Walt Disney and ANZ



Grindlays were also on a visit here recently. Sources said Witty will hold a review of the domestic company's

operations and discuss future plans of the subsidiary. GSK India has 4.2% share of the Rs 60,000 crore

organized retail market, and grew around 8% in August ( IMS Health). Overall, the pharma market had a

growth of around 16%. One of the top products of the company, antibiotic drug Augmentin is the largest

selling retail brand with sales of around Rs 240-odd crore. The company is ranked fourth in terms of market

share and has been posting a strong growth over the last couple of years. In an attempt to improve access

to medicine, Witty has been making key changes in the company's strategy, and `tier pricing' policy in

developing countries like India is a step in this direction. India is becoming a key driver for global

companies, with its growing domestic market, steady growth rate and burgeoning middle class. Emerging

economies like China, Russia, Brazil and India are attractive to global companies across sectors as most

developed markets are stagnant. As against this, emerging markets, particularly for pharma, are growing at

a faster rate, mostly double-digit. Not just the global CEOs, even celebrity Paris Hilton is in India this

weekend to get a piece of the growing luxury market, and launch her exclusive line. Other CEOs slated to

visit later this year include Jeffrey Joerres of Manpower group, and Ben J Verwaayen of Alcatel-Lucent

France.

RBI tweaks draft securitisation norms, moots cut in holding period

The Reserve Bank of India has proposed to cut the minimum period banks are supposed to hold loans before

securitisation, and also the minimum retention required. In its revised draft guidelines released, the RBI said

to securitise loans with quarterly repayments and original maturity of up two years, banks must hold them

for nine months from date of full disbursement, or three months from the due date of second instalment of

interest or principal. In the original draft norms, released on Apr 19, the RBI had proposed that banks must

hold such loans for nine months from date of full disbursement or date of first instalment., the RBI also said

that for loans with maturity of more than two years, banks must hold them for up to one year from date of

full disbursement or three months from the due date of the third instalment. "The single-repayment non-

amortising loans where interest is also due only on maturity will not be eligible for securitisation," the RBI

said. Once securitised, banks will have to retain a portion of the securitized loan pool in their books. The

central bank proposes that banks retain a minimum of 5% of the book value of the securitised loans with an

original maturity of up to two years. For loans having original maturity of more than two years, banks must

retain 10% of their book value, the draft norms suggested. In the earlier draft norms, the central bank had

proposed a minimum retention requirement of 10% for all loans securitised.

IBA response on ending floating rate loan prepayment fee by Sep 30

The Indian Banks' Association is likely to respond to the Reserve Bank of India's directive to stop levying

prepayment charge on floating rate loans by the month end, Banking Ombudsman M. Rajeshwar Rao said.

"Banks have sought more time on this (prepayment charge). I expect them to respond by the end of this

month," Rao told reporters. Earlier this month, the central bank had asked banks to stop levying any

prepayment charge on floating rate loans on borrowers who may be looking to prepay loans, especially for

homes. Banks typically levied high penalty on foreclosure of loans prior to the directive, unless the borrower

proved that the prepayment was from his/her own funds.

ICSA, Chinese co bag Rs.1.39-bn order in Tamil Nadu

ICSA (India) Ltd, along with partner Dongfang Electronics Co Ltd of China, has secured a Rs.1.39-bn order

from the Tamil Nadu Generation & Distribution Co Ltd for implementing a programme aimed at cutting

transmission and distribution losses. The order is part of the central government's Restructured Accelerated

Power Development & Reforms Programme. ICSA will help establish supervisory control and data acquisition

/ data management system in seven cities of Tamil Nadu. Hyderabad-based ICSA provides technology

solutions to power utilities.

M&M Fincl arm gets IRDA nod to enter reinsurance broking

Mahindra & Mahindra Financial Services Ltd has informed BSE that Mahindra Insurance Brokers Ltd. (MIBL),

a 100% subsidiary of the Company has received the approval from the Insurance Regulatory and

Development Authority (IRDA) to enter the Reinsurance Broking business. MIBL has been in the Direct

Broking business since May 2004 and has now been granted the Composite Broking license, allowing it to

also undertake Reinsurance Broking.

Gomti Finlease OKs 2 mn shares, warrants pref issue

Gomti Finlease (India) Ltd has informed BSE that the Board of Directors of the Company at its meeting held

on Sep 26, 2011, inter alia, has considered the following business : 1. Approved issue of security of the



company in the form of upto 20, 00, 000 equity shares or/and convertible warrants of Rs.10 each on

preferential basis, subject to the approval of the members at the ensuing Annual General Meeting.

Deutsche Postbank to mull merger with Dewan Housing Wed

Deutsche Postbank Home Finance Ltd has informed BSE that a meeting of the Board of Directors of the

Company will be held on Sep 28, 2011, inter alia, to consider the amalgamation of the Company with its

ultimate holding Company i.e., Dewan Housing Finance Corporation Limited, in accordance with the

procedure set out under Section 391 - 394 of the Companies Act, 1956.

Tashi India OKs merger of 3 cos with self

Tashi India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on

September 29, 2011, inter alia, to consider and approve the proposed scheme of Amalgamation of M/s Luk

Bedrocics Pvt. Ltd., M/s Twinstar Plasticoats Pvt. Ltd. and M/s. Bajaj Polymin Pvt. Ltd. (Transferor Company)

with M Tashi India Ltd (Transferee Company).

FOCUS: Bank offers galore but high realty rates keep homebuyers away

Banks and mortgage lenders are falling over each other to please home loan customers, offering

concessions, discounts, and other freebies. But customers are a wanting due to skyhigh property prices and

high interest rates.

Corporation Bk arm to start loan syndication, broking ops Diwali

Corporation Bank's arm CorpBank Securities Ltd has received Reserve Bank of India and Securities and

Exchange Board of India approvals to launch its loan syndication and broking operations, and will start the

same by Oct 26, the bank's Chairman and Managing Director Ramnath Pradeep told.

RBI imposes Rs.100,000 penalty each on two co-operative banks

The Reserve Bank of India has imposed a Rs.100,000 penalty on Porbandar Vibhagiya Nagarik Sahakari

Bank Ltd and Shri Mahavir Urban Co-operative Bank Ltd each for violating regulatory guidelines, the central

bank said in a notice.

Bank of India finalises partner for AMC ops; announcement next qtr

Bank of India has finalised a partner for re-entry into the asset management business and will announce the

tie-up in the next quarter, Executive Director N. Seshadri told.

IFC plans to invest $35 mn in Ambit Pragma, Forum Synergies' funds

International Finance Corp, the private sector investment arm of the World Bank, proposes to invest $20 mn

in Ambit Pragma Fund II, a growth capital private equity fund.

SBI takes membership of Experian Credit Information Co of India

State Bank of India took membership of Experian Credit Information Company of India Pvt Ltd, the bank

said in a release.

RBI allows banks, NBFCs to sponsor infrastructure debt funds

The Reserve Bank of India said banks and non-banking finance companies will be eligible to sponsor

infrastructure debt funds.

INTERVIEW: Corporation Bank CMD moots stock-split to boost liquidity

A week from retiring after a 35-year-long career, Ramnath Pradeep, chairman and managing director of

Corporation Bank, is a satisfied man.

CRISIL Ratings sees bks gross NPAs rising to 3.0% FY12 vs 2.3%

Sharp increase in interest rates over the last 18 months may push up banks' gross non-performing assets

ratio in 2011-12 (Apr-Mar) to 3.0% from 2.3% a year ago, CRISIL Ratings said in a report.

SBI head says govt to soon decide quantum, time for fund infusion

The government is expected to soon finalise the quantum, mode and timing of fund infusion in State Bank of

India, its Chairman Pratip Chaudhuri said over the weekend.

EXIM Bank to raise Rs.1.5 bn this week

Export-Import Bank of India will raise Rs.1.50 bn through 10-year bonds this week, a company official said.

SEBI asks merchant bankers to disclose performance of past issues

The Securities and Exchange Board of India has asked merchant bankers managing public issues of Indian

companies to disclose price performance of past issues managed by them.

Subbarao says central bks can't remain indifferent to asset bubble



Disagreeing with the "Greenspan orthodoxy", Reserve Bank of India Governor D. Subbarao said central

banks cannot remain indifferent to asset price bubbles in the post-crisis scenario.

IL&FS to raise Rs.2 bn via 5-yr bonds

Infrastructure Leasing & Financial Services Ltd will raise Rs.2 bn through five-year bonds, merchant bankers

said.

Anil Ambani exploring setting up 'Reliance Bank'

Industrialist Anil Ambani said that his group's financial services arm Reliance Capital will explore all possible

opportunities to enter the banking sector and plans to unlock value in all its major businesses.

Indian Overseas Bk scouting for consultant to set up fincl svc arm

State-owned Indian Overseas Bank is scouting for consultants to advise on setting up a financial services

subsidiary in the current financial year ending March, a source close to the development told.

RBI allows banks to use customer's Unique ID for opening accounts

The Reserve Bank of India today allowed banks to open accounts of customers using their Unique

Identification Authority of India letters.

INTERVIEW:ED says Bk of Baroda to get 8-bln-rupee govt funds by Dec

Bank of Baroda is likely to receive capital infusion of around 8 bln rupees from the government by

December, that will take the promoter's shareholding to 58%, Executive Director N.S. Srinath told in an

interview.

L&T Finance mulls bank foray; studying unbanked area norm viability

L&T Finance Holdings Ltd believes that the opportunity to get a banking licence can't be ignored, but the

norm to open at least 25% branches in the unbanked rural areas may prove to be a stumbling block, and

hence must be evaluated.

Deputy MD says SBI may hold loan rates until festival season ends

State Bank of India may hold the hike in its lending rates until at least the end of the ongoing festival

season, Santhosh Nayar, deputy managing director - corporate banking told.

Small savings' big blow - govt ups Oct-Mar borrow by 528 bln rupee

A fall in collections from its small saving schemes has forced the government to borrow more via gilts during

Oct-Mar, the latter half of the current financial year.

Banks' treasury bleed as gilts end 10 bps up on extra govt borrow

Banks' treasury performance, which is already under pressure from high interest rates and volatile foreign

exchange markets, faced the additional pain of government borrowing announcement occurring in the last

hour of trade.

Govt banks on 10-14 yr gilts for borrow, hints new bond unlikely

The central government will rely the most on the 10-14 year segment to raise funds in the second half of

2011-12 (Apr-Mar), in line with market expectations.

Axis Bank offers home loans at 11.75% fixed rate for entire tenure

Axis Bank launched a home loan scheme with fixed interest rate of 11.75% for the entire tenure, the bank

said in a release. Borrowers can take the loan for a maximum tenure of 20 years, the bank said.

FOCUS: NBFCs cry foul as proposed RBI norms may hurt growth, up NPA

Non-banking financial companies believe that the Reserve Bank of India working group's recommendations

have raised serious concerns over growth as these norms propose higher capital requirements and tougher

identification of non-performing assets.

Source says YES Bank defers $350 mn capital raising plan

YES Bank Ltd has deferred plans to raise $350 mln in equity to the second half of 2012-13 (Apr-Mar), a

source close to the development told.

AXIS BANK: Securities Appellate Tribunal has upheld a SEBI order against Axis Bank. The bank was asked

to pay Rs.200,000 fine for alleged violations of debenture trustee norms.

GOMTI FINLEASE INDIA: Board approves issue of up to 2 mn shares or convertible warrants on

preferential basis.

DEWAN HOUSING FINANCE CORP: Arm Deutsche Postbank to mull merger with the company.



STEEL, METALS & MINERALS

STEEL & MINING:

JSW Steel's Vijaynagar unit running at 30% capacity on ore shortage.

RCF plans Rs.60 bn coal gas fertiliser project in Indonesia.

Gallantt Ispat to issue 2.5 mn FCCBs on pref basis.

Hindustan Zinc cuts zinc price by Rs.3,200/tn to 115,700 rupee on Sep 26.

JSW Steel says Vijaynagar unit output cut by 30% from Sat.

Coal minister says power sector should arrange higher coal import.

Minerals worth Rs.2.26 bn were illegally mined in various states in 2010-11.

The steel ministry's agenda envisages a jump of almost two and a half times in India's steel capacity

to 200 mn tn by 2020.

Government mulling commercial coal mining.

Environment min cancels clearance of Sesa Goa Pirna mines.

NMDC targeting 1 mn tn/month iron ore output in Karnataka.

NMDC aims to ink JV with Severstal for 3-mtpa Karnataka unit by Dec.

JSW Steel ups prices by up to 750 rupee/tn; plans another hike Oct.

Government plans to allot captive coal blocks to private miners such as BHP Biliton, Rio Tinto, and

SESA GOA on conditions that these firms have tied up approved end users for supply.

Second round of the iron ore e-auction in Karnataka scheduled.

SAIL in talks with Rajasthan govt to jointly mine manganese ore.

GAIL to buy 20% in Carrizo shale asset; to invest $300 mn in 5 yrs.

Tata Steel opens upgraded rail production facility in France.

JSW Steel may shut Vijaynagar plant if iron-ore shortage persists

JSW Steel Ltd may have to shut its Vijayanagar plant in Karnataka, if the company continues to face severe

shortage of iron ore, Vice Chairman and Managing Director Sajjan Jindal told reporters. He said the company

was unlikely to meet its 2011-12 (Apr-Mar) output forecast of 10 mn tn due to the shortage. He did not give

a revised target for current financial year, but said the cut in production target would depend on duration of

iron-ore mining ban. JSW Steel had announced a production cut at its 10-mn-tn Vijaynagar plant to 30% of

capacity after the Supreme Court restricted sales of iron ore produced by NMDC Ltd in Karnataka to online

auctions. JSW Steel has been facing severe shortage of iron ore since the past two months, after Supreme

Court banned all mining activities in Karnataka's Bellary, Tumkur and Chitradurga districts due to allegations

of widespread illegal mining in the region. Since then, the company has been depending on the court-

appointed auction system to procure iron ore. JSW Steel does not have any inventory of iron ore currently

and expects to get some supply when another 1.1 mn tn of iron ore is auctioned. The company had also said

that the supply of iron ore through the auction system was inadequate to meet its needs. The company has

made a representation to the Central Empowered Committee and Monitoring Committee to ensure adequate

supply of iron ore at a fair price to restore normal production.

NMDC buys 50% in Australia's Legacy Iron Ore for Rs.92 crore

State-run NMDC Ltd will buy 50% stake in Australia's Legacy Iron Ore for Rs.92 crore, marking the navratna

company's first overseas foray and one that will give it access to key mineral resources down under. In a

filing to the Australian Securities Exchange, Legacy Iron said its board has agreed to the NMDC proposal

though the deal would be subject to regulatory and shareholder approval. Legacy shareholders are likely to

meet in Nov to approve the deal, which breaks the jinx of PSUs pitching for assets overseas but losing out to

rivals in the final lap. "This is only an initial investment into Legacy and NMDC's involvement will depend on

various projects that may be taken up later," NMDC company secretary Kumar Raghavan said. On Sep 14,

NMDC had put in a binding bid for acquiring a 50% stake in Legacy, which holds prospective iron ore

tenements in both the central Yilgarn and Pilbara areas of Western Australia. It had first signed a

memorandum of understanding with the Perth-based company on Mar 24.



Shah Alloys not in a position to redeem FCCBs

Shah Alloys Ltd has informed that the Company had issued zero coupon Unsecured Foreign Currency

Convertible Bonds (FCCB) amounting to US$ 10 mn in Sep 2006. The Company is required to redeem the

Bonds on Sep 22, 2011 in cash at 148.255% of the principal amount of the Bonds. Since the Company has

been declared as Sick Industrial Company under section 3(1) (o) of Sick Industrial Companies (Special

Provisions) Act, 1985 (SICA) by the order of Honble Board for Industrial and Financial Reconstruction (BIFR)

issued on Sep 13, 2010, Cash Flow of the Company does not permit redemption of aforesaid Bonds. On the

directions of the lenders, Company appointed M/s. Mecon Ltd. to carry out the Techno Economic Viability

(TEV) Report for Draft Rehabilitation Scheme (DRS) in coordination with Union Bank of India, Operating

Agency appointed by Honble BIFR. Once the DRS is finalized and approved by Hon'ble BIFR Company shall

be in the position in schedule repayment of the said FCCB.

JSW Steel's Vijaynagar unit running at 30% capacity on ore shortage

JSW Steel Ltd has cut production at its 10-mn-tn Vijaynagar plant to 30% of capacity after the Supreme

Court restricted sales of iron ore produced by NMDC Ltd in Karnataka to online auctions. "The abrupt

disruption of supplies to JSW Steel (long-term customer) by NMDC cut the lifeline to run the furnaces in safe

condition," JSW Steel said in a statement. After banning all mining activities in Karnataka's Bellary, Tumkur

and Chitradurga districts, the Supreme Court on Sep 2 ordered release of 1.5 mn tn of iron ore every month

through e-auction. NMDC is the only company allowed to mine iron ore from Karnataka. "This measure (e-

auction) has not given any relief as 31% of the total auctioned material was not bought by any of the

participants in the e-auction due to improper pricing for low grade ore," JSW Steel said. It said continuing

steel production even at current levels is very challenging unless iron ore supply of required quality and

quantity is restored expeditiously. The company, which buys more than 80% of the raw material from NMDC

and other miners in the state, had to cut output last month as supplies dried up following the ban.

RCF plans Rs.60 bn coal gas fertiliser project in Indonesia

Rashtriya Chemicals and Fertilizers Ltd plans to set up a coal gasification-based fertiliser project in Indonesia

at an investment of around Rs.60 bn, Chairman and Managing Director R.G. Rajan said. He said a

memorandum of understanding has already been signed with the Indonesian authority concerned for the

proposed project, which could have a capacity of around 1.15 mn tn per year. The investment will be

through Urvarak Videsh Ltd, a joint venture with National Fertilizers Ltd. Besides Indonesia, Urvarak Videsh

is pursuing a gas-based fertiliser project in Ghana of a similar capacity. On the domestic front, RCF is

preparing for the Rs.40 bn expansion of its Thal project in Maharashtra next year, and is waiting for clarity

on gas allocation and launch of the new urea policy to kick-start the project.

Rashtriya Ispat seeks bids for cement JV; co to take 26% stake

Rashtriya Ispat Nigam Ltd has invited bids from cement manufacturers to set up a 2.5-3.0 mtpa cement

plant in a joint venture. The state-owned steel maker will hold 26% stake in the joint venture, while its

partner(s) will take the rest. The primary objective of the joint venture is to use the dry fly ash generated

from Rashtriya Ispat's captive power plant at its Visakhapatnam steel plant as an input in the manufacture

of cement. The government is planning to sell 10% stake in the fully-owned Rashtriya Ispat through an

initial public offering. The IPO is expected to be floated in the next financial year.

Govt sees 2.5 times rise in steel capacity to 200 mn tn by 2020

Steel ministry's agenda, released, envisages almost two-and-a-half times jump in steel capacity in the

country to 200 mn tn by 2020. India's steel production capacity is seen at 93 mn tn by Mar-end from 83 mn

tn currently. The agenda also aims to have a proactive mechanism to ensure time-bound progress for all

projects undertaken by public sector undertakings.

Tata Steel gets Bombay HC nod to merge Centennial Steel with self

Bombay High Court has approved amalgamation of Centennial Steel Co Ltd with Tata Steel Ltd. The effective

date of amalgamation will be Sep 27. Centennial Steel has now become the wholly-owned subsidiary of Tata

Steel. Tata Steel incorporated Centennial Steel in Aug 2009 to jointly implement the expansion of capacity

at Jamshedpur to 9.7 mtpa by 2011-12.

Coal India to hike prices only after wage revision

"The quantum of price revision will be done on the basis of the wage revision. We had two meetings since

August this year on wage revision. A third meeting of the Wage Committee is going to happen in November,



but the final decision is unlikely to be taken before Dec. Price revision will happen after that," CIL Chairman

N C Jha told PTI here.

Govt wants Coal India to focus on local output, not overseas assets

The ministry is not keen on Coal India Ltd acquiring assets overseas, but instead wants the state-owned

behemoth to work on improving its domestic output instead, Union Coal Minister Sriprakash Jaiswal said.

Head says timely project completion key to Hindalco's profitability

Even as almost all of Hindalco Industries Ltd's Greenfield projects are running behind schedule, Chairman

Kumar Mangalam Birla said that timely execution would be key factor to enhance cost competitiveness of

the company.

Hindustan Zinc cuts zinc price by Rs.3,200/tn to Rs.115,700 on Sep 26

Hindustan Zinc Ltd cut zinc price by Rs.3,200 per tn to Rs.115,700. The company also cut lead price by

Rs.5,000 to Rs.125,200 per tn. The Vedanta group company aligns its product prices in line with London

Metal Exchange.

INTERVIEW: Coal, oil to help Mercator sail as ships turn dead weight

With the volatile freight market making survival difficult, Mercator Lines Ltd no longer wants to bet all its

cards on plain vanilla shipping. The company is diversifying into trading and mining of coal, hydrocarbon

exploration and wants to provide integrated logistics solutions to its clients as well.

Cos may lose coal blocks for not filing quarterly reports

Companies that fail to provide quarterly details of progress on their captive coal blocks may face forfeiture of

bank guarantee or even de-allocation of blocks unless they are able to explain such lapses within a fortnight.

NALCO facing production loss of Rs.10 mn/day on coal shortage

State-owned National Aluminium Co Ltd is facing a production loss of about Rs.10 mn per day due to coal

shortage. The company has cut down its daily production to 1,000 tn against the normal rate of output at

1,200 tn at the Angul smelter unit in Orissa due to coal shortage.

ICSA, Chinese co bag 1.39-bln-rupee order in Tamil Nadu

ICSA (India) Ltd, along with partner Dongfang Electronics Co Ltd of China, has secured a Rs.1.39-bn order

from the Tamil Nadu Generation & Distribution Co Ltd for implementing a programme aimed at cutting

transmission and distribution losses.

Tata Steel to spend Rs.1.71 bn on employee bonus in FY12

Tata Steel Ltd will spend Rs.1.71 bn for paying annual bonus to its 30,155 employees in 2011-12 (Apr-Mar),

the company said in a release.

SAIL head sees steel product prices firming up next month

Steel Authority of India Ltd Chairman and Managing Director C.S. Verma said he expects steel prices to firm

up around the festival Period, which will peak in Oct.

Kerala proposes NMDC JV for beneficiation plant in Lanka, Vietnam

The Kerala government is keen that NMDC Ltd partners it in setting up mineral beneficiation plants not only

in the state but also in Sri Lanka and Vietnam, according to a government press release issued.

Environment min to de-list pending mining projects in Karnataka

The environment ministry will delist all proposed mining projects in Karnataka, which are awaiting

environmental clearance or are at different stages of consideration, the ministry said.

NMDC to buy 50% in Australia's Legacy Iron Ore for A$18.89 mn

State-owned NMDC Ltd will buy 50% stake in Australian exploration company Legacy Iron Ore Ltd for

Australian $18.89 mn, the latter said in a notice to the Australian Securities Exchange.

GVK says due diligence for stake in Hancock assets done by 1 co

GVK Coal Developers (Singapore) Pte Ltd is in talks with coal miners in Indonesia and China for inducting a

strategic partner, Isaac George, Chief Financial Officer of the GVK Group said.

Kerala proposes NMDC JV for beneficiation plant in Lanka, Vietnam

The Kerala government is keen that NMDC Ltd partners it in setting up mineral beneficiation plants not only

in the state but also in Sri Lanka and Vietnam, according to a government press release issued.

Steel minister seeks hike in iron ore export duty to 30% from 20%



Steel Minister Beni Prasad Verma said he has sought an increase in export duty on iron ore to 30% from

20% in a letter written to the finance ministry last week.

Promoter co ups stake in Jindal Steel to 8.18% from 8.08%

Opelina Finance and Investment Ltd, one of the promoters of Jindal Steel & Power Ltd, has raised its stake

in the company to 8.18% from 8.08%, the former informed the Bombay Stock Exchange.

Coal ministry may mull revoking de-allocation of NTPC coal blocks

Coal Minister Sriprakash Jaiswal his ministry was willing to consider requests of public sector companies,

including NTPC Ltd, to revoke the de-allocation of their coal blocks.

Gujarat Venture Capital cuts 20 Microns stake to 4.3% from 7.66%

Gujarat Venture Capital Fund has cut its holding in 20 Microns Ltd to 4.3% from 7.7%. On Sep 23, the fund

sold 4,81,525 shares in 20 Microns worth Rs.27.29 mn.

Coal Minister says power sector should arrange higher coal import

Coal Minister Sriprakash Jaiswal said that the ministry of power should plan for higher coal imports, as local

availability of the fuel is inadequate to match domestic demand.

GAIL eyes stakes in LNG plants of Chevron, Algerian co

State-owned GAIL (India) Ltd is in talks with at least two international energy companies, including US-

based Chevron Corp, to acquire stakes in their liquefied natural gas plants in Australia and Algeria.

JSE steel's K'tka plant may shut of iron ore shortage

Sajjan Jindal-led JSW Steel said it may have to shut down its 10 mn tonnes per annum (MTPA) Vijayanagar

plant in Karnataka due to a continuous shortage of iron ore.

JSW Steel ups prices by up to Rs.750/tn; plans another hike Oct

JSW Steel Ltd has increased the prices of its products across categories by up to Rs.750 a tn to pass on the

surge in input costs and leverage the likely rise in demand in the festival season, Sharad Mahendra, senior

vice president (sales), told.

Tata Metaliks in pact to sell Redi pig iron unit for Rs.1.8 bn

Tata Metaliks Ltd has decided to sell its pig iron facility in Redi, Maharashtra as a sharp increase in iron ore

prices has severely affected its "structural competitiveness", the company said in a release.

Essar Steel Chhattisgarh ops normal; co denies paying extremists

Essar Steel Ltd's iron ore mining operations in Chhattisgarh have not been affected due to the arrest of

General Manager D.V.C.S. Varma on charges of payment of "protection" money to Left-wing extremists, a

senior official of the company told.

Jindal Steel starts production at 2nd unit of Patratu steel plant

Jindal Steel & Power Ltd has started production of the second unit of the proposed 6-mn-tn steel plant at

Patratu in Jharkhand, the company said in a release.

NMDC targeting 1 mn tn/month iron ore output in Karnataka

NMDC Ltd is targeting iron ore production of 1 mn tn a month in Karnataka soon, a senior company official

told.

NMDC aims to ink JV with Severstal for 3-mtpa Karnataka unit by Dec

NMDC Ltd expects to sign a joint venture agreement with Russia's OJSC Severstal by December to set up a

3 mtpa steel plant at Bailadila, Karnataka, Chairman and Managing Director Rana Som said.

GAIL to buy 20% in Carrizo shale asset; to invest $300 mn in 5 yrs

GAIL India Ltd arm, GAIL Global (USA) Inc, has agreed to acquire 20% stake in Houston-based Carrizo Oil &

Gas Inc's Eagle Ford Shale acreage, with an investment of $300 mn over the next five years, the state-

owned gas utility major said in a statement.

BG India in pact to sell 2.5 mtpa LNG to Gujarat state co from 2014

BG India, a subsidiary of British natural gas major BG Group plc, said it has inked a preliminary pact to

supply 2.5 mn tn liquefied natural gas annually to Gujarat State Petroleum Corp Ltd on a long-term basis.

Tata Metaliks plans to set up sinter plant, increase coke linkage



Tata Metaliks, a subsidiary of Tata Steel Ltd, is planning to set up a sinter plant and increase its coke

linkages to make the company more competitive at a time when volatility in raw material prices is putting

pressure on margins of metal companies.

Uranium Corp to set up 3,000 tn/day ore processing unit in Andhra

Uranium Corp of India Ltd is setting up a uranium extraction and processing plant in the Kadapa district of

Andhra Pradesh with daily capacity to process 3,000 tn ore, Deputy General Manager A.K. Sarangi said.

SAIL in talks with Rajasthan govt to jointly mine manganese ore

Steel Authority of India Ltd is in talks with Rajasthan State Mines and Mineral Ltd to form a joint venture to

explore, develop and operate manganese ore mines in the state, a SAIL official, familiar with the

development, told.

Additional capacity at Tata Steel's France rail unit goes on stream

Additional capacity at Tata Steel Ltd's rail making facility at Hayange in the Lorraine region of France went

on stream today, the company said.

Hindustan Zinc cuts zinc price by Rs.1,900 rupee/tn to Rs.113,800 on Sep 29

Hindustan Zinc Ltd cut zinc price by Rs.1,900 per tn to Rs.113,800, according to the company's website. The

company also cut lead price by Rs.3,300 rupees to Rs.121,900 per tn.

ESSAR STEEL: The general manager of the company's Kirandul project in Chhattisgarh, D.V.C.S. Verma

was arrested on charges of alleged cash payment to Naxalites as protection payoff.

STEEL AUTHORITY OF INDIA: Some of the projects have suffered delays ranging between six and nine

months.

TATA METALIKS: Has signed a pact to sell its 300,000-tn-a-year pig iron unit in Redi in Maharashtra to

Fomento Resources for Rs.1.8 bn.

GAIL: Arm to buy 20% in Carrizo Oil's shale gas assets in the US. The company will invest $300 mn over

five years in Carrizo Oil JV.

JINDAL STEEL & POWER: Has planned to invest Rs.1 trn in Jharkhand for setting up steel and power

plants.

20 Microns: Gujarat Venture Capital has cut its stake in the company to 4.3% from 7.66%.

TATA STEEL: Has got the Bombay High Court's nod to merge Centennial Steel with self.

EASTCOAST STEEL: To mull merger of Mind Factory Entertainment with self.

GALLANTT ISPAT: To issue 2.5 mn fully convertible debentures at Rs.160 each.

JSW STEEL: Cuts production at Vijaynagar by 30% on iron ore shortage.



AUTO & AUTO ANCILLARIES

AUTOMOBILES:

Maruti to expand its sourcing as Japanese yen rises.

Maruti says made 700 Swift units; car's bookings at 108,000.

JK Tyre plans to raise overseas sales to offset domestic slowdown.

Domestic manufacturers oppose free trade agreements, as the tariff structures will adversely affect

them.

Mahindra & Mahindra and Honda to launch two new vehicles this week.

Maruti Suzuki says restarted SX4 production at Manesar unit.

Honda Siel launches Brio hatchback at Rs.395,000, ex-Delhi.

Punjab-based Sonalika Group is planning to launch a tractor priced below Rs.200,000 for small and

marginal farmers.

Hino Motors Sales, an Indian subsidiary of Japanese car maker Toyota Motor has trimmed sales team

in India by sacking nearly half the staff at its sales office in Mumbai.

Toyota Kirloskar Motor, the Indian arm of Toyota Motor, will invest Rs.1 bn in a spare parts

warehouse in Rajasthan.

Maruti Suzuki says A-Star car production resumed at Manesar plant.

Tata Motors says to study Calcutta HC judgement on land rehabilitation.

Ashok Leyland prices LCV Dost at Rs.379,000-437,000 ex-Mumbai.

M&M launches SUV 'XUV 500' priced at Rs.1.08-1.29 mn ex-Delhi.

Honda Motorcycle to invest Rs.10 bn in new Karnataka unit.

Ashok Leyland to supply 723 vehicles to Tanzania govt by Mar.

Royal Enfield to set up second plant by 2013

If you have been amongst Royal Enfield lovers and aspirants who have been disappointed by the long

waiting periods that the thumpers demand, things look like they are about to change for the better. Eicher

Motors, which owns Royal Enfield, recently announced that it will be setting up a new manufacturing facility

for its motorcycles at Oragadam near Chennai, which will be able to churn out about 1.5 lakh bikes every

year. The facility is expected to be ready by Mar 2013. The proposed 50-acre facility is likely to see a total

investment of up to Rs.350 crore over the next five years. Tamil Nadu Chief Minister Jayalalithaa officially

allotted land for construction of the plant at the Oragadam SIPCOT Industrial Park, near Chennai. He said

the new facility will have an initial installed capacity of 1.5 lakh units per annum, which could be expanded

later, depending upon demand. "With addition of new capacities, we will be able to reduce the waiting

periods of our bikes. It currently about 6-8 months," Royal Enfield CEO Siddharth Lal said. Following

operationalisation of the new plant, Royal Enfield will shift its entire vehicle assembly line here. At present, it

has another facility in the state that produces 70,000 bikes every year.

Bajaj Auto eyes monthly sale of 4000 boxer bikes in state

With its eyes set on the rural market in Saurashtra, Bajaj Auto Ltd rolled out its new Boxer 150 cc variant in

Rajkot by announcing its intention of achieving a sale of 4000 bikes every month. The auto giant has

launched this new offering in keeping with the demands of the rural market. ―We are aiming to achieve a

sale 4000 boxer bikes every month in Gujarat. This new bike is especially designed for rural and small town

areas and so we are currently focussing on buyers from the rural areas,‖ said Manish Khatav, zonal

manager, Bajaj Auto Ltd speaking at the occasion. He further added that currently Bajaj Auto‘s market share

in Gujarat was about 30-33% and with this new launch, the company is expecting to capture about 40%

market share in the state by the end of this fiscal. ―With good monsoons, the rural economy is doing well

and also with recruitments in urban cities on a high, we are expecting a good demand for the all new Boxer

as it is a fuel efficient bike,‖ said Khatav.

Big bet on small cars

At least seven auto makers will launch small cars in the Rs.2-4 lakh price band over the next few months.

While Japan‘s Honda will launch the Brio, Korean giant Hyundai is expected to unveil its Eon during the

Diwali week. Maruti Suzuki India — the country‘s top car maker — also plans to launch a car built on the



Alto platform in 2012. Other auto giants, including Renault, Skoda, Volkswagen and Fiat India, are gearing

up to unveil small cars next year. Such cars constitute more than 70% of around 2.5-mn cars sold in the

country. According to analysts, there will be a strong demand for entry-level models as more customers

graduate from motorcycles. ―This segment will be particularly important as manufacturers focus on

rural/semi-urban markets where the buying power will be lower than the urban locations,‖ Kumar

Kandaswami, manufacturing leader of Deloitte in India, told The Telegraph. Even in the metros and big

cities, the demand for small cars is expected to come from first-time buyers such as young professionals

feeling the pressure of rising loan rates and high fuel prices. Industry players said Hyundai was planning to

price its Eon lower than Rs.3 lakh, while Maruti‘s replacement of the 800, named Cervo, could come for

Rs.2.5 lakh. French car maker Renault is gearing up to compete in the mass market with its new car based

on the same V-platform that underpins the Nissan Micra and Sunny. ―We will launch our small car in India

by next January,‖ said Len Curran, sales and marketing vice-president at Renault India. The car is expected

to be priced at around Rs.3 lakh. Germany‘s Volkswagen is evaluating the possibility to bring in the Up!

showcased at the Frankfurt Motor Show 2011.

Wabco plans a Rs.60-cr capex

Wabco India Ltd, a subsidiary of Belgium-based Wabco Holdings has earmarked a Rs.60-crore capex plan for

its Indian operations this fiscal. The company will invest Rs.40 crore to expand cacacity at its export-

oriented unit at Mahindra World City SEZ in Chennai to manufacture compressors for overseas markets. The

company will also invest an additional Rs.10 crore in a braking system assembly unit at Lucknow in Uttar

Pradesh to acter to the plants of Tata Motors and Ashok Leyland. The 7,000 units per annum capacity unit

will commence operations in 2012.

Maruti Suzuki plans $1.3-bn investment in new plant

Auto manufacturer Maruti Suzuki, has planned the investment of around $1.3 bn (Rs.6,300 cr approx) to set

up a new plant. The company has not yet finalised the location of its new plant and will take a final decision

by Oct-end but is looking Gujarat as the potential location for the plant. "On one plant for a mn capacity,

which will be set up over a number of years, the investment will be close to $1.3 bn," RC Bhargava said. The

global auto companies are bullish on business in Gujarat and Ford Motor and PSA Peugeot Citroen have also

announced plans to invest in the state.

JLR to invest Rs.2,650 cr for UK engine plant

Tata Motors-owned Jaguar Land Rover will invest 355 mn pounds (about Rs.2,650 crore) to set up an

advanced engine facility to manufacture all-new, advanced technology, low-emission engines in the UK. The

plant, to be set up at Staffordshire, near Wolverhampton, will manufacture a family of low emission 4-

cylinder JLR petrol and diesel engines. However, details regarding the production capacity and the timeline

for its operations was not specified. JLR Chief Executive Officer Ralf Speth said: "As part of our long-term

strategy for the JLR business, we will design, engineer and manufacture a new family of advanced engines."

Nissan plans to double plant capacity

Japanese auto Nissan plans to ramp up the annual capacity of its facility at Orgadam near Chennai in Tamil

Nadu from the current 2 lakh units to 4 lakh units by 2012. The company is a study for the same. The

company in a joint venture with France-based Renault had invested Rs. 4,500 crore spread over a period of

seven years for the facility. In Jul, 2010, the company had formally unveiled its first hatchback Micra

manufactured at this facility. The company has planned to launch a series of new models and has unveiled

the second product the mid-size sedan ―Sunny‖ recently. The company has set a target of retailing 40,000

units this fiscal and plans to take dealership network to 60 from 45 by Mar 2012.

Maruti Suzuki resumes production of the SX4 sedan at Manesar

Maruti Suzuki India Ltd resumed production of the SX4 sedan after almost a month since labour unrest hit

operations at the company's Manesar factory. Maruti Suzuki had stopped making the SX4 and A-Star models

after workers struck work at its Manesar plant on Aug 29. Although the company had been able to resume

the Swift hatchback production by using temporary staff and plant supervisors, it had decided to wait for the

Manesar plant to be fully operational before it resumed production of the SX4 and A-Star models. Maruti

Suzuki said it made 725 Swift cars at its two factories in Manesar and Gurgaon. Manufacturing of Swift is

being shared between the Manesar and Gurgaon plants till production at Manesar reaches normal levels.

India's largest carmaker said it added 120 workers at the strike-ridden Manesar plant to take the total

number of workers there to 1,500. Production at the Manesar unit, which typically makes 1,200 units of the

Swift, SX4 and A-Star models a day, has been severely impacted since the strike began.



Nissan India targets three-fold growth in sales after Nissan Sunny launch

Japanese car manufacturer Nissan targets over three-fold growth in sales in India in 2011, a company

official said. "Nissan India sold 13,000 cars in 2010. In 2011, we are aiming to sell 40,000 cars", Nissan

India Managing Director Kiminobu Tokuyama said. Launching its mid-segment sedan Sunny here on

Monday, he said the capacity of the Chennai plant would be doubled from the current two lakh per annum

by 2015. The company would invest Rs.4,500 crore till 2015, out of which Rs.2,800 crore has been already

been done. Tokuyama said Nissan would launch five more models by 2015, of which one would be a Multi

Utility Vehicle (MUV). Nissan India's dealership network would increase from 80 to 100 by next year, he

added.

Honda Siel launches Brio at base price of Rs.395,000, ex-Delhi

Having burnt its fingers with the pricey Jazz, Honda Siel India Ltd is now looking to make amends by

offering its new hatchback model Brio at a bargain. The company launched the Brio with an entry-level price

tag of Rs.395,000, ex-Delhi. The Brio would be competing with Chevrolet Beat, Ford Figo, Hyundai i10,

Maruti Suzuki Ritz, Nissan Micra and Toyota Kirloskar's Liva.

Nissan Motor India may launch diesel variant of sedan Sunny by Jun

Nissan Motor India Pvt Ltd will look to launch the diesel variant of its first sedan Sunny by Jun to capitalise

on the spurt of demand for diesel cars in the Indian market, Dinesh Jain, chief executive officer, Hover

Automotive India Pvt Ltd told.

Maruti makes 670 Swift cars; to up output in coming days

Maruti Suzuki said it hopes to scale up production in the coming few days, as employee strength steadily

goes up at its plant in Manesar, where workers have struck work since Aug 29 against the company's

insistence on a "good conduct" bond.

Maruti says made 700 Swift units; car's bookings at 108,000

Maruti Suzuki India Ltd said it manufactured total 700 units of the Swift hatchback at its two factories in

Manesar and Gurgaon in Haryana. The company said bookings of the Swift model have touched 108,000.

Ratan Tata among corp honchos on revamped NMCC

Industry captains, including Tata Group head Ratan Tata and CMD of TVS Motor Venu Srinivasan are among

members of the National Manufacturing Competitiveness Council (NMCC), reconstituted by the government.

Maruti adds 200 workers at Manesar plant as strike enters 25th day

Maruti Suzuki India Ltd said it has "brought in" 200 trained people to join production at the Manesar plant,

as the employee strike at the unit entered the 25th day.

Govt finalising national auto body; board likely to begin ops Dec

The Department of Heavy Industry is close to finalising its plans for the National Automotive Board, a

government-led body that would ensure sustainable development of the domestic automotive sector.

International Tractors sets up dealership in Myanmar

International Tractors Ltd, a part of the Sonalika group, has expanded its operations to Myanmar by setting

up a dealership earlier this month, a company release said.

Wabco India to set up Rs.100 mn manufacturing plant in Lucknow

Wabco India Ltd will set up a commercial vehicle component manufacturing plant in Lucknow, Uttar Pradesh,

at an investment of Rs.100 mn, the company told.

Edgy Maruti tells vendors FY12 sales growth may, at best, be flat

Maruti Suzuki India Ltd has recently told its component suppliers that the carmaker is unlikely to report a

growth in sales in the current financial year ending March, one of the company's largest vendors told.

JK Tyre plans to raise overseas sales to offset domestic slowdown

JK Tyre & industries Ltd is looking to increase its sales in some of the overseas markets to offset the fall in

demand in the domestic market, Director, Marketing, A.S. Mehta told.

Sonalika Group to launch sub Rs.200,000 tractor soon

Punjab-based Sonalika Group plans to launch a tractor priced below Rs.200,000 to target small and marginal

farmers, President - international business Rajeev Wahi told.

TomTom launches car navigation products in India



The Netherlands-based automobile navigation system maker TomTom announced expanding its businesses

in India, with the launch of products for car buyers in the country.

Maruti Suzuki resumes A-Star hatchback production at Manesar

Maruti Suzuki India Ltd has resumed production of all the three models at its Manesar unit that were being

made at the plant earlier, but the company is still not describing the situation as normal.

Hero MotoCorp sees FY12 demand hit if high interest rates persist

Hero MotoCorp Ltd has said demand for automobiles would be dampened in 2011-12 (Apr-Mar) if interest

rates remained high.

Atul Auto extends rights issue closing date to Oct 14 from Sep 29

Atul Auto Ltd has extended the closing date of its rights issue to Oct 14 from Sep 29, the company informed

the Bombay Stock Exchange.

CRISIL Research lowers FY12 car sales growth forecast to 0-3%

CRISIL Research expects domestic car sales to grow at a mere 0-3% in the current financial year that

started March due to hike in interest rates and rising fuel prices.

Ashok Leyland prices LCV Dost at 379,000-437,000 rupees ex-Mumbai

Nissan Ashok Leyland Powertrain Ltd launched a new light commercial vehicle Dost, priced between 379,000

rupees and 437,000 rupees, ex showroom, Mumbai.

Fiat India says to begin selling Linea in Sri Lanka this month

Fiat India Automobiles Ltd announced its plans to export the Linea sedan to Sri Lanka and also to various

other right-hand-drive markets.

Maruti Suzuki aims to double sales outlets to 2,000 by 2015

India's largest carmaker Maruti Suzuki India Ltd said it plans to double its sales outlets to 2,000 by 2015.

"We target to double our sales network..., in line with the company's sales plan," Managing Director and

Chief Executive Officer Shinzo Nakanishi said in a press release.

M&M launches SUV 'XUV 500' priced at 1.08-1.29 mln rupees ex-Delhi

Mahindra & Mahindra Ltd launched its global sport utility vehicle 'XUV 500' at 1.08-1.29 mln rupees ex-

showroom Delhi, with bookings for the three variants starting from Saturday in a phased manner.

Three Bajaj Auto promoters up stake in co by 0.12%-0.21%

Bajaj Auto said three of its promoters Sanjivnayan Bajaj, Sunaina Kejriwal and Rajivnayan Bajaj have raised

their stakes in the company from Sep 23-27 through series of transactions.

CEO says Royal Enfield to more than double capacity by FY13

Royal Enfield aims to more than double its production capacity to 150,000 motorcycles by 2012-13 (Apr-

Mar), Venki Padmanabhan, the chief executive officer of the unit of Eicher Motors Ltd, said.

Honda Motorcycle to invest 10 bln rupees in new Karnataka unit

Honda Motorcycle & Scooter India (Pvt) Ltd, a wholly-owned two-wheeler production and sales arm of Honda

Motors, said it would invest around 10 bln rupees in its two-wheeler plant in Karnataka.

Munjal Auto board approves stock split proposal

Munjal Auto Industries said its board has approved a proposal to split its equity share in the ratio of 1:5.

MARUTI SUZUKI INDIA:

Manufactured 700 units of the Swift hatchback, bookings for the model at 108,000.

Has resumed production of the SX4 sedan almost a month after labour unrest hit operations at the

company's Manesar factory.

Has said production of A-Star car has resumed at its Manesar plant.

SHAH ALLOYS: Is not in a position to redeem foreign currency convertible bonds worth $10 mn that

matured on Sep 22 as the company is under the purview of the BIFR.

TATA MOTORS: The Calcutta High Court will announce the verdict in the Singur land case between the

company and the West Bengal government.

MAHINDRA & MAHINDRA: Has launched its first global SUV, the UV500, in Pune.



MISCELLANEOUS

MISCELLANEOUS:

Govt likely to amend rules to digitise television broadcast.

Bleeding global FIs chop jobs in India.

Onelife Capital IPO opens Sep 28; price band set at Rs.100-110/share.

Official says MCX turnover at record Rs.1.12 trn.

Gold falls 2.8%; worst 3-day LME plunge in 28 yrs.

Fin min source says govt mulling cut in securities transaction tax.

Fin min source says to decide on Oct-Mar borrow calendar Sep 29.

RBI notifies external commercial borrowing norms.

MD says Vadilal Ind to launch 15-20 frozen food pdts in 2 yrs.

Govt reconstitutes National Manufacturing Competitiveness Council.

Reliance Broadcast radio revenue to quadruple by FY16.

StanChart expects downside risks for rupee to persist in near term.

CFO says Reliance Broadcast eyes Rs.10-bn radio revenue by FY16.

PVR cuts ticket price by Rs.50 in 3 Delhi sites for early shows.

Reliance Cap keen to enter banking, expand other major businesses.

FAME INDIA files draft letter of offer with SEBI for Rs.900 mn.

SMEs tweak strategies as Eurozone crisis rages.

SEBI issues guidelines for listing structured pdts, debentures.

Minda Ind signs pact with 2 Japan cos for plastic products JV.

Nifty futures rollover lowest since Febraury.

Fame India rights issue sets stage for Inox, Ambani battle.

New Takeover Code will restrict voluntary open offers.

CBI says ADAG executives may turn approvers.

Pvt equity bigwig Kejriwal quits Temasek to float new fund.

IFCI ups stake in Tourism Finance to 41.54% from 39.43%.

Reliance Spot Exchange launches 100 gm, 1 kg e-gold contracts.

REGULATORY:

SEBI has issued a concept paper on regulating investment advisors and sought feedback by Oct 31.

SEBI has put out draft regulations for investment advisers.

The United Stock Exchange has come under SEBI scanner for alleged concentration of trades in a

single member.

RBI proposes to cut the minimum period banks can hold loans before securitisation, and also the

minimum retention required.

RBI Governor D. Subbarao has said it is important for fiscal consolidation to take firm roots for

monetary policy to take cognisance of growth concerns.

SEBI has asked merchant bankers to disclose performance of past issues in drafts from Nov 1.

SEBI plans to revise interest rate futures rules, to ease rules to help banks, companies and mutual

funds to cover their losses from hardening interest rates.

SEBI has issued new guidelines for listing structured products and market-linked debentures; issuers

must have minimum net worth of 1 bln rupees.

CORPORATE:

The Ministry of Corporate Affairs may give more time to unlisted companies to convert their share

certificates and bonds into dematerialized format.



Metro Hospitals and Heart Institute are in talks with buyout fund Carlyle Group to divest significant

stake in five hospitals to fund expansion.

INVESTMENT:

US companies are looking at investing in energy, education, communications and infrastructure in

India.

Lodha Developers Ltd is raising Rs.8.25 bn to buy back debentures issued to Deutsche Bank in 2007.

FMCG:

Samsung and LG Electronics India has increased prices of consumer durables by 3% due to

weakening of the India rupee and rising input costs ahead of festive season.

INSURANCE:

Insurance Regulatory and Development Authority is planning to allow insurance companies to invest

in derivatives.

INSURANCE: Star Health to launch a standalone dental insurance policy in a month.

RETAIL:

Big retailers have reported more than 20% on year rise in same-store sales since May as consumers

buy grocery and other daily use items in bulk packs to secure the best deal on offer.

Shriram, TPG chart strategy to turn around Vishal Retail.

Future Group is closing several stores of its electronic goods chain eZone and moving out of some

cities as part of restructuring the loss-making business.

BULLION:

Prices have turned extremely choppy, magnifying their losses, with a rise in margin calls.

COMMODITIES:

Speculators cut bets as commodity prices rise the most in 19 months. Raw materials tip into their

first bear market since 2008 and investors anticipate more losses.

EQUITY:

Government plans to abolish or substantially dilute securities transaction tax levied on buying and

selling of shares.

EDUCATION:

Subsidy scheme to make higher-education loans more attractive to poor students has failed to meet

its target due to inadequate marketing and lack of coordination among various agencies.

EXCHANGES:

The BSE and the NSE have resolved their long-standing dispute on algorithmic trading.

The BSE and the NSE have agreed to share software platforms that may boost liquidity in equities

and derivatives market and benefit brokers of both the exchanges.

FUNDING:

Samvardhana Motherson plans to raise 17.51 bln rupees via initial public offering.

TRAVEL:

Online travel portal Expedia has signed a joint venture with Air Asia to sell the carrier's flights and

packages, and to operate its own business in Japan, India, Southeast Asia and other East Asian

markets.

Kerala set to achieve 100% financial inclusion

Kerala is set to become the first State in the country to achieve 100% financial inclusion. The formal

announcement in this respect is expected to be made by the end of this month, according to Ms Archana S.

Bhargava, Executive Director, Canara Bank. She said Canara Bank, which is the Convenor of the State Level

Bankers Committee (SLBC), had already covered all the 15 villages allotted to it under the financial inclusion

drive, either by appointing customer service providers or through opening of ‗brick and mortar' branches.

There are a total of 127 villages in the State and the other banks involved in the inclusion exercise have also

committed to complete the task this month itself. Ms Archana said that there are around six lakh villages in

the country and only 30,000 of them have any kind of banking facilities. Similarly, just about 40% of the

country's population have bank accounts. Under the financial inclusion programme, Canara Bank has opened



32.25 lakh no-frill accounts, out of which 1.30 lakh accounts are in Kerala. She said that the total business

of Canara Bank had crossed Rs 5 lakh crore and the target for the year was Rs 6 lakh crore. The bank

opened 170 new branches in the last three months, of which, 100 were in backward and under-banked

areas. The plan was to open another 130 branches in the coming months, taking the total number of new

branches to 300 in the current year. The bank will open an offshore branch in Bahrain in the next couple of

months. Though the bank is holding licences to start branches in South Africa and Germany, it is waiting for

the current global economic situation to ease up before going ahead. It is also looking at the possibility

opening branches in Brazil, Bangladesh and Sri Lanka and a representative office in Japan. Ms Archana said

that Canara Bank was active in granting education loans and had so far given around Rs 4,000 crore through

two lakh accounts. In Kerala, the bank has disbursed Rs 830 crore under the head covering 38,000

accounts.

Australia’s Boost Juice set to enter Indian market

Boost Juice is set to enter the Indian market, adding to a growing list of beverage firms from Australia

catching the fancy of Indian juice and wine aficionadas. Boost Juice has signed an agreement with a local

partner; the implementation details are being worked out. The first of the stores will open in the next 12

months, according to Simon Feiglin of The Riverside Company, a US-based private equity investment

company, which last May bought a 70% stake in the Boost Investment Group (BIG), owners of Boost Juice

Bars and Salsa‘s Fresh Mex Grill. ―India is a high growth market and the climate in many parts of India is

similar to that in Australia,‖ Feiglin said. ―The economic conditions and the climate are both conducive for

folks to appreciate Boost drinks‖, he told Business Standard. The 2000-founded company has 180 stores in

the island-continent and 65 overseas from the UK and South Africa to Singapore and Chile amongst others.

In the past year, Boost Juice opened a store at Shanghai in China. ―We are very excited to be bringing a

world-class, high-quality product to India at an affordable price,‖ Feiglin said. The company‘s range of

nutritional juices and fruit drinks, he said, ―will not disappoint the young, besides a growing middle class‖

with increasing disposable incomes, looking for ready and convenience driven products. Boost Juice offers

healthy juices, smoothies made with fresh fruit and yogurt, and energy drinks with a shot of vitamins,

protein, minerals and antioxidants, all free of preservatives, artificial flavours and colours, he added. The

menu will be similar to that on offer in Australia. ―We will predominantly offer smoothies, juices and drinks,

adapted and modified for the Indian palate,‖ Feiglin added. Boost Juice Bars was founded by Janine and Jeff

Allis in Adelaide and has since expanded throughout Australia and in over a dozen other countries. Since its

creation, Boost Juice has grown with an estimated annual turnover of $100 mn and profits of around $6 mn.

When The Riverside Company bought into Boost Juice the unlisted retailer had an enterprise value of

roughly $65 mn, reports The Age newspaper.

UFO Moviez picks up 26% more in digital cinema systems provider Scrabble Entertainment to

take total stake to 52%

UFO Moviez has picked up 26% equity stake in Scrabble Entertainment, taking its total holding in the

Manmohan Shettypromoted digital cinema systems provider to 52%. UFO, a joint venture between the

Valuable Group and Apollo International, which is in the same business as Scrabble, had bought 26% stake

in the company a few months ago. Both companies help exhibit movies in the digital format, which is

replacing traditional film prints. Shetty, a Bollywood film producer who made a killing in 2007 when he sold

his production house Adlabs Films to the Anil Dhirubhai Ambani Group, had launched Scrabble with 72%

ownership the same year. Following the deal with UFO, his shareholding in Scrabble has fallen to 21%. The

other promoters, Ranjit Thakur and Sunil Patil, hold 27% stake in the company. Private equity firm 3i and

Providence Equity Partners have invested in UFO. Providence recently invested Rs 260 crore in the company.

UFO has 2,350 digital installations across India and Nepal, while Scrabble, India's only 2K digital cinema

initiatives (DCI)-compliant entity, is expanding its footprint to Latin America, the Middle East and Eastern

Europe. It plans to increase the number of its screens from 300 in India to around 2,500 by 2013.

Hollywood's big six studios - Sony, Warner, Disney, Fox, Universal and Paramount - have signed a global

initiative whereby their content would only be released in DCI-compliant screens. "We are planning to invest

over Rs 150 crore to expand the Scrabble DCI screens and we expect, with this infusion, to reach 800-1000

screens in one and half years," Sanjay Gaekwad, managing director of UFO Moviez, said. "This will help

Scrabble Entertainment increase its global footprint. It would have struggled in isolation," said Scrabble's

Shetty.

Sebi announces IDR rights norms



The Securities and Exchange Board of India (Sebi) has amended capital raising and disclosure norms,

allowing issuers of Indian Depository Receipts (IDRs) to launch a rights issue. Also, merchant bankers have

been directed to disclose the performance of their past issues as part of the due diligence certificate.

According to Sebi, an IDR issuer will be allowed to come out with a rights issue after making an application

to all exchanges where the IDRs are listed, and if there is no breach of ongoing material obligations under

the IDR Listing Agreement. IDRs are shares issued by foreign companies and are listed on the Indian

exchanges. It basically gives investors an opportunity to own a share of a foreign company. Currently,

Standard Chartered Plc, which is listed on London Stock Exchange and Hong Kong Stock Exchange, is the

only entity that has listed its IDR in India. The global banking major came out with its IDR issue in May 2010

and was listed on the Bombay Stock Exchange and the National Stock Exchange in June 2010. According to

Sebi, an IDR holder can also renounce the rights in favour of any other person if the home country of the

issuer company does not have any such restrictions. Further, the issue can be cleared on a fast-track basis if

the document has been filed and reviewed by the home country regulator and there are no pending show-

cause notices or prosecution proceedings against the promoters or whole time directors. The issuer also

should have redressed at least 95% of the complaints received from IDR holders before the end of three

months immediately preceding the month of date of filing the offer letter. Meanwhile, investment bankers

while managing public issues will now have to disclose the performance of other issues that they have

managed in the past. Sebi, in the past, has said that merchant bankers need to disclose their track record,

which will help the investor in taking better-informed investment decisions in the primary market. The

investment banking fraternity has, however, not been too pleased with the regulator's concept. Among other

things, the regulator has laid down the format for the abridged prospectus and the disclosures to be included

in the document. The General Information Document will include financial data, summary of business,

promoters and management history, risk factors and the basis of price, among other things.

SAARC members keen on Indian investments, expertise

From the Maldives to the south of India to Bhutan in the north, several SAARC countries are keen to seek

Indian investment and expertise. And not without reason, because 55% of the intra-regional trade potential

in South Asia remains untapped. Realising this, Bhutan, which has recently come up with a revised foreign

direct investment policy and is to shortly announce a new renewable energy policy to promote and develop

renewal energy for its current and future needs, is keen to seek Indian investments in four to five sectors

including power, tourism, construction and industry. ―In the future, there will be openings for smaller power

projects for private sector companies to consider,‖ the Secretary-General, Bhutan Chamber of Commerce

and Industry, Mr Phub Tshering, said. These projects will be below 500 MW, he added. The country is also

inviting investments from India in the proposed education city project. In Maldives, Indian investors can look

at tourism, hotels, ports, airports and fisheries. ―Don't look at the size of the country or the economy. The

world has mns of bns. We are trying to attract them. It is for the Indian business community to explore the

potential in the Maldives. If India does not look into it there are other countries which are equally rich who

can. But we are very comfortable with India. It is our closest neighbour and strategically very important for

us,‖ the Maldives High Commissioner to India, Mr Abdul Azeez Yoosuf, said. Sri Lanka, too, is keen to see

investments from India touch the $ 1 bn level in the next three years from the current level of about $ 200

mn, the Minister for International Cooperation, Dr Sarath Amunugama, said.

RBI notifies external commercial borrowing norms

The Reserve Bank of India has notified the annual external commercial borrowing ceiling for companies at

$750 mn as against $500 mn earlier, and for services sector at $200 mn versus $100 mn. Companies

seeking refinancing of rupee loans via overseas borrowings can use 25% of the money to retire existing debt

under the approval route. The remaining 75% must be used for fresh infrastructure projects, the central

bank said in a notice on its website. So far this fiscal, Indian companies have raised $15.9 bn via overseas

borrowings. On Sep 15, a high-level co-ordination committee on external commercial borrowings also added

yuan to the list of acceptable currencies for raising money overseas but imposed a cap of $1 bn on loans in

the Chinese currency. Economic Affairs Secretary R. Gopalan had then said the $30 bn limit could be raised

if required.

Govt reconstitutes National Manufacturing Competitiveness Council

The government has reconstituted National Manufacturing Competitiveness Council under the chairmanship

of V. Krishnamurthy, the commerce ministry said in a release. The government had set up the council to

serve as a policy forum for credible and coherent policy initiatives in the manufacturing sector, it said.

Currently, Krishnamurthy is also a member of the Prime Minister's Council on Trade and Industry. The



council will comprise one member from Planning Commission, and secretaries from Department of Industrial

Policy and Promotion, commerce and industry, finance ministry, Department of Heavy Industry, micro, small

and medium enterprises ministry, and the director-general of the Council for Scientific and Industrial

Research. Chief Economic Adviser Kaushik Basu, and Indian Council for Research in International Economic

Relations Chairperson Isher Judge Ahluwalia will be the two economists in the reconstituted body, the

release said. Ratan Tata, chairman of Tata Group; Venu Srinivasan, chairman and managing director, TVS

Motor Co Ltd; A.M. Naik, chairman and managing director, Larsen & Toubro; Y.C. Deveshwar, chairman and

managing director, ITC Ltd, among others will represent the industry in the council, it said.

PVR cuts ticket price by Rs.50 in 3 Delhi sites for early shows

Movie exhibitor PVR Ltd has cut movie ticket prices in three locations in Delhi by Rs.50 for shows before

1300 IST to improve footfalls during the early slots. The discounted prices will be available from Monday to

Thursday and will not be applicable on premier class tickets, a company source told. "This exercise is purely

to get more footfalls in the morning shows before 1300 IST that do not have large occupancy rates," the

source said. Prices have been cut at three locations in the city--Priya, Saket and Vikas Puri. The source,

however, said the offer could be modified according to the demand for a movie. "In case of a big release,

the offer may not be valid," the source said.

MD says Vadilal Ind to launch 15-20 frozen food pdts in 2 yrs

In a bid to tap the frozen, ready-to eat market in new cities such as Delhi, Chandigarh and Lucknow, Vadilal

Industries Ltd plans to launch 15-20 new products in this segment in the next two years, Managing Director

Rajesh Gandhi said. He said the planned expansion is expected to take the company's revenues from frozen

food business to nearly Rs.7.5 bn in two years from Rs.3.8 bn now. The company sells frozen food products

under two brands--Quick Treat and Garden Fresh--in Maharashtra, Rajasthan and Gujarat. The company

also plans to introduce locally sourced frozen exotic vegetables such as lettuce, broccoli, zucchini and baby

corn in the domestic market in the next six months, Gandhi said, while addressing a press conference here.

"The frozen food market in India is expected to grow at 25%-50% per annum over the next five years," said

Gandhi.

Redington says no tender offer needed for Turkey co

Redington (India) Ltd has informed BSE that: "Redington International Holdings Limited (RIHL), a step-down

subsidiary of Redington (India) Ltd., had acquired 49.4% stake in Arena Bilgisayar Sanayi ve Ticaret A.S,

Turkey (Arena), a listed Company in Istanbul Stock Exchange, in November 2010. An investor had filed an

application with the Capital Markets Board, Turkey (CMB) requesting a directive to be issued to our

subsidiary Redington International (Holdings) Ltd. (RIHL) to launch a Mandatory Tender Offer (MTO) in

relation to Arena. The CMB decided to turn down this request after which the investor approached a court -

13th Chamber of the Council of State, Turkey. This court subsequently granted a stay of execution on CMB's

decision to decline the request for an MTO. Pursuant to this stay of execution, CMB has sent a

communication to RIHL requiring it to either file an application for launching a MTO to acquire the balance

shares in Arena or make a request seeking exemption from making such a tender offer. This investment by

RIHL was made under the applicable laws which as per legal advice received by us do not require a

mandatory tender offer to be made. We are taking necessary steps to represent this before the appropriate

authorities in order to defend our position under law."

Carol Info gets shareholders' nod to sell nutrition ops to Danone

Carol Info Services Ltd has received shareholder approval to sell its nutrition product manufacturing unit in

Punjab to an affiliate of French company Danone. In Aug, Carol Info Services' parent Wockhardt Ltd had

signed a deal to sell the unit to Danone for around 250 mn euro (Rs.15.68 bn). G&K Baby Care Pvt Ltd, an

affiliate of the Danone Group, will buy the nutrition business and related industrial operations from Carol

Info, which is a contract research and manufacturer for Wockhardt's nutrition products. This was

Wockhardt's second attempt to sell this business after its 2009 pact with Abbott Laboratories, at nearly one-

third the price of the Danone deal, failed due to differences between Wockhardt's secured and unsecured

creditors over rights on the sale proceeds.

Reliance Cap keen to enter banking, expand other major businesses

Reliance Capital plans to enter the banking sector in the near future and is keeping track of regulatory

developments needed to procure a banking licence. The company is currently focusing on unlocking value

across all its major businesses. As a first step, the company has entered into a pact to sell 26% stake in

Reliance Life Insurance to Nippon life Insurance. "This is the largest FDI (foreign direct investment)



transaction in Indian financial services sector and the life insurance space," the release quoted Anil Ambani,

chairman, Reliance Capital, as saying. Early Sep, Reliance Capital had signed a memorandum of

understanding with Nippon Life Insurance to evaluate partnership opportunities across all businesses

promoted by the company. Further, the non-banking financial company is looking to expand its asset

management business into emerging markets and grow its wealth management and private equity business,

the company said.

MMTC gold imports up 24% at 19.5 tn Aug, silver imports down 25%

MMTC Ltd imported 19.48 tn of gold in Aug, up 24% compared with 15.65 tn imported in the corresponding

period last year. In Apr-Aug, imports of the yellow metal were 103.8 tn, up from 90.0 tn the company

imported during the same period year ago. The imports were higher despite near record high prices of the

precious metal in August. On MCX, the benchmark Oct gold hit a record high of Rs.28,286 per 10 gm, up

over Rs.4,000 from previous month. MMTC is the second largest gold importer in India, after Scotia Mocatta.

In Jul, the state-owned company imported 10.75 tn gold, down 58% on year. MMTC's silver imports declined

25% on year to 52.8 tn in Aug, the official said. In Apr-Aug, MMTC imported 563 tn of silver, sharply up

from 460 tn during the same period last year, he said. MMTC's silver imports in July were down 79% on year

to 25.5 tn.

Motilal Oswal denies stake sale plans in any arm

Motilal Oswal Financial Services Ltd ("MOFSL") has informed BSE as under : "In an article in a leading

financial daily dated Sep 27, 2011 it has been inter alia published that Mr. Motilal Oswal - Chairman and

Managing Director of Motilal Oswal Financial Services Ltd (MOFSL) has stated that MOFSL was looking to sell

a little less than 26% stake in its asset management and investment banking businesses and the MOFSL is

in talks with global players to offload a minority stake in these two businesses but nothing has been

finalised. In this regard the management would like to state that Mr. Motilal Oswal, Chairman and Managing

Director, has been misquoted in the news report in financial daily dated Sep 27, 2011. MOFSL has no plans

or Board approval to sell stakes in any of its subsidiaries as of now. In the media interview, Mr. Motilal

Oswal responded to a question by saying that the Company keeps getting offers to take stakes in various

business but has taken no decision on any such offers. If at all, the Company may consider options to sell

small minority stakes in the investment banking or asset management businesses if there is an opportunity

which can add significant strategic value to those businesses.

M&M Financial arm gets IRDA nod to enter reinsurance broking ops

Mahindra Insurance Brokers Ltd, a wholly-owned subsidiary of Mahindra & Mahindra Financial Services Ltd,

has received Insurance Regulatory and Development Authority approval to enter the reinsurance broking

business. Since 2004, Mahindra Insurance Brokers had been offering direct broking and with the composite

broking licence received now, it can now also offer reinsurance broking. Mahindra Insurance Brokers

Managing Director Jaideep Devare said the company had hired a team of reinsurance professionals to handle

the new operation. The team will be headed by Chief Reinsurance Strategist R. Chandrasekaran, who has

over three decades of experience of Indian and global markets through his stint with GIC Re.

India most-preferred new destination for global retailers: Study

India may not have opened its retail industry to foreign investors yet, but it's the most preferred new

destination for global retailers who bet on emerging markets to offset worsening economic conditions in the

developed world. India topped the list in a survey of 323 international retailers about the markets they

entered for the first time last year, done by property agents CB Richard Ellis. "If many retailers are already

entering the Indian market, then I don't think there is so much of an entry barrier," said Neville Moss,

director - head of EMEA Retail Research at CB Richard Ellis. "International retailers will just be more

confident on the sense of ownership given in a foreign country," he added. That could by why several

delegates of global retailers at the annual World Retail Congress in Berlin seem to have taken a wait-and-

watch approach to investing in India. "We think India has the potential but, honestly, we haven't even

studied the market yet," said Janet Grove, vice chair at US department stores chain Macy's, which is now

gungho on China. "India is down the road, but first will be China." According to the CB Richard Ellis study,

which covered 75 countries, eight retailers entered India last year while seven entered second-placed

Turkey. In terms of international retailers present in a country, India still ranks 35 with just about one-

fourth retailers present in the country. China is ranked seventh, with 46% retailers' presence, in the list

topped by the UK with 57.6% retailers present in 2011. New Delhi ranked as the fourth most popular city for

new retail entrants at city level. Retailers are increasingly looking at economies such as India and China,

which have the best growth prospects and are least likely to be affected by austerity measures.



GE to set up integrated manufacturing unit at Pune

General Electric (GE) is investing $200 mn (around Rs 1,000 crore) to set up a new technology

development-cum-manufacturing facility at Chakan near Pune. The unit will create 2,000 jobs and focus on

increasing localising of GE products for the domestic market. GE plans to make healthcare equipments, gas

engines and also assemble and test wind turbines including like FlexEfficiency 50 gas turbine and super-

critical steam turbines for thermal power generation, mainly for the Indian market.The company launched

FlexEfficiency 50 (FE 50) technology, which has the potential to meet the environmental and grid

conditions/norms of the important markets, consisting of India. In India, FE 50 would be aimed at gas-based

power manufacturers in both state-owned utilities and Independent Power Producers.

Saint-Gobain to invest Rs 500 cr in gypsum business

Saint-Gobain Gyproc India, the Indian arm of Saint-Gobain of France, proposes to invest around Rs 500

crore to boost gypsum business in India over the next three years. The company has so far invested about

Rs 300 crore since 2006 and will ow focus on strengthening existing production capacities, beside setting up

new units. The company has three manufacturing units in Haryana, Maharashtra and Karnataka and

manufactures building construction materials like plaster boards, gypsum boards, finishing materials and

jointing materials.

INTERVIEW: IDBI Federal Life COO says new ULIP norms hurt business

Marathon runners know how to pace themselves so they don't lose steam before reaching the finishing line.

Hans Van Wuijckhuijse, a marathon enthusiast and IDBI Federal Life Insurance Co Ltd's chief operating

officer, knows his business is pretty much like a marathon. It's a competitive race, not a dream run, and

only the strong will survive.

SEBI notifies disclosure norms for rights issues of IDRs

The Securities and Exchange Board of India notified disclosure norms for rights issues of Indian depositary

receipts, according to a report in the Mint. The capital markets regulator has asked companies to disclose, in

the offer document, comparison of accounting ratios of the issuer along with industry average and that of

the peer group. There should be consistency in the comparison of financial ratios of the issuer with

companies in the peer group to justify pricing of such rights issues, the report said. Standard Chartered Plc

is the only company to have its IDRs listed in India.

FDI in multi-brand retail soon, Pranab tells foreign investors

The Finance Minister, Mr Pranab Mukherjee, has assured foreign investors that foreign direct investment

(FDI) would soon be allowed in multi-brand retail. ―A consensus on allowing FDI in multi-brand retail is

being evolved and will be operationalised in the near future,‖ Mr Mukherjee said in his address at the India

Investment Forum in New York. Currently, foreign investment is not allowed in multi-brand retail. In the

case of single-brand outlets, foreign investment is allowed up to 51%. In cash and carry or wholesale trade,

up to 100% is allowed.

Sanmar group to invest $1.3 bn in Egypt

TCI Sanmar Chemicals SAE, the Egyptian division of the Sanmar Group plans to invest USD 1.3 bn in an

integrated project to produce annually 2.75 lakh tonnes of caustic soda and 400 tonnes of poly vinyl chloride

(PVC) at its plant in South Port Said, Egypt. The Sanmar Group which manufactures caustic soda, chlorine

and hydrogen at its plants in Tamil Nadu, Puducherry and Maharashtra in India, had acquired the Egyptian

company Trust Chemical Industries LLC (now TCI Sanmar Chemicals SAE) in March 2007.

Shoppers Stop opens 6 mothercare stores across India

Shoppers Stop Limited has informed the Exchange that the Company has opened 6 Mothercare stores as

'Shop in Shop' stores within Shoppers Stop at (1) Garuda Mall-Bengaluru.(2) Prozone Mall- Aurangabad. (3)

Indore, (4) Inorbit - Pune.(5) Shymala-Chennai and (6) Rohini- New Delhi. With opening of these stores, the

Company has now 33 'Mothercare' stores with 6 stores on standalone and 27 stores on shop in shop basis.

Dabur India sets up export-oriented beverage unit in Sri Lanka

Dabur India Ltd said it will set up an export-oriented manufacturing unit in Sri Lanka with an initial

investment of $15 mn. Spread over 50 acres in Gampaha near Colombo, the unit will be commissioned by

Aug-Sep 2012, the company said in a release. The plant, which will produce a range of fruit-based

beverages, will employ 75 people that will be raised to around 200 by 2013-14 (Apr-Mar), the release said.



SEBI asks merchant bankers to disclose performance of past issues

The Securities and Exchange Board of India has asked merchant bankers managing public issues of Indian

companies to disclose price performance of past issues managed by them. Merchant bankers will also have

to enclose a due diligence certificate after submitting it to the regulator, SEBI said in a notice on its website.

P&G cuts Whisper Ultra 7-unit pack price by 43% to Rs.49

Procter & Gamble Hygiene & Health Care Ltd has cut prices of the seven-unit pack of its sanitary napkin

brand Whisper Ultra by 43% under a limited period offer, dealers said. Packs from the September batch now

cost Rs.49 under the limited period offer, as against the original price of Rs.70. P&G Hygiene also sells

sanitary napkins under the brand names Whisper Maxi and low-cost Whisper Choice.

IRDA asks insurance cos to extend scope of critical illness cover

The Insurance Regulatory and Development Authority has asked companies selling home insurance

packages to extend the scope of critical illness cover to include home loan repayment benefit as well. A

home insurance package covers critical illnesses, permanent total disability, loss of job and fire and

burglary.

FOCUS: Rupee's fall, global worry to keep stock mkt on tenterhooks

A bleak outlook for global economies, coupled with a steep fall in the Indian currency against the dollar,

forced traders to press the "panic button", and experts are bracing for another similar sell-off in the near

term.

Tata Chemicals arm, 2 US cos in pact to make, market dry sorbents

Tata Chemicals Ltd's step-down subsidiary, Tata Chemicals (Soda Ash) Partners, has entered into a pact

with two US-based companies--Church & Dwight Co and FMC Corp--to form an equal partnership for

manufacturing and marketing dry sorbents, the Tata Group company said in a press release.

Warren Buffett's Lubrizol, Astral to set up $245 mn unit in Dahej

Warren Buffet-managed specialty chemical company, Lubrizol Corp and Ahmedabad-based Astral Poly

Technik Ltd have decided to jointly invest $245 mn in setting up a chlorinated polyvinyl chloride plant in

Dahej, a Gujarat government release said late Wednesday.

RBI OKs panel's suggestions on security, risk mgmt of card usage

The Reserve Bank of India has accepted a working group's recommendations on measures to be adopted by

banks to tackle security issues and risk mitigation in respect of card transactions, a notification on the

central bank's website said.

SEBI notifies new Takeover Code, open offer size raised to 26%

The Securities and Exchange Board of India notified the much-awaited amendments to the Takeover Code,

making it mandatory for an entity, which buys more than 25% in a listed company, to make an open offer to

minority shareholders for at least 26% of the total issued capital of the company.

New takeover code may bring EIH in focus on RIL, ITC slugfest hope

The notification of the new Takeover Code by the Securities and Exchange Board of India may bring EIH Ltd

stock back into action, with prospects of either ITC Ltd or Reliance Industries Ltd raising their holding in the

company, market participants said.

Balmer Lawrie plans online travel ops, eyes 1-bn-rupee sales 2013

Balmer Lawrie & Co Ltd plans to launch online ticketing operations by March, and expects revenue from

online ticket sales to be around Rs.1 bn within a year, Chairman and Managing Director S.K. Mukherjee said

at the company's 94th annual general meeting in Kolkata.

Fin svcs secy says shortlisted candidates for LIC chief post

A government-appointed panel, chaired by Finance Secretary R.S. Gujral, has shortlisted eligible candidates

for the post of the chairman of state-owned Life Insurance Corp of India, D.K. Mittal, secretary –

Department of Financial Services in the finance ministry, said.

BPTP, JPMorgan appoints consultants to value assets, plan exit

BPTP Ltd and JPMorgan Chase and Co have appointed Jones Lang LaSalle India and DTZ International

Property Advisors to value BPTP's assets. Harbour Victoria Investments Holdings Ltd, an affiliate of JPMorgan

that holds 3.86% in property developer BPTP, seeks to exit its investment.



Blackstone plans to sell India fund Inc to Aberdeen Asset

Blackstone Group, the private equity firm, is exiting its biggest India-focused close-ended mutual fund

scheme, India Fund Inc. It will transfer the management of the fund to Aberdeen Asset Management Asia.

The deal awaits stockholders' approval on Nov 16.

Reduced duty drawback to hit carpet exports: KCCI

Kashmir Chamber of Commerce and Industry (KCCI) has asked the Centre to review its decision to reduce

duty drawback on export of carpets, saying that the industry is already under pressure due to economic

slowdown and volatile situation in the valley in the past three years.

India to take decision on multi-brand retail: Sharma

"Very few sectors are left, where sectoral caps are there and we are very actively engaged in talking to the

stakeholders, what more we can do. There will be more policy pronouncements soon," Commerce and

Industry Minister Anand Sharma told PTI here.

Promoter Gurnam Arora ups stake in Kohinoor Foods to 16.41%

Gurnam Arora, one of the promoters of Kohinoor Foods Ltd, has raised stake in the company to 16.41%

from 16.07%. Arora bought 96,500 shares of Kohinoor Foods from the open market on Sep 21, taking his

total tally to 4.62 mn shares.

Confidence Trading to allot 10 mn shrs to non-promoters

Confidence Trading Company Ltd has informed BSE that a meeting of the Board of Directors of the Company

will be held on Sep 27, 2011, inter alia, to allot 1,00,00,000 (One Crore) Equity shares on preferential basis

to Non-Promoter at Rs.15 each (i.e. including a premium of Rs.5 per share).

SEBI proposes investment advisor regulations, seeks views by Oct 31

The Securities and Exchange Board of India released a concept paper on regulating investment advisors,

wealth managers and private bankers with a proposal to make it mandatory to register with the regulator to

carry on the activity of offering investment advice.

RBI eases external commercial borrow norm for service sector units

The Reserve Bank of India said that it would consider the external commercial borrowing proposals into

service sector units from foreign equity holders and group companies under the approval route, a release

said.

INTERVIEW: Cosmo Films eyes Africa foray, mulls inorganic options

With operations in India, US, Netherlands and Korea, packaging films maker Cosmo Films Ltd is now turning

its attention towards Africa in a bid to cash in on the growing demand for packaging films in the region.

StanChart expects downside risks for rupee to persist in near term

The rupee is likely to decline against the dollar in the short term on rising fear the European debt crisis may

spread to more economies, and due to limited intervention by the Reserve Bank of India, Standard

Chartered said in a report.

HMT Ltd appoints SG Sridhar as CMD

HMT Ltd has informed BSE that Shri S. G. Sridhar has been appointed as Chairman & Managing Director of

the Company with effect from Sep 19, 2011, vide Presidential Order dated Sep 19, 2011, vice Shri A. V.

Kamat who superannuated from the Company on Mar 31, 2011.

DQ Entertainment in 5-yr multi-mn dollar pact for Jungle Book

DQ Entertainment International said has signed a five-year multi-mn dollar guarantee pact to receive royalty

and licensing fee from SMC Entertainment for licensing and video sales rights in the US for the 'Jungle Book'

animation television series, a company release to the stock exchanges said.

Varkey makes open offer for 20% more in Everonn at Rs.528/shr

Dubai-based Varkey Group Ltd has made an open offer for up to 20% more shares in Everonn Education Ltd

at Rs.528 per share, according to a notice in the Business Standard newspaper.

Corp affairs min to send competition policy to Cabinet early Dec

The corporate affairs ministry hopes to send the proposed National Competition Policy to the Union Cabinet

for its consideration by early December, Corporate Affairs Minister Veerappa Moily said.



Essar Capital ups stake in India Securities to 49.74% from 44.32%

Essar Capital Ltd has raised its stake in the Bombay Stock Exchange-listed India Securities Ltd to 49.74%

from 44.32% by acquiring 47.5 mn shares, the latter said in a notice to the bourse.

SRF buys back 1.08 mn shares from open market as on Sep 20

SRF Ltd bought back 1.08 mn shares from the open market for around Rs.327.80 mn as on Sep 20,

according to a notice in The Financial Express newspaper.

Zee Entertainment buys back 11.8 mn shares for Rs.1.4 bn

Zee Entertainment Enterprises Ltd bought back 11.82 mn shares till Sep 21 for around Rs.1.43 bn through

the open market, it said in a notice in The Financial Express newspaper.

Tiger's tale ends - Pataudi dies of interstitial lung infection

Legendary Indian cricketer Mansur Ali Khan, the Nawab of Pataudi, passed away after battling a chronic lung

infection.

Stockists say ITC ups some cigarette prices by up to 10%

ITC Ltd has increased the prices of its premium cigarette brand Classic by Rs.10 for a pack of 20, and mid-

sized brand Wills Navy Cut by Rs.4 for a pack of 10, stockists told.

Eveready expects French subsidiary to be profitable in 2-3 years

Eveready Industries India Ltd's French subsidiary Uniross, which manufactures rechargeable batteries, is

likely to turn profitable in the next two-three years, Non-Executive Chairman Deepak Khaitan said.

Film 'Mausam' movie to see 60-80% occupancy over opening weekend

Mausam, the Pankaj Kapur film that releases in theatres across the world, is expected to have a good run at

the box office in India, with 60-80% occupancy over the weekend, according to leading exhibitors.

VA Tech Wabag gets 12.9-mn-euro orders for water treatment plant

VA Tech Wabag Ltd has received orders worth 12.9 mn euros for wastewater treatment plants and providing

filtration technologies to civic amenities in Switzerland, the company said in a press release.

WB govt invites paper industry to open closed units

The West Bengal government has asked the paper industry to reopen closed units in the state to help

increase employment.

Indian bourses beat global leaders with CEO pay hike

The Indian stock exchanges may not rank high in volume of business done, but they have beaten global

market leaders in pay hikes to their top executives.

INTERVIEW: Reliance Broadcast radio revenue to quadruple by FY16

Reliance Broadcast Network Ltd expects its radio business to quadruple over the next four years with the

government gearing up for the phase-III auction of radio licenses for private players.

Fin min source says govt mulling cut in securities transaction tax

The government is mulling a cut in the securities transaction tax levied on buying and selling of shares, a

finance ministry official said.

Fin min source says to decide on Oct-Mar borrow calendar Sep 29

Officials of the finance ministry and Reserve Bank of India will meet on Sep 29 to decide on Oct-Mar

government borrowing calendar, a senior finance ministry official said.

Varanasi microfin co Utkarsh gets 250 mn Rs. from PE investors

Utkarsh Micro Finance Pvt Ltd has raised 250 mn Rs. from a clutch of investors led by Norwegian

Microfinance Initiative-managed NMI Frontier Fund KS.

INTERVIEW: I-Sec PD head says corp bonds gave more revenue vs gilt

The rise in government bond yields since the beginning of the current financial year has hit treasury profits

of most banks and the net interest income of market making primary dealers.

PG Electroplast shr up 130% in 2 days since debut on operator play

PG Electroplast Ltd has been among the top volume grosser in the market ever since its debut on bourses

on Monday, seeing a cumulative of 88.8 mn shares change hands on both exchanges.



CRISIL says Indian GDRs of 2010 returned negative 52% until Sep 15

Global depository receipts issued by 40 Indian companies in 2010 have accrued negative 52% returns on an

average until Sep 15, rating agency said in a report.

INTERVIEW: JVL Agro sees turnover rising to Rs.50 bn in 4 yrs

Uttar Pradesh-based JVL Agro Ltd sees its turnover more than doubling to Rs.50 bn by calendar year 2015

from 21.80 bn Rs. in 2010-11, according to Director Adarsh Jhunjhunwala.

Google to use films to push market share in India

Google said it has tied up with Bollywood actor Shahrukh Khan''s production company Red Chillies

Entertainment for promoting his coming film Ra.One.

Gold decline adds glitter to jewellery exporters

A sharp fall in gold prices is a good news for gems and jewellery exporters who will be able to source yellow

metal at lower rates and compete better in the global market, industry sources said.

Hotel rates in India increased just 1% in H1 of 2011

Hotel room rates in India increased just one% in the first half of this year, thus making the country one of

the attractive destination for leisure and business travellers, according to a survey.

India exploring ways to criminalise 'foreign bribery'

The government said it was "constantly exploring" ways to ban and punish foreign officials involved in

corrupt practices in India by becoming a party to global Anti Bribery Convention.

Ramco to focus on small and medium enterprises

Ramco Systems, a leading software company, said it was targetting a 30-35% growth in its turnover for

fiscal ending Mar 2012 and would focus on small and medium enterprises for its cloud based solutions.

Punjab asks employees to give details of property

The Punjab Government said it asked its employees to submit details of purchasing any movable or

immovable property, having value more than one month's salary, to prescribed authorities.

Punjab announces Amnesty Scheme for defaulters

The Punjab government launched an amnesty scheme, enabling defaulter allottees of industrial plots to

make payment with simple interest of 15%.

LG Electronics hikes product prices by up to 6%

Electronics and IT products maker LG Electronics India announced a hike of up to 6% in prices of its

products owing to rupee depreciation.

Promoter Future Capital ups Future Ventures stake by 0.08% to 3.08%

One of the promoters of Future Ventures India Ltd, Future Capital Investment Pvt Ltd, has raised its stake in

the company to 3.08% from 3.00%, the former said in a notification to the National Stock Exchange.

BSE, NSE resolve long-standing dispute over algorithmic trading

Bombay Stock Exchange and National Stock Exchange have resolved their long-standing dispute on

algorithmic trading, the former said in a release.

RBI Khan says need FX intervention with flexible currency policy

Reserve Bank of India Deputy Governor H.R. Khan emphasised the need for effective intervention to address

excessive volatility in foreign exchange markets but said it must be combined with a flexible currency policy.

BSE F&O volume surges 66 times as measures to up liquidity kick in

The volume in the derivative segment shot up a whopping 66 times on the Bombay Stock Exchange, which

marks the launch of its incentive plan aimed at deepening its market.

SEBI says 1-bln-rupee net worth must to issue listed structured pdt

The Securities and Exchange Board of India issued a fresh set of guidelines for listing structured products

and market-linked debentures, making it mandatory for issuers of such instruments to have a minimum net

worth of 1 bln rupees.

Bombay Stock Exchange gets SEBI nod for SME exchange



The Securities and Exchange Board of India has approved the Bombay Stock Exchange's proposal to set up

an exchange for small and medium enterprises, the exchange said in a release.

Govt imposes 10% ad valorem duty on phthalic anhydride imports

The Director General (Safeguards) has imposed an interim safeguard duty of 10% on import of phthalic

anhydride from South Korea, Israel, and Taiwan to protect domestic manufactures.

Datamatics to set up 700-seat delivery centre in Puducherry Oct

Datamatics Global Services Ltd plans to set up a 700-seat delivery centre in Puducherry in October, the

company said in a release. The new centre will be the company's fifth in the country, and third in the south

after Chennai and Bengaluru.

Eon Electric to buy back 6.45% equity via open market purchases

Eon Electric will buy back up to 6.45% of the company's paid-up capital or a minimum of 450,000 equity

shares at a price not over 130 rupees per share via open market purchase, the company said in a notice.

Fin min source says huge scope to make corp bond mkt more vibrant

The government is working on a proposal to broad-base and make the corporate bond market more vibrant,

a senior financial ministry official said.

Bharti Retail enters west India, opens 'easyday' store in Mumbai

Bharti Retail Ltd, an arm of Bharti Enterprises Ltd, has entered the west India market by opening its first

'easyday' store in Mumbai, the company said in a release.

IFCI ups stake in Tourism Finance to 41.54% from 39.43%

IFCI Ltd increased its stake in Tourism Finance Corp of India Ltd to 41.54% from 39.43% between Aug 5

and Sep 26, the former said in a notice to the National Stock Exchange.

RELIANCE CAPITAL:

Plans to enter the banking sector and is keeping track of regulatory developments needed to procure

a licence.

The company will mull a bonus share issue shortly.

HOTEL LEELA VENTURES: Serious differences have cropped up with the Airport Authority of India over the

terms of renewal of the lease agreement of the land where Hotel Leela in Mumbai is situated.

MAHINDRA & MAHINDRA FINANCIAL SERVICES: Insurance Regulatory and Development Authority has

allowed its arm Mahindra Insurance Brokers to start reinsurance broking.

EMAMI: Company-backed AMRI Hospitals exits race to acquire Ahmedabad-based Sterling Hospitals, which

is majorly-owned by Actis.

ESAB INDIA: Melrose Plc not to proceed with offer to acquire ESAB's parent Charter International.

ITC: Has bought 26% stake in Logix's five-star property at Noida; to invest 1 bln rupees in the project.

MAXWELL INDUSTRIES: Has approved the buyback of 5% redeemable preference shares of 100 rupees

each up to 10% of the total paid-up capital and free reserves of the company.

MINDA INDUSTRIES: Has signed a pact with two Japanese companies to form a joint venture for

manufacturing plastic products.

STERLING HOLIDAY RESORTS INDIA: Rakesh Jhunjhunwala and Radhakrishna Damani have invested

800 mln rupees for a 14.2% stake in the company.

RELIANCE BROADCAST NETWORK: Expects its radio business to quadruple revenue over the next four

years.

VADILAL INDUSTRIES: Plans to launch 15-20 new products in the frozen foods segment in the next two

years.

MOTILAL OSWAL FINANCIAL SERVICES: Has said it has no plans to sell stake in any arm as of now.

MMTC: Imported 19.48 tn gold in Aug, up 24% from 15.65 tn imported a year ago.

EON ELECTRIC: To buyback shares via open market for up to Rs.130 Per share.

FAME INDIA: Files draft offer letter with SEBI for rights issue.

CINEMAX INDIA: To mull demerger of theatre exhibition business on Sep 30.

DIL: To acquire 30% in Evotec India for 112.93 mln rupees.



IPO Watch

IPO Alert: Indo Thai Securities price band Rs.70-84 /share

Indo Thai Securities Ltd has fixed the price band for its initial public offering of 40 mn shares at Rs.70-84 for

a share of face value Rs.10. The issue will open on Sep 30, and close Oct 5. The price to earnings ratio at

the upper end of the price band is 47.4 times the earnings per share based on the company's 2010-11 (Apr-

Mar) earnings, and 39.5 times at the lower end of the price band. Shares of the Indore-based financial

services company will be listed on the National Stock Exchange and the Bombay Stock Exchange. The draft

red herring prospectus was filed with the Securities and exchange Board of India on Apr 27. Corporate

Strategic Allianz Ltd is the book running lead manager to the issue.

IPO Alert: M and B Switchgears to use 75% proceeds for power unit

Transformer maker M and B Switchgears Ltd plans to use around 75% of the proceeds from its 5-mn-share

initial public offering to fund its 4-MW solar photovoltaic plant at Rajgarh in Madhya Pradesh, Director Vikalp

Mundra said. The Indore-based company plans to raise Rs.900 mn at the lower end of the IPO price band of

Rs.180-186 per share, and Rs.930 mn at the upper end. The issue opens Sep 29 and closes on Oct 5. The

company plans to use the remaining proceeds in meeting its issue expenses and general corporate

expenses. The company is already constructing a 2-MW solar photovoltaic plant at Rajgarh, which will

become operational from Nov. The new 4 MW project is scheduled to be operational by Mar. The issue

constitutes 25% of the post-issue paid-up equity capital of the company, according to the red herring

prospectus filed by the company. The promoters stake in the company will be diluted to 75% after the issue.

Qualified institutional buyers will be allowed to subscribe up to 50% of the issue, the company said. ICRA

has graded the company's offering at 'IPO Grade 2/5', which indicates below average fundamentals, the

notice said. D & A Financial Services Pvt Ltd is the book running lead manager and Bigshare Services Pvt Ltd

is the registrar to the share issue.

IPO Alert: Taksheel Solutions sets price band of Rs.130-150/shr

Taksheel Solutions Ltd will raise up to Rs.825 mn via an initial public offer of 5.5 mn shares. At a press meet

to announce the IPO, the company said it has set a price band of Rs.130-150 a share for the issue. At the

top end of the price band, the issue is priced at a price-to-earnings multiple of around 9 times 2010-11

(Apr-Mar) earnings per share, and at the lower end, around 7 times. The Hyderabad-based information

technology and telecom software company plans to use the IPO proceeds to set up software development

centres in special economic zones in Andhra Pradesh. The company plans to use Rs.200-250 mn of the

proceeds for an acquisition in North America. Some of the funds would be used for working capital

requirements. PNB Investment Services Ltd is the book-running lead manager for the issue.

IPO Alert: Swajas Air pushes closing date to Oct 5, cuts price band

Volatility in the stock market has started taking a toll on India Inc's plans to raise funds via equity,

particularly initial public offerings. As investors' appetite for riskier assets shrinks, Swajas Air Charters Ltd's

IPO has suffered. The company has been forced not only to extend its IPO by five trading days but also to

cut the price band. Onelife Capital Advisors Ltd, whose 3.35-mn-share issue opened Sep 28, has also felt the

heat. The company received bids for just 600 shares. The issue, the price band for which has been set at

Rs.100-110 a share, closes on Oct 4. Then there's M and B Switchgears Ltd and its 5-mn-share maiden

issue. The issue opened today but attracted bids for less than 5,000 shares. The issue is priced at Rs.180-

186 and will close on Oct 5. The initial offer of Swajas Air, a non-scheduled airline operator, was to close

Sep 28 but was extended to Oct 5 after the 375-mn-rupee IPO received bids for only 1% of the issue size.

Swajas Air cut the price band for the IPO to Rs.84-90 a share from Rs.90-100 earlier to make it attractive to

investors. At the lower end of the original price band, the shares were valued at 23.20 times the company's

2010-11 (Apr-Mar) earnings per share of Rs.3.88, and at the upper end, 25.77 times. According to data on

the National Stock Exchange's website, bids in the non-institutional investor category were for 5,400 shares.

The company has reserved 625,000 shares for this category. Retail individual investors have bid for 60,180

shares of the 1.46 mn shares reserved. The qualified institutional investors category did not receive a single

bid. The company has set aside 2.08 mn shares for this category. As Swajas Air's IPO hangs in balance, it

remains to be seen what strategies are adopted by other companies closing their IPOs next week. The initial

offer of Taksheel Solutions Ltd will open Sep 29 and close on Oct 4. Thai Securities Ltd will launch its IPO on

Friday and Flexituff International Ltd on Sep 29.



IPO Alert: PC Jeweller files papers for 45.13-mn-share issue

PC Jeweller Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for

an initial public offering of 45.13 mn shares of face value Rs.10 each. The shares will be listed on the

National Stock Exchange and the Bombay Stock Exchange. Of the total issue, PC Jeweller has reserved

358,500 shares for its employees. The company manufactures and sells gold, diamond, and silver jewellery

through its 20 showrooms across 18 cities in north and central India. PC Jeweller hopes to use Rs.5.69 bn of

the IPO proceeds for expanding its retail stores across India. The company plans to open 10 showrooms in

2011-12 (Apr-Mar) and 20 more by 2013-14. It plans to expand presence in south and west India. The

company also sells gold and diamond jewellery on wholesale basis to local and international jewellery

distributors. PC Jeweller has appointed SBI Capital Markets Ltd and Kotak Mahindra Capital Co Ltd as book-

running lead managers for the issue, and IDBI Capital Market Services Ltd as the co-book-running lead

manager.

IPO Alert: SSIPL Retail seeks SEBI nod for 3.47-mn-share issue

SSIPL Retail Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for

its 3.47-mn-share issue. The issue constitutes 27.24% of the post issue paid-up capital of the company,

which is the largest retailer in India for apparels and footwear major, Nike. Besides its own brand Sierra, the

company manufactures and designs athletic and casual footwear for major brands like Reebok, Puma, Lotto,

Skechers. It also markets products of Levi's and United Colours of Benetton. SSIPL has a pan-India network

of 238 exclusive branded outlets and 12 multi-brand outlets. The company plans to use the IPO proceeds for

expansion of outlets for the Nike brand and for equity investment in subsidiary, SSIPL Lifestyle Pvt Ltd. The

funds will be also used for redemption of 9.3 mn redeemable preference shares of the company held by HBP

Holdings. The Rs.10 face value shares will be listed on the Bombay Stock Exchange and National Stock

Exchange. BOB Capital Markets Ltd and SPA Merchant Bankers Ltd are book running lead mangers for the

issue.

IPO Alert: Times Academy seeks SEBI nod for 4.5-mn-share issue

Times Academy Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India

for an initial public offer of 4.5 mn shares of face value of Rs.10 each. The issue will constitute 36.88% of

the fully diluted post issue paid-up capital of the company, according to the draft prospectus. Times

Academy provides professional education services. Its programmes are offered through its affiliations to

various universities. The company plans to utilise the proceeds of the issue to set up new study centres at

Bangalore, Mumbai, Delhi NCR and Kolkata; to meet its working capital requirements, and for brand

building, it said. The company had reported a loss of Rs.22.2 mn for the year ended Mar on a total income of

Rs.38.8 mn. Shares of the company will be listed on the National Stock Exchange and the Bombay Stock

Exchange. Unicon Capital Services Pvt Ltd is the book running lead manager to the issue.

IPO Alert: PC Jeweller seeks SEBI nod for 45-mn-share issue

PC Jeweller Ltd has filed a draft red herring prospectus with the Securities and Exchange Board of India for

its 45-mn-share initial public offering of shares of face value Rs.10 each. The issue will constitute 25.2% of

the company's post issue paid up capital and the net issue shall constitute 25%. The Delhi-based jewellery

retailer's issue comprises net issue of 44.7 mn equity shares to the public, and 358,500 equity shares for

eligible employees. SBI Capital Markets Ltd and Kotak Mahindra Capital Co Ltd are the book running lead

managers to the issue.



ISSUES ANNOUNCED

Issuer

Size

Shares:Rupees

(mn:bn)

Face

Value

(rupees)

Issue

Price Issue Period Lead Manager

Indo Thai Securities 4.0:N.A 10 70-84 30/09-05/10 Allianz

ISSUES OPEN

Issuer

Size

Shares:Rupees

(mn:bn)

Face Value

(rupees) Issue Price Issue Period Lead Manager

Taksheel Solutions 5.5:0.80 10 130-150 29/09-04/10 PNB Investment

Flexistuff International 6.75:N.A 10 145-155 29/09-05/10 Collins

Onelife Capital Advisors 3.35:N.A 10 100-110 28/09-04/10 Artherstone

M and B Switchgears 5.0:N.A 10 180-186 28/09-05/10 D and A



MERGERS & ACCQUISITIONS

== INDIA-ABROAD ==

GMR INFRASTRUCTURE - PETRONAS INTERNATIONAL Announced: Sep 26

GMR Infrastructure to sell 30% stake in subsidiary GMR Energy (Singapore) Pte Ltd to Malaysia's Petronas.

Status: Ongoing

== INDIA-INDIA ==

OBEROI REALTY - ICICI VENTURES Announced: Sep 29

Oberoi Realty has bought 50% stake in ICICI Ventures.

Status: Complete

DIL - EVOTEC INDIA Announced: Sep 28

Dil Ltd will acquire 30% stake in Evotec India for Rs.112.93 mn.

Status: Ongoing

RANE HOLDINGS - SasMos HET Announced: Sep 28

Rane Holdings buys 26% stake in SasMos HET Technologies.

Status: Complete

==GLOBAL M&A==

DONOVAN DATA SYSTEMS - MEDIABANK LLC

Rival advertising agency systems Donovan Data Systems and MediaBank LLC to merge their businesses; value of the

combined entity is seen at $1.5 bn.

UNITED TECHNOLOGIES CORP - GOODRICH

United Technologies Corp to acquire aircraft component maker Goodrich for $16.5 bn.



RATINGS

CRISIL affirms A1+ on Aegis Logistics' enhanced CP Programme

CRISIL ups rating on Calibre Chemicals' enhanced cash credit

CRISIL ups rtg on Karle International's term loan to B/Stable

CRISIL ups rtg on LT Karle and Co's bank guarantee to A4

CRISIL cuts rating on Balar Exports' packing credit to D

CRISIL ups rtg on Barani Hydraulics India's long-term loan

CRISIL ups rtg on Grace Infra's term loan to BBB+/Stable

CRISIL cuts rtg on Igloo Dairy's term loan to BBB/Stable

CRISIL cuts rtg outlook on International Conveyors cash credit

CRISIL cuts rtg on Priyadarshini Sahakari Soot Girni term loan

ICRA affirms A+(SO) on Karnataka State Financial's bond plan

ICRA affirms A1+mfs on L&T ultra short-term fund

RCC Developers' cash credit gets ICRA BB+

SC Shah Enterprises' long-term fund based limits get ICRA B+

Tirumala Milk Products' fund based facilities get ICRA A+

Dutta Builders & Developers' cash credit gets ICRA BB-(Stable)

ICRA affirms BBB(Stable) on Gulf Oil Corp's term loans

ICRA B+ on Institute of Radiology and Imaging's term loan

Jogma Laminates Industry's cash credit gets ICRA B+

Renaissance Holdings & Developers' term loans get ICRA BB

ICRA affirms BB+(stable) on ABW Infrastructure's term loans

Accord Software and Systems' term loan gets ICRA BBB-(Stable)

ICRA affirms BBB- on Amira Foods' enhanced fund based limits

Fitch B(ind) national long-term rating to ARG Developers

Fitch B(ind) national long-term rating to ARG Housing

Fitch affirms national long-term rating on Ginni Filaments

Fitch affirms national long-term rtg on Rain CII Carbon Vizag

CRISIL A-/Stable on Threads (India)'s enhanced long-term loan

Triton Cold Chain & Logistics' bank loan gets CRISIL B/Stable

Uluberia Metaliks' term loan gets CRISIL D

Shriram Automall India's cash credit gets CRISIL AA/Stable

Soni Auto & Allied Ind's cash credit gets CRISIL BBB-/Stable

CRISIL A2 on Star Rays' enhanced packing credit

Octant Industries' cash credit gets CRISIL BB-/Stable

Sai Srinivasa Bottle Traders' cash credit gets CRISIL B/Stable



Scan Energy & Power's long-term loan gets CRISIL B/Stable

Shlogam Agro's packing credit gets CRISIL A4

CRISIL affirms A-/Stable on Injectoplast's long-term loan

Mahavir Coal Resources' cash credit gets CRISIL BB+/Stable

Mantra Industries' cash credit gets CRISIL BB-/Stable

Meru Industries' term loan gets CRISIL BB+/Stable

CRISIL affirms rtg on Citifinancial Consumer Fin's term loan

Cosmic Ferro Alloys' cash credit gets CRISIL BBB-/Stable

EID Parry (India)' NCD programme gets CRISIL AA/Stable

Godwin Agro Products' term loan gets CRISIL B+/Stable

CRISIL puts Fortis Hospitals' loans on developing rtg watch

CRISIL affirms A1+ on Tamilnad Mercantile Bank's CD programme

CRISIL puts UTV Software's cash credit on positive rtg watch

Big Sam Snacks & Foods' cash credit gets CRISIL B/Stable

CRISIL affirms rtg on Bina Commercial Corp's cash credit

Pennar Industries' long-term bank facilities get CARE A(SO)

Ramdev Chemical Ind's long-term bank facilities get CARE BB+

CARE affirms AA on Raymond's long-term bank facilities

Thermal Powertech Corp India's bank facilities get CARE BBB-

CARE affirms AA- on Kesoram Ind's enhanced bank facilities

Khadkeshwar Hatcheries' long-term bk facilities get CARE BB+

Mohan Charitable Educational Trust's bk facilities get CARE B

Octaga Green Power & Sugar's bank facilities get CARE B+

CARE puts Applabs Tech bk facilities on developing rtg watch

CARE affirms A+ on DSPC Ltd's NCDs

J Kishore Exports' short-term bank facilities get CARE A4+

CARE affirms BBB- on Jindal Rail Infra's bank facilities

CRISIL cuts rating on ST-CMS Electric Co's cash credit

CARE ups rtg on BS Transcomm's long-term bk facilities to BBB-

CARE ups rtg on B&A Ltd's long-term bank facilities to BB+

CARE cuts rtg on ABG-LDA Bulk Handling's bank facilities

CARE cuts rtg on NCS Sugars' long-term bank facilities to D

CRISIL cuts rtg on Asmitha Microfin long-term bk loan facility

CRISIL cuts rtg on Children Education Society's cash credit

ICRA ups rating on Indu Projects' term loans to BBB-

ICRA cuts rating on Kinfotech' term loans to D

ICRA cuts rtg on Ranka-N-Ranka Infrastructure's term loans



ICRA cuts rating on TDI Infrastructure's term loans to D

ICRA cuts rating on Selvakumar Spinners' term loan to BB-

Spark Green Energy (Ahmednagar)'s term loans get ICRA BB

ICRA affirms BBB+ on Unimark Remedies' fund-based limits

ICRA affirms BBB+(Stable) on ABT's term loans

K Chandrakant and Co Intl's fund based limits get ICRA BB+

Kaveri Cotex's cash credit gets ICRA B

ICRA affirms BB-(Stable) on MN Poly Tex's cash credit

Sheel Chand Agroils' term loans get ICRA BB

Maruti Suzuki India's cash credit gets CRISIL AAA/Stable

Precision Auto Industries' long-term loan gets CRISIL D

CRISIL affirms rtg on Tata Ficosa Automotive Systems term loan

CRISIL BBB+/Stable on Thangamayil Jewellery's cash credit

CRISIL BBB+/Stable on The Josco Fashion Jewellers' cash credit

Zuha Leather's cash credit gets CRISIL BB-/Stable

Goldstar Metal Solutions' packing credit gets CRISIL A4

CRISIL BBB+/Stable on Josco Fashion Jewellers' cash credit

CRISIL BBB+/Stable on Josco Jewellers' enhanced cash credit

KBR Infratech's cash credit gets CRISIL BB+/Stable

CRISIL affirms BB-/Stable on Maruti Packagers' cash credit

CRISIL affirms AA+/Stable on Atlas Copco India's cash credit

CRISIL affirms A3 on Brass Copper and Alloy's packing credit

CRISIL BB-/Stable on Cosmo Ferrites' enhanced cash credit

ARG Infra Developers' term loan gets CRISIL B+/Stable

Exicom Tele-Systems' cash credit gets CRISIL B/Stable

Asian Wires and Cables' long-term bk facilities get CARE BB+

CARE affirms BBB on Dolphin Hotels' long-term bk facilities

Gold Star Jewellers' long-term bank facilities get CARE BB-

Overseas Infrastructure Alliance's bk facilities get CARE BBB

CARE affirms BB on Scan Steels' long-term bank facilities

CARE affirms BBB on Ushakiron Movies' long-term bk facilities

ICRA cuts rtg on Precot Meridian's term loan to BBB(Stable)

ICRA cuts rtg on Fertichem Cotspin's fund-based limit to B+

CRISIL cuts rtg on Thermal Systems' cash credit to BBB+/Stable

CRISIL cuts rtg on Bhartiya Samruddhi Fin's subordinated bonds

CRISIL cuts rtg on Drillcon Infra's cash credit to BB-/Stable

CRISIL ups rtg on Hester Biosciences' term loan to BBB-/Stable



ICRA affirms BB(Stable) on Chhabi Electricals' term loan

East India Pharmaceutical's fund based limits get BBB(Stable)

ICRA affirms AAA(Stable) on IRFC's long-term borrowing plan

Karur Vysya Bank's certificate of deposits get ICRA A1+

NHPC's non-convertible redeemable bonds gets ICRA AAA

Shri Ram Rice Mills' cash credit gets ICRA B

Sundaram BNP Paribas Home Finance's CP programme gets ICRA A1+

CRISIL affirms BBB+/Stable on Amrit Bottlers' term loan

CRISIL affirms A+/Stable on Muthoot Capital Services' bk loan

CRISIL affirms BB-/Stable on Press Mach's long-term loan

CRISIL affirms BB+/Stable on Ritesh Export's packing credit

CRISIL affirms D on Sainsons Pulp & Papers' term loan

Fitch puts ORIX Auto's long-term rtg on evolving rtg watch

Raychem RPG's commercial paper programme gets Fitch A1+(ind)

Emmtex Synthetics' long-term bank facilities get CARE BBB-

HDB Financial Services' 10-bln-rupee NCDs get CARE AAA

CARE affirms BB+ on Manish Agro-Tech's long-term bk facilities

SM Teledirect's long-term bank facilities get CARE BB

Sukh Sagar Synthetics' long-term bank facilities get CARE B+

CARE affirms A on Indian Smelting and Refining's bk facilities

Premier Cotspin's term loan gets CRISIL B+/Stable

RMBAY's long-term bank loan facility gets CRISIL B+/Stable

PCH Telecom (India)'s cash credit gets CRISIL BB/Stable

AB Cotspin India's term loan gets CRISIL B+/Stable

AB Chem (India)'s cash credit gets CRISIL BB/Stable

GH Crop Science's cash credit gets CRISIL BB/Stable

Premier Enterprise's cash credit gets CRISIL BB-/Stable

Air India's NCD programme gets CRISIL AAA(SO)/Stable

CRISIL affirms BBB+/Stable on MAS Financial Services NCD issue

CRISIL affirms B on Ram Asra Goyal Edu. & Research's term loan

CRISIL affirms BBB/Stable on Ravin Cables' term loan

CRISIL affirms D on Soma Textiles and Industries' NCDs

CRISIL affirms BBB/Stable on Standard Conduits' cash credit

ICRA cuts International Electron Devices' term loan rtg to D

ICRA cuts Uppal Ferrocast's fund based limits rating to D

CARE affirms A+ on Ajanta Pharma's long-term bank facilities

CARE affirms BBB- on Prakash Oils' long-term bank facilities



CRISIL cuts rtg on Shivali Udhyog's term loan to BB/Negative

ICRA ups rating on Petro Carbon & Chemicals' term loans

CRISIL ups Geo Financial's cash credit rtg to BBB-

CRISIL cuts rating on Swasti Power's enhanced term loan to D

Aditya Infotech's letter of credit gets CRISIL BBB/Stable

Amiya Commerce & Construction's cash credit gets BB+/Stable

IPCA Laboratories' NCDs programmes get CRISIL AA/Stable

Vansh Nimay Infraprojects' term loan gets CRISIL BB-/Stable

Reliance Home Finance's NCDs gets Brickwork AA+

Good Leather Co's cash credit gets CRISIL BBB-/Stable

Krishnna Deep Overseas' cash credit gets CRISIL BB-/Stable

Modern Infra Projects' cash credit gets CRISIL BB+/Stable

Pontiac Merchants' cash credit gets CRISIL BB-/Stable

Super Hi-Tech Engineers' cash credit gets CRISIL B+/Stable

CRISIL ups rtg on Trimex Sands' long-term loan to BB+/Stable

ASL Marketing's cash credit gets CRISIL BB-/Stable

ICRA affirms BBB- on Natural Sugar and Allied's cash credit

ICRA affirms BB+ on Shivam Steels and Tubes' cash credit

ICRA C+ on Sree Variety Marketing Solutions' fund based limits

Apollo Creation's term loans get ICRA B

ICRA affirms BB(Stable) on Asia Woven Sacks' term loans

ICRA affirms IrBBB- issuer rating to Corp of Cochin

Globe Textile India's cash credit gets ICRA BB-(Stable)

ICRA A1+ on National Housing Bank's enhanced CP programme

Fitch B+(ind) national long-term rtg on Ogene Systems India

Fitch affirms national long-term rating to Sharmanji Yarns

Fitch affirms long-term rtg on Shriram Pistons and Rings

Mangalore Cashew Ind's fund based facilities get ICRA BB

CRISIL affirms rtg on Veekayem Textile Mills' cash credit

CRISIL affirms AA-/Stable on Whirlpool of India's cash credit

Fitch A-(ind) national long-term rtg to BG Shirke Construction

Fitch BBB+(ind) national long-term rtg to GVR Infra Projects

Fitch affirms rtg on Maharashtra Jeevan Pradhikaran's bonds

Fitch affirms rtg on Maharashtra Patbandhare Vittiya debt plan

Sri Venkateswara Rice Ind's term loan gets CRISIL BB-/Stable

Srivalli Shipping & Transport's cash credit gets CRISIL D

Stylish Precast's term loan gets CRISIL B-/Stable



Surya Healthcare's term loan gets CRISIL B+/Stable

Aarti Infra-Projects' cash credit gets CRISIL B/Stable

CRISIL affirms BB/Stable on Ankur Chemfood's rupee term loan

Jasch Industries' cash credit gets CRISIL BBB/Stable

CRISIL affirms BB+/Stable on Kalpana Forgings' cash credit

Narmada Agro Foods' term loan gets CRISIL B+/Stable

CRISIL BBB on Sri Adichunchanagiri Shikshana Trust's term loan

PNB Housing Finance's bonds get CARE AA+

Yamunaji Corp's long-term bank facilities get CARE BB+

PBL Transport Corp's cash credit gets CRISIL BB+/Stable

Accord Communications' long-term bk facilities get CARE BB+

CARE affirms BBB+ on Agro Solvent Products' bank facilities

Birla Power Solutions' long-term bank facilities get CARE BB

Essar Bulk Terminal's long term bank facilities get CARE BBB-

CARE puts Fortis Healthcare's bk facilities under credit watch

CARE affirms AA- on Gobal Offshore Services' bank facilities

Methodex Systems' long-term bank facilities get CARE A-

CARE ups rtg on HP Cotton Textile's long-term bk facilities

ICRA cuts rating on BRG Energy's long-term loans to D

ICRA cuts rtg on Ind Barath Energies Maharashtra's term loan

RBI Governor Subbarao's speech at New York University

CARE cuts rtg on Thirumalai Chemicals' enhanced bk facilities

CRISIL ups rtg outlook on Kerala Milk Marketing's cash credit

ICRA cuts rtg on Empee Sugars and Chemicals' fund based limits

ICRA ups rtg on AVR Swarnamahal Jewelry' fund-based facilities

Krishna Godavari Power's long-term loan gets CRISIL BB-/Stable

Multichem Specialities' letter of credit gets CRISIL B+/Stable

OSAW Agro Industries' term loan gets CRISIL BBB-/Stable

Sunfame Ceramic's term loan gets CRISIL B/Stable

Amizara Agencies' fund based limits get ICRA BB-(stable)

ETHL Communications Holdings' NCD gets ICRA A1+(SO)

Fortis Healthcare (India)'s commercial paper gets ICRA A1+

ICRA affirms A4 on H Sherul & Co's enhanced fund based limits

ICRA affirms A1+mfs on HDFC cash management fund

ICRA affirms A1+ on National Cooperative Development bk lines

ICRA affirms AA- on Oriental Hotels' enhanced fund based limit

Quench Soft Solutions' cash credit gets ICRA BB+(Stable)



Fitch BB(ind) national long-term rating to Arena Lifestyle

FITCH affirms BB(ind) on Hansa Metallics' term loans

Fitch BB(ind) national long-term rating on Sai Construction

CRISIL affirms BB-/Stable on VS Export & Import's cash credit

CRISIL affirms BB-/Stable on VUS Timbers' cash credit

CRISIL affirms A4+ on Virtus Exports and Imports' bk guarantee

Worldstel Stainless Steels' cash credit gets CRISIL D

CRISIL affirms BB+/Stable on ZYG Pharma's long-term loan

Fitch affirms national long-term rating on Adhunik Cement

Sicagen India's cash credit gets CRISIL BBB+/Stable

CRISIL affirms BB/Stable on Sri Devi Oil enhanced cash credit

CRISIL affirms A4+ on Sundaram Exports' post shipment credit

CRISIL affirms B+/Stable on Ultimate Fashion Maker's term loan

Unique Tooling Solutions' cash credit gets CRISIL BB/Stable

NN Ispat' long-term loan gets CRISIL BB-/Stable

CRISIL affirms BB-/Stable on Palriwal Ind's cash credit limit

Radhe Krishna Cotton Ind's cash credit gets CRISIL B+/Stable

CRISIL affirms rtg on Raunaq Ice & Cold Storage's term loan

CRISIL affirms rtg on Shree Raj-Rajeshwari Pap-Chem' term loan

CRISIL affirms BBB/Stable on Jinabakul Forge's long-term loan

CRISIL affirms BB-/Stable on Jupax Vanijya's cash credit

Kems Auto Components' cash credit gets CRISIL B+/Stable

Kems Forgings' cash credit gets CRISIL B+/Stable

Cosa Ceramics' term loan gets CRISIL B/Stable

CRISIL affirms AA-/Stable on Fabindia Overseas' cash credit

CRISIL affirms A1+ on Goldman Sachs (India) Securities CP plan

Goodwill Textile Mills' long-term loan gets CRISIL BBB-/Stable

CRISIL affirms BB-/Stable on Hind Polyfabs' rupee term loan

CRISIL affirms BBB/Stable on ITL Industries' cash credit

CARE puts Arani Agro Oil's bk facilities rtg on credit watch

AU Financiers (India)'s term loan gets CRISIL BBB+/Positive

Bansal Educational Trust's term loan gets CRISIL B+/Stable

Belleza Granito's term loan gets CRISIL B+/Stable

Deepak Builders' long-term bank facilities gets CARE BB

John Energy's optionally convertible pref shrs gets CARE BBB

Kartikeya Paper Distributor's bank facilities get CARE BB

L&T Finance's non convertible debentures get CARE AA+



Mittatex Exports' working-capital facilities gets CARE B+

CARE affirms AAA on State Bank of Travancore's bonds

ICRA puts International Hospital's term loans on rating watch

ICRA puts Fortis Hospotel's term loan on developing rtg watch

CARE ups rtg on Asahi Songwon Colors' long-term bk facilities

CRISIL ups rtg on ST Electricals' cash credit to B+/Stable

CARE cuts rtg on Everonn Education's commercial paper to A3

ICRA affirms rtg on Grama Vidiyal Microfinance's term loans

ICRA affirms rtg on Resil Chemicals' fund based facilities

Suguna Poultry Farm's term loans get ICRA A-

Meenakshi Ammal Trust's fund based facilities get ICRA B

Micropack's fund based limits get ICRA BBB-

ICRA affirms BBB/Stable on Pyramid Finance's bank lines

Raja Enterprises' cash credit gets ICRA B+

Meenakshi Ammal Trust's fund based facilities get ICRA B

Micropack's fund based limits get ICRA BBB-

ICRA affirms BBB/Stable on Pyramid Finance's bank lines

Raja Enterprises' cash credit gets ICRA B+

ICRA affirms A+ on Shree Renuka Sugars' enhanced term loans

Avinash Ispat's cash credit gets ICRA BB-

ICRA affirms AA on Deepak Fertilisers & Petrochemicals' NCD

Export-Import Bank of India's bonds gets ICRA AAA

First Blue Home Finance's subordinate NCDs plan gets ICRA AA

Sagun Construction's term loan gets CRISIL B+/Stable

Salasar Cotspin's term loan gets CRISIL B+/Stable

Sree Guru Raghavendra Cotton Ginning term loan gets CRISIL B+

Vibhor Vaibhav Infrahome's cash credit gets CRISIL B+/Stable

MP Jewellers (GB) & Co's cash credit gets CRISIL BB+/Stable

Mahindra & Mahindra Financial's NCDs get CRISIL AA+/Stable

CRISIL affirms BB-/Stable on Maxop Engineering Co's term loan

Narsey Cotton's cash credit gets CRISIL B+/Stable

CRISIL affirms BBB/Stable on Pee Vee Textiles' term loan

Radiant Manufacturers' term loan gets CRISIL BB+/Stable

CRISIL affirms B- on Indian Sugar Manufacturing Co's term loan

Indus Petrochem's long-term bank loan gets CRISIL B/Stable

JSM Proteins' cash credit gets CRISIL B+/Stable

JSM Vegoils' cash credit gets CRISIL BB-/Stable



KKP Fine Linen's long-term loan gets CRISIL B/Stable

Balaji Paper & Newsprint's term loan gets CRISIL D

CRISIL affirms rtg on Bayer CropScience's fund-based bk limits

CRISIL affirms rtg on Cholamandalam Investment and Fin's NCD

CRISIL affirms A4+ on Forstar Frozen Foods' packing credit

CRISIL A4+ on Gold Star Centoquattro Jewellery packing credit

CRISIL affirms rtg on Bayer BioScience's fund-based bk limits

Aakriti Constructions' cash credit gets CRISIL BB/Stable

Altab Charitable Trust Nadia's term loan gets CRISIL B-/Stable

Arvind Cotsyn India's term loan gets CRISIL BBB/Stable

CARE affirms AA+ on Indian Overseas Bk's Lower Tier II bonds

Adi Ispat's long-term bank facilities get CARE D

Madhya Pradesh Cupro Metals' bank facilities get CARE BB+

South Asia LPG Co's long-term bank facilities gets CARE AA+

Sun Sign & Technologies' long-term bank facilities get CARE BB

Umiya Flexifoam's long-term bank facilities get CARE BB

ICRA cuts rating on Terra Energy's fund based limits to BBB-

ICRA cuts rating on Thiru Arooran Sugars' term loan to BBB-

ICRA ups rtg on Fancy Fittings' non-fund based limits to A2

ICRA cuts rating on RPS Infrastructure's term loans to D

ICRA cuts rtg on Shree Ambika Sugars' term loans to BBB-

CRISIL cuts rating on Dayal Steels' term loan to BBB-/Stable

CRISIL ups rating on Amar Infra's cash credit to B+/Stable

CRISIL cuts rating on Jai Dada Movers' cash credit to D

CRISIL cuts rating on Jai Dada Infra's cash credit to D

CRISIL cuts rating on Jaidada Paribahan' term loan to D

CRISIL cuts rating on Akshay Cargo Movers' cash credit to D

Fitch cuts Neptune Developers' national long-term rating



GLOBAL ECONOMY

GLOBAL ECONOMY:

Pak recalls foreign minister Rabbani as crisis with US deepens.

King Abdullah gives Saudi Arabia women voting rights for first time.

US must put Pakistan on notice after Kabul attack: Senate official Graham.

Pakistan sees 'confusion' in US Afghan policy.

Rio says Oyu Tolgoi accord changes may alarm Mongolia investors.

EU my speed permanent fund to stem crisis.

Pakistan army top brass meets amid US tensions.

Suicide blast in Indonesia church.

Ambush in Philippines kills 15.

Republican win will cripple US, Obama says.

Dalai Lama's succession plan illegal, China says.

Pakistan army chief cancels UK trip as Pakistan rallies against US.

Syria unrest: West 'seeks to break up' country.

Saudi king signals greater role for women in politics.

World mourns passing of true 'African heroine' Maathai.

Russia's Medvedev tells Finance Minister Kudrin to quit.

Wikileaks' founder Assange in a gilded cage in UK.

Thai PM Shinawatra faces flak over exiled brother.

As ties sour with US, Pakistan cosies up with Pakistan, China.

Portugal HC scraps Abu Salem's extradition, CBI to appeal.

Powerful Typhoon Nesat hits Philippines, at least 16 dead.

Saudi woman to be lashed for defying driving ban.

Fierce fighting in Gaddafi stronghold Sirte, Libya.

Govt tanks storm restive town of Rastan, Syria.

Four Syrian soldiers reported killed in escape attempt.

Yemen defence minister survives assassination attempt.

Blast in bus kills 11 children in Herat, Afghanistan.

Study says sharp rise in US health insurance cost.

Rift in Obama govt as ties with Pakistan turn sour.

US dubs 2 LeT co-founders as terrorists.

Khar asks world to back Pakistan for UN Security Council seat.

Typhoon death toll hits 23 in Philippines.

European powers threaten future sanctions against Syria.

Shanghai subway collision renews doubt about China's infra frenzy.

Libya's new rulers believe Gaddafi hiding near Algerian border.

Fresh blow for Pakistan: US curbs on Haqqani men.

Japan to relax evacuation order for site near Fukushima nuclear plant.

Palestinians say no talks with Israel without settlement freeze.

China orders safety drive after environment protests.

al-Qaeda rejects Iran's 9/11 conspiracy theories.

Saudi king stops caning of woman who defied ban on driving.

U.S. durable-goods orders dip in August

Decline centers on motor vehicles, large defense products



Orders for U.S. durable goods fell slightly in Aug as demand shrank for motor vehicles and certain large

defense goods. Yet other industries, particularly technology, fared much better and a closely watched gauge

of business spending on equipment also rose. Economists say that‘s evidence the broader U.S.

manufacturing sector did not weaken last month quite as much as feared. Bookings for U.S.-made products

designed to last at least three years dipped 0.1% in Aug after a 4.1% gain in Jul. Most of the decline was

centered on autos and large defense products excluding aircraft, but those orders often swing sharply from

one month to the next, and they are not viewed as good indicators of future trends. Bookings for motor

vehicles fell the most, down 8.5%, to mark the largest drop since Feb 2010. And orders for ―defense capital

goods‖ such as large weapons decreased by 5.7%. Excluding transportation, orders fell 0.1% in Aug. Orders

minus defense also dropped 0.1%. Slower demand for durable goods would be a worrisome sign for an

economy whose growth over the past year has been spearheaded by manufacturing and exports. If

companies cut back on capital investments because of fresh worries about the economy, growth could slow

even further. Yet some sectors of manufacturing saw marked improvement last month. Orders for

computers, for example, jumped 5.5% after sinking 7.3% in Jul. And bookings for communications gear shot

up 7.8% in Aug after a 21.1% plunge two months ago. What‘s more, orders for core capital goods climbed a

solid 1.1%. That closely watched category gives a better read on trends in the private sector because it

excludes transportation and government spending on defense. In addition, shipments of core capital-

equipment goods, which the government uses to help calculate gross domestic product, rose 2.8%.

Finnish parliament backs stronger EFSF

Finland's parliament on Wednesday approved changes to the euro-zone bailout fund, the European Financial

Stability Facility, agreed by euro-zone leaders in July. The changes will give the EFSF power to intervene in

sovereign bond markets and to provide credit lines to struggling governments. The measure passed

Finland's parliament in a 103-66 vote. The changes require approval of all 17 euro-zone member

parliaments. A vote by Germany's Bundestag on Thursday will be closely watched to see if Chancellor Angela

Merkel can win passage without having to rely on votes from outside her ruling coalition.

Bank of Russia: ready to help Europe via IMF only

Russian Central Bank Chairman Sergei Ignatyev said Tuesday that Russia is ready to help the European

Union only through the International Monetary Fund. Separately, Ignatyev said Greece was close to default,

and called the euro-zone debt situation "critical." "Portugal and Ireland have got problems, and the financial

markets participants have started to doubt the ability of Spain and Italy to service their sovereign debt,"

Ignatyev added.

Japan auto sales seen at 34-year low after quake

Auto sales in Japan are expected to fall to a 34-year low in the current fiscal year that ends in March due to

a sharp drop in production after the March 11 earthquake and tsunami, an industry body said Tuesday. But

the Japan Automobile Manufacturers Association also expects sales to pick up over the second half of the

year as companies iron out production bottlenecks caused by the disasters and ramp up output to make up

for lost time. Marking the first time it has released a sales outlook for the current fiscal year, JAMA said it

expects domestic auto sales to fall 3.3% from a year earlier to 4.450 million vehicles. That would be the

lowest since the fiscal year ended in March 1978. The industry body usually releases its yearly projections in

March, but said it delayed the release as it was difficult to gauge the impact of the massive earthquake and

tsunami on the country's auto production and sales. The picture looks somewhat rosier for the second half of

the year. JAMA forecasts a 17.4% on year rise in sales for the seven months to March as companies return

their production networks to normal, compared with a 28.6% drop in sales in the five months through

August. Still, the association's chairman warned that the expected rebound for the rest of the fiscal year

doesn't necessarily mean a fully fledged recovery in the domestic auto market. "Even though demand will

rebound more than 10% as we project...overall levels of demand will still be sluggish," Toshiyuki Shiga said

at a press conference. Shiga, who is also the chief operating officer of Nissan Motor Co. (7201.TO), said the

expected rise is due in part to a low basis of comparison in the year-earlier period, which saw poor sales due

to the expiry of government subsidies for fuel-efficient cars. Japanese auto makers are already counting on

a domestic recovery in demand over the next six months, as they look to boost output even as the strong

yen squeezes their export businesses. Toyota Motor Corp. (7203.TO) started increasing production in

September, one month earlier than initially planned, to catch up on the previous six months. Honda Motor

Co. (7267.TO) plans to lift output volume by 25% in the fiscal second half, while Nissan expects its output to

be back to pre-quake conditions in October. Although the outlook for the U.S. and European economies

looks increasingly murky, Shiga said he hasn't seen any signs of faltering auto demand in the two key

markets.



Bernanke calls unemployment a ‘national crisis’

Also calls from ―strong‖ housing policies

The nation‘s weak labor market was ―a national crisis‖ that required attention from the White House and

Congress, Federal Reserve Chairman Ben Bernanke said Wednesday. ―We‘ve had close to 10%

unemployment now for a number of years, and of the people who are unemployed, about 45% have been

unemployed for six months or more. This is unheard of,‖ Bernanke said in a question-and-answer session

following a speech in Cleveland. He called for policies ―that could help them find work, train for work and

retain their skills.‖ Bernanke said that Fed‘s interest rate moves were not a panacea for the economy.

Bernanke urged policy makers to consider ―strong housing policies to help the housing market recover.‖

Better housing policies would ―clearly be very useful,‖ and would allow the low mortgage rates stemming

from easy Fed policy to have more effect and help the economy recover. Except for two months early this

year, the unemployment rate has been stuck above 9% almost every month since May 2009. It peaked at

10.1% in October 2009. Bernanke‘s dire view of the unemployment situation may be what motivated him to

take the another innovative step last week to try to boost the economy. Despite three dissents on its

interest-rate setting board, the Fed decided to start a program to twist the yield curve by swapping shorter-

maturity government securities for longer-dated ones. Read Fed decides on $400 billion bond swap.

Bernanke did not spell out what he wants done about unemployment and housing. The topic of his prepared

remarks was about gleaning policy lessons from the recent strong growth seen in emerging markets. But

recently, top Fed officials have endorsed the outlines of a plan that would allow homeowners who owe more

than their homes are worth to refinance their mortgages. Boston Federal Reserve Bank President Eric

Rosengren on Wednesday said such a plan would give a boost to consumer demand. ―Clearly getting more

money into the hands of homeowners who would spend it could help to fuel GDP growth,‖ he said. Plans to

expand existing refinancing program being considered by the White House but have been slowed down by

regulatory hurdles. Rosengren also backed another proposal that would reduce the number of vacant homes

by allowing investors to convert foreclosed homes into rental properties. Bernanke‘s call for action on the

labor market might end up helping President Barack Obama‘s jobs plan, a mix of tax cuts for workers and

businesses and more spending on schools and roads. Republicans have indicated that they might pick and

pass some elements of Obama‘s proposal. Read Congress may take only tax cuts from Obama plan. It may

be harder for Congressional Republicans to justify trimming the package given Bernanke‘s strong words.

German parliament approves changes to EFSF

Germany's parliament on Thursday approved a package of measures enhancing the lending power and

flexibility of the euro-zone bailout fund, the European Financial Stability Facility. News reports said the final

tally was overwhelming, with 523 members of the Bundestag, the lower house of parliament, voting in

favor, and 85 against. The euro extended gains after the vote and changed hands versus the dollar in recent

action at $1.3642, up 0.7% on the day.

China September PMI points to flat activity

A key China manufacturing survey released showed economic conditions contracted for the third straight

month in Sep, though there was little change in the overall rate of contraction from Aug, while other data

bolstered the view activity was beginning to stabilize. HSBC‘s China Manufacturing Purchasing Managers‘

Index (PMI) reading for the month was 49.9, unchanged from levels in Aug, and below the 50 level dividing

expansion from contraction. The result was stronger than last week‘s preliminary or ―flash‖ PMI that had

indicated conditions at a two-month low for the month of 49.4. HSBC economists said the data showed

China‘s manufacturing sector continued to stagnate in Sep amid weak domestic and overseas demand.

However, they noted improvement in new orders against a backdrop of deplete inventories bodes well for

factory activity in coming months. ―This slow-down is starting to stabilize,‖ wrote HSBC analysts in a note

accompanying the PMI. The PMIs reading for finished goods fell to 46.8 from 47.2 in Aug, marking the 14-

straight month of declines. Meanwhile, new orders remained in contraction, though on an improving trend,

rising to 49.8 from 49.2 Aug.

Fitch cuts New Zealand for high external debt

Fitch Ratings lowered its ratings on New Zealand, saying the island nation's net external debt is an outlier

among peers. The credit rater lowered New Zealand's long-term foreign-currency issuer default rating by

one notch to double-A, placing it two levels under triple-A. The ratings outlook is stable. The ratings firms

said its net external debt of 83% of gross domestic product on a U.S. currency-basis by the end of last year

was well above the 10% median for AA-range peers. "New Zealand's high level of net external debt is an

outlier among rated peers--a key vulnerability that is likely to persist as the current account deficit is

projected to widen again, reflecting a structural savings/investment imbalance," said Andrew Colquhoun,

http://www.marketwatch.com/story/fed-decides-on-400-billion-bond-swap-2011-09-21

http://www.marketwatch.com/story/fed-decides-on-400-billion-bond-swap-2011-09-21

http://www.marketwatch.com/story/congress-may-take-only-tax-cuts-from-obama-plan-2011-09-09



Fitch's head of Asia-Pacific sovereigns. Fitch said the economy's high net external debt reflected a persistent

current account deficit, peaking at 8.9% of GDP in 2008. The deficit was corrected sharply during the

recession in 2009 and 2010, but Fitch estimates it will widen again to 4.9% of GDP in 2012 and 5.5% in

2013 as domestic demand recovers. Fitch said it views New Zealand's high net external indebtedness as "a

key vulnerability," particularly in a global environment that has remained volatile since the ratings were

assigned with a negative outlook in 2009.

Euro-zone Sept. annual inflation accelerates to 3%

Consumer price inflation in the euro zone unexpectedly accelerated to a 3% annual pace in Sep from 2.5%

in Aug, the European Union statistics agency Eurostat reported in a preliminary estimate. Economists had

expected the inflation rate to remain at 2.5%. The European Central Bank's inflation target is near but just

below 2%. Separately, Eurostat said the seasonally-adjusted unemployment rate in the euro zone stood at

10% in Aug, unchanged from Jul.

Japanese Aug industrial production rises 0.8%

Japanese Aug industrial production rose 0.8% month-on-month on a seasonally-adjusted basis, government

data showed. Economists had been expecting production to rise 1.5%, according to data compiled by Dow

Jones Newswires. The rise in Aug represented the fifth straight month of production gains and the

government statistics body noted that industrial production has almost recovered from the Great East Japan

earthquake that devastated the country in Mar.

Australia's fiscal 2011 deficit reaches $50.4 bn

Australia's government recorded a 2010-11 fiscal balance deficit of 51.5 bn Australian dollars ($50.4 bn), it

said. The deficit was A$5.8 bn higher than estimated earlier in the year. The government said that the gap

between the estimated amount and actual amount could be explained by changes in accounting treatment

for disaster recovery payments. "The government remains determined to return the budget to surplus in

2012-13, despite softer than expected revenues and increased global instability that will inevitably make

that task more difficult," Treasurer Wayne Swan said after the budget figures were released.

Japan's core consumer price index rises 0.2%

Japan's core consumer price index rose 0.2% in Aug compared to the same period a year ago and rose

0.1% compared to the previous month, government data showed. Economists had been expecting an annual

rise of 0.1%, according to data compiled by Dow Jones Newswires. The country's unemployment rate

declined 0.4% to 4.3% on a seasonally-adjusted basis, a better reading that the 4.7% rate the market had

been expecting, data showed. Average household spending in the month declined by 4.1% in real terms to

282,008 yen ($3,675).

Greece meeting with troika "positive": reports

The Greek government's meeting with officials from the European Union, the International Monetary Fund

and the European Central Bank on Sep 29 was held in a "positive and constructive" atmosphere, according

to media reports. The meeting is part of a review by the so-called troika to determine whether Greece has

met its reform targets to receive the next installment of bailout funds. The review team will continue to

meet with Greek officials in the coming days, the reports said. Separately, Greek Finance Minister Evangelos

Venizelos welcomed the German parliament's support for the euro-zone rescue fund and stressed that

Greece is committed to meeting its obligations. "Those are not obligations towards the troika, Greece's

institutional partners and creditors, but towards the country itself and most of all towards its young

generation," the Finance Ministry said in a statement.

U.S. jobless claims sink 37,000 to 391,000

Labor official suggests big drop stems from ‘technical’ issues

The number of Americans who filed applications for unemployment benefits sank last week to the lowest

level since early spring, but the surprising drop may have stemmed from ―technical‖ issues not captured by

normal seasonal adjustments. Jobless claims fell by 37,000 to 391,000 in the week ended Sept. 24, putting

them at the lowest level since April 2, the Labor Department reported. Initial claims from two weeks ago

were revised up to 428,000 from an original reading of 423,000.

Pending home sales index drops 1.2% in August

The pending sales index of existing U.S. homes fell 1.2% to 88.6 in Aug, the National Association of Realtors

said. The pending sales index totaled 89.7 in Jul. The index's current level is 7.7% above the Aug 2010

level, but it's well below the pace of pending sales in a healthy economy. The biggest decline took place in

the Northeast, while the Midwest and West also fell. The South was the only region to post an increase.



GLOBAL BUSINESS

GLOBAL MARKET:

Global leaders fiddle as Greece heads for burnout.

Ford Motor may build electric cars in China with partner, CEO Mulally says.

Apple opens first Hong Kong store as retail spending surges.

Indonesia's growth is solid as lending exceeds target, central bank says.

Vladimir Putin's return in power stokes fear of stagnation in Russia.

China central bk governor: Must battle inflation, maintains growth.

Greece vows to stay in the euro, never go bankrupt.

China to invest 2 trln yuan in low-carbon economy.

France has no plans to recapitalise banks, budget minister says.

China's XCMG may drop plans to raise $1.1 bln in stock offer.

Boeing hands over first 787 Dreamliner to ANA.

AB Invev seen in $80 bln deal with SABmiller.

Boeing to deliver first 787 Dreamliner to All Nippon after 3 yr delay.

US new home sales fall 2.3% in Aug, a six-month low.

UBS chief quit after clash over strategy.

Fresenius to test appetite for high-yield debt.

S&P may face SEC charges over CDO rating.

German business sentiment falls for third month in a row.

No plan on table to halve Greece debt, say Eurozone officials.

Germany at war over Eurozone bailout.

Indian Overseas Bk, others shelve MTNs as debt cost soars.

Greece prime minister makes plea for German support for debt crisis.

Japan may consider being part of Greece bailout plan.

BAE Systems to cut 3,000 jobs at sites across Britain.

Russian PM Putin names Anton Siluanov Russia's acting finance minister.

Report says IPad 'gains 80% of tablet market' in US, Canada.

US Senate deal prevents government shutdown.

US Federal Reserve lender of last resort, once again.

Experts: Obama's jobs plan may prevent 2012 recession.

Global investor poll says, China growth seen slowing to 5% by 2016.

Greece to face inspectors, German Chancellor Merkel hints at bailout.

BP may sell some global assets to RIL.

German govt faces tricky bailout vote.

European Commission Barraso's Tobin tax proposal resisted by UK.

Man Group assets shrink by $6 bln.

UK 'will resist' European Union financial tax.

Amazon unveils iPad challenger Kindle Fire tablet.

US orders for big manufactured goods fall in August.

US to probe HTC's complaint against Apple.

Japan plans to raise extra $120 bln in taxes for quake reconstruction.

Reebok to pay in settlement over health claims.

Expanded Europe bailout fund clears more hurdles.



Greece govt divided over job cuts.

German parliament backs expanded euro rescue fund.

Nokia and Siemens invest 1 bln euros in joint venture.

Kindle Fire may force Android tablet makers to cut prices.

S&P raises GM credit rating by two notches.

H&R Block to get rid of EXPRESSTAX brand.

Nationwide Mutual to buy Harleysville for $760 mln.

Nokia to cut 3,500 jobs worldwide.

Rising wages erode low-cost image of China.

AstraZeneca settles Seroquel patent litigation.

AstraZeneca PLC s said that it has entered a settlement agreement in its U.S. Seroquel XR patent

infringement litigation against Handa Pharmaceuticals LLC, regarding Handa's proposed generic version of

Seroquel XR extended-release tablets. Under the settlement, AstraZeneca has granted Handa a license to

enter the U.S. market with generic Seroquel XR in Nov, 2016, or earlier under certain circumstances. The

drug is protected by patents and other exclusivity rights that range from Mar, 2012, to Nov, 2017.

Rusal may sign $4.75 bn loan from banks

Aluminum giant United Co. Rusal (0486.HK) may sign an agreement on a $4.75 bn syndicated loan with a

five-year maturity, Interfax reports, citing a banking source. Rusal said on Aug. 1 it mandated banks to

arrange a syndicated pre-export finance facility of up to $4.75 billion. Rusal said it will use the facility to

partially refinance its debt, which stood at $11.4 billion as of March 31. The refinancing of the full volume of

the debt will enable Rusal to remove restrictions on its operational and investment activities and the

dividend payment. Rusal said it expected to re-finance its debt in full by the end of September. The banking

group mandated to arrange the facility included OAO Sberbank , UniCredit Bank AG, BNP Paribas SA

(BNP.FR) and Societe Generale SA (GLE.FR). The deal was expected to close by the end of September, Rusal

said.

SAIC agrees to $20 mln settlement on Navy billing

Science Applications International Inc. agreed to pay the government $20.4 million to settle charges it

colluded with two government employees to gain a lucrative support contract.

Isuzu to build new pickup truck plant in Thailand

Isuzu Motors Ltd. (7202.TO, ISUZY) said it will build a new plant in eastern Thailand to produce pickup

trucks, with an eye to make the Southeast Asian country its base for export operations, Kyodo News

reported. The new facility, to be built at a cost of Y18 billion, will be constructed on the premises of Isuzu's

existing plant in Chachoengsao Province and is scheduled to begin operating in October 2012. Together with

the existing plant, Isuzu's production capacity for pickup trucks will be boosted to 400,000 per year, it said.

PdVSA forms joint venture with Brazil's Odebrecht

The Venezuelan government approved the creation of a joint venture between state oil company Petroleos

de Venezuela and a division of Brazilian conglomerate Odebrecht, the Official Gazette said. The joint venture

intends to search for and produce oil in Venezuela's northwestern state of Zulia. The JV will be 60% owned

by PdVSA, as the state monopoly is known, while the rest will go to Odebrecht E&P Espana. The agreement

is for a duration of 25 years and the Brazilian company will pay $50 million to PdVSA for its partnership, the

government newsletter said. The approval from the National Assembly gives a green light for the companies

to explore and produce crude oil and natural gas in the hydrocarbon-rich state of Zulia. Venezuela has been

on the hunt for foreign partners to develop its vast crude reserves, as it looks to boost oil output to 4 million

barrels a day by 2014 from around 3 million presently.

S&P takes Fortune Brands off downgrade watch

Standard & Poor's Ratings Services removed the prospect of downgrading Fortune Brands Inc.'s ratings into

junk territory anytime soon, based on its assessment of how the company will fare as a spirits-focused

operation after an expected spinoff. S&P removed the company's triple-B-minus ratings--the lowest credit-

quality rating in investment grade--from watch for possible downgrade and gave the company's ratings a

stable outlook.

S&P ups GM; puts Ford on watch for upgrade



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Standard & Poor's Ratings Services lifted General Motors Co.'s rating by two notches, placing the auto maker

on the verge of investment grade, citing the benefits of a new, four-year labor contract with the United Auto

Workers. Separately, S&P also placed its rating on peer Ford Motor Co. (F) on watch for upgrade, saying it

could raise Ford's rating to GM's new level if the company's U.S. labor negotiations are resolved and ratified

in a way that doesn't place Ford at a significant disadvantage relative to GM's recently concluded labor

contract. GM's corporate credit rating was raised by two notches to double-B plus. The outlook was revised

to stable from positive.

Shell says fire at Singapore refinery extinguished

Royal Dutch Shell PLC has succeeded in extinguishing a fire that has been raging at its 500,000-barrel-a-day

Pulau Bukom refinery. Shell said the fire at the refinery, the largest the oil major owns globally, had been

extinguished, but some traces of fuel vapour remained.

Sep 30, 2011

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