New Delhi/Mumbai: Big business is eyeing the media space once again. Just four months after Reliance Industries invested in the Network 18 group in a multi-layered deal, leading business houses, including the Aditya Birla Group, are looking at acquiring 26 per cent stake in the Aroon Purie-controlled Living Media India.
The market seems to have got wind of the deal, as the TV Today stock went up 15.23 per cent to Rs 68.10 on the Bombay Stock Exchange on a day the benchmark index, Sensex, fell 1.51 per cent, or 263.88 points.
Living Media acts as a holding company and owns 57.1 per cent in TV Today Network, the listed company that owns the group’s broadcasting assets, besides publishing a host of magazines that include the flagship India Today.
Ambit Capital is understood to be looking for a strategic partner for Living Media. The other names doing the rounds for picking a stake in Living Media are Mahindra & Mahindra and the Kolkata-based RP-Sanjiv Goenka group.
Sources in the know say the Aditya Birla Group seems to be the front runner for the deal. However, when contacted, the group’s official spokesperson said, “In line with our policy, we do not comment on market reports.”
An M&M spokesperson said, “As a company policy, we don’t comment on speculative stories.”
Emailed questionnaires to Aroon Purie and Living Media’s CEO Ashish Bagga did not elicit any reply. Sanjiv Goenka was unavailable for comments. Ashok Wadhwa Group CEO, Ambit Capital, was also unavailable as he said he was busy in a meeting.
Living Media straddles print media, television and the radio business apart from running the country’s most modern printing press, Thomson Press, in the outskirts of Delhi.
Purie’s publishing empire, which is controlled through Living Media, also includes Business Today and a clutch of licensed magazines such as Cosmopolitan, Good Housekeeping, Men’s Health, Harper’s Bazaar, Travel Plus and Harvard Business Review, among others.
In a recent interview, Purie had said the company was looking at launching Esquire, contemplating a Hindi newspaper and making a big splash in the regional publishing space.
Living Media also has a joint venture with German media house, Axel Springer AG, for an auto magazine and an online shopping portal — Bag it today. It also has an alliance with the UK-based Daily Mail for the daily tabloid Mail Today.
TV Today has four news channels — Headlines Today, Aaj Tak, Tez and Delhi Aaj Tak — and radio stations under the brand Oye FM. In the December quarter, TV Today posted a profit of Rs 3.5 crore, with revenue of Rs 78.68 crore. As of September 2011, it had debt of Rs 16.19 crore. The company has a market capitalisation of Rs 404 crore.
The RP-Sanjiv Goenka group already has some media interest as it runs the weekly general news magazine, Open. On the other hand, the Birlas had a brief experience in the entertainment business. In 2003, Kumar Mangalam Birla had launched a movie and television software production company called Applause Entertainment, best known for producing Hindi movies Black and Dev, both starring Amitabh Bachchan. However, the company was closed in 2009.
M&M’s vice-chairman & managing director Anand Mahindra, who studied film-making at Harvard, has a media and entertainment vertical called Mumbai Mantra. It has produced several regional movies and has a partnership with the renowned Sundance Institute for screen writers. Mahindra’s wife runs a lifestyle magazine, Verve.
THOMAS COOK PEGS 77% STAKE AT RS 1,716 CR, TRAVELEX TOP BIDDER
NEW DELHI: Leading travel company Thomas Cook is learnt to have put a price of Rs 1,716 crore on the 77.1 per stake it holds in the India business. It has pegged the asking price at Rs 105 a share, in a bid to cut the mounting debt of its UK-based parent company. A Thomas Cook Indiaspokesperson refused to divulge details of the ongoing negotiation. But market sources said London-headquartered foreign exchange company Travelex had emerged as the leading bidder, offering a price between Rs 90 and Rs 95 a share. Dani Filer, head of communications, Travelex, said the company did not want to comment on such a speculation. Thomas Cook Indiais selling its consolidated business, including foreign exchange and travel business together. Therefore, even as Travelex’s core business is foreign exchange, it is bidding for the entire 77.1 per cent stake in Thomas Cook at this stage. But industry experts have not ruled out the possibility of Travelex hiving off the travel arm at a later stage, while retaining only the forex business. They say Thomas Cook may not be keen on entering tripartite agreements in the bidding stage, as it may complicate the sale process. (For details log on to : http://www.business-standard.com/india/news/thomas-cook-pegs-77-stake-at-rs-1716-cr-travelex-top-bidder/470729/)
BAJAJ HINDUSTHAN REVISES MERGER SCHEME; EXCLUDES BAJAJ AVIATION
NEW DELHI: The country’s largest sugar maker Bajaj Hindusthan today approved a modification in the draft merger scheme as per which only Bajaj Eco-Tec Products will be merged with it. The proposed amalgamation excludes Bajaj Aviation. In a BSE filing, Bajaj Hindusthan said the board has “approved modification in the draft scheme of amalgamation by excluding the proposed amalgamation of Bajaj Aviation Pvt Ltd with the company from the scope of the scheme of amalgamation as approved at its meeting on March 13, 2012.” The company, however, did not disclose the reason behind exclusion of Bajaj Aviation from the new scheme. Last month, Bajaj Hindusthan had announced amalgamation of Bajaj Eco-Tec Products (a wholly-owned subsidiary of the company) and Bajaj Aviation (a wholly-owned subsidiary of Bajaj Eco-Tec) with the company. (For details log on to : http://economictimes.indiatimes.com/news/economy/agriculture/bajaj-hindusthan-revises-merger-scheme-excludes-bajaj-aviation/articleshow/12600264.cms)
WESTBRIDGE-BACKED INDECOMM BPO ON SALE FOR $250MILLION
MUMBAI: Back-office firm Indecomm Global Services, founded by a former Unilever top gun, has initiated a sale process with the 10-year-old company valued at about $250 million, said at least three sources directly familiar with the matter. Private equity investors WestBridge Capital, Tiger Global and promoter investor Naresh Ponnapa have mandated JP Morgan Chase to find buyers for the outsourcing firm, which has had discussions with IBM, Accenture and Cognizant Technology Services, sources added. USprivate equity Kohlberg & Co dropped out after the sellers indicated preference for strategic buyers, said one of the sources mentioned earlier. The promoter could also explore a listing on the USbourses as an alternative. (For details log on to : http://timesofindia.indiatimes.com/business/india-business/WestBridge-backed-Indecomm-BPO-on-sale-for-250million/articleshow/12604859.cms)
SONY PICTURES TO PICK UP 30% STAKE IN MAA TV
HYDERABAD: Hyderabad-based MAA Television Network Ltd and Sony Pictures Television have entered into a strategic alliance to give a growth thrust to MAA TV and its network of Telugu television channels. The tie-up would enable Sony Pictures or any of its affiliates to acquire 30 per cent equity stake in MAA TV on signing a definitive agreement and subject to obtaining necessary approvals from the statutory authorities concerned. The majority shareholders of the two companies have signed a letter of interest to this effect. A MAA TV spokesperson told Business Standard that the financial details in this regard were expected to be finalised in a couple of months. The current management of MAA TV would continue to function, even after acquisition by Sony Pictures or its affiliates. Hence, the alliance is such that Sony Pictures remains a strategic investor and content provider to MAA TV. (For details log on to : http://www.business-standard.com/india/news/sony-pictures-to-pick30-stake-in-maa-tv/470730/)
SOMANY CERAMICS TO ACQUIRE 26% STAKE IN CVPL
MUMBAI/AHMEDABAD: Ceramics tiles maker, Somany Ceramics Ltd has entered into a memorandum of understanding (MOU) with Commander Vitrified Private Limited (CVPL) and its promoters to acquire equity stake of 26 per cent in the latter for a consideration of Rs 3.25 crore, the company informed in a statement filed with the Bombay Stock Exchange (BSE). The company has kept an option of further increasing its stake in CVPL up to 51 per cent. CVPL is at an advanced stage of setting up a new plant to manufacture about 2.65 million square meters of vitrified tiles (polished and glazed) per annum at Morbi in Gujarat. The plant is expected to commence production by the end of May 2012, the statement said. “This strategic stake will give complete access to the Company to procure and sell the entire quantity of vitrified tiles to be manufactured by CVPL,” said Somany Ceramics in the statement. Shares of Somany Ceramics closed positive on BSE with gain of 1.73 per cent over previous close. (For details log on to : http://www.business-standard.com/india/news/somany-ceramics-to-acquire-26-stake-in-cvpl/470668/)
ITC BUYS AUSTRALIAN AGRI-BIOTECH FIRM
KOLKATA: ITC Ltd has acquired Technico Pty Ltd (TPL), an Australia-incorporated agri-biotechnology company, from Russel Credit. ITC Ltd has informed stock exchanges that the company acquired all 2,26,06,065 shares having “no par value” of TPL from its wholly owned subsidiary, Russell Credit Ltd. The deal makes the $2-million plus, New South Wales-located, TPL, owner of a fast seed potato multiplication and production technology, a 100 per cent subsidiary of ITC from March 26 instead of being a step-down subsidiary. Over the years the company extended its operations through its 100 per cent subsidiaries in China, India, the US, Canadaand Jordan. It has been supplying seed from Indiaand Chinato the West Asian, North African and North American markets at a price advantage over its European competitors. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-corporate/article3297920.ece)
ONGC-TERI JV BAGS $1-BILLION KUWAIT OIL SPILL CLEAN-UP JOB
VADODARA: Oil and Natural Gas Corporation (ONGC) says its joint venture (JV) company has won a third of the estimated $3-billion global contract to clean the 60 million cubic metres of Kuwaitcontaminated by the huge oil spills that were a legacy of the retreating Iraqi armies in 1991. Sudhir Vasudeva, chairman and managing director of ONGC, told reporters here on Monday that ONGC-Teri Biotech Ltd (OTBL), the company’s JV with The Energy and Resources Institute (Teri), had got a $1-billion contract for doing part of the clean-up. The contract was bagged recently, he said on the sidelines of a press conference. OTBL had been competing with 12 companies for Kuwait Oil Co’s mammoth contract. It is to use its ‘oil zapper’ technology to do the job. “Teri has been present in this segment and they were meeting the financial criteria for the contract. So, it is through them that OTBL has bagged the contract in Kuwaitfor $1 billion,” Vasudeva added. (For details log on to : http://www.business-standard.com/india/news/ongc-teri-jv-bags-1-billion-kuwait-oil-spill-clean-up-job/470720/)
COAL INDIA TO INVEST $14.6 BN TO RAISE OUTPUT IN FIVE YEARS
KOLKATA: Coal India, facing pressure from the prime minister’s office to improve production, plans to invest 75,000 crore ($14.6 billion) in the next five years to develop mines and infrastructure, buy foreign assets and be able to pay a dividend of 6,500 crore every year, top company executives said. “CIL will be investing 40,000 crore in ramping up infrastructure and production for its domestic operations and another 35,000 crore for acquiring foreign assets as well as in its Mozambiqueoperations,” a director in the company said. The state-run firm will also spend 4,000 crore this fiscal to urgently meet production and meet its obligations under new fuel supply agreements, they said. The company’s cash reserves have swelled to 56,000 crore at the end of March, up 24% in a year, helping it plan big investments. The kitty will swell by about 10,000 crore every year unless the money is invested in new projects, executives said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/coal-india-to-invest-14-6-bn-to-raise-output-in-five-years/articleshow/12604861.cms)
ESSAR STEEL PLANS NICHE, HIGH-VALUE PRODUCTS FOR NAFTA, WEST ASIA MKTS
MUMBAI: Ruias-owned unlisted Essar Steel said on Monday it will look towards producing more niche, high-value auto plates and electrical steel to make higher margins anywhere between $70 to $80 for every tonne sold in newer markets in North American Free Trade Agreement region (Nafta), parts of the Middle East and the Far East. “After the value addition, we expect to have an incremental value of $70-$80 per tonne on base hot rolled coil or HRC or primary steel,” said Dilip Oommen, the managing director and chief executive of Essar Steel. The company already has service centres in Dubaiand the UKwith capacity to handle 1 mtpa of products. Essar Steel, which expects R40,000 crore revenue after the expansion of its 12 mtpa refinery in Hazira in Gujarat, plans to straddle the entire steel value chain from mining to making metals. The company has already invested R37,500 crore to expand. The integrated pellet making facility, India’s largest, for which Essar Steel invested R4,200 crore, will nclude comprise its Orissa plant, a 12 mtpa iron ore beneficiation plant at Dabuna and a 253 slurry pipeline connecting Dabuna and Paradip. Sajjan Jindal-owned JSW Steel is the second largest producer of pellets, with a 9.2 mtpa capacity, followed by Jindal Steel & Power (JSPL) with 4.5 and KIOCL (formerly Kudremukh Iron Ore Company) with 3.5 mtpa. (For details log on to : http://www.financialexpress.com/news/essar-steel-plans-niche-highvalue-products-for-nafta-west-asia-mkts/934726/)
RETAIL HOUSES HIRE GLOBAL HANDS TO SPEARHEAD OPS
NEW DELHI: After Bharti Walmart and Reliance Retail, Bharti Retail is going to have a Walmart global hand at the helm, sources said. Bharti Retail has hired Mitchell Slape, a vice-president for Walmart’s Mexicounit, as the chief operating officer and he would be replacing Andrew Levermore, who quit Bharti Retail late last year to start his own venture in his native country South Africa. Slape has been a Walmart veteran for 16 years and is currently the vice-president of the Superama upmarket supermarket chain of Walmart de Mexico SAB de CV. “There has been no announcement regarding the COO of Bharti Retail. We will be happy to share the details with you once the announcement is made,” a Bharti Retail spokesperson said in an emailed reply to FE. (For details log on to : http://www.financialexpress.com/news/retail-houses-hire-global-hands-to-spearhead-ops/934732/)
GOVERNMENT LIKELY TO DILUTE FDI RETAIL NORMS
NEW DELHI: Within two months of allowing international players to set up wholly-owned ‘single-brand’ retail stores, the government is planning to dilute the norms on sourcing from small, village and cottage industries bowing to pressure from global brands such as IKEA, Nike and Apple. Top government sources told TOI that the commerce & industry ministry has received feedback from these companies that they are unlikely to invest in Indiauntil the sourcing norms are simplified. Under the single-brand route companies can open their own stores provided they sell products under their own brand name. For instance, during consultations in recent weeks, consultants for Nike have told the industry department officials that the sports goods and apparel major wanted to source from Indian firms, but they needed to invest in these entities to upgrade technology and scale up capacity. But pumping in money will result in a breach of the small scale cap of $1 million (around Rs 5 crore) investment in plant and machinery. (For details log on to : http://timesofindia.indiatimes.com/business/india-business/Government-likely-to-dilute-FDI-retail-norms/articleshow/12602181.cms)
VODAFONE CASE: FOREIGN BODIES SEEK TAX REVIEW
NEW DELHI: Two international trade bodies have joined the global chorus seeking a review of the government’s move to retrospectively tax overseas transactions involving Indian assets, a proposal widely seen to be targeted at British telecom company Vodafone. The France-based International Chamber of Commerce and the Business and Industry Advisory Committee to the OECD have together written to the finance ministry, cautioning that the government’s proposal in its recent budget could have adverse implications for the country. “We are concerned the recent introduction of retroactivity is not only unwelcome for the future of India’s investment climate, it will also send a signal to other countries that retroactivity is an acceptable route,” says the joint letter addressed to Pranab Mukherjee. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/telecom/vodafone-case-foreign-bodies-seek-tax-review/articleshow/12604797.cms)
STEEL COMPANIES INCLUDING SAIL FORGE TIES WITH AFGHANISTAN
NEW DELHI| KOLKATA: Steel minister Beni Prasad Verma is headed to Kabulto sign a memorandum of understanding, as part of India’s growing economic engagement with Afghanistan. Verma will be accompanied by the heads of the ministry’s two star PSUs – SAIL and NMDC. The two PSUs are part of Afghan Iron and Steel Company (Afisco), a seven-member Indian consortium that also includes state-owned RINL, and private sector steel players like JSPL, JSW, JSW Ispat and Monnet Steel and Power. The consortium already had two rounds of talks with Afghan officials. Next month, an agreement for the Hajigak mines with a possible downstream steel plant could also be inked, said a person close to the development. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/steel-companies-including-sail-forge-ties-with-afghanistan/articleshow/12604873.cms)
TAX BURDEN INCREASE TO PUT BRAKES ON GROWING CAR MARKET
MUMBAI | NEW DELHI: The car industry is reeling under an assault from several state finance ministers in their bid to increase tax revenues. The additional tax levies came soon after the Union budget proposed an upward revision in excise duties, which may put the brakes on one of the fastest growing car markets in the world, fear carmakers. If the 2% increase in excise duty announced in the Union budget was not enough, some of the state governments in recent weeks such as Maharashtra, Kerala, West Bengal, Madhya Pradesh have hiked road taxes and other levies. It has further jacked up the on-road car prices for the consumers thereby hitting demand in the near term. The on-road car prices in these states starting April 1 have gone up by as much as 3,000-5,000 on small cars and by as much as 5-10 lakh on fully imported premium cars and SUVs. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/tax-burden-increase-to-put-brakes-on-growing-car-market/articleshow/12604171.cms)
OIL MINISTRY WARMS UP TO RIL’S D6 SURVEY PLAN OF DEEP-SEA REGION
NEW DELHI: The oil ministry has called a crucial meeting of administrators of the KG-D6 block to deliberate upon Reliance Industries’ plan to survey the entire deep-sea region, instead of a piecemeal approach, to accelerate joint development of 16 untapped discoveries and reverse the steep fall in gas production. Reliance and its partner BP want to immediately conduct a comprehensive survey for the entire block, but the director general of hydrocarbons has so far stoutly opposed this and asked them to restrict the survey to the four satellite fields for which the government approved the $1.5-billion development plan in January. Oil ministry officials said the government is now favourably inclined towards the proposal as it saves on development costs and speeds up production of more natural gas, but it wants to make sure that Reliance and BP conduct the survey at their own risk. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/oil-ministry-warms-up-to-rils-d6-survey-plan-of-deep-sea-region/articleshow/12602776.cms)
INDIA, PAKISTAN TO DEEPEN TRADE TIES
NEW DELHI: Indiaand Pakistanwill take another step towards deepening trade and economic relations when the commerce ministers of two countries meet later this week and officials say New Delhiwill examine the issue of preferential access for Pakistani products such as cement and textiles . The two neighbours are also expected to discuss the issue of electricity trade between Pakistanand India. According to officials, the two sides will discuss the report of the expert group on the issue and concrete steps are expected to be outlined. “Arrangements for electricity trade have been more or less finalised ,” said an official, while adding that discussions are still on for setting the terms for petroleum products trade. Both sides will also discuss the issue of easing visa rules for business travel, though a decision is to be taken up by the home ministry and interior ministry of Pakistan. (For details log on to: http://timesofindia.indiatimes.com/business/india-business/India-Pakistan-to-deepen-trade-ties/articleshow/12604827.cms)
INDIA, US HEAD TO WTO ON VISA, POULTRY ISSUES
NEW DELHI: Indiaand the UShave embarked on a trade war over higher visa fees and restrictions on poultry imports. Indiahas dragged the US to the World Trade Organization’s (WTO’s) dispute settlement body (DSB) over an increase in the professional visa fee. Both sides will fight a separate case on India’s ban on US poultry imports. This is for the first time in the history of their bilateral relations that Indiais taking the USto the WTO. In the 1990s, both countries were involved in a similar imbroglio concerning the US‘Super 301’ legislation but the matter was resolved through bilateral discussions. According to the dispute settlement norms, Indiahas not yet made a formal complaint against the USin the DSB but has sought consultations with the US, which is the first step. If both parties arrive at an amicable solution during the consultation process then the case would not be formally filed with the WTO. (For details log on to : http://www.business-standard.com/india/news/india-us-head-to-wtovisa-poultry-issues/470742/)
PORT CARGO FALLS FIRST TIME IN A DECADE
NEW DELHI: Cargo handling in ports saw a decline in 2011-12, the first in 10 years. In 2011-12, cargo handling fell 1.7 per cent, compared to that in 2010-11. In the past few years, it had seen an increase of two-five per cent. Though the primary reason for the decline was a ban on iron ore exports, data for financial year 2011-12 shows other commodities not only failed to make up for the loss incurred due to the ban, their growth slowed to 3.4 per cent compared to the previous year. In 2010-11, the iron ore ban had come into effect in July. In 2011-12, the effect of this was felt through the year, with major ports losing about 30 million tonnes of iron ore cargo. Owing to the ban taking a toll in three quarters of 2010-11, major ports registered an overall growth of just 1.6 per cent, compared with 5.68 per cent in the previous year. (For details log on to : http://www.business-standard.com/india/news/port-cargo-falls-first-time-indecade-/470749/)
CIL BOARD GIVES IN, TO SIGN SUPPLY PACTS WITH 50 POWER COMPANIES
NEW DELHI/KOLKATA: Forced by a presidential directive, government-owned Coal Indiais likely to sign fuel supply agreements (FSAs) with at least 50 power companies after a board meeting next week. The board, on the urging of six independent members, had earlier turned down a government directive to commit at least 80 per cent supply to power companies. It is likely to meet on April 16 to approve FSAs for a combined 28,000 Mw of projects commissioned before December last year. The signing would break a three-year logjam with consumers over supply commitments. Last week, a Rashtrapati Bhavan directive was issued to Coal Indiato sign the supply pacts. “The board would meet on April 16 and 17 to approve the FSAs. This is merely a formality after the President’s directive,” a senior official from the coal ministry told Business Standard. (For details log on to : http://www.business-standard.com/india/news/cil-board-gives-in-to-sign-supply-pacts50-power-companies/470731/)
IGL GETS RS 1,000-CR HIT FROM REGULATOR
NEW DELHI: The price of compressed natural gas (CNG) in the capital could come down by 20 per cent and of piped natural gas (PNG) by 10 per cent in the wake of an order on Monday by the Petroleum and Natural Gas Regulatory Board (PNGRB). Indraprastha Gas Ltd (IGL), the monopoly supplier of both gases in the capital, may have to take a hit of around Rs 1,000 crore. The order has sharply reduced, with restrospective effect, network rates and compression charges. IGL, it is learnt, is looking to challenge it. PNGRB has directed IGL to reduce prices for Delhiconsumers with effect from on Monday after factoring in the reduction in both network rates (levied on CNG, PNG and industrial consumers) and the compression charges on CNG. It has also asked the company to make refunds since the 2008-09 financial year based on the changes, since that was the first financial year of operation for the company after the regulator came into being in October 2007. (For details log on to : http://www.business-standard.com/india/news/igl-gets-rs-1000-cr-hitregulator/470726/)
NTPC TO SUPPLY ENTIRE POWER OF NEW SIMHADRI PROJECT TO AP
CHENNAI/HYDERABAD: NTPC has agreed to supply the entire power of the soon-to-be-commissioned 500-Mw fourth unit of Simhadri project at Visakhapatnamto Andhra Pradesh in the next 3-4 month owing to the local supply-demand scenario, chief minister N Kiran Kumar Reddy said here on Monday. “I had spoken to the chairman of NTPC in this regard and he has agreed to my request,” the chief minister told reporters while explaining the power supply scenario and the reasons for increasing the tariff from April 1. The new Simhadri unit is expected to be connected to the state grid in a day or two. Reddy defended the hike in power tariff stating the rise in fuel costs and the average cost to serve at the consumer end had resulted in a total revenue gap of Rs 11,000 crore, of which the state would bear a subsidy of Rs 5,533 crore during 2012-13. (For details log on to : http://www.business-standard.com/india/news/ntpc-to-supply-entire-powernew-simhadri-project-to-ap/470662/)
CAIRN NOD CAN GIVE GOVT $15 BILLION MORE
NEW DELHI: After the Union Budget wiped out $1 billion from Cairn India’s market cap by raising the cess on oil production from R2,500 per tonne to R4,500, the government continues to sit on the company’s applications for both increasing production from its existing MBA (Mangala, Bhagyam and Aishwarya) fields in Rajasthan as well as to carry on more exploration in its Rajasthan block. If the applications are cleared, apart from the gains Cairn and its partner ONGC will make, the government stands to gain R6.8 crore a day (of this, R2.1 crore is for the Rajasthan government) and the country can save R12.5 crore of forex every day in the immediate future; potential gains for the government on the exploration side could be as high as $30 billion (of this, $8 billion for Rajasthan) over 20 years, or around $15 billion on a net present value basis (assuming a 10% discount rate, see graphic). (For details log on to : http://www.financialexpress.com/news/cairn-nod-can-give-govt-15-bn-more/934771/)
WIND POWER TO HELP MEET GREEN TARGET
NEW DELHI: India is banking on its wind power potential to meet the renewable energy target set under the National Action Plan on Climate Change (NAPCC) for the 12th Five-Year Plan (April 2012- March 2017). NAPCC aims to increase the share of renewable energy in the overall grid power from 5% in 2009-10 to 15% by 2020, increasing it by 1% each year. But several states have lagged behind the target due to shortage of renewable power. Sources said Indiais now estimated to have the potential to generate more than 1 lakh MW from wind, up from the earlier estimate of 49,000 MW. “Our potential to generate electricity could be more than 1 lakh MW, as per the initial findings of a study being undertaken by the Chennai-based Centre for Wind Energy Technology (CWET) to reassess India’s wind power potential,” said ministry of new and renewable energy (MNRE) joint secretary Tarun Kapoor. (For details log on to : http://www.financialexpress.com/news/wind-power-to-help-meet-green-target/934749/)
RIGHT TIME TO BUY PROPERTY: EXPERTS
NEW DELHI: With the country’s real estate sector still in a subdued state, sector experts think it is the right time for consumers to go for their dream homes before prices start to shoot up. Property consultant Jones Lang LaSalle says it is still a buyers’ market in the seven metropolitan cities as absorption rate is expected to hover around 12% of the total supply. According to the real estate consulting firm, the absorption rate climbed from 11% in the first quarter of fiscal 2011 to 12.5% in the third quarter. “The primary feelers are that it will not move around much at least in the short term,” said Ashutosh Limaye, head of research at Jones Lang LaSalle. (For details log on to : http://www.financialexpress.com/news/right-time-to-buy-property-experts/934739/)
DINERS CLUB PLANS INDIAN SUBSIDIARY TO EXPAND BUSINESS
NEW DELHI: US-based Diners Club International, which is engaged in the business of operating global card and payment network, may soon set-up a wholly-owned subsidiary in Indiato expand business. The proposed subsidiary is expected to act as a liaison with the Reserve Bank of Indiaand other regulatory authorities in Indiafor which the company has now sought various government clearances, including from the Foreign Investment Promotion Board. Diners Club International is owned by Discover Financial Services, which is engaged in the business of direct banking and payment services and is the issuer of Discover-branded debit and credit cards in the US. (For details log on to : http://www.financialexpress.com/news/diners-club-plans-indian-subsidiary-to-expand-business/934736/)