Mumbai HC says no gas available for 3rd parties other than NTPC, RNRL, RIL; RIL not free to negotiate gas with 3rd parties

Mumbai HC says no gas available for 3rd parties other than NTPC, RNRL, RIL. It says KG Basin gas was not available to 3rd parties for 8 years. It has put on hod distribution of gas identified for 3rd parties from 2008.

Mumbai HC says initial production of 80 mmscmd earmarked for NTPC, RIL, RNRL. It says it was inappropriate for RIL to commit gas that is subject of RNRL petition. The Mumbai HC says RIL was not free to negotiate gas with 3rd parties.



Maharashtra Govt gives nod for Navi Mumbai SEZ; DLF, Uttam Galva, Gitanjali Gems SEZ would also come up for approval tomm

Maharashtra Govt has given nod for Navi Mumbai SEZ. Govt says there has been no human rights violation in Navi Mumbai SEZ. Board of Approvals would consider Navi Mumbai SEZ on July 12.

Department Of Revenue had pointed out human rights violation in Navi Mumbai SEZ. Board of Approvals had asked for report from State Govt and developer.

Board of Approvals would consider 46 SEZs on June 22. DLF's multi-product SEZ in Rajasthan would come up for approval tomorrow. Uttam Galva, Gitanjali Gems SEZ would also come up for approval.

Othere SEZs that would also come up for approvals are Reliance Communications SEZ in Maharashtra and Foxconn SEZ in Chennai.


FM says to increase sugar buffer stock by another 30 lakh tonnes.

Indian sugar futures rose on Wednesday on hopes that the government would soon increase the amount of the sweetner it keeps in buffer stocks, while soya oil fell in line with overseas markets.

By June sugar futures on the National Commodity and Derivatives Exchange (NCDEX) were up Rs 18 at 1,245 per 100 kg, while July futures had risen from Rs 6 to 1,293. "The trade is hopeful that the cabinet will take up the issue of an increase in the sugar buffer stock limit on Thursday to help mills," a Mumbai-based dealer said.

The food ministry had favoured increasing the maximum amount of sugar that can be held to 5 million tonnes from 2 million tonnes to help mills hit by falling prices. The country is likely to churn out a record 28 million tonnes of the sweetener in the year to September, up from 19.3 million tonnes last year. India consumes 19-20 million tonnes annually.

"If the government clears the proposal ... it will be shot in the arm after a long spell of subdued sentiment," the dealer said. Domestic supplies had swelled after a ban imposed on sugar exports by the government last July. India lifted the restriction in January, but global prices had fallen by then.


Britannia Industries flares up on news that Dannone may buy peace

Britannia has touched an intra day high of Rs 1,630 and an intra day low of Rs 1,502. Currently, the share is quoting at Rs 1,550, up Rs 78.20, or 5.31%. It is trading with volumes of 4,927 shares, compared to its 5-day average of 2,642 shares, an increase of 86.47%. Yesterday the share closed up 0.70% or Rs 10.30 at Rs 1,471.80.

Reports suggest that French dairy giant, Danone may consider a peace formula comprising of a voluntary exit from Britannia to resolve its tussle with the Wadia group.

According to reports Danone is willing to pay a compensation to terminate its joint venture with the Wadias. In return, Danone wants to operate independently in India. Reports peg the disengagement price from Britannia over Rs 1000 crore. Danone holds 25.5% stake in Britannia.


Reports suggest Danone may consider peace formula to exit Britannia voluntarily in a bid to resolve dispute with Wadias

Reports suggest that French dairy giant, Danone may consider a peace formula comprising of a voluntary exit from Britannia to resolve its tussle with the Wadia group.

According to reports Danone is willing to pay a compensation to terminate its joint venture with the Wadias. In return, Danone wants to operate independently in India. Reports peg the disengagement price from Britannia over Rs 1000 crore. Danone holds 25.5% stake in Britannia.


Govt wants merger of 4 SBI arms with SBI to help increase its asset size by Rs 1 lakh Cr

The government wants the State Bank of India (SBI) to acquire its smaller associates to achieve scale and size. The government is working on a proposal, along with the SBI management, to merge four of its subsidiaries, the State Banks of Saurashtra, Mysore, Indore and Bikaner & Jaipur, with SBI to help increase its assets size by Rs 1 lakh crore.

However, leaving the bigger associates, such as State Banks of Patiala, Travancore and Hyderabad, out of the merger will not serve the purpose of achieving size, insiders say. The seven associates put together have assets of over Rs 3.5 lakh crore.

Associate banks like the State Banks of Patiala, Travancore and Hyderabad, that have a strong legacy in their regions, will not be merged with the parent. It is possible the smaller associate banks that do not have a strong regional presence will merge with the parent bank.

The merger of the smaller associates is not so much driven by size or their regional relevance but the valuation of SBI stake in them. For instance, its valuations in the stronger associates will be greater if they are not merged with the parent bank. Besides, merging the stronger associate banks with the parent will increase the capital adequacy requirements for SBI due to their larger balance sheets. Merging the smaller associates will improve operational efficiency for SBI. However, not including the bigger associates like State Banks of Hyderabad and Patiala will not help SBI achieve size.

Analysts say there are limited options before SBI to raise capital to meet its expansion needs. It can raise capital by diluting government holding to 55% from 59%. It, therefore, has to resort to unlocking its value in subsidiaries.

However, the unlocking value story has not enthused markets and the SBI stock continues to be an under performer, a stock analyst said. If SBI were to offload its stake in subsidiaries till the 51% level, it could realise Rs 25,000 crore, sources said.

Parliament approved the amendments to the SBI Subsidiary Bank Act, which removed rules restricting ownership of shares in the banks. Before the change, investors (except SBI) could not hold more than 200 shares each. The changes allowed SBI to reduce its stake to 51%.

It currently holds 100% in some cases and 74-76% in others. Once the Act is implemented, shares of the three listed entities, SBT, SBBJ and SBM, will fare well, analysts said. The unlisted subsidiaries, including the State Bank of Hyderabad, State Bank of Patiala, State Bank of Indore and State Bank of Saurashtra, are awaiting communication from SBI for listing formalities.



Nissan developing small car at $ 3,000, car being developed by Nissan and Renault, M&M may not be partner for venture

The partner for Renault and Nissan’s small car may not be M&M - the combine's Indian partner for manufacturing and marketing Renault’s cars. Sources say there has been no discussion between Renault and its JV partner M&M for any small car.

Pawan Goenka, President of M&M's Automotive Sector said there are some discussions with Renault outside of the existing ventures but declined to divulge details.

Carlos Ghosn who heads both the companies reportedly said that Nissan is also developing a small car, which would be priced at $ 3,000. The launch date of the car is not decided yet. Ghosn reportedly said that the car is being developed together with Renault and an Indian partner.