Indian Business Headlines for February 12, 2009

IRDA to set new guidlines for invstment by insurance cos

The IRDA is working on implementing a fresh set of investment guidelines for insurance companies; where insurance companies need to separate investment portfolio into three different categories. The new rules will demand companies to declare their category of investment and they would not be able to alter the category once its decided.
Source: Moneycontrol Top Headlines | 12 Feb 2009 | 4:30 pm

UCO Bank sees 20% loan book growth for FY09, FY10

SK Goel, Chairman, UCO Bank expects around 20% growth on the loan book this year. Next year too, we are likely to get Rs 750 crore, which is already approved by the government and with that also our capital adequacy will remain above 12% and our loan book growth target would be about 20%, he said.
Source: Moneycontrol Top Headlines | 12 Feb 2009 | 4:04 pm

Consumer durable ind halts expansions: Videocon

Venugopal Dhoot, CMD of Videocon Industries, believes industries have reoriented production looking at the global meltdown and slowing exports. He said the industry should make arrangements in such a way that at least 90% capacity is used. He added Videocon is using 95% capacity.
Source: Moneycontrol Top Headlines | 12 Feb 2009 | 3:15 pm

Punj Lloyd decides not to convert warrants into equity

In an important development, Punj Lloyd promoters have decided to let their Rs 1 crore warrant lapse by not opting for conversion into equity at Rs 254 per share and they will forfeit some Rs 25 crore upfront payments.
Source: Moneycontrol Top Headlines | 12 Feb 2009 | 3:14 pm

Customs duty waiver for newsprint: Implications for ind

The government has exempted newsprint and lightweight coated paper from customs duty. So, what implications does this move hold out for the newsprint companies? CNBCTV18\'s Ekta Batra delves deeper.
Source: Moneycontrol Top Headlines | 12 Feb 2009 | 3:05 pm

Promoters have not pledged or sold shares: Hexaware

Atul Nissar, Chairman, Hexaware, has denied all reports of any sale or pledging of shares by the companys promoters. He also clarified that there hasnt been any talk whatsoever with respect to any type of acquisition.
Source: Moneycontrol Top Headlines | 12 Feb 2009 | 2:41 pm

Tata Communications investing $430 mn in Asia

Singapore: Indian telecoms firm Tata Communications is investing $430 million in an Asian Internet data centre and cable system, the firm said Thursday.

“These investments are a key part of the company’s commitment to enhance its robust global infrastructure as part of its two-billion US dollar expansion plan over three years,” it said in a statement.

The data centre, the Tata Communications Exchange, will be operational in 2010 and will host servers and store data for the gaming sector, content providers and others, company officials said at a news conference.

“The Asian market continues to be promising, even in the current economic environment,” Vinod Kumar, president and chief operating officer for Tata Communications, said in the statement.

The company said it has already completed the “main segment” of the $250 million cable system, linking Singapore, Hong Kong, Japan, Vietnam and the Philippines, to provide increased data and voice reliability in the region.

Known as the TGN-Intra Asia Cable System, it spans 6,700-kilometres (4,150 miles).

“It increases data and voice reliability by providing new route diversity for traffic generated throughout and into Asia Pacific,” the statement said.

Tata officials told reporters the undersea network will provide a link between Chennai in India, the Asia Pacific and the United States.

They said its route will avoid an earthquake zone that, in late 2006, left millions of people across Asia without full Internet services after a 7.1-magnitude earthquake hit Taiwan. The quake disturbed several massive submarine cables linking the region with the US and beyond.

Beh Swan Gin, managing director of Singapore’s Economic Development Board, said the investments “represent a strong vote of confidence for Singapore, and underline the growing partnership between Tata and Singapore.”

Tata Communications is part of India’s Tata group, whose chief Ratan Tata last month urged top management to defer all “avoidable expenditure and growth plans” to confront the global financial crisis which has severely affected the group, the Hindustan Times quoted him saying in an an email to staff.

Asked about the reported comments, Kumar said the company will “move and seize that opportunity” when it sees a chance to consolidate the firm’s position.

“We’ve consciously chosen the areas that we want to pursue even in this environment,” added Srinath Narasimhan, managing director and CEO of Tata Communications.

“And we’re being very careful about how we take hold of opportunities and where we put what amounts of money in what effort.”

Narasimhan declined to give details on how the data centre and cable project are being funded except to say it was through “various capital-raising options, either as notes or equity”.

Source: LatestNews-Home - Livemint.com | 12 Feb 2009 | 1:27 pm