Daily News Roundup - Dec 29 2009

Reliance Industries has updated its non-binding proposal to acquire LyondellBasell, as per media reports; RIL’s new offer has a higher cash component of US$5-6bn from the earlier offer of US$2bn. (FE)

SAIL and Tata Steel have hiked steel prices by up to Rs 2,000/ton with immediate effect on the back of rising demand. (ET)

Reliance Power has started power generation at its 1,200MW Rosa Power Project in Shahjahanpur district of Uttar Pradesh. (BS)

SBI to set up wind power projects in three states with a combined capacity of 15.5 Mw for captive consumption at various offices and branches. (BS)

Bajaj Auto has phased out two more models thereby phasing out four bike models in four months. (BS)

Reliance Power Transmission Ltd, a subsidiary of Reliance Infrastructure, is believed to have bagged two transmission projects worth Rs 41bn connecting six states. (BS)

Idea secures Rs95bn credit line for 3G push. (ET)

Dr Reddy’s Labs plans to launch new generic drugs in various therapeutic segments to push domestic operations. (BS)

US FDA has issued a warning letter to Ranbaxy’s American subsidiary, OHM Laboratories, for violating current good manufacturing practice. (ET)

Dabur India’s shareholders to meet in the first week of February to discuss merger proposal of Fern Care Pharma with the company. (ET)

OBC plans to expand its footprint in South India by acquiring a bank. (BS)

Glenmark Generics receives tentative approval from US FDA for generic pramipexole dihydrochloride tablets used in the treatment of parkinson disease. (ET)

ICICI Bank plans to raise Rs40bn of capital through Upper Tier-II and Tier-I perpetual bonds to support business growth. (BS)

ONGC has awarded US$162mn engineering and construction contract for an oil well platform project at the Mumbai High Field to Abu Dhabi-based National Petroleum Construction Company. (BS)

Goldman Sachs is poised to invest US$115mn in Max India which will be used by the company to fund its insurance, healthcare and specialty plastics businesses. (BS)

Jet Airways has received the Cabinet Committee on Economic Affairs approval to raise up to US$400mn. (FE)

PowerGrid plans 7 transmission corridors at an investment of Rs500bn to wheel power from new projects to North, West regions. (BL)

Thermax is designing and building a 250KW solar power plant at Shive village, near Pune. (BL)

Infosys Technologies has been selected to implement a Rs3.9bn IT project for Karnataka's power distribution utilities. (FE)

Fortis Hospitals plans to invest Rs2.5bn to expand its facilities pan-India. (FE)

Promoters of GMR Group are looking to exit their sugar business. (TOI)

Tata Motors says all existing bookings of the Nano will be delivered at current prices, notwithstanding the rising input costs. (TOI)

Government hopes to raise over Rs230bn from the disinvestment of NMDC; the follow-on offering for the PSU is likely to take place in Mar’ 10. (TOI)

Generation Corp. of AP has secured the State Government nod to go ahead with the first phase of 2,100MW gas-based power project planned at Karimnagar district of the State. (BL)

Hansen Transmissions sees opportunities in the Chinese market after Suzlon Energy sold its controlling stake. (DNA)

Domestic airlines such as Jet Airways, Air India, Kingfisher Airlines and low cost carriers are considering raising air fares by up to 25% in January. (ET)

The government to appoint a global consultant to evolve a pricing formula for crude produced at RIL’s Krishna-Godavari basin fields and Cairn India’s barmer oil fields. (ET)

Unitech plans to raise US$700mn through FCCBs has run into trouble with the finance ministry and the RBI objecting to exempt it from a three-year lock-in clause applicable to such investments in construction. (ET)

Ansal API will raise around Rs6.5bn through QIP. (FE)

Infosys and Patni Computers amongst 14 firms eligible to bid for India’s almost US$10bn technology-led power sector modernisation programme. (ET)

L&T and Lanco Infratech are developing two key hydropower projects in the hilly Rudraprayag district of Uttarakhand to face the heat of the ‘save river campaign’. (BS)

BoI to offer home loans at 8%. (ET)

Andhra Bank has raised funds to the tune of Rs6bn by issuing bonds. (ET)

Rolta India has bought back FCCBs worth US$15mn from the international market at a discount rate. (ET)

Binani Cement has signed long-term supply agreements with shipping companies to save on logistical costs. (ET)

Lingaraj open cast coal mines under the command area of Mahanadi Coalfields Limited (MCL), linked to the 3,000MW NTPC Kaniha plant, the second largest power plant in the country, is facing closure due to problems in land availability. (BS)

UTV and Sun are in talks for Tamil movie channel under which UTV will dub movies from Hindi, English and other languages. (BS)

Ennore Coke plans to raise Rs1.3bn through PE. (BS)

The auction of spectrum for third generation (3G) mobile services would be delayed by over a month and is likely to start by the end of February. (BS)

Mobile operators winning the auction for third generation (3G) mobile spectrum may be asked to pay the entire bid amount upfront within 20 days after the bidding process is completed. (BL)

Foreign exchange reserves fall by US$2.1bn to US$284bn, for the week ended December 18. (BL)

RBI’s recent diktat to augment their loan loss coverage ratio to 70% by Sep’ 10 has prompted some banks to put a part of their bad loans portfolio on the block. (BL)

Finance Ministry to raise the export duty on iron lumps from the current 5% to 10%; government also imposes a 5% export duty on iron ore fines. (BL)

Food Inflation eases to 18.65% for the week ended December 12, from 19.95% in the previous week. (ET)

Six core industries grew at a three-month high annual rate of 5.3% in November 2009. (ET)

SEBI may hike open offer size to 100% from 20%. (TOI)

India to grow at 7% this fiscal, says PM. (TOI)

GST introduction may be delayed by a year. (TOI)

Petroleum ministry plans to build in-competition principles in the functioning of the proposed regulator for long-distance gas pipeline networks so as to reduce natural monopolies in the gas distribution sector. (FE)

Foreign direct investment for the month of November surged by 60% to US$1.7bn. (FE)

The Railways has decided to link freight rates for different commodities to their respective price index or other benchmarks including prices on the derivatives exchanges. (ET)

The date for rolling out the Goods and Services Tax could be announced on January 8, 2010. (ET)

The government may modify the draft direct tax code to retain tax shelters on interest and principal repayments for home loans to make the proposed new code more attractive. (ET)

RBI has hiked the daily ceiling for mobile banking to Rs50,000 from Rs15,000. (ET)

Private fuel retailers may also get subsidies. (ET)

Government clarified that manufacturers that carry out production as well as repackaging activity in the tax-free zone of Himachal Pradesh and Uttarakhand will be able to enjoy tax exemption. (ET)

Government approves a plan to develop 352km of highways with an investment of Rs297mn. (ET)

Government extended for the third time the ban on import of dairy products, including chocolates, from China for another six months. (ET)

FDI policy to be updated every six months. (ET)

Peak customs duty unlikely to be lashed this year. (ET)