Daily News Roundup - Sep 12 2011

Australia's largest telecommunications company Telstra is said to have engaged TCS for outsourcing parts of its finance, accounting and voice-related back-office processes. This multi –year is said to be worth US$50mn. (BL)

Following directions from the Union Ministry of Finance to help borrowers in retail and MSME segments to tide over the problem of rising interest rates, Indian Overseas Bank has decided to increase the repayment period for these borrowers. (BL)



With big retail chains as clientile, Fresh and Healthy Enterprises Ltd (FHEL), a fully owned subsidiary of Container Corporation of India has planned an expansion in its cold storage business. FHEL to invest Rs15bn in opening cold storage units. (BS)

Lavasa Corporation is still awaiting clearance from the Union ministry of Environment on its planned hill city project near Pune. (BS)

Apax Partners is set for a major play in the growing FMCG sector in India and discussions are on with Jyothy Laboratories to invest as much as US$150mn and also with Chennai-based CavinKare for an estimated investment of another US$150 mn. (BS)

Punjab National Bank, whose total advances to agriculture segment stood at over Rs340bn is holding ‘Mega Recovery Camps’ all over India aimed at small agricultural loans. (BS)

State Bank of India may, in the coming years, double its annual spending on information technology from the present Rs5bn (BS)

The oil ministry is expected to soon approve Cairn India's proposal to start pumping crude oil from the Bhagyam field that would ramp up the Rajasthan block's output by a third, to 165,000 barrel per day. (ET)

Rajasthan Spinning & Weaving Mills (RSWM) plans to invest Rs15bn in capacity expansion as it aims to become a US$1bn billion entity in the next five years. (ET)

The government has given green signal to MMTC to pick up stake in Russian diamond major Alrosa, subject to it scrutinizing the company.
Alrosa plans to divest 20% of its equity in the current year in a deal expected to cross US$2bn.(ET)

Zandu Realty has entered into an agreement with Mumbai-based realty developer Sheth Corporation to construct, build and develop residential housing complex on its land parcel at Dadar in central Mumbai. (ET)

Ford has stepped on the gas to exhibit the ruthless aggression that American gas-guzzlers have been known for in its marketing initiatives and advertisement campaigns.(ET)

French tyre manufacturer Michelin said work on its Rs40bni facility is on track and production will begin by November next year. (ET)
Economy Snippets

Insurance companies promoted by corporate houses will not be allowed to invest more than five per cent in group companies, the insurance regulator has proposed. (BS)

Indian power companies have slowed down project implementation and are unable to operate new plants at targeted capacity, which may lead to defaults of over Rs1350bn from the sector that is battling low tariffs, scarce fuel and land acquisition problems. (ET)

Inter-ministerial differences persist over freeing of urea from government price control, with strong opposition to the move coming from ministries of agriculture and fertilisers sources said.(ET)

The Maharashtra units of both major partners in the ruling coaltion, the Congress and the Nationalist Congress Party, have asked the central government to immediately lift the sudden ban on onion exports. (BS)