Daily News Roundup - Nov 23 2011

An international strategic investor has agreed to pick up 10 % equity stake in Pipavav shipyard in Gujarat for Rs9bn.(BL)

Ashok Leyland has entered the construction equipment business, along with American company John Deere, with the launch of the 435 backhoe loader.(BL)

In the next three-four weeks, the Petroleum Ministry will decide on the action to be taken against Reliance Industries Ltd for its gas output falling below target from the East Coast fields.(BL)

Federal Bank is planning to infuse Rs1.2bn equity in its non-banking financial company, Fedbank Financial Services Ltd.(BL)



Force Motors Limited, which launched its Force One sports utility vehicle is also planning to launch a 9-seater van in the next two years.(BS)

The auditors of India's biggest carrier the Jet Airways have warned the company required to raise funds or generate cash flows in the future to meets its obligations, including financial support to its subsidiary JetLite.(FE)

Vikram Akula, is set to lose control over the company
as the board of SKS Microfinance, which will meet today will likely accept Akula's resignation as the company's executive chairman, adding another chapter to months of rough-and-tumble in the micro-lender that saw its chief executive officer sacked amid mounting losses and plunging share prices.(ET)

Force Motors Ltd plans to invest Rs10bn over the next two years for the development of new models. (ET)

GTN Industries, an integrated yarns, fabrics and apparels group, is planning to pump in over Rs0.2bn in its mercerized cotton garment facilities this fiscal to expand base.(ET)

Gail India's aim to buy the BG Group's controlling stake in Gujarat Gas Company Limited (GGCL), will face a stiff challenge from the diversified Adani Group and archrival Gujarat State Petroleum Corp (GSPC), industry officials said. (ET)

Oil and Natural Gas Corp is likely to give its 'no-objection certificate' to Cairn Energy Plc's stake sale in its Indian unit to Vedanta Resources by the year-end.(ET)

Gujarat State Petroleum Corp (GSPC) is in talks with Singapore's sovereign wealth fund, GIC, for raising funds,(BS)

Kraft Foods Inc is betting big on the Indian consumer's rising spending power as it firms up plans to become one of the top 5 food companies in the country in the coming years, in an effort to offset sluggish growth in the developed markets.(FE)
Economy Snippets

Without giving any timeline for the Reserve Bank of India to intervene in the foreign exchange market, the RBI Governor, Dr D Subbarao, said the apex bank was watching the situation closely.(BL)

The Finance Minister, Mr Pranab Mukherjee cautioned that too much emphasis on meeting the fiscal deficit target of 4.6 % for 2011-12 may hurt economic growth.(BL)

Given the sharp fall in industrial production and economic slowdown during the last few months, steel demand growth is set to more than halve this fiscal from the earlier estimate of 12 %. (BL)

Facing margin squeeze as the rupee continued to depreciate against the dollar, the fertiliser industry has asked the international suppliers to bring down prices of of the product they export to India.(BS)

The government's fiscal deficit target seems to be in fresh danger, with direct tax collections which contribute more than half of the central government's revenue being only 40% of the set target in the last eight months.(ET)

Fuel shortages and funding woes notwithstanding, private sector developers accounted for much of the power capacity addition that has taken place so far this fiscal.(BL)