Daily News Roundup - July 2 2012

GVK Power & Infrastructure Limited said the financial closure for its US$10-bn Alpha coal and rail project in Queensland, Australia, was expected by March 2013, as opposed to the original deadline of December 2012. (BS) Steel Authority of India (SAIL) will invest Rs.30bn to quadruple capacity of its Gua iron ore mine in Jharkhand to 10 million tonnes per annum (mtpa) and set up a 4 mtpa pelletisation plant. (BS) Reliance Industries (RIL) has decided to reopen over 50 fuel pumps in Gujarat. (BS) Allahabad Bank is planning to increase its footprint in South India by opening 100 of the 250 branches proposed for the current year in the south. (BS) For Maruti Suzuki, this could well be the game changer in the small car segment which makes up for 45% of the market. The company is working overtime on developing a small two-cylinder 800cc diesel engine along with its parent Suzuki Motor Corp in Japan. (ET) In the midst of a slowdown in the economy Hindalco Industries, is on an aggressive drive to raise funds for its biggest greenfield project in Odisha. The country’s largest non-ferrous metals producer plans to tap about Rs.90bn for the project which is being re-configured mirroring the ambitions of its peer, Vedanta Aluminium. (ET) Indian makers of dairy products are scouting for investors to fund their expansion plans, setting the stage for potential private equity (PE) deals in the world’s biggest milk-producing nation. Kwality Dairy is looking to raise about Rd.5.7bn from PE funds, Ahmednagar-based Prabhat Dairy is in talks with funds such as Infrastructure Development Finance Company (IDFC) and Abraaj Capital to raise up to .Rs.1bn 100. (ET) Bharti Airtel, Idea Cellular and others are looking to shift a part of their data services to wi-fi hotspots, freeing up scarce 2G and 3G airwaves for mobile telephony. (ET) Atul limited is close to finalising an investor for its aromatic business that would provide it access to funds for expansion, said two people familiar with the development. The company may sell about 20% stake in its aromatic division, which manufactures para anisic aldehyde, para cresol and para anisic alcohol, chemicals used in manufacturing cosmetics, bulk drugs and animal nutrients, said the two people. (ET) State Bank of India has raised its interest rate by 25 basis points to 9% for three to five year tenor deposits of less than Rs.1.5mnn.(Mint) Economy Snippets The Empowered Group of Ministers (EGoM) on telecom has dropped a clause in rules which, if not reversed, could create a significant problem for incumbent operators.Under the clause, incumbent operators had the option of either continuing with their existing licence terms of offering only 2G services in the 1,800-MHz band or migrate to a liberal spectrum regime but only after paying the auction-determined price. Under the liberalised regime, operators could have used their spectrum for any services —2G, 3G or 4G.(BS) The Union finance ministry is pushing for an overhaul in government policy on foreign direct investment (FDI) in single-brand retail, to accommodate the demands of companies such as Scandinavian furniture giant IKEA, which has applied for clearance to set up stores in the country.(BS)\ The government is planning a mandatory policy on car recalls as the auto industry seems reluctant to accept any penalty or make companies compulsorily announce defects in vehicles.(TOI) Gems and jewellery exports declined by 12 % year-on-year to US$3.2bn in May on account of weak demand in major markets like Europe.(TOI)