Daily News Roundup - Sep 24 2012

BPCL which is setting up its first propylene unit in Kochi, said it is ready to offer 51% stake in the Rs60bn project to its Korean joint venture partner LG Chemicals. (ET) After cutting its base rate by 25 basis points, State Bank of India reduced its benchmark prime lending rate (BPLR) by a similar margin. The public sector bank’s BPLR now stands at 14.5%. (BS) Diageo Plc is in advanced talks to buy a stake in United Spirits. (BS) Reliance Industries and its partner BP plan to surrender two more exploration blocks, reducing their tally to 14 from 21 a year ago. (ET) Aban Offshore is planning to restructure part of its US$2.6bn from rupee loan to foreign currency loan, which would help it to reduce the interest rate. (BS) Suzlon group subsidiary REpower Systems SE has signed a contract for delivery and construction of 22 wind turbines in Poland for the countrys biggest wind farm project. (BS) NTPC will raise about US$1.2bn overseas by March 2014 through bonds and syndicated loans. (ET) ABG Shipyard may raise Rs10bn to fund its expansion and working capital needs. (ET) Cairn India’s plans for enhancing oil production from its Rajasthan block are likely to drive the domestic crude oil production by 3.1% in FY13, a Centre for Monitoring Indian Economy survey has said. (BS) JSW Steel’s plans to set up a 3mn ton steel plant in West Bengal is likely to get further delayed following the government decision to deallocate Gourangdih ABC coal mine. (BS) In view of the growing supply deficit of coal, the Planning Commission has suggested spinning off Coal India’s subsidiaries into separate entities so that each one of them can pursue its own goals. (BS) SKS Ispat & Power and Bhushan Steel have challenged the deallocation of their coal blocks in the Delhi High Court, even before they received any formal communication about cancellation. (ET) Economy Snippets India’s trade deficit is likely to contract to about a fifth of the deficit in 2011-12, owing to a fall in gold imports. (BS) The finance ministry has decided to freeze the long-pending proposal to have a separate debt management office. (BS) The Planning Commission has set a target of adding 88,000 Mw of power generation capacity in the 12th Plan period (2012-17). The Commission had earlier estimated a capacity addition requirement of 75,785 Mw. (BS) The Competition Commission of India may soon ask its investigation wing to carry out a detailed investigation into the alleged cartel-like behaviour of oil marketing companies increasing and decreasing prices of petrol in unison. (ET)