CIL, NCC, IL&FS Engineering and Reliance Power may witness some action today (31-Jul-2012)
State-run Coal India (CIL) has included sensitive issues of price pooling for coal imports and trigger point of fuel supply agreements on the agenda of its board meeting scheduled for today. Price pooling means common pricing of similar grade coal, which is arrived at by taking the average price of imported and domestic coal. A trigger point is the level of the contracted fuel that the supplier (CIL in this case) promises to deliver to the power units. It's widely expected that the board will arrive at a price pooling mechanism where the rise in generation cost, because of costlier imports, will be passed on to consumers. The board is also expected to lower the trigger point from 80% to 65%, which would mean that Coal India will pay a penalty if it fails to supply more than 65% of the contracted fuel.Infrastructure firms NCC and IL&FS Engineering have decided to completely exit from the hydroelectric project they are jointly building on the River Sorang, a tributary of Sutlej River, in Himachal Pradesh. The 100-mw power project is coming up at an investment of 849.8 crore. Close to 85% of works are completed and the project was scheduled to take off by year-end. NCC holds 67% equity in Himachal Sorang Power, the special purpose vehicle, while IL&FS Engineering holds the balance of 33%. The run-of-river hydro project was meant to supply power to certain power-starved industrial belts in Himachal Pradesh and other northern regions.Reliance Power has officially signed an agreement for a $150 million loan from Standard Chartered Bank for the 3,960 megawatt ultra mega power project in Sasan in Uttar Pradesh. The disbursal would be subject to certain conditions, but the company is expecting to start disbursals in August. Reliance Power is raising debt from US EXIM Bank ($650 million), Chinese banks ($1.1 billion) and a group of international banks including Standard Chartered Bank. Reliance Power is setting up three of the four ultra mega power projects of 4,000 mw each, awarded by the government. The plant at Sasan, which is scheduled to start operations by the end of this year, is in pact to sell power to states at Rs 1.19 for every unit.Public sector lender Union Bank of India (UBI) will open 300 new branches and set up 800 ATMs across India by March 2013, besides 100 money vending machines catering to banking needs of blinds. At present, the bank has 3,200 branches and 4,200 ATMs across India and one overseas branch in Hongkong, which account for nearly Rs 11,000 crore business. The bank has got licences from RBI for opening 50 percent of its proposed new branches in the urban areas (metros). Besides, the bank targets to upgrade 500 branches across India to UnionXperience, its redesigned branch model, offering better customer facilities like automatic cheque deposit and passbook printing facility.State-run gas utility GAIL India will commission its LNG terminal in Dabhol, on the Indian west coast, in October or November. The terminal will operate initially at about 2.5 million tonnes a year, half of its installed capacity. With gas demand expected to grow at 14 percent in the next five years, Asia's third-largest economy is scouting for long-term LNG contracts, and aims to increase its LNG handling capacity to 50 million tonnes a year by 2017 from 13.5 million tonnes now. Besides, GAIL will soon conclude a two-to-three-year deal to buy liquefied natural gas (LNG).The Oil and Natural Gas Corporation (ONGC) rolled back its earlier order barring Essar Group entities from participating in its tenders by issuing an amendment that bars only one entity in the Essar group - Essar Oilfield Services India (EOSIL). On Friday, in an amendment to its earlier order, ONGC clarified that it has decided to stop any further business dealing with the contractor - EOSIL for two years from September 5, 2011. The amendment dated July 27, specifically omits allied concerns, partners, associates , director or proprietors of the group who were earlier barred to participate in new tenders issued by the oil major. Competition watchdog CCI imposed a penalty of Rs 397.51 crore on Shree Cement for indulging in restrictive trade practices. The Competition Commission of India (CCI) has imposed the penalty on Shree Cement while issuing final order in the case against cement manufacturers and their trade body Cement Manufacturers Association (CMA). CCI last month had imposed a whopping Rs 6,307 crore fine on 11 leading cement makers, including ACC, Ambuja Cements, UltraTech, India Cements, Binani Cement, JK Cement, Madras Cement, LaFarge and Jaypee Cement. Industry body CMA was also fined with Rs 73 lakh. Wipro Infotech, the India and Middle East IT business unit of Wipro, has implemented core banking solution (CBS) for five co-operative banks. The application is hosted from Wipro's Data Center and would be supported for five years. Under the contract, Wipro is currently implementing the project for co-operative banks that comes under National Agriculture Bank for Rural Development (Nabard) across the states of Bihar, Uttar Pradesh, Maharashtra, Punjab, and Haryana. Phase one of the project will cover State Co-operative Banks (SCB) and District Co-operative Banks (DCB) of 10 states and Wipro will computerise 76 banks with about 2,790 branches.Cholamandalam Investment and Finance Company, a part of the $4.4 billion Murugappa Group company, has plans to foray into the affordable housing finance. The company is also planning to enter into the affordable housing finance as a line extension of home equity. The company entered the tractor financing as an extension of vehicle finance, and has achieved a 3.5 percent market share in the first year of its operations. On the vehicle finance division, the overall industry rate of growth of commercial vehicle was lower than financial year 2010-11, largely due to the drop in the growth of heavy commercial vehicles. Medium and heavy commercial vehicle registered a growth of eight percent, while light commercial vehicle grew by 27.36 percent. The company's overall commercial vehicle disbursement grew by 63 percent over the previous year.
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