document.writeln("

Assocham: Raw material price rise hurts steel companies bottomlines
New Delhi: Rise in the cost of raw material is putting pressure on Indian steel companies. Raw materials prices have risen by almost 9 per cent year-on-year in the second quarter of this fiscal, according to an Assocham Eco Pulse (AEP) study.

The study has found that integrated steel majors like Tata Steel, SAIL and Essar Steel, were feeling the pinch more as sheer size of operations made them more prone to price disturbances in the market. According to the study, soaring prices of coking coal and iron ore had a direct hit on the bottomline of the top ten steel companies, which saw average net profit decline by 22.12 per cent.

Net sales of steel companies increased by a mere 1.64 percent and net profit decreased by 22.12 per cent.
Back to News Review index page  

Government plans to divest 10 per cent stake in profit making PSUs.
New Delhi: The finance ministry has shortlisted 11 profit-making public sector undertakings (PSUs) for disinvestment in the current financial year and has sent the list to the Prime Minister's Office (PMO).

In each of these PSUs, the government plans to divest 10 per cent stake. However, the option remains open if the Govt. wishes to divest government stake or goes for dilution through issuance of fresh shares. In the case of the latter, however, there would be 7.5 per cent divestment and an additional 7.5 per cent fresh issue, taking the total divestment to 15 per cent.

According to Govt. sources at least six of these PSUs would enter the market before the year-end. Govt. stake in the 11 PSUs vary between 80 per cent and close to 100 per cent.
The government says it does not expect any opposition from any quarter to the proposed divestment and that the Left parties had already been taken into confidence.

Earlier, finance minister P Chidambaram had announced the Govt.'s intention of selling small stakes in profit-making PSUs other than the "navaratnas. There are over 240 central PSUs and eight of them have been accorded "navaratna" status, including the big oil PSUs and Bharat Heavy Electricals Ltd (Bhel).

A total of 144 PSUs are making profits.
Back to News Review index page  

British Airways to increase focus on India
New Delhi: India is rapidly assuming importance for British Airways in its strategy to increase passenger and freight volumes and operational profits. The airlines' passenger numbers remained flat at 22 million in the six months up to October this year as compared with the same period in 2004.

A recent bilateral air services agreement between India and the United Kingdom has opened the gates for an increase in destination and frequency numbers, and BA is making the best of the opportunity. Apart from Delhi and Mumbai the airline has begun operations between Bangalore and London, operating five days a week.

The airline has also increased frequencies between London and Mumbai (twice a day from one) and between London and Chennai (six days a week from two). It has also announced a twice-a-day frequency between London and Delhi starting in the summer of 2006.

BA also has Tier II cities such as Hyderabad on its radar, although the current focus is on increasing frequencies to existing destinations and consolidating its position.
Back to News Review index page  

IOC wants interest paid on oil pool account arrears
New Delhi: Indian Oil Corporation which got a major chunk of the `seven per cent Oil Companies Special Bonds 2012' issued recently, has asked the Petroleum Ministry to consider three years' interest payment as these bonds were payable three years ago (2002).

A senior IOC official said the Government had announced the release of the second tranche of oil bonds, amounting to Rs5,762 crore, to oil companies in order to liquidate the balance payable to these entities from the oil pool account. IOC had obtained Rs2,320.80 crore and has sought a three-year interest on the arrears from the Government. The interest rate was not revealed.

Following the dismantling of the administered price mechanism from April 1, 2002, the oil pool account was also wound up from the same date. The Government had issued oil bonds amounting to Rs9,000 crore on March 30, 2002, with a view to partially liquidating the outstanding of the oil companies estimated to be over Rs14,000 crore against the account. These bonds had a maturity of seven years.
Back to News Review index page  

Skoda to double capacity
Mumbai: Skoda Auto India, a subsidiary of the Volkswagen Group, has commissioned its recently expanded assembly line at Aurangabad. This doubles the company production capacity from 15,000 units to 30,000 units in a year.

Work on the expansion started in March this year and was completed ahead of schedule. The company is now looking to make India the manufacturing hub for the South Asian region.

The company roped in Czech President Vaclav Klaus to grace the ceremony.

The company delivered its 20,000th Octavia to customers in the middle of this year and the figure will cross 25,000 by the year-end.
Back to News Review index page  

Avalon Tech opens fourth manufacturing facility at MEPZ
Chennai: Avalon Technologies, a leading electronics manufacturing services provider, has opened its fourth manufacturing facility at Madras Export Processing Zone (MEPZ).
Set up at a cost of Rs15 crore the wholly owned subsidiary, of US-based Sienna Corporation, already has three manufacturing facilities in MEPZ.
Back to News Review index page  

TCS to employ additional 1,000 people in Kolkata
Kolkata: India largest IT company Tata Consultancy Services (TCS), has announced plans to expand its software development and IT solutions centre in Kolkata and hire 1,000 people for it by 31 March 2006 increasing the staff strength in the city centre to 5,500.

The company also plans to recruit 18,000 people nationwide by the end of the financial year and expand its current services of software development and IT solutions.
Back to News Review index page