GEB defaults on payment to two IPPs
Mumbai: In the first instance of its kind, the Gujarat Electricity Board (GEB) is understood to have defaulted to the tune of Rs. 260 crore on dues owed to two independent power projects set up by the Essar group and Gujarat Industrial Power Corporation (GIPCL).

The board reportedly owes Rs 60 crore to Essar Power which has a 500 mw plant at Hazira and and Rs 200 crore to GIPCL.

According to officials of the board, the default has been a result of a severe liquidity crunch, caused by the skewed tariff policy being followed. The GEB official also admitted that the board had defaulted to the PowerGen-promoted Gujarat Energy Generation Company. The board has, however, arrived at an understanding with the IPPs on the rescheduling of the payment.
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Stanchart holds board meeting in India
Mumbai: In what can be clearly read as a measure of confidence in the Indian operations of the global bank, the directors of Standard Chartered Bank are to meet in India for a meeting of the board of directors. The Standard Chartered global board meets once a year outside the group’s headquarters in London.

Being held in India after a gap of five years, the meeting assumes significance against the backdrop of Stanchart’s acquisition of the Grindlays business in the Middle East and South Asia.

The directors who will attend the board meeting in New Delhi are chairman, Sir Patrick Gillam, group chief executive Mr. G S Talwar and group executive directors Mr. Christopher Casrtleman, Mr. E Mervyn Davles JP, Mr. Chris Keljik, Mr. Nigel Kenny, Mr. Karl S Nargolwala and Mr. Mike Denoma.

Non-executive directors Lord Stewartby, Mr. Ronnie C Chan, Sir Ralph Robins, Mr. Ho Kwon Ping, Mr. Kevith AV Mackrell, Mr. Hugh E Norton, Sir K C Chow, Mr. Cob Stenham, Mr. David Moir and Mr. Barry Clare will also take part in the meeting.
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HDFC against any merger with its bank
Mumbai: The board of India’s leading housing finance company ,HDFC, has decided unanimously not to merge with its banking subsidiary, HDFC Bank. The board has decided to continue being the holding company for its non-housing finance activities, which include commercial banking and insurance.

The HDFC decision to stick to the existing pattern is in stark contrast to the decision of another financial institution, ICICI Ltd, which has been planning to merge with its banking subsidiary. It is understood that the HDFC view on converting itself into a commercial bank to access cheap demand deposits is unviable. According to Mr. Deepak Parekh, chairman of the institution, the 25 per cent statutory liquidity ratio (SLR), 8.5 per cent cash reserve ratio (CRR) and the 40 per cent priority sector lendings stipulations which a bank has to comply with, do not make this decision an attractive proposition.
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Insurance privatisation enters final round
New Delhi: With four companies, including Reliance, filing their R2 application with the insurance regulatory authority, Insurance Regulatory and Development Authority (IRDA), the licensing process for the first round of insurance licences has entered the final round.

While IRDA has received 13 applications in the first phase, it has shortlisted Sundaram Royal & Sun Alliance, ICICI-Prudential, Reliance (non-life) and HDFC-Standard Life for the first round of licences.

The regulator is expected to ask about half-a-dozen applicants to file their R2s by the end of the month. The cut-off date for the second round has not been decided but a decision is expected soon.
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