Government rejects Shell's investment plan
New Delhi: In a summary rejection of the world’s largest integrated oil and gas company, Royal Dutch/Shell’s plans, the union government has turned down its proposal to invest Rs 672 crore in the country.

Among the investment plans were a bid to invest $13 million in acquiring up to 11 per cent in the capital of Gujarat State Petronet and its proposal to float subsidiaries, involving investments worth $40 million, for developing a gas pipeline from Hazira to Mora.

The government also rejected the gas major’s plan to pump in $32 million for the purpose of procuring LNG and natural gas and to arrange for the required services for the regassification of LNG, and the storage, purchase, transportation and sale of LNG and gas to its consumers.

To add insult to injury, the government has also disapproved its attempt to increase its investment in subsidiary, Hazira LNG, by Rs 332 crore.

The grounds on which the investment proposal was disapproved was that the same did not meet the specifications of the Gujarat Gas Act.

Besides Gujarat, the oil and gas major had also recently inked an MoU with the UP government for providing gas from Hazira and Bangladesh to the state’s power projects, fertiliser units, cities, and CNG facilities and for converting the existing industrial units to gas-based ones.
Back to News Review index page  

Tata Infotech facing exodus of professionals
Mumbai: Despite the downturn in the IT industry, with scores of Indian IT professionals on the bench in the US, India’s leading IT company, Tata Infotech, is facing a massive exodus of middle and lower level professionals.

According to sources nearly 700-odd employees who have left the Tata Infotech rolls are among the 1,000 who spent almost a year on the bench after a lucrative contract from US computer major Unisys Corp failed to materialise.

While the company has seen relatively stable business in the current financial year, company officials state that recruitment in the current year will be based on projects.

The company offers a broadbased portfolio of services through third-party alliances and technologies.
Back to News Review index page  

IFC planning stake in Bharti Televentures
New Delhi: It is understood that the Washington-based International Finance Corporation is planning to invest around $20 million in Bharti Televentures, for a one per cent stake in the telecom company. The company is understood to have already approached government with the proposal.

The amount would be used by Bharti for further expansion of services in the telecom sector.

Earlier, the group had secured a Rs 200 crore debt from Infrastructure Development Finance Corporation for expanding the existing cellular network in various circles as well as for fresh investment in the basic telephony.

The Bharti group, which has several companies operating in the telecom sector, recently embarked on an exercise to unify the stakeholders of its smaller group companies and move them to the parent company, Bharti Televentures.

As part of the plans, investors New York Life International and AIF, who held equity in Bharti Cellular, have already been moved to the parent company.

The group, which offers cellular services in Delhi, Himachal Pradesh, Andhra Pradesh and Karnatka, is now working out details for restructuring the equity pattern with regard to two major partners Telia of Sweden and BT.
Back to News Review index page  

Work from home, says National Panasonic
New Delhi: Japanese electronics major, National Panasonic, which is struggling against tough market conditions, is said to have introduced a novel working concept for its employees.

Considering that over 50 per cent of an employees time in the office is spent on administrative work, which the company believes in unproductive, it is planning to allow its employees to work from home.

The company is planing to make a start by getting two of its branches, Lucknow and Ghaziabad, as part of a test run in the concept.

The company is also implementing other measures to combat the sluggish market conditions. These include systems integration through Oracle, introducing incentive system for performance evaluation, launch of a wider range and stronger products.

The Oracle system being introduced currently will link the market information to the manufacturing, set up a better system of supply chain and inventory management and link the dealers and service departments a year down the road.

Apart from this, the company also plans to introduce a whole new range of products developed entirely for the Indian market.
Back to News Review index page  

Sun to set up India-dedicated telecom team
New Delhi: In view of the growing communications market in the country, global IT major, Sun Microsystems, is said to be putting in place a dedicated telecommunication team in India.

This dedicated team would look after the products, networks and partnerships, according to Mr. Bill Cowper, director, Asia Pacific, telecom division, Sun Microsystems.

The company is likely to recruit the team from within the country and this would work in concert with the company's Bangalore research and development centre.

Sun Microsystems which provides hardware platforms and operating systems to telecom companies is planning to spruce up its presence in the Indian telecom market.
Back to News Review index page  

Balco losses may exceed Rs 150 crore
New Delhi: With each passing day, the strike against the privatisation of Bharat Aluminium Company is adding to the losses of the company, which is already understood to have exceeded Rs 150 crore.

Some 7,000 workers have been on strike since the beginning of last month in protest at the federal government’s sale of a controlling stake in Balco to private sector metals firm Sterlite Industries.

According to the company sources, the plant would now take about six to nine months to revive since the smelter was shut down on March 9, during which time there would be further losses.
Back to News Review index page  

Tisco introduces its executives to PEP
Kolkotta: Aided by consulting companies, McKnisey & Company and Eicher Consultancy Services, Tata Steel is putting its executives through a performance ethic program, that will bencmark people performance and help the company transform itself into flat organisational structure.

When fully implemented, PEP will make Tata Steel a flat organisation by cutting down the existing 12 levels of executives to five levels. While the program is expected to open up faster career growth tracks for the steel men, it could also lead to the retrenchment of several senior management personnel.

Around 200 of the 1,100 executives interviewed in the first round of PEP, have already been identified to be "outplaced". The "outplaced" executives will be offered compensation under ESS and even put on to placement consultants to help out in searching for alternatives.
Back to News Review index page  

Drug controller approves of Novartis’ sight-saving drug
New Delhi: The Drug Controller of India has approved the introduction into the market of the sight-saving drug, Visudyne, manufactured by Novartis India, the Indian arm of multinational pharmaceutical major Novartis AG. The drug is used for the treatment of age-related muscular degeneration.

The company hoped to introduce the drug in the market by next month and would be initially importing the drug from the Swiss parent. The company has no immediate plans to manufacture the drug in the country.

Novartis is also in the process of introducing a drug for osteoperosis, for which all necessary approvals have been received. This drug will most probably be introduced in the Indian market by end-May.
Back to News Review index page