COMPANIES

Jet Airways delays $400 million rights issue
Mumbai: Jet Airways Ltd, the country's biggest private airline, is delaying a planned $400 million rights issue amidst global market turmoil.

"It is delayed by two to three months, but we are OK even without the rights issue," chairman Naresh Goyal told reporters at a news conference ahead of its first New Delhi-Toronto flight.

"Banks are still willing to lend, but we have decided to delay it," he said.

Jet's Airways' board had approved raising up to $400 million by way of a rights issue in June to finance its expansion and overhaul of Air Sahara, which it bought in April.

Jet launched its US flights in August. It plans to add 50 destinations in Europe and more flights to North America, Goyal said. It also flies to South and Southeast Asia and London.

Jet has 65 aircraft, including four Boeing 777-300ER aircraft for overseas flights. Goyal said Jet was looking at firming up options for seven 777 and 10 A-330 aircraft.

The company expected to finalise plans for a cargo carrier by end-2007 and was talking to potential partners, Goyal said.

Jet is also looking at co-operating with state-run Air India on some overseas routes for flights and other services and starting an MRO (maintenance, repair and overhaul) operation.
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GENERAL

Tamil Nadu to set up 1000 MW power plant
Mumbai: Tamil Nadu Energy Company, a joint venture floated by National Thermal Power Corporation and the Tamil Nadu Electricity Board, will set up a Rs5,400-crore 1,000 MW mega thermal power plant at Vallur in Tiruvallur district.

Both NTPC and TNEB would have equal stakes in the project. Of the 1000 MW power generated by the plant, Tamil Nadu would get a share of 750 MW and the rest would go to Karnataka, Kerala and Puducherry.

The plant would consume 4.62 million tonnes of coal per annum. Coal would be shipped from Orissa to Ennore port, from where it would be transported to the plant by road.

Union minister for power Sushil Kumar Shinde will lay the foundation stone for the project on September 5.
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Railways to modernise 6 stations
Mumbai: The Railways will provide world-class facilities at six stations - New Delhi, Patna, Agra, Anand Vihar, Jaipur and Amritsar - in the first phase of a modernisation drive covering 22 stations, a senior railway ministry official said.

"Based on the experiences gained, work on the other 16 stations will be taken up in phases. As a first step we are in a process of appointing architects and consultants to prepare a feasibility report and submit the final plan,'' Shri Prakash, general manager of Northern Railway, said.

He said Hong Kong-based firm Terry Farell has been appointed to carry out the study and submit the concept plan for modernisation of New Delhi railway station while a consultant for Patna station would be appointed shortly.

The stations would have a modern station building with all modern passenger amenities such as food plazas, currency exchange counters, hotels, retail outlets and ATM facilities.
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Chile, India sign open skies air cargo pact
Mumbai: Chile and India have signed a bilateral agreement establishing an open skies policy for air cargo and liberalising passenger transport services, Chile's Civil Aeronautic Council (JAC) said.

The new treaty grants cargo transport "unlimited number of these services from and to Chile or India, using any type of aircraft and with full traffic rights to, from, or via any intermediary," the government said in a statement.

The statement said rights to cabotage - the transport of cargo between two points within a country by a foreign carrier - were excluded.

"We're allowing operators to transport cargo to a gigantic market, whose foreign trade grew 162 per cent last year," said Jorge Frei, JAC secretary general, in reference to India.

"It will significantly liberalise air passenger transport, helping airlines to establish operations or sell fares to Chile or India, helping to encourage the arrival of tourists from India," Frei said.

The Chilean government said trade between Chile and India has increased six times in the last five years.
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MARKETS

Thornburg sells bonds worth $1.4 billion to finance loans
Mumbai: US home loan specialist Thornburg Mortgage Inc has sold bonds backed by $1.44 billion of mortgages to pay down credit lines and free up financing to accelerate new lending.

The transaction was collateralised by ``prime'' loans, or those to borrowers with high credit scores, Santa Fe, New Mexico-based Thornburg said in a statement.

The loans carried adjustable interest rates.

Thornburg, which stopped taking new loan applications last month after having its access to short-term credit markets curtailed, resumed lending last week and now is trying to increase the pace.

The company last month had to liquidate a third of its mortgage assets and issue $500 million of convertible preferred stock to reduce dependence on credit lines and bolster cash reserves.
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