COMPANIES

GAIL raising Rs7,000 crore to double pipeline network by 2011
Mumbai: Gas Authority of India Ltd (GAIL) plans to raise up to Rs7,000 crore ($1.72 billion) from domestic and foreign markets to double its pipeline network by 2011.

The expansion of the pipeline to 12,000 km will cost Rs20,000 crore, company's director (finance), R Goel, said while speaking on the gas distribution projects in China and India.

GAIL, he said, will soon form a 50:50 joint venture in Bermuda.

To fund expansion plans, GAIL may also go for selling a part of its stakes in Oil and Natural Gas Corporation (ONGC) and China Gas Holding Ltd, he said.

GAIL owns 2.4 of ONGC and 6.6 per cent of China Gas Holding Ltd.
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Shriram ties up Rs5,000 crore funds for Uttarpara township
Mumbai: Shriram Properties Ltd has tied up funds with Walton Street Capital and Starwood Capital Group for financing a Rs5,000 crore township on Hindustan Motors Uttarpara property.

Hindustan Motors signed a memorandum of understanding with Shriram Properties for development on 314 acre excess land at Uttarpara in Hooghly district, about 12 km from Kolkata.

A project would involve development of 20 million square feet of residential, retail, office and civic space, Shriram Properties said in a statement.

Hindustan Motors would hold a minority stake in the venture.
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GENERAL

Government clears TCS plan for new economic zone, three Mukesh Ambani promoted IT zones
Mumbai: The government has approved the proposal of software major Tata Consultancy Services to set up a special economic zone in Gujarat, official sources said.
The government has also cleared three Mukesh Ambani-promoted IT SEZs in Navi Mumbai. These add up to 73 hectares. With this, the total number of SEZs in Navi Mumbai SEZ goes up to six, including those for biotechnology, light engineering and pharmaceuticals cleared earlier, adding up to a total of 346 hectares.

A consortium of Mukesh Ambani and Anand Jain is promoting the Special Economic Zones.

The government has given formal nod to 10 SEZ proposals and has deferred decision on eight. It has deferred decision on DLF and Unitech SEZs over the land issue.
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INTERNATIONAL

Nasdaq weighing sale of part equity, says report
Mumbai: Nasdaq Stock Market Inc is considering sale of a piece of itself to an overseas investor to help it seal a deal to buy Nordic exchange operator OMX AB, the Wall Street Journal reported on its online edition.

Citing people familiar with the matter, the Journal said, it is unclear if Nasdaq will ultimately resort to this approach. Nasdaq faces competition for OMX from Borse Dubai.

If the Swedish government rules that Dubai can move ahead with its merger proposal, Nasdaq may seek to win the OMX by possibly selling a stake in itself to Dubai in exchange for Dubai dropping or modifying its OMX bid, the report said.
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Gold hits a 16-month high ahead of Fed decision
Mumbai: Gold prices rose to the highest in 16 months on speculation the US Federal Reserve will cut benchmark interest rates to head off a possible recession, even as a dollar fall fuelled demand for gold.

Spot gold gained $2.27 at $720.17 an ounce in London, the highest since May 2006.

The Fed will announce its rate decision at 2:15 pm in Washington, alongwith an accompanying statement on the outlook for inflation and growth.

Gold has risen 7.2 per cent in London this month as a crisis in the US subprime mortgage market weakend the economy, pushing the dollar down 1.7 per cent to a record low versus the Euro.

The Bank of England on Monday said it will offer $8.77 billion to shore up confidence in UK banks and mortgagers amid spreading turmoil in global credit markets.
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Oil moves above $81 amidst growing supply worries
Mumbai: Oil prices rose to an all-time high above $81 a barrel on Tuesday, fuelled by concerns of a supply squeeze in the United States, ahead of an anticipated interest rate cut by the Federal reserve.

US crude was up 2 cents at $80.59 a barrel by 1406 GMT after hitting a record $81.24 and following a $1.47 jump on Monday. London Brent crude was off 26 cents at $76.72.

Tightening US fuel inventories amidst hurricane and other supply risks and fund flows into energy from equity markets have driven a rally that has taken US crude to new record highs for five straight trading sessions.

The Organisation of the Petroleum Exporting Countries agreed last week to boost output by 500,000 barrels per day (bpd) from November, but the move has failed to soothe consumer concerns.
Some OPEC members say the exporters may have to pump more if oil stays above $80 for long. US crude has climbed 33 per cent this year.
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