KC Chakrabarty to be new RBI deputy governor Decks have been cleared finally for the appointment of Dr KC Chakrabarty, chairman and managing director, Punjab National Bank, as the deputy governor of the Reserve Bank of India, reports the Financial Express. The post was lying vacant since the retirement of Mr V Leeladhar in December last year, who was heading the banking operations division at RBI. The source told the newspaper that after getting clearance from Department of Personnel and Training (DOPT), the file will move to the finance ministry which will finally issue the order for Dr Chakrabarty's appointment to the post. The ministry is likely to issue the notification by Thursday. Source: Economic Times
Nomura to buy 35% in LIC Mutual Fund Japan's financial services major Nomura Group is set to acquire 35% in LIC Mutual Fund, India's seventh largest mutual fund, following the approval to induct the group as strategic partner from Life Insurance Corp (LIC), reports the Business Standard. The insurance giant has formed a four-member committee which besides deciding on valuation will also decide the terms and conditions of inducting Nomura Holdings or its subsidiary into LIC Mutual Fund Asset Management Co and LIC Mutual Fund Trustee Co. However the timeline for this completion of this has not yet been defined. As of April 2009, LIC Mutual Fund had assets under management (AUM) of Rs241 billion over 32 schemes.
Source: Business Standard
IDBI, PFC to lend Rs40 billion for RPower’s Andhra project IDBI Bank Ltd and Power Finance Corp of India (PFC) will lend Rs40 billion to Reliance Power Ltd (RPower) for their proposed 4,000 MW ultra mega power project in Andhra Pradesh, reports the Economic Times. Reliance Power has appointed IDBI Bank and PFC as the lead manager for raising debt proportionate to Rs120 billion for achieving the financial closure of the project, sources from both IDBI Bank and PFC told the newspaper. RPower, which won the project last year, would also look out for various domestic and foreign lenders for another Rs80 billion within a couple of weeks, a from RPower’s parent Reliance Dhirubhai Ambani Group told the newspaper. Source: Economic Times
RIL, Tata BP Solar among 12 projects to get in-principle nod The Indian government has given in-principle clearance to 12 Solar Photo Voltaic projects filed under Special Incentive Package Scheme (SIPS), including projects by Titan Energy Systems Ltd, Reliance Industries Ltd, Tata BP Solar India Ltd and PV Technologies India Ltd, reports the Business Line. These 12 projects would entail an investment of Rs765 billion over a 10-year period. Under SIPS programme, the government would provide an incentive of 20% capital expenditure during the first 10 years for the units in SEZs (Special Economic Zone) and 25% of the capital expenditure in non-SEZ units. Source: Business Line
Foreign telcos get clean chit in license fee, service tax case To removes all hurdles to global telecom firms to bid for third generation mobile (3G) spectrum, an internal panel of the Department of Telecom (DoT) has decided to close a six-year-old case against international majors including AT&T Inc, BT Group PLC (formerly British Telecom), Equant and MCI Worldcom for alleged evasion of licence fee and service tax, reports Business Line. The issue dates back to 2003 when it was alleged that the foreign telecom players were selling managed data network services to corporates in India without taking any license from DoT thereby allegedly violating foreign direct investment norms and also for depriving the national exchequer. Source: Business Line
Satyam initiates first phase of lay off Though corporate affairs minister Salman Khursheed had hinted at government intervention, the first phase of layoffs has started at Satyam Computer Services Ltd, reports the Financial Express. Employees from human resource, training and sales & marketing departments are being singled out for action by Tech Mahindra Ltd, Satyam’s new owner, the report said. “The first phase of layoffs has started. In the second phase, employees who have been on the bench for less than three months would go away,” an official source told the newspaper. Source: Financial Express
GM bankruptcy hits India fund-raising With General Motors filing for bankruptcy in the US, its Indian subsidiary is facing trouble in raising $200 million to fund its power train facility, which is set to become operational by the middle of next year, reports the Financial Express. Nick Reilly, vice president, GM Group and head of GM’ operations in Asia-Pacific told the newspaper that financial institutions in India have been little wary of funding $200 million for its upcoming engine plant because of the uncertainty prevailing in the US market over the parent company's fate. Though the company is already talking to two financial institutions, it might take the company little longer, Reilly added. GM India said its engine plant in India will help the company to become widely profitable and eventually an export hub for small cars. Source: Financial Express