Only 3 pvt players for 3G services
The government is learnt to have decided to allow only three private players to offer 3G mobile services for which the spectrum would be auctioned next month and the successful bidders would be asked to pay 100 per cent of the bidding amount in March this year.
"In the case of 3G auction, the government has decided to assign by auction up to 3 blocks of 5x2 MHz of paired in the 2.1 GHz band in each of the 22 circles," said the draft Notice Inviting Application (NIA). The NIA is the legal document containing all relevant information for the bidders.
The said amount of spectrum will be in addition to the one 2x5 MHz block already allocated to BSNL and MTNL.
In view of spectrum being vacated by the Defence in tranches, the successful bidders would be alloted the air waves simultaneously in September to start 3G mobile services.
Winning bidders will deposit 25 per cent of the bid amount within five calender days from the date of auction and remaining (75 per cent) within 15 calender days, according to the draft NIA.
The auction is expected to he held on February 12. The NIA is believed to have stipulated September 2, 2010 as the date for commercial launch.
Department of Telecom official were not available for comments on the timing of the NIA to be made public so that applications can be invited formally from the prospective bidders. But sources said it would be issued this week.
Telecom Minister A Raja had earlier said four private players will be allowed to offer 3G services. But lack of immediate availability of radio waves from defence made Department of Telecom go for 3 players.
The said amount of spectrum will be in addition to the one 2x5 MHz block already allocated to BSNL and MTNL.
In view of spectrum being vacated by the Defence in tranches, the successful bidders would be alloted the air waves simultaneously in September to start 3G mobile services.
Winning bidders will deposit 25 per cent of the bid amount within five calender days from the date of auction and remaining (75 per cent) within 15 calender days, according to the draft NIA.
The auction is expected to he held on February 12. The NIA is believed to have stipulated September 2, 2010 as the date for commercial launch.
Department of Telecom official were not available for comments on the timing of the NIA to be made public so that applications can be invited formally from the prospective bidders. But sources said it would be issued this week.
Telecom Minister A Raja had earlier said four private players will be allowed to offer 3G services. But lack of immediate availability of radio waves from defence made Department of Telecom go for 3 players.
Lupin, Garnier Life Science challenge govt's order fixing drug prices
Drug major Lupin and Swiss Garnier Life Science moved the Delhi High Court on Monday, challenging the government’s decision to fix the price of their anti-asthma drug Doxyflline. In their petition, Lupin and Garnier Life Science challenged the National Pharmaceutical Pricing Authority circular, in which it has put its two medicines under the first schedule of the Drug Price Control Order of 1995.
Sterlite to set up power plant at Tuticorin
Sterlite Industries, a subsidiary of London Stock Exchange-listed Vedanta Resources Plc, is planning to invest around Rs 650 crore to set up a power plant at Tuticorin in Tamil Nadu.
Company chief operating officer Ramesh Nair said one of the major challenges for the company at its Tuticorin unit, which manufactures copper smelter, was power. The proposed 2X60 mega watt coal-based plant would not only help the company reduce the dependency but would also bring down the consumption cost.
“In the current scenario (in terms of cost) once the power plant goes on stream, we will be able to save 20 per cent,” said Nair.
On the expansion plan, he said, “the proposed investment of Rs 2,300 crore to double the capacity will continue and we will stick to the commitment, which was made earlier.”
The company would invest the money for increasing the capacity to 2,400 tonnes per day from the current 1,200 tonnes.
“Post-expansion, the company will be one of the largest single-location custom copper smelters in the world with a smelting capacity of 800 kilo tonnes per annum. The smelter will utilise the ISA Smelt technology currently used in the existing smelter at Tuticorin and it will also increase our exports,” said Nair.
At present, of the total production, 40 per cent is exported while the remaining is for domestic markets. Once the expansion plan is complete, 1,200 tonnes per day will be for the domestic market.
The company currently caters to China, West Asia and Southeast Asia. “Going forward “we will look at entering new markets including Africa, Vietnam and also parts of China,” said Nair. Its forex contribution is at about Rs 5,400 crore.
Sterlite is also looking at doubling its manpower at Tuticorin. It employ around 1,200 people directly while 1,500 are contract workers.
“In the current scenario (in terms of cost) once the power plant goes on stream, we will be able to save 20 per cent,” said Nair.
On the expansion plan, he said, “the proposed investment of Rs 2,300 crore to double the capacity will continue and we will stick to the commitment, which was made earlier.”
The company would invest the money for increasing the capacity to 2,400 tonnes per day from the current 1,200 tonnes.
“Post-expansion, the company will be one of the largest single-location custom copper smelters in the world with a smelting capacity of 800 kilo tonnes per annum. The smelter will utilise the ISA Smelt technology currently used in the existing smelter at Tuticorin and it will also increase our exports,” said Nair.
At present, of the total production, 40 per cent is exported while the remaining is for domestic markets. Once the expansion plan is complete, 1,200 tonnes per day will be for the domestic market.
The company currently caters to China, West Asia and Southeast Asia. “Going forward “we will look at entering new markets including Africa, Vietnam and also parts of China,” said Nair. Its forex contribution is at about Rs 5,400 crore.
Sterlite is also looking at doubling its manpower at Tuticorin. It employ around 1,200 people directly while 1,500 are contract workers.
JK Tyre to spend Rs 800 cr on K'taka plant
JK Tyre & Industries Ltd, the manufacturer of tyre brands JK Tyre, Vikrant and Tornel, today announced that it would invest Rs 800 crore in Karnataka for setting up a greenfield plant to manufacture truck, bus and car radials. The plant would cater to both domestic and international markets.
JK Tyre President Arun Bajoria met a team of senior officials from the Karnataka government, led by Principal Secretary (Industries) V P Baligar, in Delhi on Sunday. The state government had assured special incentives to the company for their forthcoming investments, Bajoria said in a statement.
NMDC likely to file for FPO by Jan 25
The country's largest iron ore producer National Mineral Development Corporation (NMDC) is planning to file draft prospectus with the market regulator Sebi within a fortnight for its estimated Rs 14,000-crore disinvestment programme
"NMDC is targeting to file the draft red herring prospectus for the follow-on public offer by January 25. It is in line with the target to complete the divestment process by March 31," a person in the know of the development said.
The government has already appointed book runners- cum-lead managers comprising Citigroup, Kotak Mahindra, RBS Equities, UBS Securities, Morgan Stanley and Edelweiss Capital to advice on the FPO.
The inter-ministerial group also shortlisted the Mumbai-based law firm Crawford Bayley to advice on the share sale, a Finance Ministry official had said.
The government is proposing to offload 8.38 per cent of its stake in the NMDC through an FPO, which is expected to fetch Rs 14,000 crore to the exchequer, depending on the share price and also of the issue price. The NMDC counter closed at Rs 434, up 3.57 per cent on the BSE.
Currently, the government holds about 98.38 per cent in the Navratna mineral company, as the rest are already with the public.
The government has already appointed book runners- cum-lead managers comprising Citigroup, Kotak Mahindra, RBS Equities, UBS Securities, Morgan Stanley and Edelweiss Capital to advice on the FPO.
The inter-ministerial group also shortlisted the Mumbai-based law firm Crawford Bayley to advice on the share sale, a Finance Ministry official had said.
The government is proposing to offload 8.38 per cent of its stake in the NMDC through an FPO, which is expected to fetch Rs 14,000 crore to the exchequer, depending on the share price and also of the issue price. The NMDC counter closed at Rs 434, up 3.57 per cent on the BSE.
Currently, the government holds about 98.38 per cent in the Navratna mineral company, as the rest are already with the public.
World stocks hit 15-month peak.
