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Power Grid Corp to Be Watched As Board Okays Rs 692 Crore Investments

  • State-run Power Grid Corporation of India said its board has approved investments worth over Rs 692 crore. These include Western Region System Strengthening Scheme - XIII at an estimated cost of Rs 49.93 crore, with commissioning schedule of 21 months. Power Grid would spent Rs 552.44 crore for transmission system for connectivity of Essar Power Gujarat with commissioning schedule of 26 months from the date of investment approval. Further, the transmission utility would invest Rs 90.44 crore for Common System associated with Coastal Energen and Ind-Barath Power (Madras) LTOA Generation Projects in Tuticorin area Part-A. This project is expected to be commissioned within 28 months from the investment approval date.
  • Meanwhile, Power Grid's board, which met on 5 December 2011, has also approved in principle the company's equity participation in the proposed special purpose vehicle (SPV) being created by the Department of Telecommunications for setting up the National Optical Fibre Network (NOFN). In a regulatory filing, Power Grid said the equity participation, at present, would be limited up to 10% of the proposed paid up capital of Rs 100 crore.Sun Pharmaceutical Industries said its unit has received approval from the US Food and Drug Administration to market a generic version of Ultram ER tablets used to relieve chronic pain in adults.Raymond said that its wholly-owned subsidiary, Silver Spark Apparel, will divest its entire equity holding of 7.40 lakh equity shares of Rs 10 each held in the joint venture company, Rayves Automotive Textile Company, to Japan's T B Kawashima Company. The transfer of the equity holdings in the aforesaid entity will take effect on completion of all legal formalities on or before 20 December 2011.
  • Shipping Corporation of India has sold a handymax bulk carrier m.v. Uttarkashi (admeasuring 47,223 deadweight tonnage) and handed over its physical delivery to its buyer.DB Realty has named Vinod Goenka as executive chairman and managing director, and Shahid Balwa as vice chairman and managing director from Saturday, weeks after they were granted bail on charges over telecom licences. Balwa, Goenka and DB Realty are among the fourteen individuals and 3 companies charged over a 2007-08 grant of telecoms licences which a state auditor said cost the government up to $39 billion in revenue. All accused in the telecom case have denied any wrongdoing.
  • Jain Irrigation Systems said that a major fire broke out in the company's plastic pipe stocking yard situated in Jalgaon, Maharashtra. The fire was contained in short period of time without significant damage to life or property. The fire has resulted in loss or damage of certain quantity of finished pipes. Total value of damage is being ascertained. All stocks of the company are covered under appropriate insurance. This fire and consequent damage is not expected to have any material adverse impact on the company's operations and financials. All plants have started functioning as per schedule, the company added.Mahindra & Mahindra (M&M) is reportedly planning to set up an assembly plant in Southeast Asia. It is eyeing markets in Thailand, Indonesia and Malaysia. The new plant, which will cater to entire Southeast Asian region, is likely to come up in next couple of years and is part of the company's dream of being a global player, reports added.
  • Real estate company, DLF is reportedly set to sell its hotel subsidiary to Kolkata-based Square Four Housing & Infrastructure for Rs 550 crore, its third divestment in the last three month as it disposes non-core assets to pare its Rs 22500 crore debt.Reliance Industries (RIL) will reportedly enter the fast-food business with its own brand next year, opening yet another front to do business directly with India's growing young population after retail and 4G wireless services. According to reports, RIL's chief Mukesh Ambani has roped in Rishi Negi, chief operations officer of multiplex operator Fame India, which is partly owned by his younger brother Anil Ambani, to develop a quick service restaurant (QSR) concept within 3-4 months. RIL is exploring a scaleable model like McDonald's and Domino's, complete with a standardised menu and express delivery. It plans both independent outlets and presence in food courts.Maruti Suzuki is reportedly likely to defer proposed investments in Gujarat as rising interest rates and fuel prices in a cooling economy force prospective buyers to retreat. The company's chairman, RC Bharagava, was quoted by media as saying that the company may relook at the long term investment because of the slowdown The firm may have to delay some of its investment by six months to a year, he added.

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