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ECONOMY: September 2010

No tax breaks for firms creating jobs outside U.S.
• Persisting with the theme of protecting American jobs, President Barack Obama in his
latest speech on the economy said that he would press for tax breaks only for companies
that created jobs on U.S. soil and not those that created jobs abroad.
• His comments also followed in the wake of steps taken by the U.S. Congress to hike the
fees for H1-B and L visas, mostly requested by Indian companies with U.S. operations.
Following the passage of this bill and comments by its sponsor, Senator Charles Schumer,
criticising companies such as Infosys for being “body shops,” Indian companies and
industry bodies such as National Association of Software and Service Companies
(Nasscom) had warned of negative fallout of protectionism.
Industrial output doubled in July
• Industrial output nearly doubled to 13.8 per cent in July, dispelling fears of a dip in
demand and giving an impetus to achieving 8.5 per cent economic growth this fiscal. The
Index of Industrial Production (IIP) data for July, released on Friday, showed that the
output of capital goods, used by the manufacturing industry, soared to 63 per cent from
1.7 per cent a year ago. The manufacturing sector output grew 15 per cent in the month
against 7.4 per cent a year ago, setting at rest doubts on economic expansion growth.
Concern over Ohio move
• Union Minister for Commerce and Industry Anand Sharma expressed concern over the
move by the State of Ohio in the United States to ban outsourcing of IT services.

Dhanlaxmi Bank to ramp up NRI deposit base

• The Kerala-based Dhanlaxmi Bank will ramp up its Non-resident Indian (NRI) deposit
base and devise a strategy to double its business (in the segment) to Rs.1,000 crore by the
end of this fiscal. “We plan to take our NRI deposit base to around Rs.1,000 crore from
the present Rs.400 crore by the end of 2011,” Dhanlaxmi Bank branch banking & NRI
business head Salil Datar said here recently. The NRI deposit base was around 5 per cent
of the total deposits
RIL completes deal to buy 60% stake in U.S. firm
• Mukesh Ambani-led Reliance Industries Limited (RIL) announced the completion of its
deal to acquire a 60 per cent stake in the United States-based Marcellus Shale gas asset
for $392 million.
• RIL had announced on August 5 that it would buy its third Shale gas asset in the United
States.
• Its subsidiary, Reliance Marcellus II LLC, had signed a definitive transaction agreement
to enter into a Marcellus Shale joint venture with the U.S.-based Carrizo.
• Carrizo Oil & Gas Inc announced that the company closed its previously announced joint
venture transaction in the Marcellus Shale with a subsidiary of Reliance Industries
Limited.
• Joint venture-In connection with the joint venture, Reliance acquired a 20 per cent
interest in approximately 52,200 net Carrizo acres in Pennsylvania considered highly
prospective for Marcellus Shale natural gas at a purchase price of $65 million.Reliance
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paid $11.4 million in cash to Carrizo at closing with $1.7 million more expected later this
year.
Highlights of Direct Taxes Code Bill

• The Federal Bank has announced that its ATM network has been linked to the IndiaPay
National Financial Switch managed by National Payments Corporation of India (NPCI).
This is India's largest network of shared ATMs, which connects around 61,200 ATMs
across 44 banks all over India.

No immediate plans to go to WTO court on U.S. visa fee hike issue'

• India said it was trying to sort out the issue of the H-1B and L-1A visa fee hike and the
outsourcing ban issues through bilateral means with the United States, and had no
immediate plans to go to the World Trade Organisation (WTO) court.

• The U.S. government recently increased visa fee by $2,000 for certain H-1B visas and
$2,250 for L-1A and L-1B visas, which India has termed as discriminatory and against
the spirit of fair trade rules of the WTO. India has also criticised the U.S. State of
Ohio's decision to forbid outsourcing of IT services by government departments.

Doha Round to miss deadlin

• The contentious Doha Round of trade talks of the World trade Organization (WTO) will
miss the 2010 deadline due to domestic compulsions of U.S. that has made the agreement
almost impossible.
• Speaking at a seminar organised by the Confederation of Indian Industry on the issue,
Commerce Secretary Rahul Khullar said the global trade agreement would not happen
this year as was originally envisaged in the Delhi declaration adopted in September last
year. “The deal is not going to get done in 2010,'' Mr. Khullar said..
• The multilateral trade agreement under negotiations among 153 members of the WTO
since 2001 was to be concluded in 2004. Since then, it has missed several deadlines in the
face of differences between developing and developed countries on giving commitments
on market opening.
• Recently, the U.S. Congress enacted an Emergency Border Security Supplemental
Appropriations Act, which hiked the visa fees for short-term Indian IT services
providers.In addition, the U.S. is believed to be considering several more restrictive trade
measures.
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Wholesale Price Index: new series comes into being

• Consumer items widely used by the middle class like ice-cream, mineral water,
flowers, microwave oven, washing machine, gold and silver will be reflected in the
new series of WPI inflation to be released. The new series of Wholesale Price Index
(WPI) for August with additional 241 items and change in the base year from 1993-94
to 2004-05 will be released, a senior Commerce and Industry official said. Better
picture

• With these items, the WPI will measure a total of 676 items against the existing 435.
“This would give better picture of the price variation,” a senior official said.

BVB to launch chain of restaurants

• Better Value Brands (BVB) has joined hands with Master Chef and gourmet food expert,
Sanjeev Kapoor, to launch the country's first global chain of Indian restaurants, called
“Indii.” The Rs. 100- crore joint venture plans to set up 70 Indii outlets across the
country, and also aims to reach out to the Indian diaspora in different continents in
the next 12 months, says a release.

Hyundai Motor bags EEPC award

• Hyundai Motor India has been conferred the ‘All India award for export excellence
2008-09' by the Engineering Export Promotion Council (EEPC). HMIL was awarded the
Gold Trophy in the large enterprise category, says a release. The Union Minister of
Commerce & Industry, Anand Sharma bestowed the award to HMIL, at a function
organised recently in Bangalore, says a release.

Gayatri ties up funds for power project

• Gayatri Projects and Sembcorp Utilities Pte Ltd achieved financial closure for their
1,320 MW joint venture power project, Thermal Powertech Corporation India Ltd.,
being set up at Krishnapatnam. Sembcorp is a wholly-owned subsidiary of Sembcorp
Industries Ltd. The company was executing the Phase-I of the project (2x660 MW) at a
total outlay of Rs.6,869 crore.

Inflation slips to 8.5 % in August under new WPI series

• Switching over to a new series of Wholesale Price Index (WPI) with 2004-05 as the base
year, the government on Tuesday revealed that headline inflation in August stood pegged
at a seven-month low of 8.51 per cent as against 9.97 per cent in July under the old series.
• Since the two WPI series are not comparable in view of the vast difference in the basket
of commodities and their weight in calculating inflation, data on the old series released
along with the new index also reflected a drop in the rate of price rise to 9.5 per cent in
August.
• Under the new WPI series aimed at capturing the price movement in a more realistic way
in keeping with the times, the decline in inflation was mainly on account of easing prices
of food items such as vegetables, cereals and pulses.

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Indian Hotels unveils ‘Vivanta by Taj' brand
• The Tata Group's flagship in the hospitality segment, The Indian Hotels Company Ltd
(IHCL), announced on Tuesday the launch of its new brand, Vivanta by Taj, a portfolio
of 19 properties across the country in the “upper upscale” segment.

Tata Steel buys into Canadian iron ore mines

• Tata Steel on Tuesday said it would acquire 80 per cent stake in an iron ore mining
project in Canada for about Rs.1,350 crore, a move that will help the steel maker boost its
raw material supply.
• The Direct Shipping Ore (DSO) project is owned by Canada-based New Millennium
Capital Corp, in which Tata Steel holds 27.4 per cent stake. The project contains 64.1
million tonnes of proven and probable mineral reserves.
SAIL, RITES ink pact to float joint venture
• Steel Authority of India Ltd. (SAIL) inked an agreement with RITES, a subsidiary of the
Indian Railways, for jointly setting up a railway wagon-making unit in Kulti in West
Bengal at a cost of Rs. 120 crore.

• “The joint venture between the two PSUs is mutually beneficial. It will lead to many
more such collaborations between them,'' Union Steel Minister Virbhadra Singh told
reporters here after the signing ceremony.

• “This is a red-letter day in SAIL's history, as every year there is a shortfall of 6,000
wagons. This 50:50 joint venture will help bridge the gap,'' SAIL Chairman C. S. Verma
said.

• For the project, SAIL will provide its surplus land in Kulti, near Burnpur, in West
Bengal. The location of the plant would be near the Chittaranjan Locomotive Works.
SAIL, which has an annual production capacity of about 14 million tonnes, will also
supply its specialised steel products to the proposed wagon-making unit.

• Railway Minister Mamata Banerjee had earlier said the tentative name of the factory
would be the Bengal Wagon Industry.

• The present wagon demand in the country is around 25,000 units and it is expected to
rise further once the dedicated freight corridors start coming up. Meanwhile, seeking
to further expand their cooperation, International Coal Ventures, a consortium of PSUs
such as SAIL and Coal India has joined hands with RITES to prepare a feasibility report
on the possible buyouts of coal blocks in Indonesia and Mozambique.

BoB to take over Memon co-op bank

• Bank of Baroda (BoB) informed the Bombay Stock Exchange (BSE) said that it has
decided to take over “specific assets and liabilities” of the Mumbai-based Memon
Cooperative Bank Ltd. “Approvals of the Central Government and the Reserve Bank of
India have been received for the purpose,” it said. The bank will formulate a scheme
for the take-over, “which will be subject to further approvals of the appropriate
competent authorities.” The RBI had restricted its operations in May 2009. Memon
Cooperative Bank has 14 branches in Maharashtra and four in Gujarat.

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ABB to acquire Metsys Engineering

• ABB India, announced the acquisition of Bangalore-based Metsys Engineering and
Consultancy.The deal size is estimated at Rs.8.50 crore.“This acquisition will help us to
further strengthening our strong position in the metals business and our portfolio in this
growing sector,” ABB India's Vice-Chairman and Managing Director Biplab Majumder
said in a statement.
Vishal to sell retail, wholesale divisions
• Discount retailer Vishal Retail has said that it would sell its retail trading business to
Shriram Group, and the wholesale division to the private equity firm TPG, for a
combined value of Rs.100 crore. In an announcement to the stock exchanges, Vishal
Retail said the sale, however, does not include the firm's properties in Hubli, Kolkata,
Dehradun and Jabalpur. Shriram Group is a Chennai-based diversified group, which
deals in property, finance and insurance.

KEC acquires Jay Railway Signalling

• A week after sealing the $95-million buyout of U.S.-based SAE Towers Holdings, KEC
International said it was acquiring home-grown Jay Railway Signalling for close to
Rs.14 crore. “This is our second acquisition in about a week's time. We have signed a
definitive share purchase agreement to acquire Jay Railway Signalling Pvt Ltd for
Rs.13.96 crore,” KEC MD & CEO Ramesh Chandak told.

Star Union Dai-ichi launches three products

• Star Union Dai-ichi Life Insurance Company has come out with a new traditional
endowment product ‘Defined benefit endowment plan'. The product ensures regular
tax -free monthly benefit for 15 years. The company has also launched two new unit-
linked insurance producdts — Dhan Suraksha 3 and Dhan Suraksha 3 Premium — which
comply with new IRDA regulations, says a releas

Olive Telecom ties up with BSNL

• Olive Telecom, a leading convergence solutions device developer, has announced a
strategic tie-up with Bharat Sanchar Nigam Ltd. (BSNL) offering India's first 3G
embedded Zipbook V-X108 bundled with BSNL 3G connectivity nationwide. Priced at
Rs.20,999, the Olive Zipbook is powered by Intel Pentium N450 processor and the users
have the Windows 7 OS with Windows works, live and security essentials, says a
company release.

Vedanta open offer for Cairn awaits SEBI nod

• Market regulator Securities and Exchange Board of India (SEBI) has not yet approved
the open offer made by Vedanta Group to Cairn India shareholders, even as the target
company formed a two-member panel to look into the offer made to minority
shareholders.
• Billionaire Anil Agarwal-led Vedanta Group is buying Cairn Energy's 40-51 per cent
stake in Cairn India and has made an open offer for an additional 20 per cent stake which
will take the deal size to $9.6 billion.

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EPF interest hiked to 9.5%
• Over 4.4 crore workers and employees of the public and private sectors in the country
will receive an interest rate of 9.5 per cent instead of 8.5 per cent for 2010-11 for their
savings in the Provident Fund account.
ICICI Bank, Kingfisher launch credit card
• ICICI Bank and Kingfisher Airlines announced the launch of ICICI Bank Kingfisher Airlines
MasterCard Credit Card. The card is powered by a uniquely rewarding miles
programme coupled with exclusive travel and lifestyle privileges for discerning
customers. To cater to the different needs of customers, the card is available in 3
variants — World, Platinum and Titanium — according to a statement issued here.

Exports rise 23 % in August

• Exports grew by 22.5 per cent at $16.64 billion in August on improved global demand
and imports too jumped at a higher pace of 32.6 per cent at $29.7 billion, leaving a
worrisome trade gap of $13.06 billion.
• However, the renewed demand for Indian goods in western and European markets has
given hope to policymakers of achieving the $200-billion export target for the current
fiscal.
• “Things are going so far according to our plan and we should be able to reach our exports
target of $200 billion,'' Commerce Secretary Rahul Khullar told reporters.
Russia, Norway sign Arctic border pact
• Russia and Norway have signed an Arctic border pact, ending a 40-year dispute over an
energy-rich area in the Barents Sea.

• The Treaty on Maritime Delimitation and Cooperation in the Barents Sea and the Arctic
Ocean was signed in the Russian northern seaport of Murmansk by the Russian and

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Norwegian Foreign Ministers in the presence of Russian President Dmitry Medvedev and
Norwegian Prime Minister Jens Stoltenberg.

No conflict of interest: Srinivasan's counsel

1. In the Indian Premier League and its Managing Director N. Srinivasan being the
Secretary of the Board of Control for Cricket in India (BCCI), argued senior counsel
Rohinton Nariman, appearing for Mr. Srinivasan in the Supreme Court.
RBI hikes key policy rates to tame inflatio
• In an aggressive move to tame inflation and inflationary pressure, the Reserve Bank of
India raised the indicative short-term lending (repo) rate by 25 basis points to 6 per
cent from 5.75 per cent and the borrowing (reverse repo) rate by 50 basis points to 5
per cent from 4.5 per cent with immediate effect.

• The repo rate is the rate at which the RBI lends money to banks and the reverse repo
rate is the rate at which banks park their funds with the central bank.

• This is the first mid-quarter policy review since the RBI said it would increase the
frequency of its policy reviews to eight from four in a year.

• These measures, according to the central bank, would “contain inflation and anchor
inflationary expectations without disrupting growth and reduce the volatility in
overnight call money rates and strengthen the monetary transmission mechanism.”
The RBI said in its Mid-quarter Monetary Policy Review.

Cabinet approves Bill to make FMC autonomous

• The Union Cabinet approved for introduction in Parliament the Forward Contracts
(Regulation) Amendment Bill, 2010, that amends the Forward Contract (Regulation) Act
and the Multi-State Cooperative Societies (Amendment) Bill, 2010, that seeks to
improve the accountability of cooperatives. Both Bills will be tabled in the next
session of Parliament.

• The FC(R) Act, 1952, provides for the regulation of commodity futures markets and the
establishment of the Forward Markets Commission (FMC).

• The proposed amendments will enable the FMC, as a regulator, to become an

autonomous body with powers to regulate the market on the lines of the Securities
and Exchange Board of India. At present it functions under the Department of
Consumer Affairs.

Videocon partners Twitter

• Videocon Telecommunications has entered into an agreement with Twitter to serve the
communication needs of Twitter users. Videocon customers can stay connected to the
real time information flow regardless of the location and can tweet by a single SMS
said, Kevin Thau, Director of Business Development-Twitter, in a release.

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Mines: 26 p.c. of profit for affected people

• The Group of Ministers, headed by Finance Minister Pranab Mukherjee, cleared the
draft mining bill, which makes it mandatory for miners to share 26 per cent of their
profits with the people affected by their projects.

• “It is largely approved. One more sitting of the GoM remains, and after which it will go
to the Cabinet. Whatever we have suggested has by and large been approved,” Union
Minister for Mines B.K. Handique told journalists after the meeting.Senior officials said
the Union Ministry of Mines would work on the final draftof the bill.

EU bans import of branded Indian honey

• The European Union has banned the import of branded honey from India after laboratory
tests showed a high level of lead and antibiotics in the samples, according to Asit
Tripathy, chairman of the Agricultural and Processed Food Products Export Development
Authority. Proposes a fund, District Mineral Foundation, and the beneficiaries will be
paid out of it.

India exhorts G-20 nations to coordinate policies

• India exhorted the G-20 member countries to work together to support a well-
functioning international economy by coordinating their policy actions in a manner
that can ensure strong, sustainable and balanced growth.

• Delivering his keynote address at a conference on ‘International cooperation in times

of global crisis: Views from G-20 countries. Finance Minister Pranab Mukherjee pointed
out that the financial and economic crisis of 2007-09 had not only exposed the fragility
of existing global financial and economic institutions and the limitations of existing
macro-economic policy tools but had also provided an opportunity to the world for
new thinking in the world of finance and globalisation.

Bharti ropes in IBM for African operations

• Bharti Airtel said it had tied up with technology major IBM for managing its computing
technology and services for its African operations spanning 16 countries. The strategic
partnership would enable Bharti Airtel to scale up its network and systems to cater to
more than 10-crore African customers by 2012.
Jivo Wellness opens second canola oil plant in Delhi
• Jivo Wellness said it was aiming for Rs.100 crore sales over the next two years from its
‘ Jivo' canola edible oil brand.

• The company, which has tied up with Canada-based Richardson Oilseed Ltd. for
sourcing canola oil, opened its second bottling plant in the capital.

BHEL secures major orders

• Breaking the myth that the company was piggy bank ridding on the back of orders from
public sector undertakings (PSUs), Bharat Heavy Electricals Ltd. (BHEL) said it had
secured 90 per cent of the Rs.59,037-crore orders from clients in the private sector.

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Essar Steel's retail initiative

• The retail business of Essar Steel through hypermart and expressmart formats contributes
in good measure to its revenues, company CEO Malay Mukherjee said.
With good monsoon, Centre expects better grain output
• With good monsoon this season, the country expects the grain production during the
2010-11 crop year to touch, or even exceed, the last best level of 2008. Grain production
during 2008-09 was 234.47 million tonnes. During 2009-10, the output is expected to be
about 218 million tonnes
Duty drawback rates slashed for exporters
• The Central Board of Excise and Customs (CBEC) has decided to reduce duty drawbacks
(tax refund) for exporters of leather, textiles, sports and some other items by up to 30 per
cent.
• In its new notification, the CBEC has said the new rates will be effective from September
20.
Shree Textiles opens Linen Club showroom
• Linen Club, the premium brand from Jaya Shree Textiles, a unit of Aditya Birla Nuvo,
plans to have 100 exclusive showrooms in two years to meet the surging demand for
linen, according to S. Krishnamoorthy, President, Textile Division, Aditya Birla group.
India emerging as a major outsourcing hub for engineering services
• The automotive industry will start outsourcing 40 per cent of its engineering activities to
the engineering service providers by 2015. Nearly 15 per cent of the total outsourced
automotive engineering services were catered to by subsidiaries of Indian original
equipment manufacturers
Monetary policy evokes renewed interest
• Last week was eventful for the Reserve Bank of India and its monetary policy. The
scheduled Mid-quarter Monetary Policy review took place. Two days earlier, the Centre
announced a new series of Wholesale Price Index (WPI) to measure inflation.
• The connection between the two is fairly obvious. The Monetary policy has traditionally
been trying to balance its two key objectives of maintaining price stability and providing
credit for the real sector. Recently, the focus of the policy has shifted towards controlling
inflation at all costs. The new measure, claimed to capture the rate of price rise more
accurately, is obviously relevant to the RBI.
Change in name of insurance JV to help boost business
• The recent change in the name of IDBI Fortis Life Insurance Company Ltd., a joint
venture floated by IDBI Bank, Federal Bank and Fortis Insurance International, to IDBI
Federal Life Insurance Company Ltd., is expected to help boost the company's operations
in Kerala. Federal Bank has a very strong presence in South India, particularly in its
home State, Kerala.
• With its brand name coming into the title of the insurance company, Federal Bank
expects to grow its insurance business at a much faster pace in the State, its officials said.
• U.S. exited recession in June 2009
• U.S. President Barack Obama speaks at a discussion on jobs and the economy hosted
byCNBC in Washington.
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• The U.S. economy exited recession in June 2009, the National Bureau of Economic
Research (NBER) said
Private sector can help meet skilled workforce target
• Finance Minister Pranab Mukherjee said India was faced with a major challenge of
creating a skilled workforce of 150 million by 2022 and the National Skill Development
Corporation (NSDC) had made a good beginning in this regard.
Proposal to set up fertilizer plants
• The Oswal Chemicals and Fertilisers Limited has offered to set up Rs.5,000-crore urea
plant and Rs.2,000-crore di-ammonium phosphate plant in the State. The offer was made
by Abhay Oswal, chairman and managing director of Oswal Chemicals and Fertilisers to
Chief Minister K. Rosaiah during their meeting
OVL bids for two new Russian oil fields
• ONGC-Videsh Ltd. (OVL) has bid for Russia's strategic Trebs and Titov oil fields, even
as its proposed bidding partner, Rosneft, has pulled out of the race.
• OVL submitted its application through Nord Imperial, which is part of Imperial Energy,
an OVL subsidiary in Russia, hours before the bidding closed.
• The Indian company is the only foreign bidder competing for what has been described as
a “jewel” among the Russian oil reserves. OVL faces tough competition from five
Russian rivals — LUKOIL, Russia's No.2 oil producer, TNK-BP, half-controlled by
British Petroleum, Gazprom, Russia's natural gas monopoly, Surgutneftegaz, Russia's
fourth-largest oil producer, and mid-sized firm Bashneft.
Cairn finds oil in Greenland
• U.K.-based Cairn Energy announced that it had made its first oil discovery off the coast
of Greenland.
• Edinburgh-based Cairn said its Alpha-1S1 well in the sea between Greenland and Canada
found oil over a 400-metre section and encountered gas reserves, the company said
IBM to offer IT support services
• IBM said it had signed a 10-year business transformation and information technology
(IT) services agreement with Jet Airways. Valued at $62 million, the agreement will help
Jet Airways achieve significant growth by aligning the company's IT with business
strategy.
Reliance Brands' venture with Italian firm
• Ermenegildo Zegna Group, a leader in luxury menswear and one of Italy's family-driven
enterprises, and Reliance Brands, a part of the Reliance Group, have established a
51:49 joint venture to develop the Zegna brand in India. In the five-year period 2010-
15, more than ten stores across six to seven cities will be opened.

Crisil to buy Pipal for $13 m

• Crisil has signed an agreement to purchase the business of Pipal Research Corporation
(Pipal), a leading player in the knowledge process outsourcing (KPO) industry for a
consideration of $12.75 million.
• Crisil's KPO division, Irevna, has consistently been ranked as the leading financial
services and investment KPO firm by the Datamonitor Black Book of Outsourcing. The
Irevna-Pipal combination will be uniquely positioned in the high-end analytical

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offshoring space with the widest range of services, geographic locations, and customer
diversity. Headquartered in Chicago, Pipal's services, clients and delivery locations are
complementary to Irevna's, enabling the combine to strengthen its leadership in the KPO
industry.
FII investment cap raised by $10 b in debt markets
• Aimed at bridging the financing gap in infrastructure business and ensuring India's
growing attractiveness as an investment destination, the government raised the cap on
investment by foreign institutional investors (FIIs) in the country's debt and bond markets
by $10 billion to $30 billion.
• According to an official statement here, FIIs will now be allowed to invest up to $5
billion more in both government bonds and corporate papers after they reach the existing
cap of $5 billion and $15 billion in the two instruments, respectively. Besides, FIIs are
permitted to invest $5 billion in bonds of infrastructure companies and government bonds
with a residual maturity of over five years.
JSW Steel gets Rs.4,800 crore from Japanese firm
• JSW Steel has received Rs.4,800 crore from JFE Holdings of Japan following a deal in
July this year when JSW sold a 14.99 per cent stake to JFE.
Taj unveils new brand in Sri Lanka
• Taj Hotels Resorts and Palaces announced ‘brand new architecture' for its existing chain
in Sri Lanka and said that it would look for more sites to expand in the post-war island
nation. Currently the group has three properties in Sri Lanka. Five-star hotels in Colombo
and Bentota, a coastal town 65 km south of the Capital, and a four-star hotel at Seeduwa
near the international airport.

Mahindra Satyam to delist ADRs

• Satyam Computer Services Limited (Mahindra Satyam) announced that it has notified the
New York Stock Exchange (NYSE) of its intent to delist its American Depositary
Receipts (ADRs).
• A release said, in accordance with the rules and regulations of the U.S. Securities and
Exchange Commission (SEC), the company intends to file Form 25 (Notification of
removal from listing) on or about October 4. The company anticipates that the delisting
of its ADRs from the NYSE would be effective on or about October 14.
Efforts on to expand trade with Canada
• Seeking further strengthening of the strategic partnership between the two countries,
Union Commerce and Industry Minister Anand Sharma said that bilateral trade between
India and Canada will triple to $15 billion in the next five years.
• Mr. Sharma, who is currently on a visit to Canada with a high power business delegation,
also held discussions with the Canadian International Trade Minister, Peter Van Loan at
Ottawa, on India's determination to gain access to BlackBerry corporate e-mails and its
threat to ban RIM (Research-In-Motion) if it is denied that access. India is just one of
several countries that have demanded access to encrypted data over concerns about
security and cultural sensitivities.
BPCL to diversify into gas, power
• Bharat Petroleum Corporation Ltd (BPCL) has chalked out a five-year strategy to
diversify its business into other core areas like gas, exploration and production, power
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generation, increasing its market share and refining capacity, a top company official
said.
Pranab to launch LIC's Swavalamban scheme today
• Finance Minister Pranab Mukherjee is scheduled to formally launch the ‘Swavalamban
Scheme' of Life Insurance Corporation (LIC) at Murshidabad in West Bengal.
• The Centre has already approved the operational guidelines for the scheme which was
announced by Mr. Mukherjee in his budget speech for 2010-11. The scheme is applicable
to all citizens in the unorganised sector who join the New Pension Scheme (NPS), subject
to their meeting the eligibility criteria, an official statement said here. The scheme is to be
funded by grants from the Centre.
IDFC launches infra bonds
• Infrastructure Development Finance Company (IDFC), which was recently accorded the
infrastructure finance company status by the Reserve Bank of India, launched the
country's first tax-free infrastructure bonds to raise Rs.3,400 crore.
Unilever to buy Alberto Culver
• Consumer goods major Unilever said it would acquire U.S.-based Alberto Culver
Company for $3.7 billion in an all cash deal, a move that would help in strengthening
its global position in both hair care and skin care categories.

Kuwait evinces interest in acquiring stake in Indian Oil Corporation

• Eyeing the disinvestment lined up by the UPA-II in Indian Oil Corporation (IOC),
Kuwait's Petroleum Minister Sheikh Ahmad al-Abdullah al-Sabah expressed the desire of
his Government to pick up a stake in state-run IOC if the Government opts for strategic
sale
Supreme Court refuses stay for Vodafone
• The Supreme Court refused to offer any immediate relief to Vodafone, which has
challenged the Bombay High Court order allowing the government to tax the company's
$11-billion deal with Hutch.

• The Income-tax Department had raised a demand for Rs.12,000 crore as tax on the
2007 deal, worth about Rs.55,000 crore.

Reliance Capital plans to enter banking

• Reliance Capital plans to enter the banking sector once the Reserve Bank of India (RBI)
is ready with its final guidelines for new banking licence.
ADB upgrades India's growth forecast
• Asian Development Bank (ADB) upgraded India's growth forecast for the current fiscal
to 8.5 per cent from 8.2 per cent in April this year. It, however, expressed concern over
persistent high inflation and rising value of rupee that could undermine future economic
expansion.
Tyco to merge Indian energy business into Raychem RPG
• Raychem RPG Ltd. (RRL), a 50:50-joint venture between U.S.-based Tyco Electronics
(TE) and RPG Enterprises, announced that TE would integrate its energy business in
India into RRL, thereby creating a single entity.
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International coir fair in Alappuzha in November
• The State Coir Development Department, in association with various departments and
agencies, will organise an international coir fair from November 25 to 30 in Alappuzha.
ONGC seeks legal opinion on Cairn-Vedanta deal
• State-owned Oil and Natural Gas Corporation (ONGC) is learnt to have sought legal
opinion from the Solicitor General of India on its right and legal position in the $9.6
billion Cairn-Vedanta deal which has run into trouble with the authorities.
Aircel to offer Apollo healthcare services
• Aircel launched the first tele-healthcare delivery on mobile in association with the Apollo
Hospitals Group. ‘Aircel Apollo Mobile HealthCare' will address the healthcare needs of
the masses through tele-medicine, providing online interactive healthcare in real-time
basis by utilising modern technology and telecommunications.
Centre rejects GST's alternative model
• The Centre has rejected the alternative model of Goods and Services Tax (GST)
suggested by the empowered panel of State Finance Ministers and a few BJP-ruled
States, which was suggested as a strategy to obviate the need for amendment to the
Constitution.
Three-fold rise in current account deficit
• India' current account deficit, representing net flow of income out of the country
barring capital movements, surged three-fold to $13.7 billion in the April-June quarter
over the same period last year.

• The increase in current account deficit (CAD) during the quarter is due to higher
imports because of economic recovery and larger payments overseas for certain
services, according to the data on Balance of Payments (BOP) released by the Reserve
Bank of India (RBI)

Food inflation surges to 16.44 per cent

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• Continuing its march for the fifth straight week, food inflation surged further to 16.44 per
cent for the week ended September 18 from 15.46 in the previous week, mainly driven by
higher prices of essentials following supply disruptions on account of heavy rains and
floods
SBI hikes deposit rates
• State Bank of India (SBI) revised upwards its deposit rates by 25-75 basis points for
various maturities, effective October 1.
• However, the deposit rates for 15-45 days and 46-80 days would remain at the current
level of 4 per cent. Further the rate for deposits of 181 days to less than one year would
be the same at 6 per cent.
Shareholders approve SAIL-MEL merger
• Shareholders of Steel Authority of India Ltd. (SAIL) approved the scheme of merger of
Maharashtra Elektrosmelt Ltd. (MEL) with the ‘Maharatna' company under Sec.391-394
of the Companies Act, 1956. The proposal is now under consideration of the Ministry of
Corporate Affairs.
• At the SAIL's 38th annual general meeting, shareholders also approved the board
recommendation for final dividend payment of 17 per cent on paid-up equity, apart from
the interim dividend of 16 per cent already paid earlier this year. This takes the total
dividend payment for 2009-10 to 33 per cent.
ICICI Bank opens branch in Singapore
• ICICI Bank opened a retail branch in Singapore, with India's High Commissioner T. C. A.
Raghavan symbolically signing the first account.
Change in name of insurance JV to help boost business
• The recent change in the name of IDBI Fortis Life Insurance Company Ltd., a joint
venture floated by IDBI Bank, Federal Bank and Fortis Insurance International, to IDBI
Federal Life Insurance Company Ltd., is expected to help boost the company's operations
in Kerala. Federal Bank has a very strong presence in South India, particularly in its
home State, Kerala.

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