PDS Funds cut 50% :
Though finance minister poor delivery as a key factor for the rise in food prices, the Budget has actually slashed funds allocated to strengthening the public distribution system after last year's resources remained largely unutilised. Net spending has been cut by more than 25% on monitoring of food and civil supplies and strengthening of the public distribution system (PDS). In 09-10 Government had allocated Rs 7.20 crore under plan expenditure. But the ministry could barely spend Rs 2.83 crore out of the allocation.
Bond yields edge up on supply, inflation worries :
Indian federal bond yields edged up in thin trade on Tuesday on concerns about government borrowing in the next fiscal year and worries about speeding inflation due to an increase in fuel prices. 10-year government bond; 7.87 --> 7.89 . Gross market borrowing raised by 1.3 percent in 2010/11 to 4.57 trillion rupees
FDI likely in commodity broking outfits :
The government is all set to open doors to foreign direct investment in commodities broking. The government is proposing to allow full FDI in commodities broking by adding it to the eligible list of activities permitted to be carried out by non-banking finance companies with 100% FDI. 100% FDI is allowed in stock broking and forex broking through the automatic route.
The Reserve Bank of India (RBI) is having second thoughts over relaxing norms for derivatives in the wake of the global crisis. If lenders have protection via CDSs, they may have more to gain from the company, failing which they would gain if the company survives. If this is the case, creditors with CDS protection could have incentives to push troubled companies into bankruptcy instead of working out the troubled debt. Recently, in the context of CDS on Greece debt, it is reported that US regulators will look into the matter of CDS trader destabilising not only companies but also countries.
Hindustan Dorr-Oliver acquires UK company :
Engineering solutions company Hindustan Dorr-Oliver said on Tuesday that it has acquired UK-based heavy engineering company DavyMarkham for 9.5 million pounds (about Rs 65 crore). The acquisition provides Hindustan Dorr-Oliver Ltd (HDO), part of Hyderabad-based IVRCL Infrastructure and Projects, an entry into the heavy engineering space.
Engineering solutions company Hindustan Dorr-Oliver said on Tuesday that it has acquired UK-based heavy engineering company DavyMarkham for 9.5 million pounds (about Rs 65 crore). The acquisition provides Hindustan Dorr-Oliver Ltd (HDO), part of Hyderabad-based IVRCL Infrastructure and Projects, an entry into the heavy engineering space.
L&T Fin NCD mops up Rs 1,120 Cr
L&T Finance’s non-convertible debentures (NCD) issue of Rs 500 crore has mopped up Rs 1,120 crore. This is, however, lesser than its previous NCD issue — in September 2009 — where the subscription was Rs 1,931 crore. The low amount was due to rising corporate bond yields, liquidity tightening measures, pre-budget uncertainties and a low investment appetite among mutual funds. The qualified institutional buyers category got a subscription of Rs 331 crore compared with the reserved potion of Rs 150 crore, non-institutional investors category got a subscription of Rs 635 crore compared with the reserved portion of Rs 200 crore and the retail investors category got a subscription of a bit over Rs 150 crore compared with the reserved portion of Rs 150 crore.
Vedanta Resources raises $805 mn via bond issue :
Vedanta Resources said on Tuesday it had raised $805 million (about Rs 3,715 crore) through a convertible bond issue that saw subscription from more than 60 overseas investors. The London-listed Vedanta, which is controlled by tycoon Anil Agarwal, has so far raised $4.8 billion through bond issues and ADR sales this year, making it one of the biggest foreign investments in India so far.
Govt may divest 30% in BSNL, up from 10% :
Government is seriously evaluating disinvestment of as much as 30% in BSNL, a company with assets worth Rs 88,000 crore and a turnover of Rs 35,000 crore. This is a three-fold hike in the investment limit from 10% proposed earlier, which has been opposed by BSNL's unions and executive associations. The unions will now be further provoked about the revival of the disinvestment process and an added proposal to retire 1 lakh employees through VRS schemes. BSNL has 90 million subscribers, 300,000 employees, India's largest 750,000 km optic fibre cable network and nearly 40,000 towers.
Vedanta Resources said on Tuesday it had raised $805 million (about Rs 3,715 crore) through a convertible bond issue that saw subscription from more than 60 overseas investors. The London-listed Vedanta, which is controlled by tycoon Anil Agarwal, has so far raised $4.8 billion through bond issues and ADR sales this year, making it one of the biggest foreign investments in India so far.
Govt may divest 30% in BSNL, up from 10% :
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