Reliance Industries (RIL) has strongly dismissed the allegations made by the Comptroller & Auditor General of India saying that its telecom subsidiary Reliance Jio has followed rules laid out by the Government from time to time. A draft report prepared by the CAG has rejected the telecom department’s stand allowing Reliance Jio to offer voice telephony using broadband spectrum against a payment of Rs 1,658 crore. The CAG stated that had the Department of Telecommunications (DoT) made it clear that voice service was permitted there would have been more demand for spectrum during the auctions held in 2010. On CAG’s allegations that Infotel Broadband (the company which RIL acquired), with a low net worth, was allowed to acquire expensive spectrum, the company added that Infotel Broadband (IBSPL) fulfilled all the eligibility conditions to participate in the auction.
Looking for a larger role in the global oil and gas scene, ONGC wants to participate in transnational hydrocarbons pipeline projects. The company, which has an understanding with Russia’s Rosneft for oil and gas explorations in offshore Arctic, now wants to tap opportunities in direct transportation of hydrocarbons from Russia and Central Asia to India. This is in sync with the next five year’s goal set by the Ministry for Petroleum & Natural Gas. The Ministry, in its presentation to the Prime Minister Narendra Modi, has proposed a target of at least one transnational pipeline to bring gas from Iran, Oman or Central Asia. Interestingly, both Kazakhstan and Russia have been wooing India. ONGC Videsh has been working as a participant in Sakhalin-1 as also through its acquired company Imperial Energy in Tomsk.
Power Grid Corporation of India (PGCIL) will invest Rs 5,800 crore for upgrading its network in Gujarat over the next three to four years. The company will invest to increase the number of Extra High Voltage substations to 12 from the existing five. It will also be used for increasing the transmission capacity to 19,000 mega volt ampere (MVA) from the existing 4,000 MVA. The transmission lines shall be expanded to 7,575 km in Gujarat from the existing 5,610 km. The company has recently received an approval for two investment proposals worth Rs 5551.84 crore. The board of directors at its meeting held on June 21, 2014 has approved for the same.
State-owned NTPC is likely to commence production from its two captive coal mines -- Chatti-Bariatu and Kerandari -- in Jharkand by June 2016. However, it’s another mine -- Chatti-Bariatu (South) -- in the eastern state will be developed by 2038. The three coal blocks were earlier forfeited from the state-run company as it failed to develop them within the stipulated timeframe. However, the blocks were later given back to the power producer. NTPC has informed the ministry that with regard to Chatti Bariatu coal block all the milestones like mining plan, mine closure plan and environment and forest clearance have been completed. But due to reasons like lack of support of state government and law and order situation the company was unable to commence coal production despite of all the clearances.
The toll in the GAIL India’s pipeline blast at Nagaram village in the Konaseema area of East Godavari district rose to 19, with one more of the injured succumbing to burn injuries in a local private hospital, and at least six are in a critical condition in different hospitals. The incident occurred at the village on Friday claiming 15 lives on the spot and subsequently four more died in hospitals. The village is limping back to normalcy but there is widespread anger at ONGC and GAIL for what they perceive to be gross negligence. The locals are demanding that the mini refinery of ONGC and the gas collection station should be relocated, as they are now too close to the village for comfort. There is also concern over the safety of several villages in the Konaseema area, as GAIL pipelines crisscross the entire area.
Dairy firm Kwality has signed an agreement with Central Bank of India for extending financial assistance to dairy farmers. As per the MoU, Kwality will identify the farmers who supply milk to them and are in requirement of financial assistance. The company will then recommend their names to the bank, which would extend its credit facility to the Milk Producer Farmers (MPF) after checking the farmers credentials. Kwality Dairy will help the farmers in the documentation process and also in remitting the sale proceeds of the milk from the farmers directly to the bank for appropriation towards the loan/credit of farmers account.
Real estate firm Omaxe plans to raise Rs 300 crore this fiscal through selling part of its equity to fund the ongoing as well as future projects. Omaxe, which posted over Rs 1,600 crore turnover last fiscal, will launch seven projects in the July-September period, expecting that the property market will start improving from the next quarter. The company will invest about Rs 800-900 crore in 2014-15 on construction of ongoing projects and those to be launched next quarter. Omaxe had a gross debt of Rs 1,049 crore with a debt-equity ratio of 0.48 as on March 31. The company is targeting 20 percent increase in the sales bookings this fiscal to over Rs 2,500 crore. Omaxe has a land bank of about 4,400 acres in 30 cities across 9 states. The Delhi-based firm is executing 42 real estate projects that include 18 townships, 14 group housing and 10 commercial.
City-based lender United Bank of India has asked Vijay Mallya and three other directors of grounded Kingfisher Airlines to appear before a panel of the bank at the head office in Kolkata on July 9. The recovery department of the bank has sent a letter to them asking Chairman Vijay Mallya and three other directors of Kingfisher Airlines to appear on July 9 before the grievance redressal committee of the bank. United Bank was the first among other banks in the country to take such a stern step against the grounded airline. The bank's exposure to Kingfisher Airlines was around Rs 350 crore.
Miles Software Solutions has acquired Mumbai-based startup Beans & Intellect Financial Technology to enhance its wealth and asset management solutions. Founded by IIT-Bombay graduates, Beans & Intellect provides portfolio risk analytics technology to financial institutions in India, the Middle East and South-East Asia. The company will integrate Beans & Intellect's technology with its flagship product MoneyWare. The solution would also be available as a service on the cloud.