The Hindu Business Line : Business Line Weekly Round Up

The new pay structure devised by the Sixth Pay Commission, headed by Mr Justice B.N. Srikrishna, intended to provide an additional Rs 12,561 crore per year in the hands of the Central Government employees and armed forces personnel.

The additional expenditure arising from the recommendations is under different heads, including revised pay scales for civilians as well as defence forces, house rent allowance, pensions and other allowances.

The revised pay structures suggested would take effect from January 1, 2006.

Tata Motors said last Wednesday that it would pay $2.3 billion to Ford Motor Company for its UK assets Jaguar Land Rover in an all-cash deal that is expected to close by the end of the next quarter.

A definitive agreement for the brands, plants and intellectual property rights of Jaguar Land Rover sealed the deal. The brand will be acquired through a UK-based subsidiary of Tata Motors.

Indian stocks soared last Tuesday, sending the Sensex to its second biggest single-day points gain. The Sensex rose 928 points, the highest since its all-time high of 1,140-point gain on January 25 this year.

The benchmark index closed well above the 16,000-level at 16,217, it had tested the 14,000 levels just a week ago.

FIIs were net buyers of equities for Rs 1,246 crore and the domestic institutional investors for Rs 400 crore.

Unable to compete with the subsidised price of public sector oil retailing companies, Reliance Industries Ltd has decided to shut about 900 of its 1,400 petrol stations the company in the next few weeks.

Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation are compensated by the Government for their revenue losses. The similar mechanism is not available to the private sector players. This makes the oil retailing business unviable for private sector players, industry sources said.

Inflation shot past the 6 per cent mark to touch its highest levels in nearly 14 months.

The Wholesale Price Index rose 6.68 per cent for the week ended March 15, sharply higher than the previous week's rise of 5.92 per cent.

Primary articles such as cereals, vegetables, milk, oil seeds showed a spurt in prices during the latest week.

Bharat Sanchar Nigam Ltd has awarded a $100-million contract to the Canada-based technology major Nortel.

BSNL's GSM project had run into rough weather after Nokia Siemens refused to accept the agreement on the grounds that the price offered was too low and the tender conditions were changed after the bids were placed.

The deal with Nortel will enable BSNL to enhance its network capacity in South India

Broking firm Religare Enterprises is all set to acquire one of the oldest British financial services company, Hichens Harrison & Co, in a deal costing about Rs 450 crore.

The acquisition, first for any financial services company in India, is expected to be completed very soon.

The deal is expected to give Religare presence across several countries including UK, Luxembourg, Dubai and Singapore, Religare officials said.

On the heels of fixing a higher minimum export price on basmati and non-basmati rice on March 5, the Government has, last Thursday, hiked the export price on basmati rice further to $1,100 per tonne (Rs 44,000) and to $1,000 per tonne (Rs 40,000) on non-basmati rice.

Nagarjuna Fertilisers and Chemicals Ltd has completely exited from the inter-State mega power project under construction in Udupi, Karnataka, selling its 26 per cent stake to the Lanco group.

The company officials, when contacted, confirmed the exit.

The company's exit comes at a time when the power project is faced with tariff risks due to escalation in international coal prices.

Compiled by MJ Madhavan