Govt. drops plan for experts’ panel

With the Prime Minister’s approval not coming through even after a lag of nearly three months, the Ministry of Power has finally abandoned its much-publicised plans of constituting an experts’ committee for reviewing the controversial “cost-plus” private power development policy based on the two-part tariff formula. Instead, the ministry has now decided to constitute an inter-ministerial working group to look into the four-year-old private power policy and formulate competitive bidding norms for power projects with tariff as the bottomline. Incidentally, this aspect was the major item in the terms of reference drawn up for the experts’ committee by the Ministry in September.

Banks plan bond issues to shore up capital

Several PSU banks have drawn up plans to raise subordinated debt through long-term bonds to meet the prescribed capital adequacy levels at the end of the current financial year. Being part of Tier-II capital, subordinated debt qualifies for capital adequacy requirement. At least half a dozen public sector banks have approached rating agencies to get their proposed issue of bonds rated, according to a senior rating official. “Negotiations with the banks arc in a preliminary stage,” the official said.

BSE officials meet SEBI chief on Reliance issue

Bombay Stock Exchange authorities had a meeting with SEBI Chairman on the issue of Reliance delisting. Meanwhile, BSE itself has been examining the various options available before following the request of the Reliance group to dellst the shares of the four group companies. The governing board will be also meeting on December 4 to take a decision on the issue.

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