Weekly Economic Time News

(6sept-12sept)
 Reliance Infratel, GTL call off merger deal

 Reliance Infratel and GTL infrastructure have put on hold plans to combine
their tower operations in a deal valued at $11 billion, raising question marks
over the debt reduction plans of parent company Reliance Communications
(RCOM).
 RCOM owns 95% of Reliance Infratel.
 The development will affect RCOM’s ability to price its high –end 3G
services and added that it expected India’s second largest telecom company
by customers to hasten the process to sell a 26% equity to raise money.
 In June, both parties had agreed to exclusively discuss terms of merger till
August 31.
 When these deadlines lapse, they are renewed if talks are on track.
 RCOM said it was in talks with other strategic and financial investors for
similar transactions to reduce its debt.
 ArcleorMittal, Indiabulls in JV talks for
steel project, mining
ArcelorMittal the worlds largest steel maker, is in discussions
with Indiabulls group to from a JV company for scouting and
mining iron ore in Rajasthan and setting up a steel plant.
It is a mineral rich state. The JV company would seek to locate
and develop it.
The JV would be between an Arcelor Mittal subsidiary or an
investment arm of the Mittal family and an Indiabulls group firm.
Their main aim is to tapping the market for steel in North India,
where there is no integrated steel plants.
LN Mittal already holds an 8.79% stake in Indiabulls power.
The company has already been allocated iron ore mines in West
Singhbhum district of Jharkhand.
Britannia to invest Rs. 100 crore in 2 new
plants
 Britannia industries will invest around Rs. 100 crore to set up
a plant each in Bihar and Orissa to scale up production to
cater to the growing market.
 Britannia, with a 31% market share, is lagging behind Parle
industries, which has gained clear volume leadership in the
Rs.10000 crore Indian biscuit market in the recent times.
 It had launched brands like pure magic and Chocs Decor as
competition to chocolates by leveraging festival gift packs,
creating a value for the brand.
 Railways in talks with NPCIL to set up
nuclear power plant
 The Indian Railway has approached Nuclear Power
Corporation of India (NPCIL) for setting up 1000 mw of
captive nuclear capacity on its behalf.
 The proposal of Indian Railways include setting up two units
of 500 mw on railway land.
 According to current estimate two 500 mw nuclear power plant
will cost around Rs. 10,000 crore for the plant and equipment.
 The Indian Railway and NTPC joint venture Bhartiya Rail
Bijliee company will set up a captive power plant at Nabinagar
in Aurangabad district of Bihar.
 The Indian Railway will hold a minority stake, at most 49%, if
it comes in for joint venture.