INDIA INTELLIGENCE REPORT

 

Business & Economy
Tatas plan to invest
$2.5 b in Bangladesh
What is India News Service, Thursday, 21 April 2005, 1600 hrs IST

India\92s largest hotels chain, biggest software servives provider and leading truck maker has proposed a $2.5 bn investment in Bangladesh, that is is five times the total FDI there in 2004 and assumes even greater significance as the total Bangladesh FDI since 1972 was $3 billion.

The industrial giant has made the formal proposal to invest $2.5 billion, $500 million more than previously envisaged, a senior official said on Wednesday.

The Tata Group chairman, Ratan N. Tata, signed a deal with Bangladesh's state-run Board of Investment (BoI) last year to invest $2 billion in the power, steel and fertilizer sectors, the biggest single investment proposal in Bangladesh.

"Today, we have received a formal $2.5 billion investment proposal from the Tata group," Mahmudur Rahman, executive chairman of the BoI said.

S. Manzur Hossain, resident representative for Tata, handed over the proposal to the BoI chief on completion of a feasibility study which started in December last year.

During his visit to Bangladesh last October, Ratan Tata said, "We are satisfied as the energy minister assured us about smooth availability of natural gas to run the plants over next 20 to 25 years."

Related story:
Tata Steel in talks to take over Iranian plant 

Restructure petroleum duties, advises MPs\92 panel
: A parliamentary panel, attached with the Petroleum Ministry, has called upon the government to restructure the excise duties on the petroleum products to neutralise the impact on the oil market companies of the soaring international crude oil prices.

Drawback scheme to cover 4,000 items: The expert committee set up to review the duty drawback rates for exporters has recommended that the January 2005 shift to specific rates of drawback be reversed and the rates be announced on an ad valorem basis.

Govt slaps Rs 10,000 cr tax penalty on firms: Companies and banks are charged with concealment of income. 

India becoming jewellery hub: India is fast emerging as a trading hub for diamond and gold jewellery, exports crossing $ 15.6 billion during
2004-05, registering about 30 per cent growth over the previous year.

US okays Indian polymer resin import: In a significant decision, the United States has terminated countervailing and anti-dumping investigations on imports of polyethylene terephthalate resin from India, Indonesia and Thailand.

Biocon net profit rises 42 pc at Rs 198 cr: Biocon Ltd reported a Rs 198-crore PAT that was higher by 42 per cent over the previous fiscal and a total income 34 per cent higher at Rs 728 crore for the year ended March 31, 2005. 

Travel agents call off ban against A-I: Travel agents across the country have called off their 19-day agitation against Air-India and European carriers after getting an assurance from the A-I top brass that their grievances would be looked into.

Govt to review cosmetics Act: The government today informed the Lok Sabha that it would soon review the Drugs and Cosmetics Act to ensure stringent measures in the wake of reports that certain harmful chemicals are used in baby products.

Left parties for stopping all iron ore, mineral exports: "Linkages for iron ore should be given only if a company is setting up a steel plant in India." 

Strict penal provisions planned to make baby products safe: The Government plans to make the penal provisions in the Drugs and Cosmetics Act more stringent to ensure safety of baby products.

Traders meet Ajit Singh on VAT: In order to muster political support for their agitation against Value Added Tax system, traders on Wednesday met Rashtriya Lok Dal Superemo Ajit Singh. 

Hi Bird Cycles eyes Chinese market: After taking on Chinese cycle manufacturers in the domestic market, Ludhiana-based Hi Bird cycles has
decided to enter the Chinese market in a big way.

Denel CEO sacked: Durban, April 20 The Chief Executive of a South African arms manufacturing company, Denel, which is under investigation for alleged corruption in a deal with India in 2003, has been sacked following charges of financial mismanagement.

Haryana FM suggests rethink on CST: Haryana would lose Rs 700 crore, the year the central sales tax is reduced to 2 per cent and Rs 1,600 crore in the year the rate is brought down to zero. Collectively, the states would together lose over Rs 15,000 crore.


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