NTPC signs MoU for renewable power venture

Indian state-run power firm NTPC Ltd. has signed a memorandum of understanding with Asian Development Bank to set up a joint venture company for renewable power generation, the company said.

NTPC and other government entities will hold up to 50% in the joint venture, to be established with other strategic investors who will hold the remainder.
ADB is expected to acquire 20% at a later stage, NTPC said in a statement late on 23 July. Financial details were not diclosed.Over the next three years, the joint venture company will hold a portfolio of about 500 mw of renewable generation.

Initially, it will focus primarily on wind power and mini and microhydroelectric power projects. It may also include other renewable power generation resources such as solar, geothermal and bio fuel projects, it said.

ICRA, Indian Bank in ratings tie-up

ICRA Ltd and Indian Bank have signed a memorandum of understanding under which the former will rate the bank's loans and other exposures under the standardised approach of RBI's New Capital Adequacy Framework for Basel-II and also to small scale industries and small and medium enterprises.

ICRA's ratings for the standardized approach would be carried out under its "Line of Credit" rating service and would enable the bank to assess the new risk weights applicable to its borrowers under Basel-II. The risk weights would be linked to the various rating categories and would be as per RBI's above guideline.

The SSI ratings will be carried out under the National Small Industries Corporation-ICRA Performance and Credit Rating Scheme for SSIs. The SME ratings, on the other hand, will be assigned under the ICRA-SME Rating Scale.

Allahabad bank ties up with Franklin Templeton

Allahabad Bank, a leading public sector bank has signed an MoU with Franklin Templeton Investments (India), for distributing its mutual fund products through its 2107 branches across the country.

Mr Vivek Kudva, President, Franklin Templeton India and Mr AC Mahajan, CMD, Allahabad Bank, signed the MoU and reaffirmed their commitment towards creating a basket of services that could enable their valued customers to make holistic financial solutions.
Templeton India aims to reach out to a larger number of retail investors and this tie-up offers the way forward for the Indian mutual fund industry to attain the critical mass necessary for growth.

He is convinced that the coming months will see a larger proportion of household savings finding their way into mutual funds. He hopes to develop a new user base of customers who were so far not accessing their investment products.

Ispat Group to invest $3bn in Bangladesh

The Vinod- and Pramod Mittal-controlled Ispat Group is all set to invest around $3 billion (Rs 12,000 crore) in Bangladesh in a gamut of sectors, including gas exploration and production, power, petrochemicals and coal mining.

Global Oil and Energy, an investment outfit of the Ispat Group, today signed a preliminary memorandum of understanding (MoU) with Bangladesh’s state-run Board of Investment (BoI) for this purpose. The group will begin funding after the completion of the detailed feasibility study. The actual quantum of investment by the group might vary, depending upon the outcome of the feasibility report.

Sources in the Ispat Group said the neighbouring country had huge potential for big investment opportunity due to its gas reserves. The group would begin with investing in the gas sector in Bangladesh. Projects in the steel, coal and mining sectors would follow.

Industry sources said the investments would include $300 million for mine development, $100 million for oil exploration and production, $500 million for power plants, $1.5 billion for petrochemicals and $500 million for liquefied natural gas (LNG) and related projects.

Read more in The Business Standard article.

Carborundum Universal to acquire 84% stake in Russian firm

Carborundum Universal, flagship company of Murugappa group has announced thatit will acquire 84.14% stake in Russia’s Volzhsky Abrasives Works (VAW) for an undisclosed amount.

The company has entered into a binding Memorandum of Understanding for purchase of the stake in VAW, a leading producer of Silicon Carbide (SiC) with 65,000 tons per annum installed capacity.

The deal would be formally concluded as soon as the necessary clearances including an approval by Russian Federal Anti-monopoly Service are obtained and this is expected in July 2007, as communicated bythe company to the Bombay Stock Exchange (BSE).
Pursuant to this acquisition Carborundum Universal would bring to VAW its brands, market access, application engineering expertise and global management practices.

Read more in The Livemint article.

Videocon to invest $1.5 b in China

Ten Indian companies, including consumer durable major Videocon would invest $5 billion in setting up manufacturing units in China. Videocon alone would invest $1.5 billion in a liquid crystal display (LCD) product manufacturing unit in Shenzhen.

The other Indian companies to have signed a memorandum of understanding (MoU) with their Chinese counterparts include ZTE Telecom India, Spice Communications, International Certification, AKS Associates, Cosmos Industries, Maharasthra Industrial Development Corporation, Rajasthan Industries Development Corporation and Unity Power.

These MoUs were signed on Tuesday in Beijing. Videocon MD Rajkumar Dhoot on Tuesday signed an MoU with the China Council for Promotion of International Trade (CCPIT) chairman Wan Jifei for the proposed plant in China. Industry body Assocham has sent a 35-member business delegation to Beijing to discuss business possibilities with CCPIT.