GMR Energy to invest Rs18,000 crore by 2012

GMR group company GMR Energy Ltd on Tuesday said it would invest Rs18,000 crore over the next three years to increase its electricity generation capacity to around 3,300MW from a little over 800MW now, reports PTI.

"These projects would be funded in a debt-equity ratio of 75:25. For the equity portion, we have internal accruals and short-term loans," said Raaj Kumar, chief executive, GMR Energy.
The company is in talks with various banks, including State Bank of India and Axis Bank, and has also approached SBI Capital Markets to mobilise debt funds for these projects. "These lenders have been with us for a long time," Mr Kumar said.
The company currently operates three plants in India—a 380MW unit at Vemagiri in Andhra Pradesh, a 200MW plant in Chennai and a 235MW plant in Mangalore.
GMR Energy's projects in the pipeline include a 1,050MW plant at Kamalanga in Orissa and an 800MW expansion at the Vemagiri plant. It is also implementing a 600MW project for its subsidiary, Emco Energy. These three projects are scheduled to be commissioned by 2012.
The company is also setting up a 1,320MW plant in Chhattisgarh, which will be commissioned in early 2013. "We are investing Rs4,540 crore in Orissa, Rs3,360 crore for the Emco project, Rs2,800 crore in Vemagiri and Rs5,500 crore in Chhattisgarh," Mr Kumar said.
GMR Energy is also setting up five hydro-power projects—three in India and two in Nepal. The financial closure for the company's 300MW hydro plant at Uttarakhand will be completed by March 2010, after which it would take 54 months to complete the project, he said.
He said the debt component for the Emco project would be arranged from Axis Bank and the company is in talks with SBI for the Chhattisgarh project and the gas-based project in Andhra Pradesh.


UTV signs Rs95 crore syndication deals with TV channels

UTV Software Communications Ltd said its unit, UTV Motion Pictures, has signed a series of non-exclusive television rights syndication deals worth Rs95 crore with some TV channels.

The deals cover the entire portfolio of UTV Motion Pictures’ 2008 and 2009 productions, from ‘Oye Lucky! Lucky Oye!’ and ‘Dev D’ to recent hits like ‘Kaminey’, ‘Wake Up Sid’ and ‘Kurbaan’, the company said in a release to the Bombay Stock Exchange (BSE).
Siddharth Roy Kapur, chief executive, UTV Motion Pictures, said," We are pleased to announce these television syndication deals that are non-exclusive in nature and hence allow us to exploit the same content across multiple additional broadcasters in India and worldwide."
As part of the deal, Colors will telecast the premiere run of these movies in India, followed by NDTV Imagine. These channels will have the right to telecast a fixed number of runs of each movie. UTV has the right to further syndicate the television rights to these movies to any other channel in the same period.
In other overseas syndication deals, B4U has acquired the non-exclusive rights to air UTV’s movies across its international beams and Channel 4 has acquired the rights to air these movies in the UK market.
In the last few years, UTV has carved a unique place for itself as the only non-family-run, true-blue studio model in the industry that creatively develops, produces, markets, distributes and syndicates movies across various genres, star casts, scales and budgets.
The company has in a short span of five years brought audiences such iconic films as ‘Swades’, ‘Rang De Basanti’, ‘Jodhaa Akbar’, ‘Khosla Ka Ghosla’, ‘Life in a Metro’, ‘A Wednesday’, ‘Mumbai Meri Jaan’ and ‘Fashion’.
Yogesh Sapkale


Mutual fund-broker route may drive up investor costs

Cost to investor under the new proposed route could reach up to eight times the expenses under current model

While SEBI’s move to allow brokers to deal in mutual fund products was meant to serve investor interests, it looks more likely that investors may end up shelling out more than they bargained for, if they were to buy or sell units through stock-exchange brokers or depository participants.

This is evident from the huge difference in transaction costs an investor would incur under the existing and new models. Under the present model, where investors approach distributors or apply to funds directly, only registrar and transfer agent (R&TA) costs are incurred by the investor. This boils down to per folio cost roughly amounting to Rs70 per annum. Whereas, industry sources reveal that under the depository/ stock-exchange trading-member model, costs will shoot up to between Rs540-Rs790 per folio per annum. In other words, the cost per folio would be eight times higher under the new model!

R&TAs are also more cost-effective when it comes to hosting large databases. While depositories today hold a mere 1.6 crore investor accounts, R&TAs hold 7.34 crore such accounts, and have a proven record of technical capability. Costs under the R&TA model are significantly lower as it plays a deeper role than that played by a depository or stock-exchange broker.

Industry experts indicate that brokers could charge between 0.25%-0.50% of the value of any buy and sell transaction involving mutual fund units. However, it is not yet clear how additional costs such as securities transaction tax and stamp duty would be levied. Brokers may even charge separately for investors who want advisory or support services.

All these costs would only increase the burden on the retail investor. Considering the already alarmingly low number of investors buying into mutual fund schemes, this extra baggage would only further their indifference to this segment.
– Sanket Dhanorkar


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