New Delhi: Sugar mills that do not have enough of the sweetener to meet export obligations can now source the commodity from a third party to undertake shipments and take advantage of high prices in the global market, reports PTI.
Mills had imported 20.75 lakh tonnes of sugar in the 2004-05 sugar year (October-September) under the Advance Licence Scheme (ALS), which makes it mandatory for them to export an equal quantity later. The mills are left with an obligation of about 8,00,000 tonnes, which they have to fulfil by March, 2011.
Last month, the food ministry had allowed sugar exports under the ALS in two tranches - 25% by November and the remaining 75% by March next year.
According to sources, some of the sugar mills did not approach the ministry to get the export release order, which is mandatory to make shipments, as they did not have sugar in their stocks because of the lean season from April to September.
Out of the 1,98,000 tonnes to be exported in the first tranche, the millers have so far taken release orders for 1,40,000 tonnes of sugar, they added.
The ministry has allowed the mills that have export obligations to source the sweetener from third parties so that they can get the benefit of prevailing high global prices, sources said.
A senior food ministry official hoped this decision would not only enable mills to fulfil their export obligation, but would also help them fetch good returns.
From next month, the ministry would start issuing release orders for the second tranche so that the export obligations get completed by March, 2011.
The government has allowed sugar exports under ALS as the country is likely to achieve a higher production than the annual demand in 2010-11 (October-September) after two years of low output.
India's sugar production is estimated at 25 million tonnes in 2010-11, while demand is pegged at 23 million tonnes.
Birla Sun Life MF floats Birla Sun Life Fixed Term Plan-Series CG; Reliance MF unveils Reliance Fixed Horizon Fund-XVI-Series 2; Gravita India IPO to launch IPO on 1st November; Power Grid FPO to hit market on 9th November; HDFC Bank offers special rates on personal loans; USE will start live operations in currency options from 29th October
Birla Sun Life MF floats Birla Sun Life Fixed Term Plan-Series CG
Birla Sun Life Mutual Fund has launched Birla Sun Life Fixed Term Plan-Series CG, a close-ended income scheme.
The scheme seeks to generate income by investing in fixed-income securities maturing on or before the duration of the scheme. The scheme will have duration of 367 days from the date of allotment. The scheme will invest 100% in debt securities and money-market instruments having low to medium risk.
During the new fund offer, the units will be offered at face value of Rs10 per unit. The scheme will have growth and dividend (payout) option. The exit load for the scheme is nil. The scheme opens on 28th October and closes on 1st November. The minimum investment amount is Rs5,000. The minimum target amount is Rs1 crore.
CRISIL Short Term Bond Fund Index is the benchmark index. The scheme will be managed by Kaustubh Gupta.
Reliance MF unveils Reliance Fixed Horizon Fund-XVI-Series 2
Reliance Mutual Fund has launched Reliance Fixed Horizon Fund-XVI-Series 2, a close-ended income scheme.
The primary investment objective of the scheme is to generate regular returns and growth of capital by investing in central and state government securities and other fixed income/debt securities normally maturing in line with the time profile of the scheme with the objective of limiting interest rate volatility.
During the new fund offer, the units will be offered at face value of Rs10 per unit. The scheme offers growth and dividend (payout) option. The tenor of the scheme is 369 days. The scheme opens on 28th October and closes on 2nd November. The exit load for the scheme is nil. The minimum investment amount is Rs5,000. The minimum target amount is Rs20 crore.
CRISIL Short Term Bond Fund Index is the benchmark index. Amit Tripathi is the fund manager.
Gravita India IPO to launch IPO on 1st November
A manufacturer of lead metal Gravita India is entering capital market with an initial public offering (IPO) of 36 lakh equity shares. The IPO will open on 1st November and close on 3rd November.
The company aims to raise Rs43.2-Rs45 crore at a price band of Rs120-Rs125 a share.
Gravita intends to utilise the proceeds of the issue for setting up an additional manufacturing facilities at Jaipur and new facility at Wada, Maharashtra. It will also use the proceeds for investment in overseas ventures in Sri Lanka - Navam Lanka Ltd, Senegal - Pagrik Senegal SA and Honduras - Gravita Honduras SA.
Part of proceeds will also be used for setting up manufacturing facilities at Australia, Belarus, Chile and Mexico.
Keynote Corporate Services Ltd is the book running lead manager to the issue.
The company is engaged in the business of manufacturing of lead metal by recycling and smelting process.
It has a subsidiary Gravita Exim which is specialised in providing turnkey solutions and consultancy services on engineering and design for the secondary lead companies.
Power Grid FPO to hit market on 9th November
State-run transmission company Power Grid Corporation of India would hit the market with over Rs8,000-crore follow-on public offer (FPO) on 9th November.
The bid would close on 11th November for institutional investors and on 12th November for retail and non-institutional bidders.
The company is planning to raise 10% equity, while the government is likely to offload 10% of its 86.36% stake in Power Grid.
The offer comprises over 84 crore equity shares of Rs10 each constituting 20% of existing paid-up capital.
Besides disinvestment of the government stake, the fresh capital raising would be used for part funding investment requirement of about Rs58,000 crore of the PSU.
The company had hit the capital market in October 2007, with its maiden public offer. The government had divested 5% of its stake in the company at that time.
HDFC Bank offers special rates on personal loans
HDFC Bank has announced special rates on personal loans this festive season for government & defence employees and salary-account holders. The discounts are offered on interest rate and processing fee. The Bank will give up to 4% waiver on existing interest rate for government & defence employees. For salary-account holders, the Bank will give up to 3% waiver on the existing interest rate. The Bank will also provide up to 0.5% discount on processing fee for salary-account holders depending on the customer profile. The offer is valid till 30th November.
USE will start live operations in currency options from 29th October
United Stock Exchange (USE) of India will start live operations in US dollar-Indian rupee currency options from 29th October. The call and put options will be introduced on the USD-INR spot rate with 12 'In The Money', 12 'Out of The Money' and 1 'Near The Money Option' with a strike price interval of 25 paise, thereby providing a price scan range of Rs6.25.
These options will be available for expiry in the three near months and the three quarterly months going up to one year allowing users flexibility to take price insurance up to one year on foreign exchange. USE has successfully conducted mock trading session for members on this new product.
Washington: Ahead of US president Barack Obama's visit to India, the government here has said that it is looking at the country as a big market for American exports and expects several commercial deals during his stay, report PTI.
Officials here said that Mr Obama is expected to focus on removal of barriers to US exports and for greater American participation in the Indian market to create jobs back home.
"I think one of the major themes...the president is likely to emphasise is that...India is also a tremendous market, potential market, for US exports and a source of investment back in the US," Deputy National Security Advisor Mike Froman told reporters yesterday at a White House briefing.
"...It's a tremendous opportunity for goods, services, agriculture that he'll be pursuing while he's there for supporting jobs back here in the US," he said, adding that some major commercial deals are likely to be announced during the Mr Obama visit to India next week.
Besides, White House spokesman Robert Gibbs said Mr Obama's focus during the visit would be that economic relations with India create jobs back home.
"I think we'll see as we get closer - not just the genuine potential of the market for American companies but some tangible impact in supporting and creating jobs here in America," Mr Gibbs said, adding that it would be consistent with their national export initiative.
Mr Froman said there's an ongoing dialogue between the two governments about outstanding trade issues, and Mr Obama will make clear the importance of removing barriers to US exports and US participation in the Indian market.
He said a number of commercial deals are likely to be announced during the trip.
"There are a number of large contracts being worked on between US companies and their Indian counterparts, oftentimes with the support of the US government in terms of our advocacy efforts or our trade finance being available. We hope to consummate some of these deals in the run-up to the president's visit," Mr Froman said.