MTNL raises Rs500 crore from banks to repay debts

In July, MTNL had invited expression of interest from banks for providing long-term loans of Rs1,500 crore with a floating interest rate for seven years

State-owned telecom major Mahanagar Telephone Nigam Ltd (MTNL) has raised Rs500 crore from various banks that will be used to repay debts and meet operational expenses.

"Out of the total loan amount of Rs1,500 crore, we have raised Rs500 crore from various banks and for the rest of the amount, we are still in talks with them (banks)," MTNL CMD Kuldip Singh said.

In July, MTNL had invited expression of interest (EoI) from banks for providing long-term loans of Rs1,500 crore with a floating interest rate for a tenure of seven years. It wanted to raise the funds to repay its debts and meet operational expenses.

The loan might be used to repay the loan MTNL had taken for buying 3G and BWA spectrum last year. The company is already in the process to restructure its Rs7,000 crore loan taken for buying 3G and BWA spectrum last year. The PSU plans to convert Rs3,000 crore loan into a long-term debt.

The company had already restructured Rs3,500 crore of debt, by repaying Rs500 crore and tying up with two banks for the remaining Rs3,000 crore. Delhi and Mumbai were the most expensive circles for 3G, with the bid for Delhi costing Rs3,316.93 crore and Mumbai Rs3,247.07 crore, against the reserve price of Rs320 crore each for both the metros.

Similarly for BWA, Delhi and Mumbai saw the highest bids at Rs2,241.02 crore and Rs2,292.95 crore, respectively. MTNL has already launched 3G mobile services.

MTNL has also joined hands with Shemaroo Entertainment to launch 2G and 3G value added services across Delhi and Mumbai. MTNL users will now be able to enjoy Live Prayers and will also now be able to watch their favourite movie on Movie Talkies, the company said.

On Wednesday, MTNL ended 1.87% down at Rs36.80 on the Bombay Stock Exchange, while the benchmark Sensex declined 1.29% to 16,248.98.

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Continental plans ramp-up of India operations

Post acquisition of Modi Tyres, the new entity Continental India is ramping up its operations in both the replacement market and the OEM space in India

Automotive supplier & tyre manufacturer Continental International today announced its expansion plans for the Indian market. Post acquisition of Modi Tyres Company Ltd, the new entity Continental India Ltd is ramping up its operations significantly in both the replacement market and the OEM space in India.

Continental India will be increasing the production of the Modipuram plant beyond half a million bias truck and bus tyres (TBX) already this year. From there, TBX production is planned to grow to more than one million units in 2013. In addition, Continental India announced further investments of more than 50 million euros to start production of radial tyres for passenger cars and commercial vehicles in the second half of 2013.

In July 2011, Continental had formally completed the acquisition of Modi Tyres  which included the existing TBX plant in Modipuram, the tube plant located in Partapur and all related operational assets to those plants including all customer relationships. Alok Modi, member of the founding family of Modi Tyres, will be on the board of directors of Continental India.

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L&T Construction wins orders worth Rs1,340 crore

L&T Construction has secured new for the construction of commercial & residential buildings

Larsen & Toubro arm L&T Construction has secured new orders worth Rs1,340 crore in the  building & factories segment during the second quarter of FY10-11 for the construction of commercial & residential buildings including add-on orders from ongoing projects.

L&T has secured new orders aggregating to Rs975 crore for the construction of a mixed use commercial development and construction of the main civil works for an IT campus. It has also secured an order worth Rs203 crore for the construction of a residential tower. It has also secured add-on orders worth Rs162 crore from various clients for ongoing contracts.

On Wednesday, L&T ended 2.17% down at Rs1,557.90 on the Bombay Stock Exchange, while the benchmark Sensex declined 1.29% to 16,248.98.

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