RGTIL has a gas pipeline from the landfall hub of Kakinada on the east cost to Gujarat on the west coast, with various connections along the way. The company started developing the pipeline in 2005 and sold bonds in early 2009 to help finance the project, according to the media report
Singapore: Billionaire industrialist Mukesh Ambani is looking to sell Reliance Gas Transportation Infrastructure (RGTIL) business, which is into building pipelines to carry natural gas, reports PTI quoting a media report.
The Wall Street Journal has reported that Mukesh Ambani, chairman of Reliance Industries, has contacted bankers to help him sell the business.
"The process is at an early stage and a sale may not take place," the daily said.
Quoting two people familiar with the matter, the report noted that the privately-owned gas pipeline business, known as RGTIL for short, could be worth about $1 billion.
"RGTIL has a gas pipeline from the landfall hub of Kakinada across the country to Gujarat on the west coast, with various connections along the way.
"RGTIL started developing the pipeline in 2005 and sold bonds in early 2009 to help finance the project, according to the offer document for the bonds," the report said.
Following the report, Reliance Industries was up 0.51% to Rs850.25 per share on the National Stock Exchange in late-morning trade today, after falling 2.65% yesterday.
The telecom tribunal further observed that as the matter regarding transfer of licences is expected to be decided by the Delhi High Court by the end of this month, the penalty of Rs250 crore should be stayed
New Delhi: Providing some relief to Idea Cellular, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Tuesday restrained the Department of Telecommunications (DoT) from enforcing the Rs250 crore penalty on it for alleged violation of rules with regard to five over-lapping licences of Spice Communications, reports PTI.
The TDSAT bench, headed by its chairman justice SB Sinha restrained DoT from enforcing the penalty. However, it directed Idea Cellular to supply the relevant documents to DoT.
"We, however, direct Idea to supply copies of documents to the DoT forthwith," the tribunal said adding that non-filing of some documents cannot be a ground for refusing relief to Idea.
Idea acquired Spice Communications in 2008, leading to over-lapping of six licences.
The telecom tribunal further observed that as the matter regarding transfer of licences is expected to be decided by the Delhi High Court by the end of this month, the penalty of Rs250 crore should be stayed.
"We are of the opinion that Idea being not a 'fly-by-night' company and a huge amount having imposed on it by way of penalty, in the event, an interim order is passed in favour of the petitioner restraining DoT from enforcing its demand, no prejudice would be caused to it," it said.
"The legal position, it is expected, shall stand cleared by reason of the judgement of the Delhi High Court which, we are informed at the bar, may be pronounced in July, 2011," said TDSAT.
Idea Cellular had picked up 41.09% stake in Spice and it resulted in a situation where both the companies held licences in six circles.
The Aditya Birla-promoted firm has maintained that it has not breached any condition of the licence agreement.
Indian telecom laws prohibit a single operator from holding more than one licence in any circle. However, with the lack of clarity in mergers and acquisitions rules, the case has been pending in courts for a long time.
"The interim order has been granted on Idea's plea against DoT's demand notice issued to Idea in June 2011.
Earlier, TDSAT had also ruled against DoT's demand notice to Idea, imposing a penalty of Rs50 crore for Punjab circle," Idea Cellular said in a statement.
The Idea Cellular stock was up 0.52% at Rs77.40 apiece on the National Stock Exchange in mid-morning trade, after tanking 2.41% on Tuesday.
The trend is expected to continue till the earnings season officially kicks off next week
The domestic market is likely to open range-bound following mixed global cues. Wall Street, which opened after an extended weekend, settled flat on Tuesday with a mixed bias on concerns about economic growth and Moody’s downgrading Portugal’s rating into junk territory. Markets in Asia fluctuated in early trade on Wednesday on global worries. The SGX Nifty was five points higher at 5,655 compared to its previous close of 5,650.
The market closed lower yesterday in lacklustre trade. The consolidation in the Asian markets, after the recent rally, also weighed on investors. Earlier, the Nifty opened nine points higher at 5,660 and the Sensex gained 23 points at 18,838. The opening numbers on the benchmarks were also their day’s highs.
The market continued drifting southwards amid choppy trade and the lack of any major triggers. The indices touched the day’s low in post-noon trade with the Nifty falling to 5,612 and the Sensex to 18,694. Buying in select sectors led the indices marginally higher, but profit booking kept a cap on the gains and the market closed in the negative today. The Nifty finished the session 18 points lower at 5,632 and the Sensex closed at 18,745, down by 70 points.
The Nifty moved in the range of 5,500 and 5,690 today, in line with our expectations, detailed in Monday's closing report. The upmove has been stalled. The first support for the Nifty is now at 5,600, followed by 5,480.
US markets closed mixed on Tuesday on worries about the country’s economic growth as president Barack Obama seeks support to raise the debt ceiling to avoid a default as early as August. Also, problems in Europe do not seem to ease as global ratings agency Moody’s Investors Services has downgraded Portugal’s long-term bond rating to ‘Baa2’ to ‘Baa1’meaning that the country would need more aid.
In US economic news, factory orders rose 0.8% in May, followed a downwardly revised drop of 0.9% in April. Orders for nondurable goods, such as food, clothing, oil, and plastics, fell 0.2% in May as oil prices fell in the month under review.
The Dow slipped 12.90 points (0.10%) at 12,569.87. The S&P 500 shed 1.79 points (0.13%) at 1,337.88. On the other hand, the Nasdaq gained 9.74 points (0.35%) at 2,825.77.
Markets in Asia were mostly down in early trade on Wednesday as lingering debt problems in the Eurozone weighed on investors. Also, possibility of a rate hike in China led the Shanghai Composite lower. Stocks in Seoul were down on news that Hyundai Heavy Industries withdrew from submitting a bid for a controlling stake in chipmaker Hynix Semiconductor.
The Shanghai Composite declined 0.74%, the Hang Seng fell 0.49%, the Straits Times lost 0.08% and the Seoul Composite was down 0.09%. On the other hand, the KLSE Composite gained 0.08%, the Nikkei 225 rose 0.16% and the Taiwan Weighted climbed 0.59%.
Back home, the Reserve Bank of India (RBI) yesterday extended the 10% ceiling of bank investment in liquid schemes of mutual funds to include short-term debt funds. The bank investment in such debt schemes of mutual funds with weighted average maturity of portfolio of not more than one year, would be subjected to the cap, RBI said in a notification.
The central bank in its ‘Monetary Policy Statement for 2011-12’ had directed banks to cap their investments in the liquid schemes of mutual funds at 10% of their networth.