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Washington: The US Export-Import (Exim) Bank has sanctioned $917 million (nearly Rs4,300 crore) in loan guarantee - the largest such support to any Indian company - towards equipment for Anil Dhirubhai Ambani Group's Rs20,000 crore power project in Madhya Pradesh, India, reports PTI.
The sanction came through at a meeting Wednesday of the board of the Exim Bank, which at one point had reservations about the loan over environmental considerations.
The US Exim bank had on 24th June held back approval to the guarantees over concerns raised by green activists that carbon-dioxide emissions from the 4,000 MW coal-fired Ultra Mega Power Project (UMPP) at Sasan in Madhya Pradesh would hurt the environment.
However, it reversed the decision after assurances from the Anil Ambani group of developing green energy projects near the site of the coal-fired plant. Besides, the deal to source equipment for the project from the US was touted to save 1,000 jobs across 13 states in that country.
"The board of the Exim Bank of USA on 25th August approved project finance facilities of $917 million for 3,960 MW Sasan UMPP in India. The project with a capital outlay of $4.5 billion is being developed by Reliance Power Ltd (R-Power).
"This is the largest funding support by the Exim Bank to any Indian company," an Exim Bank statement said.
Reliance Power had sought the loan guarantee from US Exim Bank to support the sale and export by Wisconsin-based Bucyrus International of mining equipment.
The sanction for the project, whose financial closure is already over, will now go to the US Congress for approval.
Green groups had objected to the power plant in Sasan on the ground that it would emit too much carbon dioxide, harming the environment.
The Sasan project is one of India's UMPP designed to help the country to reach specific energy capacity goals by 2017.
"We are pleased that Reliance is making this commitment to renewable energy, which allows us to sustain US jobs and promote both conventional and renewable energy exports," Exim Bank president Fred Hochberg had said in a statement earlier.
Reliance MF launches first small cap fund; Kotak MF converts Kotak Global Emerging Market Fund into open ended scheme; ICICI Prudential MF declares dividend under two schemes; Tata MF declares dividend under Tata Equity P/E Fund; Quantum MF appoints SR Balasubramanian as director
Reliance MF launches first small cap fund
Reliance Mutual Fund has launched its first small cap fund, which will invest in small cap companies. The fund is an open-ended equity scheme. The new fund offer (NFO) opens on 26 August 2010 and will close on 9 September 2010. The scheme proposes to invest at least 65% of the corpus in equity and equity-related instruments of small cap companies, which may go upto 100% of the corpus. The minimum investment amount is Rs5,000 and in multiples of Re1 thereafter. Investors would have to bear 2% exit load for holding period less than or upto 12 months and 1% for holding period above 12 months and nil thereafter. The performance of the fund would be benchmarked against the BSE Small Cap Index. This fund will offer investors an auto switch facility from Reliance Liquid Fund (Treasury Plan) to Reliance Small Cap Fund during the NFO.
Kotak MF converts Kotak Global Emerging Market Fund into open ended scheme
Kotak Mutual Fund will convert its Kotak Global Emerging Market Fund, which is a close ended scheme, to an open ended scheme. The change will be effective from 28 September 2010. Investors, who do not agree with the conversion, may redeem or switch their units between the periods of 26 August 2010 to 27 September 2010 without paying any exit load. After being converted to an open ended scheme, an exit load of 1% will be applicable if units are redeemed within one year. The scheme will allocate 90% to 100% of assets in units of emerging markets equity mutual fund schemes.
ICICI Prudential MF declares dividend under two schemes
ICICI Prudential Mutual Fund has declared dividend under its schemes - ICICI Prudential Infrastructure Fund and ICICI Prudential Balanced Fund. The quantum of dividend decided for distribution for both scheme is 5%. The record date decided for distribution of dividend for the schemes is 27 August 2010. ICICI Prudential Infrastructure Fund is an open-ended equity fund and is benchmarked against S&P CNX Nifty. ICICI Prudential Balanced Fund is an open-ended balanced fund and is benchmarked against CRISIL Balanced Fund Index.
Tata MF declares dividend under Tata Equity P/E Fund
Tata Mutual Fund has declared dividend under the dividend option of Tata Equity P/E Dividend Trigger-A and Tata Equity P/E Dividend Trigger-B. The quantum of dividend is 15%. The record date for distribution of dividend is 27 August 2010. Tata Equity P/E Fund is an open ended equity fund. The investment objective of the scheme is to provide reasonable and regular income along with possible capital appreciation to its unit holders. The scheme is benchmarked against BSE Sensex.
Quantum MF appoints SR Balasubramanian as director
Quantum Mutual Fund has appointed SR Balasubramanian as a director of Quantum Asset Management Company Pvt Ltd. SR Balasubramanian has been previously associated with various banks in India and overseas like Barclays Bank, HDFC Bank, Citibank NA, Yes Bank, Lakshmi Vilas Bank in various capacities.