RIL-BP $7.2 bn deal among largest FDIs in India

PTI

New Delhi: Reliance Industries' $7.2 billion mega deal with British major BP Plc is seen as the biggest the foreign direct investment into India so far.

Japanese pharma major Daiichi Sankyo's buyout of Ranbaxy Laboratories for $4.5 billion is the second biggest FDI.

Other proposal like South Korean Posco's USD 12 billion investment for a steel plant in Orissa though higher than RIL-BP deal in terms of value, is yet to take off. So is the case with ArcelorMittal's around USD 30 billion investment plans across India.

Another mega transaction worth USD 11 billion was between Vodafone and Hutchison-Essar. However, there was no direct participation of any domestic firm, as deal was between two foreign firms.

Unveiling one of the biggest transactions in the Indian energy space, Mukesh Ambani-led conglomerate today announced the sale of 30 per cent stake in its 23 blocks including the giant KG-D6 gas fields to UK's BP Plc for $7.2 billion.

"This is the single largest FDI in the history of India," RIL Chairman Mukesh Ambani said while announcing the deal in London.

Interestingly, Reliance Industries' failed attempt in 2010 to take control of petrochemicals major LyondellBasell, was valued at over USD 14 billion. If the transaction had materialised, it would have been the largest ever by an Indian entity.

Going by estimates, last year alone saw the announcement of more than 290 inbound transactions worth over USD 22 billion.

Among them were Vedanta Resources' planned USD 9.6 billion acquisition of a majority stake in Cairn India .

Abbott Laboratories' takeover of healthcare solutions business of Piramal Healthcare in a USD 3.7 billion deal and Japanese entity JFE Steel Corp's USD 1 billion investment in JSW Steel were among other big transactions.

The NTT DOCOMO-Tata Teleservices worth USD$2.70 billion also saw significant FDI inflows into India.

Among the top deals involving Indian entities are $10.7-billion Bharti-Zain transaction and Tata's USD 12 billion-buyout of Corus.

Other major transactions involving Indian entities are Hindalco's buyout of Novelis for $6 billion, ONGC -Imperial's USD 2.80 billion deal.

SBI plans to merge 5 subsidiaries in 12-18 months

NEW DELHI: State Bank of India proposes to merge its five remaining subsidiaries with itself over the next 12-18 months.

In its deposition before the Parliamentary Standing Committee on Finance, the country's largest lender said the consolidation exercise has been systemically planned as part of a logical step to bring in economies of scale, reduce administrative overheads, redeploy and channelise trained manpower to business development and, in the process, also reduce avoidable competition from different arms of the same group.

While the bank has already merged State Bank of Saurashtra and State Bank of Indore with itself, it would require a government go-ahead to merge the remaining five - State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Travancore and State Bank of Mysore.

SBI chairman O P Bhatt told the committee headed by former finance minister Yashwant Sinha that the merger of State Bank of Saurashtra with SBI "went as smooth as silk". As for State Bank of Indore's merger, an online poll of employees showed that over 90% were in favour of the merger, he said.

"A number of corporates are pushing growth opportunities abroad. All these require that SBI and a few other Indian banks grow in size and financial muscle to cater to the growing needs of such corporates, failing which such clientele and their business would be taken over by foreign banks," the government told the standing committee.

A merger of all associate banks has been in the works for several years but SBI is taking it one by one as it wants to build a consensus around it first. A major attraction for SBI subsidiary employees is the offer of getting a pension, in addition to provident fund benefits. SBI is the only public sector player in the country where employees get both the benefits. In addition, employees of the subsidiary banks are being given the same treatment that is available to SBI employees.

To make sure that the merger is not legally challenged, SBI has got the process legally vetted. SBI management is now contemplating getting a blanket approval from the government to merge all the banks and then decide the sequence. The merger will help SBI steal a march over its nearest rival ICICI Bank.

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Aarushi''s parents move High Court challenging CBI court order

Allahabad, Feb 21 (PTI) The parents of Aarushi Talwar today moved the Allahabad High Court challenging a CBI court order making them accused in the murder of their teenaged daughter and domestic help, Hemraj, three years ago.

The petition, filed by Rajesh and Nupur Talwar, has challenged the Ghaziabad court order of February 9 in which the couple has been made the accused on the basis of CBI''s closure report and also charged with engaging in criminal conspiracy and destruction of evidence.

According to the Talwars'' counsel Gopal Chaturvedi, the petitioners have submitted that the CBI court had passed its order "without taking into consideration the objections submitted by us".

The case is likely to come up for hearing on Wednesday, February 23.

Aarushi was found dead inside her Noida residence in May 2008 with her throat slit and the body of Hemraj was recovered later from the terrace.

The CBI, which was entrusted with the investigation in the case following an uproar over the alleged shoddy probe by Uttar Pradesh police, had recently submitted its closure report pointing fingers at the parents though it maintained there was no conclusive evidence.

However, the court decided to proceed with the trial against the couple observing that there was "enough evidence" against them.

On March 1, poll dates to be out for Bengal, TN & 3 others

NEW DELHI: The Election Commission is likely to announce on March 1 the schedule for elections in five states, setting the stage for a contest which is crucial for both Congress and Left.

Government sources said that Commission is considering to stagger polls in West Bengal over five phases. For Assam, a two-phase poll seems likely, while elections in Tamil Nadu may be a one-day affair. Details for Kerala and Puducherry have also been worked out, making a March 1 notification a distinct possibility.

The ensuing polls are the first time since 1977 when CPM runs a real risk of losing power in West Bengal. With the party on the backfoot also in Kerala, another Left-controlled state where elections are due, the Marxists face the bleak prospect of losing power simultaneously in two of their strongholds. Having already been dislodged from power at the Centre, the polls could really aggravate the power drought for the Marxists.

If Marxists have to contend with fear of losses, for Congress the cruciality of the forthcoming encounter lies in the expectations the party has from it. The party is looking at a 4:1 scoreline: something it hopes will help reverse the perception of decline and can enable it to assert vis-a-vis not just the rivals and partners, but also in relation to the grandees within the government who have refused to heed the "perform-or-perish" signals from the leadership.

In West Bengal, the Congress is confident of sweeping the polls with its alliance partner, Trinamool.

The leadership balked at a major surgery last month because it was wary of repercussions for the budget session.

Both the PM and Congress have since indicated that the central ministry and the party organisation will be recast after the budget session, and a favourable outcome may give them the space as well as the confidence to attempt something bolder this time.

The party is confident of prevailing in Kerala. The state shuffles between the Congress-led UDF and CPM-led LDF every five years. The results of the Lok Sabha polls as well as local bodies suggest that the pattern may hold this year as well. In Assam, the party is confident of Tarun Gogoi retaining chief minister's post. It is encouraged by the strong possibility that AGP and BJP will not be able to have an alliance. Jama'at-ul-Ulema's attack on Badruddin Ajmal whose AUDF poached Muslim votes in the last elections is another comforting development. As a matter of fact, it expects to improve its seats this time.

While the party is confident of its prospects in Puducherry, it realises that it has a tough task on its hand in Tamil Nadu because of the deadly blend of inflation and spectrum stench hurting its partner DMK. Congress feels that the DMK will put up a tough fight. The Dravidian party is laying great store by the goodwill that it thinks populist schemes have generaated. It is also credited with perfecting the art of converting poll-time favours to voters into votes for the party.

Congress managers, however, feel that the advantages can be offset because of the stink over spectrum scam and unease over inflation. It also has to contend with Jayalalithaa's succeess in swinging an alliance with actor Vijaykanth's DMDK. 'Captain' has emerged as a factor in TN politics and an alliance will prevent the split in the anti-DMK votes.

TOI