Enron Mail

Subject:USIBC Daily News Update for October 11, 2000
Date:Wed, 11 Oct 2000 12:22:00 -0700 (PDT)

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+ The Reserve Bank of India (RBI) has forecasted slower-than-expected
economic growth and left lending rates unchanged in its half-yearly report.

+ International rating agency Standard & Poor's downgraded the rating outlook
on India's long-term foreign currency credit from "positive" to "stable".

+ Allstate International has decided to withdraw from its proposed life
insurance venture with Dabur India.

USIBC Daily News

October 11, 2000

October 11: The Indian government is expected to clear trading in sugar
futures by March 2001. Financial Express

October 11: India could emerge as a leading supplier of fine chemicals to the
global market with locally available raw material and production facilities
according to Mr. Derrick Samuel, Managing Director, Colgate Palmolive India.
He said this while inaugurating the expanded facility of Kumar Organic
Products in Bangalore. Kumar Organic Products is the sole supplier of
Triclosan, an anti-bacterial agent for Colgate's entire oral care product
range. The Hindu <http://www.hinduonline.com/<;


October 11: Star TV is targeting advertising sales revenue of Rs 550 crore
($119.3 million) and a subscription income of Rs 77 crore ($16.7 million) in
the financial year ending in June 2001. The Start TV network expects to earn
total revenues of Rs 700 crore ($152 million) in this year, almost double of
last year's revenues. The total investment in Star TV's India operations will
increase to $300 million by the end of 2001. Financial Express <

October 11: US-based TeleCruz Technologies announced a $10 million investment
in research and development related to software/hardware at its new facility
in Hyderabad. It also announced a strategic alliance with Videocon
International to provide technology and software for manufacturing Internet
TVs and set top boxes in India. The Economic Times

October 11: UT Starcom, a U.S.-based telecom company, has entered into an
agreement with Himachal Futuristic Communications Ltd. (HFCL) to manufacture
broadband access equipment in India. The joint venture will also market
broadband wireless equipment in India and abroad.?? The Economic Times


Economic/General News
October 11: The Reserve Bank of India (RBI) has forecasted
slower-than-expected economic growth and left lending rates unchanged in its
half-yearly report. The RBI governor said economic growth in the fiscal year
ending March 2001 was likely to be closer to 6% instead of earlier
projections of up to 7%. He said the slowdown was partly because of the
floods that devastated sections of India -- most recently in West Bengal.
Inflation also rose by more than 0.5%, a trend attributed to the substantial
rises in international oil prices in the past year. BBC World Service <

October 11: International rating agency Standard & Poor's downgraded its
outlook on India's long-term foreign currency credit rating from "positive"
to "stable". Standard & Poor had earlier upgraded India's rating to "stable"
in March 2000. The rating agency expressed concern over the impact of higher
oil prices on the government's fiscal deficit, given the system of
subsidizing certain petroleum products. In addition, Moody's may also review
their "positive" rating soon. The Economic Times <

October 11: India's tax receipts jumped 19.21 percent year-on-year in
April-September 2000 powered by a surge in direct tax collection, government
data showed on Wednesday.? Tax revenues, particularly direct taxes, have
risen largely because of improvement in the tax collection and administration
structure.? Reuters

October 11: The A.V. Birla group will invest in Dakshin Bharat Energy, an
LNG-cum-power project at Ennore in Tamil Nadu. Almost two years ago the A.V
Birla group formed a consortium along with CMS Energy, Unocal, Woodside
Development and Siemens for setting up a 2.5 million ton LNG based power
project and a 1,800 mw power project. The consortium also has an agreement
with Rasgas for supply of LNG for the project. Business Standard? <

Financial: Trade & Investment
October 11: India's marine exports grew 24% during the period from April to
July this year compared to 7% annual growth last year. This is mainly due to
increased demand from all major markets including Japan, Europe and US. The
Economic Times <http://www.economictimes.com/<;

October 11: Royal Phillips Electronics NV (Phillips) of Netherlands has
decided to increase its stake in Phillips India from 51% to 74% through an
open offer. The Times of India <http://www.timesofindia.com/<;

Information Technology
October 11: General Electric has acquired the software division of Citadel
Healthcare Informatics Ltd. that has developed a full-fledged enterprise
resource planning (ERP) for healthcare and medical insurance. The Economic
Times <http://www.economictimes.com/<;

Insurance and Finance
October 11: Allstate International has decided to withdraw from its proposed
life insurance venture with Dabur India - Dabur-Allstate Alliance India.
Allstate International withdrew due to a change in its international business
strategy. Business Standard <http://www.business-standard.com/<

October 11: Former Indian Prime Minister P.V.Narasimha Rao was convicted in
the Jharkhand Mukti Morcha (JMM) bribery case and will file his appeal in the
superior court. The special court is likely to announce its verdict today.
The Times Of India <http://www.timesofindia.com/<;


October 11: The second unit of the Suratgarh thermal power plant in Rajasthan
will be commissioned this week, making it the first super thermal power
station in the state. The final capacity of the plant is likely to be 1,000
mw after the installation of four units in two stages by the end of 2002. The
Hindu Online <http://www.hinduonline.com/<;

October 11:? PowerGen Plc, a major UK-based power generation corporation, has
acquired an additional 13.89% stake in Gujarat PowerGen Energy Corporation
(GPEC) for $51.5 million. This follows the decision of Siemens Project
Ventures to sell their stake in GPEC. PowerGen plans to double the capacity
at GPEC to 1,300 mw from the present 655 mw. Business Standard <

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