NTPC to initiate process of identifying consultant for 4,000 MW project in AP

NTPC is all set to initiate the process of identifying a consultant for the proposed 4,000 MW (4 x 1,000 MW) ultra mega thermal power project at Pudimadaka near Visakhapatnam in Andhra Pradesh (AP). In this regard, the company has invited consultancy packages for detailed pre-award and post-award engineering activities for the project, which recently received a boost with the Union Power Ministry backing it as a part of the ‘Power For All Scheme’ in Andhra Pradesh. Earlier, the company had inked a memorandum of understanding (MoU) with the Andhra Pradesh Government to set up the power plant at an estimated outlay of Rs 20,000 crore after securing fuel linkages. NTPC is the largest power generating company in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution.

Oil minister denies reports suggesting 'no subsidized LPG to rich'

Much against the speculation, Oil Minister denied of government contemplating any proposal for discontinuing the supply of subsidized cooking gas (LPG) to the rich. However, it unveiled that public sector oil marketing companies (OMCs) have given an option to existing LPG consumers to surrender their subsidy and switch to buying cooking gas at market price. This could be done by simply submitting a written request to the distributor or electronically via www. MyLPG. In. Earlier, reports suggested of LPG costing more to rich after Finance Minister Arun Jaitley recently indicated that government will now be looking to rationalize the LPG subsidy after having de-regulated petrol and diesel prices. He suggested that there was no need to give subsidy on LPG to people who were already well off. The Oil Minister, Pradhan on Monday in Lok Sabha pointed that only 12,471 out of about 15 crore LPG consumers have so far voluntarily given up their subsidies. As per existing policy, consumers are currently entitled to 12 14.2-kg cylinders or 34 5-kg bottles in a year at subsidized rates. However, any requirement above that has to be procured at market price, which stands at Rs 752 per 14.2-kg cylinder and Rs 351 per 5-kg bottle.  Meanwhile, a subsidized 14.2-kg cylinder is currently available at Rs 417 per bottle in Delhi, while the subsidized cooking gas is also available in 5-kg packs, costing Rs 155 per such cylinder in Delhi. Earlier in December, price of non-subsidized cooking gas (LPG) were slashed by a steep Rs 113 per cylinder and that of jet fuel (ATF) by 4.1% as international oil rates slumped to multi-year lows.

Transformers and Rectifiers enters into technology license agreement with Fuji

Transformers and Rectifiers (India) (TRIL), a manufacturer of wide range of transformers has entered into the technology license agreement with Fuji Electrical Company, (Fuji), Japan, a leading manufacturer of Power Transmission and Distribution equipment. Their strength lies in developing business in Energy Creation, Energy Management and Energy Conservation with Power Electronics as the core. As a part of this Technology License Agreement, Fuji grants the license to TRIL in India to use its technology and know-how; to design, manufacture, assemble, inspect and sale of Generator step up transformers with single phase or three phase, 420 kV Voltage and up to 1000 MVA bank capacity; Shunt reactors with three phase 420 kV voltage and up to 125 MV Ar capacity and Shunt reactor with single phase, 765 kV voltage and up to 133 MV Ar capacity. Under the technology license agreement valid for the period of 10 years, a dedicated team from TRIL will work with Fuji, to absorb and deploy this technology. This Technology transfer will provide an important milestone to TRIL which will help to enter into new horizons in manufacturing of high end reactors and transformers. This partnership with Fuji and the new technology infusion will reinforce the company’s product offerings in the area of Transmission and Distribution. Transformers and Rectifiers (India) is one of India’s leading transformer manufacturers. The company is the main supplier of transformers to the Sardar Sarovar hydel project, state electricity boards and major international clients.

India on track of achieving projected 5.5% economic growth rate in FY14-15: ADB

In an encouraging development for the country, Asian Development Bank (ADB) highlighted that India was well on track of achieving projected 5.5% economic growth rate in 2014-15 as declining oil prices presented the country with golden opportunity for undertaking many beneficial reforms. Falling global oil prices present a golden opportunity for importers like Indonesia and India to reform their costly fuel subsidy programmes. The Manila-based agency pointed that the target of 5.5% economic growth was well possible after the country registered growth of 5.7% in the first quarter and 5.3% in the second quarter. It emphasized that growth outlook remained steady despite slowed momentum in second half of 2014 and also there were chances of India achieving 6.3% next year, provided Narendra Modi’s government continues with its reform drive. Further, the agency acknowledged the efforts taken by the Indian government to tackle contentious reforms by eliminating diesel subsidies, but at the same time urged them to extend its efforts to reach the forecast of 6.3% GDP growth in FY2015. However, the agency in its report titled ‘Cheap Oil Can Benefit Asia’ lowered the GDP growth projection for Asia pacific region to 6.1% in 2014, from 6.2% earlier, and to 6.2% in 2015, from 6.4% earlier. The ADB also slashed its 2014 and 2015 growth forecasts for China to 7.4% and 7.2%, respectively, from the 7.5% and 7.4% estimates made in September, due to falling property prices and the spillover effects on the construction sector.

J&K Bank trades in fine fettle in early deals on BSE

The Jammu & Kashmir Bank (J&K Bank) is currently trading at Rs. 151.50, up by 6.35 points or 4.37 % from its previous closing of Rs. 145.15 on the BSE. The scrip opened at Rs. 149.00 and has touched a high and low of Rs. 152.40 and Rs. 148.05 respectively. So far 70503 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 199.50 on 16-May-2014 and a 52 week low of Rs. 124.00 on 16-Oct-2014. Last one week high and low of the scrip stood at Rs. 150.00 and Rs. 141.00 respectively. The current market cap of the company is Rs. 7346.81 crore. The promoters holding in the company stood at 53.17 % while Institutions and Non-Institutions held 32.95 % and 13.88 % respectively. Credit rating agency, CARE has downgrade rating of Jammu & Kashmir Bank’s Lower Tier II Bonds worth Rs 600 crore to ‘AA-’ from ‘AA’. The revision in the rating takes into account the increase in Non Performing Assets (NPAs) during H1FY15. Jammu & Kashmir Bank is the only state government owned bank in the country with the Government of J&K (GoJK) holding around 53% shareholding in the bank. JKB holds a monopolistic position in the state of J&K constituting majority of the credit and deposits in the state.

CARE downgrades rating of Jammu & Kashmir Bank’s Lower Tier II Bonds

Credit rating agency, CARE has downgrade rating of Jammu & Kashmir Bank’s Lower Tier II Bonds worth Rs 600 crore to ‘AA-’ from ‘AA’. The revision in the rating takes into account the increase in Non Performing Assets (NPAs) during H1FY15. Jammu & Kashmir Bank is the only state government owned bank in the country with the Government of J&K (GoJK) holding around 53% shareholding in the bank. JKB holds a monopolistic position in the state of J&K constituting majority of the credit and deposits in the state.

Bank shares jump after Fed meet

Banking shares are in demand early morning, after the Federal Reserve in its meet yesterday said that it will not raised interest rate, following which the market are expecting fresh buying by the FIIs.

Yes Bank is the top gainer in the banking space, the stock has soared 3.4 per cent at Rs. 709. Punjab National Bank has surged 3 per cent at Rs. 223.

SBI and Canara Bank have jumped over 2.5 per cent each at Rs. 310 and Rs. 418, respectively.

ICICI Bank has rallied 2.4 per cent at Rs. 340. Bank of India and Federal Bank spurted over 2 per cent each at Rs. 289 and Rs. 141, respectively.

Bank of Baroda and Axis Bank climbed almost 2 per cent each at Rs. 1,027 and Rs. 483, respectively.

Kotak Bank and IndusInd Bank have also advanced 1.4 per cent each at Rs. 1,262 and Rs. 770, respectively.

Top economic news of the day - December 18, 2014

The Cabinet approved the Constitution Amendment Bill on Goods and Services Tax (GST), clearing the way for its introduction in ongoing session of Parliament to bring about long-pending indirect tax reforms. 
 
A dozen American and European business organisations have asked India to remove trade and investment barriers, saying they are preventing overseas firms from contributing fully to the country's economic growth. 
 
The Lok Sabha passed the Companies Act (Amendment) Bill, 2014, which seeks to make 14 amendments, including those pertaining to related party transactions and punishment for illegal money pooling activities. 

Tata Motors jumps in early deals

Tata Motors started the day on a firm note this morning - with a gain of a per cent at Rs. 480, on media reports that company is in process of developing vehicles for the defence sector, which are capable of carrying weapons.

Soon, the stock extended gains and jumped to a high of Rs 490. Currently, Tata Motors is up 2.4 per cent at Rs. 487.

So far 28,000 shares have changed hands at the counter in early trade, as against the two-week daily average volume of 375,000 shares.

Meanwhile, the BSE Sensex has soared 334 points at 27,044.

Sensex surges 250 points...Nifty above 8,100 levels

At 9:20AM, the S&P BSE Sensex is trading at 26,988 up 315 points, while NSE Nifty is trading at 8,121 up 91 points.

The BSE Mid-cap Index and BSE Small-cap Index was trading up at 2%.

Auto, Consumer Durables, Power, banking, Capital goods, Oil and gas Healthcare metal, realty  are the gainers, while FMCG indices is only the loser.

GAIL, BHEL, COALINDIA,SUNPHARMA,TATASTEEL, Reliance, Hindalco are among the gainers, whereas HDFC Bank, Infosys, Axis Bank, HUL are losing sheen on BSE.

Asian markets are in the green with Japan's Nikkei 225 and Hong Kong's Hang Seng index gaining around half a percent. China's Shanghai index is marginally up. US consumer prices recorded their biggest drop in nearly six years in November.The Dow rose 1.69%, the S&P 500 jumped 2.04% and Nasdaq rose 2.12%.

Russia's surprise interestrate increase failed to stop the plummeting rouble. Another tool available to repair economic havoc caused by sanctions and falling oil prices: selling gold, says a report. Russia holds about 1,169.5 metric tonnes of the precious metal, the central bank said last month. That's about 10 per centof its foreign reserves, according to the London-based World Gold Council.

Former Tamil Nadu Chief Minister Jayalalithaa may convey to the Supreme Court that  she would not delay her criminal appeal before the Karnataka High Court, challenging the four-year imprisonment in a disproportionate assets case, according to reports.

Securities and Exchange Board of India is probing several small companies listed on stock exchanges for their alleged role in enabling conversion of unaccounted cash into legitimate money, report says.

Mahindra Partners is in talks to acquire online portal BabyOye, according to reports.