NMDC plans to set up unit in Karnataka

In order to set up a 5 million ton capacity steel plant in Bellary, National Mineral Development Corporation (NMDC), the country`s largest producer and exporter of iron ore, is seeking permission from the Karnataka government on the submitted application,

Govt. to unveil package for home loan borrowers

In a move to facilitate cheaper credit for borrowers seeking loans of up to Rs 2 million, the government said that public sector banks would soon unveil a package for the same.

Public sector banks will shortly announce a package for borrowers for home loans in two categories - for loans of up to Rs 0.5 million and Rs 0.5-2 million.

The government pointed out that there is a large unmet demand for housing in the country, especially for middle and low income groups.

The demand in residential segment has declined in the last six months on account of high interest rates on housing loans and steep rise in property prices during last two to three years.

The government highlighted the RBI`s decision to provide refinance facility of Rs 40 billion to National Housing Bank.

Apollo Tyres declares lockout at Kochi

Apollo Tyres has announced that the management has declared lock-out at company`s manufacturing facility (taken on lease from PTL Enterprises) at Kalamassery, Kochi.

The lock-out has taken effect from Dec. 06, 2008 on account of labour unrest in the factory.

The company`s main business is the manufacture and sale of automobiles tyres, tubes and flaps. Its product range includes truck and bus bias, light truck bias and radial, passenger car radial, farm bias and radial.

DoT allots 4.4 MHz of spectrum to Unitech

Unitech has announced that the Department of Telecommunications (DoT), ministry of communication & information technology, Government of India has issued the letter to the company`s telecom subsidiaries for allotment of 4.4 MHz of spectrum in 1800 MHz GSM band in respect of Haryana, Himachal Pradesh and Kolkata service areas.

With this, the company have been allotted initial spectrum in 16 service areas out of total 22 service areas.

Kalpataru Power bags contract worth Rs 2.4 bn

Gas Authority of India (GAIL) has awarded Kalpataru Power Transmission (KPTL)-Zangas consortium section-B of the 48`` diameter Vijaypur-Dadri high pressure gas pipeline project at an estimated contract value of Rs 2.4 billion.

KPTL had submitted its bid in consortium with JSC-Zangas for the GAIL project. The section consists of 165.5 km of 48`` pipeline with associated facilities.

J Kumar Infraprojects bags Rs 5.59 bn order

J Kumar Infraprojects, a civil engineering and infrastructure development company has received Rs 5.59 billion order to construct 16 skywalk`s from Mumbai Metropolitan Regulatory Development Authority (MMRDA) & Maharashtra State Road Development Corporation (MSRDC).

Following the above order, the order book position of the company, as on date, stands at about Rs 12.72 billion.

The company engages in projects on contract as well as turnkey basis including electrification work and undertakes piling of foundation work using hydraulic piling rigs for major projects awarded to other contractors.

Dr Reddy`s to set up CSR cells in East

Dr Reddy`s Foundation, the corporate social responsibility (CSR) arm of pharmaceutical major Dr Reddy`s Laboratories, was eyeing at establishing specialized centers in north-eastern states and West Bengal for enhancing its CSR initiatives, reports Business Standard.

Dr Reddy`s Foundation said that setting up development centers in north-eastern states and in West Bengal is among their initiatives, besides their usual programs that they follow.

Deccan Chronicle Holdings board to consider buy-back

Deccan Chronicle Holdings, engaged in printing and publishing newspaper and periodicals, will be held on Dec. 16, 2008 to consider the proposal to buy-back of its equity shares and the declaration of interim dividend for the financial year 2008-2009.

Khaitan Weaving board approves stock split

Khaitan Weaving Mills has announced that the board of directors at its meeting held on Dec.06, 2008, has approved the splitting of the share value from Rs 10 to Re 1 by alternation of clause - V of the memorandum of association.

DoT allots 4.4 MHz of spectrum to Idea Cellular

Idea Cellular has announced that WPC Wing of the Department of Telecommunications (DoT) has on Dec. 05, 2008 allotted 4.4 MHz Spectrum in 1800 MHz band in respect of Kolkata Metro service area.

Idea Cellular is part of the Aditya Birla group which holds a 98.3% share in the company. Kumar Mangalam Birla is the chairman and Sanjeev Aga is the managing director of the company.

Recently, the company tied up with Taiwan-based HTC Corp to offer two touch phone models in India targeted at the premium segment

India rolls out $4 billion stimulus, interest rate cut

The office of Prime Minister Manmohan Singh said in a statement that the funds would be spent before the end of the fiscal year in March and would go toward infrastructure projects, mortgage relief and export incentives.

The announcement of the stimulus spending came as India's central bank cut key interest rates Saturday by 1 percentage point.

The cut will go into effect Monday and brings the benchmark repurchase rate, at which the central bank makes short-term loans to commercial banks.

The repo rate will move to 6.5% from 7.5%, hitting its lowest level since June 2006 and down from an October high of 9%, according to the Associated Press.

The reverse repurchase rate -- the rate at which it borrows from commercial banks -- was also lowered from 6% to 5% to encourage banks to lend more to consumers.

The Reserve Bank of India also announced measures to ease credit to small businesses, exporters and the real-estate sector.

The AP reported quoted Reserve Bank Gov. D. Subbarao as saying the moves were designed to "arrest the downturn and revive the growth momentum."

A major business group welcomed the actions, according to the AP, but said the central bank could have taken additional steps such as lowering the amount of reserves that banks must keep on hand as a way to free up lending.

The measures are "a good start in the correct direction," the Federation of Indian Chambers of Commerce and Industry said in a statement.

Subbarao said inflation has been declining faster than expected, despite high food costs, due to falling commodities prices and waning domestic demand.

The government's decision late Friday to cut fuel costs should further ease consumer prices, he said. Gasoline prices were lowered by 5 rupees a liter to 45.62 rupees, and diesel prices by 2 rupees a liter to 32.86 rupees.

"Economic activity in India will recover sharply, but a period of painful adjustment is inevitable," Subbarao said.

He added that the economic impact of the Mumbai terror attacks is hard to estimate but he remains hopeful the nation will bounce back quickly.