IDBI executive director PV Narasimham said the companies, belong to five areas -- fertilisers, cement, sugar, metals and textiles -- would get financial assistance for energy efficiency and environmental improvement projects. IDBI has already sanctioned about $146 million worth of proposals from the firms. The bank has so far identified about 45 companies which need upgradation in cement and sugar sectors, he said. The bank is also in touch with World Bank to augment funds, he said.

Narasimham was addressing a seminar on `Energy efficiency and environmental management in the Indian cement industry', jointly organised by IDBI and ADB here on Saturday. The seminar took note of the cement industry report presented by Energy Resources International, a US-based consultancy agencyappointed by IDBI for the purpose.

Narasimham said cement industry would be benefited by taking adequate measures to reduce energy consumption and pollution in selected sectors.

FIs forced to favour hostile takeovers

Takeover bids are governed by the offer price and low holdings of promoters, IDBI executive director PV Narasimham said. Hence, financial institutions are left with no option but to adhere to changes on the economic front and even favour hostile takeovers, he added.

Institutions also have to keep the small investors' interests in mind the IDBI executive director said. Despite having long-term investment perspectives, institutions can not continue to hold a stake in companies run by weak managements, Narasimham said.

To protect their interests, institutions are forced to support aggressive managements rather than good ones. Without referring to any company or management Narsimham said that besides maintaining a good performance, managements of companies must also be competitive intaking on global players.

Today, corporate India is looking at management and ownership as one, but factually they are different. "Institutions are not interested in the ownership or control of a company, but concerned about the management, he said."

With the implementation of economic reforms, a new system is taking shape and takeovers are a reality.

On IDBI's future plans, Narsimham said infrastructure would play a dominant part in its investment portfolio. Last year, infrastructure accounted for about 36 per cent of total investments, he said.

IDBI is looking at airport projects apart from road projects, power projects and minor ports. To fund these new thrust areas the bank plans to issue Rs 6000 crore worth retail bonds and fixed deposits during 1998-99, he added.