The state-run Kudremukh Iron Ore Company, a Rs 523-crore iron-ore export-oriented unit selected for a `strategic sale' by the government, will undergo capital restructuring before being offered to prospective investors. A scheme worked out by the union steel ministry attempts to convert part of the zero-debt company's Rs 635-crore equity capital into government loans. The resulting debt to equity ratio of 1:1 is expected to prove attractive for prospective strategic partners.

Tax department may challenge ITAT order: The income-tax department may appeal against an order passed by the Mumbai bench of the Income-Tax Appellate Tribunal (ITAT) in favour of Grasim Industries. The order, which allowed the company to claim deductions of over Rs 180 crore for assessment year 1993-94, said that a company need not have actually commenced production to claim depreciation. It was enough if it was merely ready to produce.

Sumitomo Bank is lead advisor to Pipavav project: Sumitomo Bank of Japan has been appointed as the lead financial adviser and arranger for the $700-million Gujarat Pipavav LNG project, a joint venture between the Gujarat Pipavav Port Limited and British Gas. With this, a big step forward has been taken for the 5.6-million tonne per annum (mtpa) LNG project. GPLNG is the largest of the six forthcoming LNG projects in India and among the largest worldwide.

`Zee-Star TV merger will make superb business logic': The merger of electronic media giants Zee Television and Star TV may be "thrust upon them by market forces in the next three to five years" despite absence of even a broad agreement on terms. According to Zee group's chief executive officer Vijay Jindal, the merger would make "superb business logic and with the thrust provided by market forces could be a reality in three to five years even though no terms have been negotiated."

CTV market records 50% growth: Colour televisions market has recorded a whopping 50 per cent growth in the first half of calender year 1998, according to results of a retail audit. According to estimates of market research agency -- ORG, television companies have sold over 1.3 million colour sets between January and June 1998 as against 0.89 million sold in the corresponding period lastyear.

NGEF announces fresh VRS: NGEF Ltd has announced a fresh voluntary retirement scheme (VRS) aimed at reducing its staff strength. Currently NGEF has around 3,600 employees at its two manufacturing facilities in Bangalore and Hubli. The present scheme, which has received an encouraging response, is likely to be taken up by around 300 employees, according to company officials.

Subhas Projects moves SC against L&T verdict: Subhas Projects & Marketing Ltd, which is executing the water systems contract for the Bakreswar power project, has moved the Supreme Court against a Calcutta high court order awarding rival bidder Larsen & Toubro Rs 1 crore compensation out of Subhas Projects' bills. On July 14 this year, a Calcutta high court division bench of then chief justice PS Misra and justice Barin Ghosh had handed down the award after L&T appealed justice SB Sinha's dismissal of its writ petition.

Hudco to float Rs 620-crore bonds: The Housing and Urban Development Corporation proposes to enter the market through taxable and tax-free bonds for mobilisation of funds amounting to Rs 620 crore during the current fiscal.

AK Singh becomes Nafed chairman: Ajit Kumar Singh has been unanimously elected as chairman of National Agricultural Cooperative Marketing Federation of India Ltd (Nafed).

IOC to increase Kandla-Bhatinda pipeline capacity: IOC plans to increase capacity of key sections in the Kandla-Bhatinda pipeline during the next two years. The total cost will work out to Rs 92 crore, of which the foreign exchange component will be Rs 46 crore. The 1,442 km long pipeline has a capacity of six million tonnes and IOC plans to increase this to 8.8 million tonnes for the Kandla-Kot (Rajasthan) section and to 8.5 million tonne for the Kot-Panipat (Punjab) stretch.