Thursday, July 20, 2000
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Executive briefing 

 
Enron seeks FIPB nod to pick stake in MEC
Enron is investing $60 million (over Rs 265 crore) as equity in Maharashtra Energy Company, which is setting up low and medium pressure natural gas pipeline distribution systems. Enron will initially control the entire equity holding of Maharashtra Energy (MEC) through affiliate companies but plans to divest a proportion of its stake to prospective Indian partners at a later stage. The company is awaiting clearance from the Foreign Investment Promotion Board to its proposal for investment in MEC.

SS ministers tender resignation
The Vajpayee-led NDA government at the Centre was put in a piquant situation on Wednesday when three Shiv Sena ministers--Manohar Joshi, Suresh Prabhu and Bala Saheb Vikhe Patil--resigned from the Union cabinet to put pressure on the Prime Minister on the issue of arrest threat to their leader Bal Thackeray by the NCP-Congress government in Maharashtra.

Interest cost of 350 firms up
Interest expenses accounted for more than 5 per cent of net sales of 350 big companies (sales above Rs 100 crore) in 1999-2000. The aggregate interest cost of these companies was Rs 12,986 crore, a 13.2 per cent increase over the 1998-99 level of Rs 11,468 crore.

Videocon recast
Videocon will soon restructure its operations into eight individual business units, each operating as an independent profit centre in line with the recommendations of management consultant Mckinsey. The Rs 32,000 crore company had taken this decision in an effort to prune costs and streamline operations and hopes to have the new organisational structure in place soon.

RIL to set up IT campus
Reliance Industries has proposed to set up a world-class Indian Institute of Information Technology at a cost of Rs 75 to 100 crore on a 50-acre campus on the Gandhinagar-Ahmedabad highway. The 2000-seat residential institute is equipped with a state-of-the-art technology-enabling centre and software development laboratories housing for staff, hostels and playgrounds.

Dena Bank VRS scheme
The state-owned Dena Bank has submitted a voluntary retirement scheme to prune its excessive workforce to the ministry of finance for clearance. Dena Bank is awaiting clearance to cut its surplus work force by at least 1,100 employees.

ABN Amro Bank net up 57%
The Indian operations of ABN Amro bank have clocked an operating profit of Rs 229 crore for the fiscal year 1999-2000 thereby recording a significant 57 per cent jump over the operating profit of the previous fiscal. ABN Amro Bank has also registered an impressive 89 per cent increase in its balance sheet size.

State power tariffs
The Centre has asked the state governments to dispense with authority of fixing power tariffs paving the way for independent and non-interfering functioning of State Electricity Regulatory Commissions.

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