+ The recent hike in oil prices pushed inflation up to 7.56% in the week 
ending September 30.
+ Hyundai Motors India plans to invest an additional $350 million over 3 
years to enhance its existing production capacity and launch new models.
+ The Ministry of Power opposed Enron India's proposal for trading in surplus 
power.

 

USIBC Daily News
October 16, 2000

Agro/Patents/Pharma
October 16: U.S.-based Rice Tec Inc withdrew 4 out of 20 claims from its 1997 
patent on basmati rice. The Hindustan Times (Print edition only)

October 16: The central government sanctioned a $77.7 million relief package 
for farmers of the north Indian state of Punjab. The Food Corporation of 
India had earlier decided to suspend procurement of paddy as it found the 
crop was sub-standard. The Times of India <
http://www.timesofindia.com/today/16home3.htm>
?<http://www.hindustantimes.com/>
Broadcasting/Entertainment
October 16: The Indian government announced that private agencies would start 
FM radio broadcast on schedule in four major cities. The Times of India <
http://www.timesofindia.com/today/16busi13.htm>

Communications
October 16: Usha Telecom Ltd has decided to pay its entire outstanding 
cellular-license fees of $70.2 million to the Department of 
Telecommunications (DoT). This follows Usha Telecom's bid to sell its 
cellular licenses. The Times of India <
http://www.timesofindia.com/today/16busi2.htm>

October 16: Southern Railways has completed an optic fiber cable network in 
Tamil Nadu.? The Financial Express (Print edition only)

Economic/General News
October 16: The Associated Chambers of Commerce and Industry (Assocham) 
stated that the slowdown in industrial growth (down to 5.3% during 
April-August 2000) is expected to continue for the next 6 months. The 
Financial Express <
http://www.financialexpress.com/fe/daily/20001016/fex16035.html>

October 16: The recent hike in oil prices pushed inflation up to 7.56% in the 
week ending September 30, compared to 6.06% in the previous week. This is the 
first time inflation has risen beyond 7% since the introduction of a new 
index in April 2000. Business Standard <
http://www.business-standard.com/today/economy7.asp?Menu=3>

Energy
October 16: The National Oil Company of Oman is likely to purchase a 26% 
equity stake in Bina Refinery of Bharat Petroleum. The Economic Times (Print 
edition only)

Financial: Trade & Investment
October 16: CVD International, a U.S.-based entertainment hardware/software 
development company, is likely to purchase 20% of Hyderabad-based Prathina 
Video Private Ltd. The Financial Express (Print edition only)

October 16: Hyundai Motors India has decided to invest an additional $350 
million over 3 years to enhance its existing production capacity and launch 
new models. The Financial Express <
http://www.financialexpress.com/fe/daily/20001016/fco16031.html>

Information Technology
October 16: Cheecoo Networks announced its partnership with Yahoo-India. 
Cheecoo Networks has a unique navigation, notification and communication 
console. Cheecoo Networks will make Yahoo's popular services available to the 
Internet community through their desktop application. The Financial Express 
(Print edition only)

Insurance and Finance
October 16: The government finalized a cabinet note to amend the Banking and 
Acquisition Act 1969. This will allow the government to reduce its ownership 
percentage in nationalized banks to 67%. The Financial Express (Print edition 
only)

Political/International
October 16: The Ministry of External Affairs confirmed that it received 
requests from both Israel and the Palestinian National Authority (PNA) for 
intervening in the West Asia peace process. However, the Indian government 
offered only humanitarian aid and a general condemnation of the violence. The 
Times of India (Print edition only)

Sanctions

Transportation/Infrastructure
October 16: The Ministry of Power opposed Enron India's proposal for trading 
in surplus power. Enron plans to set up a wholly owned subsidiary and invest 
$50-100 million to market power; including purchase of power from private 
producers, transmission and distribution companies and state electricity 
boards. The Foreign Investment Promotion Board (FIPB) has already referred 
Enron's proposal to the Group of Ministers on foreign direct investment and 
believes that power trading may be useful in reducing power losses. The 
Economic Times (Print edition only)

October 16: India requires an investment of $65 billion to meet its urban 
infrastructure needs, according to a paper prepared by the Confederation of 
Indian Industry (CII). The Times of India ? <
http://www.timesofindia.com/today/16busi23.htm>

October 16: Indian financial institutions led by Industrial Development Bank 
of India (IDBI) disbursed over $173 million to PPN, a 330 mw power project 
based in Tamil Nadu. PPN will receive $73.6 million in rupee-denominated term 
loans and a foreign currency loan of $93.7 million. The Financial Express <
http://www.financialexpress.com/fe/daily/20001016/fex16045.html>



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