I ndustry body Confederation ofIndian Industry (CII) wouldpush for manufacturing-sectorpolicies in southern states that

simplify clearances and approval mech-anisms, encourage green manufactur-ing, fast-track infrastructure besidesenabling flexible labour rules withoutdiluted social security, according to S. Gopalakrishnan, chairman, CIISouthern Region.He said every additional one percent

growth in manufacturing creates 20-30million new jobs.Speaking to reporters on CII-SR’s

new initiatives, Gopalakrishnan said forthe current fiscal, the chamber’s themefor southern region would be‘Economic Wellbeing for All: AnAgenda for Business’.He cited figures that indicated the

four southern states’ real GDP to haverisen at 9.2 percent per annum during2005-09 outpacing national average of8.5 percent in the same period.He said infrastructure development

would be a focus area for CII this year,with plans to identify key infrastructureprojects in the region for fast-trackimplementation.CII would take up with the respective

state governments the need for a policyframework for speedy implementationof infrastructure projects, technologyupgradation for faster project comple-tion, setting up an effective dispute

settlement mechanism and provisionsfor contingency funding.In power sector, CII would work with

the state governments for reforms tocreate more scope for private-sector par-ticipation, especially in generation anddistribution, power purchases from cap-tive power plants and a policy to bench-mark tariff across the country for uniformity.

[ ]8 July 1, 2010

CII for manufacturing-sector policies

India’s first-ever 3 MW solar photo-voltaic power plant, erected by theKarnataka Power Corporation

Limited (KPCL), the state-owned pow-er generating company, was dedicated tothe nation at Yalesandra village in Kolardistrict on June 17. The plant, whichuses modular crystalline technology togenerate solar energy, has been set up ata cost of Rs. 595 million.This is the biggest solar power plant

in the country today. The previousclaimant to the honour was set up inWest Bengal, which had only a 1 MWcapacity.

Inaugurating the plant, Minister forNew and Renewable Energy, FarooqAbdullah, said, the government wasplanning to add 1,000 MW of solar ener-gy to the national grid in the next threeyears as part of the Jawaharlal NehruNational Solar Mission.“Karnataka is a pioneer in using solar

energy and the state should take steps toinstall solar-powered LED lamps forlighting the streets,” he said.Abdullah also suggested that the

Karnataka government install solar waterheaters in all hospitals, governmentoffices, hostels and other institutions to

reduce its dependency on conventionalenergy sources.The 3 MW solar photo voltaic plant

set up in Kolar district will provide ener-gy to 500 pumpsets of 10 HP each and

benefit about 1,000 farmers.The unique feature of the plant is that

the power would be available to farm-ers during the day for their agriculturaloperations. The plant has already gen-erated three million units in six monthsit has been in operation as against theannual expected generation of four million units.The KPCL has also set up similar 3

MW solar photo voltaic plants inBelgaum and Raichur districts. Whilethe plant in Belgaum is already opera-tional, the Raichur unit will be com-missioned next month. In the secondphase, the KPCL is planning to set up100 MW of solar energy plants as jointventures with the private sector.

Biggest solar power plant commissioned

RCOM merges tower biz with GTL Infra

Reliance Communications(RCOM) on June 27announced a deal that would

see its tower business combine withGTL Infrastructure to create what itclaimed would be the world’s largestindependent telecom tower companywith an enterprise value of Rs. 500 billion and 80,000 towers. TheGTL Infra-RCOM deal is one of thebiggest domestic M&A deals.The transaction will help RCOM

reduce debt by more than half, as theAnil Ambani-led company prepares toroll out high-speed wireless servicesknown as 3G.RCOM will demerge its tower arm,

Reliance Infratel, into GTLInfrastructure and receive stock andcash in return, the companies said inpress statements. RCOM sharehold-ers will receive shares of GTLInfrastructure, and the company willget money from the transaction, the

statements said. The exact amount ofmoney and the shares to be given byGTL will be determined later with thehelp of independent valuers and advi-sors. The transaction is expected to beclosed in six months. A banker in the know of the deal said

Ambani is likely get at least a 26 per-

cent stake in the combined entity whileManoj Tirodkar, the owner of GTLInfra, would get around 30-35 percent. “RCOM shareholders may get a 50

percent stake in the new tower com-pany being created by the transaction,”said Rahul Jain, telecom analyst withDolat Capital. “Reliance Infra is goingto contribute half of the new compa-ny’s tower assets.”RCOM, which has said it is planning

to induct a strategic partner, will see itsdebt immediately come down to Rs. 150 billion once the deal is done.“If RCOM then manages to sell a 26

percent stake to a strategic investor, itwill be a debt-free company,” Jain said,referring to RCOM board’s approvalon June 6 to sell a 26 percent stake to astrategic investor. After the deal,Reliance Infratel will retain only a partof the debt that raised for its optic fibrenetwork business, which is not part ofthis transaction.

India-led M&Astouch $40 billion inJanuary-June 2010

Takeovers by AbbotLaboratories and Bharti Airtelhelped mergers and acquisi-

tions in India quadruple in the firsthalf of this year from a year ago,strengthening views that corporatesare turning optimistic about earningprospects.Indian transactions accounted for a

sixth of the total Asian deals of $242.1billion from 5,078 deals, a rise of 21percent. Bharti’s acquisition of Zainassets in Africa for $10.7 billion topsthe Asian list.M&As in India touched $40 billion

in the first six months of the year,according to a Thomson ReutersM&A report. This is the best first halfsince 2007. “This calendar has seenoutbound M&As pick up substan-tially on the back of good economicgrowth and valuations,” said RajBalakrishnan, head of M&A atBankofAm Merrill Lynch. Sunil Mittal’s Bharti led the revival

of India Inc’s acquisition frenzy withthe purchase of Zain Africa inFebruary. Mukesh Ambani’s RelianceIndustries is actively pursuing invest-ments in the U.S. shale gas ventureswith the latest being the $1.3 billionpayment for a 45 percent stake inPioneer Natural Resources. Indiancompanies are also being bought withdrugmaker Abbot’s buy of PiramalHealthcare’s formulations businessfor $3.72 billion. The telecom sectortopped the league table with deals val-ued at $13.8 billion.The value of overseas acquisitions

by Indian companies, known as out-bound M&As, was nearly thrice thatof acquisitions of domestic firms or,inbound M&As. Abbott’s acquisition last month is

the highest inbound acquisition so farthis year and the highest inbound dealin the healthcare sector on record, saidthe Thomson Reuters report. It is alsothe third-largest inbound deal in Indiaon record.