New Delhi: Strides Arcolab has received US-FDA approval for Vancomycin hydrochloride antibiotic capsules, used to treat bacterial infections. Shares of the company rose slightly over 6 per cent to close at Rs 631.90 following the announcement.

Vancomycin antibiotic capsules are used in the prophylaxis and treatment of infections caused by gram-positive bacteria. The drug has traditionally been reserved as a ‘last resort' remedy, used only after treatment with other antibiotics fails.

Mr Arun Kumar, Group CEO of Strides, in a statement, said: “Oral Vancomycin development is one among the many generics programmes being undertaken at the Strides group, with a special focus to develop niche and difficult to manufacture products.”

The product will be launched immediately through Alvogen, a US-based privately-owned pharmaceuticals company, on a profit share basis.

According to IMS health data, Vancomycin capsules had total US sales of $332 million for the 12 months ending February 2012, with no prior generic approvals.

Indian, Japanese firms to bid for civil work contracts on western rail freight corridor

New Delhi: Two consortiums comprising of Indian and Japanese firms have been selected in the pre qualification stage to bid for civil work contracts of the western stretch covering 640 kilometres of the Dedicated Freight Corridor.

The two consortiums which have been selected are Sojitz Corporation- L&T and Mitsui-IRCON- Leighton. These companies are vying to develop the stretch between Reqari in Haryana to Iqbalgarh in Gujarat. Land has already been acquired for the entire stretch.

The Dedicated Freight Corridor Corporation of India Ltd, a company promoted by the Indian Railways, had invited the bids last year but faced some problems due to mandatory requirement of lead partner to be a Japanese company. Although, a number of Indian companies had expressed interest but they were unable to tie-up with a suitable Japanese partner.

The western corridor covering a length of about 1500 kms from Dadri to Jawaharlal Nehru Port (Mumbai) is being funded by Japanese lender JICA. The Rs 77,000 crore dedicated freight corridor project aims to reduce the travel time by a third from the northern part of the country to Eastern and Western regions.

Bharti Airtel launches India's first 4G service

New Delhi: Bharti Airtel on Tuesday announced that it has launched fourth generation mobile services in Kolkata and claimed that this initiative had also resulted in India becoming one of the first countries in the world to commercially deploy this cutting-edge technology.

Airtel's 4G (TD-LTE) network was launched by telecom minister Kapil Sibal.

The launch will trigger a new phase of accelerated equitable and inclusive economic growth through proliferation of broadband services as envisioned by the draft National Telecom Policy, the company said.

"Today's launch is a major milestone for India and Airtel. Over the past 15 years Airtel has been at the forefront of India's telecom revolution and has set the technology trends in India by aligning with the global standards. We are delighted to now provide leadership in setting the technology standard for 4G services in India by introducing the cutting edge TD-LTE," Bharti Airtel chairman Sunil Mittal said..

We are confident that others will follow in this direction and participate in our pioneering effort of making TD-LTE the defacto 4G standard in India. I would like to thank all our stakeholders in helping us fulfill the Government's vision of Broadband on Demand, outlined by the Hon'ble Telecom Minister. I would also like to thank the Government of West Bengal for their support and cooperation that has made this launch possible and once again reiterate our commitment to participate in the development of the state," Mittal said.

"High speed wireless broadband has the potential to transform India, provide a robust platform for building the country's digital economy and truly empower people. With one of the largest pools of young population in the world, India will see massive growth in consumption of data and content over mobile devices and proliferation of mobile commerce. I look forward to Airtel playing a pivotal role in shaping this exciting future for India," Mittal added.

In 2010, Airtel had successfully bid for BWA license spectrum in Kolkata, Karnataka, Punjab and Maharashtra (excluding Mumbai) circles. It is currently working towards rolling out state-of-the-art networks in circles other than Kolkata.

Karnataka to host Global Investors Meet on June 7, 8

Bangalore: Karnataka will hold its flagship event “Global Investors Meet-2012”on June 7-8 as part of the Government's campaign to promote the state for investment.

Karnataka is set to attract investments to the tune of six lakh crore into the state during the GIM 2012.

The spinoff will include the creation of over 10 lakh jobs apart from achieving overall economic growth in the State.

GIM Expo planned at the BIEC also seeks to showcase the top 20 industry and service sectors over an area of 20,000 sq metres, according to a press statement.

Focus on sectors
Global Investors Meet 2012 will focus on sectors such as energy, urban infrastructure, transport infrastructure, engineering and aerospace, tourism, chemicals and petro chemicals, biotechnology, education, information technology, tourism, mines and minerals, textiles and apparels and agro food processing with a special focus on MSME segment.

As part of this, several senior executives from companies including Chettinad Cement Corporation, BMP Green Energy, Hinduja Foundries Kaizen Nano Labs and TVS Lucas had discussions with official from the Karnataka Government, according to the statement.

Officials from the government, including Mr K. Jyothiramalingam I.A.S., Principal Secretary, Commerce and Industries, and Mr Maheshwar Rao I.A.S., Commissioner, Industrial Development, Government of Karnataka, met the potential investors.

“In sectors like auto and auto components, IT & ITES, cement and energy, we are looking at more investments coming in from companies based in Tamil Nadu,” Mr Jyothiramalingam said, according to the statement.

On infrastructure
He said that tier 2 cities were well equipped to offer the best infrastructure and other requisite amenities at par with Bangalore.

He added that the Government is committed to providing a special package for investors looking at regions outside Bangalore.

Auto-cluster
According to the statement, Karnataka plans to develop an auto cluster in Hubli-Dharwad.

The Government is planning mega infrastructure projects such as special investment regions, integrated townships, focused industrial clusters, etc. in the State.

“In the pipeline is the pharma SEZ in Hassan and pharma park at Yadgir which will offer companies top of the line infrastructure.

“The State's focus is mainly on renewable energy, merchant power plants,” the statement said.

Pakistan to double Tea import from India by 2015

Kolkata: Close on the heels of Pakistan President Asif Ali Zardari's visit to India, a high-powered delegation from the Pakistan Tea Association (PTA) on Tuesday signed a memorandum with the Indian Tea Association (ITA) to import 50 million kg of tea by 2015. In 2011, Pakistan imported 24 million kg tea from India.

Pakistan is also open to the idea of promoting an India blend there with support from the Tea Board of India. The country is eager to import Indian packet teas and tea bags. Import duty on tea in Pakistan is 10% and its tea trade body has requested their government to cut it further.

A 13-member tea delegation led by PTA Chairman Mohammad Hanif Janoo met the ITA officials to discuss trade opportunities between the two countries. The tea industry representatives from the two countries met after a gap of five years. The delegation will also visit South India.

Addressing a joint press conference, Janoo said: "We have looked at various opportunities on increasing tea imports from India. Pakistan is a 220 million kg market and our consumption is going up at the rate of 2%. Pakistan is looking at importing quality tea from India."

Pakistan imports 135 million kg of tea from Kenya. It imported a record 24 million kg in 2011 from India against 19 million kg in 2010. It buys teas mostly from South India. Only about 4 million kg was exported from the tea gardens in north India. Pakistan also imports good volumes from Vietnam. Pakistan imports Indian tea at $3 per kg.

Kenya produced less tea this year due to a drought-like situation there. February production was down by 8 million kg and March production has declined by 3.5 million kg.

"Kenyan prices have also gone up due to less availability. Many nations depend on Kenya for their tea requirements. Next to Kenyan tea, comes Assam tea. Therefore, we will look at Assam tea also for meeting our internal demand," Janoo said.

ITA Chairman CS Bedi said: "We have received the MFN (most favoured nation) tag from Paksitan, which will spur movement of tea from India. We are hopeful that Indian tea exports to Pakistan will gradually increase."

TRF to partner Chinese co for ash handling projects

Kolkata: TRF Ltd has joined hands with a Chinese company Sinofinn New Energy Investment Co Ltd.

The Tata group engineering and bulk material handling equipment company said on Monday that it signed a “memorandum of association” for jointly executing ash handling projects in India.

Shanghai-based Sinofinn, which is already present in India through Sinofinn (India) Pvt Ltd, is a specialist in ash handling. Jamshedpur-headquartered TRF is looking for expansion opportunity in the newer fields of bulk material handling.

According to the company, the agreement “aims to fulfil the expansion plans of TRF by undertaking balance of plant projects in thermal power units”.

Under the agreement, Sinofinn will provide the complete system engineering and supply key components. TRF would be responsible for the detailed engineering, fabrication and supply other equipment.

TRF has recently acquired Hewitt Robin Fraser Ltd of UK.

FII norms for commexes relaxed

New Delhi: After much dithering, the government released the revised consolidated foreign direct investment (FDI) policy on Tuesday, relaxing norms of investment by foreign institutional investors (FIIs) in commodity exchanges. Now, FIIs will not require government approval to invest in these exchanges. The cap on FII investment, however, remains at 23 per cent.

The department of industrial policy and promotion (DIPP) under the commerce and industry ministry said government approval would nonetheless be required for the FDI component of investment up to 26 per cent in commodity exchanges.

“This change aligns the policy for foreign investment in commodity exchanges with that of other infrastructure companies in the securities markets, such as stock exchanges, depositories and clearing corporations,” DIPP said.

Experts feel the earlier provision of FIIs getting approval from the Foreign Investment Promotion Board (FIPB) was a redundant exercise.

Akash Gupt, executive director at PricewaterhouseCoopers, said the particular provision was creating problems for those who intended to go for a share sale. “There is no need for FIPB approval, as it goes through Sebi (the Securities and Exchange Board of India) anyway. This was creating an anomalous situation for anyone who was going for an initial public offering.”

On the other hand, the FDI policy for single-brand retail was left untouched and was incorporated into the revised consolidated FDI policy as earlier approved by the Cabinet. Even after severe pressure from several global brands such as IKEA, the government retained the clause of mandatory 30 per cent sourcing from Indian small and medium enterprises (SMEs) with a total investment in the plant and machinery of less than $1 million. The clause is mandatory for companies going beyond 51 per cent FDI in single-brand retail.

DIPP also excluded the import of second-hand machinery from conversion to equity, in the wake of several complaints from the capital goods sector, which had been suffering due to the import of cheaper second-hand machinery.

“With a view to incentivising machinery embodying state-of-the-art technology, compliant with international standards, in terms of being green, clean and energy efficient, second-hand machinery has now been excluded from the purview of this provision,” DIPP said.

Earlier, conversion to equity was permitted for import of even second-hand machinery.

“This is a good step because earlier there was no check on the quality of second-hand machinery being imported. This provision would now help put a check on the import of such cheap machinery,” said Krishan Malhotra, executive director, KPMG.

The policy would now be reviewed once a year, instead of every six months as earlier.

APTDC to invest Rs 300 cr in nine hotel projects

Hyderabad: The Andhra Pradesh Tourism Development Corporation is investing Rs 300 crore to implement nine hotel projects and develop new facilities, including three eco-tourism sites.

The State-owned corporation registered revenues of Rs 140 crore during 2011-12 up from Rs 115 crore in 2010-11, Mr Sandeep Kumar Sultania, Vice-Chairman and Managing Director, APTDC, said.

Interacting with Business Line, Mr Sandeep Sultania said the State attracted over 15.5 crore tourists last year, which is about 21 per cent of the total tourist traffic in the country.

“We have taken up several sites including Kuchipudi, Pembarthi and Srikalahasti for devlopment as rural tourism sites. These are getting popular. The Corporation has bagged a national award for one such site,” he said.

CII launches cluster development for Godrej Interio, vendors

Dehradun: The Confederation of Indian Industry (CII) has launched a cluster development programme for Godrej Interio and its six vendors in the industrial town of Bhagwanpur in Haridwar district of Uttarakhand. The aim of the programme is to increase business output and improve quality.

Besides giving a push to their business, the companies participating in the cluster development programme will also seek to introduce innovations, improve the inventory-turnover ratio, space utilisation and delivery schedules, as well as reduce energy consumption.

Apple Industries, B K Canworks, Start Seating System, Savitan Living Concepts, Securipax Packaging and Godrej and Boyce Interio Division (Bhagwanpur plant) are the six small companies supplying various components to Godrej Interio’s Bhagwanpur plant, which manufactures only chairs.

The plant, which produces 600,000 chairs a year, now intends to introduce desks for office use from next year, Anil S Mathur, chief operating officer of Godrej Interio, said. The plant was set up two years ago with an initial investment of Rs 20 crore.

Godrej Interio plans to increase its sales turnover to Rs 5,000 crore by 2016-17, based on 20-25 per cent year-on-year growth, and has pinned its hopes on the cluster development programme. The present turnover of the company is Rs 1,500 crore.

“We want to increase our business by three-to-four times and the cluster development is a very good opportunity for our company to increase our business and improve quality,” said Mathur.

“This is the first cluster development programme that CII has launched with the help of our consultants in Uttarakhand. And we are hopeful that this programme will also inspire other companies to replicate the model for future improvements,” said Sandip Jain, vice chairman of CII Uttarakhand.

So far, 208 clusters of SMEs have been formed by CII all over India, according to Harinder Jeet Singh, principal counsellor at the CII-Avantha Centre for Competitiveness. “Getting together, learning together and achieving together is our approach,” Singh said.

Essar commissions 6 mtpa pellet plant in Odisha

Mumbai: Essar Steel commissioned a six million tonnes per annum (mtpa) pellet-making facility at Paradip in Odisha on Monday.

This is the first phase of the 12 mtpa pellet plant to be commissioned by 2013.

The company is also setting up 12 mtpa iron ore beneficiation plant at Dabuna and a 253 km slurry pipeline connecting Dabuna and Paradip.

The beneficiation plant will enhance the iron content in the ore to 63 per cent from 54 per cent.

Essar Steel plans to invest Rs 4,200 crore to set up the integrated facility in Odisha.

The pellet plant in Paradip, along with the eight mtpa facility at Visakhapatnam, in Andhra Pradesh, will fully secure the iron ore requirements of the company's Hazira plant.

Mr Dilip Oommen, Managing Director and CEO, said the company will beneficiate the low-grade iron ore available at Dabuna and transport it through a slurry pipe to the pellet plant at Paradip.

The pellets will then be transported from the company's dedicated berth at Paradip port to Hazira.

“The entire process will bring down our production cost to $750 a tonne against the industry average of $1,000 to $1,350 a tonne,” he said.

Mr Shashi Ruia, Chairman, Essar Group, said Odisha is fast emerging as a favoured investment destination and Essar is committed to be part of this growth story.

Largest Producer
“This pellet plant in Odisha is crucial in our quest to achieve complete vertical integration,” he said.

Essar has emerged as the largest pellet producer in India with a capacity of 14 mtpa.

This will increase to 20 mtpa after completion of the second phase in Odisha. JSW Steel has 9.2 mtpa capacity followed by JSPL, at 4.5 mtpa.

Essar Steel requires about 15 mtpa pellets to produce 10 mtpa of steel at Hazira. It intends to either export or offload the surplus pellets when the entire capacity is commissioned.

The company has signed a 10-year supply contract for iron ore in Odisha and has a long-term contract with NMDC for its requirement at Visakhapatnam.

It has applied for allotment of iron ore mines in Odisha.

Steel Production
The company has set a production target of 7.4 mtpa for this fiscal against 4.35 mtpa achieved in FY'12.

“We intend to ramp up production at all our facilities and aim to produce more value-added products, such as outer panels for the auto sector and the white goods industry, besides targeting import substitution. The realisation from value-added products is higher by $70-80 a tonne,” said Mr Ruia.

The company's turnover will touch Rs 40,000 crore once it produces 10 mtpa of steel, said Mr Oommen. It has a debt of Rs 20,000 crore.