Bizbits

Sources said a decision was dependent on the stand to be taken by the two government nominees on the board, in view of the political overtones surrounding additional assistance to Essar Steel project. The new steel projects are seeking additional assistance to the tune of Rs 7,740 crore from financial institutions, of which IDBI8217;s Share amounts to Rs 2,128 crore.

ACC to sell 2 power plants to TEC

MUMBAI: Associated Cement Companies ACC, in a bid to garner fundsfollowing the failure of its plan to make a preferential allotment of Rs 100 crore of shares to the Tata group, has decided to sell two more of its captive power plants to the Tata Electric Companies TEC. The cement major is hoping to raise over Rs 200 crore in the process. The power plants on the block are the recently-commissioned ones at Kymore and Jamul with an aggregate generating capacity of 50 mw.

Senior ACC officials said that they have now ruled out the possibility of a direct funds infusion from the Tatas, after the financial institutions decided to block the move. quot;Since maintaining power plants is not ACC8217;s core business, selling them to a power company to raise funds is an obvious move to meet the company8217;s funds requirement of Rs 750 crore,quot; they added.The two captive power units, set up by TEC at Jamul and Kymore 8212; which house two of ACC8217;s most modern cement plants 8212; will be sold at the built-up cost. The sale is expected to fetch the company anywhere between Rs 200-250 crore.

Sugarmills mull imports to stay afloat

MUMBAI: Some sugar manufacturers are lobbying their industry body for the repeal of an informal agreement under which domestic mills cannot import sugar. Stung by cheaper imports and quot;inadequatequot; customs duty support from the government, some members of the Indian Sugar Mills Association have written to ISMA for permission to import sugar. Industry sources said that the mills feel they can recoup their losses partly if they trade with some imported sugar.

SBI chargesheets CFO in urea scam

MUMBAI: The State Bank of India has chargesheeted its former deputy managing director DMD and chief financial officer CFO Parag Bhattacharjee and initiated departmental proceedings against him for alleged negligence in the Rs 133 crore urea scam that rocked the political system in 1995-96. The departmental proceedings were initiated on the advice of chief vigilance commissoner CVC in the last week of January, days before Bhattacharjee stepped down as the bank8217;s CFO onJanuary 31. Consequently, the bank invoked section 193 of the SBI officers8217; service rules. This would mean that Bhattacharjee would be deemed to be in service even though he retired from the bank till such time as the case was resolved.