Power NEWS (23-29 August, 2010)

- Sumit Kalra

DTC gets Cabinet nod

1. Income tax exemption limit to be raised from `1.6 lakh to `2.0 lakh.

2. Income of up to 2.0-5.0 lakh will face 10%.3. `5.0- `10.0 lakh will attract 20%.4. Income over `10.0 lakh will face tax at the

rate of 30%.

(http://economictimes.indiatimes.com/articleshow/6443147.cms)

Mahindra-SsangYong Deal1. M&M plans to bring Ssangyong vehicles to India

after dealSUV- Korando, Kyron and Actyon.

2. Mahindra & Mahindra to complete Ssangyong buy in 4 monthsAnalysts pegged that the takeover cost could be around $500 mn. Ssangyong has a debt of $640 mn. M&M had earlier said that it would acquire a debt-free company.

(http://economictimes.indiatimes.com/articleshow/6432929.cms)

Vedanta-Cairn BuyoutTransaction Highlights:

1. Vedanta Group to acquire 51% to 60% of Cairn India Limited (“Cairn India”) for an aggregate consideration of approximately US$ 8.5-9.6 billion in cash.

2. Post completion it is expected that Vedanta Resources PLC (“Vedanta”) will hold 31-40% of Cairn India directly and Sesa Goa Ltd (“Sesa Goa“) will hold 20%.

3. Shares acquired from Cairn Energy PLC (“Cairn Energy”) to be acquired at a price of `355 per share; Vedanta will also pay a non-compete fee of `50 per share.

(http://www.vedantaresources.com/uploads/vedrelease_final.pdf)

BlackBerry Ban

India may extend deadline on BlackBerry security row

1. India may extend an Aug. 31 deadline in its standoff with Research In Motion over access to Blackberry data.

2. BlackBerry security is based on a system where the customers create their own key and the company neither has a master key nor any "back door" to allow RIM or any third party to gain access to crucial corporate data.

(http://economictimes.indiatimes.com/articleshow/6446751.cms)

Rising PricesFood Inflation at 14.75% - 27 August,2010.

1. Pulses import bill may go up as rains damage Canada crop: Due to heavy crop damage in Canada, which is one of the largest exporters of pulses, prices may go up.

2. Annually, about 12-15% of the country’s total demand for pulses is met through imports. Canada is among the largest exporters of pulses to India, along with Australia, Myanmar and the US .

“India is the largest producer of pulses in the world, but is not self-sufficient”- Sharad Pawar(food and civil supplies minister).

(http://economictimes.indiatimes.com/articleshow/6290487.cms)

India largest recipient of World Bank loans in 2009-10

1. The World Bank, through its lending arms IBRD and IDA, committed USD 9.3 billion in financial assistance to India in the 2009-10 fiscal.

2. The International Bank for Reconstruction and Development (IBRD) committed USD 6.7 billion, or 15.1 per cent of its total lending in the fiscal, to India.

3. The International Development Association (IDA), which helps the world's poorest countries, committed 17.7 per cent of its total aid, amounting to USD 2.6 billion, to India in 2009-10.

(http://economictimes.indiatimes.com/news/economy/finance/India-largest-recipient-of-World-Bank-loans-in-2009-10/articleshow/6455478.cms)

Market Watch

Bharat Petroleum A 697.85 776.95 + 11.33

Videocon Industries A 243.20 260.90 + 7.28

Top Gainers (Pervious Week)

Top Losers (Pervious Week)

Lupin Ltd. A 1,855.25 372.50 -79.92

Jai Corp Ltd. A 292.30 258.20 -11.67

Company Group Previous Close (Rs) Current Price (Rs) % Change

BSE LIVE 17,998.41 -227.94 (-1.25%)

NSE LIVE 5,408.70 -69.20 (-1.26%)(http://money.rediff.com/)