Following are the important business news carried by leading financial dailies on Tuesday, Nov. 17, 2009.

Business Standard

Tata Steel to invest Rs 11 bn to up ore output

Tata Steel, the world`s sixth largest steel maker, is raising its annual iron ore production by 55% to 17 million tonnes in India over the next two years. The expansion is expected to cost about Rs 11 billion.

The move is aimed at insulating its steel plant at Jamshedpur in Jharkhand from fluctuating raw material prices. The increased ore output will be used to feed the Jamshedpur plant, which is raising its operational capacity to 10 million tonnes by 2011 from the current seven million tonnes.

DCM Shriram enters milk procurement business

Hariyali Kisaan Bazaar (HKB), the rural retail arm of DCM Shriram Consolidated (DSCL), has entered the milk procurement business in Uttar Pradesh and is looking to expand to Rajasthan next month. The milk is being supplied to dairy units and is being mainly used to produce milk powder.

The programme has been initiated under HKB`s farm output services. The company has started a pilot dairy operation in Hardoi and Lakhimpur Kheri districts of central UP, where it has four sugar mills. The company has also made arrangements with regional rural banks to facilitate farmers in getting finance for cattle purchase.

GE Capital provides Rs 13 bn loan to JLR

The move will shorten the 30-40 days it has to wait for between producing cars and delivering them.

GE Capital today signed an agreement with Jaguar Land Rover, the UK-based subsidiary of Tata Motors, to provide a working capital facility of up to ?170 million for a five-year term.

The move will boost working capital within the company by shortening the 30-40 days gap the company has to wait between producing cars and delivering them to over 90 countries.

Ruchi Soya amalgamates associate firm

Ruchi Soya Industries, the country`s largest edible oil producer, has amalgamated Mac Oil Palm, a promoter group company, with itself to expand its presence in palm oil plantation in India.

The amalgamation will allow Ruchi to access Mac Oil`s exclusive procurement rights of oil palm planted on around 8,300 hectares of land in Andhra Pradesh; the potential exists to increase the area to 20,000 ha. The company has also decided to pursue implementation of MOUs signed with various state governments for promotion of cultivation of oil palm plantation.

Tata Motors to expand Pantnagar plant

Tata Motors, which is producing the Nano car, apart from other commercial vehicles, at its Pantnagar plant in Uttarakhand, said on Monday it was planning to expand the manufacturing facility and called for strengthening rail, road and air connectivity in the region to boost production.

Company officials called on Chief Minister Ramesh Pokhriyal Nishank in Dehra Dun and held talks on the company`s expansion plans at the plant, an official statement said. The plant produces nearly 950 vehicles daily, including 150 Nano cars. The company is planning to raise the production to 500,000 vehicles a year from the Pantnagar plant, the statement added.

Economic Times

GAIL, RIL to swap gas for optimum use

GAIL and RIL are to enter into a swap arrangement to facilitate optimum use of available natural gas in the country.

An oil ministry statement on Monday said since gas from the latter`s Andhra offshore field cannot be used for making petrochemicals, the state utility will exchange suitable gas with the Mukesh Ambani-led firm`s petrohem units that have been allocated nearly 2 mcmd (million cubic metres per day) from Indi``s biggest gas field.

ArcelorMittal to study new plant in Brazil

ArcelorMittal is seriously considering a feasibility study for a new steel plant in Brazil as it sees strong prospects for demand there, a senior executive said on Monday. ``We`re particularly excited for BRIC countries,`` Michel Wurth, a member of the group management board, told a steel conference organized by Metal Bulletin. BRIC stands for the four emerging economic powers Brazil, Russia, India and China.

SAIL cuts prices again

The state-owned Steel Authority of India (SAIL) Monday said that it has reduced the price of its product used by the white goods and auto industry by Rs 500 per tonne.

``We have further cut flat steel price by Rs 500 a tonne because of softening global trend,`` SAIL chairman S.K. Roongta said, but asserted he didn`t see the price falling further.

SAIL recently brought down prices of its flat steel products by Rs 750 to Rs 1,500 a tonne.

SpiceJet-GoAir merger plan flies into air pocket

A possible merger between low-cost carriers SpiceJet and the Wadia Group-owned GoAir has hit a roadblock after the two sides failed to arrive at a consensus on valuation and branding related.

SpiceJet and GoAir have an agreement of exclusive negotiations till March 2010 to execute the deal. One of the key stumbling blocks was the amount of unsecured loans on GoAir`s balance sheet, said the first person on conditions of anonymity. The other executive said the two companies were close to signing a memorandum of understanding three weeks ago but could not agree on a share swap ratio to execute the transaction.

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