Additional solicitor-general backs Chhabrias: After submitting a favourable opinion from solicitor-general Soli Sorabjee, the Chhabria camp has lined up another favourable private opinion from the country's additional solicitor-general, Altaf Ahmed, on the non-applicability of the takeover code during the group's "indirect" acquisition of shares in Herbertsons. The additional solicitor-general has given a clean chit to the Chhabrias stating in no unclear terms that the acquisition of shares ininvestment firms, which led to the indirect acquisition of shares in Herbertsons, "do not violate any provision of the 1994 regulations."

Ministry for Bharat Gold Mines closure: The ministry of steel and mines has recommended winding up of loss-making Bharat Gold Mines Ltd to the union cabinet. The ministry has also sought the cabinet's approval for allowing the company to offer a voluntary-retirement scheme package to the employees who opt for the same within three months from the date of offer. The package cost has been pegged around Rs 100 crore.

Central Excise Act to be amended: The government has decided to amend the Central Excise Act to plug the loophole exploited by subsidiaries of multinational companies for claiming excise exemption. The subsidiaries of multinational companies could soon to defined as "another person" independent of the parent company for the purpose of calculating excise liabilities of local operations.

Madras Refineries, IOC mull marketing tieup: MadrasRefineries has begun discussions with IOC on a formal marketing arrangement for products of its Chennai-based facility. Apart from Indian Oil, BPCL is also believed to have approached Madras Refineries in a similar marketing alliance. But the current thinking is that IOC is best equipped for the job as it has the evacuation infrastructure in place, especially when it involves lifting Madras Refineries' base-oil production of 2.5 lakh tonnes.

FIs may take a re-look at Modern bailout plan: Financial institutions are expected to review Modern group's bailout package following its failure to meet the deadline of December 31, 1998, for the sale of Modern Denim. The review is expected to be conducted at the next meeting of the heads of financial institutions. Institutional sources said that they will "reconsider" their decision to grant an in-principle approval to the group's financial restructuring proposal following its failure to hive-off Modern Denim.

Cut in Oman India Fertiliser project costsought: Rashtriya Chemicals & Fertilisers and Kribhco, domestic partners in the $1.12-billion Oman India Fertiliser project, are pressing for a reduction in the project cost by $100 million. The cut, if approved by all partners and lenders, is expected to negate the impact of a proposed increase in the project's equity component to reduce the debt portion, as had been suggested by the lenders' consortium.

Banks get set for euro deals: Domestic banks have lined up the first euro deals to be struck on Monday when international markets hold their first euro trading session. "We have worked out our first euro deal with a foreign bank to be struck on Monday, when the real market rates will begin to emerge," said a Bank of Baroda official. Other Indian banks are also eagerly waiting for the euro market to get active before striking deals on their existing positions in deutsche mark.

Banks, FIs slam brakes on national highways plan: Banks and financial institutions are not willing to fund thecentre's proposed 7,000-km national highway project on the grounds that it is unbankable. Institutions have rejected the traffic flow estimates for some other highway plans that have come up for due diligence.

Mukesh Ambani wants local strategy for chemical industry: Reliance Industries vice-chairman and managing director Mukesh Ambani said that there was a need to develop an India strategy for the chemical industry.