The Union cabinet in its meeting on Tuesday will take up the proposal to allow foreign-direct investment in housing and urban infrastructure development sector. The proposal envisages 100 per cent direct investment with a three-year cap on repatriation of profits. Meanwhile, FDI approvals in the first quarter of 1999 have increased 25 per cent to $2.6 billion from $2 billion in the same period last year.

FIPB clears Rs 130cr proposals

The FIPB on Monday cleared 39 FDI proposals worth about Rs 130 crore. The board has cleared the proposal of Templeton Asset Management India to issue Rs 11-crore redeemable non-cumulative preference shares. It has also given the go-ahead to SHV Energy India to buy the stake of IMS Ship Management in Petrogas. The board has also allowed Siemens Singapore to increase its stake in Siemens Semiconductors.

Hoechst, Rhone-Poulenc merger terms

Hoechst and Rhone-Poulenc on Monday unveiled the terms of theirfull, accelerated merger into life sciences group Aventis. Under the terms, expected to be completed by November, Hoechst will hold 53 per cent of the new company and Rhone-Poulenc the balance. The exchange ratio for the offer has been set at three Rhone-Poulenc shares for every four held in Hoechst.

Zuari Industries net dips 70.5%

Fertilizer and cement maker Zuari Industries said its net profit in 1998-99 crashed by a whopping 70.5 per cent to Rs 15.8 crore from Rs 53.7 crore a year ago. Sales in 1998-99 were at Rs 851 crore, down 11.2 per cent from Rs 958 crore. Profits dipped despite other income rising to Rs 34.6 crore.

Ipca Labs net up to Rs 21.42 cr

Ipca Laboratories has registered a 10.13 per cent rise in net profits to Rs 21.42 crore for the year ended March 31, 1999 against Rs 19.45 crore in the previous year. Total income was up to Rs 335.57 crore (Rs 291.91 crore). Net profits come after an exceptional item of Rs 3.27 crore towards VRS payments.

Corporation Bank net up15%

Corporation Bank has recorded a net profit of Rs 192.03 crore in 1998-99, up 15 per cent from the previous year's Rs 166.87 crore. Income from operations was Rs 1,356.30 crore (Rs 1,027.53 crore). The board has proposed a dividend of 35 per cent.

Kirloskar Electric ED quits

Kirloskar Electric Company executive director P Balakrishnan has put in his papers. Balakrishnan, who was in charge of the company's overall business performance over the last two years, resigned over the bleeding bottomline of the company. During 1998-99, Kirloskar Electric posted a Rs 14.43-crore loss against a profit of Rs 7.22 crore last fiscal.

HC grants bail to Essar officials

The Gujarat HC on Monday granted bail to Essar Oil officials, who were arrested by the directorate of revenue intelligence on May 5 for alleged customs-duty evasion. The officials have been told to surrender their passports and pay the Rs 31.20 crore duty due by July 31.

Reliance revises polymer prices

RelianceIndustries on Monday revised upwards its prices for polyethylene (PE), polypropylene (PP) and poly vinyl chloride (PVC). PE prices have increased to Rs 41,200 per tonne, PP prices to Rs 34,700 per tonne and PVC rates have been revised to Rs 34,500 per tonne. Meanwhile, the Gujarat HC has dismissed two petitions challenging the validity of permissions granted to Reliance Petroleum to construct a pipeline from single buoy mooring to the RPL refinery.