1) India 01-02 budget may tax more services, 2) India OKs limited mobility phone, 3) UTI Global to top Indian private sector banks in equity, deposits, 4) Emirates National Oil may join Indian Oil's services arm, 5) Enron to split holding in India Dabhol Power under two firms and other stories. India 01-02 budget may tax more services
Indian Finance Minister Yashwant Sinha may aim for an additional Rs 30 billion revenue from tax on new services in the 2001-02 budget. "We have identified 40-odd new services, which can be taxed in the next budget," a revenue official said on Thursday, adding legal advice, private medical practice and leasing services feature in the new list. In 2000-01 (April-March), the government expects to raise Rs 22 billion as service tax.
India OKs limited mobility phone The Indian government on Thursday allowed basic (landline) telephone service providers to operate limited mobility telephones and announced a cut in license fee for cellular operators to provide them with a level playing field. License fee for cellular services has been slashed to 12% of the operators' gross revenue in metropolitan cities, 10% in mini-metros and 8% in other cities.

UTI Global to top Indian private sector banks The merger of UTI Bank and Global Trust Bank, announced late Wednesday, will lead to the creation of the largest private sector bank in India in terms of equity capital. The merged entity, UTI Global Bank, will also have the largest deposit base among private sector banks. But in terms of advances, net worth and number of branches, it will be behind the entity to be formed from the merger of ICICI Bank and Bank of Madura, announced in December.
Emirates National Oil may join Indian Oil's services arm Emirates National Oil Company may join in as an equity partner in ONGIO International, a technical services joint venture between state-owned Indian Oil Corp. Ltd. and Oil and Natural Gas Corp. Ltd., an IOC official said on Thursday. ONGIO was set up to provide technical consultancy in both crude oil exploration and refining in third countries. Enron to split holding in India Dabhol Power
The Enron Corporation of U.S. said on Thursday that it would not pick up any additional equity in India`s Dabhol Power Co. over the 65% stake agreed upon earlier. Enron will split its existing equity into two separate Enron-owned companies, one holding 50% of the DPC equity and the other 15%, a statement by DPC said. The process will facilitate the sale of Enron`s 15% equity in DPC.
Castrol UK, BP Amoco postpone open offer for India arm
Castrol UK and BP Amoco have postponed their open offer for acquiring 20% of Castrol India`s equity at Rs 311.91 per share, pending comments from the Securities and Exchange Board of India on the draft offer document, according to a notice to the Bombay Stock Exchange on Thursday. India`s IDBI to take 10% stake in Nepal Development Bank
The Industrial Development Bank of India is to take a 10% equity stake in the Nepal Development Bank, a private sector development bank. The stake is worth 10 million rupees. IDBI has also signed a financial and technical collaboration agreement with the NDB. By virtue of its equity holding, IDBI will be entitled to nominate one director on the Board of NDB.
IFCI may cut lending unless govt infuses funds New Delhi--Jan. 25— Term-lending institution Industrial Finance Corp. of India will have to scale down operations in the next 3-4 years if the federal government does not infuse fresh capital into the company, chairman and Managing Director P.V. Narasimham said. To improve its capital adequacy ratio, IFCI has sought a 4-billion-rupee capital infusion from the federal government. The Finance Ministry is considering the proposal.
India mobile COS` profits seen delayed by tariff war The mobile phone tariff war unleashed by the entry of government-owned Mahanagar Telephone Nigam Ltd. is likely to delay private sector cellular firms achieving a net profit by a minimum 12 months, analysts said on Thursday. However, these companies are already making operating profits and that is unlikely to change despite the tariff war.
MTNL`s NYSE listing may take another month
The Indian state-owned Mahanagar Telephone Nigam Ltd.`s much expected listing on the New York Stock Exchange may take another month, Communications Secretary Shyamal Ghosh said on Thursday. "The approval from the SEC may come anytime. MTNL, on its part, has fulfilled all the obligations," Ghosh told reporters.
Global Trust Bank sees easy migration in merger Global Trust Bank Chairman and Managing Director Ramesh Gelli on Thursday said that the perception that UTI Bank stood to gain more than GTB in their merger was not right. "It`s a merger of two equals," Gelli told. "Usually, there are lot of issues when it comes to acquisition or merger of a large and a small player. But, when it is a merger of equals, lot of issues will disappear. The migration will be all that easier," he said. Foreign investors find conditions in India good: FICCI
A study by Federation of Indian Chambers of Commerce and Industry has shown that 87% of foreign direct investors find growth conditions in India to be attractive compared to China, Latin America and CIS countries. The study reviewed the response of 400 foreign companies, including British Telecom, Hyundai Motor India Ltd., Pepsico India and Mitsui Corporation, FICCI President Chirayu R. Amin told reporters on Thursday.
Bureau Report