RIL gets ministry rap for oil retail delay

The petroleum ministry has rapped Reliance Industries for failing to meet its obligations of opening and operating 10 per cent of its petrol and diesel retail outlets in remote and low-service areas.

In its reply to a recent ministry communication to this effect, the company has said that this was because of the government control on prices of auto fuels resulting in losses from the overall fuel retailing business.

RIL, along with private sector companies, Shell and Essar, was given permission to retail automobile fuels in the country in 2002. RIL’s plan was to open almost 5,000 retail outlets across the country, but the company has so far opened around 1,800 retail outlets.

Read more in Business Standard

Vodafone confident of closing Indian deal

British mobile giant Vodafone Group Plc is confident it can close its recent deal to buy a controlling stake in India's Hutchison Essar in the coming weeks, Chief Executive Arun Sarin said on Friday.

Sarin told an investors presentation that the approval for Vodafone's $11.1 billion acquisition from India's Foreign Investment promotion Board (FIPB) remained a few weeks away.

Bharti overtakes Hutch in ARPU in Q4

NEW DELHI: India’s largest cellular operator, Bharti Airtel has overtaken Hutchison Essar (now Vodafone-Essar) with regard to its average revenue per user (ARPU). As per the latest data by the Cellular Operators Association of India, Bharti had an ARPU of Rs 343.17 per month for the quarter ended December 2006, ahead of Hutchison Essar’s Rs 340.15 per month.

HEL, India’s fourth largest telecom company, had the largest ARPUs amongst private operators until Q3 of the current fiscal. However, the company’s ARPU fell by over 9% in the quarter ended December 2006, from Rs 373.99 in September 2006 while Bharti witnessed only a 1.5% fall in its average revenues during the same period. Bharti had an ARPU of Rs 348.56 in September 2006.

More importantly, COAI’s data also reveals that ARPUs of Indian mobile companies, which are already the lowest in the world, is continuing to head further south, even as companies are registering a significant increase in their overall revenues.

Read more at Economic Times

Essar, Iran in talks for Azadegan oilfield

Essar Group is in talks with Iran to develop the giant Azadegan oilfield, where a deal with a Japanese firm ended last year, to ensure fuel for a planned refinery and steel plant in the Islamic nation, a company official said on Friday.

Azadegan is Iran's biggest oilfield with in-place reserves of 26 billion barrels. Japan's INPEX Holdings Inc. lost control of the field in 2006 but retains a 10 percent stake.

"December-end or early January we met Iranian authorities ... We are again meeting them later this month or early next month to take forward the issue," said Kharak Singh, head of exploration and production at Essar Oil Ltd.

Iran is drawing interest from Indian and Chinese firms, keen to help tap the world's second-largest reserves of oil and gas.

Read more at Financial Express

Significant concessions for Essar in deal with Vodafone

Shareholders' agreement announced, Ravi Ruia on Vodafone Plc board.

The Ruias of Essar have acquired significant concessions from global telecom major Vodafone, even as it announced the much-debated shareholders’ agreement in New Delhi today.

These include a favourable put option, a seat for Ravi Ruia on the Vodafone global board, veto rights, a comprehensive right of first refusal (ROFR), and the promise to use Essar’s proposed national and international long-distance infrastructure as well as assets of Essar Infrastructure Ltd, a specialised telecom tower company.

With an eye on becoming the leading mobile player in the country – it is currently India’s fourth-largest mobile service provider – Vodafone-Essar has drawn up a $5 billion investment plan for the next two and a half years. Read more at Business Standard

Vodafone, Essar sign deal

British giant Vodafone and Indian conglomerate Essar group on Thursday reached an agreement for jointly running India's fourth largest mobile firm - Hutch-Essar, which would be rechristened as Vodafone Essar.

The two companies said in a joint statement that they have agreed on partnership terms for Hutchison Essar, in which Vodafone is acquiring 67 per cent stake from Hong Kong's Hutchison Telecom International Ltd while Essar would continue to retain its 33 per cent stake.

"The partners have agreed that Hutchison Essar will be renamed Vodafone Essar and in due course the business will market its products and services under the Vodafone brand," it said.

Under the terms of the partnership, Vodafone will have operational control of Vodafone Essar and Essar will have rights consistent with its shareholding, including proportionate Board representation.

Ravi Ruia will be appointed as Chairman of Vodafone Essar and Arun Sarin will be Vice Chairman.

Read more at Financial Express

Vodafone, Essar near partnership agreement

As a prelude to a new partnership agreement, senior Vodafone and Essar executives have held joint meetings with officials in the government, including the finance ministry.

The Vodafone team was led by Paul Donovan, chief executive officer (emerging markets). From Essar, vice-chairman Ravi Ruia, accompanied by Prashant Ruia and Rewant Ruia, attended.

Sources said things were moving towards a positive outcome for the Essars and the two sides were expected to “shake hands shortly.” In fact, the terms of the partnership agreement, including a four-year put option, are learnt to have been finalised and an announcement is likely in a couple of days.

A source familiar with the Vodafone-Essar negotiations said, “Things have been almost resolved between Essar and Vodafone. The meetings with government officials are partly aimed at providing them the information they had sought, as also to allay any misgivings.”

All three parties involved – Vodafone, Essar and Hutchison Telecom, which recently sold its stake to Vodafone – appear keen to resolve the issue and avoid legal complications and investigations.

These moves come after weeks of shadow boxing, including a recent petition in the Delhi High Court. The court, on a petition filed by Telecom Watchdog, directed the Foreign Investment Promotion Board to complete its enquiry into the Hutch-Essar shareholding within two months.