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The BSE Sensex is trading lower by 70 points and the NSE Nifty is trading lower by 25 points. The BSE Mid Cap index and the BSE Small Cap index are trading higher by 0.1% respectively. The rupee is trading at 67.18 to the US$.
According to a leading financial daily, Indian telecom companies are likely to shell out Rs 1 trillion to buy spectrum across bands at the upcoming auctions. As per the reports, the top three carriers - Bharti Airtel, Vodafone India and Idea Cellular are likely to account for 55-60% of the total spend.
Last month, the Union Cabinet had approved the sale of about 2,300 MHz of spectrum - the highest quantum of airwaves sold at one go at the auctions. Going by the reserve price, this has the potential to fetch the exchequer about Rs.5.5 trillion. The government had earned revenues of Rs.1.1 trillion from the auctions held last year.
The telecom companies are already facing increased network congestion in circles with high data consumption. Therefore, augmenting network capacity and spectrum holdings (Subscription Required) will be critical for maintaining their competitive position.
Moving on to news from oil & gas sector... Indian Oil Corporation (IOC) owned Gujarat refinery will supply Bharat Stage (BS)-IV compliant diesel from January 2017. The company will be reportedly spending Rs 18 billion towards revamping three diesel treating and hydro treating units at the refinery.
Of the total monthly petrol production of 1.60 lakh tonnes, the refinery is currently supplying about 150,000 to 155,000 tonnes of BS-IV compliant petrol. The BS-IV compliant fuels have low sulphur level at 50 ppm. The reduced sulphur content will greatly lower air pollution levels caused by auto emissions.
In another development, the company has rejected an offer to buy a stake in Nagarjuna Oil Refinery. IOC cited technical configuration and financial burden as a hurdle. More than six months back, the government had suggested IOC, BPCL and HPCL consider buying a stake in the Nagarjuna refinery project. The 6 million tonne refinery, spread over 2,100 acre and including a captive port and power plant, was originally scheduled for commissioning in April 2014 at a cost of Rs 115 billion.
IOC is currently trading up by 0.3% on the BSE.
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