Cabinet reshuffle likely this week

The Prime Minister has already had meetings with President Pratibha Patil and Congress supremo Sonia Gandhi on the subject. Prime Minister Dr. Manmohan Singh is shortly going to make changes to its council of ministers and the political atmosphere in New Delhi is heating up with a lot of conjecture. The Prime Minister has already had meetings with President Pratibha Patil and Congress supremo Sonia Gandhi on the subject. A formal announcement could come on January 19. If for some reason the same does not take place on January 19, it is expected by the end of this week. Changes in the Union Cabinet are likely to be restricted to filling up of three berths besides minor tinkering with four-five ministries. Two of the vacancies were caused by the controversial exits of A. Raja and Shashi Tharoor while the third one was left vacant after Prithviraj Chavan was named the Maharashtra Chief Minister. Kapil Sibal may be given the full charge of the Telecom Ministry and Law Minister Veerappa Moily could be named the new HRD Minister. The Congress heavyweights - Pranab Mukherjee, A.K. Antony, P. Chidambaram and S.M. Krishna, are likely to retain their respective posts. DMK and Trinamool Congress may get a berth each, according to reports. Meanwhile, Sonia Gandhi met the Prime Minister today amid speculation that a reshuffle of the Union Cabinet is on the cards later this week. Gandhi met Dr. Singh at his residence. She was accompanied by her political secretary Ahmed Patel. The meeting came a day after the Prime Minister met the President. Source: http://www.indiainfoline.com/Markets/News/Cabinet-reshuffle-likely-this-week-reports/5055259979

No merger of Ispat with JSW, Mittals to continue on board

The Mittal brothers, Promod and Vinod Mittal, the promoter directors of Ispat Industries would continue on the board even after majority interest in the company goes to JSW Steel.

"Both Promod and I would continue on the board as non-executive directors," Executive Vice-Chairman Vinod Mittal said here today on the sidelines of EGM to seek shareholders approval for allotment of 45 per cent stake in the company to JSW Steel.

The Mittals would not participate in the open offer as they are not keen to reduce their holding in the company, he said.

Ispat Executive Director Anil Sureka said out of the fresh equity of Rs 2,157 crore infusion, around Rs 600 crore would be utilised to reduce the existing debt of Rs 6,500 crore till September 2011 and rest Rs 5,900 crore would be refinanced.

"Another Rs 600 crore would be utilised to meet financing of the ongoing projects and the rest around Rs 950 crore would be meant for working capital," he said.

Ispat would get an annual interest outgo benefit of around Rs 300 crore with fresh capital infusion of the strategic partner.

Mittal said the board strength has gone up to 15 with induction of JSW Steel Vice-Chairman and Managing Director Sajjan Jindal and Joint Managing Director and CFO Seshagiri Rao and two other independent directors in the company.

"JSW has option to increase their strength on board and it can be recasted three months later," he said.

Mittals, will hold 21.07 per cent in the company post prefernce allotment to JSW Steel.

"Its a professional decision," Mittal told shareholders when asked why LN Mittal group was not inducted to keep the company within the Mittal family.

He also declined to speak on LN Mittal group''s role, if any, as a strategic partner in the company.

Meanwhile, Mittal said the ongoing projects will begin in the next six months and would be completed in the next 24 months.