India Power Fund � a power sector venture capital fund to be promoted by Power Finance Corporation (PFC) � has remained a non-starter even after two years of its announcement. Meanwhile, a number of private equity funds are gearing up to grab a slice of the estimated $100-billion (Rs 4,50,000 crore) investment pie for the power sector in the Eleventh Five-Year Plan. Investments are required for generation of 68,000 megawatt additional power and expansion in the transmission and distribution segments.

In February 2004, the power ministry said India Power Fund would be formed under the aegis of PFC to meet the shortfall of equity needs for the power sector. PFC, with an initial commitment of Rs 200 crore, would promote and incorporate India Power Fund Asset Management Company Ltd to manage the fund. India Power Fund would pick up minor stakes between 5 and 10 per cent in each power projects.

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TALLAHASSEE � Florida lawmakers last week voted to give consumers more chances to save money when it comes to property insurance, but such freedoms come with a cost: more risk.

Following a bill signing that included Gov. Charlie Crist throwing blue Sharpie pens to supporters, homeowners will soon be given more choices and more responsibility for the choices they make.

Homeowners, for example, will now be allowed to choose higher deductibles on their property insurance policies. Higher deductibles would lower premiums by reducing the amount of property at risk for insurance companies.

Until now, deductibles were capped at 10 percent, a level that few homeowners chose. But raising a deductible will not translate into a dollar-for-dollar reduction in premiums. Homeowners could underestimate ability to pay.

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Ukesh Ambani�s Reliance Industries (RIL) is planning to enter the insurance brokerage and money transfer businesses, in addition to retail financing.

According to sources, these businesses will be part of RIL�s proposed non-banking finance company (NBFC), which is aimed at creating back-up support for the group�s ambitious retail foray. Sources said that the company is in talks with 3-4 institutions for its NBFC foray and is expected to roll out its new venture in three months.

It is learnt that RIL has hired former American Express country head, K L Muralidhara, to spearhead its new NBFC business. When contacted by ET, an RIL spokesperson declined to comment.

The company would piggyback on its retail infrastructure to provide financial services in urban and rural areas. While Reliance would use its malls and upcoming retail infrastructure in urban areas, it would bank on its rural business hubs, franchisees and other tie-ups to provide services in rural areas.

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India Infoline Ltd has announced that on January 25, 2007, Bank of Baroda announced the launch of its "Online Trading services" for its customers in Mumbai, as a step forward in its plan, to provide Comprehensive Suite of Products and Services under Wealth Management initiative. The Bank has entered into an alliance with the Company for providing Brokerage Platform, besides research and analysis services to the customers.

Christened as "Baroda e-trading", this offering will offer multiple options to the customers for trading in equity shares, online or off-line, on NSE or BSE, in cash segment as well in derivatives segments from the same screen. The customers shall also have the option of depositing cheques and the system will automatically update the broker ledger of the client and set limit for trading. The customers will also have the benefit of well-researched information about various corporates and also have access to live movements of prices in the stock exchanges.

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More and more banks are joining the fray for bulk deposits, with the result that interest rates are not coming off their peak levels. The need for the bulk deposits is felt by banks on the back of the recent CRR hike announced by RBI and call money rates tightening since mid-December.

The rate of interest on a 91-day bulk deposit ranges anywhere between 9.25% and 9.60% while that on a one-year deposit ranges between 9.25% and 9.40%. Delhi-based public sector units have been making the most of this situation by floating bids for bulk deposits.

Other than a couple of large private sector banks like ICICI Bank, a host of other large public sector players have joined the bandwagon. These include State Bank of India, Punjab National Bank, Union Bank of India, Canara Bank and Vijaya Bank.

These banks are currently offering up to 9% interest rates on short term deposits, whose duration would span the month of March. State Bank of India (SBI) is offering 8.25% interest on all deposits till March 31, 2007, irrespective of their size.

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Finance Minister P Chidambaram on Friday said headline inflation, which crossed 6 per cent today, was "indeed a matter of concern" and the government would take steps required to contain rising prices.

"Ultimately inflation is a monetary phenomenon and is influenced by supply side. Hence, the Ministry of Finance is in touch with both RBI and Ministry of Agriculture and Consumer Affairs. We will watch the situation carefully and take whatever steps required to be taken," he said.

The govenrment has found that items of daily use of the common man such as urad, tea, tomatos, coconut and arhar are causing concern, he said while reading out a statement on the sidelines of CII function.

The government also noted a rise in few manufactured items like steel products and edible oil.

Chidambaram said rise in WPI-based inflation to 6.12 per cent during the week ended January six was largely due to the "base effect".

The price index for all commodities for the week under consideration moved only from 208.1 points to 208.2, a movement of 0.1 point. However, in the corresponding week of the previous year the index declined by 0.9 points, he said.

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