PRESS DIGEST - Indian Business News - April 23

MUMBAI, April 23 (Reuters) - Indian newspapers carried the following stories in their print or Web editions on Thursday. Reuters has not verified these stories and does not vouch for their accuracy.

ECONOMIC TIMES (www.economictimes.com)

* India's top tobacco firm, ITC Ltd (ITC.BO), will remove financial support to its food division unless it turns profitable in a specified period. ITC Foods is moving out of low-margin products to focus on building a more profitable portfolio.

* Indian Hotels Company (IHTL.BO) is in talks to buy Mumbai's Sea Rock hotel in a deal estimated at 6.5-7 billion rupees through one of its associate companies. The transaction will be funded through debt and internal accruals.

* State-run Indian Oil Corp (IOC.BO) could report its first-ever annual loss in its 50-year history as a result of selling fuels below cost when global oil prices hit a record high. It could report a loss of 2.33 billion rupees for the year to March 2009, according the information provided by the company to its board and approved by directors last month.

DAILY NEWS & ANALYSIS (www.dnaindia.com)

* State-run gas transmission firm GAIL (India) Ltd (GAIL.BO) plans to lay a 1,100 kilometre pipeline, primarily to transport gas from Reliance Industries' (RELI.BO) D6 block off the east coast to industries in the central and northern India.

BUSINESS STANDARD (www.business-standard.com)

* Auto parts maker Amtek Auto (AMTK.BO) is in advanced talks to buy OCL Iron and Steel Ltd (OCLI.BO). The deal could value OCL at about 3.5 billion rupees.

* Larsen & Toubro (LART.BO) will sign co-operation agreements with two of the largest vendors of reactors, General Electric Hitachi and Areva (CEPFi.PA), in 3-4 weeks as it prepares for its entry into nuclear power plant construction business.

($1= 50.33 rupees)

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