Tata Steel kicks off its plan for an expansion of capcity to 10 MTA

Tata Steel kicks off its plans for an expansion of capacity to 10 million tonnes at its Jamshedpur plant, which is slated to be completed by December 2010. To mark the event, a groundbreaking ceremony was performed inside the work premises on Monday by B Muthuraman, managing director of Tata Steel. Also present on the occasion were chief operating officer (steel) HM Nerurkar, Tata Workers Union president Raghunth Pandey, vice-president (engineering services and projects) RP Singh, other senior officers of Tata Steel and office-bearers of Tata Workers Union. Speaking on the occasion, Mr Muthuraman said: “Though there are many challenges involved in this project, I am confident that the project will be managed efficiently. In December 2010, when the project will be completed, Jamshedpur will become the single-largest unit and one of the most modern plants in the world.” “We must ensure that the progress of this project takes place in the safest manner,” Mr Pandey said. As part of the 10 mt expansion plan, a series of investments will be made to augment the mines, a 6 mt pellet plant, expansion of capacity at Hooghly Metcoke from 1.2 to 1.6 mtpa, upgradation of existing A-E furnaces, a new LD3 BOF shop, two single strand thin slab casters of 1.2 mtpa capacity each with 2.4 mtpa hot rolling facilities and augmentation of LD2 to 4 mtpa.

Source: The Economic Times

1st January, 2008

Tata steel, SAIL may form JV for coking coal

Agency reports said that Tata Steel and SAIL could form a JV for coking coal. Though details are yet to be announced. Indications are that the JV is likely to be based in coal-rich Jharkhand. “They may sign an agreement to form a JV,” a steel ministry official confirmed to ET. However, a SAIL spokesperson declined to respond adding: “It is too premature to make any comment.” A Tata Steel spokesperson also did not comment on the media reports doing the rounds. Both Tata Steel and SAIL realise only too well the importance of ensuring raw material security as they add new capacity.

Source: The Economic Times

1st January, 2008

Steel capacity to tourch 60mt by this fiscal end

Domestic steel capacity, the main as well as the secondary producers together, is likely to touch 60 million tonnes (mt) by the end of the current financial year. Currently, the total domestic steel capacity is around 56.84 mt. “From April to October 2007, the total production of the industry was 30.31 mt. Annualising this, for the entire year we expect the production to be around 55 mt. Assuming that the capacity utilisation is maintained at 90 per cent, like it has been in the last couple of years, we expect the annual capacity to be slightly over 60 mt,” an official in the Steel Ministry told Business Line. Last year, the production of the domestic industry was at 50.85 mt and from April to October 2006 it was at 28.72 mt.

The official, however, was unable to quantify the exact amount of investment made by the companies during the expansion process because a substantial portion of the new capacity has come up through brownfield expansion utilising the available infrastructure in existing plants. “Generally, a greenfield project for a 1 mt steel plant would require around Rs 3,000 crore. “Since most of the brownfield expansions are met through de-bottlenecking the investment, they would cost far less and should be between Rs 1,000 and Rs 1,500 crore,” the official said. The year, however, saw exports taking a hit because of the appreciation of the rupee against the dollar.

“This year the exports would be in the region of around 5 mt. Till the end of October, the exports were at 2.9 mt as compared to the imports which were at 3.6 mt. “This is mainly due the appreciating rupee and the industry felt that since it was getting a better price in the domestic market there was no reason to export more. “But since we import goods under the Export Promotion Capital Goods (EPCG) scheme, there was an export obligation which had to be met,” an industry source said. The industry also believes that the capacity figure could be slightly over 60 mt as some of the units may utilise more than 100 per cent of the capacity due to the increase in demand. Also the Steel Ministry has undertaken a revision of data with special reference to the secondary sector individual furnace units. “Since it is very difficult to get the exact production data of the secondary producers, the Ministry has undertaken an exercise to get the capacity and production data of the secondary steel producers in the country,” the official said.

Source: The Hindu Business Line

29th December, 2007

Steel & Mining

If mergers and acquisitions (M&A) defined the steel sector in 2007, policy initiatives and consolidation of gains will underline 2008. Last year, the industry was home to the biggest ever acquisition by an Indian company in the form of Tata Steel's takeover of Corus for $12 billion. It catapulted the Tatas to the 5th position among the world's steel makers with a combined finished steel production capacity of 27 million tonnes (mt).

Clearly, the industry had gotten a taste of inorganic growth and was relishing every inch of it. The Tatas followed up the Corus deal with a collaboration with Vietnam Steel Corp for building a 4.5 mt plant in the southeast Asian nation. Next was the acquisition of a coal block in Mozambique with Australia-listed Riversdale Mining and a pact with the Ivory Coast government-owned SODEMI to mine iron ore.

So, in terms of scale, 2007 was the year of the Tatas. But others were smelting strategies too. Essar and JSW Steel joined the bandwagon, with the Ruias buying the Canadian Algoma Steel for $1.58 billion and US-based Minnesota Steel, the Jindals' JSW Steel reached out to buy a service centre in the UK. Separately, Navin Jindal-led JSPL bought huge reserves of iron ore in Bolivia.
This M&A wave is part of a two-fold strategy -- one, to buy loss-making defunct steel companies in the West; and two, to acquire mines in Africa, Australia and elsewhere in the world. While the purpose of taking over existing steel mines is to target a larger share of the fast expanding international market for steel products and enjoy greater economies of scale, that of buying overseas mines is to gain access to vitally needed coal reserves. The Indian steel sector has ample iron ore reserves but is still dependent on imports of coal.

Coming to mining, 2008 is going to be a policy-packed year. The single biggest thing to look forward to will be the new mining policy. The question is: will the country's outdated mining policy get the thrust needed to boost exploration activities on the one hand and facilitate maximum possible exploitation of proven mineral reserves on the other?

The policy, now awaiting Cabinet approval, may sidestep the important issue of iron ore exports but will give states some powers of revenue sharing for mineral resources. Similarly, the Central government will get some say in the state subject of allocation of mines in the event of inordinate delays. Year 2008 may also see an end of the debate on royalty rates, which are set to be revised. However, there remain several problems like procedural hurdles and approval delays which collectively threaten to spoil the steel industry party.

For an industry that was in dire straits only five years ago, 2007 signalled the peak of the crest. India found itself at the epicentre of activity in the global landscape with heavyweights like Arcelor Mittal and Korean Pohang Steel Company (Posco) lining up with big ticket investments. Just a passing look at the investment figures being touted is enough to see the sector's coming of age. By fiscal 2011-12, the industry is expected to receive investment worth Rs 275,000 crore, a figure which will go up to Rs 870,000 crore by 2019-20.

While mega-projects have become the order of the day, the bad news came from Posco's Rs 52,000 crore project in Orissa, that continued to face opposition. Construction work on the Posco project is now scheduled to start in April 2008 and how far the timeframe is maintained will have a huge bearing on whether the investment dreams are realised.

Source: The Indian Express

1st January, 2008

GAIL plans Rs.1200 cr Dabhol-Bangalore pipeline

The country's flagship natural gas company GAIL India on Sunday said it has plans to lay a pipeline from Dabhol to Bangalore at an estimated cost of Rs 1,200 crore and covering a distance of about 780 kilometers, a top official of the company said. The company also has plans to lay pipelines covering nearly 6,000 kilometers, at an expected project cost of Rs 20,000 crore. The Dabhol to Bangalore project is expected to start by January, GAIL Chairman and Managing Director U D Choubey told media here, after visiting the Shirdi-Sai Baba temple. Ratnagiri Gas & Power, a joint venture between GAIL and power generating utility NTPC owns the Dabhol power plant. The central government has already given the nod for the project, he added. Over the next five years, GAIL has plans to lay pipelines covering nearly 6,000 kilometers, at an expected project cost of Rs 20,000 crore, he said. That apart, the company has also entered into a Memorandum of Understanding (MoU) with the Rashtriya Chemicals and Fertilisers to set up a gas-based fertiliser plant at Talchar in Orissa, he said, adding "the project is expected to cost about Rs 6,000 crore." Choubey also said the cities of Nasik and Pune, will soon be provided CNG, for use in industry and transport.
Source: The Economic Times

30th December, 2007

RCF Plans coal gasification project in Orissa

Rashtriya Chemicals & Fertilizers (RCF) has signed a memorandum of understanding with GAIL for setting up a coal gasification project at Talcher in Orissa.The gas produced from the coal gasification plant will be used in the production of ammonia, urea and other chemicals. The project will add production capacity of 11.55 lakh metric tonne of urea per year. The estimated cost of the ammonia-urea project is about Rs 3,200 crore. The department of fertilisers had entrusted RCF to revive closed fertiliser units at Talcher and Durgapur.

Source: Business Standard

28th December, 2007

JSW Bengal expected to kick-off in February

JSW Bengal expects to kick off its Rs. 35,000-crore steel project in West Bengal by the first week of February 2008. It has already completed the hearings necessary for the environment clearance. The project, for which an agreement was signed with the West Bengal Government on January 11, 2007, will involve an investment of Rs. 35,000 crore, the single biggest dose of investment that this state received since the unfurling of its new industrial policy in 1994. JSW Chief Executive, Biswadip Gupta, told The Hindu that indications were that environment clearance would be received within the next 60 days or so. The hearing took place on December 27, 2007.

West Bengal Chief Minister, Buddhadeb Bhattacharjee, said at a chamber meeting here on Friday that he had urged the Prime Minister to lay the foundation for the project. Indications were that this would take place sometime in the first week of February. The company would commence its construction activities starting with a boundary wall soon after. Set to come up at Salboni in West Medinipur district, the Jindal group had already crossed the biggest hurdle of getting land for the project. The 5,000 acres required for the first phase had already been obtained without much of a problem. This was because first, the West Bengal Government already had with it some 3,800 acres, while another 377 acreas was given by the State Animal Husbandry department. The remaining was acquired directly by the Jindals. Its unique compensation offer of shares plus monetary payment and proposals on training one member of a land loser’s family seems to have smoothened the process. Financial closure for the project, which will be implemented in phases, was expected in three months, Mr. Gupta said. The first phase involving setting up a three million tonne capacity out of a total capacity of 10 million tonnes, is targeted to be completed by 2011. The rest would be implemented in suitable phases with 12 years from January 2007. JSW sources said that they were going to implement this project through a special purpose joint venture company called JSW Bengal.
Source: The Hindu

30th December, 2007

Year end review 2007 - Steel

Led by robust domestic demand the steel sector in the country has been witnessing extraordinary growth, making India the fifth largest crude steel producer in the world as against 8th position held three years back. Production of finished carbon has increased from 35.41 million tonnes in 2002-03 to 49.58 million tonnes in 2006 -07. During the first seven months of the current year from April to October 07, production of finished carbon is estimated to be about 29.37 million tonnes and is expected to be 55.5 million tonnes in FY 08. While exports have remained fairly stable between 2002-03 until last year at around 4.5 million tonnes, imports have increased from 1.51 million tonnes in 2002-03 to 4.10 million tonnes maintaining a rising trend this year, largely to fill the demand supply gap in the domestic market.

The demand for steel is expected to remain buoyant, above 10 per cent over the next five years, and in the most likely scenario the steel production capacity in the country is expected to touch 124 million tonnes by 2012. While the brownfield expansion plan over the next five years is expected to add 40.5 million tonnes capacity to the existing capacity of 56.84 million tonnes, the most likely scenario for addition to capacity by setting up of greenfield projects is expected to be 28.72 million tonnes taking the total capacity to 124.06 million tonnes. Furthermore, taking into consideration the intentions expressed by various steel investors including multinationals, domestic steel majors and FDIs, the likely capacity achievable by 2019-20 will be around 275 million tonnes.

The Public Sector Undertakings, Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL), are in the midst of ambitious expansion plans. The expansion plan would increase the capacity of SAIL from 14.6 million tonnes of hot metal to 26 million tonnes by 2010 at an estimated cost of around Rs. 53,000 crore. SAIL is also planning to expand its capacity further to 60 million tonnes per annum by 2020. In case of RINL, the expansion would increase its capacity from the present level of 3 million tonnes of hot metal to 6.3 million tonnes by 2009-10 at an estimated cost of around Rs.9,000 crore. RINL also plans to enhance capacity to 16 million tonnes per annum by 2020.

An MOU was signed between SAIL, RINL and NMDC this year for setting up a 4 million tonnes steel plant in Chhattisgarh. MECON has been appointed as consultant to prepare the site selection and economic feasibility report by April 2008. In a major move for implementing the project a tripartite MOU was signed between the Railway Ministry, Chhatisgarh Government and SAIL and NMDC for laying a 235 kilometer railway link between Dalli- Rajhara and Rowghat and further to Jagdalpur.

Acquisition of coking coal mines

In the wake of major expansion/investment plan, securing raw materials has been a major concern. By 2020, about 70 million tonnes of coking coal will be required of which 85 per cent will have to be imported. SAIL, RINL, Coal India Limited, NTPC and National Mineral Development Corporation signed a MOU in August this year to jointly promote a Special Purpose Vehicle for acquisition of coal mines/properties abroad. The union cabinet has approved the proposal of the Steel Ministry in November 2007.
Major initiatives of the Steel Ministry

With a view to facilitate speedy actualization of major steel investments in the country, the Prime Minister has approved the constitution of an Inter Ministerial Group to monitor and coordinate issues concerning major steel investments in the country. The IMG is chaired by Secretary, Steel with Secretaries of DIPP, Mines, Environment and Forest, Road Transport and Highways, Shipping, Member (Traffic), Railway Board and Chief Secretaries of concerned State Governments as its members. The broad terms of reference of the IMG are to review and coordinate measures for early completion of major steel capacities and to address various problems concerning infrastructure, availability of raw materials, speedy environment clearance, availability of other resources such as land and water and issues concerning rehabilitation.

A coordination committee consisting of representatives of steel industry, Ministry of Steel and Railway Board has been constituted to identify the major bottlenecks in railway facilities to steel sector. The Ministry of Steel has also commissioned a study with the Economic Research Unit to assess the infrastructure deficiencies and requirements in the major steel producing areas, particularly Orissa, Jharkhand and Chhatisgarh.

In order to make available quality steel to the consumers, it has been made mandatory for the producers and distributors to obtain quality certification under the Bureau of Indian Standards Act. The notification issued in November this year comes into force after a period of six months from the date of the notification. The notification applies to 17 steel products used in housing and construction, plates used in pressure vessel and Boilers, electrical sheets for transformers and Motors, galvanized sheets for roofing and paneling, tinplates used for packaging of food products etc. All manufacturers of the 17 steel products covered under this order will have to apply for license from the Bureau of Indian Standards for the use of the ISI mark within 45 days of the publication of the order. Any violation of the order will attract punitive action which includes jail terms upto one year and fine. This will go a long way in making available critical steel products of certified quality to consumers.

In a move to increase the use of lower grade iron ore, the Ministry of steel organized an international seminar with participation of about 200 experts from home and abroad. The objective was to use such ore by beneficiating the same and also to maximize the use of iron ore fines by pelletisation. The seminar which evoked considerable interest is expected to lead to addition of substantial green field capacity for producing pellets based on iron ore fines.

To ensure transparency in functioning, the vigilance machinery in PSUs has been strengthened as SAIL, RINL, NMDC, MECON, KIOCL, HSCL, BRL, MOIL have obtained ISO 9001- 2000 certification. During this year all the PSUs under the Ministry have implemented Integrity Pact. The Pact is considered an International best practice from Transparency International, for improving fairness and transparency in procurement and contracts with bidders/vendors for all major purchases.

Since its deregulation in 1991, the steel sector in the country is free to decide on its domestic and export prices. Following a demand from the steel consumers in the National Steel Consumers Council Meeting a Steel Price Monitoring Committee was formed with both officials and representatives from Steel industry and Steel consumers as its members. The Committee besides monitoring prices also advises the industry to decide their product mix as well as long term capacity additions, keeping in view the demand growth in long products. Producers were also advised to keep the ex-factory prices of long products in check and to maintain their export balance vis-à-vis the domestic demands for steel.

Both SAIL and RINL are expanding their dealership network to ensure availability of commonly used items of steel in rural areas. While SAIL has nearly 1300 dealers covering 602 districts across the country, RINL has dealers in 131 districts.

Source : PIB

26th December, 2007

West Bengal cabinet okays shipyard project

The West Bengal cabinet on Thursday approved the 'ambitious' shipyard project, to be built as a joint venture between the state government and private players, at an estimated investment of Rs 2,000 crores in East Midnapore district.

The State cabinet took the decision for acquiring 500 acres at Badar, Bhangagora and Deulpota mouzas in Mahisadal and Sutahata police station areas for the project, Mr A K Deb, Chief Secretary said at the state secretariat today. "The ambitious project, to be built by Bengal Shipyard Limited, Apeejay Surrendra Group and Bharti Shipyard, will provide direct employment to 3,000 and indirect employment to 600 people," he said. Mr Deb said the state government has decided to unveil a comprehensive rehabilitation package for the people whose land would be acquired for the project.

The state government has shelved its proposed chemical hub project in Nandigram in the district and shifted it to Nayachar Island close to Haldia, in the face of stiff resistance and violence by the local people. Mr Deb said the Cabinet also decided to either acquire or purchase 500 acres at Guptamanipur in West Midnapore district for setting up a plant for manufacturing auto components.

The plant will be set up by WBIDC, WBIIDC and SREI Group. The Cabinet also decided to acquire 250 acres for a unit of the ninth Engineering Regiment to be set up by the defence ministry at Nabagram in Murshidabad district. The ministry had earlier sought land from the State government, Mr Deb said. - PTI

Source: The Hindu Business Line

27th December, 2007

Deck clear for AI engineering

And finally work on the proposed engineering base of Air India at Chakka is all set to take off.Salem-based Mukesh and Associates, which is the consultant of the project, has invited tenders for the construction of the hangars and allied works at an estimated cost of Rs 39 crore. The expected completion period of the work is 10 months. The State Government had handed over 15 acres of land adjacent to the airport, near Chakka, to Air India free of cost in September 2006 and Prime Minister Manmohan Singh laid the foundation-stone for the project on November 1 the same year. But Air India got actual possession of the land only a couple of weeks ago.It was the delay in evicting the Trivandrum Rubber Works (TRW) from the land allotted to Air India, which caused the impasse. The Government had distributed compensation to employees of TRW a couple of weeks ago, following which the firm, defunct over the last many years, moved out of the land.A Government quarters and the labour camp of the Punj Lloyd located on the 15 acres allotted to Air India were evicted earlier.The last date for submitting the tender is January 23 and the tenders would be opened on the same day. Air India authorities had earlier claimed that the project would be completed within 18 months once they get possession of the land.The project would give a prominent place for the state capital in the aviation map of the country.The engineering base is being set up primarily to service Boeing 737-800 aircraft, which are being operated by Air India Express. Air India Express presently operates around 60 flights out of Kerala to various destinations in the Gulf. It has a fleet of seven aircraft and is planning to induct nearly 18 brand new 737-800 Boeing aircraft.Air India is also planning to induct 50 other new aircraft. Some of the line maintenance checks on these aircraft will be carried out at the proposed maintenance base here.

Source: Newindiapress.com

27th December, 2007

Gujarat set to get two 800 MW power plants

Consumer electronics giant Videocon Industries is planning to set up two 800 MW coal-based power plants in Gujarat. Earlier, the company had invited bids from global EPC contractors for setting up a 1,600-MW imported coal-based power plant in the state. “But now, Videocon Industries, through its Special Purpose Vehicle (SPV), Pipavav Energy Pvt Ltd, will set up two 800 MW imported coal-based super critical thermal power project near Pipavav port in Gujarat,” the company said.

The cost of this project is expected to be around Rs 8,000 crore, but would depend on several factors, including availability of fuel, sources said. The contractors for the project, to be implemented on a single turnkey basis, would be selected through international competitive bidding before June 9, 2008, they added. The first unit of the plant is expected to commence operations from mid-2012 and the second unit in six months thereafter. In an advertisement on Tuesday, the company said it is scouting for land in Gujarat, West Bengal and Chhattisgarh to set up plants that will generate 5,000 MW of power.

The company recently signed Memoranda of Understanding (MoU) with West Bengal and Chhattisgarh to set up power projects in these states, sources said, adding that the company is on the lookout for a global partner for the power generation business. “We are yet to start the land identification process. Once the land is identified, the company will prepare the feasibility reports,” company sources said, adding that the projects would be financed in the debt-equity ratio of 70:30.

Videocon Industries Chairman, Venugopal Dhoot, however, refused to give details, when asked for clarification. “We do not want to comment on this.No further details can be provided,” he said.
On December 17, Videocon had announced that it would hive off its power, oil and gas, and coal renewable energy into wholly-owned SPVs.

Source: Expressindia.com

27th December, 2007

NTPC gets U$380 loan from JBIC for Barh

The money will be used to part finance the 1980 MW Barh Super Thermal Power Project. The facility has been extended to NTPC without sovereign guarantee. National Thermal Power Corporation Ltd. (NTPC) said on Monday that it had secured a US$380mn loan facility from the Japan Bank International Cooperation (JBIC) to part finance the 1980 MW (3 x 660 MW) Barh Super Thermal Power Project (Stage I) in Bihar. The loan agreement was signed on December 20 at Tokyo.

The syndicated loan will be with four Japanese private financial institutions - Sumitomo Mitsui Banking Corporation, Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ, and the Tokyo branch of Société Générale. The facility, which was arranged and guaranteed by JBIC, has floating interest rate linked to the London Interbank Offered Rate (LIBOR) and door-to-door maturity of 18 years. This is the first facility extended by the JBIC to NTPC without sovereign guarantee, NTPC said in a statement.

JBIC has earlier provided financing for the company's Gandhar, Simhadri, Faridabad and North Karanpura power projects for an aggregate amount of 172bn Japanese yen through its overseas development assistance programme.

Source: India Infoline

24th December, 2007

L&T floats arm for power generation

Engineering and construction giant Larsen and Toubro (L&T) has floated a subsidiary to foray into power generation. The company, so far building power plants for private producers, plans to generate 5,000 MW by 2012 in the country which is facing a deficit of 22,000 MW as of now. According to the current industry expense, the cost of the proposed power capacity would be Rs 20,000 crore. “The group has floated a new subsidiary, L&T Power Development Company, to foray into power generation business on its own. We were in the bid for ultra mega power project (UMPP) at Kakinada in Andhra Pradesh, where the company emerged as the second-lowest bidder. Now, the plan is to set up 5,000 MW capacity in the next five years,” said AM Naik, chairman and managing director of L&T, on the sidelines of 70th anniversary celebration of the company and the birth centenary of its co-founder Henning Holck-Larsen. The company, which was hailed as the only national company owned by the people of India by finance minister P Chidabaram in the anniversary celebration, plans over Rs 2,000 crore each investments in shipyard and port business. The mega integrated and commercial port is expected to come up north of Diu, while the shipyard location is yet to be finalised as the company faces problems in procuring land. At present, the group’s stake in power generation ends with its 51% interest in Haldia power plant, a captive generation facility for Haldia Petrochemicals. The existing power business of the company comes under L&T Power Projects (L&T PPL). The new entity will concentrate more on generation rather than transmission and distribution and the proposed capacity will mostly use coal as fuel, said Mr Naik. L&T PPL had signed an agreement with Japan’s Mitsubishi for building super-critical turbines and boilers. The JV entails an investment of Rs 1,500 crore and the plant will be completed by 2009. The manufacturing bases will come up at Hazira in Gujarat. In both JVs, the L&T arm will hold a 51% stake. “L&T is now the end-to-end solutions provider in the power sector. The company has constructed many power plants for others. Thus, it will not be a tough task for the company to enter into power generation. For initial investments, the new power company will get money from the $1-billion infrastructure fund of the parent company,” said sources. L&T is jointly developing a port with Tata Steel at Dhamra in Orissa at a cost of Rs 2,500 crore. Developer of Kakinada port, L&T has already developed a berth at Haldia. Its subsidiary company — L&T Ports and Shipyards — is devising plan to set up a mega shipyard with an investment of Rs 2,000 crore. Meanwhile, L&T is witnessing the second-biggest organisational revamp in five years. The move is aimed at creating a leaner structure, with several verticals executing projects in different sectors. The company wants to create more leadership opportunities as well. The company is one of the largest companies in India’s private sector with a market cap of around Rs 80,000 crore. The governor of Maharshtra SM Krishna, Maharashtra chief Minister Vilasrao Deshmukh, Union petroleum and natural gas minister Murali Deora and civil aviation minister Praful were present at the celebration along with a band of business leaders

Source : The Economics Times

22nd December, 2007

OMC and OHPC to set upa 2000 MW power plant

The Stateowned Orissa Mining Corporation (OMC) and Orissa Hydro Power Corporation (OHPC) have jointly floated a company named Orissa Thermal Power Corporation (OTPC) to set up a 2000 mega watt power plant near Kaniha.Energy Secretary will be the chairman of OTPC which will be under the administrative control of the Energy Department. A full time chief executive officer (CEO) will be appointed through an open advertisement shortly, Energy Minister SN Patro told mediapersons after a meeting on the project here today.A four-member project team has been constituted for implementation of the thermal power project. An officer of the Chief General Manager rank and another officer of the rank of general manager have been appointed.Two retired chief engineers Jaydev Mishra and Iswar Chandra Das are also part of the project team.The Minister asked the project team to prepare a calender indicating the timeframe for selection and finalisation of site for the plant, forest and environment clearance, land acquisition, preparation of detailed project report and execution of the first phase of the plant.Meanwhile, the Centre has allocated two separate coal blocks - Mandakini-B for OMC and Baitarini West for OHPC for coal exploration. However, the Baitarini West coal block has been allotted jointly to OHPC and state power corporations of Kerala and Gujarat. The three companies have floated a special purpose vehicle through a tripartite agreement for coal exploration.Since the proposed thermal plant will be a pit head project, the project team will go scouting for a suitable site near the coal blocks. The first job of the team is to locate an office for OTPC in the city within a fortnight. Tender will be floated for appointment of a reputed consultant for preparation of DPR. The project will be implemented in two phases and both the phases will be commissioned during the 11th Plan period.

Source: Newindpress.com

21st December,2007

IDCO inks MoU with Ramky Enviro Engineers Ltd

In a bid to give the industrial waste disposal facility in Jajpur district especially in Sukinda area a boost, Orissa Industrial Infrastructure Development Corporation (IDCO) has signed an agreement with Hyderabad-based Ramky Enviro Engineers Limited here yesterday. IDCO MD Mr Vishal Dev and Ramky MD Mr. Ravi Kant signed the agreement in the presence of senior environment engineer of state pollution control board (SPCB) Dr DK Behera. Seventy acre land in Jajpur district has already been allotted to the waste management company for setting up of the treatment, storage and disposal facility (TSDF). In the first phase, the project cost will be around Rs 33 crore, which is expected to be commissioned within six months. It would be a state-of-the-art facility complying with the provisions of hazardous waste (management and handling) Rules-1989 as amended, said Mr Dev and added that the facility shall comprise of engineering land fill, laboratory, waste handing transport and equipment, waste disposal facility, latched facility, waste storage facility.

Source: The Statesman

23rd December 2007

PSL gets Rs.1.25bn worth order from Assam Govt.

Pipe maker PSL bagged a contract worth Rs 1.25 billion for the supply of coated line pipes and long radius bends for the 200 km Dullajan Numaligarh Pipeline in Assam. The company will supply 16 inch diameter bare/coated pipes entirety from its state-of-the-art two-step mill in Varsana, Kandla, Gujarat by Mid 2008. The above order from the government of Assam substantiates the company`s firm hold in the globally tendered domestic pipeline supply segment as it has secured this project among competition from both international and domestic supplies, said PSL in a release. With the present order in hand the company has bagged eighth successful order in domestic oil and gas industry pipeline tenders.

Source: Myiris.com

20th December, 2007

Cement firms to invest Rs.50k cr in 3 years to raise capacity

Cement industry in the country will add 110 million tons to its production capacity at an investment of Rs 50,000 crore in the next three years, cement manufacturers' association (CMA) said today. "In the next three years, Rs 50,000 crore is being invested for increasing the cement capacity in the country by 110 million tons," association's newly elected president H M Bangur told reporters here.

The production capacity is being increased by different cement manufacturers across the country, he said, adding that the present cement production is estimated at 165 million tons. Asked on pricing of cement, Bangur said it is stable right now and would remain at the existing level for the next six months. "As there is no shortage nor surplus at present, so chances of prices going up is equal as going down," he said. The CMA president, who is also the Managing Director of Shree Cement Ltd, said the price increase in April-November was less than three per cent and it remained lower than the national inflation rate.

The industry body denied any cartelisation among cement manufacturers. During April-November, the country saw an 7.72 per cent year-on-year growth in cement production, Bangur said. "India's economy is growing at nine per cent and it has fuelled the cement industry to grow at 10-11 per cent in the last two years," he said, adding that growth of the cement industry is correlated with that of the country's GDP.

Source: Zee News

17th December, 2007

Greenfield airports in North East Region

With the objective of operating up to 50 airports/airstrips in the North-Eastern region by the end of the XIth Five Year Plan and providing up to 600 flights per week within the region by using the appropriate type of aircraft; making the required improvements in existing airports / airstrips in a time-bound manner, the North-East Council has directed the Ministry of Development of North-Eastern Region and other related agencies of the Government of India to proceed expeditiously

Most of the places in the North Eastern region are inaccessible and located in far-flung areas. The road and rail infrastructure is inadequate therefore, air-connectivity is the most viable means of transportation in the region, both for intra-state connectivity and the region's linkage to the mainland. Keeping this in mind, the Government of India, has accorded top-most priority to development, by setting up 'Greenfield' Airports and opening operation of airstrips in the North-East region, with the objective of operating upto 50 airports / airstrips in the North Eastern region by the end of the XIth Five Year Plan, and providing upto 600 flights per week within the region.

There are a total of 23 airports in the North-Eastern region, out of which 11 are currently operational. These airports are Agartala, Aizawl, Dibrugarh, Dimapur, Guwahati, Imphal, Jorhat, Lilabari, Shillong, Silchar and Tezpur. The airport at Lengpui, Aizawl is owned by the State Government. The 12 non-operational airports are Along, Daparizo, Kailashahar, Kamalpur, Khowai, Pasighat, Rupsi, Tezu, Tura, Turial, Ziro and Shella.

The AAI is also planning to develop new 'Greenfield' airports at Cheithu in Nagaland, Itanagar in Arunachal Pradesh and one at Pakyong near Gangtok in Sikkim, which is estimated to cost Rs 320 crore. The Airports Authority of India (AAI) also has plans to develop two new 'Greenfield' airports at Kokrajhar in Assam and Tawang in Arunachal Pradesh, as part of its efforts to expand air connectivity to the North-Eastern states.

"The Government of India is laying special emphasis on development of airports in the North-Eastern region, and as per our plan, we are preparing feasibility studies for new airports in Kokrajhar, Tawang," remarked G K Chaukiyal, executive director (Planning), AAI at a recently held conference on Airport Development and Modernisation. Statistics available with the Ministry of Development of North-Eastern region (DONER), Government of India, indicate that there was a reported growth of 23.4 per cent in aircraft movement in the North-Eastern region (NER) between 2004-05 and 2006-07 and a growth of 40.2 per cent in passenger traffic for the same period. At present airlines, operating in the region include Indian, Alliance Air, Jet Airways, Air Deccan, Kingfisher Airlines, Spicejet, Jet Lite and Indigo.

There has also been an increase of 17.2 per cent in capacity, both with regard to flights per week and seats deployed between 2006 and 2007. In the case of flights it is 17.2 per cent and for seat deployment it is 18.9 per cent, as per statistics available with DONER. For the proposed Greenfield airport at Pakyong in Sikkim, it was indicated that the DPR (Detailed Project Report) has been prepared and forwarded to the Planning Commission. The estimated cost of the project is likely to be Rs 320 crore. The Government of Sikkim has been allocated Rs 100 crore by the 12th Finance Commission for development of the airport. The Planning Commission has proposed sharing of cost on 1:1 basis between GBS of Ministry of Civil Aviation and resources from AAI.
For the Cheithu 'Greenfield' Airport in Nagaland, the consultants have submitted the interim report for the techno-economic feasibility study which is under examination by AAI and likely to be finalised soon. The techno-economic feasibility study for the proposed Greenfield airport at Banderdeva site at Itanagar has been prepared.

Source: Express Travelworld.com

Jai Balaji Industries expansion plan

Jai Balaji Industries Ltd has informed the BSE that the board of directors of the company at a meeting on December 17 approved the plan to execute a series of expansion projects at its manufacturing unit at Banskopa in West Bengal at a total cos t of Rs 1,055 crore. The entire project will be completed in phases in between September 2008 and June 2009.

The board also decided to call an EGM on January 10 to seek approval of the members of the company for preferential allotment of 61,18,000 zero coupon fully convertible debentures of the face value of Rs 326.90 each for cash at par to Citi Venture Capita l Fund and 22,41,000 such debentures to India Equity Partners Fund I, LLC, apart from preferential allotment of 3,00,000 warrants at Rs 326.90 each to Sai Prasad Multitrade Pvt Ltd and 93,00,000 warrants to promoter, promoter group companies, directors a nd relatives.

Source : The Hindu Business Line
18th December, 2007

BHEL, NTPC sign JV agreement

Power equipment supplier BHEL on Monday said it had signed an agreement with NTPC Ltd for setting up a joint venture company for carrying out EPC projects in the sector. "A joint venture agreement between the company and NTPC Ltd has been singed for establishment and operation of joint venture company for taking up EPC business," Bharat Heavy Electricals Ltd (BHEL) said in a filing to the Bombay Stock Exchange. The move would help NTPC, the country's leading power generation firm, to enter into equipment manufacturing space. A memorandum of understanding in this regard was signed between the two companies on September 10 this year.

Source : The Hindu
17th December, 2007

HPL expansion to be completed by 2008

The proposed expansion of Haldia Petrochemicals Ltd (HPL) christened 'Super Max' is scheduled to be completed by the end of 2008, a company official said. The company board has approved the expansion plan involving expansion of naphtha cracking capacity to 670 kilo tons per annum from the present level of 523 kilo tons, a company official said. The estimated project cost was Rs 840 crore, to be funded from debt and internal accruals, but there has been a cost overrun of Rs 40 crore.

The company was also evaluating the techno-economic studies for the new projects. In spite of the strained relation between the two promoters, the West Bengal government and the Chatterjee Group (TCG), the networth of the company increased from Rs 544 crore in March 2002 to Rs 2,786 crore as in November 2007. The official said that HPL had successfully scripted a turnaround as the company posted a net profit in 2004. During 2007, HPL's turnover was in excess of Rs 8,000 crore and clocked a net profit of Rs 581 crore.

Commenting on the debt-equity ratio of the company, the official said it had come down from 3.64 in March 2002 to less than one in November 2007. The official said that with such favourable debt-equity ratio, the company would be able to take loans at competitive rates of interest. After gaining a substantial market share in eastern region, HPL's products were also exported to countries like China, Nepal, Bangladesh, Pakistan, Europe, US and Africa. Besides manufacturing of polymers, the company was also producing motor spirit (MS) as a by-product conforming to Euro III standards.

Source : The Hindu

17th December, 2007

Jharkhand clears Rs.800 cr package for HEC

The Jharkhand government has cleared a Rs 806 crore package to revive the ailing state-owned Heavy Engineering Corporation (HEC). The package was approved by the state cabinet on Friday night. It includes waiving Rs 500 crore electricity bill of HEC, which owes the same amount to the Jharkhand State Electricity Board (JSEB). The government will give JSEB Rs 500 crore in different phases. The package also includes Rs 170 crore for rehabilitation of the company, Rs 60 crore for the buildings used by the state government and Rs 20 crore for the land used by the state government. It will also include a waiver of water tax of Rs 3.1 crore, commercial taxes of Rs 25.5 crore and other things. The HEC will give 2,342 acres vacant land to the state government. The package has brought relief to the employees and management of HEC. "The package will help HEC in modernising plants and clearing the payment of retired employees. The amount will be used in the best way to ensure restructuring of the company," said G K Pillai, chairman and managing director of HEC. After clearing the package, Chief Minister Madhu Koda said: "We hope that the good days of HEC will return soon and the company will emerge as a profitable PSU." HEC, established in 1963, has been mostly a loss making PSU. HEC had gone to the Board for Industrial and Financial Reconstruction (BIFR), which two years ago recommended its closure. However, the Jharkhand government was against it and requested the central government to revive the company. HEC was a dream project of first Indian Prime Minister Jawaharlal Nehru. Last year, HEC posted a net profit of Rs 2.84 crore. In the first six months of the current financial year, HEC crossed the sale target of Rs 172 crore by achieving Rs 180 crore.

Source: The Economic Times

15th December, 2007

Investment for Rs.1 lac car is Rs.3,700 crores

The total investment - by Tata Motors and its vendors - in the Rs 1 lakh car project is Rs 3,700 crore. The West Bengal government today disclosed that the investment in the vendor park would be around Rs 2,200 crore.Around 55 vendors have been roped in for the project, of which 54 would be making an entry into Bengal with the small car project.State commerce and industry minister Nirupam Sen said, the land for the twin project of Telcon's earth moving equipment facility in Bengal had also been acquired. Telcon is promoted by Tata Motors.The lease agreement for land was signed today between the company and the state government. The total investment including vendor park would be around Rs 1,100 crore.Moreover, Hitachi, a 40% partner in Telcon, would be setting up a state-of-the-art R&D facility near the project site, which would be a global hub for Hitachi. The centre would Hitachi's first outside Japan.

Source: Business Standard

13th December, 2007

Telecon to invest Rs.600 cr in West Bengal

Telcon Construction Equipment Manufacturing Ltd, a joint venture between Tata Motors and Hitachi, would invest Rs 600 crore for setting up an earth moving equipment manufacturing company at Kharagpur in West Bengal. Announcing this here today, Industry minister Nirupam Sen told reporters that the government has over 250 acre to the company. He said that the government would also allot an additional 90 acre to accommodate 20 vendors. This would bring in another investment of Rs 500 crore. The project would give direct employment to 1,000 people and indirect employment to numerous others. While Tata Motors holds 60 per cent in Telcon, Hitachi holds the remaining 40 per cent stake. Besides the manufacturing plant, the company would set up a research and development centre there. The project would start production in 2011. Referring to the Tata Motors small car project at Singur, he said that 55 vendors had already agreed to set up auto component units. The total investment to be made these vendors would be Rs 2,200 crore, besides the Rs 1500-crore investment in the mother plant by Tata Motors. Construction work by 15 vendors has started, he said.

Source : The Economic Times

13th December 2007

Punj Lloyd has won a Rs.590 crore contract from IOC Vadodara

Punj Lloyd has won a Rs 590 crore contract for building delayed coker unit & coker LPG Merox Block for the residue upgradation project of Indian Oil Corporation at its Vadodara refinery in Gujarat. The lump-sum turnkey contract entails engineering, procurement, construction and commissioning assistance (EPCC) services and has been secured amidst international competitive bidding, a company release said. The scope of work includes a 3.7 MMTPA delayed coking unit and a 160 TMTPA LPG Merox Unit. The project is scheduled to be completed within 28 months. The company has extensive experience in refinery process units including hydrocracker, sulphur recovery units, hydrogen generation unit and motor spirit quality (MSQ) upgradation projects for all the major PSUs in India.This project adds to this vast portfolio in refinery processing. This project acquires strategic importance for the company, as many similar delayed coking units are expected to be set up in the major refineries in India. Further it will gain experience of working with renowned process licensor Foster Wheeler. With this, the order backlog for the Punj Lloyd group on consolidated basis has gone up to Rs 18,484 crore as of September 30, 2007.

Source : Business Standard

13th December, 2007

Suzlon plans 2mn tpa steel plate mill in Karnataka

World's fifth largest wind turbine maker Suzlon Energy plans to set up in Karnataka an integrated steel project, including a 2-million ton per annum steel plate manufacturing mill, according to a web publication. The 2-million ton per year mill will be constructed in the first phase, while in the second phase a blast furnace, steel meltshop and a sinter plant would be built, Metal Bulletin said quoting an unnamed source. Third phase of the project would integrate iron ore mining, for which Suzlon has started scouting for mines in Karnataka. Company officials could not be reached when contacted for comments.

According to the publication, Suzlon requires 85 ton of plate for every megawatt of wind turbine capacity it manufactures. "Suzlon currently needs about 500,000 ton per year of plate for its operations worldwide and this is set to increase as order books are getting bigger," the source was quoted as saying by Metal Bulletin.

Source : The Hindu

12th December, 2007

REL bagged a Rs.3725 Crore contract for DVC Ragnathpur Project

Reliance Energy Ltd (REL) has bagged a Rs 3,725-crore contract for Damodar Valley Corporation (DVC) after it agreed to bring down the project cost. The company was the sole bidder for Raghunathpur power plant in West Bengal and had earlier quoted about Rs 4,800 crore for the job. DVC awarded the contract for coal-based power project to REL on engineering, procurement and construction basis. “The contract valued at Rs 3,725 crore has been bagged by Reliance Energy’s EPC division through international competitive bidding. It will be implemented in an accelerated schedule of up to 38 months,” company said.

REL sources had earlier told DNA Money that the company had, in tie-up with Shanghai Electric Company, quoted roughly Rs 4,800 crore for the EPC contract. Sources said the company was asked to match the price for Hisar contract which REL is implementing. DVC chairman Ashim Kumar Barman told DNA Money, “REL agreed to bring down the price and make it comparable to Hisar.” Haryana Power Generation Corp Ltd in January 2007 awarded a contract on the basis of a competitive bidding to Reliance Energy for setting up 2x600 m coal-based power project on turnkey basis.

Source: DNA

13th December, 2007

Dhamra Port to be finished by 2010

The Dhamra Port project, developed by Tata and L&T, will be completed on schedule in 2010. According to Orissa commerce and transport minister Jayanarayan Mishra, at least 2770.76 acres of land has been acquired so far as against the total requirement of 3020.31 acres for construction of the port project and railway lines. The minister’s assertion about the completion of the project on schedule assumes significance as the global environment protection group Greenpeace had raised serious objections to the project on the ground that it would pose a threat to the local marine flora and fauna.

On May 30, Greenpeace had released a critique that claimed to expose "serious" and "fundamental" flaws in the Environment Impact Assessment (EIA). "The port will be located in an ecologically sensitive area, 5 km from the Bhitarkanika sanctuary and less than 15 km from Gahirmatha beaches, the world’s largest mass nesting site for the Olive Ridley turtles. Given the sensitive nature of the location, it is essential that the EIA be scientifically credible and unbiased," the report said.

Source: The Asian Age

10th December, 2007

Maytas bags Rs.232 cr Vedanta Alumina order

Maytas Infra - infrastructure development, construction and project management company - has bagged a Rs 232.69 crore contract from Vedanta Alumina (VAL) for developing an integrated township for its staff in Jharsuguda, Orissa.Vedanta Alumina has selected Maytas infra to develop the residential township for its staff based in Jharsuguda where in the scope of work for Maytas will include constructing the township on an EPC (engineering, procurement construction and costs) basis including site grading, designing of buildings and their construction, etc.The project has a total built up area of 14 lakh sq ft which will be competed in 18 months. The proposed township will include infrastructure facilities like roads, sewage, water treatment plant, transit accommodation and bungalows for top management guest house, etc.

Source : Business Standard

10th December, 2007

Mega Project status for Jindal SAW's Nashik Unit expansion

The Jindal SAW's expansion project at its Nashik unit will now be eligible for industrial promotion subsidy as it has been accorded the status of the Mega Project by the Maharashtra government. With the approval as Mega Project, Nashik unit will be eligible for Industrial promotion subsidy under the Package scheme of incentives - 2007. This will help the unit to be more competitive in the market since major portion of the investment gets covered with the subsidy, a company press release said here. The total expansion is expected to be completed by August 2008, the release added. Under the expansion programme, its annual capacity of Nashik unit is being augmented from 75,000 tonne to 2,20,000 tonne of finished tubes.

Source: The Economic Times

9th December,2007

Approval given to Kolkata container project

Indian Shipping Ministry has given the green light to the establishment of a dedicated, one million TEU per annum capacity container terminal at Diamond Harbour on the River Hooghly, within the jurisdiction of Kolkata Port Trust.The decision to implement all of the recommendations of a committee chaired by PVK Mohan was taken in New Delhi at a high-level meeting chaired by shipping minister TR Baalu.The box facility will have three container berths and two barge jetties. Earlier, the Kolkata Port Trust was mulling setting up three separate berths for handling liquid bulk, dry bulk and containers at Diamond Harbour.With the Shipping Ministry accepting to set up a dedicated container terminal, KoPT’s plan was no longer in the running. It means that all three 240m berths would be handling only containers, and not bulk cargo.Under the dedicated terminal plan, there will also be two barge jetties, each one 100m in length, making the linear quayline nearly one km long.The purpose of constructing barge jetties is to focus on large-scale transportation of containers by barges to and from the proposed terminal.On completion of the terminal, feeder vessels will stop calling at either KDS or Haldia dock.Instead, there would be barge transportation of boxes, both loaded and empties, between KDS or Haldia and the proposed terminal.A two km long railway line will be constructed to connect the terminal with the Eastern Railway’s network at Diamond Harbour.New roads will also be needed to connect the newly-built terminal with National Highway 117, although the movement of containers by road will not be considered a priority in the foreseeable future.

Source: cargonewsasia.com

10th December, 2007

NTPC - Bharat Forge in JV talks

Auto components major Bharat Forge is joining hands with top power generation company NTPC Ltd to set up a new greenfield manufacturing facility in the country. The joint venture will look at manufacturing power plant equipment, including turbines, components and accessories, through technological tie-ups with other manufacturers. A strategic partner may also be roped in later. This the two Companies would do either by reducing their existing stakes or by infusing fresh equity.

Once off the ground, the joint venture will be a fructification of power minister Sushil Kumar Shinde’s plans to diversify NTPC into equipment manufacturing. A power ministry official confirmed that Bharat Forge had written to Shinde on October 29, expressing interest to set up manufacturing facilities for manufacturing power plant equipment. To begin with, the manufacturing facility of NTPC and Bharat Forge will take up fabrication, casting of forgings and pipings for various industries. They will also meet the requirement for ‘balance of plant’. Balance of plant consists of the remaining systems, components, and structures that comprise a complete power plant. Once this company starts performing business satisfactorily, it will get into manufacturing power plant equipment.

To work out the details, Bharat Forge CMD Baba Kalyani met NTPC chairman T Shankaralingam on November 29. Sources said, an agreement would be signed shortly between NTPC and Bharat Forge to float the JV. It will be incorporated as a private limited company, with both NTPC and Bharat Forge as equal partners. The JV will take the ‘project-financing’ route for setting up a manufacturing unit on a non-recourse basis. The draft memorandum of understanding prepared by NTPC restricts the JV from taking up any renovation and modernisation of power plants in India and Saarc countries. However, if Bharat Forge has any objection, a special requirement will be incorporated in the MoU.

NTPC has recently signed a similar MoU with Bhel to form a 50:50 joint venture for engineering, procurement and construction activities. NTPC is India’s largest power producer with an operating capacity of 27,900 mw. A public listed company with a government holding of 89.5%, NTPC has around 20% of the country’s installed capacity and contributes 29% to power generation. NTPC plans to become a 75,000-mw-plus company by 2017 and is also in the process of setting up an exchange to trade electricity. About 15 % of the nation’s power output is expected to be traded through the exchange in about five years. Other state-run

Source: The Financial Express

6th December, 2007

Rs. 30,000 crore Ganga Express way project

The Rs 30,000-crore Ganga Expressway project conceived by the Uttar Pradesh has received an overwhelming response with 20 leading infrastructure and realty players submitting their pre-qualification bids on Thursday, the deadline for receiving the applications.Reliance Energy and realty players DLF, Unitech, JP Associates and a three-way consortium of Omaxe and GVK Construction and Nagarjuna Constructions, Zoom Developers, GMR Infrastructure, Larsen & Tourbo and DS Constructions are among the leading bidders to build the 1,047-km expressway.
The project, divided into four parts, would be developed on a public-private- partnership model. The state government seeks to build an eight-lane expressway connecting Greater Noida to Ballia close to the Bihar border.

"About 20 companies from across the country have submitted the pre-qualification bids for the project," a source said. Of these, after the final round of bidding, four bidders will be awarded the project as it would be based on the basis of one bidder – one stretch, they added. The entire project is divided into four parts so that it should be completed in three years from the date of the final award, informed sources said. Sources said the reality biggies such as DLF, Unitech and JP Associates are some of the front-runners for the mega highway projects. The expressway to be built along the Ganga river would also help in preventing floods, besides ensuring high speed direct connectivity from the western to eastern boundaries of the state.

Reliance plans solar power project

Reliance plans solar power project in WBEconomy BureauPosted online: Thursday , December
Kolkata, Dec 5 Mukesh Ambani's Reliance Industries Ltd is set to enter the renewable energy business even as Anil Ambani's Reliance Energy Ltd (REL) has announced its intention of generating power from renewables. To start with, Reliance Industries has decided to set up a 10- mw solar plant in West Bengal and sought the help of the West Bengal renewable energy development agency (WBREDA).

WBREDA director SP Gon Chaudhuri said that Reliance Industries had approached him in July and after a series of discussions decided to start by setting up a 10-mw solar unit in West Bengal. Although the company did not commit any investment, it has started scouting for land in the state. "Purulia is likely to be the place where it would set up its solar plant," Gon Chaudhuri said.

Moser Baer Photo Voltaic, a 100% subsidiary of Moser Baer India, has also submitted a demonstration project to WBREDA to make solar power from concentrated solar cells. The company has submitted the demonstration project in Karnataka and Jammu and Kashmir as well.
He said the Reliance plant in West Bengal is like an experimental project but their plan is to make big investments in Rajasthan and Maharastra for making solar power there. "West Bengal has a well set regulatory frame work for renewable energy and by the time the project comes up, there will be preferential tariff in place too for solar power," Gon Chaudhuri said.

The West Bengal state electricity regulatory commission has recently announced preferential tariff for power from biomass, hydro and wind, which are Rs 3.35, Rs 3.60 and Rs 4.00 respectively. The regulatory commission is likely to announce the tariffs for solar, bio-gas and municipal solid waste power next month. Gon Chaudhuri said the tariff for biomass and hydro power are at par with other states but the tariff for wind power in West Bengal is higher than other states.

Around 200mw green power to be produced by 32 Companies would be pushed to the grid. WBREDA has facilitated power purchase agreements with utilities like West Bengal State Electricity Distribution Company, CESC Ltd and Durgapur Projects Ltd, which would draw the power from the producers

Source: The Financial Express

6th December, 2007

Keltec-BrahMos merger - Transfer deed to be signed

The deed document for handing over state-owned Kerala Hightech Industries (Keltec) to BrahMos for the manufacture of supersonic cruise missiles will be signed on December 5 at a function to be held at Hotel Residency Towers here at 3 pm.The document will be signed by BrahMos chief and DRDO chief controller A Sivathanu Pillai and Industries Principal Secretary T Balakrishnan in the presence of Industries Minister Elamaram Kareem.With the takeover, Keltec will be renamed as BrahMos Aerospace (Trivandrum) Ltd. It will be a joint-venture of the Government of India and the Russian Government.The Defence Research and Development Organisation (DRDO) will have majority stake in the project. The formal transfer of Keltec to BrahMos will take place in January at a function to be hosted by the State Government in the presence of Defence Minister A K Antony.Apart from missile production BrahMos plans to develop new generation launch vehicles for space applications for ISRO and supply all critical components for DRDO and BARC.BrahMos will invest Rs 100 crore and ISRO Rs 25 crore initially for enhancing facilities. The projected annual turnover of BrahMos in Thiruvananthapuram is Rs 500 crore within three years and Rs 1000 crore within a span of five years.The new company will be a potential anchor industry capable of providing host opportunities to the small and medium sector industries in the state in addition to ensuring a long-term market for the proposed titanium sponge company in the state. All Keltec employees will be absorbed by the BrahMos.

Source: Newindpress.com

5th December, 2007

Orissa gives administrative sanction to Mittal for land buy

The Orissa government has given administrative sanction for acquiring land at Patana tehsil in Kenojhar district for Arcelor-Mittal's proposed 12 million tons per annum steel plant. The company, which announced the Rs 40,000 crore project last year, has already deposited Rs 4.03 crore with the Industrial Development Corporation (IDCO) as processing fee for phase-I land acquisition. "This is beginning of the land acquisition process for Arcelor-Mittal," said a senior official. The government has also appointed a nodal officer to oversee land acquisition process and other issues concerning the company's greenfield project, said Steel and Mines Minister Padmanabha Behera. Arcelor-Mittal is understood to have sought nearly 8,000 acres of land for the purpose and the state is believed to have agreed to the request. The government has, however, cleared acquisition of only 1,224 acre of land spread over three villages like Angikala, Baradangua and Bhrungaraj under Patana tehsil in the first phase of land acquisition. The 1,224 acres demarcated for the first phase acquisition comprised 431 acres of government land and 739 acres belonging to private owners. While the government had fixed price per acre of state land at Rs two lakh, it was yet to decide cost of private land which would be fixed according to rehabilitation and resettlement policy.

Source: The Econmic Times

5th December, 2007

ABG Shipyard plans Rs.1400 cr investment

India’s biggest private sector shipbuilder ABG Shipyard Ltd plans to invest Rs1,300-1,400 crore to expand capacity to meet the rising global demand for building large cargo carrying ships.
After the expansion, the company hopes to build large size ships, including very large crude carriers (VLCCs) at its shipyard located at Magdalla Port in Surat, Gujarat, said Rishi Agarwal, managing director of ABG. A VLCC can typically carry as much as 320,000 tonnes of crude oil.

Workers at the ABG Shipyard facility in Surat, Gujarat. After the expansion, the company hopes to build large-size ships, including very large crude carriers at the shipyardIndian shipbuilders are moving from building small- and medium-size ships to constructing large ones as fleet owners chase economies of scale.
“We are acquiring additional land along Vipul Shipyard to create facilities that can increase the capacity of the Surat yard,” Agarwal said. Besides, ABG is also looking at setting up a new yard in Surat, he added, declining to give details on this. “The planned expansion will increase our shipbuilding capacity two-three times,” Agarwal said. The firm’s Surat facility can currently build 32 ships in a year. In May this year, ABG had agreed to acquire Vipul Shipyard Ltd, its neighbour at Magdalla port, to augment capacity to 40 ships in a year.

ABG is currently building its second shipyard across 40 acres at Dahej in Gujarat at a cost of Rs950 crore. The first phase of the project, costing Rs400 crore, will give the company facilities the ability to build eight ships simultaneously, with each ship having a capacity of 120,000 tonnes. These ships will meet growing demand in the dry bulk (cargo) segment. The company expects to complete this phase of the project by April.

The second phase, costing Rs550 crore, will give the company to build jack-up rigs used in deep-water oil drilling operations. The company expects to start constructing rigs in December 2008 and will be able to build four rigs at a time. ABG has orders in hand to build ships worth Rs7,121 crore.

Global shipowners are building more ships at Indian yards as a scarcity of shipbuilding slots in maritime strongholds such as South Korea, Japan and China force them to look at new destinations including India. As a result, Indian yards such as ABG, Bharati Shipyard Ltd and state-run Cochin Shipyard Ltd are looking to grab a higher share of the global shipbuilding market and capture the space vacated by the closure of yards in Europe and other developed countries.
Local builders, such as ABG and Bharati, are building capacities by acquiring existing yards or building new ones. Bharati is building a new yard in Mangalore that will add to its facilities located at Ratnagiri and Ghodbunder (Thane), both in Maharashtra, and one in Goa. Bharati also plans to build a new yard at Dhamra in Orissa through a joint venture with shipping firm Apeejay Shipping Ltd at a cost of Rs1,500-2,000 crore.Pipavav Shipyard Ltd, promoted by Skil Infrastructure Ltd, will start building ships from January at its facility located at Pipavav Port inGujarat.

India’s biggest engineering and construction firm, Larsen and Toubro Ltd, also plans to build a new yard at Kattupalli in Tamil Nadu at a cost of Rs1,500 crore. L&T ventured into shipbuilding last year by converting a portion of its heavy engineering complex at Hazira in Surat into a shipyard.
Good Earth Maritime Ltd proposes to build a shipbuilding facility at Cuddalore district of Tamil Nadu with an investment of Rs2,000 crore.Pipavav Shipyard and the planned new facilities of Bharati, L&T and Good Earth Maritime will be capable of building VLCCs, a key shipbuilding segment from which local yards have been absent so far.

Source: Livemint.com

5th December, 2007

Rakindo to set up alumina plant

Ras Al Khaimah’s Rakeen Development has tied up with the Trimex Group of India to form a company called Rakindo, which will spend Dh18.36 billion ($5 billion) over the next five years to build a mixed-use property in India. Meanwhile, the government of Ras Al Khaimah is setting up an aluminium project, worth Dh7.34 billion ($2 billion), in India’s southern state of Andhra Pradesh, a Bloomberg report says. Also yesterday, Emaar MGF Land Limited, the Indian unit of Dubai-based Emaar Properties, said it aims to raise some $1.7 billion in an initial public offering (IPO). A statement released at the World Economic Forum summit in New Delhi said Rakindo will develop 50 million square feet of residential, commercial and office space in the next seven years in India, which is seeing tremendous growth in the construction industry.

“Our entry into the Indian real estate market couldn’t be better timed,” Bloomberg quoted Rakindo’s managing director, Prasad Koneru, as saying. He said Rakeen has already invested Dh367.16 million ($100 million) in India, the world’s second most-populous country, and will spend another $100 million for land acquisitions over the next few months. Rakeen plans to raise funds in India and will acquire 5,000 acres of land in addition to its existing 4,000 acres.
The Andhra Pradesh project involves the building of an alumina plant with a capacity of 1.5 million metric tonnes, an aluminium smelter and a 350-million tonne bauxite mine. Mohamed Alabbar, chairman of Emaar Properties, said the state-owned Andhra Pradesh Mining Development will mine bauxite for the aluminium company.

Source: Khaleej Times

4th December, 2007

Mukund bags Rs.154-cr IISCo Order

Mukand Ltd has bagged a Rs 154-crore order from SAIL-IISCO, which is in the process of expanding its capacity at Burnpur in West Bengal. The order for the installation of a universal section mill, which is part of the 2.5 million tonnes new stream expansion of IISCO Steel Plant, was awarded to a consortium led by SMS Meer GmbH of Germany. The Indian portion of the order bagged by the consortium is valued at Rs 299 crore, of which Mukand’s share is Rs 154 crore. Mukand will execute part of the order along with its group company Mukand Engineers Ltd. The mill is scheduled to be commissioned in 24 months. Mukand Ltd shares, on the BSE, gained 11 per cent to Rs 93.50, while Mukand Engineers’ rose 8.95 per cent to Rs 34 on

Monday.

Source: The Hindu Business Line

3rd December, 2007

Jindal Stainless to invest Rs.9,600 cr in Orissa

Jindal Stainless Ltd (JSL), the country’s largest stainless steel manufacturer, in the next three to four years will be investing around Rs 9,600 crore in its Orissa project. The company has already invested Rs 2,250 crore for setting up a greenfield integrated stainless steel plant in Orissa with capacity of 1.6 million tonnes (mt) per annum. JSL is also in the process of increasing its annual melting and hot rolling capacity at its Hisar plant to 900,000 tonnes from the current 600,000 tonnes by 2010.

“The project in Orissa is being commissioned in three phases. The first phase has already been completed with an investment of Rs 2,250 crore. The second phase will entail an investment of Rs 5,600 crore and the third phase would seen an investment in the region of Rs 3,000 crore to Rs 4,000 crore,” Mr N.C. Mathur, Director (Corporate Affairs), Jindal Stainless Ltd, told Business Line.
In the first phase of the project, the company has set up a ferro alloy plant with a production capacity of 1.5 lakh tonnes and two ferro-chrome furnaces which have already started production. “Also the ferro manganese plant with a capacity of 50,000 tonnes per annum (TPA) has started operations and the silico manganese plant with a capacity of 50,000 TPA and a 250 MW power plants are set to be begin operations soon,” he added.

In the second phase, JSL is looking at commissioning a 0.8 mt plant by December 2009 and another 0.8 mt in the third phase. According to Mr Mathur, out of the Rs 5,600 crore being invested in the second phase, Rs 3,400 crore was raised through loans, $250 million from ECBs and the rest from internal accruals. “Once the third phase of the Orissa plant is commissioned by 2010-11, for which we have already ordered the equipment, we will have a total capacity of 1.6 mt. So along with the brownfield expansion in Hisar the total production at both the plants is expected to touch 2.5 million tonne by 2010-11,” Mr Mathur added.

Pact with Mahanadi coalfields

JSL, recently, also signed an agreement with state-run Mahanadi Coalfields Ltd and Shyam DRI Power Ltd to form a joint venture, Mahanadi Jindal Shyam DRI Company Ltd (MJS DRI), to mine coal from the Utkal-A and Gopalprasad block west project located in Talcher area of Orissa’s Angul district. Mahanadi Coalfields will have a 60 per cent stake in the joint venture, while JSW Group and Jindal Stainless will together hold 31 per cent. The remaining stake will be held by Shyam DRI Power Ltd. “The two coal blocks are estimated to have reserves of more than 700 million tonnes and the investment is expected to be around Rs 500 crore, mainly for land acquisition and rehabilitation,” he said. “We will be outsourcing the coal mining and the joint venture plans to float global tenders on a cost-plus basis,” he added. The proposed company is scheduled to produce 15 mt of F grade coal in three years.

Source : The Hindu Business Line

4th December, 2007

Patel Engg bags Rs.119 crore order from Koyna Dam

Infrastructure construction firm Patel Engineering on Monday said it has secured a Rs 118.85 crore order from the Maharashtra government for civil works of Koyna dam. The Mumbai-based firm informed the Bombay Stock Exchange that it has bagged the order for civil works of Koyna dam foot power house from the state Water Resources department. "The order is a confirmation of our technology expertise in niche areas," Patel Engineering Director Sonal Patel said. In 1999, Patel Engineering was the first construction company in Asia to have executed double lake tap technology at works for Koyna Stage IV project, she added. The project work also includes construction of tunnels and shaft. The firm has appointed Norway-based Norconsult AS as the consultant to the project.

Source : The Hindu

3rd December, 2007

Adhunik Group plans to invest 72 billion ruppes in West Bengal

Adhunik Group plans to invest 72 billion rupees in four years to set up steel and cement plants in the eastern state of West Bengal, a senior official said on Monday. It will set up a 1.1 million tonnes per annum integrated steel plant and another 1 million tonnes per annum cement plant in 2,300 acres of land, Manoj Kumar Agarwal, managing director of Adhunik Metaliks, told reporters. The project will also have 1,000 megawatt captive power plant, he said. The project will be implemented by group's unlisted unit Adhunik Corp Ltd, he said. "We will fund the project through mix of debts and internal accruals." Construction of the plant will start next year and start production by 2011, he said. Adhunik Metaliks, the flagship firm of the group, produces alloy steel for the automotive components and forgings industry. It also produces steel TMT bars used in the construction. Shares of Adhunik Metaliks ended up 9.98 percent at 191.20 in a firm Mumbai market.

Source: The Economic Times

3rd December, 2007

Siemens metals bags euro 80 mn order from SAIL

Siemens Metals Technologies on Friday said it has received an 80 million euro order from SAIL to supply caster's for the modernisation work at the company's IISCO steel plant. The order is for the supply of two new 6-strand billet casters and one new 4-strand bloom-beam-blank combi-caster to be installed at the company's IISCO steel plant in Burnpur, West Bengal, the company said in a release. Siemens Metals Technologies is a division of Siemens Industrial Solutions and Services (I&S) group. The new casters are a part of the ongoing modernisation and capacity expansion project at SAIL's IISCO steel plant. In addition to engineering, supply of equipment and installation of electrics, Siemens Metals Technologies will also provide advisory services for erection, commissioning and training for all three casters, the release said.

Source: The Economic Times

30th November, 2007

Videocon buys 2000 acres land in West Bengal

The Videocon group, which signed a memorandum of agreement (MOA) with the West Bengal government for a Rs 15,000 crore steel and power project last month, has directly negotiated with land losers near Asansol for 2,000 acres.

The direct negotiation with the landowners was a clear deviation from the West Bengal government’s stance that the land would be acquired by the government agency West Bengal Industrial Development Corporation (WBIDC).

Venugopal Dhoot, chairman, Videocon Group said, the group had negotiated with 250 landowners who hold around 2,000 acres for land. Around 95 per cent of the landowners pted for compensation in the form of cash.

The group had also given an option of shares in the proposed joint venture being set up for the project. However, most of the landowners monetary compensation. The package was over and above the one job offered to each family by the company.

Videocon is yet to take possession of the land since the West Bengal Urban Land Ceiling Act does not permit acquisition of such large tracts of land by industry.

Source : Business Standard

1st December, 2007