Ongc notifies four discoveries last month

1.0 ONGC notifies four discoveries in a month (21st Jan to 24th Feb 2008)1.1 ONGC announced, after its Board meeting held on 25th February 2008, that it has notified to DGH four discoveries of Crude Oil and Natural Gas since the last Board meeting on 21st January 2008. Three of the discoveries are onland and the fourth in Offshore. 1.2 The onland discoveries have been made in well Kosamba-41 and well Chaklasi-8, both in western onshore and in well Mekrang-7 in Assam. The offshore discovery has been made in well B-12-11 in PEL Block BOFF 1,2,3 on the Arabian Sea. 2.0 The Board of Oil and Natural Gas Corporation Ltd. (ONGC), in its meeting held on 25th February 2008, has cleared the following three major investments for growth-oriented projects:2.1 Reconfiguration of Dahej Petrochemicals Project: The revised configuration of Dahej Petrochemicals Project has been approved. The project is being implemented by ONGC Petro-additions Ltd. (OPAL), where ONGC has management control with 26% equity holding. The project was initially configured with a SBR and a dedicated HDPE unit that have now been removed in view of current market demand-supply dynamics. The Capex has come down from Rs. 13,540 Crore to 12,440 Crore, with ONGC’s equity contribution at Rs. 970 Crore. The IRR of the Project works out to be 15.4%. The reconfigured project is expected to be completed by February 2012.2.2 Additional Processing facility at Hazira: ONGC has decided to augment the gas-processing capacity of its Hazira complex. The additional units would comprise of a Gas-sweetening unit with 6.3 MMSCMD capacity, a Gas-dehydration facility of 6.3 MMSCMD, Dew Point depression units of 5.6 MMSCMD and Utilities and Off -site facilities, cooling tower, sub-station & caustic soda ash unit. The capacity augmentation will require an investment of Rs. 370 Crore. EIL is the consultant for the project which is planned to be completed in 38 months.2.3 ONGC to take 30% additional stake in Gulf-A: ONGC will take up additional Participating Interest (PI) of 30 per cent in the development phase of Gulf-A in the Joint Venture block of CB-OS-1, at the northern-most end of Gulf of Cambay. The ONGC’s share (55.26%) of Capex would be US$ 57.209 million. The other partners in this JV are Tata Petrodyne and HOEC.3.0 Recognition for Cost Management: ONGC’s cost management practices and systems were recently recognized when the oil major received the Amity Award for Excellence in Cost Management. The award was given on 22nd February 2008, during an international conference INBUSH-2008 organized by Amity International Business School, Noida.

Source: prdomain.com

25th February, 2008

Orix invests $20 mn in Maithan's steel unit

Orix Corporation, the multi-billion dollar Japanese conglomerate, has made $20 million investment in a Rs 600 crore steel project being set up by Kolkata-based Maithan group. Maithan is setting up a 4 lakh tonne capacity plant under Maithan Ispat in Duburi, near Bhubaneswar, and will produce structural steel-heavy sections.

The Rs 1,000 crore Maithan group has interests in ferro-alloys, refractories, sponge iron and steel. Maithan group Chairman Basant Kumar Agarwal confirmed the investment. According to the company, structural steel has been commissioned and heavy sections will be commissioned in March. In 2004, the group had signed a memorandum of understanding with the Orissa government, under which captive ore has been assured.

The company is hoping strong demand for its products from oil & gas, manufacturing, infrastructure and real estate sectors and global markets. The group has five manufacturing units in Jharkhand, West Bengal and Meghalaya.

Source: Business Standard

26th February, 2008

Sinosteel to invest in Jharkhand & West Bengal

China-based Sinosteel today said it would set up its first integrated steel plant in Jharkhand and a cold forged rolls unit at Haldia in West Bengal. "We are in the mining, designing and equipment supply business and participated in the construction of big steel plants in China, but it will be for the first time that we are putting up an integrated steel plant," Hongsen Wang, Managing Director of Sinosteel India Private Ltd, told reporters here on the eve of the International Steel Seminar being organised by Steel Scenario journal. Wang said Sinosteel has submitted the proposal to the government for setting up the steel plant in Jharkhand for which the company would invest two billion dollars. "It will be a five-million-tonne plant, but in the first phase we will start with two-million-tonne," he said, adding that 3,000 acre would be required for the project.

He said the company has prepared a report for its plant which would come up between Silli and Chandil and was being vetted through MECON. Asked whether Sinosteel has tied up for iron ore supply for its Jharkhand plant, Wang said, "We will try to get a captive mine and apply for the mining lease. We will, however, not wait for the captive mine. We will start construction as soon as we get the land." On the cold forged rolls unit in West Bengal, he said 30 acre had been acquired for the project in Haldia which would be set up at a cost of 25 million dollars.
Source: The Hindu

25th February, 2008

SAIL TO INVEST Rs.10,000 cr in Nilachal Ispat Nigarm

Intensifying the efforts to retain its numero uno position, state-run steel giant SAIL on Sunday said that the merger of Nilachal Ispat Nigam with itself would definitely create a greater synergy and pledged to invest Rs 10,000 crore to ramp up its production capacity to 3 million tonne. "We are seriously interested to merge Nilachal Ispat with us as it would create a greater synergy. We have decided to invest Rs 10,000 crore to ramp up its production capacity to 3 million tonnes per year," Steel Authority of India Limited (SAIL) Chairman Sushil Kumar Roongta said. The proposed merger received a setback after the Orissa government conveyed its disagreement on Nilachal Ispat Nigam's (NINL) valuation by IDBI Capital last September. IDBI Capital, appointed by the state government, pegged the share value of NINL at Rs 27 which neither the state nor the steelmaker's key stakeholders agree. They argued that IDBI Captial did not taken into account the iron ore mines granted in favour of NINL while evaluating prices.

NINL has a 1.1 million tonne capacity integrated iron and steel plant in Orissas Jajpur district. The company has a captive iron ore mine given by the Orissa government. The mine, located in the coastal state's Keonjhar district covers an area of 1,798 hectares and has reserves estimated at 100 million tonnes. The reserves are expected to meet the requirements of a plant with capacity of a little more than two million tonnes. NINL is jointly promoted by MMTC and the Industrial Promotion and Investment Corporation of Orissa (IPICOL). MMTC owns the majority stake in the steel company, while the Orissa government owns 26.29 per cent through IPICOL and Orissa Mining Corporation while some stake is also held by MECON. But the proposal received a filip when the top brass of the Commerce Ministry recently held elaborate discussions with MMTC and SAIL and after due deliberations asked both the state-run organisations to expressly finalise their respective views on the proposed merger. The ministry will meet them next month and is expected to formulate its views after giving them an audience.

The Commerce Ministry officials were understood to have pointed out that valuation of the company could not be an impediment for the merger as that could be mutually agreed upon by the stakeholders and suitors. Moreover, MMTC has been told that managing a steel plant was not within its core area of competence, a source said. Besides, the Steel Ministry has also sought the consent of Orissa government and MMTC on the valuation to facilitate the merger and circulated a draft note for the consideration of the Committee of Secretaries (CoS). The CoS is also slated to meet soon to begin deliberations on the future course of action of the plant. Adding a new dimension to the merger issue, another state-run steel company Rashtriya Ispat Nigam is also understood to have expressed its keenness to merge NINL with itself saying the merger would create a greater synergy between the two, besides ensuring raw material security for itself. RINL has no captive mines. Meanwhile, the Orissa-based steelmaker is planning to offload at least 10 per cent stake through an initial public offering soon to raise about Rs 80 crore, and the Steel Ministry has sought the Committee of Secretaries' opinion to bail out the PSU from its current fiscal morass. "NINL management will seek the approval of its Board of Directors on diluting at least 10 per cent stake through an IPO soon to mobilise about Rs 80 crore to infuse a fresh lease of life in its operations and enable it withstand the stiff competition from other steelmakers," a Steel Ministry official said.

Source: The Times of India
24th February, 2008

2.1 mta cement plant at Bokaro

A memorandum of understanding was signed between Bokaro Steel managing director V.K. Srivastav and executive vice-chairman of Jaypee Industries S.K. Sharma in Delhi yesterday. SAIL signed the shareholder’s agreement with Jaypee Associates Limited to set up a 2.1-million-tonne cement plant here. In the joint venture company, Bokaro Jaypee Cement Limited, the PSU will have 26 per cent of equity participation. The total project cost has been estimated at Rs 405 crore. Srivastav will be the first chairman of BJCL, while R.K. Singh of Jaypee will be the first managing director.

Source: The Telegraph

23rd February, 2008

ONGC Tripura gets bids only from BHEL & Alstom

Leading engineering, procurement and construction (EPC) contractors Siemens, Reliance EPC and Larsen & Toubro (L&T) have refrained from submitting bids for EPC contract for the 740 MW gas-based power project by ONGC Tripura Power Corporation (OTPC). Though these Companies picked up EPC bid, they kept themselves away from its submission. OTPC received bids only from Bharat Heavy Electricals Ltd (Bhel) and Alstom.

FE had reported in November 2007 that OPTC had extended the EPC submission period till December as it wanted participation from more players. The company would need at least a month or two to evaluate these bids. The cost of the power plant has been estimated at around Rs 2,265 crore. The company has estimated that the project would be commissioned by 2011. OTPC sources told FE "The sucessful bidder will have to sign a long term spares and services contract to hamper functioning of the power project for want of spares and services. In order to maximize the efficiency of the machine and minimize the gas consumption, latest state-of-the-art technology Advanced Class Machines (ACM) would be deployed for the generation project, which would comprise the latest Frame-IX (or equivalent) gas turbines.These machines have a conversion efficiency of 57-58% (ISO conditions) as compared to 35% for many of the gas-fired power plants operating in the North East. This results in lower consumption of gas per unit of energy output and hence reduces the variable cost of generation. "

According to sources, the OTPC finalised the generation capacity of 740 MW after a detailed Transportation Logistic Study. It was carried out as the transportation infrastructure in North-Eastern sector is not developed much considering the requirements of transportation of heavy power plant equipment during construction phase. OTPC had identified this problem at a very early stage of the project itself and as a pre-emptive action completed the study. All major heavy and large size equipments would be transported by waterways from Kolkata to Karimganj / Badarpur in lower Assam - passing through Bangladesh and subsequently by roadways from there to the project site at Pallatana.
Source: The financial Express

19th February, 2008

Bharat Forge setting up steel & power plant in Bengal

Bharat Forge, flagship of the Kalyani Group of companies, today signed a MoU with the West Bengal Government to set up a 1-million-tonne per annum steel plant in the State. The company has proposed to invest Rs 6,500 crore through Kalyani Steel, the Group company. The project involves a captive Rs 2,000-crore (out of the total investment) 500-MW power plant besides a downstream unit. The balance will go into building of the steel unit, Bharat Forge’s Executive Director, Mr Amit B. Kalyani, said here today. Though land for the project has not yet been finalised, the company is looking at either Durgapur or areas adjacent to Salboni, where JSW Steel’s proposed steel plant is coming up, as likely locations, he added.

The project is expected to provide direct employment to about 3,000 people and indirect jobs to many more, the State Industry and Commerce Minister, Mr Nirupam Sen, said at an interactive session at the WBIDC office. The MoU was signed between the Bharat Forge and the two Government agencies – WBIDC and West Bengal Mineral Development and Trading Corporation in the presence of the Minister. “We were not present in this part of the country till now and have been negotiating with the State Government for the last one and half years for this project. Once the location for the project is identified, we will work towards a speedy realisation,” Mr Kalyani told reporters. The company is now awaiting DPRs, expected to be ready in the next 12 months. The project is expected to go on stream within three years from zero date, Mr Kalyani clarified.

The plant will produce steel bars, besides other steel components for supply to industries like shipbuilding, power plants, railways, automobiles, cement and mining in the eastern part of the country. “We will also examine export possibilities at a later stage.” While coal will be arranged from within the State, the company will make ‘separate arrangements’ for iron ore. A forging unit will also come up later on, he added.
Source: The HIndu Business Line

21st February, 2008

Rane group to set up auto component plant in Singur

Chennai-based Rane Group plans to supply auto component parts to the Tata Cummins factory in Jamshedpur from its Singur facility. The group is setting up its first manufacturing facility in Bengal at Singur as part of the vendor park for the Tata Nano. “We are exploring options to leverage our Singur facility for Nano to supply to Tata Cummins as well,” said group chairman L. Ganesh. According to Ganesh, the auto component maker will invest Rs 20 crore in the Singur unit, which will be set up on a five-acre plot. It will be ready to operate at full capacity within two years. In phase one, the factory will be built in over 600 square metres of land.

“We will have a better idea of plans in phase two by the end of this year,” said S. Parthasarathy, president of Rane Madras. The group hopes to clock a turnover of Rs 75 crore by supplying auto components for the Nano and is expected to provide employment to 350 people in the state. Rane Group will supply rack and pinion steering gears, lower control arms, steering columns and seat belts for the Nano. Of the eight companies in its fold, Rane Madras, Rane NSK Steering System and Rane TRW Steering Systems will invest in the Bengal project.

The group, which garners a majority of its turnover from power steering, manual steering, suspension systems and valve train components, is eyeing a turnover of Rs 1,500 crore this fiscal against Rs 1,365 crore last fiscal. Tata Motors contributes around 25 per cent to the company’s turnover and after the Nano, this is expected to increase by 4-5 per cent. The Rane Singur plant, where a bhoomi puja was held today, will be operational by July 2008. The auto component sector in India is estimated at around $5-6 billion, with a growth rate of over 10 per cent.

Source: The Telegraph

19th February, 2008

ONGC lines up Rs. 15k cr to revamp old equipment

Restructuring will start with the company's assets in Assam.
Oil and Natural Gas Corporation (ONGC) will revamp its ageing infrastructure at oilfields across the country. The country's largest oil and gas production company will shell out around Rs 15,000 crore for this purpose. The company produces around 26 mt of crude oil a year from its fields in the country, while its three fields in Assam account for around 1.1 mt a year The revamping will start with its assets in Assam. The company will soon float tenders worth Rs 2,500 crore, a senior company executive said. ONGC has three fields in Assam - Rudrasagar, Lakwa and Geleki. The Rudrasagar field is almost 40 years old.

"Replacing the equipment has become paramount as they are decades old. There are frequent leaks in pipelines from producing wells which lead to shutdowns," said the executive. The crude oil and gas processing plant attached to the Lakwa field is also old. The unit trips if it is run for over five minutes. "Some gas that we can recover is thus lost," the executive added. Once Assam Renewal Project is completed in three years, ONGC plans to increase oil production from these fields by 20 per cent.

The company produces around 26 million per year of crude oil from its fields in the country with around 1.1 million tonne per year of oil from its three fields in Assam. Earlier, production from Assam was 1.5 million tonne per year Once the Assam mission is completed, the company will take up the old equipment in the company's fields in Gujarat and the east coast. The Ankleshwar and Cambay fields in Gujarat started production in the mid-1960s.

"We will now inject water and gas into the wells to keep the pressure in the wells intact. However, it could be a little too late as much of the reservoir pressure has already been lost," an ONGC executive from Assam said. The company will also undertake enhanced oil recovery methods to recover more oil once the water and gas injection project is over. "All of that will require more investments and will take some time," the executive added. "We must complete these projects to increase production as no major new discoveries have taken place in the last decade," the ONGC executive said.
Source: Business Standard

19th February, 2008

West Bengal hands over land for chemical hub

Marking an important step in its plans to set up a chemical hub in the State, the West Bengal government on Friday handed over a ‘certificate of possession’ to P.C. Ray Chemicals Private Limited for conducting studies to set up a petrochemical hub on the Nayachar island.

Chief Minister Buddhadeb Bhattacharjee said he got a positive response from Union Chemicals and Fertilizers Minister Ramvilas Paswan on the project. “We were asked to identify a location and we have done so. I had a talk with him and his response was positive,” Mr. Bhattacharjee said adding he had held talks with Prime Minister Manmohan Singh too.

The State government had proposed to set up the Petroleum, Chemicals and Petrochemicals Industry Region (PCPIR) at Nandigram but changed the venue following opposition from the locals.
State Industries Minister Nirupam Sen said Nayachar was chosen “on the basis of an all-party meeting.” Mr. Sen said it was decided to name the company after Bengal’s great pioneer academic-entrepreneur Acharya Prafulla Chandra Ray, who laid the foundation for many pharmaceutical and chemical business units.

While the West Bengal Industrial Development Corporation would hold 49 per cent share in the joint venture company, the majority share (51 per cent) would be held by the New Kolkata Infrastructure Development Company in which the Salim group is a partner. Prasun Mukherjee, whose Universal Success is also a partner in the NKID, was present when the certificate of possession was handed over. Mr. Mukherjee said the Jurong Town Corporation was appointed consultant for carrying out studies. A master plan would be made after soil tests. It would take two years to conduct the feasibility study.

Source:
16th February, 2008

Hooghly Power plans 2nd coke unit in Orissa

Hooghly Met Coke and Power, the majority-owned subsidiary of Tata Steel, is planning to invest Rs 1,000 crore to set up another 1.6 million tonne capacity metallurgical coke plant, a top company official said. “We are planning to set up a second metallurgical coke plant having the same capacity and at the same investment that we have made in our West Bengal plant,” Managing Director Binay K Singh said on the sidelines of an environment seminar.

Inability to get additional land at Haldia has forced Hooghly Met Coke to plan for the second facility in Orissa. “We would have ideally expanded our existing plant and had asked for 200 acres from the West Bengal government. But since the land has not been given, we have started scouting for sites in Orissa,” Singh said. Hooghly Met Coke’s existing plant in Haldia is located on the premises of a closed Hindustan Fertiliser Corporation unit.

Final call on the new project, including the site selection, will be done in September when the existing plant goes on stream. Hooghly Met Coke, meanwhile, has just started its commercial production. “We have started off with two modules of 200,000 tn capacity each and the full production is being supplied to Tata Steel,” Singh said. The Haldia plant consists of eight modules of 200,000 tn capacity each, and all of them will go on stream by October.

Source: Business Standard

16th February, 2008

NTPC, BSEB sign JV for power project at Nabinagar

The Bihar State Electricity Board (BSEB) and NTPC have signed a joint venture agreement (JVA) to set up, operate and maintain a 1980 MW coal-based thermal power plant at Nabinagar in the Aurangabad district. The JVA was signed by the BSEB Chairman Swapan Mukherjee and NTPC Chairman-cum-Managing Director T. Sankaralingam.Bihar Chief Minister, Nitish Kumar, was also present during the signing of the JVA which involves an investment of around Rs 9000 crore for setting up the plant. Talking to reporters after the JVA was signed the NTPC Chief and Kumar said, "The joint venture shall have equal participation between NTPC and BSEB with power allocation to the BSEB up to 75 per cent and 25 per cent of power remaining with the JVA, which will be distributed to other states. Kumar said the state needed a major shift in planning strategy as it has alarmingly low per capita power consumption." Both NTPC and BSEB will have equal shareholding in the proposed joint-venture company. Nitish Kumar said, it was necessary to attain the national average of per capita power consumption for ensuring all-round growth of the state. Kumar said the JVA would help in building the economy of the state and asked the BSEB workers not to proceed on strike over division of the board and said the state government had initiated a number of measures to improve the power scenario as well as working conditions of the employees. Sankarlingam said out of Rs 9000 sanctioned for the Nabinagar project, equity share of the BSEB and the NTPC will be to the tune of Rs 1350 crore each and the rest will be raised through market borrowings.
Source: saharasamay.com

15th February, 2008

Era Infra receives orderworth Rs.1,262.9 mn from SAIL

Era Infra Engineering (construction and contract division) has received the contract worth Rs 1,262.9 million from Steel Authority of India (SAIL). The contract includes Structural Works for New CRM Complex at SAIL-Bokaro Steel Plant 7.0 MT expansion project. The contract duration is 24 months. Era Infra Engineering is a fully integrated infrastructure development company participating in India`s core infrastructure and construction sectors. The company is engaged in the development and construction of highways, airports, power plants, industrial projects, institutions, railways, and residential and commercial complexes.

Source: Myiris.com

13th February, 2008

Foundation laid for 1000 MW Durgapur Steel Thermal Power Project of DVC

The Union power minister Sushilkumar Shinde laid the foundation stone for 1,000 mw Durgapur Steel Thermal Power Project of Damodar Valley Corporation (DVC) on Monday. The upcoming DVC power project (2x 500 mw) at Andal in Durgapur is being set up at an investment of Rs 4,500 crore. The total land requirement for the project is 800 acres. The plant is scheduled to generate power from 2010.

DVC is targeting a generating capacity of 11,000 mw by 2011-12 from the present 2,210 mw. The total capital expenditure for adding this capacity is Rs 24,000 crore. The corporation is in the process of implementing 2x250 mw plant at Mejia.
12th February 2008

Bengal to get the first tidal power plant in the country

Bengal is set to get the first tidal power plant in the country. Buddhadeb Bhattacharjee made the announcement at the opening session of a workshop on “Energy: Crisis and Remedies” conducted by IIT Kharagpur and the West Bengal Renewable Energy Development Agency here today. “I’ve just been informed that a tidal power pilot project has been sanctioned on the Durgaduani river in the Sunderbans,” the chief minister said. The Centre will bear 90 per cent of the cost for the Rs 50-crore project. The 4MW plant, to be ready for generation by 2010, is expected to provide power to about a lakh people.

The renewable energy development agency and the National Hydroelectricity Power Corporation will together implement the project. “It has been in the pipeline for a long time and will be followed by one in Kutch, Gujarat,” said V. Subramanian, secretary of the Union new and renewable energy ministry. He praised Bengal and Gujarat for the political initiatives on renewable energy. The chief minister urged the participants from the energy industry, scientists and researchers to find alternatives to thermal power, which makes up 96 per cent of India’s energy sources. “We should concentrate on wind power and try to increase the number of hydel power stations,” he added. The power project to give light to the Sunderbans will be introduced in Jhargram, West Midnapore, and Darjeeling.

Bhattacharjee admitted that steps needed to be taken to reduce pollution from surface transport. “We are planning elevated trains to reduce pollution. We have identified the technology and are in the process of mobilising funds.” IIT Kharagpur, which offers a BTech course in energy engineering, is planning to start a centre for energy research. The renewable energy agency and the institute have set up a pilot plant on bio-diesel produced from jatropha seeds. The oil was used to light the lamp to start today’s workshop.

Source: The Telegraph

11th February, 2008

Arcelor Mittal allotted 7750 acres for Orissa steel project

The Orissa government has allotted ArcelorMittal, the world's largest steel producer, 7,750 acres of land to build a steel project in the state. The company also secured a licence to build a steel mill in Egypt. Arcelor Mittal India said it has got provisional approval from the Orissa government to acquire 7,750 acres of land to set up a 12-million-tonne steel plant and a township in the state. "We will set up a plant on 6,000 acres of land while 1,000 acres would be used to set up a power plant. The township will be established over the remaining 750 acres," Arcelor Mittal India CEO Sanak Mishra said in Mumbai.

The state government has earmarked 6,000 acres for the 12-million tonnes steel plant and a further 1,000 acres for a 1,500-megawatt power plant, Mishra, said. The company is also planning to set up a 1,500 MW coal-fired thermal power plant along with the project. The company has already got a coal mine on lease with a total reserve of 650 million tonnes along with four other entities. Mishra said the company is looking for additional land to rehabilitate people who might need to be relocated from the plant site.

ArcelorMittal also received a licence from the Industrial Development Authority (IDA) of Egypt's ministry of trade and industry to construct a steel plant in that country. The licence was auctioned in a competitive bidding process and ArcelorMittal's winning bid was approximately worth $60 million., Aditya Mittal, CFO and member of the ArcelorMittal group management board, said. Under the terms of the licence, the plant will produce 1.6 million tonnes of steel using DRI technology, and 1.4 million tonnes of billets through the electric arc furnace route. Construction of the plant, which will be located close to the northern Red Sea coast, is expected to start in 2009. "We are pleased to have been successful in this auction. This forms part of our three-dimensional growth strategy to look for opportunities to expand our business in the three key areas of geography, product and value chain. The Middle East is a growth market for the steel industry and it makes sense for ArcelorMittal to expand its presence in the region," Aditya Mittal said.

Source: domain-b.com

11th February, 2008

IOC plans Rs.5000 cr paraxylene plant at Haldia

IndianOil plans to seek approval from its board next month, for the Rs 5,000 crore paraxylene unit at the Haldia refinery. MCC PTA India Corporation Pvt. Ltd. (a subsidiary of Tokyo-based Mitsubishi Chemical Corporation) has set up a plant for producing purified terephthalic acid (PTA) - Paraxylene produced at the proposed plant will find ready use as a feedstock in MCC's PTA plant. The paraxylene facility will be located in the 86-acre additional land recently acquired by the company in Haldia from the port trust authorities. IOC is currently commissioning Rs 1,600-crore hydrocracker project in Haldia and has recently firmed up plans for setting up a delayed coker unit for increasing the yield. This plant, if approved, will be IOC's fourth petrochem facility. The others are :A full-fledged petrochemicals complex, including naphtha cracker at Panipat, due to be commissioned in October-November 2009. 15 mln ton refinery and aromatics facility producing paraxylene and benzene at Paradip. Construction of the refining and aromatics complex is expected to begin in April-May. A 360,000 tpa paraxylene unit at Koyali refinery in Gujarat at an estimated cost of Rs 2,000 crore.

Source: Plastemart.com
7th February, 2008

Pengg Usha Martin Wires goes on stream

The first phase of Pengg Usha Martin Wires Private Limited, a company producing oil tempered wires was inaugurated in Ranchi, Jharkhand on Thursday.The company is a joint venture between Joh Pengg AG, Thoerl, Austria and Usha Martin Limited. Joh Pengg AG, Thoerl, Austria - an TS 16949 company is a pioneer and global leader in the production of oil tempered wire for the automotive industry.Joh Pengg AG will hold 60 per cent equity in the joint venture while Usha Martin will hold 40 per cent. The joint venture agreement between the two companies was signed on March 21. The infrastructural facilities at the plant has been set up in such a manner that the future expansion will be faster and cost effective, said a press release added.The cost of first phase of the project is Rs.46 crore. Speaking on the occasion, Gottfried Pengg, Chairman, Joh Pengg said, 'We are confident that the combined resources of our two companies will make this enterprise highly successful.'Commenting on the development, B K Jhawar, Chairman, Usha Martin said, "Our Group is always committed to introducing high quality value added products with world class technologies and our joint venture with Joh Pengg of Austria to manufacture oil tempered wires is yet another initiative in that direction."

Source: Newindpress.com

8th February, 2008

Tata Power completes Maithon Power Project financing

Tata Power Company Ltd (Tata Power) has said that the Maithon Power Ltd (MPL), a 74:26 joint venture between Tata Power and Damodar Valley Corporation (DVC) announced completion of its financing for the 1050 MW coal based thermal power project, b eing set up in Dhanbad District of Jharkhand State. The Project estimated at a cost of Rs 4,450 Crores is being funded on a debt-equity ratio of 70:30. The debt for the project is Rs 3115 Crores and does State Bank of India (SBI) lead being financed by various banks. Taking cognizance of the huge power deficit in the country, the promoters namely Tata Power and DVC have infused equity in excess of the upfront equity requirement as stipulated by the lenders. The promoters have allocated the funds prior to the financia l closure to ensure the project is commissioned in time. The project will comprise of two generating units of which the first unit of 525 MW is to be commissioned by October 2010.

Source: The Hindu Business Line

5th February, 2008

Power, steel plants in Purulia

The Jain group plans to build a 1,000MW power plant and a 5mt steel mill at Raghunathpur in Purulia. “We have submitted a detailed project report for these two plants to the Bengal government and we hope to sign a memorandum of understanding within this fiscal,” said Manoj Kumar Jain, chairman of the group, which was incorporated in 2001. The group’s wholly owned subsidiary, Jain Steel & Power, which is setting up a 0.5mt integrated steel plant at Jharsuguda in Orissa, will build the proposed power and steel plants at Raghunathpur. “We have already identified the land where the projects will come up and will start land acquisition as soon as we get the government’s approval,” Jain said.

The Purulia project will involve an investment of Rs 5,000 crore in the first phase, Jain said. “A Dubai-based financial institution has agreed to invest in the steel and power projects,” he added. “The construction of the Rs 400-crore Orissa project, comprising a sponge iron unit, a power co-generation plant and a steel billet mill, is almost complete and it will go on stream from March this year,” he added. Jain Energy, another subsidiary of the group, signed a memorandum of understanding with the Chhattisgarh government on February 1 for a 1000MW coal-based power project in the Janjgir-Champa area. “Total investment for the power project has been estimated at Rs 5,000 crore, of which nearly Rs 3,500 crore will come as borrowings from banks and financial institutions and the remaining Rs 1,500 crore will be funded as equity capital,” Jain said.

According to him, the company has already tied up with banks and financial institutions for the loan. “As for the equity capital, part will come from the group’s internal accruals and the rest will be raised through a public issue by diluting the promoters’ stake in Jain Energy,” Jain said. The initial public offering (IPO) of Jain Energy will be made sometime in the first half of the next calendar year.
The company has applied to Coal India Limited for the supply of fuel for its Chhattisgarh power project, which will be completed in 2011. But before diluting the promoters’ stake in Jain Energy, the group is planning to tap the capital market in March-April this year with a maiden offer in flagship Jain Infraprojects, set up in 2001 to undertake road construction and civil engineering projects. “We (promoters) are planning to sell our holding in Jain Infraprojects up to 25 per cent of post-issue equity capital and float the IPO in March-April this year,” Jain said.

Source: The Telegraph

Jain Energy plans Rs.5000cr power plant in Chattisgarh

Jain Group of Industries a fast growing business conglomerate, plans to foray into Indian Power Sector by setting up 1000MW power project in the state of Chattisgarh. The project would be developed by one of the Group Companies JAIN ENERGY LTD. Jain Energy Ltd, has signed a Memorandum Of Understanding (MOU) with the Government of Chattisgarh today for developing a Power plant in the state. Jain Energy plans to set up a 1000 MW coal based power unit at Balpur of Janjgir – Champa district. The plant will be spread over 1,000 acres of land. The estimated investment in this project would be Rs.5000 Crore and the project is scheduled for commissioning in 2011.

Speaking on the occasion, Mr. Manoj Kumar Jain, Group Chairman and Managing Director – Jain Group of Industries said “There is a huge business opportunity and we want to actively participate in the growth of the Power sector. We have set a target of setting up 5,000 MW power plants allover India in next 5 years.” In addition to Chattisgarh, the company is also in talks with Orissa, Jharkhand, Madhya Pradesh and West Bengal for similar kind of Power Projects. Apart from Thermal project, the group is also looking at venues in Hydro and Biomass sectors. Jain Energy Limited has given Expression of Interest for Hydro Power Projects in Arunachal Pradesh & Bhutan. In the Biomass sector it is already in the process of setting up 2(1 x 15MW & 1 x 10 MW) Eco-friendly Biomass based Power Plants, a decentralized generation of renewable energy power, at Dewas & Sehore district in Madhya Pradesh using mainly agro residues like cotton stalks, soya bean stalks, wheat straw.

Source: Moneycontrol.com

4th February, 2008

Highest investment proposals for Bengal

According to a study by Assocham Investment Meter, despite sharp ups and downs during the last one year Bengal has received the highest number of investment proposals among all the States in the third quarter of current fiscal. A total of Rs. 1,273.02 billion investments have been received in the State. Brand Buddha is actually the cause behind this growth and industrialisation is happening very fast in the State, said Assocham President Venugopal Dhoot in an interview. According to Dhoot investment of Rs. 2000 billion in coming five years would generate jobs for at least 1 to 1.5 million people in the State. He also admitted that Nandigram impasse did not reflect much on the States investment fate.

The Assocham study also revealed that during the same period Orissa was second in the investment list after Bengal. Orissa has received proposals of about Rs. 539.97 billion, Maharashtra has received investment proposals of Rs. 473.93 billion and Andhra Pradesh for Rs. 216.6 billion. Dhoot said that West Bengal had been receiving investment proposals mainly in steel, power and cement. He said that 10 billion Jindal Steel Project, which is apparently the biggest steel factory in Asia, is coming up at Shalboni which would create a massive job opportunity in the State. He also added that his company Videocon is also coming up in the state.
Amidst all these Pros for the state there are cons too. Many investors are still not very happy with the political structure and work culture of the state. Lacking work culture is affecting the IT industry in the State. The CEO of Limtex Infotech, Gunjan Poddar said that despite superb workforce and cheap labour the Bandh culture of the state had been affecting the IT industry very much. (ANI)

Source: Taindian News

5th February, 2008

Mesco plans over Rs.1000 cr investment

MESCO Steel Group plans to invest $2.8 billion (over Rs 1,000 crore) to expand its existing steel making capacity and set up a greenfield project that would together take its total capacity to 6.5 million tonnes per annum. MESCO, which owns Mideast Integrated Steel Ltd (MISL), would enhance its existing pig iron plant here into a 3.5 million tonnes steel plant with an investment of $1.2 billion, company's Managing Director Rita Singh told reporters here. Ms Singh said that the company would pump in $1.5-1.6 billion through joint venture route in setting up a greenfield steel plant here. The project is likely to be finalised within 2-3 months.

"We have already acquired 800 acres of land for this greenfield steel plant,'' she said, adding that this project would be set up by MESCO Kalinga Steel. Both these projects would be completed by 2010-11, she said. The funds for these projects would be arranged through suppliers credit and cash equity. "We are working towards financial strength and have cleared the dues of almost 90 per cent of our secured creditors. Embarking on an aggressive expansion strategy, we intend to ensure that MESCO takes a strong and successful leap in the steel industry,'' Singh said. MESCO, which has become debt free recently, is also planning to ramp up its pig iron production from the current 4 lakh tonnes to 7 lakh tonnes by 2008-09. The products would be utilised by its steel plants, she said. - PTI

Source: Hindu Business Line

5th February, 2008

Shyam to invest Rs.10000 Cr in Bengal

City-based Shyam Group today announced investment plans of close to Rs 10,000 crore in West Bengal's Burdwan district to set up a 1.1 million ton integrated steel plant and 1000 mw power plant. “We have signed a memorandum of agreement (MoA) with West Bengal Industrial Development Corporation (WBIDC), the state's nodal agency, for the steel and power plant at Jamuria near Asansol,” Shyam Group vice-chairman and managing director, Mr B Bhushan told reporters here today. “We would require 1,500 acres of land for the project and out of it, 35-40 per cent of land is with the government. We will begin the project by mid-2009 as it would be implemented in phases,” he said. Asked about financing the project, Mr Bhushan said that in the first phase, the investment would be Rs 2,000 crore and it would be funded through internal accruals and fresh capital to be raised via public offer and private placement.

Source: The Statesman

4th February, 2008

Avtec Ltd is set to commission its auto component unit

Avtec has started construction at the site. The company will invest Rs 150 crore in the project. Today C.K. Birla met Bengal chief minister Buddhadeb Bhattacharjee at Writers’ Buildings and apprised him of the group’s activity, which includes Hindustan Motors, in Bengal. Ravi Santhanam, managing director of Hindustan Motors, accompanied Birla to the meeting. “We are planning to make machine casting and forging there (in Kharagpur),” Santhanam said. Kharagpur will be the fourth plant of Avtec, which has units in Hosur, Indore and Chennai. The company was formed in 2005 by hiving off the auto components business from Hindustan Motors and partnering with private equity player Actis. Avtec reported a turnover of Rs 570 crore last year.

Source: The Telegraph

1st February, 2008

KEC International gets Rs.100 Cr contract

KEC International, a Mumbai-based leading power transmission equipment company, has bagged a contract worth Rs 56.87 crore from Power Grid Corporation of India for supply and construction of 400 KV double circuit transmission lines in Ranchi — Rourkela segment; and another order worth Rs 40.66 crore to execute a 132 KV transmission line in North Bihar on a turnkey basis.The first order is to be executed in the states of Jharkhand and Orissa and the job involves supply of towers, line materials, erection and commissioning. The length of the line is 141 kilometer and the project is scheduled to be completed by November 2009, according to a company release issued to the stock exchanges.The second contract from Powergrid is for supply and construction of 132 KV single circuit and double circuit transmission line in North Bihar . The line is associated with Phase -II project of Bihar sub-transmission system. The job involves supply of towers, conductor, insulator, other line materials, erection and commissioning. The length of the line is 150 kilometre and the project is scheduled to be completed by July 2009.

Source: Business Standard

1st February, 2008

Bokaro Steel to build Rs.25 billion cold rolling mill

Bokaro Steel Plant (BSL), the flagship unit of state-owned Steel Authority of India Ltd (SAIL), will set up a 1.2 million tonne cold rolling mill (CRM) at an investment of Rs.25 billion ($635 million). SAIL's board of directors Wednesday approved the project, Sanjay Tewary, chief of corporate communication of BSL, told IANS over telephone from Bokaro. Cold rolling is a metal working process in which metal is deformed by passing it through rollers to increase its yield strength and hardness. The project will be completed by 2010.

Source: IndiaPRwire

1st February, 2008