By Arshad Khan Cochin International Airport Ltd (CIAL) has said it has awarded the mechanical, electrical, and public health system contract for its new international terminal to Sterling and Wilson, a part of the Shapoorji Pallonji Group. "We are extremely happy that Sterling and Wilson has been entrusted with the opportunity of providing MEP solutions for Cochin International Airport's New International Terminal. Having already successfully completed the electrical installations for Terminal 3- Indira Gandhi International Airport, we are confident that our astute technical knowledge and in-depth resources will ensure that the New Terminal at Cochin International Airport will have a world class feel about it," said Prassana Sarambale, group vice-president business development, Sterling and Wilson Ltd. The new international terminal at CIAL will spread across a built up area of 1.5 million square feet. Sterling and Wilson's scope of work under this contract will include complete electrical installations, air-conditioning, fire protection, building management systems, plumbing management systems, vertical and horizontal transportation system, along with operation and maintenance work. The project is expected to be completed within a period of 18 months. CIAL is also the first green field airport in the country built with Public-Private Partnership and is ranked as the fourth largest international airport in India in terms of passenger traffic. Sterling and Wilson will also assume responsibility of providing complete operation and maintenance work after the commissioning of the new international terminal.
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Haider Ali KhanAround 50 projets with a total project cost of Rs 45,000 crore will benefit from Cabinet Committee on Economic Affairs decision to provide one time financial assistance via NHAI to revive and complete languishing national highway projects, according to India Ratings and Research (Ind-Ra). National Highway Authority of India (NHAI) has a budget of Rs 72,000 crore to spend on roads sector this year. Out of the total languishing highway projects as on 1 November, 2014, which have completed 50 per cent of construction, Ind-Ra estimates that 30 per cent are BOT (Build operate transfer) annuity-based projects while the balance 70 per cent are toll projects. It says that developers and lenders to the projects may be hesitant for such funding by NHAI, due to the clause of first charge by NHAI on the toll/annuity receivables of these projects (structural subordination) over the senior lenders’ debt service. Evidence suggests that in case of infrastructure debt funds - under non-banking financial company mode - existing lenders were reluctant to agree to the structural subordination on the termination of payments. There are delays in getting the appropriate approvals and clearances from various government agencies. While this has resulted in project deferrals and cost overruns, it has also increased the ratio of stressed loans in the banking system. Bank credit to the infrastructure sector grew at a compound annual growth rate of 39.5 per cent in the last 14 years. Outstanding bank credit to the infrastructure sector stood at Rs 10.07 trillion in March 2015 compared with Rs 9500 crore in March 2001. According to the June 2015 Financial Stability Report of the Reserve Bank of India, infrastructure constituted 15 per cent of total advances of the scheduled commercial banks, but had a much larger share of around 30 per cent in total stressed advances. After steel sector, roads account for the second largest amount of bad loans for the banking sector. The average daily road construction has dropped to 4.1 km in FY 2015 from an all-time high of 7.4 km in FY 2013.
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To fast-track the construction of transmission lines, the power ministry has proposed a compensation rate of 85 per cent of the value of land acquired for its fulfilment. Issuing guidelines for the payment of compensation for damages on the right of way, the ministry says that this land value will be determined by the district magistrate or the relevant authority. The percentage of compensation will be based on circle or other applicable rates for the tower base are which is impacted as a consequence of the erection of a pylon structure. Additionally, compensation up to 15 per cent of the land’s value will be paid towards its diminution in the width of an ROW corridor for the laying of transmission lines and the imposition of certain restrictions. Based on the categorisation of the land in question, the states will have the authority to decide the compensation. However, this compensation will only be available for transmission lines which are supported by a tower base of 66 kilowatts and more. Transmission lines below this stipulated figure, as well as sub-transmission lines, are completely excluded from the ambit of these guidelines. These guidelines have been framed based on a report that had been submitted by a committee headed by the special secretary of the power ministry. This report recognised that the Power Grid Corporation of India and states faced various difficulties the construction of transmission lines primarily because of issues related to the right of way. There is stiff opposition by landowners who have been demanding larger sums of compensation. The primary reason for this demand is that the land below towers and under the corridor invariably diminishes in value.
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The foreign investment arm of India's top oil explorer ONGC is targeting $10-$12 billion of oil and gas asset purchases over the next three years, including more corporate acquisitions, its managing director said.ONGC Videsh Ltd (OVL) hopes to capitalise on cheaper assets after a slump in oil prices and Prime Minister Narendra Modi's diplomatic efforts to boost the global presence of Indian firms."Earlier it was an asset-based (strategy) but now we are giving good consideration to M&A," Narendra K Verma, managing director of OVL, told the Reuters Global Commodities Summit."Our mandate is huge and we can acquire a larger portfolio through the corporate acquisition route," added Verma, who has overseen $7 billion in deals over four years.OVL, which produces about 175,000-180,000 barrels per day (bpd) from its overseas assets, wants to double output by 2018 and increase it six-fold by 2030.The firm has stakes in 33 oil and gas projects from Venezuela to South Sudan but its first corporate investment in 2008, buying Russia's Imperial Energy for $2.6 billion, did not turn out as planned with output slumping to 8,000 bpd from an estimated 60,000 bpd.Still, Verma said the firm was not put off and was "working on some opportunities where we could see a broader portfolio being available to us."HotspotsOVL last month concluded a deal to buy a 15 percent stake in Rosneft's Vankor field to secure access to about 66,000 bpd of oil production at the Siberian field.But Verma said Africa and Latin America were likely to be the hotspots for new investment with some companies financially stressed due to high capital expenditure and low oil prices.OVL is also better placed than some of its global peers to invest due to the financial strength of its parent, state-run Oil and Natural Gas Corp (ONGC).The firm was in talks with overseas partners to reformulate exploration and development expenditure as current revenue at oil firms had halved due to weaker oil prices, he said.OVL also hoped to wrap up talks in two months to refinance $1.7 billion in loans at LIBOR plus 120 basis points maturing in 2021, versus the current LIBOR plus 195 basis points running to 2020, he said.ONGC and its Indian partners have submitted a $5-billion revised plan to Iran seeking development rights of Farzad B gas field, Verma said.The revised contract offered more flexibility and included a mix of production sharing and service contracts, he said, adding investment could double if infrastructure is built to supply gas to New Delhi.(Reuters)
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India is talking to South Africa to buy coal mines there to feed its expanding steel industry, Coal Secretary Anil Swarup said, adding that New Delhi also hopes to stop imports of coal used to generate power in three years as domestic output jumps. After years of poor production crippling power supply, state-run Coal India is boosting output at a record pace to meet Prime Minister Narendra Modi's goal of connecting to the grid millions of Indians who still make do with kerosene lamps. But India, which wants to triple its steel capacity to 300 million tonnes by 2025, does not have enough reserves of coking or steelmaking coal, prompting Coal India to look at assets abroad, Swarup told the Reuters Global Commodities Summit on Monday. "They are presently in negotiations with people in South Africa," Swarup said. "We imported around 80-90 million tonnes of coking coal last (fiscal) year and if that is the amount that can come through a mine owned by Coal India, it would consider it." Swarup declined to give any investment figure but said money was not an issue for Coal India, which had cash and bank balance of more than $8 billion for the year ended March 31. Overall coal imports into India, the world's third-largest buyer, fell for the third straight month in September in a country used to seeing shiploads coming in as new power plants started. Coal India's output grew 32 million tonnes to 494.2 million tonnes in the fiscal year 2014/15, the biggest volume rise in its four-decade history. "In three years we should be able to mine (all the power-generating) coal we require," Swarup said. "The quality of coal that is not available will still be imported." India is looking to more than double its total coal output to 1.5 billion tonnes by the end of this decade, with 500 million coming from the private sector. Swarup said India is working out details to open up the nationalized sector and allow private companies to mine and sell coal. The turnaround in India's coal industry has been a highlight of Modi's tenure in office since May last year, and the prime minister is keen that output grows further. "We are reasonably satisfied (with the coal resurgence), though there is still a long way to go," Swarup said. But environmentalists are worried the world's third-largest polluter is leading a pan-Asian dash to burn more of the dirty fossil fuel amid international efforts to contain global warming. Global investment banks are under pressure from environmental groups to steer clear of India's plan to raise as much as $3.3 billion from selling a 10 percent stake in Coal India. Swarup said the environment was a non-negotiable issue. He said India was planning to plant more trees than it cuts during coal mining operations, wash coal to improve its quality, push renewable energy and promote other "clean-coal" technologies. (Reuters)
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Adani Ports and Special Economic Zone (APSEZ), India’s largest port developer and part of Adani Group, on Monday (19 October) said it had signed a Memorandum of Understanding (MoU) with the India Pulses and Grains Association, to handle pulses across its ports in the country.MOU to help facilitate the development of a dedicated and efficient supply chain using Adani Ports located at strategic locations. It Will ensure the smooth and cost efficient availability of key vegetable protein across the country.“Adani has developed world class facilities for an agricultural market place at its ports. We now have the largest dedicated covered warehouse space inside ports for Agri goods. We also have tied up with partner agencies to provide collateral management and trade finance services at the port itself. Our ports are also ideally connected to the key markets of North, West & Central India”, said Captain Unmesh Abhyankar, CEO, Mundra Port.India imports nearly five million tonnes of pulses annually for domestic consumption, mainly from Canada, Australia and regions around the Black Sea.Pravin Dongre, Chairman IGPA said, “India’s pulses imports have been increasing every year and the infrastructure at the existing ports are finding it difficult to meet the requirements of the trade. The APSEZ Ports at locations like Mundra and Hazira will certainly help in reducing the load on the existing ports as well as allow quick and efficient evacuation of cargo in a cost-effective manner”.(BW Online Bureau)
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Sutanu Guru analyses the largely ignored story of coal imports. If you look at headlines of newspapers or have the courage to watch prime time TV news debates, there is not much that Prime Minister Modi is doing right. This is not the place to analyze the political cum ideological war that is being waged at the moment. But ticked away in an obscure corner is a news item that should make Modi smile a bit. According to statistics released by the government, coal imports declined by about 27 per cent to less than 13 million tons in September, 2015 as compared to last year. This is primarily because the much maligned (justifiably) Coal India has managed to do very well in bringing coal out of the mines it operates. Coal happens to be the least talked about but biggest failures of the UPA government. It is a toxic legacy that makes a mockery of the Indian economy trying to secure energy security. When Dr. Manmohan Singh became Prime Minister of India in 2004, the import bill for coal imports was about Rs 5,000 crores. The amount of coal imported back then was about 23 million tons. Even that was a disgrace for the Indian economy as the author had written in an opinion piece in 2006. After all, depending on whose data you believe, India has the third, or fourth largest reserves of coal in the world. Every Tom, Dick and Harry knows that when it comes to oil, the Indian economy, like so many others,mis critically dependent on imports. But coal? One would have expected the economist Prime Minister Dr. Singh to do something about it. What did he do? No, I am not talking about the coal block allocation scam that has forever tarnished his image and legacy. I am talking about coal imports. By the time Dr. Singh bid goodbye to office, coal imports had gone up by about 10 times to touch 200 million tons and the import bill had shot up about more than 16 times to a figure well in excess of Rs 80,000 crore. This should be considered an even bigger scandal than the coal allocation scam. The UPA regime merrily kept allocating coal blocs to all and sundry since 2006, if not earlier. The ostensible idea or rationale was that coal blocs allotted to private sector companies would reduce dependence on coal imports and improve energy security in the Indian economy. Yet, coal imports kept rising and touched almost 200 million tons by 2014. When the Supreme Court cancelled all the coal allocations, there were “thoughtful” opinion pieces on how this would lead to a dramatic fall in coal production and a simultaneous increase in imports. For most of 2014, the “thought” leaders seemed to be correct as coal imports showed no signs of abating. But almost everyone missed the actual data. The fact is, state owned Coal India and its various subsidiaries account for an overwhelming share of coal output in India. Ever since Indira Gandhi nationalized coal in the 1970s, that has been the fact. And it is a significant increase in output from Coal India that has led to a gradual tapering down of imports. But the fact that coal imports still amounted to almost 13 million tons in September is a scandal. India currently produces about 650 million tons of coal a year. The Modi government has publicly announced that it wants output to increase to 1.6 billion tons by 2019. Do remember, coal blocs have been allotted again to private players through a bidding process. Who knows, this might become a rare success story of a government policy? But then, since we are obsessed with beef exports, who has the time for coal imports?
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State oil giant Saudi Aramco said on Sunday that an attempted fraud that targeted its trading unit Aramco Trading and India's Oil and Natural Gas Corp (ONGC) had been foiled. In a brief statement in Arabic, Aramco said: "The attempted fraud has been foiled and did not have any financial impact on either the two companies or on trading relations between them." The Indian Express reported on Wednesday that cyber criminals had duped Aramco into making a payment for an order of naphtha from ONGC into their own bank account. Citing the police team looking into the case, the newspaper reported that ONGC had an order to deliver 36,000 metric tonnes of naphtha to Saudi Aramco. The fraudsters communicated with Saudi Aramco using an email ID that appeared almost identical the one used by an ONGC official. Aramco officials did not notice the difference. "The communication from ONGC was done using the e-mail ID patel_dv@ongc.co.in. The fraudsters merely created an e-mail address patel_dv@ognc.co.in," police inspector S. Mahadik was quoted as saying.
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