RAIPUR: Lanco Infratech today said it has earmarked Rs 3,000 crore for manufacturing solar power equipment from its facility here, which would be operational in the next three years.
The company today laid the foundation stone for establishing a solar power equipment manufacturing unit at Rajnandangaon near Raipur in Chhattisgarh.
"We would invest Rs 3,000 crore in two phases in Raipur for solar power equipment manufacturing," Chairman Lanco Infratech L Madhusudan Rao told reporters here adding that the unit would be functional in the next three years.
The company plans to invest about Rs 1,370 crore in the first phase of the project, which is likely to employ around 8,000 people at the time of its completion.
The project is being funded at a debt and equity ratio of 75:25, the company has already tied up the debt portion through a consortium of banks led by Axis Bank . The equity portion would be met through internal accruals.
The company would spend Rs 1,630 crore during the second phase of the unit.
Lanco Solar, a special purpose vehicle has been formed by Lanco Infratech for the purpose. This manufacturing unit is likely to make equipment that can generate 250 MW of solar power by 2014.
Lanco Infratech plans to list Lanco Solar on the capital market in 2-3 years time.
"In 2-3 years we hope that we can list Lanco Power," he said.
Rao said that the Group is restructuring the company to create a separate power holding company which plans to generate 15,000 MW by 2015 through all sources of energy -- coal, gas and hydro.
The current power generation capacity of Lanco Infratech is over 2,092 MW and over 12,800 MW is under construction.
Success in my Habit
Monday, February 21, 2011
Ramky Infra JV ties up 1,400 crore for J&K road project
MUMBAI: Hyderabad-based infrastructure firm Ramky Infrastructure has tied up debt worth 1,400 crore with ICICI Bank for financing its Srinagar-Banihal road project in Jammu and Kashmir, group Chief Financial Officer Sanjiv Iyer told ET.
Ramky Infrastructure, in a joint venture with China's Jiangshu Provincial Transportation Engineering Group Company is executing the Srinagar-Banihal road project in Jammu and Kashmir at a total cost of 1,625 crore. Ramky Infrastructure holds 74% in the joint venture which will design, build, finance, operate and transfer the project for National Highway Authority of India (NHAI).
"We will announce financial closure for the project before March-end and hope to start construction of the project around the same time," Iyer said.
The annuity based road project has a concession period of 20 years, including the construction period of three years.
Ramky Infrastructure has five road development projects in its portfolio, of which one is operational currently. With the financial closure of the Srinagar-Banihal road project, the company would have the entire road portfolio financially tied up. "We hope to commission our Gwalior bypass road project by March. We have already started construction on two other projects," Iyer said. Ramky has executed NHAI's Gwalior bypass at a total cost of 332.11 crore.
Ramky Infrastructure, in a joint venture with China's Jiangshu Provincial Transportation Engineering Group Company is executing the Srinagar-Banihal road project in Jammu and Kashmir at a total cost of 1,625 crore. Ramky Infrastructure holds 74% in the joint venture which will design, build, finance, operate and transfer the project for National Highway Authority of India (NHAI).
"We will announce financial closure for the project before March-end and hope to start construction of the project around the same time," Iyer said.
The annuity based road project has a concession period of 20 years, including the construction period of three years.
Ramky Infrastructure has five road development projects in its portfolio, of which one is operational currently. With the financial closure of the Srinagar-Banihal road project, the company would have the entire road portfolio financially tied up. "We hope to commission our Gwalior bypass road project by March. We have already started construction on two other projects," Iyer said. Ramky has executed NHAI's Gwalior bypass at a total cost of 332.11 crore.
Punj Lloyd bags Rs 735-crore project from NHAI
NEW DELHI: Punj Lloyd today said its subsidiary, Punj Lloyd Infrastructure Limited , has bagged an order worth Rs 735 crore from the National Highways Authority of India (NHAI).
The subsidiary, which has been set up for implementing infrastructure development projects, will upgrade the national highway from Khagaria to Purnea in Bihar to a two-lane, undivided carriage way with paved shoulders under the National Highways Development Programme (NHDP), Punj said in a statement.
The project will work in a build-operate-transfer (BOT) annuity basis, the statement added.
The scope of work will involve the design, building, finance, operation and transfer of the 140 km section of the national highway, it said.
"This is a significant BOT project... Through Punj Lloyd Infrastructure Limited, the Group will continue rational bidding with an aim to create a portfolio of Infrastructure Development projects. This project complements our existing portfolio of highways construction portfolio in India," Punj Lloyd Chairman Atul Punj said.
Upon signing a concession agreement with NHAI , Punj Lloyd will be entitled to semi-annual annuities of Rs 56 crore for 17 years, it said.
Punj Lloyd has built over 1200 km of highways under NHDP falling under the Golden Quadrilateral and East West Corridors for NHAI. The Group has also executed BOT Projects in the past along with partners.
The subsidiary, which has been set up for implementing infrastructure development projects, will upgrade the national highway from Khagaria to Purnea in Bihar to a two-lane, undivided carriage way with paved shoulders under the National Highways Development Programme (NHDP), Punj said in a statement.
The project will work in a build-operate-transfer (BOT) annuity basis, the statement added.
The scope of work will involve the design, building, finance, operation and transfer of the 140 km section of the national highway, it said.
"This is a significant BOT project... Through Punj Lloyd Infrastructure Limited, the Group will continue rational bidding with an aim to create a portfolio of Infrastructure Development projects. This project complements our existing portfolio of highways construction portfolio in India," Punj Lloyd Chairman Atul Punj said.
Upon signing a concession agreement with NHAI , Punj Lloyd will be entitled to semi-annual annuities of Rs 56 crore for 17 years, it said.
Punj Lloyd has built over 1200 km of highways under NHDP falling under the Golden Quadrilateral and East West Corridors for NHAI. The Group has also executed BOT Projects in the past along with partners.
Shell to sell stake in Mauritius unit for $1 bn
PORT LOUIS: Petroleum distributor Shell Mauritius Ltd said on Monday that parent Royal Dutch Shell planned to sell three quarters of its stake in the company to two joint venture partners for $1 bn.
Shell Mauritius said Vitol Group and Helios Investment Partners would ensure continued availability of Shell fuels and lubricants in the country.
"The divestment includes the potential sale of the 75 percent of the share capital of SML held by Shell Overseas Holdings Limited (SOH)," Shell Mauritius said in a statement.
Trading in the shares of Shell on the Mauritius bourse resumed on Monday after being suspended on Friday following media reports that an agreement between Shell and Vitol-Helios Investment was in the pipeline.
The shares rose by 1.25 percent to 162 rupees from their last trading session on Thursday.
Shell Mauritius said Vitol Group and Helios Investment Partners would ensure continued availability of Shell fuels and lubricants in the country.
"The divestment includes the potential sale of the 75 percent of the share capital of SML held by Shell Overseas Holdings Limited (SOH)," Shell Mauritius said in a statement.
Trading in the shares of Shell on the Mauritius bourse resumed on Monday after being suspended on Friday following media reports that an agreement between Shell and Vitol-Helios Investment was in the pipeline.
The shares rose by 1.25 percent to 162 rupees from their last trading session on Thursday.
Axis Bank launches zero balance salary account for Indian Army
MUMBAI: After SBI and ICICI Bank, private sector lender Axis Bank today launched a zero balance salary account exclusively for Indian Army personnel.
The announcement from Axis, the third-largest lender, comes close on the heels of similar tie-up forged by the two largest lenders eyeing the benefits of upping the share of the cheaper CASA (Current and Savings Account) deposits in total pie.
A memorandum of understanding was signed between the two entities today for starting the special account christened "Power Salute" salary account, a release issued here by the bank said.
An account-holder can avail a loan without paying any processing fees and will also be given an unique life-time account number which can be used at all branches of the bank.
Apart from that, the account-holder can also withdraw cash at other banks' Automated Teller Machines (ATMs) for free as many time as he wants, it added.
Axis Bank already has an ATM in Thegu near the strategic Nathu La pass situated at 13,200 feet which "till date is one of the highest ATMs in the world" installed for serving the army men, the release said.
The announcement from Axis, the third-largest lender, comes close on the heels of similar tie-up forged by the two largest lenders eyeing the benefits of upping the share of the cheaper CASA (Current and Savings Account) deposits in total pie.
A memorandum of understanding was signed between the two entities today for starting the special account christened "Power Salute" salary account, a release issued here by the bank said.
An account-holder can avail a loan without paying any processing fees and will also be given an unique life-time account number which can be used at all branches of the bank.
Apart from that, the account-holder can also withdraw cash at other banks' Automated Teller Machines (ATMs) for free as many time as he wants, it added.
Axis Bank already has an ATM in Thegu near the strategic Nathu La pass situated at 13,200 feet which "till date is one of the highest ATMs in the world" installed for serving the army men, the release said.
Ruia Group acquires Germany-based Acument GmbH
KOLKATA: Extending its global footprint in the auto ancillary segment , the Rs.5,000-crore Ruia Group Monday announced the acquisition of Germany-based Acument GmbH & Co KG , one of the leading manufacturers of automotive fasteners .
This is the third acquisition for the Ruia Group, the owner of Dunlop India and Falcon Tyres , in Germany and fourth in Europe within a span of three years.
In October-November last year, four bidders tried to acquire Acument whose board of directors filed for insolvency in 2009 as the company incurred a loss of 40 million Euro in 2008 following global economic meltdown, an official said.
Acument produces a wide rage of high precision fasteners like long shafted bolts, hexagonal screws, nuts and forged parts.
The Ruia Group came out as the best bidder and signed the contract for the acquisition of Acument, which has 15 percent of market share in fastener segment in Europe and had posted a turnover of 800 million Euro before insolvency.
The group has acquired four plants of Acument in Neuss, Beckingen, Neuwied and Schorzberg as well as its logistic centre in Koln in Germany.
"Our investment will be 4 million Euro in the company and we expect that the company's turnover would be 200 million Euro this year," Pawan K. Ruia, chairman of the Group, told reporters.
This is the third acquisition for the Ruia Group, the owner of Dunlop India and Falcon Tyres , in Germany and fourth in Europe within a span of three years.
In October-November last year, four bidders tried to acquire Acument whose board of directors filed for insolvency in 2009 as the company incurred a loss of 40 million Euro in 2008 following global economic meltdown, an official said.
Acument produces a wide rage of high precision fasteners like long shafted bolts, hexagonal screws, nuts and forged parts.
The Ruia Group came out as the best bidder and signed the contract for the acquisition of Acument, which has 15 percent of market share in fastener segment in Europe and had posted a turnover of 800 million Euro before insolvency.
The group has acquired four plants of Acument in Neuss, Beckingen, Neuwied and Schorzberg as well as its logistic centre in Koln in Germany.
"Our investment will be 4 million Euro in the company and we expect that the company's turnover would be 200 million Euro this year," Pawan K. Ruia, chairman of the Group, told reporters.
2G spectrum probe: CBI questions Videocon's Dhoot, his brother
NEW DELHI: The CBI today questioned Videocon group Chairman Venugopal Dhoot , and his brother and Rajya Sabha MP Rajkumar Dhoot in connection with the probe into allocation of spectrum in 2008.
The duo were called to the CBI headquarters this afternoon and questioned for over seven hours and confronted with the documents of changing their share capital from Rs 1 lakh to Rs 150 crore, official sources said here today.
The sources said that statement of their Company Secretary, submitted to the Department of Telecom, claiming change in the share capital, was also shown to them and asked to explain the minutes of the meeting of an extra-ordinary general body of the company held on August 27, 2007.
The questioning of the duo was part of the CBI questioning all the heads of nine companies which were allocated spectrum in 2008. Videocon was allocated a start-up spectrum of 4.4 MHz in all circles except Delhi.
The company could not be contacted for comments. The agency so far has questioned top brass of various telecom companies, including Reliance Infocomm Chairman Anil Ambani , Essar CEO Prashant Ruia and Unitech MD Sanjay Chandra.
The Comptroller and Auditor General in its report had alleged that Datacom Solutions, which later changed to Videocon Telecommunications, while submitting its application for 22 licences on August 28, 2007, had "made a false claim of the paid-up capital of Rs 150 crore through company secretary although documents attached with indicated that the authorised share capital of the company as Rs 1.00 lakh only".
Since the requirement of the requisite amount of the paid -up capital was an important eligibility criterion, their applications ought to have been rejected forthwith.
However, on November 27, 2007, the company suo-motto submitted a so-called "correct" version of documents as on August 28, 2007, stating that they had submitted an old version of documents inadvertently along with the application.
"The new version of Memorandum Of Association and Article of Association claimed to have increased the authorised share capital from Rs 1.00 lakh to Rs 150 crore through an ordinary resolution passed in the extra-ordinary general meeting on August 27, 2007, a day preceding the date of submission of applications by the Company.
"Since there is a procedure prescribed in the Companies Act for effecting increase in the authorised share capital of a company, the company could under no circumstances have a paid-up capital of Rs 150 crore on August 28, 2007 and hence the certificate furnished by the Company Secretary of the company appeared to be false," the CAG report had claimed.
It alleged that DoT "failed miserably" to do any due diligence in the examination of claims of the company even when company claimed to have passed the resolution enhancing the authorised share capital on the preceding day of the date of application of the applicant company.
The duo were called to the CBI headquarters this afternoon and questioned for over seven hours and confronted with the documents of changing their share capital from Rs 1 lakh to Rs 150 crore, official sources said here today.
The sources said that statement of their Company Secretary, submitted to the Department of Telecom, claiming change in the share capital, was also shown to them and asked to explain the minutes of the meeting of an extra-ordinary general body of the company held on August 27, 2007.
The questioning of the duo was part of the CBI questioning all the heads of nine companies which were allocated spectrum in 2008. Videocon was allocated a start-up spectrum of 4.4 MHz in all circles except Delhi.
The company could not be contacted for comments. The agency so far has questioned top brass of various telecom companies, including Reliance Infocomm Chairman Anil Ambani , Essar CEO Prashant Ruia and Unitech MD Sanjay Chandra.
The Comptroller and Auditor General in its report had alleged that Datacom Solutions, which later changed to Videocon Telecommunications, while submitting its application for 22 licences on August 28, 2007, had "made a false claim of the paid-up capital of Rs 150 crore through company secretary although documents attached with indicated that the authorised share capital of the company as Rs 1.00 lakh only".
Since the requirement of the requisite amount of the paid -up capital was an important eligibility criterion, their applications ought to have been rejected forthwith.
However, on November 27, 2007, the company suo-motto submitted a so-called "correct" version of documents as on August 28, 2007, stating that they had submitted an old version of documents inadvertently along with the application.
"The new version of Memorandum Of Association and Article of Association claimed to have increased the authorised share capital from Rs 1.00 lakh to Rs 150 crore through an ordinary resolution passed in the extra-ordinary general meeting on August 27, 2007, a day preceding the date of submission of applications by the Company.
"Since there is a procedure prescribed in the Companies Act for effecting increase in the authorised share capital of a company, the company could under no circumstances have a paid-up capital of Rs 150 crore on August 28, 2007 and hence the certificate furnished by the Company Secretary of the company appeared to be false," the CAG report had claimed.
It alleged that DoT "failed miserably" to do any due diligence in the examination of claims of the company even when company claimed to have passed the resolution enhancing the authorised share capital on the preceding day of the date of application of the applicant company.
Reliance Industries, BP signs $7.2 bn oil & gas deal
NEW DELHI: UK's BP Plc will buy 30 per cent stake in Reliance Industries' 23 oil and gas blocks including the giant KG-D6 gas fields off the east coast for USD 7.2 billion.
BP could further pay USD 1.8 billion "on exploration success that results in development of commercial discoveries," RIL said in a press statement.
The two firms will also enter into a 50:50 joint venture for sourcing and marketing of gas.
BP CEO Bob Dudley and RIL Chairman and Managing Director Mukesh Ambani will make a joint announcement later in the evening.
BP's combined investment including payments to Reliance could amount to USD 20 billion. Ambani and Dudle "signed the relationship framework and transactional agreements in London," the statement said.
"The partnership across the full value chain comprises BP taking a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India.
This includes producing KG D6 block, and the formation of a 50:50 joint venture between the two companies for the sourcing and marketing of gas in India," it said.
The joint venture will also endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India.
Reliance said the partnership will combine BP's world class deepwater exploration and development capabilities with Reliance's project management and operations expertise.
"This partnership meets BP's strategy of forming alliances with strong national partners, taking material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets," said Carl-Henric Svanberg, Chairman of BP.
The 23 oil and gas blocks together cover approximately 270,000 square kilometres. Reliance will continue to be operator of the blocks.
BP could further pay USD 1.8 billion "on exploration success that results in development of commercial discoveries," RIL said in a press statement.
The two firms will also enter into a 50:50 joint venture for sourcing and marketing of gas.
BP CEO Bob Dudley and RIL Chairman and Managing Director Mukesh Ambani will make a joint announcement later in the evening.
BP's combined investment including payments to Reliance could amount to USD 20 billion. Ambani and Dudle "signed the relationship framework and transactional agreements in London," the statement said.
"The partnership across the full value chain comprises BP taking a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India.
This includes producing KG D6 block, and the formation of a 50:50 joint venture between the two companies for the sourcing and marketing of gas in India," it said.
The joint venture will also endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India.
Reliance said the partnership will combine BP's world class deepwater exploration and development capabilities with Reliance's project management and operations expertise.
"This partnership meets BP's strategy of forming alliances with strong national partners, taking material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets," said Carl-Henric Svanberg, Chairman of BP.
The 23 oil and gas blocks together cover approximately 270,000 square kilometres. Reliance will continue to be operator of the blocks.
Apparel exports on course to hit $11 billion
Coimbatore: With apparel shipments hitting the $1-billion a month mark in December for the first time in nine months, garment makers are confident of achieving $11 billion in exports during the current financial year. That would 6% higher than the previous year.
"We are seeing signs of revival. The industry is poised for growth. China is having a lot of problems and wants to exit the mid and low-priced segments. So, buyers are taking a fresh look at India," said Premal Udani, chairman, Apparel Export Promotion Council (AEPC). Exports had shown growth only in four months during 2010 and declined 3.1% in April-December.
India is one of the few countries having capabilities across the textile value chain and "all these factors are working considerably in our favour now". China has a lion's share of the global textile trade with exports worth about $110 billion and even a 5% shift in favour of India would throw up huge opportunities, the AEPC chairman said.
Apparel would be one of the biggest beneficiaries of the free trade pact between India and Japan, he said. With the pact in place, India would be able to export garments at zero duty to Japan. Garment makers pay around 11% in duties now.
Exports to Japan is estimated to touch $125 million in the current fiscal and this could easily go up by another $50 million in the next fiscal, Udani said. Japan could easily become the third biggest importer of garments from India, he said. Growth in the domestic market has also risen sharply. The emergence of the domestic market, which is growing at double digit rates, has changed the situation for the better, he said.
Despite the revival, the industry is still facing challenges that include high cotton and yarn prices, low productivity and high taxes, Udani said. "If these issues are addressed we can grow by 30%."
Apparel industry keen on tapping NREGS
M Allirajan | tnn
AEPC is keen on tapping the National Rural Employment Guarantee Scheme. "We have written to the planning commission and the proposal is also with the textiles ministry," AEPC chairman Premal Udani said. Training in apparel making could be made part of NREGS for which the industry could contribute Rs 50 per worker per day, initially.
Once the worker is employed the industry would give an amount equivalent to the government's contribution to the scheme, he said. The government can take a base year for ascertaining the regular workforce in the apparel segment and for incremental jobs created by the industry NREGS funds can be provided, AEPC suggested. Though the industry is not facing labour shortage now, it would face problems once the domestic and export markets start growing at a faster pace, Udani said.
"We are seeing signs of revival. The industry is poised for growth. China is having a lot of problems and wants to exit the mid and low-priced segments. So, buyers are taking a fresh look at India," said Premal Udani, chairman, Apparel Export Promotion Council (AEPC). Exports had shown growth only in four months during 2010 and declined 3.1% in April-December.
India is one of the few countries having capabilities across the textile value chain and "all these factors are working considerably in our favour now". China has a lion's share of the global textile trade with exports worth about $110 billion and even a 5% shift in favour of India would throw up huge opportunities, the AEPC chairman said.
Apparel would be one of the biggest beneficiaries of the free trade pact between India and Japan, he said. With the pact in place, India would be able to export garments at zero duty to Japan. Garment makers pay around 11% in duties now.
Exports to Japan is estimated to touch $125 million in the current fiscal and this could easily go up by another $50 million in the next fiscal, Udani said. Japan could easily become the third biggest importer of garments from India, he said. Growth in the domestic market has also risen sharply. The emergence of the domestic market, which is growing at double digit rates, has changed the situation for the better, he said.
Despite the revival, the industry is still facing challenges that include high cotton and yarn prices, low productivity and high taxes, Udani said. "If these issues are addressed we can grow by 30%."
Apparel industry keen on tapping NREGS
M Allirajan | tnn
AEPC is keen on tapping the National Rural Employment Guarantee Scheme. "We have written to the planning commission and the proposal is also with the textiles ministry," AEPC chairman Premal Udani said. Training in apparel making could be made part of NREGS for which the industry could contribute Rs 50 per worker per day, initially.
Once the worker is employed the industry would give an amount equivalent to the government's contribution to the scheme, he said. The government can take a base year for ascertaining the regular workforce in the apparel segment and for incremental jobs created by the industry NREGS funds can be provided, AEPC suggested. Though the industry is not facing labour shortage now, it would face problems once the domestic and export markets start growing at a faster pace, Udani said.
MakeMyTrip acquires S'pore-based travel firm
New Delhi: MakeMyTrip.com (MMT) has acquired a 79 per cent stake in Singapore-based travel agency Luxury Tours & Travels Pte Ltd (LTT) for $3 million.
MMT will invest another $0.75 mn in the company, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT.
Further, MakeMyTrip will acquire from the existing shareholders their remaining shares in LTT, in three tranches over a three-year period ending June 2014. The payment under each such tranche will be made in cash, based on valuations linked to LTT’s profitability.
This deal will enable MakeMyTrip to strengthen its presence in Hong Kong, Thailand and Malaysia.
Luxury Tours & Travel Pte Ltd is engaged in the business of providing hotel reservations, excursion tours and other related services to inbound and outbound travelers in Singapore. It has tie-ups with over 100 hotels in Singapore, and around 25 in Southeast Asia.
Founded in 2000 by Deep Kalra, MakeMyTrip has 24x7 customer support and offices in 20 cities across India and two international offices, in New York and San Francisco. The company has private equity investors such as SAIF Partners, Helion Venture Partners and Sierra Ventures
Last year, in February, MMT acquired bus ticketing company Ticketvala.com and also raised $70-mn through an Initial Public Offer in the US.
MMT will invest another $0.75 mn in the company, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT.
Further, MakeMyTrip will acquire from the existing shareholders their remaining shares in LTT, in three tranches over a three-year period ending June 2014. The payment under each such tranche will be made in cash, based on valuations linked to LTT’s profitability.
This deal will enable MakeMyTrip to strengthen its presence in Hong Kong, Thailand and Malaysia.
Luxury Tours & Travel Pte Ltd is engaged in the business of providing hotel reservations, excursion tours and other related services to inbound and outbound travelers in Singapore. It has tie-ups with over 100 hotels in Singapore, and around 25 in Southeast Asia.
Founded in 2000 by Deep Kalra, MakeMyTrip has 24x7 customer support and offices in 20 cities across India and two international offices, in New York and San Francisco. The company has private equity investors such as SAIF Partners, Helion Venture Partners and Sierra Ventures
Last year, in February, MMT acquired bus ticketing company Ticketvala.com and also raised $70-mn through an Initial Public Offer in the US.
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