New Delhi: Much before the highly acclaimed USD 7.2 billion Reliance-BP deal, it was state-run ONGC that had proposed a strategic alliance with Europe's second biggest oil firm but was rejected by the oil ministry.
While BP Plc yesterday agreed to pay USD 7.2 billion for a 30 per cent stake in most of Reliance Industries' oil and gas blocks including the gigantic eastern offshore KG-D6 fields, the UK firm had in 2005-06 proposed to partner ONGC in three of its deep-sea blocks off the east and west coast.
Industry sources said BP had made a formal proposal to take 40-50 per cent stake in Oil and Natural Gas Corp's (ONGC) Krishna Godavari and Gujarat-Kutch basin block but the then Oil Minister Murli Deora and DGH V K Sibal had rejected it.
The oil ministry had also frustrated ONGC's attempt to bring in Norwegian oil major Statoil and Brazil's Petrobras in its gas discovery block KG-DWN-98/2, which sits next to Reliance's giant KG-D6 fields.
ONGC had in August/September 2007, proposed farming out (or in simple terms given out) 15 per cent interest in the block to Petrobras and 10 per cent to Norsk Hydro (now Statoil Hydro). But the ministry did not approve the farmout for almost a year, forcing the two companies to call it quits.
Oil Secretary S Sundareshan says New Exploration Licensing Policy (NELP), under which Reliance had won all the 23 blocks in which it is giving stake to BP, allows assignment of participating interest and his ministry will examine the Reliance-BP deal on merits.
ONGC too had won the KG-DWN-98/2 block in the same round of NELP in which Reliance got the neighbouring KG-DWN-98/3 or KG-D6 in 1999. But the state-owned firm never won approval to assign or farm-out interest to deep sea technology firms.
Sources said in case of BP, the UK firm was particularly interested in partnering ONGC in Kutch basin block GK-DW-1 that shared boundary with its blocks in neighbouring waters of Pakistan.
BP and ONGC had in September 2007 even signed a MoU for carrying out seismic surveys in the Kutch basin of Gujarat.
Sources said the oil ministry had used the ground that petroleum exploration license (PEL) for the three KG deepwater blocks was ending in May 2007 and for the Kutch block in August 2008. It did not deem it fit to extend the license and instead decided to offer the blocks in next bid rounds.
Despite British government pushing for the deal, the oil ministry held its ground and gave its final rejection in 2007.
Just around the same time, BP and Reliance entered into dialogue in what fructified into a deal where the UK firm picked 30 per cent stake in 23 out of Mukesh Ambani firm's 29 exploration blocks.
Success in my Habit
Tuesday, February 22, 2011
Monday, February 21, 2011
Mumbai gets its first air-conditioned bus stand
MUMBAI: Maharashtra's first fully air-conditioned bus stand , resembling an airport lounge , was Sunday inaugurated in the Dadar east area here by Chief Minister Prithviraj Chavan .
Chavan, who also holds the transport portfolio, complimented the Maharashtra State Road Transport Corporation (MSRTC) for the project and said that depending on passenger volumes, all bus stands in the state would categorised as A, B, or C groups, and related passenger amenities and facilities will be developed in all the state transport bus stands.
Constructed at a cost of Rs.5 million, the new stand will cater to over 14,000 passengers per day, travelling by 160 air-conditioned and 72 semi-luxury services from here, said MSRTC chairman Sudhakar Paricharak.
The stand has four air-conditioned waiting rooms which can accommodate 100 passengers at a time, with LCD monitors displaying bus timings, arrivals and departures of the buses and 20 CCTV cameras for security.
Comfortable seating, drinking water, rest rooms, newspapers and other facilities have also been provided.
Besides, the bus stand also boasts of an air-conditioned rest room for the drivers, making MSRTC the first state transport undertaking in the country to provide such a facility.
There are separate booking counters for air-conditioned and semi-luxury bus services, computerised booking for the entire state, enquiry and control rooms.
The new bus stand is a far cry from the earlier temporary shed constructed on a pavement on the busy Dr. Babasaheb Ambedkar Road in 1982 when the Mumbai-Pune-Mumbai services were introduced.
Chavan, who also holds the transport portfolio, complimented the Maharashtra State Road Transport Corporation (MSRTC) for the project and said that depending on passenger volumes, all bus stands in the state would categorised as A, B, or C groups, and related passenger amenities and facilities will be developed in all the state transport bus stands.
Constructed at a cost of Rs.5 million, the new stand will cater to over 14,000 passengers per day, travelling by 160 air-conditioned and 72 semi-luxury services from here, said MSRTC chairman Sudhakar Paricharak.
The stand has four air-conditioned waiting rooms which can accommodate 100 passengers at a time, with LCD monitors displaying bus timings, arrivals and departures of the buses and 20 CCTV cameras for security.
Comfortable seating, drinking water, rest rooms, newspapers and other facilities have also been provided.
Besides, the bus stand also boasts of an air-conditioned rest room for the drivers, making MSRTC the first state transport undertaking in the country to provide such a facility.
There are separate booking counters for air-conditioned and semi-luxury bus services, computerised booking for the entire state, enquiry and control rooms.
The new bus stand is a far cry from the earlier temporary shed constructed on a pavement on the busy Dr. Babasaheb Ambedkar Road in 1982 when the Mumbai-Pune-Mumbai services were introduced.
Delhi Metro Phase-III launch to be announced in Budget
NEW DELHI: The third phase of Delhi Metro envisaging an investment of Rs 28,000 crore is likely to be announced in the General Budget for 2011-12, says highly placed sources in the government.
"The DMRC is in the process of finalising the funding pattern of the Delhi Metro's third phase which will be launched in the Union Budget on February 28," they said.
There will be a provision for a portion of the Centre's equity investment in Delhi Metro's third phase expansion in 2011-12. The Delhi Metro has already initiated the process of finalising the funding pattern with the Planning Commission.
The third phase is likely to cover 105 km distance taking the total network by Delhi Metro to over 300 km.
The decision on the funding pattern, which has been a contentious issue, is taking time. Earlier this week the Delhi Metro had made detailed presentation on Phase-III project to the Planning Commission.
While the Planning Commission wants the debt equity ratio to be increased to 50:50, sources said the Delhi Metro has expressed its reservations against such high equity investments by the Delhi and central governments.
Sources said the Delhi Metro has proposed a debt equity ratio of 40:60 under which the two governments will contribute 20 per cent each and the rest to be raised by loans from agencies like Japan International Cooperation Agency (JICA).
It is likely that a consensus can be achieved a debt equity ration of 40:60 per cent. The ration for first and second phase of Delhi Metro was 70:30 per cent.
The Delhi Metro has proposed for six corridors under the Phase-III plan to the Commission. However, so far there is a the broad agreement on four corridors proposed by the Delhi Metro in its third phase.
The Delhi government gave its in-principle approval to the project in October and asked the DMRC to rework on three corridors so that ring road and areas like Jamia Nagar be connected through the Metro.
The DPR was prepared by the DMRC last month after which it has been decided to extend the Phase-III network to 105 km.
Lending agency JICA has also given positive indications to extend financial assistance to the project.
JICA has funded the Phase-I and Phase-II of the Delhi Metro and is also funding other Metro projects in the country.
The Phase-III is likely to be implemented at a cost of Rs 28,000 crore.
The Delhi government has been trying to get the Delhi DDA to partly fund Phase-III but the efforts are understood to have failed.
The Planning Commission was also of the view that DDA should partly fund Phase-III so that the debt equity ratio can be reduced to 50:50.
"The DMRC is in the process of finalising the funding pattern of the Delhi Metro's third phase which will be launched in the Union Budget on February 28," they said.
There will be a provision for a portion of the Centre's equity investment in Delhi Metro's third phase expansion in 2011-12. The Delhi Metro has already initiated the process of finalising the funding pattern with the Planning Commission.
The third phase is likely to cover 105 km distance taking the total network by Delhi Metro to over 300 km.
The decision on the funding pattern, which has been a contentious issue, is taking time. Earlier this week the Delhi Metro had made detailed presentation on Phase-III project to the Planning Commission.
While the Planning Commission wants the debt equity ratio to be increased to 50:50, sources said the Delhi Metro has expressed its reservations against such high equity investments by the Delhi and central governments.
Sources said the Delhi Metro has proposed a debt equity ratio of 40:60 under which the two governments will contribute 20 per cent each and the rest to be raised by loans from agencies like Japan International Cooperation Agency (JICA).
It is likely that a consensus can be achieved a debt equity ration of 40:60 per cent. The ration for first and second phase of Delhi Metro was 70:30 per cent.
The Delhi Metro has proposed for six corridors under the Phase-III plan to the Commission. However, so far there is a the broad agreement on four corridors proposed by the Delhi Metro in its third phase.
The Delhi government gave its in-principle approval to the project in October and asked the DMRC to rework on three corridors so that ring road and areas like Jamia Nagar be connected through the Metro.
The DPR was prepared by the DMRC last month after which it has been decided to extend the Phase-III network to 105 km.
Lending agency JICA has also given positive indications to extend financial assistance to the project.
JICA has funded the Phase-I and Phase-II of the Delhi Metro and is also funding other Metro projects in the country.
The Phase-III is likely to be implemented at a cost of Rs 28,000 crore.
The Delhi government has been trying to get the Delhi DDA to partly fund Phase-III but the efforts are understood to have failed.
The Planning Commission was also of the view that DDA should partly fund Phase-III so that the debt equity ratio can be reduced to 50:50.
Railway Budget 2011: Plan to set up Rail Industrial Park
NEW DELHI: In a first-of-its-kind project, the Railways will soon set up their own industrial park to manufacture various components for rail operation.
"Ancillary units will be set up at the Rail Industrial Park which would cater to the needs of Railways," sources in Railway Ministry said, adding, the proposal is likely to be announced in the Rail Budget 2011-12.
Besides, proposals for setting up a green toilet manufacturing unit at Nagpur and expansion of Diesel Loco Works at Varanasi are also likely to find mention in the Rail Budget on February 25.
Railways are carrying out field trials for various types of green toilets, including controlled discharge toilet system, zero discharge toilet system and bio-toilet based on bio-digester technology, in about 90 passenger trains.
"The green toilet in trains, an environment-friendly step, is a priority for Railways as the organisation is committed to providing cleaner environment," a senior official involved with the green toilet project said.
Facing financial crunch due to various reasons including the implementation of the Sixth Pay Commission, hike in diesel price and shortfall in freight loadings, Railways will tread cautiously this time.
Besides the Park, a diesel locomotive shed in Mariani in Assam may also be proposed in the Rail Budget. "The loco shed is being strategically planned keeping the increased rail movement in the North East in mind," the sources said.
Facing complaints about the quality of linen provided in trains, Railways are expected to propose mechanised laundries on "build, operate, own and transfer" mode at every zone.
The Budget may also have a proposal for provision of 'Jan Ahaar' outlets at every station to provide good quality food at reasonable rates to passengers.
"Ancillary units will be set up at the Rail Industrial Park which would cater to the needs of Railways," sources in Railway Ministry said, adding, the proposal is likely to be announced in the Rail Budget 2011-12.
Besides, proposals for setting up a green toilet manufacturing unit at Nagpur and expansion of Diesel Loco Works at Varanasi are also likely to find mention in the Rail Budget on February 25.
Railways are carrying out field trials for various types of green toilets, including controlled discharge toilet system, zero discharge toilet system and bio-toilet based on bio-digester technology, in about 90 passenger trains.
"The green toilet in trains, an environment-friendly step, is a priority for Railways as the organisation is committed to providing cleaner environment," a senior official involved with the green toilet project said.
Facing financial crunch due to various reasons including the implementation of the Sixth Pay Commission, hike in diesel price and shortfall in freight loadings, Railways will tread cautiously this time.
Besides the Park, a diesel locomotive shed in Mariani in Assam may also be proposed in the Rail Budget. "The loco shed is being strategically planned keeping the increased rail movement in the North East in mind," the sources said.
Facing complaints about the quality of linen provided in trains, Railways are expected to propose mechanised laundries on "build, operate, own and transfer" mode at every zone.
The Budget may also have a proposal for provision of 'Jan Ahaar' outlets at every station to provide good quality food at reasonable rates to passengers.
Lanco Infra earmarks Rs 3,000 cr for solar power equipment unit
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.
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.
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.
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