NEW DELHI: Canon India today said it expects 20 per cent growth in its office imaging solutions division's revenues to Rs 350 crore in 2011.
"India continues to build strong consumption, as well as investment momentum. With sustained 9 per cent GDP growth, we should begin to witness higher level of entrepreneurial depth," Canon India Senior Vice-President Alok Bharadwaj said in a statement.
Bharadwaj mentioned that India Inc prints and copies over 60 billion documents a year, translating into a cost of Rs 10,000 crore a year, which is growing at 20 per cent per annum.
Canon India recently announced plans to merge its enterprise solutions division for large enterprises and channel network for the SME segment into one division, called the office imaging solutions ( OIS )) division.
"We expect this division to grow revenues by 20 per cent to touch Rs 350 crore in 2011. This newly formed division will have 162 sales and marketing staff," Bharadwaj said.
The company today announced the appointment of K Bhashkar as the director of the office imaging solution (OIS) division.
This business-to-business division was one of the major contributors to Canon's overall business in 2010, contributing more than 25 per cent to the total revenue.
Success in my Habit
Tuesday, February 22, 2011
Cadbury India reports its highest-ever 27% revenue growth under Kraft
NEW DELHI: Cadbury India has reported its alltime high revenue growth in the first year after Kraft Foods took over Cadbury in a $19.7-billion deal, thanks to decentralised operations and sharp focus on core brands Cadbury Dairy Milk and Perk, a top official said.
Cadbury India has reported a record revenue growth of 27% last year, Kraft Foods Executive Vice-President & President, Developing Markets, Sanjay Khosla said. It ended December 2010 with Rs 2,500 crore in sales.
“I have given a blank cheque to our top performing markets; the idea was to get away from the control system in Chicago where we are headquartered,” he said. This means independent country heads can invest the way they want to—in sales, infrastructure, advertising and promotions. “This has worked well,” said Khosla, who is in charge of $14 billion worth of business in 60 markets including India. He, however, said the company is in no hurry to launch Kraft products such as Oreo biscuits and Toblerone chocolates in India.
Khosla is in India for a two-day workshop along with 90 Cadbury-Kraft sales directors from all over the world. They are here to imbibe learnings from Cadbury India’s diverse retail and distribution strengths. He attributes the record growth in India to three pillars – focus on the core business, adopting a ‘glocal’ strategy (that is, following a global model, but through decentralised operations), and tapping people's potential.
Core business, in Kraft’s world, includes brand development, sales, supply chain, cost efficiencies , right pricing, availability, campaigns , presence on social media, and so on. The country heads third-party manufacturing deal with Ludhiana-based Cremica Foods , Khosla only said that the $50-billion US giant is in no tearing hurry to bring its brands to India.
“I would prefer to do a few things simply; and do them well,” he said. “There is so much to do with brands that exist. The per capita consumption of foods we are in is still so small in India,” he added. The bullishness on India explains why Kraft has absorbed 16 Indian managers in the past eight months to take care of functions in places such as Singapore and Zurich.
Some of these officials are based in India, but are handling projects for other countries. Khosla said Kraft does not intend to phase out smaller brands in Cadbury’s portfolio. “Every brand plays a role. How does a local brand enter the top 10, is the question we are asking,” he said.
The India arm, which has 2,700 employees, is one of Kraft’s top 10 priority markets among the 170 countries it operates across.
Cadbury India has reported a record revenue growth of 27% last year, Kraft Foods Executive Vice-President & President, Developing Markets, Sanjay Khosla said. It ended December 2010 with Rs 2,500 crore in sales.
“I have given a blank cheque to our top performing markets; the idea was to get away from the control system in Chicago where we are headquartered,” he said. This means independent country heads can invest the way they want to—in sales, infrastructure, advertising and promotions. “This has worked well,” said Khosla, who is in charge of $14 billion worth of business in 60 markets including India. He, however, said the company is in no hurry to launch Kraft products such as Oreo biscuits and Toblerone chocolates in India.
Khosla is in India for a two-day workshop along with 90 Cadbury-Kraft sales directors from all over the world. They are here to imbibe learnings from Cadbury India’s diverse retail and distribution strengths. He attributes the record growth in India to three pillars – focus on the core business, adopting a ‘glocal’ strategy (that is, following a global model, but through decentralised operations), and tapping people's potential.
Core business, in Kraft’s world, includes brand development, sales, supply chain, cost efficiencies , right pricing, availability, campaigns , presence on social media, and so on. The country heads third-party manufacturing deal with Ludhiana-based Cremica Foods , Khosla only said that the $50-billion US giant is in no tearing hurry to bring its brands to India.
“I would prefer to do a few things simply; and do them well,” he said. “There is so much to do with brands that exist. The per capita consumption of foods we are in is still so small in India,” he added. The bullishness on India explains why Kraft has absorbed 16 Indian managers in the past eight months to take care of functions in places such as Singapore and Zurich.
Some of these officials are based in India, but are handling projects for other countries. Khosla said Kraft does not intend to phase out smaller brands in Cadbury’s portfolio. “Every brand plays a role. How does a local brand enter the top 10, is the question we are asking,” he said.
The India arm, which has 2,700 employees, is one of Kraft’s top 10 priority markets among the 170 countries it operates across.
Mukesh Ambani PE Fund to join hands with Intel
BANGALORE: The multi-million dollar private equity firm being set up by Mukesh Ambani, chairman of Reliance Industries , will be the first Indian fund to join a global co-investment programme led by US-based Intel Capital, the venture arm of chipmaker Intel Inc. The two funds are in the process of signing an agreement, a person with direct knowledge of the development said.
Intel's Global Syndicate Programme launched in December 2009 is an elite group of over 20 global private equity investors who collaborate on technology-led deals. Globally, Intel Cap has backed firms such as Research In Motion , makers of BlackBerry phones, Actions Semiconductors in China and RedHat in the US. In India, the fund has invested in communications company Sasken, technology education provider NIIT and a range of emerging firms such as mobile services firm, One97 and smart TV company Althea Systems .
Ambani is looking to back innovation across the technology and lifescience space and has built up a fund with a corpus of up to $250 million. An email questionnaire sent to the spokespersons of RIL did not elicit a response.
Intel Capital, which invests out of a dedicated $250-million fund in India, was one of the most active private equity investors in the country in 2010. The fund closed about eight deals investing a total of $45 million in both existing firms such as July Systems as well as new investments in start-ups such as Buzzintown and Omnesys.
The agreement, when it comes through, will help the Ambani-led fund gain access to investment opportunities in a range of new technology start-ups in areas such as IT infrastructure, mobile technology, digital health and the internet - sectors that Intel Capital focuses heavily on.
Also as these emerging firms have already have received initial funding from Intel Cap, they will have undergone a rigorous process of due diligence. Allowing the newly-minted Indian PE firm to invest in start-ups with a dual advantage-disruptive technology and a proven business model.
"The two funds are yet to close a joint deal in India but they are in the process of evaluating an investment," said an industry source.
The PE fund is supported by the Reliance Innovation Council which includes scientist RA Mashelkar, Ambani and other industry experts from science and business who are expected to whet possible investments made by the PE fund.
Intel Capital typically picks syndicate partners for their deep pockets and for additional technology inputs they can provide to portfolio companies. "Syndicate partners such as the Ambani-led fund will provide additional rounds of capital to fast-growing technology firms that do not need to go out into the market in search of more money," said a senior professional with direct knowledge of the development. Last year, some of Intel Capital's top investments included educational gaming company Tabula Digita , Carrier Ethernet solutions provider Overture Networks and advertising technology company BlackArrow. It also co-invested in video technology firm Kaltura where another India-focused fund Nexus Venture Partners also invested.
Intel Cap is also looking to seal a similar partnership with Japanese electronics major, Toshiba Corp , according to a senior professional in the private equity industry. "Such partnerships provide a dedicated pool of follow-on funding for fast growing companies in the Intel Cap portfolio while syndicate partners get access to strategic technology deals," he added.
Intel's Global Syndicate Programme launched in December 2009 is an elite group of over 20 global private equity investors who collaborate on technology-led deals. Globally, Intel Cap has backed firms such as Research In Motion , makers of BlackBerry phones, Actions Semiconductors in China and RedHat in the US. In India, the fund has invested in communications company Sasken, technology education provider NIIT and a range of emerging firms such as mobile services firm, One97 and smart TV company Althea Systems .
Ambani is looking to back innovation across the technology and lifescience space and has built up a fund with a corpus of up to $250 million. An email questionnaire sent to the spokespersons of RIL did not elicit a response.
Intel Capital, which invests out of a dedicated $250-million fund in India, was one of the most active private equity investors in the country in 2010. The fund closed about eight deals investing a total of $45 million in both existing firms such as July Systems as well as new investments in start-ups such as Buzzintown and Omnesys.
The agreement, when it comes through, will help the Ambani-led fund gain access to investment opportunities in a range of new technology start-ups in areas such as IT infrastructure, mobile technology, digital health and the internet - sectors that Intel Capital focuses heavily on.
Also as these emerging firms have already have received initial funding from Intel Cap, they will have undergone a rigorous process of due diligence. Allowing the newly-minted Indian PE firm to invest in start-ups with a dual advantage-disruptive technology and a proven business model.
"The two funds are yet to close a joint deal in India but they are in the process of evaluating an investment," said an industry source.
The PE fund is supported by the Reliance Innovation Council which includes scientist RA Mashelkar, Ambani and other industry experts from science and business who are expected to whet possible investments made by the PE fund.
Intel Capital typically picks syndicate partners for their deep pockets and for additional technology inputs they can provide to portfolio companies. "Syndicate partners such as the Ambani-led fund will provide additional rounds of capital to fast-growing technology firms that do not need to go out into the market in search of more money," said a senior professional with direct knowledge of the development. Last year, some of Intel Capital's top investments included educational gaming company Tabula Digita , Carrier Ethernet solutions provider Overture Networks and advertising technology company BlackArrow. It also co-invested in video technology firm Kaltura where another India-focused fund Nexus Venture Partners also invested.
Intel Cap is also looking to seal a similar partnership with Japanese electronics major, Toshiba Corp , according to a senior professional in the private equity industry. "Such partnerships provide a dedicated pool of follow-on funding for fast growing companies in the Intel Cap portfolio while syndicate partners get access to strategic technology deals," he added.
SBI plans to merge 5 subsidiaries in 12-18 months
NEW DELHI: State Bank of India proposes to merge its five remaining subsidiaries with itself over the next 12-18 months.
In its deposition before the Parliamentary Standing Committee on Finance, the country's largest lender said the consolidation exercise has been systemically planned as part of a logical step to bring in economies of scale, reduce administrative overheads, redeploy and channelise trained manpower to business development and, in the process, also reduce avoidable competition from different arms of the same group.
While the bank has already merged State Bank of Saurashtra and State Bank of Indore with itself, it would require a government go-ahead to merge the remaining five - State Bank of Hyderabad, State Bank of Patiala , State Bank of Bikaner and Jaipur , State Bank of Travancore and State Bank of Mysore .
SBI chairman O P Bhatt told the committee headed by former finance minister Yashwant Sinha that the merger of State Bank of Saurashtra with SBI "went as smooth as silk". As for State Bank of Indore's merger, an online poll of employees showed that over 90% were in favour of the merger, he said.
"A number of corporates are pushing growth opportunities abroad. All these require that SBI and a few other Indian banks grow in size and financial muscle to cater to the growing needs of such corporates, failing which such clientele and their business would be taken over by foreign banks," the government told the standing committee.
A merger of all associate banks has been in the works for several years but SBI is taking it one by one as it wants to build a consensus around it first. A major attraction for SBI subsidiary employees is the offer of getting a pension, in addition to provident fund benefits. SBI is the only public sector player in the country where employees get both the benefits. In addition, employees of the subsidiary banks are being given the same treatment that is available to SBI employees.
To make sure that the merger is not legally challenged, SBI has got the process legally vetted. SBI management is now contemplating getting a blanket approval from the government to merge all the banks and then decide the sequence. The merger will help SBI steal a march over its nearest rival ICICI Bank .
In its deposition before the Parliamentary Standing Committee on Finance, the country's largest lender said the consolidation exercise has been systemically planned as part of a logical step to bring in economies of scale, reduce administrative overheads, redeploy and channelise trained manpower to business development and, in the process, also reduce avoidable competition from different arms of the same group.
While the bank has already merged State Bank of Saurashtra and State Bank of Indore with itself, it would require a government go-ahead to merge the remaining five - State Bank of Hyderabad, State Bank of Patiala , State Bank of Bikaner and Jaipur , State Bank of Travancore and State Bank of Mysore .
SBI chairman O P Bhatt told the committee headed by former finance minister Yashwant Sinha that the merger of State Bank of Saurashtra with SBI "went as smooth as silk". As for State Bank of Indore's merger, an online poll of employees showed that over 90% were in favour of the merger, he said.
"A number of corporates are pushing growth opportunities abroad. All these require that SBI and a few other Indian banks grow in size and financial muscle to cater to the growing needs of such corporates, failing which such clientele and their business would be taken over by foreign banks," the government told the standing committee.
A merger of all associate banks has been in the works for several years but SBI is taking it one by one as it wants to build a consensus around it first. A major attraction for SBI subsidiary employees is the offer of getting a pension, in addition to provident fund benefits. SBI is the only public sector player in the country where employees get both the benefits. In addition, employees of the subsidiary banks are being given the same treatment that is available to SBI employees.
To make sure that the merger is not legally challenged, SBI has got the process legally vetted. SBI management is now contemplating getting a blanket approval from the government to merge all the banks and then decide the sequence. The merger will help SBI steal a march over its nearest rival ICICI Bank .
Maruti Suzuki to supply A-star to Volkswagen
NEW DELHI: India's largest automobile company Maruti Suzuki will supply its latest compact car A-Star to Volkswagen AG . The car, which will undergo some modifications and design changes, will be sold in India and Asian markets under a new brand, according to senior officials in the automobile industry.
The agreement to supply A-Star, Suzuki's fifth global model after Swift, Ritz, SX4 and Grand Vitara will be inked soon. Volkswagen holds 20% stake in Maruti's parent company Suzuki.
Volkswagen's decision to choose A-Star comes after two years of Maruti's success of supplying A-Star to another Japanese carmaker Nissan Motors, which re-badges the same car as Pixo for sales through its own network in Europe. A-Star sold as Alto in overseas markets is exclusively made by Maruti Suzuki at its Manesar plant in Haryana. It's a futuristic product specifically developed by parent Suzuki Motor Corp (SMC) for developed markets meeting all its stringent crash safety tests, emission norms and environment regulations.
Maruti's engineering team would work closely with VW to tweak the car as per its global market needs, said a senior official from the automobile industry. "There could be some changes in the basic design though the overall technical specs won't be altered," the official added.
The agreement to supply A-Star, Suzuki's fifth global model after Swift, Ritz, SX4 and Grand Vitara will be inked soon. Volkswagen holds 20% stake in Maruti's parent company Suzuki.
Volkswagen's decision to choose A-Star comes after two years of Maruti's success of supplying A-Star to another Japanese carmaker Nissan Motors, which re-badges the same car as Pixo for sales through its own network in Europe. A-Star sold as Alto in overseas markets is exclusively made by Maruti Suzuki at its Manesar plant in Haryana. It's a futuristic product specifically developed by parent Suzuki Motor Corp (SMC) for developed markets meeting all its stringent crash safety tests, emission norms and environment regulations.
Maruti's engineering team would work closely with VW to tweak the car as per its global market needs, said a senior official from the automobile industry. "There could be some changes in the basic design though the overall technical specs won't be altered," the official added.
RIL-BP $7.2 bn deal: ONGC’s loss is Reliance’s gain
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.
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.
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.
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