Kolkata: The Republic of Zambia plans to attract Indian investments in energy, agro processing, manufacturing, construction and tourism. Investments are also invited in developing its national parks.
Opportunities
“There are a lot of investment opportunities in agriculture, manufacturing, energy, agro processing industries and construction of bridges and roads,” Susan Sikaneta, High Commissioner of the Republic of Zambia, told reporters here on Thursday.
She was addressing an interactive session organised by city-based Indian Chamber of Commerce.
The bilateral trade between Zambia and India stood at $190 million in 2011.
“We would like to see the number go up by three times over the next few years,” Sikaneta said.
Infrastructure development
According to Sikaneta, the country has also been focusing on infrastructure development for tourism. She emphasised on developing places like South Luangwa National Park, Kafue National Park, Liuwa Plain National Park as tourist attractions.
The Zambian Government is also working on creating key policies to support infrastructure development at Kasaba Bay. The country has identified 20 investment sites in the Province, located in Northern Zambia.
“We need more and more investments in the cement industry as a lot of construction works are under way,” Sikaneta said.
FDI
Stating that the country would not restrict 100 per cent foreign direct investment, she said: “We will always encourage investors to have partnerships either with the Government or any Zambian company.”
A Zambian delegation including Sikaneta is likely to meet the West Bengal Commerce and Industries minister, Partha Chatterjee, on Friday.
Success in my Habit
Saturday, August 25, 2012
Thursday, August 23, 2012
German firm launches products targeting Govt sector
Bangalore: German software major SAP has announced a slew of products for the Indian Government sector.
The company has launched its Hindi version of ERP solutions as a part of its localisation initiative. This ERP software will enable the Government to update and manage documents, help users transact various processes and generate reports to deliver better citizen services.
ERP in Hindi
Along with this solution, SAP has also launched its File Lifecycle Management solution to improve the file management processes for public sectors in English and Hindi. This solution digitises file management encompassing all stages of the conventional file management process including filing of documents, workflow management, document uploads, file movement, correspondence, administrative and access regulations, alerts and analytics. According to the company, the Lifecycle Management solution was developed by SAP Labs India.
SAP ERP in Hindi will target business areas such as taxation, accounting, employee data, provident fund, payroll, loans, claims and employee self-services.
This solution was also developed by SAP Labs India, along with government agencies, including the Centre for Development of Advanced Computing (CDAC), and language experts and covered 4.5 million coding lines, according to SAP officials. SAP is not the first to come out with a solution aimed at the Government sector. In May, EMC came out with an automated solution at the launch.
Market size
The company said the market size for workflow management solutions in the government sector is pegged at $104 million and growing at 25 per cent every year.
The company has launched its Hindi version of ERP solutions as a part of its localisation initiative. This ERP software will enable the Government to update and manage documents, help users transact various processes and generate reports to deliver better citizen services.
ERP in Hindi
Along with this solution, SAP has also launched its File Lifecycle Management solution to improve the file management processes for public sectors in English and Hindi. This solution digitises file management encompassing all stages of the conventional file management process including filing of documents, workflow management, document uploads, file movement, correspondence, administrative and access regulations, alerts and analytics. According to the company, the Lifecycle Management solution was developed by SAP Labs India.
SAP ERP in Hindi will target business areas such as taxation, accounting, employee data, provident fund, payroll, loans, claims and employee self-services.
This solution was also developed by SAP Labs India, along with government agencies, including the Centre for Development of Advanced Computing (CDAC), and language experts and covered 4.5 million coding lines, according to SAP officials. SAP is not the first to come out with a solution aimed at the Government sector. In May, EMC came out with an automated solution at the launch.
Market size
The company said the market size for workflow management solutions in the government sector is pegged at $104 million and growing at 25 per cent every year.
Mahindra launches a new Reva plant
Bangalore: Mahindra Reva Electric Vehicles, part of the $15.4 billion Mahindra Group, inaugurated a new manufacturing facility in Bommasandra on the outskirts of Bangalore on Wednesday. In May 2010, Mahindra had acquired a majority stake in Reva Electric Car Company, subsequent to which the company was renamed Mahindra Reva Electric Vehicles.
The new manufacturing facility has an installed capacity to produce 30,000 vehicles annually, and is expected to reach full production capacity over the next three years. The company said the facility, which is scheduled to begin production in September, will produce around 6,000 vehicles to begin with.
Till date the Reva brand has sold 4,500 cars. The new facility will see the production of Mahindra Reva's new two-door electric car that it had showcased in the beginning of the year at the auto expo in Delhi. The new car is yet to get a name and a price tag. The current Reva vehicles retail between Rs 4.2 lakh and Rs 5.2 lakh (on road prices Bangalore). The combined investment into the plant and the new product range is over Rs 100 crore, the company said.
"This plant was conceived even before we came on board," Anand Mahindra, CMD of Mahindra Group, said. "Mahindra has turned this plant into a reality, from our expertise of putting up plants in record time and making them cost effective. This is the greenest plant in the Mahindra group," he said. The new manufacturing facility has been awarded the platinum rating from the Indian Green Building Council, becoming the first automobile manufacturing facility in India to receive this certification.
Electric vehicles like Reva are high priced because of battery and other equipments that are imported from around the world. But Mahindra said, "Those costs are now being driven down. In the mean time we will focus on the cost per kilometre." The company says that its electric vehicle technology gives buyers a cost per kilometre of 50 paise to 60 paise, which is 10 times lower than conventional gasoline vehicles.
Mahindra said that the government must put in place a road map for electric vehicles and should emulate the policies seen in countries such as Norway. In the last quarter, 2.6% of cars sold in Norway were electric vehicles, a sector which 18 months ago had a 0.01% share of the country's automobile market. In 1999, China had 40,000 electric two wheelers; today that number has crossed 100 million.
Mahindra said he was also keen to approach enlightened state governments that have strong leaderships, who understand the perils of urbanization and the need to cope with them quickly. "We should treat them as different countries. We should approach these leaders and ask them to put in place a comprehensive policy that would ensure that a particular percentage of vehicles would use alternate fuels by a certain time."
Delhi gives a 15% subsidy for electric vehicles as well as reductions on VAT and road tax. Chhattisgarh and Gujarat have also reduced taxes on electric vehicles, while Karnataka gives a 5% reduction on VAT and has a lower road tax.
The new manufacturing facility has an installed capacity to produce 30,000 vehicles annually, and is expected to reach full production capacity over the next three years. The company said the facility, which is scheduled to begin production in September, will produce around 6,000 vehicles to begin with.
Till date the Reva brand has sold 4,500 cars. The new facility will see the production of Mahindra Reva's new two-door electric car that it had showcased in the beginning of the year at the auto expo in Delhi. The new car is yet to get a name and a price tag. The current Reva vehicles retail between Rs 4.2 lakh and Rs 5.2 lakh (on road prices Bangalore). The combined investment into the plant and the new product range is over Rs 100 crore, the company said.
"This plant was conceived even before we came on board," Anand Mahindra, CMD of Mahindra Group, said. "Mahindra has turned this plant into a reality, from our expertise of putting up plants in record time and making them cost effective. This is the greenest plant in the Mahindra group," he said. The new manufacturing facility has been awarded the platinum rating from the Indian Green Building Council, becoming the first automobile manufacturing facility in India to receive this certification.
Electric vehicles like Reva are high priced because of battery and other equipments that are imported from around the world. But Mahindra said, "Those costs are now being driven down. In the mean time we will focus on the cost per kilometre." The company says that its electric vehicle technology gives buyers a cost per kilometre of 50 paise to 60 paise, which is 10 times lower than conventional gasoline vehicles.
Mahindra said that the government must put in place a road map for electric vehicles and should emulate the policies seen in countries such as Norway. In the last quarter, 2.6% of cars sold in Norway were electric vehicles, a sector which 18 months ago had a 0.01% share of the country's automobile market. In 1999, China had 40,000 electric two wheelers; today that number has crossed 100 million.
Mahindra said he was also keen to approach enlightened state governments that have strong leaderships, who understand the perils of urbanization and the need to cope with them quickly. "We should treat them as different countries. We should approach these leaders and ask them to put in place a comprehensive policy that would ensure that a particular percentage of vehicles would use alternate fuels by a certain time."
Delhi gives a 15% subsidy for electric vehicles as well as reductions on VAT and road tax. Chhattisgarh and Gujarat have also reduced taxes on electric vehicles, while Karnataka gives a 5% reduction on VAT and has a lower road tax.
StanChart PE invests Rs 250 cr in Inox India
Mumbai: Standard Chartered Private Equity (SCPE) has invested Rs 250 crore in Inox India Ltd (INOXCVA).
INOXCVA is a global manufacturer of cryogenic (low temperature) storage and transportation equipment. The company plans to use this money to fund its organic expansion plans and potential acquisitions.
“Over the next few years, we aim to have a significant presence in all major global markets including Europe. Our partnership with Standard Chartered will help us in leveraging the bank’s extensive reach and access its global oil and gas relationships,” said Siddharth Jain, Sponsor, INOX India Ltd.
Standard Chartered Private Equity has investments in GMR Airports, Redington, Varun Beverages, Greenko, Privi Organics, Bush Foods, Innoventive Industries, Karaikal Port and Craftsman Automation.
INOXCVA is a global manufacturer of cryogenic (low temperature) storage and transportation equipment. The company plans to use this money to fund its organic expansion plans and potential acquisitions.
“Over the next few years, we aim to have a significant presence in all major global markets including Europe. Our partnership with Standard Chartered will help us in leveraging the bank’s extensive reach and access its global oil and gas relationships,” said Siddharth Jain, Sponsor, INOX India Ltd.
Standard Chartered Private Equity has investments in GMR Airports, Redington, Varun Beverages, Greenko, Privi Organics, Bush Foods, Innoventive Industries, Karaikal Port and Craftsman Automation.
Overseas borrowing norms eased
New Delhi: The government and RBI on Wednesday further eased overseas borrowing norms for Indian companies by allowing those in the infrastructure and manufacturing space to refinance a higher level of their rupee loans using external loans.
While the government had earlier decided to allow these companies to borrow up to 50% of the forex earnings of the last three years, the cap has now been hiked to 75%. In addition, special purpose vehicles of these companies set up over a year ago will also be eligible to tap this route to raise resources at a lower cost.
The rule relaxation is in line with the finance ministry's thrust to prop up manufacturing activity and boost infrastructure construction.
To lower the cost of funds for the small scale sector too, Sidbi has been allowed to raise ECB (external commercial borrowings) that can be then lent to the segment that accounts for a large chunk of manufacturing as well as exports.
Similarly, National Housing Bank and housing finance companies have been allowed to use the ECB route to raise funds for low-cost housing projects.
While these steps were announced after a meeting of the high-level committee on ECBs, which met here, a move has also been initiated to get foreign institutional investors (FIIs) to invest up to $5 billion in rupee bonds, which will be within the overall corporate bond limit of $45 billion.
In a statement, the finance ministry further said refinancing of buyer's credit for import of capital goods in the infrastructure sector will be placed under automatic route. In addition, the high-level committee decided to increase the maturity period of buyer's credit to maximum of five years, giving companies more time to repay.
ECBs are considered attractive as cost of raising the loan is lower than that of domestic borrowings. Besides, they provide an additional avenue to access large amounts of funds from international financial markets.
While the government had earlier decided to allow these companies to borrow up to 50% of the forex earnings of the last three years, the cap has now been hiked to 75%. In addition, special purpose vehicles of these companies set up over a year ago will also be eligible to tap this route to raise resources at a lower cost.
The rule relaxation is in line with the finance ministry's thrust to prop up manufacturing activity and boost infrastructure construction.
To lower the cost of funds for the small scale sector too, Sidbi has been allowed to raise ECB (external commercial borrowings) that can be then lent to the segment that accounts for a large chunk of manufacturing as well as exports.
Similarly, National Housing Bank and housing finance companies have been allowed to use the ECB route to raise funds for low-cost housing projects.
While these steps were announced after a meeting of the high-level committee on ECBs, which met here, a move has also been initiated to get foreign institutional investors (FIIs) to invest up to $5 billion in rupee bonds, which will be within the overall corporate bond limit of $45 billion.
In a statement, the finance ministry further said refinancing of buyer's credit for import of capital goods in the infrastructure sector will be placed under automatic route. In addition, the high-level committee decided to increase the maturity period of buyer's credit to maximum of five years, giving companies more time to repay.
ECBs are considered attractive as cost of raising the loan is lower than that of domestic borrowings. Besides, they provide an additional avenue to access large amounts of funds from international financial markets.
India is world leader in concentrated solar heating, says Ministry
Chennai: With some 80 different applications of concentrated solar heating in practice in the country, India is the world leader in CSH, the Ministry of New and Renewable Energy has said.
When you speak of solar energy, you think mainly of solar panels and electricity flowing from them. Then you would think of appliances such as solar water heaters and solar lamps.
But the big use of solar energy lies in directly using the sun’s heat for use in industry. Lots of manufacturing units require just low-to-medium temperature heat, up to 250 degrees Celsius, mostly for drying stuff. Today, this heating is done by burning fuel oil, coal or biomass.
Here is where India scores, both in terms of potential and also applications developed, says the Ministry.
“India is leading the world with around 80 CSH applications,” it has said in a background note to UNDP-GEF sponsored project for nurturing CSH technologies in India.
Without going into details of the 80 applications, the Ministry has noted that the predominant use of concentrated solar heating is in “institutional cooking”.
In India, the current CSH market is about 2,000-3,000 square metres a year (of the concentrated area), says MNRE. The Global Environment Fund project will complement MNRE’s efforts of CSH technology, awareness, capacity, market and financial barriers and increase CSH sales to 15,000 square metres by 2016.
Direct emission reductions from the demonstration and replication projects during the 5-year project duration will be 39,200 tonnes of carbon-dioxide equivalent.
Over the economic lifetime of 20 years for the project supported CSH applications, cumulative direct emission reductions will be 315,000 tonnes of CO2, the Ministry says.
When you speak of solar energy, you think mainly of solar panels and electricity flowing from them. Then you would think of appliances such as solar water heaters and solar lamps.
But the big use of solar energy lies in directly using the sun’s heat for use in industry. Lots of manufacturing units require just low-to-medium temperature heat, up to 250 degrees Celsius, mostly for drying stuff. Today, this heating is done by burning fuel oil, coal or biomass.
Here is where India scores, both in terms of potential and also applications developed, says the Ministry.
“India is leading the world with around 80 CSH applications,” it has said in a background note to UNDP-GEF sponsored project for nurturing CSH technologies in India.
Without going into details of the 80 applications, the Ministry has noted that the predominant use of concentrated solar heating is in “institutional cooking”.
In India, the current CSH market is about 2,000-3,000 square metres a year (of the concentrated area), says MNRE. The Global Environment Fund project will complement MNRE’s efforts of CSH technology, awareness, capacity, market and financial barriers and increase CSH sales to 15,000 square metres by 2016.
Direct emission reductions from the demonstration and replication projects during the 5-year project duration will be 39,200 tonnes of carbon-dioxide equivalent.
Over the economic lifetime of 20 years for the project supported CSH applications, cumulative direct emission reductions will be 315,000 tonnes of CO2, the Ministry says.
Essar Oil in $1.2-b pact with Colombia to buy crude oil
Mumbai: Colombia's Ecopetrol is to sell 12 million barrels of its Castilla crude oil to Essar Oil over one year, in a deal worth $1.2 billion (around Rs 6,720 crore).
In a bid to reduce its dependence on oil from Iran, Essar Oil has entered into an agreement with the largest and primary petroleum company in Colombia.
The Colombian giant is the fourth largest oil and gas company in Latin America and accounts for 60 per cent of Colombia’s production.
According to the company's financial report released on July 24 and on its Web site, Ecopetrol’s total unconsolidated sales climbed from $7.74 billion last year to $8.26 billion this year.
Analysts said Essar’s interest in Colombian oil reflects a recent boom, with production of crude in the South American nation almost doubling over the past six years.
The first shipment of two million barrels has already been dispatched from Colombia's Covenas Port on July 29. It would take 35 days for the vessel to berth in Vadinar, Gujarat.
New sources
Essar has significantly enhanced processing of heavy and ultra heavy crude oil at its Vadinar refinery to improve refining margins, Essar Oil CEO L. K. Gupta told participants in the first quarter FY13 earnings conference call on August 14.
Gupta said the company was “developing new and new sources of crude oil as a matter of our strategy to diversify the crude oil sources. It is a continuous on-going exercise”.
The April-June quarter was significant for Essar Oil with the company completing the optimisation project of its Vadinar refinery four months ahead of schedule. This facility is now India’s second largest single location refinery with an annual capacity of 20 million tonnes (4005000 barrels per day).
Iran contract
Refusing to be drawn in on the Iran oil contract at the earnings call, Gupta had said, “We are working with the Government of India guidelines”. He did not say any thing beyond that the company was meeting its “contractual commitments and that Iran is making its contractual commitments.”
In May, the company said it aims to buy 15-20 per cent of its crude oil needs from the domestic market, 35-40 per cent from Latin America and 30-40 per cent from West Asia.
In a bid to reduce its dependence on oil from Iran, Essar Oil has entered into an agreement with the largest and primary petroleum company in Colombia.
The Colombian giant is the fourth largest oil and gas company in Latin America and accounts for 60 per cent of Colombia’s production.
According to the company's financial report released on July 24 and on its Web site, Ecopetrol’s total unconsolidated sales climbed from $7.74 billion last year to $8.26 billion this year.
Analysts said Essar’s interest in Colombian oil reflects a recent boom, with production of crude in the South American nation almost doubling over the past six years.
The first shipment of two million barrels has already been dispatched from Colombia's Covenas Port on July 29. It would take 35 days for the vessel to berth in Vadinar, Gujarat.
New sources
Essar has significantly enhanced processing of heavy and ultra heavy crude oil at its Vadinar refinery to improve refining margins, Essar Oil CEO L. K. Gupta told participants in the first quarter FY13 earnings conference call on August 14.
Gupta said the company was “developing new and new sources of crude oil as a matter of our strategy to diversify the crude oil sources. It is a continuous on-going exercise”.
The April-June quarter was significant for Essar Oil with the company completing the optimisation project of its Vadinar refinery four months ahead of schedule. This facility is now India’s second largest single location refinery with an annual capacity of 20 million tonnes (4005000 barrels per day).
Iran contract
Refusing to be drawn in on the Iran oil contract at the earnings call, Gupta had said, “We are working with the Government of India guidelines”. He did not say any thing beyond that the company was meeting its “contractual commitments and that Iran is making its contractual commitments.”
In May, the company said it aims to buy 15-20 per cent of its crude oil needs from the domestic market, 35-40 per cent from Latin America and 30-40 per cent from West Asia.
Cipla partners Aspen for Australia foray
New Delhi: Drug maker Cipla is partnering South Africa’s Aspen Pharmacare to cater to the Australian market, it is learnt. Under the pact, Cipla would develop generic products, to be launched by Aspen in Australia.
A source privy to the development told Business Standard, currently, the two companies were identifying products for commercialisation.
The move follows a recent buyout by Aspen in the Australian pharmaceutical space. The company had acquired the over-the-counter and pharmaceutical divisions of Australian drug maker Sigma Pharmaceuticals for $800 million. Analysts suggest such a deal with Cipla could help Aspen augment its offerings, while keeping the development cost low.
Cipla, which has traditionally supplied low-cost generic drugs to foreign partners, may see a rise in its export revenue once the joint venture is operational. In 2011-12, Cipla’s formulation exports stood below expectations, growing a mere seven per cent.
Cipla did not respond to an e-mail questionnaire sent to it.
Shares of Cipla on Tuesday closed at Rs 359.90 on the BSE, up 1.4 per cent from Friday’s close.
Analysts say the deal is significant for Cipla, as this would give the company “the first mover advantage”, since most pharmaceutical companies are still focused on developed markets like the US and Japan. Africa, Russia and Brazil are likely to be the next destinations for Indian pharmaceutical majors. “Not many Indian companies are present in Australia. So, Cipla would have that advantage, and its strategy has always been to look at emerging markets. Though there may not be a significant gain for Cipla in the near future, it will definitely benefit from the deal in the longer term,” a sector analyst said.
Compared to those in the US and other developed markets, the pharmaceutical market in Australia is relatively smaller, at about $20 billion annually, and is growing at single-digit rate. However, analysts say it could be a lucrative market for companies manufacturing low-cost products. “So far, Australia has been largely an innovator-product driven market and has mostly been dominated by multinational companies. But, with a large number of branded drugs facing patent expiry in the immediate future, it presents opportunities for the generic sector. Also, there is an increasing attempt to keep the prices of medicines low,” says Ashish Mehra, managing director, Strategic Decision Group.
As in the US, pharmaceutical benefit managers are promoting generic medicines in Australia to reduce healthcare costs. “They are even incentivising pharmacies to substitute expensive drugs with generics. More than 90 per cent of the doctors are comfortable with this,” says Mehra.
“For a company like Cipla, which has developed brands in generics, this is a very good opportunity. Now, with their new SEZ (special economic zone) manufacturing facility, they can quickly pick up volumes and get operating leverage,” another analyst said. Unlike other Southeast Asian countries that have local generic players, Australia has very few generic drug makers, says Mehra. This creates an opportunity for Cipla, which is among the early entrants there.
According to the source, Cipla was also eying similar deals in the near future.
A source privy to the development told Business Standard, currently, the two companies were identifying products for commercialisation.
The move follows a recent buyout by Aspen in the Australian pharmaceutical space. The company had acquired the over-the-counter and pharmaceutical divisions of Australian drug maker Sigma Pharmaceuticals for $800 million. Analysts suggest such a deal with Cipla could help Aspen augment its offerings, while keeping the development cost low.
Cipla, which has traditionally supplied low-cost generic drugs to foreign partners, may see a rise in its export revenue once the joint venture is operational. In 2011-12, Cipla’s formulation exports stood below expectations, growing a mere seven per cent.
Cipla did not respond to an e-mail questionnaire sent to it.
Shares of Cipla on Tuesday closed at Rs 359.90 on the BSE, up 1.4 per cent from Friday’s close.
Analysts say the deal is significant for Cipla, as this would give the company “the first mover advantage”, since most pharmaceutical companies are still focused on developed markets like the US and Japan. Africa, Russia and Brazil are likely to be the next destinations for Indian pharmaceutical majors. “Not many Indian companies are present in Australia. So, Cipla would have that advantage, and its strategy has always been to look at emerging markets. Though there may not be a significant gain for Cipla in the near future, it will definitely benefit from the deal in the longer term,” a sector analyst said.
Compared to those in the US and other developed markets, the pharmaceutical market in Australia is relatively smaller, at about $20 billion annually, and is growing at single-digit rate. However, analysts say it could be a lucrative market for companies manufacturing low-cost products. “So far, Australia has been largely an innovator-product driven market and has mostly been dominated by multinational companies. But, with a large number of branded drugs facing patent expiry in the immediate future, it presents opportunities for the generic sector. Also, there is an increasing attempt to keep the prices of medicines low,” says Ashish Mehra, managing director, Strategic Decision Group.
As in the US, pharmaceutical benefit managers are promoting generic medicines in Australia to reduce healthcare costs. “They are even incentivising pharmacies to substitute expensive drugs with generics. More than 90 per cent of the doctors are comfortable with this,” says Mehra.
“For a company like Cipla, which has developed brands in generics, this is a very good opportunity. Now, with their new SEZ (special economic zone) manufacturing facility, they can quickly pick up volumes and get operating leverage,” another analyst said. Unlike other Southeast Asian countries that have local generic players, Australia has very few generic drug makers, says Mehra. This creates an opportunity for Cipla, which is among the early entrants there.
According to the source, Cipla was also eying similar deals in the near future.
India implementing 14,000 km natural gas pipelines: RPN Singh
New Delhi: India is currently implementing about 14,000 km of natural gas pipelines projects, which is in addition to over 11,000 km of existing cross-country pipelines, Minister of State for Petroleum & Natural Gas RPN Singh said.
"Another 14,000 km of pipelines infrastructure is under various stages of implementation," an oil ministry statement quoting Singh said. The development of pipeline infrastructure is an ongoing process which will progress with increase in demand of natural gas, Singh told the Rajya Sabha on Tuesday.
The government has initiated multi-pronged measures to increase availability of natural gas in the country including intensifying domestic exploration and expeditious production of coal bed methane (CBM), he said.
Singh also clarified that the government was not planning to deregulate diesel, cooking gas and kerosene rates. The government is providing Rs 0.82 a litre subsidy on kerosene and Rs 22.58 per cylinder on cooking gas from the budget, besides subsidy by state oil firms, he said. In 2011-12, state oil marketing firms lost Rs 138,541 crore revenue on selling diesel, cooking gas and kerosene below market rates.
"Another 14,000 km of pipelines infrastructure is under various stages of implementation," an oil ministry statement quoting Singh said. The development of pipeline infrastructure is an ongoing process which will progress with increase in demand of natural gas, Singh told the Rajya Sabha on Tuesday.
The government has initiated multi-pronged measures to increase availability of natural gas in the country including intensifying domestic exploration and expeditious production of coal bed methane (CBM), he said.
Singh also clarified that the government was not planning to deregulate diesel, cooking gas and kerosene rates. The government is providing Rs 0.82 a litre subsidy on kerosene and Rs 22.58 per cylinder on cooking gas from the budget, besides subsidy by state oil firms, he said. In 2011-12, state oil marketing firms lost Rs 138,541 crore revenue on selling diesel, cooking gas and kerosene below market rates.
Iran emerges largest buyer of Indian soyameal
New Delhi: After basmati and crude oil, it is soyameal that’s getting India closer to Iran.
The West Asian country has emerged as the largest buyer of soyameal from India in recent months displacing Japan from the top slot. Until now, Iran has been largely sourcing soyameal from Latin American countries such as Brazil and Argentina.
Soyameal is used for live stock feed in sectors such as poultry, piggery and fisheries.
In the April-July period, Iran imported 4.4 lakh tonnes of soya meal accounting for over half of the India’s exports of 8.25 lakh tonne for the period. This is according to the data collated by Soyabean Processors Association of India (SOPA).
"Iran's buying has provided a fillip to our exports," said Rajesh Agrawal, spokesperson for SOPA. "They (Iran) have come at a time when no other country is buying in such large quantities due to prevailing high prices".
Bilateral payments
The recent bilateral payment mechanism that allows importers in Iran to make payments in Indian rupees is aiding the soyameal exports. Iran’s total requirement of soyameal is estimated to be between 1.2 and 1.5 million tonnes. “We are in a position to supply at least 40-50 per cent of their demand,” Agarwal said.
Price rally
Soyameal prices have more than doubled in the past 10-12 months from the levels of around $280 a tonne to a high of $680. This price rally was triggered by the drought-reduced crop size in Brazil and Argentina last year.
Further, prices continue to rule high as the worst drought in 56 years faced by the US, the largest producer, has shrunk this year crop by 12 per cent. The contracts for the new season starting October have been settled at $610 a tonne.
"We have a good window till January-February next year, when the South American crop comes into the market. Also the firm domestic demand is expected to keep prices firm," Agarwal said.
Exports
India exported 40 lakh tonnes of soyameal worth Rs 7,017 crore in 2011-12. Japan, which accounted for 30 per cent of the India’s exports last year, has been the largest buyer for the past five years. Vietnam, China, Korea, Myanmar and the Philippines are the other large buyers of India soyameal.
The West Asian country has emerged as the largest buyer of soyameal from India in recent months displacing Japan from the top slot. Until now, Iran has been largely sourcing soyameal from Latin American countries such as Brazil and Argentina.
Soyameal is used for live stock feed in sectors such as poultry, piggery and fisheries.
In the April-July period, Iran imported 4.4 lakh tonnes of soya meal accounting for over half of the India’s exports of 8.25 lakh tonne for the period. This is according to the data collated by Soyabean Processors Association of India (SOPA).
"Iran's buying has provided a fillip to our exports," said Rajesh Agrawal, spokesperson for SOPA. "They (Iran) have come at a time when no other country is buying in such large quantities due to prevailing high prices".
Bilateral payments
The recent bilateral payment mechanism that allows importers in Iran to make payments in Indian rupees is aiding the soyameal exports. Iran’s total requirement of soyameal is estimated to be between 1.2 and 1.5 million tonnes. “We are in a position to supply at least 40-50 per cent of their demand,” Agarwal said.
Price rally
Soyameal prices have more than doubled in the past 10-12 months from the levels of around $280 a tonne to a high of $680. This price rally was triggered by the drought-reduced crop size in Brazil and Argentina last year.
Further, prices continue to rule high as the worst drought in 56 years faced by the US, the largest producer, has shrunk this year crop by 12 per cent. The contracts for the new season starting October have been settled at $610 a tonne.
"We have a good window till January-February next year, when the South American crop comes into the market. Also the firm domestic demand is expected to keep prices firm," Agarwal said.
Exports
India exported 40 lakh tonnes of soyameal worth Rs 7,017 crore in 2011-12. Japan, which accounted for 30 per cent of the India’s exports last year, has been the largest buyer for the past five years. Vietnam, China, Korea, Myanmar and the Philippines are the other large buyers of India soyameal.
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