New Delhi: Government of India has signed Bilateral Investment Promotion and Protection Agreements (BIPA) with 82 countries, of which BIPAs with 72 countries have come into force. The list of all the 82 countries with whom India has signed BIPA along with the text of 72 BIPAs, which are currently in force is available at http://finmin.nic.in/bipa/bipa_index.asp. These Agreements are intended to promote bilateral investment flows by assuring fair and equitable treatment to investments on post establishment basis. These agreements contain provisions relating, inter-alia, to National Treatment, Most Favoured Nation Treatment and mechanism for dispute resolution on reciprocal basis.
These Agreements require the concerned Governments to handle a dispute notice by a foreign investor from the other country, covered by the Agreement, in terms of the provisions of the Agreement, which may also entail international arbitration. In view of the dispute notices received by the Government of India recently, Government has been taking steps to handle the specific dispute notices, in terms of the provisions of the applicable Agreement and the facts of the case. The generic issues arising from the said dispute notices are also being handled appropriately.
This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.
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GE to invest Rs 331 lakh in research & engineering
Bengaluru: GE, adding 400 people every year for 10 years at the John F Welch Technology Center (JFWTC), will be expanding the capabilities of the centre at an investment of Rs 331 lakh ($60 million).
The investment, which is focused on expanding the technology centre here includes setting up experimental labs and its infrastructure includes leading-edge research and engineering in areas of critical importance, the company said here on Thursday.
The centre would conduct research and engineering in cancer treatment and radiochemistry and other technology applications in healthcare, locomotive engines, heavy earth moving equipment and equipment for the energy sector, said Gopichand Katragadda , MD, GE India Technology Center (John F Welch Technology Centre).
The centre, established in September, 2000 here, is GE's first and largest integrated multi-disciplinary R&D and engineering centre outside the US. Investing heavily in advanced IT-enabled laboratories, the centre is among the leading engineering innovation across GE's diverse businesses.
The GE's John F Welch Technology Centre is set to touch 5,000 employees by the end of the year, according to Katragadda. Meanwhile, over the last decade, the Centre alone has contributed to over 1,850 patents being filed by GE, the parent company.
GE has been trying to get to 15-20 per cent savings in many of the devices it has been manufacturing. According to industry sources, the cost savings on many of the products through defeaturing has been to the tune of 50 per cent or more in many products. The company has particularly been aggressive in the healthcare sector. It has been able to remove two-thirds on the costs in the case of many devices.
Meanwhile, the company is investing about $200 million in a manufacturing facility in Pune.
The investment, which is focused on expanding the technology centre here includes setting up experimental labs and its infrastructure includes leading-edge research and engineering in areas of critical importance, the company said here on Thursday.
The centre would conduct research and engineering in cancer treatment and radiochemistry and other technology applications in healthcare, locomotive engines, heavy earth moving equipment and equipment for the energy sector, said Gopichand Katragadda , MD, GE India Technology Center (John F Welch Technology Centre).
The centre, established in September, 2000 here, is GE's first and largest integrated multi-disciplinary R&D and engineering centre outside the US. Investing heavily in advanced IT-enabled laboratories, the centre is among the leading engineering innovation across GE's diverse businesses.
The GE's John F Welch Technology Centre is set to touch 5,000 employees by the end of the year, according to Katragadda. Meanwhile, over the last decade, the Centre alone has contributed to over 1,850 patents being filed by GE, the parent company.
GE has been trying to get to 15-20 per cent savings in many of the devices it has been manufacturing. According to industry sources, the cost savings on many of the products through defeaturing has been to the tune of 50 per cent or more in many products. The company has particularly been aggressive in the healthcare sector. It has been able to remove two-thirds on the costs in the case of many devices.
Meanwhile, the company is investing about $200 million in a manufacturing facility in Pune.
IT solutions provider BS Software inks deal with Lufthansa Cargo AG for implementation of its air cargo solution iCargo
New Delhi: Leading IT solutions provider to the aviation industry, IBS Software, has entered into a contract with Lufthansa Cargo AG for the implementation of its air cargo solution, iCargo.
The air cargo solution will manage the entire air cargo movement of Lufthansa Cargo AG worldwide. Lufthansa Cargo AG is the airline cargo service provider in the Lufthansa Group.
The deal worth Rs 700 crore has three segments and IBS Software has major share of the contract. The contract is one of the largest IT system deals by Lufthansa Group, the spokesmen of IBS Software and Lufthansa Group said in a joint press conference at Thiruvananthapuram.
"IBS being an IT product company, we consider this as a landmark agreement", V K Mathews, executive chairman of IBS said. IBS was selected from among 400 solution providers after a selection process that lasted 18 months, he pointed out. The contract is for a period of ten years.
IBS Software's new generation iCargo will be deployed globally across 100 stations and will have user base of over 4000 staff members. Lufthansa Systems will provide comprehensive consulting services during and after the implementation phase. IBM is in charge of system integration.
The air cargo solution will manage the entire air cargo movement of Lufthansa Cargo AG worldwide. Lufthansa Cargo AG is the airline cargo service provider in the Lufthansa Group.
The deal worth Rs 700 crore has three segments and IBS Software has major share of the contract. The contract is one of the largest IT system deals by Lufthansa Group, the spokesmen of IBS Software and Lufthansa Group said in a joint press conference at Thiruvananthapuram.
"IBS being an IT product company, we consider this as a landmark agreement", V K Mathews, executive chairman of IBS said. IBS was selected from among 400 solution providers after a selection process that lasted 18 months, he pointed out. The contract is for a period of ten years.
IBS Software's new generation iCargo will be deployed globally across 100 stations and will have user base of over 4000 staff members. Lufthansa Systems will provide comprehensive consulting services during and after the implementation phase. IBM is in charge of system integration.
Unilever opens technology center in Bangalore
Bengaluru: Consumer products maker Unilever on Thursday said it has opened a technology support and innovation center in Bangalore to provide IT services for its global operations as well as explore innovative ways of using technology to improve its business.
The 220,000 sq ft center in the outskirts of Bangalore, which currently houses 1400 staff, will be its largest technology center.
Unilever, which operates in India as Hindustan Unilever Ltd that sells popular brands such as Lipton, Sunsilk and Lux said the new center will provide services such as IT and information management services to both Unilever as well as its Indian arm. Unilever owns 52% stake in BSE-listed HUL , which also makes Kwality Wall's ice creams and Close Up toothpaste.
Unilever CEO Paul Polman said the Bangalore center will leverage the information technology ecosystem in India. The company said it plans to further scale up the capacity of its Bangalore center. The IT services from the center include building and supporting global SAP platforms for both companies.
Some of Unilever's existing IT services vendors such as Infosys and Accenture will continue to support the company and will have their staff based at the new center.
Unilever had recently shut four of its plants and cut close to 800 jobs in the UK.
Last month, the Anglo-Dutch company had reported its third quarter revenues 13.4 billion, aided by strong sales from developing markets. Emerging markets, which includes India, China, Indonesia etc, contributes about 55% of Unilever's revenues at present.
The 220,000 sq ft center in the outskirts of Bangalore, which currently houses 1400 staff, will be its largest technology center.
Unilever, which operates in India as Hindustan Unilever Ltd that sells popular brands such as Lipton, Sunsilk and Lux said the new center will provide services such as IT and information management services to both Unilever as well as its Indian arm. Unilever owns 52% stake in BSE-listed HUL , which also makes Kwality Wall's ice creams and Close Up toothpaste.
Unilever CEO Paul Polman said the Bangalore center will leverage the information technology ecosystem in India. The company said it plans to further scale up the capacity of its Bangalore center. The IT services from the center include building and supporting global SAP platforms for both companies.
Some of Unilever's existing IT services vendors such as Infosys and Accenture will continue to support the company and will have their staff based at the new center.
Unilever had recently shut four of its plants and cut close to 800 jobs in the UK.
Last month, the Anglo-Dutch company had reported its third quarter revenues 13.4 billion, aided by strong sales from developing markets. Emerging markets, which includes India, China, Indonesia etc, contributes about 55% of Unilever's revenues at present.
PPP in railways allowed for better connectivity
New Delhi: The government today approved a private investment policy in the railways and the revised cost estimate of Rs 2,325 crore for modernising Kolkata ’s Netaji Subhash Chandra Bose International Airport .
The railways, whose performance in public-private partnership projects has been dismal, will try five different models for inviting private sector participation for last-mile connectivity projects. From generating funding by customers and joint venture projects with equity participation by the railways to projects on a build-operate-transfer ( BOT ) and BOT annuity basis, the government hopes it will be able to have speedier implementation.
The proposed framework is also expected to help the railways increase freight volumes. Over two dozen projects in the mining and power sector have been identified for providing rail connectivity.
In a late evening Cabinet meeting, the government also approved expansion of Kolkata’s international airport, including construction of an integrated terminal building. The formal inauguration is likely on January 23, birthday of Subhash Chandra Bose.
Ethanol, posts
The government today also made five per cent ethanol blending with petrol mandatory. The Cabinet Committee on Economic Affairs ( CCEA ) said the procurement price of ethanol would now be decided between oil marketing companies and the supplier and in case of any shortfall in domestic supply, the OMCs and chemical companies are free to import. The ethanol blending programme is being implemented in 13 states, with a blending level of about two per cent against the compulsory target of five per cent.
A proposal for modernisation of the department of posts was also approved by the CCEA. It okayed Rs 4,909 crore for modernisation and computerisation of all post offices (POs), including branch ones in rural areas. There are 155,000 POs across the country. The information technology project of the department is a part of the Mission Mode Project included in the National e-Governance Plan.
The Cabinet Committee on Infrastructure also approved a project for single point mooring and allied facilities for import of crude oil at Kandla port, on a BOT basis for a period of 30 years at an estimated cost of Rs 622 crore.
The railways, whose performance in public-private partnership projects has been dismal, will try five different models for inviting private sector participation for last-mile connectivity projects. From generating funding by customers and joint venture projects with equity participation by the railways to projects on a build-operate-transfer ( BOT ) and BOT annuity basis, the government hopes it will be able to have speedier implementation.
The proposed framework is also expected to help the railways increase freight volumes. Over two dozen projects in the mining and power sector have been identified for providing rail connectivity.
In a late evening Cabinet meeting, the government also approved expansion of Kolkata’s international airport, including construction of an integrated terminal building. The formal inauguration is likely on January 23, birthday of Subhash Chandra Bose.
Ethanol, posts
The government today also made five per cent ethanol blending with petrol mandatory. The Cabinet Committee on Economic Affairs ( CCEA ) said the procurement price of ethanol would now be decided between oil marketing companies and the supplier and in case of any shortfall in domestic supply, the OMCs and chemical companies are free to import. The ethanol blending programme is being implemented in 13 states, with a blending level of about two per cent against the compulsory target of five per cent.
A proposal for modernisation of the department of posts was also approved by the CCEA. It okayed Rs 4,909 crore for modernisation and computerisation of all post offices (POs), including branch ones in rural areas. There are 155,000 POs across the country. The information technology project of the department is a part of the Mission Mode Project included in the National e-Governance Plan.
The Cabinet Committee on Infrastructure also approved a project for single point mooring and allied facilities for import of crude oil at Kandla port, on a BOT basis for a period of 30 years at an estimated cost of Rs 622 crore.
Government clears the National Pharmaceuticals Pricing PolicyGovernment clears the National Pharmaceuticals Pricing Policy
New Delhi: The Government of India has cleared the National Pharmaceutical Pricing Policy. The policy aims to bring 348 essential drugs under price control, which will lead to average reduction of around 20 percent in prices.
“The National Pharmaceutical Pricing Policy has been approved by the Cabinet with an objective to put in place a regulatory framework for pricing of drugs to ensure their availability at reasonable prices,” as per an official source.
Currently, prices of 74 bulk drugs and their formulations is controlled by the Government of India with the help of the National Pharmaceutical Pricing Authority (NPPA).
Earlier, the fix prices based on weighted average of brands which have more than 1 per cent market share was proposed by the Group of Ministers (GoM), headed by Mr Sharad Pawar, Union Minister for Agriculture and Food Processing Industries.The Government has also considered providing sufficient opportunity for innovation and competition to support growth of the Indian pharmaceutical industry.
"Pharma industry allows for an increase in prices of 2-3 per cent every year. If an average 20 per cent reduction in prices of essential drugs happens, it means buying at 2004 prices. This will benefit consumers," as per Ameesh Masurekar, Director, All Indian Origin Chemists & Distributors Ltd (AIOCD).
The scope of the policy is estimated to be around 17 per cent of the total pharmaceutical market, while coupling it with the existing medicines under price control, the coverage increases to around 30 per cent.
“The National Pharmaceutical Pricing Policy has been approved by the Cabinet with an objective to put in place a regulatory framework for pricing of drugs to ensure their availability at reasonable prices,” as per an official source.
Currently, prices of 74 bulk drugs and their formulations is controlled by the Government of India with the help of the National Pharmaceutical Pricing Authority (NPPA).
Earlier, the fix prices based on weighted average of brands which have more than 1 per cent market share was proposed by the Group of Ministers (GoM), headed by Mr Sharad Pawar, Union Minister for Agriculture and Food Processing Industries.The Government has also considered providing sufficient opportunity for innovation and competition to support growth of the Indian pharmaceutical industry.
"Pharma industry allows for an increase in prices of 2-3 per cent every year. If an average 20 per cent reduction in prices of essential drugs happens, it means buying at 2004 prices. This will benefit consumers," as per Ameesh Masurekar, Director, All Indian Origin Chemists & Distributors Ltd (AIOCD).
The scope of the policy is estimated to be around 17 per cent of the total pharmaceutical market, while coupling it with the existing medicines under price control, the coverage increases to around 30 per cent.
JLR to invest Rs 18,000 crore a year on capex
Chennai: Jaguar Land Rover will incur capital expenditure of £ 2 billion (Rs 18,000 crore) a year over the medium term. This will be mainly on product development, according to the ratings agency CRISIL.
In a recent conference call with analysts on November 7, the company said that it had spent £ 2 billion last year on product development. Now, according to CRISIL, the company will continue to incur this level of expenditure each year, over the next few years.
“JLR will continue to incur capex about £ 2 billion per annum over the medium term to enhance and diversify its product range, meet stringent emission norms, improve engine manufacturing capabilities, and expand manufacturing footprint in the developing world,” CRISIL said.
The success of this capex programme is critical for JLR to achieve diversified growth, strengthen its business risk profile and maintain its competitive position, the rating agency noted.
JLR’s capex as a percentage of sales is expected to be higher than that of JLR’s larger peer brands such as BMW, Audi and Benz over the medium term increasing the balance sheet risks. However, CRISIL notes that JLR’s capex is modular in nature and in case of volume slowdown due to weak macroeconomic scenario in its key markets, JLR “would prudently defer part of its capex.”
JLR, the company that manufactures the two British iconic brands, Jaguar and Land Rover, was acquired by the Tata group in 2008.
In the second quarter of the current year, JLR sold 86,000 units, 37 per cent higher than in the same period last year. China accounted for the bulk (21 per cent) of the sales.
JLR’s sales for the quarter rose to £ 3.6 billion compared with £ 2.7 billion in the same quarter last year. Net profit also increased 16 per cent to £ 232 million.
In a rating exercise done in July, the ratings agency Standard & Poor commented that JLR’s had “significantly outperformed our base-case expectations.”
It said that while JLR’s investments would “impair profitability”, these investments were needed to support future growth of the Land Rover brand, allow the repositioning of the Jaguar brand and help JLR’s progress towards complying with CO2 regulations.
In a recent conference call with analysts on November 7, the company said that it had spent £ 2 billion last year on product development. Now, according to CRISIL, the company will continue to incur this level of expenditure each year, over the next few years.
“JLR will continue to incur capex about £ 2 billion per annum over the medium term to enhance and diversify its product range, meet stringent emission norms, improve engine manufacturing capabilities, and expand manufacturing footprint in the developing world,” CRISIL said.
The success of this capex programme is critical for JLR to achieve diversified growth, strengthen its business risk profile and maintain its competitive position, the rating agency noted.
JLR’s capex as a percentage of sales is expected to be higher than that of JLR’s larger peer brands such as BMW, Audi and Benz over the medium term increasing the balance sheet risks. However, CRISIL notes that JLR’s capex is modular in nature and in case of volume slowdown due to weak macroeconomic scenario in its key markets, JLR “would prudently defer part of its capex.”
JLR, the company that manufactures the two British iconic brands, Jaguar and Land Rover, was acquired by the Tata group in 2008.
In the second quarter of the current year, JLR sold 86,000 units, 37 per cent higher than in the same period last year. China accounted for the bulk (21 per cent) of the sales.
JLR’s sales for the quarter rose to £ 3.6 billion compared with £ 2.7 billion in the same quarter last year. Net profit also increased 16 per cent to £ 232 million.
In a rating exercise done in July, the ratings agency Standard & Poor commented that JLR’s had “significantly outperformed our base-case expectations.”
It said that while JLR’s investments would “impair profitability”, these investments were needed to support future growth of the Land Rover brand, allow the repositioning of the Jaguar brand and help JLR’s progress towards complying with CO2 regulations.
Greenko buys hydel projects for Rs 132 cr
Hyderabad: Renewable energy company Greenko has acquired three hydel power projects based in Himachal Pradesh for about Rs 132 crore (€18.7 million).
The Hyderabad-based company, listed on the London Stock Exchange’s AIM, has a generating portfolio of over 275 MW and is on track to set up total installed capacity of 1,000 MW by 2015, including wind power projects.
Greenko has acquired companies , apart from setting up its own portfolio of projects, including wind power generation farms in Maharashtra and Andhra Pradesh.
In March 2012, Greenko had announced the acquisition of a 32 MW cluster of operating hydel power projects in Himachal Pradesh and concluded the transaction in April. It had committed to acquire another 15 MW subject to certain conditions being fulfilled.
Sustainable hydel power assets
Anil Chalamalasetty, Chief Executive Officer and MD, Greenko, said these are amongst sustainable hydel power assets. The company has 151 MW of operational hydel assets, another 189 MW is under construction, and an additional 182 MW is under various stages of development.
The company is also evaluating more companies for acquisition. The Greenko management anticipates growing opportunity to increase hydel power portfolio through acquisition, be it operational, in construction, or at advanced stages of development.
The power generated from the hydel power plants will be sold to the State electricity board through the power purchase agreement. The company expects an average plant load factor of 60 per cent with the purchase price of Rs 2.95 per unit. These projects are registered under the clean development mechanism.
The Hyderabad-based company, listed on the London Stock Exchange’s AIM, has a generating portfolio of over 275 MW and is on track to set up total installed capacity of 1,000 MW by 2015, including wind power projects.
Greenko has acquired companies , apart from setting up its own portfolio of projects, including wind power generation farms in Maharashtra and Andhra Pradesh.
In March 2012, Greenko had announced the acquisition of a 32 MW cluster of operating hydel power projects in Himachal Pradesh and concluded the transaction in April. It had committed to acquire another 15 MW subject to certain conditions being fulfilled.
Sustainable hydel power assets
Anil Chalamalasetty, Chief Executive Officer and MD, Greenko, said these are amongst sustainable hydel power assets. The company has 151 MW of operational hydel assets, another 189 MW is under construction, and an additional 182 MW is under various stages of development.
The company is also evaluating more companies for acquisition. The Greenko management anticipates growing opportunity to increase hydel power portfolio through acquisition, be it operational, in construction, or at advanced stages of development.
The power generated from the hydel power plants will be sold to the State electricity board through the power purchase agreement. The company expects an average plant load factor of 60 per cent with the purchase price of Rs 2.95 per unit. These projects are registered under the clean development mechanism.
Russia's NIS Glonass to partner BSNL, MTNL to deliver GPS-like services in India
Kolkata: The governmment will shortly clear a three-way partnership between Russia's NIS Glonass, BSNL and MTNLBSE for delivering satellite-based navigation services in India, top officials in the telecom department told ET.
"A draft memorandum of understanding (MoU) between NIS Glonass, BSNL and MTNL for provision of satellite navigation services is being considered by the government," says an internal telecom department note reviewed by ET, which adds that the Russian government recently informed the foreign ministry about making the Glonass system available to the global community for free use.
The development comes on the heels of Russia's plans to roll out satellite-based information services akin to `GPS' on the Glonass system in international markets like India. Glonass is a Russian space-based system with 23 operational satellites deployed for delivering information services.
NIS Glonass is a wholly-owned subsidiary of the Russian public-private partnership company, Navigation-Information Systems, whose main stakeholders are Russian conglomerate JSFC Sistema (70.01%) and JSC Russian Space Systems (29.99%) .
Details of this tripartite alliance remain under wraps, but a top official in the Russian Embassy said formation of this three-way partnership with India's leading telecom PSUs would reinforce Indo-Russian collaborations in advanced technology.
"We hope the Indian government will issue the necessary clearances expeditiously to NIS Glonass for this crucial telecoms partnership to take flight. It is an important milestone in Indo-Russian collaboration in advanced technology and space research," said this official who did not wish to be named.
Glonass or "Global Navigation Satellite System" was only used by the Russian military for years and was made available to civilians only in 2007. Similar to the US's Global Positioning System (GPS), it is also a radio-based satellite navigation system that provides location and time information anywhere in the planet, and is equipped to lend critical support to military, civil and commercial users worldwide.
NIS Glonass has earlier reportedly indicated plans to participate in Indian government projects relating to passenger information system, fleet management systems and modernising the police forces. It is also planned to develop telematics terminals in India that can work on both GPS and Glonass satellite navigation systems, said two people familiar with developments. Company executives could not be reached for comment.
Though the Glonass satellite constellation offers global coverage, its commercialisation, especially development of the user segment, it has been lacking compared to the US's GPS system. Recently, the Russian government reportedly imposed an import duty on all GPS-capable devices, including mobile phones, unless they also supported the Glonass system.
"A draft memorandum of understanding (MoU) between NIS Glonass, BSNL and MTNL for provision of satellite navigation services is being considered by the government," says an internal telecom department note reviewed by ET, which adds that the Russian government recently informed the foreign ministry about making the Glonass system available to the global community for free use.
The development comes on the heels of Russia's plans to roll out satellite-based information services akin to `GPS' on the Glonass system in international markets like India. Glonass is a Russian space-based system with 23 operational satellites deployed for delivering information services.
NIS Glonass is a wholly-owned subsidiary of the Russian public-private partnership company, Navigation-Information Systems, whose main stakeholders are Russian conglomerate JSFC Sistema (70.01%) and JSC Russian Space Systems (29.99%) .
Details of this tripartite alliance remain under wraps, but a top official in the Russian Embassy said formation of this three-way partnership with India's leading telecom PSUs would reinforce Indo-Russian collaborations in advanced technology.
"We hope the Indian government will issue the necessary clearances expeditiously to NIS Glonass for this crucial telecoms partnership to take flight. It is an important milestone in Indo-Russian collaboration in advanced technology and space research," said this official who did not wish to be named.
Glonass or "Global Navigation Satellite System" was only used by the Russian military for years and was made available to civilians only in 2007. Similar to the US's Global Positioning System (GPS), it is also a radio-based satellite navigation system that provides location and time information anywhere in the planet, and is equipped to lend critical support to military, civil and commercial users worldwide.
NIS Glonass has earlier reportedly indicated plans to participate in Indian government projects relating to passenger information system, fleet management systems and modernising the police forces. It is also planned to develop telematics terminals in India that can work on both GPS and Glonass satellite navigation systems, said two people familiar with developments. Company executives could not be reached for comment.
Though the Glonass satellite constellation offers global coverage, its commercialisation, especially development of the user segment, it has been lacking compared to the US's GPS system. Recently, the Russian government reportedly imposed an import duty on all GPS-capable devices, including mobile phones, unless they also supported the Glonass system.
Krishnapatnam port commissions cranes to handle export of cars
Krishnapatnam: The privately-run Krishnapatnam Port in Andhra Pradesh is likely to compete with Chennai and Ennore ports to handle export of cars that are manufactured in the Chennai and Bangalore regions.
The port, located 180 km north of Chennai, is constructing a roll-on roll-off berth in the south terminal.
“We hope to have the berth ready to handle cars by the first quarter of 2013-14,” said Anil Yendluri, Chief Executive Officer, Krishnapatnam Port and Director, Krishnapatnam Rail Co Ltd.
The port is in discussion with all the car manufacturers, he said but did not divulge their names. Hyundai, Ford, Nissan and Renault make cars in the Chennai region. Many officials of the manufacturers have already visited the port, he said. The Chennai port annually handles over three lakh cars while at Ennore Port, the cumulative car handling has crossed two lakhs. The Ennore port commenced car handling in September 2010.
Yendluri claimed that Krishnapatnam being a private port, there is an advantage for customers in getting flexibility in rates.
However, since there is a space constraint in Chennai and Ennore ports, for manufacturers, the next available option is Krishnapatnam, which is accessible through both rail and road. The port has nearly 45 km of railway line inside the campus, he said.
He felt that distance was not an issue that will stop the manufacturers looking at Krishnapatnam. If they want space and cost advantages, they will consider this port, he said. The port is promoted by the Hyderabad-based C.V.R. Group. The group’s flagship company, Navayuga Engineering Company Ltd, is the EPC contractor for the port.
Meanwhile, the port has commissioned five super post Panamax rail-mounted quay cranes at its container terminal. The all-weather terminal can handle 1.2 million TEUs (twenty foot equivalent units) annually. With a draft of 18 metres, the port is capable of handling largest container vessels, he said. The cranes were commissioned for the container vessel Buxhill, an MSC-operated weekly service connecting Krishnapatman port and Colombo.
Yendluri said there is a plan to increase the container handling capacity to six million TEUs in the next four years — making it one of the largest container terminals on the East Coast.
The port, located 180 km north of Chennai, is constructing a roll-on roll-off berth in the south terminal.
“We hope to have the berth ready to handle cars by the first quarter of 2013-14,” said Anil Yendluri, Chief Executive Officer, Krishnapatnam Port and Director, Krishnapatnam Rail Co Ltd.
The port is in discussion with all the car manufacturers, he said but did not divulge their names. Hyundai, Ford, Nissan and Renault make cars in the Chennai region. Many officials of the manufacturers have already visited the port, he said. The Chennai port annually handles over three lakh cars while at Ennore Port, the cumulative car handling has crossed two lakhs. The Ennore port commenced car handling in September 2010.
Yendluri claimed that Krishnapatnam being a private port, there is an advantage for customers in getting flexibility in rates.
However, since there is a space constraint in Chennai and Ennore ports, for manufacturers, the next available option is Krishnapatnam, which is accessible through both rail and road. The port has nearly 45 km of railway line inside the campus, he said.
He felt that distance was not an issue that will stop the manufacturers looking at Krishnapatnam. If they want space and cost advantages, they will consider this port, he said. The port is promoted by the Hyderabad-based C.V.R. Group. The group’s flagship company, Navayuga Engineering Company Ltd, is the EPC contractor for the port.
Meanwhile, the port has commissioned five super post Panamax rail-mounted quay cranes at its container terminal. The all-weather terminal can handle 1.2 million TEUs (twenty foot equivalent units) annually. With a draft of 18 metres, the port is capable of handling largest container vessels, he said. The cranes were commissioned for the container vessel Buxhill, an MSC-operated weekly service connecting Krishnapatman port and Colombo.
Yendluri said there is a plan to increase the container handling capacity to six million TEUs in the next four years — making it one of the largest container terminals on the East Coast.
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