Kolkata: Ambuja Cements Ltd has chalked out an investment plan of some Rs 2000 crore entailing enhancement of its cement capacities in Rajasthan and northern regions. The proposed project at Rajasthan would add five mil-lion tonne capacity to the company's total production.
"We are adding new capacities. We are actively pursuing the five million tonne capacity expansion in Rajasthan and neighbouring northern regions with an investment of Rs 2000 crore," Ajay Kapur, chief executive officer of Ambuja Cements. He, however, did not disclose any timeframe for the project.
He was here to announce the company's expansion plans at the 1.5 million tonne Sankrail plant in Howrah district. The Sankrail plant's expansion programme includes an investment of Rs 325 crore where the capacity would increase from its present capacity of 1.5 million tonne per annum to 2.4 million tonne cement per annum.
According to Kapur, the company controls 10 % of the overall Indian cement market currently. "We would like to sustain the same for the next five years," he said.
Meanwhile, Kapur said, the company would add 0.9 mt capacity to the existing plant Sankrail over the next two years.
Success in my Habit
Monday, December 31, 2012
Essel Group enters i-banking, PE space
Mumbai: The $4-billion Essel Group, a media conglomerate, has made a foray into the financial services sector.
The Subhash Chandra-owned group has set up a new arm, Essel Financial Services Ltd. It has brought in Amit Goenka, former national director, capital transactions, at advisory firm Knight Frank, as managing director and chief executive.
It has set up two businesses, private equity and investment banking, under the names of Essel Finance Managers and CAPSTAR, respectively, under the holding company, Essel Financial Services.
CAPSTAR, to focus on deals in infrastructure, real estate and financial services, has appointed about 15 people and set up an office each in Mumbai, Noida, Bangalore and Delhi. It is opening one each in Chennai and Pune. CAPSTAR will focus on mergers and acquisitions (M&As), pre-Initial Public Offering (IPO) deals, qualified institutional placements and portfolio management services. Abhinav Bhushan, former head of equities-capital transactions at Knight Frank India, will head CAPSTAR.
It is learnt that CAPSTAR has developed a pipeline of deals worth Rs 2,000 crore, with focus on project sales in infrastructure and real estate.
After covering the domestic markets, CAPSTAR also has plans for global expansion, with a plan to open offices in Singapore and London by 2013. Goenka said the company was not looking for joint ventures or alliances with global banks.
Apart from i-banking, the group is launching a private equity fund under Essel Finance Managers. It has appointed Sumit Kumar of Beekman Helix India to head it. The fund’s details are not known.
Goenka said, “CAPSTAR is a focused player, with ability to transact on mid-size to large deals in sectors such as real estate and financial services...We can also selectively invest in the deals where we advise.” He said the rationale behind Essel Group’s move was to leverage on the brand reach with investors, consumers and institutions.
The Essel Group has presence in media (Zee Entertainment, Zee News and DNA), technology (Dish TV, Wire & Wireless India), packaging (Essel Propack), entertainment (Playwin, Fun Multiplex), infrastructure (Essel Infraprojects, E-City Real Estate, Siti Energy) and education (Zee Learn).
Though India Inc saw a decline in M&A activity in 2012, the slight improvement in these deals in the third quarter brings hope for investment bankers. According to an Ernst & Young report, India’s M&A deal value for 2012 reached $31.4 billion, a slight decline from $36.6 bn in 2011. In deal count, 2012 recorded 809 as compared to 880 in 2011.
“The third quarter witnessed a strong surge in M&A activity and might be an indicator of the return of the market’s appetite for deal-making. This momentum is expected to continue in 2013. Indian companies, which played the waiting game in 2012, have accumulated huge cash piles,” says the report.
A perceived comeback of the IPO market by the end of 2012, with the listing of Bharti Infratel, had cheered i-bankers.
The Subhash Chandra-owned group has set up a new arm, Essel Financial Services Ltd. It has brought in Amit Goenka, former national director, capital transactions, at advisory firm Knight Frank, as managing director and chief executive.
It has set up two businesses, private equity and investment banking, under the names of Essel Finance Managers and CAPSTAR, respectively, under the holding company, Essel Financial Services.
CAPSTAR, to focus on deals in infrastructure, real estate and financial services, has appointed about 15 people and set up an office each in Mumbai, Noida, Bangalore and Delhi. It is opening one each in Chennai and Pune. CAPSTAR will focus on mergers and acquisitions (M&As), pre-Initial Public Offering (IPO) deals, qualified institutional placements and portfolio management services. Abhinav Bhushan, former head of equities-capital transactions at Knight Frank India, will head CAPSTAR.
It is learnt that CAPSTAR has developed a pipeline of deals worth Rs 2,000 crore, with focus on project sales in infrastructure and real estate.
After covering the domestic markets, CAPSTAR also has plans for global expansion, with a plan to open offices in Singapore and London by 2013. Goenka said the company was not looking for joint ventures or alliances with global banks.
Apart from i-banking, the group is launching a private equity fund under Essel Finance Managers. It has appointed Sumit Kumar of Beekman Helix India to head it. The fund’s details are not known.
Goenka said, “CAPSTAR is a focused player, with ability to transact on mid-size to large deals in sectors such as real estate and financial services...We can also selectively invest in the deals where we advise.” He said the rationale behind Essel Group’s move was to leverage on the brand reach with investors, consumers and institutions.
The Essel Group has presence in media (Zee Entertainment, Zee News and DNA), technology (Dish TV, Wire & Wireless India), packaging (Essel Propack), entertainment (Playwin, Fun Multiplex), infrastructure (Essel Infraprojects, E-City Real Estate, Siti Energy) and education (Zee Learn).
Though India Inc saw a decline in M&A activity in 2012, the slight improvement in these deals in the third quarter brings hope for investment bankers. According to an Ernst & Young report, India’s M&A deal value for 2012 reached $31.4 billion, a slight decline from $36.6 bn in 2011. In deal count, 2012 recorded 809 as compared to 880 in 2011.
“The third quarter witnessed a strong surge in M&A activity and might be an indicator of the return of the market’s appetite for deal-making. This momentum is expected to continue in 2013. Indian companies, which played the waiting game in 2012, have accumulated huge cash piles,” says the report.
A perceived comeback of the IPO market by the end of 2012, with the listing of Bharti Infratel, had cheered i-bankers.
Century Plyboards to set up unit in Myanmar
Kolkata: Century Plyboards (India) Ltd (CPIL) will commission its 25,000 sq metres a day plywood unit in March in Myanmar capital Yangon.
“We are setting up the unit on 11 acres in an industrial estate on a 30-year renewable lease. Work on putting up the units is currently on,” Sajjan Bhajanka, Managing Director, told Business Line here on Saturday.
Subsidiary Floated
The company has floated a Myanmar-incorporated wholly owned subsidiary - Century Plyboards Myanmar Ltd - for the export-oriented project, which is among a few from India.
The company will fund the Rs 30-crore project by its internal resources. CPIL has also secured raw material (1.8 cubic metre stumps) availability through a quota system as well as auctions.
“Our plan is to bring veneers or plywoods to India,” he said. This project is important for the company as it would replace its import of timber from Myanmar.
“Currently, we import around 35,000 Hopus tonnes of timber from the country. But this source would dry out in 2014 because of a pre-announced timber export ban by the Myanmar Government,” he explained.
In 2011-12, total imports from Myanmar to India, mostly forest and agriculture product, were worth $1,046 million. At present, six Indian companies have made investments in Myanmar and 70 others are looking to invest in the country.
Kandla Project
Century Plyboards, he said, hoped to achieve the financial closure for the proposed Greenfield project at Kandla in Gujarat next month. This project would also have a capacity of producing 25,000 sq metres of plywood a day and will cost Rs 50 crore. “Two thirds of the project cost will be financed by bank borrowings,” he added. CPIL has bought 20 acres for the project.
“We are setting up the unit on 11 acres in an industrial estate on a 30-year renewable lease. Work on putting up the units is currently on,” Sajjan Bhajanka, Managing Director, told Business Line here on Saturday.
Subsidiary Floated
The company has floated a Myanmar-incorporated wholly owned subsidiary - Century Plyboards Myanmar Ltd - for the export-oriented project, which is among a few from India.
The company will fund the Rs 30-crore project by its internal resources. CPIL has also secured raw material (1.8 cubic metre stumps) availability through a quota system as well as auctions.
“Our plan is to bring veneers or plywoods to India,” he said. This project is important for the company as it would replace its import of timber from Myanmar.
“Currently, we import around 35,000 Hopus tonnes of timber from the country. But this source would dry out in 2014 because of a pre-announced timber export ban by the Myanmar Government,” he explained.
In 2011-12, total imports from Myanmar to India, mostly forest and agriculture product, were worth $1,046 million. At present, six Indian companies have made investments in Myanmar and 70 others are looking to invest in the country.
Kandla Project
Century Plyboards, he said, hoped to achieve the financial closure for the proposed Greenfield project at Kandla in Gujarat next month. This project would also have a capacity of producing 25,000 sq metres of plywood a day and will cost Rs 50 crore. “Two thirds of the project cost will be financed by bank borrowings,” he added. CPIL has bought 20 acres for the project.
IT industry may grow at 11-12% next fiscal: PwC India
Hyderabad: The pent-up demand for information technology products and solutions, geographical diversification, focus on niche service offerings will help drive the industry growth, Sanjay Dhawan, Leader Technology, PwC India, has said.
The increased technology adoption by the Indian Government would also boost prospects of domestic revenue growth. The industry is most likely to grow at around 11-12 per cent in the coming financial year, he said, commenting on the prospects for the industry in the New Year.
"Crossing the $100-billion revenue mark, with a growth rate of 4 per cent in 2011-12 was a milestone for the Indian IT-IT-enabled services industry. However, this year (2012-13) has been a contrast with the sector going through a challenging phase,” he commented.
This is due to the macro-economic scenario, turmoil in key markets (the US and the UK), currency volatility, domestic policy paralysis, lower spend on IT and long sales cycle impacted by slow decision-making at customer end, he observed.
“As a result, projects have slowed down in the last couple of quarters and have impacted the growth prospects of the sector. The industry is expected to close this financial year with about 9-10 per cent growth,” he said.
The industry is still expected to demonstrate resilience and present a positive outlook for the next year (2013-14). New technologies such as social media, cloud, mobility and analytics would drive the growth, he said.
The increased technology adoption by the Indian Government would also boost prospects of domestic revenue growth. The industry is most likely to grow at around 11-12 per cent in the coming financial year, he said, commenting on the prospects for the industry in the New Year.
"Crossing the $100-billion revenue mark, with a growth rate of 4 per cent in 2011-12 was a milestone for the Indian IT-IT-enabled services industry. However, this year (2012-13) has been a contrast with the sector going through a challenging phase,” he commented.
This is due to the macro-economic scenario, turmoil in key markets (the US and the UK), currency volatility, domestic policy paralysis, lower spend on IT and long sales cycle impacted by slow decision-making at customer end, he observed.
“As a result, projects have slowed down in the last couple of quarters and have impacted the growth prospects of the sector. The industry is expected to close this financial year with about 9-10 per cent growth,” he said.
The industry is still expected to demonstrate resilience and present a positive outlook for the next year (2013-14). New technologies such as social media, cloud, mobility and analytics would drive the growth, he said.
India, Malaysia to jointly develop projects in third countries
New Delhi: India and Malaysia have reached an understanding to jointly work on infrastructure and housing projects in countries such as Sri Lanka, Bangladesh and Indonesia.
Indian Railway Construction Company Limited has already signed a memorandum of understanding with Malaysia’s Scomi Rail to undertake the proposed Colombo monorail project. A formal announcement on the tie-up is expected soon.
Scomi Rail has been shortlisted for developing the monorail project in Chennai. It would also bid for tenders recently floated for monorail projects in Delhi and Kerala.
In 2010, India’s GMR Group and Malaysia Airports Holdings Berhad had won a joint contract to operate the Ibrahim Nassir International Airport in Male for 25 years. Recently, the Maldives government had terminated the contract, citing irregularities in the selection procedure.
Malvinder Singh, co-chair, India-Malaysia CEO Forum, said, “The India-Malaysia CEO Forum was constituted about two years back to increase trade and investment between the two countries. We have identified six core areas of collaboration in sectors such as construction and infrastructure, education, healthcare, pharmaceuticals, biotechnology and information technology. We have also decided to jointly engage in such projects in third countries.”
The two countries were scouting for joint business opportunities in Association of Southeast Asian Nations countries and planned to explore the possibilities of developing infrastructure projects in Africa, Singh said.
Malaysian investment in India is estimated at about $7.8 billion, while Indian investment in the country stands at about $3 billion. In India, Malaysia has invested in the power, oil refineries, telecom and electrical equipment industries. Notable among its private sector alliances in India are Maxis Communications’ tie-up with Aircel, TM International’s with Spice Communications, Axiata’s with IDEA Cellular and Khazanah’s with IDFC. Malaysian companies have completed 52 construction projects worth about $2.34 billion in India. Currently, they are implementing another 35 projects.
Indian companies that have made major investments in Malaysia include Reliance Industries Limited, Ballarpur Industries, Larsen & Toubro and Wipro. Biocon India, Manipal University and Strides Arcolabs have announced fresh investments in Malaysia in the past six months.
In the January-September period, trade between India and Malaysia increased about seven per cent to $9.81 billion. Last financial year, it stood at $13.5 billion. However, while India’s exports to Malaysia rose from $2.58 billion in 2007-08 to $3.98 billion in 2011-12, imports from that country rose about 60 per cent to $9.56 billion. Consequently, India’s trade deficit with Malaysia widened to $ 5.58 billion last financial year.
Indian Railway Construction Company Limited has already signed a memorandum of understanding with Malaysia’s Scomi Rail to undertake the proposed Colombo monorail project. A formal announcement on the tie-up is expected soon.
Scomi Rail has been shortlisted for developing the monorail project in Chennai. It would also bid for tenders recently floated for monorail projects in Delhi and Kerala.
In 2010, India’s GMR Group and Malaysia Airports Holdings Berhad had won a joint contract to operate the Ibrahim Nassir International Airport in Male for 25 years. Recently, the Maldives government had terminated the contract, citing irregularities in the selection procedure.
Malvinder Singh, co-chair, India-Malaysia CEO Forum, said, “The India-Malaysia CEO Forum was constituted about two years back to increase trade and investment between the two countries. We have identified six core areas of collaboration in sectors such as construction and infrastructure, education, healthcare, pharmaceuticals, biotechnology and information technology. We have also decided to jointly engage in such projects in third countries.”
The two countries were scouting for joint business opportunities in Association of Southeast Asian Nations countries and planned to explore the possibilities of developing infrastructure projects in Africa, Singh said.
Malaysian investment in India is estimated at about $7.8 billion, while Indian investment in the country stands at about $3 billion. In India, Malaysia has invested in the power, oil refineries, telecom and electrical equipment industries. Notable among its private sector alliances in India are Maxis Communications’ tie-up with Aircel, TM International’s with Spice Communications, Axiata’s with IDEA Cellular and Khazanah’s with IDFC. Malaysian companies have completed 52 construction projects worth about $2.34 billion in India. Currently, they are implementing another 35 projects.
Indian companies that have made major investments in Malaysia include Reliance Industries Limited, Ballarpur Industries, Larsen & Toubro and Wipro. Biocon India, Manipal University and Strides Arcolabs have announced fresh investments in Malaysia in the past six months.
In the January-September period, trade between India and Malaysia increased about seven per cent to $9.81 billion. Last financial year, it stood at $13.5 billion. However, while India’s exports to Malaysia rose from $2.58 billion in 2007-08 to $3.98 billion in 2011-12, imports from that country rose about 60 per cent to $9.56 billion. Consequently, India’s trade deficit with Malaysia widened to $ 5.58 billion last financial year.
Uno Minda, Korean firm tie up to make automotive lamps
New Delhi: Auto components manufacturer Uno Minda of NK Minda Group and AMS Corporation of Korea on Wednesday said the companies are entering into a technical licence agreement for design, manufacture and sale of automotive lamps in India.
With this agreement, AMS would provide technical support for automotive lamps through conventional light sources and new technologies such as light-emitting diode sources, for four-wheeler manufacturers in India and Indonesia.
“Though a young company, AMS has exceptional in-house technologies. The expertise their engineers have gained in designing and manufacture of lamps for some of the major original equipment manufacturers (OEMs) in Korea is outstanding,” said N.K. Minda, Chairman and Managing Director.
AMS also has footprints in China, Uzbekistan, North America and South America.
With this partnership, Minda is also venturing into a new product line, in keeping with its diversification and consolidation approach to the Indian market, he said.
“India is a growing market for us and we are pleased to partner with Uno Minda to bring best practices to Indian OEMs and to explore and expand the markets within Asia,” said S.M. Park, President, AMS.
This is the second such agreement by Uno Minda.
The company earlier this month had entered into a joint venture with Japan based Nabtesco Automotive Corporation for designing, manufacture and sale of air brake products for commercial vehicles and clutch products for passenger vehicles.
With this agreement, AMS would provide technical support for automotive lamps through conventional light sources and new technologies such as light-emitting diode sources, for four-wheeler manufacturers in India and Indonesia.
“Though a young company, AMS has exceptional in-house technologies. The expertise their engineers have gained in designing and manufacture of lamps for some of the major original equipment manufacturers (OEMs) in Korea is outstanding,” said N.K. Minda, Chairman and Managing Director.
AMS also has footprints in China, Uzbekistan, North America and South America.
With this partnership, Minda is also venturing into a new product line, in keeping with its diversification and consolidation approach to the Indian market, he said.
“India is a growing market for us and we are pleased to partner with Uno Minda to bring best practices to Indian OEMs and to explore and expand the markets within Asia,” said S.M. Park, President, AMS.
This is the second such agreement by Uno Minda.
The company earlier this month had entered into a joint venture with Japan based Nabtesco Automotive Corporation for designing, manufacture and sale of air brake products for commercial vehicles and clutch products for passenger vehicles.
Tesco sets up sourcing arm to buy food from India
Mumbai: Tesco Plc has set up an Indian subsidiary to buy fresh and processed foods from the country for its global stores, in a move that could help the world's third largest retailer trim costs and develop local expertise before opening shops here.
"Fruits, marine, rice would be a few of the things we would be exploring," said a spokesperson at the UK retailer, which already buys around 7% of its international sourcing from India.
Tesco has been sourcing general merchandise and apparel from India since almost a decade through its international sourcing company's offices in Bengaluru and New Delhi that act like liaison centres.
This is the first instance of Tesco opening a sourcing arm in the country. The spokesperson said it will bring new opportunities for suppliers of food and other goods in India.
Tesco sets up sourcing arm to buy food from India
Industry experts say having a local company will help Tesco build back-end operations and negotiation clout among suppliers, which will be handy when it decides to enter the country's estimated $400-billion, or about Rs 22 lakh crore, retail market.
"The capabilities that they will develop on food will stand them on a good stead once they scale up their India operations," Abheek Singhi, partner and director at Boston Consulting Group, said.
BCG estimates that food is the largest consumption category in the country, accounting for 31% of total consumer spends.
Almost three weeks ago, Indian Parliament gave the goahead to foreign supermarkets to invest in India, paving the way for global companies such as Walmart, Carrefour and Tesco to operate retail stores in partnership with Indian companies.
Tesco in India has a franchisee agreement with Tata's retailing arm Trent Ltd to provide retail expertise and supplies for the latter's Star Bazaar hypermarket chain.
While India has for long allowed 100% overseas ownerships in wholesale companies that are only allowed to sell to retailers and businesses, Tesco hasn't opened any such store unlike its global rivals such as Walmart and Carrefour.
Tesco earlier this year said it plans to source products with a retail value of 370 million pounds (about .`3,270 crore) from India in the 12 months ending February 2013, up from 325 million pounds (about Rs 2,875 crore) in the previous year.
The new move comes at a time when Tesco is going slow on global expansion due to sluggish sales in the West, including its home market. Earlier this month, Tesco signalled it might exit its struggling supermarket in the United States, and that it had appointed advisors to "review" the future of its Fresh & Easy neighbourhood grocery store chain in that country.
The Indian market is one of its last bastions for growth. Earlier, this month ET had reported that Tesco chief executive Philip Clarke made a hushhush visit and met Tata Group chairman Ratan Tata and other Tata Group officials to set the ball rolling on the retailer's India plans.
International media reports suggest that Tesco has zeroed in on Mumbai and Bengaluru for its possible India debut.
"Fruits, marine, rice would be a few of the things we would be exploring," said a spokesperson at the UK retailer, which already buys around 7% of its international sourcing from India.
Tesco has been sourcing general merchandise and apparel from India since almost a decade through its international sourcing company's offices in Bengaluru and New Delhi that act like liaison centres.
This is the first instance of Tesco opening a sourcing arm in the country. The spokesperson said it will bring new opportunities for suppliers of food and other goods in India.
Tesco sets up sourcing arm to buy food from India
Industry experts say having a local company will help Tesco build back-end operations and negotiation clout among suppliers, which will be handy when it decides to enter the country's estimated $400-billion, or about Rs 22 lakh crore, retail market.
"The capabilities that they will develop on food will stand them on a good stead once they scale up their India operations," Abheek Singhi, partner and director at Boston Consulting Group, said.
BCG estimates that food is the largest consumption category in the country, accounting for 31% of total consumer spends.
Almost three weeks ago, Indian Parliament gave the goahead to foreign supermarkets to invest in India, paving the way for global companies such as Walmart, Carrefour and Tesco to operate retail stores in partnership with Indian companies.
Tesco in India has a franchisee agreement with Tata's retailing arm Trent Ltd to provide retail expertise and supplies for the latter's Star Bazaar hypermarket chain.
While India has for long allowed 100% overseas ownerships in wholesale companies that are only allowed to sell to retailers and businesses, Tesco hasn't opened any such store unlike its global rivals such as Walmart and Carrefour.
Tesco earlier this year said it plans to source products with a retail value of 370 million pounds (about .`3,270 crore) from India in the 12 months ending February 2013, up from 325 million pounds (about Rs 2,875 crore) in the previous year.
The new move comes at a time when Tesco is going slow on global expansion due to sluggish sales in the West, including its home market. Earlier this month, Tesco signalled it might exit its struggling supermarket in the United States, and that it had appointed advisors to "review" the future of its Fresh & Easy neighbourhood grocery store chain in that country.
The Indian market is one of its last bastions for growth. Earlier, this month ET had reported that Tesco chief executive Philip Clarke made a hushhush visit and met Tata Group chairman Ratan Tata and other Tata Group officials to set the ball rolling on the retailer's India plans.
International media reports suggest that Tesco has zeroed in on Mumbai and Bengaluru for its possible India debut.
Essar Power commissions 600 MW unit at Mahan project
Mumbai: Essar Power has commissioned the first phase of 600 MW, of its 1,200 MW Mahan power project. The plant was synchronised with the grid and has commenced generating power, said the company in a press release on Wednesday.
The Mahan unit in Madhya Pradesh will be Essar’s eighth operational power plant. It has 3,910 MW of generation capacity, compared to 1,220 MW at the time of the company’s IPO in May last year.
The second unit at Mahan is expected to begin commercial operations during the first quarter of the next fiscal.
The Mahan-I project entails a $1.2-billion (about Rs 6,600 crore) investment by Essar Power. It is the company’s third coal-fired power project to enter commercial operations taking its total capacity of 2,310 MW this year.
Coal Sourcing
So far, the 600 MW capacity is the single largest unit commissioned in Madhya Pradesh. The plant will use both imported and domestic coal sourced from Coal India’s e-auction.
Essar Power received stage-1 forest clearance for the Mahan coal block in October. In the interim, the company has made an application for tapering coal linkage allocation from Coal India.
Naresh Nayyar, Chief Executive Officer, said the company has tripled its generation capacity over the past couple of years.
“Our focus now, is to develop the Mahan coal block which will provide a low-cost fuel source for the power plant, placing it among the lowest cost power generators in India,” he said.
So Far, So Good
In June, Essar commissioned Salaya-I plant in Gujarat with 1,200 MW capacity, while the 510 MW Vadinar-P2 plant also in Gujarat went live in November. The plant provides power to Essar Oil’s Vadinar refinery. The coal-fired power generation is having a positive impact on the refining margins, the company said in a statement.
The Salaya and Mahan plant will sell the majority of their output to state electricity boards. The other six operational power plants are for captive use.
The captive plant of 2,110 MW are at Hazira (515 MW, gas fired) and Bhander (500 MW, gas fired) supplying the Essar Steel plant at Hazira, while Vadinar (120 MW, refinery residue, multifuel), Vadinar P1 (380 MW, gas fired) and Vadinar P2 (510 MW, coal fired) are captive to the Essar Oil refinery at Vadinar. The other, Algoma (85 MW, gas fired), is captive to the Essar Steel plant in Algoma, Canada.
The Mahan unit in Madhya Pradesh will be Essar’s eighth operational power plant. It has 3,910 MW of generation capacity, compared to 1,220 MW at the time of the company’s IPO in May last year.
The second unit at Mahan is expected to begin commercial operations during the first quarter of the next fiscal.
The Mahan-I project entails a $1.2-billion (about Rs 6,600 crore) investment by Essar Power. It is the company’s third coal-fired power project to enter commercial operations taking its total capacity of 2,310 MW this year.
Coal Sourcing
So far, the 600 MW capacity is the single largest unit commissioned in Madhya Pradesh. The plant will use both imported and domestic coal sourced from Coal India’s e-auction.
Essar Power received stage-1 forest clearance for the Mahan coal block in October. In the interim, the company has made an application for tapering coal linkage allocation from Coal India.
Naresh Nayyar, Chief Executive Officer, said the company has tripled its generation capacity over the past couple of years.
“Our focus now, is to develop the Mahan coal block which will provide a low-cost fuel source for the power plant, placing it among the lowest cost power generators in India,” he said.
So Far, So Good
In June, Essar commissioned Salaya-I plant in Gujarat with 1,200 MW capacity, while the 510 MW Vadinar-P2 plant also in Gujarat went live in November. The plant provides power to Essar Oil’s Vadinar refinery. The coal-fired power generation is having a positive impact on the refining margins, the company said in a statement.
The Salaya and Mahan plant will sell the majority of their output to state electricity boards. The other six operational power plants are for captive use.
The captive plant of 2,110 MW are at Hazira (515 MW, gas fired) and Bhander (500 MW, gas fired) supplying the Essar Steel plant at Hazira, while Vadinar (120 MW, refinery residue, multifuel), Vadinar P1 (380 MW, gas fired) and Vadinar P2 (510 MW, coal fired) are captive to the Essar Oil refinery at Vadinar. The other, Algoma (85 MW, gas fired), is captive to the Essar Steel plant in Algoma, Canada.
Rs 205-cr scholarships disbursed to women scientists
New Delhi: Till date, the Government has dispensed Rs 205 crore as scholarships for women scientists. The maximum number of scholarships was given for life sciences at 820, followed by self-employment in intellectual property rights at 310, and for development of rural technology at 300, an official release said.
The scholarships were given under the Women Scientists Scholarship Scheme (WSSS), Ministry of Science and Technology.
Among the other subjects for which scholarships were given to women are biotechnology (60), earth & atmospheric sciences (92), engineering sciences (176), physical & mathematical sciences (199), and chemical sciences (221).
Out of all the women fellowship awardees, about 35 per cent were able to get positions in sectors such as R&D institutions, colleges, universities and the public sector, the S&T Ministry said.
The scholarships were given under the Women Scientists Scholarship Scheme (WSSS), Ministry of Science and Technology.
Among the other subjects for which scholarships were given to women are biotechnology (60), earth & atmospheric sciences (92), engineering sciences (176), physical & mathematical sciences (199), and chemical sciences (221).
Out of all the women fellowship awardees, about 35 per cent were able to get positions in sectors such as R&D institutions, colleges, universities and the public sector, the S&T Ministry said.
Nod for 12 foreign investment plans of Rs 800 cr
New Delhi: The Foreign Investment Promotion Board (FIPB) has rejected Mahindra and Mahindra’s proposal to form a defence joint venture with Israel’s Rafael Advanced Defence System even as it approved 12 other foreign direct investment proposals worth Rs 802 crore.
Among the key proposals that received the Government’s green signal is the Rs 300-crore bid by Ratnakar Bank for foreign equity infusion.
The proposal of Swedish furniture major IKEA has been recommended for consideration by the Cabinet Committee on Economic Affairs, an official release said. After the investment board’s clearance, FDI proposals of over Rs 1,200 crore still need clearance by the Cabinet committee.
Taqa Jyoti Energy Ventures has received the Government’s approval to bring in foreign investment of Rs 252 crore while Hyderabad-based Mylan Laboratories can also go ahead with its Rs 173-crore proposal to acquire an existing pharmaceutical manufacturing facility.
The statement said along with M&M, FDI proposals of Coimbatore-based Ampo Valves India and Mumbai-based Berggruen Real Estates have been rejected.
Commodity exchange MCX’s application for post facto approval of foreign investment was withdrawn from the investment board’s agenda. The exchange had sought approval of investment received before the issuance of Department of Industrial Policy and Promotion’s Press Note 2 of 2008 that gave guidelines for foreign investment in commodity exchanges
Among the key proposals that received the Government’s green signal is the Rs 300-crore bid by Ratnakar Bank for foreign equity infusion.
The proposal of Swedish furniture major IKEA has been recommended for consideration by the Cabinet Committee on Economic Affairs, an official release said. After the investment board’s clearance, FDI proposals of over Rs 1,200 crore still need clearance by the Cabinet committee.
Taqa Jyoti Energy Ventures has received the Government’s approval to bring in foreign investment of Rs 252 crore while Hyderabad-based Mylan Laboratories can also go ahead with its Rs 173-crore proposal to acquire an existing pharmaceutical manufacturing facility.
The statement said along with M&M, FDI proposals of Coimbatore-based Ampo Valves India and Mumbai-based Berggruen Real Estates have been rejected.
Commodity exchange MCX’s application for post facto approval of foreign investment was withdrawn from the investment board’s agenda. The exchange had sought approval of investment received before the issuance of Department of Industrial Policy and Promotion’s Press Note 2 of 2008 that gave guidelines for foreign investment in commodity exchanges
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