New Delhi: Government has taken a decision to grant green channel status for DGS&D Rate Contracts to PSUs and firms (Indian as well as foreign) having an average turnover of Rs.1000 crore or more during the last three years and making profit in any three years of the last five years.
So far, twenty firms have been given green channel status. The area-wise details of these firms are Delhi -04; Mumbai-04; Gurgaon-05; Bangaluru-03; Ahmedabad-01; Vadodara-01; and Noida-02.
More reputed firms in international and national markets would be available on DGS&D Rate Contracts which will facilitate user departments.
This information was given by the Minister of State in the Ministry of Commerce & Industry, Dr. D Purandeswari in a written reply in the Rajya Sabha today.
Success in my Habit
Friday, March 15, 2013
Titagarh Wagons' subsidiary wins Rs 275-cr order from French Railways
Kolkata: Titagarh Wagons AFR S.A. (TWAFR), the French subsidiary of Titagarh Wagons Ltd (TWL), has bagged an order from French Railways for 400 hopper cereal wagons worth Euro 39 million (around Rs 275 crore).
Umesh Chowdhary, Vice-Chairman & Managing Director, TWL, said “after the restart of operations in July 2010 under TWL’s aegis, TWAFR has got orders worth Euro 150 million (Rs 1,050 crore)”.
The hopper wagons order, signed last week, is the fourth such deal since its development in early 2011 and marks the acceptability of TWAFR’s design skill.
“From the beginning, we have concentrated on creating a niche for ourselves in the European market by offering superior design, high quality products and timely delivery. What was essential for AFR was to regain creditability in the market,” Chowdhary added.
TWAFR owns a number of patents for both wagons and bogies. The company has developed a range of multi-application wagons that include poly-articulated wagons. TWAFR has also designed road-to-rail wagons — on which trucks can be loaded. The TWAFR unit is located on an area of 42 acres at Douai in northern France with a yearly capacity of 2,000 wagons.
Umesh Chowdhary, Vice-Chairman & Managing Director, TWL, said “after the restart of operations in July 2010 under TWL’s aegis, TWAFR has got orders worth Euro 150 million (Rs 1,050 crore)”.
The hopper wagons order, signed last week, is the fourth such deal since its development in early 2011 and marks the acceptability of TWAFR’s design skill.
“From the beginning, we have concentrated on creating a niche for ourselves in the European market by offering superior design, high quality products and timely delivery. What was essential for AFR was to regain creditability in the market,” Chowdhary added.
TWAFR owns a number of patents for both wagons and bogies. The company has developed a range of multi-application wagons that include poly-articulated wagons. TWAFR has also designed road-to-rail wagons — on which trucks can be loaded. The TWAFR unit is located on an area of 42 acres at Douai in northern France with a yearly capacity of 2,000 wagons.
Tata Steel arm buys stake in Canadian mine for Rs 160 cr
Mumbai: Tata Steel has acquired through its subsidiary Tata Steel Minerals Canada (TSMC) half the interest in Labrador Iron Mines’ (LIM) Howse deposit for Canadian dollars 30 million (Rs 160 crore).
TSMC has the option to raise its stake to 70 per cent by paying Rs 130 crore. Howse has estimated iron ore reserves of 28 million tonnes (mt). TSMC will transfer its “Timmins 4” deposit, having resources of 1.7 mt, to LIM for C$3 million (Rs 16 crore), which is recoverable from sales.
Tata Steel already has a presence in Canada after it bought 27.7 per cent in New Millennium Iron Corporation. It also owns 80 per cent in NML’s DSO Project in the Labrador region. The DSO Project has 125 mt of resources spread over 25 deposits.
While the mine has produced 300,000 tonnes of ore, the construction of the processing plant is in full-swing. The TSMC facility, fully commissioned, will put out 6 mtpa of sinter fines, said a Tata Steel press release. H. M. Nerurkar, Managing Director, Tata Steel, said the arrangement is expected to enhance the raw material security and streamline the logistics of the DSO Project.
Infra Sharing
TSMC and LIM operate adjacent iron ore projects spread over the Provinces of Newfoundland, Labrador and Quebec. The Labrador Trough is a 160-km wide iron-ore bed in the Labrador-Quebec region in Canada.
The trough has delivered over two billion tonnes of ore in the last 50 years and attracted investments of $15 billion. It is estimated that the annual iron ore production of this region will increase from 35 mt to 65 mt by 2015.
TSMC and LIM have entered into multi-part co-operation agreements in areas of logistics and potential offtake arrangements.
It includes development of a rail line that will pass through LIM’s rail yard and connect TSMC’s processing plant with the main rail line.
TSMC has the option to raise its stake to 70 per cent by paying Rs 130 crore. Howse has estimated iron ore reserves of 28 million tonnes (mt). TSMC will transfer its “Timmins 4” deposit, having resources of 1.7 mt, to LIM for C$3 million (Rs 16 crore), which is recoverable from sales.
Tata Steel already has a presence in Canada after it bought 27.7 per cent in New Millennium Iron Corporation. It also owns 80 per cent in NML’s DSO Project in the Labrador region. The DSO Project has 125 mt of resources spread over 25 deposits.
While the mine has produced 300,000 tonnes of ore, the construction of the processing plant is in full-swing. The TSMC facility, fully commissioned, will put out 6 mtpa of sinter fines, said a Tata Steel press release. H. M. Nerurkar, Managing Director, Tata Steel, said the arrangement is expected to enhance the raw material security and streamline the logistics of the DSO Project.
Infra Sharing
TSMC and LIM operate adjacent iron ore projects spread over the Provinces of Newfoundland, Labrador and Quebec. The Labrador Trough is a 160-km wide iron-ore bed in the Labrador-Quebec region in Canada.
The trough has delivered over two billion tonnes of ore in the last 50 years and attracted investments of $15 billion. It is estimated that the annual iron ore production of this region will increase from 35 mt to 65 mt by 2015.
TSMC and LIM have entered into multi-part co-operation agreements in areas of logistics and potential offtake arrangements.
It includes development of a rail line that will pass through LIM’s rail yard and connect TSMC’s processing plant with the main rail line.
Societe Generale opens third branch at Sanand in Gujarat
Ahmedabad: Societe Generale, a French multinational bank, has opened it's third corporate banking branch at Sanand, near Ahmedabad in Gujarat. It already has branches in Mumbai and Delhi. 150-year old bank believes that Gujarat is one of the robust place in the India and hence it will give good opportunities for bank to expand its base in the Indian market.
"Gujarat is one of the dynamic and investor friendly states in India in terms of economic growth. It offers quality infrastructure compared to other states,"said Marc-Emmanuel Vives, Chief Executive and Group Chief Country Officer in Ahmedabad during press conference.
"State has very diversified industrial base and many industries are setting up their bases in Gujarat," he added. The state is home to various industries like chemicals, oil and gas, fertiliser, pharmaceuticals, automobiles, and engineering. Bank will provide all-types of financing, both short-term working capital lines and medium-long term equipment or project finance, in Indian as well as foreign currencies, from Sanand.
Other specialised advisory and financing activities like merger and acquisition, project finance, equipment and commodities financing will also be made available to clients in Gujarat. Bank will expand in Bangalore, Chennai, Hyderabad and Pune in next three years, added Vives. The Societe Generale branch, staffed with five people, working to market the Bank across Gujarat.
Societe Generale Group has established several other businesses within the country, which includes two joint ventures with State Bank of India, in the areas of mutual funds and custodial services, as well as 100% subsidiaries in car fleet management, brokerage and IT services. Sanand, however, was not the first choice by Societe Generale said Mr Vives.
"RBI allowes new branches to come-up in the under-banking area. Hence, we have selected Sanand. I think we are well placed as lot of companies are coming with the new projects here," he added.
Societe Generale's Indian business has been growing at 50% CAGR in past three years and expects to equal its Chinese business in next three-years. While commenting on the Indian economy, Vives said that, "We are positive about Indian economy, however, not over optimistic,". Bank sees 6% GDP growth for the fiscal 2013-14. "Reforms measures taken by government since September will take time to generate results,".
"Gujarat is one of the dynamic and investor friendly states in India in terms of economic growth. It offers quality infrastructure compared to other states,"said Marc-Emmanuel Vives, Chief Executive and Group Chief Country Officer in Ahmedabad during press conference.
"State has very diversified industrial base and many industries are setting up their bases in Gujarat," he added. The state is home to various industries like chemicals, oil and gas, fertiliser, pharmaceuticals, automobiles, and engineering. Bank will provide all-types of financing, both short-term working capital lines and medium-long term equipment or project finance, in Indian as well as foreign currencies, from Sanand.
Other specialised advisory and financing activities like merger and acquisition, project finance, equipment and commodities financing will also be made available to clients in Gujarat. Bank will expand in Bangalore, Chennai, Hyderabad and Pune in next three years, added Vives. The Societe Generale branch, staffed with five people, working to market the Bank across Gujarat.
Societe Generale Group has established several other businesses within the country, which includes two joint ventures with State Bank of India, in the areas of mutual funds and custodial services, as well as 100% subsidiaries in car fleet management, brokerage and IT services. Sanand, however, was not the first choice by Societe Generale said Mr Vives.
"RBI allowes new branches to come-up in the under-banking area. Hence, we have selected Sanand. I think we are well placed as lot of companies are coming with the new projects here," he added.
Societe Generale's Indian business has been growing at 50% CAGR in past three years and expects to equal its Chinese business in next three-years. While commenting on the Indian economy, Vives said that, "We are positive about Indian economy, however, not over optimistic,". Bank sees 6% GDP growth for the fiscal 2013-14. "Reforms measures taken by government since September will take time to generate results,".
Infosys BPO opens centre in Costa Rica
Bengaluru: Infosys BPO has opened a call centre in Costa Rica, which is considered as the fourth best outsourcing destination in Latin America.
The BPO arm of the $7-billion software exporter will open the new call centre in San Jose, Costa Rica and will have 100 employees, according to a company statement.
These employees initially will provide services to sourcing and procurement for Procter & Gamble, the world's largest consumer packaged goods company. According to advisory firm Tholons, Costa Rica follows Brazil, Argentina and Chile as an outsourcing destination in South American continent.
Further, Infosys BPO will offer a range of BPO services in Costa Rica for its global clients in areas including finance and accounting, human resources management, analytics, legal processes, customer relationship services, marketing, and supply chain management.
Humberto Andrade, Head - Latin America, Infosys BPO, said: “This centre is our latest effort to expand global footprint. It will strengthen our presence in Latin America and will address not only our global clients here but also Spanish- and Portuguese-speaking markets.
The BPO arm of the $7-billion software exporter will open the new call centre in San Jose, Costa Rica and will have 100 employees, according to a company statement.
These employees initially will provide services to sourcing and procurement for Procter & Gamble, the world's largest consumer packaged goods company. According to advisory firm Tholons, Costa Rica follows Brazil, Argentina and Chile as an outsourcing destination in South American continent.
Further, Infosys BPO will offer a range of BPO services in Costa Rica for its global clients in areas including finance and accounting, human resources management, analytics, legal processes, customer relationship services, marketing, and supply chain management.
Humberto Andrade, Head - Latin America, Infosys BPO, said: “This centre is our latest effort to expand global footprint. It will strengthen our presence in Latin America and will address not only our global clients here but also Spanish- and Portuguese-speaking markets.
India-Czech to Collaborate in Advanced Manufacturing
Anand Sharma Invites Czech Automotive Companies to Nmizs
New Delhi: Acknowledging the Czech expertise in the field of engineering sector, especially automotives, the Union Minister for Commerce, Industry & Textiles Shri Anand Sharma, in a meeting with Mr. Martin Kuba, Czech Minister of Industry & Trade, invited Czech investment into the proposed National Investment Manufacturing Zones in India. “Owing to the fact that the Czech Republic is strong in manufacturing generally and heavy engineering in particular – metallurgy, machine tools, defence equipment, we invite its automotives which accounts for 24 per cent of Czech manufacturing, to invest in NIMZs in India,” conveyed Shri Sharma to Mr. Kuba in the meeting held here today.
Shri Sharma, while appreciating the reputation of the Czech Republic in the field of technology, emphasised the need for institutional engagement for collaboration in the field of science and technology. “The thrust in our bilateral ties would be to focus on accelerating cooperation in advanced and niche technologies in which the Czech Republic has special capabilities,” said Shri Sharma. The Indian Minister also expressed satisfaction at the ongoing projects in the field of lasers and put stress on the need for bright engineers and scientists from both countries to be provided an enabling environment by the Czech and Indian sides to further cooperation in high technology areas.
While discussing the issue of cooperation in metal-cutting machine tools, Shri Sharma conveyed to the Czech Minister the opportunities the Czech companies could explore for collaborations with Indian companies. Shri Sharma also apprised Mr. Kuba about the participation of Czech companies in the Indian Metal-cutting Machine Tool exhibition (IMTEX), which was held in Bangalore from January 24-30, 2013. Thirteen Czech companies participated in IMTEX 2013, which is the largest exhibition of metal-cutting machine tools in South and South-East Asia which showcases exhaustive range of innovations in the product segment of metal-cutting machine tools.
The two Ministers also discussed issues regarding defence cooperation. Shri Sharma conveyed to the Czech Minister that both the countries could build an enduring defence relationship that could include joint research, development and production of weapons systems. “The rapid up-gradation of Czech industry, defense production facilities make state-of-the-art products namely defence equipment, passive and active electronic intelligence & surveillance systems, radars, trainer aircraft, high-mobility all purpose vehicles, modernisation of Soviet-era tanks, field hospitals and logistics open gives leverage to the strong Czech interest in promoting sales to India in these areas of specialisation,” said Shri Sharma.
Minister Sharma further said that a Joint Working Group (JWG) on Advanced Manufacturing and Heavy Engineering is scheduled later this month. He also conveyed that a JWG on Skills and Innovation and on Mining are expected to take place later this year.
The total bilateral trade between India and the Czech Republic in 2012 stood at USD 957.47 million as compared to USD 992.42 million in 2011. Shri Sharma said that although there has been some decline in bilateral trade figures, due to the global economic scenario, “the outlook for the future is promising and avenues in job producing manufacturing units in both the countries should be seriously explored.”
New Delhi: Acknowledging the Czech expertise in the field of engineering sector, especially automotives, the Union Minister for Commerce, Industry & Textiles Shri Anand Sharma, in a meeting with Mr. Martin Kuba, Czech Minister of Industry & Trade, invited Czech investment into the proposed National Investment Manufacturing Zones in India. “Owing to the fact that the Czech Republic is strong in manufacturing generally and heavy engineering in particular – metallurgy, machine tools, defence equipment, we invite its automotives which accounts for 24 per cent of Czech manufacturing, to invest in NIMZs in India,” conveyed Shri Sharma to Mr. Kuba in the meeting held here today.
Shri Sharma, while appreciating the reputation of the Czech Republic in the field of technology, emphasised the need for institutional engagement for collaboration in the field of science and technology. “The thrust in our bilateral ties would be to focus on accelerating cooperation in advanced and niche technologies in which the Czech Republic has special capabilities,” said Shri Sharma. The Indian Minister also expressed satisfaction at the ongoing projects in the field of lasers and put stress on the need for bright engineers and scientists from both countries to be provided an enabling environment by the Czech and Indian sides to further cooperation in high technology areas.
While discussing the issue of cooperation in metal-cutting machine tools, Shri Sharma conveyed to the Czech Minister the opportunities the Czech companies could explore for collaborations with Indian companies. Shri Sharma also apprised Mr. Kuba about the participation of Czech companies in the Indian Metal-cutting Machine Tool exhibition (IMTEX), which was held in Bangalore from January 24-30, 2013. Thirteen Czech companies participated in IMTEX 2013, which is the largest exhibition of metal-cutting machine tools in South and South-East Asia which showcases exhaustive range of innovations in the product segment of metal-cutting machine tools.
The two Ministers also discussed issues regarding defence cooperation. Shri Sharma conveyed to the Czech Minister that both the countries could build an enduring defence relationship that could include joint research, development and production of weapons systems. “The rapid up-gradation of Czech industry, defense production facilities make state-of-the-art products namely defence equipment, passive and active electronic intelligence & surveillance systems, radars, trainer aircraft, high-mobility all purpose vehicles, modernisation of Soviet-era tanks, field hospitals and logistics open gives leverage to the strong Czech interest in promoting sales to India in these areas of specialisation,” said Shri Sharma.
Minister Sharma further said that a Joint Working Group (JWG) on Advanced Manufacturing and Heavy Engineering is scheduled later this month. He also conveyed that a JWG on Skills and Innovation and on Mining are expected to take place later this year.
The total bilateral trade between India and the Czech Republic in 2012 stood at USD 957.47 million as compared to USD 992.42 million in 2011. Shri Sharma said that although there has been some decline in bilateral trade figures, due to the global economic scenario, “the outlook for the future is promising and avenues in job producing manufacturing units in both the countries should be seriously explored.”
Wednesday, March 13, 2013
Advertising group Publicis acquires digital agency Convonix
Mumbai: French advertising major PublicisGroupe said it has acquired Mumbai-based Convonix, a digital marketing and consulting firm cementing its place in the fast growing digital space. Convonix will align with StarcomMediaVest here in India, the advertising group said Monday. Convonix's strength lies in search, social and analytics, a company statement said adding that this will combine well with Starcom's expertise in media strategy.
Convonix's geographical presence in India will expand to Delhi, Bangalore and Chennai besides Mumbai post the acquisition. The Publicis group has over the last year made a number of acquisitions including Indigo Consulting, Resultrix , iStrat and MarketGate. It aims at doubling its size in India between 2010 and 2015 taking on its biggest rival WPP in the local market.
Founded in 2003, Convonix 's three founding members; Vishal Sampat, CEO; Sarfaraz Khimani, co-COO; and Pallav Jain, co-COO, will continue to lead the agency. Convonix will now operate as Starcome MediaVest Convonix, with two market-facing brands: SMG Digital and Convonix.
"Convonix has continued to innovate and build the very best digital capability whilst being highly respected for its ability to recruit the best talent from universities each year, and transform them into digital advertising experts through a rigorous training program," said Laura Desmond, global chief executive officer for Starcom MediaVest Group.
According to the latest ZenithOptimedia adspend forecast, search marketing continues to expand rapidly in India and is forecast to increase 35% in the region during 2013, and more than 70% in the next two years. Vishal Sampat, CEO for Convonix said, "We have built our reputation by focusing on talent, training, technology and performance, and doing so has enabled us to rapidly evolve with the consumer. Aligning with Starcom MediaVest group gives us global scale and a more powerful face to the market which we can leverage to constantly improve our offering and give our clients the best tools and solutions available."
Srikant Sastri, VivaKi' country chair for India who is presiding over the acquisition and transition of Convonix said, "We are positive that this acquisition will set the tone for our next phase of digital pre-eminence both in terms of expertise and revenue and we are continuing to explore other agencies that can help us capitalize on the outstanding potential of the digital marketplace in India."
Convonix's geographical presence in India will expand to Delhi, Bangalore and Chennai besides Mumbai post the acquisition. The Publicis group has over the last year made a number of acquisitions including Indigo Consulting, Resultrix , iStrat and MarketGate. It aims at doubling its size in India between 2010 and 2015 taking on its biggest rival WPP in the local market.
Founded in 2003, Convonix 's three founding members; Vishal Sampat, CEO; Sarfaraz Khimani, co-COO; and Pallav Jain, co-COO, will continue to lead the agency. Convonix will now operate as Starcome MediaVest Convonix, with two market-facing brands: SMG Digital and Convonix.
"Convonix has continued to innovate and build the very best digital capability whilst being highly respected for its ability to recruit the best talent from universities each year, and transform them into digital advertising experts through a rigorous training program," said Laura Desmond, global chief executive officer for Starcom MediaVest Group.
According to the latest ZenithOptimedia adspend forecast, search marketing continues to expand rapidly in India and is forecast to increase 35% in the region during 2013, and more than 70% in the next two years. Vishal Sampat, CEO for Convonix said, "We have built our reputation by focusing on talent, training, technology and performance, and doing so has enabled us to rapidly evolve with the consumer. Aligning with Starcom MediaVest group gives us global scale and a more powerful face to the market which we can leverage to constantly improve our offering and give our clients the best tools and solutions available."
Srikant Sastri, VivaKi' country chair for India who is presiding over the acquisition and transition of Convonix said, "We are positive that this acquisition will set the tone for our next phase of digital pre-eminence both in terms of expertise and revenue and we are continuing to explore other agencies that can help us capitalize on the outstanding potential of the digital marketplace in India."
Berger Paints acquires Sherwin Williams' decorative business
Mumbai: Berger Paints has acquired the decorative business of US-based Sherwin Williams Paints’ Indian subsidiary for an undisclosed amount.
The acquisition, carried out through Berger’s wholly owned subsidiary Brushworks, was funded through internal accruals. This will help the Kolkata-based paint major to strengthen its position in decorative or the architectural paint business.
Berger’s Managing Director Abhijit Roy said, “The acquisition will increase our presence in South India through their dealer network. Sherwin Williams has a strong foothold in the southern market. It will also help increase our overall capacity and attain a market share of 24 per cent.”
However, Sherwin Williams will continue to compete with Berger on the industrial paint division. It entered into the Indian market three to four years ago with the purchase of the business of Nitco Paints.
When asked, whether Berger was considering a complete takeover of all the businesses of Sherwin Williams (SW), Roy said “It was they (SW) who approached us with the takeover, so if they find any synergy in the industrial business, we might consider it too.”
The company also said that it is investing Rs 240 crore in the expansion of its manufacturing units over three years. Of this, it will invest Rs 180 crore in construction of a greenfield unit at Hindupur in Andhra Pradesh with a capacity of, 6000 tonnes a month. The rest will be used in the expansion of existing units in Rishra in West Bengal and Goa.
Berger, with an annual turnover of Rs 1,000 crore, has a production capacity of 24,000 tonnes a month across seven units. With the new unit at Hindupur and acquisition of Sherwin Williams’ Taloja plant, it is likely to go up to 36,000 tonnes a month.
Meanwhile, the company’s shares hit a new high at Rs 210 in intra-day trading on Monday but closed at Rs 206 .85, up 2.66 per cent on the BSE.
The acquisition, carried out through Berger’s wholly owned subsidiary Brushworks, was funded through internal accruals. This will help the Kolkata-based paint major to strengthen its position in decorative or the architectural paint business.
Berger’s Managing Director Abhijit Roy said, “The acquisition will increase our presence in South India through their dealer network. Sherwin Williams has a strong foothold in the southern market. It will also help increase our overall capacity and attain a market share of 24 per cent.”
However, Sherwin Williams will continue to compete with Berger on the industrial paint division. It entered into the Indian market three to four years ago with the purchase of the business of Nitco Paints.
When asked, whether Berger was considering a complete takeover of all the businesses of Sherwin Williams (SW), Roy said “It was they (SW) who approached us with the takeover, so if they find any synergy in the industrial business, we might consider it too.”
The company also said that it is investing Rs 240 crore in the expansion of its manufacturing units over three years. Of this, it will invest Rs 180 crore in construction of a greenfield unit at Hindupur in Andhra Pradesh with a capacity of, 6000 tonnes a month. The rest will be used in the expansion of existing units in Rishra in West Bengal and Goa.
Berger, with an annual turnover of Rs 1,000 crore, has a production capacity of 24,000 tonnes a month across seven units. With the new unit at Hindupur and acquisition of Sherwin Williams’ Taloja plant, it is likely to go up to 36,000 tonnes a month.
Meanwhile, the company’s shares hit a new high at Rs 210 in intra-day trading on Monday but closed at Rs 206 .85, up 2.66 per cent on the BSE.
GVK, Aurizon to develop Oz basin infrastructure
Hyderabad: GVK Coal Infrastructure (Singapore) Pte Limited (GVK Hancock) and Aurizon, Australia's largest rail freight company, have signed an agreement on joint development of rail and port infrastructure to unlock the Galilee Basin reserves in that country, including GVK Hancock's Alpha, Kevin's Corner and Alpha West coal mines.
The agreement also envisages a process to support the next phase of coal growth in the Bowen Basin, which contains the largest coal reserves in Australia.
According to a GVK statement today, Aurizon would acquire a majority (51 per cent) interest in Hancock Coal Infrastructure, which owns GVK Hancock's rail and port projects. It would invest through an upfront consideration at completion of the transaction and deferred consideration at the financial close of each phase of the projects.
Both companies will have equal management rights and an equal representation on the board of all key committees. The chairman of the board will be G V K Reddy.
GVK Hancock and Aurizon are seeking development of a potential 60 mtpa (million tonne per annum) port and rail project to underpin the opening of reserves in the Galilee Basin and continued growth of the Bowen Basin.
Projects planned comprise a new rail project and development rights for a coal terminal at Abbot Point. GVK Hancock received the primary state and federal environmental approvals for the rail project in May and August 2012, respectively. GVK Hancock's port project received federal environmental approval in October 2012.
Collectively, the proposed development of the rail and port infrastructure, expected to deliver export capacity of 60 mtpa, could represent an investment for the state of Queensland of $6 billion, the staement said.
On completion of the transaction, Aurizon would gain the rights to operate and jointly manage with GVK the rail infrastructure and to exclusively provide the above rail haulage from GVK Hancock's Alpha and Kevin's Corner mines for up to 60 mtpa of coal.
"The proposed relationship with Aurizon would allow us to jointly develop the most cost and time-efficient rail and port solutions for the Galilee Basin. At full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial close," said G V Sanjay Reddy, vice-chairman of GVK.
The agreement also envisages a process to support the next phase of coal growth in the Bowen Basin, which contains the largest coal reserves in Australia.
According to a GVK statement today, Aurizon would acquire a majority (51 per cent) interest in Hancock Coal Infrastructure, which owns GVK Hancock's rail and port projects. It would invest through an upfront consideration at completion of the transaction and deferred consideration at the financial close of each phase of the projects.
Both companies will have equal management rights and an equal representation on the board of all key committees. The chairman of the board will be G V K Reddy.
GVK Hancock and Aurizon are seeking development of a potential 60 mtpa (million tonne per annum) port and rail project to underpin the opening of reserves in the Galilee Basin and continued growth of the Bowen Basin.
Projects planned comprise a new rail project and development rights for a coal terminal at Abbot Point. GVK Hancock received the primary state and federal environmental approvals for the rail project in May and August 2012, respectively. GVK Hancock's port project received federal environmental approval in October 2012.
Collectively, the proposed development of the rail and port infrastructure, expected to deliver export capacity of 60 mtpa, could represent an investment for the state of Queensland of $6 billion, the staement said.
On completion of the transaction, Aurizon would gain the rights to operate and jointly manage with GVK the rail infrastructure and to exclusively provide the above rail haulage from GVK Hancock's Alpha and Kevin's Corner mines for up to 60 mtpa of coal.
"The proposed relationship with Aurizon would allow us to jointly develop the most cost and time-efficient rail and port solutions for the Galilee Basin. At full capacity, the proposed arrangement is intended to provide sufficient equity and debt funding for the projects to reach financial close," said G V Sanjay Reddy, vice-chairman of GVK.
CIl proposes Rs 25,400.00 crore's investment for coal production
New Delhi: Coal India Limited (CIL) has proposed for an investment/ capital outlay of Rs. 25,400.00 crore for the Twelfth Five Year Plan, the details of which are:
Fig. in Rs. Crore
Scheme XII Plan Investment Proposed
Existing Mines & Completed Projects 4484.62
Ongoing Projects 11385.05
New Projects 2490.94
Sub Total (Mining) 18360.62
Non Mining & Others 7039.38
Grand Total 25400.00
This information was given by Shri Pratik PrakashBapu Patil, Minister of state for coal in a written reply in Rajya Sabha today. He said that CIL has proposed an ad-hoc provision of Rs. 35,000 crore for acquisition and development of coal assets abroad during the XIIth Plan period. Out of the aforesaid amount Rs. 10,000 crore has been allotted for exploration and development of 2 allotted coal blocks and creation of logistic infrastructure in Mozambique and the balance Rs.25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia, USA, Columbia, etc. The exploration activities are in progress in the allotted two coal blocks in Mozambique. Further, CIL has issued a notice on 27th February, 2013 inviting proposals from investment bankers, owners/ representatives for acquisition of coal assets abroad.
The Minister added that the annual production expected from coal assets acquired / to be acquired abroad would depend upon the specific production potential of each of such coal block or mine. At this stage it will not be possible to estimate the quantity of additional annual coal production arising out of investment of Rs 35,000 crore.
The decision regarding use of additional production envisaged and the companies to whom such coal will be sold would depend upon the type/quality of saleable coal available from CIL & mines in Mozambique and other coal assets expected to be acquired in other countries.
Fig. in Rs. Crore
Scheme XII Plan Investment Proposed
Existing Mines & Completed Projects 4484.62
Ongoing Projects 11385.05
New Projects 2490.94
Sub Total (Mining) 18360.62
Non Mining & Others 7039.38
Grand Total 25400.00
This information was given by Shri Pratik PrakashBapu Patil, Minister of state for coal in a written reply in Rajya Sabha today. He said that CIL has proposed an ad-hoc provision of Rs. 35,000 crore for acquisition and development of coal assets abroad during the XIIth Plan period. Out of the aforesaid amount Rs. 10,000 crore has been allotted for exploration and development of 2 allotted coal blocks and creation of logistic infrastructure in Mozambique and the balance Rs.25,000 crore has been kept for acquisition and development of coal blocks in other countries like South Africa, Indonesia, Australia, USA, Columbia, etc. The exploration activities are in progress in the allotted two coal blocks in Mozambique. Further, CIL has issued a notice on 27th February, 2013 inviting proposals from investment bankers, owners/ representatives for acquisition of coal assets abroad.
The Minister added that the annual production expected from coal assets acquired / to be acquired abroad would depend upon the specific production potential of each of such coal block or mine. At this stage it will not be possible to estimate the quantity of additional annual coal production arising out of investment of Rs 35,000 crore.
The decision regarding use of additional production envisaged and the companies to whom such coal will be sold would depend upon the type/quality of saleable coal available from CIL & mines in Mozambique and other coal assets expected to be acquired in other countries.
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