Hyderabad: Gati Infrastructure Ltd has commissioned its first 110 MW hydro electric power plant in Sikkim.
According to the company, they have invested about Rs 1,150 crore in the hydel project.
The company is a subsidiary of Amrit Jal Ventures Ltd promoted by Mahendra Agarwal, Founder and Chief Executive Officer of logistics company Gati Ltd.
Gati Infra had entered into an agreement with the Sikkim Government to implement three hydel power projects on build, operate, own and transfer basis.
The first project of 110 MW Chuzachen hydro project on Rangpo and Rongli rivers have been commissioned and have begun to sell power.
This is the first project by an independent power producer in Sikkim and the seven sisters in the North- East, Gati said.
Mahendra Agarwal in a statement said the commissioning of the hydel project is a big milestone in the history of Gati Group. Being a logistics company, the entry into power is an unrelated diversification.
The plant is directly connected to the Central Transmission Utility (national grid) through a 24-km dedicated transmission line and will be able to deliver power across the country.
The express distribution and supply chain company Gati Ltd, TCI Finance Ltd are shareholders of the company Amrit Jal Ventures Ltd, which is implementing two more hydel power projects in Sikkim.
These include a 54-MW Bhasmey hydro electric project and 71 MW Sada Mangdar project.
Gati shares closed the day at Rs 29.40, up 2.62 per cent on the BSE.
Success in my Habit
Friday, May 3, 2013
Cabinet Committee on Economic Affairs okays Rs 10.5k cr IKEA plan
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved Swedish furniture retailer IKEA's plan to invest Rs 10,500 crore for a single brand retail venture in India, making it the largest investment to be made by a foreign brand in the Indian retail sector.
The approval comes as the final go-ahead for the retail giant to set up shop in the country after it had submitted its application for an India entry early last year. The 25 billion euro company had received the Foreign Investment Proposal Board's (FIPB) nod in February this year.
"This is a very positive development...India is an important market for the IKEA Group from a sourcing perspective. We have been active in the country for more than 25 years and will continue to increase our sourcing in India from both existing and new suppliers building on long term relations and shared values," said Mikael Ohlsson, president and CEO, IKEA Group.
The company, which has been sourcing products approximately worth $450 million from India as of 2011, said it has growth plans to exceed $1 billion over the next few years with a target of setting up 10 stores over 10 years and around 25 stores over a longer time period.
While the government has allowed the furniture chain to run cafes and restaurants within its single brand stores, the brand will not be permitted to sell food items inside the stores, commerce minister Anand Sharma had said last month.
"Today's decision of CCEA to allow foreign investment proposal of IKEA is indeed a historic one. This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian small and medium enterprises in a wide range of labour intensive sectors for integrating into global value chain," Sharma said.
ETF for PSU stocks gets approval
MUMBAI/NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Thursday cleared the government proposal to set up an exchange traded fund backed by a basket of PSU stocks, commonly referred as CPSEETF. The government plans to float such a fund so that, among other benefits, PSU divestments could be carried out in a much less disruptive manner for the market and can also incentivize retail investors. An empowered group of ministers would take this forward, the government said in a release. The CPSEETF will constitute a basket of shares of different PSUs which would track an index, but will trade like a stock on the exchange. ICICI Securities is the adviser to the ETF and Goldman Sachs is learnt to be the fund manager. The release on CPSEETF noted that each stock would have a fixed weightage in the basket and the ETF will give discount to investors. Selling a mutual fund at a discount to its NAV is a new concept in the Indian market, and would require some rule change by the market regulator Sebi, mutual fund industry veterans pointed out.
The approval comes as the final go-ahead for the retail giant to set up shop in the country after it had submitted its application for an India entry early last year. The 25 billion euro company had received the Foreign Investment Proposal Board's (FIPB) nod in February this year.
"This is a very positive development...India is an important market for the IKEA Group from a sourcing perspective. We have been active in the country for more than 25 years and will continue to increase our sourcing in India from both existing and new suppliers building on long term relations and shared values," said Mikael Ohlsson, president and CEO, IKEA Group.
The company, which has been sourcing products approximately worth $450 million from India as of 2011, said it has growth plans to exceed $1 billion over the next few years with a target of setting up 10 stores over 10 years and around 25 stores over a longer time period.
While the government has allowed the furniture chain to run cafes and restaurants within its single brand stores, the brand will not be permitted to sell food items inside the stores, commerce minister Anand Sharma had said last month.
"Today's decision of CCEA to allow foreign investment proposal of IKEA is indeed a historic one. This will be the biggest foreign investment in the retail segment till now and will provide an opportunity to Indian small and medium enterprises in a wide range of labour intensive sectors for integrating into global value chain," Sharma said.
ETF for PSU stocks gets approval
MUMBAI/NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Thursday cleared the government proposal to set up an exchange traded fund backed by a basket of PSU stocks, commonly referred as CPSEETF. The government plans to float such a fund so that, among other benefits, PSU divestments could be carried out in a much less disruptive manner for the market and can also incentivize retail investors. An empowered group of ministers would take this forward, the government said in a release. The CPSEETF will constitute a basket of shares of different PSUs which would track an index, but will trade like a stock on the exchange. ICICI Securities is the adviser to the ETF and Goldman Sachs is learnt to be the fund manager. The release on CPSEETF noted that each stock would have a fixed weightage in the basket and the ETF will give discount to investors. Selling a mutual fund at a discount to its NAV is a new concept in the Indian market, and would require some rule change by the market regulator Sebi, mutual fund industry veterans pointed out.
Govt plans to set up Rs 5,000-cr inclusive innovation fund
Greater Noida: India plans to set up a dedicated Rs 5,000-crore fund to boost scientific innovations that can improve the life of the common man.
The Union Government will initially contribute Rs 100 crore to this fund – to be called India Inclusive Innovation Fund, Finance Minister P. Chidambaram said here on Thursday.
He was speaking at a seminar on “innovation for inclusion” at the 46th Annual meeting of the Board of Governors of Asian Development Bank.
Chidambaram’s speech was read in absentia by Economic Affairs Secretary Arvind Mayaram.
The remaining amount to the fund will come from scheduled banks, insurance companies, corporates and high networth individuals as well as bilateral and multilateral institutions, Chidambaram said.
The proposal for this fund came from the National Innovation Council.
Chidambaram said that the inclusive innovation fund was built on the principle that innovative enterprises can profitably, with scalability, and competitively engage citizens at the lower strata of the economic pyramid.
In doing so, goods and services could be provided that could transform their lives, he said.
India and several other emerging economies need Innovation for inclusion to raise the living standards of people.
The Union Government will initially contribute Rs 100 crore to this fund – to be called India Inclusive Innovation Fund, Finance Minister P. Chidambaram said here on Thursday.
He was speaking at a seminar on “innovation for inclusion” at the 46th Annual meeting of the Board of Governors of Asian Development Bank.
Chidambaram’s speech was read in absentia by Economic Affairs Secretary Arvind Mayaram.
The remaining amount to the fund will come from scheduled banks, insurance companies, corporates and high networth individuals as well as bilateral and multilateral institutions, Chidambaram said.
The proposal for this fund came from the National Innovation Council.
Chidambaram said that the inclusive innovation fund was built on the principle that innovative enterprises can profitably, with scalability, and competitively engage citizens at the lower strata of the economic pyramid.
In doing so, goods and services could be provided that could transform their lives, he said.
India and several other emerging economies need Innovation for inclusion to raise the living standards of people.
India, Iran commission meet in Tehran today
New Delhi: India and Iran are expected to explore avenues for increasing India’s exports to the Gulf nation at the 17 {+t} {+h} Joint Commission meeting which gets underway in Tehran on Friday.
Government officials indicated that food, medicines and pharmaceuticals are items in which India could increase its exports to Iran.
“India has a good capacity to export (in these sectors) and (these are areas) where Iran has been importing in the past and continues to look. It is up to industry and trade, but obviously both the Governments will try and support business communities from both sides,” the official said.
The Indian delegation to the meeting will be led by the External Affairs Minister Salman Khurshid.
During the Commission meeting, India and Iran are expected to sign three Memoranda of Understanding, officials said, but declined into get into details.
Government officials indicated that food, medicines and pharmaceuticals are items in which India could increase its exports to Iran.
“India has a good capacity to export (in these sectors) and (these are areas) where Iran has been importing in the past and continues to look. It is up to industry and trade, but obviously both the Governments will try and support business communities from both sides,” the official said.
The Indian delegation to the meeting will be led by the External Affairs Minister Salman Khurshid.
During the Commission meeting, India and Iran are expected to sign three Memoranda of Understanding, officials said, but declined into get into details.
Wednesday, May 1, 2013
Tata partners with Tel Aviv University to fund innovations
Mumbai: Tata Industries and Ramot at Tel Aviv University (TAU), the university's tech transfer company, have entered into a strategic memorandum of understanding (MoU) to fund and generate leading-edge 'commercialisation ready' technologies. This MoU will fund technologies in fields like engineering and exact sciences, environment and clean technology, pharmaceuticals and health care.
Under the MoU, Tata Industries, through its wholly owned overseas subsidiary, will be the lead investor in Ramot’s $20-million (approximately Rs 108.4 crore) Technology Innovation Momentum Fund, which will invest in promising technologies.
Technologies with commercial potential would be selected by committees comprising global domain experts and Tata representatives, who will drive the process to translate such innovations into licensing opportunities for Industry.
KRS Jamwal, executive director of Tata Industries said, “Tata has taken the decision to partner with Ramot and TAU with a desire to enhance capabilities of Tata companies and leverage technology as a differentiator for our businesses.”
An extensive due diligence process was conducted by chief technology officers from major Tata companies, prior to this MoU and we were encouraged by the technological leadership, the passion and the commitment demonstrated by TAU. During this process, the Tata team was exposed to more than 70 promising innovations and had the opportunity to interact with leading scientists at TAU."
Shlomo Nimrodi, the CEO of Ramot said being a lead investor, Tata would be able to see a pipeline of technologies. Nimrodi added they will have an option to commercialise certain promising opportunities from TAU.
Under the MoU, Tata Industries, through its wholly owned overseas subsidiary, will be the lead investor in Ramot’s $20-million (approximately Rs 108.4 crore) Technology Innovation Momentum Fund, which will invest in promising technologies.
Technologies with commercial potential would be selected by committees comprising global domain experts and Tata representatives, who will drive the process to translate such innovations into licensing opportunities for Industry.
KRS Jamwal, executive director of Tata Industries said, “Tata has taken the decision to partner with Ramot and TAU with a desire to enhance capabilities of Tata companies and leverage technology as a differentiator for our businesses.”
An extensive due diligence process was conducted by chief technology officers from major Tata companies, prior to this MoU and we were encouraged by the technological leadership, the passion and the commitment demonstrated by TAU. During this process, the Tata team was exposed to more than 70 promising innovations and had the opportunity to interact with leading scientists at TAU."
Shlomo Nimrodi, the CEO of Ramot said being a lead investor, Tata would be able to see a pipeline of technologies. Nimrodi added they will have an option to commercialise certain promising opportunities from TAU.
MoU with Mauritius to Strengthen Textiles Sector
New Delhi: A Memorandum of Understanding (MoU) was signed on February 7, 2012 between the Ministry of Textiles of the Republic of India and the Ministry of Industry, Commerce and Consumer Protection of the Republic of Mauritius for collaboration in the field of textiles and clothing. The MoU seeks to enhance the trade & economic relations by expanding business and cooperation in the sphere of textiles and clothing including sericulture and silk and fashion industries between India and Mauritius. Under the MoU, a Joint committee on Textile & Clothing (T&C) sector was constituted between both the countries. The Joint Committee has held 2 rounds of meetings on July 23, 2012 in New Delhi and January 28, 2013 in Port Louis, Mauritius. The Joint Committee has successfully developed the following five MoUs between Institutions of both countries for deepening textiles sector collaboration:-
(i) MoU between Apparel Exports Promotion Council (AEPC) and Enterprise Mauritius (EM): For development of the Driving Industry in Sustainable Human Advancement (DISHA) programme in Mauritius. The MoU envisages AEPC enabling Enterprise Mauritius in partnership with the Mauritius in partnership with the Mauritius Standard Bureau and other stakeholders to develop the compliance code, the Toolkit and Guidance Document as well as training schedules.
(ii) MoU between Northern India Textile Research Association (NITRA) and Mauritius Standard Bureau (MSB): To establish cooperation in the field of standardization, quality assurance and conformity assessment activities, accreditation of laboratories and proficiency in testing as well as capacity building and information exchange.
(iii) MoU between Northern India Textile Research Association (NITRA) and National Productivity and Competitiveness Council (NPCC): To establish cooperation in the field of productivity and quality improvement.
(iv) MoU between Clothing Manufacturers Association of India (CMAI) and Mauritius Export Association (MEXA): To establish cooperation in the field of fashion and design promotion, education and training through effective knowledge network of Textiles Professionals and Industry representatives of India and Mauritius.
(v) MoU between Institute of Apparel Management (IAM) and Fashion and Design Institute of Mauritius (FDI): To establish cooperation in the field of design and delivery of training programmes in the fields of textiles technology and fashion technology as well as academic interaction.
This information was given by the Minister of State in the Ministry of Textiles, Smt. Panabaaka Lakshmi in a written reply in the Lok Sabha today.
(i) MoU between Apparel Exports Promotion Council (AEPC) and Enterprise Mauritius (EM): For development of the Driving Industry in Sustainable Human Advancement (DISHA) programme in Mauritius. The MoU envisages AEPC enabling Enterprise Mauritius in partnership with the Mauritius in partnership with the Mauritius Standard Bureau and other stakeholders to develop the compliance code, the Toolkit and Guidance Document as well as training schedules.
(ii) MoU between Northern India Textile Research Association (NITRA) and Mauritius Standard Bureau (MSB): To establish cooperation in the field of standardization, quality assurance and conformity assessment activities, accreditation of laboratories and proficiency in testing as well as capacity building and information exchange.
(iii) MoU between Northern India Textile Research Association (NITRA) and National Productivity and Competitiveness Council (NPCC): To establish cooperation in the field of productivity and quality improvement.
(iv) MoU between Clothing Manufacturers Association of India (CMAI) and Mauritius Export Association (MEXA): To establish cooperation in the field of fashion and design promotion, education and training through effective knowledge network of Textiles Professionals and Industry representatives of India and Mauritius.
(v) MoU between Institute of Apparel Management (IAM) and Fashion and Design Institute of Mauritius (FDI): To establish cooperation in the field of design and delivery of training programmes in the fields of textiles technology and fashion technology as well as academic interaction.
This information was given by the Minister of State in the Ministry of Textiles, Smt. Panabaaka Lakshmi in a written reply in the Lok Sabha today.
Two FDI Proposals Amounting to RS. 89.33 Crore Approved by the Government
New Delhi: Further to para 8 of the Press Release dated March 25, 2013, wherein it was stated that decision of the 6 (Six) proposals will be communicated separately, the Central Government has approved two (2)Proposals of Foreign Direct Investment (FDI) amounting to Rs. 89.33 crore approximately.
In addition, one proposal viz., M/s Yes Bank Limited, Mumbai amounting to Rs. 2650.00 crore, has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Following two (2) proposals have been approved.
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
PHARMACEUTICALS
1 M/s Sunij Pharma Pvt. Ltd., Ahmedabd Induction of additional foreign equity in a pharmaceutical company. 0.46
ECONOMIC AFFAIRS (CM DIVISION)
2 M/s WCP Holdings III, Mauritius Acquisition of shares of an Indian stock exchange (NSE) from an existing financial institution shareholder. 88.87
The following two (2) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
2 M/s Scripbox.com India Pvt. Ltd., Bangalore Indian company acting as facilitator of investments into mutual funds (other financial Services not mentioned in the FDI policy) proposes to receive foreign investment.
The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Indian Energy Exchange Limited, Mumbai Post facto approval for the issue of compulsory convertible preference shares and equity shares to foreign investors. The company is engaged in the business of exchange of electricity.
The following one (1) proposal has been recommended for the consideration of CCEA, as the foreign equity inflow involved in the proposal is above Rs.1200.00 crore.
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s Yes Bank Limited, Mumbai To increase foreign equity participation through a qualified institutional placement (QIP) of Equity shares to eligible NRs and/or issue of GDRs to FIIs. 2650.00
In addition, one proposal viz., M/s Yes Bank Limited, Mumbai amounting to Rs. 2650.00 crore, has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Following two (2) proposals have been approved.
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
PHARMACEUTICALS
1 M/s Sunij Pharma Pvt. Ltd., Ahmedabd Induction of additional foreign equity in a pharmaceutical company. 0.46
ECONOMIC AFFAIRS (CM DIVISION)
2 M/s WCP Holdings III, Mauritius Acquisition of shares of an Indian stock exchange (NSE) from an existing financial institution shareholder. 88.87
The following two (2) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
2 M/s Scripbox.com India Pvt. Ltd., Bangalore Indian company acting as facilitator of investments into mutual funds (other financial Services not mentioned in the FDI policy) proposes to receive foreign investment.
The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Indian Energy Exchange Limited, Mumbai Post facto approval for the issue of compulsory convertible preference shares and equity shares to foreign investors. The company is engaged in the business of exchange of electricity.
The following one (1) proposal has been recommended for the consideration of CCEA, as the foreign equity inflow involved in the proposal is above Rs.1200.00 crore.
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s Yes Bank Limited, Mumbai To increase foreign equity participation through a qualified institutional placement (QIP) of Equity shares to eligible NRs and/or issue of GDRs to FIIs. 2650.00
IIMK ties up with Plymouth varsity
Kochi: IIM-Kozhikode signed an MoU with Plymouth University of the UK on Monday.
IIMK Director Debashis Chatterjee and Troy Heffernan, the International Programmes Director of Plymouth University signed the MoU at IIMK Campus.
Nandakumar M.K, chairperson of International Exchange Programme at IIMK, and Syamantak Bhattacharya of Plymouth University were present during the event.
The MoU will facilitate exchange of students and faculty members. It also helps academics from both the institutions to collaborate in research projects.
IIMK plans to accelerate its international activity by establishing tie-ups with leading business schools all over the world. Currently, IIMK has exchange partnerships with 29 international business schools.
The student exchange programme at IIMK has shown a sharp growth this year. The institute witnessed 100 per cent increase in the number of students participating in the international exchange programme.
According to Nandakumar, students participating in the exchange programme will gain international exposure and will get an opportunity to understand the business practices in the host country. They will also develop a good understanding of the cross-cultural issues in management.
IIMK Director Debashis Chatterjee and Troy Heffernan, the International Programmes Director of Plymouth University signed the MoU at IIMK Campus.
Nandakumar M.K, chairperson of International Exchange Programme at IIMK, and Syamantak Bhattacharya of Plymouth University were present during the event.
The MoU will facilitate exchange of students and faculty members. It also helps academics from both the institutions to collaborate in research projects.
IIMK plans to accelerate its international activity by establishing tie-ups with leading business schools all over the world. Currently, IIMK has exchange partnerships with 29 international business schools.
The student exchange programme at IIMK has shown a sharp growth this year. The institute witnessed 100 per cent increase in the number of students participating in the international exchange programme.
According to Nandakumar, students participating in the exchange programme will gain international exposure and will get an opportunity to understand the business practices in the host country. They will also develop a good understanding of the cross-cultural issues in management.
Tata Tech buys US-based Cambric for $32.5 million
Mumbai: In a bid to increase revenues from Europe, engineering services company Tata Technologies has acquired Cambric Corporation for $32.5 million (roughly Rs 175 crore).
The deal gives the company, which is a subsidiary of Tata Motors, access to three development centres in Romania, Tata Tech’s Managing Director and Chief Executive Officer Patrick McGoldrick said at a news conference today.
Of the $32.5-million deal, $30 million will be the cash component and the remaining will be milestone-linked payouts, company officials indicated.
In addition, sources said, the company is to benefit from Cambric’s existing clientele in the construction and heavy equipment space, including marquee names such as Caterpillar and CNH. Cambric’s existing customers will also have the option of being serviced by the Tata group company centres in India.
The US-headquartered Cambric is a privately-held company and reported revenues of $25 million as on December 31, 2012. It provides system engineering and design capabilities in engine, power train, chassis and structures, electrical and hydraulic systems, to its customers. The company employs 450 engineers in the US and Romania.
Post the completion of the transaction, Cambric will become a unit of the Indian company, McGoldrick said. The transaction is expected to be concluded by May, he said, adding that he did not foresee any problems in integrating the two companies.
The $250-million Tata Tech renders services to clients across 25 countries. In the current fiscal, the company will spend $14 million in capital expenditure, President Global Services and Chief Operating Officer Samir Yajnik had said in an earlier interaction.
IPO Plans
In 2011, Tata Tech completed a round of equity funding for Rs 141.06 crore from two Tata Capital-managed companies. Though analysts see this a pre-cursor to an initial public officering, McGoldrick is elusive.
“Listing is a decision for the board to take. All throughout, we have been financing growth through cash generation. If the board and our shareholders decide we should be listed, my job is to make that happen,” said McGoldrick.
The deal gives the company, which is a subsidiary of Tata Motors, access to three development centres in Romania, Tata Tech’s Managing Director and Chief Executive Officer Patrick McGoldrick said at a news conference today.
Of the $32.5-million deal, $30 million will be the cash component and the remaining will be milestone-linked payouts, company officials indicated.
In addition, sources said, the company is to benefit from Cambric’s existing clientele in the construction and heavy equipment space, including marquee names such as Caterpillar and CNH. Cambric’s existing customers will also have the option of being serviced by the Tata group company centres in India.
The US-headquartered Cambric is a privately-held company and reported revenues of $25 million as on December 31, 2012. It provides system engineering and design capabilities in engine, power train, chassis and structures, electrical and hydraulic systems, to its customers. The company employs 450 engineers in the US and Romania.
Post the completion of the transaction, Cambric will become a unit of the Indian company, McGoldrick said. The transaction is expected to be concluded by May, he said, adding that he did not foresee any problems in integrating the two companies.
The $250-million Tata Tech renders services to clients across 25 countries. In the current fiscal, the company will spend $14 million in capital expenditure, President Global Services and Chief Operating Officer Samir Yajnik had said in an earlier interaction.
IPO Plans
In 2011, Tata Tech completed a round of equity funding for Rs 141.06 crore from two Tata Capital-managed companies. Though analysts see this a pre-cursor to an initial public officering, McGoldrick is elusive.
“Listing is a decision for the board to take. All throughout, we have been financing growth through cash generation. If the board and our shareholders decide we should be listed, my job is to make that happen,” said McGoldrick.
Petronet signs deal with US firm for LNG imports
New Delhi: Petronet LNG has announced an agreement with Houston-based United LNG to import 4 million tonnes of gas a year for 20 years. “If everything goes well, the first cargo should come in 2018,” said R.K. Garg, Director (Finance) of the country’s biggest liquefied natural gas (LNG) importer.
The gas would be imported from Main Pass Energy Hub in the Gulf of Mexico. The $14-billion LNG project is jointly developed by United LNG and Freeport McMoRan Energy, which is yet to be commissioned.
Approvals
One of the conditions associated with the deal is the approval of the US Department of Energy (DoE) to export gas to countries, as the US does not have a free trade agreement (FTA) with India.
“In January, the Main Pass facility received approval from DoE to export gas to nations having an FTA with the US. Approval for sale to non-FTA nations is still pending,” said Deepak Pareek, analyst at Prabhudas Lilladher.
Garg said the project with which Petronet signed the agreement is in queue to seek an approval for exporting to India.
Buying Equity
According to industry watchers, Petronet is also keen to pick up equity stake in United LNG’s liquefaction facilities.
“We keep on discussing such proposals. Nothing has been finalised on this yet,” Garg said.
Main Pass Energy Hub is expected to begin construction of its first vessel this year. First LNG export from the said facility would commence in 2017. The project has taken an approval to export up to 24 million tonnes of gas every year.
Gas Price
Petronet did not comment on the expected gas price to be sourced from the project. Industry watchers are expecting the price to be similar to GAIL’s agreement with Cheniere.
Under the agreement, GAIL will pay for gas on a Henry Hub (which decides futures gas price at the New York Mercantile Exchange) basis. The landed price in India will be higher.
The gas would be imported from Main Pass Energy Hub in the Gulf of Mexico. The $14-billion LNG project is jointly developed by United LNG and Freeport McMoRan Energy, which is yet to be commissioned.
Approvals
One of the conditions associated with the deal is the approval of the US Department of Energy (DoE) to export gas to countries, as the US does not have a free trade agreement (FTA) with India.
“In January, the Main Pass facility received approval from DoE to export gas to nations having an FTA with the US. Approval for sale to non-FTA nations is still pending,” said Deepak Pareek, analyst at Prabhudas Lilladher.
Garg said the project with which Petronet signed the agreement is in queue to seek an approval for exporting to India.
Buying Equity
According to industry watchers, Petronet is also keen to pick up equity stake in United LNG’s liquefaction facilities.
“We keep on discussing such proposals. Nothing has been finalised on this yet,” Garg said.
Main Pass Energy Hub is expected to begin construction of its first vessel this year. First LNG export from the said facility would commence in 2017. The project has taken an approval to export up to 24 million tonnes of gas every year.
Gas Price
Petronet did not comment on the expected gas price to be sourced from the project. Industry watchers are expecting the price to be similar to GAIL’s agreement with Cheniere.
Under the agreement, GAIL will pay for gas on a Henry Hub (which decides futures gas price at the New York Mercantile Exchange) basis. The landed price in India will be higher.
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