PGCIL emerges lowest bidder for Rs. 6,300-crore Vemagiri II proj.

State-run Power Grid Corporation Ltd. (PGCIL) has emerged as the lowest bidder for Vemagiri II power transmission project of around Rs 6,300 crore in a tariff based auction. "PGCIL has emerged as the lowest bidder for Vemagiri II power transmission project of around Rs. 6,300 crore. The financial bids were opened recently," source said. The source added that Kalpataru Power Transmission has emerged as the lowest bidder for Alipurduar power transmission project for which financial bids were also opened. For Vemagiri II project, PGCIL has bid very aggressively and quoted Rs. 359 crore annual tariff per annum followed by Sterlite Grid (Rs 429.05 crore), Essel (Rs. 459 crore) and Adani (Rs 585 crore). Similarly for Alipurduar project, Kalpataru Power Transmission quoted the lowest tariff of Rs. 129.4 crore per annum followed by Essel (Rs. 129.6 crore), PGCIL (Rs. 138 crore), Sterlite Grid (Rs. 161 crore) and Adani (Rs. 198 crore). REC Transmission Projects (RECTPL) has conducted the auction of the two projects. Wholly-owned subsidiary of state-run Rural Electrification Corporation, RECTPL had earlier postponed the opening of financial bids for the two projects on October 16. The Vemagiri II project will strengthen the transmission system beyond Vemagiri and will be called Vemagiri II Transmission Ltd. It will traverse through Andhra Pradesh and Karnataka. Similarly, the Alipurduar project will strengthen transmission system in India for transfer of power from new hydroelectric projects in Bhutan. It will traverse through Bihar and West Bengal. The government has planned to put transmission projects worth Rs. 1 lakh crore on the block for auction during the current fiscal.

AAI plans futuristic plan for airport terminal building.

The Airports Authority of India (AAI) is thinking of a modified plan for the expansion of the new integrated terminal building of the Tiruchi international airport. The new terminal building expansion plan would be "futuristic" in the wake of the current upswing in overall passenger traffic especially international travellers at the airport. The proposed modified plan would take into account passenger traffic in the next 10 years at the Tiruchi airport and formulated accordingly keeping the current growth trend as the base. The proposed move to devise a modified plan emerged following the visit of AAI Chairman R.K. Srivastava to the Tiruchi international airport in mid-August. The AAI Chairman inspected the new integrated terminal building and ascertained the infrastructure facilities and passenger data. He was given a briefing on the existing plan drawn out for the expansion of the terminal building. Under the existing plan, the arrival and departure sides of the new terminal building was to be expanded by 100 metres and 80 metres respectively to double the passenger accommodation capacity by 800 with the estimated cost pegged at Rs. 200 crore. Consequent to the visit of the AAI chairman, the organisation was now thinking of coming out with a modified futuristic plan taking into account passenger traffic in the next 10 years. The Tiruchi international airport from where five foreign carriers operate flights to Singapore, Kuala Lumpur, Dubai, and Colombo every day has exceeded the one million mark with respect to passenger traffic. As the one million mark has been achieved, the AAI has now planned to work out a modified plan keeping in mind the current upswing in passenger traffic and the projected traffic in 2025-26, airport sources told The Hindu . The AAI corporate headquarters would work out the revised plan, a senior official said and added that the finer aspects of the new scheme was expected to be rolled out in due course. Airport sources were of the firm view that expansion of the new integrated terminal building would take at least three or four years from now. The steady increase in the number of overseas flight services over the years and the rise in passengers� movements necessitated the AAI to expand the new terminal building to augment space to cope with the traffic upswing. The airport is witness to bunching of overseas flights to different foreign destinations in the morning and night with hectic passengers� movements during that time daily. The Tiruchi airport handled over 11 lakh passengers � a majority of whom were overseas travellers during the 2014-15 financial year. The AAI expects the passenger traffic to touch 12 lakh this fiscal given the robust growth at present.

BASF to invest Euro 6 bn in German chemical manufacturing site.

BASF SE has announced its plans to spend a total of at least Euro 6 billion on investments, upgrading and maintenance measures between 2016 and 2020 at the chemical manufacturing site in Ludwigshafen, Germany. On October 21, 2015, company and employee representatives at BASF SE in Ludwigshafen signed a new site agreement, titled �Meeting the challenges of constant change together�, which applies to the approximately 36,000 employees of BASF SE at the site. It will run for five years (from January 1, 2016 until December 31, 2020) and follows on from the existing site agreement, which expires at the end of 2015. The company will continue to forgo forced redundancies for the duration of the agreement. �Economic and social changes are occurring ever faster and are becoming less and less predictable. With the new site agreement, we are creating a framework that offers both flexibility and reliability and will enable the Ludwigshafen site to remain competitive � now and in the future. We rely on our team of dedicated and skilled employees and we will continue to substantially invest in the largest, integrated Verbund site of BASF Group in the coming years,� said Margret Suckale, member of the Board of Executive Directors of BASF SE. Robert Oswald, head of the Works Council of BASF SE, commented, �Job security is highly valued and a decisive factor in motivating employees to actively support the constant change. With the new site agreement, we have been able to extend job security for employees. The company�s stated intent to continue vocational training on a comparable level as in the past and to foster the employability of its staff will also contribute to making the site fit for the future.� Forward-looking investments and active portfolio management are fundamental to the competitiveness of BASF SE. Flexible forms of employment, especially in areas where capacity utilization and order levels can fluctuate considerably, will be maintained and further developed. �The changes in the coming years will be very demanding for employees and managers, so they need to be flexible and prepared to take on new challenges. Job security and entrepreneurial flexibility go hand in hand,� said Dr Wolfgang Hapke, president, human resources at BASF.

Tata Steel to source water from Nilachal Ispat for Kalinganagar plant.

Tata Steel, the country's largest primary steel producer, has entered into a water-sharing agreement with Nilachal Ispat Nigam for its 3 million tonne Kalinganagar plant. Tata Steel is yet to secure land acquisition approvals for inter-connectivity for its own water supply to the plant scheduled to be commissioned by December. "Tata Steel will receive water from Nilachal Ispat from November 1 for a period of one year," an executive at Nilachal Ispat told Business Standard. "The government of Odisha has issued us permission to supply up to 17.5 cubic meter per second (42,000 cu meter per day) of water and we will try to supply the entire quantity to the Tata plant," he added. Nilachal Ispat refrained from divulging the financial details of the deal and said any water supply beyond a year would need board approval. Tata Steel is also sourcing water from Odisha Industrial Infrastructure Development Corporation (IDCO) for its Kalinganagar plant. "We are supplying 1,100 cubic meter per hour to Tata Steel since March and this contract is for one year. We will provide an extension if the company seeks it," said an official in the water division of IDCO. For every tonne of steel needs about 4 cubic meters of water, which means 12 million cubic meters of water for a 3 million tonne steel plant, according to industry sources. Tata Steel did not respond to a query about its water shortfall at the Kalinganagar facility and its plans to fix it. Delays in approvals for inter-connectivity of water supply was the reason Tata Steel had to enter these agreements, said Nilachal Ispat executives and IDCO officials.

'Adani might proceed with Carmichael project'.

Adani Enterprises is expected to proceed with building its A$7.2-billion ($5.2 billion) Carmichael coal mine and rail project in Queensland state, Australia resources and energy minister Josh Frydenberg said. The project, approved by Australia's regulators October 15, is financially viable due to global energy demand and is unlikely to receive government subsidies, Frydenberg said in an Australian Broadcasting Corp interview recently. The Indian company controlled by billionaire Gautam Adani will have to contend with opposition from environmental groups and the lowest thermal coal prices in more than eight years. "The Carmichael project is of great importance to Queensland and Australia," Frydenberg said. "We've seen a downturn in the price for coal but this project has more than a 40-year lifespan and there's a clear increase in demand for coal and indeed energy across the world." Global energy demand is expected to increase by a third by 2040, he said. Adani plans to build a 388-kilometer (241-mile) rail line to link the mine to the Abbot Point port on the Queensland coast, according to its website. The project is subject to 36 strict conditions, environment minister Greg Hunt said in an e- mailed statement October 15.

IOC executing Rs. 12,000-cr pipeline projects.

Indian Oil Corporation (IOC), the nation�s largest fuel retailer, is busy executing a dozen-odd projects at an investment of around Rs. 12,000 crore to expand its network of crude oil and products pipeline by 54 per cent to 17,000 km by 2019. This is part of a larger expansion plan involving Rs. 1.75 lakh crore that is in the works. "When commissioned, the projects would increase our transportation network from the existing 11,200 km by an additional 6,000 km by the end of FY19. The projects are primarily meant at transportation of large volumes, while the last-mile connectivity to depots would be ensured through roads," Anish Aggarwal, director (pipelines), IOC, told Business Standard. The 12 projects currently being commissioned would ramp up the oil marketer�s combined fuel carrying capacity by 25 million tonnes per annum (mtpa) over the five-year period, up from the current 80 mtpa. This includes the 4.5-mtpa Barauni-Hyderabad pipeline, 5-mtpa Paradip-Raichur-Ranchi pipeline and the 2-mtpa pipeline from Durgapur to Muzaffarpur via Barauni and Patna. The three pipelines would together cover half or 3,300 km of the network length under execution. "In addition, another 8,000-km pipeline projects are in the planning stage. Plans for around Rs. 3,000 crore worth of projects are likely to be approved shortly," said Aggarwal. The company is developing the new pipeline infrastructure to cater to the rising demand for liquefied petroleum gas (LPG) from the rural areas and building connectivity for the two new LPG import terminals being set up by IOC at Kochi in Kerala and Paradip in Odisha.

L&T supplies first parts of Cryostat for ITER facility.

The L&T Heavy Engineering, has sent its first consignment of parts for Cryostat, a major section of the International Thermonuclear Experimental Reactor (ITER) facility, which is being built in South of France. ITER is a mammoth project being carried out by the international scientific community for producing power using nuclear fusion. It is being built through in-kind contributions from the participant countries in the form of components. India through Department of Atomic Energy is supporting ITER. The Cryostat is a containment vessel with super-cooled liquids, which are meant for controlling very high temperatures, generated during fusion reactions. A statement issued by L&T said that this is the first HEL (Heavy Exceptional Load) consignment for the ITER programme, which is being dispatched to France with a total weight of 460 metric tonnes. The Cryostat is a fully welded cylindrical vacuum chamber, designed with an overall dimension of 29.3 meter diameter, 29.6 meter height and weight of 3850 metric tonnes. Built from stainless steel, its thickness varies from 50 mm to 250 mm. The major forgings for the Cryostat segment were indigenously made and supplied by L&T Special Steel and Heavy Forgings. ITER-India is the domestic agency, created with a responsibility to provide India�s contributions of equipment to the project. The agency had commissioned L&T for making the Cryostat. In view of the very large dimensions of the structure, the cryostat is being fabricated in different segments at L&T�s Hazira facility. It is to be dispatched in 50 different modules to France. This consignment marks the dispatch of the first module.

Maxxis Group to invest Rs. 2,600 cr to make tyres in Gujarat.

Taiwanese tyre maker Maxxis Group will invest around Rs. 2,600 crore for its upcoming facility at Sanand GIDC and will manufacture about 10,000 tyres per day for two-wheelers, which will be increased in a phased manner. Company's chairman Tsai-Jen Lo met Gujarat Chief Minister Anandiben Patel and updated her on the company's investment plans in the state. The company has been allocated 43 hectares of land for the tyre manufacturing facility, which is expected to be commissioned by 2016. The plant will employ about 2,000 people and will also participate for the skill development of youth in this area. "Talked about collaboration between Maxxis group & GoG to establish centers for skill development & upgradation to impart skill-training," the Chief Minister posted on her micro-blogging site Twitter. Maxxis Group plans to manufacture about 10,000 tyres for two-wheelers and about 20,000 tubes per day beginning 2016. Senior company officials had visited Gujarat and met the Chief Minister in October 2014 for the finalisation of the proposed plant.

Chandrababu Naidu lays foundation stone for new airport terminal at Vijayawada.

The Andhra Pradesh Chief Minister, N Chandrababu Naidu, recently laid the foundation stone for the new airport terminal building at Gannavaram near Vijayawada being developed with an outlay of Rs. 150 crore. The event was attended by the Union Aviation Minister, Ashok Gajapathi Raju, the Union Urban Development and Parliamentary Affairs Minister, M Venkaiah Naidu, the Union Science and Technology Minister, YS Chowdary, among others, The terminal is being developed with an outlay of Rs. 137 crore along with other amenities. It will have a capacity to handle about 500 passengers in an hour, 250 departing and 250 arriving. The airport terminal building will be spread over 9,520 sq.m. and located on a 540-acre site. With the new capital city of Amaravati being developed in Guntur district, it is expected to rapidly add to the traffic flow. The State Government is seeking to upgrade the connectivity from Vijayawada and the new upcoming town of Amaravati to the airport. Meanwhile, the new terminal building developed at the temple town of Tirupati by the Airports Authority of India with an outlay of Rs. 175 crore is expected to be formally inaugurated by the Prime Minister, Narendra Modi, during his visit to AP on October 22 for the capital city foundation ceremony. The terminal has been developed over a 16,500 sq.m. and has a capability to handle 700 passengers.

Anil Ambani-led Reliance Group to further invest Rs. 46,000 cr in Madhya Pradesh.

Strengthening its presence in Madhya Pradesh, the Anil Ambani-led Reliance Group will invest around Rs. 46,000 crore in sectors such as defence, IT, electronics and energy. The company has also decided to set up a Rotary Wing Helicopter Unit in Bhopal. In a meeting with state Chief Minister Shivraj Singh Chouhan here, the Reliance Group Chairman committed to invest Rs. 46,000 crore in key areas like defence, information technology, electronics development and energy, an official release said. Chouhan also briefed Ambani about efforts being undertaken by the government with regard to implementation of the new investor-friendly policy aimed at enhancing investment climate in the state. Madhya Pradesh government will ensure that no problem will come in the way of investments, Chouhan said adding that industries are being encouraged in the state in order to reduce people�s too much dependence on agriculture. On his investment plans in the state, Ambani said the Reliance Group will invest in Pithampur industrial area near Indore and Bhopal in the defence sector, the release quoted him as saying. �An Integrated Land System Defence Manufacturing Hub in Pithampur and a Rotary Wing Helicopter Manufacturing Unit in Bhopal will be set up with an investment of nearly Rs. 6,000 crore,� it said. In the area of information technology, the company will set up a world class data storage centre in Pitampur with an investment of Rs. 1,500 crore. These units will be accorded facilities as offered in the Special Economic Zone (SEZ) area, the release said. The company will invest nearly Rs. 27,000 crore for making ingots and polysilicons used in solar panels. Besides, the group has plans to further invest Rs. 12,000 crore in Sasan Power Project. These projects will generate direct and indirect employment for nearly 70,000 people. The company has also proposed to set up management institute International School of Business (ISB) in Bhopal, the release said. The group has already marked a significant presence in the state and invested Rs. 35,000 crore in the areas of cement, telecom and financial services. Reliance will be allotted 400 acres of land in Pithampur and 70 acres in Bhopal for its projects.

Delhi-based firm to build aerospace facility in Dubai.

A Delhi-based aircraft services firm has singned an agreement with the Dubai World Central to build an "ultramodern" maintenance, repair and operations facility with an investment of $100 million in the Gulf region. "It is a matter of pride for India as a country and indeed an honour for Haveus Aerotech India to be chosen as the first Indian company to partner with DWC to build and operate the first and most advanced MRO facility in the whole of the Gulf region," said Anshul Bhargava, director of Haveus, who signed the offer letter at a conference in London this week. "This ultra-modern, technologically advanced MRO facility involves an investment of over $100 million," he said.

2 Chinese companies to invest $5bn in renewable power sector.

In a boost to PM Narendra Modi's 'Make in India' project, two Chinese companies, Sany Group and Chint Group, said recently that they are looking to invest around $5 billion in the country's renewable power sector. While Sany, one of China's leading manufacturers of construction equipment, has committed around $3 billion in five years for setting up wind turbines, Chint, which specializes in industrial equipment and energy, will invest around $2 billion in solar projects. Sany said its projects will generate 4.8 terra-watthours (TWh) of green and clean power annually and create 1,000 jobs. "Narendra Modi's visit to China has bettered Indo-China business ties," said Sany Group chairman Kiang Wengen. "This investment is a significant step in deepening our presence and com mitment to India. Green energy industry in India is growing and we see this as a huge opportunity to introduce our wind energy business in the country."

Vedanta signs MoU to invest Rs. 8400 crore to expand its base in Rajasthan.

The Vedanta group signed an early agreement to invest around Rs. 8,400 crore to expand and develop its mineral and mining base in Rajasthan. This is part of more than Rs. 20,000 crore of investment lined up by Vedanta to expand its mining and oil business in the western Indian state over 3-5 years. The latest memorandum of understanding follows an MoU signed recently by group company Cairn India to develop new oilfields. While Vedanta unit Hindustan Zinc (HZL) plans to invest Rs. 8,400 crore to develop and expand zinc-lead ore mines and smelters, as well as in a new fertilizer plant, Cairn has promised to pump in Rs. 12,500 crore "We have signed a MoU today with the Rajasthan government worth Rs 8,357 crore to be invested in coming three years," HZL Chief Executive Sunil Duggal said recently.

McNally Bharat JV bags Rs. 2048 cr contract for bitumen project in Oman.

McNally Bharat Engineering Company Ltd (MBE) joint venture firm in Oman has bagged $ 315 million (about Rs 2048 crores) for a bitumen refinery project in that country. �McNally Bharat Engineering, through its recently formed 50:50 special purpose vehicle (SPV) with EMC Group of Oman, received a contract for construction, detailed engineering, construction supervision, mechanical commissioning and supply for a value of $ 315 million (Rs 2048 crores approximately) from Sohar Bitumen LLC in Oman for its bitumen refinery in Sohar, Muscat, Oman,� said MBE in a BSE filing. The bitumen refinery is part of the Sohar Refinery Improvement Project (SRIP), a multibillion dollar capital investment undertaken by Orpic (Oman Oil Refineries and Petroleum Industries Company). With this project, for the first time in Oman Orpic will be able to produce bitumen, primarily used to manufacture asphalt. The bitumen project will reportedly have an installed capacity of around 300,000 tonnes per annum.

Malaysia proposes $30 bn investment in urban development.

Malaysia's Construction Industry Development Board (CIDB) has proposed to invest $30 billion in two urban development and housing projects in India, a statement from the Ministry of Urban Development said recently. Malaysia�s Minister of Works Haji Fadillah Bin Haji Yusof, along with a 30-member delegation, met Union Minister of Urban Development and Housing & Urban Poverty Alleviation M. Venkaiah Naidu here. "Redevelopment of New Delhi Railway Station adjoining area as a mini-smart city is proposed to be taken up with an investment of about $ 24 billion. CIDB also proposed to take up a Green City Project at Garhmukhteshwar in Uttar Pradesh involving housing and Ganga cleaning projects with an investment of about $ 4 billion," the statement said. National Buildings Construction Corporation (NBCC) will be associated with these projects. The Ministry has asked NBCC to make detailed presentations to the Ministries of Railways, Finance, Water Resources and the Government of Delhi and Uttar Pradesh for further consideration. The Malaysian delegation included representatives of government agencies like CIDB, Malaysian Highway Authority (LLM), Pembinan and EXIM Bank besides private sectors companies. The statement added that a 20-member Chinese delegation led by the Chairman of SANY Group Liang Wengen also met Naidu and held discussions on investment opportunities in India's urban sector initiatives.

China's Sany Group to Invest $3 Billion in India.

Chinese construction equipment major Sany Group has committed to invest $3 billion, `20,000 crore, in setting up renewable energy projects in India between 2016-2020. Signing and handing over the Green Energy Commitment to the Prime Minister, the Group has committed to set up 2000 MW renewable energy projects across the country. These projects are expected to generate 4.8 TWh of green power annually. Chairman of the Group Liang Wengen said that Sany will establish technologies for Off-Shore Wind Power Generation. �Green Energy industry in India is growing and we see this as a huge opportunity to introduce our wind Energy business in the country. We have invested in a potential market like India, and are excited about the future growth & potential for future investment,� he said. The company currently employs about 30,000 people globally and 269 people across India and entered the Indian market in 2002 and established a manufacturing plant in 2009 in Chakan, Pune. In India, the company operates in excavator, cranes, concrete machinery,port machinery, road and renewable energy businesses. Amitabh Kant, Secretary, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce & Industry, Government of India, said that the Indian government was keen on seeing China investing more in India. �Especially in the manufacturing sector and partnering with India to make India a world class manufacturing base for production. We look forward to working closely with them to strengthen the bond between the two countries,� he pointed out.

GAIL, NTPC, banks to pump Rs. 2,000 cr into Dabhol.

Both GAIL and NTPC are to pump Rs. 500 crore each into the separate company formed to take care of the liquefied natural gas (LNG) business of the former Ratnagiri Gas and Power Pvt Ltd (RGPPL), while a consortium of banks will invest another Rs.1,000 crore. The total investment of Rs.2,000 crore (lenders will put in the rest) will be used to raise the present capacity of the LNG terminal at Dabhol to 5 million tonnes by 2018. It will also enable upgrading of the plant system (as of today built to supply low-pressure gas for the power plant) and facilitate building of a breakwater that will ensure that the terminal can operate throughout the year, GAIL Chairman and Managing Director BC Tripathi has said. �Dabhol (terminal) has again started operation after the monsoon, and the first cargo of LNG from British Gas was received a couple of days ago. It is operating at 25-30 per cent capacity right now, and it will go up further,� he said. Tripathi added that the immediate target was to revive and upgrade the terminal and raise its capacity to five million tonnes per annum (for which it has been built) from the current three million tonnes. While half of the Rs. 2,000-crore for this will be shared equally by GAIL and NTPC, the remaining amount will be financed by SBI, IDBI, ICICI, Canara Bank and a small portion from IFCI. There is also a long-term plan to further raise the capacity of the LNG terminal to 10 million tonnes as the basic work has already been done and this would call for a further investment of Rs. 3,000 crore, Tripathi said. �It will take another two years for the terminal to operate fully. The LNG being imported will be used for production of power and will also be supplied to the market. Currently, around 0.7 million tonnes is being used by the power block and the terminal is supplying 6 standard cubic meters per day to industry and consumers like MNGL,� he stated. Tripathi is hopeful that in another two years the breakwater will be in place and the terminal will be operating throughout the year. Right now, it does not operate during the monsoon because of the rough weather. For supply of LNG, mid-term agreements with several global players have been signed for the next year and purchase will also be made through spot buying. Earlier this month, Union Power Minister Piyush Goyal announced that RGPPL�s 1,967 MW power plant at Dabhol in Ratnagiri, which has been shut for several months as there was no gas to operate it, will be revived. The board has approved the company�s split entities, which will independently operate the LNG and power businesses. Power production from here is to begin on November 1 and the 500 MW generated is to be sold to the Railways.

Kuwait signs $13bn contracts to build new refinery; India's Essar Oil part of the project

The Kuwait National Petroleum Company (KNPC) has signed contracts worth USD 13.2 billion to build a new refinery.

According to the company’s announcement on Tuesday, the contracts have been signed with international firms in order to build the new refinery, which is expected to be the country’s largest development project, AFP reported.

The deal comes as Kuwait, a major oil producing country, is planning to take steps to modernize its energy facilities and boost its oil refining capacity.

The al-Zour refinery, which will be located near the country’s border with Saudi Arabia, is slated to produce 615,000 barrels per day (bpd) of crude oil.

According to Mohammad al-Mutairi, KNPC’s CEO, the new plant is scheduled to come onstream in November 2019.

Spain's Tecnicas Reunidas, China's Sinopec, South Korea's Hyundai, SK, Daewoo and Hanwha, Britain-based Fluor, Italy's Saipem and India's Essar have been announced as the 10 foreign companies involved in the implementation of the project.

The refinery will be built in five packages, with the first valued at 1.28 billion dinars awarded to Technicas, Hanwha Engineering & Construction Corp. and China Petroleum & Chemical Corp., known as Sinopec, Khaled Al-Awadhi, KNPC project manager, said at the signing ceremony. The second and third packages at a combined value of 1.75 billion dinars were awarded to Fluor Corp., Daewoo and Hyundai Heavy Industries Co., he said. The fourth package valued at 475 million dinars was given to Saipem SpA and India's Essar Oil Ltd., and the fifth package of 454 million dinars to Hyundai Engineering & Construction Co., Saipem and SK Holdings Co. Ltd, he said.

Kuwait is currently producing 2.8 million barrels per day of crude oil.

IOC to spend Rs. 32,500 crore on expansion.($5 billion)

Indian Oil Corporation, the nation's biggest refiner and fuel retailer, is planning to spend about $5 billion (nearly Rs 32,500 crore) to expand its exploration and production business, with half the amount slated to go into acquisition of new assets that are increasingly becoming available in the wake of a global crude oil crash. About 50% decline in crude oil prices in a year and the expectation that the prices may not go up in a hurry has shaken the faith at many oil firms, which have been redrawing plans, shelving projects and touching only those projects that are viable at current prices. But energy-starved economies like India have been encouraging their firms to go out and buy equity, mainly in producing fields with an aim to aid the country's energy security. State-run ONGC Videsh recently acquired 15% stake in a prolific Russian field. And now Indian Oil hopes to acquire some oil equity overseas. "Internationally, many assets are on sale. We will look at those," said AK Sharma, director (finance) at IOC. "We will participate in auctions overseas. We also intend to participate in the NELP (domestic auction of hydrocarbon blocks) when it happens." The company, which is in talks with potential strategic partners internationally, will prefer a producing or a near-producing asset since this eliminates much risk. IOC is a late entrant and still a peripheral player in the exploration and production business.

Hindustan Copper Limited decides to expand at the Surda copper mine in Jharkhand.

Hindustan Copper Limited (HCL), the country's largest state run copper producer, has decided to go ahead with its expansion plans at the Surda copper mine in Jharkhand. The project will be taken up by Aussie mining company, India Resources Limited (IRL) through its wholly owned subsidiary, India Resources Copper Mining Private Limited (ICMPL). Following a period of protracted negotiation to iron out outstanding issues, ICMPL recently signed a MoU with Shriram EPC (SEPC) as the prinicipal contractor to HCL for the project for the immediate recommencement of the Surda Expansion project, IRL said. "All three parties HCL, IRL and SEPC contributed to reaching this agreement and it represents a positive outcome for all stakeholders," IRL which is listed on the Australian Stock Exchange said in a statement on Monday. The Surda Expansion contract was suspended in September 2014 following the issue of a stop work order by HCL as a result of delays in the renewal of the mining license for Surda project. Incidentally, Hindustan Copper Limited (HCL) has been operating its Surda mines by outsourcing the work to IRL since 2007. SEPC had earlier won the over Rs 206-crore contract through bidding.IRL had made an investment of around Rs 75 crore to re-commission and develop the mine in last seven years and was able to increase production by 60% from when HCL worked the mine. Earlier in June 2015, operations had recommenced at Surda copper mine one of HCL's productive mines, after a gap of over nine months. Following the recent agreement, high speed sinking of the shaft is scheduled to commence within the next three months following completion of initial infrastructure work by ICMPL. SEPC is responsible for all the funding aspects of the project along with the supply of equipment. ICMPL is the project manager and is responsible for arranging working capital.

PM lays foundation stone for 4th container terminal of Jawaharlal Nehru Port Trust

Prime Minister Narendra Modi recently unveiled the plaque for laying of the foundation stone of the fourth container terminal of the Jawaharlal Nehru Port in Mumbai. As per the release on the Press Information Bureau website, Governor of Maharashtra Vidyasagar Rao, Chief Minister of Maharashtra Devendra Fadnavis, and the Union Minister for Shipping Nitin Gadkari were also present on the occasion. The project is being executed by Bharat Mumbai Container Terminal, a subsidiary of Port of Singapore, on a design, built, fund, operate and transfer basis, under whichJawaharlal Nehru Port Trust (JNPT) will get a 35.9 per cent share in revenues. The two-phased project will see the overall container handling capacity of JNPT more than double to 10 million standard units of container from the present 4.5 million. At present, the JNPT which was started in the 1980s, is the 31st biggest globally. Work on the project is divided into two phases, entailing an investment of Rs 4,719 crore and Rs 3,196 crore, respectively, and work is expected to be complete by end of 2017.

HCC bags order worth Rs. 942 cr from BARC.

Hindustan Construction Company (HCC) has bagged a contract worth Rs 942.58 crore from BARC to construct the first phase of its Integrated Nuclear Recycle Plant. �The company has been awarded a prestigious BARC contract worth Rs 942.58 crore for constructing the first phase of Integrated Nuclear Recycle Plant of BARC,� HCC said in a regulatory filing. It further said: �The scope of work includes construction of fuel processing plant, lab building, disposable material block along with in-situ fabricated stainless steel tanks and liners and electromechanical works.� Hindustan Construction Company said the project located at coastal town of Tarapur will be completed in 36 months. This project is part of the first phase of Integrated Nuclear Recycle Plant being built to process spent fuel from upcoming nuclear power plants.

Mangalore Refinery and Petrochemicals plans to set up LNG Terminal at Mangalore port.

Mangalore Refinery and Petrochemicals (MRPL) will conduct feasibility studies for setting up a liquefied natural gas (LNG) terminal at Mangalore port. MRPL, a unit of Oil and Natural Gas Corp (ONGC), will explore a possibility of setting up a fixed or landbased LNG import terminal as well as a floating receipt facility on highseas. The company recently signed an MoU with New Mangalore Port Trust (NMPT) to study the feasibility of setting up an LNG re-gassification terminal at Mangalore, the company said in a statement. The MOU, signed by MRPL Managing Director H Kumar and NMPT Chairman P C Parida, "facilitates MRPL to initiate feasibility and other associated studies to identify the most suitable location for the facility, and to consider the option of setting up LNG terminal/ Floating Storage Regasification Unit (FSRU)," it said. In March 2013, MRPL's partent firm, Oil and Natural Gas Corp (ONGC) along with its partners Mitsui of Japan and BPCL had signed an agreement with NMPT to conduct feasibility of setting up USD 500-750 million LNG import terminal at Mangalore. The outcome of the study is not known. The ONGC terminal was to have an initial capacity of 2-3 million tonnes, which can be expanded to five million tonnes later.

6 companies in fray for 2 transmission projects worth Rs. 8,000 crore.

As many as six companies including state-run Power Grid (PGCIL), Sterlite and Adani have qualified on technical grounds for submitting financial bids for Vemagiri II power transmission project worth around Rs. 6,300 crore. Besides, PGCIL, Sterlite Grid, Adani, Kalpataru and Essel Infra Projects have qualified on technical ground to submit financial bids for Alipurduar power transmission project estimated at around Rs. 1,800 crore. "The financial bids for the two projects will be submitted by tomorrow and they will be opened on October 16. The cumulative worth of these two projects would be highest on offer after the government decided to auction transmission projects worth Rs. one lakh crore during this fiscal," a source said. REC Transmission Projects Co, Ltd. (RECTPL) is conducting the auction these two transmission project. It is a wholly owned subsidiary of state-run Rural Electrification Corporation Ltd. The source said that PGCIL, Sterlite Grid, Adani, Inabensa Bharat, Kalpataru Power Transmission, Consortium of Megha Engineering & Gayatri Projects have qualified for Vemagiri II project. The Vemagiri II project will strengthen transmission system beyond Vemagiri and will be called Vemagiri II Transmission Ltd. It will traverse through Andhra Pradesh and Karnataka. Similarly, the Alipurduar project will strengthen transmission system in India for Transfer of Power from new hydro electric projects in Bhutan. It will traverse through Bihar and West Bengal. "The participation of private developers will give right signals for increasing investments in the sector. They are discouraged due to allocation of green corridor projects to PGCIL," an executive of a private company said.

Hunt on for leader to lay $10 billion TAPI gas pipeline.

The four-nation consortium has revived the search for a leader to help lay the $10-billion TAPI gas pipeline, laying bare the lack of confidence among the countries to go ahead on their own and threatening to delay the project further. Just two months back, Turkmenistan, Afghanistan, Pakistan and India had agreed to co-own the project with TurkmenGaz, the state-owned firm of Turkmenistan, expected to make the majority investment in laying the 1800-km pipeline that would begin the construction work in December. Now again the timeline looks shaky. "The key challenge is to select a consortium leader or a partner. We are still looking for one," said BC Tripathi, chairman of GAIL, the state-run firm that represents India in the consortium. The top executives of GAIL and other state companies representing three other nations have been negotiating the terms between themselves and figuring out the nuances of the project for the last two months since the oil ministers of the four countries agreed in Ashgabat to go on their own without waiting for a firm with experience in laying and operating pipeline to lead the consortium. Tripathi said it was "difficult to give a timeline" on when the leader or the partner would be selected and how much stake it would own. The partner would bring "experience, finance and the confidence", he said. None of the four countries have experience building or managing transnational pipelines, especially in a volatile region like Afghanistan and Pakistan where Taliban and other extremists could pose big threat to the security of the pipeline, expected to carry natural gas from the hydrocarbons-rich Turkmenistan to India.

Western Coalfields to open 36 mines in 36 months.

Coal India's subsidiary Western Coalfields is on track to open 36 mines in 36 months by 2018, having opened eight mines in the past eight months as part of a plan to contribute its bit to helping the state-run monopoly miner meet its output target of 1 billion tonnes by 2020. Western Coalfields, a laggard for the past several years, has drawn up the expansion plan which entails a total production of 60 million tonnes including an incremental growth of 15 million tonnes in the next five years. The company's production has been falling for the past five years in a row because its existing mines were depleting fast while it was unable to open new mines since they were not economically viable and could not earn the stipulated 12% internal rate of return on the investments required for these projects. "Opening new projects and expanding ongoing ones was the only way forward," said chairman and managing director RR Mishra. He said the company did a thorough stocktaking of all the unviable projects, which prompted it to craft a turnaround strategy that in volved suitably modifying the rehabilitation and resettlement policy, undertake trust building initiative and resize projects or merge them, and make them viable. "We managed to improve via bility of 36 projects out of a total 42 that were pending. All these will now be taken up - one each month for 36 months in a row," said Mishra. Tweaking of the rehabilita tion policy enabled the company to possess an additional 2,300 hectares in 10 months compared to 1,350 hectares in the past five years. It disbursed . 31 crore in lieu of employ' ment in this period and paid compensation of ' . 445 crore, compared to ' . 142 crore paid in the previous 10 years.

ThyssenKrupp plans its first elevator plant in India.

ThyssenKrupp AG has firmed up plans to build its first elevator manufacturing plant in India costing Euro 44 million, as the German industrial conglomerate mulls to make the country an export hub to cater to the requirements of South East Asia and Africa in diversified business areas. Top company officials said the ground-breaking ceremony for the proposed multipurpose plant at Chakan in Pune which would have a capacity to manufacture 6,000 elevators per annum is slated for October 13. "The multipurpose factory will deliver more suitable products to meet demand in India, where skyline has changed in recent years," said Oliver Burkhard, a member of the Executive Board and in-charge of regions including India. India has some of the fastest-growing urban areas and also it's the world's fastest-growing elevator market, he said. "In terms of potential sales for our products as well as talented people for our production and service centres, India is an important part of ThyssenKrupp's strategy for growth in the next few years," he said. According to recently released TechSci Research report titled 'India Elevators Market Forecast & Opportunities 2020', elevators market in the country is projected to surpass USD 1.6 billion by 2020. It said that increasing public-private investments in infrastructure development and construction sector, along with increasing number of residential complexes, are expected to drive sales of elevators during the forecast period. Ongoing government housing projects and metro expansion across various cities are also propelling the demand for new installations in different parts of the country.

Tata Steel invests Rs. 22,000 cr in Odisha plant; to start op soon.

Tata Steel is set to commission the first phase of its Kalinganagar plant, where it has invested Rs. 22,000 crore so far, in the next fiscal. The Kalinganagar project in Odisha is being established in two modules of 3 million tonnes each and would roll out high-end flat products. "We have already started commissioning some of the facilities. So over the next few months one by one all the facilities will get commissioned. Our guidance has been next to this financial year so we stick by the guidance," Tata Steel Managing Director T V Narendran told PTI. Narendran said so far the company has spent "about Rs. 22,000 crore" on its greenfield project, which is aligned to 'Make in India' initiative of the government. The first phase of the facility to be set up at a total investment of Rs. 25,000 crore saw commencement of coke production from its coke ovens last month. The project is the largest single location greenfield steel project in India having a rated capacity of 3 million tonne per annum in the first phase. Various units of the plant will start commercial production sequentially. In the first phase, the steel plant will have two Coke Oven battery, each comprising 88 ovens and having a gross coke production capacity of 1.5 MTPA. According to Tata Steel, during the first phase, the blast furnace will have a capacity of 3.3 MTPA of hot metal while the Sinter plant will have a capacity of 4.91 MTPA. The Steel Melting Shop and the Hot Strip Mill will have capacity of 4.1 MTPA and 3.5 MTPA, respectively. After signing of the MoU for the plant with Odisha government, 3,470 acres of land was allotted to the steel company for setting up the integrated project at Jajpur district beside the National Highway 200, about 100 km from all-weather ports at Paradip and Dhamra. Narendran had earlier said, "While the company faced challenges in its operations, especially due to the mining crisis ..., it remained committed to building the greenfield steel plant in Kalinganagar."

$6-billion KG basin project not feasible at current oil prices, ONGC may seek government help.

Increasingly convinced that the oil and gas prices may not rise in a hurry, state-run Oil and Natural Gas Corporation (ONGC) is planning to seek government support for its $6-billion deep water project in the KG basin, without which, a company executive said, the project may not be viable. The company is also reworking its field development plan to trim capital spending and boost output to make the project work at the current oil prices. ONGC is ever more convinced that the project, KG-DWN-98/2 field off the eastern coast, may not be commercially feasible at the current oil prices, which have more than halved in a year to about $45 a barrel. "You need to do some out of the box thinking to make the project viable in this environment," said a senior executive at ONGC, which recently submitted a field development plan (FDP) for the project to the upstream regulator, Directorate General of Hydrocarbons (DGH). The company is now reworking its budget estimates, aiming to bring down oil production cost by $10 from $60 a barrel assumed in the field development plan, the executive said. Similarly, the target is to reduce gas production cost by $1-2 from $6-7 a unit taken in the plan. The price for locallyproduced gas in India is about $4.24 a unit on net calorific value basis while in the international spot market it is $7-8 a unit.

PGCIL builds Rs. 800-cr transmission line linking WB, Bihar.

State-owned Power Grid Corporation of India Ltd. (PGCIL) is building a transmission line between West Bengal and Bihar at a cost of Rs 800 crore that will enhance electricity supply infrastructure. "We are constructing a transmission line between Rajarhat (West Bengal) and Purnia in Bihar. This will help power evacuation for NTPC power projects at Farraka and Kahelgoan," Power Grid GM M M Baidya said here today at BNCCI. "The 450MW capacity transmission line is to be built at an estimated cost of Rs 800 crore and we are aiming to complete it by March 2017," he said. PGCIL said it has 30 acres of land at Rajarhat required for the sub-station. Baidya said that besides building the new line, PGCIL is also carrying out renovation activity of the transmission lines. "We are modernising the Malda-Farraka line with new conductors that will increase the capacity by 1.5 times," he pointed.

ONGC looks to put 2 CBM blocks into production in FY17.

State-owned ONGC will commence production from two coal-bed methane (CBM) blocks � Bokaro and North Karanpura � by as early as the first half of next financial year. This would expand the explorer�s portfolio, which is now restricted to conventional oil and gas. Under its plan, ONGC would spend Rs 2,000-2,500 crore to monetise its CBM assets and reach an output level of 1.58 million metric standard cubic meter per day (mmscmd) over the next three years. The ONGC board is likely to give the go-ahead to its final field development plan for the Bokaro block in its next meeting. Post-approval, it would require two-three months to hire rigs and services to put on ground. The output from the block is likely to hover at 0.5-0.6 mmscmd initially, while the peak output is envisaged at 0.74 mmscmd, which could be achieved in three years, a senior official privy to the project told FE. ONGC would spent about Rs 1,100 crore to bring the Bokaro block into production. Nearly, 70-80 wells are to be drilled in three years in the block. Of this, 25-30 wells would be drilled in the first year. The PSU explorer has planned the projects with 14% return on investment, which is viable at a gas price of $4.6/million British thermal units (mBtu). However, the domestic natural gas in the country would be $4.24/mBtu starting October 1.

Pradhan Mantri Janaushadhi Yojana to be launched by October end: Hansraj Ahir.

Union Minister Hansraj Ahir today said the government planned to launch the 'Pradhan Mantri Janaushadhi Yojana' by October-end and hoped to set up 3,000 generic medicine outlets by the end of current financial year. However, Shiv Sena leader and Maharashtra minister for public health Dr Deepak Sawant said currently the state policy doesn't allow sale of generic medicines at government-run health centres and hospitals. "In this scheme, 504 medicines and 200 medical devices and other items will be sold. Medicines and devices made by public sector undertakings like Hindustan Antibiotics and others will be on sale. "The aim of the scheme is to provide employment to unemployed B Pharm youths, NGOs and charitable trusts," Ahir, MoS for Fertilizers, Petroleum and Pharmaceuticals, said. He clarified that Ayurvedic medicines will not be sold at these generic medicine shops. Unemployed B. Pharm graduates can seek shop space at the government's primary, rural health centres and district hospitals, he added. Senior Sena leader and Maharashtra industries minister Subhash Desai through his Prabhodhan Sanstha has been selling generic medicines at lower rates in suburban Goregaon. Ahir said Desai had sought permission to sell generic medicines through mobile vans too. But the state health minister Sawant later said if the sale of generic medicines in government-run health centres and hospitals is allowed, the owners might misuse the facility. "If this is allowed then the owners might indulge in malpractices and sell any other products. We have to first come up with a proposal to set up shops or mobile vans selling generic medicines at government-run primary, rural health centres and district hospitals," Sawant said.