projects today feb11

CMYK

©Economic Research India Pvt. Ltd, 2011

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Dear Reader,

According to the latest estimates released by theCSO, Indian economy is expected to clock a growthrate of 8.6 per cent in the fiscal 2010-11. Thegovernment has also re-iterated its intensions tospend USD one trillion on infrastructure during the12th Plan period.

All this augurs well for sectors like cement andmetallurgy. As of March 2010, the total cementmanufacturing capacity of India was 282 million tpa.According to a study by ProjectsToday conducted inJanuary 2011, the total cement manufacturing of Indiais expected to surpass 360 million tpa by 2012 and 400million tpa by 2013. For details please read theCement Profile presented in this issue.

The study further points our that though in the shortterm the cement sector will see demand-supplyimbalances, which might put pressure on the marginsof the cement producers, the long term prospectslook bright. Among the irritants listed by cementmanufacturers the high indirect tax levied by thegovernment not only on the final product but also onthe key raw materials used by the industry figuresprominently.They expect the finance minister to givesome reprieved to the industry in his current year'sbudget.

According to the RBI, in the first nine months of thefiscal 2010-11 credit flow to the services sectorincreased appreciably. In the Manufacturing sector,Engineering, Food, Textiles, and chemicals sectorsreceived good amount of bank loans. Though thistrend augurs well for project investment, RBI's recentdecision to hike the policy rates of repo and reverserepo rates might act as a dampener to the projectpromoter.

Team

ProjectsToday

Macro ReviewEconomy Review . . . . . . . . . . . . . . . . . . .3

Foreign Direct Investment . . . . . . . . . . . . .8

Micro ReviewIndian Investment Abroad . . . . . . . . . . . .9

Policy Development . . . . . . . . . . . . . . . .10

New Projects Review . . . . . . . . . . . . . . .13

Project Tenders Review . . . . . . . . . . . . . .14

Domestic & Overseas Orders . . . . . . . . .16

Sectoral ReviewIndustrial Sector

Food Products . . . . . . . . . . . . . . . . . . . . .17

Textiles . . . . . . . . . . . . . . . . . . . . . . . . . .17

Chemicals . . . . . . . . . . . . . . . . . . . . . . . .17

Drugs, Biotech . . . . . . . . . . . . . . . . . . . .18

Paper . . . . . . . . . . . . . . . . . . . . . . . . . . .18

Non-metallic Mineral Products . . . . . . . .18

Metallurgy . . . . . . . . . . . . . . . . . . . . . . .19

Machinery & Electronics . . . . . . . . . . . . .21

Automobiles . . . . . . . . . . . . . . . . . . . . . .22

Energy Sector

Mineral Fuels . . . . . . . . . . . . . . . . . . . . .23

Petroleum Products . . . . . . . . . . . . . . . . .25

Oil & Gas Pipelines . . . . . . . . . . . . . . . . .26

LNG Storage & Distribution . . . . . . . . . .26

Electricity . . . . . . . . . . . . . . . . . . . . . . . .27

Transportation Services

Roadways . . . . . . . . . . . . . . . . . . . . . . . .35

Railways & Urban Transportation . . . . . .38

Shipping Infrastructure . . . . . . . . . . . . . .41

Aviation Infrastructure . . . . . . . . . . . . . .42

Other Services

Hotels & Restaurants . . . . . . . . . . . . . . .44

Hospitals . . . . . . . . . . . . . . . . . . . . . . . . .46

Tourism & Recreation . . . . . . . . . . . . . . .47

Commercial Complex . . . . . . . . . . . . . . .47

Retail . . . . . . . . . . . . . . . . . . . . . . . . . . .48

Real Estate . . . . . . . . . . . . . . . . . . . . . . .48

IT Parks . . . . . . . . . . . . . . . . . . . . . . . . .50

Special Economic Zone . . . . . . . . . . . . . .50

Water & Waste Management . . . . . . . . .51

Irrigation . . . . . . . . . . . . . . . . . . . . . . . . .51

Special FeatureCement . . . . . . . . . . . . . . . . . . . . . . . . .52

StatisticsProject Investment, FDI, IIP, etc . . . . . . .58

ProjectsToday(Division of Economic Research India Pvt. Ltd.)

Sterling House, 5/7, Sorabji Santuk Lane, Off Dr. Cawasji Hormasji Lane, Marine Lines, Mumbai - 400 002, Tel: (022) 3027 1755 Fax: (022) 3027 1733 E-mail: [email protected], Website: www.projectstoday.com

February 2011

A MONTHLY UPDATE ON PROJECT INVESTMENT

CMYK

Economy Review

3Projects TodayFebruary 2011

Q3 review of monetary policyShort-term policy rates raised by 25 basis points

As was widely expected, RBI raised the short-term

policy rates of repo and reverse repo by 25 basis

points to 6.5 per cent and 5.5 per cent respectively

in the third quarter review of monetary policy

announced on 25 January. This was the seventh rise

since February last that lifted the repo rate by 150

basis points and reverses repo by 225 basis points.

Cash reserve ratio (CRR) and bank rate remain at 6

per cent. Factoring current tight liquidity situation,

the apex bank has decided to extend LAF support to

banks of up to one per cent of their net demand and

time liabilities (NDTL) from 28 January to 8 April,

and also continue to hold the second LAF (SLAF) on

a daily basis till this date. For any shortfall in

maintenance of the SLR arising, while availing this

facility, banks may seek waiver of penal interest

purely as an ad hoc measure.

The projection for GDP growth has been kept

unchanged at 8.5 per cent, but with an upward

bias. On Inflation, RBI expects price pressures on

account of demand-supply imbalances to persist in

respect of some commodities; and considering the

increase that has already occurred and the emerging

domestic and external scenario, the baseline

projection of WPI inflation for March 2011 is

revised upwards to 7 per cent from 5.5 per cent.

The projection for M3 growth has been retained at

17 per cent (the current growth rate being 16.5

percent), and that for non-food credit at 20 per cent

(notwithstanding the current 24.4 per cent y-o-y

expansion). These are only indicative figures and

not projections, the apex bank has emphasised.

Credit expansion in the recent period has been

rather sharp, far outpacing the expansion in

deposits, which is not sustainable. Thus, though RBI

will endeavour to provide liquidity to meet the

productive credit requirements of a growing

economy, at the same time it would like to see that

credit growth moderates to conform broadly to the

indicative projections, in order to prevent any

further build-up of demand side pressures. In fact,

RBI will constantly monitor the credit growth and, if

necessary, it will engage with banks which show an

abnormal incremental credit-deposit ratio. By the

way, credit growth, which was earlier driven by the

infrastructure sector, was becoming increasingly

broad-based across sectors and industries. Credit

flow to the services sector increased significantly for

transport operators, tourism, hotel and restaurant

and commercial real estate, besides retail housing

and personal loans. As regards industry, apart from

infrastructure, increase in credit was significant for

metals, engineering, textiles, food processing and

chemical and chemical products.

The projections as outlined above are stated to be

subject to several risks; the foremost being food

inflation, which has remained at elevated level for

more than two years, notwithstanding the normal

monsoon this year, and the prospect of it spilling

over to the general inflation process is rapidly

becoming a reality. The other risks include relatively

low but persistent price rise in non-food

manufactured products, widening current account

deficit, which is expected to touch unsustainable

level of 3.5 per cent of GDP this fiscal, vulnerability

of capital flows, lack of robustness in fiscal

consolidation that has benefited from one-off

receipts in the current fiscal; and likely overall

uncertainty about economic stability that confront

particularly investors.

In passing, global growth prospects have

improved in recent weeks. The recovery in major

advanced economies, which had weakened during

Q2 of 2010, regained strength in Q3 of 2010.

Real GDP growth in the US, which had moderated

from 3.7 per cent in Q1 of 2010 to 1.7 per cent in

Q2 of 2010, improved to 2.6 per cent in Q3.

Corporate capital spending and retail sales in the

US have improved. While uncertainty persists in

the Euro area and Japan, the baseline outlook for

both is improving. Growth in EMEs has remained

strong, supported largely by domestic demand. In

advanced economies, the earlier fears of deflation

have given way to early signs of inflation. In

EMEs, inflation has accentuated significantly in

the recent period.

Given that the economy growth has moved close to

its pre-crisis trajectory as reflected in the 8.9 per

cent GDP growth during H1, balance of risk has

tilted from growth prospects towards

intensification of inflation. In view of this, the

stance of the present monetary policy is inflation-

centric; intending to contain the spill-over of high

food and fuel inflation into generalised inflation

and anchor inflationary expectations; maintain an

interest rate regime consistent with price, output

and financial stability; and manage liquidity to

ensure that it remains broadly in balance, with

neither a surplus diluting monetary transmission

nor a deficit choking off fund flows.

Economy Review

CMYK

Economy Review


IIP growth rate slides to 2.7 per cent inNovemberIf the 11+ per cent expansion in index of industrial

production in October had gladdened the analysts,

the steep reversal in the feat in November that

recorded only 2.7 per cent rise, the lowest rate over

past 19 months, must have saddened their hearts.

Still, all was not lost. Capital goods production that

surrogates projects investment, maintained double-

digit mount, even while suffering the setback. By

the way, IIP has been in the public eye obviously for

wrong reasons for quite some time. This is because

of firstly highly tentative nature of IIP data under

Quick Estimates, with final numbers under

first/second revisions in past six months resulting in

around 8 basis points upward revision to 9.6 per

cent, and secondly IIP numbers with outdated base

of over a decade and half of 1993-94, are getting

increasingly suspect of their ability to mirror current

conditions.

The rot in IIP during November was caused mainly

by manufacturing that expanded 2.3 per cent, one-

fourth the rate in October, though mining also

decelerated from 6.5 per cent to 6 per cent and

electricity from 8.8 per cent to 4.6 per cent.

Cumulatively, the growth rate in overall IIP slid back

to a single-digit 9.5 per cent, which still mirrored an

improvement over 7.5 per cent during April-

November 2009. Heavy weight manufacturing

grew 10 per cent, but mining (8 per cent) and

electricity (4.5 per cent) grew less.

Among the 17 manufacturing industries, as many as

eight reported lower production in November, the

largest number in recent months, and only two

industries, namely leather & leather products (12.6

per cent) and basic metal and alloy industries (8.6

per cent) improved upon the first seven months

performance. Basic chemicals & chemical products;

rubber, plastic coal & petroleum goods, and food

products recorded y-o-y decline in production

during the month. The increase in production index

of electrical, non-electrical machinery dropped to

5.8 per cent, which pulled down the average rise to

16.8 per cent; and transport equipment & parts

slowed to 15.6 per cent though the average

increase continued to be a scorching 27.3 per cent.

Cement production declined 11.6 per cent during

November, only the second decline in a month and

the sharpest one for over 48 months. The

cumulative production during April-November was

up by 4.1 per cent, one third the pace in the similar

period of 2009-10. Finished steel (carbon)

production increased by 4.4 per cent in November

and 6.9 per cent cumulatively.

Capital goods production expanded 12.6 per cent,

over 21.5 per cent in October and 11 per cent in

November 2009. Cumulatively, the rise in

production index worked out to 22.5 per cent, over

three times the pace in the first eight months of

2009-10. Basic goods increased by 4.5 per cent and

intermediate goods by 2.4 per cent in November,

showing steep declines from the pace of October.

Consumer goods declined for the first time in the

current fiscal, following a steep 6 per cent fall in

consumer non-durables and a drop in the growth

rate to 4.3 per cent, one-seventh the rate in

October and in fact the lowest rate over 18 months.

In terms of some details given out by CSO, items

showing steep declines in November include 'Spun

pipes' [(-) 38.2%], 'Railway/concrete sleeper' [(-)

34.9%] and 'Particle board' [(-) 29.6%] in case of

Intermediate goods,'Rice bran oil' [(-) 57.9%] and

'Hair oil/ayurvedic hair oil' [(-) 42.5%] in case of

Consumer non-durable goods, and 'Agricultural

implements' [(-) 55.6%] and 'Industrial machinery'

[(-) 46.7%] under Capital goods.

The IIP has seen marked deceleration in the growth

rate to 7 per cent average during October-

November, from 9 per cent during July-September

and 12 per cent during April-June. With creeping

escalation in input costs and borrowing rates, the

factory sector is unlikely to show much vigour in the

next four months, where it will also have to contend

a still higher 16 per cent average base year

expansion. As a result, we expect average rise of 8

per cent over the fiscal in the industry, against 10.5

per cent during 2009-10.

Infrastructure PerformanceThe composite production index of six infrastructure

industries, which together comprise 26.7 per cent of

broader index of industrial production (IIP)

increased by 2.5 per cent in November, the lowest

rate over 21 months. The cumulative growth rate

over the first eight months of the ongoing fiscal

worked out to 4.5 per cent (4 per cent).

The infra industries performance is swayed a lot by

the heavyweight electricity that constitutes around

two-fifths in weight in the composite index. Thus,

the November slide reflected mainly the rot in the

growth rate in electricity to 3.3 per cent, from 8.3

per cent in October. The growth rate improved

marginally to 4.3 per cent in December, according

to data from CEA. The power generation and its

availability to end-users has remained a concern, as

with PLF showing practically no improvement,

growth in generation has come from new capacity

only. Thus, during the first nine months of the

CMYK

Economy Review


ongoing fiscal, while generation capacity has gone

up by 6.5 per cent, the generation has increased by

4.5 per cent.

Coal, another primary fuel input, is also recording

pale feat growing at only 0.6 per cent, against 8 per

cent average increase in the preceding two fiscals.

Barring a 4.5 per cent rise in July, the other seven

months have together seen a decline. Crude oil that

runs refineries has increased 17 per cent in

November. More importantly, it was the fifth month

of a double-digit rise, which has come after almost

zero growth over past several years. The

production in Petroleum refineries that drives

petrochemical industries and transportation has

stagnated during the current fiscal, which will imply

that domestic crude has replaced costlier imported

crude to some extent.

In the category of core industries, which support

construction and project investment, cement

production, declined 17 per cent during November,

against 17 per cent rise in the preceding month,

which brought down the average growth over the

period to 4.1 per cent, nearly one-third the rate a

year ago. This is perplexing as dispatches have

matched production and marketing is no problem

for the industry, given demand for infra build-up as

also upkeep. Finished steel (carbon) production was

up 4.4 per cent in November, one-third the rate in

October that witnessed sharp upward revision from

6.2 per cent earlier. In fact, the growth rates in steel

production have witnessed sharp upward revisions

in the current fiscal, which have lifted the average

rate during April-October to 7.2 per cent, from 4.2

per cent under provisional estimates.

The country's 13 major ports handled approximately

51 million tones of sea freight during December,

showing around 10.3 per cent growth over

November. The feat reflected reversing the 5.5 per

cent decline in volume in November over October,

the month that had seen workload go up by a sharp

9.7 per cent over September. Cumulatively, the

growth rate in freight at the ports improved to 1.1

per cent from 0.83 per cent till November, though it

was only one-fifth the pace in the similar period of

2009-10.

Railway revenue earnings went up by 7.73 per cent

during April-December 2010 to `67,881 crore. The

total goods earnings have gone up from `42,522

crore to `45,290 crore, showing an increase of 6.51

per cent. The total passenger revenue earnings

during the first nine months of the financial year

were `19,205 crore (+9.76 per cent). The revenue

earnings from other coaching amounted to `1890

crore (+10.94 per cent).

Non-food credit shoots upNon-food credit by banks shot up by `1.2 trillion

during the fortnight ended 31 December, the

sharpest increase in a fortnight during the current

fiscal. The cumulative increase in non-food credit

during the first nine months of the current fiscal

worked out to `5.01 trillion, which was twice of

`2.49 trillion during the corresponding period of

2009-10. Bank deposits increased `4.79 trillion over

this period; which when viewed against `5.18

trillion rise in non-food credit, `0.65 trillion in SLR

investment and `0.315 trillion in cash balances with

RBI, has set the background for the liquidity crunch

in the banking sector.

Broad money (M3) growth retarded to 16.5 per

cent annually by 31 December, from 17.9 per cent

a year ago.

Interest ratesWeighted call money rates in call money market

ranged 6.09-6.73 per cent in the first 24 days of

January 2011, against 5.65-6.97 per cent in

December, and 2.71-3.37 per cent in this month a

year ago.

The cut-off rate for 91 days T-bills worked out to

7.14 per cent in its auction on 12 January, whereas

that on 364 days T-bills worked out to 7.50 per

cent. The implicit discount rates on commercial

papers floated in the second half of January ranged

8-12.10 per cent, against 8-16 per cent in the first

fortnight. The longer term GoI securities were

traded at 8.1-8.56 per cent YTM in the secondary

Weighted Call Money Rates (%):

Jan 2010-11

Jan-10 2.71-3.37

Feb-10 2.56-3.28

Mar-10 2.53-4.29

Apr-10 2.80-3.86

May-10 3.23-5.58

Jun-10 4.14-5.58

Jul-10 4.43-5.88

Aug-10 4.39-5.84

Sep-10 3.79-7.04

Oct-10 5.54-7.67

Nov-10 6.16-7.11

Dec-10 5.65-6.97

January 2011 (up to 24 Jan) 6.09-6.73

CMYK

Economy Review


market in the week ended 14 January.

Base rates of major banks ranged 8-9 per cent by 7

January. Deposit rates of more than one year

maturity were at 7-8.75 per cent (6-7.5 per cent a

year ago).

`was traded at 45.30/31 per US$ on 14 January.

Rupee appreciated against all major currencies,

barring Yen against which it showed 9 per cent

depreciation.

Central Govt financeThe gross fiscal deficit of Central government at

`1.87 trillion during April-November 2010 was 39

per cent lower than that in the similar period of

2009-10 and it accounted for 49 per cent of the

budgeted amount for the fiscal, much lower

compared to 76 per cent in the preceding fiscal. The

performance was helped by a massive non-tax

revenue receipt of over `1 trillion from auctions of

3G spectrum and BWA licences that yielded a huge

surplus in June, as also by noticeable improvement

in deficits during September-November, due to

lower disbursements. Revenue deficit of `1.40

trillion was a little more than half that a year ago.

Tax receipt has been running markedly higher in the

current fiscal, with collection working out 31 per

cent more over April-November. Corporate tax was

up 20 per cent and personal income tax 12 per cent;

whilst customs duty shot up 64 per cent and excise

duty 37 per cent. Service tax receipt was up by 19

per cent. Disbursements ran lower for the third

month in November, which brought down the

cumulative rise to 11 per cent till No vember, from

30 per cent till August. Plan account expenses rose

21 per cent; plan capex was up by 27 per cent and

revenue disbursement that include grants for capital

assets creation by 20 per cent. Non-plan spending

expanded at a modest 7 per cent.

Foreign TradeThe country's exports increased 27 per cent to $140

billion during April-November. Imports increased by

24 per cent to $222 billion. While oil imports

increased by 21 per cent to $65 billion, non-oil

import rose 25 per cent to $157 billion, trade deficit

worked out to $ 82 billion ($ 68 billion).

Export of engineering goods increased 46 per cent

to $23 billion during H1, while at $ 23 billion

machinery import was 1 per cent lower.

Balance of PaymentsExports and imports on payments basis, against

invoice basis as compiled by DGCI&S decelerated

during July-September as in the preceding quarter.

Thus, trade deficit in merchandise transactions

worsened by an identical 20 per cent for the second

straight quarter. Support from invisibles comprising

incomes from services, workers' remittances, etc

remained subdued; as a result of which current

account deficit (CAD) in BoP compilations by RBI

indicated 72 per cent y-o-y shoot up to $15.8 billion

during Q2. The feat also indicated deterioration

from $9.2 billion CAD in the preceding quarter. In

fact, the CAD for the quarter was the highest

quarterly amount so far in the new millennium. The

deficit in current account comprising broadly export

and import of goods and services, as a ratio of GDP

at market prices darted to 4.1 per cent from 3.2 per

cent in the preceding quarter, and 3 per cent a year

ago. CAD mirrors import of equivalent amount of

foreign capital in the form of goods and services

that supplements domestic savings available to

finance capital formation in the country. The

aggregate net service income improved to $10.5

billion, from $8.9 billion in the preceding quarter

and $7.7 billion in the second quarter of 2009-10.

Software export continued to be strong at $12+

billion, and non-software business incomes caused a

lower draft of $ 2 billion, against $3.9 billion in the

preceding quarter or the quarter a year ago. Private

transfers, broadly workers' remittances, were a tad

lower at $13 billion, and investment income

witnessed a greater net outgo of $ 3.9 billion,

relative to $1 billion in the preceding quarter and

$2.6 billion during July-September 2009.

Capital inflows assessed at $20.5 billion during July-

September 2010, comprised almost entirely of

volatile FII investment in bourses ($18.8 billion),

which showed 100 per cent shoot-up over the

preceding quarter, and were five times that a year

ago. More permanent FDI ($2.5 billion) was at the

same time one-third that in the preceding quarter.

FDI into the country declined from $10.9 billion in

Q1 to $6.7 billion in Q2, whereas FDI overseas by

India Inc went up from $3.4 billion to $4.2 billion

between these periods. External commercial

borrowing at $3.7 billion was three times the

amount in Q1. Short term trade credit was $2.6

billion ($1.2 billion), though it was less than $4.2

billion in Q2 in 2009-10. Overall, forex reserves due

to BoP transactions, disregarding valuation effects

of currencies, increased by $3.3 billion, nearly one-

third of $9.4 billion in Q1, or 10 per cent less than

$3.7 billion in July-September 2009.

Trends over H1Trade deficit in merchandise escalated 20 per cent to

$66.9 billion in H1 due to faster rise in imports

CMYK

Economy Review


compared to exports. Worryingly, services, private

transfers and investment income comprising

invisibles, yielded a lower $39.1 billion (-8 per cent),

which resulted in CAD doubling to $27.9 billion.

The CAD as a ratio of GDP at market prices went up

from 2.4 per cent to 3.9 per cent, which is a record

high level in recent years. Whilst service income was

slightly better, investment income, i.e. repatriation

of profits and dividend, saw more drain and

workers' remittances brought in less.

Capital inflows were assessed at $34.9 billion (+53

per cent). The net addition to reserves on account of

BoP transactions in current and capital accounts was

lower at $7 billion, as compared with $9.5 billion

during H1 of 2009-10. Whereas FDI was less than

half of that a year ago, fickle portfolio investment

increased from $18 billion to $23.8 billion. FII

investment shot up 50 per cent to $22 billion. FDI

into the country totaled $12.5 billion, whereas FDI

overseas was placed at $7.2 billion. External

commercial borrowing amounted to $6 billion ($0.7

billion) and short term trade credit $6.7 billion

(negligible decline).

Valuation of cumulative holding of forex assets by

RBI indicated $6.8 billion more dollars, which is only

around one-third of $19.8 billion rise in H1 of 2009-

10. Inclusive of BoP transactions and this notional

valuation increase, forex assets with RBI showed a

rise of $13.8 billion in H1, less than a half of $29.3

billion year ago. Valuation gain reflects the

depreciation of the US dollar against the major

currencies in RBI's stock of forex reserves, as the

apex bank keeps reserves denominated in US$.

External debtThe country's external debt was

placed at $296 billion at the end of

September 2010, against $262

billion at the end of March, and

$230 billion a year ago. The debt

comprised 54 per cent contracted

in USD, 19 per cent in Indian

rupees and the balance in Euro,

Yen, SDR, etc.

PricesThe wholesale price index (WPI)-

based inflation worked out to 8.43

per cent in December. The WPI

(with 2004-05 as the base year) of

primary articles was 16 per cent

higher, fuel & power 11 per cent

higher and manufactured products

only 4.5 per cent higher.

CPI for urban non-manual

employees and industrial worker

ran 8.3-8.410.4 per cent higher in November.

ERIL Index of Cost of Project Inputs was running 4.9

per cent higher in November.

Balance of Payment during H1 (US $ billion)

2009-10 2010-11

Export 82.6 110.5

Import 138.4 177.5

Trade account -55.9 -66.9

Invisibles 42.5 39.1

Current Account -13.3 -27.9

Capital Account 22.8 34.9

Foreign Investment (i+ii) 30.3 29.1

(i) Foreign Direct Investment 12.3 5.3

(ii) Portfolio Investment 18 23.8

External Commercial Borrowings 0.7 6

Banking Capital 1 0.8

Short-Term Trade Credit -0.05 6.7

External Assistance 1 3

Other Items in Capital Account -10.2 -10.7

Valuation Change 19.8 6.8

Total 29.3 13.8

CMYK

Foreign Direct Investment


FIPB Clearances:In January 2011, the Union Ministry of Finance on

recommendations of the FIPB, ratified 19 FDI

proposals amounting to `4,340.77 crore.

Major chunk of the proposed investment through

FDI came from Tata Steels' proposal for issue of

warrants worth `1,100 crore as part of its fund

mobilisation programme.

Among other proposals, Mumbai based Future

Ventures India received approval to allot shares

worth `300 crore to foreign institutional investors

and non-resident Indians under its portfolio

investment scheme while Karur Vysya Bank has

been permitted to issue partly paid-up shares worth

`107.50 crore.

Also, Japan based Yorozu Corporation received

government nod for setting up a JV company for

the production of various automotive parts with its

contribution of `140 crore. EADS Deutschland

GmbH and LT have been permitted to bring in

foreign equity up to 26 per cent in a proposed JV to

undertake manufacturing, distribution and

marketing of defence-related products such as

electronic warfare and military avionics.

Wireless Broadband Business Services (Delhi) was

also given a go-ahead for inducting foreign equity

worth `362.78 crore to carry out Internet and

broadband services.

The government deferred its decision on 16 FDI

proposals and rejected two. The deferred proposals

include those of Reliance Broadcast Network and

Essar Capital Holding. Among the rejected

proposals was that of B4U Television Network for

induction of foreign equity to carry out business of

up-linking a non-news and current affairs channel.

Policy Developments:Government to relax FDI in agriculture The Union Ministry of Agriculture and the

Department of Land Resources under the Ministry

of Rural Development have given in-principle

approval to a proposal of the DIPP to invite FDI for

developing non-arable land through better

technology into fertile and cultivable land.

At present, FDI in agriculture is not permissible,

barring allied sectors like horticulture, floriculture,

pisciculture, animal husbandry, aquaculture and

development of seeds, vegetables and mushrooms

under controlled conditions.

The proposal mooted by DIPP aims at handling the

problem of limited arable land and food shortage in

the country. Under this proposal to be classified as

investment in land and agriculture, a foreign

company could invest through an Indian company

under a JV or technical tie-up for imparting the

necessary technology for converting waste land into

fertile land. The investments could be in drylands

like deserts or marshy land or salty and barren land.

The Department of Agriculture has made following

suggestions to DIPP.

� The nature of technology to be used, its proven

track record in other countries and time-line of

the project will be essential before drawing up

the final blueprint for the proposal.

� In case of land owned by a farmer or individual

or an entity, he or it should be treated as a

stakeholder in the final proposal or venture.

� To examine the ownership issues, as to whether

any public sector undertaking, through the

Department of Land Resources or agriculture or

relevant state government, may be made a

partner in the project to take care of public

welfare.

� The DIPP before according approval should look

into the form of FDI. Whether it is through a

new company or existing company and whether

the operation of the existing company

supplements agriculture is to be looked into

before inviting FDI.

The Department of Land Resources will be mapping

such non-fertile land, which could be given on lease

to a company for inviting FDI.

Foreign Direct Investment

CMYK

Indian Investment Abroad


BHEL to set up plant in IndonesiaBHEL is mulling to set up an assembling facility in

Indonesia.

The company is in the advanced stage of

negotiations with the Indonesia Government and

has proposed setting up an assembly facility with

knocked down materials supplied from India.

However, the proportions of investment and

location details have not been finalised.

Meanwhile, global companies like Sumitomo of

Japan, Vallourec & Mannesman of France and

Wyman Gordon of the US have expressed interest

to form JVs for making boiler tubes in India. Also,

BHEL has been asked to acquire a participatory

interest in the range of 26 per cent in the import

substitution projects.

Tata's SA unit to be ready by AprilTata Motors' assembly unit in South Africa is likely to

be completed by April 2011.

The initial capacity of the facility is expected to be

about 3,000-4,000 units of medium and small-sized

trucks. The company presently exports around

3,000 trucks to South Africa annually.

Presently, Tata has truck assembly units in Thailand

and Bangladesh.

R-Power plans investment in IndonesiaReliance Power (R-Power) proposes to invest $5

billion (around `22,000 crore) in two projects, one

each in South Sumatra and Jambi provinces of

Indonesia. The project in South Sumatra will involve

development of a two billion tonne coal mine, a

200-km railway line, a port and a 2,000-MW power

project at a cost of $3.5 billion (approx `15,925

crore). The project in Jambi consists of another coal

mining unit, along with a port, railway line and a

small power plant. It will cost $1.5 billion (approx

`6,825 crore) without the power project.

Reliance Coal Resources, a subsidiary of R-Power,

will sign two MoUs with representatives of the

governments of both the provinces in New Delhi on

25 January 2011.

ICVL to bid for coal block in MongoliaInternational Coal Ventures (ICVL) is planning to bid

for developing coal blocks in Tavan Tolgoi mining

deposit in Mongolia.

The mine has an estimated coking and thermal coal

reserves of 6.4 billion tonne. About 70 per cent of

the block is likely to be coking coal. ICVL is expected

to bid for a share in the mine's western block with

reserves of one billion tonne.

Bidders from Japan and South Korea are also keen in

developing the Tavan Tolgoi deposit.

Jindal Poly Films secures coal block inMozambiqueJindal Resources (Mozambique), a subsidiary of

Jindal Poly Films, on 7 January 2010, acquired a coal

block in Mozambique.

The company has been allotted block-2 situated in

Moatize district, Tete Province. The licence covers

an area of 1,480 ha. The said block contains about

150 million tonne of coking/thermal coal resources.

Jindal Metal and Mining, another subsidiary of

Jindal Poly Films has signed an agreement with a

Mozambique based entrepreneur for prospecting,

exploration and mining of coal block with estimated

300 million tonne of resources.

RIL, Atlas Energy to explore new shoresReliance Industries (RIL) along with US based Atlas

Energy is looking at options for expanding their

shale gas JV to new places including Canada and

Australia.

The company is likely to explore other shale gas

areas in Europe, Asia, within the US or in Canada

and Australia. However, it is likely to look at new

opportunities once the existing project stabilises.

In April 2010, RIL had announced its Marcellus

Shale JV with Atlas Energy of Pittsburgh,

Pennsylvania. RIL had acquired 40 per cent interest

in Atlas' core Marcellus Shale acreage.

NTPC solar power plants in MaldivesNTPC is keen to set up solar power projects in

Maldives.

Currently, the company is conducting the feasibility

study to explore the potential of Maldives for

setting up solar power projects. The final report is

expected by April 2011. However, NTPC did not

disclose the investment details of the project.

Meanwhile, NTPC plans to add 105 MW of

electricity by setting up four to five solar power

projects in India by 2013. These solar power

plants are to come up at its existing plants at

Anta (Rajasthan), Dadri (Uttar Pradesh),

Ramagundam (Andhra Pradesh), Sipat and Korba

(Chhattisgarh).

Tata, Riversdale to own Benga powerplant

Indian Investment Abroad

Defence production policy unveiledThe Union Government on 13 January 2011

released the defence production policy.

The policy envisages creation of an eco-system,

which is conducive for private defence industry in

the country particularly for the small and marginal

enterprises. The government will give preference to

indigenous design development and manufacture of

defence equipment.

The policy will design and integrate platform

systems within the country in line with the sector's

long-term integrate perspective plan. All viable

approaches such as formation of consortium, JVs

and PPPs will be suitably explored.

The 'make' category of the defence procurement

procedure (DPP) 2011 will be simplified in such a

manner that it enables both public and private

industry to meet defence requirement as fast as

possible.

Further, the government plans to set up a separate

fund to provide for necessary resources to public

and private sectors including the small and medium

enterprises to support innovation and research and

development activities to enhance the country's

cutting edge technologies in defence.

Haryana Industrial Policy 2011Bhupinder Singh Hooda, Chief Minister of Haryana

on 30 December 2010 approved "Industrial &

Investment Policy-2011" of the state.

The highlights of the policy include the following:

� The policy endeavours to encourage

development of the hinterland areas of the state.

Using a Development Block as a defining unit,

the entire state has been divided into (A)

industrially developed blocks, (B) areas with

intermediate development and (C) industrially

backward areas.

� The Agro & Food Processing sector has been

accorded a special focus through a number of

incentives - viz reduction in Stamp Duty and

CLU (change of land use) charges for the units

CMYK

Indian Investment Abroad / Policy Development


Tata Steel and JV partner Riversdale Mining have

reached an agreement allowing them to acquire

Benga power plant project in Mozambique.

The JV has acquired 50 per cent option in the facility

from Elgas SARL for an undisclosed sum.

The $1 billion (approx `4,500 crore) coal based

power plant is expected to produce 500-600 MW in

its Phase I. While Riversdale is to hold 65 per cent

interest in the plant, Tata will have the remaining 35

percent. The power plant will source the coal from

the Benga Coal Project which is currently under

development.

Adani Group to set up rail, port projectin IndonesiaThe Adani Group on 25 January 2011 signed an

MoU with the regional government of Sumatra

Selatan, Indonesia, and PT Bukit Asam Tbk to

develop rail and port project in the country.

The project will involve construction of a 250-km of

railway-line and port infrastructure needed for

transportation and ship loading of up to 60 million

tpa of coal. It is estimated to entail an investment of

$1.65 billion (approx `7,425 crore). The rail line will

help connect Tanjung Enim, the coal mining area to

Tanjung Carat, where Adani is setting up a port for

evacuating the coal.

PT Bukit Asam Tbk, will sell 60 per cent of the its

coal from Tanjung Enim area to Adani at a

government notified price and balance coal will be

used as contract carriage for Bukit Asam.

The projects will be executed by PT Adani Global, a

part of Adani Enterprises.

GVK to develop airports in Bali, JavaGVK Power and Infrastructure (GVKPIL), on 25

January 2011 signed two agreements with the

Government of Indonesia to develop greenfield

international airports in North Bali and

Yogyakarta, Java.

The agreement for the Bali airport is a three-way

agreement between Badan Koordinasi Penanaman

Modal (BKPM - a board set up by the Government

of Indonesia for the facilitation of domestic and

foreign investment), PT Pembangunan Bali

Mandiri (a SPV for airport development) and

GVKPIL.

The agreement for the Java airport is an agreement

between Angkasa Pura I (Indonesia Government-

owned airport operations and management

company), BKPM and GVKPIL.

The scope of work includes planning, design and

development, operations and management of the

airports along with all associated infrastructure, land

and commercial development.

Policy Development

CMYK

Policy Development


established in the backward areas, exemption

of market fee on fruits and vegetables, among

others. These measures are expected to lead to

promotion of industry in this sector and help

the farmers by way of increased demand and

better price realisation for their produce and

further catalyse localisation of the agricultural

output and economic development activities in

such areas

� The policy focuses on development of industrial

estates in backward areas with the involvement

of private sector under the PPP model. This

measure is expected to open new areas to

investment

� The existing Land Acquisition Intervention Policy

of May 2006 has been modified. The existing

policy provided for acquisition of land to the

extent of 25 per cent in the NCR areas and up to

50 per cent in rest of the areas. Under the new

norms, the state government will facilitate

acquisition of land for the private developers

mainly for the purposes of enabling contiguity of

project areas. The scale of intervention has been

reduced to the level of 10 per cent of the project

land in Category 'A' blocks, up to 20 per cent in

category 'B' blocks and up to 30 per cent in the

category 'C' blocks

� Apart from state agencies like Haryana State

Industrial and Infrastructure Development

Corporation (HSIIDC), the state will also

involve the private sector in development of

industrial infrastructure in the backward areas

under the PPP model. This will help in taking

development/ investment opportunities to new

boundaries

� The policy also provides for transfer of

management of industrial estates developed

earlier by Haryana Urban Development

Authority and the Industries Department to

the HSIIDC to ensure up-gradation and

maintenance of infrastructure facilities and

services.

� Focused Sectors for investment include Agro-

based, Food Processing and Allied Industry,

Automobile and Automotive components,

Education and Skill Development, Electronics,

Information and Communication Technology,

Footwear and Accessories, Handloom, Hosiery,

Textile and Garments Manufacturing, Health and

Healthcare, Pharmaceutical Industry, Research

and Development and Frontier Technologies,

Transport Network and Services, Waste

Processing and recycling Industry

Coastal Regulation Zone notification2011The Union MoEF on 7 January 2011 notified the

Coastal Regulation Zone notification, 2011. The

new notification replaces CRZ 1991.

In the latest notification the 'no development zone'

is being reduced from 200 mtrs from the high-tide

line to 100 mtrs only to meet the increased

demands of housing of fishing and other

traditional coastal communities.

The notification allows slum projects to get a floor

space index (FSI) of 2.5 to four. Earlier, the FSI was

restricted between 1.25 and 1.6. The state

government will have to partner with builders in

redeveloping the slums and hold a minimum stake

of 51 per cent.

The builders redeveloping the structures under

CRZ II will get an FSI of between 2.5 and three,

instead of an FSI of two that was allowed by

CRZ 1991.

Under the new norms, projects above two lakh sq

ft (built-up area) will need the Union MoEF's

sanction. But before that, the state Coastal Zone

Management Authority (CZMA) will have to

evaluate the projects and recommend them to the

Union Government.

Under the new coastal regulations, open spaces,

parks, gardens and playgrounds indicated in

development plans within CRZ II shall be

categorised 'no-development zones' . No

residential or commercial use of such open spaces

will be allowed. However, an FSI of up to 15 per

cent will be permitted for the construction of

civic amenities, stadiums and gymnasiums meant

for recreational or sports-related activities on

such plots.

The new CRZ has special provision for Goa, Kerala,

Greater Mumbai and critically vulnerable coastal

areas such as Karwar and Kundapur in Karnataka,

Vembanad in Kerala, Coringa, East Godavari and

Krishna Delta in Andhra Pradesh and Gulf of

Mannar in Tamil Nadu among others. Besides, a

separate draft island protection zone notification

has been issued for protection of islands of

Andaman and Nicobar and Lakshadweep.

The ministry is likely to issue directives to the

Coastal Zone Management Authority in the

various states and Union Territories to identify all

CRZ violations within the next four months and

initiate necessary action within four months

thereafter.

Also, a River Regulation Zone is likely to be set up

to ensure that river beds are not destroyed by

construction activity.

CCI okays extension of coal minesconservation schemesThe Cabinet Committee on Infrastructure (CCI) on

13 January 2011, approved the extension of

schemes aimed at coal mines' conservation and

developing transportation of infrastructure in

coalfield areas for an undisclosed period.

Around `1,000 crore have been earmarked in the

current Plan period ending 2012 towards the

schemes. This includes an outlay of `690.75 crore

for conservation and safety in coal mines and

`395.58 crore for development of transportation.

Maritime Agenda 2020The Union Government on 12 January 2011

unveiled Maritime Agenda 2020.

The new plan replaces the current National

Maritime Development Project (NMDP). The

perspective agenda entails an investment of `5 lakh

crore by 2020 to take the ports capacity to 3,200

million tonne. Out of the `5 lakh crore investments

proposed in the sector, `3 lakh crore will be in the

port sector, while the remaining `2 lakh crore will be

pumped in the Shipping sector.

The present `1.39 lakh crore NMDP plans, which

were to expire on 31 March 2012, will be replaced

by the new agenda. Of the 276 projects identified

under the NMDP through PPP mode, the

government plans to award 21 projects worth

`13,952 crore projects in the current fiscal. Six such

projects to augment the capacity of 13 major ports

have already been awarded.

The government would set up two more major

ports in the country - one each on the East and West

coast, in addition to the existing 13 Major ports.

Besides, four major ports - two on the east coast -

Visakhapatnam and Chennai and two on the West

coast - Jawaharlal Nehru Port Trust and Cochin port

would be converted into major hubs.

New telecom policy soonThe Union Government is mulling to launch a new

telecom policy framework - National Telecom Policy

2011 - soon.

The new policy aims at introducing the slew of

measures that the government will introduce to

bring in the much needed transparency into the

telecom sector. In this regard, the government is

likely to hold discussions with the key stakeholders

to evolve a clear and transparent regime covering

licensing, spectrum allocation, telecom tariffs,

pricing, linkage with rollout performance, flexibility

within licences, spectrum sharing, spectrum trading,

mobile virtual network operators, unlicensed bands

and mergers and acquisitions in a technology-

agnostic environment.

It has been 11 years since the National Telecom

Policy was introduced in 1999 and many changes

have taken place thereafter.

SEZ policy of Chhattisgarh unveiledThe Chhattisgarh Government has unveiled the SEZ

Policy 2010 in a bid to widen its investment horizon

and attract more investors in different sectors. The

state cleared the policy on 6 January 2011 proposed

by the industry department.

Under the policy, exemption will be given to the

developers, industrial units and other establishments

within the zone from local taxes and levies.

However, they would have to pay the mandi tax

and land diversion fee.

The state government approved proposals to

develop two SEZs in Raigarh. The two SEZs will

house units related to Gems and Jewellery, and

information technology. The state intends to

develop solar energy parts SEZ as well in

Rajnandgaon district.

The department of industry and commerce had

been made the nodal department to facilitate the

development of SEZs under the new policy. A single

window system will be in place to clear all official

formalities from a single desk. A high-level

committee had also been formed to monitor and

supervise the development of SEZs.

Government to formulate biddingnorms for coal blocks The Union Government is likely to finalise the norms

for the proposed competitive bidding of coal blocks

soon. Currently, the Union Ministry of Coal is giving

final touches to the regulations. The bidding process

for new coal blocks, currently being identified, may

begin from April 2011. In August 2010, the Mines

and Minerals Development and Regulation

Amendment Bill-2010 was passed which paved the

way for introduction of auction through competitive

bidding for allocation of coal blocks for private

companies for captive use. Hitherto, the coal block

allocation was done by a Union Government

screening panel that also included representatives

from coal bearing states.

The MoC is likely to request the proposed Group of

Ministers (GoM), being set up to resolve the

environment related issues affecting the coal sector,

to come up with an early solution.

The government has agreed to set up a GoM to

frame guidelines for mining in restricted forest areas

or "no-go" areas.

CMYK

Policy Development


CMYK

New Projects Review


Absence of big ticket projects in the

Manufacturing and Electrical sectors, the first

month of 2011 opened with 683 startups

worth `14,528 crore. The preceding month

(December 2010) had seen 932 new projects worth

`42,396 crore being announced. In fact, the

`14,528-crore aggregate investments accrued in

the month of January 2011 were the lowest fresh

investments seen in a month in the last two years.

Despite a sharp fall in total outlay, the

Manufacturing sector with `8,134 crore of fresh

investment accounted for 56 per cent of the total

investment mooted in January. Nearly half of the

investment proposed in this sector came from two

projects announced in the Cement and Steel

sectors.

The Aditya Birla group company,

UltraTech Cement, proposes to set up a

three million tpa cement unit in

Jhunjhunu district of Rajasthan at a cost

of `2,000 crore.

One of the largest private sector steel

producer, JSW Steel, intends to set up a

`4,025-crore cold rolling mill with a

capacity of 2.3 million tpa at Vijayanagar

in Bellary district of Karnataka.

The month-on-month fall was steep in

the Electricity sector. As against 59

startups worth `22,090 crore announced

in December 2010, only 28 new projects

at an investment of `222 crore were

announced in the first month of this year.

The uncertainty prevailing over the

clearance of 203 coal mining sites might

be one of the reasons for the slowdown

on project announcements in this sector.

Though three large projects were

announced in this sector, their cost has

not yet been finalised. The projects were

� Astarc Power's 1,320 MW coal based

power unit at Pandhartal in Nagpur

district, Maharashtra.

� Tehri Hydro Development Corporation India's

1,320 MW Khurja coal based power unit in

Bulandshahar district of Uttar Pradesh.

� Rajasthan Sun Technique Energy's (RSTEPL) 100

MW solar based power unit in Jaisalmer district

of Rajasthan. RSTEPL is a subsidiary of Reliance

Power.

The Services and Utilities Sector witnessed 523

startups with an aggregate investment of `5,998

crore. The number of startups proposed in this

sector fell by about 17 per cent when compared

with the December 2010 figures.

Of the 189 new roadways projects announced in

January 2011, 60 were by the state government of

Jharkhand. These projects intend to upgrade the

existing roadways with outlays ranging between

`1.5 crore and `5 crore.

Of the 25 new water supply schemes announced by

various government agencies, the `323.44-crore

Dhanbad water supply scheme taken up by the

Jharkhand Government and the `204-crore Basni

water supply scheme project of the Rajasthan

Government were noteworthy.

In the Hotels sector, IHHR Hospitality announced

three five-star hotel projects at Jaipur in Rajasthan,

and at Nagpur and Navi Mumbai in Maharashtra. All

the three hotels will have an inventory of 200 rooms

each. Sabari Inn is developing three four-star hotels

- one each in Bengaluru, Hyderabad and Pune.

The National Rural Health Mission, Assam, has

firmed up plans to set up 13 hospital projects

which include 10 hospitals and three community

health centres.

No big ticket startups in January 2011

Sectorwise Project Investment - Jan 2011

Sectors Projects `̀Crore Share (%)

Manufacturing 116 8,134 55.99

Mining 11 22 0.15

Electricity 28 222 1.52

Services & Utilities 523 5,998 41.28

Irrigation 5 154 1.06

All Sectors 683 14,528 100.00

The number of project tenders floated in

January 2011 declined by 8.4 per cent on M-

o-M basis. As against 3,997 tenders worth

`20,769 crore floated in December 2010, 3,660

project tenders worth `16,244 crore were floated in

January 2011. Of this, 2,323 tenders worth `11,045

crore were by State Government agencies; 1,276

tenders worth `4,928 crore were by Central

Government agencies and the balance 61 were by

Private companies.

The most notable tender of the month was floated

by Maharashtra State Road Development

Corporation (MSRDC). On 28 January 2011,

MSRDC invited global bids from consultants for

providing consultancy services for construction of

elevated corridor on Western Express Highway

(WEH) from Bandra to Dahisar in Mumbai.

Another noteworthy project tender published was

by NHAI. On 28 January 2011, the company invited

bids for four-laning of Lucknow-Raebareli section

from km 12.700 to km 82.700 of NH-24 B on BOT

(Toll) basis under NHDP-IV B in the state of Uttar

Pradesh. The cost of the highway is estimated at

`760 crore.

Roadways topped the sector-wise list with 1,083

project tenders worth `6,100 crore. Community

Services, Railways and Thermal Power followed the

list with 550 tenders worth `1,540 crore, 314

tenders worth `983 crore and 280 tenders worth

`339 crore, respectively.

Among the social infrastructure sector, about 187

tenders were floated for implementing various

water supply schemes and 40 tenders were invited

for setting up water and effluent treatment plants.

The most notable tender in this sector was floated

by Tamil Nadu Water Supply & Drainage Board. On

02 January 2011, the board invited bids in three

packages for setting up a combined water supply

scheme of Vellore Corporation. The aggregate cost

of the three packages was `950 crore.

Another notable tender within the same sector was

floated by Ulhasnagar Municipal Corporation

(UMC), which on 21 January 2011, invited bids for

development of independent water source,

augmentation of existing water supply scheme up

to service reservoirs and operation and maintenance

of the same on BOT basis in Thane district of

Maharashtra.

The Hospital sector saw 71 project tenders being

floated worth `618 crore. Of the two notable

tenders floated in this sector, the first one was by

Lady Hardinge Medical College & Associated

Hospitals (LHMC). On 28 January 2011, LHMC

invited bids for construction of hospital buildings,

academic block and students' hostels, residential

units and RMO accommodation with associated

services under Phase-I Comprehensive

Redevelopment Plan for Lady Hardinge Medical

College & Associated Hospitals, New Delhi. The

work cost was estimated at `460 crore.

The second notable tender was floated by

CMYK

Project Tenders Review


MSRDC seeks consultants for Bandra-Dahisar Elevated Corridor on WEH

3,660 project tenders floated in January 2011

Top 10 Sectors in Project Tendering

Sector `̀Crore Tenders Share %

Roadways 6,100 1,083 29.59

Community Services 1,540 550 15.03

Railways 983 314 8.58

Thermal Power 339 280 7.65

Power Distribution 378 212 5.79

Water Supply 1,918 187 5.11

Irrigation 967 161 4.40

Petroleum Products 0 87 2.38

Hospitals 618 71 1.94

Iron & Steel 0 68 1.86

All Sectors 16,244 3,660 100.00

Top 10 States in Project Tendering

State `̀Crore Tenders Share %

Maharashtra 1,944 642 17.54

Chhattisgarh 555 306 8.36

Jharkhand 825 268 7.32

Andhra Pradesh 602 258 7.05

Karnataka 1,382 253 6.91

Orissa 664 208 5.68

Uttar Pradesh 1,278 203 5.55

Madhya Pradesh 492 178 4.86

Tamil Nadu 2,052 164 4.48

West Bengal 857 155 4.23

All India 16,244 3,660 100.00

CMYK

Project Tenders Review


Department of Medical Education & Training,

Government of Uttar Pradesh. On 16 January 2011,

it invited RfQs for construction of Medical College

& Hospital at Chakrapanpur, Banda Medical

College, Banda, and Safai Institute of Para-Medical

Science, Etawah, in Uttar Pradesh.

Among the states, Maharashtra topped the state-

wise list with 642 tenders worth `1,944 crore.

Chhattisgarh, Jharkhand and Andhra Pradesh

followed with 306 tenders worth `555 crore, 268

tenders worth `825 crore and 258 tenders worth

`602 crore, respectively.

Private SectorIn the private sector, 61 project tenders were

floated during January 2011, mainly in the Power,

Community Services and Petroleum Oil & Gas

sectors. Some of the major tenders were by

� Ganga Power & Natural Resources, a unit of

Adhunik Group, for main plant (BTG) package

for 2x660 MW thermal power plant at

Bhagalpur in Bihar.

� Cairn Energy India for execution of civil works

for Aishwariya Field Development Project in

Rajasthan.

� Maruti Clean Coal & Power for selection of

contractor for EPC / BTG Island Packages / BOP

for 300 MW coal based thermal power project in

Korba district of Chhattisgarh.

� Adhunik Power & Natural Resources for main plant

(BTG) package for 2x660 MW super thermal power

plant in Janjgir-Champa district of Chhattisgarh.

� Hindustan Oil Exploration Company for

installation and commissioning of natural gas

compressor package on long term lease basis at

HOEC PY-1 Gas Processing Terminal,

Thirukkadaiyur, in Tamil Nadu.

Expression of Interest (EoIs)In January 2011, 103 EoIs related to the

Community Services, Tourism and Roadways sectors

were announced. Some major EoIs floated in the

month were by

� Bhubaneswar Development Authority for

development of modern integrated township

(South City Phase-I) at Bhubaneswar in Orissa

under PPP.

� Maharashtra State Road Development

Corporation for development of various schemes

in the holy town of Shirdi on BOT basis in

Maharashtra.

� National Highways Authority of India for

appointment of independent engineer for six-

laning of Dhankuni-Kharagpur section of NH-6

on BOT (Toll) basis under NHDP-V in West

Bengal.

� Greater Mohali Area Development Authority for

development of Amusement Park & Punjab Haat

at Sector-62, Mohali, on BOT basis.

� Maharashtra State Road Development

Corporation for development IT Parks at Kon

and Airiwali in Panvel taluka of Raigarh

district near Mumbai-Pune Expressway on

BOT basis.

Empanelment ofConsultants/ContractorsDuring January 2011, 26 notices were published,

inviting applications for empanelment of

consultants & contractors. Some of the major

notices were

� Maharashtra State Agricultural Marketing Board

invited bids for appointment of consultants for

development of agro-commodity based high-

end processing industries in the rural area of

Maharashtra.

� Environmental Planning & Coordination

Organisation invited bids for empanelment of

project management consultants (PMC) for

various development activities.

� Employees' State Insurance Corporation invited

bids for empanelment of architectural/

engineering firms for processing maintenance

activities at ESI Hospitals in Maharashtra.

Project Tendering By Ownership

Ownership `̀Crore Tenders Share %

State Government 11,045 2,323 63.47

Central Government 4,928 1,276 34.86

Private (Indian) 271 43 1.17

Private (Foreign) 0 18 0.49

Grand Total 16,244 3,660 100.00

CMYK

Domestic & Overseas Orders


The month of January 2011 witnessed only 48

contracts being awarded. The lowest figures

both in terms of number of contracts awarded as

well as worth of jobs involved when compared with

the preceding four months (September - December

2010) statistics.

India based business houses bagged contracts worth

`14,603.38 crore, almost half the amount in

comparison to December 2010. In December, a total

of 72 contracts were amassed worth a sum of `27,822

crore.

The third quarter (October - December 2010) had

seen record rise followed by sharp fall and then

recovery in contract finalisation activities. While,

October 2010 saw record 90 contracts worth

`72,243 crore being firmed up, November saw the

aggregate contract value dipping to `14,947 crore.

Contract awarding activities staged a recovery in

December with 71 contracts worth `27,822 crore

being handed over by project promoters to Indian

companies. The momentum seems to have lost once

again in January 2011.

Of the 48 contracts awarded in January, eight were

awarded by foreign conglomerates. KEC International

was given a `942-crore contract by Kazakhstan

Electricity Grid Operating Company for the execution,

including rehabilitation, of a total of 21 substations

spread across the North East and South of Kazakhstan.

Punj Lloyd bagged two orders from Occidental

Mukhaizna and Pertamina respectively. The `323-

crore contract from Occidental was for engineering,

procurement and construction of a new water

treatment plant at oil production fields in Oman. The

Pertamina contract valued at `271 crore was for

engineering, procurement, construction, installation

and commissioning of three well head platforms and

laying three segments of 18.6 km of offshore gas

pipeline along with subsea 'wye' installation in existing

pipeline without any shut down in Indonesia.

The Power Sector managed to maintain its premier

position in the month with 18 contracts worth

`8959.31 crore in its kitty. Suzlon Energy won the

largest order from the Caparo Group. The contract

valued at `5,760 crore was for utilising Suzlon turbine

models including the S88 and the new S9X series 2.1

MW turbines with the doubly-fed induction generator

technology for 1,000 MW of wind power projects.

Next in tow was PGCIL's `1,600 crore contract

awarded by the Jharkhand State Electricity Board. The

scope of work consisted of setting up 1,000 km of

transmission lines and 10 sub-stations in Jharkhand.

The Roadways and Railways sectors were the other

sectors that clinched maximum contracts. A total of

seven projects worth `2133.06 crore were bagged in

Roadways while six contracts valued at `1657.19 were

amassed in the Railways sector.

The NHAI awarded a `1150-crore contract to

Supreme Infrastructure India for upgradation

of a 84-km stretch of the Panvel-Indapur

stretch of NH-17 in Maharashtra. A

consortium of L&T, Alstom Transport and

Alstom India bagged a contract from Chennai

Metro Rail. The `449.22-crore contract was

for design and construction of track work in

viaduct, tunnel, underground and depot for

corridors I & II including 104 route km & 15

route km of track work in the depot at

Koyambedu.

Among the other contracts closed in January,

a `500-crore one bagged by Synergy Property

Development Services from Huawei

Technologies and a `450 crore job work

bagged by Arabian Construction Company

WLL and Simplex Infrastructures for civil

construction of Lodha's proposed residential

building in Mumbai were noteworthy.

Year 2011 begins at a low

Contract allocations slowed down in January

Orders & Contracts Bagged

Sectors Contracts `̀Crore Share %

Airways (Aviation Infrastructure) 1 0 0

Articles of Iron & Steel 2 0 0

Automobile Ancillaries 1 0 0

Automobiles 1 0 0

Car Parks, etc 1 40.00 0.27

Coal/Lignite Based Power 4 240.31 1.65

Gas Pipeline 2 322.00 2.20

Industrial, Agro Machinery 1 24.83 0.17

Mineral Fuels 1 32.00 0.22

Power Distribution 10 2959.00 20.26

Railways 6 1657.19 11.35

Real Estate 1 450.00 3.08

Roadways 7 2133.06 14.61

Shipping Infrastructure 1 108.00 0.74

Storage & Distribution 1 28.00 0.19

Telecom Services 1 500.00 3.42

Thermal Based Power 1 0 0

Water & Sewerage Pipeline & Distribution 2 348.99 2.39

Water, Sewage & Effluent Treatment 1 0 0

Wind Based Power 3 5760.00 39.44

Total 48 14603.38 100

CMYK

Food Products / Textiles / Chemicals


Food Products

Project Developments

RUCHI SOYA INDUSTRIES, an

edible oil maker, plans to augment

its refinery capacity by March 2012.

The company has earmarked `600

crore for the purpose which is to be

funded through internal accruals and debts. The

plan is to expand the palm oil refinery capacity by

1.1 million tpa at Mumbai, Kandla (Gujarat) and

Haldia (West Bengal) refineries by March 2012.

Currently, the company's overall palm oil refining

capacity is 2.1 million tpa.

Meanwhile, the company has completed the merger

of one of its group companies Sunshine Oleochem

with itself, following the approval of the merger

scheme by the Bombay High Court.

PARAG MILK FOODS is planning to take up

expansion at its plant at Palamaner in Andhra

Pradesh.

The company proposes to raise capacity of the plant

by almost five times to reach a capacity of 12-15

lakh litres of milk daily. The plant has been set up at

a cost of `120 crore with a capacity of 2,50,000

litres per day of milk.

The company manufactures skimmed milk powder,

ghee, cheese, butter and yogurt under its

'Gowardhan' and 'Go' brands.

Textiles

Project Development

SURYAVANSHI SPINNING MILLS,

a Hyderabad based company, has

drawn up an expansion plan.

The company plans to invest `120

crore for setting up of a greenfield

yarn production unit at a cost of about `80 crore, a

`10-crore garment manufacturing unit and expand

existing capacity at a cost of `30 crore.

The greenfield facility with 35,000-spindle capacity

will come up near Jangoan in Warangal district of

Andhra Pradesh. The company hopes to achieve

financial closure by April 2011 and commence

commercial production by the first quarter of 2013.

Of the total cost, 30 per cent will be funded through

internal accruals and the remaining amount is to be

raised through debt.

Chemicals


GUJARAT ALKALIES AND

CHEMICALS (GACL) on 12 January

2011 inked an MoU with Evonik

Industries, a Germany based

specialty chemicals maker.

The deal has been inked for setting up a Hydrogen

Peroxide and Propylene Oxide project at Dahej in

Gujarat. Under the MoU, Evonik will be

constructing a new hydrogen peroxide production

plant and GACL is to set up a propylene oxide plant.

The aim is to produce propylene oxide using the

environment-friendly Hydrogen Peroxide to

Propylene Oxide process developed jointly by

Evonik, Essen, and Uhde, Dortmund.

NAGARJUNA FERTILISERS AND CHEMICALS

(NFCL) is likely to be divided into two entities

focussing on oil interests and fertiliser assets. For

this, two companies have been floated - Kakinada

Fertilisers (KFL) and Nagarjuna Oil Refinery (NORL).

NFCL has about 71 per cent holding in Nagarjuna

Oil Corporation, which has been working on a plan

to set up an oil refinery at Cuddalore in Tamil Nadu.

Apart from NFCL, the Tata Group, too, has a

holding in the refinery project.

Now, NFCL's share in the refinery project will be

moved into NORL. Similarly, the fertiliser assets,

which are primarily located at Kakinada in Andhra

SECTORAL REVIEW

CMYK

Chemicals / Drugs / Paper / Non-metallic Mineral


Pradesh, will be moved into KFL. Additionally,

iKisan, another group company, too will be merged

into KFL.

Though NFCL ceases to exist for now, KFL will be

renamed as NFCL once the scheme of

amalgamation and demerger is approved by the

High Court of Andhra Pradesh. With the appointed

date for the said scheme being 1 April 2011, the

scheme will result in creation of two companies.

ASIAN PAINTS (APL) is likely to form JV with US

based PPG Industries.

APL and PPG will establish a second 50:50 JV. This

will be over and above expanding their current

50:50 JV - Asian PPG Industries (APPG). The second

JV is expected to cater to the protective, industrial

powder, industrial containers and light industrial

coatings markets.

APL and PPG have agreed that APL will take lead in

the second venture and PPG will take lead in APPG

in order to utilise their respective strengths.

Currently, the modalities of the JV are being

worked out. The arrangement is subject to

regulatory approvals and is expected to be

completed during 2011.

The Chemicals Division of GODREJ INDUSTRIES

plans investment.

The company is setting up a new chemicals

manufacturing unit at Ambarnath in Thane

(Maharashtra) at a cost of `230 crore. It is also

spending `2,050-crore for expanding the capacity

of its manufacturing plant at Valai, Gujarat.

While the Ambernath unit will mainly manufacture

different kinds of fatty acids, the Valia plant will

produce fat splitters and speciality fatty acids such

as erucic acids.

Drugs, Biotech

Project Development

TORRENT PHARMACEUTICALS,

the Ahmedabad based Pharma

company, is expected to

commission its Sikkim facility within

the first quarter of next fiscal.

The formulations facility is likely to produce three

billion tablets and capsules per annum. The company

has invested `125 crore in setting up the unit.

Torrent's manufacturing plant at Chhatral (Gujarat)

has a capacity to manufacture approx three billion

tablets, capsules and vials and 15,000 kg of Bulk

Drugs or active pharmaceutical ingredients, while its

Baddi facility can manufacture 3.6 billion tablets,

150 million capsules, 10 million oral liquid bottles

and 12 million sachets per annum.

Meanwhile, the company has also started work on

the Dahej facility which will manufacture 8.5 billion

formulations and 40 million tpa of API. It entails an

investment of around `350 crore.

Paper

Project Completion

M Karunanidhi, Chief Minister of

Tamil Nadu on 19 January 2011

inaugurated a paper machine at

TAMIL NADU NEWSPRINT AND

PAPERS' (TNPL) plant in Pugalur

town in Karur district of Tamil Nadu.

The `1,000 crore expansion takes TNPL's annual

paper production capacity to 4 lakh tpa from the

present 2.45 lakh tpa. The Karur unit has a daily

production capacity of 573 tonne.

The minister also laid the foundation stone for three

projects totalling `377 crore at TNPL. These include

a 600 tpd cement unit that will use solid waste

generated at TNPL as a raw material; `135 crore

modernisation programme for the steam and power

generation facilities; and a `175 crore de-inking

plant that will recycle paper.

Non-metallic MineralProducts


BIRLA CORPORATION on 13

January 2011 inked an MoU with

the Assam Government.

The agreement has been signed for

setting up a one-million tonne

greenfield cement plant at Umrangsu in the North

Cachar Hills district. The project entailing a cost of

`450 crore will be set up through a JV company.

Birla Corporation is engaged in the manufacture of

cement, jute goods, polyvinyl chloride floor

covering, iron and steel casting, as well as auto trims.

KAJARIA CERAMICS on 20 January 2011 signed

an MoU with a Turkey based company Eczacibasi.

The company has signed the MoU with the

CMYK

Non-metallic Mineral / Metallurgy


European brand Vitra, owned by Eczacibasi, to enter

into the sanitaryware and bath-fittings segment.

The 50:50 partnership is for five years and the JV is

looking at possibilities of manufacturing in India.

The partners are working on the feasibility study

and are also looking at the possibility of acquiring an

existing facility. Also, plans are afoot to set up

around 10 showrooms of Vitra-Kajaria during 2011.

ULTRATECH CEMENT on 6 January 2010 signed an

MoU with Rajasthan State Industrial Development

& Investment Corporation (RIICO).

The company has signed the MoU for setting up a

`2,000 crore cement project in Jhunjhunu district of

the state. The proposed plant is to come up on

1,600 acre. The project is to have an annual

installed capacity of three million tpa.

RIICO will facilitate the project by way of land

acquisition. The project is expected to start

production in two years from the time of land

acquisition.

Work on SHELL & PEARL CERAMICS' unit at

Jhagadia is expected to commence by October

2011.

The company plans to set up the vitrified tiles unit

with a capacity of 14,000 sq mtrs per day (Phase II)

at 14, Jhagadia Industrial Estate, Jhagadia in

Bharuch district of Gujarat. It is to incur a cost of

`60 crore. The required machinery will be sourced

from China and Italy. Jagat Constructions has been

selected as the contractor for the unit.

Also, the company's unit with a capacity of 20,000

mtrs per day (Phase I) at Jhagadia has commenced

operations in December 2010. The unit was set up

at a cost of `150 crore.

PIRAMAL GLASS, a manufacturer of glass

containers, intends to set up new manufacturing

unit in Gujarat.

The company is planning to invest nearly `100 crore

to set up a unit to meet the increasing demand from

domestic and overseas markets.

It is likely to set up a new furnace to manufacture

bottles at its existing plant at Jambusar in Gujarat.

The proposed unit is likely to have a production

capacity of 160 tpd. It is slated to be operational by

March 2012.

SAINT-GOBAIN GLASS INDIA proposes to set up a

facility to manufacture base glass for solar

photovoltaic modules.

The company is likely to invest `400 crore in the

facility. The plant is expected to be located either at

Chennai, Tamil Nadu, or at Bhiwadi, Rajasthan. The

capacity of the new plant is expected to be around

500 MW a year.

Meanwhile, Saint-Gobain is setting up a glass plant

at Bhiwadi at a cost of `1,500 crore. The plant is

being taken up in phases. In Phase-I, `900 crore is

being invested to create new production lines and is

expected to be commissioned by December 2011.

Metallurgy


SAIL on 19 January 2011 signed an

MoU with Hindustan Prefab (HPL).

The agreement has been signed for

jointly exploring economic viability

of carrying out the business of

prefabricated structures in steel and cement. The

two companies will also look at opportunities

towards jointly participating in projects using

prefabricated structures in steel and cement.

The MoU envisages a study to be conducted into

the techno-economics of the prefab sector along

with its market potential. HPL has expertise in

project management, production and marketing of

prefabricated products.

NMDC is likely to finalise a JV partner for its steel

venture in Chhattisgarh by March 2011.

The company is planning to set up a two million tpa

steel plant in a JV in Chhattisgarh at an investment

of `10,000 crore. Currently, the company is holding

discussions with potential partners. It is likely to

make final announcement in regards to the JV

partner by March 2011.

However, the exact location and the time frame for

CMYK

Metallurgy


construction of the steel plant have not been

disclosed. NMDC's integrated steel unit in Bastar

district of Chhattisgarh is slated to commence

production by early 2014.

GUJARAT MINERAL DEVELOPMENT CORPOR-

ATION (GMDC) is likely to induct a partner for its

aluminium project in Kachchh, Gujarat.

GMDC is setting up an alumina refinery and an

aluminium smelter project in Kachchh, at an

investment of around `14,000 crore.

Currently, the company is evaluating the EoIs by

Hindalco Industries, Gujarat Foils, JSW Aluminium,

NALCO, Aluchem (USA), Dubai Aluminium

Company, Jaiprakash Associates, Adani Group and

Jindal Steel and Power.

The project envisages setting up a one million tonne

alumina refinery and a 5,00,000 tonne aluminium

smelter. GMDC will be the bauxite provider for the

alumina production from its mines in Kachchh.

JAI BALAJI has achieved financial closure for its

steel plant at Raghunathpur in Purulia district of

West Bengal.

The company has managed to mop up `1,230 crore

from a consortium of banks headed by State Bank of

India. The other banks are Bank of Baroda, Union

Bank of India, Oriental Bank of Commerce,

Allahabad Bank, Bank of India, United Bank of India,

Indian Overseas Bank, State Bank of Bikaner and

Jaipur, State Bank of Mysore, Dena Bank and The

Federal Bank.

The balance amount of `640 crore will be funded

through a mix of internal accruals and fresh equity.

The Phase IA of the project is estimated to cost

`1,870 crore. The steel plant having a capacity of

five million tonne also comprises a 1,215 MW

power plant. The project will be completed in a span

of 30 months.

TATA STEEL is likely to commence construction on

its steel plant shortly at Kalinganagar in Jajpur

district of Orissa.

Due to land acquisition issues and non-allocation of

iron ore and coking coal mines for it, the project did

not take off and the MoU expired in 2009. The

company has written to the state government for

the extension of the MoU and has also requested

for allocation of mines.

The company has completed the ground levelling at

the plant site. The `23,000-crore project is to be

developed in two phases comprising three million

tpa each. Phase I is expected to cost close to

`16,000 crore and is likely to be operational in 36 to

40 months from the start of construction. The funds

for the project are likely to be tied up, within six

months of starting the construction.

The board of directors of SAIL is expected to

examine the DPR on its proposed JV with South

Korea based POSCO. POSCO has already approved

the DPR and if SAIL concurs with its assessment on

the feasibility of the project, other modalities such

as the stake-holding pattern will be finalised. The

SAIL board is likely to take a final decision shortly.

The two companies plan to set up a three million tpa

integrated steel plant at Bokaro in Jharkhand, at an

investment of `16,000 crore.

POSCO is also holding talks with the Karnataka

Government to set up a steel plant in the state. The

proposed project costing `32,000 crore will have a

capacity of six million tpa. The company has

identified three potential sites -- at Gadag, Bijapur

and Bagalkot -- for the project. It has already

deposited `60 crore with the Karnataka Industrial

Area Development Board for acquisition of the land

required for the project as well.

JSL STAINLESS is planning to ramp up its coke oven

capacity.

The company is likely to raise its coke oven capacity

to 8,00,000 tonne with the help of JSW Steel. The

two companies have signed a long-term agreement

for three to five years and JSW will pay money to

JSL, depending upon the requirement of the capital

expenditure schedule.

As per the agreement, JSW will bring in its own

coking coal and JSL will convert it into coke for

JSW's use. JSW will use this coke at Ispat's Dolvi

steel plant in Maharashtra according to the

CMYK

Metallurgy / Machinery & Electronics


restructuring plan to bring Ispat back on its feet.

JSL has already spent `400 crore to put up the

4,00,000-tonne coke oven battery. As the

infrastructure for expansion is in place, it will need

just `100-125 crore to augment the capacity.

Bhilwara based SANGAM GROUP has decided to

foray into steel business through a new subsidiary

Mahalaxmi TMT.

The company will set up an integrated steel plant

near Wardha in Maharashtra in two phases. It will

involve a capital expenditure of `697.50 crore. The

project is to be funded by an equity contribution of

`217.50 crore from the promoters while the

remaining `480 crore will be raised through debt.

The company has already secured loans from a

consortium of eight banks, led by Union Bank of

India.

The plant is to have a capacity of 2.40 lakh tpa for

mild steel billets in the first phase which will be

completed by May 2011. Later the company plans

to ramp it up to 3.36 lakh tpa by May 2012 in the

second phase. It is also planning to set up a five lakh

tpa capacity for manufacturing TMT bars, angles

and channels along with 40 MW captive power

plant in the second phase.

Work on the steel plates and slabs unit coming up at

Khopoli in Raigarh district of Maharashtra is

expected to be completed by June 2011. NAMCO

CORPORATION is setting up the unit with a

capacity of 3.50 lakh tpa. A sum of `750 crore is

being pumped in for the project.

Machinery & Electronics


A JV of L&T and MITSUBISHI

HEAVY INDUSTRIES completed

facilities for the manufacture of

supercritical boilers and turbine

generators at Hazira, Surat (Gujarat).

Vilasrao Deshmukh, Union Minister of Heavy

Industry & Public Enterprises, on 11 January 2011

inaugurated the supercritical boiler facility while

Narendra Modi, Chief Minister of Gujarat,

inaugurated the facility for supercritical turbine

generators.

The L&T-MHI facilities have an annual capacity of

manufacturing 5,000 MW of equipment, to be

expanded to 6,000 MW by 2012.

PREMIER, an automobile manufacturer has shifted

focus to manufacture CNC machine tools, heavy

engineering and utility vehicles.

The company is likely to invest about `100 crore in

the heavy engineering division. The capex plan is to

be funded through the sale of 200 acre in Mumbai.

The company is planning to invest about $50 million

(approx `225 crore) to acquire a company.

However, the company did not disclose the details

of the target company.

The manufacturing facility of TOSHIBA JSW

TURBINE & GENERATOR is expected to become

operational in the second half of 2011.

At present, installation of machinery is going on and

the company expects the facility to be ready by July

or August 2011.

Toshiba JSW is investing `800 crore in the facility for

supercritical steam turbines and generators, which is

coming up in north Chennai. The initial capacity of

the facility will be 3,000 MW per year and will be

completed in three steps - component factory,

manufacturing facility and administrative office.

DOOSAN HEAVY INDUSTRIES & CONSTRU-

CTION, South Korea based power equipment maker,

will set up a boiler manufacturing plant in India.

The plant is to entail an outlay of `1,000 crore and

will come up in Haryana. Land for the plant has

been acquired. It will manufacture equipment to aid

generation of around 3,000 MW every year.

DEERE & COMPANY, a farm equipment

manufacturer, is planning to take up expansion.

The plan includes setting up a new factory and

expanding the capacity of its existing plant in

Pune at an investment of around $100 million

(approx `450 crore). The new facility is likely to

CMYK

Machinery & Electronics / Automobiles


manufacture small agricultural tractors for the

domestic market and for export to other

countries. The company is yet to finalise the

location for the new plant.

BHARAT FRITZ WERNER (BFW), a machine tools

company, is planning to take up expansion.

The company has earmarked `350 crore to expand

operations by 2015. The plan includes setting up a

new plant and restructuring its aerospace business.

BFW is setting up a new plant for manufacturing

machine tool spindles in Hosur, Tamil Nadu, at an

investment of `33 crore. It will invest about `45

crore for restructuring the aerospace business,

which will involve hiving off the business as an

independent entity. Another `115 crore will be

invested in acquiring new machinery and for adding

shop floors.

The company is also holding discussions with a few

companies in Europe in the aerospace and medical

equipment sector for acquisition.

TIL plans to raise up to `250 crore as equity through

private equity or institutional placement to part

finance its greenfield project at Kharagpur, West

Bengal.

TIL is constructing a heavy equipment plant in

Kharagpur that entails a cost of around `200 crore

in the first phase. It is expected to be operational by

July 2011.

In the next three-four years, the optimum

investment will go up to `500 crore once TIL sets up

four types of equipment manufacturing facilities.

Automobiles


SAIL is planning to make auto-

grade steel for cars.

The company is setting up a new

cold rolling (CR) mill with a 1.2

million tpa capacity at its Bokaro

plant in Jharkhand.

The new cold rolling mill is being set up with

coupled pickling and tandem mill, 100 per cent

hydrogen annealing, electrolytic cleaning line,

tension levelling and automatic packing stations,

etc. Also, galvanising lines are being set up both for

hot rolled and cold rolled products. Provision has

been made for supplying of HR pickled and oiled

material. Necessary upstream projects like facilities

for de-sulphurisation and upgradation of hot strip

mill are also in the pipeline.

The first lot of coaches from the RAIL COACH

FACTORY, Rae Bareli in Uttar Pradesh, is expected

to roll out in the next financial year.

The factory being set up at a cost of `1,685 crore

will have a capacity of 1,000 coaches per year. The

total area, which has been allocated for the factory

is around 550 ha. As part of the initial support

systems, construction of factory boundary wall, rail

linking of Lalganj railway station with the factory,

construction and energising of 33/11 kV sub-station

and construction of two water tanks have been

completed.

PROTON HOLDINGS BHD, a Malaysia based car

manufacturer intends to set up contract assembly

manufacturing operations in India.

Currently, the company is holding discussion with a

global equipment manufacturer for a possible JV for

the project. The deal is likely to be finalised by

March 2011.

Besides, the company plans to incorporate its own

subsidiary that will work with a local partner to

distribute cars in India. It is exploring the option of

offering its models - Saga, Persona, Exora

multipurpose vehicle and Emas hybrid in India.

RASHTRIYA ISPAT NIGAM (RINL) on 10 January

2011 signed an MoU with the Indian Railways (IR).

The MoU was signed for setting up an axle plant -

Uttarbanga RINL RAIL Karkahana - at New

Jalpaiguri, West Bengal, at an estimated cost of

`278 crore. The proposed plant is to manufacture

Box N Wagon Axles. The new plant will have the

facility of forging and heat treatment of about

CMYK

Automobiles / Mineral Fuels


50,000 forged axles per annum. The project will be

implemented by forming a 100 per cent subsidiary

company of RINL or a JV. MECON has been

appointed the consultant for the project.

While RINL shall invest 100 per cent equity for this

project, the IR will provide assured off-take of

20,000 axles per annum.

JK TYRE & INDUSTRIES is likely to complete the

expansion in Karnataka and Tamil Nadu by

December 2011. The company is taking up

expansion project at Mysore in Karnataka and

setting up new facility at Chennai in Tamil Nadu at

a total investment of `950 crore.

In Mysore, the company is raising the capacity of its

plant from eight lakh tpa of tyres to 10 lakh tpa of

tyres. The expansion is scheduled to be completed

by June 2011. The company is setting up a new

manufacturing facility in Chennai with a capacity of

four lakh tpa of tyres. The plant is likely to be

commissioned by December 2011.

GENERAL MOTORS (GM) INDIA has chalked out

an investment plan for its facilities in the country.

The company has earmarked around `2,000 crore

to invest in India by 2013. Of the total, GM is likely

to invest `700 crore in Halol plant in Gujarat and

`1,300 crore in Talegaon plant in Maharashtra. The

funds are to be utilised to convert Halol into a hub

for making commercial vehicles while also

expanding production capacity to 1.05 lakh units

per annum. Currently, the Halol plant manufactures

85,000 units per annum.

At Talegaon, the company is adding an annual

production capacity of 1.6 lakh units. Currently, it

can manufacture 1.4 lakh units per annum.

ROYAL ENFIELD, an arm of Eicher Motors,

proposes to set up a new facility.

The new motorcycles facility is likely to up come in

Tamil Nadu or Andhra Pradesh and the investment

and location details will be decided in three months.

Besides this, the company is also planning to ramp

up its capacity at the Chennai plant by 20 per cent.

The expansion will entail an investment of around

`25 crore.

HYUNDAI MOTORS INDIA is likely to submit its

expansion plan to the Tamil Nadu Government soon.

The company is expected to submit a `1,500-crore

expansion plan to the state government. Earlier, the

company was planning to invest around `500 crore

to set up a diesel engine plant in the state.

The company will seek a package of incentives

available under the state government's industrial

policy for super mega investments in automobile

projects.

THE TATA GROUP plans to set up three more units

as a part of its aerospace manufacturing initiative in

Hyderabad. The project will entail an investment of

`1,000 crore.

Nova Integrated System, Tata Aero-structure and

Tata Aerospace Systems, the three new JV

companies will be engaged in making radar and

electronic equipment for the defence sector,

assembling of aircraft equipment and

manufacturing of aircraft parts respectively. The

Andhra Pradesh Government is likely to allot 125

acre near the Aerospace SEZ on the city outskirts.

Mineral Fuels


CIL is likely to sign contracts with

private firms to develop

underground coal gasification

projects.

The blocks, where coal production

is not viable, will be offered for 25 years and will be

developed in three phases, involving exploration

and assessment for the first five years and

commercial production for the rest.

The developer will explore and assess the feasibility

of the blocks being offered. If the blocks are found

suitable, the developer will submit mining plan to

the company. The developer will also take up the

project and it will be for the developer to acquire

land. Sales and marketing of the product will be the

developer's responsibility. The developer will either

sell the gas to third party entities at market rates or

will use it for its own downstream purpose.

Post commissioning, CIL will have the right to

participate in development of marketing

infrastructure for transportation of gas to customer

delivery points. CIL's participation will be in the form

of 50 per cent equity participation in a JV with the

developer of the project. CIL has identified

Thesgora C Block under Western Coalfields

command area and Kaitha Block at Central

Coalfields for the purpose.

NMDC's coal blocks in Madhya Pradesh are expected

to commence production in December 2011.

The company is planning to develop two

underground mines - Shahpur East and Shahpur

CMYK

Mineral Fuels


West in the state, by end-December 2011. The two

coal blocks have estimated reserves of 100 million

tonne.

The two blocks spread across about 13 sq km were

allocated by the Union Ministry of Coal (MoC) in

2007 for commercial use and the output will be sold

to power producers. NMDC has already submitted a

mining plan to MoC and is likely to be approved by

March 2011. Meanwhile, NMDC is looking at

proposals to acquire coal mines in South Africa,

Russia, Mozambique and the US. In Russia, it is

looking to acquire Kolmar's coal mines and other

nearby assets. The coal mines are understood to

have estimated reserves of 400 million tonne.

NMDC has already submitted a $230 million

(approx `1,035 crore) non-binding bid to buy a 70

per cent stake in a coal mine in Australia owned by

Perth based Atlas Iron.

ONGC on 3 January 2010 signed cooperation

agreements with GAIL India. The agreements will

be initially valid for three years and can be extended

thereafter. Under the agreement, GAIL will get the

first right on all gas that ONGC will produce from

any of its fields in future. But in case GAIL is unable

to get a good price within 30 days, ONGC will take

back the marketing rights.

GAIL will also market some of the chemicals to be

produced from the Dahej petrochemical complex

being set up by ONGC Petro-additions (OPaL), a

subsidiary of ONGC. GAIL has 19 per cent stake in

OPaL.

Further, GAIL is expected to be a co-promoter of the

1.1 million tonne ethylene cracker petrochemical

complex that OPaL is setting up at Dahej SEZ in

Gujarat, at a capital cost of `19,535 crore.

The two companies will also explore the possibility

of setting up a downstream unit using Butadiene for

manufacture of value-added products.

BHARAT COKING COAL is likely to open seven

new underground mines in Jharkhand. The step is

aimed at tripling its underground coal production

capacity to 12 million tpa.

The tenders for three to four mines have already

been floated while the remaining tenders in the

pipeline are likely to be floated in another two

months. The mines, all situated in Dhandand,

include Putki Balihari, Kapuria, Madhuban,

Moonidih (15 seam and 16 seam), Amlabad and

Sumandi and have a cumulative annual production

capacity of almost seven million tonne.

THE ORISSA GOVERNMENT is likely to ink a fresh

JV for mining with Rio Tinto.

The state government is currently examining a draft

regarding a fresh agreement with Rio Tinto. The

final agreement is likely to be signed after the state

government's approval.

In 1995, the company had signed an agreement

with Orissa Mining Corporation (OMC) for a 51:49

JV to start iron ore exploration at Malangtoli

reserve. However, the JV failed to get operational.

GREAT EASTERN ENERGY CORPORATION

(GEECL) on 4 January 2011 signed an agreement

with the Tamil Nadu Government.

GEECL has signed the pact with the state

government for the development of coal bed

methane (CBM) in the Mannargudi block in the

state. In June 2010, the company was awarded the

block in the fourth round of bidding of NELP for

CBM blocks. Under the MoU, the state government

will provide for issuance of Petroleum Exploration

Licence and facilitate necessary environmental

clearances for the project. Also, the state

government will help the company in obtaining

Right of Use for laying pipeline and other

infrastructure facilities.

The Mannargudi block is spread over an area of 691

sq km and the CBM resource is estimated at 0.98

trillion cubic feet. Initially, GEECL plans to drill 50

core holes and 30 pilot wells in the region. GEECL

CMYK

Mineral Fuels / Petroleum Products


plans to pump in around `100 crore during the

exploration stage of Mannargudi block. Once the

project viability is established, the company is likely

to invest around `3,500 crore depending on the

commercial viability of the project.

ESSAR OIl on 11 January 2011 has commenced gas

production from its Raniganj coal bed methane

(CBM) block in West Bengal.

The company is producing 90,000-100,000

mmscmd of gas from below coal seams in the

Raniganj block. This block is expected to touch a

peak output of over three mmscmd by 2013.

The block has in place resources of 4.6 trillion cubic

feet (tcf) and recoverable resources of around 1 tcf.

The production from the block will last 15 years.

The company is investing $300 million (approx

`1,350 crore) for CBM gas production. It is planning

to drill 500 wells by 2013.

JUBILANT ENERGY N.V., on 1 January 2011 began

exploration work on the appraisal well in the Deen

Dayal East ("DDE") area of the KG-OSN-2001/3 block.

The well was spudded by the Deep Driller I rig from

Aban Offshore. The target depth of the well is

4,750 mtrs true vertical depth with the objective of

appraising the hydrocarbon bearing sands of KG-16

discovery well.

Jubilant holds a 10 per cent participating interest in

this block through its subsidiary Jubilant Offshore

Drilling and Gujarat State Petroleum Corporation,

with an 80 per cent participating interest, is the

operator for the block.

Project Impediment

RELIANCE INDUSTRIES (RIL) has discarded the

second exploratory well in a Krishna-Godavari

(KG) block after coming across unsatisfactory

results.

The well KG-D9-B3 in the exploration block KG-

DWN-2001/1 or D9 showed a natural gas deposit

and was tested, plugged, and abandoned. However,

the exploration result was disappointing. The well

was drilled to a total depth of 3,829 mtrs by the

Transocean drillship 'Discoverer India' in a water

depth of 2,948 mtrs. RIL has 90 per cent interest in

D9 block while the remaining 10 per cent is with

Hardy Oil and Gas.

RIL has 90 per cent interest in D9 block while the

remaining 10 per cent is with Hardy Oil and Gas.

The D9 block is located in the KG Basin on the East

Coast of India and covers an area of approximately

11,605 sq km.

Petroleum Products


THE UNION GOVERNMENT is

expected to give its nod for a

Petroleum, Chemicals and

Petrochemical Investment Region

(PCPIR), at Cuddalore in Tamil

Nadu in the next two to three months.

Typically, a PCPIR will be a specifically delineated

investment region with an area of around 250 sq

km planned for the establishment of manufacturing

facilities for domestic and export-led production in

petroleum, chemicals & petrochemicals, along with

the associated services and infrastructure. Out of

the total 250 sq km, around 100 sq km will be under

processing areas, and the rest is left for other

amenities. The four PCPIRsso far approved are at

Dahej in Gujarat, Haldia in West Bengal, Paradip in

Orissa and Vishakhapatnam in Andhra Pradesh.

Six companies have evinced interest in the

preparation of master plan and zonal development

plans for the proposed Petroleum, Chemical and

Petro-chemical Investment Region (PCPIR) in

Andhra Pradesh.

The six companies are - Jurong Consultants, India,

CH2M Hill (India), AECOM, India, Worley Parsons,

India, Mott MacDonald, India, and LEA Associates

South Asia. After evaluation of pre-qualification

proposals, the selected companies will be asked to

submit financial proposals.

The proposed PCPIR is to be developed between

Visakhapatnam and Kakinada. THE

VISAKHAPATNAM URBAN DEVELOPMENT

AUTHORITY is the nodal agency for the

implementation of the project.

CMYK

Petroleum Products / Oil & Gas / LNG Storage


HPCL has reshuffled plans for its refinery scheduled

for commissioning near Chiplun in Ratnagiri district

of Maharashtra post-2015.

The project which was originally planned to have a

capacity of 15 million tpa will now have a nine

million tpa capacity. This is in order to commission

the refinery by 2016 and then expand the capacity

to 18 million tpa by 2020.

The Visakhapatnam refinery's capacity will be

increased from nine to 15.5 million tpa while the

Bathinda refinery, having a capacity of nine million

tpa is to go on-stream in a few months.

BHARAT PETROLEUM CORPORATION'S (BPCL)

Bina refinery in Madhya Pradesh is likely to

commence commercial fuel production by mid-

February 2011. In July 2010, the refinery started

operations and has been sequentially

commissioning different unit, which will be

completed by February. All the products produced

will be for sale within the country.

Meanwhile, plans are afoot to expand the capacity

of Bina Refinery to 15 million tonne by 2017.

Oil & Gas Pipelines


GAIL plans to raise `3,500 crore

from the market as part of its

`7,000-crore capex plan in the next

fiscal. The balance `3,500 crore will

be from internal accruals.

The company plans to add 1,500 km pipelines by

2012 that is expected to raise its gas transmission

capacity from current 180 to 230 mmscmd.

The company is raising $150 million (approx `675

crore) through external commercial borrowings in

February 2011 and applied for a loan of `300

crore from Oil Industry Development Board. The

company may also raise about $150-200 million

(approx `675-900 crore) through foreign

currency bond.

THE KARNATAKA GOVERNMENT on 3 January

2011 approved a proposal to set up a JV company

to monitor the distribution of gas from the proposed

Dabhol-Bengaluru pipeline for various purposes,

including the piped supply.

The proposed JV company is likely to be set up with

a capital of `100 crore. The company is likely to

look into distribution of gas to power projects,

which are coming up along the pipeline in various

districts and supply for gas for vehicles.

The JV company will be floated with the GAIL

having 26 per cent stake and Karnataka State

Industrial Investment and Development

Corporation having 24 per cent stake. The other

companies will get the remaining stake.

RELIANCE INDUSTRIES (RIL) has opposed the

proposal of a new pipeline from Kakinada to

Srikakulam floated by Andhra Pradesh Gas

Infrastructure Corporation (APGIC).

According to RIL, gas availability for the pipeline is

uncertain and will not contribute to the development

of a national gas grid. The company also said that

the proposal to lay a separate line in the same route

of earlier authorised pipeline will create unnecessary

confusion and uncertainty in the mind of project

developers, keeping in view the huge

investments/financial commitments they made.

APGIC is a JV of Andhra Pradesh Industrial

Infrastructure Corporation and Andhra Pradesh

Power Generation Corporation.

LNG Storage &Distribution

Project Development

RELIANCE INDUSTRIES (RIL) is

planning to set up natural gas

(LNG) import terminal in India.

The move emanates from the

company's need for 14 mmscmd of

gas at its twin refineries at Jamnagar in Gujarat. It

also needs gas for its petrochemical plants.

The proposed terminal may come up on either the

East or West Coast to meet demand at RIL's

refineries and petrochemical plants. RIL is likely to

invest about $1.21 billion (approx `5,400 crore) in

the project.

RIL is exploring the possibility of setting up the

proposed terminal at Kakinada in Andhra

Pradesh, following which the under-utilised East-

West pipeline -- which connects the landfall

point for gas from the eastern offshore KG-D6

field to Bharuch in Gujarat -- can be used to

move the fuel to the company's plant. The

company is also looking at the option of using a

floating LNG facility that will receive cryogenic

ships at high sea and regasify the liquid cargo

into natural gas before piping it to shore through

a submarine pipeline.

CMYK

Electricity


Electricity


NPCIL has begun preliminary

construction work for its upcoming

10,000 MWe nuclear power project

at Jaitapur in Ratnagiri district of

Maharashtra.

Since NPCIL has acquired about 938 ha in Jaitapur,

it has started construction of a three km boundary

wall. The contract for building the wall has been

split into 10 parts so that local contractors could be

used for building the wall.

Also, for study of the local soil, which is essential

before construction of the plant and other ancillary

buildings, soil samples from depths of 30 to 100

mtrs are being taken with bore drills. This study will

help in designing and constructing the foundations

of the buildings.

The Unit I 250 MW of the Karcham Wangtoo hydel

power project is slated to commence power

generation in March 2011.

THE HIMACHAL GOVERNMENT has reportedly

allotted a hydel power project in Lahaul valley to

L&T. The 420 MW Reoli Dugli hydel power project

was earlier granted to Moser Baer Projects which

failed to meet its financial commitments. L&T has

agreed to pay the highest bid as offered by the

previous company i.e. `80 crore.

THE UNION GOVERNMENT signed a loan

agreement worth $208 million (approx `936 crore)

with the Asian Development Bank (ADB).

The loan deal has been signed for Tranche 3 of the

Himachal Pradesh Clean Energy Development

Investment Program. This loan provides partial

funding for stages II & III of the integrated Kashang

hydel project totalling 195 MW located in Kinnaur

district, and for the 100 MW Sainj hydel project

located in Kullu district. The Himachal Pradesh

Power Corporation is the implementing agency for

this project.

INDIRA GANDHI CENTRE FOR ATOMIC

RESEARCH (IGCAR) has teamed up with BHEL and

NTPC to set up an advanced ultra supercritical coal

based power plant by 2017.

The `7,000 crore project has been taken up at the

initiative of R Chidambaram, the Principal Scientific

Advisor of IGCAR. Of the total cost, `2,500 crore

will be spent on research and development.

The IGCAR has the capacity to design such high-

temperature boilers, BHEL is to manufacture these

plant components while NTPC is to put up such

plants. The advanced supercritical boilers, to be

designed and developed by IGCAR, will be able to

operate at a pressure of 350 bar and withstand

temperature of 700 degree centigrade. IGCAR has

designed and developed a 500 MW Prototype Fast

Breeder Reactor which is being built at Kalpakkam in

Tamil Nadu.

PFC is exploring the option of equity participation in

upcoming nuclear power projects in the country.

PFC had a discussion with NPCIL on funding

possibilities, where PFC had offered to provide debt

financing and consultancy services to start with, and

explore the possibility of equity participation in due

course.

NPCIL may need over `1,00,000 crore over the next

five to 10 years for funding its capacity expansion

plan. It intends to have a capacity of 20,000 MWe

on stream by 2020 and 63,000 MWe by 2032.

Three consortiums have qualified for the

supercritical boiler tender of NTPC and have been

asked to submit a price bid on 20 January 2011. The

three consortiums are BGR Energy-Hitachi, BHEL-

Alstom and L&T-Mitsubishi.

NTPC had issued a tender for bulk ordering of

supercritical power equipment, with a cumulative

generation capacity of 7,200 MW. The orders are

for 11 boilers, nine for its own projects and two for

Damodar Valley Corporation.

The Union Government on 6 January 2011 allowed

NTPC to allocate as much as half the electricity

generated by projects it builds to the states where

the plant is located.

The proposal is for allocation of 50 per cent power

to the "home" states (the states where the power

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Electricity


projects are located), 35 per cent allocation of

power to the other constituents of the region and

15 per cent power as unallocated power at the

disposal of the government from the 14 power

projects.

These projects are 4x660 MW Gadarwara (Madhya

Pradesh), 4,000 MW Lara (Chhattisgarh), Talcher

(Orissa), 4,000 MW Kudgi (Karnataka), Darlipali,

3,200 MW Gajmara (Orissa), 3,960 MW Barethi

(Madhya Pradesh), 2,640 MW Gidderbaha

(Punjab), 1,600 MW Katwa (West Bengal), 1,320

MW Dhuvaran (Gujarat), 1,320 MW Khargone

(Punjab), 4,000 MW Pudimadka (Andhra Pradesh),

2,000 MW Bilhaur (Uttar Pradesh) and Kathu that

will be commissioned during the 12th (2012-17)

and 13th (2017-22) Plan periods.

Such an allocation will help NTPC compete better

with private sector rivals under the new regime of

tariff-based competitive bidding.

NTPC is likely to float tenders for Unit I of 800 MW

of its supercritical coal based power project at

Kudigi in Bijapur district of Karnataka.

The cost of the equipment for the proposed unit will

be decided based on the international competitive

bidding.

Currently, land acquisition for the project is

underway. The Karnataka Industrial Area

Development Board has issued the final notification

for acquisition of 3,200 acre in four villages like

Kudigi, Telgi, Masuti and Golasangi in Bijapur district

for the project. Out of 3,200 acre, 1,900 acre is

reserved for the power station, 1,100 acre for the

ash pond and 250 acre for the township. The state

government has allocated 5.2 thousand million

cubic feet of water from the Almatti Dam in Bijapur

district. In November 2010, NTPC has signed PPA

with electric supply companies like Mangalore

Electricity Supply Company. The project to be taken

up in two stages involves the Stage I of 2,400 MW

(3x800) and the Stage II of 1,600 MW (2x800). The

project cost is estimated at `15,000 crore.

NTPC is unlikely to commission the proposed 750

MW (3x250 MW) Bongaigaon thermal power

station at Salakati in Assam during the Eleventh Plan

(2007-12).

The company has reportedly blamed SPML Infra for

sluggish civil works which may delay the `3,750

crore project.

BHEL has erected one boiler and work for the

second is underway. However, the turbines could

not be installed as related civil construction was not

done. The first two units of 250 MW each were to

be commissioned in FY 2011-12.

In order to expedite the work, NTPC has decided to

offload the balance civil works of Unit II and III. In

November 2010, the company had invited tenders

in this regard.

According to the revised commissioning targets set

by NTPC, one 250 MW unit is slated to be

operationalised by March 2012. Commissioning of

the residual capacity is expected during the Twelfth

Plan period (2012-17).

NTPC is mulling to set up a 4,000 MW thermal

power project at Visakhapatnam in Andhra Pradesh.

The proposed power project is likely to come up at

Pudimadaka in Visakhapatnam, a cost of `23,000

crore. In this regard, N Kiran Kumar Reddy, Chief

Minister of Andhra Pradesh, on 2 December 2010

cleared the state government's concurrence for

buying 50 per cent of the power i.e 2,000 MW

generated from the plant.

The tariff for the power generated from the plant is

to be decided by the Central Electricity Regulatory

Commission. The state government will facilitate

necessary clearances required and provide land and

water for the project.

THE NORTH EASTERN ELECTRIC POWER

CORPORATION (NEEPCO) is likely to restart work

soon at the Tuirial hydel power project in Mizoram

that was suspended in June 2004 due to law and

order problems.

Also, the CCEA approved the revised cost estimate

of the 60 MW project amounting to `913.63 crore.

The financial pattern of the total cost comprises

equity of `137.04 crore, `184.63 crore as loans

from financial institutions, subordinate loan from

the Union Government amounting to `291.96 crore

and grant from Ministry of Development of North

Eastern Region amounting to `300 crore.

The project is slated to be commissioned in 36

CMYK

Electricity


months. The state government has also signed a

PPA for purchase of power from this project at

CERC rates.

BHEL has reportedly emerged as the lowest bidder

for Rajasthan Rajya Vidyut Utpadan Nigam's

(RRVUNL) projects.

The two supercritical thermal power projects, being

set up at Chhabra and Suratgarh in Rajasthan, are of

1,320 MW each and RRVUNL had floated a tender

for providing EPC services.

The EPC work on the plants is likely to start as soon

as the company gets the contract officially and will

take about 36 to 48 months time to complete.

THE CABINET COMMITTEE ON ECONOMIC

AFFAIRS (CCEA) on 30 December 2010 approved

revised cost estimated for hydel based power

project in Mizoram.

The CCEA has approved revised cost estimate of

`913.63 crore for the 60 MW hydel based power

project in Mizoram. The project is being set up by

North Eastern Electric Power Corporation. The cost

includes equity of `137.04 crore, loan from financial

institutions amounting to `184.63 crore,

subordinate loan from the government amounting

to `291.96 crore and grant from Department of

North Eastern Region amounting to `300 crore and,

interest during construction of `36.57 crore.

The project is slated to be commissioned in 36

months from the date of investment approval of

revised cost estimate.

The Union Government has approved nine solar

power projects to be set up in Haryana by

independent power producers (IPPs).

The government has approved solar power projects

with a combined capacity of 8.8 MW capacity to be

set up in Haryana. These projects are slated to be

commissioned by September 2011. THE HARYANA

RENEWABLE ENERGY DEVELOPMENT AGENCY

(HAREDA) had invited proposals from IPPs for the

installation of solar power generation plants of 100

KW to 2 MW capacities in the state under the

Jawaharlal Nehru National Solar Mission. After the

approval of the state government, HAREDA issued

pre-registration certificates to the 22 developers for

setting up of solar power projects of 20 MW

capacity, of which nine projects had been approved

by the government.

Two sites offered by the GUJARAT GOVERNMENT

for setting up ultra mega power projects (UMPPS)

have not been found feasible by the Union Ministry

of Power due to environmental reasons.

The state government had identified two sites - one

near Junagarh and another near Jamnagar-for

setting UMPPs of 4,000 MW capacity each. As per

the ministry, Junagarh is not possible, as it is near

the Gir Forest area, and as far as Jamnagar is

concerned, it is near the limestone mines and

permission has to be sought from the Gujarat State

Mining Corporation.

NHPC's Kotli-Bhel hydel based power project in

Uttarakhand have run into trouble owing to its

critical nature.

The Union MoEF has revoked the environment

clearance accorded to its 320 MW Kotli Bhel Stage

1B project. Further, the company is yet to obtain

forestry clearance for the 195 MW Stage 1A

project. So far, the company has spent around

`70.21 crore and `48.60 crore, respectively, on

stage-1A and 1B of the projects. The estimated

costs of the two stages are `1,298.49 crore and

`1,911.33 crore, respectively.

Also, the Central Electricity Authority has extended

the validity of its concurrence to both the projects

till October 2011. Both the projects are run of river

proposed on Ganga river and its tributaries in

Garhwal district of the state. While the Stage IB is

proposed on river Alaknanda, Stage IA is proposed

on river Bhagirathi.

THE CHHATTISGARH RENEWABLE ENERGY

AND DEVELOPMENT AGENCY (CREDA) has

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Electricity


begun the process to install solar power plant at 20

premises in Raipur.

The solar energy plant are be set up according to

the area of the premises. If the area is large, more

plants will be required to cater the energy

requirement. After installing the system in the

premises, CREDA plans to power a few industrial

units also with the solar energy.

The premises to be powered with solar energy

include Governor House, Chhattisgarh Legislative

Assembly, and Mantralaya in the new capital area,

police headquarters and others. The other

government and private buildings where the system

are to be installed include Collectorate, Chhattisgarh

State Electricity Regulatory Commission, Ambedkar

hospital, medical college, administrative academy,

headquarters of fisheries department, Divisional

Railway Manager's office, railway station, commercial

tax building, indoor stadium, Municipal Corporation

office, National Institute of Technology, Hidayatullah

Law University, Samvad Bhawan, RIT and Kanger

Valley School.

Land acquisition for the proposed 2,000 MW

thermal power plant planned by ORISSA

THERMAL POWER CORPORATION (OTPCL) is

expected to commence soon.

The project needs 2,000 acre in all, out of which

government land is 55 per cent, private land 42 per

cent and forest land comprises only three per cent.

The power project is to come up at Kamakhya

Nagar. As of now, no coal block has been allotted by

the Union Government for the project. However, it

has been decided to use the Baitarani West coal

block allotted to Orissa Hydro Power Corporation

and Mandakini-B coal block allotted to Orissa

Mining Corporation for the project. The project is

expected to commence power generation from

2015-16.

THE ORISSA GOVERNMENT on 3 January 2011

signed MoUs with Independent Power Producers (IPPs).

The state government has signed the MoUs with KU

Projects, SPI Ports and NSL Nagapatnam Power

Company. The total investment committed by these

three IPPs is `20,469.60 crore. These IPPs have a

combined power generation capacity of 3,960 MW.

The state government is likely to get around 475-

554 MW of power from these IPPs. The tariff for

the power will be determined by Orissa Electricity

Regulatory Commission.

THE BIHAR STATE ELECTRICITY BOARD (BSEB) on

6 January 2011 signed agreements with the NTPC

and Krishak Bharati Cooperative (KRIBHCO) for

setting up thermal power plants in the state.

The two power plants - one at Nabinagar in

Aurangabad and another at Chausa in Buxar, will

generate 1,320 MW each. There will be joint

collaboration of BSEB with NTPC for Nabinagar

plant. KRIBHCO will be venturing into the power

sector with its first thermal power plant at Chausa

in agreement with the BSEB. The state government

is likely to procure 85 per cent of 1,320 MW

power generated by the KRIBHCO at Chausa and

75 per cent of the total generation from the

Nabinagar plant.

THE MADHYA PRADESH POWER GENERATING

COMPANY (MPPGCL) is likely to begin work on

the Phase II of Singaji thermal power project in

Khandwa district once environmental clearances

have been received. The Phase II comprises two

units of 660 MW each and is to cost `6,500 crore.

The first phase of 2x600 MW capacity is expected

to be completed by 2012. The total land

requirement of the project is 1,232 ha of which

1,163 ha have already been acquired. Phase I entails

a cost of `6,750 crore. Of the total,`5,200 crore

debt portion will be obtained from various banks

and financial institutions. The state government will

contribute the rest 20 per cent (`1,300 crore) as

share capital.

THE KARNATAKA GOVERNMENT on 4 January

2011 signed PPAs for various power projects in the

state.

The state government signed the PPAs with NTPC,

Neyveli Lignite Corporation and Srinivasa Gayathri

Resource Recovery.

NTPC is setting up a 4,000 MW coal based power

plant at Pudimadakka in Vishakapatnam district of

Andhra Pradesh. The state government is likely to

get 600 MW of power from the plant. The state

government is to get 400 MW of power from NLC's

1,980 MW coal based power project being set up at

Sirkali in Nagapattinam district in Tamil Nadu.

Further, PPA was signed with Srinivasa Gayathri

Resource Recovery for its 8 MW waste based power

project at Manduru village in Bengaluru. The power

project is coming up at a cost of `80 crore. The

company has entered into an agreement with

Bruhat Bengaluru Mahanagara Palike to implement

the project under which the company would receive

1,000 tonne of municipal solid waste per day.

Two coal based power projects coming up in Chennai

are likely to be commissioned by end-2011.

CMYK

Electricity


Both projects - 1,200 MW (2x600 MW) North

Chennai Thermal Power Station (NCTPS) expansion

and 1,000 MW (2x500 MW) Vallur power project -

are being executed on nearby plots in Ponneri taluk

of Tiruvallur district.

Of the two units of 500 MW each in Vallur, one unit

is expected to be completed by October and

another by December 2011. The two units of

NCTPS will start generation by January 2012.

While the Tamil Nadu Government will get about 70

per cent of power generated at Vallur, it will get full

share from the NCTPS expansion project. NTPC-

TAMIL NADU ENERGY COMPANY is executing

both projects.

DAMODAR VALLEY CORPORATION (DVC) is

planning to add about 1,500 MW thermal power

capacity.

One unit of 500 MW each at the greenfield power

plants at Durgapur in West Bengal and Kodarma in

Jharkhand are to be operational by March 2011. On

completion, both the plants are expected to

generate 1,000 MW (2x500 MW) each. The plants

are scheduled to be fully operational by December

2012.

Unit I of 500 MW at Kodarma thermal power

station (TPS) has already been put in trial generation

mode. A unit of similar capacity is to be

commissioned at Durgapur Steel TPS shortly.

The Unit VII of 500 MW under the Phase II of the

Mejia TPS in Bankura district of West Bengal is

expected to be fully operational by February 2011.

JAIPRAKASH POWER VENTURES is setting up the

1,000 MW (4x250 MW) plant at a cost of `7,000

crore. The remaining three units of the plant are

likely to be completed by June 2011.

The company has tied up with Power Trading

Corporation of India to sell 80 per cent of the

electricity produced at the Karcham-Wangtoo

project.

THE PUNJ LLOYD GROUP has inked a 25-year PPA

with NTPC Vidyut Vyapar Nigam (NVVN) for sale of

power from a 5 MW PV based solar power plant to

come up at Phalodi area of Jodhpur district in

Rajasthan.

The project is being set up as part of Jawaharlal

Nehru National Solar Mission (JNNSM).

This plant is being developed by Punj Lloyd Solar

Power. The scope of work for the project will include

site preparation of approximately 35 acre,

construction of about 8,000 concrete foundations

for module mounting structures, installation of

approximately 560 tonne of mounting structures,

construction of control room, LT panel, metering

room, S/S & security room, installation of five units

of 1,050 (350X3) KW central inverters, installation

of communication & monitoring equipment and

network up to each inverter and grid interfacing and

synchronising.

The plant will be commissioned in a period of 12

months.

TEHRI HYDRO DEVELOPMENT CORPORATION

INDIA (THDCIL) has forayed into thermal energy

business.

THDCIL has already signed an MoU with the Uttar

Pradesh Government to set up 1,320 MW Khurja

super thermal power plant in Bulandshahar in Uttar

Pradesh.

Under the MoU, THDCIL will provide 60 per cent of

the power to Uttar Pradesh and sell the remaining

40 per cent to Himachal Pradesh, Rajasthan and

Uttarakhand. THDCIL has already signed PPA with

these states.

The proposed plant will be set up at an investment of

`5,500 crore by 2015. The funds for the project are to

be raised through financial institutions. THDCIL is

likely to commission 400 MW Koteshwar dam on

Bhagirathi river in Uttarakhand in February 2011.

KSK ENERGY VENTURES on 5 January 2011

commissioned the Unit III of 135 MW of Wardha

CMYK

Electricity


Warora coal based power project in Maharashtra.

The company has completed lighting up of the

boiler and steam blowing with respect to the Unit III

of the 540 MW (4x135) Wardha Warora power

project. It is anticipated that, immediately upon

completion of the evacuation permissions, the unit

will witness synchronization with the grid and

commencement of coal based power generation

from this unit as well. Thereafter, the company

intends to undertake the stabilisation and associated

test protocols.

The Unit IV of the similar capacity is likely to be

completed by March 2011.

SASAN POWER, Reliance Power's subsidiary has

acquired 236.39 acre more for the 4,000 MW

UMPP recently.

With this, the total of acquired land has reached

3,027.28 acre, or around 81.2 per cent of the land

requirement of 3,728.47 acre for the project in

Madhya Pradesh.

As per the latest figures released by the Central

Electricity Authority, around 1,879.47 acre is now

available with the company for the construction of

the main plant, against the estimated requirement

of 2,034.21 acre. Likewise, 473.69 acre has been

acquired, out of the 811.4 acre needed, for the

construction of the ash pond, while around 429.31

acre, out of the total land requirement of 448.37

acre for the residential colony, and have been

acquired.

Meanwhile, for the coal handling plant and other

important project components, such as the intake

and discharge water channels, ash pipeline, etc.,

199.10 acre, out of 235.81 acre, have been

acquired, while another 45.71 acre have been

acquired for developing coal transportation

facilities. The requirement for the fuel evacuation

system is pegged at 198.68 acre.

RELIANCE VENTURE ASSET MANAGEMENT

(RVAM), the venture capital arm of the Reliance

ADA Group, is likely to acquire a minority stake in

AllGreen Energy. The deal size is learnt to be `60-70

crore. Along with RVAM, the energy arm of GE is

also investing in AllGreen.

AllGreen plans to establish multiple biomass-based

RE projects in India within the next 10 years. The

first plant is to be located in Perundurai, Tamil Nadu,

with a total capacity of 6.4 MW. Plans are afoot to

set up two more plants in south India in 2011.

GMR RAJAHMUNDRY ENERGY (GREL), is likely to

achieve commercial operation declaration (COD) at

the Unit I 384 MW of its combined cycle power

project (CCPP), located near Rajahmundry, in the

East Godavari district of Andhra Pradesh, by

October 2011.

The second 384 MW unit is likely to be

commissioned in January 2012. The synchronisation

of gas turbine generators for the two units is

targeted for April and July 2011.

GREL has already obtained all the statutory

clearances for the project and attained financial

closure in September 2010, with IDBI as the lead

banker. It has also signed the gas transmission

agreement with GAIL for the supply of the

required fuel.

Besides, the EPC contract for the CCPP has been

given to L&T and the power evacuation network to

SEW Infrastructure, for likely completion in April

2011.

SUZLON ENERGY on 6 January 2011 signed an

agreement with Hindustan Zinc, a Vedanta Group

company, for setting up wind farms.

Suzlon is to set up, operate and maintain 150 MW

of wind farms for Hindustan Zinc, for $191 million

(approx `859.5 crore). The project is to be

completed in phased manner. These wind farms are

to come up in Karnataka, Rajasthan, Tamil Nadu and

Maharashtra.

Under the Phase I, wind farms with a capacity of 50

MW are to be set up with completion by March

2011. The second and final phase of 100 MW will

be progressively completed by September 2011.

Suzlon will be supplying a mix of its S82-1.5 MW

and S88-2.1 MW wind turbine models. The power

generated will be purchased by the respective

state's distribution utilities at the prevailing feed-in

tariff under a long-term PPA.

RELIANCE POWER (R-POWER) is learnt to have

signed the PPA with NTPC.

The said PPA has been signed with NTPC Vidyut

CMYK

Electricity


Vyapar Nigam (NVVNL) for R-Power's upcoming

100 MW solar power project at Jaisalmer in

Rajasthan.

The project is to be implemented by Rajasthan Sun

Technique Energy (RSTEPL), a subsidiary of Reliance

Power. It is slated to be commissioned by May 2013.

In December 2010, RSTEPL was awarded a LoI by

NVVNL for purchase of 100 MW of solar power

under the Jawaharlal Nehru National Solar Mission.

The sale of power was to be from the solar power

project being set up by the company in Rajasthan.

RELIANCE POWER is likely to obtain environment

clearance for its 700 MW Tato-II hydel power

project soon.

The expert appraisal committee (EAC), under the

MoEF is expected to consider the proposal over its

forthcoming meeting. Forest clearance by the

ministry is expected to be granted by March 2011.

Civil work is slated to commence by March 2011.

Also, the DPR for the project is under inspection of

the Central Electricity Authority. The project

entailing a cost of `4,045 crore is to be completed

by 2017.

SINGARENI COLLIERIES COMPANY is introducing

Longwall technology in Adriyala project,

Ramagundam in Andhra Pradesh, to enhance

underground coal production. It will have an annual

production capacity of 2.81 million tonne.

Another Longwall project with production capacity

of 2.7 million tonne is also being introduced in

Kakatiyakhani. The company produces 50 million

tonne of coal, out of which 24 per cent is from

underground mines.

LANCO KONDAPALLI POWER has achieved

financial closure for its project.

The company has mopped up a debt worth `1,827

crore for developing the 732 MW (2x366) gas

based power project in Andhra Pradesh. A

consortium of six banks and financial institutions,

with Axis Bank in the lead, are providing the debt

required for the project.

The project costing `2,610 crore will have equity of

`783 crore.

EAST NORTH INTERCONNECTION COMPANY

(ENICL), a wholly-owned subsidiary of Sterlite

Technologies, has achieved the financial closure for

its Ultra Mega Power Transmission Project (UMTP).

NICL has raised a debt of `700 crore. SBI Caps was

the sole arranger for the debt syndication.

The East-North Interconnection mega transmission

project aims to evacuate power from the North-East

and Eastern states to the Northern region of India.

It involves establishment of two 400 kV double

circuit transmission lines that will respectively

connect Assam with West Bengal and Bihar. The

lines are likely to be commissioned by March 2013.

Assam based NUMALIGARH REFINERY (NRL) on 9

January 2011 signed an MoU with Assam Power

Generation Company (APGCL) for development and

implementation of new power projects in the state.

The MoU provides for joint evaluation of new

prospective power projects by carrying out

feasibility studies and environmental impact

assessment; thereby identifying viable power

projects for possible execution. Execution of the

projects will be carried out by forming a JV

company promoted by both NRL and APGCL.

ATLANTIS RESOURCES CORPORATION, a London

based marine energy developer, along with Gujarat

Power Corporation (GPCL), has signed an MoU

with the Gujarat Government during the Vibrant

Gujarat Global Investors Summit 2011.

The companies propose to set up a 50 MW tidal

power project off the coast of Gujarat. The project

is likely to cost `750 crore with commissioning

planned for 2013. The final cost of power per unit

will be determined at the completion of front-end

engineering and design (FEED) phase.

KU PROJECTS, a fully-owned subsidiary of Ind-

Barath Power Infra (IBPIL), plans to set up a 1,320

(2x660) supercritical thermal power plant at

Pitamahul in Sonepur district at a total investment of

`7,260 crore. Construction work is expected to

commence in the first quarter of 2011 and the first

unit is likely to be commissioned within 30 months

of signing of the MoU.

Likewise, SPI Ports intends to set up a 1,320 MW

(2x660) coal based supercritical power plant at

Mahakalpada in Kendrapara district at a total

investment of `6,609.60 crore.

The company will utilise the sea water through

desalination process and use air-cooled condensers

for the proposed power plant. Similarly, NSL

Nagapatnam Power Company's 1,320 MW (2x660)

supercritical thermal power project is to come up at

Banamalipur in Angul district at an investment of

`6,600 crore. The company will draw water from

the Mahanadi river system.

US based BRIGHTON GROUP plans to set up a nuclear

power equipment manufacturing facility in India.

CMYK

Electricity


The proposed plant will be set up on 800 acre at

Nakkapalli in Visakhapatnam district of Andhra

Pradesh at a cost of `2,880 crore.

Brighton has sought SEZ status for their facility

which will be ready for commercialisation in 24-30

months. The Andhra Pradesh Government and

Brighton are likely to sign an MoU for the project in

the next two weeks.

US based SUNEDISON is planning to invest in solar

power projects in India.

The company has earmarked $100 million (approx

`450 crore) for the purpose. Currently, it is

implementing solar projects in Gujarat (25 MW),

Rajasthan (5 MW) and Uttar Pradesh (1 MW).

Also, the company is keen to raise both debt and

equity for the projects from within India.

The KONARK GROUP is likely to set up renewable

power projects in India.

The Group plans to set up 100 MW of solar and

wind power projects at an investment of `1,000

crore. It is looking at a 25:75 equity debt ratio for

the `1,000 crore capex plan. For the `250 crore

equity part, the promoters intend to bring in `150

crore, and the balance will be private equity.

The Group has received an allocation of 5 MW in

Gujarat. It has signed a 25-year PPA with the state

government. Land has been identified in Kachchh

for the project which is to use imported thin film

technology. The project is to be completed by

December 2011. Also, the Group has joined hands

with the Rajasthan Government for 50 MW of solar

power generation. The state government has

allocated about 410 acre near Jodhpur for the

project. The state government has also accorded an

evacuation certificate to Konark for 50 MW, as a

comprehensive legislation for renewable energy is

awaited.

Meanwhile, plans are afoot to set up wind farms in

Tamil Nadu. A consultant has been appointed and

the proposal is awaited.

Chennai based NAGARJUNA CONSTRUCTION

COMPANY, through its subsidiary NCC Power

Projects, has acquired a 55 per cent equity stake in

Nelcast Energy Corporation (NECL) for an

undisclosed sum.

NECL is currently developing a 1,320 MW a coal

based power project at Krishnapatnam in Andhra

Pradesh. The project is estimated to cost `6,822

crore. The power generated from the plant will be

evacuated at 400 kV voltage level to the existing

substation of power grid at Krishnapatnam. NECL

has acquired the project land and also secured all

the requisite approvals.

MACQUARIE SBI INFRASTRUCTURE FUND

(MSIF) and the State Bank Of India (SBI) on behalf

of the SBI Macquarie Infrastructure Trust are to

invest ` 580 crore in Moser Baer Power (Madhya

Pradesh)'s (MBPMPL) power plant.

MBPMPL, a subsidiary of Moser Baer Projects, is

developing a 2,520 MW thermal power plant in

phases at Anuppur with an investment of

`13,700 crore.

Phase I of 1,200 MW is likely to cost `6,240 crore.

The EPC contract for Phase I has already been

awarded to Lanco Infratech and construction at the

site has commenced. The entire project is expected

to be commissioned in phases by the end of 2014.

Project Impediments

The proposed 4,000 MW ultra mega power project

(UMPP) in Surguja district of Chhattisgarh has been

delayed by another two months.

The last date of submission of technical bids for the

project has been extended till 8 March 2011 from 7

January 2011.

POWER FINANCE CORPORATION is the nodal

agency for the project. Initially, the UMPP was

allocated two blocks at Puta and Parogia but the

MoEF refused to approve mining as the blocks lay in

forest land that has been declared as a 'no-go' area.

BHEL'S proposed three-way JV to build nuclear

turbines with Alstom has been stalled as the Union

Government has objected to the presence of NPCIL

as a partner, citing conflict of interest.

The department of atomic energy contends that

NPCIL cannot be both a buyer and supplier of

nuclear turbines, as this could hurt price discovery.

CMYK

Electricity / Roadways


The project has already secured commitments

worth over `7,500 crore to build turbines for 10

nuclear energy plants of 700 MWe each.

Project Completion

Manmohan Singh, Prime Minister of India, on 7

January 2011, dedicated to the nation a 100 tpa

capacity reprocessing plant at the BHABHA

ATOMIC RESEARCH CENTRE (BARC) in Thane

district of Maharashtra.

The plant will use spent fuel from indigenous

nuclear power plants for fast breeder reactors. The

plant is essential for the country's closed-fuel-cycle

three-stage nuclear programme. The plant is

expected to replace the existing 10 tpa facility at

BARC. The Unit IV of 220 MWe Kaiga Generating

Station (KGS-4) located in Uttar Kanada district of

Karnataka was connected to the southern power

grid on 20 January 2011.

The Atomic Energy Regulatory Board has granted

clearance to the plant of NPCIL. The installed

capacity of Kaiga station is now 880 MWe. The unit,

fuelled by indigenous uranium, will supply electricity

to Andhra Pradesh, Karnataka, Kerala, Tamil Nadu

and Puducherry.

With the synchronisation of KGS-4 with the grid,

India's nuclear power capacity has gone up to 4,780

MW, with 20 reactors in operation.

Roadways


THE UNION MOEF on 12 January

2011 gave clearance to the

construction of a 1.6 km cloverleaf

bridge at the Worli end of the

Worli-Haji Ali Sea Link in Mumbai.

The ministry approved the newly designed

alignment of the sea link's Haji Ali connector that

will now land on Dr Annie Besant Road, 400 mtrs

ahead of the dargah square.

Despite two carriageways of the sea link being

commissioned more than a year ago, commuters

could not use the full eight lanes of the 4.7 km link.

This is because the North-bound carriageway did not

have its own landing at Worli. The proposed

connector (cloverleaf bridge) will end at Worli close

to Thadani junction - a little further from the current

connecting bridge on north side. The construction of

the bridge is part of the Worli-Haji Ali sea link project.

Reliance Infrastructure (R-Infra) is likely to begin work

by March 2011 with completion slated for 2014.

The work on five major National Highway (NH)

projects in Orissa is likely to commence in February

2011. They are Bhubaneswar-Puri; Bhubaneswar-

Sambalpur; Bhubaneswar-Chandikhole; Sambalpur-

Bargarh and Rimuli-Rajamunda road projects.

While work on four-laning of the 60-km

Bhubaneswar-Puri highway is expected to be

completed soon, the remaining projects will be

commissioned within three years. The work is being

taken up on the PPP mode and the cost assessment

will be made by NHAI.

The Sambalpur-Bargarh (88-km) and Rimuli-

Rajamunda (106 km) highways will be four-

laned while the Bhubaneswar-Sambalpur and

Bhubaneswar-Chandikhole (62 km) highways will

be six-laned.

THE PUBLIC PRIVATE PARTNERSHIP APPRAISAL

COMMITTEE (PPPAC) under the Union Ministry of

Finance has approved highway projects worth

`11,000 crore.

The PPPAC has cleared the Jabalpur-Bareilly-

Rajmarg-Jabalpur circular highway running through

Madhya Pradesh and Uttar Pradesh. The project

covering a distance of 290 km may require

investment worth `2,445 crore.

The Ahmedabad-Vadodara Expressway spanning

103 km is expected to cost `2,381 crore.

The Eastern Peripheral Expressway, from Kundli in

Uttar Pradesh on the outskirts of New Delhi on

National Highway I, passing through Baghpat in

Haryana, bypassing Ghaziabad, Noida, Faridabad

CMYK

Roadways


and terminating at Palwal in Haryana, covering 135

km and costing `2,698 crore, has also been cleared

by the committee.

Further, the PPPAC approved the Beawer-Pindwara

highway in Rajasthan, the Nagpur-Wainganga

Bridge highway in Maharashtra, the Walajahpet-

Poonamallee highway in Tamil Nadu. The Union

Ministry of Road Transport and Highways is likely to

award these projects by March 2011. The RFP

process for these projects is over and parallel

financial bidding is underway.

THE WORLD BANK (WB) on 14 January 2011

inked an agreement with the Government of India.

WB will extend a $1.5 billion loan (approx `6,750

crore) for building 24,000 km of all-weather roads

in rural areas. The project will also be partly funded

by the Government of India.

The loan will be used to fund the Pradhan Mantri

Gram Sadak Yojana (PMGSY) in seven economically

poor areas of Uttar Pradesh, Himachal Pradesh,

Jharkhand, Meghalaya, Punjab and Uttarakhand.

Other states may also be included in the

programme in the next five years.

THE KARNATAKA ROAD DEVELOPMENT

CORPORATION (KRDCL) has taken up the

development and upgradation of 1,800 km of roads

under the Mega Road Development Programme in

the Hyderabad-Karnataka region.

The development of the road network was taken up

by the state government through PPP. The KRDCL

had conducted a feasibility study and taken up work

on 15 roads after inviting for tenders. The 15 link

roads include Tavargera-Kanakagiri-Gangavathi

(42.9 km), Tavargera-Sindhanur (41.1 km),

Kushtagi-Tavargera (23.2 km), Mudgal-Tavargera

(31.3 km), Gangavathi-Kampli-Kudithini (41 km),

Tintini-Chinchodi-Jalahalli-Kasargod-Devadurg

(32.3 km), Devadurg-Masarkal-Gobbur-Kalmala,

Talikot-Hunasagi-Devapur (48.6 km), Chowdapur-

Gulbarga (32.7 km), Afzalpur-Chowdapur (22.3

km), Maharashtra border near Hosur to Afzalpur

(44.3 km), Bidar-Ekhelli (28 km), Ekhelli-Chincholi

(33.5 km), Mundargi-Hadagali (24 km) and

Hadagali-Harapanahalli (27.7 km).

THE MAHARASHTRA COASTAL ZONE

MANAGEMENT AUTHORITY (MCZMA) has

approved the MMRDA's Eastern Freeway project in

Mumbai.

MCZMA has cleared the `531 crore project that will

overrun mangrove land. The authority has allowed

the MMRDA to cross the Mahul creek, mangroves

near Bhakti Park in Wadala and the adjoining BPT

pipeline for the Anik-Panjarpol Link Road.

The 22-km corridor will be completed in three

phases: the first 12-km-stretch from Fort to Anik

depot, the second 5-km-phase from Anik to

Panjarpol, and third 2.5-km stretch from Panjarpol

to Mankhurd and then to Ghatkopar on the Eastern

Express Highway.

The Uttar Pradesh Government has accorded

approval to go ahead with the proposed eight-lane

Upper Ganga Canal Expressway project.

THE UTTAR PRADESH EXPRESSWAYS

INDUSTRIAL DEVELOPMENT AUTHORITY

(UPEIDA) has invited tenders which will be opened

on 31 January 2011 after being shortlisted to six

contenders. The 212-km expressway flanking the

Upper Ganga Canal is proposed from Sanauta

Bridge in Greater Noida to Purkazi on the Uttar

Pradesh-Uttarakhand border. It is to cost `8,450

crore.

As many as 12 entities have evinced interest in the

bus terminals project in Uttar Pradesh.

The companies which have bid for the project

include Flora and Fauna Housing Development,

Mega Engineering, Ramky Infrastructure, Pacific

Developers, NKG Infrastructure, DSC Constructions,

MSK Projects, SPML Infra, Vijai Infrastructure, C &

C Constructions, SEW Infrastructure and PNC Infra

Tech.

In all, 226 bus stations are spread over 390 acre and

in order to provide better facilities such as hotels,

shopping malls and other facilities at the bus

terminals, the state government has decided to

grant a maximum floor area ratio (FAR) of up to 250

per cent and maximum ground coverage

permissible up to 30 per cent. In end-December

2010, UTTAR PRADESH STATE ROAD

TRANSPORT CORPORATION had invited RFPs to

get the bus stations commercially modernised and

re-developed under the PPP model on the DBFOT

basis.

The project cost is estimated at `3,090 crore. The

developer will be responsible for conceptualising

and operating the premises by building bus station-

cum-commercial complexes at these sites for a lease

period of 36 years.

THE UTTAR PRADESH STATE HIGHWAYS

AUTHORITY (UPSHA) has short listed 14

individual/consortium companies for upgradation of

Delhi-Saharanpur-Yamunotri road project in Uttar

Pradesh.

CMYK

Roadways


The shortlisted companies are - Infra-13 Leighton

Contractors India Consortium, L&T Infrastructure

Development Projects, GVK Transportation, Punj

Lloyd Infrastructure, IL & FS Transportation

Networks, Madhucon-KSS Consortium, DSC,

Shapoorji Pallonji & Company, KMC Construction,

VIL-SREI-JMC (Consortium), Oriental Structural

Engineers, PNC-BFUL-SMSIL Consortium, Sew-

Prasad Consortium and, Ramky Infrastructure.

These companies have been asked to submit

financial bids by 31 January 2011, thereafter work

order is to be issued. The project envisages

upgradation/maintenance of Delhi-Saharanpur-

Yamunotri Road on SH-57 from Ch 10.911 to Ch

217.00 on DBFOT basis in the state.

THE UTTAR PRADESH STATE HIGHWAYS

AUTHORITY (UPSHA) has shortlisted six companies

for upgradation of Varanasi-Shaktinagar road in

Uttar Pradesh.

The shortlisted companies are - Infra-13 Leighton

Contractors India Consortium, L&T Infrastructure

Development Projects, GVK Transportation, Punj

Lloyd Infrastructure, IL & FS Transportation

Networks and, Reliance Infrastructure.

The shortlisted have been asked to submit financial

bids. The RFQs are likely to be opened soon. The

project envisages upgradation/maintenance of

Varanasi-Shaktinagar road on SH-5A from Ch 0.00

to Ch 117.65 and Ch 166.13 to Ch 183.94 on

DBFOT basis in the state.

THE MMRDA's Santacruz-Chembur Link Road in

Mumbai is likely to be ready by June 2011.

The 6.5 km long link road will not only connect the

eastern and western suburbs but also ease travel to

Navi Mumbai. The road is set to have a double-deck

bridge to help disperse traffic smoothly at Kurla and

then at Chembur. It is expected to cut travel time

between Santacruz and Chembur from around two

hours to 17 minutes.

The link road is expected to be ready at a cost of

`242 crore. When mooted in 2003 under the

Mumbai Urban Transport Project, the link road was

to be originally to be built at a cost of `127 crore

with a deadline of 2005. But it faced hurdles with

issues over rehabilitating the project-affected

people and subsequent suspension of funding by

the World Bank.

Work on the bridge for metro over the railway line

at Andheri from East to West is likely to be

commenced shortly by the MMRDA.

MMRDA has received approvals from the Railways

for the project as the bridge would be passing

through its jurisdiction. The 183-mtrs long bridge

will be constructed in three spans of 61 meter each.

The fabrication work of one span is already over and

the rest is in progress.

A 50:50 JV between RAMKY INFRASTRUCTURE

and IL&FS TRANSPORTATION NETWORKS has

tied up funds with respect to the debt syndication of

` 1,060 crore through Canara Bank.

The consortium had bagged a project from the

Andhra Pradesh Road Development Corporation for

four-laning (212.5 km) of the existing two-lane

stretch from Narketpally to Addanki and

Medarametla road on state highway-II. The cost of

the project is `1,760.53 crore. The concession

agreement for the project, to be executed under

DBFOT format, was signed on 23 July 2010. The

project has a concession period of 24 years,

including the construction period of 910 days.

FEEDBACK VENTURES, the infrastructure services

firm, on 14 January 2011 signed a deal with Brisa,

Auto-estradas de Portugal. The deal was inked for a

JV providing operations, maintenance and tolling

services in the highways sector. Feedback Ventures

will have a 60 per cent stake in the JV company -

Feedback Brisa Highways OM&T - while the

remaining 40 per cent will be with Brisa.

GVK Power & Infrastructure arm has mopped up

funds for a road project in Rajasthan.

GVK DEOLI KOTA EXPRESSWAY (GVKDKEPL), a

subsidiary of GVK Power, on 5 January 2010 signed

the financing document with a conglomerate of

lenders for revamping the existing Deoli-Kota

section of National Highway.

The project estimated to cost is `823.4 crore is to be

financed by equity of `164.7 crore and term loan of

`658.7 crore. The four-laning project on NH No-12

CMYK

Roadways / Railways


is being executed under the DBFOT basis. The

concession period for the project is 26 years

including construction period of 30 months.

Civil work on five more radial roads totalling nearly

60 km along different corners of Hyderabad is likely

to commence soon.

HYDERABAD GROWTH CORRIDOR (HGCL), a JV

company of the Hyderabad Metropolitan

Development Authority and Infrastructure

Corporation of Corporation, created to execute the

work of 158 km long Outer Ring Road (ORR), is

preparing the ground for these five radial roads at

Jeedimetla, ECIL X roads, Nagole junction, Shaikpet

and Mettuguda.

A total of 33 radial roads have been proposed at a

cost of `2,500 crore and the Japan International

Cooperative Agency which is providing funds to

parts of the ORR has also agreed to provide

assistance to the tune of `380 crore for these roads.

Some of these stretches including two at Gachibowli

and Rajendranagar have already been attended to

and work is on to provide connectivity from Inner

Ring Road to ORR at Nagarjunasagar, Srisailam and

Vikarabad. HGCL has invited tenders for consulting

services for supervision of strengthening and

widening of radial roads running to 60 kms and split

into five packages. These stretches are 8.50 km

from Jeedimetla to Saragudem, 10.20 km from EXIL

X roads to Cheriyal X roads, 15 km from Nagole

junction to Gourelly X roads, 6 km from Shaikpet to

Kokapet and 18 km from Mettuguda to

Jawaharnagar.

Project Impediment

The six-laning of the Mysore-Bengaluru Outer Ring

Road project has been delayed.

The project being executed by MYSORE URBAN

DEVELOPMENT AUTHORITY has missed the

deadline of February 2011 and will now be

completed in May 2011. The project is being

executed at a cost of `230 crore.

The road to be upgraded under Package I of the

project will cover a distance of 24.715 km on the

western side from Mysore- Bengaluru Road to

Mysore-Nanjangud Road and 7.5 km on the eastern

side to Mysore-Bannur Road. Package II entails the

construction of a service road from Mysore-

Bengaluru Road to Mysore-Nanjangud Road

starting from 7.00 to 15.0 km. Package III will cover

the service road from 15.00 to 24.715 km on

western side. The project also comprises service

roads from 0.00 km to 7.0 km on western side.

Railways &Urban Transportation


THE UNION GOVERNMENT on 21

January 2011 approved the Jaipur

metro project in Rajasthan.

The government has sent the

approval letter to Urban

Development Department of Rajasthan. The letter

will help the concerned authorities in acquiring land

and granting further approvals for the project.

The Phase I of 9.25 km route from Mansarovar to

Chandpol and the Phase II of 23 km from Panipech

to Sitapura industrial area will be completed on

PPP model.

THE UNION GOVERNMENT has given in-principle

approval to the proposed high speed rail link project

between Bengaluru and its new international

airport. The Government has agreed to modify the

Metro Railways (construction of works) Act, 1978

to cover parts of Bengaluru that do not currently fall

within the Greater Bengaluru municipal region.

Under the existing laws, railway projects outside

city municipal limits are the prerogative of the

Indian Railways. Now, the decision to modify the

Act will put Bengaluru alongside Kolkata and New

Delhi - where railway projects outside the

metropolitan city limits have been implemented by

agencies other than the railways.

The Government will give viability gap funding to

the extent of `1,047 crore. It will now be a key

partner in Bangalore Airport Rail Link, the

implementing agency for the `6,689-crore project.

THE CENTRAL RAILWAY (CR) and the Mumbai

CMYK

Railways


Port Trust (MbPT) are developing an elevated rail

corridor between Kurla and Wadala.

The 5.66 km new Kurla-Wadala line will be linked to

the 1,483 km national dedicated freight corridor of

the western region which is being built between

Mumbai's Jawaharlal Nehru Port and Dadri in Uttar

Pradesh. It will be partially elevated.

The proposed project is estimated to cost `104

crore. The CR and the MbPT have already signed an

MoU for the project.

SAIL on 15 January 2011 has signed an MoU with

Indian Railway Construction (IRCON) International.

The MoU has been signed for jointly working on

public-public and PPP projects of the Indian

Railways, as well as participating in rail

infrastructure projects in developing countries.

Currently, SAIL is in the process of identifying

definitive projects in India and overseas.

Once the projects are identified, specific JV

agreements will be signed for each venture by both

the companies. IRCON has already identified a

number of projects in which both the companies

can participate jointly.

The two parties are yet to decide on the quantum of

investments.

The Phase III Delhi metro network has been

extended further from 70 to 105 km based on the

suggestions of the Delhi Government.

The DMRC has now realigned some of the

corridors. Now, the metro will be going into outer

Delhi areas like Bawana as well as touch Jamia Milia

Islamia University. The Phase III is expected to cost

`28,000 crore for the Delhi extension, and is

expected to be completed by March 2016. The

extension into Faridabad will cost `3,000 crore more

while that into Ghaziabad and Bahadurgarh will be

an additional `12,000 crore.

The major corridors in this phase include Yamuna-

Mukundpur, covering 46 km while the Kalindi Kunj-

Janakpuri stretch will be 32 km. The Central

Secretariat-Kashmere Gate will be covering 9.5 km

and the Jehangirpuri-Badli line will cover 5.5 km.

the biggest addition is the line to Jamia Millia Islamia

university, which will extend from Nehru Place and

will cover Outer Ring Road. Kalkaji will be the

interchange station on this line.

The DMRC is likely to float global tenders for the

proposed Phase-III metro expansion in April 2011.

The Phase-III project has been approved in-principle

by the Delhi Government in October 2010 and

DMRC is expecting a final nod from the state by

March or April 2011.

The project spanning 69.57 km will have six

corridors from Anand Vihar in East Delhi to Dhaula

Kuan in Southwest Delhi; from Noida to Malviya

Nagar; Jahangirpuri to Badli; from West Delhi's

Ashok Park to Delhi Gate in Central Delhi; Central

Secretariat to Red Fort and Mukundpur to Rajouri

Garden.

The project is expected to cost `21,468 crore.

DMRC has suggested that the metro rail can go

underground between Nehru Bridge and

Ahmedabad railway terminus in Kalupur in Gujarat.

DMRC has made the suggestion in the DPR that it

has submitted to the state government. The cost of

the entire metro rail project is estimated to be

around `12,000 crore.

DMRC has proposed a complete elevated metro rail

system for the city, barring the stretch from Nehru

Bridge to Kalupur passing from Relief Road. Heavy

passenger traffic on Relief Road, growing traffic

concerns and space constraints in Ahmedabad are

the reasons for going underground.

Further, it has also planned to change the alignment

of the rail. It says that the proposed 10.9 km East-

West metro line could be from the Income Tax,

Shahpur Darwaza, Delhi Darwaza , Prem Darwaza,

Kalupur to Relief Road. Now, the metro will run

from Nehru bridge to Kalupur via Relief Road. The

new alignment will pass from Thaltej, Gurukul, Vijay

Crossroads, Gujarat University, Commerce

Crossroads, CG Road and Nehru Bridge.

The Planning Commission has suggested that the

DELHI DEVELOPMENT AUTHORITY (DDA) should

fund the Phase III of Delhi metro.

The commission is of the view that the DDA should

fund the project along with the state and the Union

Government to lessen their financial burden. It

believes that the proportion of investment for the

Phase III, which envisages connecting another 65

km of Delhi through metro service, should be

increased by the state and the Union Government,

which jointly own DMRC.

The Planning Commission plans to increase the debt

equity ratio for DMRC's Phase III to 50:50

compared to 70:30 during the first two phases.

Currently, 70 per cent of the project cost is met

through loans from agencies like Japan International

Cooperation Agency and other banks and the rest

30 per cent is equally shared by the state and the

Union Government.

The on-going broad-gauge conversion works in the

CMYK

Railways


Mayiladuthurai-Tiruvarur section of Tamil Nadu has

been put on fast track. The project is slated to be

completed by June 2011.

This project to lay BG track to a length of 38 km, is

being executed by the construction wing of the

SOUTHERN RAILWAYS at an outlay of `210 crore.

It involves construction of two crossing stations,

two halt stations, 19 major bridges and 193 minor

bridges. There will be 22 manned level crossings

and 10 unmanned level crossings.

THE TAMIL NADU GOVERNMENT proposes to

add new lines to the 45-km Chennai Metro Rail

project. In Phase II, a project study is likely to be

undertaken on establishing new lines linking

Moolakadai-Thirumangalam; Moolakadai-

Thiruvanmiyur and Luz- Poonamallee via

Iyyapanthangal.

The Moolakadai-Tirumangalam line will pass

through Red Hills, Ambattur and Mogappair while

the Moolakadai-Tiruvanmiyur line will pass through

Perambur, Kilpauk, Gemini and Luz. The line from

Luz to Poonamallee will cross Teynampet, T Nagar,

Vadapalani, Saligramam and Iyyappanthangal.

THE KERALA GOVERNMENT plans to select a

consultant to undertake a detailed feasibility study

for the proposed North-South high speed rail

corridor in the state. The study for the project

linking Thiruvananthapuram in the south with

Manjeswaram in Kasaragod district in the north, is

to be conducted with the support of the Kerala State

Industrial Development Corporation and the

DMRC. As per sources, the project is likely to entail

an investment of `50,000 crore.

THE MMRDA plans to extend the Mumbai metro

rail route to as far as Dahisar.

The route planned from Versova to Ghatkopar will

end at Mankhurd, while the one that was to

terminate at Charkop will be extended till Dahisar.

The extensions will cost the MMRDA an additional

`3,500 crore.

At present, more than 75 per cent work on the

Versova-Ghatkopar stretch is completed and the

line will be ready by October 2011.

THE MMRDA is mulling over the option of securing

loan for the Metro Line-3 from Japanese

International Cooperation Agency (JICA).

The line extends from Colaba to Bandra and will

cost `12,000 crore. The MMRDA is considering this

following the Union Government's decision to turn

down proposal for viability gap funding.

The 20-km long corridor is now likely to be based on

the Delhi Metro Model, in which the government

will fund 19 per cent equity and Maharashtra

Government/MMRDA will fund 21 per cent. The

rest 60 per cent will be loan from JICA.

SPAN CONSULTANT has been selected by the

MMRDA for preparation of DPR for the Ghatkopar-

Mankhurd Metro corridor.

The consultant has already submitted the inception

report and will prepare the DPR in a span of four

months. The 7-km long corridor will connect the

Metro line 1 (Versova Andheri Ghatkopar) and

Metro line 2 (Charkop Bandra Mankhurd).

The proposed alignment for the corridor is from

Ghatkopar station (East) near the ROB, extending

further to Chembur-Mankhurd Link Road at Chedda

Nagar junction near Eastern Express Highway, and is

to end at Mankhurd station to integrate with the

suburban line (Harbour) as well as Metro line 2.

Project Completion

DMRC on 14 January 2011 opened the Sarita

Vihar-Badarpur section of transit system, thus

adding another five km to its network in Delhi.

The inaugural run was conducted in the stretch

comprising three elevated stations - Mohan Estate,

Tughlakabad and Badarpur. This stretch will be

beneficial to the commuters of south Delhi localities

such as Mohan Estate, Tughlakabad and Kalindi

Kunj as well as the satellite town of Faridabad in

Haryana, which is adjacent to Badarpur.

With the opening of this section, the footfall of the

entire Central Secretariat-Badarpur corridor is

expected to increase by another one lakh. Currently,

the total footfall on the Central Secretariat-Sarita

Vihar corridor is approximately 1.25 lakh. Now, the

CMYK

Railways / Shipping Infrastructure


Central Secretariat-Badarpur corridor will be 20.16

km long with 16 Metro stations.

Envisaged Completion Of Project

DMRC's Airport Express Line is likely to begin

operations in Delhi, shortly.

Statutory safety inspection for the line is to be

conducted soon. Once the safety clearance is

obtained, it will take less than a week to open the

line for the public. The trains are to run at 120

kmph.

The Reliance Anil Dhirubhai Ambani Group's Delhi

Airport Express (DAMEPL) will run and maintain the

line, which will reduce travel time between the New

Delhi and the Indira Gandhi International Airport to

20 minutes. DMRC had bid out the line to the

DAMEPL on PPP. DAMEPL will hand over the line to

DMRC after running it for 30 years.

Initially, there will be four stations - New Delhi,

Shivaji Stadium, IGI Airport and Dwarka Sector 21.

Later, two stations, Dhaula Kuan and NH-8, will be

added to the line.

Shipping Infrastructure


A total of 29 projects with an outlay

of `10,000 crore, are to be taken

up at Chennai Port in various

stages.

The proposed investments will be

made for a new mega terminal, an RO-RO terminal

and connectivity projects, among others. Upon

completion of these projects, the port's capacity is to

be ramped up from the current 61 to 140 million

tonne in the next 10 years. GK Vasan, Minister of

Shipping, Tamil Nadu, on 19 January 2011, laid the

foundation stone for the Chennai port-Ennore road

connectivity project. The `600-crore project will be

completed in the next two years. Of the total cost,

`250 crore is to be contributed each by the NHAI

and the CHENNAI PORT TRUST while `58.20 crore

will come from the Tamil Nadu Government and rest

by Ennore Port.

The upgradation plan of the Gopalpur port in

Ganjam district of Orissa is likely to get approval

from the Union MoEF soon.

The `2,500 crore project has been hanging in fire

owing to the environmental concerns. The green

activists allege that the project will affect the mass

nesting of Olive Ridley turtles at Rushikulya river

mouth.

GOPALPUR PORT (GPL), a SPV formed by Orissa

Stevedores, Sara International and Hongkong based

Noble Group, had signed an MoU with the state

government to develop the defunct seasonal port at

Gopalpur into a major all weather port in phases.

However in May 2010, the Noble Group exited the

project. GPL has already announced financial

closure for `1,400 crore Phase I work and signed

the loan agreement with a consortium of 11 banks.

Out of `1,400 crore, a sum of `848.78 crore is the

loan component while the rest will be raised from

the promoters and internal. The upgradation plan

envisages construction of at least three berths to

handle about five million tonne of cargo in the

Phase I.

THE KOLKATA PORT TRUST (KoPT) has drawn up

a `6,000-crore investment plan.

KoPT has proposed new port facilities at Sagar,

Diamond Harbour and Haldia Dock II with an aim to

begin work on these facilities shortly. RITES is

carrying out the feasibility study for Sagar port

proposed to be built on 2,000 acre reclaimed land

with most of the facilities of the port to be built in

the PPP mode.

THE KOLKATA PORT TRUST (KoPT) is likely to

invite EoIs from private entities for its new

dock system, Haldia Dock II at Salukkhali, by

March 2011.

The project will come up on PPP mode. Once the

whole process of awarding the project is over, work

is likely to start immediately.

The project will have four jetties, which will increase

the capacity of the port to 20 million tonne at an

investment of about `1,000 crore. The project is

expected to be commissioned by 2012-13.

CMYK

Shipping & Aviation Infrastructure


MARG expects its proposed shipyard-cum-minor

port at Mugaiyur to be functional by 2012.

Currently, the company is awaiting environmental

clearance. The company has invested about `900

crore in the project at Mugaiyur on the East Coast

Road in Tamil Nadu.

MARG was also planning expansion of the Karaikal

Port and under Phase II it will add two more berths

at an estimated cost of `1,569 crore.

ENNORE PORT is mulling to mobilise funds to part-

fund its expansion plans.

The company is likely to raise around `400 crore

through a private placement of shares. Also, it is

exploring the option of an initial public offering.

The proceedings are to be used to create

infrastructure like dredging and connectivities. Of

the three dredging projects, one project worth `92

crore is already completed and two more projects

worth `640 crore are in the pipeline. Besides, the

port is also creating infrastructure to handle cars for

the export markets, with an investment of around

`110 crore.

VIZHINJAM INTERNATIONAL SEAPORT (VISL)

has received 14 initial bids for development of a

port project in Kerala.

The companies which have evinced interest in the

project include Reliance Infrastructure, GMR

Infrastructure, GVK Power and Infrastructure,

Gammon Infrastructure Projects, Mundra Port,

Essar, Global Yatirim Holding and STFA consortium

(Turkey); Jaiprakash Associates; Patel Engineering

and Limak (UK) consortium, Sterlite Industries,

consortium of Shipping Corporation of India, SKIL

Infrastructure, HCCL; consortium of Welspun

Infratech and Leighton Contractors; Nagarjuna

Construction Company and Condor Brookfield

Consortium.

The names of the qualified developers are expected

to be announced on 19 January 2011. The project

to be implemented on BOT basis, is to be developed

in a phased manner. The Phase I of the project is

estimated to cost `2,620 crore, out of which, `970

crore is to be borne by the private party/consortium

for the port superstructure. The remaining `1,650

crore in civil infrastructure will be provided by the

Kerala Government through an EPC contract, to be

bid out in early 2011. The port will have an initial

capacity of 2.38 lakh TEUs in the first year of

operations.

VISL is likely to raise the funds through a consortium

of banks led by the State Bank of Travancore. The

VISL Board on 10 January 2011 met to approve the

funding plan proposed by SBI Caps.

NAVAYUGA ENGINEERING, the Hyderabad

headquartered company, aims to complete the DPR

by October 2011 for its proposed port project in

Orissa.

The company plans to set up an all-weather, multi-

user port at Astaranga in Puri district for which it

recently inked a concession agreement with the

state government. The DPR will have an accurate

assessment of the land needed for the project and

the employment opportunities to be created by the

port. The port is to have a draft of 20 mtrs and

vessels up to 170,000 DWT can call at the port. It is

to be executed at a cost of `6,500 crore with an

initial capacity of 25 million tpa which will be

eventually scaled up to 70 million tpa. The project is

being implemented on BOOST basis.

In Phase I, the company will have four berths and

ultimately, it will be scaled up to 25 berths. The port

will become operational within 48 months of

allotment of land.

THE MMRDA has appointed a consultant for its Ro-

Ro Service. i-Maritime Consultant is expected to

prepare the DPR for Ro-Ro Service between Ferry

Wharf and Mandva (Old RCF Jetty). The consultant

is expected to complete the DPR by February 2011.

The ferry service will provide faster connectivity to

commuters travelling from Ferry Wharf to Alibaug,

Wadkhal Naka and Konkan.

Aviation Infrastructure


THE AIRPORTS AUTHORITY OF

INDIA (AAI) is likely to acquire land

for a new taxiway at the Sardar

Patel International Airport in

Ahmedabad, Gujarat.

A new taxiway is expected to help the airport increase

its landing and takeoff capacity. Currently, the

Ahmedabad airport can handle 12 aircraft an hour.

The AAI has sought 65 acre from the state

government. The state government has promised to

give around 22 acres of its land free of cost to the

AAI, but for the remaining land, which is to be

acquired from private parties, the government is

demanding that the AAI pay the amount.

The AAI will have to allocate `100 crore for

acquiring the land from private parties and another

`50 crore for development of the taxiway.

CMYK

Aviation Infrastructure


Bhupinder Singh Hooda, Chief Minister of Haryana,

announced that the state government plans to set

up an international cargo airport in the NCR region.

A total of 3,000 acre has been identified for the

project at Bhaini Maharajpur and Bhaini Bhairon

villages. THE AIRPORTS AUTHORITY OF INDIA

has conducted the site survey and given its

approval. Application has been filed with the Union

Ministry of Civil Aviation for formal approval of the

project.

The Union Ministry of Civil Aviation is mulling to

put the upgradation and modernisation of the Juhu

airport in Mumbai on fast track.

THE AIRPORTS AUTHORITY OF INDIA (AAI),

which operates this airport, had submitted a study

by a consultancy firm KPMG suggesting a PPP

model for upgradation work. As per the AAI

proposal, modernisation and expansion of Juhu

airport under PPP may require an investment of

around `200 crore. The project envisages extension

of the runway. To begin with, the runway is likely to

be extended from 4,000 ft to 5,500 ft for

accommodating private jets. The airstrip is likely to

be extended into the sea to avoid environmental

clearance issues.

The AAI wants to shift 20 flight movements per

hour for General Aviation (private jets) to Juhu.

Initially, 50 GA flights will be shifted to this airport

from Chhatrapati Shivaji International Airport.

THE AIRPORTS AUTHORITY OF INDIA (AAI) is

undertaking expansion projects at the Chennai

airport. The proposed expansion is estimated to cost

around `2,015 crore.

The first is the expansion of the runway and apron

capacity. The secondary runway, now 6,840 ft long,

will be extended by 1.03 km, including the bridge

over the Adyar and the parallel taxi track. The

handling capacity will go up to 40 aircraft

movements an hour from 30, besides there will be

14 aircraft additional parking bays. The

international terminal building is being expanded

by 59,300 sq mtrs to accommodate an additional

four million passengers per annum. A new domestic

terminal building is being built with an area of

67,700 sq mtrs to handle 10 million passengers per

annum. While the domestic terminal building is

slated to be ready by August 2011, the

international terminal will be operational by

September 2011.

Also, the AAI is likely to develop a car park on PPP

basis for 1,200 cars spread over three basement

levels.

The proposed Navi Mumbai international airport

project has been put on fast track. The Maharashtra

Government has urged the CITY AND INDUSTRIAL

DEVELOPMENT CORPORATION (CIDCO) to

complete the necessary legwork by end-2011 so

that the actual construction can begin from January

2012. CIDCO has been told to invite global tenders

by June 2011 so that contract can be granted by

December 2011.

The project entails an outlay of over `15,000 crore

and the first phase is expected to be operational by

end-2014 or early 2015.

Project Impediment

The completion of AIRPORTS AUTHORITY OF

INDIA'S new terminal building of the Chandigarh

airport has been delayed further.

The terminal which was slated for completion in

December 2010 is now likely to take another four to

five months to complete. The new terminal building

will have a capacity to handle 500 passengers at a

time. The terminal building, with an area of about

12,150 sq mtrs, will be fully air-conditioned, have

modern passenger facilities, three aerobridges,

visual docking guidance system, escalators,

elevators, baggage conveyor belts and so on.

Envisaged Completion of Project

The new integrated terminal at NSC Bose

International Airport in Kolkata is likely to be ready

during 2011.

THE AIRPORTS AUTHORITY OF INDIA (AAI) is

likely to operationalise the new integrated terminal

by end- December 2011. The new terminal will be

ready by October 2011 and the airport is to become

fully operational by end-2011.

An additional space of 600 sq mtrs is to be created

CMYK

Hotels & Restaurants


for setting up two additional security check

counters. This will help reduce the check-in time of

passengers at the airport. The AAI is planning to

introduce In-line X ray at the integrated terminal

complex of the airport for the benefit of the

passengers.



The IHHR HOSPITALITY GROUP

plans to set up hotels across India

by 2016.

The Group has earmarked `750

crore for the purpose. It intends to

open hotels at Nagpur and Navi Mumbai

(Maharashtra), Coimbatore (Tamil Nadu), Jaipur

(Rajasthan) and Ahmedabad (Gujarat). These hotel

properties are likely to come up under the brand

'Ista Hotels'.

Meanwhile, the Group has launched a hotel

property under the brand 'Ista' in Pune with the total

investment of `200 crore. It has 209 rooms,

including 12 suites, two restaurants, a spa facility

and a lounge bar. The Group also owns and

promotes a spa destination under the brand name

'Ananda' in the Himalayas.

THE IHHR HOSPITALITY GROUP is planning to set

up spas across India.

The Group is building a spa at Jaipur in Rajasthan

and near Puri in Orissa. It already has its Ananda

Spa in the Himalayas.

The Orissa project is to be a greenfield property

located between Chilka and Puri. However, the

project is still at the evaluation stage.

The Ananda Destination Spa at Jaipur is to come up

on 36 acre. The Group is likely to invest `150 crore

in the project which is to be funded equally through

internal accruals and debt. The spa with 77 villas

and room clusters is to be launched in 2012.

HILTON WORLDWIDE plans to add five to seven

properties in India every year.

The company presently has just three operational

hotels in the country, i.e. two in New Delhi and one

in Mumbai. During 2011, plans are afoot to open

six to seven new hotel properties which will add a

room inventory of 1,200. The hotels are likely to

come up in Chennai, Bengaluru and Gurgaon.

HILTON WORLDWIDE on 1 January 2011 took

over the management of Le Royal Meridien

Mumbai. DB Hospitality, which owns the 171-room

boutique five-star deluxe hotel, near the

international airport, signed a management contract

of 10 years with Hilton. Now, the property will be

managed under the brand 'Hilton'.

With this development, the company has three

properties in India namely Hilton Mumbai

International Airport, Hilton New Delhi/Janakpuri

hotel and Hilton Garden Inn New Delhi/Saket.

THE ITC WELCOMGROUP has chalked out capex

plan to increase room inventory by 2013.

The Group plans to invest around $2 billion (approx

`9,000 crore) for the purpose.

The Group plans to develop two ITC Luxury

Collection hotels - one a 600-room hotel in Chennai

and a 400-room hotel adjacent to ITC Sonar in

Kolkata. It is likely to develop properties across its

four categories - luxury hotels (under ITC prefixed

brands), business class hotels (under the

WelcomHotels brand), budget hotels (Fortune

Hotels brand) and heritage properties

(WelcomHeritage).

CHOICE HOTELS plans to open around 60 hotels in

the country over the next three years. The company

proposes to open 20-30 hotels every year in India.

These hotels will be a mix of both company as well

as franchised model.

In 2011, it plans to open 14 hotels mainly in Tier II

cities. Currently, the company operates 28 hotels in

the country through the franchise route. The hotel

chain operates across five brands; Sleep Inn,

Comfort Inn, Quality Inn, Clarion and Cambria.

FORTUNE PARK HOTELS, a subsidiary of the ITC-

Welcomgroup Hotels, plans to launch a hotel

CMYK



property in Mysore, Karnataka.

The hotel - Fortune JP Palace - is to be positioned in

the mid-market to upscale segment. It is likely to

have a total of 108 rooms, including 99 standard

rooms and Fortune Club rooms and nine suites.

Fortune Park Hotels has made no investment in the

property but has taken the operation and marketing

route. The JP Group has provided the land, building

and Fortune Park Hotels is expected to bring in

personnel and operate the hotel.

AMBUJA REALTY is mulling to develop a theme-

based boutique hotel in Kolkata.

The hotel is to come up on four-bigha (80 kottas)

'Basu Bati' (House of the Basus) in Kolkata. However,

the company did not disclose the investment details

of the project.

Basu Bati was declared as a heritage building by the

Kolkata Municipal Corporation (KMC). The

company has to get clearance from the heritage

committee of KMC after which work on the project

may start.

THE INDIAN HOTELS COMPANY (IHCL) plans to

open 43 new properties in the next four years.

The 43 proposed properties will add 10,000-12,000

rooms. In India, the hotels will come up under the

Ginger, Gateway, Vivanta and Taj brands while

outside India, it will be just with the Taj brand.

Currently, the IHCL has 66 hotels in India and 16

hotels in the Maldives, Malaysia, Australia, Britain,

the US, Bhutan, Sri Lanka, Africa and the Middle East.

BEST WESTERN INDIA with Goradia Group

recently opened The Best Western Goradia's at

Shirdi in Maharashtra.

The hotel comprising 72 rooms is located behind Sai

Udyan, opposite to the main Samadhi Temple, Off

Pimpalwadi Road. Currently, it is operational with

24 rooms. The property has facilities like on-line

reservation, a multi-cuisine restaurant 'Aroma' etc.

The company plans to add one banquet hall with a

capacity of 1,000 people, one food mall and a three

level terrace to the existing infrastructure by 2012.

ENTERTAINMENT WORLD DEVELOPERS (EWDL)

plans to set up 10 hotels in Madhya Pradesh,

Jharkhand, Chandigarh and Maharashtra over the

next two-three years.

EWDL is expected to pump in `350 crore into the

hotels which will have the total inventory of around

900 rooms. Of the 10 hotels, six will be part of a

mixed-use development that will also incorporate

malls. The company is seeking partners like Royal

Orchid and Sarovar for managing the properties.

CARLSON, a global hospitality company is likely to

open 19 more hotels in India by December 2011.

The company has already signed management

contracts for about 54 hotels, of which 19, with a

total of 2,670 rooms, will open by December 2011.

These 19 hotels are estimated to cost around

`2,250 crore. These hotels are to come under the -

Park Plaza (premium segment) and Country Inn and

Suites and Park Inn (mid-segment).

Of these, 11 are to be opened under Radisson

brand in Agra, Ghaziabad, Greater Noida (Uttar

Pradesh), Ahmedabad (Gujarat), Amritsar (Punjab),

Chennai, Goa, Haridwar (Uttarakhand), Hyderabad

and, Ranchi, Rudrapur (Jharkhand). While two

hotels under Country Inn brand are expected to

come up at Gurgaon (Haryana) and Mussoorie

(Uttar Pradesh), one hotel under the Park Inn brand

will be opened in New Delhi (CBD) and five hotels

under Park Plazas brand will open at Bengaluru,

Chandigarh, Coimbatore (Tamil Nadu), New Delhi

and Dwarka.

VICEROY HOTELS is planning to add more hotel

properties in 2011.

The plan includes two major hotels in Chennai and

Bengaluru at an investment of `1,200 crore. It is

developing a 387-room JW Marriott hotel at MRC

Nagar in Chennai at a cost of `650 crore. The hotel

is expected to open doors by April 2011.

The hotel in Bengaluru is to be part of the Marriott

brand-Renaissance. It is a 250-room hotel with 22

storeys. It has 4.5 lakh sq ft of built-up facility. The

hotel is expected to be commissioned by December

2011.

Hong Kong based LANGHAM HOTELS

International plans to set up properties in India.

The company plans to pump in $100 million (approx

`450 crore) to develop four properties with over

650 keys.

Langham's 97-key transit hotel at the Delhi

International Airport is set to be inaugurated by

February 2011. The second hotel 'Langham Place',

with 130 rooms in Pune will follow next. The

company is also joining hands with Wadhwa

Developers to manage these two properties through

management contract.

Project Completion

LEMON TREE HOTELS, on 12 January 2011

launched a business hotel - The Lemon Tree, City

CMYK

Hospitals


Centre, Bengaluru, on St John's Road.

The 13-storeyed hotel consists of 187 rooms and

suites. It houses multi-cuisine coffee shop Citrus

Cafe, Pan Asian restaurant and also boasts of a spa,

fitness centre, swimming pool and conference

facilities.

The company has earmarked an investment of $1.2

billion (approx `5,400 crore) for expansion which

will be financed through equity ($200 million) and

loans. It plans to add seven hotels to its existing

chain across India in the next two years.

Hospitals


FORTIS MALAR HOSPITALS, a

subsidiary of Fortis Healthcare, has

entered in a pact with Puducherry

based East Coast Hospital to

operate and manage it.

Subsequently, East Coast Hospital has been

rechristened as 'Fortis East Coast Hospital', and plans

are afoot to raise the bed capacity from the present

100 to 250 beds.

As part of the agreement, East Coast Hospital

chairman Murugesan will retain ownership of the

hospital.

CAMELLIA GROUP, a provider of services in

education, hospitality, industry, real estate and

aviation, has forayed into the medical sector.

The Group proposes to set up its first medical hub

in Eastern India. The medical hub named Camellia

Institute of Medical Science & Research will have

a 500-bed super-speciality hospital. It will also

have medical, dental and nursing colleges. The

total investment for the project is estimated to be

`250 crore.

Chennai based DR AGARWAL'S EYE HOSPITAL

plans to increase the number of its hospitals to 100

by 2011.

The company will open cluster of hospitals in

Mumbai, Bengaluru and Hyderabad. The company

is likely to invest `150 crore on the new hospitals.

The company is to initially fund the new projects

through internal accruals and debt, but will also look

at other options, including private equity, at a later

stage. The hospital chain opened five hospitals in

Bengaluru on 18 January 2011 with plans to launch

five hospitals in Hyderabad in February 2011. Also,

four more hospitals are to be set up in Bengaluru by

March 2011 and a total of 25 by 2012.

MAX HEALTHCARE plans to open more hospitals

during 2011.

The company is likely to set up four hospitals in

North India at an investment of `540 crore.

The new hospitals which are to be multi-specialty

will come up at Shalimar Bagh in Delhi, Bathinda

and Mohali in Punjab and Dehradun in

Uttarakhand. These hospitals will have an average

bed capacity of 250-300. The hospitals are to come

up on PPP model in collaboration with the Punjab

Government.

Hyderabad based GLOBAL HOSPITALS plans to set

up a hospital in Ahmedabad.

The company has earmarked `250 crore for setting

up a 350-bed hospital in Ahmedabad. The MoU for

the proposed project is to be signed during the

upcoming Vibrant Gujarat Global Investors' Summit

(VGGIS). Currently, it is holding discussions with the

state government and also some private firms for

land to set up the project. It needs around 10 acre

for the hospital. Besides, plans are afoot to ramp up

the bed capacity up to 500 by 2013, with an

additional investment of `100 crore. It currently has

1,700 beds across its facilities at Hyderabad,

Bangalore and Chennai. While its 500-bed Mumbai

facility is slated to commence operations by April

2011, the 500-bed Kolkata facility is to be ready by

2012.

APOLLO HOSPITALS ENTERPRISE plans to expand

its presence by 2013.

The company has earmarked `1,000 crore to set up

12 new 'Apollo Reach' hospitals in tier-II and tier-III

cities across the country. The investment per

hospital is likely to be in the range of `80 to `100

crore. The company has raised funds for the first six

hospitals through debt and internal accruals.

CMYK

Hospitals / Tourism / Commercial Complex


While, the company has started construction work

at Trichy (Tamil Nadu), Varanasi, Allahabad,

Visakhapatnam, Nashik, and suburban Mumbai, it is

still in the process of finalising sites for six more.

Also, it plans to invest `100 crore for setting up

another 500 pharmacies across the country over the

next 15 months. At present, it has nearly 1,200

pharmacies in India.

Project Completion

Ghulam Nabi Azad, Union Health and Family

Welfare Minister, on 5 January 2011, inaugurated

the super-speciality block at the Thiruvanan-

thapuram Medical College in Kerala.

Funds worth `120 crore have been spent on the

upgradation of the medical college, which includes

super-speciality block with 253 beds, nursing college

and a new building for medical laboratory. HLL LIFE

CARE was entrusted with the construction work.

Pranab Mukherjee, the Union Minister of Finance,

on 9 January 2011 inaugurated FORTIS

HEALTHCARE'S super-specialty hospital in Kolkata.

The 414-bed hospital will serve the healthcare

needs with its comprehensive care around the focus

areas of cardiac care, orthopaedic, brain and spine

care, digestive care and 'uro' and 'nephro' care.

The company plans to open 8 to 10 hospitals by

2013. These hospitals are expected to come up in

Gurgaon (Haryana), Ludhiana (Punjab),

Ahmedabad (Gujarat) and Kangra (Himachal

Pradesh). The hospital at Kangra is slated to be

opened in mid-2011.

Meanwhile, the company has completed acquisition

of Hong Kong based Dental Corporation having a

network of clinics in the country.

Tourism & Recreation


IL&FS TRANSPORTATION

NETWORKS has emerged as the

lowest bidder for a stadium project.

On 19 January 2011, the National

Games Secretariat opened the bids

for development of an Outdoor Stadium at

Kariavattom, Thiruvananthapuram, in Kerala. The

project is on annuity basis with a concession period

of 15 years including a construction period of 24

months. It is estimated to cost `161 crore.

BAHRI ESTATES has joined hands with Globosport

India to develop sports and recreational

infrastructure in its retirement homes and second

villas project in Tamil Nadu. Globosport through its

arm Play Sports Surfaces will design the sports and

recreational facilities in the proposed project - Bahri

Beautiful Country - coming up in at Kodaikanal.

Bahri has also collaborated with Mahesh Bhupathi

Tennis Academies, another arm of Globosport, to set

up a professionally managed tennis academy in the

township. The project will have a golf academy, a

club with all facilities, resort, medical facility, group

housing and educational institute. Bahri has tied up

with Aamoksh One Eighty, which is into retirement

home market, to manage the retirement homes

facility.

The company plans to complete the Phase I

development of the project in 24 months with an

investment of `226 crore. The Phase I will have 387

units including 169 retirement villas, 178 second

house units and 40 fully developed plots in a total

area of 121 acre.

Commercial Complex


THE HARYANA STATE

INDUSTRIAL AND

INFRASTRUCTURE DEVELOP-

MENT CORPORATION (HSIIDC)

plans to develop new industrial

estates (IE) and Institute of Management

Technology (IMTs) across the state. The proposed

IEs and IMTs are to come up over an area of 14,702

acre to facilitate development and growth of

industry in the state. They are likely to locate Bawal

Growth Centre Phase IV over an area 679 acre, Rai

IE Sector 39 over an area of 379 acre, Manakpur

Phase II over 259 acre, Roz-Ka-Meo IMT over 1,506

acre, Dharuhera Phase I and II over 494 acre,

Manesar Phase V over 952 acre and Manesar IMT

Phase VI over 3,325 acre, Barwala Phase II over 568

acre, Rohtak IMT Phase III over 964 acre,

Kharkhauda IMT over 3,364 acre, Ambala IMT over

1,850 acre, Kaithal IE over 200 acre and Panchkula

Technology Park, Phase II over 162 acre.

SHIPPING CORPORATION OF INDIA (SCI),

CONCOR and Central Warehousing Corporation of

India are planning to form a JV company to provide

end-to-end transport solutions.

The JV to be named - Logistics Corporation of India

CMYK

Commercial Complex / Retail / Real Estate


- is expected to provide integrated transport

services. The three companies will be the equity

partners in the multi-modal JV logistics company. A

proposal in this regard has been submitted to the

Union Government.

While CONCOR and Central Warehousing

Corporation may take care of the rail and road

segments of the chain, SCI may provide the

shipping link.

Delhi based PREMIUM FARM FRESH PRODUCE

plans to set up the market for fruits and vegetables

in Mysore district of Karnataka.

A sum of `100 crore is likely to be invested for

setting up the market. The company has received all

the necessary approvals for the project. The

Karnataka Industrial Areas Development Board has

allotted 60 acre for the proposed modern wholesale

terminal market. Work is likely to commence soon.

Project Completion

N Kiran Kumar Reddy, Chief Minister of Andhra

Pradesh, on 23 January 2011 inaugurated the Phase

I of HONEYWELL TECHNOLOGY SOLUTIONS'

campus and a flight operation centre at

Nanakramguda in Hyderabad.

The minister also laid the foundation stone for the

Phase II of the Honeywell campus. The Phase I

comprises 1.25 lakh sq ft office space constructed at

a cost of `100 crore. The company is likely to invest

similar amount for the Phase II campus. The Flight

Operations Centre will monitor the flight passage

directions and operations using latest information

technology applications.

Retail


THE FUTURE GROUP has decided

to expand in West Bengal over the

next three years.

The Group plans to increase the

number of Big Bazaar stores from

the present 18 to 30 and the number of Pantaloons

stores to eight from the current five. The Group is

all set to open three more Pantaloon stores in 2011.

It has finalised locations at Madhyamgram, Lake

Mall and Jessore Road.

The Group is also looking at expanding presence

across formats and stores in the eastern region

overall. Plans are afoot to expand the number of Big

Bazaar stores from the present 30 to over 50 and

Pantaloon stores from the present 7 to at least 14 in

the next three years.

COCOBERRY, the New Delhi based food chain, has

entered into partnership with Fortis Healthcare and

DT Cinema to enhance its distribution network in

the country.

The company also plans to explore the franchisee

route. It will invest `120 crore in the next three

years to increase its number of outlets to 100 by the

end of 2011. In the initial phase, the company plans

to open outlets at Fortis centers and at DT Cinemas

in a phased manner.

RELIANCE FOOTPRINT, the multi-brand footwear

specialty store chain of Reliance Retail, plans to

expand its presence.

The company is likely to open 100 stores with a

floor area varying between 5,000 sq ft and 7,000 sq

ft, by March 2012. The company is expected to

invest around `200 crore in these stores. The

company has recently tied up with Japan based

sports shoes brand 'Asics'. The company will open

mono-brand outlets as part of the agreement. It is

likely to set up mono-brand ASICS stores in

Bengaluru and Hyderabad.

Real Estate


AIPL AMBUJA HOUSING AND

URBAN INFRASTRUCTURE plans

to pump in `2,000 crore in Punjab.

The company plans to set up a

residential township in

Gobindgarh-Khanna and Mohali and a mall in

Jalandhar. The Gobindgarh-Khanna township will

spread over 88 acre and Mohali Township over 32

acre. The township in Khanna is slated to be

completed by April 2012. Also, the company has

applied for necessary clearances to the state

government for the Mohali township.

PARSVNATH DEVELOPERS has signed an

agreement with SUN-Apollo India Real Estate Fund

LLC for an investment in its premium residential

project.

SUN-Apollo is likely to pump in around `100 crore

or a 49.9 per cent stake in the project SPV,

Parsvnath Buildwell, which will develop the project

at Ghaziabad, Uttar Pradesh.

CMYK

Real Estate


The project spread over an area of approx 31 acre is

known as 'Parsvnath Exotica- Ghaziabad'. The

construction of the project has already begun and

all necessary approvals have already been obtained.

The Chennai based OLYMPIA GROUP plans to

invest around `1,000 crore to develop four to five

projects over the next three years. The investment

will be funded through debt, equity and internal

accruals.

The company is looking to enter the real estate

market in Kolkata to develop around one million sq

ft with an investment of around `100 crore.

A super luxury villa project will come up in an area

of 35 acre at the East Coast road. Two premium

house projects and one for affordable homes are

also to be launched in Chennai. Further, the Group

is also completing Phase I of a residential project at

OMR IT corridor with an investment of `350 crore.

It consists of 1,000 apartments spread over 1.5

million sq ft.

VISHRANTHI HOMES is coming up with an

affordable housing project called Sundarakand.

The project is located close to Medavakkam, a

southern residential suburb of Chennai. Spread over

1.6 acre, Sundarakand will offer 120 apartments

across five blocks, ranging from 927 sq ft to 1,533

sq ft for 2 BHK, 2 BHK+study and 3 BHK. Each

block will have a four-storeyed building with a car

park attached to each apartment.

Work on the project has already started and it is

slated for completion in December 2012.

PRIMEX INFRASTRUCTURE has unveiled a

residential project, 'Verterra', at Mugalivakkam,

Porur, the emerging IT hub of Chennai.

The project is to cost around `125 crore in the

project. Verterra will comprise nine blocks with the

total space of approx 3,00,000 sq ft, consisting of

324 dwelling units. It will have 1 BHK to 3 BHK

units, ranging from 575 to 1,233 sq ft.

Work will commence in February 2011, and the

project is expected to be completed within 24

months.

RAMKY ESTATES & FARMS has launched a

residential project near the Shamshabad

International Airport in Hyderabad.

Named 'Discovery City', the town spread over 600

acre comprises housing, retail, shopping centres,

education, healthcare and recreation services - all

under one roof. The total investment in the project

is estimated at `5,000 crore

The company proposes to develop villas on 200-

300 sq yard plots in a 30-acre gated community. It

has also planned apartments ranging in size from

350 to 1,550 sq ft. HOK has designed the project

which will be completed in two phases over eight

years, with the first phase covering around 350

acre.

The company has already signed an agreement with

the Art of Living Foundation to establish an

international school, with the academic session

beginning in 2012.

Britain's PRINCE CHARLES plans to build an eco-

friendly model village for around 15,000 poor

people in India.

The project is to spread over 25-acre wasteland on

the outskirts of either Kolkata or Bengaluru. It will

include schools, shops and 3,000 homes.

Construction for the village is likely to begin by

November 2011. The town will have palm trees that

hang overhead to collect rainwater that will be used

for showering, washing and sanitation before being

recycled to water plants.

GTM BUILDERS AND PROMOTERS has chalked

out capex plan to develop realty projects by 2013.

The company plans to invest `250 crore to develop

two projects over a period of next three years. The

capex is to be funded through internal accruals and

CMYK

Real Estate / IT Parks / SEZ


advances from customers.

While the company is likely to invest `150 crore in

the housing project, the commercial project is to

come up at a cost of `100 crore.

A housing project christened - GTM Greens - is to

come up at Sonepat in Haryana comprising 750

units. GTM has entered into a marketing tie-up with

DHFL Property Services for the housing project. The

shopping mall-cum-hotel project is to come up at

Dehradun in Uttarakhand. The shopping mall will be

covering 3,50,000 sq ft and a budget hotel will have

104 rooms.

SAI CONSTRUCTIONS AND BUILDERS plans to

develop a new gated community project at

Visakhapatnam in Andhra Pradesh.

The project named Sai Narasimha's Arena is situated

near Aganampudi toll plaza in Vishakhapatnam. The

nine-storeyed project is to have 205 residential flats.

A built-up area of 2.81 sq ft in 1.9 acre will be

converted into two-bedroom and three-bedroom

deluxe flats. Facilities like swimming pool, club

house, shopping mall and gym will be provided to

the residents.

Industrial & Software Parks

Project Development

THE ASSOCIATED CHAMBERS OF

COMMERCE AND INDUSTRY OF

INDIA (ASSOCHAM) has put

forward a proposal for developing

14 new clusters in Kerala.

These clusters are to be developed on PPP model in

the state. They many need around `200 crore to

provide infrastructure to these clusters.

The proposed clusters are in Guruvayur (agro-based

and food processing), Kodakara (rice mills and

general engineering), Vadanappally (agro-based

and food processing), Mavelikkara (garments),

Cherthala (softwood), Sulthan Bathery (natural

fibre), Meenangadi (agro-based and food

processing), Padinharathara (rice mills), Kattappana

(plastic manufacturing, general engineering),

Devikulam (natural fibre), Vagamon (agro-based

and food processing), Rajakkad (rice mills),

Uzhavoor (agro-based and food processing) and

Ranni (plastic manufacturing, natural fibre).

Besides, ASSOCHAM also suggested setting up of a

Cluster Development Authority in Kerala.

Special Economic Zone


Three developers of SEZs in

Rajasthan have sought more time

from the Union Government to

implement their projects.

MAHINDRA WORLD CITY

JAIPUR (MWCJL) has sought extension for its

sector-specific zone over procedural delays. The

company is likely to commence exports from the

unit in FY 2011-12. MWCJL is an SPV formed by

the Rajasthan State Industrial Development &

Investment Corporation and Mahindra Lifespace

Developers, to execute the project.

Similarly, Genpact Infrastructure, Jaipur and Tata

Consultancy Services for their IT/ITES zone in

Rajasthan have also requested more time for the

implementation of the projects due to delay in

getting various clearances.

The Tamil Nadu Industrial Development

Corporation's (TIDCO) multi product SEZ in

Krishnagiri district is likely to be operationalised by

December 2011.

The tender for construction of 50,000 sq ft IT-cum-

administrative building has been finalised and the

work order issued.

The project, estimated to cost around `2,300 crore

is to house IT/ITES, electronic hardware, auto

components, apparels, leather products, pharma

and food processing sectors.

JB SEZ is setting up a pharma SEZ at Panoli in

Gujarat. The company is a JV between HBS Realtors

and the JB Mody Group. Both the partners hold 35

CMYK

Water & Waste Management / Irrigation


per cent equity each in the JV company. The

remaining 30 per cent equity is held by IL&FS India

Realty Fund.

The proposed SEZ is being set up on 312 acre at a

cost of `1,660 crore. The SEZ is slated to be ready

by March 2012. Of the total cost, `160 crore is to

be utilised towards development of roads and other

infrastructure. The remaining `1,000 crore will be

for other facilities such as power, water, effluent

treatment plant etc.

The project will be financed through a combination

of models, depending on the facilities that were

being installed, besides debt financing.

Water & Waste Management

General Developments

CORPORATION OF THE CITY OF

PANAJI on 17 January 2011

approved the DPRs for a water

supply network and sewerage

network in Panaji. The works are

worth `371 crore.

The `174 crore water supply project includes

construction of a 50 million litres per day treatment

plant, improvement in the current distribution

system and a storage reservoir. The project will also

see replacement of existing water meters by an auto

meter reading (AMR) system, replacement of all

existing service connections and providing flow

control valves where required. The sewerage

project is estimated to cost `197 crore. The project

envisages the creation of a Global Information

System-based online consumer grievance redressal

module with all necessary software for development

and installation. It will also see the development of

online bill payment systems and creation of online

consumer billing module with bank payment and

web hosting.

The Maharashtra Government has given in principle

nod to PIMPRI-CHINCHWAD MUNICIPAL

CORPORATION'S (PCMC) water recycling (ultra

filtration) project.

The state government has asked PCMC and MIDC to

prepare a feasibility study of the project. The project

envisages re-treating the treated water from the 120

million litres per day capacity sewage treatment plant

at Kasarwadi, and supplies it to industries and others

for non-potable use. Further, the state government

has also assured to release the `229 crore pending

with it as its share of the JNNURM projects being

implemented in the PCMC limits.

Irrigation

General Developments

THE CHHATTISGARH GOVERN-

MENT has decided to construct

seven barrages on the Mahanadi

river. The state government is

expected to invest `1,467 crore to

build the seven barrages.

Of the total, four are to come up in Janjgir-

Champa district, where maximum number of

power plants is proposed to be set up. The

remaining three barrages will be constructed in

Raigarh and Raipur districts. The project is to be

completed in three years.

The Tamirabharani, Karumaeniyar and Nambiyar

river linking project in Tamil Nadu is to be

completed by 2014. The project costing `369 crore

is being executed by digging a 73-km long channel

to take the surplus flood water to the dry regions of

Thisaiyanvilai, Radhapuram and Sattankulam.

A sum of `213 crore had been allotted in three

phases (`65 crore in the first phase and `41 crore

and `107 crore in the second and third phases

respectively) for this project. During the first phase

of the scheme, the extension of Kannadian

checkdam and Kannadian channel upto 6.50 km

had been taken up.

THE WORLD BANK had sanctioned `745 crore for

the renovation of 66 dams under the control of

PWD and 38 reservoirs being administered by the

Tamil Nadu Electricity Board.

CMYK

Special Feature - Cement


Cement & Steel are the two key inputs for the infrastructure sector in general and the construction

sector in particular. No country can think of building world class infrastructure unless it has enough

domestic capacity of these two key ingredients.

In the recent years, both steel and cement industries have seen mega investment intentions for

augmenting capacities. The boom witnessed in the construction industry helped the Indian

cement industry record stellar performances in the last couple of years. Expecting the boom to

continue for next 10-15 years, major players in the cement industry announced major expansion

plans. Not to be left behind, the small and medium players also pitched in huge investment

options. The last few of years also saw steel and power companies entering into cement sector

with huge project outlays.

A micro level study by ProjectsToday of progress in the ongoing cement projects in India in January 2011

revealed that by 2013 around 129 million tpa will be added. If the demand grows at around 10 per cent

per annum in the next 4-5 years India's total cement manufacturing capacity will be well over 400 million

tpa mark by 2013.

CMYK



Indian Cement Industry

The saga of Indian cement industry began with the commissioning of the first plant of Cement

Corporation of India in 1914 at Porbandar in Gujarat. Though today private sector's domination in

cement is almost complete, it is only in the 1950s Indian private groups like Tata, Birla, Dalmia and

Singhania forayed into this sector. These groups located their cement plants in limestone rich states like

Rajasthan, Madhya Pradesh and Karnataka. In south India, Madras Cement, India Cement and

Chettinad Cements were the early players. They limited their areas of action to southern states like

Andhra Pradesh and Tamil Nadu.

The modern era of the cement industry started with Gujarat Ambuja setting up its first plant at Kodinar in Gujarat

in 1984. The company also introduced the concept of bulk transportation of cement through sea route. The 1990s

saw the entry of new private companies like Jaiprakash Associates, Sanghi Industries, Prism Cement, etc.

The growing demand for cement also enticed foreign cement majors like Lafarge, Holcim, Italcementi,

Heidelberg Cement to venture into Indian shores in the late 1990s. Most of the foreign companies

adopted the takeover route to get a foothold in the Indian cement industry. Among the foreign groups,

Holcim, after the acquisition of controlling stakes in Ambuja Cement and ACC, has emerged as one of

the leading cement manufacturer in India. As of March 2010, the group enjoyed a market share of

around 18.8 per cent.

The last few years saw some steel and power companies announcing mega cement projects. While the steel

companies intend to use slag from their steel units to manufacture cement, power companies intend to use

fly ash for the same purpose.

Installed Capacity, Production & Demand

As of March 2010, there were 49 large cement companies with 162 plants and around 365 mini cement

plants in the country. The aggregate cement capacity of the large companies was 271.78 million tpa and

the combined capacity of the mini

cement companies was estimated at

11.1 million tpa.

Further, information available with

ProjectsToday indicates that in the first

nine months of this fiscal (April -

December 2010) 25 projects with an

aggregate capacity of 36.63 million tpa

were commissioned. As a result, the total

cement manufacturing capacity as of 31

December 2010 stood at 318 million tpa.

India is the second largest cement

producer in the world. The leader China

not only has cement capacity of over

Cement Capacity, Production, Demand (Mln tpa)

2005-06 2006-07 2007-08 2008-09 2009-10

Installed Capacity 160 166 188 233 282

Production 142 155 168 188 208

Capacity Utilisation (%) 88.8 93.4 89.4 80.7 73.9

Domestic Demand 136 149 164 178 196

Exports (Net of imports) 6.0 6.0 4.0 3.0 2.6

Total Demand 142 155 168 181 206

Growth in Demand(%) 11.8 9.2 8.4 7.7 13.8

Source: CMA & Company Annual Reports

Capacity by Region*

RegionsMar-09 Mar-10

Mln tpa Share (%) Mln tpa Share (%)

North 50.27 22.70 63.07 23.21

East 31.30 14.13 36.49 13.43

West 32.72 14.78 39.92 14.69

South 79.50 35.90 101.78 37.45

Central 27.65 12.49 30.52 11.23

Total 221.44 100.00 271.78 100.00


* Capaciities of Large plants

CMYK



1,000 million tpa but also enjoys a high per capita consumption of around 600 kg. The per capita cement

consumption in India is very poor at around 150 kg against the world average of about 300 kg. On the

brighter side, this also indicates the huge opportunity available for cement companies for increasing their

individual capacities.

During the five years period (2005-06 to 2009-10) the cement production grew at a simple average annual

rate of 10.2 per cent. During the same period the installed capacity grew at a higher rate of 13 per cent.

Domestic demand during the last five years grew at 9.8 per cent.

However, the Y-o-Y data for the completed fiscal indicates healthier trends. During the year ended March

2010, while the installed capacity increased by 21 per cent, production increased by 10.9 per cent and total

demand by 13.8 per cent.

Till mid-2000, Indian Cement industry recorded very high capacity utilisation. However, rapid capacity

additions in the recent years saw the ratio declining sharply. Between 2005 and 2007, the sector maintained

the capacity utilisation ratio at around 90 per cent. It came down sharply to 80.7 per cent in 2008-09 and

slid further to around 71 per cent in 2009-10. The ratio is expected to move down further in the next couple

of years with good amount of new capacities expected to be commissioned.

The continued emphasis on infrastructure building by the government and the upsurge in the construction

sector is expected to entice the cement manufacturers to keep the rapid pace of capacity building activities

currently seen intact in the next 4-5 years.

Top Players

Though there are 49 large and

hundreds of small companies, the

cement industry is dominated by a

few large companies. After the

recent takeovers and mergers, the

Holcim Group and the Aditya Birla

Group have emerged as the top two

players with a combined market

share of around 36 per cent. Though

some of the existing players as well

as new entrants like the Jaypee

Group, India Cements, Reliance

Cementation, Sanghi Energy, etc.

have chalked out major capacity

addition plans, the top two groups

are expected to maintain their

market shares at least in the next 2-

3 years.

As of March 2010, with a total

capacity of 26.17 million tpa, ACC

was the largest cement producer in

India. Grasim Industries was the

second leading producer with a

total capacity of 25.65 million tpa.

Close on its heel were UltraTech

Cement and Ambuja Cement with

annual capacities of around 23 million tonne. According to the latest information available as of

December 2010, ACC's cement capacity touched 30 million tpa and that of Ambuja Cement breached

the 25 million tpa mark.

Other leading cement producers include the Jaypee Group, India Cements, J.K. Group, Madras Cements

and Shree Cement. These players have capacities of over 10 million tpa. Dalmia Cement, Chettinad

Cement, Century Textiles, Kesoram Industries and Lafarge India owns capacities ranging between 5-10

million tpa.

Large Cement Companies: By Installed Capacity (Mln tpa)

CompaniesMarch March

2009 2010

ACC 22.41 26.17

Grasim Inds 19.65 25.65

Ambuja Cements 18.30 23.00

UltraTech 21.9 23.10

Jaypee Group 9.93 17.15

India Cements 10.74 14.05

J.K. Group 9.37 13.17

Madras Cement 10.52 12.72

Shree Cement 9.10 12.00

Dalmia Cement 6.50 9.00

Chettinad Cement 3.8 8.20

Century Textiles 7.80 7.80

Kesoram Industries 5.60 7.25

Lafarge 6.55 6.55

Other Companies 59.27 65.97

Total 221.44 271.78

Mini cement plants 11.10 11.10

Grand Total 232.54 282.88


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Project Investment

Buoyed by the rapid rise in the demand for cement in the recent years fresh capacity addition plans were

announced not only by the existing cement majors but also by the owners of mini cement plants. Most of

these projects were announced in the last couple of years. This period also saw companies in the

Construction, Steel and Power sectors drawing up plans for setting up cement plants with huge capacities.

As of 31 January 2011, there were 228 cement projects with an aggregate cement manufacturing capacity

of 413 million tpa. If all these projects are implemented the country would see a total investment of around

Rs.1,31,000 crore in the next 6-7 years with total cement capacity crossing the 730 million tonne mark.

Of the 253 projects ( as of March 2010), 216 are greenfield projects and the balance 37 are brownfield

projects. To ensure smooth operation of their respective cement units, 80 of the 253 new projects are

supported by captive power plants. These captive plants have an aggregate generation capacity of 3,700

MW. Most of these are fueled by coal.

Going by the progress made by individual cement projects, ProjectsToday forecasts that by the year March

2012, the total cement capacity in the country would touch the 360 million tpa mark. Another 49 million

tpa capacity will be added in 2012-13. The balance 139 projects with an aggregate capacity of around 320

million tpa are currently in the early planning stage, hence estimating their likely completion dates, at this

point of time, would be premature. We expect most of these projects to materialize in the second half of

the 12th Plan period.

Capacity Additions: 2011-2013

2010-11During the current fiscal in all 39 projects with an aggregate capacity of

48.15 million tpa are expected to be completed. Of this, 25 projects (36.63

million tpa) have already been commissioned. This includes units of Prism

Cement, ACC, Jaiprakash Associates, Bharathi Cement Corp, Bhavya

Cements, Chettinad Cement and Dalmia Bharat Sugar & Industries.

Further, of the 39 projects expected to be commissioned during the year, 23

projects have capacity of one million tpa or more each.

2011-12 The last year of the 11th Plan period will see 36 more cement units with a total capacity of 32.33 million tpa

getting commissioned. This will include projects of JSW Cement, ABG Cement, Adhunik Corpn, Jaypee

Cement, Chettinad Cement Corpn and Madras Cements. These projects have individual capacities of over 2

million tpa.

Other prominent cement projects expected to materialize during the year are of ACC, Shree Cement, Barak

Valley Cement, KJS Cement, Jaiprakash Associates and Lalitha Cement, Star Cement Meghalaya.

2012-13We expect some of the mega size projects of Reliance Cementation, Emami Cements, Revati Cement, Shree

Cement and UltraTech Cement to fructify during 2012-13.

If the government continues its pace of infrastructure building during 2011-12, it will help the country to

see new capacity addition of 48.99 million tpa in the form of 39 projects during 2012-13.

Among the other major projects lined up for commissioning in this year include that of ABG Cement, My

Home Industries, Nirma, Prakash Industries, Shalivahana Cement, Shree Cement, Shristi Cement, etc.

State-wise Distribution

Around half of the 129 million tpa capacity addition expected in the next three years, will be located in

Andhra Pradesh, Chhattisgarh and Madhya Pradesh.

Andhra Pradesh is going to be the biggest beneficiary of the current cement boom. The state will see

capacity additions of around 32 million tpa by March 2013. Of this, around 19 million tpa will be added in

the current fiscal itself. In the first nine months of the current fiscal the state has seen commissioning of 11

Capacity Addition by Year

Year Projects Mln Tpa

2010-11 39 48.15

2011-12 36 32.33

2012-13 39 48.99

> 2013 139 320.47

Total 253 449.94

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projects with cement

manufacturing capacity of

14.69 million tpa.

Chhattisgarh would see

around 20 million tpa of

fresh capacity in the next

three years. Bulk of the

expected capacity addition

(16 million tpa) is expected

to accrue in the fiscal

2012-13.

Madhya Pradesh, which

has attracted the highest

number of cement projects

as of December 2010, will

see capacity additions of

around 16 million tpa by

March 2013. Since most of

the mega cement projects

announced in the state

would depend on the

completion of the power

projects (as they intend to

use the fly ash generated

by these projects as raw

material), their actual

materialisation will depend

on the timely execution of

power projects.

Among the other states, Gujarat (12 million tpa), Meghalaya (8 million tpa), Tamil Nadu (7 million tpa),

Rajasthan (7 million tpa) are the major gainers.

Outlook

Though the cement industry would witness excess capacity situation during the next 4-5 years, the surging

activity in the construction sector and the continued emphasis by the government on infrastructure building

should provide the necessary demand side impetus to the cement manufacturers to jack-up capacities at a

rapid pace during the 12th Plan period (2013-2017).

In the 12th Plan, the government intends to spend around $ one trillion on infrastructure which includes

building roadways, airports and sea ports. Private sector is expected to step up its proposed investment in

sectors like Real Estate, Commercial Complexes, Hotels, Hospitals, etc. This coupled with increased activities

in the rural housing sector, is expected to increase the demand for cement at a healthy average annual rate

of around 10.5 per cent between 2010-11 and 2014-15.

ProjectsToday expects capacity addition of around 80 million tpa in the next two years and the total cement

manufacturing capacity of the country to cross 360 million tpa. If the government expenditure on

infrastructure projects gathers further pace in the 12th Plan, the country will see addition of another 49

million tpa by March 2013 taking the total cement capacity to well past the 400 million tonne mark.

With Indian economy expected to grow at an average rate of 8 per cent during the next 5-6 years, the

country can absorb the 129 million tpa capacity expected to be added in the next three years. Of course,

in the short term the sector might see some amount of demand-supply imbalance but the long-term outlook

for the cement industry looks very encouraging.

The government on its part should ensure availability of adequate raw materials like limestone, coal; supply

of clean power and availability of enough rail containers and good roads for transportation of cement from

the point of production to the point of consumption.

Capacity Additions in States (2011-13)

StatesMar-11 Mar-12 Mar-13 Total

Mln tpa Mln tpa Mln tpa Mln tpa

Andhra Pradesh 18.96 6.10 6.75 31.81

Chhattisgarh 2.20 2.00 15.50 19.70

Madhya Pradesh 6.00 1.50 8.82 16.32

Gujarat 4.30 3.83 4.00 12.13

Meghalaya 1.75 3.09 3.00 7.84

Tamil Nadu 2.11 5.00 7.11

Rajasthan 4.00 1.60 1.37 6.97

Assam 3.54 2.14 0.19 5.87

Karnataka 0.40 0.31 4.00 4.71

West Bengal 0.39 1.10 1.86 3.35

Jharkhand 2.21 0.90 3.11

Maharashtra 3.00 3.00

Orissa 1.50 0.70 2.20

Uttar Pradesh 1.30 0.40 1.70

Himachal Pradesh 1.50 1.50

Uttarakhand 1.50 1.50

Bihar 0.50 0.50

Jammu & Kashmir 0.08 0.08

Arunachal Pradesh 0.07 0.07

Total 48.15 32.33 48.99 129.47

Source: ProjectsToday.com

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Note: 1. The individual project completion dates were estimated by ProjectsToday based on the likely

commissioning dates announced by the project promoters, progress made by these projects as of January

2011, the normal time-over run seen in the industry and the past performances (in project

implementation) of project promoters.

2. The existing capacities, production and demand figures have been sourced from the Cement

Manufacturers Association (CMA) and the Annual Reports of cement companies.

Salient features of Indian Cement Industry � India is the second largest cement producer in the world. The leader China produces

around 1,000 million tpa of cement.

� Nearly 96 per cent of the total cement capacity is owned by 54 large cement companies

while the 365 mini cement plants account for the balance 4 per cent.

� Around 75 per cent of the total cement kilns operating in India are dry process based.

The balance units are either wet or semi-dry process based.

� Rapid capacity additions have pulled down the capacity utilisation ratio from 90 plus

to around 74 per cent in 2009-10.

� Around 60 per cent of the total cement dispatches is transported by road and the bal-

ance by rail.

� Indian cement industry is the third largest consumer of coal in the country. Thermal

power and steel plants are the first and second largest consumers.

� Severe power shortage in many states has forced cement companies to set up captive

power plants.

� A few cement companies have started using sludge from paper plants, sugar cane

trash, bagasse, jute dust, textile dust, pet coke, etc as alternate fuel.

� Housing sector is the largest consumer of cement. It accounts for 50 per cent of the

total demand for cement. Infrastructure follows next with a share of 25 per cent. o

� New cement plants proposed by power and steel companies intend to use wastes like

fly ash from Thermal power plants and Slag from Steel units to reduce the carbon

dioxide emissions.

� Cement/Clinker are exported to around 30 countries across the globe.

CMYK

Statistics


Projects Investment: By IndustryDecember-09 December-10

No. of Invst. % No. of Invst. %

projects (`̀Crore) Share projects (`̀Crore) Share

Manufacturing 3,820 1,131,584 23.0 3,962 1,318,736 22.3

Food & Agro Products 541 30,487 0.2 558 29,275 0.5

Textiles 382 20,921 0.1 375 20,942 0.4

Basic Chemicals 701 271,880 1.7 749 335,815 5.7

Fertilisers 38 18,432 0.1 67 34,368 0.6

Drugs & Pharmaceuticals 188 7,426 0.1 197 8,255 0.1

Petrochemicals 17 31,328 0.2 16 60,667 1.0

Petroleum Products 68 187,146 1.2 71 211,727 3.6

Plastic & Plastic Products 105 1,651 0.0 158 7,849 0.1

Rubber & Rubber Products 27 8,302 0.1 26 13,432 0.2

Paper & Paper Products 137 17,179 0.1 129 18,230 0.3

Non Metallic Mineral Products 388 108,596 0.7 438 117,678 2.0

Cement & Asbestos 290 104,709 0.6 307 113,159 1.9

Basic Metals 998 591,124 3.6 958 700,047 11.8

Iron & Steel 908 449,569 2.8 864 553,778 9.4

Non Ferrous Metals 90 141,554 0.9 94 146,269 2.5

Machinery 276 33,166 0.2 311 30,553 0.5

Non Electrical Machinery 96 8,464 0.1 111 6,315 0.1

Electrical Machinery 76 7,509 0.1 101 8,134 0.1

Electronics 103 17,193 0.1 98 16,104 0.3

Transport Equipment 209 45,264 0.3 222 43,253 0.7

Mining 721 118,467 2.4 838 156,279 2.6

Mineral Fuels 537 90,236 0.6 616 125,073 2.1

Coal 243 38,595 0.2 290 41,143 0.7

Petroleum Oil & Gases 248 39,860 0.2 285 60,620 1.0

Electricity & Non Conv. Energy 1,879 1,709,654 34.7 2,286 2,121,658 35.9

Electricity 1,435 1,680,279 10.3 1,700 2,079,201 35.2

Hydropower 763 235,939 1.4 906 264,028 4.5

Thermal Power 653 1,307,757 8.0 775 1,737,427 29.4

Nuclear Power 19 136,583 0.8 19 77,746 1.3

Non Conventional Energy 444 29,375 0.2 586 42,457 0.7

Services & Utilities 26,537 1,726,803 35.1 31,646 2,037,183 34.5

Hotels & Restaurants 510 14,023 0.1 534 14,240 0.2

Community Services 5,270 203,756 1.3 6,807 238,155 4.0

Transport Services 12,011 1,066,434 6.5 741 23,725 0.4

Roadways 9,726 458,118 2.8 11,976 567,266 9.6

Railways 626 244,030 1.5 724 325,388 5.5

Aviation Infrastructure 134 51,916 0.3 123 50,440 0.9

Shipping Infrastructure 283 127,942 0.8 289 139,740 2.4

Pipelines 111 65,514 0.4 95 57,961 1.0

Power Distribution 1,002 111,100 0.7 1,253 110,030 1.9

Communication Services 69 55,957 0.3 64 47,417 0.8

Commercial Complexes 1,680 35,453 0.2 1,824 34,976 0.6

Real Estate 5,882 114,795 0.7 6,644 175,699 3.0

Industrial & Software Parks 871 208,348 1.3 881 246,001 4.2

Storage & Distribution 214 27,632 0.2 289 20,232 0.3

Irrigation 1,269 234,594 4.8 1,620 276,424 4.7

Total 34,226 4,921,103 100.0 40,352 5,910,280 100.0

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Statistics


Projects Investment: By States

December-09 December-10

No. of Invst. % No. of Invst. %

projects (`̀Crore) Share projects (`̀Crore) Share

States

Andhra Pradesh 3,015 441,634 9.0 3,321 566,844 9.6

Arunachal Pradesh 112 72,833 1.5 127 90,139 1.5

Assam 399 48,482 1.0 510 52,541 0.9

Bihar 967 117,827 2.4 1,329 127,820 2.2

Chhattisgarh 1,069 320,956 6.5 1,326 390,575 6.6

Delhi 705 52,695 1.1 798 64,664 1.1

Goa 283 7,633 0.2 341 9,388 0.2

Gujarat 1,931 393,175 8.0 2,217 507,446 8.6

Haryana 1,295 115,353 2.3 1,423 133,212 2.3

Himachal Pradesh 436 65,414 1.3 494 67,269 1.1

Jammu & Kashmir 251 57,856 1.2 284 63,475 1.1

Jharkhand 660 215,516 4.4 888 238,724 4.0

Karnataka 2,684 274,440 5.6 3,208 373,244 6.3

Kerala 1,069 92,399 1.9 1,253 119,359 2.0

Madhya Pradesh 1,940 238,779 4.9 2,476 348,678 5.9

Maharashtra 6,886 672,558 13.7 8,101 711,653 12.0

Manipur 30 4,395 0.1 39 4,680 0.1

Meghalaya 117 8,161 0.2 136 13,408 0.2

Mizoram 55 3,772 0.1 58 4,407 0.1

Nagaland 25 1,723 0.0 26 2,860 0.1

Orissa 1,273 383,409 7.8 1,570 530,267 9.0

Punjab 874 86,279 1.8 1,113 102,435 1.7

Rajasthan 1,107 81,491 1.7 1,392 98,592 1.7

Sikkim 48 17,299 0.4 64 18,542 0.3

Tamil Nadu 2,355 290,844 5.9 2,622 329,766 5.6

Tripura 113 6,927 0.1 145 7,880 0.1

Uttar Pradesh 1,622 174,871 3.6 1,963 207,056 3.5

Uttarakhand 585 43,191 0.9 582 46,247 0.8

West Bengal 1,363 282,652 5.7 1,556 299,074 5.1

Union Territories

A & N Islands 38 525 0.0 53 479 0.0

Chandigarh 100 1,424 0.0 122 3,405 0.1

Dadra & Nagar 54 2,261 0.1 68 2,523 0.0

Daman & Diu 26 563 0.0 31 575 0.0

Lakshadweep 6 41 0.0 4 49 0.0

Puducherry 85 4,067 0.1 106 4,699 0.1

Multi-State, Offshore & Unallocated

Multi States 485 299,091 6.1 448 317,569 5.4

Offshore 121 32,878 0.7 120 47,633 0.8

Unallocated 42 7,687 0.2 38 3,107 0.1

All India 34,226 4,921,103 100.0 40,352 5,910,280 100.0

CMYK

Statistics


Index of Industrial Production: Sectoral & Use-basedWeight November

(%) 2005-06 2006-07 2008-09 2009-10 2010-11

Index: 1993-94 = 100

Sectoral Indices

Mining & Quarrying 10.473 154.9 163.2 176.0 193.3 205.8

Manufacturing 79.358 234.2 263.5 295.1 327.3 343.9

Electricity 10.169 190.9 204.7 223.7 237.1 230.5

Use-based Classification

Basic Goods 35.565 189.8 209.3 229.7 246.1 249.9

Capital Goods 9.257 265.8 314.2 397.9 474.1 557.5

Intermediate Goods 26.514 216.4 242.4 259.0 294.3 311.9

Consumer Goods 28.664 251.4 276.8 307.5 330 330.5

Consumer Durables 5.365 349.9 382.0 395.0 498.4 540.7

Consumer Non-durables 23.299 228.8 252.6 287.3 291.3 282.1

General 100.0 221.5 247.1 275.4 304.1 317.9

% change over previous year

Sectoral Indices

Mining & Quarrying 10.5 1.0 5.4 2.6 9.8 6.0

Manufacturing 79.4 9.1 12.5 2.8 10.9 2.3

Electricity 10.2 5.2 7.2 2.8 6.0 4.6

Use-based Classification

Basic Goods 35.6 6.7 10.3 2.6 7.1 4.5

Capital Goods 9.3 15.8 18.2 7.3 19.2 12.6

Intermediate Goods 26.5 2.5 12.0 -1.9 13.6 2.4

Consumer Goods 28.7 12.0 10.1 4.7 7.3 -3.1

Consumer Durables 5.4 15.3 9.2 4.5 26.2 4.3

Consumer Non-durables 23.3 11.0 10.4 4.8 1.4 -6.0

General 100.0 8.3 11.6 2.8 10.4 2.7

Source: Central Statistical Organisation

Index of Industrial Production: Capital Goods

Index: 1993-94 = 100 % change over previous year

2006-07 2007-08 2008-09 2009-10 2010-11 2006-07 2007-08 2008-09 2009-10 20010-11

Apr 251.0 278.4 313.0 309.0 456.3 19.6 10.9 12.4 -1.3 72.8

May 273.5 334.7 343.1 336.5 450.0 21.4 22.4 2.5 -3.6 34.3

Jun 291.1 358.3 378.4 431.7 436.6 21.6 30.0 5.6 11.8 9.7

Jul 282.7 317.4 386.8 381.8 654.9 18.3 11.9 21.9 2.0 63.0

Aug 281.9 368.6 377.2 402.7 395.8 16.6 30.0 2.3 8.3 -2.6

Sep 321.9 389.1 462.1 530.6 566.8 9.5 18.6 18.8 12.8 -4.2

Oct 290.1 350.8 361.7 410.2 559.3 6.5 20.5 3.1 12.2 22.0

Nov 315.7 392.1 383.2 442.1 557.5 29.4 24.5 -2.3 12.2 12.6

Dec 357.6 420.5 438.2 621.8 26.2 16.6 4.2 38.8

Jan 331.3 338.8 392.2 615.7 16.3 2.1 15.4 56.2

Feb 322.3 355.8 393.8 576.1 18.5 10.4 10.4 44.4

Mar 451.7 501.4 498.7 648.1 18.2 18.6 -8.2 27.4

Apr-Feb 386.7 458.4 8.9 18.2

Apr-Mar 314.4 367.3 396.8 474.2 562.5 18.3 16.9 7.0 19.2 22.5

Source: Central Statistical Organisation

projects today feb11

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