Amidst government directive to PSUs to invest their surplus funds, Coal India (CIL), which is sitting on huge cash-pile, has lined up Rs 50,000 crore investment plans for the next five years. The company is sitting on a cash reserve of Rs 61,000 crore. Battling low production, CIL has earmarked Rs 24,500 crore capital expenditure out of Rs 50,000 crore envisaged investment over the next five years mainly to boost capacity. The Rs 24,500 crore would be spent mainly on developing more than 100 underground and opencast mines in seven coal producing subsidiaries in the 12th Five Year Plan (2012-17). CIL accounts for over 80 percent of the domestic coal production also plans to set up 22 new washeries. The world's biggest coal miner, CIL is also eyeing acquisition of assets abroad.
Hero MotoCorp (HMCL), the world's largest two-wheeler manufacturer, reported record retail sales in the festive season this year. HMCL has already retailed over 11 lakh (1.1 million) two-wheelers in the festive months of October and November. This represents a seven percent growth over the same period last year. This retail sale has come about riding on robust demand for strong brands such as Splendor and Passion as well as new models like Maestro and Ignitor. This also marks a key milestone for brand Hero as this comes just two months after the complete migration of Hero MotoCorp's two-wheeler range from the erstwhile joint brand to Hero.
BHEL has stated that the coal linkage issue which was a reason for shrinking of the market will be sorted out within two years. BHEL is embarking on a strategic plan to improve its business. Instead of getting contractual orders for boilers and other equipments for power plant, BHEL is looking at EPC model namely Engineering, Procurement and Construction commissioning capability thus enlarging scope of offer in Power Sector. BHEL had already entered into JV with NTPC by creating manufacturing base for certain power plant equipments. The public sector unit is also entering into smaller business areas like transportation, transmission and renewable energy which will get more attention so as to maintain a balanced portfolio. In addition, BHEL is also working with GE India to offer water management solutions for the power sector. Besides, the company is executing a Rs 3,395 crore order in Uttar Pradesh for UP Rajya Vidyut Utpadan Nigam.
Power Finance Corporation (PFC) has sought commitment advance from the Odisha government on two more ultra mega power plants (UMPPs) proposed in the state, each with capacity of 4000 MW. PFC is the nodal agency for implementation of UMPPs. PFC has also asked the Odisha government to show its readiness for setting up of two additional UMPPs at Bijoypatna under Chandbali tehsil (Bhadrak district) and Narla in Kalahandi district. Meanwhile, PFC expects to float Request for Proposal (RFP) for the first UMPP in Odisha proposed at Bhedabahal in Sundergarh district in 2-3 months. The bidding process for the first UMPP has already begun. The UMPP needs 3,100 acres of land and PFC has formed a fully owned subsidiary - Odisha Integrated Power for executing the project, which would supply 1,300 MW to the state grid.
German agrochemicals major Bayer CropScience has concluded the Rs 1,250-crore transaction to sell its 104 acres land parcel in Thane to Mumbai-based developer Kalpataru Group. Bayer executed the sale agreement and received Rs 730 crore towards the final consideration. Bayer had entered into a non-binding and exclusive agreement with Agile Real Estate, a subsidiary of Kalpataru, for sale of this land parcel along with building and structures thereon at Kolshet Road in Thane on March 31, 2011. Kalpataru had then paid Rs 520 crore as earnest money and advance to Bayer for this deal, and has paid balance amount now to conclude the transaction. The developer has paid the final consideration through combination of internal accruals and debt.
Mitsubishi, Japan's largest writing instrument maker plans to increase its stake in its Indian partner Linc Pens from a little over 13% that it bought early this year. Mitsubishi Pencil is eager to invest in Linc Pens since it has identified India as its main growth market, while Europe and the US are slowing. Linc is one of the top three writing instrument maker in India. Mitsubishi, which sells its pens under the 'Uni' brand, plans to start local production in the country in next 6-12 months. Mitsubishi operates in the value-added segment with pens priced in the Rs 50-100 segment, while Linc operates in the mass market, sub-Rs 30 segment. Linc has been exclusive sales partner for Mitsubishi in India for last 20 years.
Maruti Suzuki India has pleaded inability to pay over Rs 1,200 crore by way of enhanced land acquisition dues for 600 acres it acquired for the Manesar plant in 2002, and urged the Supreme Court to hear it before taking a call on the enhanced compensation amount for farmers. Maruti had paid Rs 118.90 crore for 602.40 acres in 2008. The Punjab and Haryana High Court, in an order dated February 11, 2011, enhanced the compensation amount to Rs 37.40 lakh per acre from Rs 28.15 lakh per acre fixed by the reference court. The apex court later fixed it at Rs 28.15 lakh in an interim order on August 10, 2011. The judgment entails an additional payment of Rs 1,200 crore by the company to Haryana State Industrial Development Corporation (HSIDC), which acquired the land and handed it over 'raw' to Maruti Suzuki.
SpiceJet, one of the leading low cost airlines, has launched two new international flights from Kerala. The airline has launched daily flight from Kochi to the Maldivian capital Male from Thursday. In the second week of December the airline will introduce daily flight from Kochi to Dubai. At present, SpiceJet is operating international flights from Delhi, Mumbai, Chennai and Madurai. Kochi has become the fifth destination in India from where the airline has started international flights. The airline has deployed the Bombardier Q400 aircraft, with a capacity of 78 passengers, in the Kochi-Male route. The airline will soon be launching daily direct flights from Ahmedabad to Dubai. The airline major will be deploying Boeing 737-800 in the Kochi to Dubai and Ahmedabad to Dubai routes.
Rallis India, a Tata Group firm and one of the country's leading agro-chemicals companies, will start its More Pulses (MoPu) initiative in Odisha in the rabi season of next year. The initiative is aimed at scaling up pulses output. The MoPu project initiated by the company is being successfully implemented in states like Maharashtra, Karnataka and Tamil Nadu. In MoPu, the company works with farmers to grow quality pulses, increase productivity, procure the produce and bring it for sale in packaged form. In India, Rallis India aims to cover 0.15 million farmers and about 0.2 million acres under the project by the end of this fiscal. Besides, the company has launched - Tata Rallis Agri Input Training Scheme (TRAITS), an initiative aimed at enhancing the employability of non graduate youths from farming backgrounds by training them in agri-marketing and crop advising.