The Oil Ministry has rejected any change in price of Reliance Industries' (RIL) eastern offshore KG-D6 gas before April 2014 arguing that a higher price of fuel would result in $6.3 billion rise in subsidy burden. In a note circulated to members of an Empowered Group of Ministers (EGoM) for comments, the ministry stated that RIL would get an additional $4.1 billion revenue if the rates are hiked from current $4.2 per million British thermal unit to import parity rates of $14.2-14.51 per mmBtu. RIL first in June and then again on September 6 reiterated its demand for a price at par with the rate India is paying for import of liquefied natural gas (LNG) and gas imports from Turkmenistan, from April 1, 2014 when the current five-year period of $ 4.2 per mmBtu price expires.
Country's second largest refiner, Bharat Petroleum Corporation (BPCL), will complete expansion projects costing more than $3 billion at two refineries by 2015, as it moves to boost output and upgrade fuel quality. Diesel demand in the country has jumped after the government held the price of the fuel steady despite raising that of gasoline, prompting drivers to switch. Diesel-powered vehicles made up more than 40 percent of sales of new cars in the year to March 2012, or double their share from the prior year. To capture this growth, BPCL plans to spend $2.6 billion at the Kochi refinery to raise its crude processing capacity by 63 percent to 15.5 million tonnes per year (tpy) or 310,000 barrels per day (bpd) from 190,000 bpd in December 2015. New units at the site include a 10.5 million tpy crude distillation unit, a 2.2 million tpy fluid catalytic cracker (FCC) unit, a 4.3 million tpy diesel hydrotreater, a 3 million tpy vacuum gasoil hydrotreater and a 3.84 million tpy delayed coker.
State-run Coal India (CIL) aims at raising production capacity to 180 million tonnes over the next five years. Coal India has set a production target of 464 million tonnes for the current financial year. The company had achieved 435.84 million tonnes in 2011-12 against the targeted 447 million tonnes. The company has also asked the government to expedite the law for land acquisition and rehabilitation so that acquiring land for projects could be easier and clear. The world's largest coal producer, CIL has identified 142 new projects, including 107 open cast and 35 underground mining schemes with an ultimate capacity of 380.22 million tonne per annum (MTPA), as new projects and a part of it is likely to be added during this Plan period. Earlier, CIL wanted to take production capacity to 556 million tonnes (MT) by 2016-17.
JSW Steel may take government to court following a Coal Ministry's decision to de-allocate Gourangdih ABC coal mine, allotted jointly to the Sajjan Jindal-led firm and Himachal EMTA Power. Acting on a recommendation from an inter-ministerial group (IMG), the government on September 18 had announced to deallocated Gourangdih ABC block, allocated to JSW and Himachal EMTA jointly in July 2009. The IMG has found that the project developers had failed to develop the block within the prescribed time and did not achieve critical milestones including forest clearance, grant of mining lease and land acquisition. Coal from the block was supposed to feed a 300 MW captive power plant and is an integral part of JSW's much-delayed Rs 35,000 crore steel project, announced in 2007, in West Bengal.
India's largest utility vehicle maker, Mahindra & Mahindra (M&M) has managed to get booking of 5,000 units of compact Sports Utility Vehicle 'Quanto' within three weeks of its launch. Aimed at the prospective hatchback customers, Quanto is very aggressively priced between Rs 5.8 to 8 lakh and is riding the growing demand for sports utility vehicles in the country. The segment is growing at over 20%. The company has reported 9.53% rise in September auto sales at 48,342 units as compared to 44,137 units in September 2011. The half-yearly consolidated auto sales numbers for the period April to September 2012 stood at 2,67,266 units, up by 20% over the corresponding period of the last fiscal.
Apollo Tyres, one of India's leading tyre makers, is in the process of acquiring NYSE-listed tyre maker Cooper Tire & Rubber Company. The deal to acquire a controlling stake in Cooper Tire could be in the range of $600-800 million (3,150-4,040 crore). Cooper Tire & Rubber Company is the parent company of a global family of companies that specialize in the design, manufacture, marketing, and sales of passenger car and light truck tires. Cooper is the largest supplier of tyres to Sears. This acquisition will give Apollo Tyres an access to the huge replacement tyre market in the passenger, light and medium trucks segment in which Cooper Tire operates. The company has a market capitalization of $1.2 billion.
A day after S&P downgraded its credit rating over asset quality concern, State Bank of India (SBI) is hopeful of improving its bad assets ratio by the end of the fiscal. The bank sees that there wouldn't be any impact of the downgrade on the operations as the downgrade forms only a small portion of the bank's overall rating. The SACP (stand-alone credit profile) is a part of the overall rating exercise. The SACP is an integral part of the issuer credit rating. Retaining the overall issuer credit rating at BBB-, Standard &Poor's had downgraded the SACP of SBI to BBB- from BBB citing poor asset quality, making it the second agency to downgrade SBI after Moody's within a year.
BNP Paribas and Srei Infrastructure have invested about Rs 200 crore of equity in their joint venture company - Srei Equipment Finance. This will take the net worth of the Company to over Rs 1,660 crore. With higher capitalization, Srei Equipment Finance will expand its business multi-fold. Both the shareholders are equally committed to the growth of the infrastructure equipment finance business. Enhanced equity will strengthen the capital base of Srei Equipment Finance and with additional leveraging, will lead to further growth. This fiscal, Srei Equipment Finance is expected to grow by 10 - 15% over last year's disbursement of Rs 12,710 crore. As of June 30, 2012, the asset under management of Srei Equipment Finance was over Rs 18,492 crore.
Renaissance Jewellery, manufacturers and exporters of studded precious metal jewellery, has received award for outstanding Export Performance under the category 'Studded Precious Metal Jewellery Exports' from Gems and Jewellery Export Promotion Council of India (GJEPC) at its 39th Annual Awards presentation at New Delhi. The annual award is an initiative by GJEPC to honor the highest export generators on the basis of their Export Performance during the year. Renaissance Jewellery has been in the business of manufacturing and sale of studded gold, platinum and silver jewellery for over a decade. The company has established strong credentials in international markets by maintaining impeccable quality and design standards and holding on to a secure customer base to US, Europe and the Far East Countries.