The Oil Ministry has withdrawn a note it had circulated to the members of a ministerial panel opposing hike in price of gas produced by Reliance Industries (RIL), as the Rangarajan Committee is examining pricing of the fuel. In a surprise move, the Ministry had on October 10 moved a note to the Empowered Group of Ministers (EGoM) opposing a hike in price of RIL's KG-D6 gas before April 2014 even though the company itself was not seeking a revision before that date. This was done in view of panel headed by Prime Minister's Economic Advisory Council Chairman C Rangarajan being asked to suggest structure and elements of the guidelines for determining the basis or formula for the price of domestically produced gas, and for monitoring actual price fixation. RIL would get 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.
The government will soon approve NMDC's acquisition of 50% stake in Australia's Legacy Iron Ore at the next meeting of the Cabinet slated later this week. The state-owned iron ore miner has already announced acquisition of 50% equity in Legacy Iron Ore, a listed entity in the Australian Stock Exchange, for AUD 18.9 million (Rs 108.31 crore at current exchange rates). Legacy Iron Ore is endowed with more than one billion tonne of magnetite resource. This is the first acquisition by NMDC, which aims to raise its iron ore production capacity to 48 million tonnes per annum (mtpa) by 2014-15 from current installed capacity of 32 mtpa. NMDC has been pursuing the Perth-based iron ore explorer having both thermal and coking coal and mines. Following the acquisition of Legacy, NMDC is also eyeing more acquisitions in Brazil, Mozambique, Russia, USA and South Africa.
State-run NTPC stated that the proposed coal block auction next year by Coal India (CIL) would be more successful if the government secures all the requisite clearances before inviting bids. The company added that environment clearances, land acquisition should be done beforehand otherwise the companies may not be interested in bidding for those blocks. The geological reserves should be ascertained in advance and coal mining plan should be approved to attract more investors for coal blocks.
Indraprastha Gas (IGL) has commissioned the nation's first CNG station modeled on the concept of having 'Equipment on Canopy'. This is first of its kind CNG Station in India where all CNG equipment are installed on RCC canopy. As a result of installation of all equipment on the canopy, nearly 40% of the plot area has been saved, which is being utilized for CNG dispensing. IGL, the sole supplier of CNG and PNG in Delhi, Noida, Greater Noida and Ghaziabad, has remodeled one of its existing CNG station at Nanglamachi on Ring Road in the national capital on this concept, which is already being followed in countries like Argentina and Brazil.
Drug maker Panacea Biotec has entered into a strategic alliance with Kremers Urban Pharmaceuticals for 11 niche generic drugs in the US, which has an estimated market size of $4 billion at the innovator level. Under the agreement, Panacea would be responsible for research, development, registration and commercial supplies of the products while Kremers Urban would be responsible for marketing, sales and distribution. This is Panacea's second such collaboration with a foreign firm in near past. Recently, in September the vaccine maker entered into a strategic alliance with US-based Osmotica Pharmaceutical to develop and market 18 niche generic medicines for several markets, including the US.
Auto major Mahindra & Mahindra's (M&M) Korean subsidiary SsangYong expects to improve financial performance in the next two years. SsangYong had posted net loss of KRW 13.4 billion ($12.4 million) for the quarter ended September 30, against KRW 35.4 billion ($32.7 million) during the year-ago period. The company has also launched Ssangyong's Rexton SUV in Hyderabad market. M&M, which emerged as the preferred bidder for SsangYong in August 2010, holds 70 percent stake in the company, for which it shelled out $463 million about Rs 2,105 crore. Ssangyong recorded 29,039 vehicles in sales volume, which includes 11,906 CKD vehicles in domestic sales and 17,133 in exports.
The Revenue Department is working on a comprehensive plan to recover tax dues from debt-ridden Kingfisher Airlines (KFA), which owes more than Rs 200 crore to the exchequer. As a matter of fact both Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) have quantified the amount which Kingfisher owe to the government and will be making out comprehensive plan to recover tax dues. The CBEC indicated that the Reveune Department might talk to aviation regulator DGCA as the beleaguered airlines is likely to submit a comprehensive revival plan to DGCA by this month-end.
Jyoti has bagged a prestigious order worth Rs 7.48 crore from Government of Maharashtra - Water Resources Department for supply, erection, testing and commissioning six forced water lubricated V.T. Pump set with allied equipment complete for Bramhagavan LIS Part-2, stage 1&2, Tal - Paithan, District - Aurangabad . Jyoti is a leading ISO 9001: 2008 engineering company offering reliable quality products and services. The Jyoti Group of Companies is a conglomeration of industrial units involved in manufacturing and marketing a wide range of electrical and hydraulic engineering equipment used extensively in the vital sectors of national and international economy.
VISA Steel and SunCoke Energy, Inc. have entered into agreements to form a coke making joint venture (JV) in India. SunCoke Energy will invest about Rs 368 crore to acquire a 49% interest in the joint venture while, VISA Steel will hold the remaining 51%. The joint venture, which will be unlevered at closing, will be comprised of VISA Steel's existing 400,000 MT per annum heat recovery coke plant and associated steam generation units at Kalinganagar in Odisha, India. The transaction is expected to close in the first quarter of 2013, subject to customary conditions, including approval from VISA Steel shareholders. VISA Steel is a leading player in the Special Steel, Coke and Ferro Chrome industry in India with manufacturing facilities located at Kalinganagar Industrial Complex in Odisha.
IL&FS Transportation Networks has achieved financial tie-up of loans for a sum of Rs 47.15 crore on November 16, 2012. The company has executed loan agreements with Central Bank of India for the same. Earlier, the company and its subsidiary, Futurcage Infrastructure India had been mandated with the project for undertaking the development of an Integrated Multi level Automatic Car Parking facility and real estate portion of approx 4944 sq. meters at Khilwat, Hyderabad by the Greater Hyderabad Municipal Corporation (GHMC), Hyderabad. The concession agreement was signed on May 25, 2012 for a period of 30 years including construction period of 2 years. The estimated cost of the Project is Rs 72.54 crore and the revenue to the project shall accrue from parking fee and leasing of retail space during the concession period.