Six New Industrial Parks Likely to push growth of plastic sector in India

The Indian government has announced its decision to set up six new plastic parks as part of the ongoing five-year plan which runs from 2012-2017. This is in addition to the four parks which are already under construction, thus making the total number to ten.

Six new industrial parks likely to push Indian plastic sector growth

Announcing the decision during a seminar held in North India, the Joint Secretary for Petrochemicals- Neelkamal Darbari stated that the newly proposed plastic parks would be set up in the states of Punjab, Haryana, Rajasthan, UP, Odisha and Andhra Pradesh. The works on four parks in Madhya Pradesh, Tamil Nadu, Odisha and Assam are already underway and are supposed to finish within two years.

Plastic parks are aimed at bringing together plastic reprocessing units, recycling units and waste management systems under one roof. The Indian government would provide grant funding up to 50% of the project cost subject to a ceiling of Rs. 40 crore per project.

The remaining contribution in the SPV will be from the State Government or State Industrial Development Corporation or similar agencies of State Government, beneficiary industries and loan from financial Institutions.

The estimated yearly consumption of plastic including PE, PP and PVC is nearly 9 million tonne in India. Almost 25% of the total plastic is being imported from other countries, especially from Asian countries such as Taiwan and China. As per statistics, the per capita plastic consumption in the country is around 7-8 kilograms, significantly lower when compared to 95 kg in USA and 65 kg in Europe.

Indian paper industry to grow at 6-8%

The market would expand by 0.7 million tonnes annually which would be sufficient to absorb the new capacities that will come up in the next 2-3 years.

The long-term demand outlook for the Indian paper industry remains favorable driven by increasing literacy levels, growth in print media (particularly in the vernacular languages), higher government spending on education sector, changing urban lifestyles as well as economic growth. Given that these factors are likely to be sustained, the paper industry is likely to continue growing at a rate of 6-8% in the medium to long term although there maybe aberrant years given the cyclical nature of the industry. In addition, the preparation for general elections will provide further fillip to paper demand in FY14, says ICRAin its study on Indian Paper Industry. 

According to ICRA, the low per capita consumption of paper provides tremendous potential for growth in paper demand. Further the capacity addition programme has now come to an end and there has been a considerable slowdown in new project announcement and completion. With the recent capacity additions coming to completion any fresh announcements is unlikely in the near term and with gestation period of 24-30 months for new capacities, supply side pressures have started easing. ICRA expects 0.35 million tonnes of capacities to be added during FY14 and 0.3 million tonnes in FY15 (as against current capacity of 13 million tonnes). 

Assuming a moderate growth of 6% per annum, in ICRA's view, the market would expand by 0.7 million tonnes annually which would be sufficient to absorb the new capacities that will come up in the next 2-3 years. However, the favourable demand-supply dynamics may not immediately translate into higher profits for paper companies. The cost for most of the key inputs is currently at a very high level and domestic coal and wood prices are still increasing at a rapid pace. The ability of the companies to pass on these costs will remain the key to profitability. Companies with better cost and capital structures and a diversified portfolio of products would be better placed to endure the pressures in the medium term. 

The paper industry reported robust growth in revenues during FY08-FY13 driven by steady growth in consumption levels and increase in realisations. This period also saw steady increase in the cost of inputs such as wood, chemicals, coal etc. Over-supply scenario, rising cost pressures and increasing competitive pressures from imports made it increasingly difficult for the paper mills to pass on these cost increases. As a result, the operating profitability of the industry came under pressure in FY12. 

According to ICRA's sample study, the average operating margins of the companies declined from 21.96% in FY08 to 15.87% in FY13. Though pricing flexibility has improved marginally with an improvement in demand-supply dynamics, in ICRA's view, the profitability of paper mills continues to remain under pressure due to rising costs of raw material, coal and chemicals. Further, high depreciation and interest costs on account of debt funded capital expenditure undertaken by the industry have resulted in pressure on net profitability of paper companies as reflected by decline in net profitability from 11.34% in FY08 to 1.44% in FY13 for companies in ICRA sample. The funding of capacity expansion projects through bank borrowings led to increase in gearing levels of paper companies from the lows of FY06. High gearing levels (in the range of 2-3 times as on March 31, 2012) coupled with decline in profitability has put pressure on the debt coverage indicators of the industry.

Cairn India will invest $3 billion in next 3yrs in Rajasthan oil fields

Cairn India will invest $3 billion (over Rs 16,000 crore) over the next three years in finding more oil and gas in its showpiece Rajasthan oilfields and other blocks in India, its Chairman Navin Agarwal said today. 

Of this, the company will invest more than Rs 13,000 crore in the prolofic Rajasthan block alone, Agarwal told the company's annual shareholders meeting. 

The investment will be fully funded from the firm's cash resources and will target adding 530 million barrels of oil to its reserves. 

"Over the next three years, through the end of FY2016, your company will invest more than Rs 16,000 crore ($3 billion) in pursuit of finding and producing more oil," he said. "In Rajasthan, as an example, your company will invest more than Rs 13,000 crore ($2.4 billion) and drill more than 450 wells." 

Cairn plans to raise crude oil production from Rajasthan fields by as much as 23 per cent to 215,000 barrels per day by March, 2014. 

Rajasthan block currently produces under 175,000 bpd from five fields --- Mangala, Bhagyam, Aishwariya, Raageshwari and Saraswati. 

The company plans to drill more than 450 wells in Rajasthan block over a three year period, a significant increase from the current rate of 25 wells drilled in FY'2013. The wells planned include 100 exploration and appraisal (E&A) wells, while balance will be development wells to sustain and enhance production volumes. 

The E&A wells are aimed to target gross recoverable risked prospective resource of 530 million barrels of oil equivalent. 

"We have a well-balanced portfolio of exploration, development and producing assets and a clear plan, which will see us aggressively pursue exploration and development opportunities in the months and years ahead," Agarwal said. 

In the Rajasthan block, Mangala field is producing at plateau rates of 150,000 bpd. Aishwariya commenced production in March and is expected to ramp up to approved rate of 10,000 bpd over the next few months. 

Bhagyam, the second biggest oilfield behind Mangala, is expected to ramp up to the approved rate of 40,000 bpd by the second half of current fiscal. 

The aggressive exploration and fast-track development is designed to bring new fields into production in a region where Cairn India has already discovered around 1.3 billion barrels of oil equivalent resources but has drilled only a part of its acreage. 

Agarwal said Cairn's operations contributed Rs 20,000 crore to the government, perhaps the highest in private sector. The company contributed more than 80 per cent of India's crude oil production growth last year, saving Rs 38,500 crore ($7 billion) in foreign exchange. 

Cairn recommenced exploration in Rajasthan after a gap of five years, that resulted in its 26th discovery. 

"We committed investment of about $3 billion on further exploration and increase in production," he said. 

Cairn is seeking approval of an Integrated Field Development Plan for Rajasthan discoveries. "An early approval will substantially expedite production ramp up," he said adding the company had also submitted a formal application for an extension of Rajasthan block licence. 

"In addition to sustaining and increasing production from five oil producing fields, your company is also working towards commercialising 20 other discoveries," he said. 

Further renewed exploration will help realise an estimated 530 million barrels of oil equivalent of gross recoverable risked prospective resource, he said. 

Over the last year, Petroleum Ministry announced numerous positive policy changes - most significantly, policy clarity on exploration in development blocks allowing continued exploration in discovered field or Mining Lease areas. 

"Exploration has been, and will continue to be, central to our growth plans. As we embark on the next stage of our growth journey, I could not be more excited about our future," he said.

Jindal Power ties up Rs 5,418 crore loans for Chhattisgarh plant

The company is targeting 10,000 MW of generation capacity by 2020 at an investment of about Rs 70,000 to 80,000 crore, Raman said.

Jindal Power, a subsidiary of Jindal Steel and Power, has tied up Rs 5,418 crore in loans for two units of its upcoming 2,400 MW generation plant in Chhattisgarh, a top company official said today. 

The project at Tamnar consists of four units of 600 MW each and will cost about Rs 13,500 crore. The first two units will cost about Rs 7,740 crore and are being funded with a debt-equity mix of 70:30. 

"All the clearances are in place for the project. The first two units are near commissioning. They (the first two units) will cost approximately Rs 7,740 crore, of which debt is Rs 5,418 crore. This is being funded by a consortium of nine banks, led by State Bank of India," Jindal Power's Director ( Finance) B S Raman told reporters here. 

The two units due to be commissioned will get 65 per cent of their coal requirement from Coal India, while the remainder will be met through imports. 

Jindal Power is also trying to start at least one additional 600 MW unit in the current financial year, though it is yet to secure a coal linkage, Raman said. Overall, the project will need 4 million tonnes of coal annually. 

Jindal Power currently has a generation capacity of 1,000 MW at the same location. The station has been operating at a plant load factor of over 95 per cent for the past two years and its power is sold mostly through short and medium term power purchase agreements. 

The company is targeting 10,000 MW of generation capacity by 2020 at an investment of about Rs 70,000 to 80,000 crore, Raman said. 

About 7,000 MW of the new capacity will be added in India, either by setting up a new plant or acquiring one, while the remainder will be developed overseas, mostly in Africa. 

The company is in talks with government agencies in Botswana and Senegal for setting up plants, he said. 

The cost of generating power in African countries is about Rs 11-12 crore per megawatt, compared with the Indian average of Rs 7-8 crore per megawatt, Raman said.

The Heavy Industries Ministries seeks higher duty on imported power equipment

The Heavy Industries Ministry has sought an additional levy of 5 per cent on imported power gear to protect the strugglingdomestic power equipment players. 

The latest move comes against the backdrop of local power equipment makers, including state-run Bhel, facing tough market conditions due to overall economic sluggishness and cheaper imports mainly from China. 

Heavy Industries and Public Enterprises MinisterPraful Patel has written to Finance Minister P Chidambaram seeking higher import duty on power gear, which currently attracts 21 per cent levy. 

"We have sought 5 per cent additional customs duty on imported power equipment from theFinance Ministry to protect the interest of domestic industry," Patel said here today. 

He was speaking to reporters on the sidelines of an event organised by the Indian Electrical and Electronics Manufacturers Association (IEEMA). 

Patel said: "I think the government has recognised that import of power equipment is needed to be at least arrested and for that reason there has been a duty now on imports of electrical equipment. 

"As a result of which we are seeing that all the IPPs specially the private sector ones are coming to the private ones like Bhel and L&T and others for placing their equipment orders." 

A government official said additional duty on overseas power equipment would help the domestic industry "which is in a bad shape". 

In July last year, the government had slapped 21 per cent import duty on power equipment. 

The Cabinet, last year, had approved 5 per cent basic customs duty, 12 per cent counter-veiling duty and 4 per cent special additional duty on import of power gear. 

Stressing upon the need for government intervention to protect the domestic industry, the Minister said that every country looks at its own interest. 

"Countries like the US and China exercise control to protect the interest of their domestic industry. We also have a huge responsibility in developing our nation and should look at new ways. 

"Some government intervention is required to protect domestic industry," he added. 

Patel noted that domestic players like Bhel and L&T have actually added huge capacities but the slowdown in power sector resulted in an adverse impact. 

Understanding Pump Curves # 3, Centrifugal Pumps in parallel

By Ron Astall, Union Pumps Australia

Centrifugal pumps are frequently operated in parallel to achieve higher system flows, to enhance system flexibility or to provide greater pump redundancy and hence better system availability.  For very large projects, limited availability of sufficiently large pumps or limits on driver size or electrical starting current may dictate the use of multiple pumps. There are traps for the unwary.  Simply running an additional pump in parallel may not provide the expected results.

In our last article Stable & Unstable Curves, we looked at what makes a centrifugal pump curve "stable or "unstable". We also discussed the importance of understanding your system and, in particular, how the system will only operate where the pump curve intersects the system curve, and the differences between "steep" system curves and "flat" system curves. These preceding concepts are absolutely crucial to understanding many of the issues associated with operating pumps in parallel.

To begin, we will define parallel operation and outline how to predict system performance when two or more pumps are operated in parallel. We will discuss selection rules for parallel operation and then look at how different system characteristics react to parallel pump operation.

Parallel operation

"Parallel" operation means that two or more pumps are operating with common inlet and outlet systems. This means that each pump will have the same differential head. The total flow is the sum of the individual pump flows. See Fig 1.

Predicting performance

To predict the system performance, a combined curve for all pumps can be produced by adding the individual flows from each pump curve at a common head. This is illustrated in Fig 2 below :

As with any pumping system, the system will operate where the combined curve intersects the system curve.

In this example, the Pump curves used are not identical and this highlights a likely serious operating problem. Because Pump 'A' has a higher head at zero flow, this pump will overpower Pump 'B' at low system flows. This is highlighted in Fig 3.

In this scenario, the pump with the lower head will be stalled, and assuming that a non return valve has been fitted, it will be running at closed valve with all the attendant risks and damage.

Matching pump curves for parallel operation – selection rules

The primary concern when running centrifugal pumps together in parallel is that pumps share the load safely at lower flows.

This does not mean that pumps must have identical characteristics. Groups of low flow pumps and high flow pumps are often operated together in parallel to match variable system demand. The aim is that all pumps have matching heads at low flow to prevent pumps being stalled or blocked in by the others.

1. It is most important that the zero flow or "shut valve" heads are matched for pumps that will operate together in parallel.
2. Unstable pump curves must be avoided for parallel operation, particularly where there is any chance of operation anywhere near their point of instability. Unstable pump curves present a very real risk of surging when operating in parallel.
3. Steeper pump curves are preferred for parallel operation to assist with load sharing at low flows. Pump curves that are very flat at low flow are prone to wide flow variations with minor changes in head and may make load sharing difficult. See Fig 4.

4. Be aware of minor performance variations that may change the suitability of otherwise well matched pumps. If one pump has had more use and is worn, its curve may no longer match the other pumps. Pumps using different drivers such as a steam turbine driven pump operating in parallel with an electric motor driven unit may operate at sufficiently different speeds to cause mismatch of pump curves at low flow.

Will parallel operation suit your system?

This depends on what you are trying to achieve.

If the aim is to increase and decrease system flow by operating one, two or more pumps in parallel to meet changing demand then it is important to understand the type and limitations of your system.

If your system curve is relatively "flat"; ie. mostly static difference in levels and minimal pipe friction, then operating pumps in parallel will provide a useful performance variation.

If your system is mostly friction resistance (a steep system curve) such as a closed loop circuit or a lengthy pipeline, then performance variation will be minimal. This may be a good or a bad thing depending on what you are trying to achieve.

Flat system curves

Refer Fig 5.

When the system resistance is relatively flat (not much friction), operating additional pumps in parallel will produce a useful flow increase. Incorrectly, many operators expect that flow will double if two pumps are running in parallel. This cannot happen because, when added together, the combined pump curve intersects the system curve at a higher head due to increased frictional resistance and hence each pump will be operating at a higher head and lower individual flow than when operating alone.

Steep system curves

Refer Fig 6.

When the system curve is steep (mostly friction) this steep increase in friction head as system flow increases, means that each pump will be running at a significantly higher head and the individual pump flows will be much less than in single operation. Overall, the change in flow will be small when additional pumps are switched on.

This may be frustrating if you want to increase or vary system flow by switching pumps on and off.

Conversely, this particular aspect of steep systems; such as long pipelines and closed loop recirculating systems; is very useful to pump users that need to maximise system reliability.

These users will often specify multiple combinations of pumps operating in parallel to minimise system disruption in the event of a pump failure.

Typically, in critical applications such as cooling water circuits, three pumps may be installed with the normal operating mode being two running in parallel and the third being a standby unit. If it becomes necessary to shut one of the operating pumps down, the remaining operating pump will still provide a high percentage of the system flow until the standby pump can be started.

Is parallel operation good for you?

Installing pumps to operate in parallel can be an excellent strategy.

It is however very important to understand the aim of the exercise.

Parallel pump installations are a great idea in the following circumstances:

1. Where limited availability of sufficiently large pumps or limits on driver size or electrical starting current dictate the use of multiple pumps.
2. When flow needs to be varied according to varying system demand and when the system resistance characteristic is reasonably "flat".
3. Where the use of multiple combinations of pumps operating in parallel in a "steep" system resistance will minimise potential system disruption in the event of a pump failure.

Remember:

1. It is most important that the zero flow or "shut valve" heads are matched for pumps that are to operate together in parallel.
2. Unstable pump curves must be avoided for parallel operation.
3. Steeper pump curves are preferred for parallel operation.
4. Be aware of minor performance variations that may change the suitability of otherwise well matched pumps.

Most important of all; understand your system.

Daelim receives contract from KNPC to remodel FCC

Daelim held a contracting ceremony for the project to remodel KRW 200 billion FCC and construct acid water treatment facilities at the Kuwait National Petroleum Company (KNPC) head office on June 26, 2013. Ordered by KNPC, this project will be implemented by Daelim's Plant Business Division in EPC lump sum turnkey fashion wherein the company is responsible for engineering/design, procurement, construction, and test run.

This project is part of the Clean Fuels Project (CFP), which is expanding KNPC's large-scale refinery, and will be carried out at the Mina Al-Ahmadi refinery, part of Kuwait's largest oil refining industrial complex, about 35km away south of Kuwait City. Daelim will engage in construction to produce gasoline, LPG, and propylene by decomposing heavy crude oil with higher impurity content through the remodeling of FCC. The company will also build facilities to treat phenol acid water generated by the production and a cooling tower to supply cooling water. The project duration is 24 months.

TECHNIP awarded contract to supply Hydrogen Reformers to Puerto La Cruz refinery

Technip has been awarded by the Hyundai-Wison consortium(1) a significant(2) contract to supply its proprietary technology as well as engineering and procurement services for two hydrogen reformers in Venezuela. These 135-million standard cubic feet per day (151-thousand normal cubic meters per hour) reformers are part of the Deep Conversion project being executed by the consortium for Venezuela's state oil company, Petroleos de Venezuela SA (PDVSA), to upgrade the Puerto La Cruz refinery.

The contract covers the complete engineering, fabrication, modularization, procurement as well as pre-commissioning and start-up assistance. This project will utilize Technip's high-efficiency top-fired steam reformers, to produce high-purity hydrogen and export steam, and the latest nitrogen oxide reduction technology to ensure minimum emissions.

Technip's operating center in Claremont, California will execute the contract, which is scheduled for completion in the second semester of 2014.

Afcons Infrastructure is setting up a Rs 250-crore fabrication yard at Mahua, Gujarat, for oil and gas platforms

Afcons Infrastructure is setting up a Rs 250-crore fabrication yard at Mahua, Gujarat, for oil and gas platforms.

Afcons is a Shapoorji Pallonji Group company.

A memorandum of understanding has been signed with the State Government after acceptance of its detailed project report.

The fabrication facility will come up on 120 hectares.

"We are going to build offshore jackets and the top side for well and process platforms there," said Pramod Kumar Johri, Director, Oil & Gas, Afcons.

Johri said ONGC was set to order out over $10 billion over the next five years and Afcons was gearing up to bag a fair share.

The orders are for offshore and onshore platforms, besides renovation of installations in the western and eastern region, he said.

Currently, Afcons is executing a Rs 1,800-crore order for the Heera field, off Mumbai. The order, awarded by ONGC, is being done in partnership with Technip of France and a Malaysian company.

Process platforms

Earlier, the first process platform order worth about Rs 2,200 crore from ONGC marked Afcons foray into the offshore market.

The project was executed in joint venture with PT Gunanusa of Indonesia. On the recent pipeline order executed by Afcons for ONGC, he said it was worth Rs 50 crore. Asked what expertise overseas partners bring in, he said partnerships helped to qualify in the first place.

The company also felt it was more competitive when it came to process platforms.

Process platforms orders stood at Rs 1,500 crore and the company considered it as the right size to work on.

Afcons holding company, Shapoorji Pallonji, is also focussing on oil and gas.

It had recently chartered a floating FPSO (floating, production, storage and offtake) platform to ONGC and has been contracted for another platform.

The FPSO is a floating process platform which can substitute a permanent one, he said.

Afcons is also scouting for overseas opportunities. It is looking to expand to West Asia, besides Myanmar and Indonesia.

The company wants to tap the potential for oil and gas exploration in North Africa.

Nordson acquired two polymer processing companies from Germany's Kreyenborg Group for a total of 135 million euros (US$176.5 mln

Nordson acquired two polymer processing companies from Germany's Kreyenborg Group for a total of 135 million euros (US$176.5 mln), according to a July 18 regulatory filing with the Securities and Exchange Commission. The two German companies Nordson acquired are Munster-based Kreyenborg and BKG Bruckmann & Kreyenborg Granuliertechnik, according to the July 16 SEC filing. Material terms of the transaction are being provided in required regulatory filings. The transaction is expected to close within the next 60 days pending customary closing conditions and regulatory reviews.

"These businesses are highly complementary to our other recent acquisitions in the polymer processing space and fit our strategy of providing our customers with high value, mission-critical melt stream components that will enhance the performance of their systems." "These businesses are highly complementary to our other recent acquisitions in the polymer processing space and fit our strategy of providing our customers with high value, mission-critical melt stream components that will enhance the performance of their systems," said Nordson President and CEO Michael F. Hilton. "These businesses also immediately strengthen our relationships with key European OEM customers, deepen and expand our product offering, enhance our overall application expertise, expand our addressable market, and add recurring revenue opportunities to the portfolio. We expect to build on the current strong performance of these companies by leveraging Nordson's scale, global footprint and continuous improvement competencies.

Nordson manufactures and distributes screen chargers, valves, pumps and components for processing polymers. Both the German companies are involved in the production of special polymers. The acquisition of the German companies will extend Nordson's business into pelletizers production, a component used in polymer recycling. The deal also will extend Nordson's footprint to the Asian markets of Shanghai and Kuala Lumpur, Malaysia. Over the past year, Nordson has strengthened its hold in the polymer market by seeking strategic add-ons. Nearly a year ago, on July 21, it purchased New Castle, Pa.-based Xaloy Superior Holdings Inc. for $200 million. Xaloy is involved in the production of melt delivery components used in plastic processing. Before that deal, Nordson on May 21, 2012, purchased Chippewa Falls, Wisc.-based EDI Holdings Inc. for $200 million. EDI is involved in the manufacture of polymers used for plastic processors and web converters.

Chinese market for medical polymer to be US$ 4 bln by 2017

The Chinese market for medical polymers was valued at US$1.7 bln in 2011 and at US$1.9 bln in 2012, as per BCC Research. The report forecasts total market value to surpass US$4 bln in 2017, after increasing at a five-year compound annual growth rate (CAGR) of 16.1%. The Chinese medical polymer market is growing quickly due to its close relationship with the pharmaceutical and medical device industries in China. The medical polymer market has grown steadily over the last twenty years and BCC Research predicts that this growth will continue over the next five years.
The Chinese medical polymer market is expected to be influenced by several factors such as the fast growth of the medical products market, establishment of pharmaceutical and medical device manufacturers in China, shifts by polymer manufacturers towards medical applications, production efficiency improvement, low emission standards and solutions for environmental constraints. According the report, the cardiovascular market is the fastest growing market in terms of consumption of medical polymers, although it is currently one of the smallest markets. Additionally, the report states that PLA will be the fastest-growing segment over the next five years and it will grow at a CAGR of more than 26% from 2012 through 2017. The research and development efforts for nontoxic polymers are increasing because of the high safety standards in the medical industry. The industry will also be significantly impacted by the increased environmental regulations in China. BCC Research has analyzed the impact of these new regulations and their impact on the medical polymer market specifically in this report.
The medical polymers market and production centers are concentrated in five major regions in China, including the Yangtze River Delta, the Pearl River Delta, and Northern China. This report identifies the Yangtze River Delta as both the largest and fastest growing region for medical polymers in China.

Vedanta Aluminium optimistic of getting bauxite from Odisha

Days after restarting its refinery in Odisha's Kalahandi district following a seven-month shutdown due to a bauxite scarcity,Vedanta Aluminium Limited is optimistic about getting the ore from the state itself. 

"If aluminium industries cannot survive in Odisha, having huge bauxite reserves, then they are not feasible anywhere in the country," Vedanta Aluminium Chief Operating Officer Mukesh Kumar said after meeting Chief Secretary J K Mohapatra here today. "Therefore, we hope that VAL will get the required raw material from the state." 

VAL, a unit of Anil Agarwal-led Vedanta Resources, restarted its 1 million tonne per annum alumina refinery at Lanjigarh on July 11. Bauxite for the plant, which is operating at 60 per cent capacity, is being procured from Jharkhand,Chhattisgarh and Gujarat. 

Kumar's optimism stems from the recent submission of a report of an inter-ministerial committee of the state government to Chief Minister Naveen Patnaik. The report of the panel headed by Finance Minister Prasanna Acharya is on the long-term linkage policy for supply of ore to local industries such as VAL's alumina plant at Lanjigarh. 

Kumar said the company was hopeful of a positive response from the committee's report. 

"In our presentation to the ministerial committee on February 15 this year, we had clearly mentioned about our plans as well as the alternative sources of bauxite to keep alive the refinery. We hope that the committee's report will be positive," Kumar said. 

VAL's refinery is adjacent to the Niyamgiri Hills, where the bauxite is proposed to be mined. 

The Supreme Court had on April 18 directed that the views of the local residents be taken on whether to allow mining on the Niyamgiri hills. Kumar declined to comment about the ongoing Gram Sabhas being held by the state government as per the direction of the apex court. 

The tribal residents of Serkapalli village in Rayagada district unanimously rejected mining at the Niyamgiri hills, asserting their religious and cultural rights at the first gram sabha.

Reliance Industries plans to invest $6.5 billion in its KG-D6 gas fields

Reliance Industries plans to invest $6.5 billion in its KG-D6 gas fields to re-attainnatural gas production of up to 60 mmscmd by 2019-20 and regain the lost glory of the prolific block. 

"We can attain a production level of 40 to 60 million standard cubic meters per day (mmscmd) by 2019-20 provided we get timely approvals and the right natural gas price," RIL President & Chief Operating Officer (E&P) B Ganguly told PTI.

The Bay of Bengal KG-D6 fields, which began gas production in April 2009, had hit a peak of 69.43 mmscmd in March 2010 before water and sand ingress led to shutting down of more than one-third of the wells. Current output is just over 14 mmscmd.

While the company carries out remedial measures to augment production from the currently producing Dhirubhai-1 & 3 (D1&D3) and MA fields, it plans to invest $3.155 billion in producing 20 mmscmd of gas from R-Series discoveries in the block and another $1.529 billion in four satellite fields to produce 10 mmscmd.

Another $1.2 billion is planned to be invested in other discoveries in the block, he said.

The company will invest $747 million in augmenting production from D1&D3 and MA fields by putting up booster compressor and repair work at the closed wells.

Besides $6.451 billion, another $6.151 billion is expected to be spent as operating expenses, he said.

These investments were besides the $7.572 billion the company has already sunk in development of D1&D3 and MA fields, $1.261 billion of operating expenses and $1.094 billion in exploring for oil and gas in the block.

Ganguly said such large investments were viable at no less than $7.5 per million British thermal unit gas price after considering the cost of capital and royalty paid to the government on production.

"First gas from the satellite developments is expected in mid-2017-18," he said adding the company has not made investment or production projections of the giant MJ1 discovery made 2-km below D1&D3 field recently.

MJ1 may hold 2-3 trillion cubic feet of reserves, almost equal to reserves in D1&D3 fields.

RIL says MJ1 and most of the other discoveries in the KG-D6 block were uneconomical to develop at the current $4.2 per mmBtu price.

It is drawing comfort for the future investments from the government approval of the Rangarajan formula for pricing of gas according to which the rate in April 2014 would be $8.2-8.4.

"The key to these developments is timely approvals and gas price. If we don't get the right price, the gas will remain in the ground," he added.

Gram Sabha at Kesarpadi in Rayagada Dist opposes Mining in Niyamgiri Hills

Four days after Dongria Kondhs of Serkapadi village rejected bauxite mining in Niyamgiri hills, 33 of 36 villagers, including 23 women, of Kesarpadi in Rayagada district on Monday opposed mining in the hills, dealing another blow to Vedanta Aluminium's plans.

Gram Sabhas will be held in 10 more villages in both Rayagada and Kalahandi districts and most likely all these village councils would reject the mining proposal, a source said. The Dongria Kondhs once again made it clear that if the government uses armed force to evict them to facilitate Vedanta's bauxite mining at Niyamgiri Hills, they would rather prefer to die fighting.

However, a fresh wave of controversy has enveloped the process, raising doubts about its fairness.

Many suspect that the Dongria Kondhs are being influenced by foreign-aided non-governmental organisations (NGOs) and some "questionable" elements to speak against mining in the region. The suspicion draws credence from the fact that while 36 tribals were present at the meeting, over two hundred NGO activists were seen around the venue.

Besides, the open admission by Niyamgiri Suraksha Samiti (NSS) chief Bhalachandra Sarangi that the organisation has run mock gram sabha before the second meeting on Monday also creates room for suspicion that the Kondhs who attended the first meeting might have been influenced. The activists had virtually laid siege to both the gram sabha venues. "The villagers appeared frightened to talk to journalists. It seemed that they were tutored to convey just one message - that they consider the entire mountain range as sacred. To the specific question of how mining would affect Hundaljali, their sacred hill top 10 km away, all the eleven speakers simply said that they consider the entire hill range as sacred although they worship in their own village," Lanjigarh Vikash Parishad (LVP) president Sridhar Pesnia on Monday told ET.

LVP has been supporting the mining project and its beneficiary Vedanta's alumina refinery for some time. Officials of Vedanta Aluminium Limited (VAL) and the state-owned Odisha Mining Corporation (OMC) were conspicuous by their absence. VAL and OMC have entered into a joint-venture for bauxite mining in the region.

VAL, which has set up an alumina refinery at Lanjigarh on the foothill of Niyamgiri after being promised to get bauxite supply locally, finds it hard to run the unit due to lack of the raw material. A group of Congress MLAs on Saturday met Odisha governor SC Jamir and demanded that gram sabhas be held in all 212 villages and not just those adjoining the proposed mining site, adding more confusion to the entire process.

Zuari shelves Rs 5,000-cr urea project in Karnataka

Zuari Industries, which is in talks with UB Group Chairman Vijay Mallya to buy Mangalore Chemicals and Fertilisers, has shelved its Rs 5,000-crore urea manufacturing project in Karnataka.

An official with the Karnataka Government as also one in the company confirmed the development, stating that the project was put on the backburner because of land acquisition issues.

In 2010, Zuari and the Karnataka Government had signed an MoU (memorandum of understanding) to explore the possibility of setting up the project near Belgaum in north Karnataka. The MoU was signed during the Global Investors' Meet organised by the Karnataka Government when B. S. Yeddyurappa was the chief minister. Zuari Industries was planning to set up a 1.3 million tonne per annum (mtpa) gas-based urea project, which was expected to go on stream in 2015-16.

Last week, South Korean steel giant Posco pulled out of its proposed Rs 36,000-crore, 6 mtpa project in Karnataka.

The only big steel project which is expected to see the light of day in Karnataka now is ArcelorMittal's Rs 30,000-crore, 6 mtpa plant. The Karnataka Government is learnt to have already handed over 1,800 acres to the L. N. Mittal-owned company last year.

It is learnt that following the MoU, Zuari had started talks with the State Government to identify land for the project and for supply of natural gas from the Dabhol-Bangalore gas pipeline. But the project, which required about 400 acres, ran into trouble after local leaders started questioning the merit of allotting land for the project.

This is not the first time they have opposed the land acquisition for such projects.

The ArcelorMittal project too got slightly delayed because of this issue, but was resolved later.

Posco and Zuari Industries, however, could not swing the deal their way.

Another Zuari project, a one million tonne fertiliser plant at Karwar in west Karnataka with a capex of Rs 750 crore has also not been pursued so far, the Karnataka Government official said. The promoters are yet to hold talks with the Government for land acquisition, he added.

Zuari Industries is part of the $3-billion Adventz Group which sells products under the brand name, 'Jai Kissan'.

Ceramic lined materials

Ceramic lined materials provide the extra protection of ceramic, which is particularly effective in applications requiring impact and sliding abrasion resistance. These ensure wear-resistant ceramic cylinders to resilient rubber or urethane, to create tough, durable lining systems that extend wear life on your production line, while reducing maintenance and downtime. Well-suited to the rigors of crushed rock, mineral concentrates, and other abrasive materials, the lining systems are ideal for heavy-wear and impact applications.

General features:

• High pressure and heat during the vulcanizing process creates an incredible bond between rubber and ceramic.

• Ceramics will stay in place until completely worn.

• Thickness and formulation can very to create a custom system for your installation.

• Urethane/Ceramic liners can be an alternative solution in applications where chemicals in contact with liners can adversely affect rubber compounds.

• Can be engineered to change size, placement, and spacing of ceramic cylinders to meet the right impact level and abrasion resistance for your particular application.

-Ceramic is good for sliding abrasion

-Rubber is excellent for impact abrasion

-The combination is ideal for sliding/impact abrasions

Abrasion-resistant Coatings

Abrasion-resistant Coatings help to avoid the wearing away of parts and equipment due to mechanical or contact related forces. Abrasion, also known as grinding or wearing away due to friction, is a factor on any industrial part, no matter the hardness. Abrasion resistant coatings help to minimize the effect of friction on the outer surface of metal parts. These offer four different options for your abrasion restant coating solutions: With the help of abrasion resistant coatings, hardness is only the beginning. Each of its four options help components maintain more conformity with specified dimensional tolerances, while maintaining a profitable mix between bond strength, coverage reliability, dimensional stability and cost effectiveness.

Conventional abrasion-resistant coatings often feature metal oxide particles incorporated within the resin film to suppress marring, scratching or abrading of the coating. Alumina is the preferred oxide for this purpose due to its extreme hardness (9 on the Mohs scale), and relatively low cost. The drawback to such alumina-containing films is that, although the abrasion resistance is often improved, the transparency of the coating is compromised due to the light scattering of the micron-sized alumina particles used.

However, the use of nanometer-sized alumina in such coatings offers a solution to this problem since the particles are less than 100 nm in diameter, and thereby greatly reduces haze from light scattering. In addition, the alumina particles produced in the PVS process are spherical, which, combined with their small and uniform size, yields a more even film surface to further enhance the scratch resistance of the coating.

The abrasion resistance properties of nanocrystalline alumina were evaluated by incorporating the particles in a crosslinked melamine-formaldehyde resin. Because melamine-formaldehyde resins are transparent and very hard, they are often used as protective coatings on non-flexible surfaces such as furniture and flooring. The alumina was first dispersed in water to disrupt the loose powder agglomerates, and then surface treated to attach functional groups to the oxide surface. The surface functionalization process was designed to prevent particle agglomeration during the film curing process.

A TEM image of the coated alumina particles is shown in Figure 1. As the image shows, the spherical alumina particles are each coated with a thin uniform layer approximately 0.5-1 nm thick. The coated alumina particles were blended with the aqueous melamine-formaldehyde resin system at the desired concentration, from which films were drawn down on glass substrates at 1 mil thickness and cured by heating at 150oC for 15 minutes. The cured film thickness was 9.6 mm.

Mouvex Eccentric Disc Pump

Mouvex's A Series eccentric disc pumps have incorporated a variety of upgrades to meet growing global demand, including the implementation of ISO PN16/ANSI 150 flanges. The A Series has also doubled its maximum differential pressure from 5 bar (72 psi) to 10 bar (145 psi), enabling it to be used in the safe transfer of viscous, non-lubricating, volatile or delicate fluids in a variety of new applications. The Mouvex A Series, previously available in cast iron construction, is now available in ductile iron construction—an upgrade suited for companies in the petrochemical industry, for example, who are integrating ductile iron systems into their processes. The upgraded A Series also features the availability of both Mouvex or standardized mechanical seals, which helps expedite installations regardless of location. The mechanical seal is positioned behind the piston and provides efficient shaft sealing. Mouvex A Series positive-displacement pumps enable product transfer up to 250 C (482 F). The pumps have maximum speeds to 750 rpm, maximum flow rates to 55 m/h (242 gpm), as well as suction and discharge ports from 1" through 4" in size. The A Series are positive displacement pumps and utilize eccentric disc technology, which enables self-priming and run-dry capabilities while maintaining constant flowrate regardless of changes in viscosity and pressure. Mouvex A Series pumps also maintain their initial performance over time and are ATEX-certified for use in potentially dangerous environments with the ability to run-dry for up to three minutes.

VA Tech Wabag bags Rs 344 Cr order for 100 MLD lIugin sewage treatment plant

VA Tech Wabag, involved in water and waste water management, has secured an order valued at Rs 344 crore for waste water management in the Philippines.

The order was secured in alliance with a local civil construction company, JV Angeles Construction Corporation from Manila Water Company, Philippines. VA Tech Wabag was the lead partner in the World Bank-funded project, the company said in its filing to the stock exchanges.

The work was for design and construction of 100 MLD lIugin sewage treatment plant for Pasig River Wastewater Catchment, Pasig city, Metro Manila, and the contract period is for two years.

Coleridge Shelley, Country Head, Wabag Philippines, said that it was the largest STP order from Philippines.

The company had earlier got an order for a water treatment plant at Putatan for Rs 125 crore, making  Wabag a prominent player in water and waste water market in the Philippines.

Cairn India awards 2-year 3D Seismic Survey Contract for Rajasthan Oil Blocks to Russian Firm

Cairn India Ltd has awarded a two-year contract for a 3-dimensional seismic survey of its prolific Rajasthan oil block to Russian firmIG Seismic Services for an undisclosed sum.


"The works may cover over 1,500 square kilometres (over 200,000 shot points). The start of works is planned for the beginning of October 2013," IG Seismic Services said in a statement. 

The Russian firm said it has signed a two-year contract for surveying the Barmer basin block. 

"The agreement envisages conducting seismic exploration works using 3-D technology," it said. 

Cairn, which earlier this year got government approval to restart exploration in the block, will use the 3-D seismic survey to locate newer oil and gas reserves and drill wells. 

IG Seismic Services senior vice president for sales and marketing Rustam Rakhmatulin said, "Large international companies from Poland,USA, India and Kazakhstan competed to win this tender. We are honoured to be entrusted to do the job, since the project of such complexity can be carried out only by a large, reliable and technologically advanced company." 

Cairn, which holds 70 per cent in the Rajasthan block, had previously announced an investment of USD 2.4 billion in the block by 2015-16. It currently produces about 170,000 barrels of oil a day from the block. 

State-owned Oil and Natural Gas Corp (ONGC) holds the remaining 30 per cent interest in the block.