UK companies eye tie-ups with Indian nuclear businesses

UK civil nuclear industry has firmed up plan for technical as well as financial tie-ups with the Indian counterparts.



As a beginning, UK's industrial major Sheffied has signed a joint venture pact with Bharat Heavy Electricals Ltd (BHEL) to make forging equipment not only to cater to the needs of nuclear industries from India and the UK but also the global market. Besides, Hindustran Construction Company has inked MoU with Amec plc for consulting services for fabrication of nuclear plants. UK's Nuvia, which is the nuclear specialist, covering both civilian and defence sectors, across the complete lifecycle from New Build, through Operations and Maintenance, to final decommissioning and waste disposal, has joined hands with Punj Lloyd.

Lady Judge, former chairman of UK Atomic Energy Authority and business ambassador told Business Standard BHEL chairman has offered to set up a working group to finetune JV arrangement in order to global assignments. She informed that India's engineering giant L&T has tied up with Rolls Royce to work in the field of instrumentation control. Moreover, Serco, which offers operational, management and consulting expertise in nuclear sector, plans to increase its presence in India's nuclear sector. Undoubtedly, India is leading the present nuclear renaissance and industries from the UK and India will have amply opportunities of mutual benefits. She said Indian and UK universities and educational institutions are currently spending 1.4 sterling each on research and training in the nuclear sector.



Lady Judge, who was in Mumbai along with a high level delegation of British companies engaged in civil nuclear sector headed by Keith Parker, said UK has launched nuclear addition of 16 GW through private sector companies and the first unit is expected to be commissioned in 2018. On the other hand, India plans to increase its nuclear capacity to 25 per cent at 63 GW by 2032 from the present level of 3 per cent.



One thing is clear that nuclear energy will help provide energy security, energy independence and address climate change issue. The business communities of both sides have a very important role to play in making sure that they do continue. UK and Indian industries can explore number of opportunities in nuclear support, equipment manufacturing and installation, operation and maintenance, monitoring and control system and education and training, she added.



As far as India's regulatory set up for nuclear sector is concerned, Lady Judge said the Atomic Energy Regulatory Board is doing fine job. I do not expect India to follow regulatory set up of US, UK or other nuclear countries but should strengthen on its own. India's regulatory system is well established, she opined.



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NMDC in talks with Tata Steel for setting up 2-mtpa steel plant at Bastar in Chhattisgarh

Iron ore miner NMDC today said it is in talks with Tata Steel to sign an equal joint venture for setting up a 2-mtpa steel plant at Bastar in Chhattisgarh.



"We are in talks with Tata Steel to set up 50:50 JV for a 2-mtpa steel plant in South Bastar," NMDC Technical Director N K Nanda told reporters on the sidelines of a conference here.



Nanda, however, declined to divulge any further details on the proposed joint venture.



"Nothing has been finalised, only an MoU has been signed between Tata and us. Probably after sometime, NMDC and Tata may come together to set up a 2 million tonne per annum (mtpa) steel plant," he said.



"To take it forward, both the Boards will have to discuss it further," Nanda added.



State-run NMDC and Tata Steel had signed the MoU in January last year to examine the possibility of a strategic alliance for acquisition, exploration and development of mines and setting up integrated steel plants.



The iron ore miner has, however, started working on its own 3-mtpa steel plant in Chhattisgarh.



"We are going ahead with our own steel plant (of 3 MTPA). We have already floated nine tenders for that. Two of them -- main plant and blast furnace -- have been finalised. We are expecting that production will begin by 2014," he said.



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Europe's largest speciality chemical company, Lanxess AG, sees India as one of its largest markets outside Europe.

Q&A: Joerg Strassburger, MD, Lanxess India



Europe's largest speciality chemical company, Lanxess AG, sees India as one of its largest markets outside Europe. Joerg Strassburger, country representative and managing director of Lanxess India, talks of its growth plans in an interview. Edited excerpts:



Lanxess has been present in India for the past six years. How do you view the growth story so far?



Lanxess was incorporated in India on February 2004 under the name Bayer Chemicals India. Being part of the Bayer group for over 100 years, we have a long relationship with India, dating back to 1888. Bayer was also having agency relationships with India for pigments and other products and started a production facility at Thane in 1967. In the past three years, Lanxess AG has invested over 50 million (Rs 310 crore) here, realising India's potential for our products. It is the second largest investment by Lanxess in any developing economy, after Brazil. In 2007, Lanxess decided to build a new ion exchange resin plant in Jhagadia, Gujarat, and also closed a rubber chemicals plant in Thane and moved it to Jhagadia. A major breakthrough was acquisition of the chemical businesses and assets of Gwalior Chemicals. Last year was an important one for our Indian operations, since we started the rubber chemical plant and ion exchange resin plant and commissioned co-generation steam and power plants at the Jhagadia and Nagda (Madhya Pradesh) sites.



How do you view the potential for Lanxess' growth in India?



All the 13 business units of Lanxess AG have operations in India and we are a leading supplier of performance polymers, advanced intermediaries and performance chemical products. Among these, seven business units have production facilities in India. I see maximum growth for the company from the automobile and paint sectors, which are growing above the GDP rate. Our rubber chemicals technologies are used worldwide and we are working with several Indian automobile OEMs (original equipment makers) to develop more fuel-efficient, lighter metal and plastic combined designs for automobiles. Water treatment is another area which will be a bigger one for us in India in future. We had revenues of close to 128 million (Rs 790 crore) in 2009 and the soon-to-be announced figures for 2010 will be much higher, since some revenues of the acquired Gwalior Chemicals will be reflected in this year's revenues.



What are your growth strategies for the coming years? Are you looking at further acquisitions?



We will start a semi-crystalline products manufacturing facility at Jhagadia and this will start production by 2012. The recently started ion exchange unit at Jhagadia will be oriented mainly as an export unit. We are also constantly looking at expanding in India. Our leather and material protection unit in Madurai, spread across 25 hectares with a production capacity of 12,000 tonnes per annum, will be relocated to the integrated Jhagadia site. Basic chemicals are produced at Nagda, from the acquired facility. We now employ about 750 people in India and this will increase significantly in the coming years. We are always on the lookout for suitable targets for acquisitions, at suitable prices. But money will not be a constraint in acquiring the right target.



How do you view the business envir onment in India? Many multinational corporations are complaining about procedural delays due to environment issues, land acquisitions and other various clearances.



So far, we have not encountered such major issues. It is necessary for the growth of this country to have the rules implemented properly. The rules applicable for one particular company should be the same for another company 100 metres away. I have seen this (problem) in India. Lots of clearances and bureaucratic objections at project development and execution stage will cause fear among corporations willing to invest in India.



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Coal shortage forces NTPC to shut down four units of 500MW at Kaniha

Power generation from 3000Mw NTPC-Kaniha plant, the second largest power plant in India, has drastically come down with four out of six 500 Mw units of the thermal station being shut down due to lack of coal.



The power plant is currently producing about 700Mw against a normal daily generation of 3000MW. NTPC-Kaniha provides power to 17 states.



The company authorities have been forced to shut down four units as coal supply to the plant has come to a grinding halt from Thursday last due to rail blockade agitation by local people near Talcher coalfields. Not a single tonne of coal has reached the plant from Friday due to the stir.

We are running only two units with partial load of 700 Mw with the available coal at our stock yard, said a top NTPC official warning that even this minimal operation of the plant cannot be possible beyond Sunday (today) if coal supply through Merry-go-round system of linked Lingaraj mine is not resumed by this evening. The steep slash in generation has had an adverse impact on national grid, he stated.



The power plant has been running with hand to mouth coal supplies for the last three years. As a result the authorities have not been able to build up coal stock to meet such eventuality. Besides drawing coal from Mahanadi Coalfield Limited (MCL), the plant has been using imported coal to meet the shortfall. But the rail blockade, cutting off coal supply from all sources, has jeopardized the functioning of the plant.



According to the official, four units of the NTPC-Kaniha plant are dedicated for the southern states. These states are now drawing only 350 Mw from running Unit 4 instead of normal drawal of 2000 Mw. Similarly, another 350 Mw is evacuated to eastern grid from Unit 2 against the normal supply of 1000 Mw.



Alleging chronic negligence of Railways to Talcher station, hundreds of locals led by local MP Tathagat Satpathy and MLA Braja Kishore Pradhan resorted to rail roko stir near the Talcher station from last Thursday blocking coal supply from Talcher coalfield. Talcher coalfield of MCL provides coal not only to different industries within Orissa but also to power stations in Tamil Nadu, Andhra Pradesh and other states.



All the power stations in these states, dependant on Talcher, are now in super critical state, according to a colliery officer.



The striking locals demand that all the Intercity and Express trains plying on Sambalpur and Bhubaneswar line should come to Talcher station instead of by-passing the station and running through Talcher Road, a few Kms away. We have been demanding this for a long time, but Railways is not listening to us, said MLA Pradhan announcing to continue the agitation indefinitely.



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Bina Refinery in India to start production soon

Bina Refinery is likely to start commercial production by this month-end or next month. The company has already done trial production. Company's Managing Director UK Joshi and state government officials have said they will start production this month, State chief secretary Avani Vaish said. The Rs 11,000 crore refinery, the first in central India, is coming up in Agasod village near Bina in Sagar district. Joshi said, We have done trial production for few products and commercial production may start this month-end. The company is learnt to have been waiting for Prime Minister Manmohan Singh's response who is likely to inaugurate the project.



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L&T, Gammon-Ansaldo fear losing to Chinese Equipment Manufacturer

Larsen & Toubro, Gammon-Ansaldo and other equipment makers, who hope to rival BHEL in India's power equipment market, fear they would lose out heavily to Chinese rivals as private power firms are willing to place orders only with tough conditions that add costs to their supplies.



Private power firms such as Tata Power, Reliance Power , Patel Engineering , Visa Power and Moser Baer Projects are asking equipment suppliers to give an undertaking that their foreign technology suppliers will ensure proper functioning of the equipment after delivery, industry officials said.



Technology providers, mostly in Europe, US and Japan, are not reluctant to provide such assurances, certification particularly to developing countries like India, and they would give such an assurance, called joint deed of undertaking, only if they also get royalty payment, equipment makers say. This would make it uncompetitive against Chinese equipment.



Industry experts said private power firms are demanding such undertakings, following the trend set by state-run companies like NTPC, Damodar Valley Corporation and state generation companies.



"Deed of joint undertaking is a double-edged sword. On one side it protects interest of the customer. The flip side is that outside partner also has a major say in which jobs and which terms to participate," L&T Power managing director and chief executive officer Ravi Uppal told the ET.



"When local players have established their credentials this kind of thing should not be insisted upon. The undertaking is being asked from local Indian companies for a joint venture, which they form with technology suppliers. In case of Chinese companies this doesn't apply. Suppliers charge a cost for making domestic suppliers uncompetitive," he said.



The problem is typical to private equipment companies' dealing in supercritical technology while state-run monopoly Bharat Heavy Electricals Ltd (BHEL) said it was in a position to ask for an exemption from the liability clause.



The energy-efficient, supercritical technology is a forte of players in China, Korea and Russia but a relatively new area for Indian manufacturers. Cost of initial supercritical units in the country as it is more due to higher import content and low volumes.



Private power producers feel that fixing responsibility of foreign collaborators is a logical move as power equipment market in India is at a nascent stage. They said most lending institutions also compel generating companies to ask for equipment guarantees.



But such guarantees are not easily available.



"As a matter of fact no foreign technology leader is prepared to sign a deed of undertaking covering total equipment. Technology providers are willing to sign back-to-back liability clauses. But besides loading to cost for the risk coverage, it is one of the serious bottleneck in up bringing power sector with world class technology at the speed it is required to meet national expectations," an Ansaldo Caldaie India spokesperson said.



Thermax India managing director M S Unnikrishnan said NTPC historically had the principle of taking joint deed of undertaking from technology suppliers. "But it is unfair on private companies' part to ask for it. We have been trying to negotiate with the private companies and inform them about our abilities."



BHEL chairman and managing director BP Rao said, "The company is in a position to bargain with the independent power producers and the trend is more prevalent in supercritical (technology).



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Reliance Industries plans $30 bln investment

Billionaire Mukesh Ambani-led Reliance Ind is planning major investments, totalling up to $ 30 billion over next five years in its various businesses, including energy and telecom sectors.



These investments of $ 25-30 billion (well over Rs 1,00,000 crore) would be mainly targetted at petrochemicals, exploration and production and telecom businesses of the corporate conglomerate.



The bullish investment outlook was disclosed by RIL at an investor conference hosted by Bank of America Merrill Lynch (BofA-ML) last week.



The company expects its five main business in the next 5-10 years to be petrochemicals, refining, E&P, retail and telecom.



As per the proposed capex (capital expenditure) investment plan, RIL would invest $ 10-12 billion in petrochemicals, while spending another $ 10 billion on exploration and development of (oil and gas) discoveries already made in shale gas in India and US.



Besides, RIL would invest $ 4.5-4.7 billion (over Rs 20,000 crore) in telecom over the next five years, Bank of America-Merrill Lynch (BofA-ML) said in a research note about its investor conference.



RIL has already spent $ 2.8 billion on acquiring 4G licenses and spectrum, which it got last year through acquisition of Infotel Broadband Services.



Infotel was the only entity to get pan-India license in the auction of Broadband Wireless Access spectrum conducted by the government last year.



RIL is currently in the process of finalising arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others for its 4G (fourth-generation) telecom service offerings.



BofA-ML also said that RIL has indicated a surge in its EBTDA (earnings before interest, taxes, depreciation, and amortisation) to $ 15 billion by FY15, from about $ 6.4 billion in the last fiscal ended March 2010.



Last month, RIL reported a 28.14 per cent rise in its third-quarter net profit at Rs 5,136 crore, helped by robust performance in its refining and petrochemicals businesses.



The turnover rose by about six per cent to Rs 62,399 crore for the quarter ended December 31, 2010, from Rs 58,848 crore in the year-ago period.



Commenting on the results, RIL chief Mukesh Ambani had said: "Reliance had another record quarter as both refining and petrochemical margins continued to improve and certain products recorded historic levels."



"Robust demand growth in home markets and highly competitive assets enabled Reliance to have industry leading operating rates and margins," he added.



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Shaw Group awarded contract for QAPCO 720,000 TPA Ethylene Plant

The Shaw Group Inc. has been awarded a contract by Qatar Petrochemical Company Ltd. Q.S.C. (QAPCO) to provide basic engineering services for the expansion of a 720,000 tpa ethylene plant in Mesaieed, Qatar. The project will provide the design needed for expanding the plants capacity by up to 25%. The undisclosed value of the basic engineering services contract will be included in Shaw's Energy & Chemicals segment's backlog of unfilled orders in the second quarter of fiscal year 2011. An established leader in ethylene technology, Shaw has provided technology, design, engineering and/or construction for more than 120 plants. Current projects underway around the world include the following:



In India, Shaw is providing proprietary technology and basic engineering for a new 450,000 tons per annum ethylene plant for GAIL (India) Limited.



In Turkey, Shaw is providing engineering and procurement services for an ethylene plant capacity expansion of approximately 10 percent for Petkim Petrochemical Holding AS.



In Singapore, Shaw is providing technology, engineering, procurement and construction services for a 1,000 KTA olefins recovery facility and a 220 megawatt power cogeneration unit for ExxonMobil Chemical.



In 2010, Shaw announced full commercial operation of a grassroots 1,320 KTA ethylene plant in Al-Jubail, Saudi Arabia, for Eastern Petrochemical Company (SHARQ).



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Ministry of Environment and Forests (MoEF) gave clearance to Jindal Steel and Power Ltd (JSPL) for its 6mtpa integrated steel plant and 1,000 MW power plant in Orissa

The Ministry of Environment and Forests (MoEF) on Monday gave its conditional go-ahead to Jindal Steel and Power Ltd (JSPL) for its six mtpa (million tonnes per annum) integrated steel plant and 1,000 Mw captive power plant in Orissa, which was stalled for some months. The Ministry had issued a showcause notice to the company in November 2010, asking reasons for not revoking earlier clearances.



This is the latest instance, where Environment Minister Jairam Ramesh is seen to have softened his stand on issues on which he was quite rigid earlier.



Recently, the minister gave a conditional clearance to South Korean steel-maker Posco for its $12-billion steel plant and also to SAIL for extracting iron ore from the Chiria mines in Jharkhand.



On November 22, 2010, the Ministry had issued a showcause notice to Jindal Steel and Power under Section 5 of the Environment (Protection) Act, 1986, asking the company to furnish more data in order to be granted the required environmental clearance for the six mtpa integrated steel plant and the captive power plant at Angul.



NEW CONDITIONS

* JSPL to install coal gasification technology using non-coking coal. Adopt dry quenching of coke to conserve water and mitigate pollution

* Fly ash generated from various activities to be used in cement, brick manufacturing and filing of mined-out area but not to fill low-lying area

* 2 per cent of the profit earmarked for CSR

* Continuous monitoring of air quality; publish reports on website

* Adopt water conservation measures. Avoid water drawal from Derjang dam

* Introduce energy conservation measures for integrated steel plant



On December 7, 2010, JSPL requested the Ministry to grant one month's time for furnishing the reply. The Ministry, in the same month granted extension of two weeks time and asked JSPL to respond by December 22, 2010. A personal hearing was also fixed on December 29, 2010.



JSPL gave additional documents sought by the Ministry in January 2011. The Ministry has now added six additional conditions which JSPL has to follow, failing which the Ministry will be forced to take necessary action. The directions given include that the company shall adopt dry quenching of coke to conserve water and mitigate pollution and the fly ash generated should be used for cement and brick manufacturing.



The company should not use fly ash in filling low-lying areas as proposed earlier. The company should earmark two per cent of their net profit for corporate social responsibility (CSR).



The company shall monitor the air quality and stack emissions in respect to PM10, SO2 and mercury. Drawal of water from the Derjang dam should be avoided and rain harvesting measures taken. Energy conservation measures for an integrated steel plant should be introduced.



Reacting to the conditional nod JSPL said: The company will comply with all directions given in the MoEF communication. Earlier in the month, Jindal Steel and Power had said it would commence phase-I of its three mtpa steel plant in Angul district of Orissa by the end of this year.



The company, which is headed by a senior Congress MP Naveen Jindal, plans to invest Rs 40,000 crore in Orissa to produce 12.5 mtpa steel in phases and generate 2,500 Mw of power over the next decade. The company is investing Rs 45,000 crore for coal gasification.



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BHEL receives USD 436 million order from Yemen

State-owned BHEL on Monday said it has bagged an USD 436 million (approximately Rs 2,000 crore) contract for setting up a gas-based power project in Yemen.



"BHEL has received an order for a Gas Turbine-based power plant from Yemen. The USD 436-million contract is for the Marib Gas-Based Power Project (Phase II)," a company statement said.



The project is financed by the Arab Fund for Economic and Social Development, the Saudi Fund for Development and the Government of Yemen.



Yemen plans to add another 3,000 MW of installed capacity in the next 4-5 years, which will present an opportunity to BHEL to further expand its operations in this country.



So far, projects totalling to over 12,500 MW have been contracted from overseas market by BHEL.



BHEL is presently executing 45 contracts in 23 countries, which include major turnkey projects in Bangladesh, Bhutan, Libya, Syria and Sudan.



Meanwhile, the PSU recently signed an agreement with Spain's Abengoa to set up solar power projects in India.



The agreement will enable both the organisations to leverage their capabilities in offering EPC solutions for solar power projects in India, as well as give them the opportunity to explore cooperation on energy projects in other parts of the world.



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L&T receives Rs 1100 Cr order for 375MW Gas Based Power Project of GSECL

Engineering major Larsen & Toubro on Monday said it has received a Rs 1,100 crore order from Gujarat State Electricity Corporation (GSECL) for setting up a 375-MW gas-based power plant at Dhuvaran, near Baroda.



The project, which will be executed by the gas-based power projects business unit of Baroda-based L&T Power, will be commissioned during the next Five-Year Plan, L&T said in a statement.



L&T will design, supply, install and commission the entire power project on a turnkey basis. It will procure advance gas turbines and high-efficiency steam turbines for the plant from Siemens AG, Germany.



"The EPC order was bagged by L&T under global competitive bidding against stiff competition from domestic and international power plant equipment manufacturers," L&T said.



L&T has already executed a number of gas-based power projects and recently commissioned a 238.5-MW co-generation power plant for Indian Oil Corporation at Panipat. It is also executing a 2x384-MW gas-based power plant for GMR Group at Vemagiri, in Andhra Pradesh.



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US lifts sanctions off ISRO, India

With the US lifting sanctions on ISRO, a top NASA laboratory has approached the Indian space agency with a proposal to collaborate for a moon mission aimed at getting back a kilogram of rocks from the lunar surface.



The iconic Jet Propulsion Laboratory (JPL), which has sent missions to Mars and Venus, wants ISRO to put a satellite around the moon which will be a link between its lunar lander probe and the earth.



"The mission is similar to the Chandrayaan-I mission. JPL has asked ISRO to put a satellite around the moon," ISRO Chairman K Radhakrishnan said here.



The Space Commission, India's apex space policy body, has given ISRO the go-ahead to partner with JPL for the project named 'Moon Rise' which could be launched by the National Aeronautics and Space Administration (NASA) under its New Frontiers Programme announced in 2009.



As part of the project, JPL plans to drop a robotic lander into a basin at the moon's south pole to send lunar rocks back to Earth for study.



The mission, if selected, would be launched in 2016. The 400-500 kg satellite is being planned to have a life of up to five years and could also carry some scientific experiments of ISRO, Radhakrishnan said.



He said the proposal was an outcome of India-US cooperation announced during the visit of President Barack Obama to India last year.



He said India's contribution to the project could amount to about 150 million dollars.



The mission is part of a joint proposal with JPL which will be put up before NASA.



"We will take forward the proposal and work out a detail plan once NASA selects the proposal," Radhakrishnan said.



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Power Ministry hopes to get clearance for Orissa 4000MW Ultra Mega Power Project

The Power Ministry is hopeful of receiving conditional forest clearance for coal to be mined in blocks attached to the proposed 4,000 MW UMPP in Orissa tomorrow, as invitation of preliminary bids has been hanging fire for a long time due to environment issues.



"The Ministry of Environment and Forests is likely to send the clearance report for the Orissa ultra-mega power project (UMPP) tomorrow... They have put certain conditions for the same," a senior Power Ministry official told PTI. The MOEF may provide conditional forest clearance to the project, stating that the two coal blocks which fell in "no-go" areas will be only be given to two power projects, though three fall within the area.



"Two coal blocks may be pulled out of the no-go area, thereby allowing mining in those mines... But that is likely to be for only two projects," the official said, adding that there are three power projects being developed in that particular area.



One project is the 4,000 MW ultra mega power project at Bedabahal, the second one is an NTPC project and the third is a state government project.



The MOEF is believed to have asked the Power Ministry to decide which of these two projects should get the coal blocks, as providing mines for all three projects would be difficult.



"We will see what can be done after we receive the official documents from the MoEF," he added.



Power Finance, the nodal agency for implementation of ultra-mega power projects in the country, has already postponed the process of inviting preliminary bids for the Orissa project till March next month.



This is the seventh time the bidding process for the project has been delayed due to environmental hurdles.



The MoEF had put three coal blocks allotted to the project -- Meenakshi, Meenakshi B and the dipside of Meenakshi -- in "no-go" areas, which means mining cannot take place in these areas, as it may cause damage to the environment.



This had resulted in delaying the bidding process for the project, as developers are shying away from committing their capital in the absence of the requisite clearances.



The government has so far allotted four UMPPs, of which three -- Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand) -- have been bagged by Reliance Power and the one at Mundra in Gujarat by Tata Power.



These UMPPs are going to contribute significantly towards the government's ambitious plans of adding about 1,00,000 MW of electricity in the next Five-Year Plan (2012-17).



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NTPC-BHEL JV should focus on BOP equipment

Power Minister Sushilkumar Shinde today said the joint venture between state-run NTPC and BHEL should focus on building equipment other than boilers, turbines and generators, as there is a dearth of companies engaged in the construction of such machinery in the country.



"There is a shortage of balance of plant (BOP) equipment in the market. Lot of companies are developing boilers, turbines and generators," Shinde said at the Operational Performance and excellence awards organised by NTPC.



"For sometime, NTPC-BHEL JV company should do only the balance of plant equipment, after that, they may go BTG sets," he added.



NTPC-BHEL Power Projects is a 50:50 JV firm formed in April, 2008, with a focus on engineering, procurement and construction contracts, besides the manufacture and supply of equipment for power plants.



The JV has an order book of about Rs 450 crore. It is targeting an order book of Rs 7,000 crore by the end of the current fiscal (2010-11).



At present, NBPPL is working on the 100-MW Namrup Power Station in Assam and the 726-MW combined cycle power plant being set up by ONGC Tripura Power Corporation at Palatana, in Tripura.



It is also executing the 500-MW Singrauli thermal power plant and the 600-MW thermal power plant of Andhra Pradesh Power Generation Corporation (APGENCO) at Rayalseema.



Meanwhile, the JV firm is also looking for a global technology provider and may offer them a minority stake in the company.



NTPC-BHEL Power Projects falls under the administrative control of the Ministry of Heavy Industries and Public Industries.



The Ministry of Power has set a target for adding 62,000 MW of power generation capacity during the ongoing XI Five-Year Plan Period (2007-12).



The minister also said, "We would be able to add 15,000 MW by March 31, 2011."



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DRDO-India & US jointly developing projects

The chief of India's Defence Research & Development Organisation (DRDO) today made the startling revelation that his organisation is in partnership with US entities in developing at least 30 high-technology defence projects.



Addressing a press conference at the Aero India 2011 air show in Bangalore today, DRDO Chief V K Saraswat broadly described the areas of the joint DRDO-US research. He said they were jointly developing about 30 programmes related to materials, services, and manufacturing technologies. There are some related to advanced communications systems. There are many (projects) that are related to low-intensity conflict.



This indicates Washington's rapid relaxation of the stringent technology denial controls that the US Congress had placed on DRDO after India tested five nuclear weapons in May 2008. Until January 25, several DRDO laboratories had featured on Washington's Entity List, a list of agencies and institutions that are banned from receiving dual-use items from the US. A dual use item is one that has military, as well as civil, uses.

Controversially, Saraswat also revealed DRDO was permitting American inspectors to examine equipment that was being imported from the US for use in DRDO projects. We already have some agreements with them what is called post-delivery inspection. Suppose they give some equipment, they can verify they are at liberty to come and check whether we have used this equipment in the place that I have indicated in my order. It is something like the End User Monitoring Agreement.



DRDO has worked for years with Russian and Israeli defence companies in developing weaponry, but featuring on the Entity List had ruled out cooperation with the US. The US departments of state and commerce, which must grant licences for defence-related export and cooperation, automatically block licenses to any agency on the Entity List. Key DRDO platforms, including the Tejas Light Combat Aircraft; the Akash missile; and the Arjun tank, suffered years of delay after the technology denial regime imposed by the US in 1998.



Saraswat said DRDO had long hankered for partnership with US companies. A lot of technology areas were identified for working with the US, but because we were on the Entity List clearances were not coming. I presume that there will be acceleration in our research & development programmes with the US.



Despite the DRDO-US projects under way, Saraswat pointed out that DRDO's removal from the Entity List did not mean that automatic clearance was granted for whatever DRDO needed. US law mandates that all dual-use items, which essentially includes everything related to defence, needs export licences from the US departments of commerce, state and defence.



That licensing process is the law (in the US) and it will not change. So we have to see in the years to come what kind of trust is going to develop between [the DRDO] and the US on the issue of licences for dual use items for the DRDO and other defence agencies. That process will become lenient only if there is a level of trust, Saraswat said.



Meanwhile, Washington has stressed on high-tech cooperation that was one of the highlights of President Barack Obama's visit to India last November. US Commerce Secretary, Gary Locke, with his delegation of 24 US companies -- among them a dozen aerospace and defence companies, including Lockheed Martin, Oshkosh Corporation, Boeing and Aero Controls -- has dangled high technology as a carrot to induce New Delhi to provide trade incentives to US companies. Saraswat's revelations could ease scepticism among Indian defence policymakers about whether Washington intends to part with high technology to India, or to merely cite the sale of high-tech defence platforms like the C-130J as evidence of its commitment.



Speaking to Business Standard, US Assistant Secretary of State for Political-Military Affairs Andrew Shapiro insisted that Washington viewed India as a strategic partner. The removal of nine Indian entities from the Entities List was a significant accomplishment, declared Shapiro. We've just had a successful delivery of the C-130J and we hope to win the MMRCA competition.



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Hyderabad Industries in Rs 100cr expansion mode

Hyderabad Industries Limited (HIL), a CK Birla group company engaged in the production of asbestos cement products, has embarked on a Rs 100-crore expansion plan besides shifting its focus on manufacturing green building products.



HIL managing director Abhaya Shankar told Business Standard that the company was in the process of adding another asbestos sheets production line at its Satharia plant in Uttar Pradesh involving an investment of Rs 50 crore.



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India can generate 68,000MW Power from renewable energy

The World Bank today said 68,000 MW of power costing less than Rs 6 per unit can be generated from renewable energy sources, which can play an important role in increasing India's energy security.



A report by the multilateral funding agency said that the 68,000 MW of wind, hydro and biomass energy can be harnessed at less than Rs 6 per unit.



"Developing indigenous renewable energy sources, which have low marginal costs of generation, are more economically viable in the long run," the study --Potential of Renewable Energy in India -- said.



India's electricity demand is expected to grow at an average annual rate of 7.4 per cent in the next 25 years. Generation capacity will have to increase five-fold to keep pace with the growth of demand.



The installed capacity of the country stands at about 1,70,229 MW from all sources of energy, as per official data.



The report also suggested that renewable energy development can also be an important tool for regional economic development within the country.



The states of Himachal Pradesh, Jammu and Kashmir and Uttarakhand have 65 per cent of India's small hydropower resources. Much of the economically attractive wind potential in Orissa or the biomass potential in Madhya Pradesh also lies largely undeveloped, it added.



The report emphasised that coal , gas and oil have witnessed considerable price volatility in recent years, renewables are the only free hedging mechanism against price volatility of fossil fuels.



The risk-adjusted cost of renewable energy is lower than that of fossil-based fuels, and their use enhances the price certainty of the portfolio and increases energy security, it said.



Small hydropower, one of the least expensive and most attractive forms of renewable energy, lies largely untapped, the generation costs of small hydropower are comparable with thermal generation sources, and the generation costs of biomass are comparable to those of wind.



This resource is the most attractive in Andhra Pradesh, Haryana, Himachal Pradesh, Punjab, and Uttaranchal.



The entire renewable potential, including solar, is less expensive than diesel, where existing 20,000 MW of diesel based installed capacity points to innovative possibilities of scaling up renewable in a big way, said N Roberto Zagha, World Bank Country Director in India.



The government has set an ambitious target of installing at least 40,000 MW of additional capacity of renewables in the next 10 years.



The report is based on data from nearly 180 wind, biomass, and small hydropower projects in 20 states, as well as information from the Ministry of New and Renewable Energy and the Central Electricity Regulatory Commission .



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CESC to invest Rs 3,000 cr in 600Mw Haldia projects

RPG Enterprises flagship CESC will invest Rs 3,000 crore in its 600MW thermal power projects at Haldia in West Bengal.



Work was scheduled to be completed by March 2014 and there would be two units of 300MW each, CESC vice chairman, Sanjiv Goenka said. We have finalised the bids for boiler turbine generator (BTG) and balance of plant (BOP) for our Haldia power project. BTG goes to Shanghai Electric and BOP to Punj Lloyd, he added.The bids will be awarded by March this year. For the BTG the lowest quote comes from Shanghai Electric, that is 2.14 crore per MW. And for the BOP the lowest quote is from Punj Lloyd, which is 1.99 crore per MW, Goenka said. BOP includes cooling towers, chimney, ash and coal handling systems, air-cooled heat condensers and others while BTG is part of the main plant package. The coal linkages for the plant has also been finalised as it would import 30-40 per cent while the rest will come from Eastern Coalfield.



CESC is also seeking to raise up to Rs 1,000 crore from private equity (PE) players for Haldia Energy (HEL) which is the holding company for three power projects including that of Haldia.



The power major is talking to eight overseas firms for the PE infusion for two 600Mw projects at Haldia in West Bengal and Chandrapur in Maharashtra, respectively, and another 1,300 Mw plant at Talcher in Orissa. We are in talks with eight overseas firms. We hope to finalise this by April this year, CESC vice chairman said.



Goenka, however, was reluctant to divulge the names of the PE firms. He also said that progress at Chandrapur Power Project in Maharastra was satisfactory.



We are happy with the work progress at Chandrapur power plant. We are 11 days ahead of schedule there. he said.



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Projects worth Rs 20,000 cr up for clearance in Andhra Pradesh, India

The State Level Investment Promotion Committee, headed by the chief secretary of Andhra Pradesh, would discuss incentives to new investment proposals worth Rs 20,421 crore under the mega project category on Thursday.



Among the 25 proposals that would come up for clearance at tomorrow's meeting include a Rs 5,813-crore steel plant expansion project of SBQ Steel Limited in Nellore district, Rs 1,997 crore ferro alloys project proposed at Vizianagaram by Sarda Metals and Alloys Limited, Rs 1,687 crore inorganic chemical plant of KPR Chemicals, Rs 1,088 crore steel plant expansion project at Vizianagaram by Maa Mahamaya Industries Limited and a Rs 276-crore tractor manufacturing unit by Mahindra & Mahindra at its existing plant in Zahirabad.



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Tetra Pak to invest Rs 600 crore to set up a new facility at Chakan, Pune, India

PUNE: Food processing and packaging solutions firm Tetra Pak on Wednesday said it will invest Rs 600 crore to set up a new facility at Chakan, near here to cater to the growing domestic and international demand.



"The total investment in the new factory is expected to be around Rs 600 crore. With strong economic growth, a dynamic consumer base and modernisation of distribution and retailing there is high demand across all categories," Tetra Pak Managing Director (South Asian Markets) Kandarp Singh told reporters here.



The Chakan plant would have an annual capacity of 8.5 billion packages. It could be further scaled up to 16 billion packages a year.



"With a capacity of 8.5 billion packages per year, we are gearing up to meet the growing demands of consumers," he said.



The company, which sells its packaging materials to various companies, including Parle Agro, Dabur and Amul, in the country at present has a manufacturing facility at Takwe, near Pune. The Takwe plant has a capacity of nearly five billion packages annually.



The new facility at Chakan, which would be operational by December 2012, will cater to both domestic and export markets.



"Besides supporting the expected strong growth in the Indian market, the plant will also support the company's growth in other key geographies such as Southeast Asia and the Middle East," Singh said.



The company, which posted sales of Rs 850 crore from India in 2010, is also looking to nearly double its revenues from the country by 2013.



"As the new facility gets operational by 2012 end, we expect to double our revenues from the Indian market," Singh said.



At present the company's existing capacity of five billion packages per year is utilised equally for meeting domestic and overseas demand but it expects the Indian demand to double by 2013.



"This would amount to nearly doubling our revenues from here," Singh added.



The Switzerland-headquartered company employs nearly 22,000 employees and operates in over 170 countries. Its global revenues for the year 2010 stood at 10 billion Euros .



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