Posco shelves Rs 32,000 crore greenfield plant in Karnataka

South Korea's Posco has decided to shelve its plan to build a Rs 32,000-crore greenfield steel plant in Karnataka due to unavailability of a captive mine.

"The proposal was based on a captive iron ore mine, but the allotment of any captive mine was taking long," a senior Posco executive told ET. "The identified reserve (Ramandurga) that we had to share with other investors wasn't large enough for the kind of plans we had in mind."

Posco India's proposed 6 million tonnes per annum plant in Gadag district had also faced opposition from villagers led by the leaders of a local religious mutt.

"Karnataka is a critical player in India's steel market. We and the state agreed that while this particular project will not work, we could consider other projects in the future," the Posco executive added.

Posco had recently asked the state government to refund the Rs 60 crore it had paid for the 3,382 acres of land in Gadag.

Meanwhile, in view of the Supreme Court-imposed regional production cap of 30 mtpa, uncertainty continues over whether the state can allot Ramandurga to any of the companies whose names have done the rounds in the past. These include JSW - which has a 10mtp steel plant in Vijayanagar but no captive mine to feed it, Tata Steel and ArcelorMittal - both of which have promised to set up plants. The latter, though last year, withdrew its application for an iron ore deposit in the Donimalai range, stating that initial exploration had indicated insignificant and poor ferrous content. According to state officials, ArcelorMittal has also relinquished about 1,500 acres of the original 4,000 acres identified for its proposed steel plant at Kudatini.

Posco, the world's fifth-largest steelmaker, says a Karnataka official was the last to sign on at the glittering mega investor event organised by the state in 2010. The company then had been committed to building a Rs 51,000 crore, 12mtpa greenfield plant at Jagatsinghpur in Odisha. But the project, five years after it had been inked, seemed to be running into regulatory obstacles, even as locals fiercely opposed land acquisition.

Karnataka, with its iron ore-rich districts of Bellary, Chitradurg and Tumkur, had seemed a good alternative to Posco, even as the Odisha project showed little signs of progress. Although company executives had noted the possible constrain with regard to availability of water in Karnataka, they agreed to build a 6mtpa steel plant.

Welcoming Posco's exit, HK Patil, the minister in charge of Gadag district where the plant was to have been located, said: "We don't know whether they have requested or not, but Posco going away from that area is a welcome move and the people of Gadag will be happy. Everyone knows the way Posco tried to get into Karnataka. There were a lot of allegations that there was no transparency, especially with the (BJP) government at that time."

Former chief minister BS Yeddyurappa, though, called it a setback. "It is the duty of the government to give proper attention and see that it (Posco) continues here. It is a setback. I will see it is continued; I will discuss with the chief minister," he said.

Meanwhile, the situation has improved considerably for Posco's Odisha project. After an 18-month ban on mining activities, operations have resumed in the state with an annual production cap of 30mt for the next few years. Earlier, when the Supreme Court had announced its judgement, the South Korean company had seen a possible opportunity in the auction of a set of mines, identified as category 'C' for the serious nature of violations in their running.

However, a senior Posco India executive said: "The problem with the 'C' category mines is the valuations. It's uncertain how this will be done, and it may be a few years before their reserves are assessed again."

Posco has been handed over the 2,700 acres in Jagatsinghpur in Odisha for the 8mtpa steel plant. In May, the top court had given a favourable order that asked the central ministry to reconsider Odisha's recommendation for prospecting rights to the Khandadhar deposit in the state.

JSPL to invest Rs 24,000 cr by FY-15 on expansion

Ravi Uppal, Managing Director and CEO, JSPL

Jindal Steel and Power Ltd (JSPL) will be investing about Rs 24,000 crore by the end of 2014-15 fiscal to complete its ongoing expansion and start work on next phase of capacity addition, a top company official said.

"This year we have a capital expenditure target of Rs 12,000 crore for both steel and power together. Next year, it will be about Rs 11,000-12,000 crore, so it will be about Rs 24,000 crore investment in 2 years," Ravi Uppal, Managing Director and CEO, JSPL said.

He added that the company will be completing the current phase of expansion for both of its primary ventures — steel and power — and after stabilisation the new facilities will begin production in full steam by next year.

Accordingly, the company will be commissioning new steel mills in Odisha's Angul and in Oman and a new power plant of 2,400-MW capacity in Chhattisgarh's Tamnar.

Together with completion of current phase of expansion, JSPL is also gearing up for doing preparatory work on its next phase of expansion, Uppal said, adding that his focus is on beginning phase-II of Angul steel plant and a 1,320 MW power plant in Jharkhand's Godda.

"This year most of the money which we have earmarked is remaining part of Tamnar (power plant), remaining part of phase—I execution of Angul (steel plant) and start up of Godda, plus our Mozambique mines. Next year, it will largely be Angul phase-II and Godda power project," he said.

After the completion of current phase of expansion, JSPL will have steel production capacity 7.5 million tonnes per annum (MTPA) from existing 3.5 MTPA, while its power generation capacity will increase to 5,000 MW from existing 2,500 MW.

Uppal said that JSPL is now focusing on completing its expansion projects one by one and any new investment plan will be taken up only after completing the existing tasks.

Accordingly, the company aims to complete the current phase of expansion, upgradation and stabilisation by March, 2015. Then it will go for expanding Angul steel plant's capacity by another 4 MTPA, expansion of Patratu and Raigarh plants and adding some new power plants.

Indicating a shift in company's strategy, the MD of JSPL said that his firm has now started looking at locations in Southern India, particularly in Andhra Pradesh and Tamil Nadu to set up power plants and the company aims to have 10,000-MW capacity by 2020.

Till now, the company has set up power plants nearby its steel mills, whether it is Raigarh and Tamnar, or Angul or Patratu and Godda. Besides, now it is planning to set up all large power projects only, having units of 600 MW or above.

"We are working on some other power projects but they are at early stages. Our idea is to have 10,000 MW plus capacity by 2020. There could be Patratu and couple of other locations in South, Andhra, Tamil Nadu...," he said.

SAIL has taken up Rs 3,800 crore environment protection-related projects.

SAIL sources told Business Line that the projects would be implemented in its iron ore mines and were expected to be complete by 2014-15.

This follows comprehensive studies on Environmental Impact Assessment and Environmental Management Plan.

A key component of the over Rs 10,000-crore modernisation and expansion programme, the projects aim to enhance production capacity from the present 18 million tonnes (mt) to 39 mt by 2015-16 with lesser impact on the nature.

The projects would include improvement in ore processing for zero discharge, minimising generation of tailings, reduction in use of water and land.

At Kiriburu mine in Jharkhand, SAIL planned to install a Rs 45-crore tailing dam slime beneficiation plant and a Rs 17-crore water reclamation unit.

"This will substantially reduce fresh water consumption from Gagirath Jharna through recycling, reduce solid material flow and stop any discharge into a local stream," a SAIL official said.

A similar project is being set up at Bolani mines in Odisha for Rs 8 crore. Gua mine complex in Jharkhand has already constructed a check dam to stop top soil run off from mining area. It will also set up new tailing dam and water recycling plant.

Barsua (Odhisha) mine is working on a project to utilise iron ore wastes. At Chiria mines (Jharkhand), SAIL planned to set up an ore processing unit far away from the mines.

Dalmia Cement Plans Rs 1800 Cr Expansion

To strengthen its presence both nationally and in the North-East, cement maker Dalmia Cement (Bharat) Ltd (DCBL) plans to invest Rs 1,800 crore for capacity expansion over the next two years.

While the company would invest Rs 1,300 crore for its upcoming 2.5-million tonnes greenfield project at Belgaum, Karnataka, its plants in North-East would entail an estimated investment of Rs 500 crore, Puneet Yadu Dalmia, Managing Director, told reporters here on Friday.

According to Dalmia, the company currently has a total capacity of 17 mt and wants to add nearly four mt by 2014-15.

The company has recently acquired Meghalaya-based Adhunik Cement with an investment of nearly Rs 560 crore and increased its stake in Calcom Cement in Assam.

Meanwhile, OCL India Ltd would invest nearly Rs 500 crore for a 1.5-mt grinding plant near Salboni in West Bengal. DCBL holds 45.4 per cent stake in OCL India.

According to Dalmia, the project should be commissioned by the end of 2013.

Art of Leadership

Just as great Generals can inspire soldiers to make great sacrifices on the battlefield, compassionate leaders can take their teams to great heights. — KAMAL NARANG

Genuine leadership is of only one type - supportive. It leads people, it doesn't drive them. It involves them, and doesn't coerce them. It never loses sight of the most important principle governing any project involving human beings - that people are more important than things.

Consider a situation in which none of the above statements might seem valid — the battlefield. To a General, the most important thing, obviously, is victory. In the cause of victory he must commit men to possible, and sometimes even to certain, death. Is not victory, then - an abstraction, a thing - more important to him than the people he leads?

Yet, the difference between great Generals and mediocre ones may be attributed to the zeal great Generals have been able to inspire in their men. Some excellent Generals have been master strategists, and have won wars on this strength alone. Greatness, however, by very definition implies a great and expanded view. It transcends intelligence and merely technical competence. It implies an ability to see the lesser in relation to the greater; the immediate in relation to the long term; the need for victory in relation to needs that will arise once victory has been achieved.

Lead from the front

Leadership implies running at the head of the pack, and not driving it from behind. This is true also in military matters. Those who serve under a great General know well that he asks nothing of them that he would not first do himself. Such a General feels himself at one with his men, not superior to them. He knows that he and they are simply doing a job together.

A great general is a man of vision — necessarily so, for only with vision can he inspire his men to heroic action; only with vision can he make them desire victory as ardently as he does. He persuades them not by angry commands, but by the power of his own conviction. He involves others in his vision, and inspires them also to be visionaries.

People, even in warfare, are more important than things. Yet, there are circumstances in which people can fulfil themselves perfectly only by total self-offering to whatever they believe in. There are times when, for the welfare of the greater number, individual lives must be sacrificed. The great General inspires his soldiers because he believes it also for himself, the realisation that whatever may be demanded by the exigencies of war, death in a great cause is a life lived victoriously.

A great General is also loyal to his soldiers. Only in that spirit of loyalty does he demand loyalty of them in return. Thus, we see that even in critical times when stern command is necessary for proper leadership, the essence of genius in leadership is supportive, not dictatorial. An example of a great General, though not always a great tactician, was George Washington. Rather than billet his tired and hungry soldiers on civilian homes, and rather than feed them by foraging, he chose — for himself as much as for his army — discomfort, cold, and hunger. Historians who have concentrated only on his need to win the war have criticised him as impractical, if not even indecisive, but Washington understood that the need of the hour was as much to draw people to the concept of revolution as it was to win the revolution itself. It was his breadth of vision, and his concern for human values, as well as his greatness as a man of honour that made him one of the great Generals of history.

If it is true even in the military that leadership means leading others, and involving them, not driving and coercing them, then how much more is it true in matters where total self-sacrifice is not the issue. More can be accomplished by working with people than over them.

Handle with care

Leadership is an art. Bad leadership is usually due more to clumsiness than to ill will. Leaving aside the natural bullies - most of whom, except in circumstances where bullying has been imposed as the norm, have neither the intelligence nor the perceptivity to earn positions of real authority - people who fail as leaders usually do so simply because they are ill at ease in positions of leadership. They are like the untrained singer who bellows loudly to conceal his inability to produce a pure tone; and like the actor who bludgeons his audience with bombast because he hasn't learned how to win them with subtlety.

Any tailor knows you can't merely jam a thread through the eye of a needle. The strands must be brought carefully to a point, then inserted cautiously into it, allowing not a single one of them to escape.

The same is true of any art. One cannot bluster. One must attune himself sensitively to the requirements of the medium he is using. To paint fine lines, an artist must use a thin brush, not a thick one. To depict loneliness, a composer may well limit himself to a simple melodic line; certainly he won't use crashing chords.

Bluster, unfortunately, is the response of many people in positions of leadership to even sensitive issues, issues where finesse and patience are essential if the support of one's subordinates is to be won. At such times, especially, the temptation often arises to consider things more important than people. Often, indeed, in such situations, one hears the justification, "But it's a matter of principle!" Is it? Sometimes, perhaps. But even then, is not kindness also a principle?

People in positions of leadership need to see their roles not as 'big shots', but as artists whose medium is the dynamics of human cooperation.

Because the suggestions offered in these pages are people-oriented rather than job-oriented, they will prove helpful as well to anyone whose lot it is to work with others, whether in a position of leadership or not - for example parents, teachers, store salesmen or anyone wanting to win others to a point of view.

Even people who live and work alone may find suggestions in these pages for drawing the best out of themselves.

(The author is a spiritual teacher and founder of the Ananda World Brotherhood Community.)

ArcelorMittal gets 2,569 acres in Bellary to set up a six-million tn steel plant at an investment of 30K cr

ArcelorMittal gets 2,569 acres in Bellary to set up a six-million tn steel plant at an investment of 30K cr
IND'L GOODS/SVS-NEWS BY INDUSTRY-NEWS-THE ECONOMIC TIMES | 2 NOVEMBER 2012
http://pulse.me/s/eZUFM
ArcelorMittal has received allotment of 2,569 acres in Bellary, Karnataka, where it proposes to set up a six-million tonne ... Read more

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Hindalco lines up Rs 10,000 Cr Capex

Aluminium major Hindalco has lined up a capital expenditure of Rs 10,000 crore for its green field as well as brown field projects in the current fiscal, Chairman of the company Kumar Mangalam Birla said today.



"We have a capex Rs 10,000 crore for all our projects, both green field as well as brown field, for the current financial year," Birla told shareholders at the company's 53rd annual general meeting here.



All of the company's major strategic expansions in Brazil, South Korea and the US are on track, he said, adding that it has ventured into China with a plant that will initially focus on automotive sheet finishing capabilities.



"This will further solidify our global automotive leadership position. All through the year, at Novelis, strategic investments were made in global recycling facilities in South America, Europe and Germany. These facilities will ensure metal supply and optimisation of overall cost base," he said.



Novelis' investments have been strategically geared to leverage growth opportunities in the emerging markets, to capture the increasing emphasis on light weighting in the automobile industry and recycling in all the four operating regions, he said.



He also informed the shareholders that the Mahan Aluminium Project, Aditya Aluminium Project and Utkal Alumina Refinery were all at an advanced stage of implementation.



He further said the company's balanced portfolio, value added products, operational excellence and aggressive growth strategy has helped it in its positive performance.



"Our performance has been outstanding, both at standalone and consolidated level," he said.



The aluminium business in the country recorded the highest production and the cost pressures were largely neutralised through greater efficiencies, he said.



The copper business attained the highest profitability led by improvement in recovery, better product mix and maximising value from by-products, he pointed out.



Novelis, he said, too reported strong operating results braving global economic headwinds.



The company had reported consolidated net profit of Rs 3,397 crore last fiscal compared to Rs 2,456 crore the year before, while the consolidated revenue stood at Rs 80,821 crore compared to Rs 72,202 crore in the previous year.

Schmersal India to set up Ranjangaon plant

Schmersal India is setting up a manufacturing facility at Ranjangaon, near Pune in Maharashtra with an investment of 8 million euro. It will produce safety devices, lift switchgear and electronic sensors which finds applications in machinery serving food, pharma and other FMCGs. The plant is expected to go operational in 2013. It may be noted, Schmersal India is a 100% subsidiary of German based Schmersal group.



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POSCO to revive 12MTPA Odisha Steel Project with fresh terms

POSCO, the South Korean steel giant, has agreed to a fresh set of terms and conditions stipulated by the Odisha government to kick off its much-delayed 12-million tonne mega steel project near Paradip in Odisha.

Reviving the MoU for a project announced in 2005 was possible after Posco, in a significant shift, softened its stand on swapping of low-grade iron ore with some foreign countries such as Brazil for import of high-grade ore. In another concession, the South Korean steel maker agreed to implement the policy of the state government regarding employment of domiciles in the proposed plant.

"As per the new arrangement, the company has agreed to swap low-grade iron ore from its 'yet-to-be-obtained' captive mines within country through the state-run Orissa Mining Corporation (OMC). Besides, it has consented to give priority in recruitment to local youth in various posts," a senior official engaged in negotiation process with Posco India team told ET on Monday.

Sources further added that the Odisha government, Posco India and its parent organisation Posco, would sign a tripartite agreement on the new arrangement very soon. Posco was not available for an immediate comment. The official negotiators representing the Odisha state had made it clear to the Posco team that the steel project could not be thrust upon the locals.

"We have asked them to earmark at least 100 crore for local area development. We want to earn the confidence of the people by developing infrastructure in the project-affected villages, provide piped water supply and create livelihood opportunities to end the six-year long confrontation," the official said.

However, the progress in the MoU is just one of the many hurdles before the steel maker. The green tribunal has set aside the conditional forest clearance granted to Posco in 2011. The company has tweaked its project by deciding to make do with a 8-million tonne capacity plant, instead of 12 million, that it has originally decided by resolving to setting up infrastructure on land that is not disputed.

The allocation of mines to Posco has been challenged in the courts. The hearing will resume after the court reconvenes after the summer vacation.

Last week the state-run Industrial Infrastructure Development Corporation (IDCO) chairman PK Jena visited the project area and interacted with villagers likely to be displaced or partially affected. "We are reworking on the entry road to the project keeping opposition from a minuscule section of villagers. We want to carry the villagers with us by bringing substantial benefits to them even before the project is launched. Posco also has given its nod to a pro-people strategy," Jena said.

On June 22, 2005, Posco India had signed a new memorandum of understanding (MoU) with the Odisha government to set up a 12-MTPA steel project in Odisha with an investment of 52,000 crore, the highest ever foreign direct investment (FDI) in the country.

However, the project's first phase, which was scheduled to be commissioned in 2011, failed to take off because of protests by the local people against land acquisition.As per the project report of the company, Posco India requires 4,004 acres of land for its integrated green field steel project.

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SHELL SELECTS BRAY INTERNATIONAL

Shell and Bray executive teams have signed a five-year global Enterprise Framework Agreement (EFA) that identifies Bray International as a supplier of more than 2500 line items of Bray (resilient and Teflon® seated), McCannaLok (high performance / double offset) and Tri Lok (triple offset) butterfly products and related services.

Representing Shell and Bray in the picture above were(left to right): Wayne Hutchinson, VP Enterprise Categories and Supplies Management Contract Procurement, Shell; Leonard Moore, Global Market Manager, Oil & Gas Sales/Vice President of Sales & Marketing, USA, Bray; Craig Brown, President & CEO of Bray International, Inc.; and Erik Bonino, EVP Project & Engineering Services, Projects & Technology, Shell.

The agreement was signed at Shell Corporate Headquarters in The Hague, Netherlands. This agreement will encompass all Shell direct operations and its affiliates around the world for both capital and operating expenditures of Bray's broad range of butterfly valve products.

Craig Brown stated, "The Shell EFA marks a monumental moment in Bray's 25 year history. We believe that Bray products offer the best value solutions to the global oil & gas markets." Leonard Moore added, "The enhanced relationship, between our organizations builds on Bray's increasing presence within the Oil & Gas sector. We are elated to be in a position to add value to Shell's enterprise management system as a world class supplier of butterfly valves through this Enterprise Framework Agreement."

About Bray International
Bray International, a privately held organization based in Houston, Texas (USA), is a global leader in the manufacture and supply of butterfly, ball, check valves, actuators and related accessories in power, water filtration, desalination, oil & gas, chemical, commercial automatic temperature control systems, mining, marine and ship building, pharmaceutical, sugar, food and beverage as well as many other industries. Its brands and/or subsidiaries include Bray Controls, Bray Commercial, Flow-Tek and Ritepro.

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Vedanta focuses on Jharsuguda Alumina Smelter Project

With the 5-million-tonne greenfield Lanjigarh aluminium refinery plant expansion on hold, the Anil Agarwal-led Vedanta Aluminium (VAL) has decided to focus on completing its aluminium smelter plant at Jharsuguda in Orissa to achieve its targeted capacity of 1.75 mt.

"The work is on, on a war-footing, at the proposed project site at our Jharsuguda plant and we will achieve 1.75-mt capacity by the end of the next financial year," VAL President and Chief Executive Mukesh Kumar said.

The company has so far invested around Rs 35,000 crore in its Jharsuguda project and around Rs 10,000 crore at the Lanjigarh plant, and plans to invest the balance of Rs 15,000 crore by 2013 to complete its planned expansion.

VAL plans to up its smelting capacity at Jharsuguda plant to 1.75-mt from the present 0.5-mt by 2013.

"The first phase of our 0.5-mtpa smelter and 1-mtpa alumina refinery has already been completed and work on the second phase is on, except the alumina refinery which is under hold as per the Union Environmental Ministry directives," he said.

The company has set up a greenfield aluminum refinery plant with a capacity of 1 mt at Lanjigarh and plans to ramp up it to 5 mt. "We are awaiting the environment ministry's clearance to ramp up capacity at Lanjigarh plant in Kalahandi district," Kumar said.

The expansion of the refinery plant ran into rough weather after the Union Environmental Ministry refused to give clearance on October 21, 2010.

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Hindustan Copper Plans Expansion

State-run Hindustan Copper plans to invest Rs 3,677 crore to almost quadruple its existing copper ore production capacity to 12.41 million tonnes per annum (mtpa) by 2016-17.

"The company has prepared an ambitious expansion plan to expand the capacity of 3.21 million tonnes to 12.41 million tonnes at an estimated cost of Rs 3,677 crore, which would be funded from internal resources, fresh issue of shares and debt," the Mines Ministry's Outcome Budget for 2011-12 said.

The entire expansion would be completed by 2016-17 and in the meantime, the company would also take up greenfield projects for exploration and ore production, it said.

The company would spend a total of Rs 297 crore next fiscal through internal sources for part-funding the expansion of the Khetri, Kolihan, Banwas and Singhbhum mines and reopening of the Rakha and Kenadadih mines.

The only copper ore producer in India, Hindustan Copper's existing capacity caters to about 3 per cent of the requirement of optimum utilisation of installed capacity for smelting/refining of copper in the country.

"The gap in supply and demand provides a huge opportunity to the company to expand its operations in the mining of copper ore," the note said.

The company plans to invest a total of Rs 174 crore for expansion of the Khetri mines from 0.5 mtpa to 1 mtpa. In the Kolihan mines, it would invest Rs 275 crore for expanding the capacity to 1.5 mtpa from 0.5 mtpa and Rs 91 crore to develop the Banwas mine with a capacity of 0.6 mtpa.

The Surda mine's capacity will be expanded to 0.9 mtpa from 0.42 mtpa at a total cost of Rs 216 crore. Hindustan Copper would also invest Rs 347 crore to reopen the closed Rakha mine and Rs 87 crore for enhancing the capacity of the Kendadih mines to 0.21 mtpa.

The note said that the company has already applied for prospecting leases across the country for greenfield exploration and it proposes to explore and develop these mines through a joint venture with global mining majors.

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