From the projex (project investment) point of view, the
decision of the Indian government to set up a a project clearance board chaired
by the Cabinet secretary, for review and issue of one-time clearances for infrastructure
projects was a right step. Hope the role of the board will not be limited only to
clearing the projects but also ensuring that bulk of the cleared projects are
implemented with the the stipulated time schedule. Otherwise, eventually the
role of the Board will get reduced to that of Board of Approval (BoA), which
after clearing nearly 600 SEZs, now meets occassionally to grant an extension
of time period for execution of a SEZ or to accept the surrender of SEZ
proposals cleared earlier.
The domestic manufacturers of power equipment are happy with
the decision of the Indian government to impose 21 per cent duty on imports of
power equipment. However, the million dollar (yuan) question is whether the
domestic suppliers will be able to meet the requirement of power project
promoters in time? Power project promoters have cautioned that costlier imported
equipment will certainly push up electricity tariffs.
During the week (15 July to 21 July 2012) in the
manufacturing sector, major projex news emanated from the refinery, aluminium
and automobile sectors.
With IOC agreeing to come on board, HPCL has decided to take
up a nine million tpa greenfield refinery at Barmar in Rajasthan. The refinery
has a long history. ONGC, which proposed to set up the refinery in 2005, but the
Rajasthan government’s un-investor friendly fiscal policies made ONGC to
abandon its proposal.
While Bharat Aluminium Company (BALCO) is facing land hurdle
in Chhattisgarh in the form of a petition filed in the court seeking
investigation into the land given to the company by the Chhattisgarh Government
allegedly at a very low price, NALCO plans to expand its capacity by acquiring
a stake in Indonesia’s Ashan Aluminum (Inalum) at a sum of Rs 8,000 crore.
Despite falling demand for automobile projects in the
domestic markets, the automobile companies have not stopped their capacity expansion
plans. Further, India continues to attract foreign auto majors even at this
juncture.
The UK based Triumph Motorcycles has reportedly sought land
for its proposed Rs 850 crore projex proposal. An MoU for the new plant with an
initial capacity of 2.5 lakh motorcycles per annum was signed in the recently
concluded global investors’ meet (GIM 2012). The proposed manufacturing plant
would be operational by 2015. With the state government grappling with the
political turmoil currently, the project is certain to take some time to take
off.
Isuzu Motors is planning to set up a green field
manufacturing unit in India. The company will invest over Rs 1,000 crore for
venturing into India's small commercial vehicle and multi-utility vehicle
segment. Isuzu is currently negotiating with the Tamil Nadu, Andhra Pradesh and
Gujarat government for locating its new factory.
Ford India has augmented the diesel engine production
capacity at its plant in Maraimalainagar, near Chennai. The plant can now
produce 3.4 lakh engines a year – up from 2.5 lakh. It can also make two lakh
cars annually.
800 MW added to India’s generation capacity
During the week, Tata Power completed the Unit II (800 MW)
of its Mundra ultra mega power project (UMPP) in Gujarat. Unit I was
commissioned in March 2012. According to the company sources, the thermal power
generation capacity of the company now stands at 5,247 MW. If one adds the
hydro, wind and solar capacity of 852 MW, the total generation capacity of
Tatas adds up to 6,099 MW.
In the Nuclear power sector, after the commissioning of the
Kudankulam projects (phase 1), the Indian government has signed signed a
protocol with the Russian Federation, on 17 July 2012 for funding two new units
at the Kudankulam Nuclear Power Project in Tamil Nadu. The total cost of the
project is estimated at Rs 32,000 crore.
Three airport
projects are on the verge of completion
After a long pause, we are hearing some good news from the
aviation infrastructure sector, On 17 July 2012, Arjun Munda, Chief Minister of
Jharkhand laid the foundation stone for construction of an international
airport at Deoghar at a cost of Rs 350 crore. The airport will be built on a
675-acre plot by 2014.
The modernised Chennai airport is waiting for our Prime
Minister to dedicate the project to the nation. The Rs 2,015 crore (Initial
cost Rs 1,808 crore) modernisation was handled by the state owned Airport
Authority of India. The project scope included construction of a new domestic
terminal building, extension of the existing Anna international terminal and
building a new runway across the Adyar River. The passenger handling capacity
of the Chennai airport has now shot up from 9 million to 23 million per annum.
While the air cargo complex at Mangalore airport, built by
the Airports Authority of India, is likely to be commissioned soon, the
modernised Netaji Subhash Chandra Bose airport at Kolkatta is expected to
become operational for domestic airlines from October 2012. The trial run of
the new terminal, whch has a capacity to handle 54,000 passengers per day, was
conducted on 15 July 2012 by the Airport Authority of India.
In the Surface transport infrastructure sector, the Punjab
government approved the Rs 10,300 crore Ludhiana Metro project on 17 July 2012.
The two corridors metro with a total length of 29 km will be implemented in
five years through a SPV, to be set up shortly by the state government.
The Public-Private Partnership Appraisal Committee (PPPAC)
cleared 8 new road projects entailing a total investment of Rs 8,356 crore.
These projects will now go for financial bidding. Rajasthan, Uttar Pradesh,
Karnataka and Jammu & Kashmir are the beneficiary states.
Quote of the week
"Foreign politicians and magazines are merely mirroring what many Indian critics have been saying for years. If you do not like the image that you see in the mirror, do not blame the mirror. Blame yourself" - Swaminathan S Ankleshwar Aiyar (ET 18-07-2012)
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