Cairn Energy seeks $5.6 billion compensation from India
British explorer Cairn Energy has sought $5.6 billion in compensation from the Indian government for raising a retrospective tax demand of Rs 29,047 crore on 10-year old internal reorganisation of its India unit. In a 160-page ‘Statement of Claim’ filed with an international arbitration panel on June 28, the Edinburgh-based company sought withdrawal of the tax demand and declaring that India has “failed to uphold its obligations” under the UK-India Investment Treaty by not giving its investments in the country “fair and equitable treatment”. It sought $1.05 billion in compensation for the loss of value its 9.8%-shareholding in its erstwhile subsidiary Cairn India suffered following Income Tax (I-T) Department raising the tax demand in January 2014 and attaching the shares. “In the alternative, and should the (arbitration) Tribunal determine not to order India to refrain from enforcing its unlawful tax demand”, Cairn sought to be compensated of breaches of the investment treaty by being paid for the loss of value of its holding in Cairn India as well as interest and penalties, totalling $5.587 billion (Rs 37,400 crore). The total compensation sought is equal to the tax demand raised and the value of Cairn Energy’s 9.8%-shareholding in Cairn India. A three-member arbitration panel headed by Geneva-based arbitrator Laurent Levy began hearing Cairn Energy’s plea against tax demand in May and the company filed its ‘Statement of Claim’ late last month. The Indian government will file its ‘Statement of Defence’ by November and evidential hearing is expected to commence in early 2017, sources said. The I-T Department had in January 2014 slapped a draft tax assessment of Rs 10,247 crore on Cairn Energy on alleged capital gain it made when, in 2006, it transferred its India assets to a new subsidiary, Cairn India and listed the firm. The British firm sold majority stake in Cairn India to Vedanta Resources in 2011 but still holds 9.8% stake in the company, which was attached by I-T Department. This year, a final assessment order was slapped on it that included a Rs 18,800 crore of interest on top of Rs 10,247 crore principal tax amount. In the ‘Statement of Claims’, Cairn said it had an option to list Cairn India on UK stock exchange but decided to go for a local initial public offering (IPO) with a view to “further Indianising” the business. “To accomplish what was to be one of the largest-ever IPOs in the Indian history, however, Cairn had to reorganise its corporate group structure significantly,” it said. It is in this restructuring that the I-T Department says Cairn made capital gains of Rs 24,503.50 crore. If it had known that India would change rules and retrospectively tax, the company would have restructured business differently and listed the firm on UK exchange, it added. Anthony Duclair Authentic Jersey
Infra sector offers a great opportunity for investors in India: Nitin Gadkari
India, which has set an ambitious target of constructing 40kms of new road per day next year, offers “a great opportunity” to American investors in infrastructure sector, Union Minister for Road and Surface Transportation Nitin Gadkari said today. “Fast track decision making system is there. It is a great opportunity for the investor in the country,” Gadkari said in his address to the Atlantic Council, a top US think tank. Listing out the key accomplishments of his ministry, the senior BJP leader said land acquisition and clearances are no longer a problem and all the contracts are allocated through e-tender system. Gadkari said he has set the ambitious target of constructing 40kms of new road per day next year. In response to a question, he acknowledged that his officials feel that this is not possible, but he exuded confidence that this is achievable. “I have got a political track record in my life, whatever I say, I accomplish. That’s my past, I do not know about the future,” he said during an interaction with Atlantic Council think-tank entitled ‘A Window into India’s Infrastructure Development: A Discussion with Minister Nitin Gadkari’. In his welcome address, Gen (rtd) James Jones said infrastructure development is a central part to the India-US trade relationship. The Minister is currently on a week-long visit to the US with the objective of attracting American investors to India’s infrastructure sector and technology transfer and adoption of best practices from the US. He is scheduled to meet the American businesses and the US Transport Secretary later in the day. Gadkari, who would also visit New York, St Louis, San Francisco and Los Angeles during the visit, rued the large number of deaths in India due to road accidents and described this as his failure. This is one of his priority area and is seeking assistance from the US in this field. “One per cent of the cost of the road we are giving to plantation and one per cent to road safety… we are here to understand the intelligence traffic system for that,” Gadkari said. “Attitude, approach and vision of the department has changed,” he said. “In rural and tribal areas, we have decided to make more national highways,” he said. By developing new waterways, highways with reducing logistic cost would be a game changer for the development of India, he said. Green technologies is another focus for his industry, he added. Brooks Laich Authentic Jersey
Road safety highest priority, US assures all help: Nitin Gadkari
The US will cooperate with India in making its roads safe by offering a range of innovative technology and software in intelligent traffic management to reduce road accidents in the country, Union for Road and Surface Transportation Nitin Gadkari has said. Acknowledging that road safety is a “big problem” in India, Gadkari said every year more than 150,000 people are killed in five lakh road accidents. “We are taking the co-operation of the US Government in particularly in road safety and intelligent traffic management system, which we are also going to implement in India,” he said. “I am very much disturbed (by the status of road safety),” he said. Gadkari said the US has also promised to give “all technical co-operation for standardisation of our Indian code” for road construction, bridges and flyovers. “Their experience and their present rules and regulations, codification, all the manuals are there and they are ready to share all types of manuals, code and rules and regulations with us,” he said. “In India we are critically facing the problem of road accidents. We have 96,000 kms of road length as national highway and 40 per cent of national traffic on this two per cent of road. We are facing a lot of accidents on national highway,” he said. “Road safety is highest priority for our government,” Gadkari told Indian journalists during a media round-table after his-day long meetings including that with US Transportation Secretary Anthony Foxx and American business community. “Today we discussed all our problems related to road safety with the (US Transportation) Secretary. The good thing is the Secretary promised me all types of co-operation with the rules, regulations, the software they have already developed, the system, the technology, the innovation. They are ready to co-operate with us in everything,” Gadkari said. During the meeting, the US also promised full co-operation in the development of inland waterways. The Minister also spoke on new highways under construction in the country, financing mechanisms under PPP models, framing policies for logistics parks, modernisation of roads, building intelligent traffic systems for road safety and further innovation and technology to India’s logistics sector. Rohit Kumar Singh, Joint Secretary, Ministry of Road Transport and Highways, highlighted specific investment opportunities in the highways sector whereas Alok Srivastava, Additional Secretary, Ministry of Shipping, shared details on the Sagarmala Program – the Ministry’s flagship port-led development initiative to bring down logistics cost and boost investment, exports, and jobs. “India needs USD 1 trillion for developing new roads, ports, rail lines, and airports over the next few years and US companies can provide the necessary expertise as well as capital to enable the robust growth of this sector,” he said. Lawson Crouse Womens Jersey
Centres sanctions ₹658 cr for 5 projects to decongest Delhi
Union Urban Development Minister M Venkaiah Naidu on Monday announced that ?658 crore had been sanctioned from the Urban Development Fund for five projects to decongest the national capital. The five projects are construction of flyover and underpass connecting Mahipalpur, Aerocity, Airport and NH-8; and construction of flyover-cum-road overbridge near Narela for providing direct access from NH-1 to Bawana Industrial Complex. A skywalk and foot overbridge near ITO for safety of pedestrians going to offices located in and around ITO will be constructed apart from building an up-ramp and widening of road near Kashmiri Gate and Nigam Bodh Ghat. A 1.6-km-long Grade separator at Rani Jhansi Road will also be constructed. “The source of the Urban Development Fund is onetime charges for conversion from leasehold to freehold in properties leased by DDA,” Naidu told reporters here. A High Powered Committee on ‘Decongestion of Traffic in Delhi’ set up by Naidu had submitted a 126-page report, and its findings were released in June. Land premium rates Naidu also approved the rates of premium for lands allotted for institutional purposes by Delhi Development Authority (DDA). The rate for land required for health services such as medical institutions, hospitals, dispensaries required by the Centre and the Delhi government has been reduced to a nominal charge of ?1 a year. Moreover, rates for land to the Delhi government for un-remunerative uses such as maternity centres, night shelters and orphanages etc have also been reduced from earlier rate of 50 per cent of ‘no profit, no loss rate’ to ?1 a year. Similar decisions were taken for rates for land for DTC depots, staff quarters for schools and hospitals of local bodies, land for roads, graveyards and crematoria, playgrounds and parks, water supply and drainage for DDA colonies, etc. Tre Boston Jersey
HAL signs joint venture with Safran for helicopter MRO
Hindustan Aeronautics Limited (HAL) and Safran Helicopter Engines have agreed to establish a support centre in India for national and international rotorcraft customers. An agreement to this effect was signed on Monday by DK Venkatesh, Director (Engg, and R&D), HAL, and Bruno Even, CEO-Turbomeca, at the ongoing Farnborough International Airshow (July 11-17, 2016) in the presence of T Suvarna Raju, CMD-HAL and Philippe Petitcolin, CEO-Safran. This new centre will provide Maintenance Repair and Overhaul (MRO) services for Safran TM333 and HAL Shakti engines that powers HAL-built helicopters. Safran Helicopter Engines and HAL will provide their customers with a first-class service including optimized engine availability. With over 1,000 engines, including 250 TM333 and 250 Shakti, India’s armed forces are one of the largest operators of Safran-designed helicopter engines. Shakti is the Indian designation for the Safran’s Ardiden 1, co-developed with HAL and produced under licence. T Suvarna Raju, CMD-HAL, said, “The JV reflects the close relationship established over many years between HAL and Safran Helicopter Engines. It places both partners on an ambitious path towards world-beating customer support in the field of engine MRO. The joint venture will provide the impetus for the ‘Make-in-India’ initiative since around 1000 Shakti engines are likely to fly in the coming years”. Serge Maillé, Safran Helicopter Engines Executive Vice President for Strategy and Development, commented “this joint venture marks a new step in the long-lasting and fruitful partnership between Safran Helicopter Engines and HAL. We are extremely proud of the continued confidence placed on us by HAL. Together we are committed to delivering world-class support to our customers, both in India and throughout the region”. Shakti is fitted to HAL’s ALH-Advanced Light Helicopter (Dhruv) and has been selected to power the HAL-designed Light Combat Helicopter (LCH). The new Light Utility Helicopter (LUH), a three-ton single-engine chopper under development is also fitted with a Turbomeca engine. Denzelle Good Authentic Jersey
Private players will be able to exit PPP projects in all sectors
The revised framework for public private partnership (PPP) projects in India will offer an exit options for private players in all sectors, including power, railways and SEZs, among others. At present, only road projects under the PPP model have an exit clause. PPPs, awarded through a competitive bidding process, are typically very high-value contracts, often with huge capital and operating costs, making it difficult for developers to cope with financial losses. Besides, difficulties in land acquisition and environment clearances often lead to delays and litigation. In some cases, PPP projects can even extend up to 30 years. According to the Centre for Monitoring Indian Economy (CMIE0, the total value of stalled projects stood at around ?11.2 lakh croreas of June 30,2016, with 75% of the projects belonging to the private sector. The Centre last year allowed developers to exit highway projects two years after completion. “There is no question of stalling the PPP model… we are just revising it,” said a senior finance ministry official who did not wish to be identified. “The PPP model has been a success. We admit certain projects have landed problems but those were related to unforeseen events such as availability of coal. In the revised model, we will plug those holes and ensure that in cases of stalemates due unforeseen events, private players can have an easy exit and bring in fresh blood without hindering the project execution .” Apart from the exit clause, the government has also asked the PP P cells in various ministries to study the reasons behind delayed projects. “Alist of such projects is being made, and the reasons for the delay will be analysed,” said the official quoted earlier. According to sources, once the reasons are analysed and solutions provided, the Project Monitoring Group will start tracking the progress of the projects. “The concept of allowing changes in the PPP contract to aid exit of private players is underway in the road sector. The power ministry has started experimenting with it ,” another finance ministry official said. In fact, the ministry has identified hydroelectric projects in the north-east, where it will allow private players to exit, a source said. The Vijay Kelkar panel report on the PPP model for infrastructure development, released last year, had also suggested that the private sector needs to be protected in case of “abrupt economic or policy changes.” Meanwhile, minister of finance for state Arjun Ram Meghwal on Sunday said the government can use the PPP mode to optimally utilise idle assets of public sector units to promote skill development and generate new jobs. Trey Hopkins Womens Jersey
Patil hopes to clear key infrastructure projects
Chandrakant Patil, a trusted aide of BJP president Shah, has taken giant strides with chief minister Devendra Fadnavis allotting him the crucial revenue portfolio during the state cabinet reshuffle. Moreover, Patil has also retained the public works as well as revenue and rehabilitation departments. The move to club the revenue and PWD ministries is aimed at pushing pending infrastructure projects. The state government has so far announced numerous projects such as widening roads and converting these into national highways. It is also getting investment from the railways for laying new rail lines. With Patil holding both the portfolios, expectations among stakeholders are high as far as speedy clearances of land acquisition and pending proposals are concerned. Speaking to TOI, Patil said, “It is true that the public works and revenue departments work closely. I will have to give justice to the requirements and procedures of the respective departments. My priority will be to work harder so that orders are issued at the earliest. If I can start a sizeable number of projects within the next six months, the change should be felt by May 2019. The change would be in terms of easy commutation, good experience while driving, speedy movement of goods and other services among others. I will use this opportunity to achieve the targets.” Moreover, Patil’s proximity with Shah and Prime Minister Narendra Modi can also help in getting clearances for major projects. A retired state government officer said on the condition of anonymity, “The only problem with Patil holding both the portfolios would be his availability. Both the ministries are known for heavy workload. The minister needs to give extra time when it comes to tricky issues. It needs complete attention to handle things delicately. Land acquisition has become a sensitive issue as the existing government does not take land owners into confidence. Moreover, the overall treatment lacks basic decency in terms of discussions and negotiations.” “People should be aware of the people’s basic rights. Losing a piece of land or entire land forever will be a major shock for them. In such situation, Patil will have to use his all skills. Besides, people working in both the departments will also have to carry out negotiations for major land acquisition in the state,” the retired official added. A lot in the bag for Patil * Conversion of 12,000km-long roads in state into national highways * The state government has already bagged investment projects worth Rs 8 lakh crore through the Make In India drive, which would need huge land bank * The government is hunting for huge land in Konkan for setting up the country’s biggest oil refinery at an investment of Rs 1 lakh crore * Jaitapur nuclear power plant in Konkan is already stuck due to opposition over land acquisition. Though Shiv Sena has not yet given its green signal, Patil will have to use his skills to get it through * Pune-Miraj-Londa railway line doubling is underway for which additional land is required * Karad-Chiplun and Kolhapur-Vaibhavwadi fresh railway lines have been proposed. Land acquisition and getting clearances from the environment ministry will be the key aspects. Tyler Bozak Authentic Jersey
Jharkhand to hike power tariffs
Jharkhand Urja Vikash Nigam Limited (JUVNL) Chairman-cum-Managing Director RK Srivastava today said electricity tariffs will be hiked to meet required resources for maintaining power supply in the State. During his maiden visit to Dhanbad, Srivastava said the power system was reeling under a pool of problems. “To remove the hurdles and to ensure 24×7 power supply in the State, there is need of resources to improve infrastructure, which can be generated only through enhancing power tariff,” he said. Srivastava said JUVNL purchases power at ?5 per unit and supplies it at ?2.20. Quinton Jefferson Womens Jersey
Reliance Power’s Rs 14,500-crore loan: It’s Goyal vs Goyal on mortgage of coal blocks
Can Reliance Power be allowed to mortgage its coal blocks as collateral for a Rs 14,500-crore loan? The Coal Ministry under Piyush Goyal said no, underlining this would “vitiate the bid document and bidding process”. A week later, the Power Ministry, also under Goyal, said it didn’t share the Coal Ministry’s view. With Coal and Power sticking to their positions, Goyal widened the debate to consider if all captive power projects, not just Reliance, could be allowed to use coal mines as collateral — last Tuesday, the Mines portfolio was also handed to him in the reshuffle of the Council of Ministers. In the first week of June, Goyal directed “whether UMPP (ultra mega power project) or otherwise, the mortgage of mines/ mining lease and whether bidding condition permit, it may be put up to an IMC (inter-ministerial committee) of Power, Coal, Banking and Law under the chairmanship of Power and give its recommendations within 30 days.”
Maharashtra may re-join UDAY for financial benefits; new Cabinet decision likely soon
The Maharashtra government could modify its Cabinet decision to join power distribution companies’ revival scheme UDAY only for operational benefits and may now include financial parameters also, power minister Piyush Goyal today said. Goyal said the state has now shown interested in the financial benefits of the UDAY scheme and could soon pass another Cabinet decision to re-join the discom revival scheme. The minister said while that state did not have any major financial losses, it could still get benefit to the tune of Rs 1500 crore it joins UDAY for financial efficiencies. The UDAY scheme envisages the respective states of loss making dicoms taking over 75 per cent of the SEB debts of Rs 4.3 trillion into their books but will not be calculated as their fiscal deficit. This involves taking over 50 per cent of the short-term liabilities of their respective discoms in FY16 and remaining 25 per cent in FY17. The scheme was launched on November 20 last year to help loss-making power distribution companies in the states to come out of a debt trap of Rs 4.3 lakh crore by March 2016. So far, 19 states have given their approval to join the scheme and 10 states, namely, Rajasthan, Uttar Pradesh, Chattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand and Jammu & Kashmir have signed MoUs for the same. Noel Acciari Womens Jersey