IOC open to foreign investment in Konkan refinery
Indian Oil Corporation Ltd (IOCL) is likely to finalise the location for its mega petroleum refinery on the Konkan coast soon. The Maharashtra government has shown the refinery firm six sites the company for setting up the largest refinery in the country, which will be built at a cost of Rs 1760 billion (trillion). IOCL is also on the lookout for a foreign partner who will co-invest in the project. B Ashok, chairman of IOCL, said, “Considering the demand growth in our country, we feel that there is definitely a need for setting up a very large capacity in the west coast because it has natural advantage in terms of crude import and coast because it will give us tremendous flexibility in terms of crude sourcing and so on and we have identified Maharashtra as a state where we need to put up this refinery. IOCL will take the leadership role in this which already we have some sort of an understanding within the three companies (BPCL, HPCL and IOCL).” He said the company is now evaluating at least half a dozen pieces of land shown to the company, adding that he is hopeful that they will firm up the plan soon. “Because it’s going to be an integrated refining and petrochemicals complex, the technological side of the new complex is being worked out. We are almost clear about what are the fuels or what products are going to be manufactured here and so on. We have already made an assessment of that and once we are able to firm up the land we should go through the approval process very quickly,” he said. The refinery could be a venture where even foreign investment can potentially be invited, he said. “But at the moment, we have an understanding between three oil marketing companies — IOCL, BPCL and HPCL and between three of us, shareholding will be in the ratio of 50%, 25%, 25%, or 2:1:1. But if there is going to be investment from abroad, then our stakes will shrink accordingly.” Ashok said all the required environmental precautions will be adhered to while setting up the refinery. “Environment issues we need to factor in when we are setting up such a large project. It is going to be a really mega venture, today whatever facilities we are putting up, it is all after being mindful and taking into account the current green environment which is prevalent all over the world. We cannot have emissions beyond a level, we cannot produce products which are unacceptable in the marketplace. All those things have been factored,” he said. The cost assessment, Ashok said, for the refinery is about Rs 1760 billion. “We are aware of the people (foreign players) who are interested in the project of this size. The quantum of land required for the refinery, we have asked for, is around 15,000 acre, but there is no hard and fast rule of 15,000 acre; it has to be above a threshold point, but depending upon the condition of the land, the green area that we need to position there, we will have to take a view as to what is available and whether we can construct it. However, 30% will go away for the green belt for this, he said Derek Rivers Authentic Jersey
Petronet awaits govt nod for use of LNG as fuel in vehicles
Petronet LNG Ltd is betting big on the usage of LNG as a fuelling option to meet India’s transportation requirements, Prabhat Singh, Managing Director & CEO, PLL, has said. “We are awaiting a green signal from the government following a proposal to the Ministry of Road, Transport and Highways to use LNG as a fuel in vehicles along with other existing fuels,” he said. LNG, which is cheaper than compressed natural gas (CNG), is not an approved fuel for vehicles right now. However, its widespread usage will reduce the cost of road transportation as well as the country’s dependence on crude requirements, he told BusinessLine in a one-to-one interaction. India consumes around 195 million tons of crude-based oil products today and the figure is likely to go up to 230 million tons by 2022, resulting in higher dependence on crude and additional foreign exchange spending. Given the low processing cost to convert LNG as fuel compared to other fuelling options, he said the differential saving in terms of energy equivalence would be $12 dollar per barrel compared to crude. “When we are graduating to a better fuel for the future, there will be savings in our foreign exchange kitty and an increase in fuel quantity,” he said. To create awareness on the use of natural gas for road transportation, he said PLL has approached Tata Motors to procure 100 trucks with LNG fuelling options to operate in the country. “We are exploring the option to deploy some of these trucks initially on the Kochi-Mangaluru stretch on a pilot basis by outsourcing it to fleet owners.” he said. The new government in Kerala is positive towards this move and has assured us hand-over of land at 3-4 locations to set up LNG filling stations and storage units. The Kerala government is in the process of introducing 1,000 buses run on CNG fuel. “We have mooted a proposal to convert at least 100 buses to LNG fuel for inter-city movement,” Singh added. Vance McDonald Womens Jersey
India’s new motorcycle owners drive gasoline boom – Kemp
India’s gasoline consumption is growing rapidly as millions of additional households buy motor cars and especially motorcycles as a status symbol amid growing prosperity. Gasoline consumption averaged 550,000 barrels per day between June and August, an increase of nearly 15 percent from 480,000 bpd a year earlier. Gasoline consumption hit a new record of 600,000 bpd in August, according to the Ministry of Petroleum and Natural Gas. Consumption remains low compared with the advanced economies or China, the other emerging-market giant, but no other country is exhibiting such fast and sustained growth. The number of registered vehicles on India’s roads has been doubling every seven years and hit 182 million in 2013, according to the Ministry of Road Transport and Highway. The majority of registered vehicles in 2013 were motorcycles (133 million) with a much smaller number of cars, jeeps and taxis (25 million) and goods vehicles (9 million). Unlike cars, many of which run on diesel, motorcycles all run on gasoline. Motorcycles accounted for more than 60 percent of all gasoline sales in 2013. Motorcycle sales have been expanding at a compound growth rate of 7 percent per year since 2010/11 and hit a record 16.5 million in 2015/16, according to the Society of Indian Automobile Manufacturers. In contrast, car sales have grown at a compound rate of just over 2 percent per year and reached 2.8 million in 2015/16. Owning a personal vehicle rather than relying on public transport is an important status symbol for India’s fast-expanding middle class but many buyers opt for motorcycles due to cheaper purchase and operating costs. “The majority of the middle-class, middle-income population including college students prefer to travel by two-wheelers, as it is more economical,” a market research report for the government said. Motorcycles are also far more maneuverable in the country’s crowded urban streets and highways. Two-wheelers use far less fuel than cars but the sheer number of motorcycles being added to the country’s roads each year is propelling rapid growth in fuel consumption. India’s fuel demand would be growing even faster if consumers were buying cars (“As long as India’s oil demand is driven by mopeds, it won’t be the new China”, Reuters, July 13). But consumption is nonetheless growing fast as millions more people use a motorcycle rather than walking or taking public transport, which is the relevant baseline for oil demand. Vehicle ownership rates in India remain far below the level in advanced economies as well as other middle-income developing countries, according to the Ministry of Road Transport and Highways. India’s motorcycle ownership rates are fairly high, at 108 motorcycles per 1,000 population, and steadily increasing, which puts the country ahead of most peers, though far behind Malaysia with 362. But overall vehicle penetration remains low, at 149 motor vehicles per 1,000 population, compared with 273 in Brazil, 277 in Mexico, 512 in Britain and 781 in the United States. So there is enormous scope for fuel demand to increase over the next decade as more households obtain access to a motor vehicle – initially two-wheelers before some upgrade to four wheels. Wayne Gretzky Jersey
Government to launch Rs 1,500 crore Eway projects in Uttar Pradesh: Nitin Gadkari
A Rs 1,500-crore expressway project between Kanpur and Lucknow in Uttar Pradesh would be launched soon, Union Minister Nitin Gadkari said today. The project is part of Rs 2 lakh crore highway projects in the state, the Road Minister said. “Detailed project report is being prepared for an eight-lane access controlled expressway between Kanpur and Lucknow. The estimated cost of the project would be around Rs 1,500 crore,” the minister said here. Once completed, “Kanpur to Lucknow distance can be travelled in 35-40 minutes”, Gadkari said adding that it will be an elevated road. The minister said massive road network would be laid in the entire state and the government has planned at least Rs 2 lakh crore projects of which work on about Rs 70,000 crore projects is underway. Gadkari last month laid foundation of three projects — Rs 806 crore Varanasi-Jaunpur stretch on National Highway No 56, Rs 785 crore Varanasi-Ajamgarh stretch on National Highway No 233 and Varanasi-Gazipur stretch on NH 29. The minister said Rs 868 crore would be spent on Varanasi-Gazipur stretch. These highway stretches are scheduled to be completed by June 2018. Gadkari said these stretches would result in all-round development of the state by promoting seamless flow of cargo traffic and passengers, and also also promote tourism and minimise the accidents. Lee Roy Selmon Authentic Jersey
Petrol, diesel consumption hits 5-year high in August
Consumption of petrole um products grew at the quickest pace on a monthly basis in five years during August, rising over11 per cent year-on-year (y-o-y) to nearly 16 million tonnes. It had increased 9.5 per cent y-o-y on an average in the preceding three months.Analysts tracking the sector attributed the surge in petrol consumption to the ban on diesel vehicles in the NCR (National Capital Region) and increased sales of two-wheelers and passenger vehicles. Both diesel and petrol led the way, growing at 14 per cent and 25 per cent respectively on a y-o-y basis during the month. Diesel consumption surged to a near five-year high on a monthly basis in August, primarily driven by commercial transportation. “Consumption of other industrial and commercial pro ducts such as fuel oil, petcoke and aviation turbine fuel (ATF), also surged, pointing to robust economic activity ,” analysts at Religare Securities said. “This, coupled with a higher demand for other industrial fuels, indicates improving economic activity, though the uptick may be reflected in other macroeconomic data with a lag,” they said. The analysts added, “The rising retail preference for petrol, especially in urban areas, with the added benefits of using economical CNG (compressed natural gas) through a kit could be another key driver for growth.” LeSean McCoy Authentic Jersey
NHAI plans Rs 6,000-crore boost for road developers stuck in litigation
The National Highways Authority of India (NHAI) plans to release Rs 6,000 crore to developers stuck in litigation under the new policy announced at the end of last month, a measure that will help banks recover some stuck loans while also providing funds for stalled projects. The government has asked its departments and ministries along with public sector entities to release 75% of disputed amount where the developer or concessionaire has won an arbitration case. Niti Aayog, which piloted the policy, has written to ministries and departments to act on the decision quickly. At present, 123 dispute cases worth Rs 25,000 crore are pending with NHAI, including cases worth Rs 13,000 crore awarded in favour of private parties. “In overall cases that have gone against us till date, the amount has been Rs 13,000 crore. We have already amicably settled claims worth Rs 5,000 crore,” a senior NHAI official said on condition of anonymity. “So, 75% of the remaining Rs 8,000 crore that has to be released under the new guidelines works out to be Rs 6,000 crore. We’ll start paying that amount on case by case basis. The claims are related to around 20 companies.” The payment process will be initiated as soon as the private party sends NHAI a letter. “Now this will be dependent on the private party as it needs to have a bank guarantee to back up the award claim. We are also revising our agreement format so that the company doesn’t back out from bank guarantee,” the official said. Hindustan Construction Company (HCC), which has already been awarded claims worth Rs 3,400 crore against various government departments, has sought release of Rs 1,000 crore from NHAI. “On Tuesday, we received a letter from HCC asking for a payment of Rs 1,000 crore. We’ll start looking into their claims,” the official said. HCC had in a statement said it has Rs 3,200 crore arbitration award and 75% of it should be released. Under the new guidelines cleared by the Cabinet Committee on Economic Affairs, government agencies will pay 75% of the arbitral award amount to an escrow account against margin-free bank guarantee. The escrow account can be used to repay loans or to meet commitments in ongoing projects. The move will allow recovery of loans by banks and allow companies to speed up ongoing projects. A total of Rs 70,000 crore in various sectors is stuck under arbitration. “Construction companies are reeling under liquidity crunch… Even with the release of 75% of amount this would…allow them to make a variety of payments to banks, suppliers and bid for more contracts,” said Vinayak Chatterjee, chairman of Feedback Infra. Justin Evans Authentic Jersey
Investment opportunities in 200 Gujarat infra projects: official
The Gujarat government has identified more than 200 infrastructure projects for foreign investment, a senior official from the state has told US investors. “More than 200 infrastructure projects have been identified by the state government where there are investment opportunities for the companies,” Bharat Lal, who is heading a high-powered Gujarat delegation, told a group of American investors during a road show in Chicago yesterday. The Gujarat delegation comprising of officials and business leaders is currently on a trip to the US and Canada wooing companies to attend the Vibrant Gujarat Summit in January 2017. More than 75 government officials and business leaders attended the roadshow organised by US-India Business Council (USIBC) and Federation of Indian Chambers of Commerce & Industry (FICCI) at the Baker McKenzie office. “Gujarat is the most progressive and trend setting state in the country and is years ahead on their approach in attracting global fraternity/investors into the state, said Ausaf Sayeed, Counsel General of India, Chicago in his address. Lal said Gujarat is also keenly focusing on sectors like – Agro & Food Processing, Chemical & Petrochemicals, IT & ITeS, Healthcare, Renewable Energy and many others. He further elaborated that the very culture of entrepreneurship that exist in Gujarat and the ethos of government, promotes business and industry as this creates opportunities for the people of not only Gujarat but whole India. “Due to these characteristics, Gujarat has become preferred destination of business,” he said. Ajay Kumar Pandey, CEO, Gujarat International Finance Tec-City (GIFT City) said it is India’s first model smart city with world-class infrastructure, offering ease of doing business and numerous tax benefits to the companies who operate in the GIFT City. Chris Conley Womens Jersey
AirAsia India achieves gross profit breakeven in April
AirAsia India, the joint venture low-cost carrier of Tata Sons and Air Asia, has achieved gross profit breakeven in April while targeting its next milestone of cash flow positive and turn EBITDA (earnings before interest, taxation, depreciation and amortisation) breakeven by 2018-end, said its Chief Executive Amar Abrol. Claiming an aggressive plan of acquiring planes and hiring pilots and crew, he said they expect to receive second round of promoters’ funding by month-end to work towards reaching 20-mark in planes fleet before 2018. “Funding has been secured. We have been GP (gross profit)-positive since April, the month the new management team came into being,” Abrol told ET in Hyderabad on Wednesday. “The next port of call is to get to cash-flow positive. The next year is massive for investment to get 10-12 aircraft which we can get over the next couple of years. Over the strategic framework of next three years, by 2018-end, we will get to EBITDApositive.” Abrol said the low-cost carrier, with the country’s highest load factor of 85%, is currently working on aggressively hiring pilots and cabin crew to train them. The airline is also looking at availability of planes in the open market for lease, apart from analysing the viability of entering certain Indian cities that were already overcrowded by domestic and global airlines. On the delay in entering Mumbai, he said, “Mumbai is very slot-constrained at this point of time. Moreover, it has to make sense for us from a commercial perspective. It has to make sense if there is enough demand and whether the current incumbents are meeting or not meeting that demand.” While highlighting that there is an opportunity for some 330 pairing of routes connecting various Indian cities with A320 airplanes, Abrol said AirAsia India will go to a city only if it makes commercial sense. “Mumbai will make commercial sense with the right time and product,” he said, without elaborating on the kind of product being worked out for Mumbai. Indicating that AirAsia India’s Mumbai check-in may get further delayed, he said, “Right now, there are slot constraints and apparently there is some huge amount of repair and maintenance plan for the first quarter of 2017 at the Mumbai airport from the runway perspective. Once that is sorted out, we will start working with the airport authorities there and start looking for slots.” “When we go into Mumbai, we will go into Mumbai with a full plan so that we are able to capture a significant market share,” he said On the limitations on availability of the planes, Abrol said AirAsia India currently operates single aircraft fleet, A320s. “Within that we need to make sure that the plane is in good working condition,” he said, adding that AirAsia India was also evaluating the model of mixed aircraft fleet. “We are constantly evaluating whether we will have mixed aircraft fleet as well or not.” Phil McConkey Womens Jersey
Unscheduled flights from Russia can get visa for 7 days on reciprocal basis
Ahead of Home Minister Rajnath Singh visit to Russia, India has given a nod for a temporary landing permit (TLP) to crew members of unscheduled flights and ships from Russia, on reciprocity basis. A TLP allows crew members of scheduled/unscheduled flight to enter India without a valid visa and can be granted up-to 7days. Singh is slated to visit Russia on September 18-21 and will meet his counterparts. New Delhi and Moscow are expected to sign multiple bilateral agreement on narcotics, security and international cooperation during this visit. The landing permit for sailors and crew members was curtailed in 2010 following reports of overstay and misuse of the facility. Several foreigners from Russian countries availing TLP later found their way to Goa, claimed officials. A senior government official told ET, “We have also allowed TLP for Cargo flights after Moscow said they are providing such facilities to our seamen and crew members. It is on reciprocal basis.” Officials said that there have been thousand instances of violations of visa policy by Russian tourist in the past who came on TLP or tourist visa and stayed for years. Foreigners from Commonwealth of Independent States (CIS) too came to India and got settled in Goa and Pune. Many of them were later found to be involved in drug trade, trafficking and other criminal acts. The home ministry recently eased the tourist visa on arrival (TVoA) for 150 countries including Russia allowing visitors to obtain a visa to visit India online within 3 days. Unlike a normal tourist visa, a TvoA is non-transferable and issued for 30 days. Hines Ward Womens Jersey
TAL Manufacturing inaugurates Rs 100 crore aerospace facility
Tata Motors arm TAL Manufacturing Solutions has inaugurated a Rs 100 crore assembly shop at its Nagpur-based facility for aerospace business. With a manufacturing area of 96,000 sq ft and investment of over Rs 100 crore, the facility has equipment to support technologies such as fluid cell forming, extrusion stretch wrapping, and high speed machining of intricate parts along with facilities for assembly. “We have set up this new generic facility to build some of the most demanding structures of an aircraft with the help of globally benchmarked manufacturing technology. This facility will help us in delivering global quality and cost effective aerospace components & assemblies,” TAL ED and CEO Rajesh Khatri said in a statement. The facility has been built to primarily execute the supply emanating from the RUAG – TAL contract and is equipped to manufacture, assemble and supply over 50,000 precision parts and assemblies every month. RUAG Aero-structures, a global tier-1 supplier to Airbus, awarded a multi-year USD 150 million contract to TAL in 2014 for supply of precision machined and sheet metal parts for the Airbus A320 family of aircrafts. “We treat the inauguration of this new facility as the first step in our realization of making TAL a part of our strategic supply base,” RUAG Aero-structures Vice President Supply Chain and Logistics Alfons Kaspar said. “Our challenge is to help TAL ramp-up quickly and stabilize production, so that we can look beyond parts and sub-assemblies into larger and complex assemblies,” he added. The company is looking at exploiting the potential and capabilities that TAL has built up in composites, which will complement RUAG’s offerings and give an unbeatable value proposition across metallic and composite aero structures, Kaspar said. Laken Tomlinson Authentic Jersey