NMDC hikes domestic iron ore prices

PTI reported that National Mineral Development Corporation has raised long term contract prices of iron ore fines by 47.5%, bringing the price to INR 1,783 per tonne retrospectively from October 2007.

Mr Kumar Raghavan executive director corporate communications of NMDC told PTI that "We have raised prices as per the terms of long term agreements entered with various steel companies. The new prices would come into effect retrospectively from October 1st 2007.."

Mr Raghavan said that “Currently we are selling ore at INR 1,209 per tonne which will increase to INR 1,783 a tonne. But these rates are still below the market rates. There is still a huge gap between local and international prices. We will review prices next year once they are agreed upon globally.”

He however added that "We are a bit concerned that naxalite problem could affect the movement of rakes, so we are a bit unsure as to what would be the exact quantum of supply to our existing clientele.

He informed that NMDC had sold about 27 million tonnes of iron ore in the domestic market last year and intends to sell 2 million tonnes more this year.

NMDC earned a net profit of INR 2,300 crore in 2006 and is targeting INR 3,005 crore this year. It has paid 100% interim dividend amounting to over INR 130 crore to the government.

JSW Bengal to get environmental clearance soon

PTI reported that JSW Bengal Steel hopes to get environment clearance soon for beginning construction of the INR 35,000 crore integrated steel plant in the state.

Mr Biswadip Gupta MD of JSW Bengal said that "The final meeting with ministry of environment and forests was concluded on December 27th 2007 and we have received positive feedback from the ministry." He added that the official letter for the clearance has not yet been received as it usually takes 2 months after the final meeting.

Mr Gupta said that installation of the plant and machinery is expected to begin from the third quarter of 2008. The vendors working at the Bellary plant of the group may be engaged for the Bengal project. He added that "The steel production plan remains on schedule. We will roll out in March 2011."

It is noted that ministry of environment and forests clearance is the only hurdle in the way of JSW Bengal for beginning construction of 1st phase of 10 million tonne plant at Salboni in West Midnapore district.
1. Land acquisition for the project is also near completion. Out of a total 4,500 acre only 146 acre of patta land remained to be acquired. 2. JSW Steel Bengal has been allotted an iron ore mine in Ankua, Jharkhand and a few in Karnataka.
3. It has engaged Mineral Exploration Corporation Limited, which has begun assessment with 5 rigs at the site to develop the underground coking coal mine block offered to the company which would partially feed its plant.

TATA to launch INR 100,000 car

TATA Motors is scheduled to unveil the vehicle, touted as the world's cheapest mass produced car, on January 10th 2008 at an auto expo in New Delhi. There is a big gap between the cost of the average two wheeler and entry level cars and TATA plans to fill it.

Rival car makers are, however, not convinced about the safety and emission standards of the car, coming as it is at that price level. Reacting to this, Mr Ratan Tata told FT that "we are producing a car that will be no more polluting than a motorcycle. As we are not going to produce millions and millions of them, inundating the country, we will not be adding to the carbon footprint on a per-passenger basis."

He added that "The only reason we did not make the Rs one-lakh car a hybrid, for example, is that it could not have been priced at Rs one lakh.”

As per report Mr Ratan Tata, who celebrated his 70th birthday on December 28th 2007, would like to retire from active business life after his dream project “Rs one lakh car” is launched successfully. Mr Ratan Tata told FT that "In an ideal world, after the small car has been launched and is successful, that would be a nice time for me to exit.”

2007 review by Indian steel ministry – Brief

Indian steel ministry has released an update on year end review for 2007 by listing the overall scenario and some of the major initiatives taken by it
1. India becomes 5th largest steel maker in the world
2. Performance during April to October 2007
3. Demand and capacity expansion
4. Expansion plans of SAIL and RINL
5. Steel plant in Chattisgarh
6. Acquisition of coking coal mines
7. Facilitating investments in steel sector
8. Easing logistic bottlenecks
9. Ensuring quality steel for consumers
10. Utilization of low grade iron ore
11. Business transparency
12. Pricing monitoring mechanism
13. Dealer network
14. Corporate Social Responsibility

Please visit www.steelguru.com to read the detailed article

US DOC releases preliminary results in AD review on Indian HRC

In response to requests from US steel makers and Indian HR producers US’s Department of Commerce is conducting an administrative review of the antidumping order on certain hot rolled carbon steel flat products from India.

US DOC has preliminarily determined that during the period of review, JSW made sales of subject merchandise at less than normal value. Preliminary Results of the Review

US DOC preliminarily found that the following weighted-average dumping margins exist
Producer/Manufacturer Weighted-Average Margin
Ispat 0.00%
Tata 0.24%
JSW 37.01%
Essar 0.00%

The Department has also preliminarily determined that no dumping margin or a de minimis dumping margin exists for Ispat, Tata and Essar during the POR. If these preliminary results are adopted in the final results of this administrative review, US DOC instruct US Customs and Border Protection to assess antidumping duties on all appropriate entries of subject merchandise during the POR.

The merchandise subject to this order is hot rolled carbon steel products of a rectangular shape, of a width of 0.5 inch or greater, neither clad, plated, nor coated with metal and whether or not painted, varnished, or coated with plastics or other non metallic substances, in coils (whether or not in successively superimposed layers), regardless of thickness, and in straight lengths, of a thickness of less than 4.75 mm and of a width measuring at least 10 times the thickness. Universal mill plate (ie, flat-rolled products rolled on four faces or in a closed box pass, of a width exceeding 150 mm, but not exceeding 1250 mm, and of a thickness of not less than 4 mm, not in coils and without patterns in relief) of a thickness not less than 4.0 mm is not included within the scope of this order. Specifically included in the scope of this order are vacuum degassed, fully stabilized commonly referred to as interstitial free steels, high strength low alloy steels, and the substrate for motor lamination steels.

The petitioners are Nucor Corporation, Mittal Steel USA Inc and United States Steel Corporation and the respondents are Ispat Industries Limited, Essar Steel Limited, JSW Steel Limited and TATA Steel Limited.

Chronology

December 3rd 2001
US DOC published antidumping duty order on hot rolled carbon steel.

December 1st 2006
US DOC published a notice of "Opportunity to Request Administrative Review" of this antidumping duty order. Petitioners requested a review of Essar. Ispat, Tata, Essar and JSW self requested a review of the antidumping duty order on hot rolled carbon steel.

February 2nd 2007
US DOC published a notice of initiation of the administrative review of the antidumping duty order on hot-rolled carbon steel, covering the period December 1st 2005 to November 30th 2006.

February 21, 2007
US DOC issued an antidumping questionnaire to Ispat, Tata, JSW, and Essar. The Department received responses to the original questionnaires from Ispat, Tata, JSW, and Essar. The Department subsequently issued supplemental questionnaires to all parties and received responses to the same.

August 30, 2007
US DOC published a notice extending the time period for issuing the preliminary results of the administrative review from September 2nd 2007 to December 19th 2007.

June 13, 2007 and on October 31, 2007
Nucor alleged that JSW's ownership and affiliations, as part of the O.P. Jindal Group, are not accurately reflected on the record, and that JSW has a close supplier and a debt financing relationship with another steel company that rises to the level of control. Nucor claims that the Department should collapse JSW and the OP Jindal Group.

October 31, 2007
US DOC finds that the record facts do not provide a basis for collapsing JSW and other entities in the OP Jindal Group. The record shows that JSW is affiliated with the companies that comprise the O.P. Jindal Group, and is the only company in the group that produces and sells subject merchandise. The evidence on the record indicates that the other companies in the Group have production facilities which would require substantial retooling for producing similar or identical products. Accordingly, the criteria for collapsing JSW into the OP Jindal Group has not been satisfied. For these reasons, for purposes of the preliminary results, US DOC is not treating JSW and the O.P. Jindal Group as a single entity.

Global Smelters to increase SS capacity

Informatics (India) Ltd reported that Global Smelters Ltd is increasing the capacity of stainless steel plant to 0.4 million tonnes per annum from 0.1 million tonne per annum at Hamirpur in Uttar Pradesh.

As per report, the plant will come up on 35 acres of land with an investment of INR 150 crore. The expansion will be funded through loans from Punjab National Bank and Allahabad Bank. Around 15% of work is complete and the remaining would be over by Dec 2008.

TATA Steel plant supporters stop protest march by CPI

IANS reported that supporters of the proposed TATA Steel plant in Chhattisgarh forcibly stopped Mr Gurudas Dasgupta, a leader of Communist Party of India, from leading a protest rally near the plant site. Mr Dasgupta was scheduled to head an anti TATA protest march in Bastar district where it has a INR 100 billion investment deal to set up an integrated 5 million tonne per annum plant in Lohandiguda block under Chitrakote assembly segment.

Mr Manish Kunjam former CPI legislator and a local tribal leader said that “Besides a march, he was scheduled to attend a meeting of farmers in the district affected by the TATA Steel plant in the district but hundreds of plant supporters and state's ruling Bharatiya Janata Party supporters as well a section of opposition Congress cadres did not allow him to enter Jagdalpur.”

Mr Kunjam said that “The supporters stopped Mr Dasgupta's convoy at Bhanpuri close to Jagdalpur city and rejected his plea that he wanted to lead a peaceful march against blind industrialization of mineral rich Bastar at the cost of driving out indigenous tribals from their native farm lands.” He added that plant supporters forced Mr Dasgupta to return to Raipur.

It is noted that the supporters have recently formed Bastar Vikas Manch under the guidance of Bastar MP and BJP leader Mr Baliram Kashyap to flush out people from Bastar opposing industrialization and development.

FSTA for coal to make Indian railway accountable

It is reported that the proposed Fuel Supply Transport Agreement between Indian Railways and coal consumers would make the Indian railway accountable to supply designated quantity of coal to buyers.

Mr K Ranganath director marketing of Coal India Limited said that the draft agreement is lying with Indian Railway ministry for approval and was expected to be effective in the near future.

It is noted that the new agreement would become binding on all 3 interested parties in the coal supply chain. There was likely to be penalty clauses for all if agreement conditions were not met. The existing Fuel Supply Agreement was between CIL and coal consumers and was affected due to scarcity of railway rakes.

MRTPC may probe cartels in shipping and transport sector

Mr Prem Chand Gupta union minister of corporate affairs recently said that union government may ask competition watchdog Monopolies and Restrictive Trade Practices Commission to investigate and take appropriate action against cartels in shipping, transport and tyre industry.

Mr Gupta said that "We are getting reports which indicate cartelization in shipping, transport and tyre industry. Once we get actionable evidence we can ask Monopolies and Restrictive Trade Practices Commission to investigate and take appropriate action."

He added that MRTPC has already taken action against cement companies and their association CMA for forming a cartel to raise prices.

Milestones in Indian coal sector during 2007 - Brief

India’s ministry of coal has released the details of achievements in coal and allied products during 2007 as under.
1. Coal production
2. Lignite Production
3. Coal Linkage
4. New Coal Distribution Policy
5. Allocation of coal blocks
6. Approval of coal projects
7. Opening of coal sector
8. Rates of Royalty
9. Miniratna status
10. Non official directors
11. Coal regulator
12. Coal sector reforms

Pl visit www.steeguru.com to read full article

Durgapur Projects commissions 300 MW unit

It is reported that Durgapur Projects Limited has commissioned its seventh unit of 300 MW capacity. A company release said that DPL successfully generated 102 MW from the coal fired unit on last weekend.

A DPL release said that “The optimum capacity would be reached gradually. Synchronization was made successfully on November 24th 2007.”

It added that "This is the first 300 MW unit in the Eastern region and executed by Chinese company Dong Fang Electric Corporation.”

Prakash Industries clarifies on news item

With reference to the news item appearing in a leading web portal titled "Prakash Industries may raise INR 1000 crore via SPV Prakash Thermal Power :Sources", Prakash Industries Ltd has clarified to BSE that the news has been released by them on their assumptions only and the Company has not given any information or given any facts to them in this regards.

However, the Company has signed an MoU with Madhya Pradesh State Government for setting up 1000 MW power plant in the State for which the Company has already intimated to the Stock Exchange.

Ramsarup Industries exploring merger of its units

Ramsarup Industries Ltd has informed BSE that its board of directors at its meeting held on December 28th 2007, has decided to explore possibilities of merging Ramsarup Lohh Udyog Ltd with the Company.

The release added that “A Committee has been formed to take steps such as appointment of Solicitor, financial consultants etc. to assist the Company in this regard.”

Achievements of ministry of mines during 2007 - Brief

The ministry of mines is responsible for survey and exploration of all minerals, other that natural gas, petroleum and atomic minerals for mining and metallurgy of non ferrous metals like aluminum, copper, zinc, lead, gold and nickel and for administration of the mines and minerals development and regulation Act 1957 in respect of all mines and minerals other than coal, natural gas and petroleum.

The achievements or initiatives taken by the government during the year up to November 2007 to streamline the mining sector are as under:

1. Reconnaissance permit

2. Performance of PSUs
a) National Aluminum Company Limited
b) Mineral Exploration Corporation Limited
c) Hindustan Copper Limited
d) Geological Survey of India
e) Indian Bureau of Mines

Pl visit www.steeguru.com to read full article

Performance of power sector during 2007 – Brief

Following are the highlights of the performance of union power sector in the year 2007
1. Capacity addition
2. Growth in Generation
3. Project orders
4. Ultra Mega Power Projects
5. Ratnagiri Power Project
6. Transmission
7. Rajiv Gandhi Grameen Vidyutikaran Yojana
8. Accelerated Power Development and Reforms Program
9. Tehri Project
10. Electricity Amendment Act 2007
11. Rules under Electricity Act, 2003
12. Forum of Regulators

Please visit www.steelguru.com to read the detailed article

Strides of progress by Indian Railway in 2007 – Brief

In the past few years, Indian Railways have registered an unprecedented turnaround in its fortunes that has helped launch itself towards a path of gigantic growth and development, keeping in view the future transportation needs of the economy.

Milestones have been bettered and sights set on newer ones, especially those that beckon it during the 11th Plan period such as the freight loading target of 1100 million tonnes during that period. The year 2007 has been significant for the Railways in achieving goals and targets with regard to the following
1. Revenue Generation
2. UIC plays active role under IR leadership
3. Making India a global hub for International Railway Managers
4. Signing agreement on Trans Asian Railways
5. Passenger Amenities
6. World-class railway stations
7. Dial ‘139’ countrywide common telephone no. for train enquiry
8. Dedicated Freight Corridor
9. Production Units meet target
10. Introduction of state-of-the-art EMUs
11. Reaching out to backward areas
12. Setting up of joint venture power plant
13. Coal transportation agreement
14. Technological Upgradation of Telecommunication Systems
15. Highest bonus ever paid to employees
16. Safety and security
17.Excellent achievements in sports
18. World Heritage
19. Allowing sale of reserved tickets through Post Offices
20. Growing world-wide interest in Indian Railways

Please visit www.steelguru.com to read the detailed article

RCF plans coal gasification project in Orissa

BS reported that Rashtriya Chemicals & Fertilizers has signed a MoU with GAIL for setting up a coal gasification project at Talcher in Orissa.

The project will add production capacity of 1.15 million tonnes of urea per year at the estimated cost of INR 3,200 crore.

The gas produced from the coal gasification plant will be used in the production of ammonia, urea and other chemicals. The department of fertilisers had entrusted RCF to revive closed fertilizer units at Talcher and Durgapur.

Performance of 6 infrastructure sectors in H1 of 2007-08

FINISHED (CARBON) STEEL PRODUCTION
Weight: 5.13%

In ‘000 tonnes
Production Data and Growth rates are provisional
Source: Ministry of Steel

COAL PRODUCTION
Weight: 3.22%

In million tonnes
Production data and Growth rates are provisional.
Source: Department of Coal

ELECTRICITY GENERATION
Weight: 10.17%

In GWH
Generation and Growth rates are provisional.
Electricity generation data includes also imports from Bhutan
Source: Ministry of Power

CEMENT PRODUCTION
Weight: 1.99%

In ‘000 tonnes
Production and Growth rates are provisional
Source: Department of Industrial Policy & Promotion

CRUDE PETROLEUM PRODUCTION
Weight: 4.17%

In ‘000 tonnes
Production data and Growth rates are provisional.
Source: Ministry of Petroleum & Natural Gas

OUTPUT OF PETROLEUM REFINERY PRODUCTS
Weight: 2.00%

In ‘000 tonnes
Output and Growth rates are provisional.
The figure are estimated on the basis of data on refinery production (in terms of crude throughput)
Source: Ministry of Petroleum & Natural Gas

2007 review by Indian steel ministry – Detailed

Indian steel ministry has released an update on year end review for 2007 by listing the overall scenario and some of the major initiatives taken by it
1. India becomes 5th largest steel maker in the world
2. Performance during April to October 2007
3. Demand and capacity expansion
4. Expansion plans of SAIL and RINL
5. Steel plant in Chattisgarh
6. Acquisition of coking coal mines
7. Facilitating investments in steel sector
8. Easing logistic bottlenecks
9. Ensuring quality steel for consumers
10. Utilization of low grade iron ore
11. Business transparency
12. Pricing monitoring mechanism
13. Dealer network
14. Corporate Social Responsibility

1. India becomes 5th largest steel maker in the world
Led by robust domestic demand the steel sector in the country has been witnessing extraordinary growth, making India the fifth largest crude steel producer in the world as against 8th position held three years back. Production of finished carbon has increased from 35.41 million tonnes in 2002-03 to 49.58 million tonnes in 2006 -07.

2. Performance during April to October 2007
During the first seven months of the current year from April to October 07, production of finished carbon is estimated to be about 29.37 million tonnes and is expected to be 55.5 million tonnes in FY 08. While exports have remained fairly stable between 2002-03 until last year at around 4.5 million tonnes, imports have increased from 1.51 million tonnes in 2002-03 to 4.10 million tonnes maintaining a rising trend this year, largely to fill the demand supply gap in the domestic market.

3. Demand and capacity expansion
The demand for steel is expected to remain buoyant, above 10% over the next five years, and in the most likely scenario the steel production capacity in the country is expected to touch 124 million tonnes by 2012. While the Brownfield expansion plan over the next five years is expected to add 40.5 million tonnes capacity to the existing capacity of 56.84 million tonnes, the most likely scenario for addition to capacity by setting up of Greenfield projects is expected to be 28.72 million tonnes taking the total capacity to 124.06 million tonnes. Furthermore, taking into consideration the intentions expressed by various steel investors including multinationals, domestic steel majors and FDIs, the likely capacity achievable by 2019-20 will be around 275 million tonnes.

4. Expansion plans of SAIL and RINL
The Public Sector Undertakings, Steel Authority of India Limited and Rashtriya Ispat Nigam Limited, are in the midst of ambitious expansion plans. The expansion plan would increase the capacity of SAIL from 14.6 million tonnes of hot metal to 26 million tonnes by 2010 at an estimated cost of around INR 53,000 crore. SAIL is also planning to expand its capacity further to 60 million tonnes per annum by 2020. In case of RINL, the expansion would increase its capacity from the present level of 3 million tonnes of hot metal to 6.3 million tonnes by 2009-10 at an estimated cost of around Rs.9,000 crore. RINL also plans to enhance capacity to 16 million tonnes per annum by 2020.

5. Steel plant in Chattisgarh
An MOU was signed between SAIL, RINL and NMDC this year for setting up a 4 million tonnes steel plant in Chhattisgarh. MECON has been appointed as consultant to prepare the site selection and economic feasibility report by April 2008. In a major move for implementing the project a tripartite MOU was signed between the Railway Ministry, Chhattisgarh Government and SAIL and NMDC for laying a 235 kilometer railway link between Dalli- Rajhara and Rowghat and further to Jagdalpur.

6. Acquisition of coking coal mines
In the wake of major expansion plan, securing raw materials has been a major concern. By 2020, about 70 million tonnes of coking coal will be required of which 85 per cent will have to be imported. SAIL, RINL, Coal India Limited, NTPC and National Mineral Development Corporation signed a MOU in August this year to jointly promote a Special Purpose Vehicle for acquisition of coal mines & properties abroad. The union cabinet has approved the proposal of the Steel Ministry in November 2007.

7. IMG for facilitating investments in steel sector
With a view to facilitate speedy actualization of major steel investments in the country, the Prime Minister has approved the constitution of an Inter Ministerial Group to monitor and coordinate issues concerning major steel investments in the country. The IMG is chaired by Secretary, Steel with Secretaries of DIPP, Mines, Environment and Forest, Road Transport and Highways, Shipping, Member (Traffic), Railway Board and Chief Secretaries of concerned State Governments as its members. The broad terms of reference of the IMG are to review and coordinate measures for early completion of major steel capacities and to address various problems concerning infrastructure, availability of raw materials, speedy environment clearance, availability of other resources such as land and water and issues concerning rehabilitation.

8. Easing logistic bottlenecks
A coordination committee consisting of representatives of steel industry, Ministry of Steel and Railway Board has been constituted to identify the major bottlenecks in railway facilities to steel sector. The Ministry of Steel has also commissioned a study with the Economic Research Unit to assess the infrastructure deficiencies and requirements in the major steel producing areas, particularly Orissa, Jharkhand and Chhattisgarh.

9. Ensuring quality steel for consumers
In order to make available quality steel to the consumers, it has been made mandatory for the producers and distributors to obtain quality certification under the Bureau of Indian Standards Act. The notification issued in November this year comes into force after a period of six months from the date of the notification. The notification applies to 17 steel products used in housing and construction, plates used in pressure vessel and Boilers, electrical sheets for transformers and Motors, galvanized sheets for roofing and paneling, tinplates used for packaging of food products etc. All manufacturers of the 17 steel products covered under this order will have to apply for license from the Bureau of Indian Standards for the use of the ISI mark within 45 days of the publication of the order. Any violation of the order will attract punitive action which includes jail terms up to one year and fine. This will go a long way in making available critical steel products of certified quality to consumers.

10. Utilization of low grade iron ore
In a move to increase the use of lower grade iron ore, the Ministry of steel organized an international seminar with participation of about 200 experts from home and abroad. The objective was to use such ore by beneficiating the same and also to maximize the use of iron ore fines by pelletization. The seminar which evoked considerable interest is expected to lead to addition of substantial green field capacity for producing pellets based on iron ore fines.

11. Business transparency
To ensure transparency in functioning, the vigilance machinery in PSUs has been strengthened as SAIL, RINL, NMDC, MECON, KIOCL, HSCL, BRL, MOIL have obtained ISO 9001- 2000 certification. During this year all the PSUs under the Ministry have implemented Integrity Pact. The Pact is considered an International best practice from Transparency International, for improving fairness and transparency in procurement and contracts with bidders & vendors for all major purchases.

12. Pricing monitoring mechanism
Since its deregulation in 1991, the steel sector in the country is free to decide on its domestic and export prices. Following a demand from the steel consumers in the National Steel Consumers Council Meeting a Steel Price Monitoring Committee was formed with both officials and representatives from Steel industry and Steel consumers as its members. The Committee besides monitoring prices also advises the industry to decide their product mix as well as long term capacity additions, keeping in view the demand growth in long products. Producers were also advised to keep the ex-factory prices of long products in check and to maintain their export balance vis-à-vis the domestic demands for steel.

13. Dealer network
Both SAIL and RINL are expanding their dealership network to ensure availability of commonly used items of steel in rural areas. While SAIL has nearly 1300 dealers covering 602 districts across the country, RINL has dealers in 131 districts.

14. Corporate Social Responsibility
All profitable Steel PSUs are committed to the cause of CSR and have earmarked 2% of their distributable profits for CSR activities. The total budget is about INR 230 crore. They have contributed to flood relief measures. SAIL alone has organized 153 health camps during April to September 07 in six states of Bihar, Jharkhand, Chhattisgarh, Orissa, West Bengal and Tamil Nadu. All the major PSUs have been urged by the Steel Ministry to adopt villages around their plant and help develop these villages as model villages.

Milestones in Indian coal sector during 2007 - Detailed

India’s ministry of coal has released the details of achievements in coal and allied products during 2007 as under.
1. Coal production
2. Lignite Production
3. Coal Linkage
4. New Coal Distribution Policy
5. Allocation of coal blocks
6. Approval of coal projects
7. Opening of coal sector
8. Rates of Royalty
9. Miniratna status
10. Non official directors
11. Coal regulator
12. Coal sector reforms

1. Coal production

Coal India Limited
During the year up to November 2007, CIL’s coal production was 221.48 million tonnes as up by 2.3% YoY as compared to 216.49 million tonnes during the corresponding period of the previous year. Overall off take in the aforesaid period was 237.74 million tonnes up by 5.9% YoY as compared to 224.37 million tonnes during the corresponding period of the previous year. Coal dispatches including middling to power sector during the same period was 179.55 million tonnes up by 7.07% YoY as compared to 167.69 million tonnes during the corresponding period of last year. Coal stocks with the power stations were 14.05 million tonnes as on November 30th 2007.

SCCL
During the year up to November 2007, coal production was 26.19 million tonnes up by 16.9% YoY as compare to 22.39 million tonnes during the corresponding period of previous year. Overall off take in the same period was 27.21 million tonnes as up by 19.13% YoY compared to 22.84 million tonnes during the corresponding period of the previous year. Coal dispatches including middling to power sector during the same period was 19.51 million tonnes up by 22.8% YoY as compared to 15.88 million tonnes during the corresponding period last year.

2. Lignite Production
NLC
During the year up to November 2007, NLC’s lignite production was 136.86 million tonnes up by 10.14% YoY as compared to 124.26 million tonnes during the corresponding period of the previous year and gross power generation in the aforesaid period was 11522.85 million units up by 18.24% YoY as compared to 9745.55 million units.

3. Coal Linkage
During 2007, 27 projects of thermal power plants and independent power producers involving coal commitment to the tune of about 75 million tones have been recommended for issue of letter of assurance. In addition, requests of a large number of applicants of sponge iron units, cement plants, captive power plants etc have also been considered recently by the standing linkage committee and the letter of assurances would be issued to all the recommended cases, after approval by competent authority, in accordance with the provisions of new coal distribution policy.

4. New Coal Distribution Policy
A new coal distribution policy has been circulated with effect from October 18th 2007 which, inter alia, envisages meeting the demand of coal from consumers of different sectors of the economy, both on short term and long term basis, in an assured, sustained, transparent and efficient manner with built in commercial discipline. Apart from meeting the requirement upto a satisfaction level through commercially enforceable fuel supply agreement, it also provides for dedicated source of supply through state government nominated agencies, for consumers in small and medium sector, whose annual requirement does not exceed 4200 tonnes per annum. E auction scheme has been reintroduced with certain additional features, so that long term requirements can also be accessed through e auction.

5. Allocation of coal blocks
During 2007, 50 coal blocks have been allocated to eligible end users. The sector wise coal blocks allocation during 2007 is given as below:

Reserve in million tonnes

Assuming mineable reserves as 60% of the gross reserves and a 30 year life cycle, these reserves will have a production potential of 230 million tonnes per annum.

6. Approval of coal projects

During the year 2007, following 2 coal projects of total capacity 7.285 million tonnes per year with a total capital investment of INR 727.18 crore have been approved by the government.

Capacity in million tonnes
Investment in INR crore

7. Opening of coal sector
The companies engaged in production of syn gas through coal gasification and coal liquefaction were made eligible for captive mining in addition to existing ones vide notification dated July 12th 2007. It means that now coal block can be given to private sector foal coal gasification and for coal benefactor.

8. Rates of Royalty
Rates of royalty on coal & lignite have been revised with effect from August 1st 2007. This will increase royalty revenues of coal producing states by about 24%.

9. Miniratna status
Government has conferred the status of Miniratna category I on the following coal companies with effect from the dates shown against each:
i) Coal India Limited with effect from March 15th 2007
ii) Mahanadi Coalfields Limited with effect from March 15th 2007
iii) Northern Coalfields Limited with effect from March 15th 2007
iv) South Eastern Coalfields Limited with effect from March 15th 2007
v) The Western Coalfields Limited (WCL) w.e.f. 15.03.2007.
vi) Central Coalfields Limited with effect from October 4th 2007
This will give them greater autonomy in decision making.

10. Non official directors
For the first time, non official independent directors have been appointed on the boards of CIL and its subsidiary companies.

11. Coal regulator
The ministry of coal has appointed the administrative staff college of India as consultant on need for an independent regulator for coal sector. ASCI has submitted a report & it is being examined in the ministry.

12. Coal sector reforms

a) Guidelines for allocation of captive coal blocks have been revised and independent mining companies are now permitted to seek coal blocks for captive mining provided they have back to back tie up with end user companies.

b) In order to ensure timely development of coal mines and associated end use of projects in the case of allocation of coal blocks to state or central public sector companies, the government has taken a decision to obtain bank guarantee from such government companies also.

c) Ministry of coal has finalized the guideline for undertaking detailed exploration by the allocatees of unexplored coal blocks in the public and private sectors as well as state governments. This will speed up the process of exploration as allocatees will be able to get the exploration from any agency of their choice.

d) An expert committee set up under the chairmanship of Mr TL Shankar to suggest a road map for the coal sector reforms has since submitted it final report in October 2007. The report is under consideration in the ministry of coal, which will help in coal sector reforms in a big way after it is accepted and implemented.

Achievements of ministry of mines during 2007 - Detailed

The ministry of mines is responsible for survey and exploration of all minerals, other that natural gas, petroleum and atomic minerals for mining and metallurgy of non ferrous metals like aluminum, copper, zinc, lead, gold and nickel and for administration of the mines and minerals development and regulation Act 1957 in respect of all mines and minerals other than coal, natural gas and petroleum.

The achievements or initiatives taken by the government during the year up to November 2007 to streamline the mining sector are as under:

1. Reconnaissance permit

2. Performance of PSUs
a) National Aluminum Company Limited
b) Mineral Exploration Corporation Limited
c) Hindustan Copper Limited
d) Geological Survey of India
e) Indian Bureau of Mines

1. Reconnaissance permit
The policy changes in mineral sector have attracted many multinational companies for investment in exploration of base metals, noble metals and other scarce minerals. 268 reconnaissance permits covering an area of 367,387 square kilometers have been approved up to September 2007. The states for which reconnaissance permits have been approved so far are Andhra Pradesh with 46, Arunachal Pradesh with 1, Karnataka with 47, Rajasthan with 44, Chhattisgarh with 31, Madhya Pradesh with 37, Maharashtra with 10, Manipur with 1, Orissa with 24, Uttar Pradesh with 16, Jharkhand with 3, West Bengal with 3, Gujarat with 4 and Kerala with 1.

2. Performance of PSUs

a) National Aluminum Company Limited
The National Aluminum Company Limited achieved all time record sales turnover of INR 6515 crore, record export turnover of INR 2585 crore and record net profit after tax of INR 2381 crore. NALCO paid a dividend of 75% for 2006-07, amounting to INR 483.23 crore. Out of this amount, INR 421.27 crore was paid to the government of India and balance to other shareholders of the company.

The 2nd phase expansion of the company at an estimated project outlay of INR 5003 crore is in progress. The progress of the work has gained momentum and by the end of November 2007, orders have been placed involving financial commitments of INR 3570 crore and scheduled for commissioning by December 2008.

NALCO is exploring possibilities of setting up a Smelter plant abroad where cheap power is available. After a visit by NALCO team, a high level team from Indonesia visited NALCO in November 2007 for finalizing the MoU for setting up smelter & power plants in South Sumatra in Indonesia. Alternatively, the company is in talks with government or agencies in South Africa, Iran and Saudi Arabia for JV projects. It has been recommended for award of Navaratna status by the high power committee of government of India.

NALCO has been adjudged excellent for 12th consecutive year for performance assessment under MoU with the government.

Further to submission of mining plan and detailed project report, activities for land acquisition, forest clearance and compliance to terms of reference of ministry of environment and forest are under execution. Proposal for expression of interest for short listing of agencies for coal and OB outsourcing has been initiated for the allotted captive coal mine namely Utkal E coal block at Talcher in Orissa.

For development of ancillary and downstream industries in association with state government and subsequent to feasibility & market study report by consultant AF Ferguson the company is in the process of signing MoU with state government for allotment of land at Angul for setting up a JV Aluminum Park.

During the year, NALCO received the top export award of CAPEXIL, for the year 2006-07 and CITD Quality Award. All the production units namely bauxite mines, alumina refinery, smelter plant and captive power plant have been recertified by M/s RWTUV of Germany to ISO 9001: 2000 quality system & ISO 14001 for environmental standards. SA 8000 standard for corporate social responsibility has been taken up for implementation.

b) Mineral Exploration Corporation Limited
Mineral Exploration Corporation Limited is a premier exploration agency in the country with all ground exploration facilities available under one roof. The present authorized capital of the company is INR 125.00 crore and the paid up capital is INR 119.55 crore.

MECL carries out exploration activities under 2 major heads namely

Promotional work for coal, lignite and metallic minerals on behalf of and funded by Government of India. The schemes for detailed exploration are formulated by the company, in the perspective of the demand as against availability as well as national priorities.

Contractual work on behalf of other agencies including public sector, private sector and state governments as per contract executed by MECL with them.

During January 2007 to November 2007, MECL continued its core activity of exploratory drilling and exploratory / developmental mining for various minerals in different parts of the country. In addition, it continued the diversification activity in the field of coal sampling & analysis, supply of ballast stone to South Eastern Railways and slim hole drilling for CBM studies on behalf of CMPDIL and ONGC.

The upward trend in physico financial performance of the company has been maintained during 2007. Against the target of 173000 meter in drilling, the achievement has been 191492 meter and in developmental mining the achievement has been 6805 meter as against the target of 5900 meter. Thus, the targets for these activities have been exceeded by 10% and 15% respectively. The gross margin of the company stood at INR 119 million at the end of November 2007.

A total of 34 work orders valued at INR 887.595 million were received from various clients such as OMC APMDCL, Chhattisgarh Mineral Development Corporation Limited & JSW WMDTCL for exploration of coal, Mine development work on behalf of UCIL and HCL, lignite exploration on behalf of NLC & BLMC, exploration of manganese on behalf of MOIL and coal sampling and analysis through MOU on behalf of SAIL, CCSO and subsidiaries of CIL etc.

LoI received from directorate general of hydrocarbon, government of India for carrying out resources estimation of oil shale deposit and syncrude potential in North Eastern Part of India MECL along with BRGM, France has started the work. MECL is also carrying out deep drilling for exploration of evaporite in the Bikaner Nagaur basin of Rajasthan which is a prestigious project of ONGC.

MECL bagged MoU Excellence Award for outstanding performance in the preceding year. The award was presented to MECL by Mr Jayaram Ramesh union minister of state for commerce & Industry. Government has conveyed approval for financial restructuring and wage revision in MECL and the same has been implemented.

c) Hindustan Copper Limited
The Hindustan Copper Limited is a central public sector enterprise under the administrative control of the ministry of mines. During the year 2006-07, HCL has earned a net profit of INR 313.94 crore after tax against the target of INR 118.35 crore. The Cabinet in its meeting held on 26th July, 2007 has approved the financial restructuring proposal of the Hindustan Copper Limited which includes

1) Conversion of non plan loan amounting to INR 50 crore into equity

2) Waiver of 7.5% non cumulative redeemable preference share amounting to INR 180.73 crore and its adjustment against accumulated losses

3) Restructuring of capital through reduction of face value of equity share from INR 10 to INR 5 amounting INR 382.21 crore and its adjustment against the accumulated losses

4) Restoration of superannuation age to 60 years to preserve skills and provide a breathing time to the organization for formulation of proper succession plan

5) Creation of post of director mining to drive the growth agenda in the mining domain

d) Geological Survey of India
Geological Survey of India is the main arm of the government for survey and exploration of mineral resources and creation of earth science data base for harnessing other natural resources for the benefit of the country.

Major initiatives taken by GSI during the year are as under

1) The cabinet has approved the acquisition of a new deep sea going research vessel for Geological Survey of India at an estimated cost of INR 448 crores for carrying out seabed surveys and exploration of non living resources. Procurement action for the research vessel is on.

2) Geological Survey of India is acquiring heliborne survey system fitted with sensors for improving the quality of exploration and for tapping deep seated mineral resources in addition to updating the techniques for ground geological and geophysical survey, precision analytical instruments and deep capacity drills. MOU has been signed between Pico Enviortech Inc, Canada and Geological Survey of India for the purchase of the heliborne system.

3) GSI Enterprise Information Portal went live in the Internet and can be accessed by any user. It envisages providing real time data to various stakeholders and users, including entrepreneurs, academicians and common public.

4) A disaster management control room has been created at GSI, to be in operation on 24x7 mode and to be connected to the disaster management support network.

5) GSI have reported that most of the glaciers of the Himalayas as well as in the other parts of the world are receding and this may be due to subnormal snowfall, higher temperature during summer, less severe winter or a combination of all of these. It may also be due to global warming, which is a debatable issue.

6) Union cabinet decided for setting up of a high powered committee to thoroughly review the functioning of Geological Survey of India and assess its capacity to meet the emerging challenges taking into the organization's technological and manpower resources.

e) Indian Bureau of Mines
Indian Bureau of Mines, during the year up to November 2007, inspected 1690 mines to promote systematic and scientific mining and pointed out 1305 violation cases. Through IBM initiatives, 952 violations were fully rectified and 393 mining plans and schemes were approved. During the period, 19 mining plans or schemes were not approved as they are found to be deficient.

Performance of power sector during 2007 – Detailed

Following are the highlights of the performance of union power sector in the year 2007
1. Capacity addition
2. Growth in Generation
3. Project orders
4. Ultra Mega Power Projects
5. Ratnagiri Power Project
6. Transmission
7. Rajiv Gandhi Grameen Vidyutikaran Yojana
8. Accelerated Power Development and Reforms Program
9. Tehri Project
10. Electricity Amendment Act 2007
11. Rules under Electricity Act, 2003
12. Forum of Regulators

1. Capacity addition
Between January 1st 2007 to December 12th 2007 projects aggregating to record 9050 MW are commissioned. This comprises of 6645 MW of thermal capacity, 2185 MW of hydro capacity and 220 MW of nuclear capacity.

2. Growth in Generation
As compared to annual growth rate of about 3.1% at the end of 9th Plan and initial years of 10th Plan, the growth in generation during 2006-07 and 2007-08 upto November 2007, was 7.3% and 6.9% respectively. Notwithstanding the fact that many of the TPSs in the country are very old, the pant load factor has shown improvement over the years. The PLF upto November 2007 was recorded as 76.7%.

3. Project orders
Between January 1st 2007 and December 14th 2007 orders in respect of 33 projects aggregating 21,424 MW were placed. Out of this 21 projects aggregating 17,634 MW pertain to thermal segment and 12 projects aggregating 3790 MW pertain to hydro segment.

4. Ultra Mega Power Projects

a) Mundra in Gujarat
The project was handed over to the successful bidder TATA Power Company Limited April 23rd 2007 at the evaluated levelised tariff of INR 2.26367 per KWHR.

b) Sasan in Madhya Pradesh
The project was handed over to the successful bidder Reliance Power Limited on August 7th 2007 at the evaluated levelised tariff of INR 1.19616 per KWHR.

c) Krishnapatnam in Andhra Pradesh
Letter of Intent issued to Reliance Power Limited which emerged as L1 quoting the levelised tariff of INR 2.33 per unit on November 30th 2007.

d) Tilaiya in Jharkhand
The request for qualification stage in respect of Tilaiya UMPP was completed on November 12th 2007 and 13 bids have been received and are under evaluation.

5. Ratnagiri Power Project
Ratnagiri Power Project of Ratnagiri Gas & Power Private Limited has achieved commercial operation of power blocks II & III. Thus two of the three blocks are now operational with R-LNG Linkage available at pooled prices. While power block II has been under commercial operation form September 1st 2007, power block III has been also under commercial operation since November 21st 2007. Further RGPPL has started servicing of loans of the lenders.

6. Transmission
The following inter regional transmission lines were commissioned during the above period. This has resulted in more power being transferred between the Eastern, Northern and Western Regions from surplus areas to deficit areas and more stable operation of the unified grid.

7. Rajiv Gandhi Grameen Vidyutikaran Yojana
39,383 villages were covered this year under the Rajiv Gandhi Grameen Vidyutikaran Yojana.
The details are as under

*This is included in the total RHH
Franchisees have been deployed in 33,858 villages in 14 states during the year 2007.

8. Accelerated Power Development and Reforms Program
Under the investment component of Accelerated Power Development and Reforms Program, central government provides assistance to the tune of 25% and 90% of the project cost in the form of grant to non-special category and special category states respectively for strengthening and up gradation of sub transmission and distribution systems of high density load centers like towns and industrial areas. INR 549.72 crore has been released so far to the sates during the calendar year 2007.

Incentive component is for the SEBs or utilities to reduce their financial losses. Funds are released to the SEBs for actual cash loss reduction, for every INR 2 of cash loss reduction INR 1 is given as grant. INR 384.68 crore has been released during the calendar year 2007.
9. Tehri Project
The 1000 MW multipurpose Tehri Hydro Electric Project located in Uttarakhand became fully operational during the year 2007. The project is affording benefits of peaking power to northern grid and irrigation & drinking water benefits to Uttar Pradesh and Delhi.

10. Electricity Amendment Act 2007
The Electricity Amendment Act 2007, amending certain provisions of the Electricity Act 2003, has been enacted on May 29th 2007 and brought into force with effect from June 15th 2007. The main features of the amendment Act are

11. Rules under Electricity Act, 2003
The central government has issued the following rules under the Electricity Act, 2003 during this year
The central government has notified appellate tribunal for electricity rules 2007 on January 22nd 2007, which have replaced the appellate tribunal for electricity rules 2004 notified on April 13th 2004.

12. Forum of Regulators
Interactive session with the forum of regulators and state governments held on November 5th 2007 on implementation of open access decided to launch a website.

Strides of progress by Indian Railway in 2007 – Detailed

In the past few years, Indian Railways have registered an unprecedented turnaround in its fortunes that has helped launch itself towards a path of gigantic growth and development, keeping in view the future transportation needs of the economy.

Milestones have been bettered and sights set on newer ones, especially those that beckon it during the 11th Plan period such as the freight loading target of 1100 million tonnes during that period. The year 2007 has been significant for the Railways in achieving goals and targets with regard to the following
1. Revenue Generation
2. UIC plays active role under IR leadership
3. Making India a global hub for International Railway Managers
4. Signing agreement on Trans Asian Railways
5. Passenger Amenities
6. World-class railway stations
7. Dial ‘139’ countrywide common telephone no. for train enquiry
8. Dedicated Freight Corridor
9. Production Units meet target
10. Introduction of state-of-the-art EMUs
11. Reaching out to backward areas
12. Setting up of joint venture power plant
13. Coal transportation agreement
14. Technological Upgradation of Telecommunication Systems
15. Highest bonus ever paid to employees
16. Safety and security
17.Excellent achievements in sports
18. World Heritage
19. Allowing sale of reserved tickets through Post Offices
20. Growing world-wide interest in Indian Railways

1. Revenue Generation
The total approximate earnings of Indian Railways on originating basis during 1st April-30th November 2007 were INR 44472.14 crore compared to INR 39669.25 crore during the same period last year, registering an increase of 12.11%. The total goods earnings have gone up from INR 26658.73 crore during April 1st to November 30th 2006 to INR 29754.06 crore during April 1st to November 30th 2007, showing an increase of 11.61 per cent. The total passenger revenue earnings during first eight months of the financial year 2007-08 were INR. 12869.41 crore as compared to INR 11328.74 crore during the same period last year, registering an increase of 13.60%. The revenue earnings from other coaching and sundry amounted to INR 1848.67 crore during April to November 2007 as compared to INR 1681.80 crore during the same period last year, showing an increase of 9.92% YoY.

The total approximate numbers of passengers booked during April to November 2007 were 4430.69 million as compared to 4194.35 million during the same period last year, showing an increase of 5.63%. In the suburban and non suburban sectors, the numbers of passengers booked during April to November 2007 were 2428.49 million and 2002.20 million compared to 2314.17 million and 1880.18 million during the same period last year, an increase of 4.94% and 6.49% respectively.

Indian Railways have carried 501.46 million tonnes of revenue earning freight traffic during April to November 2007. The freight carried shows an increase of 37.07 million tonnes over the freight traffic of 464.39 million tonnes actually carried during the corresponding period last year, reflecting an increase of 7.98%.

The operating ratio in the Indian Railways is amongst the best in the world and has reached the level of 78 per cent.

2. UIC plays active role under IR leadership
In a significant policy move, the180 member strong International Union of Railways, which represents the interest of global rail transport, has confirmed its strategic role in achieving higher quality assurance in all aspects of railway sector at global level under the present leadership. The move will position UIC as a global quality assurance certification agency. This emerged at Executive Board and General Assembly meetings of UIC which were held in Paris on 7th December 2007. The meetings were chaired by Mr KC Jena, Chairman, UIC and Chairman, Railway Board, Indian Railways.

3. Making India a global hub for International Railway Managers
In a historic step towards making India the global hub for International Railway Managers, the foundation stone was laid for the International Railway Strategic Management Institute to be set up in New Delhi. The Institute, an initiative of Indian Railways and International Union of Railways, is planned to be fully operational by the year 2010 with independent infrastructure. The Institute will provide International training facilities in co operation with top most global Business Schools to Railway professionals. This will make India a center for providing trained manpower to Rail Companies across the globe. The Institute under the aegis of International Union of Railways will prepare International Railway managers to meet the future challenges in rail operations.

4. Signing agreement on Trans Asian Railways
In line with the Government’s “Look East Policy” that requires strengthening of rail linkages in the region especially with our South East Asian neighbors, the Government of India has signed the Inter Governmental Agreement on Trans-Asian Railway. The Agreement was signed by Chairman Railway Board, Indian Railways, on behalf of Government of India at UN Headquarters, New York.

5. Passenger Amenities
As the year 2007-08 is being observed as ‘Cleanliness Year’, the Ministry of Railways has taken several initiatives to ensure cleanliness and hygiene at station premises, in passenger trains, railway lines, waiting rooms etc. Indian Railway Catering and Tourism Corporation has taken numerous steps to improve the quality of catering services provided in trains. IRCTC has initiated the process of modernizing the departmental base kitchens at New Delhi, Mumbai and Kolkata. It is proposed to have state-of-the-art equipments and professional manpower for the base kitchens. The licensees have also been directed to upgrade their base kitchens and to obtain International Organization for Standardization and hazard Analysis and Critical Control Points certifications. In the existing base kitchens also, continuous efforts are being made to ensure that the food is prepared under clean and hygienic conditions with standard raw materials. The Hon’ble Court has considered the report submitted by the Committee and appreciated the efforts made by IRCTC to improve the overall quality of catering services.

6. World-class railway stations
In a bid to make Indian Railways the world’s No. 1 Railway network, the Committee on Infrastructure under the Chairmanship of the Prime Minister has approved the proposal to develop New Delhi Railway Station as a world class station before the Commonwealth Games to be held in New Delhi in 2010. The Ministry of Railways has decided to constitute a Core Group for monitoring of Public Private Partnership (PPP) projects related to development of 22 World Class Railway Stations across the country including New Delhi Railway Station. The Committee will set up clear timeframe for each of the 22 railway stations, which will be upgraded to world-class stations.

7. Dial ‘139’ countrywide common telephone no. for train enquiry
In a new Endeavour, to provide new, modern and improved facilities to the passengers, the Indian Railways has introduced the Integrated Train Enquiry System ITES ‘Rail Sampark’ call centre with common telephone number 139. This significant passenger friendly initiative is now available for general public throughout the country. Under this system, the MTNL and BSNL subscribers in the covered area may make a local call at telephone No. 139 (without requiring STD facility) to get basic enquiries pertaining to train journey like arrival/departure of train, status of availability of seats, train fare etc. Highly skilled and trained customer care executives have been deployed at these Call Centres provide 24X7 Customer Care Services. This service will ultimately also be made available to all general public in the country who may subscribe to any telecom service provider irrespective of the type of telecom service (basic, mobile, WLL).In addition to Hindi and English, enquiry services will also be available in regional languages. The work of implementation of Integrated Train Enquiry System (ITES) is based on public-private partnership (PPP model).

8. Dedicated Freight Corridor
Japan International Cooperation Agency (JICA) presented the final study report on Dedicated Freight Corridor (DFC) to the Ministry of Railways. The DFC projects are the flagship projects of Indian Railways and are certainly one of the most ambitious infrastructure projects in the country. The project is vital for the Indian Railways for capacity creation to meet the ever-growing traffic requirements and the implementation of this project requires massive resources and is also a challenge for our engineers in more ways than one. Development of DFC for carrying additional traffic is essential in view of high growth in demand. Railways have proposed a 2700 kilometer long railway line project (Eastern Corridor – 1279 kilometer and Western corridor – 1483 kilometer.) as an augmentation of capacity of Indian Railways network to handle the large increase in volume of traffic expected over the coming years. Cabinet Committee on Economic Affairs has already given approval ‘in principle’ for the projects. Indian Railways have decided to upgrade the entire feeder routes of proposed Dedicated Freight Corridor (DFC) initially for 25 ton axle load and subsequently to 30 ton axle load. Four of these proposed feeder routes falling on Western Railway are Pipavav - Surendranagar – Viramgam – Mahesana, Viramgam – Samkhiali, Kandla Port – Gandhidham – Palanpur and Mundra Port – Gandhidham. The bridges falling on these feeder routes are also required to be upgraded for making them fit for 25/30 ton axle load train operation.

9. Production Units meet target
The production unit of Indian Railways helped set the pace for continuing growth. Chittaranjan Locomotive Works (CLW) produced 97 electric locomotives against the target of 94 electronic locomotives and Diesel Locomotive Works (DLW) produced 137 diesel locomotives against the target of 127 diesel locomotives during first seven months of the fiscal 2007-08 (April-October 2007). Rail Coach Factory (RCF) produced 783 coaches against the target of 778 coaches where as Integral Coach Factory (ICF) produced 668 coaches against the target of 682 coaches during the same period. Rail Wheel Factory (RWF) produced 73755 wheels and 22336 axles against the target of 73072 wheels and 22335 axles during April-October 2007.

10. Introduction of state-of-the-art EMUs
The first prototype AC/DC EMU rake (12 Car) having state-of-the-art technology with microprocessor controlled dual voltage system, specially designed for Mumbai Suburban Area, has been manufactured by Integral Coach Factory, Chennai with the electrics of M/s Siemens. This prototype rake has already been introduced on Western Railway for passenger service on 12.11.2007. With the introduction of this rake, 21 services per day has been increased. Indian Railways plan to introduce 117 such AC/DC EMU rakes in near future. These AC/DC EMU coaches have special features such as Passenger Information and Communication System which will be beneficial for passengers in gaining information about destination of the train, approaching stations and other information similar to Delhi Metro coaches. Forced Ventilation System is also used in these coaches for better passenger comfort. In addition there will be saving of electrical energy as these rakes will be regenerating approx 30% energy during braking.

11. Reaching out to backward areas
In a significant move which will bring about socio-economic development of the backward areas of Bastar region predominantly inhabited by tribal population in Chhattisgarh state and further the industrial progress and mining activities in the region, Indian Railways have taken a momentous step to expand the reach of its network in this backward area meeting the long pending demand of the local populace. In a shining example of Public-Public Partnership, Ministry of Railways, Steel Authority of India Limited (SAIL), National Minerals Development Corporation (NMDC) and State Government of Chhattisgarh have come together to construct a 235 kilometer new broad gauge railway line from DalliRajhara to Jagdalpur via Rowghat in Chhattisgarh.

12. Setting up of joint venture power plant
Railways have added another mile stone by signing a joint venture agreement with National Thermal Power Corporation Ltd. (NTPC) to set up a 1000 MW power plant – Bhartiya Rail Bijlee Company Limited at Nabinagar in Bihar. The Nabinagar power plant, to be built at a cost of INR 5352 crore, will be of 1000 MW capacity and 10% of power from this plant is earmarked to other users. The equity portions of NTPC and Indian Railways will be 74% (INR 1188 crore) and 26% (INR 417 crore) respectively. Indian Railways is thereby expected to save approximately INR 600 crore per annum. The electricity from this plant will be utilized by Indian Railways for running electric trains in Bihar, Jharkhand, West Bengal, Chhattisgarh, Maharashtra, Gujarat and Madhya Pradesh in the eastern and western regions of the country.

13. Coal transportation agreement
In a significant move at facilitating power generation in the country, Indian Railways have signed a Coal Transportation Agreement with Nagarajuna Power Corporation Limited which is setting up a 1015 MW thermal power plant near Padubidri near Udipi in Karnataka on Konkan Railway. The Agreement was signed among Southern Railway, Konkan Railway Corporation Limited and NPCL. Under the agreement, the coal required for the plant will be transported by rail from new Mangalore Port to the plant covering a distance of about 36 kilometers. Coal required for the power plant will be imported at the port. While loading of coal and a small lead of 5 kilometers is in Southern Railway, unloading siding will be in Konkan Railway jurisdiction. Transportation of 2.8 MTPA of coal will be required for the power house. The present agreement is on the lines of the agreement earlier signed with M/s Rosa Power Company Limited.

14. Technological Upgradation of Telecommunication Systems
A total of 29000 RKMs Optical Fibre Cable has been commissioned on Indian Railways. Work of up gradation of OFC network to high bandwidth STM-16 network is in full swing and has already been commissioned on all important routes. Further plans are under way for the provision of very high capacity DWDM network on about 8500 RKMs, the contract for which has already been awarded by Railtel. RailTel have been asked to provide Cyber Cafes at 82 stations on Indian Railways out of which cyber cafes at 24 stations have been commissioned till November 2007. A decision has been taken to install Wi-Fi systems at 50 stations initially as a pilot project by Railtel. This will enable passengers at these stations to make use of Broadband internet facility using their Laptops and other Wi-Fi enabled services. Twenty stations are expected to be made operational by March 2008 and remaining 30 stations will be commissioned in 2008-09. Based on the result of the pilot scheme, the system may be extended to other stations. With a view to improve the disbursal of railway tickets, a large number of ATMs are being installed at various railway stations. Last year, the Ministry of Railways had entered into an agreement with State Bank of India for installation of ATMs at 682 railway stations across the country which was followed up by allowing six more banks to install ATMs at 711 locations. These banks are; Canara Bank, Punjab National Bank, Indian Bank, Dena Bank, Union Bank of India and Bank of Baroda. The Ministry of Railways has asked all these banks to complete the installation of all ATMs by 31st March 2008.

15. Highest bonus ever paid to employees
As a result of the overwhelming performance of the Indian Railways during the financial year 2006-07, the Cabinet has approved the proposal of the Ministry of Railways for payment of Productivity Linked Bonus to the extent of 70 days wages for the financial year 2006-07. Productivity Linked Bonus is based on the productivity indices of the Indian Railways and this is the highest bonus ever paid on the Railways. This payment will benefit approximately 1.33 million non gazetted eligible Railway employees.

16. Safety and security
The number of accidents over the Indian Railways has been witnessing a sustained declining trend over the past several years. In the year 2000-01 the number of accidents stood at 473 which have come down to 195 last year. All possible steps are undertaken on a continuing basis to prevent accidents. These measures include timely replacement of over aged assets, adoption of suitable technologies for up gradation and maintenance of track, rolling stock, signaling and inter-locking systems etc. Anti-Collision Device developed by Konkan Railway Corporation Ltd. has been installed on 1763 route kilometers of Northeast Frontier Railway. Railways have proposed to install about 57000 Anti-Collision Devices (ACDs) over the entire Broad Gauge (BG) Network of Indian Railways by 2014. Railways are under the process of installing CCTV and x-ray machines on railway stations initially at identified 185 sensitive locations across the country for a more effective handling of crime, pilferage and terrorist threats.

17.Excellent achievements in sports
Indian Railways have registered important achievements in the field of sports at International and National levels. During 2007, at International level, in the Asian Athletics Championship held at Amman (Jordan) in July 2007. IR athletes won 2 Gold, 2 Silver and 2 Bronze Medals. In the World Billiards Championship held in Singapore in September 2007, both the finalists i.e. Mr Rupesh Ashwinbhai Shah and Mr Ashok Harishankar Sandilaya were from Indian Railways and Mr Rupesh Shah emerged as the new World Champion. In USIC (Union Sportive Internationale des Cheminots) World Railways Tennis Championship held at Prague (Republic of Czech) in June 2007, Indian Railways team won the championship. In Commonwealth Free Style and Greco Roman Style Wrestling Championship held in Ontario, Canada in June 2007, IR wrestlers won 6 Gold and 4 Silver medals.

At national level too, during 2007 IR sportsperson have won about 50% National Championships including Athletics(M&W), Hockey(W), Boxing(M&W), Cricket(W), Kabaddi (M&W), Volleyball(M&W), Handball(W), Cycling (M) etc.

Besides, during 2007, two IR sports-persons, viz. Jyoti S. Kullu (Hockey) and Shri Vijinder (Boxing) were honoured with “Arjuna Award” and Shri Virender Singh, ex-Hockey Player of IR has also been honored with prestigious “Dhyanchand Award for Lifetime Achievements in Sports and Games”.

18. World Heritage
A proposal to include Kalka – Shimla Railway (KSR) as world heritage site is being considered by UNESCO and a team from International Council on Monuments and Sites (ICOMOS) an organ of UNESCO for cultural heritage sites, inspected the KSR in September, 2007. Based on their report and recommendations, further examination of the application will be done internally by ICOMOS & UNESCO and KSR may come up for consideration to be listed as a World Heritage Site in the next session of the UNESCO World Heritage Committee in Canada in July’2008. Matheran Light Railway has completed 100 years in April 2007 of its existence and is still operational. The construction work for this railway was started in 1904 and the Neral-Matheran section at the foothill of Mumbai-Pune section was opened to traffic in March 1907.

19. Allowing sale of reserved tickets through Post Offices
Another landmark achievement of Indian Railways in 2007 was the step to expand the reach of reserved tickets nearer to the doorsteps of passengers even in remote areas by allowing selling of reserved tickets through Post Offices. A Memorandum of Understating in this regard was signed by the Ministry of Railways and Department of Posts. This is the joint Endeavour of the Ministry of Railways and the Ministry of Communications and IT for the benefit of people especially those who are staying in remote areas to enable them to get reserved tickets from the nearby Post Offices.

20. Growing world-wide interest in Indian Railways
Impressed by the landmark economic success of Indian Railways and growing worldwide interest in its spectacular performance during the past more than three years, a four member delegation led by Mr. Frank Brown, Dean, INSEAD, a leading International Business School, visited the Ministry of Railways. The delegation was given a detailed presentation on the historic ‘turnaround story of Indian Railways’ which has now become a case study for many National and International Business schools. A 30-member team of Civil Servants from Bangladesh, on a study tour of India, called on the Railway Minister to learn more about the significant performance of Indian Railways. A 16-member US Financial Services and Industry Study Group led by Dr. David G. Blair, Professor of Economics, National Defense University, Washington also visited the Ministry of Railways.

Vale could seek coal assets - Analysts

BNamericas reported that Brazilian mining and metals group Vale could seek acquisition opportunities next year, possibly targeting coal assets.

Mr Pedro Galdi, an investment analyst with ABN Amro Real Corretora, told BNamericas that "Vale has stressed that it plans to grow organically and has said it would not rule out a strategic acquisition if an interesting opportunity appears. But the company's recently announced big investment plan for the next five years focuses on organic growth and not acquisitions.”

He said "In my view, Vale could seek an acquisition, but not an asset such as Alcoa, Rio Tinto or Alcan. A company related to coal, for instance, would make sense and could happen. I do not think it would be a large scale purchase.”

Vale plans to invest USD 59 billion for the 2008-12 period in worldwide operations focusing on iron ore, nickel and aluminum projects, among others. Disbursements next year alone are expected to hit USD 11 billion.

US taconite industry expects strong 2008

Minnesota taconite industry officials recently said that 2008 has a promising outlook, a stark contrast from about five years ago, when taconite plants in northeastern Minnesota were forced to close when dozens of domestic steel companies filed for bankruptcy. But consolidation within the industry has made it stronger. A surging worldwide demand for iron ore has also made iron ore properties more valuable.

Mr Craig Pagel president of the Iron Mining Association of Minnesota trade group said “The taconite mining outlook probably has not looked this good in a long time."

Six taconite plants in northeastern Minnesota have said they expect to operate at or beyond designed capacity in 2008. Plant owners are projecting that all six facilities will operate at or beyond designed capacity. The industry will get a boost in the first quarter when Cleveland-Cliffs' Northshore Mining's processing plant in Silver Bay restarts idled lines, adding 800,000 tons to its annual capacity. Production for 2008 is projected to increase to about 38.5 million tons.

Taconite production for 2007 is expected to come in around 37.6 million tons of pellets down slightly from 38.9 million tons in 2006. The decline was due in part to a water freeze up at Hibbing Taconite early this year that shut down the facility for about a month and cost that plant hundreds of thousands of production tons.

7th worker dies from ThyssenKrupp Turin mill fire

The ANSA news agency reported that a seventh steelworker died on Sunday from serious burns sustained in a fire more than three weeks ago at German steelmaker ThyssenKrupp's Turin based mill in northern Italy. He was the last injured worker still undergoing treatment.

The fire was reportedly sparked when a burst pipe spilled oil onto molten steel. Workers reportedly said the plant's fire extinguishers were empty and the emergency telephone was not working.

Prosecutors have opened a probe into the causes of the fire, with workers describing slack safety measures to investigators.

The accident triggered a huge emotional reaction in Italy.

New fuel standards may hurt steelmakers

It is reported that the energy bill that Mr Bush President of America signed recently mandating tougher fuel economy standards sent a simple message to automakers lighten up thus putting steel makers at risk. The new law says the auto industry must raise its fleet wide fuel economy average 40% in the US, to 35 miles per gallon, by 2020. Increased mileage requirements could begin as early as 2011.

The new rules certainly give makers of aluminum, carbon fiber and other lightweight materials something to smile about, though the steel industry's piece of the auto industry pie is likely to shrink. Auto shoppers, meanwhile, can expect to pay a premium at dealerships when the new rules kick in but the impact will be mitigated somewhat by fuel savings.

Today, steel accounts for about 60% of an average vehicle's weight in the US, down from a generation ago when much more of the metal was used. Still, the popularity of trucks, minivans and SUVs has caused the average vehicle weight to rise by more than 25%, to about 4,100 pounds, over the past 20 years, helping steel providers. Even so, the percentage of aluminum in cars has been on the rise for decades since the last boost in fuel economy standards.

A 10% drop in weight yields roughly a 6 percent improvement in fuel economy.

Singapore plans 16 berths at Pasir Panjang Terminal

It is reported that the Maritime and Port Authority of Singapore will build 16 berths at Pasir Panjang Terminal, increasing the terminal's annual handling capacity by 14 million standard containers.
Reports say PSA is likely to be the operator of the 16 new berths

The project, due for completion in 2013, comes in response to increasing global trade which has seen container traffic volumes at the port surge by 12.8% to 23.1 millions TEUs in the first 10 months of 2007.

The new berths are in addition to 13 berths currently being built by the terminal's operator, PSA Singapore Terminals, in another project due for completion in 2009.

PSA Singapore Terminals, which is the flagship terminal of PSA International Pte Ltd, has spent almost USD 3.5 billion on expansion projects at the Pasir Panjang Terminal over the past 10 years. Upon completion, the company is expected to have an annual handling capacity of 35 million containers across its four Singapore terminals.

Contractors battle high cost of building materials

Vietnam Agency reported that the rising cost of building materials is adversely affecting the construction industry in Vietnam. Since the beginning of 2007, the price of most types of building materials-such as steel, cement and enamelled tiles have increased by 20% to 70%.

Small contractors are finding it particularly difficult to cope with rising costs and state projects have been particularly hard hit as they are not permitted to exceed approved costs.

An official from Ha Noi Construction Company No 9 said that many construction contractors had not anticipated the sharp rise in the cost of building materials this year when bidding for contracts

Ms Hoang Thu Hong director of Khanh Hoa Construction and Building Materials Company said that her company stood to lose money on five projects signed when the steel price stood at VND 8 million VND (USD 500 USD) per tonne and which has now nearly doubled. The domestic steel price was recently quoted at VND 13 million.

Metals finance forges ahead with nickel projects

It is reported that Canadian Metals Finance Corp last week announced that it has continued work on the Palabora nickel project in South Africa and the Lucky Break nickel project in Queensland.

Metal Finance said that "The company has placed orders for all major equipment items required for the Palabora project and installation will commence early in the New Year, enabling projected commissioning of the project in line with the timeline outline in the company's prospectus.”

Metals Finance listed on the Australian Stock Exchange on December 20th 2007 at an offer price of 50 cents per share. The funds raised from the IPO and cash at bank will be used to progress the development of the projects.

It is an international Canadian company providing project implementation and funding for the development of metal recovery projects. The company has two nickel projects targeted to be in production in 2008, these are Palabora in South Africa and Lucky Break in Queensland.

Details of South Korean import of ferroalloys in 9 months of 2007

It is reported that South Korea's import of ferroalloy during January to September 2007 has surged across all items except for LC ferrochrome and ferronickel

The details are as under

In tonnes
Change is YoY

Japan exports 89,000 tonnes of section steel in October

Yieh reported that Japan exported 89,061 tonnes of section steel in October and that the average export price in October was USD 698.7 per tonne on FOB basis.

Volume in tonnes
Price in USD per tonne on FOB basis

Japan has exported 852,454 tonnes of section steel in the first ten months.

Cronifer to rename itself and expand warehouse

Yieh reported that Dutch based German stainless steel scrap processor, Cronifer will be changed its name as Cronimet (Holland) BV since the beginning of the Year 2008.

Also, Cronimet's warehouse in Moerdijk will be expanded in order to be more accessible for export to Asia markets.

With the location in port area, Cronimet is both available for ocean going vessels and inland waterway vessel shipment.

Japanese SS output in November up by 5.4% MoM

It is reported that Japanese stainless steel output at the main 7 steelmakers in November was 486,600 tonnes up by 5.4% MoM.

As per report, Japanese SS output during January to November has increased by 2.2% YoY.

Rebar users in Saudi Arab call for steady supply

Arab News reported that building contractors, real estate investors and consumers in Saudi Arab have accused accredited distributors of price manipulation by artificially creating scarcity of supply with the intention of raising the retail prices of rebar.

The contractors and investors cautioned that the increase in steel prices would not only damage the real estate sector and the collateral sectors, but also threaten government’s plan to revive the real estate market and provide housing for every citizen. They were calling for quick intervention of the Ministry of Trade and Industry to halt such abuses.

Moreover, the contractors said the situation would cause dispute between companies and owners of major projects or private housing because of the steel prices variation from the signing of the construction contracts and the present reality.

Price of rebar has gone up in the Saudi Arab amid a booming construction industry, with distributors claiming that the rise was aggravated by a marked increase in demand in China and East Asia. The Arabic daily Al-Riyadh reported recently that the price of one tonne of rebar is now SAR 250.

The Saudi government had reduced customs duty to 5% from 20% on its imports of steel to limit the rise in prices. However, this has not led to an improvement in prices, the daily reported, as the local market depends heavily on national factories.

Rebar production in Egypt up by 7% YoY

Al Alam Al Yom reported that rebar production in Egypt has increased from 781,000 tonnes to 836,000 tonnes during the same period with a growth rate of 7% and sales increased with a growth rate of 38%.

Mr Osman Mohamed Osman Economic Development Minister of Egypt asserted that there is a rapid growth in the industrial production whereas the growth rate reached 7.5% in the first quarter this year of the fiscal year 2007-2008, Pointing that the industrial production hit EGP 74.4 billion this quarter compared against EGP 69.2 billion during the same comparable period of the previous fiscal year.

He added that there is consistent expansion in the production and sales of cement and steel rebar.

Egypt to finalize auction for the new steel mills licenses soon

Al Youm reported that Mr. Amr Assal headof Industrial Development Authority of Egypt recently announced that the criteria & timing of the public auction for the new steel mills licenses, so far postponed for more than 3 times, are to be soon determined indicating