TATA Steel reported a 60.4% gain in net profit for the April to June quarter, egged on by revenues of its Anglo Dutch subsidiary Corus Group.

Its consolidated profit during the quarter stood at INR 3,914.6 crore as compared to INR 2,409.1 crore during the same period last year. Its revenue during the quarter went up by 39.6% to INR 43,508 crore from INR 31,162 crore.

While Tata Steel’s profits from domestic operations have been hampered by price controls levied by the government, Corus has benefited on account of higher prices and increase in production of high grade steel.

Mr Ratan Tata chairman of TATA Steel admitted that rising raw material costs may lead to a recession in the industry. The company's raw material consumption during the quarter grew by almost 58% from INR 7,443 crore to INR 11,749 crore.

After registering stability for 2 days, domestic steel prices have again started to dip yesterday

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TATA Steel has outlined the raw material cost pressure on the prices of finished steel during its recent AGM.

Mr Ratan Tata chairman of Tata Steel said that in the immediate future, steel pries will be dictated by the level of iron ore and coking coal prices, which have risen 85% and 200% in the last one year.

He said that while TATA Steel Jamshedpur is self sufficient in iron ore, it has sought mining leases to support its Greenfield projects in Orissa, Chhattisgarh and Jharkhand. He added that “The company would also have to invest in or enter into contracts with mining companies to source iron ore and coking coal for Corus operations in the UK and the Netherlands.”

It is reported that Steel major Steel Authority of India Limited became the first company in India to utilize the freight operations information system devised by the Indian Railways to monitor the movement of its incoming and outgoing rail freight traffic.

The web enabled system, which was developed and customized for SAIL by the Centre for Railway Information Systems was formally launched by Mr VK Gulati director technical of SAIL and was put in operational use for all SAIL plants and units simultaneously.

The new system would provide on line information about incoming raw material wagon and trains starting from the loading points to destinations and movement of finished products from steel plants to stockyards and customers.

A step forward in logistics management, the system would improve the synergy between the loading and receiving points by providing real time information to users. The system would provide information about the loading details of the entire incoming and outbound freight trains from and to the SAIL’s steel plants and units.

Mr B Muthuraman MD of TATA Steel said the prices of steel would remain flat though there could be little bit of softening.

Mr Muthuraman on the sidelines of the company's 101st Annual General Meeting told reporters that "The price will remain around the same level, though there could be a little bit of softening.’

PTI reported that the West Bengal government on Thursday granted SEZ status to JSW Bengal Steel. Mr Sabyasachi Sen Industry Secretary of WB told reporters here that the SEZ status was approved at meeting of the state cabinet.

Mr Sen said that “JSW Bengal Steel had sought SEZ status for making the plant viable since the project would involve import of iron ore from Chile and coal from South Africa or any other African nation. Since the plant would depend on import of key raw materials, the company would have to pay various duties.”

Mr Sen said that the state government would soon forward the cabinet's decision to the Centre.

The state government had stipulated that the company would have to supply its products in the local market since any company enjoying SEZ status had the right to export all its products, subject to a minimum of 30%.

Reuters reported that the finance ministry's chief economic adviser cited India's economy is likely to grow in the range of 7.75% to 8.75% in the fiscal year which ends in March 2009.

Mr Arvind Virmani in a presentation to economic advisers in various ministries said that the inflation rate would return to normal levels in a year's time but did not give any figures. He said that the short term outlook for inflation would depend on the behavior of global crude oil prices.

Mr Virmani said that the economy is likely increase between 8% and 9% this fiscal year. Monetary tightening to cool double digit inflation is expected to moderate growth.

Earlier this month, Dr Manmohan Singh's PM India Economic Advisory Council estimated the economy would grow by 7.7% in the year to the end of March 2009 below a forecast from the central bank of 8.0%.

Mr Palaniappan Chidambaram Finance Minister said that he expects the economy to grow close to 8.0% and most think tanks expect growth in the 7.0% to 8.0% range.

PTI reported that the ongoing tussle between TATA Steel and environment Group Greenpeace on had its echo at the venue for company's Annual General Meeting.

As per report, 10 Greenpeace members, holding a share each, entered the auditorium by virtue of being shareholders of the company. A few of them raised questions, only on the Dhamra Port issue and were booed and shouted down by other shareholders.

The report added that Mr Ratan Tata assured the protestors that he would arrange a meeting between them and TATA Steel Managing Director Mr B Muthuraman on September 10th 2008 to discuss issues raised by them.

Greenpeace, which has been protesting against the construction of the Dhamra Port in Orissa, had been recently directed by the Bombay High Court to hold silent and peaceful demonstrations near the venue AGM.

It is reported that, out of the 36 nominations that were sent from TATA Steel to Ministry of Labor and Employment, Government of India, 8 employees of TATA Steel have been selected for the Prime Minister’s Shram Awards for the year 2006.

The government of India will award them with a citation and a cash prize of INR 100,000 for Shram Bhushan, INR 60,000 for Shram Vir and INR 40,000 for Shram Shree at a function in New Delhi, wherein the awardees will be given the award by the Prime Minister of India.

TATA Steel will also felicitate the award winners with an addition award of INR 80,000 each in the next Annual Suggestion Awards Function that will be presided over by Mr B Muthuraman MD of TATA Steel.

A total of 32 awards, including 4 Shram Bhushan, 12 Shram Vir and 16 Shram Shree, are given by the Government of India every year. Out of these, 16 awards are for public sector companies and the remaining 16 are for private sector companies.

BL reported that Rashtriya Ispat Nigam Limited has consolidated its position by achieving an all time high turnover of INR 10,433 crore during 2007-08. The company earned a net profit of INR 1,942.74 crores for the year under review.

Mr PK Bishnoi CMD of RINL during the annual general meeting told the shareholders said that the year passed off satisfactorily with consolidation of its position further.

Mr Bishnoi said that the company RINL expansion would be completed by 2010-11 and orders worth INR 8,939 crores were placed by March 31st 2008 and that it has sufficient resources to fund the expansion launched by Dr Manhohan Singh PM of India last year.

The project to expand the capacity of the steel plant from 3.6 million tonnes to 6.3 million tonnes liquid steel is under implementation and majors works like repairs, revamps and modernization relating to existing blast furnace, steel melt shop, sinter plant and mills are planned to be carried out as per schedules drawn from now till 2011.

While the company earned profits consecutively for the 6 year since 2002-03, it also continued its role as a responsible corporate citizen by focusing on community welfare schemes. It spent INR 13.72 crores, a 10 fold increase over previous year.

Mr Bishnoi said that RINL collective was the key to the company’s success and the company had evolved suitable human resources development initiatives for multi skilled training and constant learning.

He said that linkages for raw material security were being explored. As part of the corporate plan for 2020, the capacity of the plant would be enhanced to 16 million tonnes.

Amidst the currently prevailing volatile and speculative steel price scenario in India, SteelGuru.com has started the much needed barometer to track and measure the price movements on daily basis.

Steel prices being an issue at the forefront in the context of inflation, drawing significant government attention, making up for about 4 per cent in the Wholesale Price Index(WPI), has been media's most favorite and hot topic at the moment. Unfortunately, the facts are misrepresented very often due to complexity in the structure and the dynamics of the steel market, leaving the users of the information mostly in a state of confusion.

In order to provide an index for steel prices, we call it SENSEX for steel, SteelGuru.com decided to work on both long products and flat products for respective category indices as also a composite one for steel. We call them LPPI, FPPI and SPI and have started releasing these indices with effect from July 1st 2008, after taking June 30th 2008 as base.

LPPI is based on daily market prices of three benchmark products rebars, wire rod and sections in 4 metros, whereas FPPI is based on HRC, plates, CR and HDG. These indices have been built considering their respective weights in the composite categories as also in the shares of sales in the regional markets.

The pricing input is from www.steelprices-india.com, which publishes market transaction prices of benchmark products among select locations 5 days a week.

These price indices outline the way domestic steel market is moving day by day and will help producers, agents in the supply chain, steel buyers, bankers and analysts in their respective businesses.

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BL reported that the cement industry’s plans to add 110 million tonnes of capacity with a total outlay of INR 50,000 crore by financial year 2010 is likely to be delayed due to constraints in sourcing equipment and non availability skilled labor.

In financial year 2007-08, the industry added a record 30 million tonnes taking the total capacity to 200 million tonnes. The cement companies will add about 25 million tonnes to 30 million tonnes in FY 2009 and another 25 million tonnes are expected to be added in FY 2010.

Mr KC Birla senior executive president & CFO of UltraTech Cement said that “Thus, of the total 110 million tonnes planned 25 million tonnes to 30 million tonnes will flow only in FY 2011.”

Mr Birla said that the scarcity of skilled labor is also likely to delay projects planned by the industry.

The major equipment suppliers for cement plants in India include China based Nangtong Heavy Machinery Company, FLSmidth & Company of Denmark and Polysius AG a group company of ThyssenKrupp Technologies.

An analyst said that the possible delay in capacity addition is not expected to push up the retail prices as the demand has slowed down considerably in select regions, especially in the North and Eastern regions. In Gujarat prices have dropped by INR 5 to INR10 a 50 kilogram bag due to over supply forcing companies to divert their produce to Mumbai. The lull in realty sector due to sharp rise in cost of funds has adversely impacted demand for cement.

It is reported that NTPC Limited's upcoming 2x490 MW Dadri coal fired project in Uttar Pradesh is on track and expected to commission on schedule. The 2 units will be commissioned by September 2009 and January 2010, respectively.

The Dadri project is amongst those power plants meant for supplying power to the ensuing Commonwealth Games in 2010. Around 90% power generated at Dadri will go to Delhi. Bharat Heavy Electricals Limited is the main plant supplier.

At Dadri, NTPC already has 980 MW coal fired capacity from 4 units of 210 MW each, commissioned between October 1991 and March 1994. It also has 829 MW of gas based capacity that is currently operating at suboptimal PLF levels due to fuel shortages.

It is reported that Karnataka has invited TATA group chairman Mr Ratan Tata to relocate the Nano small car project to the state.

Mr Shobha Karandlaje cabinet spokesperson & rural development minister said that "The Karnataka government is ready to allot 50 acres of land adjacent to the 900 acres already given to the TATAs in Dharwad."

The TATA group's Dharwad facility in north Karnataka has been in operation for a decade. Karnataka is the latest to offer land for the Nano project after Mr Ratan TATA's statement that the group may shut the newly set up facility at Singur in West Bengal if the agitation over land acquisition continues there.

With this, Karnataka joins Gujarat, Maharashtra, Orissa, Punjab, Uttaranchal, Madhya Pradesh, Andhra Pradesh and Haryana etc in trying to get the prestigious INR 15 billion project.

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Project monitor reported that Chennai based PVP Ventures Limited is planning to invest INR 4,000 crore as its share of investment in setting up 8,000 MW new power capacity that is likely to come up in the next 5 to 7 years.

As the first step, the company would be merging Hyderabad based Malaxmi Energy Ventures Limited to form a new company PVP Malaxmi Energy Ventures Limited that would be developing the power portfolio. With this merger, Mr Prasad V Potluri founder & CEO of PVP Group will be diversifying into the power sector with real estate development currently being the group's main line of business.

Malaxmi Energy Ventures, promoted by Malaxmi Group headed by Mr Y Harish Chandra Prasad has equity stakes in 2 power projects, 50% in Navabharat Power Private Limited and 26% in Simhapuri Energy Private Limited. Both the projects are under implementation.

Navabharat Power is a special purpose vehicle promoted by Malaxmi and Navabharat Ventures which is setting up a 2,250 MW coal based power project in Dhenkanal dstrict, Orissa. It has been allotted coal linkages and coal blocks.

Simhapuri Energy is a JV between Malaxmi and Madhucon Projects for a 540 MW power project at Krishnapatnam in Nellore district of Andhra Pradesh. The first phase comprising two units of 135 MW each are expected to come up by 2010 end. The EPC contract for the project was placed on Madhucon Projects last month which incidentally is its first power contract in the power sector.

It is reported that Oil & Natural Gas Corporation and Shipping Corporation of India are firming up the equity structure for a JV company for providing offshore services.

As per report, both the companies had entered into a MoU for setting up a JV company, Offshore Marine Services Limited in 2006, but the project was put on backburner. SCI was to provide end to end solutions for vessel operations for ONGC and other oil and gas companies.

According to the MoU, ONGC will offer its vessels on bare boat charter agreement to the JV company and will retain right of first refusal on deployment of these vessels according to requirement. The JV company will acquire, own, maintain, operate and charter a wide range of offshore vessels and it will also be free to secure non ONGC businesses including acquiring vessels and other assets. ONGC will also have the option to acquire new vessels and put them in the JV company on similar agreement.
Additionally, it will also get into acquisition, repair and maintenance of offshore floating units, apart from undertaking repair and construction, on long term arrangement with shipyard facilities on preferential terms and competitive basis.

Exim News Service reported that Port users here will get uninterrupted power supply once the 110 kV sub station is commissioned at Willingdon Island within a few days.

Mr N Ramachandran chairman of Cochin Port Trust said that the power supply infrastructure had been overhauled and upgraded to the existing supply of 110 kV sub station by replacement of all underground cables. He revealed that Siemens India Limited had carried out this task at the Port at a cost of INR 18 crore.

As per report, CoPT was till now spending huge amounts during power interruptions by running generators in order to carry out smooth cargo handling operations at the Port.

However, frequent switchovers from regular power supply to generators had created problems for cargo handling equipment and other electronic gadgets because of the voltage fluctuations.

It is reported that Maharashtra government is arranging a loan of INR 300 crore for Ratnagiri Gas & Power to enable the company to purchase spare parts and double its power generation capacity to 1,300 MW by December 2008.

As per the report, Power Finance Corporation will finance the loan based on guarantees from the Maharashtra government. RGPPL plans to raise its production capacity from 640 MW to about 1,300 MW by December. Thus the additional power will bring down the state's power shortage which currently stands at 4,000 MW to 4,500 MW.

The report added that 3 major gas turbines which were revived in April 2006 after the takeover of the Dabhol plant are lying defunct due to the unavailability of spare parts from the supplier, General Electric.

It is reported that 3 companies namely Sapphire Industrial Infrastructure in New Delhi, RPP Constructions, Erode and Numeric Power Systems in Chennai have submitted bids to set up solar photovoltaic power generation projects in Tamil Nadu.

As per report, the companies have submitted their bids in response to the tender floated by the Tamil Nadu Energy Development Agency under a program by the Union Ministry of New & Renewable Energy to promote solar power generation. The financial bids are currently under evaluation.

The report added that Sapphire Industrial a special purpose vehicle promoted by the Moser Baer Group has submitted a proposal to put up a 5 MW project in Sivagangai taluka. The project to spread over 25 acres of land will be based on crystalline, thin film photovoltaic modules and envisages generation of over 7.5 million units of electricity a year.

The report further added that RPP Constructions is a technical collaboration with Sun Technics Energy Systems, a subsidiary of Sun Technics GmbH, Germany has submitted a proposal to set up a 2 MW facility in Tuticorin and plans to generate over 3.23 million units of electricity annually.

Meanwhile, Numeric Power Systems has submitted a bid to put up a 1 MW solar power generation facility at Erode district, to generate over 1.7 million units a year. This company plans to use amorphous silicon thin film technology. These facilities will have to be commissioned before December 31st 2009.

BL reported that Reliance Industries INR 5,000 crore Rewas Port project, which is expected to give the vital sea link to its proposed mega Mumbai SEZ, is yet to kick off as the company is still waiting to get possession of the land allocated by the Maharashtra Government.

As of now, the first phase of the project, which was scheduled for completion by 2010 is likely to be delayed by more than a year, while the cost over run may exceed INR 1,000 crore. The project is crucial for Reliance as its SEZ project is linked to the proposed port. Incidentally, the SEZ project itself has hit a roadblock due to land related hurdles.

In what is yet another instance of a mega project landing into problems due to land related issue, Reliance is neither able to float tenders for the massive dredging work required nor conclude talks with financial institutions to tie up the funds.

RIL has been ready to float tenders for what is said to be India’s largest dredging project, but is unable to take the first step as it has not yet got the 1,000 hectares of land required for development in its possession. The land has already been notified, but is yet to be transferred to the port company.

An official with the Maharashtra Maritime Board confirmed that the land notified for the project by the State Government is yet to be transferred to the port company. The project is being developed in 3 phases. The first phase, costing about INR 5,114 crore involves 10 berths with a capacity of 55 million tonnes. After the completion of the 3 phases, the port will have 70 berths with a capacity to handle 457 million tonnes.

According to the original schedule, the bidding process for the dredging work was to have been completed by 2007 end so that the successful bidder could begin the work from January 2008. But, the company is yet to float the global tenders, even though, sources said, Reliance had been in touch with leading international dredging houses to keep them informed of the developments. It is feared that further delay of the dredging project could prompt dredging companies to shift their dredgers elsewhere, as the present dredging market is marked by shortage of dredgers.

Rewas Port which is 65% owned by various investment companies of Reliance Industries, 24% by Amma Lines and 11% by Maharashtra Maritime Board is building an all weather deep draught port, 10 kilometer south of Jawaharlal Nehru Port. The report added that the first phase of the project involves dredging of over 120 million cubic meters in the Amba river at Rewas at an estimated cost of INR 1,800 crore this is claimed to be even bigger than the Sethusamudram ship channel project. The port will have a draught of 14.5 million to start with which will be increased to 20 million in a phased manner.

Project monitor reported that Indian Rare Earths Limited, a Central PSU under the department of atomic energy, is seeking developers for a new 10,000 tonne per annum titanium sponge plant in Orissa.

The new plant to be set up on build own operate basis, the plant is proposed to come up at the Orissa Sands Complex in Ganjam district. IREL already has mining and mineral separation facilities at Oscom with a capacity to produce 0.22 million tonnes of ilmenite per year. Ilmenite also known as iron titanium oxide is the principal raw material for producing titanium.

IREL is now seeking developers for an OR grade titanium sponge plant for which the PSU is willing extend support. According to a communication issued by IREL, the company could provide 100 acres of land to the developer on a 20 year lease. IREL could also make available up to 7 MW of power and its existing railway siding for movement of raw material and finished products. IREL also consents to sub lease the mining lease in North Sector-2 area that hold in place reserves of 7 million tonnes of ilmenite. It is also willing to supply OR grade ilmenite for conversion into titanium sponge.

IREL intends to have the project developed in a time bound basis. The developer will have to complete the erection, testing and commissioning of the plant within 60 months from the time of signing the agreement and the first production of 5,000 tonnes will have to be attained within 72 months from the agreement signing date. The successful developer, according to the IREL communication, would also need to hand over a certain percentage of sponge production to IREL free of cost as royalty.

BS reported that steel pipes maker PSL has completed acquisition of about 250 acres of land for its proposed special economic zone near Pipavav in Gujarat. The land purchase may bring the company closer to getting a government approval for the project.

PSL plans to diversify its business into alternative energy, through a single product SEZ in Gujarat, which will require an initial investment of about INR 150 crore.

Mr Ashok Punj MD of PSL said that “We are planning to apply for the second or the final approval.”

He added that in the initial stage, the company plans to build the basic infrastructure for the units. The SEZ will have multiple bio-diesel units. Punj, however, did not divulge details about the funds the company plans to raise for the project.

He said that in view of higher demand from oil and gas companies, PSL expects its sales to grow by at least 35% in 2008 from INR 2,248 crore in 2007.

It is reported that China Harbor Engineering Co has joined the race for USD 1.3 billion dredging works at Rewas Port as a prospective bidder. Some major international dredging contractors such as Van Oord, Boskalis, International Seaport Dredging and Jan De Nul have already evinced interest in the project.

However, it is not clear if Rewas Port will be able to float the global tender as the project is hit by various problems including the acquisition of land. The port is being built over 4,000 hactare of land.

Rewas Port, bought by the Reliance group from Amma Lines two years ago, has a 50 year BOT license from the state government to build and operate the port. While Reliance group companies, including Reliance Logistics and Jai Corporation own 65% in the project, Maharashtra Maritime Board owns 11% and the initial promoters, Amma Lines, the remaining 24%.

According to the initial plans, the bidding process was to be completed by end 2007. The dredging was to begin by January 2008 and complete in next 30 months. Rewas Port plans to dredge the port and channel and also to reclaim the 800 hectare of low lying land by filling in with the dredged material.

The Hindu reported that the Andhra Pradesh state cabinet has approved a INR 5,000 crore proposal to set up a 2000 MW pit head thermal power plant on 2,000 acres of land at Godhna in Chhattisgarh.

Ms Raj Shobha Karandlaje Minister for Rural Development & Panchayat said that AP would sign a MoU with the Chhattisgarh Government soon after CM Mr BS Yeddyurappa’s return from US next week. She said the plant will come up at Godhna, 170 kilometer from Raipur.

Ms Karandlaje said that Chhattisgarh, which is presently enjoying a power surplus situation with a total installed capacity of 2,600 MW, is unlikely to exercise its option of buying its entitlement of 30% power over 20 years at tariff fixed by the Central Energy Regulatory Commission.

Mr K Jairaj Energy Department Principal Secretary said that the Government would submit a detailed project report within 60 days of signing the MoU. The project is expected to be commission by 2012 if everything went according to plan.

A note circulated by the Energy Department stated that Karnataka would be able to get 56.5% additional power and could save INR 1,118 crore a year while Chhattisgarh would get 5% to 35% of power. In addition, Karnataka will have the advantage of avoiding land acquisition and rehabilitation as also heavy transportation costs of coal if the project was to be established in the State.

Exim News Service cited Shipping companies are reportedly considering new ways to raise funds to replace their ageing vessels. The sector needs INR 80,000 crore by 2012 to acquire new buildings.

As per report, the shipping companies propose to form a trust a new finance drawing set up similar to that being tried in Germany. This alternative source of funding was recommended recently by ICICI Bank, after a high level meeting between its Mr K Kamath MD and representatives of several shipping companies in 2007.

The shipping trust which is very popular in Singapore has the character of both debt and equity. The trust can be set up by a sponsor company which would raise a combination of equity and debt to purchase vessels. These vessels are given on charter to shipping companies. The operating cash flow received by way of charter income is distributed as dividend to investors and unit holders. These units can even be traded in the Singapore Stock Exchange and the income received by the trust and its unit holders are exempt from income tax at least in Singapore.

Mr S Hajara chairman & MD of Shipping Corporation of India said that "Although 100% foreign direct investment has been permitted in the shipping sector, so far it has not resulted in any worthwhile investment on acquisition of ships."

Shipping company officials said that this would help them reduce the burden on their balance sheets, as they don’t have to incur heavy capital expenditure in acquiring vessels. These proposals are currently being evaluated by the Indian National Shipowners’ Association which will submit its final recommendations to the Shipping Ministry shortly.

Shipping companies are finding it difficult to raise funds to expand their fleet. This has necessitated the need for an alternative tool of financing that will, at the same time, provide investors adequate incentives and concessions. Meanwhile, the country’s shipping companies have to dismantle about 44% of their aged vessels as per the International Maritime Organization regulations.

Exim News Service reported that Special Economic Zones can help India become a global manufacturing hub and hence the Union government should provide a hassle free regulatory and fiscal environment to entrepreneurs.

The report observes that "India must aim to become a global manufacturing hub. Government policies must support this and tax policy must incentivise this. More so since the myriad hassles to set up and do business in India is a big disincentive."

It stressed that SEZs clearly provided an answer for India to attract global manufacturing companies, since the private sector has been incentivised to expend large amounts to develop world class industrial and social infrastructure in the zones.

The report stated that "If we want to make India a global manufacturing hub, we need to improve the environment for manufacturing. Given the current political and economic set up improving conditions nationwide for manufacturing will be difficult."

The report further added that it would be a better strategy for India to create the enabling environment in pockets through SEZs, with high quality infrastructure, a liberal and supportive business policy environment, providing the necessary push which the manufacturing sector urgently requires.

It is reported Indian ministry of power have been appointed five new non official part time directors on board of NTPC for a period of three years.

1. Mr MN Buch former secretary of government of India
2. Mr Shanti Narain former member of Railway Board
3. Mr PK Sengupta former CMD of Coal India Ltd
4. Mr K Dharamrajan former DG of Indian Institute of Foreign Trade
5. Dr Govinda Rao Marapalli Director of National Institute of Public Finance and Policy

As a result of appointment of five new independent Directors, the Board of Director of NTPC now comprises six functional Directors and two Govt nominees and nine independent Directors. The composition of NTPC Board is now in line with the provision of clause 49 of the Listing Agreement executed with the Stock Exchange by NTPC Limited.

Mr PP Wijesekera additional general manager of Sri Lanka Railways said that Sri Lanka's long neglected railway system is a useful complement to roads and could take bulk freight transport off the roads, reducing traffic jams.

Mr Wijesekera added that "For taking containers to and from Colombo port, there's no other solution than railway. If not, you have to go on the narrow roads of Colombo city which will be at enormous cost as it will increase the traffic congestion. It is also the easiest and most sensible way of transporting petroleum products as almost all petroleum storage terminals are located near the tracks."

He said that railway also has potential to feed material such as bulk freight like cement and flour from the eastern port of Trincomalee to the rest of the country. It would be the most sensible way of transport coal from ports to power plants being built or planned.

However, he said that, to make the best use of rail, railway station stations should be set up in a manner that suits the mode of transport. He added that "We should not locate railway stations according to the wishes of politicians. They should be at a reasonable distant to cater to the bulk transport requirements of rail."

Mr Wijesekera further added that Sri Lanka has 1,450 kilometer of rail track left today as some lines had been abandoned owing to the ethnic war and other reasons. Several projects were being implemented to upgrade and expand the system. These include new rail lines from southern Matara to Kataragama, further south.

It is reported that Ruias promoted Essar Steel on Thursday cited the company has introduced loyalty cards for its regular retail customers.

Essar Steel in a statement said that the loyalty cards, branded as 24 Carat Bandhan would entitle some privileges and benefits to the customers, who are regular visitors to Essar Steel Hypermarts, the company's chain of steel retail outlets. It added that the card holders would be eligible for need-based credit facility on their steel purchases through tie ups with banks and financial institutions.

Essar Steel Hypermart has a network of over 80 outlets selling hot rolled, cold rolled and galvanized steel products in various sizes to small and medium scale enterprises across the country.

Company said that sales from the hypermarts account for 15% to 20% in the annual revenues of the Essar Steel. It added that Essar Steel which has a current capacity of 4.6 million tonnes per annum plans to open more outlets across the country.

The Mint newspaper reported that a unit of TATA Steel Limited is in talks to raise at least USD 1 billion from a stake sale to private equity firms or a private placement of shares.

The paper said that citing a transaction adviser with an investment bank familiar with the development, it added that the private equity deal could be for an 8% 10% stake in TATA Steel Global Holdings.

TATA Steel Limited recently said that it had moved its overseas assets including its Corus unit, to the global holdings unit that will be its vehicle for global expansion as well as to raise funds for overseas acquisitions of steel makers and mines.

TATA Steel earlier this month said that the enterprise book value of the Singapore based holding firm was more than USD 13 billion and that the size and method of fund raising had not been finalized.

The paper said that a second investment banker confirmed that TATA Steel was in discussions with private equity firms and some other large funds.

A spokesman for TATA Steel declined comment on the report. TATA Steel has access to just a 5th of its iron ore needs and 15% of their coal requirements from their own fields, Citigroup estimates.

It is reported that Mr Thiru TR Baalu union minister of shipping, road transport and highways has approved a sum of INR 217.680 million for road improvement works in 2 stretches of historical Dandi Route in the state of Gujarat.

As per release, an amount of INR 142.891 million has been approved for strengthening and carrying out repair works at stretches on Boriavi Jn.-Boriavi-Anand-Borsad from kilometer 78/580 to kilometer 104/940 of National Highway 228 in Gujarat.

The Minister also approved a sum of INR 74.789 million for strengthening of Digas-Patiya-Mangrol-Kalam-Rohit-Valner-Rayma road from kilometer 260/600 to kilometer 266/400 on the same highway.

The historical Sabarmati Ashram Ahmedabad-Dandi Route is an important National Highway upgraded in 2006 and it passes through Ahmedabad, Kheda, Anand, Bharuch, Surat and Navsari Districts. This route is considered as Heritage route and the Union Government proposes to develop and improve this historical road from Ahmedabad to Dandi to 2 lane with paved shoulders.

The release added that overall pavement surface of the above 2 sections is uneven, rough in places with cracks and potholes and pavement has totally lost its shape. Potholes and worn out surface leads to uncomfortable driving and accidents. Therefore, it has been considered necessary to carry out necessary repair works.

It is reported that Hero Electric a wholly owned subsidiary of Hero Group is planning to set up 2,000 recharging stations for electric vehicles by end March 2009. These stations will be called Hero Electric Preferred Garage Owners.

Hero Electric said that in the first phase the company will install charging stations in conjunction with garage owners across the capital city. Thereafter, it will set up charging stations in several places like parking lots, malls and schools across the country to help develop the transportation infrastructure needed to support electric vehicles.

As per report, the company also plans to bring in an electric passenger car in the country by 2013, besides introducing battery driven 3 wheelers which will be manufactured at its existing Ludhiana plant. To gain technology for the electric 4 wheeler, Hero Electric is looking to acquire foreign companies.

It is reported that shri Harbans Lal Bajaj and shri AA Khan have been appointed as technical members of Appellate Tribunal for Electricity, APTEL and administered Oath of Office and Secrecy by Union Minister of Power Shri Sushilkumar Shinde in New Delhi.

In terms of Section 110 of the Electricity Acts the Central Government has established an Appellate Tribunal for Electricity to hear appeals against the orders of the adjudicating officer or the appropriate Commission under this Act. The composition of the Tribunal as defined under Section 112 of the Act is to consist of a chairperson and 3 members out of which one member has to be a judicial member and the other 2 are to be the technical members.

It is reported that Sterlite Technologies bagged orders worth INR 278 crore from four companies for supplying power transmission conductors.

As per report, the 4 orders are from domestic and overseas companies including Power Grid Corporation of India, Jaypee Powergrid, Rajasthan Rajya Vidyut Prasaran Nigam and Ethiopian Electric Power Corporation. The power conductors will be supplied between September 2008 to December 2009

It is reported that Putzmeister Concrete Machines a wholly owned subsidiary of Putzmeister GmbH plans to invest INR 500 crore in its India operations in five phases.

As per report, the company has already invested INR 64.5 crore in the first phase and has begun the second phase with an investment of INR 125 crore. All the 5 phases of the plant will be completed by 2012.

It is reported that HPCL Mittal Energy is planning to set up a single point mooring at Mundra with an estimated investment of INR 650 crore.

As per report, the company has approached Gujarat Maritime Board for necessary clearances for the project. HMEL has identified land at Luni region in east of Mundra for the project.

Reuters reported that General Motors Corporation cited it would invest more than USD 200 million initially in a powertrain plant in India, as the troubled carmaker aims to double its share of a fast growing but increasingly competitive market.

General Motors in a statement said that the facility that will be located at Talegaon in western Maharashtra state, at the site of GM's second vehicle plant will have an annual capacity of 160,000 units which can be expanded to 300,000 units. It said that the engine plant was expected to be completed in the Q1 of 2010.

General Motors which makes the Chevrolet-badged Tavera, Optra, Aveo and Spark will have a capacity to make 140,000 vehicles in the new Talegaon plant that is scheduled to start operations next week, taking its all India capacity to more than 225,000 units.

Reuters quoted Mr SK Chaturvedi chairman & MD of Power Grid Corporation Limited as saying that Power Grid Corporation Limited will spend INR 550 billion in the next 5 years to increase capacity.

Mr Chaturvedi said that the investment will increase inter regional transmission capacity from 17,000 MW to 37,000 MW. He said that the company is also looking at joint ventures to increase its presence in the Middle East and Africa. He added that the company will sign a USD 400 million loan from the World Bank by next week and then will go for a USD 200 million loan from the Asian Development Bank by the end of September.

Goa Energy Development Agency has announced that it plans to set up modern renewable energy park at Margao in north Goa.

A GEDA official told Project monitor that "This will be the first of its kind and will be a demonstration park. The project cost of INR 4 crore will be shared equally by the Centre and the state government.”

The official said that the park will showcase devices that are operated by solar and wind energy and a facility to treat organic garbage. The project is also expected to increase the level of awareness of renewable energy sources in Goa. With likely to begin soon, the project is scheduled for completion within 18 months.

EFE reported that Argentinean Italian conglomerate Techint is pondering the possibility of filing an action against Venezuela, after President Mr Hugo Chávez Wednesday suspended the talks on the terms under which the holding is to sell to the Venezuelan state a majority stake in the country's largest steelmaker Sidor.

The report said that “Techint officials said they were likely to bring an action before the International Centre for Settlement of Investment Disputes, the arbitration tribunal of the World Bank, after Techint was surprised" by the arbitrary and unilateral decision taken by Mr Chávez.”

Mr Fabio Steinberg a spokesman for Techint Group told Reuters that “Talks between Ternium SA and the Venezuelan government are at an impasse. Chavez's tone has hardened. He's threatening total expropriation of Sidor. It's an impasse. Techint will file the complaint with the World Bank's International Center for Settlement of Investment Disputes.''

Mr Steinberg said that Techint will ask the tribunal to help it reach an accord with Venezuela or issue a ruling on financial compensation.

The Venezuelan president on Wednesday suspended negotiations with Techint and said he would pay the real value and at the pace that we can.

SteelBenchmarker reported that the US hot rolled band spot price for August 25th 2008 fell by 2.5% to USD 1,159 per ton, FOB the mill for the second consecutive time, world export HRB price plunged by 6.6% to USD 1,006 per ton FOB the port of export, for the second consecutive time, Chinese HRB ex works price fell by 7.4% to USD 636 per ton for the third consecutive time and the Western European HRB fell by 4.4% to USD 1,108 per tonne ex works for the third time.

USA
USD 1,159 per metric tonne FOB the mill
Down by USD 30 per tonne from USD 1,189 two weeks ago
Down by USD 44 per tonne from the peak on July 28th 2008, but up USD 599 per tonne from the recent low o