ET reported that the steel ministry has sought support from Forests and Environment Ministry for getting an early decision from the Supreme Court on the Rowghat iron ore mines which is critical to SAIL's INR 54,000 crore expansion plan.

Mr Ram Vilas Paswan steel minister said in a letter to Mr S Regupathy minister of State for Forests and Environment said that SAIL's plan to reach 26 million tonnes of steel production by 2011 may hit a roadblock if its cash cow, Bhilai Steel Plant is not able to augment capacity from 4.8 million tonnes to 7.5 million tonnes due to depleting source of iron ore, Steel Minister.

Mr Paswan said that “The expansion plans of SAIL would become viable only if it continues to have access to its own reserve of iron ore.”

At present, BSP sources iron ore from Dalli and Rajhara group of mines which are on the verge of depletion. The total reserves left in these mines in Chhattisgarh are around 50 million tonnes and would not last for more than 5 years. SAIL had applied for fresh mining leases of the Rowghat deposit in the state which was favored by Chhattisgarh government, but the proposal cannot proceed unless necessary clearances are obtained from the Central Empowered Committee of the Supreme Court.

The state government had recommended that at least one of the pockets of the Rowghat mines with a reserve of about 511 million tonnes be given to BSP.

The Forest Advisory Committee of the Ministry of Forests and Environment had also cleared diversion of 883.22 hectares of forest land for the Rowghat iron ore mining project in favour of SAIL in June 2007.

The fall in prices was prominent in Flat products whereas Long products showed marginal buoyancy in the last week. The overall steel index fell by 20 points

ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index

The lowest values, after a continuous slide from August 5th 2008, are as under

ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index

Long products

Flat products

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

Input materials

Domestic prices for iron ore remained largely unchanged at Burwil, but sponge iron prices went up in Raipur due to increased demand. Scrap, Pencil Ingot and pig iron prices showed rebound in most of the places, except Kolkata where Pig Iron prices declined.

Melting scrap
80:20
HMS

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

Alang

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

Pencil ingot

Change on September 26th is with respect to prices on 19th September

Change is in INR per tonne

Pig Iron

Change on September 26th is with respect to prices on 19th September

Change is in INR per tonne

Sponge iron

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

Long products
TMT
Fe 415
12mm

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

WRC
SWR14
5.5/6

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

ANGL
GR A
65x6

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

CHNL
GR A
75/100

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

JSTI
GR A
250x125

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

Prices are expected remain stable and show upward movement in the coming week due more buying activity expected to commence.

Flat products

HRC
Tube
2.5x1250

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

Patra

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

PLTS
GRA
8x1.5

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

PLTS
GRB
12-20x2.5

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

CR
DSK
0.63x1000

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

GC
100Gms
0.4

Change on September 26th is with respect to prices on 19th September
Change is in INR per tonne

If you want to know the prevailing prices and changes across the week on daily basis, please subscribe to services of www.steelprices-india.com

It is reported that the door of Management Training Institute, Ranchi of Steel Authority of India Limited was opened to the world on Friday following the inauguration of e corridor. The facility was inaugurated by Mr SK Roongta chairman of SAIL in New Delhi.

Mr Roongta interacted with the participants of a program on project management and the faculty from IIM, Ahmedabad through a video conferencing session.

The institute can be now be connected to any top institution of the world through video conferencing. This facility marked a new initiative in technology enabled learning at MTI and will enable the participants at the institute's program to interact with eminent speakers from other locations having video conferencing facility has features that support multiple locations.

It can connect to different locations having video conferencing facilities either through internet or telephony giving MTI more flexibility in connecting to different locations.

ET reported that ICICI Ventures, Larsen & Toubro and IL&FS are in the race to acquire a 51% stake in NTPC-BHEL Power Projects the 50:50 JV floated to manufacture power equipment and pitch for EPC jobs from the power sector.

Mr K Ravi Kumar C MD of BHEL’s said that “There are three private firms in the race to acquire a majority stake in NBPPL but we are yet to take a final decision. The idea is to give them a management control.”

Mr Ramesh said that “We have readied the business plan for NBPPL. According to plans, NBPPL will undertake three broad categories of business and it will be taken up in three phases.”

As per report, NBPPL will be investing INR 6,000 crore in setting up the power equipment manufacturing units which when installed will generate 5,000 MW annually by 2013. The CAPEX is likely to be funded through a 70:30 debt equity ratio.

He said that “In the first phase, the NTPC-BHEL JV will vie for EPC jobs for power plants in India and abroad. Under the plans, the EPC jobs will be alternately executed between BHEL and NTPC.”

He further added that in the second phase, NBPPL will manufacture critical balance of plant equipment for power units, and in the final phase, it will set up a power equipment manufacturing plant. This plant will have a capacity to manufacture critical components boilers and turbines.

Mr Jairam Ramesh union minister of state for power said that “The government intends to hand over the management control of NBPPL to a private strategic investor who will hold 51% stake and impart operational and managerial expertise to the venture. ICICI Ventures, Larsen & Toubro and IL&FS are in the race.”

Incidentally, NBPPL is incorporated in Noida with an initial equity base of INR 5 crore and Mr CP Singh has been appointed CMD. Mr Singh was director at BHEL prior to this assignment. Currently, BHEL and NTPC jointly hold 50% stakes respectively in NBPPL. Once they collectively offload 51% to a private investor, the original twin promoters will hold 24.5% each.

BL reported that New Mangalore Port handled a record cargo of 35,266 tonnes of iron ore fines in a day on September 24th.

A press release by the New Mangalore Port Trust said that the port handled 35,266 tonnes of iron ore fines on September 24th on MV Father-F, surpassing the earlier record of 35,100 tonnes handled on February 6th 2005 on MV Helic Breeze.

The port handled 38.6 million tonnes of iron ore cargo as on September 26th as against 33.7 million tonnes in the corresponding period of the previous fiscal.

Project Today reported that Bharat Heavy Electricals is seeking EoIs from transmission equipment manufacturing firms for an equity JV. The EoIs have to be submitted by October 31st 2008.

The JV company will manufacture transformers, reactors, capacitors etc for capacities up to 400 kV and has a technology to produce those up to 765 kV.

Project Today reported that the Petroleum & Natural Gas Regulatory Board is planning to cover 100 cities by the end of the XI Five Year Plan under the city piped gas distribution network.

To start with, PNGRB will begin the bidding process for seven cities under the city gas distribution network. As per report, the bids are expected to be invited by early October 2008 for Kakinada, Mathura, Bhopal, Sonepat, Gaziabad, Sahdol and Kota.

The four companies which have submitted EoIs for these cities are GAIL, Gujarat Gas, Great Eastern Energy Co and Reliance Industries. The regulatory board will finalize the name for the first seven cities by March 2009.

The report added that the next round of bidding of around 14 cities will commence as soon as the initial procedure is over for the first seven cities. Currently, there are 8 to 10 cities that are completely or partially linked to piped gas for domestic use.

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Project today reported that Reliance ADAG's Rosa power project at Shahjahanpur in Uttar Pradesh is likely to be commissioned 6 months ahead of schedule.

As per report, the first unit of 300 MW under Stage-I is expected to commission by September 2009, while the second unit will complete by December 2009. Earlier the deadlines for commissioning the first and second units were March and June in 2010 respectively.

At present over 40% of the overall project work is completed. The Stage-II of the project, having two units of 300 MW, the company is awaiting some necessary clearances.

BS reported that NTPC continues to be in talks with Russia’s Technoprom Export for supply of boilers for its 1,980 MW Barh stage I project in Bihar even as the deadline set by the state owned power generation utility to resolve the dispute expired.

The report cited an official as saying that “Yes, we had set September 24 as the deadline for resolving the dispute after which we were supposed to initiate adjudication proceedings against the Russian company. But filing a suit is not an easy matter since so much effort has already gone into it. We are still trying to resolve the matter with Technoprom.”

Mr Jairam Ramesh minister of state for Power said that the company had given time to Technoprom Export till September 24 before it starts adjudication proceedings as provided for in the contract between the 2.

As per report, the first unit was supposed to have been commissioned by Mar 2009 but the current anticipated date is now January 2011. The other two units are also delayed by over two years. The total cost of stage-I is INR 8,700 crore of which roughly INR 3,000 crore has already been spent.

Power Machines another Russian company is to supply the turbine generators for the project.

It is reported that Cochin Shipyard Limited has launched three Platform Supply Vessels on September 23rd. One of these was BY-63 the eighth ship being built for Deep Sea Supply, Norway. The other two vessels are for Hellespont Steamship Corporation, Greece. All three ships are of Rolls-Royce 755 design.

As per report, these ships are highly sophisticated and fitted with dynamic positioning systems which enable them to automatically maintain their position at sea accurately. These vessels are the workhorses of the offshore industry. All three ships are equipped with special equipment that can also combat oil fires in offshore installations.

CSL earlier launched five PSVs in June.

Japan’s second largest automaker Honda Motor Co will delay opening its second car factory in India, as the pace of growth in the market slows down.

Mr Sakae Uruma a Tokyo based spokesman said that Honda aims to open the plant in Rajasthan by October 2010 at the latest from its original schedule of 2009. The engine parts and press units at the facility began operations on Saturday.

Higher auto loan rates and the fastest inflation in 16 years caused industry wide vehicle sales in India to fall in July and August, the first time in two and a half years. General Motors Corp, Toyota Motor Corp and Ford Motor Co are among carmakers spending USD 6 billion to build factories in India.

Hyundai Construction Equipment India, a fully owned subsidiary of the USD 20 billion Hyundai Construction Equipment which is part of South Korean chaebol Hyundai, has plans to develop India as its export base for heavy machinery business.
As per report the company has invested INR 300 crore for setting up a 10,000 unit a year Greenfield production facility at Pune in Maharashtra. It manufactures heavy equipment like hydraulic excavators and will be eyeing the Middle East, Europe and African countries as possible overseas markets. It plans to sell some 2,000 units in the domestic market by 2010 and plans to export the rest. The company will produce 20 tonne, 11 tonne and 9 tonne hydraulic excavators at the Pune plant.

Mr Ki Young Kong HCE director sales & marketing said that “We are looking at economizing logistics cost to various overseas markets. India offers more advantages over South Korea for various export markets and we will tap the developed Europe and emerging Middle East and African markets from our Indian operations.”

Besides production from India, the Korea-based construction equipment major is working on plans to set up a product development centre at Pune, its manufacturing base. Mr Suvendu Moitra head of marketing of HCS said that “We are looking at increasing the local content in our machines from the current 30% to 80% in the next three years to increase our price competitiveness. Besides, we will also develop India specific products as there is massive infrastructure development potential in India.”

The company is targeting sales of 200 units this year, which would go up to 800 units next year and 2,000 units in 2010, with the aim to capture 12-15% share of the domestic market.
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TOI reported that TATA Group chairman Mr Ratan Tata has replied to West Bengal chief minister Mr Buddhadeb Bhattacharjee's letter to stay back. Mr Ratan Tata in his reply said that Tata officials would hold talks with government soon.

Mr Bhattacharjee while addressing a SFI rally said that "Ratan Tata has replied to my letter. We will be having talks with TATA Motors soon.” According to CM's secretariat, the talks are expected some time this week.

In his letter, the Tata Group chairman also mentioned about the problems annoying the Tata officials. The problems remain as was evident from the opposition rally in Singur the day TATA Motors announced company was actively considering its shifting plans.

It is reported that Sterlite Technologies has bagged INR 254 crore orders from state run Power Grid Corporation of India for supplying power conductor.

Sterlite Tech in a filing to the Bombay Stock Exchange said that as per PGCIL's requirement, about 60% of the contract value would be executed within the current fiscal.

As per report, the company currently has a manufacturing capacity of 1.15 million tonnes and plans to increase the production level to 1,60,000 million tonnes at its power conductor facility. The company order book now stands at INR 1,400 crore.

Mr Pravin Agarwal director of Sterlite Technologies said that “Over the past several business quarters we have achieved success in key high demand markets in several geographies. All our capacity expansion program are well in our progress and are scheduled to complete within the current fiscal.”

BS reported that Ratnagiri Gas & Power Private Limited proposes to double its power generation capacity by early October and operationalise the LNG terminal without breakwater soon. The company expects that the breakwater would be commissioned by 2011.
Mr RK Goel chairman of RGPPL said that power generation is expected to double by the first week of October from the current level of about 620 MW. The steam turbine of power block III would be put on stream and the power block would be generating about another 600 MW to 620 MW.

He said that one gas turbine each of power block I and II are expected to be revived by the end of this year when all the 6 gas turbines and three steam turbines would be on stream.

Mr Goel said that construction of marine and non marine works of LNG terminal is in progress. Pre commissioning activities of various systems has commenced. Tank 300 is ready to receive LNG and Tank 400 is nearing completion. All the major marine related contracts, except breakwater and capital dredging, have been awarded and the company is targeting to bring commissioning cargo of LNG in the early part of 2009.

He further added that the LNG terminal without breakwater would be operational soon. The project revival cost of INR 870 crore estimated at the time of take over of assets has now been estimated at INR 2,364 crore.

BL reported that Mr L Madhusudhan Rao chairman of Lanco Infratech Limited told shareholders about the company plans to diversify into wind power and solar energy generation and efforts to finalize business plans.

Mr Rao said that “We are currently finalizing business plans for manufacturing and supply of wind turbines and related equipment and for setting up of manufacturing facilities for solar photovoltaic cells and modules.”

While referring to the EPC business which has focus on power projects, highway and buildings, he added that the division has an order book of about INR 13,000 crore or about USD 2.8 billion. Most of the projects now under implementation are largely on schedule, the shareholders were informed.

He assured shareholders that the managerial team has the capability to innovate and grow under these challenging times. The power trading arm of the company has recorded a turnover of INR 660 crore and was ranked among third in terms of volumes of electricity traded in the country.

BL reported that Tamil Nadu needs a medium term plan to tide over the present power crisis and not a short term solution as the crisis will continue for 3 years to 4 years.

Mr Manikam Ramaswami chairman of CII Tamil Nadu sad that “The government must also consider the unbundling the operation for effective generation, transmission and distribution which are attributing the drop in exports to power shortage. The government must also consider channelising the captive capacity which is lying idle. He also sought that load shedding should be distributed equally among industry, domestic and commercial establishments.”

Currently, the industry consumption is 30% while domestic and commercial establishments consume 35%. He said that “However, industry bears the maximum brunt and, as a result, production suffers.”

Mr Shiv Das Meena ED of TNEB said that the State was very comfortable with an installed capacity 10,200 MW as against the demand ranging from 9,200 MW to 9,500 MW. However, owing to fuel shortage, failure of south west monsoon and a 1,000 MW short supply from central generating stations, the State reels under power crisis.

He said that “Thinking beyond power generation, one can realize that focus on conservation and efficient power equipment would help to get over this problem. TNEB is taking a series of initiatives to modernize its operations besides cutting down transmission and distribution losses.”

He added that the per capita power consumption in the State is 950 units to 1,000 units against the national average of around 600 units. He said that “With many projects which are in the pipeline and in various stages of implementation, by 2010 the State is expected to come back to surplus position.”

BL reported that Damodar Valley Corporation may entrust the responsibilities of operation and maintenance of its upcoming super critical thermal power stations to a JV with TATA Power.

Mr Asim Barman chairman of DVC said that “DVC is setting up a number of super critical thermal power plants which will require better coal handling practices. By joining hands with TATA Power in operation and maintenance areas we can introduce the best coal handling practices in the industry.”

DVC has received board approval in this regard. The SPV is slated to be created within this fiscal. However, asset transfer may take some more time. Apart from taking care of DVC assets, the O&M JV may explore the possibility to offering its services to other power producers in the country.

DVC is currently setting up a series of super critical projects in West Bengal and Jharkhand to enhance its generation capacity from close to 3,000 MW to 9,510 MW in 2011. TATA Power is setting up a 4,000 MW ultra mega project with 5 super critical boilers of 800 MW each.

As per report, both the companies have also agreed to carry out a detailed feasibility study for enhancing the capacity of the upcoming 1,050 MW thermal power station of Maithon Power Limited to 2,850 MW or 3,150 MW. Maithon Power is a 74:26 JV between TATA Power and DVC and is setting up two units of 525 MW each at Maithon in Jharkhand. Both the companies are also exploring joint venture opportunity to develop captive coal mines for DVC projects as well as Maithon Power.

BL reported that freight rates for 10 tonnes pay load for Kolkata, Mumbai and Pune dropped by INR 1,000 in the local truck transport market following excess availability of the vehicle.

Transporters said that better position of lorries as compared to the cargo movements, largely pulled down select centers freight rates. Delhi to Kolkata and Patna freights slipped by INR 1000 each at INR 23,000 and INR 21,000 respectively.

Rates to Mumbai and Pune also went down by INR 1,000 each at INR 17,000 and INR 18,000 respectively. Elsewhere, rest other centers freight rates maintained overnight levels on some support.

Following were today's freight rates for the ten metric tonnes load, Ahmedabad 11,000 Hyderabad 23,000, Mumbai 17,000, Vijayawada 25,000, Baroda 14,000, Bangalore 36,000, Pune 18,000, Mysore 33,000, Surat 16,000, Pondicherry 35,000, Kanpur 9,000, Coimbat ore 38,000, Kolkata 23,000, Chennai 34,000, Ludhiana 9,500, Kochi 44,000, Chandigarh 7,500, Thiruvananthapuram 48,000, Jaipur 6,000, Goa 25,000, Indore 12,000, Gwalior 6,500, Patna 21,000, Guwahati 42,000.

Bharat Heavy Electricals Limited has informed BSE that Ministry of Heavy Industries and Public Enterprises, Department of Heavy Industry, vide its letter dated September 9th 2008 has withdrawn the nomination of Mr BS Meena additional Secretary and financial advisor, Ministry of Steel as Director on the Board of BHEL. As such Mr BS Meena has ceased to be Director on the Board of BHEL with effect from September 9th 2008.

Ministry of Heavy Industries and Public Enterprises, Department of Heavy Industry, vide its letter dated September 1st 2008 extended the additional charge of the post of CMD, BHEL to Mr K Ravikumar Director in addition to his existing charge for a further period till June 30th 2009 that is the date of his superannuation or until further orders whichever is earlier.

McNally Bharat Engineering Company Limited has informed BSE that the Company