Monday, 7 October 2013

L&T secures two EPC projects worth Rs 1100 crore

Larsen & Toubro (L&T) has secured two EPC projects of about Rs 1100 crore value in hydrocarbon segment in UAE and Qatar. Takreer, a subsidiary of state-owned Abu Dhabi National Oil Company- ADNOC, has awarded an EPC project of a new Aviation Fuel Terminal at Abu Dhabi International Airport for developing storage and delivery of Jet A-1 fuel. The project is scheduled to be completed in 30 months.

In Qatar, the company has won an EPC contract from Dolphin Energy for third party gas interconnecting facilities in Ras Laffan. The project is scheduled to be completed in 20 months. L&T is already executing another Export Gas Upgrade Facilities Project for Dolphin Energy to increase the capacity of the export gas compressors facilities from 2.2 BSCFD up to 3.2 BSCFD by adding three new compression trains.  

These orders reinforce L&T’s strategic objective of enhancing its global footprint, and reflect its capability to execute hydrocarbon projects in a competitive international environment. 

India to become energy independent by 2030: Oil Minister

Emphasizing the need to boost domestic gas and oil output and to meet the growing energy needs of the country, Oil Minister Veerappa Moily said that India will become energy independent by 2030 as expert panel is preparing a road map for enhancing domestic oil and gas production.

The government has set up a committee led by former finance secretary Vijay Kelkar to prepare road map aimed at boosting the domestic production of oil and gas and help India achieve energy security. India currently imports around 80% of its oil needs and 25% of its natural gas requirements and the committee forecasts it to be lowered by 50% by 2020 and by 75% in 2025 through intensive exploration and exploitation of untapped reserves. Oil minister further added that country has enough resources of oil and natural gas, but there is need to explore these resources. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometres, comprising 26 sedimentary basins.

Moreover, the government will announce 10th round of New Exploration Licensing Policy (NELP) auction of around 68 oil and gas blocks in January, 2014, which will be the second highest offering of blocks since 1999. As per the government, 10th round of auction is likely to be held on new terms wherein a bidder shall be asked to quote the amount of oil or gas output it is willing to offer to the government from the first day of production. Presently, oil companies are allowed to share the profit with the government only after recovering the entire cost of exploration and production.

Tech Mahindra features in ‘Leaders’ Quadrant for IT Services

Tech Mahindra, a specialist provider of connected solutions to the connected world and enabling future digital enterprises, has been positioned by Gartner, Inc. in the 'Leaders' quadrant of the Magic Quadrant for IT Services for Communications Service Providers.

This Magic Quadrant helps large and midsize Communication Service Providers identify and evaluate suppliers for their operational IT services needs. The profiled vendors have expertise with discrete and multiyear engagements around CSP operational IT in a multiregional context.

Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra. The company, since 2002 has operations in China with offices in Beijing, Shanghai, Nanjing and Guangzhou. 

Force Motors soars on reporting LCV production at 806 units in September 2013

The promoters holding in the company stood at 51.75% while Institutions and Non-Institutions held 6.00% and 42.25% respectively. Force Motors, a Pune-based commercial vehicle maker, has reported the production, sales and export of the products manufactured by the company during the month of September 2013. The company’s production of Small Commercial Vehicles (SCV), Light Commercial Vehicles (LCV), Utility Vehicles & Sports Utility Vehicles (UV & SUV) and Tractors stood at 216 units, 806 units, 861 units and 274 units respectively.

The company’s domestic sales for SCV, LCV, UV & SUV and Tractor stood at 97 units, 676 units, 791 units and 303 units respectively while the company has exported 210 units of SCV, 2 units of LCV in the month of September 2013.

Force Motors is a fully vertically integrated automobile company, with expertise in design, development and manufacture of the full spectrum of automotive components, aggregates and vehicles.

McNally Bharat soars on bagging order worth Rs 127.46 crore

McNally Bharat Engineering Company has received an order worth Rs 127.46 crore for Civil, Structural & Underground piping works of an existing refinery area for an Integrated Refinery Expansion Project.

McNally Bharat Engineering Company is one of the leading engineering companies. It provides turnkey solutions in areas of power, steel, alumina, material handling, mineral beneficiation, coal washing, ash handling and disposal, port cranes, civic and industrial water supply etc.

RBI would issue 7 bank licences soon: FM

According to Chidambaram, the new banks which would receive banking licence shouldn’t look like each other with different names

Finance Minister P Chidambaram said that the Reserve Bank of India (RBI) would shortly issue seven licences. 

Speaking at a conference at State Bank of Mysore, in Bangalore on Saturday, Chidambaram said the new banks should not try to become clones of existing banks. 

According to Chidambaram, the new banks which would receive banking licence shouldn’t look like each other with different names. Each bank should cater to the needs of a special group of customers. 


“We will have competition, efficiency and progress only if people attempt different things and do things differently,” he added. 

Godrej Properties adds a large new project in Mumbai

The Mumbai-based real estate developer will develop a residential project on LBS Marg

Godrej Properties Limited (GPL) (BSE scrip id: GODREJPRP), the real estate development arm of the Godrej Group, has entered into a Development Agreement with Ador Group, to develop a 6.7 acre land parcel situated on LBS Marg in Bhandup (W).

This prime land parcel is strategically located on LBS Marg and is just off the Mulund exit from the Eastern Express Highway which provides it with excellent connectivity to South Mumbai. The site has extremely well developed physical and social infrastructure in its vicinity and is very close to the affluent neighborhood of Mulund. 

The project, which has a potential saleable area of approximately 72,000 sq. meters 
(7.76 lakh sq. ft), will be developed as a premium residential group housing project. 
This will be Godrej Properties' first project in the fast developing and upcoming 
suburb of Bhandup.

CARE reaffirms ratings to Central Bank of India’s various Bonds

Credit rating agency, CARE has reaffirmed AA rating to Central Bank of India’s Lower Tier II Bonds worth Rs 1,437.30 crore and AA- rating to Lower Tier II Bonds worth Rs 2,285.00 crore

The ratings factor in the majority ownership and capital support by the Government of India (GoI), extensive branch network, and comfortable CASA base.

Central Bank of India has been serving more than 3,50,00,000 account holders through its 4,118 branches, 6 extension counters, 29 Satellite offices, 1,970 ATMs and 2,413 ultra small branches (USBs).

Godrej Properties completes phase one of Godrej Garden City in Ahmedabad

Godrej Properties (GPL), the real estate development arm of the Godrej Group, has commenced the handing over of apartments to customers of Phase I of Godrej Garden City (GGC), Ahmedabad. There are 624 apartments in 13 towers that have been delivered in Phase I of this project. GGC is located just off SG Highway in the heart of Ahmedabad. The project is within Ahmedabad Municipal Corporation (AMC) limits and is easily accessible from any part of the city.

Godrej Properties brings the Godrej Group philosophy of innovation and excellence to the real estate industry. The company is currently developing landmark projects in 12 cities across India. With projects that span across the country, the company's upcoming development covers 74 million square feet.

TTK Prestige rises on plan to invest Rs 300 crore on brand building

TTK Prestige is planning to invest Rs 300 crore over the next three years on marketing/brand building. The advertising and marketing budget is Rs 100 crore for this year and Rs 300 crore in three years, which includes the brand ambassador fee. 

Recently, the company signed Aishwarya Rai Bachchan & Abhishek Bachchan - Bollywood’s biggest celebrity couple as its brand ambassadors. Further, the company is eying to foray into newer categories like water filters this year. Currently, the company is engaged in selling cookware and appliances like induction plates, mixers and toasters.

IRB Infrastructure gains as arm receives Provisional Certificate for Jaipur Deoli BOT Project

IRB Infrastructure Developers’ Jaipur Deoli BOT Project implemented by wholly-owned SPV of the company, IRB Jaipur Deoli Tollways, has been issued a Provisional Certificate by the competent authority effective September 27, 2013. The project has been commissioned in stipulated time. Consequently, the SPV has started partial toll collection on this project effective from September 27, 2013.

The Jaipur Deoli BOT project involves four-Lanning of Jaipur Deoli Section of NH 12 from Kms 18.700 to Kms 165.000 in the state of Rajasthan on DBFOT (toll) basis. The concession period is 25 years and the estimated cost of the project is Rs 1,733 crore. The company had bagged this project on Viability Gap Funding (VGF) basis and sought VGF of Rs 306 crore from NHAI.

IRB Infrastructure Developers undertakes development of various infrastructure projects in the road sector through several special purpose vehicles.

Economy news of the day

Telecom companies whose 2G permits were cancelled by the Supreme Court may not get another chance to bid for spectrum in the next round of auction

Finance Minister P Chidambaram said that the RBI would shortly issue seven licences. (BS)

Telecom companies whose 2G permits were cancelled by the Supreme Court may not get another chance to bid for spectrum in the next round of auction. Inter-ministerial panel and Telecom Commission have accepted the recommendation by a Department of Telecom committee to remove the eligibility rule that allowed such companies to participate. (ET)

India is preparing a plan to allow greater overseas participation in the domestic currency futures market to protect the rupee. The plan could draw from the recommendation of the high-powered expert committee on making Mumbai an international financial centre regarding the creation of a bond-currency-derivatives chain.  (ET) 

Reserve Bank Deputy Governor K C Chakrabarty has said only a provisional list of new bank licencees will be announced by January 2014 and it will take at least two years for a player to become operational. (BS)


The Power Ministry has asked the coal ministry to consider converting short-term coal supply pacts into long-term linkages for plants that could not start output in absence of approvals. (ET)

JSW Steel executes Business Transfer Agreement with Heidelberg Cement India

JSW Steel, a leading industry player, has executed a Business Transfer Agreement with Heidelberg Cement India for acquisition of its cement grinding facility at Raigad, Maharashtra, as a going concern on slump sale basis. The transaction will however be consummated only after obtaining all relevant approvals required under applicable laws.

The company has received approval for the above on October 5, 2013 in accordance with the decision of the board of directors of the erstwhile JSW ISPAT Steel on May 21, 2013, and the consent accorded by the board of directors of the company at its meeting held on May 23, 2013.

JSW Steel is part of the JSW group which, in turn, is a part of the O P Jindal group. JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.

Markets to get a soft-to-cautious start of the new week

The Indian markets consolidated in last session, dismal Services PMI data too weighed on the sentiments and traders opted to book profit. Today the start is likely to remain cautious and lacking any US cues traders will now be concentrating on the domestic earnings season, officially starting later this week with the Infosys numbers. The whole IT bunch will be in action ahead of the guidance of the IT behemoth, also there is report that a slew of regional banks In US are looking to outsource more technology work than ever before and Indian software services exporters are set to gain additional business from their largest market. Traders will remain cautious as a study by CII Ascon has shown that industrial growth in the three months ended 30 September remained dismal despite the government introducing a number of reform measures to boost the economy. There will be some buzz in the power sector, as the Power Ministry has asked the Coal Ministry to consider converting short-term coal supply pacts into long-term linkages for power plants that could not start output at captive mines in the absence of approvals.

The US markets taking the government shut-down in stride moved higher on Friday, there was neither economic data release nor any solution to the budget deal impasse despite President Obama’s effort. The Asian markets have made a mixed start and the Japanese market was down by over a percent as US lawmakers wrangled over the debt limit and partial government shutdown.

Back home, Indian equity benchmarks snapped the extremely volatile day of trade on an absolute flat note on Friday, as investors remained on sidelines ahead of start of the result session next week. During the session, the psychological 20,000 (Sensex) and 5,950 (Nifty) levels proved as stern resistances for frontline gauges, as despite couple of attempts the key indices could not clear those levels and ended flat. Earlier, benchmarks made a positive opening with foreign institutional investors (FIIs) turning big buyers in Indian equities amid easing concerns over funding India’s current account deficit and waning fears of Fed tapering. Some support also came in from appreciation in Indian rupee against dollar. But, markets gave up all their initial gains after getting a dismal Services PMI data. The services sector, which occupies the largest share in the Indian economy, contracted at the steepest pace since March 2009, according to the widely-tracked HSBC Purchasing Managers’ Index (PMI) report. The services PMI continued to contract for third time in a row in September and stood at 44.6 points from 47.6 points in August, when it was the lowest since March 2009. Global cues too remained sluggish with the US markets continuing their tepid run. Back home, markets once again gained strength and recaptured their positive terrain supported by buying in shares of automobiles companies which traded jubilantly for third day in row after reporting a better-than-expected monthly sales numbers in September and expectation of near term improvement in volume trajectory led by festive season. Moreover, stocks related to consumer durables sector too traded gracefully after the government said public sector lenders will offer cheaper loans to stimulate demand for struggling sectors. Additionally, shares of three public sector oil marketing companies viz. BPCL, HPCL and IOC edged higher as a strong rebound in rupee against the dollar eased concerns of higher cost of crude oil imports. However, benchmarks for a second time pared all their gains as some profit booking at higher level was witnessed in late trade, as investors’ opted wait and watch approach ahead of result session next week. Finally, the BSE Sensex added 13.88 points or 0.07%, to settle at 19915.95, while the CNX Nifty declined by 2.40 points or 0.04% to settle at 5,907.30.