Top Stories
Tata Power's UMPP project violated environmental norms: reports
Tata Power's 4000 MW Ultra Mega Power Project (UMPP) in Kutch district has been accused of violating social and environmental norms by an independent fact-finding team, according to reports.
Reports stated that the project has caused “massive damage to livelihood, marine life and the overall environment in the vicinity of the power plant.
The company has denied the allegations and reportedly said that Mundra UMPP project strictly abides by stipulated norms for its operations.
The destruction of mangroves and creeks had badly impacted fish availability in the region, says report.
RInfra SPV commissions 6th Transmission line in Western Grid
Reliance Infrastructure Limited (RInfra), part of the Reliance Group, commissioned another 400 kV Double Circuit Transmission line between Solapur and Kolhapur in Maharashtra through its wholly owned subsidiary Western Region Transmission (Maharashtra) Private Limited (WRTM).
220 Kms long, 400 kV double circuit transmission line is the sixth line under the Western Regional System Strengthening (WRSS) scheme that will connect two key business and tourists centers of Western Maharashtra and will boost the economic growth of the region.
Commenting on the development, Alok Roy, CEO, Reliance Power Transmission Limited said, “We are proud to announce the commissioning of sixth transmission line, where getting Right of Way was a big challenge. Out of nine, our six transmission lines have been successfully commissioned.
BHEL commissions 3rd 250 MW gas turbine at Pragati-III plant
Bharat Heavy Electricals Limited (BHEL) has successfully commissioned the third 250 MW Advanced Class Gas Turbine at the 1,500 MW Pragati-III Combined Cycle Power Plant, coming up at Bawana in New Delhi. With this, a total of 1,000 MW is now available for feeding power to the grid from this station.
Significantly, the full load operation of the unit has been achieved within a day of unit getting synchronized. With this, BHEL has commissioned 2,250 MW in the first quarter of the current fiscal (2012-13).
BHEL had won the turnkey contract for setting up the Gas Turbine-based CCPP against International Competitive Bidding (ICB) from Pragati Power Corporation Limited (PPCL). BHEL has earlier set up on turnkey basis, the 330 MW Pragati CCPP in Delhi, which has been performing exceedingly well since commissioning.
In Focus Stories
Q1FY13: What to expect from Infrastructure this quarter?
Headwinds from macro indicators coupled with delay in key policy decisions have hit both industrial activity and the investment cycle. Likewise, new project announcements have declined and the number of projects stalled has jumped. Significant drop in order inflow has resulted into slower growth in order backlog across the industry. As a result, we expect continued deceleration in revenue growth with longer execution cycles.
Tendering activity in the power T&D space has seen strong momentum with healthy order awarding by PGCIL. Order intake for BTG industry continues to stay sluggish led by various concerns surrounding power sector. Moreover, road segment witnessed a lukewarm ordering this quarter with NHAI awarded only 286km in Q1 FY13. Growth in execution is expected to remain stable owing to fast track execution of healthy order backlog.
Margins in the overall infra space (incl. capital goods) is expected to contract on yoy basis on account of a) higher input cost, b) declining pricing power and c) higher interest rates against last year. Additionally rupee depreciation is likely to impact margins for the company who are net importers.
Revenues for Havells India is expected grow by healthy 21% backed by strong growth across all four segments – a) Switchgears, b) Cables and Wires, c) Lighting and consumer durables and d) Electrical consumer durables. We expect revenues for Sylvania to remain flat while margins to improve marginally on yoy basis led by cost rationalization.
Bajaj Electricals revenues are expected to grow by 16.8% on yoy basis owing to strong 20% growth in the lighting and consumer durables segment. We expect robust growth in these segments to be offset by slower 5% growth in the engineering segment. Operating margin for the company is expected to improve on yoy basis with sharp margin expansion in the lighting segment.
Management commentary on future outlook of certain primal parameters like order inflow guidance and working capital management could serve as key catalyst for the stocks. That apart, key policy initiative by the government on the infrastructure space would be the key thing to watch out for. Our top pick in the sector is Bajaj Electricals.
Domestic News
India's manufacturing PMI rises in June: HSBC
India's manufacturing output improved in Juneas companies stepped up production and hiring at the fastest rate in more thantwo years, but exports orders slackened due to weak global economy, a survey byHSBC and Makit Economics showed on Monday.
The HSBC manufacturing Purchasing Managers'Index (PMI) rose to 55.0 in June, a four-month high, from 54.8 in May.It has been above the 50 mark that separatesgrowth from contraction for more than three years.
However, input and output costs jumped fromMay, fueling expectations that the Reserve Bank of India (RBI) was unlikely tocut key interest rates soon.
The employment sub-index stood at 52.4 in June, the highest level since May 2010."Activity in the manufacturing sector kept up the pace in June with output and employment expanding at a faster pace," said Leif Eskesen, economist at HSBC.
New export orders grew at their slowest pace since November 2011, with demand weakening in top trading partners Europe and the United States.The new export orders fell to 54.3 in June from 56.2 in May while domestic new orders declined to 58.5 from 59.6, suggesting that overall demand remains subdued.
"New order growth decelerated slightly led by export orders while stock levels rose, suggesting a slight moderation in output growth going ahead," HSBC's Eskesen said.Inventory of both raw material and finished goods rose in June, as companies anticipate higher demand.
Cabinet approves Kochi Metro Rail Project
The Kochi Metro Rail will improve the public transport system of Kochi. The total cost of the project is Rs. 5181.79 crore covering total length of 25.612 kilometres and consisting of 23 stations. It will be fully elevated and will run from Alwaye to Petta on standard gauge.
In the total project cost, Government of India`s (GoI) share will be Rs. 1002.23 crore and Government of Kerala`s (GoK) share will be Rs.l,772.23 crore. External Debt will be Rs. 2,170 crore and State taxes including escalation to be borne by GoK will be Rs. 237.33 crore.
The project will be executed by Special Purpose Vehicle of GoI and GoK having 50:50 equity of each. The project is scheduled to be completed in four years from the date of start of the work.
Tata Power to set up power projects outside India: reports
Tata Power is planing to diversify into geo-thermal energy and set up power projects outside India, according to reports.
Reports stated that the company ill continue to explore new power generating capacity to touch 26,000 MW by 2020, with 20-25 per cent coming from clean energy sources.
Tata Power has prioritised seven countries which include South Africa and other Sub-Saharan Africa countries, Indonesia, Vietnam, Turkey and West Asia, says report.
L&T Construction wins orders worth Rs. 15.23bn
L&T Construction has won new orders valued over Rs1523 crore across various business segments in June 2012.
The Buildings & Factories IC, bagged new orders worth Rs546 crore from reputed customers for the construction of commercial buildings and factory structures including additional orders in various ongoing jobs.The Infrastructure IC, secured orders valued at Rs 225 crore for the railway construction works consisting of doubling between Hospet to Harlapur on Hubli division of South Western Railway. This also includes orders for additional works in various ongoing infrastructure projects.
Alstom wins contract from BHEL for 2x660 MW super-critical boiler project
Alstom has been awarded a contract worth approx. Rs.5.3bn (approx.€80 million / USD 100 million) by Bharat Heavy Electricals Limited (BHEL), to supply components and services for the 660 MW supercritical boilers at NTPC sites of two units located in Mouda, Maharashtra, India. These 660 MW supercritical power boilers were awarded to BHEL as part of the NTPC Bulk 660 MW tender. Alstom is the licensor of the supercritical technology of BHEL and is also collaborating with BHEL on execution of the supercritical boiler projects under the Licence and Business Cooperation Agreements.
Under the scope of the contracts, Alstom will cooperate with BHEL in designing the boilers and supply pressure parts of the 660 MW supercritical boilers along with pulverisers and airpreheater components. It will also assist BHEL with technical advisors during the erection and commissioning of the units. Key components will be manufactured from Alstom's manufacturing facilities in Wellsville and Concordia in the USA and in Durgapur and Shahabad, India The units are expected to be commissioned in 2016.
Triveni, Elecon shortlisted for stake sale in Shanthi Gears: reports
Triveni Engineering, Elecon Engineering, Bharat Forge and a Belgian gear-box producer, have been shortlisted to acquire controlling stake in the Coimbatore-based Shanthi Gears, according to reports.
Reports stated that KPMG, which is advising promoters of Shanthi Gears on the stake sale, has drawn up a shortlist after receiving indicative bids.
Shanthi's chairman P Subramanian and his family is likely to take a final decision on selling their 44% stake in the next two weeks, says report.
GTL Infra to restructure outstanding FCCBs
GTL Infrastructure Ltd has announced that the Board, at its meeting held on July 03, 2012 has considered a proposal to restructure its outstanding Foreign Currency Convertible Bonds (the "FCCBs") and have constituted a sub-committee to negotiate and finalise the terms for restructure of FCCBs.
Any such decision of the sub-committee shall be subject to approval of Reserve Bank of India, CDR Lenders, shareholders, and such other regulating authorities as may be required.
KEC International starts production of High Tension cables in Gujarat
KEC International Ltd. (KEC), a global infrastructure EPC major, an RPG Group company, has announced that it has completed the phase-1 expansion by commencing the commercial production of high tension (HT) power cables (up to 33 kV) at its green-field facility in Vadodara, Gujarat w.e.f. 2nd July 2012. This will have annual production capacity of approx. 1,800 kilometers of cables.
In phase-2, the company is in process of expanding its product portfolio by commencing manufacturing of extra high voltage (EHV) power cables (up to 220 kV ) at its’ above mentioned green-field facility. This facility will also have capability to manufacture 400 kV EHV cables. The Company expects to complete phase-2 expansion shortly.
GVK expects financial closure for Alpha coal project by March 2013: reports
GVK Power & Infrastructure Limited has reportedly said that the financial closure for its $10-billion Alpha coal and rail project in Queensland, Australia, was expected by March 2013.
The financial closure was getting deferred due to delays in receiving necessary environmental clearances from the local authorities, report says.
Last year, GVK paid $1.26 billion to buy the coal assets and related logistics infrastructure in Australia from Hancock, through a group company GVK Coal Developers (Singapore), says report.
India’s Infrastructure Project receives Global appreciation
KEC International bags order worth Rs7.95bn
Tata Power seeks MoEF approval for converting 1 Trombay unit into coal: reports
Essar Energy sells stake in Vietnam gas block to ENI
6th Road Project of RInfra’s SPV in Haryana goes Operational
Bhavnagar Energy Co. selects SAP ERP running on Sybase
VA Tech Wabag wins orders worth Rs. 1bn (~€14mn)
IL&FS Transportation signs Concession Agreement with NHAI
NHPC's Unit No. 1 of Chamera HE Project is under commercial operation
Luminous Power Technologies is now ISO 50001:2011 Certified
Energy saving capability invigorates Indian Electrical Drives Market : reports
Railway transportation exempted from service tax for 3 months
Pratibha Industries bags orders worth Rs. 14.91bn
GMR Infra arm reorganises S. East Asian coal biz
International News
Gamesa signs turbine supply deal with RES
Gamesa has announced it has signed a turbine supply deal with RES -one of the world's leading independent renewable energy project developers- for Meikle Carewe Wind Farm in Aberdeenshire, Scotland. The contract will see Gamesa supplying 12 G52-850kW machines.The turbine supply contract includes a 10 year service contract for the wind farm.
The wind farm -with a total installed capacity of 10.2 MW- will generate electricity equivalent to the annual needs of approximately 7,000 households every year.
Javier Perea, Commercial, Project and Offshore Managing Director of Gamesa said: "The new supply and maintenance agreement consolidates our relationship with one of the most dynamic independent renewable energy project developers. RES has considered our G52-850 kW the best solution for this project and we foresee relevant opportunities for our G5X platform in this market."
Probe says Fukushima nuke disaster was 'man-made': reports
A Japanese government probe has concluded that last year's Fukushima nuclear power plant disaster was caused by collusion between the plant's operator and government regulators which resulted in critical safety lapses, according to reports.
An independent panel of investigators repotedly said that the plant had been plagued by quality control problems before it was rocked by a powerful earthquake and tsunami in March 2011.
The report noted that the operator, Tokyo Electric Power Co or TEPCO, and regulators had failed to draw up proper contingency plans in the event of such a disaster