Top Stories 

PM resolves major land transfer bottleneck

The Prime Minister approved relaxations in the land transfer policy of the government for government owned lands so that infrastructure projects are not held up because of procedural delays.

Early last year, a ban had been imposed on all transfer of government owned lands to any entity except in cases where land was to be transferred from one government department to another. In the meanwhile, the Department of Economic Affairs was to prepare a comprehensive land transfer policy for government owned land. In case any department had to implement a project which required alienation of land either through lease, license or rent, it had to seek specific approval of the Cabinet.

This was leading to long delays in awarding concessions for infrastructure projects, particularly PPP projects. All PPP infrastructure projects - roads, railways, ports, civil aviation and metros - have some element of land alienation as the project is often built on government owned land. The government continues to own the land which is leased or licensed out. Requiring Cabinet approval for each PPP project meant adding a few months to complete the processes for securing Cabinet approval.

The Prime Minister has now relaxed the ban for certain categories of projects by allowing land alienation for:

(i) All cases of land transfer from Ministries to statutory authorities or PSUs will be allowed, subject to the requirements of normal Government of India Rules;

(ii) All cases of land transfer on lease or rent or license to a concessionaire which have been appraised through the PPPAC (Public Private Partnership Approval Committee) route and approved by the Finance Minister or by the Ministers concerned or by the Cabinet, as the case may be, depending upon the value of the project; and

(iii) Development and use of railway land by Rail Land Development Authority (RLDA) as per provisions of Railways Amendment Act, 2005 and the Rules framed thereunder and in accordance with the prevalent policies and guidelines of the Railway Ministry and the Government.

Northern Grid fails...Biggest power cut in Northern states

For two days, there was the biggest cut in power supply in Northern states, after the Northern Grid broke down, according to reports.

Reports stated that Delhi, Punjab, Haryana, UP, Himachal and Rajasthan were the worst affected states.Delhi Metro also encountered power failure, leading to suspension of operation at several places, says report.

The grid crash affected several millions of people.

Power department also reportedly said that various power generation plants running on hydel, coal and gas had to shut operations due to the tripping of the grid.
In Focus Stories

India-Belgium Bilateral trade Touches USD 17.75bn

The Union Minister of Commerce, Industry & Textiles  Anand Sharma has called for institutional linkages between the Antwerp World Diamond Centre (AWDC) and the diamond facilities in India, specifically in the areas of diamond and gem stone grading and sorting; research and development; certification; cutting and polishing, in a bilateral meeting with  Didier Reynders, Deputy Prime Minister and Minister of Foreign Affairs, Foreign Trade and European Affairs, Belgium.

The Minister also discussed the scope of AWDC organising training/ graduation courses in gemology and cutting and sorting of rough and polished diamonds/ gem stones. He added that this would enhance the manufacturing capacity and productivity in this sector, which in turn would benefit the Antwerp diamond industry too. 

Sharma also emphasised that the trade between both the countries is dominated at present by the gems and jewellery sector which accounts for about 69.84% of the bilateral trade. The Belgian Minister  Didier Reynders also conveyed keen desire to cooperate in this area.

Both the Ministers identified health and life sciences as key areas of cooperation. Here,  Sharma suggested that owing to India’s strength in the pharmaceutical sector, Belgium could consider outsourcing some of the Research & Development in this industry to the laboratories in India.

It was also agreed that both the countries will work in a targeted manner in the fields of agro-processing, vocational training, and advanced engineering and manufacturing.
Domestic News

Reliance Infra SPV's 7th road Project in Tamil Nadu goes operational

Reliance Infrastructure Limited (RInfra), part of Reliance Group, through its Special Purpose Vehicle (SPV) SU Toll Road Pvt Ltd., has announced the commencement of its seventh road project from Salem to Ulundurpet in Tamil Nadu. The four lanning of Salem-Ulunderpet (SU) road has been completed and toll collection started.The project is executed on Build Operate Transfer (BOT) pattern under the aegis of National Highways Authority of India. RInfra has been awarded the contract to operate and maintain the road for a concession period of 25 years.

Built at a cost of  Rs. 10.61bn, SU corridor connects major tourist destinations, industrial zones and the Chennai international airport. Yercaud – a hill station and an important tourist destination in Salem district will now be easily accessible through this corridor.

Commenting on this development, Mr. Sudhir R Hoshing, CEO (Roads), Reliance Infrastructure, said “We are happy to complete the widening and start the operation of Salem-Ulundurpet road that will provide hassle-free, safer and smooth driving experience. The corridor will not only connect centers of tourism and industrial zones, but will also reduce the rural-urban gap by connecting 79 villages with Chennai, Bengaluru and other major cities. The corridor will witness approximately 8,500 vehicles per day that is expected to double in the next four years.”

India's power sector outlook remains stable; Some progress on reforms: Fitch 

Fitch Ratings says in a new report that the Outlook on the National ratings of Indian power sector issuers remains Stable in view of some progress on the fuel availability issue and the possibility of debt restructuring of state power utilities (SPUs) in seven states.

Independent power producers (IPPs) are striving hard to secure coal supplies for their new power-generation capacities. Coal India Limited, the state-owned coal producer, has agreed to enter into fuel-supply agreements (FSAs) with 48 new projects, albeit with a very low penalty (0.01%) for non-supply. Many private sector IPPs, hard-pressed for domestic coal, have signed FSAs with this low penalty clause. However, larger state-owned IPPs (including NTPC Limited ('BBB-'/Negative, 'Fitch AAA(ind)'/Stable)) have held back for the lack of an increase in penalty.

The government of India is trying to facilitate a solution with a higher penalty clause that will kick in for supplies lower than 65% of the contracted quantity, although CIL is yet to agree. Resolution of the penalty issue in FSAs is likely in the near term, yet coal supply issues will continue to affect investor interest in the power sector.

Suzlon Group wins cumulative orders of 219 MW

Suzlon Group-subsidiary, REpower Systems SE, achieved cumulative orders of approximately 219 MW over a two month period, excluding orders announced separately.

These cover various orders from Australia, France, Germany, Italy and Poland.

Four international banks sanctions RPower's UMPP project in Sasan: reports

Four international banks have sanctioned Reliance Power $800 mn (Rs 44.32bn) of debt for its ultra mega power project in Sasan, according to reports.

Reports said that While US Exim Bank sanctioned $600 mn, the remaining would be provided by Standard Chartered Bank, Mizuho Bank and Developmental Bank of Singapore.

This financing, along with financing from Chinese banks, would support import of world-class equipment for this prestigious project, says report.

Titagarh Wagons plans to restructure business segments: reports

Titagarh Wagons Ltd is reportedly planning to restructure its various business segments, other than wagon manufacturing, into subsidiaries.

Reports said that the company formed a committee of directors  to initiate moves for evaluation of its businesses and making them separate entities.

TWL builds railway coach and stell bridges, and makes steel castings and heavy earth moving equipment.

Suzlon fully redeems FCCBs of US$ 360 mn

Statement by Chandrajit Banerjee on Grid Failure in North India

CII's comments on recurrence of Grid failure across India

Capital goods entities’ working capital requirement at 5-year high

CEAMA and Government of Rajasthan organizes seminar on ‘Advantage Rajasthan

IRB Infrastructure declares as selected bidder for NHAI project

Sadbhav Engineering Q1 net profit at Rs524mn

Tecpro Systems bags orders worth Rs3.69bn

Results watch

KEC International Q1 net profit at Rs330mn

KEC International Ltd announced its unaudited consolidated results for the quarter ended June 30, 2012.Net Sales for the quarter stands at Rs13.64bn. It has increased by 33.4% as compared to the corresponding quarter of the previous year.

EBITDA for the quarter stands at Rs103 crore. It has increased by 6.5% as compared to the corresponding quarter of the previous year.Profit after Tax (PAT) for the quarter stands at Rs330mn. It remained flat as compared to the corresponding quarter of the previous year.

The Order Book continues to remain robust and currently stands at Rs9,462 crore. It has increased by 16.6% as compared to end of corresponding quarter of the previous year.

Ramesh Chandak, MD & CEO of the company commented “We are proud to deliver strong growth in our top-line continuously. In each of our previous 4 quarters, our growth rate is more than 25% Y-o-Y.

Alstom T & D Q1 net profit up 28%

Adani Power Q1 cons loss at Rs8098.10mn

Jaypee Infratech Q1 net profit at Rs2099.40 mn

GTL EBITDA at Rs76.1mn

Greaves Cotton Q1 net profit at Rs320mn

International News

Brookfield Infrastructure to acquire remaining 45% Of AVN Toll Road: reports

Brookfield Infrastructure announced that the company and its institutional partners have executed definitive documents to acquire the remaining 45% of the Autopista Vespucio Norte or AVN toll road that they do not currently own for approximately $590 mn, according to reports.

Reports stated that Brookfield Infrastructure will participate by investing approximately $165 million, which will result in an aggregate ownership interest in AVN of 51% upon completion.

The transaction is expected to close in October of 2012, says report.

Global Infrastructure Partners raises $7.5 bn fund: reports

Global Infrastructure Partners Ltd, owner of London's Gatwick Aiport and of pipelines formerly owned by Chesapeake Energy Corp had raised about $7.5 bn (4.7 bn pounds) for its second infrastructure fund according to reports.

Reports stated that GIP, founded in 2006 with backing from General Electric Co and Credit Suisse Group AG, raised $5.6 bn for its first infrastructure fund, targeting assets in the transport, energy, utilities and waste sectors.