style="color: #3b339d">Top Stories 

Govt panel wants hike in power, rail tariff

A government panel on infrastructure has recommended an increase in electricity rates and railway fares to attract more private investment in the sector, reports said.

The committee, headed by HDFC chairman Deepak Parekh, has also suggested involving private players in modernisation of railway stations, construction of elevated suburban corridors in Mumbai, development of new freight corridors, high-speed rail corridors, and manufacturing of diesel and electric engines, coaches and wagons, apart from increase in railway fares.

Parekh added that the regional governments should provide subsidy for electricity distribution. The panel also sought 100% foreign direct investment (FDI) in the Telecom sector. The current limit is 74%.

The committee of the Planning Commission has also asked the government to set up Expressway Authority of India to develop high speed expressways outside the National Highway Authority of India, which opts for conventional contract system.

To end supply problems in the power sector, the panel recommended setting up of another PSU to manage and award coal contracts under the Public Private Partnership mode. The proposal has been opposed by Coal India Limited. The panel had submitted its report to the Prime Minister Manmohan Singh and had projected an investment of Rs. 51.46 lakh crore in the 12th Plan period.

Tata Power’s coal imports may increase 5-fold to 50 MT by 2020

Tata Power’s coal imports may rise 5-fold to 50m tonnes by 2020 from 10mn tonnes now, reports said citing the company’s Managing Director A.K. Sardana.

The company is also looking to acquire coal assets overseas in US, Colombia and Africa to meet its increasing fuel demand, he added.

Speaking in the capital, Sardana said that Tata Power was considering a plan to set up power projects in Vietnam, Myanmar, Africa and South Asia, reports added.

Tata Power plans to start the third 800MW unit at the Mundra Ultra Mega Power Project (UMPP) in the next 15 days after commissioning the first in March this year followed by the second in July.

The Mundra UMPP is a 4,000MW project that would comprise of five units of 800MW each.

In Focus Stories

BHPV-BHEL merger likely to get delayed: reports

The merger of Bharat Heavy Plate and Vessels Ltd (BHPV) with BHEL is is likely to get delayed by six months as it requires a Union Cabinet's approval, according to reports.

Reports stated that  merger, has been recently approved by the BHEL Board which is scouting for a legal firm to facilitate the merger.

The formal procedures for the merger have been completed and the file has been forwarded to the Prime Minister’s Office, reports said

Domestic News

Suzlon bags order from Surat Municipal Corporation

Suzlon Group, the world's fifth* largest wind turbine supplier, announced its second consecutive order from Surat Municipal Corporation (SMC) to set up, operate and maintain a 8.4 MW wind energy project in Gujarat. SMC holds the unique distinction of being India’s first civic body to set up a wind power project in the country and sets an example for other civic bodies across the country.
 
The contract was awarded through the tender process. The project will comprise of four units of Suzlon’s S95 - 2.1 MW wind turbine and will be commissioned in early CY 2013.

Allow 100% FDI in telecom, says infra panel

The Deepak Parekh committee on infrastructure finance has suggested increasing FDI limit in the telecom sector to 100%, according to reports.

Reports stated that committee submitted its interim report to the Prime Minister.

The committee  wants proposal to introduce regulatory reforms through an overarching legislation to be implemented, reports says.

Deepak Parekh, chairman of HDFC, reported that Regulators should be more responsive and  should understand the need of the sector.

L&T Construction bags orders worth Rs14.39bn

L&T Construction has secured new orders valued over  Rs14.39bn in September 2012.
 
The Buildings & Factories IC of L&T Construction has bagged new orders worth  Rs14.39bn from leading developers for the design & construction of major residential building projects in the National Capital Region, Delhi.
 
L&T Construction’s Buildings and Factories IC (B&F IC) has been offering pioneering solutions in residential buildings that cover design and construction of large townships and high-rise apartments.

Mitsubishi Heavy denies interest in L&T shipbuilding unit

Mitsubishi Heavy Industries Ltd has denied reports to buy a controlling share in a shipbuilding unit of Larsen & Toubro Ltd.

Earlier reports stated that Japanese shipbuilder and heavy machinery maker plans to buy at least a 51% stake in L&T Shipbuilding by 2015 as part of efforts to increase cost competitiveness.

In December, Mitsubishi signed a pact to provide technical assistance to L&T Shipbuilding.

Suzlon Energy to extend maturity dates for convertible bonds

Suzlon Energy Ltd has announced that the Company had issued separate notices each dated September 18, 2012 convening meetings of the holders of the October 2012 Zero Coupon Bonds and the October 2012 Interest Bearing Bonds for the extension of maturity dates of each of the series of Bonds from October 11, 2012 to February 11, 2013.

RPower lights up boiler for 2nd unit of Butibori project

CRISIL reaffirms rating of Reliance Infrastructure

Srei Infrastructure sells 38% stake in Quippo Prakash: reports

Essar Power’s Mahan project yet to get coal supplies: reports

PROMAN-REMco launches Vertical Shaft Grinder

Mytrah Energy plans to invest Rs300bn: reports

Tantia Constructions bags order worth Rs. 1.2 bn

IVRCL moves down after Essel Group offloads shares

International News

Vestas sacks CFO over two deals in India

Following an approach from the Danish newspaper Jyllands-Posten, stating that on 3 October 2012, they will bring an article regarding Vestas’ termination of its former CFO’s severance agreement, the following information can be given: The Board of Directors of Vestas Wind Systems A/S has on 6 September 2012 terminated the severance agreement with Henrik Nørremark.

The reason for this unusual step is that the management of Vestas has become aware of two agreements in India concluded by Henrik Nørremark on behalf of Vestas in the autumn of 2011, which neither the Board nor the CEO knew about. Henrik Nørremark seems to have entered into these agreements in violation of the company's internal provisions regulating his power to bind the company as well as the company’s interests in general.

Through his dispositions, he appears to have caused Vestas a loss of EUR 4m, possibly up to EUR 18m. By all appearances, the EUR 4m has been lost, since Henrik Nørremark has waived this amount as part of one of the agreements, while it is being examined to which extent the other EUR 14m, which has been transferred to two Indian companies, might be reversed.

Vestas has made provisions to cover any potential losses as mentioned above.

The decision to terminate the severance agreement with Henrik Nørremark was made after the Board’s nomination and compensation committee had conducted a thorough audit and legal investigation that brought these dispositions to light.

Chairman of the Board of Directors, Mr Bert Nordberg, says: "The investigations we have carried out so far show that both the previous and the current Board and the CEO have been kept unaware of these transactions."

ABB bags order worth around $115 mn: reports

ABB Ltd has reportedly bagged an order worth around $115 million from Saudi Electricity Company to provide a flexible alternating current transmission system solution to improve its railway interconnections.

This is ABB's biggest flexible alternating current transmission system (FACTS) order ever, and it was booked in the third quarter, says report.

Edison to restart part of San Onofre nuclear plant: reports

Southern California Edison is planning to restart one of the two reactors at its San Onofre nuclear plant, which has been shuttered for eight months over safety concerns, according to reports.

There were reports that plant's Unit 2 reactor was offline for routine inspections and maintenance when a steam generator tube in Unit 3 sprung a leak on Jan. 31.

U.S. Nuclear Regulatory Commission dispatched a special inspection team to the plant and ordered Edison to keep the plant shut down, says report.

Vestas on track with development of V164-8.0 MW turbine

Alstom gets railway contract in Kazakhstan: reports

Global Infrastructure raises $8.25bn for fund: reports