Top Stories 

IMG recommends further deallocation of Coal Blocks

The Inter-Ministerial Group (IMG) on coal that has been reviewing progress of coal blocks met on 14th and 15th September, 2012 and deliberated upon the cases of ten blocks allotted to 23 companies.

The IMG has recommended deallocation of three blocks namely - Gourangdih ABC Coal Block allotted to M/s Himachal EMTA Power Ltd. & M/s JSW Steel Ltd. Rawanwara North Coal Block allotted to SKS Ispat and Power Ltd. and New Patrapara Coal Block allotted to M/s Bhushan Steel Ltd. and others.

The IMG has recommended deduction of Bank Guarantee (BG) in the cases of Nerad Malegaon Block allotted to M/s Gupta Metaliks & Power Ltd. & Gupta Coalfields Ltd. Lohari block allotted to Usha martin Ltd., Radhikapur East coal block allotted to M/s Tata Sponge Iron Ltd. & others, and Bijahan Coal Block allotted to Bhushan Ltd. The IMG did not recommend deduction of BG or deallocation in the cases of Moher and Moher Amlohri Blocks allotted to Sasan Power Ltd. and Pachmo Block allotted to Tata Steel Ltd.

IMG is scheduled to hold its next meeting on 17th September, 2012. The IMG had earlier heard the coal block allocates who were invited to make presentations from 6th to 8th September, 2012, and also obtained updated status paper from Coal Controller/Ministry of Coal.

In Focus Stories

Coal India board approves modified FSA: reports

Coal India Ltd board has approved the modified Fuel Supply Agreement (FSA) without price-pooling with 65% domestic coal and 15% imported coal at cost plus basis, according to reports

Reports stated that the company has agreed to pay penalties of 1.5-40 per cent depending on the extent it fails to supply the committed quantity of coal to power plants.

CIL director Mohan Das said that  the companies which have already signed the FSA will have to sign the modified FSA, report says.

Domestic News

Hindalco Industries achieves financial closure for Aditya Aluminium Project

Hindalco Industries Ltd has achieved financial closure for its Rs. 131.95bn greenfield Aditya Aluminium smelter project at Lapanga in Odisha. The project has been funded in a debt equity ratio of 75:25 with a debt component of Rs. 98.96bn.

The debt carries a tenor of 12.5 years and is priced at the SBI base rate plus 125 bps which presently works out to 11.25% p.a. SBI Capital Markets and IDBI Bank led the debt syndication, which saw a huge participation from almost the entire banking community with a total of 28 commercial banks and financial institutions participating in the transaction.

At the Rupee Loan Agreement signing held in Bhubaneswar on 17th September 2012, Mr. Praveen Maheshwari, CFO, expressed gratitude for the enthusiastic support lent to the Project by the participating lenders. He added that at a time when most companies are shying away from committing capex, Hindalco has chosen to stay its course and is delivering on its long term strategic objective.  Mr. Maheshwari further stated that development of Aditya Aluminium Project is a strategic step forward for Hindalco Industries, towards achievement of its long term vision and post stabilization this plant with a proposed annual aluminium production capacity of 359,000 tons and backed by captive power plant of 900 MW will be amongst the lowest cost producers globally.

JSW Steel to lose mining licence: reports

JSW Steel is likely to lose its mining licence for a coal block held jointly with Himachal EMTA, according to reports.

Reports stated that inter-ministerial group (IMG) has recommended forfeiting of the bank guarantees of the two companies.

The ministerial panel also reviewed the performance of seven coal blocks and recommended cancellation of one allotment

There are reports that IMG, however, did not recommend any action against the coal blocks owned by Tata Steel and Reliance Power.

SAIL sweeps Vishwakarma Rashtriya Awards

Global News

Xstrata Philippine copper-gold project on track

Xstrata PLC's $5.9 bn Tampakan copper-gold project in southern Philippines will meet its goal of starting commercial operations in 2016 despite delays in obtaining government approvals, according to reports.

The company is expecting President Benigno Aquino to issue a decision by the end of the month on its appeal for issuance of an environmental compliance certificate, report said.

China's Shandong buys stake in Aussie gold miner: reports

Chinese unit of Shandong Gold Group Co. Ltd is planning to acquire majority stake in Focus Minerals Ltd. through a placement worth 227.5 million Australian dollars (US$238.2 million), according to reports.

Reports stated that the deal is the latest in a series of moves by major Chinese producers to plug a domestic shortfall and shore up long-term supply for the gold-hungry nation.