Power and Infra

 HCC and PUNJ to remain dull for this year 
Ahmedabad  30 April, 2012

HCC and other real estate companies are likely remain dull for this quarter unless the interest cut or a strategic policy support  is announced by the government. 

HCC with consolidated loss of above Rs 700 crore may further slide and make a new 52 week low. On HCC’s books there is a standalone debt position of Rs 4,000 crore. On consolidated basis, long-term, short-term and trade payable debts stands at Rs 9,000 crore.

Company is hoping on the restructuring proposal and phase II of Lavasa. In the current environment prices are going to under check.

Punj Lyod will also remain lack lustre because of loss making overseas projects.

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Budget 2012  addresses  Power Generating Companies  but not BHEL
Ahmedabad  17 March, 2012

Thermal Power Generation companies have been most benefitted  from the 2012 budget. The Finance Minister was generous to resolve their fuel cost issues and  also have kept option to get cheaper equipment supplies from China and Korea.

Steam coal has been exempted from the whole of Basic Customs duty, while the Additional Customs duty for the same has been reduced to 1%. As part of efforts to address fuel supply issues in the power sector, the FM said state-run Coal India has been asked to sign Fuel Supply Agreement "with power plants that have entered into long-term Power Purchase Agreements with discoms (power distribution companies) and would get commissioned on or before March 31, 2015".

The power plants envisaged on gas as fuel are benefitted in the form of exemption from Basic Customs duty for Natural Gas and Liquefied Natural Gas when imported for power generation and distribution by a power generation plant.

Domestic power generation equipment makers like BHEL and Thermax are not happy with  the finance minister's decision of not to increase import duty on core equipments. They were demanding  to increase import duty on power generation equipment to 19% to help local manufacturers compete with cheaper Chinese competition.

But the Union budget 2012-13 indicates status quo of the 5% duty on import of equipment for less than 1,000 megawatt, and almost no duty on capacity above 1,000 mw.  The domestic companies  will be forced to scale down production  and cut jobs.

The Chinese power generation equipment manufacturers have advantage due to low interest rates and an undervalued currency in the country.  In the Budget there is also no mention about development of the transmission sector and reform in the distribution sector.

GMR Energy raises Rs 500 cr debt from PFC
Ahmedabad  07 March, 2011

GMR Energy, the subsidiary of GMR Infrastructure, has raised around Rs 500 crore (US$ 1,100 million)  of debt from Power Finance Corporation (PFC) to achieve financial closure of its various power projects. The loan is to be repaid in 15 years with an average interest rate of 12% per annum.

GMR Energy has three completed power projects — a barge-mounted power plant at Kakinada, Andhra, and another in at Vemagiri, plus a 200-Mw power plant in Chennai. The company had a power generation capacity of 808 Mw by end-December 2010 and 11 projects with a total capacity of 8,448 Mw in various stages of development.

Sterlite Technologies to form  JV  with Jiangsu Tongguang Communication

Ahmedabad, 19th November,2010

To get the advantage of 3G technology market Sterlite Technologies Limited, an Indian provider of transmission solutions for the telecom and power industries, and Jiangsu Tongguang Communication Co., Ltd. (TGCl) have joined hands. The joint venture company will be known as Jiangsu Sterlite & Tongguang Optical Fibers Co., Ltd. (STFC). It will have manufacturing base in China,but market and distribute optical fiber used in the production of fiber optic cables globally.

TGCl is specialized in the total transmission solutions, engineering services and technical consultancy in optical cable and IT industries. This JV synergizes, Sterlite’s expertise in optical fiber technology and TGCl ‘s fiber cable manufacturing and market expertise in the China market. With the continued roll-out of 3G and FTTx, China and India would continue to develop and upgrade its telecommunication infrastructure ensuring long term demand for optical fibers.
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Gujarat  is likely to have  30 minor ports in next five years 0 minor

Ahmedabad, 21st October,2010
Around 30 minor ports are likely to be developed in Gujarat in next five years attracting a investment of more than Rs.90,000 crore. This would create about 60,000 direct jobs. ASSOCHAM has an MoU with state government to set up 50 skills improvement institutes.

Bank Consortium to finance  Rs 5,550 Cr (US$ 1,262 mn) to  Lanco Power 
Ahmedabad, 20th October,2010

Lanco Power, a wholly owned unit of Lanco Infratech received sanctions for the total debt of Rs. 5,550 crore for a power project in Chhattisgarh, the company said in a statement today.

The project cost is estimated to Rs. 6,941 crore ($ 1,578 mn). This would be financed with a debt of Rs. 5,550 crore ($ 1,262 mn) and equity of Rs. 1,391 crore ($ 316 mn). A consortium of ten banks and financial institutions with Power Finance Corporation in the lead are providing the debt required for the Chhattisgarh project.

The company has an equity capital of Rs. 240.78 crore ($ 55 mn) . Face value per share is Rs. 1. On BSE the stock reached high of Rs. 74.70 on 24 August 2010 and a 52-week low of Rs. 40.80 on 5 February 2010.

Suzlon annonces 168 MW new OrdersCoal India Ltd plan to acquire  mine outside India
Ahmedabad, 15th October,2010
Wind turbine manufacturer, Suzlon Energy (SEL), today announced new orders for developing 168.5 megawatt (MW) wind turbine capacity. These new orders are from a broad range of customers in corporate, PSU and small/medium business segments. The biggest of these is a repeat order from Gujarat State Fertilizer & Chemicals (GSFC) for 33 MW.

SEL has recently got big orders in September too. That includes Techno Group order of 202 MW and the Altrade Group order of 30 MW.

On the receipt of the orders, Tulsi R. Tanti, founder, Chairman and Managing Director of Suzlon said, “Our India business is roaring ahead. The diversification of the sector – from PSUs, IPPs and captive consumers – sets a solid foundation for our industry. We remain very optimistic about our home market and the orders we announce today from these prestigious customers are further evidence of that.”

Ahmedabad, 14th October,2010
Coal India chairman Partha Bhattacharyya announced in Mumbai that CIL plan to spend around Rs 6,000 crore for the overseas buy and is in process of evaluating a couple of proposals for buying stakes in overseas coal companies. The company is coming up with the largest IPO in Indian Corporate history.  It is expecting to raise around Rs 15,200 crore
Adani in talks to rope in CIL for Aussie project
Ahmedabad, 14th October,2010.
The Adani Group has entered into discussions with Coal India to jointly develop mines in Australia, which it bought recently for around Rs 12,600 crore. “Talks have opened up between an Adani Group firm and Coal India,” a market source said.

GMR Group close to get financial closure for Singapore Project.
Ahmedabad, 13th October,2010.
Island Power, owned by Bangalore based GMR Group has revived its 800 MW power project in Singapore. A consortium of banks in Singapore would finance this S$1.3 bn (INR 4,433 Cr) project. Total debt amount is expected to be S$ 850 mn (INR 2,899 Cr). GMR group took 100% stake in Island power in May,2009.  The project is expected to have the COD around Dec 2013.

Ahmedabad, 8th October,2010.
Lanco Infra by 2014 will have 9,000 MW power plants operative as per the plans of the company. The present operating capacity of the company is 2,100 MW. In next one year company will be adding another 1,900 MW capacity in operation.

This includes second unit of Udipi in Karnataka 600 MW followed by coal based Anpara project in UP which is of 1,200 MW. Thus, by the next year end the Lanco Infra would be having 4,000 MW of operating power plants.

The company is also working on five Hydro projects totalling 651 MW. These projects are in Himachal Pradesh, Sikkim and Uttaranchal. The biggest is 500 MW in Sikkim which is under construction. There are two more projects under development in Nepal totalling 503MW and one of 76 MW in Uttarakhand.

As per the media news quoting CFO of the company, Lanco Infra has recently completed the financial closure for another 4,700 MW projects. This includes one in Vidarbha which is the 1320 megawatts and other in Orissa.

The company also has expansion plans for Kondapalli project in in Andhra Pradesh and the Amarkanatak project in Chhattisgarh. With all these Lanco would be one major player in the Indian power industry.