CMYK
Macro Review
Economy Review . . . . . . . . . . . . . . . . . . .3
Foreign Direct Investment . . . . . . . . . . . . .8
Micro Review
Indian Investment Abroad . . . . . . . . . . . .9
Policy Development . . . . . . . . . . . . . . . .10
New Projects Review . . . . . . . . . . . . . . .13
Project Tenders Review . . . . . . . . . . . . . .14
Domestic & Overseas Orders . . . . . . . . .16
Sectoral Review
Industrial Sector
Food Products . . . . . . . . . . . . . . . . . . . . .17
Textiles . . . . . . . . . . . . . . . . . . . . . . . . . .17
Chemicals . . . . . . . . . . . . . . . . . . . . . . . .17
Drugs, Biotech . . . . . . . . . . . . . . . . . . . .18
Paper . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Non-metallic Mineral Products . . . . . . . .18
Metallurgy . . . . . . . . . . . . . . . . . . . . . . .19
Machinery & Electronics . . . . . . . . . . . . .21
Automobiles . . . . . . . . . . . . . . . . . . . . . .22
Energy Sector
Mineral Fuels . . . . . . . . . . . . . . . . . . . . .23
Petroleum Products . . . . . . . . . . . . . . . . .25
Oil & Gas Pipelines . . . . . . . . . . . . . . . . .26
LNG Storage & Distribution . . . . . . . . . .26
Electricity . . . . . . . . . . . . . . . . . . . . . . . .27
Transportation Services
Roadways . . . . . . . . . . . . . . . . . . . . . . . .35
Railways & Urban Transportation . . . . . .38
Shipping Infrastructure . . . . . . . . . . . . . .41
Aviation Infrastructure . . . . . . . . . . . . . .42
Other Services
Hotels & Restaurants . . . . . . . . . . . . . . .44
Hospitals . . . . . . . . . . . . . . . . . . . . . . . . .46
Tourism & Recreation . . . . . . . . . . . . . . .47
Commercial Complex . . . . . . . . . . . . . . .47
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . .48
Real Estate . . . . . . . . . . . . . . . . . . . . . . .48
IT Parks . . . . . . . . . . . . . . . . . . . . . . . . .50
Special Economic Zone . . . . . . . . . . . . . .50
Water & Waste Management . . . . . . . . .51
Irrigation . . . . . . . . . . . . . . . . . . . . . . . . .51
Special Feature
Cement . . . . . . . . . . . . . . . . . . . . . . . . .52
Statistics
Project Investment, FDI, IIP, etc . . . . . . .58
ProjectsToday
(Division of Economic Research India Pvt. Ltd.)
Sterling House, 5/7, Sorabji Santuk Lane, Off Dr. Cawasji Hormasji Lane, Marine Lines, Mumbai - 400 002, Tel: (022) 3027 1755
Fax: (022) 3027 1733 E-mail: info@projectstoday.com, Website: www.projectstoday.com
A MONTHLY UPDATE ON PROJECT INVESTMENT
February 2011
Dear Reader,
According to the latest estimates released by the
CSO, Indian economy is expected to clock a growth
rate of 8.6 per cent in the fiscal 2010-11. The
government has also re-iterated its intensions to
spend USD one trillion on infrastructure during the
12th Plan period.
All this augurs well for sectors like cement and
metallurgy. As of March 2010, the total cement
manufacturing capacity of India was 282 million tpa.
According to a study by ProjectsToday conducted in
January 2011, the total cement manufacturing of India
is expected to surpass 360 million tpa by 2012 and 400
million tpa by 2013. For details please read the
Cement Profile presented in this issue.
The study further points our that though in the short
term the cement sector will see demand-supply
imbalances, which might put pressure on the margins
of the cement producers, the long term prospects
look bright. Among the irritants listed by cement
manufacturers the high indirect tax levied by the
government not only on the final product but also on
the key raw materials used by the industry figures
prominently. They expect the finance minister to give
some reprieved to the industry in his current year's
budget.
According to the RBI, in the first nine months of the
fiscal 2010-11 credit flow to the services sector
increased appreciably. In the Manufacturing sector,
Engineering, Food, Textiles, and chemicals sectors
received good amount of bank loans. Though this
trend augurs well for project investment, RBI's recent
decision to hike the policy rates of repo and reverse
repo rates might act as a dampener to the project
promoter.
Team
ProjectsToday
©Economic Research India Pvt. Ltd, 2011
This document is meant for private circulation only. Information
contained in this document has been obtained from sources that are
considered trustworthy and reliable by Economic Research India Pvt.
Ltd (ERIL). ERIL bears no responsibility for the accuracy or
authenticity of any information contained in this document, or for any
loss arising out of the use of information contained in this document.
This document is protected by copyright. Reproduction of the
contents of this document, in whole or part, and in any medium, is
strictly prohibited. Reproduction of limited portions of this document
may be permitted, subject to prior approval of ERIL.
CMYK
CMYK
Economy Review
Q3 review of monetary policy
Short-term policy rates raised by 25 basis points
As was widely expected, RBI raised the short-term
policy rates of repo and reverse repo by 25 basis
points to 6.5 per cent and 5.5 per cent respectively
in the third quarter review of monetary policy
announced on 25 January. This was the seventh rise
since February last that lifted the repo rate by 150
basis points and reverses repo by 225 basis points.
Cash reserve ratio (CRR) and bank rate remain at 6
per cent. Factoring current tight liquidity situation,
the apex bank has decided to extend LAF support to
banks of up to one per cent of their net demand and
time liabilities (NDTL) from 28 January to 8 April,
and also continue to hold the second LAF (SLAF) on
a daily basis till this date. For any shortfall in
maintenance of the SLR arising, while availing this
facility, banks may seek waiver of penal interest
purely as an ad hoc measure.
The projection for GDP growth has been kept
unchanged at 8.5 per cent, but with an upward
bias. On Inflation, RBI expects price pressures on
account of demand-supply imbalances to persist in
respect of some commodities; and considering the
increase that has already occurred and the emerging
domestic and external scenario, the baseline
projection of WPI inflation for March 2011 is
revised upwards to 7 per cent from 5.5 per cent.
The projection for M3 growth has been retained at
17 per cent (the current growth rate being 16.5
percent), and that for non-food credit at 20 per cent
(notwithstanding the current 24.4 per cent y-o-y
expansion). These are only indicative figures and
not projections, the apex bank has emphasised.
Credit expansion in the recent period has been
rather sharp, far outpacing the expansion in
deposits, which is not sustainable. Thus, though RBI
will endeavour to provide liquidity to meet the
productive credit requirements of a growing
economy, at the same time it would like to see that
credit growth moderates to conform broadly to the
indicative projections, in order to prevent any
further build-up of demand side pressures. In fact,
RBI will constantly monitor the credit growth and, if
necessary, it will engage with banks which show an
abnormal incremental credit-deposit ratio. By the
way, credit growth, which was earlier driven by the
infrastructure sector, was becoming increasingly
broad-based across sectors and industries. Credit
flow to the services sector increased significantly for
transport operators, tourism, hotel and restaurant
Economy Review
and commercial real estate, besides retail housing
and personal loans. As regards industry, apart from
infrastructure, increase in credit was significant for
metals, engineering, textiles, food processing and
chemical and chemical products.
The projections as outlined above are stated to be
subject to several risks; the foremost being food
inflation, which has remained at elevated level for
more than two years, notwithstanding the normal
monsoon this year, and the prospect of it spilling
over to the general inflation process is rapidly
becoming a reality. The other risks include relatively
low but persistent price rise in non-food
manufactured products, widening current account
deficit, which is expected to touch unsustainable
level of 3.5 per cent of GDP this fiscal, vulnerability
of capital flows, lack of robustness in fiscal
consolidation that has benefited from one-off
receipts in the current fiscal; and likely overall
uncertainty about economic stability that confront
particularly investors.
In passing, global growth prospects have
improved in recent weeks. The recovery in major
advanced economies, which had weakened during
Q2 of 2010, regained strength in Q3 of 2010.
Real GDP growth in the US, which had moderated
3
Projects Today
from 3.7 per cent in Q1 of 2010 to 1.7 per cent in February 2011
Q2 of 2010, improved to 2.6 per cent in Q3.
Corporate capital spending and retail sales in the
US have improved. While uncertainty persists in
the Euro area and Japan, the baseline outlook for
both is improving. Growth in EMEs has remained
strong, supported largely by domestic demand. In
advanced economies, the earlier fears of deflation
have given way to early signs of inflation. In
EMEs, inflation has accentuated significantly in
the recent period.
Given that the economy growth has moved close to
its pre-crisis trajectory as reflected in the 8.9 per
cent GDP growth during H1, balance of risk has
tilted from growth prospects towards
intensification of inflation. In view of this, the
stance of the present monetary policy is inflation-
centric; intending to contain the spill-over of high
food and fuel inflation into generalised inflation
and anchor inflationary expectations; maintain an
interest rate regime consistent with price, output
and financial stability; and manage liquidity to
ensure that it remains broadly in balance, with
neither a surplus diluting monetary transmission
nor a deficit choking off fund flows.
CMYK
Economy Review
IIP growth rate slides to 2.7 per cent in
November
If the 11+ per cent expansion in index of industrial
production in October had gladdened the analysts,
the steep reversal in the feat in November that
recorded only 2.7 per cent rise, the lowest rate over
past 19 months, must have saddened their hearts.
Still, all was not lost. Capital goods production that
surrogates projects investment, maintained double-
digit mount, even while suffering the setback. By
the way, IIP has been in the public eye obviously for
wrong reasons for quite some time. This is because
of firstly highly tentative nature of IIP data under
Quick Estimates, with final numbers under
first/second revisions in past six months resulting in
around 8 basis points upward revision to 9.6 per
cent, and secondly IIP numbers with outdated base
of over a decade and half of 1993-94, are getting
increasingly suspect of their ability to mirror current
conditions.
The rot in IIP during November was caused mainly
by manufacturing that expanded 2.3 per cent, one-
fourth the rate in October, though mining also
decelerated from 6.5 per cent to 6 per cent and
electricity from 8.8 per cent to 4.6 per cent.
4
Projects Today
Cumulatively, the growth rate in overall IIP slid back
to a single-digit 9.5 per cent, which still mirrored an
improvement over 7.5 per cent during April-
November 2009. Heavy weight manufacturing
February 2011 grew 10 per cent, but mining (8 per cent) and
electricity (4.5 per cent) grew less.
Among the 17 manufacturing industries, as many as
eight reported lower production in November, the
largest number in recent months, and only two
industries, namely leather & leather products (12.6
per cent) and basic metal and alloy industries (8.6
per cent) improved upon the first seven months
performance. Basic chemicals & chemical products;
rubber, plastic coal & petroleum goods, and food
products recorded y-o-y decline in production
during the month. The increase in production index
of electrical, non-electrical machinery dropped to
5.8 per cent, which pulled down the average rise to
16.8 per cent; and transport equipment & parts
slowed to 15.6 per cent though the average
increase continued to be a scorching 27.3 per cent.
Cement production declined 11.6 per cent during
November, only the second decline in a month and
the sharpest one for over 48 months. The
cumulative production during April-November was
up by 4.1 per cent, one third the pace in the similar
period of 2009-10. Finished steel (carbon)
production increased by 4.4 per cent in November
and 6.9 per cent cumulatively.
Capital goods production expanded 12.6 per cent,
over 21.5 per cent in October and 11 per cent in
November 2009. Cumulatively, the rise in
production index worked out to 22.5 per cent, over
three times the pace in the first eight months of
2009-10. Basic goods increased by 4.5 per cent and
intermediate goods by 2.4 per cent in November,
showing steep declines from the pace of October.
Consumer goods declined for the first time in the
current fiscal, following a steep 6 per cent fall in
consumer non-durables and a drop in the growth
rate to 4.3 per cent, one-seventh the rate in
October and in fact the lowest rate over 18 months.
In terms of some details given out by CSO, items
showing steep declines in November include 'Spun
pipes' [(-) 38.2%], 'Railway/concrete sleeper' [(-)
34.9%] and 'Particle board' [(-) 29.6%] in case of
Intermediate goods,'Rice bran oil' [(-) 57.9%] and
'Hair oil/ayurvedic hair oil' [(-) 42.5%] in case of
Consumer non-durable goods, and 'Agricultural
implements' [(-) 55.6%] and 'Industrial machinery'
[(-) 46.7%] under Capital goods.
The IIP has seen marked deceleration in the growth
rate to 7 per cent average during October-
November, from 9 per cent during July-September
and 12 per cent during April-June. With creeping
escalation in input costs and borrowing rates, the
factory sector is unlikely to show much vigour in the
next four months, where it will also have to contend
a still higher 16 per cent average base year
expansion. As a result, we expect average rise of 8
per cent over the fiscal in the industry, against 10.5
per cent during 2009-10.
Infrastructure Performance
The composite production index of six infrastructure
industries, which together comprise 26.7 per cent of
broader index of industrial production (IIP)
increased by 2.5 per cent in November, the lowest
rate over 21 months. The cumulative growth rate
over the first eight months of the ongoing fiscal
worked out to 4.5 per cent (4 per cent).
The infra industries performance is swayed a lot by
the heavyweight electricity that constitutes around
two-fifths in weight in the composite index. Thus,
the November slide reflected mainly the rot in the
growth rate in electricity to 3.3 per cent, from 8.3
per cent in October. The growth rate improved
marginally to 4.3 per cent in December, according
to data from CEA. The power generation and its
availability to end-users has remained a concern, as
with PLF showing practically no improvement,
growth in generation has come from new capacity
only. Thus, during the first nine months of the
CMYK

Economy Review

ongoing fiscal, while generation capacity has gone Non-food credit shoots up
up by 6.5 per cent, the generation has increased by Non-food credit by banks shot up by `1.2 trillion
4.5 per cent. during the fortnight ended 31 December, the
Coal, another primary fuel input, is also recording sharpest increase in a fortnight during the current
pale feat growing at only 0.6 per cent, against 8 per fiscal. The cumulative increase in non-food credit
cent average increase in the preceding two fiscals. during the first nine months of the current fiscal
Barring a 4.5 per cent rise in July, the other seven worked out to `5.01 trillion, which was twice of
months have together seen a decline. Crude oil that `2.49 trillion during the corresponding period of
runs refineries has increased 17 per cent in 2009-10. Bank deposits increased `4.79 trillion over
November. More importantly, it was the fifth month this period; which when viewed against `5.18
of a double-digit rise, which has come after almost trillion rise in non-food credit, `0.65 trillion in SLR
zero growth over past several years. The investment and `0.315 trillion in cash balances with
production in Petroleum refineries that drives RBI, has set the background for the liquidity crunch
petrochemical industries and transportation has in the banking sector.
stagnated during the current fiscal, which will imply Broad money (M3) growth retarded to 16.5 per
that domestic crude has replaced costlier imported cent annually by 31 December, from 17.9 per cent
crude to some extent. a year ago.
In the category of core industries, which support
construction and project investment, cement Interest rates
production, declined 17 per cent during November, Weighted call money rates in call money market
against 17 per cent rise in the preceding month, ranged 6.09-6.73 per cent in the first 24 days of
which brought down the average growth over the January 2011, against 5.65-6.97 per cent in
period to 4.1 per cent, nearly one-third the rate a December, and 2.71-3.37 per cent in this month a
year ago. This is perplexing as dispatches have year ago.
matched production and marketing is no problem
for the industry, given demand for infra build-up as
also upkeep. Finished steel (carbon) production was
up 4.4 per cent in November, one-third the rate in
October that witnessed sharp upward revision from
Jan-10
Weighted Call Money Rates (%):
Jan 2010-11
2.71-3.37
5
Projects Today
6.2 per cent earlier. In fact, the growth rates in steel Feb-10 2.56-3.28 February 2011
production have witnessed sharp upward revisions Mar-10 2.53-4.29
in the current fiscal, which have lifted the average
Apr-10 2.80-3.86
rate during April-October to 7.2 per cent, from 4.2
per cent under provisional estimates. May-10 3.23-5.58
The country's 13 major ports handled approximately Jun-10 4.14-5.58
51 million tones of sea freight during December,
showing around 10.3 per cent growth over Jul-10 4.43-5.88
November. The feat reflected reversing the 5.5 per Aug-10 4.39-5.84
cent decline in volume in November over October, Sep-10 3.79-7.04
the month that had seen workload go up by a sharp
9.7 per cent over September. Cumulatively, the Oct-10 5.54-7.67
growth rate in freight at the ports improved to 1.1 Nov-10 6.16-7.11
per cent from 0.83 per cent till November, though it
Dec-10 5.65-6.97
was only one-fifth the pace in the similar period of
2009-10. January 2011 (up to 24 Jan) 6.09-6.73
Railway revenue earnings went up by 7.73 per cent
during April-December 2010 to `67,881 crore. The The cut-off rate for 91 days T-bills worked out to
total goods earnings have gone up from `42,522 7.14 per cent in its auction on 12 January, whereas
crore to `45,290 crore, showing an increase of 6.51 that on 364 days T-bills worked out to 7.50 per
per cent. The total passenger revenue earnings cent. The implicit discount rates on commercial
during the first nine months of the financial year papers floated in the second half of January ranged
were `19,205 crore (+9.76 per cent). The revenue 8-12.10 per cent, against 8-16 per cent in the first
earnings from other coaching amounted to `1890 fortnight. The longer term GoI securities were
crore (+10.94 per cent). traded at 8.1-8.56 per cent YTM in the secondary
CMYK
Economy Review
market in the week ended 14 January.
Base rates of major banks ranged 8-9 per cent by 7
January. Deposit rates of more than one year
maturity were at 7-8.75 per cent (6-7.5 per cent a
year ago).
`was traded at 45.30/31 per US$ on 14 January.
Rupee appreciated against all major currencies,
barring Yen against which it showed 9 per cent
depreciation.
Central Govt finance
The gross fiscal deficit of Central government at
`1.87 trillion during April-November 2010 was 39
per cent lower than that in the similar period of
2009-10 and it accounted for 49 per cent of the
budgeted amount for the fiscal, much lower
compared to 76 per cent in the preceding fiscal. The
performance was helped by a massive non-tax
revenue receipt of over `1 trillion from auctions of
3G spectrum and BWA licences that yielded a huge
surplus in June, as also by noticeable improvement
in deficits during September-November, due to
lower disbursements. Revenue deficit of `1.40
trillion was a little more than half that a year ago.
Tax receipt has been running markedly higher in the
6
Projects Today
current fiscal, with collection working out 31 per
cent more over April-November. Corporate tax was
up 20 per cent and personal income tax 12 per cent;
whilst customs duty shot up 64 per cent and excise
February 2011 duty 37 per cent. Service tax receipt was up by 19
per cent. Disbursements ran lower for the third
month in November, which brought down the
cumulative rise to 11 per cent till No vember, from
30 per cent till August. Plan account expenses rose
21 per cent; plan capex was up by 27 per cent and
revenue disbursement that include grants for capital
assets creation by 20 per cent. Non-plan spending
expanded at a modest 7 per cent.
Foreign Trade
The country's exports increased 27 per cent to $140
billion during April-November. Imports increased by
24 per cent to $222 billion. While oil imports
increased by 21 per cent to $65 billion, non-oil
import rose 25 per cent to $157 billion, trade deficit
worked out to $ 82 billion ($ 68 billion).
Export of engineering goods increased 46 per cent
to $23 billion during H1, while at $ 23 billion
machinery import was 1 per cent lower.
Balance of Payments
Exports and imports on payments basis, against
invoice basis as compiled by DGCI&S decelerated
during July-September as in the preceding quarter.
Thus, trade deficit in merchandise transactions
worsened by an identical 20 per cent for the second
straight quarter. Support from invisibles comprising
incomes from services, workers' remittances, etc
remained subdued; as a result of which current
account deficit (CAD) in BoP compilations by RBI
indicated 72 per cent y-o-y shoot up to $15.8 billion
during Q2. The feat also indicated deterioration
from $9.2 billion CAD in the preceding quarter. In
fact, the CAD for the quarter was the highest
quarterly amount so far in the new millennium. The
deficit in current account comprising broadly export
and import of goods and services, as a ratio of GDP
at market prices darted to 4.1 per cent from 3.2 per
cent in the preceding quarter, and 3 per cent a year
ago. CAD mirrors import of equivalent amount of
foreign capital in the form of goods and services
that supplements domestic savings available to
finance capital formation in the country. The
aggregate net service income improved to $10.5
billion, from $8.9 billion in the preceding quarter
and $7.7 billion in the second quarter of 2009-10.
Software export continued to be strong at $12+
billion, and non-software business incomes caused a
lower draft of $ 2 billion, against $3.9 billion in the
preceding quarter or the quarter a year ago. Private
transfers, broadly workers' remittances, were a tad
lower at $13 billion, and investment income
witnessed a greater net outgo of $ 3.9 billion,
relative to $1 billion in the preceding quarter and
$2.6 billion during July-September 2009.
Capital inflows assessed at $20.5 billion during July-
September 2010, comprised almost entirely of
volatile FII investment in bourses ($18.8 billion),
which showed 100 per cent shoot-up over the
preceding quarter, and were five times that a year
ago. More permanent FDI ($2.5 billion) was at the
same time one-third that in the preceding quarter.
FDI into the country declined from $10.9 billion in
Q1 to $6.7 billion in Q2, whereas FDI overseas by
India Inc went up from $3.4 billion to $4.2 billion
between these periods. External commercial
borrowing at $3.7 billion was three times the
amount in Q1. Short term trade credit was $2.6
billion ($1.2 billion), though it was less than $4.2
billion in Q2 in 2009-10. Overall, forex reserves due
to BoP transactions, disregarding valuation effects
of currencies, increased by $3.3 billion, nearly one-
third of $9.4 billion in Q1, or 10 per cent less than
$3.7 billion in July-September 2009.
Trends over H1
Trade deficit in merchandise escalated 20 per cent to
$66.9 billion in H1 due to faster rise in imports
CMYK

Economy Review

compared to exports. Worryingly, services, private
transfers and investment income comprising
invisibles, yielded a lower $39.1 billion (-8 per cent),
which resulted in CAD doubling to $27.9 billion.
The CAD as a ratio of GDP at market prices went up
from 2.4 per cent to 3.9 per cent, which is a record
high level in recent years. Whilst service income was
slightly better, investment income, i.e. repatriation
of profits and dividend, saw more drain and
workers' remittances brought in less.
Capital inflows were assessed at $34.9 billion (+53
per cent). The net addition to reserves on account of
BoP transactions in current and capital accounts was
lower at $7 billion, as compared with $9.5 billion
during H1 of 2009-10. Whereas FDI was less than
into the country totaled $12.5 billion, whereas FDI
overseas was placed at $7.2 billion. External
commercial borrowing amounted to $6 billion ($0.7
billion) and short term trade credit $6.7 billion
(negligible decline).
Valuation of cumulative holding of forex assets by
RBI indicated $6.8 billion more dollars, which is only
around one-third of $19.8 billion rise in H1 of 2009-
10. Inclusive of BoP transactions and this notional
valuation increase, forex assets with RBI showed a
rise of $13.8 billion in H1, less than a half of $29.3
billion year ago. Valuation gain reflects the
depreciation of the US dollar against the major
currencies in RBI's stock of forex reserves, as the
apex bank keeps reserves denominated in US$.

Balance of Payment during H1 (US $ billion) External debt

2009-10 2010-11 The country's external debt was
Export 82.6 110.5 placed at $296 billion at the end of
September 2010, against $262
Import 138.4 177.5
billion at the end of March, and
Trade account -55.9 -66.9
$230 billion a year ago. The debt
Invisibles 42.5 39.1 comprised 54 per cent contracted
Current Account -13.3 -27.9 in USD, 19 per cent in Indian
Capital Account 22.8 34.9 rupees and the balance in Euro,
Foreign Investment (i+ii)
(i) Foreign Direct Investment
(ii) Portfolio Investment
30.3
12.3
18
29.1
5.3
23.8
Yen, SDR, etc.

Prices
The wholesale price index (WPI)-
7
Projects Today
External Commercial Borrowings 0.7 6 based inflation worked out to 8.43 February 2011
Banking Capital 1 0.8 per cent in December. The WPI
Short-Term Trade Credit -0.05 6.7 (with 2004-05 as the base year) of
primary articles was 16 per cent
External Assistance 1 3
higher, fuel & power 11 per cent
Other Items in Capital Account -10.2 -10.7
higher and manufactured products
Valuation Change 19.8 6.8 only 4.5 per cent higher.
Total 29.3 13.8 CPI for urban non-manual
employees and industrial worker
half of that a year ago, fickle portfolio investment ran 8.3-8.410.4 per cent higher in November.
increased from $18 billion to $23.8 billion. FII ERIL Index of Cost of Project Inputs was running 4.9
investment shot up 50 per cent to $22 billion. FDI per cent higher in November.
CMYK
Foreign Direct Investment
Foreign Direct Investment
FIPB Clearances:
In January 2011, the Union Ministry of Finance on
recommendations of the FIPB, ratified 19 FDI
proposals amounting to `4,340.77 crore.
Major chunk of the proposed investment through
FDI came from Tata Steels' proposal for issue of
warrants worth `1,100 crore as part of its fund
mobilisation programme.
Among other proposals, Mumbai based Future
Ventures India received approval to allot shares
worth `300 crore to foreign institutional investors
and non-resident Indians under its portfolio
investment scheme while Karur Vysya Bank has
been permitted to issue partly paid-up shares worth
`107.50 crore.
Also, Japan based Yorozu Corporation received
government nod for setting up a JV company for
the production of various automotive parts with its
contribution of `140 crore. EADS Deutschland
GmbH and LT have been permitted to bring in
foreign equity up to 26 per cent in a proposed JV to
undertake manufacturing, distribution and
8
Projects Today
marketing of defence-related products such as
electronic warfare and military avionics.
Wireless Broadband Business Services (Delhi) was
also given a go-ahead for inducting foreign equity
February 2011 worth `362.78 crore to carry out Internet and
broadband services.
The government deferred its decision on 16 FDI
proposals and rejected two. The deferred proposals
include those of Reliance Broadcast Network and
Essar Capital Holding. Among the rejected
proposals was that of B4U Television Network for
induction of foreign equity to carry out business of
up-linking a non-news and current affairs channel.
Policy Developments:
Government to relax FDI in agriculture
The Union Ministry of Agriculture and the
Department of Land Resources under the Ministry
of Rural Development have given in-principle
approval to a proposal of the DIPP to invite FDI for
developing non-arable land through better
technology into fertile and cultivable land.
At present, FDI in agriculture is not permissible,
barring allied sectors like horticulture, floriculture,
pisciculture, animal husbandry, aquaculture and
development of seeds, vegetables and mushrooms
under controlled conditions.
The proposal mooted by DIPP aims at handling the
problem of limited arable land and food shortage in
the country. Under this proposal to be classified as
investment in land and agriculture, a foreign
company could invest through an Indian company
under a JV or technical tie-up for imparting the
necessary technology for converting waste land into
fertile land. The investments could be in drylands
like deserts or marshy land or salty and barren land.
The Department of Agriculture has made following
suggestions to DIPP.
 The nature of technology to be used, its proven
track record in other countries and time-line of
the project will be essential before drawing up
the final blueprint for the proposal.
 In case of land owned by a farmer or individual
or an entity, he or it should be treated as a
stakeholder in the final proposal or venture.
 To examine the ownership issues, as to whether
any public sector undertaking, through the
Department of Land Resources or agriculture or
relevant state government, may be made a
partner in the project to take care of public
welfare.
 The DIPP before according approval should look
into the form of FDI. Whether it is through a
new company or existing company and whether
the operation of the existing company
supplements agriculture is to be looked into
before inviting FDI.
The Department of Land Resources will be mapping
such non-fertile land, which could be given on lease
to a company for inviting FDI.
CMYK
Indian Investment Abroad
BHEL to set up plant in Indonesia
BHEL is mulling to set up an assembling facility in
Indonesia.
The company is in the advanced stage of
negotiations with the Indonesia Government and
has proposed setting up an assembly facility with
knocked down materials supplied from India.
However, the proportions of investment and
location details have not been finalised.
Meanwhile, global companies like Sumitomo of
Japan, Vallourec & Mannesman of France and
Wyman Gordon of the US have expressed interest
to form JVs for making boiler tubes in India. Also,
BHEL has been asked to acquire a participatory
interest in the range of 26 per cent in the import
substitution projects.
Tata's SA unit to be ready by April
Tata Motors' assembly unit in South Africa is likely to
be completed by April 2011.
The initial capacity of the facility is expected to be
about 3,000-4,000 units of medium and small-sized
trucks. The company presently exports around
3,000 trucks to South Africa annually.
Presently, Tata has truck assembly units in Thailand
and Bangladesh.
R-Power plans investment in Indonesia
Reliance Power (R-Power) proposes to invest $5
billion (around `22,000 crore) in two projects, one
each in South Sumatra and Jambi provinces of
Indonesia. The project in South Sumatra will involve
development of a two billion tonne coal mine, a
200-km railway line, a port and a 2,000-MW power
project at a cost of $3.5 billion (approx `15,925
crore). The project in Jambi consists of another coal
mining unit, along with a port, railway line and a
small power plant. It will cost $1.5 billion (approx
`6,825 crore) without the power project.
Reliance Coal Resources, a subsidiary of R-Power,
will sign two MoUs with representatives of the
governments of both the provinces in New Delhi on
25 January 2011.
ICVL to bid for coal block in Mongolia
International Coal Ventures (ICVL) is planning to bid
for developing coal blocks in Tavan Tolgoi mining
deposit in Mongolia.
The mine has an estimated coking and thermal coal
reserves of 6.4 billion tonne. About 70 per cent of
the block is likely to be coking coal. ICVL is expected
Indian Investment Abroad
to bid for a share in the mine's western block with
reserves of one billion tonne.
Bidders from Japan and South Korea are also keen in
developing the Tavan Tolgoi deposit.
Jindal Poly Films secures coal block in
Mozambique
Jindal Resources (Mozambique), a subsidiary of
Jindal Poly Films, on 7 January 2010, acquired a coal
block in Mozambique.
The company has been allotted block-2 situated in
Moatize district, Tete Province. The licence covers
an area of 1,480 ha. The said block contains about
150 million tonne of coking/thermal coal resources.
Jindal Metal and Mining, another subsidiary of
Jindal Poly Films has signed an agreement with a
Mozambique based entrepreneur for prospecting,
exploration and mining of coal block with estimated
300 million tonne of resources.
RIL, Atlas Energy to explore new shores
Reliance Industries (RIL) along with US based Atlas
Energy is looking at options for expanding their
shale gas JV to new places including Canada and
Australia.
The company is likely to explore other shale gas
9
Projects Today
areas in Europe, Asia, within the US or in Canada February 2011
and Australia. However, it is likely to look at new
opportunities once the existing project stabilises.
In April 2010, RIL had announced its Marcellus
Shale JV with Atlas Energy of Pittsburgh,
Pennsylvania. RIL had acquired 40 per cent interest
in Atlas' core Marcellus Shale acreage.
NTPC solar power plants in Maldives
NTPC is keen to set up solar power projects in
Maldives.
Currently, the company is conducting the feasibility
study to explore the potential of Maldives for
setting up solar power projects. The final report is
expected by April 2011. However, NTPC did not
disclose the investment details of the project.
Meanwhile, NTPC plans to add 105 MW of
electricity by setting up four to five solar power
projects in India by 2013. These solar power
plants are to come up at its existing plants at
Anta (Rajasthan), Dadri (Uttar Pradesh),
Ramagundam (Andhra Pradesh), Sipat and Korba
(Chhattisgarh).
Tata, Riversdale to own Benga power
plant
CMYK
Indian Investment Abroad / Policy Development
Tata Steel and JV partner Riversdale Mining have
reached an agreement allowing them to acquire
Benga power plant project in Mozambique.
The JV has acquired 50 per cent option in the facility
from Elgas SARL for an undisclosed sum.
The $1 billion (approx `4,500 crore) coal based
power plant is expected to produce 500-600 MW in
its Phase I. While Riversdale is to hold 65 per cent
interest in the plant, Tata will have the remaining 35
percent. The power plant will source the coal from
the Benga Coal Project which is currently under
development.
Adani Group to set up rail, port project
in Indonesia
The Adani Group on 25 January 2011 signed an
MoU with the regional government of Sumatra
Selatan, Indonesia, and PT Bukit Asam Tbk to
develop rail and port project in the country.
The project will involve construction of a 250-km of
railway-line and port infrastructure needed for
transportation and ship loading of up to 60 million
tpa of coal. It is estimated to entail an investment of
$1.65 billion (approx `7,425 crore). The rail line will
help connect Tanjung Enim, the coal mining area to
10
Projects Today
Tanjung Carat, where Adani is setting up a port for
evacuating the coal.
PT Bukit Asam Tbk, will sell 60 per cent of the its
February 2011
Policy Development
Defence production policy unveiled
The Union Government on 13 January 2011
released the defence production policy.
The policy envisages creation of an eco-system,
which is conducive for private defence industry in
the country particularly for the small and marginal
enterprises. The government will give preference to
indigenous design development and manufacture of
defence equipment.
The policy will design and integrate platform
systems within the country in line with the sector's
long-term integrate perspective plan. All viable
approaches such as formation of consortium, JVs
and PPPs will be suitably explored.
The 'make' category of the defence procurement
procedure (DPP) 2011 will be simplified in such a
manner that it enables both public and private
industry to meet defence requirement as fast as
possible.
Further, the government plans to set up a separate
fund to provide for necessary resources to public
coal from Tanjung Enim area to Adani at a
government notified price and balance coal will be
used as contract carriage for Bukit Asam.
The projects will be executed by PT Adani Global, a
part of Adani Enterprises.
GVK to develop airports in Bali, Java
GVK Power and Infrastructure (GVKPIL), on 25
January 2011 signed two agreements with the
Government of Indonesia to develop greenfield
international airports in North Bali and
Yogyakarta, Java.
The agreement for the Bali airport is a three-way
agreement between Badan Koordinasi Penanaman
Modal (BKPM - a board set up by the Government
of Indonesia for the facilitation of domestic and
foreign investment), PT Pembangunan Bali
Mandiri (a SPV for airport development) and
GVKPIL.
The agreement for the Java airport is an agreement
between Angkasa Pura I (Indonesia Government-
owned airport operations and management
company), BKPM and GVKPIL.
The scope of work includes planning, design and
development, operations and management of the
airports along with all associated infrastructure, land
and commercial development.
and private sectors including the small and medium
enterprises to support innovation and research and
development activities to enhance the country's
cutting edge technologies in defence.
Haryana Industrial Policy 2011
Bhupinder Singh Hooda, Chief Minister of Haryana
on 30 December 2010 approved "Industrial &
Investment Policy-2011" of the state.
The highlights of the policy include the following:
 The policy endeavours to encourage
development of the hinterland areas of the state.
Using a Development Block as a defining unit,
the entire state has been divided into (A)
industrially developed blocks, (B) areas with
intermediate development and (C) industrially
backward areas.
 The Agro & Food Processing sector has been
accorded a special focus through a number of
incentives - viz reduction in Stamp Duty and
CLU (change of land use) charges for the units
CMYK
established in the backward areas, exemption
of market fee on fruits and vegetables, among
others. These measures are expected to lead to
promotion of industry in this sector and help
the farmers by way of increased demand and
better price realisation for their produce and
further catalyse localisation of the agricultural
output and economic development activities in
such areas
 The policy focuses on development of industrial
estates in backward areas with the involvement
of private sector under the PPP model. This
measure is expected to open new areas to
investment
 The existing Land Acquisition Intervention Policy
of May 2006 has been modified. The existing
policy provided for acquisition of land to the
extent of 25 per cent in the NCR areas and up to
50 per cent in rest of the areas. Under the new
norms, the state government will facilitate
acquisition of land for the private developers
mainly for the purposes of enabling contiguity of
project areas. The scale of intervention has been
reduced to the level of 10 per cent of the project
land in Category 'A' blocks, up to 20 per cent in

category 'B' blocks and up to 30 per cent in the
category 'C' blocks
Apart from state agencies like Haryana State
Industrial and Infrastructure Development
Corporation (HSIIDC), the state will also
involve the private sector in development of
industrial infrastructure in the backward areas
under the PPP model. This will help in taking
development/ investment opportunities to new
boundaries
 The policy also provides for transfer of
management of industrial estates developed
earlier by Haryana Urban Development
Authority and the Industries Department to
the HSIIDC to ensure up-gradation and
maintenance of infrastructure facilities and
services.
 Focused Sectors for investment include Agro-
based, Food Processing and Allied Industry,
Automobile and Automotive components,
Education and Skill Development, Electronics,
Information and Communication Technology,
Footwear and Accessories, Handloom, Hosiery,
Textile and Garments Manufacturing, Health and
Healthcare, Pharmaceutical Industry, Research
and Development and Frontier Technologies,
Transport Network and Services, Waste
Processing and recycling Industry
Policy Development
Coastal Regulation Zone notification
2011
The Union MoEF on 7 January 2011 notified the
Coastal Regulation Zone notification, 2011. The
new notification replaces CRZ 1991.
In the latest notification the 'no development zone'
is being reduced from 200 mtrs from the high-tide
line to 100 mtrs only to meet the increased
demands of housing of fishing and other
traditional coastal communities.
The notification allows slum projects to get a floor
space index (FSI) of 2.5 to four. Earlier, the FSI was
restricted between 1.25 and 1.6. The state
government will have to partner with builders in
redeveloping the slums and hold a minimum stake
of 51 per cent.
The builders redeveloping the structures under
CRZ II will get an FSI of between 2.5 and three,
instead of an FSI of two that was allowed by
CRZ 1991.
Under the new norms, projects above two lakh sq
ft (built-up area) will need the Union MoEF's
sanction. But before that, the state Coastal Zone
Management Authority (CZMA) will have to
evaluate the projects and recommend them to the
Union Government.
Under the new coastal regulations, open spaces,
parks, gardens and playgrounds indicated in
development plans within CRZ II shall be
11
Projects Today
categorised 'no-development zones' . No February 2011
residential or commercial use of such open spaces
will be allowed. However, an FSI of up to 15 per
cent will be permitted for the construction of
civic amenities, stadiums and gymnasiums meant
for recreational or sports-related activities on
such plots.
The new CRZ has special provision for Goa, Kerala,
Greater Mumbai and critically vulnerable coastal
areas such as Karwar and Kundapur in Karnataka,
Vembanad in Kerala, Coringa, East Godavari and
Krishna Delta in Andhra Pradesh and Gulf of
Mannar in Tamil Nadu among others. Besides, a
separate draft island protection zone notification
has been issued for protection of islands of
Andaman and Nicobar and Lakshadweep.
The ministry is likely to issue directives to the
Coastal Zone Management Authority in the
various states and Union Territories to identify all
CRZ violations within the next four months and
initiate necessary action within four months
thereafter.
Also, a River Regulation Zone is likely to be set up
to ensure that river beds are not destroyed by
construction activity.
CMYK
Policy Development
CCI okays extension of coal mines
conservation schemes
The Cabinet Committee on Infrastructure (CCI) on
13 January 2011, approved the extension of
schemes aimed at coal mines' conservation and
developing transportation of infrastructure in
coalfield areas for an undisclosed period.
Around `1,000 crore have been earmarked in the
current Plan period ending 2012 towards the
schemes. This includes an outlay of `690.75 crore
for conservation and safety in coal mines and
`395.58 crore for development of transportation.
Maritime Agenda 2020
The Union Government on 12 January 2011
unveiled Maritime Agenda 2020.
The new plan replaces the current National
Maritime Development Project (NMDP). The
perspective agenda entails an investment of `5 lakh
crore by 2020 to take the ports capacity to 3,200
million tonne. Out of the `5 lakh crore investments
proposed in the sector, `3 lakh crore will be in the
port sector, while the remaining `2 lakh crore will be
pumped in the Shipping sector.
The present `1.39 lakh crore NMDP plans, which
12
Projects Today
were to expire on 31 March 2012, will be replaced
by the new agenda. Of the 276 projects identified
under the NMDP through PPP mode, the
government plans to award 21 projects worth
February 2011 `13,952 crore projects in the current fiscal. Six such
projects to augment the capacity of 13 major ports
have already been awarded.
The government would set up two more major
ports in the country - one each on the East and West
coast, in addition to the existing 13 Major ports.
Besides, four major ports - two on the east coast -
Visakhapatnam and Chennai and two on the West
coast - Jawaharlal Nehru Port Trust and Cochin port
would be converted into major hubs.
New telecom policy soon
The Union Government is mulling to launch a new
telecom policy framework - National Telecom Policy
2011 - soon.
The new policy aims at introducing the slew of
measures that the government will introduce to
bring in the much needed transparency into the
telecom sector. In this regard, the government is
likely to hold discussions with the key stakeholders
to evolve a clear and transparent regime covering
licensing, spectrum allocation, telecom tariffs,
pricing, linkage with rollout performance, flexibility
within licences, spectrum sharing, spectrum trading,
mobile virtual network operators, unlicensed bands
and mergers and acquisitions in a technology-
agnostic environment.
It has been 11 years since the National Telecom
Policy was introduced in 1999 and many changes
have taken place thereafter.
SEZ policy of Chhattisgarh unveiled
The Chhattisgarh Government has unveiled the SEZ
Policy 2010 in a bid to widen its investment horizon
and attract more investors in different sectors. The
state cleared the policy on 6 January 2011 proposed
by the industry department.
Under the policy, exemption will be given to the
developers, industrial units and other establishments
within the zone from local taxes and levies.
However, they would have to pay the mandi tax
and land diversion fee.
The state government approved proposals to
develop two SEZs in Raigarh. The two SEZs will
house units related to Gems and Jewellery, and
information technology. The state intends to
develop solar energy parts SEZ as well in
Rajnandgaon district.
The department of industry and commerce had
been made the nodal department to facilitate the
development of SEZs under the new policy. A single
window system will be in place to clear all official
formalities from a single desk. A high-level
committee had also been formed to monitor and
supervise the development of SEZs.
Government to formulate bidding
norms for coal blocks
The Union Government is likely to finalise the norms
for the proposed competitive bidding of coal blocks
soon. Currently, the Union Ministry of Coal is giving
final touches to the regulations. The bidding process
for new coal blocks, currently being identified, may
begin from April 2011. In August 2010, the Mines
and Minerals Development and Regulation
Amendment Bill-2010 was passed which paved the
way for introduction of auction through competitive
bidding for allocation of coal blocks for private
companies for captive use. Hitherto, the coal block
allocation was done by a Union Government
screening panel that also included representatives
from coal bearing states.
The MoC is likely to request the proposed Group of
Ministers (GoM), being set up to resolve the
environment related issues affecting the coal sector,
to come up with an early solution.
The government has agreed to set up a GoM to
frame guidelines for mining in restricted forest areas
or "no-go" areas.
CMYK

New Projects Review

No big ticket startups in January 2011

bsence of big ticket projects in the crore. The number of startups proposed in this

A Manufacturing and Electrical sectors, the first

month of 2011 opened with 683 startups
worth `14,528 crore. The preceding month
sector fell by about 17 per cent when compared
with the December 2010 figures.
Of the 189 new roadways projects announced in
(December 2010) had seen 932 new projects worth January 2011, 60 were by the state government of
`42,396 crore being announced. In fact, the Jharkhand. These projects intend to upgrade the
`14,528-crore aggregate investments accrued in existing roadways with outlays ranging between
the month of January 2011 were the lowest fresh `1.5 crore and `5 crore.
investments seen in a month in the last two years. Of the 25 new water supply schemes announced by
Despite a sharp fall in total outlay, the various government agencies, the `323.44-crore
Manufacturing sector with `8,134 crore of fresh Dhanbad water supply scheme taken up by the
investment accounted for 56 per cent of the total Jharkhand Government and the `204-crore Basni
investment mooted in January. Nearly half of the water supply scheme project of the Rajasthan
investment proposed in this sector came from two Government were noteworthy.
projects announced in the Cement and Steel In the Hotels sector, IHHR Hospitality announced
sectors. three five-star hotel projects at Jaipur in Rajasthan,
The Aditya Birla group company,
UltraTech Cement, proposes to set up a
three million tpa cement unit in
Jhunjhunu district of Rajasthan at a cost
of `2,000 crore.
One of the largest private sector steel
producer, JSW Steel, intends to set up a
`4,025-crore cold rolling mill with a
capacity of 2.3 million tpa at Vijayanagar
in Bellary district of Karnataka.
13
Projects Today
The month-on-month fall was steep in February 2011
the Electricity sector. As against 59
startups worth `22,090 crore announced
in December 2010, only 28 new projects
at an investment of `222 crore were
announced in the first month of this year. Sectorwise Project Investment - Jan 2011
The uncertainty prevailing over the
Sectors Projects `Crore Share (%)
clearance of 203 coal mining sites might
be one of the reasons for the slowdown Manufacturing 116 8,134 55.99
on project announcements in this sector. Mining 11 22 0.15
Though three large projects were
Electricity 28 222 1.52
announced in this sector, their cost has
not yet been finalised. The projects were Services & Utilities 523 5,998 41.28
 Astarc Power's 1,320 MW coal based Irrigation 5 154 1.06
power unit at Pandhartal in Nagpur All Sectors 683 14,528 100.00
district, Maharashtra.
 Tehri Hydro Development Corporation India's and at Nagpur and Navi Mumbai in Maharashtra. All
1,320 MW Khurja coal based power unit in the three hotels will have an inventory of 200 rooms
Bulandshahar district of Uttar Pradesh. each. Sabari Inn is developing three four-star hotels
 Rajasthan Sun Technique Energy's (RSTEPL) 100 - one each in Bengaluru, Hyderabad and Pune.
MW solar based power unit in Jaisalmer district The National Rural Health Mission, Assam, has
of Rajasthan. RSTEPL is a subsidiary of Reliance firmed up plans to set up 13 hospital projects
Power. which include 10 hospitals and three community
The Services and Utilities Sector witnessed 523 health centres.
startups with an aggregate investment of `5,998
CMYK

Project Tenders Review

3,660 project tenders floated in January 2011

MSRDC seeks consultants for Bandra-
Dahisar Elevated Corridor on WEH
he number of project tenders floated in elevated corridor on Western Express Highway

T January 2011 declined by 8.4 per cent on M-

o-M basis. As against 3,997 tenders worth
`20,769 crore floated in December 2010, 3,660
project tenders worth `16,244 crore were floated in
January 2011. Of this, 2,323 tenders worth `11,045
crore were by State Government agencies; 1,276
tenders worth `4,928 crore were by Central
Government agencies and the balance 61 were by
Private companies.
The most notable tender of the month was floated
by Maharashtra State Road Development
Corporation (MSRDC). On 28 January 2011,
MSRDC invited global bids from consultants for
providing consultancy services for construction of
Top 10 Sectors in Project Tendering
(WEH) from Bandra to Dahisar in Mumbai.
Another noteworthy project tender published was
by NHAI. On 28 January 2011, the company invited
bids for four-laning of Lucknow-Raebareli section
from km 12.700 to km 82.700 of NH-24 B on BOT
(Toll) basis under NHDP-IV B in the state of Uttar
Pradesh. The cost of the highway is estimated at
`760 crore.
Roadways topped the sector-wise list with 1,083
project tenders worth `6,100 crore. Community
Services, Railways and Thermal Power followed the
list with 550 tenders worth `1,540 crore, 314
tenders worth `983 crore and 280 tenders worth
`339 crore, respectively.
Among the social infrastructure sector, about 187
tenders were floated for implementing various

14
Projects Today
Sector
Roadways
Community Services
Railways
`Crore Tenders Share %
6,100
1,540
983
1,083
550
314
29.59
15.03
8.58
water supply schemes and 40 tenders were invited
for setting up water and effluent treatment plants.
The most notable tender in this sector was floated
by Tamil Nadu Water Supply & Drainage Board. On
February 2011 02 January 2011, the board invited bids in three
Thermal Power 339 280 7.65
Power Distribution 378 212 5.79 packages for setting up a combined water supply
scheme of Vellore Corporation. The aggregate cost
Water Supply 1,918 187 5.11
of the three packages was `950 crore.
Irrigation 967 161 4.40
Another notable tender within the same sector was
Petroleum Products 0 87 2.38 floated by Ulhasnagar Municipal Corporation
Hospitals 618 71 1.94 (UMC), which on 21 January 2011, invited bids for
Iron & Steel 0 68 1.86 development of independent water source,
All Sectors 16,244 3,660 100.00 augmentation of existing water supply scheme up
to service reservoirs and operation and maintenance
Top 10 States in Project Tendering of the same on BOT basis in Thane district of
State `Crore Tenders Share % Maharashtra.
Maharashtra 1,944 642 17.54 The Hospital sector saw 71 project tenders being
Chhattisgarh 555 306 8.36 floated worth `618 crore. Of the two notable
Jharkhand 825 268 7.32 tenders floated in this sector, the first one was by
Lady Hardinge Medical College & Associated
Andhra Pradesh 602 258 7.05
Hospitals (LHMC). On 28 January 2011, LHMC
Karnataka 1,382 253 6.91 invited bids for construction of hospital buildings,
Orissa 664 208 5.68 academic block and students' hostels, residential
Uttar Pradesh 1,278 203 5.55 units and RMO accommodation with associated
Madhya Pradesh 492 178 4.86 services under Phase-I Comprehensive
Tamil Nadu 2,052 164 4.48 Redevelopment Plan for Lady Hardinge Medical
College & Associated Hospitals, New Delhi. The
West Bengal 857 155 4.23
work cost was estimated at `460 crore.
All India 16,244 3,660 100.00 The second notable tender was floated by
CMYK
Department of Medical Education & Training,
Government of Uttar Pradesh. On 16 January 2011,
it invited RfQs for construction of Medical College
& Hospital at Chakrapanpur, Banda Medical
College, Banda, and Safai Institute of Para-Medical
Science, Etawah, in Uttar Pradesh.
Among the states, Maharashtra topped the state-
wise list with 642 tenders worth `1,944 crore.
Chhattisgarh, Jharkhand and Andhra Pradesh
followed with 306 tenders worth `555 crore, 268
tenders worth `825 crore and 258 tenders worth
`602 crore, respectively.
Private Sector
In the private sector, 61 project tenders were
floated during January 2011, mainly in the Power,
Community Services and Petroleum Oil & Gas
sectors. Some of the major tenders were by
 Ganga Power & Natural Resources, a unit of
Adhunik Group, for main plant (BTG) package
for 2x660 MW thermal power plant at
Bhagalpur in Bihar.
Project Tendering By Ownership
Ownership `Crore Tenders Share %
State Government
Central Government
Private (Indian)
11,045
4,928
271
2,323
1,276
43
63.47
34.86
1.17
Private (Foreign) 0 18 0.49
Grand Total 16,244 3,660 100.00
 Cairn Energy India for execution of civil works
for Aishwariya Field Development Project in
Rajasthan.
 Maruti Clean Coal & Power for selection of
contractor for EPC / BTG Island Packages / BOP
for 300 MW coal based thermal power project in
Korba district of Chhattisgarh.
 Adhunik Power & Natural Resources for main plant
(BTG) package for 2x660 MW super thermal power
plant in Janjgir-Champa district of Chhattisgarh.
 Hindustan Oil Exploration Company for
installation and commissioning of natural gas
compressor package on long term lease basis at
HOEC PY-1 Gas Processing Terminal,
Thirukkadaiyur, in Tamil Nadu.
Project Tenders Review
Expression of Interest (EoIs)
In January 2011, 103 EoIs related to the
Community Services, Tourism and Roadways sectors
were announced. Some major EoIs floated in the
month were by
 Bhubaneswar Development Authority for
development of modern integrated township
(South City Phase-I) at Bhubaneswar in Orissa
under PPP.
 Maharashtra State Road Development
Corporation for development of various schemes
in the holy town of Shirdi on BOT basis in
Maharashtra.
 National Highways Authority of India for
appointment of independent engineer for six-
laning of Dhankuni-Kharagpur section of NH-6
on BOT (Toll) basis under NHDP-V in West
Bengal.
 Greater Mohali Area Development Authority for
development of Amusement Park & Punjab Haat
at Sector-62, Mohali, on BOT basis.
 Maharashtra State Road Development
Corporation for development IT Parks at Kon
and Airiwali in Panvel taluka of Raigarh
district near Mumbai-Pune Expressway on
BOT basis.
Empanelment of
Consultants/Contractors
15
Projects Today
During January 2011, 26 notices were published, February 2011
inviting applications for empanelment of
consultants & contractors. Some of the major
notices were
 Maharashtra State Agricultural Marketing Board
invited bids for appointment of consultants for
development of agro-commodity based high-
end processing industries in the rural area of
Maharashtra.
 Environmental Planning & Coordination
Organisation invited bids for empanelment of
project management consultants (PMC) for
various development activities.
 Employees' State Insurance Corporation invited
bids for empanelment of architectural/
engineering firms for processing maintenance
activities at ESI Hospitals in Maharashtra.
CMYK

Domestic & Overseas Orders

Year 2011 begins at a low

Contract allocations slowed down in January
he month of January 2011 witnessed only 48 Punj Lloyd bagged two orders from Occidental

T contracts being awarded. The lowest figures

both in terms of number of contracts awarded as
well as worth of jobs involved when compared with
the preceding four months (September - December
2010) statistics.
India based business houses bagged contracts worth
`14,603.38 crore, almost half the amount in
comparison to December 2010. In December, a total
of 72 contracts were amassed worth a sum of `27,822
crore.
The third quarter (October - December 2010) had
seen record rise followed by sharp fall and then
recovery in contract finalisation activities. While,
October 2010 saw record 90 contracts worth
`72,243 crore being firmed up, November saw the
aggregate contract value dipping to `14,947 crore.
Contract awarding activities staged a recovery in
December with 71 contracts worth `27,822 crore
being handed over by project promoters to Indian
Mukhaizna and Pertamina respectively. The `323-
crore contract from Occidental was for engineering,
procurement and construction of a new water
treatment plant at oil production fields in Oman. The
Pertamina contract valued at `271 crore was for
engineering, procurement, construction, installation
and commissioning of three well head platforms and
laying three segments of 18.6 km of offshore gas
pipeline along with subsea 'wye' installation in existing
pipeline without any shut down in Indonesia.
The Power Sector managed to maintain its premier
position in the month with 18 contracts worth
`8959.31 crore in its kitty. Suzlon Energy won the
largest order from the Caparo Group. The contract
valued at `5,760 crore was for utilising Suzlon turbine
models including the S88 and the new S9X series 2.1
MW turbines with the doubly-fed induction generator
technology for 1,000 MW of wind power projects.
Next in tow was PGCIL's `1,600 crore contract

16
Projects Today
companies. The momentum seems to have lost once
again in January 2011.
Of the 48 contracts awarded in January, eight were
awarded by foreign conglomerates. KEC International
awarded by the Jharkhand State Electricity Board. The
scope of work consisted of setting up 1,000 km of
transmission lines and 10 sub-stations in Jharkhand.
The Roadways and Railways sectors were the other
February 2011 was given a `942-crore contract by Kazakhstan sectors that clinched maximum contracts. A total of
Electricity Grid Operating Company for the execution, seven projects worth `2133.06 crore were bagged in
including rehabilitation, of a total of 21 substations Roadways while six contracts valued at `1657.19 were
spread across the North East and South of Kazakhstan. amassed in the Railways sector.
Orders & Contracts Bagged The NHAI awarded a `1150-crore contract to
Sectors Contracts `Crore Share % Supreme Infrastructure India for upgradation
Airways (Aviation Infrastructure) 1 0 0 of a 84-km stretch of the Panvel-Indapur
Articles of Iron & Steel 2 0 0 stretch of NH-17 in Maharashtra. A
Automobile Ancillaries 1 0 0 consortium of L&T, Alstom Transport and
Automobiles 1 0 0 Alstom India bagged a contract from Chennai
Car Parks, etc 1 40.00 0.27
Metro Rail. The `449.22-crore contract was
Coal/Lignite Based Power 4 240.31 1.65
Gas Pipeline 2 322.00 2.20
for design and construction of track work in
Industrial, Agro Machinery 1 24.83 0.17 viaduct, tunnel, underground and depot for
Mineral Fuels 1 32.00 0.22 corridors I & II including 104 route km & 15
Power Distribution 10 2959.00 20.26 route km of track work in the depot at
Railways 6 1657.19 11.35 Koyambedu.
Real Estate 1 450.00 3.08 Among the other contracts closed in January,
Roadways 7 2133.06 14.61
a `500-crore one bagged by Synergy Property
Shipping Infrastructure 1 108.00 0.74
Development Services from Huawei
Storage & Distribution 1 28.00 0.19
Telecom Services 1 500.00 3.42 Technologies and a `450 crore job work
Thermal Based Power 1 0 0 bagged by Arabian Construction Company
Water & Sewerage Pipeline & Distribution 2 348.99 2.39 WLL and Simplex Infrastructures for civil
Water, Sewage & Effluent Treatment 1 0 0 construction of Lodha's proposed residential
Wind Based Power 3 5760.00 39.44 building in Mumbai were noteworthy.
Total 48 14603.38 100
CMYK
Food Products / Textiles / Chemicals
SECTORAL REVIEW
Food Products
Project Developments
RUCHI SOYA INDUSTRIES, an
edible oil maker, plans to augment
its refinery capacity by March 2012.
The company has earmarked `600
crore for the purpose which is to be
funded through internal accruals and debts. The
plan is to expand the palm oil refinery capacity by
1.1 million tpa at Mumbai, Kandla (Gujarat) and
Haldia (West Bengal) refineries by March 2012.
Currently, the company's overall palm oil refining
capacity is 2.1 million tpa.
Meanwhile, the company has completed the merger
of one of its group companies Sunshine Oleochem
with itself, following the approval of the merger
scheme by the Bombay High Court.
PARAG MILK FOODS is planning to take up
expansion at its plant at Palamaner in Andhra
Pradesh.
The company proposes to raise capacity of the plant
by almost five times to reach a capacity of 12-15
lakh litres of milk daily. The plant has been set up at
a cost of `120 crore with a capacity of 2,50,000
litres per day of milk.
The company manufactures skimmed milk powder,
ghee, cheese, butter and yogurt under its
'Gowardhan' and 'Go' brands.
Textiles
Project Development
SURYAVANSHI SPINNING MILLS,
a Hyderabad based company, has
drawn up an expansion plan.
The company plans to invest `120
crore for setting up of a greenfield
yarn production unit at a cost of about `80 crore, a
`10-crore garment manufacturing unit and expand
existing capacity at a cost of `30 crore.
The greenfield facility with 35,000-spindle capacity
will come up near Jangoan in Warangal district of
Andhra Pradesh. The company hopes to achieve
financial closure by April 2011 and commence
commercial production by the first quarter of 2013.
Of the total cost, 30 per cent will be funded through
internal accruals and the remaining amount is to be
raised through debt.
Chemicals
Project Developments
GUJARAT ALKALIES AND
CHEMICALS (GACL) on 12 January
2011 inked an MoU with Evonik
Industries, a Germany based
specialty chemicals maker.
The deal has been inked for setting up a Hydrogen
Peroxide and Propylene Oxide project at Dahej in
Gujarat. Under the MoU, Evonik will be
constructing a new hydrogen peroxide production
17
Projects Today
February 2011
plant and GACL is to set up a propylene oxide plant.
The aim is to produce propylene oxide using the
environment-friendly Hydrogen Peroxide to
Propylene Oxide process developed jointly by
Evonik, Essen, and Uhde, Dortmund.
NAGARJUNA FERTILISERS AND CHEMICALS
(NFCL) is likely to be divided into two entities
focussing on oil interests and fertiliser assets. For
this, two companies have been floated - Kakinada
Fertilisers (KFL) and Nagarjuna Oil Refinery (NORL).
NFCL has about 71 per cent holding in Nagarjuna
Oil Corporation, which has been working on a plan
to set up an oil refinery at Cuddalore in Tamil Nadu.
Apart from NFCL, the Tata Group, too, has a
holding in the refinery project.
Now, NFCL's share in the refinery project will be
moved into NORL. Similarly, the fertiliser assets,
which are primarily located at Kakinada in Andhra
CMYK
Chemicals / Drugs / Paper / Non-metallic Mineral
Pradesh, will be moved into KFL. Additionally,
iKisan, another group company, too will be merged
into KFL.
Though NFCL ceases to exist for now, KFL will be
renamed as NFCL once the scheme of
amalgamation and demerger is approved by the
High Court of Andhra Pradesh. With the appointed
date for the said scheme being 1 April 2011, the
scheme will result in creation of two companies.
ASIAN PAINTS (APL) is likely to form JV with US
based PPG Industries.
APL and PPG will establish a second 50:50 JV. This
will be over and above expanding their current
50:50 JV - Asian PPG Industries (APPG). The second
JV is expected to cater to the protective, industrial
powder, industrial containers and light industrial
coatings markets.
APL and PPG have agreed that APL will take lead in
the second venture and PPG will take lead in APPG
in order to utilise their respective strengths.
Currently, the modalities of the JV are being
worked out. The arrangement is subject to
regulatory approvals and is expected to be
completed during 2011.
18
Projects Today
The Chemicals Division of GODREJ INDUSTRIES
plans investment.
The company is setting up a new chemicals
February 2011 manufacturing unit at Ambarnath in Thane
(Maharashtra) at a cost of `230 crore. It is also
spending `2,050-crore for expanding the capacity
of its manufacturing plant at Valai, Gujarat.
While the Ambernath unit will mainly manufacture
different kinds of fatty acids, the Valia plant will
produce fat splitters and speciality fatty acids such
as erucic acids.
Drugs, Biotech
Project Development
TORRENT PHARMACEUTICALS,
the Ahmedabad based Pharma
company, is expected to
commission its Sikkim facility within
the first quarter of next fiscal.
The formulations facility is likely to produce three
billion tablets and capsules per annum. The company
has invested `125 crore in setting up the unit.
Torrent's manufacturing plant at Chhatral (Gujarat)
has a capacity to manufacture approx three billion
tablets, capsules and vials and 15,000 kg of Bulk
Drugs or active pharmaceutical ingredients, while its
Baddi facility can manufacture 3.6 billion tablets,
150 million capsules, 10 million oral liquid bottles
and 12 million sachets per annum.
Meanwhile, the company has also started work on
the Dahej facility which will manufacture 8.5 billion
formulations and 40 million tpa of API. It entails an
investment of around `350 crore.
Paper
Project Completion
M Karunanidhi, Chief Minister of
Tamil Nadu on 19 January 2011
inaugurated a paper machine at
TAMIL NADU NEWSPRINT AND
PAPERS' (TNPL) plant in Pugalur
town in Karur district of Tamil Nadu.
The `1,000 crore expansion takes TNPL's annual
paper production capacity to 4 lakh tpa from the
present 2.45 lakh tpa. The Karur unit has a daily
production capacity of 573 tonne.
The minister also laid the foundation stone for three
projects totalling `377 crore at TNPL. These include
a 600 tpd cement unit that will use solid waste
generated at TNPL as a raw material; `135 crore
modernisation programme for the steam and power
generation facilities; and a `175 crore de-inking
plant that will recycle paper.
Non-metallic Mineral
Products
Project Developments
BIRLA CORPORATION on 13
January 2011 inked an MoU with
the Assam Government.
The agreement has been signed for
setting up a one-million tonne
greenfield cement plant at Umrangsu in the North
Cachar Hills district. The project entailing a cost of
`450 crore will be set up through a JV company.
Birla Corporation is engaged in the manufacture of
cement, jute goods, polyvinyl chloride floor
covering, iron and steel casting, as well as auto trims.
KAJARIA CERAMICS on 20 January 2011 signed
an MoU with a Turkey based company Eczacibasi.
The company has signed the MoU with the
CMYK
Non-metallic Mineral / Metallurgy
European brand Vitra, owned by Eczacibasi, to enter
into the sanitaryware and bath-fittings segment.
The 50:50 partnership is for five years and the JV is
looking at possibilities of manufacturing in India.
The partners are working on the feasibility study
and are also looking at the possibility of acquiring an
existing facility. Also, plans are afoot to set up
around 10 showrooms of Vitra-Kajaria during 2011.
ULTRATECH CEMENT on 6 January 2010 signed an
MoU with Rajasthan State Industrial Development
& Investment Corporation (RIICO).
The company has signed the MoU for setting up a
`2,000 crore cement project in Jhunjhunu district of
the state. The proposed plant is to come up on
1,600 acre. The project is to have an annual
installed capacity of three million tpa.
RIICO will facilitate the project by way of land
acquisition. The project is expected to start
production in two years from the time of land
acquisition.
Work on SHELL & PEARL CERAMICS' unit at
Jhagadia is expected to commence by October
2011.
The company plans to set up the vitrified tiles unit
with a capacity of 14,000 sq mtrs per day (Phase II)
at 14, Jhagadia Industrial Estate, Jhagadia in
Bharuch district of Gujarat. It is to incur a cost of
`60 crore. The required machinery will be sourced
from China and Italy. Jagat Constructions has been
selected as the contractor for the unit.
Also, the company's unit with a capacity of 20,000
mtrs per day (Phase I) at Jhagadia has commenced
operations in December 2010. The unit was set up
at a cost of `150 crore.
PIRAMAL GLASS, a manufacturer of glass
containers, intends to set up new manufacturing
unit in Gujarat.
The company is planning to invest nearly `100 crore
to set up a unit to meet the increasing demand from
domestic and overseas markets.
It is likely to set up a new furnace to manufacture
bottles at its existing plant at Jambusar in Gujarat.
The proposed unit is likely to have a production
capacity of 160 tpd. It is slated to be operational by
March 2012.
SAINT-GOBAIN GLASS INDIA proposes to set up a
facility to manufacture base glass for solar
photovoltaic modules.
The company is likely to invest `400 crore in the
facility. The plant is expected to be located either at
Chennai, Tamil Nadu, or at Bhiwadi, Rajasthan. The
capacity of the new plant is expected to be around
500 MW a year.
Meanwhile, Saint-Gobain is setting up a glass plant
at Bhiwadi at a cost of `1,500 crore. The plant is
being taken up in phases. In Phase-I, `900 crore is
being invested to create new production lines and is
expected to be commissioned by December 2011.
Metallurgy
Project Developments
SAIL on 19 January 2011 signed an
MoU with Hindustan Prefab (HPL).
The agreement has been signed for
jointly exploring economic viability
of carrying out the business of
19
Projects Today
February 2011
prefabricated structures in steel and cement. The
two companies will also look at opportunities
towards jointly participating in projects using
prefabricated structures in steel and cement.
The MoU envisages a study to be conducted into
the techno-economics of the prefab sector along
with its market potential. HPL has expertise in
project management, production and marketing of
prefabricated products.
NMDC is likely to finalise a JV partner for its steel
venture in Chhattisgarh by March 2011.
The company is planning to set up a two million tpa
steel plant in a JV in Chhattisgarh at an investment
of `10,000 crore. Currently, the company is holding
discussions with potential partners. It is likely to
make final announcement in regards to the JV
partner by March 2011.
However, the exact location and the time frame for
CMYK
Metallurgy
construction of the steel plant have not been
disclosed. NMDC's integrated steel unit in Bastar
district of Chhattisgarh is slated to commence
production by early 2014.
GUJARAT MINERAL DEVELOPMENT CORPOR-
ATION (GMDC) is likely to induct a partner for its
aluminium project in Kachchh, Gujarat.
GMDC is setting up an alumina refinery and an
aluminium smelter project in Kachchh, at an
investment of around `14,000 crore.
Currently, the company is evaluating the EoIs by
Hindalco Industries, Gujarat Foils, JSW Aluminium,
NALCO, Aluchem (USA), Dubai Aluminium
Company, Jaiprakash Associates, Adani Group and
Jindal Steel and Power.
The project envisages setting up a one million tonne
alumina refinery and a 5,00,000 tonne aluminium
20
Projects Today
February 2011
smelter. GMDC will be the bauxite provider for the
alumina production from its mines in Kachchh.
JAI BALAJI has achieved financial closure for its
steel plant at Raghunathpur in Purulia district of
West Bengal.
The company has managed to mop up `1,230 crore
from a consortium of banks headed by State Bank of
India. The other banks are Bank of Baroda, Union
Bank of India, Oriental Bank of Commerce,
Allahabad Bank, Bank of India, United Bank of India,
Indian Overseas Bank, State Bank of Bikaner and
Jaipur, State Bank of Mysore, Dena Bank and The
Federal Bank.
The balance amount of `640 crore will be funded
through a mix of internal accruals and fresh equity.
The Phase IA of the project is estimated to cost
`1,870 crore. The steel plant having a capacity of
five million tonne also comprises a 1,215 MW
power plant. The project will be completed in a span
of 30 months.
TATA STEEL is likely to commence construction on
its steel plant shortly at Kalinganagar in Jajpur
district of Orissa.
Due to land acquisition issues and non-allocation of
iron ore and coking coal mines for it, the project did
not take off and the MoU expired in 2009. The
company has written to the state government for
the extension of the MoU and has also requested
for allocation of mines.
The company has completed the ground levelling at
the plant site. The `23,000-crore project is to be
developed in two phases comprising three million
tpa each. Phase I is expected to cost close to
`16,000 crore and is likely to be operational in 36 to
40 months from the start of construction. The funds
for the project are likely to be tied up, within six
months of starting the construction.
The board of directors of SAIL is expected to
examine the DPR on its proposed JV with South
Korea based POSCO. POSCO has already approved
the DPR and if SAIL concurs with its assessment on
the feasibility of the project, other modalities such
as the stake-holding pattern will be finalised. The
SAIL board is likely to take a final decision shortly.
The two companies plan to set up a three million tpa
integrated steel plant at Bokaro in Jharkhand, at an
investment of `16,000 crore.
POSCO is also holding talks with the Karnataka
Government to set up a steel plant in the state. The
proposed project costing `32,000 crore will have a
capacity of six million tpa. The company has
identified three potential sites -- at Gadag, Bijapur
and Bagalkot -- for the project. It has already
deposited `60 crore with the Karnataka Industrial
Area Development Board for acquisition of the land
required for the project as well.
JSL STAINLESS is planning to ramp up its coke oven
capacity.
The company is likely to raise its coke oven capacity
to 8,00,000 tonne with the help of JSW Steel. The
two companies have signed a long-term agreement
for three to five years and JSW will pay money to
JSL, depending upon the requirement of the capital
expenditure schedule.
As per the agreement, JSW will bring in its own
coking coal and JSL will convert it into coke for
JSW's use. JSW will use this coke at Ispat's Dolvi
steel plant in Maharashtra according to the
CMYK
Metallurgy / Machinery & Electronics
restructuring plan to bring Ispat back on its feet.
JSL has already spent `400 crore to put up the
4,00,000-tonne coke oven battery. As the
infrastructure for expansion is in place, it will need
just `100-125 crore to augment the capacity.
Bhilwara based SANGAM GROUP has decided to
foray into steel business through a new subsidiary
Mahalaxmi TMT.
The company will set up an integrated steel plant
near Wardha in Maharashtra in two phases. It will
involve a capital expenditure of `697.50 crore. The
project is to be funded by an equity contribution of
`217.50 crore from the promoters while the
remaining `480 crore will be raised through debt.
The company has already secured loans from a
consortium of eight banks, led by Union Bank of
India.
The plant is to have a capacity of 2.40 lakh tpa for
mild steel billets in the first phase which will be
completed by May 2011. Later the company plans
to ramp it up to 3.36 lakh tpa by May 2012 in the
second phase. It is also planning to set up a five lakh
tpa capacity for manufacturing TMT bars, angles
and channels along with 40 MW captive power
plant in the second phase.
Work on the steel plates and slabs unit coming up at
Khopoli in Raigarh district of Maharashtra is
expected to be completed by June 2011. NAMCO
CORPORATION is setting up the unit with a
capacity of 3.50 lakh tpa. A sum of `750 crore is
being pumped in for the project.
Machinery & Electronics
Project Developments
A JV of L&T and MITSUBISHI
HEAVY INDUSTRIES completed
facilities for the manufacture of
supercritical boilers and turbine
generators at Hazira, Surat (Gujarat).
Vilasrao Deshmukh, Union Minister of Heavy
Industry & Public Enterprises, on 11 January 2011
inaugurated the supercritical boiler facility while
Narendra Modi, Chief Minister of Gujarat,
inaugurated the facility for supercritical turbine
generators.
The L&T-MHI facilities have an annual capacity of
manufacturing 5,000 MW of equipment, to be
expanded to 6,000 MW by 2012.
PREMIER, an automobile manufacturer has shifted
focus to manufacture CNC machine tools, heavy
engineering and utility vehicles.
The company is likely to invest about `100 crore in
the heavy engineering division. The capex plan is to
be funded through the sale of 200 acre in Mumbai.
The company is planning to invest about $50 million
(approx `225 crore) to acquire a company.
However, the company did not disclose the details
of the target company.
The manufacturing facility of TOSHIBA JSW
TURBINE & GENERATOR is expected to become
operational in the second half of 2011.
At present, installation of machinery is going on and
the company expects the facility to be ready by July
or August 2011.
Toshiba JSW is investing `800 crore in the facility for
supercritical steam turbines and generators, which is
21
Projects Today
February 2011
coming up in north Chennai. The initial capacity of
the facility will be 3,000 MW per year and will be
completed in three steps - component factory,
manufacturing facility and administrative office.
DOOSAN HEAVY INDUSTRIES & CONSTRU-
CTION, South Korea based power equipment maker,
will set up a boiler manufacturing plant in India.
The plant is to entail an outlay of `1,000 crore and
will come up in Haryana. Land for the plant has
been acquired. It will manufacture equipment to aid
generation of around 3,000 MW every year.
DEERE & COMPANY, a farm equipment
manufacturer, is planning to take up expansion.
The plan includes setting up a new factory and
expanding the capacity of its existing plant in
Pune at an investment of around $100 million
(approx `450 crore). The new facility is likely to
CMYK
Machinery & Electronics / Automobiles
manufacture small agricultural tractors for the
domestic market and for export to other
countries. The company is yet to finalise the
location for the new plant.
BHARAT FRITZ WERNER (BFW), a machine tools
company, is planning to take up expansion.
The company has earmarked `350 crore to expand
operations by 2015. The plan includes setting up a
new plant and restructuring its aerospace business.
BFW is setting up a new plant for manufacturing
machine tool spindles in Hosur, Tamil Nadu, at an
investment of `33 crore. It will invest about `45
crore for restructuring the aerospace business,
which will involve hiving off the business as an
independent entity. Another `115 crore will be
invested in acquiring new machinery and for adding
shop floors.
The company is also holding discussions with a few
companies in Europe in the aerospace and medical
equipment sector for acquisition.
TIL plans to raise up to `250 crore as equity through
private equity or institutional placement to part
finance its greenfield project at Kharagpur, West
22
Projects Today
Bengal.
TIL is constructing a heavy equipment plant in
Kharagpur that entails a cost of around `200 crore
in the first phase. It is expected to be operational by
February 2011 July 2011.
In the next three-four years, the optimum
investment will go up to `500 crore once TIL sets up
four types of equipment manufacturing facilities.
Automobiles
Project Developments
SAIL is planning to make auto-
grade steel for cars.
The company is setting up a new
cold rolling (CR) mill with a 1.2
million tpa capacity at its Bokaro
plant in Jharkhand.
The new cold rolling mill is being set up with
coupled pickling and tandem mill, 100 per cent
hydrogen annealing, electrolytic cleaning line,
tension levelling and automatic packing stations,
etc. Also, galvanising lines are being set up both for
hot rolled and cold rolled products. Provision has
been made for supplying of HR pickled and oiled
material. Necessary upstream projects like facilities
for de-sulphurisation and upgradation of hot strip
mill are also in the pipeline.
The first lot of coaches from the RAIL COACH
FACTORY, Rae Bareli in Uttar Pradesh, is expected
to roll out in the next financial year.
The factory being set up at a cost of `1,685 crore
will have a capacity of 1,000 coaches per year. The
total area, which has been allocated for the factory
is around 550 ha. As part of the initial support
systems, construction of factory boundary wall, rail
linking of Lalganj railway station with the factory,
construction and energising of 33/11 kV sub-station
and construction of two water tanks have been
completed.
PROTON HOLDINGS BHD, a Malaysia based car
manufacturer intends to set up contract assembly
manufacturing operations in India.
Currently, the company is holding discussion with a
global equipment manufacturer for a possible JV for
the project. The deal is likely to be finalised by
March 2011.
Besides, the company plans to incorporate its own
subsidiary that will work with a local partner to
distribute cars in India. It is exploring the option of
offering its models - Saga, Persona, Exora
multipurpose vehicle and Emas hybrid in India.
RASHTRIYA ISPAT NIGAM (RINL) on 10 January
2011 signed an MoU with the Indian Railways (IR).
The MoU was signed for setting up an axle plant -
Uttarbanga RINL RAIL Karkahana - at New
Jalpaiguri, West Bengal, at an estimated cost of
`278 crore. The proposed plant is to manufacture
Box N Wagon Axles. The new plant will have the
facility of forging and heat treatment of about
CMYK
Automobiles / Mineral Fuels
50,000 forged axles per annum. The project will be
implemented by forming a 100 per cent subsidiary
company of RINL or a JV. MECON has been
appointed the consultant for the project.
While RINL shall invest 100 per cent equity for this
project, the IR will provide assured off-take of
20,000 axles per annum.
JK TYRE & INDUSTRIES is likely to complete the
expansion in Karnataka and Tamil Nadu by
December 2011. The company is taking up
expansion project at Mysore in Karnataka and
setting up new facility at Chennai in Tamil Nadu at
a total investment of `950 crore.
In Mysore, the company is raising the capacity of its
plant from eight lakh tpa of tyres to 10 lakh tpa of
tyres. The expansion is scheduled to be completed
by June 2011. The company is setting up a new
manufacturing facility in Chennai with a capacity of
four lakh tpa of tyres. The plant is likely to be
commissioned by December 2011.
GENERAL MOTORS (GM) INDIA has chalked out
an investment plan for its facilities in the country.
The company has earmarked around `2,000 crore
to invest in India by 2013. Of the total, GM is likely
to invest `700 crore in Halol plant in Gujarat and
`1,300 crore in Talegaon plant in Maharashtra. The
funds are to be utilised to convert Halol into a hub
for making commercial vehicles while also
expanding production capacity to 1.05 lakh units
per annum. Currently, the Halol plant manufactures
85,000 units per annum.
At Talegaon, the company is adding an annual
production capacity of 1.6 lakh units. Currently, it
can manufacture 1.4 lakh units per annum.
ROYAL ENFIELD, an arm of Eicher Motors,
proposes to set up a new facility.
The new motorcycles facility is likely to up come in
Tamil Nadu or Andhra Pradesh and the investment
and location details will be decided in three months.
Besides this, the company is also planning to ramp
up its capacity at the Chennai plant by 20 per cent.
The expansion will entail an investment of around
`25 crore.
HYUNDAI MOTORS INDIA is likely to submit its
expansion plan to the Tamil Nadu Government soon.
The company is expected to submit a `1,500-crore
expansion plan to the state government. Earlier, the
company was planning to invest around `500 crore
to set up a diesel engine plant in the state.
The company will seek a package of incentives
available under the state government's industrial
policy for super mega investments in automobile
projects.
THE TATA GROUP plans to set up three more units
as a part of its aerospace manufacturing initiative in
Hyderabad. The project will entail an investment of
`1,000 crore.
Nova Integrated System, Tata Aero-structure and
Tata Aerospace Systems, the three new JV
companies will be engaged in making radar and
electronic equipment for the defence sector,
assembling of aircraft equipment and
manufacturing of aircraft parts respectively. The
Andhra Pradesh Government is likely to allot 125
acre near the Aerospace SEZ on the city outskirts.
Mineral Fuels
Project Developments
CIL is likely to sign contracts with
private firms to develop
underground coal gasification
projects.
The blocks, where coal production
is not viable, will be offered for 25 years and will be
developed in three phases, involving exploration
23
Projects Today
and assessment for the first five years and February 2011
commercial production for the rest.
The developer will explore and assess the feasibility
of the blocks being offered. If the blocks are found
suitable, the developer will submit mining plan to
the company. The developer will also take up the
project and it will be for the developer to acquire
land. Sales and marketing of the product will be the
developer's responsibility. The developer will either
sell the gas to third party entities at market rates or
will use it for its own downstream purpose.
Post commissioning, CIL will have the right to
participate in development of marketing
infrastructure for transportation of gas to customer
delivery points. CIL's participation will be in the form
of 50 per cent equity participation in a JV with the
developer of the project. CIL has identified
Thesgora C Block under Western Coalfields
command area and Kaitha Block at Central
Coalfields for the purpose.
NMDC's coal blocks in Madhya Pradesh are expected
to commence production in December 2011.
The company is planning to develop two
underground mines - Shahpur East and Shahpur
CMYK
Mineral Fuels
West in the state, by end-December 2011. The two
coal blocks have estimated reserves of 100 million
tonne.
The two blocks spread across about 13 sq km were
allocated by the Union Ministry of Coal (MoC) in
2007 for commercial use and the output will be sold
to power producers. NMDC has already submitted a
mining plan to MoC and is likely to be approved by
March 2011. Meanwhile, NMDC is looking at
proposals to acquire coal mines in South Africa,
Russia, Mozambique and the US. In Russia, it is
looking to acquire Kolmar's coal mines and other
nearby assets. The coal mines are understood to
have estimated reserves of 400 million tonne.
NMDC has already submitted a $230 million
24
Projects Today
February 2011
(approx `1,035 crore) non-binding bid to buy a 70
per cent stake in a coal mine in Australia owned by
Perth based Atlas Iron.
ONGC on 3 January 2010 signed cooperation
agreements with GAIL India. The agreements will
be initially valid for three years and can be extended
thereafter. Under the agreement, GAIL will get the
first right on all gas that ONGC will produce from
any of its fields in future. But in case GAIL is unable
to get a good price within 30 days, ONGC will take
back the marketing rights.
GAIL will also market some of the chemicals to be
produced from the Dahej petrochemical complex
being set up by ONGC Petro-additions (OPaL), a
subsidiary of ONGC. GAIL has 19 per cent stake in
OPaL.
Further, GAIL is expected to be a co-promoter of the
1.1 million tonne ethylene cracker petrochemical
complex that OPaL is setting up at Dahej SEZ in
Gujarat, at a capital cost of `19,535 crore.
The two companies will also explore the possibility
of setting up a downstream unit using Butadiene for
manufacture of value-added products.
BHARAT COKING COAL is likely to open seven
new underground mines in Jharkhand. The step is
aimed at tripling its underground coal production
capacity to 12 million tpa.
The tenders for three to four mines have already
been floated while the remaining tenders in the
pipeline are likely to be floated in another two
months. The mines, all situated in Dhandand,
include Putki Balihari, Kapuria, Madhuban,
Moonidih (15 seam and 16 seam), Amlabad and
Sumandi and have a cumulative annual production
capacity of almost seven million tonne.
THE ORISSA GOVERNMENT is likely to ink a fresh
JV for mining with Rio Tinto.
The state government is currently examining a draft
regarding a fresh agreement with Rio Tinto. The
final agreement is likely to be signed after the state
government's approval.
In 1995, the company had signed an agreement
with Orissa Mining Corporation (OMC) for a 51:49
JV to start iron ore exploration at Malangtoli
reserve. However, the JV failed to get operational.
GREAT EASTERN ENERGY CORPORATION
(GEECL) on 4 January 2011 signed an agreement
with the Tamil Nadu Government.
GEECL has signed the pact with the state
government for the development of coal bed
methane (CBM) in the Mannargudi block in the
state. In June 2010, the company was awarded the
block in the fourth round of bidding of NELP for
CBM blocks. Under the MoU, the state government
will provide for issuance of Petroleum Exploration
Licence and facilitate necessary environmental
clearances for the project. Also, the state
government will help the company in obtaining
Right of Use for laying pipeline and other
infrastructure facilities.
The Mannargudi block is spread over an area of 691
sq km and the CBM resource is estimated at 0.98
trillion cubic feet. Initially, GEECL plans to drill 50
core holes and 30 pilot wells in the region. GEECL
CMYK
Mineral Fuels / Petroleum Products
plans to pump in around `100 crore during the
exploration stage of Mannargudi block. Once the
project viability is established, the company is likely
to invest around `3,500 crore depending on the
commercial viability of the project.
ESSAR OIl on 11 January 2011 has commenced gas
production from its Raniganj coal bed methane
(CBM) block in West Bengal.
The company is producing 90,000-100,000
mmscmd of gas from below coal seams in the
Raniganj block. This block is expected to touch a
peak output of over three mmscmd by 2013.
The block has in place resources of 4.6 trillion cubic
feet (tcf) and recoverable resources of around 1 tcf.
The production from the block will last 15 years.
The company is investing $300 million (approx
`1,350 crore) for CBM gas production. It is planning
to drill 500 wells by 2013.
JUBILANT ENERGY N.V., on 1 January 2011 began
exploration work on the appraisal well in the Deen
Dayal East ("DDE") area of the KG-OSN-2001/3 block.
The well was spudded by the Deep Driller I rig from
Aban Offshore. The target depth of the well is
4,750 mtrs true vertical depth with the objective of
appraising the hydrocarbon bearing sands of KG-16
discovery well.
Jubilant holds a 10 per cent participating interest in
this block through its subsidiary Jubilant Offshore
Drilling and Gujarat State Petroleum Corporation,
with an 80 per cent participating interest, is the
operator for the block.
Project Impediment
RELIANCE INDUSTRIES (RIL) has discarded the
second exploratory well in a Krishna-Godavari
(KG) block after coming across unsatisfactory
results.
The well KG-D9-B3 in the exploration block KG-
DWN-2001/1 or D9 showed a natural gas deposit
and was tested, plugged, and abandoned. However,
the exploration result was disappointing. The well
was drilled to a total depth of 3,829 mtrs by the
Transocean drillship 'Discoverer India' in a water
depth of 2,948 mtrs. RIL has 90 per cent interest in
D9 block while the remaining 10 per cent is with
Hardy Oil and Gas.
RIL has 90 per cent interest in D9 block while the
remaining 10 per cent is with Hardy Oil and Gas.
The D9 block is located in the KG Basin on the East
Coast of India and covers an area of approximately
11,605 sq km.
Petroleum Products
Project Developments
THE UNION GOVERNMENT is
expected to give its nod for a
Petroleum, Chemicals and
Petrochemical Investment Region
(PCPIR), at Cuddalore in Tamil
Nadu in the next two to three months.
Typically, a PCPIR will be a specifically delineated
investment region with an area of around 250 sq
km planned for the establishment of manufacturing
facilities for domestic and export-led production in
petroleum, chemicals & petrochemicals, along with
the associated services and infrastructure. Out of
the total 250 sq km, around 100 sq km will be under
processing areas, and the rest is left for other
25
Projects Today
February 2011
amenities. The four PCPIRsso far approved are at
Dahej in Gujarat, Haldia in West Bengal, Paradip in
Orissa and Vishakhapatnam in Andhra Pradesh.
Six companies have evinced interest in the
preparation of master plan and zonal development
plans for the proposed Petroleum, Chemical and
Petro-chemical Investment Region (PCPIR) in
Andhra Pradesh.
The six companies are - Jurong Consultants, India,
CH2M Hill (India), AECOM, India, Worley Parsons,
India, Mott MacDonald, India, and LEA Associates
South Asia. After evaluation of pre-qualification
proposals, the selected companies will be asked to
submit financial proposals.
The proposed PCPIR is to be developed between
Visakhapatnam and Kakinada. THE
VISAKHAPATNAM URBAN DEVELOPMENT
AUTHORITY is the nodal agency for the
implementation of the project.
CMYK
Petroleum Products / Oil & Gas / LNG Storage
HPCL has reshuffled plans for its refinery scheduled
for commissioning near Chiplun in Ratnagiri district
of Maharashtra post-2015.
The project which was originally planned to have a
capacity of 15 million tpa will now have a nine
million tpa capacity. This is in order to commission
the refinery by 2016 and then expand the capacity
to 18 million tpa by 2020.
The Visakhapatnam refinery's capacity will be
increased from nine to 15.5 million tpa while the
Bathinda refinery, having a capacity of nine million
tpa is to go on-stream in a few months.
BHARAT PETROLEUM CORPORATION'S (BPCL)
Bina refinery in Madhya Pradesh is likely to
commence commercial fuel production by mid-
February 2011. In July 2010, the refinery started
operations and has been sequentially
commissioning different unit, which will be
completed by February. All the products produced
will be for sale within the country.
Meanwhile, plans are afoot to expand the capacity
of Bina Refinery to 15 million tonne by 2017.
Oil & Gas Pipelines
26
Projects Today
Project Developments
February 2011 GAIL plans to raise `3,500 crore
from the market as part of its
`7,000-crore capex plan in the next
fiscal. The balance `3,500 crore will
be from internal accruals.
The company plans to add 1,500 km pipelines by
2012 that is expected to raise its gas transmission
capacity from current 180 to 230 mmscmd.
The company is raising $150 million (approx `675
crore) through external commercial borrowings in
February 2011 and applied for a loan of `300
crore from Oil Industry Development Board. The
company may also raise about $150-200 million
(approx `675-900 crore) through foreign
currency bond.
THE KARNATAKA GOVERNMENT on 3 January
2011 approved a proposal to set up a JV company
to monitor the distribution of gas from the proposed
Dabhol-Bengaluru pipeline for various purposes,
including the piped supply.
The proposed JV company is likely to be set up with
a capital of `100 crore. The company is likely to
look into distribution of gas to power projects,
which are coming up along the pipeline in various
districts and supply for gas for vehicles.
The JV company will be floated with the GAIL
having 26 per cent stake and Karnataka State
Industrial Investment and Development
Corporation having 24 per cent stake. The other
companies will get the remaining stake.
RELIANCE INDUSTRIES (RIL) has opposed the
proposal of a new pipeline from Kakinada to
Srikakulam floated by Andhra Pradesh Gas
Infrastructure Corporation (APGIC).
According to RIL, gas availability for the pipeline is
uncertain and will not contribute to the development
of a national gas grid. The company also said that
the proposal to lay a separate line in the same route
of earlier authorised pipeline will create unnecessary
confusion and uncertainty in the mind of project
developers, keeping in view the huge
investments/financial commitments they made.
APGIC is a JV of Andhra Pradesh Industrial
Infrastructure Corporation and Andhra Pradesh
Power Generation Corporation.
LNG Storage &
Distribution
Project Development
RELIANCE INDUSTRIES (RIL) is
planning to set up natural gas
(LNG) import terminal in India.
The move emanates from the
company's need for 14 mmscmd of
gas at its twin refineries at Jamnagar in Gujarat. It
also needs gas for its petrochemical plants.
The proposed terminal may come up on either the
East or West Coast to meet demand at RIL's
refineries and petrochemical plants. RIL is likely to
invest about $1.21 billion (approx `5,400 crore) in
the project.
RIL is exploring the possibility of setting up the
proposed terminal at Kakinada in Andhra
Pradesh, following which the under-utilised East-
West pipeline -- which connects the landfall
point for gas from the eastern offshore KG-D6
field to Bharuch in Gujarat -- can be used to
move the fuel to the company's plant. The
company is also looking at the option of using a
floating LNG facility that will receive cryogenic
ships at high sea and regasify the liquid cargo
into natural gas before piping it to shore through
a submarine pipeline.
CMYK
Electricity
Project Developments
NPCIL has begun preliminary
construction work for its upcoming
10,000 MWe nuclear power project
at Jaitapur in Ratnagiri district of
Maharashtra.
Since NPCIL has acquired about 938 ha in Jaitapur,
it has started construction of a three km boundary
wall. The contract for building the wall has been
split into 10 parts so that local contractors could be
used for building the wall.
Also, for study of the local soil, which is essential
before construction of the plant and other ancillary
buildings, soil samples from depths of 30 to 100
mtrs are being taken with bore drills. This study will
help in designing and constructing the foundations
of the buildings.
The Unit I 250 MW of the Karcham Wangtoo hydel
power project is slated to commence power
generation in March 2011.
THE HIMACHAL GOVERNMENT has reportedly
allotted a hydel power project in Lahaul valley to
L&T. The 420 MW Reoli Dugli hydel power project
was earlier granted to Moser Baer Projects which
failed to meet its financial commitments. L&T has
agreed to pay the highest bid as offered by the
previous company i.e. `80 crore.
THE UNION GOVERNMENT signed a loan
agreement worth $208 million (approx `936 crore)
with the Asian Development Bank (ADB).
The loan deal has been signed for Tranche 3 of the
Himachal Pradesh Clean Energy Development
Investment Program. This loan provides partial
funding for stages II & III of the integrated Kashang
hydel project totalling 195 MW located in Kinnaur
district, and for the 100 MW Sainj hydel project
located in Kullu district. The Himachal Pradesh
Power Corporation is the implementing agency for
this project.
INDIRA GANDHI CENTRE FOR ATOMIC
RESEARCH (IGCAR) has teamed up with BHEL and
NTPC to set up an advanced ultra supercritical coal
based power plant by 2017.
The `7,000 crore project has been taken up at the
initiative of R Chidambaram, the Principal Scientific
Advisor of IGCAR. Of the total cost, `2,500 crore
will be spent on research and development.
Electricity
The IGCAR has the capacity to design such high-
temperature boilers, BHEL is to manufacture these
plant components while NTPC is to put up such
plants. The advanced supercritical boilers, to be
designed and developed by IGCAR, will be able to
operate at a pressure of 350 bar and withstand
temperature of 700 degree centigrade. IGCAR has
designed and developed a 500 MW Prototype Fast
Breeder Reactor which is being built at Kalpakkam in
Tamil Nadu.
PFC is exploring the option of equity participation in
upcoming nuclear power projects in the country.
PFC had a discussion with NPCIL on funding
possibilities, where PFC had offered to provide debt
financing and consultancy services to start with, and
explore the possibility of equity participation in due
course.
NPCIL may need over `1,00,000 crore over the next
five to 10 years for funding its capacity expansion
27
Projects Today
February 2011
plan. It intends to have a capacity of 20,000 MWe
on stream by 2020 and 63,000 MWe by 2032.
Three consortiums have qualified for the
supercritical boiler tender of NTPC and have been
asked to submit a price bid on 20 January 2011. The
three consortiums are BGR Energy-Hitachi, BHEL-
Alstom and L&T-Mitsubishi.
NTPC had issued a tender for bulk ordering of
supercritical power equipment, with a cumulative
generation capacity of 7,200 MW. The orders are
for 11 boilers, nine for its own projects and two for
Damodar Valley Corporation.
The Union Government on 6 January 2011 allowed
NTPC to allocate as much as half the electricity
generated by projects it builds to the states where
the plant is located.
The proposal is for allocation of 50 per cent power
to the "home" states (the states where the power
CMYK
Electricity
projects are located), 35 per cent allocation of
power to the other constituents of the region and
15 per cent power as unallocated power at the
disposal of the government from the 14 power
projects.
These projects are 4x660 MW Gadarwara (Madhya
Pradesh), 4,000 MW Lara (Chhattisgarh), Talcher
(Orissa), 4,000 MW Kudgi (Karnataka), Darlipali,
3,200 MW Gajmara (Orissa), 3,960 MW Barethi
(Madhya Pradesh), 2,640 MW Gidderbaha
(Punjab), 1,600 MW Katwa (West Bengal), 1,320
MW Dhuvaran (Gujarat), 1,320 MW Khargone
(Punjab), 4,000 MW Pudimadka (Andhra Pradesh),
2,000 MW Bilhaur (Uttar Pradesh) and Kathu that
will be commissioned during the 12th (2012-17)
and 13th (2017-22) Plan periods.
Such an allocation will help NTPC compete better
with private sector rivals under the new regime of
tariff-based competitive bidding.
28
Projects Today
February 2011
NTPC is likely to float tenders for Unit I of 800 MW
of its supercritical coal based power project at
Kudigi in Bijapur district of Karnataka.
The cost of the equipment for the proposed unit will
be decided based on the international competitive
bidding.
Currently, land acquisition for the project is
underway. The Karnataka Industrial Area
Development Board has issued the final notification
for acquisition of 3,200 acre in four villages like
Kudigi, Telgi, Masuti and Golasangi in Bijapur district
for the project. Out of 3,200 acre, 1,900 acre is
reserved for the power station, 1,100 acre for the
ash pond and 250 acre for the township. The state
government has allocated 5.2 thousand million
cubic feet of water from the Almatti Dam in Bijapur
district. In November 2010, NTPC has signed PPA
with electric supply companies like Mangalore
Electricity Supply Company. The project to be taken
up in two stages involves the Stage I of 2,400 MW
(3x800) and the Stage II of 1,600 MW (2x800). The
project cost is estimated at `15,000 crore.
NTPC is unlikely to commission the proposed 750
MW (3x250 MW) Bongaigaon thermal power
station at Salakati in Assam during the Eleventh Plan
(2007-12).
The company has reportedly blamed SPML Infra for
sluggish civil works which may delay the `3,750
crore project.
BHEL has erected one boiler and work for the
second is underway. However, the turbines could
not be installed as related civil construction was not
done. The first two units of 250 MW each were to
be commissioned in FY 2011-12.
In order to expedite the work, NTPC has decided to
offload the balance civil works of Unit II and III. In
November 2010, the company had invited tenders
in this regard.
According to the revised commissioning targets set
by NTPC, one 250 MW unit is slated to be
operationalised by March 2012. Commissioning of
the residual capacity is expected during the Twelfth
Plan period (2012-17).
NTPC is mulling to set up a 4,000 MW thermal
power project at Visakhapatnam in Andhra Pradesh.
The proposed power project is likely to come up at
Pudimadaka in Visakhapatnam, a cost of `23,000
crore. In this regard, N Kiran Kumar Reddy, Chief
Minister of Andhra Pradesh, on 2 December 2010
cleared the state government's concurrence for
buying 50 per cent of the power i.e 2,000 MW
generated from the plant.
The tariff for the power generated from the plant is
to be decided by the Central Electricity Regulatory
Commission. The state government will facilitate
necessary clearances required and provide land and
water for the project.
THE NORTH EASTERN ELECTRIC POWER
CORPORATION (NEEPCO) is likely to restart work
soon at the Tuirial hydel power project in Mizoram
that was suspended in June 2004 due to law and
order problems.
Also, the CCEA approved the revised cost estimate
of the 60 MW project amounting to `913.63 crore.
The financial pattern of the total cost comprises
equity of `137.04 crore, `184.63 crore as loans
from financial institutions, subordinate loan from
the Union Government amounting to `291.96 crore
and grant from Ministry of Development of North
Eastern Region amounting to `300 crore.
The project is slated to be commissioned in 36
CMYK

Electricity

months. The state government has also signed a of Power due to environmental reasons.
PPA for purchase of power from this project at The state government had identified two sites - one
CERC rates. near Junagarh and another near Jamnagar-for
setting UMPPs of 4,000 MW capacity each. As per
BHEL has reportedly emerged as the lowest bidder the ministry, Junagarh is not possible, as it is near
for Rajasthan Rajya Vidyut Utpadan Nigam's the Gir Forest area, and as far as Jamnagar is
(RRVUNL) projects. concerned, it is near the limestone mines and
The two supercritical thermal power projects, being permission has to be sought from the Gujarat State
set up at Chhabra and Suratgarh in Rajasthan, are of Mining Corporation.
1,320 MW each and RRVUNL had floated a tender
for providing EPC services. NHPC's Kotli-Bhel hydel based power project in
The EPC work on the plants is likely to start as soon Uttarakhand have run into trouble owing to its
as the company gets the contract officially and will critical nature.
take about 36 to 48 months time to complete. The Union MoEF has revoked the environment
clearance accorded to its 320 MW Kotli Bhel Stage
THE CABINET COMMITTEE ON ECONOMIC 1B project. Further, the company is yet to obtain
AFFAIRS (CCEA) on 30 December 2010 approved
revised cost estimated for hydel based power
project in Mizoram.
The CCEA has approved revised cost estimate of
`913.63 crore for the 60 MW hydel based power
project in Mizoram. The project is being set up by
North Eastern Electric Power Corporation. The cost
includes equity of `137.04 crore, loan from financial
institutions amounting to `184.63 crore,
subordinate loan from the government amounting
to `291.96 crore and grant from Department of
North Eastern Region amounting to `300 crore and,
interest during construction of `36.57 crore.
29
Projects Today
The project is slated to be commissioned in 36 February 2011
months from the date of investment approval of
revised cost estimate.

The Union Government has approved nine solar

power projects to be set up in Haryana by
independent power producers (IPPs).
The government has approved solar power projects
with a combined capacity of 8.8 MW capacity to be
set up in Haryana. These projects are slated to be
commissioned by September 2011. THE HARYANA
RENEWABLE ENERGY DEVELOPMENT AGENCY
(HAREDA) had invited proposals from IPPs for the
installation of solar power generation plants of 100
KW to 2 MW capacities in the state under the
Jawaharlal Nehru National Solar Mission. After the
approval of the state government, HAREDA issued
pre-registration certificates to the 22 developers for
setting up of solar power projects of 20 MW
capacity, of which nine projects had been approved
by the government.
Two sites offered by the GUJARAT GOVERNMENT
for setting up ultra mega power projects (UMPPS)
have not been found feasible by the Union Ministry
forestry clearance for the 195 MW Stage 1A
project. So far, the company has spent around
`70.21 crore and `48.60 crore, respectively, on
stage-1A and 1B of the projects. The estimated
costs of the two stages are `1,298.49 crore and
`1,911.33 crore, respectively.
Also, the Central Electricity Authority has extended
the validity of its concurrence to both the projects
till October 2011. Both the projects are run of river
proposed on Ganga river and its tributaries in
Garhwal district of the state. While the Stage IB is
proposed on river Alaknanda, Stage IA is proposed
on river Bhagirathi.
THE CHHATTISGARH RENEWABLE ENERGY
AND DEVELOPMENT AGENCY (CREDA) has
CMYK
Electricity
begun the process to install solar power plant at 20
premises in Raipur.
The solar energy plant are be set up according to
the area of the premises. If the area is large, more
plants will be required to cater the energy
requirement. After installing the system in the
premises, CREDA plans to power a few industrial
units also with the solar energy.
The premises to be powered with solar energy
include Governor House, Chhattisgarh Legislative
Assembly, and Mantralaya in the new capital area,
police headquarters and others. The other
government and private buildings where the system
are to be installed include Collectorate, Chhattisgarh
State Electricity Regulatory Commission, Ambedkar
hospital, medical college, administrative academy,
headquarters of fisheries department, Divisional
Railway Manager's office, railway station, commercial
tax building, indoor stadium, Municipal Corporation
office, National Institute of Technology, Hidayatullah
Law University, Samvad Bhawan, RIT and Kanger
Valley School.
Land acquisition for the proposed 2,000 MW
thermal power plant planned by ORISSA
30
Projects Today
THERMAL POWER CORPORATION (OTPCL) is
expected to commence soon.
The project needs 2,000 acre in all, out of which
government land is 55 per cent, private land 42 per
February 2011 cent and forest land comprises only three per cent.
The power project is to come up at Kamakhya
Nagar. As of now, no coal block has been allotted by
the Union Government for the project. However, it
has been decided to use the Baitarani West coal
block allotted to Orissa Hydro Power Corporation
and Mandakini-B coal block allotted to Orissa
Mining Corporation for the project. The project is
expected to commence power generation from
2015-16.
THE ORISSA GOVERNMENT on 3 January 2011
signed MoUs with Independent Power Producers (IPPs).
The state government has signed the MoUs with KU
Projects, SPI Ports and NSL Nagapatnam Power
Company. The total investment committed by these
three IPPs is `20,469.60 crore. These IPPs have a
combined power generation capacity of 3,960 MW.
The state government is likely to get around 475-
554 MW of power from these IPPs. The tariff for
the power will be determined by Orissa Electricity
Regulatory Commission.
THE BIHAR STATE ELECTRICITY BOARD (BSEB) on
6 January 2011 signed agreements with the NTPC
and Krishak Bharati Cooperative (KRIBHCO) for
setting up thermal power plants in the state.
The two power plants - one at Nabinagar in
Aurangabad and another at Chausa in Buxar, will
generate 1,320 MW each. There will be joint
collaboration of BSEB with NTPC for Nabinagar
plant. KRIBHCO will be venturing into the power
sector with its first thermal power plant at Chausa
in agreement with the BSEB. The state government
is likely to procure 85 per cent of 1,320 MW
power generated by the KRIBHCO at Chausa and
75 per cent of the total generation from the
Nabinagar plant.
THE MADHYA PRADESH POWER GENERATING
COMPANY (MPPGCL) is likely to begin work on
the Phase II of Singaji thermal power project in
Khandwa district once environmental clearances
have been received. The Phase II comprises two
units of 660 MW each and is to cost `6,500 crore.
The first phase of 2x600 MW capacity is expected
to be completed by 2012. The total land
requirement of the project is 1,232 ha of which
1,163 ha have already been acquired. Phase I entails
a cost of `6,750 crore. Of the total,`5,200 crore
debt portion will be obtained from various banks
and financial institutions. The state government will
contribute the rest 20 per cent (`1,300 crore) as
share capital.
THE KARNATAKA GOVERNMENT on 4 January
2011 signed PPAs for various power projects in the
state.
The state government signed the PPAs with NTPC,
Neyveli Lignite Corporation and Srinivasa Gayathri
Resource Recovery.
NTPC is setting up a 4,000 MW coal based power
plant at Pudimadakka in Vishakapatnam district of
Andhra Pradesh. The state government is likely to
get 600 MW of power from the plant. The state
government is to get 400 MW of power from NLC's
1,980 MW coal based power project being set up at
Sirkali in Nagapattinam district in Tamil Nadu.
Further, PPA was signed with Srinivasa Gayathri
Resource Recovery for its 8 MW waste based power
project at Manduru village in Bengaluru. The power
project is coming up at a cost of `80 crore. The
company has entered into an agreement with
Bruhat Bengaluru Mahanagara Palike to implement
the project under which the company would receive
1,000 tonne of municipal solid waste per day.
Two coal based power projects coming up in Chennai
are likely to be commissioned by end-2011.
CMYK

Electricity

Both projects - 1,200 MW (2x600 MW) North approximately 560 tonne of mounting structures,
Chennai Thermal Power Station (NCTPS) expansion construction of control room, LT panel, metering
and 1,000 MW (2x500 MW) Vallur power project - room, S/S & security room, installation of five units
are being executed on nearby plots in Ponneri taluk of 1,050 (350X3) KW central inverters, installation
of Tiruvallur district. of communication & monitoring equipment and
Of the two units of 500 MW each in Vallur, one unit network up to each inverter and grid interfacing and
is expected to be completed by October and synchronising.
another by December 2011. The two units of The plant will be commissioned in a period of 12
NCTPS will start generation by January 2012. months.
While the Tamil Nadu Government will get about 70
per cent of power generated at Vallur, it will get full TEHRI HYDRO DEVELOPMENT CORPORATION
share from the NCTPS expansion project. NTPC- INDIA (THDCIL) has forayed into thermal energy
TAMIL NADU ENERGY COMPANY is executing business.
both projects. THDCIL has already signed an MoU with the Uttar
Pradesh Government to set up 1,320 MW Khurja
DAMODAR VALLEY CORPORATION (DVC) is
planning to add about 1,500 MW thermal power
capacity.
One unit of 500 MW each at the greenfield power
plants at Durgapur in West Bengal and Kodarma in
Jharkhand are to be operational by March 2011. On
completion, both the plants are expected to
generate 1,000 MW (2x500 MW) each. The plants
are scheduled to be fully operational by December
2012.
Unit I of 500 MW at Kodarma thermal power
station (TPS) has already been put in trial generation
mode. A unit of similar capacity is to be
commissioned at Durgapur Steel TPS shortly.
31
Projects Today
The Unit VII of 500 MW under the Phase II of the February 2011
Mejia TPS in Bankura district of West Bengal is
expected to be fully operational by February 2011.

JAIPRAKASH POWER VENTURES is setting up the

1,000 MW (4x250 MW) plant at a cost of `7,000
crore. The remaining three units of the plant are
likely to be completed by June 2011.
The company has tied up with Power Trading
Corporation of India to sell 80 per cent of the
electricity produced at the Karcham-Wangtoo
project.
THE PUNJ LLOYD GROUP has inked a 25-year PPA
with NTPC Vidyut Vyapar Nigam (NVVN) for sale of
power from a 5 MW PV based solar power plant to
come up at Phalodi area of Jodhpur district in
Rajasthan.
The project is being set up as part of Jawaharlal
Nehru National Solar Mission (JNNSM).
This plant is being developed by Punj Lloyd Solar
Power. The scope of work for the project will include
site preparation of approximately 35 acre,
construction of about 8,000 concrete foundations
for module mounting structures, installation of
super thermal power plant in Bulandshahar in Uttar
Pradesh.
Under the MoU, THDCIL will provide 60 per cent of
the power to Uttar Pradesh and sell the remaining
40 per cent to Himachal Pradesh, Rajasthan and
Uttarakhand. THDCIL has already signed PPA with
these states.
The proposed plant will be set up at an investment of
`5,500 crore by 2015. The funds for the project are to
be raised through financial institutions. THDCIL is
likely to commission 400 MW Koteshwar dam on
Bhagirathi river in Uttarakhand in February 2011.
KSK ENERGY VENTURES on 5 January 2011
commissioned the Unit III of 135 MW of Wardha
CMYK
Electricity
Warora coal based power project in Maharashtra.
The company has completed lighting up of the
boiler and steam blowing with respect to the Unit III
of the 540 MW (4x135) Wardha Warora power
project. It is anticipated that, immediately upon
completion of the evacuation permissions, the unit
will witness synchronization with the grid and
commencement of coal based power generation
from this unit as well. Thereafter, the company
intends to undertake the stabilisation and associated
test protocols.
The Unit IV of the similar capacity is likely to be
completed by March 2011.
SASAN POWER, Reliance Power's subsidiary has
acquired 236.39 acre more for the 4,000 MW
UMPP recently.
With this, the total of acquired land has reached
3,027.28 acre, or around 81.2 per cent of the land
requirement of 3,728.47 acre for the project in
Madhya Pradesh.
32
Projects Today
February 2011
As per the latest figures released by the Central
Electricity Authority, around 1,879.47 acre is now
available with the company for the construction of
the main plant, against the estimated requirement
of 2,034.21 acre. Likewise, 473.69 acre has been
acquired, out of the 811.4 acre needed, for the
construction of the ash pond, while around 429.31
acre, out of the total land requirement of 448.37
acre for the residential colony, and have been
acquired.
Meanwhile, for the coal handling plant and other
important project components, such as the intake
and discharge water channels, ash pipeline, etc.,
199.10 acre, out of 235.81 acre, have been
acquired, while another 45.71 acre have been
acquired for developing coal transportation
facilities. The requirement for the fuel evacuation
system is pegged at 198.68 acre.
RELIANCE VENTURE ASSET MANAGEMENT
(RVAM), the venture capital arm of the Reliance
ADA Group, is likely to acquire a minority stake in
AllGreen Energy. The deal size is learnt to be `60-70
crore. Along with RVAM, the energy arm of GE is
also investing in AllGreen.
AllGreen plans to establish multiple biomass-based
RE projects in India within the next 10 years. The
first plant is to be located in Perundurai, Tamil Nadu,
with a total capacity of 6.4 MW. Plans are afoot to
set up two more plants in south India in 2011.
GMR RAJAHMUNDRY ENERGY (GREL), is likely to
achieve commercial operation declaration (COD) at
the Unit I 384 MW of its combined cycle power
project (CCPP), located near Rajahmundry, in the
East Godavari district of Andhra Pradesh, by
October 2011.
The second 384 MW unit is likely to be
commissioned in January 2012. The synchronisation
of gas turbine generators for the two units is
targeted for April and July 2011.
GREL has already obtained all the statutory
clearances for the project and attained financial
closure in September 2010, with IDBI as the lead
banker. It has also signed the gas transmission
agreement with GAIL for the supply of the
required fuel.
Besides, the EPC contract for the CCPP has been
given to L&T and the power evacuation network to
SEW Infrastructure, for likely completion in April
2011.
SUZLON ENERGY on 6 January 2011 signed an
agreement with Hindustan Zinc, a Vedanta Group
company, for setting up wind farms.
Suzlon is to set up, operate and maintain 150 MW
of wind farms for Hindustan Zinc, for $191 million
(approx `859.5 crore). The project is to be
completed in phased manner. These wind farms are
to come up in Karnataka, Rajasthan, Tamil Nadu and
Maharashtra.
Under the Phase I, wind farms with a capacity of 50
MW are to be set up with completion by March
2011. The second and final phase of 100 MW will
be progressively completed by September 2011.
Suzlon will be supplying a mix of its S82-1.5 MW
and S88-2.1 MW wind turbine models. The power
generated will be purchased by the respective
state's distribution utilities at the prevailing feed-in
tariff under a long-term PPA.
RELIANCE POWER (R-POWER) is learnt to have
signed the PPA with NTPC.
The said PPA has been signed with NTPC Vidyut
CMYK
Vyapar Nigam (NVVNL) for R-Power's upcoming
100 MW solar power project at Jaisalmer in
Rajasthan.
The project is to be implemented by Rajasthan Sun
Technique Energy (RSTEPL), a subsidiary of Reliance
Power. It is slated to be commissioned by May 2013.
In December 2010, RSTEPL was awarded a LoI by
NVVNL for purchase of 100 MW of solar power
under the Jawaharlal Nehru National Solar Mission.
The sale of power was to be from the solar power
project being set up by the company in Rajasthan.
RELIANCE POWER is likely to obtain environment
clearance for its 700 MW Tato-II hydel power
project soon.
The expert appraisal committee (EAC), under the
MoEF is expected to consider the proposal over its
forthcoming meeting. Forest clearance by the
ministry is expected to be granted by March 2011.
Civil work is slated to commence by March 2011.
Also, the DPR for the project is under inspection of
the Central Electricity Authority. The project
entailing a cost of `4,045 crore is to be completed
by 2017.
SINGARENI COLLIERIES COMPANY is introducing
Longwall technology in Adriyala project,
Ramagundam in Andhra Pradesh, to enhance
underground coal production. It will have an annual
production capacity of 2.81 million tonne.
Another Longwall project with production capacity
of 2.7 million tonne is also being introduced in
Kakatiyakhani. The company produces 50 million
tonne of coal, out of which 24 per cent is from
underground mines.
LANCO KONDAPALLI POWER has achieved
financial closure for its project.
The company has mopped up a debt worth `1,827
crore for developing the 732 MW (2x366) gas
based power project in Andhra Pradesh. A
consortium of six banks and financial institutions,
with Axis Bank in the lead, are providing the debt
required for the project.
The project costing `2,610 crore will have equity of
`783 crore.
EAST NORTH INTERCONNECTION COMPANY
(ENICL), a wholly-owned subsidiary of Sterlite
Technologies, has achieved the financial closure for
its Ultra Mega Power Transmission Project (UMTP).
NICL has raised a debt of `700 crore. SBI Caps was
the sole arranger for the debt syndication.
The East-North Interconnection mega transmission
Electricity
project aims to evacuate power from the North-East
and Eastern states to the Northern region of India.
It involves establishment of two 400 kV double
circuit transmission lines that will respectively
connect Assam with West Bengal and Bihar. The
lines are likely to be commissioned by March 2013.
Assam based NUMALIGARH REFINERY (NRL) on 9
January 2011 signed an MoU with Assam Power
Generation Company (APGCL) for development and
implementation of new power projects in the state.
The MoU provides for joint evaluation of new
prospective power projects by carrying out
feasibility studies and environmental impact
assessment; thereby identifying viable power
projects for possible execution. Execution of the
projects will be carried out by forming a JV
company promoted by both NRL and APGCL.
ATLANTIS RESOURCES CORPORATION, a London
based marine energy developer, along with Gujarat
Power Corporation (GPCL), has signed an MoU
with the Gujarat Government during the Vibrant
Gujarat Global Investors Summit 2011.
The companies propose to set up a 50 MW tidal
power project off the coast of Gujarat. The project
is likely to cost `750 crore with commissioning
planned for 2013. The final cost of power per unit
will be determined at the completion of front-end
33
Projects Today
engineering and design (FEED) phase. February 2011
KU PROJECTS, a fully-owned subsidiary of Ind-
Barath Power Infra (IBPIL), plans to set up a 1,320
(2x660) supercritical thermal power plant at
Pitamahul in Sonepur district at a total investment of
`7,260 crore. Construction work is expected to
commence in the first quarter of 2011 and the first
unit is likely to be commissioned within 30 months
of signing of the MoU.
Likewise, SPI Ports intends to set up a 1,320 MW
(2x660) coal based supercritical power plant at
Mahakalpada in Kendrapara district at a total
investment of `6,609.60 crore.
The company will utilise the sea water through
desalination process and use air-cooled condensers
for the proposed power plant. Similarly, NSL
Nagapatnam Power Company's 1,320 MW (2x660)
supercritical thermal power project is to come up at
Banamalipur in Angul district at an investment of
`6,600 crore. The company will draw water from
the Mahanadi river system.
US based BRIGHTON GROUP plans to set up a nuclear
power equipment manufacturing facility in India.
CMYK
Electricity
The proposed plant will be set up on 800 acre at
Nakkapalli in Visakhapatnam district of Andhra
Pradesh at a cost of `2,880 crore.
Brighton has sought SEZ status for their facility
which will be ready for commercialisation in 24-30
months. The Andhra Pradesh Government and
Brighton are likely to sign an MoU for the project in
the next two weeks.
US based SUNEDISON is planning to invest in solar
power projects in India.
The company has earmarked $100 million (approx
`450 crore) for the purpose. Currently, it is
implementing solar projects in Gujarat (25 MW),
Rajasthan (5 MW) and Uttar Pradesh (1 MW).
Also, the company is keen to raise both debt and
equity for the projects from within India.
The KONARK GROUP is likely to set up renewable
power projects in India.
34
Projects Today
February 2011
The Group plans to set up 100 MW of solar and
wind power projects at an investment of `1,000
crore. It is looking at a 25:75 equity debt ratio for
the `1,000 crore capex plan. For the `250 crore
equity part, the promoters intend to bring in `150
crore, and the balance will be private equity.
The Group has received an allocation of 5 MW in
Gujarat. It has signed a 25-year PPA with the state
government. Land has been identified in Kachchh
for the project which is to use imported thin film
technology. The project is to be completed by
December 2011. Also, the Group has joined hands
with the Rajasthan Government for 50 MW of solar
power generation. The state government has
allocated about 410 acre near Jodhpur for the
project. The state government has also accorded an
evacuation certificate to Konark for 50 MW, as a
comprehensive legislation for renewable energy is
awaited.
Meanwhile, plans are afoot to set up wind farms in
Tamil Nadu. A consultant has been appointed and
the proposal is awaited.
Chennai based NAGARJUNA CONSTRUCTION
COMPANY, through its subsidiary NCC Power
Projects, has acquired a 55 per cent equity stake in
Nelcast Energy Corporation (NECL) for an
undisclosed sum.
NECL is currently developing a 1,320 MW a coal
based power project at Krishnapatnam in Andhra
Pradesh. The project is estimated to cost `6,822
crore. The power generated from the plant will be
evacuated at 400 kV voltage level to the existing
substation of power grid at Krishnapatnam. NECL
has acquired the project land and also secured all
the requisite approvals.
MACQUARIE SBI INFRASTRUCTURE FUND
(MSIF) and the State Bank Of India (SBI) on behalf
of the SBI Macquarie Infrastructure Trust are to
invest ` 580 crore in Moser Baer Power (Madhya
Pradesh)'s (MBPMPL) power plant.
MBPMPL, a subsidiary of Moser Baer Projects, is
developing a 2,520 MW thermal power plant in
phases at Anuppur with an investment of
`13,700 crore.
Phase I of 1,200 MW is likely to cost `6,240 crore.
The EPC contract for Phase I has already been
awarded to Lanco Infratech and construction at the
site has commenced. The entire project is expected
to be commissioned in phases by the end of 2014.
Project Impediments
The proposed 4,000 MW ultra mega power project
(UMPP) in Surguja district of Chhattisgarh has been
delayed by another two months.
The last date of submission of technical bids for the
project has been extended till 8 March 2011 from 7
January 2011.
POWER FINANCE CORPORATION is the nodal
agency for the project. Initially, the UMPP was
allocated two blocks at Puta and Parogia but the
MoEF refused to approve mining as the blocks lay in
forest land that has been declared as a 'no-go' area.
BHEL'S proposed three-way JV to build nuclear
turbines with Alstom has been stalled as the Union
Government has objected to the presence of NPCIL
as a partner, citing conflict of interest.
The department of atomic energy contends that
NPCIL cannot be both a buyer and supplier of
nuclear turbines, as this could hurt price discovery.
CMYK
The project has already secured commitments
worth over `7,500 crore to build turbines for 10
nuclear energy plants of 700 MWe each.
Project Completion
Manmohan Singh, Prime Minister of India, on 7
January 2011, dedicated to the nation a 100 tpa
capacity reprocessing plant at the BHABHA
ATOMIC RESEARCH CENTRE (BARC) in Thane
district of Maharashtra.
The plant will use spent fuel from indigenous
nuclear power plants for fast breeder reactors. The
plant is essential for the country's closed-fuel-cycle
three-stage nuclear programme. The plant is
expected to replace the existing 10 tpa facility at
BARC. The Unit IV of 220 MWe Kaiga Generating
Station (KGS-4) located in Uttar Kanada district of
Karnataka was connected to the southern power
grid on 20 January 2011.
The Atomic Energy Regulatory Board has granted
clearance to the plant of NPCIL. The installed
capacity of Kaiga station is now 880 MWe. The unit,
fuelled by indigenous uranium, will supply electricity
to Andhra Pradesh, Karnataka, Kerala, Tamil Nadu
and Puducherry.
With the synchronisation of KGS-4 with the grid,
India's nuclear power capacity has gone up to 4,780
MW, with 20 reactors in operation.
Roadways
Project Developments
THE UNION MOEF on 12 January
2011 gave clearance to the
construction of a 1.6 km cloverleaf
bridge at the Worli end of the
Worli-Haji Ali Sea Link in Mumbai.
The ministry approved the newly designed
alignment of the sea link's Haji Ali connector that
will now land on Dr Annie Besant Road, 400 mtrs
ahead of the dargah square.
Despite two carriageways of the sea link being
commissioned more than a year ago, commuters
could not use the full eight lanes of the 4.7 km link.
This is because the North-bound carriageway did not
have its own landing at Worli. The proposed
connector (cloverleaf bridge) will end at Worli close
to Thadani junction - a little further from the current
connecting bridge on north side. The construction of
the bridge is part of the Worli-Haji Ali sea link project.
Electricity / Roadways
Reliance Infrastructure (R-Infra) is likely to begin work
by March 2011 with completion slated for 2014.
The work on five major National Highway (NH)
projects in Orissa is likely to commence in February
2011. They are Bhubaneswar-Puri; Bhubaneswar-
Sambalpur; Bhubaneswar-Chandikhole; Sambalpur-
Bargarh and Rimuli-Rajamunda road projects.
While work on four-laning of the 60-km
Bhubaneswar-Puri highway is expected to be
completed soon, the remaining projects will be
commissioned within three years. The work is being
taken up on the PPP mode and the cost assessment
will be made by NHAI.
The Sambalpur-Bargarh (88-km) and Rimuli-
Rajamunda (106 km) highways will be four-
laned while the Bhubaneswar-Sambalpur and
35
Projects Today
February 2011
Bhubaneswar-Chandikhole (62 km) highways will
be six-laned.
THE PUBLIC PRIVATE PARTNERSHIP APPRAISAL
COMMITTEE (PPPAC) under the Union Ministry of
Finance has approved highway projects worth
`11,000 crore.
The PPPAC has cleared the Jabalpur-Bareilly-
Rajmarg-Jabalpur circular highway running through
Madhya Pradesh and Uttar Pradesh. The project
covering a distance of 290 km may require
investment worth `2,445 crore.
The Ahmedabad-Vadodara Expressway spanning
103 km is expected to cost `2,381 crore.
The Eastern Peripheral Expressway, from Kundli in
Uttar Pradesh on the outskirts of New Delhi on
National Highway I, passing through Baghpat in
Haryana, bypassing Ghaziabad, Noida, Faridabad
CMYK
Roadways
and terminating at Palwal in Haryana, covering 135
km and costing `2,698 crore, has also been cleared
by the committee.
Further, the PPPAC approved the Beawer-Pindwara
highway in Rajasthan, the Nagpur-Wainganga
Bridge highway in Maharashtra, the Walajahpet-
Poonamallee highway in Tamil Nadu. The Union
Ministry of Road Transport and Highways is likely to
award these projects by March 2011. The RFP
process for these projects is over and parallel
financial bidding is underway.
THE WORLD BANK (WB) on 14 January 2011
inked an agreement with the Government of India.
WB will extend a $1.5 billion loan (approx `6,750
crore) for building 24,000 km of all-weather roads
in rural areas. The project will also be partly funded
by the Government of India.
The loan will be used to fund the Pradhan Mantri
Gram Sadak Yojana (PMGSY) in seven economically
poor areas of Uttar Pradesh, Himachal Pradesh,
Jharkhand, Meghalaya, Punjab and Uttarakhand.
Other states may also be included in the
programme in the next five years.
36
Projects Today
THE KARNATAKA ROAD DEVELOPMENT
CORPORATION (KRDCL) has taken up the
development and upgradation of 1,800 km of roads
under the Mega Road Development Programme in
February 2011 the Hyderabad-Karnataka region.
The development of the road network was taken up
by the state government through PPP. The KRDCL
had conducted a feasibility study and taken up work
on 15 roads after inviting for tenders. The 15 link
roads include Tavargera-Kanakagiri-Gangavathi
(42.9 km), Tavargera-Sindhanur (41.1 km),
Kushtagi-Tavargera (23.2 km), Mudgal-Tavargera
(31.3 km), Gangavathi-Kampli-Kudithini (41 km),
Tintini-Chinchodi-Jalahalli-Kasargod-Devadurg
(32.3 km), Devadurg-Masarkal-Gobbur-Kalmala,
Talikot-Hunasagi-Devapur (48.6 km), Chowdapur-
Gulbarga (32.7 km), Afzalpur-Chowdapur (22.3
km), Maharashtra border near Hosur to Afzalpur
(44.3 km), Bidar-Ekhelli (28 km), Ekhelli-Chincholi
(33.5 km), Mundargi-Hadagali (24 km) and
Hadagali-Harapanahalli (27.7 km).
THE MAHARASHTRA COASTAL ZONE
MANAGEMENT AUTHORITY (MCZMA) has
approved the MMRDA's Eastern Freeway project in
Mumbai.
MCZMA has cleared the `531 crore project that will
overrun mangrove land. The authority has allowed
the MMRDA to cross the Mahul creek, mangroves
near Bhakti Park in Wadala and the adjoining BPT
pipeline for the Anik-Panjarpol Link Road.
The 22-km corridor will be completed in three
phases: the first 12-km-stretch from Fort to Anik
depot, the second 5-km-phase from Anik to
Panjarpol, and third 2.5-km stretch from Panjarpol
to Mankhurd and then to Ghatkopar on the Eastern
Express Highway.
The Uttar Pradesh Government has accorded
approval to go ahead with the proposed eight-lane
Upper Ganga Canal Expressway project.
THE UTTAR PRADESH EXPRESSWAYS
INDUSTRIAL DEVELOPMENT AUTHORITY
(UPEIDA) has invited tenders which will be opened
on 31 January 2011 after being shortlisted to six
contenders. The 212-km expressway flanking the
Upper Ganga Canal is proposed from Sanauta
Bridge in Greater Noida to Purkazi on the Uttar
Pradesh-Uttarakhand border. It is to cost `8,450
crore.
As many as 12 entities have evinced interest in the
bus terminals project in Uttar Pradesh.
The companies which have bid for the project
include Flora and Fauna Housing Development,
Mega Engineering, Ramky Infrastructure, Pacific
Developers, NKG Infrastructure, DSC Constructions,
MSK Projects, SPML Infra, Vijai Infrastructure, C &
C Constructions, SEW Infrastructure and PNC Infra
Tech.
In all, 226 bus stations are spread over 390 acre and
in order to provide better facilities such as hotels,
shopping malls and other facilities at the bus
terminals, the state government has decided to
grant a maximum floor area ratio (FAR) of up to 250
per cent and maximum ground coverage
permissible up to 30 per cent. In end-December
2010, UTTAR PRADESH STATE ROAD
TRANSPORT CORPORATION had invited RFPs to
get the bus stations commercially modernised and
re-developed under the PPP model on the DBFOT
basis.
The project cost is estimated at `3,090 crore. The
developer will be responsible for conceptualising
and operating the premises by building bus station-
cum-commercial complexes at these sites for a lease
period of 36 years.
THE UTTAR PRADESH STATE HIGHWAYS
AUTHORITY (UPSHA) has short listed 14
individual/consortium companies for upgradation of
Delhi-Saharanpur-Yamunotri road project in Uttar
Pradesh.
CMYK
The shortlisted companies are - Infra-13 Leighton
Contractors India Consortium, L&T Infrastructure
Development Projects, GVK Transportation, Punj
Lloyd Infrastructure, IL & FS Transportation
Networks, Madhucon-KSS Consortium, DSC,
Shapoorji Pallonji & Company, KMC Construction,
VIL-SREI-JMC (Consortium), Oriental Structural
Engineers, PNC-BFUL-SMSIL Consortium, Sew-
Prasad Consortium and, Ramky Infrastructure.
These companies have been asked to submit
financial bids by 31 January 2011, thereafter work
order is to be issued. The project envisages
upgradation/maintenance of Delhi-Saharanpur-
Yamunotri Road on SH-57 from Ch 10.911 to Ch
217.00 on DBFOT basis in the state.
THE UTTAR PRADESH STATE HIGHWAYS
AUTHORITY (UPSHA) has shortlisted six companies
for upgradation of Varanasi-Shaktinagar road in
Uttar Pradesh.
The shortlisted companies are - Infra-13 Leighton
Contractors India Consortium, L&T Infrastructure
Development Projects, GVK Transportation, Punj
Lloyd Infrastructure, IL & FS Transportation
Networks and, Reliance Infrastructure.
The shortlisted have been asked to submit financial
bids. The RFQs are likely to be opened soon. The
project envisages upgradation/maintenance of
Varanasi-Shaktinagar road on SH-5A from Ch 0.00
to Ch 117.65 and Ch 166.13 to Ch 183.94 on
DBFOT basis in the state.
THE MMRDA's Santacruz-Chembur Link Road in
Mumbai is likely to be ready by June 2011.
The 6.5 km long link road will not only connect the
eastern and western suburbs but also ease travel to
Navi Mumbai. The road is set to have a double-deck
bridge to help disperse traffic smoothly at Kurla and
then at Chembur. It is expected to cut travel time
between Santacruz and Chembur from around two
hours to 17 minutes.
The link road is expected to be ready at a cost of
`242 crore. When mooted in 2003 under the
Mumbai Urban Transport Project, the link road was
to be originally to be built at a cost of `127 crore
with a deadline of 2005. But it faced hurdles with
issues over rehabilitating the project-affected
people and subsequent suspension of funding by
the World Bank.
Work on the bridge for metro over the railway line
at Andheri from East to West is likely to be
commenced shortly by the MMRDA.
MMRDA has received approvals from the Railways
Roadways
for the project as the bridge would be passing
through its jurisdiction. The 183-mtrs long bridge
will be constructed in three spans of 61 meter each.
The fabrication work of one span is already over and
the rest is in progress.
A 50:50 JV between RAMKY INFRASTRUCTURE
and IL&FS TRANSPORTATION NETWORKS has
tied up funds with respect to the debt syndication of
` 1,060 crore through Canara Bank.
The consortium had bagged a project from the
Andhra Pradesh Road Development Corporation for
four-laning (212.5 km) of the existing two-lane
stretch from Narketpally to Addanki and
Medarametla road on state highway-II. The cost of
the project is `1,760.53 crore. The concession
agreement for the project, to be executed under
DBFOT format, was signed on 23 July 2010. The
project has a concession period of 24 years,
including the construction period of 910 days.
37
Projects Today
February 2011
FEEDBACK VENTURES, the infrastructure services
firm, on 14 January 2011 signed a deal with Brisa,
Auto-estradas de Portugal. The deal was inked for a
JV providing operations, maintenance and tolling
services in the highways sector. Feedback Ventures
will have a 60 per cent stake in the JV company -
Feedback Brisa Highways OM&T - while the
remaining 40 per cent will be with Brisa.
GVK Power & Infrastructure arm has mopped up
funds for a road project in Rajasthan.
GVK DEOLI KOTA EXPRESSWAY (GVKDKEPL), a
subsidiary of GVK Power, on 5 January 2010 signed
the financing document with a conglomerate of
lenders for revamping the existing Deoli-Kota
section of National Highway.
The project estimated to cost is `823.4 crore is to be
financed by equity of `164.7 crore and term loan of
`658.7 crore. The four-laning project on NH No-12
CMYK

Roadways / Railways

is being executed under the DBFOT basis. The

concession period for the project is 26 years
Railways &
including construction period of 30 months. Urban Transportation
Civil work on five more radial roads totalling nearly
60 km along different corners of Hyderabad is likely Project Developments
to commence soon.
HYDERABAD GROWTH CORRIDOR (HGCL), a JV THE UNION GOVERNMENT on 21
company of the Hyderabad Metropolitan January 2011 approved the Jaipur
Development Authority and Infrastructure metro project in Rajasthan.
Corporation of Corporation, created to execute the The government has sent the
work of 158 km long Outer Ring Road (ORR), is approval letter to Urban
preparing the ground for these five radial roads at Development Department of Rajasthan. The letter
Jeedimetla, ECIL X roads, Nagole junction, Shaikpet will help the concerned authorities in acquiring land
and Mettuguda. and granting further approvals for the project.
A total of 33 radial roads have been proposed at a The Phase I of 9.25 km route from Mansarovar to
cost of `2,500 crore and the Japan International Chandpol and the Phase II of 23 km from Panipech
Cooperative Agency which is providing funds to to Sitapura industrial area will be completed on
parts of the ORR has also agreed to provide PPP model.
assistance to the tune of `380 crore for these roads.
Some of these stretches including two at Gachibowli
and Rajendranagar have already been attended to
and work is on to provide connectivity from Inner
Ring Road to ORR at Nagarjunasagar, Srisailam and
Vikarabad. HGCL has invited tenders for consulting

38
Projects Today
services for supervision of strengthening and
widening of radial roads running to 60 kms and split
into five packages. These stretches are 8.50 km
from Jeedimetla to Saragudem, 10.20 km from EXIL
February 2011 X roads to Cheriyal X roads, 15 km from Nagole
junction to Gourelly X roads, 6 km from Shaikpet to
Kokapet and 18 km from Mettuguda to
Jawaharnagar.

Project Impediment
The six-laning of the Mysore-Bengaluru Outer Ring
Road project has been delayed.
The project being executed by MYSORE URBAN
DEVELOPMENT AUTHORITY has missed the
deadline of February 2011 and will now be
completed in May 2011. The project is being
executed at a cost of `230 crore.
The road to be upgraded under Package I of the
project will cover a distance of 24.715 km on the
western side from Mysore- Bengaluru Road to
Mysore-Nanjangud Road and 7.5 km on the eastern
side to Mysore-Bannur Road. Package II entails the
construction of a service road from Mysore-
Bengaluru Road to Mysore-Nanjangud Road
starting from 7.00 to 15.0 km. Package III will cover
the service road from 15.00 to 24.715 km on
western side. The project also comprises service
roads from 0.00 km to 7.0 km on western side.
THE UNION GOVERNMENT has given in-principle
approval to the proposed high speed rail link project
between Bengaluru and its new international
airport. The Government has agreed to modify the
Metro Railways (construction of works) Act, 1978
to cover parts of Bengaluru that do not currently fall
within the Greater Bengaluru municipal region.
Under the existing laws, railway projects outside
city municipal limits are the prerogative of the
Indian Railways. Now, the decision to modify the
Act will put Bengaluru alongside Kolkata and New
Delhi - where railway projects outside the
metropolitan city limits have been implemented by
agencies other than the railways.
The Government will give viability gap funding to
the extent of `1,047 crore. It will now be a key
partner in Bangalore Airport Rail Link, the
implementing agency for the `6,689-crore project.
THE CENTRAL RAILWAY (CR) and the Mumbai
CMYK
Port Trust (MbPT) are developing an elevated rail
corridor between Kurla and Wadala.
The 5.66 km new Kurla-Wadala line will be linked to
the 1,483 km national dedicated freight corridor of
the western region which is being built between
Mumbai's Jawaharlal Nehru Port and Dadri in Uttar
Pradesh. It will be partially elevated.
The proposed project is estimated to cost `104
crore. The CR and the MbPT have already signed an
MoU for the project.
SAIL on 15 January 2011 has signed an MoU with
Indian Railway Construction (IRCON) International.
The MoU has been signed for jointly working on
public-public and PPP projects of the Indian
Railways, as well as participating in rail
infrastructure projects in developing countries.
Currently, SAIL is in the process of identifying
definitive projects in India and overseas.
Once the projects are identified, specific JV
agreements will be signed for each venture by both
the companies. IRCON has already identified a
number of projects in which both the companies
can participate jointly.
The two parties are yet to decide on the quantum of
investments.
The Phase III Delhi metro network has been
extended further from 70 to 105 km based on the
suggestions of the Delhi Government.
The DMRC has now realigned some of the
corridors. Now, the metro will be going into outer
Delhi areas like Bawana as well as touch Jamia Milia
Islamia University. The Phase III is expected to cost
`28,000 crore for the Delhi extension, and is
expected to be completed by March 2016. The
extension into Faridabad will cost `3,000 crore more
while that into Ghaziabad and Bahadurgarh will be
an additional `12,000 crore.
The major corridors in this phase include Yamuna-
Mukundpur, covering 46 km while the Kalindi Kunj-
Janakpuri stretch will be 32 km. The Central
Secretariat-Kashmere Gate will be covering 9.5 km
and the Jehangirpuri-Badli line will cover 5.5 km.
the biggest addition is the line to Jamia Millia Islamia
university, which will extend from Nehru Place and
will cover Outer Ring Road. Kalkaji will be the
interchange station on this line.
The DMRC is likely to float global tenders for the
proposed Phase-III metro expansion in April 2011.
The Phase-III project has been approved in-principle
by the Delhi Government in October 2010 and
DMRC is expecting a final nod from the state by
Railways
March or April 2011.
The project spanning 69.57 km will have six
corridors from Anand Vihar in East Delhi to Dhaula
Kuan in Southwest Delhi; from Noida to Malviya
Nagar; Jahangirpuri to Badli; from West Delhi's
Ashok Park to Delhi Gate in Central Delhi; Central
Secretariat to Red Fort and Mukundpur to Rajouri
Garden.
The project is expected to cost `21,468 crore.
DMRC has suggested that the metro rail can go
underground between Nehru Bridge and
Ahmedabad railway terminus in Kalupur in Gujarat.
DMRC has made the suggestion in the DPR that it
has submitted to the state government. The cost of
the entire metro rail project is estimated to be
around `12,000 crore.
DMRC has proposed a complete elevated metro rail
system for the city, barring the stretch from Nehru
Bridge to Kalupur passing from Relief Road. Heavy
passenger traffic on Relief Road, growing traffic
concerns and space constraints in Ahmedabad are
the reasons for going underground.
Further, it has also planned to change the alignment
of the rail. It says that the proposed 10.9 km East-
West metro line could be from the Income Tax,
Shahpur Darwaza, Delhi Darwaza , Prem Darwaza,
Kalupur to Relief Road. Now, the metro will run
from Nehru bridge to Kalupur via Relief Road. The
39
Projects Today
new alignment will pass from Thaltej, Gurukul, Vijay February 2011
Crossroads, Gujarat University, Commerce
Crossroads, CG Road and Nehru Bridge.
The Planning Commission has suggested that the
DELHI DEVELOPMENT AUTHORITY (DDA) should
fund the Phase III of Delhi metro.
The commission is of the view that the DDA should
fund the project along with the state and the Union
Government to lessen their financial burden. It
believes that the proportion of investment for the
Phase III, which envisages connecting another 65
km of Delhi through metro service, should be
increased by the state and the Union Government,
which jointly own DMRC.
The Planning Commission plans to increase the debt
equity ratio for DMRC's Phase III to 50:50
compared to 70:30 during the first two phases.
Currently, 70 per cent of the project cost is met
through loans from agencies like Japan International
Cooperation Agency and other banks and the rest
30 per cent is equally shared by the state and the
Union Government.
The on-going broad-gauge conversion works in the
CMYK
Railways
Mayiladuthurai-Tiruvarur section of Tamil Nadu has
been put on fast track. The project is slated to be
completed by June 2011.
This project to lay BG track to a length of 38 km, is
being executed by the construction wing of the
SOUTHERN RAILWAYS at an outlay of `210 crore.
It involves construction of two crossing stations,
two halt stations, 19 major bridges and 193 minor
bridges. There will be 22 manned level crossings
and 10 unmanned level crossings.
THE TAMIL NADU GOVERNMENT proposes to
add new lines to the 45-km Chennai Metro Rail
project. In Phase II, a project study is likely to be
undertaken on establishing new lines linking
Moolakadai-Thirumangalam; Moolakadai-
Thiruvanmiyur and Luz- Poonamallee via
Iyyapanthangal.
The Moolakadai-Tirumangalam line will pass
40
Projects Today
February 2011
through Red Hills, Ambattur and Mogappair while
the Moolakadai-Tiruvanmiyur line will pass through
Perambur, Kilpauk, Gemini and Luz. The line from
Luz to Poonamallee will cross Teynampet, T Nagar,
Vadapalani, Saligramam and Iyyappanthangal.
THE KERALA GOVERNMENT plans to select a
consultant to undertake a detailed feasibility study
for the proposed North-South high speed rail
corridor in the state. The study for the project
linking Thiruvananthapuram in the south with
Manjeswaram in Kasaragod district in the north, is
to be conducted with the support of the Kerala State
Industrial Development Corporation and the
DMRC. As per sources, the project is likely to entail
an investment of `50,000 crore.
THE MMRDA plans to extend the Mumbai metro
rail route to as far as Dahisar.
The route planned from Versova to Ghatkopar will
end at Mankhurd, while the one that was to
terminate at Charkop will be extended till Dahisar.
The extensions will cost the MMRDA an additional
`3,500 crore.
At present, more than 75 per cent work on the
Versova-Ghatkopar stretch is completed and the
line will be ready by October 2011.
THE MMRDA is mulling over the option of securing
loan for the Metro Line-3 from Japanese
International Cooperation Agency (JICA).
The line extends from Colaba to Bandra and will
cost `12,000 crore. The MMRDA is considering this
following the Union Government's decision to turn
down proposal for viability gap funding.
The 20-km long corridor is now likely to be based on
the Delhi Metro Model, in which the government
will fund 19 per cent equity and Maharashtra
Government/MMRDA will fund 21 per cent. The
rest 60 per cent will be loan from JICA.
SPAN CONSULTANT has been selected by the
MMRDA for preparation of DPR for the Ghatkopar-
Mankhurd Metro corridor.
The consultant has already submitted the inception
report and will prepare the DPR in a span of four
months. The 7-km long corridor will connect the
Metro line 1 (Versova Andheri Ghatkopar) and
Metro line 2 (Charkop Bandra Mankhurd).
The proposed alignment for the corridor is from
Ghatkopar station (East) near the ROB, extending
further to Chembur-Mankhurd Link Road at Chedda
Nagar junction near Eastern Express Highway, and is
to end at Mankhurd station to integrate with the
suburban line (Harbour) as well as Metro line 2.
Project Completion
DMRC on 14 January 2011 opened the Sarita
Vihar-Badarpur section of transit system, thus
adding another five km to its network in Delhi.
The inaugural run was conducted in the stretch
comprising three elevated stations - Mohan Estate,
Tughlakabad and Badarpur. This stretch will be
beneficial to the commuters of south Delhi localities
such as Mohan Estate, Tughlakabad and Kalindi
Kunj as well as the satellite town of Faridabad in
Haryana, which is adjacent to Badarpur.
With the opening of this section, the footfall of the
entire Central Secretariat-Badarpur corridor is
expected to increase by another one lakh. Currently,
the total footfall on the Central Secretariat-Sarita
Vihar corridor is approximately 1.25 lakh. Now, the
CMYK
Railways / Shipping Infrastructure
Central Secretariat-Badarpur corridor will be 20.16
km long with 16 Metro stations.
Envisaged Completion Of Project
DMRC's Airport Express Line is likely to begin
operations in Delhi, shortly.
Statutory safety inspection for the line is to be
conducted soon. Once the safety clearance is
obtained, it will take less than a week to open the
line for the public. The trains are to run at 120
kmph.
The Reliance Anil Dhirubhai Ambani Group's Delhi
Airport Express (DAMEPL) will run and maintain the
line, which will reduce travel time between the New
Delhi and the Indira Gandhi International Airport to
20 minutes. DMRC had bid out the line to the
DAMEPL on PPP. DAMEPL will hand over the line to
DMRC after running it for 30 years.
Initially, there will be four stations - New Delhi,
Shivaji Stadium, IGI Airport and Dwarka Sector 21.
Later, two stations, Dhaula Kuan and NH-8, will be
added to the line.
Shipping Infrastructure
Project Developments
A total of 29 projects with an outlay
of `10,000 crore, are to be taken
up at Chennai Port in various
stages.
The proposed investments will be
made for a new mega terminal, an RO-RO terminal
and connectivity projects, among others. Upon
completion of these projects, the port's capacity is to
be ramped up from the current 61 to 140 million
tonne in the next 10 years. GK Vasan, Minister of
Shipping, Tamil Nadu, on 19 January 2011, laid the
foundation stone for the Chennai port-Ennore road
connectivity project. The `600-crore project will be
completed in the next two years. Of the total cost,
`250 crore is to be contributed each by the NHAI
and the CHENNAI PORT TRUST while `58.20 crore
will come from the Tamil Nadu Government and rest
by Ennore Port.
The upgradation plan of the Gopalpur port in
Ganjam district of Orissa is likely to get approval
from the Union MoEF soon.
The `2,500 crore project has been hanging in fire
owing to the environmental concerns. The green
activists allege that the project will affect the mass
nesting of Olive Ridley turtles at Rushikulya river
mouth.
GOPALPUR PORT (GPL), a SPV formed by Orissa
Stevedores, Sara International and Hongkong based
Noble Group, had signed an MoU with the state
government to develop the defunct seasonal port at
Gopalpur into a major all weather port in phases.
However in May 2010, the Noble Group exited the
project. GPL has already announced financial
closure for `1,400 crore Phase I work and signed
the loan agreement with a consortium of 11 banks.
Out of `1,400 crore, a sum of `848.78 crore is the
loan component while the rest will be raised from
the promoters and internal. The upgradation plan
envisages construction of at least three berths to
handle about five million tonne of cargo in the
Phase I.
THE KOLKATA PORT TRUST (KoPT) has drawn up
a `6,000-crore investment plan.
41
Projects Today
February 2011
KoPT has proposed new port facilities at Sagar,
Diamond Harbour and Haldia Dock II with an aim to
begin work on these facilities shortly. RITES is
carrying out the feasibility study for Sagar port
proposed to be built on 2,000 acre reclaimed land
with most of the facilities of the port to be built in
the PPP mode.
THE KOLKATA PORT TRUST (KoPT) is likely to
invite EoIs from private entities for its new
dock system, Haldia Dock II at Salukkhali, by
March 2011.
The project will come up on PPP mode. Once the
whole process of awarding the project is over, work
is likely to start immediately.
The project will have four jetties, which will increase
the capacity of the port to 20 million tonne at an
investment of about `1,000 crore. The project is
expected to be commissioned by 2012-13.
CMYK
Shipping & Aviation Infrastructure
MARG expects its proposed shipyard-cum-minor
port at Mugaiyur to be functional by 2012.
Currently, the company is awaiting environmental
clearance. The company has invested about `900
crore in the project at Mugaiyur on the East Coast
Road in Tamil Nadu.
MARG was also planning expansion of the Karaikal
Port and under Phase II it will add two more berths
at an estimated cost of `1,569 crore.
ENNORE PORT is mulling to mobilise funds to part-
fund its expansion plans.
The company is likely to raise around `400 crore
through a private placement of shares. Also, it is
exploring the option of an initial public offering.
The proceedings are to be used to create
infrastructure like dredging and connectivities. Of
the three dredging projects, one project worth `92
crore is already completed and two more projects
worth `640 crore are in the pipeline. Besides, the
port is also creating infrastructure to handle cars for
the export markets, with an investment of around
`110 crore.
VIZHINJAM INTERNATIONAL SEAPORT (VISL)
42
Projects Today
has received 14 initial bids for development of a
port project in Kerala.
The companies which have evinced interest in the
project include Reliance Infrastructure, GMR
February 2011 Infrastructure, GVK Power and Infrastructure,
Gammon Infrastructure Projects, Mundra Port,
Essar, Global Yatirim Holding and STFA consortium
(Turkey); Jaiprakash Associates; Patel Engineering
and Limak (UK) consortium, Sterlite Industries,
consortium of Shipping Corporation of India, SKIL
Infrastructure, HCCL; consortium of Welspun
Infratech and Leighton Contractors; Nagarjuna
Construction Company and Condor Brookfield
Consortium.
The names of the qualified developers are expected
to be announced on 19 January 2011. The project
to be implemented on BOT basis, is to be developed
in a phased manner. The Phase I of the project is
estimated to cost `2,620 crore, out of which, `970
crore is to be borne by the private party/consortium
for the port superstructure. The remaining `1,650
crore in civil infrastructure will be provided by the
Kerala Government through an EPC contract, to be
bid out in early 2011. The port will have an initial
capacity of 2.38 lakh TEUs in the first year of
operations.
VISL is likely to raise the funds through a consortium
of banks led by the State Bank of Travancore. The
VISL Board on 10 January 2011 met to approve the
funding plan proposed by SBI Caps.
NAVAYUGA ENGINEERING, the Hyderabad
headquartered company, aims to complete the DPR
by October 2011 for its proposed port project in
Orissa.
The company plans to set up an all-weather, multi-
user port at Astaranga in Puri district for which it
recently inked a concession agreement with the
state government. The DPR will have an accurate
assessment of the land needed for the project and
the employment opportunities to be created by the
port. The port is to have a draft of 20 mtrs and
vessels up to 170,000 DWT can call at the port. It is
to be executed at a cost of `6,500 crore with an
initial capacity of 25 million tpa which will be
eventually scaled up to 70 million tpa. The project is
being implemented on BOOST basis.
In Phase I, the company will have four berths and
ultimately, it will be scaled up to 25 berths. The port
will become operational within 48 months of
allotment of land.
THE MMRDA has appointed a consultant for its Ro-
Ro Service. i-Maritime Consultant is expected to
prepare the DPR for Ro-Ro Service between Ferry
Wharf and Mandva (Old RCF Jetty). The consultant
is expected to complete the DPR by February 2011.
The ferry service will provide faster connectivity to
commuters travelling from Ferry Wharf to Alibaug,
Wadkhal Naka and Konkan.
Aviation Infrastructure
Project Developments
THE AIRPORTS AUTHORITY OF
INDIA (AAI) is likely to acquire land
for a new taxiway at the Sardar
Patel International Airport in
Ahmedabad, Gujarat.
A new taxiway is expected to help the airport increase
its landing and takeoff capacity. Currently, the
Ahmedabad airport can handle 12 aircraft an hour.
The AAI has sought 65 acre from the state
government. The state government has promised to
give around 22 acres of its land free of cost to the
AAI, but for the remaining land, which is to be
acquired from private parties, the government is
demanding that the AAI pay the amount.
The AAI will have to allocate `100 crore for
acquiring the land from private parties and another
`50 crore for development of the taxiway.
CMYK
Bhupinder Singh Hooda, Chief Minister of Haryana,
announced that the state government plans to set
up an international cargo airport in the NCR region.
A total of 3,000 acre has been identified for the
project at Bhaini Maharajpur and Bhaini Bhairon
villages. THE AIRPORTS AUTHORITY OF INDIA
has conducted the site survey and given its
approval. Application has been filed with the Union
Ministry of Civil Aviation for formal approval of the
project.
The Union Ministry of Civil Aviation is mulling to
put the upgradation and modernisation of the Juhu
airport in Mumbai on fast track.
THE AIRPORTS AUTHORITY OF INDIA (AAI),
which operates this airport, had submitted a study
by a consultancy firm KPMG suggesting a PPP
model for upgradation work. As per the AAI
proposal, modernisation and expansion of Juhu
airport under PPP may require an investment of
around `200 crore. The project envisages extension
of the runway. To begin with, the runway is likely to
be extended from 4,000 ft to 5,500 ft for
accommodating private jets. The airstrip is likely to
be extended into the sea to avoid environmental
clearance issues.
The AAI wants to shift 20 flight movements per
hour for General Aviation (private jets) to Juhu.
Initially, 50 GA flights will be shifted to this airport
from Chhatrapati Shivaji International Airport.
THE AIRPORTS AUTHORITY OF INDIA (AAI) is
undertaking expansion projects at the Chennai
airport. The proposed expansion is estimated to cost
around `2,015 crore.
The first is the expansion of the runway and apron
capacity. The secondary runway, now 6,840 ft long,
will be extended by 1.03 km, including the bridge
over the Adyar and the parallel taxi track. The
handling capacity will go up to 40 aircraft
movements an hour from 30, besides there will be
14 aircraft additional parking bays. The
international terminal building is being expanded
by 59,300 sq mtrs to accommodate an additional
four million passengers per annum. A new domestic
terminal building is being built with an area of
67,700 sq mtrs to handle 10 million passengers per
annum. While the domestic terminal building is
slated to be ready by August 2011, the
international terminal will be operational by
September 2011.
Also, the AAI is likely to develop a car park on PPP
basis for 1,200 cars spread over three basement
levels.
Aviation Infrastructure
The proposed Navi Mumbai international airport
project has been put on fast track. The Maharashtra
Government has urged the CITY AND INDUSTRIAL
DEVELOPMENT CORPORATION (CIDCO) to
complete the necessary legwork by end-2011 so
that the actual construction can begin from January
2012. CIDCO has been told to invite global tenders
by June 2011 so that contract can be granted by
December 2011.
The project entails an outlay of over `15,000 crore
and the first phase is expected to be operational by
end-2014 or early 2015.
Project Impediment
The completion of AIRPORTS AUTHORITY OF
INDIA'S new terminal building of the Chandigarh
airport has been delayed further.
The terminal which was slated for completion in
43
Projects Today
February 2011
December 2010 is now likely to take another four to
five months to complete. The new terminal building
will have a capacity to handle 500 passengers at a
time. The terminal building, with an area of about
12,150 sq mtrs, will be fully air-conditioned, have
modern passenger facilities, three aerobridges,
visual docking guidance system, escalators,
elevators, baggage conveyor belts and so on.
Envisaged Completion of Project
The new integrated terminal at NSC Bose
International Airport in Kolkata is likely to be ready
during 2011.
THE AIRPORTS AUTHORITY OF INDIA (AAI) is
likely to operationalise the new integrated terminal
by end- December 2011. The new terminal will be
ready by October 2011 and the airport is to become
fully operational by end-2011.
An additional space of 600 sq mtrs is to be created
CMYK
Hotels & Restaurants
for setting up two additional security check
counters. This will help reduce the check-in time of
passengers at the airport. The AAI is planning to
introduce In-line X ray at the integrated terminal
complex of the airport for the benefit of the
passengers.
Hotels & Restaurants
Project Developments
The IHHR HOSPITALITY GROUP
plans to set up hotels across India
by 2016.
The Group has earmarked `750
crore for the purpose. It intends to
open hotels at Nagpur and Navi Mumbai
(Maharashtra), Coimbatore (Tamil Nadu), Jaipur
44
Projects Today
February 2011
(Rajasthan) and Ahmedabad (Gujarat). These hotel
properties are likely to come up under the brand
'Ista Hotels'.
Meanwhile, the Group has launched a hotel
property under the brand 'Ista' in Pune with the total
investment of `200 crore. It has 209 rooms,
including 12 suites, two restaurants, a spa facility
and a lounge bar. The Group also owns and
promotes a spa destination under the brand name
'Ananda' in the Himalayas.
THE IHHR HOSPITALITY GROUP is planning to set
up spas across India.
The Group is building a spa at Jaipur in Rajasthan
and near Puri in Orissa. It already has its Ananda
Spa in the Himalayas.
The Orissa project is to be a greenfield property
located between Chilka and Puri. However, the
project is still at the evaluation stage.
The Ananda Destination Spa at Jaipur is to come up
on 36 acre. The Group is likely to invest `150 crore
in the project which is to be funded equally through
internal accruals and debt. The spa with 77 villas
and room clusters is to be launched in 2012.
HILTON WORLDWIDE plans to add five to seven
properties in India every year.
The company presently has just three operational
hotels in the country, i.e. two in New Delhi and one
in Mumbai. During 2011, plans are afoot to open
six to seven new hotel properties which will add a
room inventory of 1,200. The hotels are likely to
come up in Chennai, Bengaluru and Gurgaon.
HILTON WORLDWIDE on 1 January 2011 took
over the management of Le Royal Meridien
Mumbai. DB Hospitality, which owns the 171-room
boutique five-star deluxe hotel, near the
international airport, signed a management contract
of 10 years with Hilton. Now, the property will be
managed under the brand 'Hilton'.
With this development, the company has three
properties in India namely Hilton Mumbai
International Airport, Hilton New Delhi/Janakpuri
hotel and Hilton Garden Inn New Delhi/Saket.
THE ITC WELCOMGROUP has chalked out capex
plan to increase room inventory by 2013.
The Group plans to invest around $2 billion (approx
`9,000 crore) for the purpose.
The Group plans to develop two ITC Luxury
Collection hotels - one a 600-room hotel in Chennai
and a 400-room hotel adjacent to ITC Sonar in
Kolkata. It is likely to develop properties across its
four categories - luxury hotels (under ITC prefixed
brands), business class hotels (under the
WelcomHotels brand), budget hotels (Fortune
Hotels brand) and heritage properties
(WelcomHeritage).
CHOICE HOTELS plans to open around 60 hotels in
the country over the next three years. The company
proposes to open 20-30 hotels every year in India.
These hotels will be a mix of both company as well
as franchised model.
In 2011, it plans to open 14 hotels mainly in Tier II
cities. Currently, the company operates 28 hotels in
the country through the franchise route. The hotel
chain operates across five brands; Sleep Inn,
Comfort Inn, Quality Inn, Clarion and Cambria.
FORTUNE PARK HOTELS, a subsidiary of the ITC-
Welcomgroup Hotels, plans to launch a hotel
CMYK
property in Mysore, Karnataka.
The hotel - Fortune JP Palace - is to be positioned in
the mid-market to upscale segment. It is likely to
have a total of 108 rooms, including 99 standard
rooms and Fortune Club rooms and nine suites.
Fortune Park Hotels has made no investment in the
property but has taken the operation and marketing
route. The JP Group has provided the land, building
and Fortune Park Hotels is expected to bring in
personnel and operate the hotel.
AMBUJA REALTY is mulling to develop a theme-
based boutique hotel in Kolkata.
The hotel is to come up on four-bigha (80 kottas)
'Basu Bati' (House of the Basus) in Kolkata. However,
the company did not disclose the investment details
of the project.
Basu Bati was declared as a heritage building by the
Kolkata Municipal Corporation (KMC). The
company has to get clearance from the heritage
committee of KMC after which work on the project
may start.
THE INDIAN HOTELS COMPANY (IHCL) plans to
open 43 new properties in the next four years.
The 43 proposed properties will add 10,000-12,000
rooms. In India, the hotels will come up under the
Ginger, Gateway, Vivanta and Taj brands while
outside India, it will be just with the Taj brand.
Currently, the IHCL has 66 hotels in India and 16
hotels in the Maldives, Malaysia, Australia, Britain,
the US, Bhutan, Sri Lanka, Africa and the Middle East.
BEST WESTERN INDIA with Goradia Group
recently opened The Best Western Goradia's at
Shirdi in Maharashtra.
The hotel comprising 72 rooms is located behind Sai
Udyan, opposite to the main Samadhi Temple, Off
Pimpalwadi Road. Currently, it is operational with
24 rooms. The property has facilities like on-line
reservation, a multi-cuisine restaurant 'Aroma' etc.
The company plans to add one banquet hall with a
capacity of 1,000 people, one food mall and a three
level terrace to the existing infrastructure by 2012.
ENTERTAINMENT WORLD DEVELOPERS (EWDL)
plans to set up 10 hotels in Madhya Pradesh,
Jharkhand, Chandigarh and Maharashtra over the
next two-three years.
EWDL is expected to pump in `350 crore into the
hotels which will have the total inventory of around
900 rooms. Of the 10 hotels, six will be part of a
mixed-use development that will also incorporate
malls. The company is seeking partners like Royal
Hotels & Restaurants
Orchid and Sarovar for managing the properties.
CARLSON, a global hospitality company is likely to
open 19 more hotels in India by December 2011.
The company has already signed management
contracts for about 54 hotels, of which 19, with a
total of 2,670 rooms, will open by December 2011.
These 19 hotels are estimated to cost around
`2,250 crore. These hotels are to come under the -
Park Plaza (premium segment) and Country Inn and
Suites and Park Inn (mid-segment).
Of these, 11 are to be opened under Radisson
brand in Agra, Ghaziabad, Greater Noida (Uttar
Pradesh), Ahmedabad (Gujarat), Amritsar (Punjab),
Chennai, Goa, Haridwar (Uttarakhand), Hyderabad
and, Ranchi, Rudrapur (Jharkhand). While two
hotels under Country Inn brand are expected to
come up at Gurgaon (Haryana) and Mussoorie
(Uttar Pradesh), one hotel under the Park Inn brand
will be opened in New Delhi (CBD) and five hotels
under Park Plazas brand will open at Bengaluru,
Chandigarh, Coimbatore (Tamil Nadu), New Delhi
and Dwarka.
VICEROY HOTELS is planning to add more hotel
properties in 2011.
The plan includes two major hotels in Chennai and
Bengaluru at an investment of `1,200 crore. It is
developing a 387-room JW Marriott hotel at MRC
45
Projects Today
Nagar in Chennai at a cost of `650 crore. The hotel February 2011
is expected to open doors by April 2011.
The hotel in Bengaluru is to be part of the Marriott
brand-Renaissance. It is a 250-room hotel with 22
storeys. It has 4.5 lakh sq ft of built-up facility. The
hotel is expected to be commissioned by December
2011.
Hong Kong based LANGHAM HOTELS
International plans to set up properties in India.
The company plans to pump in $100 million (approx
`450 crore) to develop four properties with over
650 keys.
Langham's 97-key transit hotel at the Delhi
International Airport is set to be inaugurated by
February 2011. The second hotel 'Langham Place',
with 130 rooms in Pune will follow next. The
company is also joining hands with Wadhwa
Developers to manage these two properties through
management contract.
Project Completion
LEMON TREE HOTELS, on 12 January 2011
launched a business hotel - The Lemon Tree, City
CMYK
Hospitals
Centre, Bengaluru, on St John's Road.
The 13-storeyed hotel consists of 187 rooms and
suites. It houses multi-cuisine coffee shop Citrus
Cafe, Pan Asian restaurant and also boasts of a spa,
fitness centre, swimming pool and conference
facilities.
The company has earmarked an investment of $1.2
billion (approx `5,400 crore) for expansion which
will be financed through equity ($200 million) and
loans. It plans to add seven hotels to its existing
chain across India in the next two years.
Hospitals
Project Developments
FORTIS MALAR HOSPITALS, a
subsidiary of Fortis Healthcare, has
entered in a pact with Puducherry
based East Coast Hospital to
operate and manage it.
Subsequently, East Coast Hospital has been
rechristened as 'Fortis East Coast Hospital', and plans
are afoot to raise the bed capacity from the present
46
Projects Today
100 to 250 beds.
As part of the agreement, East Coast Hospital
chairman Murugesan will retain ownership of the
hospital.
February 2011
CAMELLIA GROUP, a provider of services in
education, hospitality, industry, real estate and
aviation, has forayed into the medical sector.
The Group proposes to set up its first medical hub
in Eastern India. The medical hub named Camellia
Institute of Medical Science & Research will have
a 500-bed super-speciality hospital. It will also
have medical, dental and nursing colleges. The
total investment for the project is estimated to be
`250 crore.
Chennai based DR AGARWAL'S EYE HOSPITAL
plans to increase the number of its hospitals to 100
by 2011.
The company will open cluster of hospitals in
Mumbai, Bengaluru and Hyderabad. The company
is likely to invest `150 crore on the new hospitals.
The company is to initially fund the new projects
through internal accruals and debt, but will also look
at other options, including private equity, at a later
stage. The hospital chain opened five hospitals in
Bengaluru on 18 January 2011 with plans to launch
five hospitals in Hyderabad in February 2011. Also,
four more hospitals are to be set up in Bengaluru by
March 2011 and a total of 25 by 2012.
MAX HEALTHCARE plans to open more hospitals
during 2011.
The company is likely to set up four hospitals in
North India at an investment of `540 crore.
The new hospitals which are to be multi-specialty
will come up at Shalimar Bagh in Delhi, Bathinda
and Mohali in Punjab and Dehradun in
Uttarakhand. These hospitals will have an average
bed capacity of 250-300. The hospitals are to come
up on PPP model in collaboration with the Punjab
Government.
Hyderabad based GLOBAL HOSPITALS plans to set
up a hospital in Ahmedabad.
The company has earmarked `250 crore for setting
up a 350-bed hospital in Ahmedabad. The MoU for
the proposed project is to be signed during the
upcoming Vibrant Gujarat Global Investors' Summit
(VGGIS). Currently, it is holding discussions with the
state government and also some private firms for
land to set up the project. It needs around 10 acre
for the hospital. Besides, plans are afoot to ramp up
the bed capacity up to 500 by 2013, with an
additional investment of `100 crore. It currently has
1,700 beds across its facilities at Hyderabad,
Bangalore and Chennai. While its 500-bed Mumbai
facility is slated to commence operations by April
2011, the 500-bed Kolkata facility is to be ready by
2012.
APOLLO HOSPITALS ENTERPRISE plans to expand
its presence by 2013.
The company has earmarked `1,000 crore to set up
12 new 'Apollo Reach' hospitals in tier-II and tier-III
cities across the country. The investment per
hospital is likely to be in the range of `80 to `100
crore. The company has raised funds for the first six
hospitals through debt and internal accruals.
CMYK
Hospitals / Tourism / Commercial Complex
While, the company has started construction work
at Trichy (Tamil Nadu), Varanasi, Allahabad,
Visakhapatnam, Nashik, and suburban Mumbai, it is
still in the process of finalising sites for six more.
Also, it plans to invest `100 crore for setting up
another 500 pharmacies across the country over the
next 15 months. At present, it has nearly 1,200
pharmacies in India.
Project Completion
Ghulam Nabi Azad, Union Health and Family
Welfare Minister, on 5 January 2011, inaugurated
the super-speciality block at the Thiruvanan-
thapuram Medical College in Kerala.
Funds worth `120 crore have been spent on the
upgradation of the medical college, which includes
super-speciality block with 253 beds, nursing college
and a new building for medical laboratory. HLL LIFE
CARE was entrusted with the construction work.
Pranab Mukherjee, the Union Minister of Finance,
on 9 January 2011 inaugurated FORTIS
HEALTHCARE'S super-specialty hospital in Kolkata.
The 414-bed hospital will serve the healthcare
needs with its comprehensive care around the focus
areas of cardiac care, orthopaedic, brain and spine
care, digestive care and 'uro' and 'nephro' care.
The company plans to open 8 to 10 hospitals by
2013. These hospitals are expected to come up in
Gurgaon (Haryana), Ludhiana (Punjab),
Ahmedabad (Gujarat) and Kangra (Himachal
Pradesh). The hospital at Kangra is slated to be
opened in mid-2011.
Meanwhile, the company has completed acquisition
of Hong Kong based Dental Corporation having a
network of clinics in the country.
Tourism & Recreation
Project Developments
IL&FS TRANSPORTATION
NETWORKS has emerged as the
lowest bidder for a stadium project.
On 19 January 2011, the National
Games Secretariat opened the bids
for development of an Outdoor Stadium at
Kariavattom, Thiruvananthapuram, in Kerala. The
project is on annuity basis with a concession period
of 15 years including a construction period of 24
months. It is estimated to cost `161 crore.
BAHRI ESTATES has joined hands with Globosport
India to develop sports and recreational
infrastructure in its retirement homes and second
villas project in Tamil Nadu. Globosport through its
arm Play Sports Surfaces will design the sports and
recreational facilities in the proposed project - Bahri
Beautiful Country - coming up in at Kodaikanal.
Bahri has also collaborated with Mahesh Bhupathi
Tennis Academies, another arm of Globosport, to set
up a professionally managed tennis academy in the
township. The project will have a golf academy, a
club with all facilities, resort, medical facility, group
housing and educational institute. Bahri has tied up
with Aamoksh One Eighty, which is into retirement
home market, to manage the retirement homes
facility.
The company plans to complete the Phase I
development of the project in 24 months with an
investment of `226 crore. The Phase I will have 387
units including 169 retirement villas, 178 second
house units and 40 fully developed plots in a total
area of 121 acre.
Commercial Complex
Project Developments
THE HARYANA STATE
47
Projects Today
INDUSTRIAL AND February 2011
INFRASTRUCTURE DEVELOP-
MENT CORPORATION (HSIIDC)
plans to develop new industrial
estates (IE) and Institute of Management
Technology (IMTs) across the state. The proposed
IEs and IMTs are to come up over an area of 14,702
acre to facilitate development and growth of
industry in the state. They are likely to locate Bawal
Growth Centre Phase IV over an area 679 acre, Rai
IE Sector 39 over an area of 379 acre, Manakpur
Phase II over 259 acre, Roz-Ka-Meo IMT over 1,506
acre, Dharuhera Phase I and II over 494 acre,
Manesar Phase V over 952 acre and Manesar IMT
Phase VI over 3,325 acre, Barwala Phase II over 568
acre, Rohtak IMT Phase III over 964 acre,
Kharkhauda IMT over 3,364 acre, Ambala IMT over
1,850 acre, Kaithal IE over 200 acre and Panchkula
Technology Park, Phase II over 162 acre.
SHIPPING CORPORATION OF INDIA (SCI),
CONCOR and Central Warehousing Corporation of
India are planning to form a JV company to provide
end-to-end transport solutions.
The JV to be named - Logistics Corporation of India
CMYK
Commercial Complex / Retail / Real Estate
- is expected to provide integrated transport
services. The three companies will be the equity
partners in the multi-modal JV logistics company. A
proposal in this regard has been submitted to the
Union Government.
While CONCOR and Central Warehousing
Corporation may take care of the rail and road
segments of the chain, SCI may provide the
shipping link.
Delhi based PREMIUM FARM FRESH PRODUCE
plans to set up the market for fruits and vegetables
in Mysore district of Karnataka.
A sum of `100 crore is likely to be invested for
setting up the market. The company has received all
the necessary approvals for the project. The
Karnataka Industrial Areas Development Board has
allotted 60 acre for the proposed modern wholesale
terminal market. Work is likely to commence soon.
Project Completion
N Kiran Kumar Reddy, Chief Minister of Andhra
Pradesh, on 23 January 2011 inaugurated the Phase
I of HONEYWELL TECHNOLOGY SOLUTIONS'
48
Projects Today
campus and a flight operation centre at
Nanakramguda in Hyderabad.
The minister also laid the foundation stone for the
February 2011
Phase II of the Honeywell campus. The Phase I
comprises 1.25 lakh sq ft office space constructed at
a cost of `100 crore. The company is likely to invest
similar amount for the Phase II campus. The Flight
Operations Centre will monitor the flight passage
directions and operations using latest information
technology applications.
Retail
Project Developments
THE FUTURE GROUP has decided
to expand in West Bengal over the
next three years.
The Group plans to increase the
number of Big Bazaar stores from
the present 18 to 30 and the number of Pantaloons
stores to eight from the current five. The Group is
all set to open three more Pantaloon stores in 2011.
It has finalised locations at Madhyamgram, Lake
Mall and Jessore Road.
The Group is also looking at expanding presence
across formats and stores in the eastern region
overall. Plans are afoot to expand the number of Big
Bazaar stores from the present 30 to over 50 and
Pantaloon stores from the present 7 to at least 14 in
the next three years.
COCOBERRY, the New Delhi based food chain, has
entered into partnership with Fortis Healthcare and
DT Cinema to enhance its distribution network in
the country.
The company also plans to explore the franchisee
route. It will invest `120 crore in the next three
years to increase its number of outlets to 100 by the
end of 2011. In the initial phase, the company plans
to open outlets at Fortis centers and at DT Cinemas
in a phased manner.
RELIANCE FOOTPRINT, the multi-brand footwear
specialty store chain of Reliance Retail, plans to
expand its presence.
The company is likely to open 100 stores with a
floor area varying between 5,000 sq ft and 7,000 sq
ft, by March 2012. The company is expected to
invest around `200 crore in these stores. The
company has recently tied up with Japan based
sports shoes brand 'Asics'. The company will open
mono-brand outlets as part of the agreement. It is
likely to set up mono-brand ASICS stores in
Bengaluru and Hyderabad.
Real Estate
Project Developments
AIPL AMBUJA HOUSING AND
URBAN INFRASTRUCTURE plans
to pump in `2,000 crore in Punjab.
The company plans to set up a
residential township in
Gobindgarh-Khanna and Mohali and a mall in
Jalandhar. The Gobindgarh-Khanna township will
spread over 88 acre and Mohali Township over 32
acre. The township in Khanna is slated to be
completed by April 2012. Also, the company has
applied for necessary clearances to the state
government for the Mohali township.
PARSVNATH DEVELOPERS has signed an
agreement with SUN-Apollo India Real Estate Fund
LLC for an investment in its premium residential
project.
SUN-Apollo is likely to pump in around `100 crore
or a 49.9 per cent stake in the project SPV,
Parsvnath Buildwell, which will develop the project
at Ghaziabad, Uttar Pradesh.
CMYK

Real Estate

The project spread over an area of approx 31 acre is
known as 'Parsvnath Exotica- Ghaziabad'. The
construction of the project has already begun and
all necessary approvals have already been obtained.
The Chennai based OLYMPIA GROUP plans to
invest around `1,000 crore to develop four to five
projects over the next three years. The investment
will be funded through debt, equity and internal
accruals.
The company is looking to enter the real estate
market in Kolkata to develop around one million sq
ft with an investment of around `100 crore.
A super luxury villa project will come up in an area
of 35 acre at the East Coast road. Two premium
house projects and one for affordable homes are
also to be launched in Chennai. Further, the Group
is also completing Phase I of a residential project at
OMR IT corridor with an investment of `350 crore.
It consists of 1,000 apartments spread over 1.5
million sq ft.
The company proposes to develop villas on 200-
300 sq yard plots in a 30-acre gated community. It
has also planned apartments ranging in size from
350 to 1,550 sq ft. HOK has designed the project
which will be completed in two phases over eight
years, with the first phase covering around 350
acre.
The company has already signed an agreement with
the Art of Living Foundation to establish an
international school, with the academic session
beginning in 2012.
Britain's PRINCE CHARLES plans to build an eco-
friendly model village for around 15,000 poor
people in India.

VISHRANTHI HOMES is coming up with an

affordable housing project called Sundarakand.
The project is located close to Medavakkam, a
southern residential suburb of Chennai. Spread over
1.6 acre, Sundarakand will offer 120 apartments
across five blocks, ranging from 927 sq ft to 1,533
sq ft for 2 BHK, 2 BHK+study and 3 BHK. Each
49
Projects Today
block will have a four-storeyed building with a car February 2011
park attached to each apartment.
Work on the project has already started and it is
slated for completion in December 2012.

PRIMEX INFRASTRUCTURE has unveiled a

residential project, 'Verterra', at Mugalivakkam,
Porur, the emerging IT hub of Chennai.
The project is to cost around `125 crore in the
project. Verterra will comprise nine blocks with the
total space of approx 3,00,000 sq ft, consisting of
324 dwelling units. It will have 1 BHK to 3 BHK
units, ranging from 575 to 1,233 sq ft.
Work will commence in February 2011, and the
project is expected to be completed within 24
months.
RAMKY ESTATES & FARMS has launched a
residential project near the Shamshabad
International Airport in Hyderabad.
Named 'Discovery City', the town spread over 600
acre comprises housing, retail, shopping centres,
education, healthcare and recreation services - all
under one roof. The total investment in the project
is estimated at `5,000 crore
The project is to spread over 25-acre wasteland on
the outskirts of either Kolkata or Bengaluru. It will
include schools, shops and 3,000 homes.
Construction for the village is likely to begin by
November 2011. The town will have palm trees that
hang overhead to collect rainwater that will be used
for showering, washing and sanitation before being
recycled to water plants.
GTM BUILDERS AND PROMOTERS has chalked
out capex plan to develop realty projects by 2013.
The company plans to invest `250 crore to develop
two projects over a period of next three years. The
capex is to be funded through internal accruals and
CMYK
Real Estate / IT Parks / SEZ
advances from customers.
While the company is likely to invest `150 crore in
the housing project, the commercial project is to
come up at a cost of `100 crore.
A housing project christened - GTM Greens - is to
come up at Sonepat in Haryana comprising 750
units. GTM has entered into a marketing tie-up with
DHFL Property Services for the housing project. The
shopping mall-cum-hotel project is to come up at
Dehradun in Uttarakhand. The shopping mall will be
covering 3,50,000 sq ft and a budget hotel will have
104 rooms.
SAI CONSTRUCTIONS AND BUILDERS plans to
develop a new gated community project at
Visakhapatnam in Andhra Pradesh.
The project named Sai Narasimha's Arena is situated
near Aganampudi toll plaza in Vishakhapatnam. The
nine-storeyed project is to have 205 residential flats.
A built-up area of 2.81 sq ft in 1.9 acre will be
converted into two-bedroom and three-bedroom
deluxe flats. Facilities like swimming pool, club
house, shopping mall and gym will be provided to
the residents.
50
Projects Today
Industrial &
Software Parks
February 2011
Project Development
THE ASSOCIATED CHAMBERS OF
COMMERCE AND INDUSTRY OF
INDIA (ASSOCHAM) has put
forward a proposal for developing
14 new clusters in Kerala.
These clusters are to be developed on PPP model in
the state. They many need around `200 crore to
provide infrastructure to these clusters.
The proposed clusters are in Guruvayur (agro-based
and food processing), Kodakara (rice mills and
general engineering), Vadanappally (agro-based
and food processing), Mavelikkara (garments),
Cherthala (softwood), Sulthan Bathery (natural
fibre), Meenangadi (agro-based and food
processing), Padinharathara (rice mills), Kattappana
(plastic manufacturing, general engineering),
Devikulam (natural fibre), Vagamon (agro-based
and food processing), Rajakkad (rice mills),
Uzhavoor (agro-based and food processing) and
Ranni (plastic manufacturing, natural fibre).
Besides, ASSOCHAM also suggested setting up of a
Cluster Development Authority in Kerala.
Special Economic Zone
Project Developments
Three developers of SEZs in
Rajasthan have sought more time
from the Union Government to
implement their projects.
MAHINDRA WORLD CITY
JAIPUR (MWCJL) has sought extension for its
sector-specific zone over procedural delays. The
company is likely to commence exports from the
unit in FY 2011-12. MWCJL is an SPV formed by
the Rajasthan State Industrial Development &
Investment Corporation and Mahindra Lifespace
Developers, to execute the project.
Similarly, Genpact Infrastructure, Jaipur and Tata
Consultancy Services for their IT/ITES zone in
Rajasthan have also requested more time for the
implementation of the projects due to delay in
getting various clearances.
The Tamil Nadu Industrial Development
Corporation's (TIDCO) multi product SEZ in
Krishnagiri district is likely to be operationalised by
December 2011.
The tender for construction of 50,000 sq ft IT-cum-
administrative building has been finalised and the
work order issued.
The project, estimated to cost around `2,300 crore
is to house IT/ITES, electronic hardware, auto
components, apparels, leather products, pharma
and food processing sectors.
JB SEZ is setting up a pharma SEZ at Panoli in
Gujarat. The company is a JV between HBS Realtors
and the JB Mody Group. Both the partners hold 35
CMYK
Water & Waste Management / Irrigation
per cent equity each in the JV company. The
remaining 30 per cent equity is held by IL&FS India
Realty Fund.
The proposed SEZ is being set up on 312 acre at a
cost of `1,660 crore. The SEZ is slated to be ready
by March 2012. Of the total cost, `160 crore is to
be utilised towards development of roads and other
infrastructure. The remaining `1,000 crore will be
for other facilities such as power, water, effluent
treatment plant etc.
The project will be financed through a combination
of models, depending on the facilities that were
being installed, besides debt financing.
Water &
Waste Management
General Developments
CORPORATION OF THE CITY OF
PANAJI on 17 January 2011
approved the DPRs for a water
supply network and sewerage
worth `371 crore.
network in Panaji. The works are
The `174 crore water supply project includes
construction of a 50 million litres per day treatment
plant, improvement in the current distribution
system and a storage reservoir. The project will also
see replacement of existing water meters by an auto
meter reading (AMR) system, replacement of all
existing service connections and providing flow
control valves where required. The sewerage
project is estimated to cost `197 crore. The project
envisages the creation of a Global Information
System-based online consumer grievance redressal
module with all necessary software for development
and installation. It will also see the development of
online bill payment systems and creation of online
consumer billing module with bank payment and
web hosting.
The Maharashtra Government has given in principle
nod to PIMPRI-CHINCHWAD MUNICIPAL
CORPORATION'S (PCMC) water recycling (ultra
filtration) project.
The state government has asked PCMC and MIDC to
prepare a feasibility study of the project. The project
envisages re-treating the treated water from the 120
million litres per day capacity sewage treatment plant
at Kasarwadi, and supplies it to industries and others
for non-potable use. Further, the state government
has also assured to release the `229 crore pending
with it as its share of the JNNURM projects being
implemented in the PCMC limits.
Irrigation
General Developments
THE CHHATTISGARH GOVERN-
MENT has decided to construct
seven barrages on the Mahanadi
river. The state government is
expected to invest `1,467 crore to
build the seven barrages.
Of the total, four are to come up in Janjgir-
Champa district, where maximum number of
power plants is proposed to be set up. The
remaining three barrages will be constructed in
51
Projects Today
February 2011
Raigarh and Raipur districts. The project is to be
completed in three years.
The Tamirabharani, Karumaeniyar and Nambiyar
river linking project in Tamil Nadu is to be
completed by 2014. The project costing `369 crore
is being executed by digging a 73-km long channel
to take the surplus flood water to the dry regions of
Thisaiyanvilai, Radhapuram and Sattankulam.
A sum of `213 crore had been allotted in three
phases (`65 crore in the first phase and `41 crore
and `107 crore in the second and third phases
respectively) for this project. During the first phase
of the scheme, the extension of Kannadian
checkdam and Kannadian channel upto 6.50 km
had been taken up.
THE WORLD BANK had sanctioned `745 crore for
the renovation of 66 dams under the control of
PWD and 38 reservoirs being administered by the
Tamil Nadu Electricity Board.
CMYK

Special Feature - Cement

52
Projects Today
February 2011

ement & Steel are the two key inputs for the infrastructure sector in general and the construction

C sector in particular. No country can think of building world class infrastructure unless it has enough
domestic capacity of these two key ingredients.
In the recent years, both steel and cement industries have seen mega investment intentions for
augmenting capacities. The boom witnessed in the construction industry helped the Indian
cement industry record stellar performances in the last couple of years. Expecting the boom to
continue for next 10-15 years, major players in the cement industry announced major expansion
plans. Not to be left behind, the small and medium players also pitched in huge investment
options. The last few of years also saw steel and power companies entering into cement sector
with huge project outlays.
A micro level study by ProjectsToday of progress in the ongoing cement projects in India in January 2011
revealed that by 2013 around 129 million tpa will be added. If the demand grows at around 10 per cent
per annum in the next 4-5 years India's total cement manufacturing capacity will be well over 400 million
tpa mark by 2013.
CMYK

Special Feature - Cement

Indian Cement Industry

The saga of Indian cement industry began with the commissioning of the first plant of Cement
Corporation of India in 1914 at Porbandar in Gujarat. Though today private sector's domination in
cement is almost complete, it is only in the 1950s Indian private groups like Tata, Birla, Dalmia and
Singhania forayed into this sector. These groups located their cement plants in limestone rich states like
Rajasthan, Madhya Pradesh and Karnataka. In south India, Madras Cement, India Cement and
Chettinad Cements were the early players. They limited their areas of action to southern states like
Andhra Pradesh and Tamil Nadu.
The modern era of the cement industry started with Gujarat Ambuja setting up its first plant at Kodinar in Gujarat
in 1984. The company also introduced the concept of bulk transportation of cement through sea route. The 1990s
saw the entry of new private companies like Jaiprakash Associates, Sanghi Industries, Prism Cement, etc.
The growing demand for cement also enticed foreign cement majors like Lafarge, Holcim, Italcementi,
Heidelberg Cement to venture into Indian shores in the late 1990s. Most of the foreign companies
adopted the takeover route to get a foothold in the Indian cement industry. Among the foreign groups,
Holcim, after the acquisition of controlling stakes in Ambuja Cement and ACC, has emerged as one of
the leading cement manufacturer in India. As of March 2010, the group enjoyed a market share of
around 18.8 per cent.
The last few years saw some steel and power companies announcing mega cement projects. While the steel
companies intend to use slag from their steel units to manufacture cement, power companies intend to use
fly ash for the same purpose.

Installed Capacity, Production & Demand

As of March 2010, there were 49 large cement companies with 162 plants and around 365 mini cement
plants in the country. The aggregate cement capacity of the large companies was 271.78 million tpa and
the combined capacity of the mini
cement companies was estimated at
11.1 million tpa. Regions
Capacity by Region*
Mar-09 Mar-10
53
Projects Today
Further, information available with Mln tpa Share (%) Mln tpa Share (%) February 2011
ProjectsToday indicates that in the first North 50.27 22.70 63.07 23.21
nine months of this fiscal (April - East 31.30 14.13 36.49 13.43
December 2010) 25 projects with an
West 32.72 14.78 39.92 14.69
aggregate capacity of 36.63 million tpa
were commissioned. As a result, the total South 79.50 35.90 101.78 37.45
cement manufacturing capacity as of 31 Central 27.65 12.49 30.52 11.23
December 2010 stood at 318 million tpa. Total 221.44 100.00 271.78 100.00
India is the second largest cement
Source: CMA & Company Annual Reports
producer in the world. The leader China
not only has cement capacity of over * Capaciities of Large plants

Cement Capacity, Production, Demand (Mln tpa)

2005-06 2006-07 2007-08 2008-09 2009-10
Installed Capacity 160 166 188 233 282
Production 142 155 168 188 208
Capacity Utilisation (%) 88.8 93.4 89.4 80.7 73.9
Domestic Demand 136 149 164 178 196
Exports (Net of imports) 6.0 6.0 4.0 3.0 2.6
Total Demand 142 155 168 181 206
Growth in Demand(%) 11.8 9.2 8.4 7.7 13.8
Source: CMA & Company Annual Reports
CMYK

Special Feature - Cement

1,000 million tpa but also enjoys a high per capita consumption of around 600 kg. The per capita cement
consumption in India is very poor at around 150 kg against the world average of about 300 kg. On the
brighter side, this also indicates the huge opportunity available for cement companies for increasing their
individual capacities.
During the five years period (2005-06 to 2009-10) the cement production grew at a simple average annual
rate of 10.2 per cent. During the same period the installed capacity grew at a higher rate of 13 per cent.
Domestic demand during the last five years grew at 9.8 per cent.
However, the Y-o-Y data for the completed fiscal indicates healthier trends. During the year ended March
2010, while the installed capacity increased by 21 per cent, production increased by 10.9 per cent and total
demand by 13.8 per cent.
Till mid-2000, Indian Cement industry recorded very high capacity utilisation. However, rapid capacity
additions in the recent years saw the ratio declining sharply. Between 2005 and 2007, the sector maintained
the capacity utilisation ratio at around 90 per cent. It came down sharply to 80.7 per cent in 2008-09 and
slid further to around 71 per cent in 2009-10. The ratio is expected to move down further in the next couple
of years with good amount of new capacities expected to be commissioned.
The continued emphasis on infrastructure building by the government and the upsurge in the construction
sector is expected to entice the cement manufacturers to keep the rapid pace of capacity building activities
currently seen intact in the next 4-5 years.

Top Players

Though there are 49 large and Large Cement Companies: By Installed Capacity (Mln tpa)
hundreds of small companies, the
March March
cement industry is dominated by a Companies
2009 2010
few large companies. After the

54
Projects Today
recent takeovers and mergers, the ACC
Holcim Group and the Aditya Birla Grasim Inds
Group have emerged as the top two Ambuja Cements
players with a combined market UltraTech
22.41
19.65
18.30
21.9
26.17
25.65
23.00
23.10
February 2011 share of around 36 per cent. Though Jaypee Group 9.93 17.15
some of the existing players as well India Cements 10.74 14.05
as new entrants like the Jaypee
J.K. Group 9.37 13.17
Group, India Cements, Reliance
Madras Cement 10.52 12.72
Cementation, Sanghi Energy, etc.
Shree Cement 9.10 12.00
have chalked out major capacity
addition plans, the top two groups Dalmia Cement 6.50 9.00
are expected to maintain their Chettinad Cement 3.8 8.20
market shares at least in the next 2- Century Textiles 7.80 7.80
3 years. Kesoram Industries 5.60 7.25
As of March 2010, with a total Lafarge 6.55 6.55
capacity of 26.17 million tpa, ACC Other Companies 59.27 65.97
was the largest cement producer in
Total 221.44 271.78
India. Grasim Industries was the
Mini cement plants 11.10 11.10
second leading producer with a
total capacity of 25.65 million tpa. Grand Total 232.54 282.88
Close on its heel were UltraTech Source: CMA & Company Annual Reports
Cement and Ambuja Cement with
annual capacities of around 23 million tonne. According to the latest information available as of
December 2010, ACC's cement capacity touched 30 million tpa and that of Ambuja Cement breached
the 25 million tpa mark.
Other leading cement producers include the Jaypee Group, India Cements, J.K. Group, Madras Cements
and Shree Cement. These players have capacities of over 10 million tpa. Dalmia Cement, Chettinad
Cement, Century Textiles, Kesoram Industries and Lafarge India owns capacities ranging between 5-10
million tpa.
CMYK

Special Feature - Cement

Project Investment
Buoyed by the rapid rise in the demand for cement in the recent years fresh capacity addition plans were
announced not only by the existing cement majors but also by the owners of mini cement plants. Most of
these projects were announced in the last couple of years. This period also saw companies in the
Construction, Steel and Power sectors drawing up plans for setting up cement plants with huge capacities.
As of 31 January 2011, there were 228 cement projects with an aggregate cement manufacturing capacity
of 413 million tpa. If all these projects are implemented the country would see a total investment of around
Rs.1,31,000 crore in the next 6-7 years with total cement capacity crossing the 730 million tonne mark.
Of the 253 projects ( as of March 2010), 216 are greenfield projects and the balance 37 are brownfield
projects. To ensure smooth operation of their respective cement units, 80 of the 253 new projects are
supported by captive power plants. These captive plants have an aggregate generation capacity of 3,700
MW. Most of these are fueled by coal.
Going by the progress made by individual cement projects, ProjectsToday forecasts that by the year March
2012, the total cement capacity in the country would touch the 360 million tpa mark. Another 49 million
tpa capacity will be added in 2012-13. The balance 139 projects with an aggregate capacity of around 320
million tpa are currently in the early planning stage, hence estimating their likely completion dates, at this
point of time, would be premature. We expect most of these projects to materialize in the second half of
the 12th Plan period.

Capacity Additions: 2011-2013

2010-11
During the current fiscal in all 39 projects with an aggregate capacity of
Capacity Addition by Year
48.15 million tpa are expected to be completed. Of this, 25 projects (36.63
million tpa) have already been commissioned. This includes units of Prism
Cement, ACC, Jaiprakash Associates, Bharathi Cement Corp, Bhavya
Cements, Chettinad Cement and Dalmia Bharat Sugar & Industries.
Further, of the 39 projects expected to be commissioned during the year, 23
Year
2010-11
2011-12
2012-13
Projects Mln Tpa
39
36
39
48.15
32.33
48.99
55
Projects Today
projects have capacity of one million tpa or more each. February 2011
> 2013 139 320.47
Total 253 449.94
2011-12
The last year of the 11th Plan period will see 36 more cement units with a total capacity of 32.33 million tpa
getting commissioned. This will include projects of JSW Cement, ABG Cement, Adhunik Corpn, Jaypee
Cement, Chettinad Cement Corpn and Madras Cements. These projects have individual capacities of over 2
million tpa.
Other prominent cement projects expected to materialize during the year are of ACC, Shree Cement, Barak
Valley Cement, KJS Cement, Jaiprakash Associates and Lalitha Cement, Star Cement Meghalaya.

2012-13
We expect some of the mega size projects of Reliance Cementation, Emami Cements, Revati Cement, Shree
Cement and UltraTech Cement to fructify during 2012-13.
If the government continues its pace of infrastructure building during 2011-12, it will help the country to
see new capacity addition of 48.99 million tpa in the form of 39 projects during 2012-13.
Among the other major projects lined up for commissioning in this year include that of ABG Cement, My
Home Industries, Nirma, Prakash Industries, Shalivahana Cement, Shree Cement, Shristi Cement, etc.

State-wise Distribution

Around half of the 129 million tpa capacity addition expected in the next three years, will be located in
Andhra Pradesh, Chhattisgarh and Madhya Pradesh.
Andhra Pradesh is going to be the biggest beneficiary of the current cement boom. The state will see
capacity additions of around 32 million tpa by March 2013. Of this, around 19 million tpa will be added in
the current fiscal itself. In the first nine months of the current fiscal the state has seen commissioning of 11
CMYK

Special Feature - Cement

projects with cement Capacity Additions in States (2011-13)

manufacturing capacity of Mar-11 Mar-12 Mar-13 Total
States
14.69 million tpa. Mln tpa Mln tpa Mln tpa Mln tpa
Chhattisgarh would see
Andhra Pradesh 18.96 6.10 6.75 31.81
around 20 million tpa of
Chhattisgarh 2.20 2.00 15.50 19.70
fresh capacity in the next
three years. Bulk of the Madhya Pradesh 6.00 1.50 8.82 16.32
expected capacity addition Gujarat 4.30 3.83 4.00 12.13
(16 million tpa) is expected Meghalaya 1.75 3.09 3.00 7.84
to accrue in the fiscal Tamil Nadu 2.11 5.00 7.11
2012-13.
Rajasthan 4.00 1.60 1.37 6.97
Madhya Pradesh, which
has attracted the highest Assam 3.54 2.14 0.19 5.87
number of cement projects Karnataka 0.40 0.31 4.00 4.71
as of December 2010, will West Bengal 0.39 1.10 1.86 3.35
see capacity additions of Jharkhand 2.21 0.90 3.11
around 16 million tpa by
Maharashtra 3.00 3.00
March 2013. Since most of
the mega cement projects Orissa 1.50 0.70 2.20
announced in the state Uttar Pradesh 1.30 0.40 1.70
would depend on the Himachal Pradesh 1.50 1.50
completion of the power Uttarakhand 1.50 1.50
projects (as they intend to
Bihar 0.50 0.50
use the fly ash generated
by these projects as raw Jammu & Kashmir 0.08 0.08

56
Projects Today
material), their actual Arunachal Pradesh
materialisation will depend Total
on the timely execution of Source: ProjectsToday.com
power projects.
48.15
0.07
32.33 48.99
0.07
129.47

February 2011 Among the other states, Gujarat (12 million tpa), Meghalaya (8 million tpa), Tamil Nadu (7 million tpa),
Rajasthan (7 million tpa) are the major gainers.

Outlook

Though the cement industry would witness excess capacity situation during the next 4-5 years, the surging
activity in the construction sector and the continued emphasis by the government on infrastructure building
should provide the necessary demand side impetus to the cement manufacturers to jack-up capacities at a
rapid pace during the 12th Plan period (2013-2017).
In the 12th Plan, the government intends to spend around $ one trillion on infrastructure which includes
building roadways, airports and sea ports. Private sector is expected to step up its proposed investment in
sectors like Real Estate, Commercial Complexes, Hotels, Hospitals, etc. This coupled with increased activities
in the rural housing sector, is expected to increase the demand for cement at a healthy average annual rate
of around 10.5 per cent between 2010-11 and 2014-15.
ProjectsToday expects capacity addition of around 80 million tpa in the next two years and the total cement
manufacturing capacity of the country to cross 360 million tpa. If the government expenditure on
infrastructure projects gathers further pace in the 12th Plan, the country will see addition of another 49
million tpa by March 2013 taking the total cement capacity to well past the 400 million tonne mark.
With Indian economy expected to grow at an average rate of 8 per cent during the next 5-6 years, the
country can absorb the 129 million tpa capacity expected to be added in the next three years. Of course,
in the short term the sector might see some amount of demand-supply imbalance but the long-term outlook
for the cement industry looks very encouraging.
The government on its part should ensure availability of adequate raw materials like limestone, coal; supply
of clean power and availability of enough rail containers and good roads for transportation of cement from
the point of production to the point of consumption.
CMYK

Special Feature - Cement

Note:
1. The individual project completion dates were estimated by ProjectsToday based on the likely
commissioning dates announced by the project promoters, progress made by these projects as of January
2011, the normal time-over run seen in the industry and the past performances (in project
implementation) of project promoters.
2. The existing capacities, production and demand figures have been sourced from the Cement
Manufacturers Association (CMA) and the Annual Reports of cement companies.

Salient features of Indian Cement Industry

 India is the second largest cement producer in the world. The leader China produces
around 1,000 million tpa of cement.
 Nearly 96 per cent of the total cement capacity is owned by 54 large cement companies
while the 365 mini cement plants account for the balance 4 per cent.
 Around 75 per cent of the total cement kilns operating in India are dry process based.
The balance units are either wet or semi-dry process based.
 Rapid capacity additions have pulled down the capacity utilisation ratio from 90 plus
to around 74 per cent in 2009-10.
 Around 60 per cent of the total cement dispatches is transported by road and the bal-
ance by rail.
 Indian cement industry is the third largest consumer of coal in the country. Thermal

57
power and steel plants are the first and second largest consumers.
 Severe power shortage in many states has forced cement companies to set up captive
power plants.
Projects Today
 A few cement companies have started using sludge from paper plants, sugar cane
February 2011
trash, bagasse, jute dust, textile dust, pet coke, etc as alternate fuel.
 Housing sector is the largest consumer of cement. It accounts for 50 per cent of the
total demand for cement. Infrastructure follows next with a share of 25 per cent. o
 New cement plants proposed by power and steel companies intend to use wastes like
fly ash from Thermal power plants and Slag from Steel units to reduce the carbon
dioxide emissions.
 Cement/Clinker are exported to around 30 countries across the globe.
CMYK

Statistics

Projects Investment: By Industry

December-09 December-10
No. of Invst. % No. of Invst. %
projects (``Crore) Share projects (``Crore) Share
Manufacturing 3,820 1,131,584 23.0 3,962 1,318,736 22.3
Food & Agro Products 541 30,487 0.2 558 29,275 0.5
Textiles 382 20,921 0.1 375 20,942 0.4
Basic Chemicals 701 271,880 1.7 749 335,815 5.7
Fertilisers 38 18,432 0.1 67 34,368 0.6
Drugs & Pharmaceuticals 188 7,426 0.1 197 8,255 0.1
Petrochemicals 17 31,328 0.2 16 60,667 1.0
Petroleum Products 68 187,146 1.2 71 211,727 3.6
Plastic & Plastic Products 105 1,651 0.0 158 7,849 0.1
Rubber & Rubber Products 27 8,302 0.1 26 13,432 0.2
Paper & Paper Products 137 17,179 0.1 129 18,230 0.3
Non Metallic Mineral Products 388 108,596 0.7 438 117,678 2.0
Cement & Asbestos 290 104,709 0.6 307 113,159 1.9
Basic Metals 998 591,124 3.6 958 700,047 11.8
Iron & Steel 908 449,569 2.8 864 553,778 9.4
Non Ferrous Metals 90 141,554 0.9 94 146,269 2.5
Machinery 276 33,166 0.2 311 30,553 0.5
Non Electrical Machinery 96 8,464 0.1 111 6,315 0.1
Electrical Machinery 76 7,509 0.1 101 8,134 0.1
Electronics 103 17,193 0.1 98 16,104 0.3

58
Projects Today
Transport Equipment
Mining
Mineral Fuels
Coal
209
721
537
243
45,264
118,467
90,236
38,595
0.3
2.4
0.6
0.2
222
838
616
290
43,253
156,279
125,073
41,143
0.7
2.6
2.1
0.7
February 2011 Petroleum Oil & Gases 248 39,860 0.2 285 60,620 1.0
Electricity & Non Conv. Energy 1,879 1,709,654 34.7 2,286 2,121,658 35.9
Electricity 1,435 1,680,279 10.3 1,700 2,079,201 35.2
Hydropower 763 235,939 1.4 906 264,028 4.5
Thermal Power 653 1,307,757 8.0 775 1,737,427 29.4
Nuclear Power 19 136,583 0.8 19 77,746 1.3
Non Conventional Energy 444 29,375 0.2 586 42,457 0.7
Services & Utilities 26,537 1,726,803 35.1 31,646 2,037,183 34.5
Hotels & Restaurants 510 14,023 0.1 534 14,240 0.2
Community Services 5,270 203,756 1.3 6,807 238,155 4.0
Transport Services 12,011 1,066,434 6.5 741 23,725 0.4
Roadways 9,726 458,118 2.8 11,976 567,266 9.6
Railways 626 244,030 1.5 724 325,388 5.5
Aviation Infrastructure 134 51,916 0.3 123 50,440 0.9
Shipping Infrastructure 283 127,942 0.8 289 139,740 2.4
Pipelines 111 65,514 0.4 95 57,961 1.0
Power Distribution 1,002 111,100 0.7 1,253 110,030 1.9
Communication Services 69 55,957 0.3 64 47,417 0.8
Commercial Complexes 1,680 35,453 0.2 1,824 34,976 0.6
Real Estate 5,882 114,795 0.7 6,644 175,699 3.0
Industrial & Software Parks 871 208,348 1.3 881 246,001 4.2
Storage & Distribution 214 27,632 0.2 289 20,232 0.3
Irrigation 1,269 234,594 4.8 1,620 276,424 4.7
Total 34,226 4,921,103 100.0 40,352 5,910,280 100.0
CMYK

Statistics

Projects Investment: By States

December-09 December-10
No. of Invst. % No. of Invst. %
projects (``Crore) Share projects (``Crore) Share
States
Andhra Pradesh 3,015 441,634 9.0 3,321 566,844 9.6
Arunachal Pradesh 112 72,833 1.5 127 90,139 1.5
Assam 399 48,482 1.0 510 52,541 0.9
Bihar 967 117,827 2.4 1,329 127,820 2.2
Chhattisgarh 1,069 320,956 6.5 1,326 390,575 6.6
Delhi 705 52,695 1.1 798 64,664 1.1
Goa 283 7,633 0.2 341 9,388 0.2
Gujarat 1,931 393,175 8.0 2,217 507,446 8.6
Haryana 1,295 115,353 2.3 1,423 133,212 2.3
Himachal Pradesh 436 65,414 1.3 494 67,269 1.1
Jammu & Kashmir 251 57,856 1.2 284 63,475 1.1
Jharkhand 660 215,516 4.4 888 238,724 4.0
Karnataka 2,684 274,440 5.6 3,208 373,244 6.3
Kerala 1,069 92,399 1.9 1,253 119,359 2.0
Madhya Pradesh 1,940 238,779 4.9 2,476 348,678 5.9
Maharashtra 6,886 672,558 13.7 8,101 711,653 12.0
Manipur
Meghalaya
Mizoram
Nagaland
30
117
55
25
4,395
8,161
3,772
1,723
0.1
0.2
0.1
0.0
39
136
58
26
4,680
13,408
4,407
2,860
0.1
0.2
0.1
0.1
59
Projects Today
February 2011
Orissa 1,273 383,409 7.8 1,570 530,267 9.0
Punjab 874 86,279 1.8 1,113 102,435 1.7
Rajasthan 1,107 81,491 1.7 1,392 98,592 1.7
Sikkim 48 17,299 0.4 64 18,542 0.3
Tamil Nadu 2,355 290,844 5.9 2,622 329,766 5.6
Tripura 113 6,927 0.1 145 7,880 0.1
Uttar Pradesh 1,622 174,871 3.6 1,963 207,056 3.5
Uttarakhand 585 43,191 0.9 582 46,247 0.8
West Bengal 1,363 282,652 5.7 1,556 299,074 5.1
Union Territories
A & N Islands 38 525 0.0 53 479 0.0
Chandigarh 100 1,424 0.0 122 3,405 0.1
Dadra & Nagar 54 2,261 0.1 68 2,523 0.0
Daman & Diu 26 563 0.0 31 575 0.0
Lakshadweep 6 41 0.0 4 49 0.0
Puducherry 85 4,067 0.1 106 4,699 0.1
Multi-State, Offshore & Unallocated
Multi States 485 299,091 6.1 448 317,569 5.4
Offshore 121 32,878 0.7 120 47,633 0.8
Unallocated 42 7,687 0.2 38 3,107 0.1
All India 34,226 4,921,103 100.0 40,352 5,910,280 100.0
CMYK

Statistics

Index of Industrial Production: Sectoral & Use-based

Weight November
(%) 2005-06 2006-07 2008-09 2009-10 2010-11
Index: 1993-94 = 100
Sectoral Indices
Mining & Quarrying 10.473 154.9 163.2 176.0 193.3 205.8
Manufacturing 79.358 234.2 263.5 295.1 327.3 343.9
Electricity 10.169 190.9 204.7 223.7 237.1 230.5
Use-based Classification
Basic Goods 35.565 189.8 209.3 229.7 246.1 249.9
Capital Goods 9.257 265.8 314.2 397.9 474.1 557.5
Intermediate Goods 26.514 216.4 242.4 259.0 294.3 311.9
Consumer Goods 28.664 251.4 276.8 307.5 330 330.5
Consumer Durables 5.365 349.9 382.0 395.0 498.4 540.7
Consumer Non-durables 23.299 228.8 252.6 287.3 291.3 282.1
General 100.0 221.5 247.1 275.4 304.1 317.9
% change over previous year
Sectoral Indices
Mining & Quarrying 10.5 1.0 5.4 2.6 9.8 6.0
Manufacturing 79.4 9.1 12.5 2.8 10.9 2.3
Electricity 10.2 5.2 7.2 2.8 6.0 4.6
Use-based Classification
Basic Goods 35.6 6.7 10.3 2.6 7.1 4.5

60
Capital Goods 9.3 15.8 18.2 7.3 19.2 12.6
Intermediate Goods 26.5 2.5 12.0 -1.9 13.6 2.4
Consumer Goods 28.7 12.0 10.1 4.7 7.3 -3.1
Projects Today Consumer Durables 5.4 15.3 9.2 4.5 26.2 4.3
February 2011 Consumer Non-durables 23.3 11.0 10.4 4.8 1.4 -6.0
General 100.0 8.3 11.6 2.8 10.4 2.7
Source: Central Statistical Organisation

Index of Industrial Production: Capital Goods

Index: 1993-94 = 100 % change over previous year
2006-07 2007-08 2008-09 2009-10 2010-11 2006-07 2007-08 2008-09 2009-10 20010-11
Apr 251.0 278.4 313.0 309.0 456.3 19.6 10.9 12.4 -1.3 72.8
May 273.5 334.7 343.1 336.5 450.0 21.4 22.4 2.5 -3.6 34.3
Jun 291.1 358.3 378.4 431.7 436.6 21.6 30.0 5.6 11.8 9.7
Jul 282.7 317.4 386.8 381.8 654.9 18.3 11.9 21.9 2.0 63.0
Aug 281.9 368.6 377.2 402.7 395.8 16.6 30.0 2.3 8.3 -2.6
Sep 321.9 389.1 462.1 530.6 566.8 9.5 18.6 18.8 12.8 -4.2
Oct 290.1 350.8 361.7 410.2 559.3 6.5 20.5 3.1 12.2 22.0
Nov 315.7 392.1 383.2 442.1 557.5 29.4 24.5 -2.3 12.2 12.6
Dec 357.6 420.5 438.2 621.8 26.2 16.6 4.2 38.8
Jan 331.3 338.8 392.2 615.7 16.3 2.1 15.4 56.2
Feb 322.3 355.8 393.8 576.1 18.5 10.4 10.4 44.4
Mar 451.7 501.4 498.7 648.1 18.2 18.6 -8.2 27.4
Apr-Feb 386.7 458.4 8.9 18.2
Apr-Mar 314.4 367.3 396.8 474.2 562.5 18.3 16.9 7.0 19.2 22.5
Source: Central Statistical Organisation