Japan- India Policy Dialogue- third Ministerial held
  
During the third Ministerial meeting of the Japan-India Policy Dialogue (JIPD) which was held here today, Mr. Naoshima Masayuki, the Japanese Minister of Economy, Trade and Industry and Mr. Anand Sharma, the Indian Minister of Commerce and Industry had extensive talks for establishing broader and deeper bilateral economic relations, development of regional economic cooperation in Asia and progressing WTO talks. A joint statement that was issued is as below.

The two Ministers discussed the progress of the ongoing Comprehensive Economic Partnership Agreement (CEPA) negotiation. The Ministers instructed the negotiators to accelerate the negotiations and to solve the remaining issues toward conclusion of a balanced and mutually beneficial agreement at the earliest.

Difficulties faced by the Indian exporters for footwear products and some agricultural products such as tea, coffee mangoes to Japan were also discussed in the meeting.

Discussion on cooperation in High technology Trade and creation of enabling conditions for encouraging business in high technology was also held during the meeting.

The Ministers welcomed the Memorandum of Understanding(MoU) for promotion of model “Smart Community” projects and expressed satisfaction at the early launch of the initiatives that aimed at integrated development of eco-friendly townships and industrial zones. The MoU was concluded by consortia of Japanese companies represented by Toshiba Corporation, Mitsubishi Heavy Industries, Hitachi and JGC Corporation, Delhi Mumbai Industrial Corridor Development Corporation and Haryana State Industrial & Infrastructure Development Corporation, Gujarat Infrastructure Development Board and Maharashtra Infrastructure Development Corporation.

The Ministers welcomed the opening of JETRO’s Chennai office and shared the view that Southern India is an important area as gateway to rest of Southeast Asia and expressed hope that it would promote investment from Japan by contributing to improving business environment.

The Ministers recognized the importance of strengthening regional cooperation toward East Asian economic integration. In this regard, the Ministers agreed to immediately commence discussion among EAS Senior Economic Officials on such issues as rules of origin, tariff nomenclature, customs related issues and economic cooperation.

The Ministers appreciated ERIA’s research activities to deepen the integration in East Asia and in particular looked forward to ERIA’s report to ASEAN+6 Economic Ministers in Vietnam in August on Comprehensive Asia Development Plan, which would contribute to better connectivity in the region, mandated by the last East Asia Summit. The Ministers also expressed expectation of ERIA’s further contribution in providing policy recommendation for growth strategy for East Asia such as developing infrastructure, expanding middle class, stimulating consumer market and encouraging innovation.

The Ministers shared the view that a strong multilateral trade system was vital for underpinning the recovery and ensuring future growth in the world economy, and committed themselves to continue their cooperation to achieve an ambitious, balanced and comprehensive conclusion of the Doha Development Round as early as possible.

The Ministers recognized the important role played by the Ministerial JIPD in promoting India-Japan economic engagement as a strategic priority for both countries and looked forward to the next meeting which would be convened in Tokyo in 2011.
 

CREDAI response on Finance Bill 2010

 

 

 

India, 30 April 2010: The Confederation of Real Estate Developers’ Associations of India (CREDAI), the apex body of real estate developers in India, shared its response on the Service Tax issue passed by the Lok Sabha.

 

Mr. Kumar Gera, Chairman of CREDAI shared, “We appreciate the government’s gesture in increasing the abatement from 67% to 75%. This would mean that the service tax charged on the cost of apartments would go down to about 2.5% from the earlier proposed 3.3%. We however feel that the method of calculation for the same is unjust as land, the biggest component in the cost of a residential unit, should not be taxed as a service. In the present proposal, the abatement given (where cost of land is included in the price of the apartment) will be unjust. To illustrate, if there are two identical apartments – one is priced at Rs. 3000/-per sq. ft. and the other at Rs. 15000/- per sq ft. Prices vary only due to the location (and therefore the value of land). The service tax amount in one case will be Rs. 75/-per sq ft and in the other case Rs. 375/-per sq ft. As the service element is the same in both cases. How is this variation just? The fine print, when available, will hopefully address these issues.

 

This process will lead to complications and also pose difficulties for the buyers in understanding how and what they are being taxed for.

 

The applicability of the tax on projects that are under construction currently is also a matter which requires clarity. Home buyers as well as developers at the moment are not sure if they will be taxed fully or partially for bookings already made on under construction projects.

 

The practicality of implementing this tax will also face hurdles as the provisions and methodology for issuance of completion certificates vary across states.

 

It is also worth mentioning that with the Goods & Services Tax (GST) expected to be introduced soon; this action looks unnecessary and would invite further complications when the GST is brought into effect.”

 

 

About CREDAI

It is the apex body of the organized real estate developers/builders across India, representing pan-India associations of real estate and housing developers. Since its inception in the year 1999, the association has grown manifold with allegiance from 20 state/city level associations viz. Andhra Pradesh, Chhattisgarh, Delhi-NCR, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal with over 5000 individual member developers encompassing over 60% of the organized private sector real estate development activity in member states/cities in the country. CREDAI has been instrumental in rallying the cause of the Real Estate sector by presenting the issues and concerns of real estate developers to the Government.

ArcelorMittal announces publication of 2009 annual report of ArcelorMittal Finance

Luxembourg, 30 April 2010 - ArcelorMittal announces the publication of the annual report relating to the financial year 2009 of ArcelorMittal Finance S.C.A., as required by the Luxembourg Transparency Law of 11 January 2008. The report has been filed with the electronic database of the Luxembourg Stock Exchange ( www.bourse.lu ) and is available on www.arcelormittal.com under "Investors and Shareholders > Reports and Documents > ArcelorMittal reports".

About ArcelorMittal

ArcelorMittal is the world's leading steel company, with operations in more than 60 countries.

ArcelorMittal is the leader in all major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the Company covers all of the key steel markets, from emerging to mature.

Through its core values of Sustainability, Quality and Leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and wellbeing of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources. ArcelorMittal recognises that it has a significant responsibility to tackle the global climate change challenge; it takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change.

In 2009, ArcelorMittal had revenues of $65.1 billion and crude steel production of 73.2 million tonnes, representing approximately 8 per cent of world steel output.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

World Bank Provides US$118 million to Improve Health Systems in Tamil Nadu, India

WASHINGTON, DC, April 29, 2010 ─ The World Bank today approved a US$117.70 million IDA credit to India, designed to improve quality of and access to health services in the state of Tamil Nadu. This comes as additional financing to the Tamil Nadu Health Systems Project which was approved on December 16, 2004 with an IDA credit amount of US$110.83 million.

Tamil Nadu has made significant strides in improving the health status and increasing access to health care services in the last decade. According to the most recent National Family Health Survey (2005-2006), the state’s infant mortality rate dropped 35 percent since the previous survey (1998-1999). These improvements are in part due to a significant increase in overall vaccination coverage of children between 12 and 23 months. The overall nutrition status of children under age 3 also has improved, with an 18 percent reduction in underweight children. The state’s maternal mortality ratio decreased from 167 deaths per 100,000 live births in 1999 to 111 deaths per 100,000 live births in 2006[1].

“Tamil Nadu has made impressive progress in improving maternal and child health, and further improvements would be achieved by improvement in the overall quality of care, particularly for provision of comprehensive emergency obstetric and neonatal care,” said Preeti Kudesia, World Bank Sr. Public Health specialist and project team leader. “The additional funding will support the continuation of successful activities, and will particularly focus on improving the quality of health care provision. The project will also enhance access to and utilization of health services by the state’s poor, remote, and tribal populations.”

Over the past four years, the project has helped establish 80 Comprehensive Emergency Obstetrics and Neonatal Centers throughout the state, leading to improved access and quality of care for pregnant women and infants. It has also provided 385 ambulances, which have strengthened the Emergency Transport Services in rural areas in Tamil Nadu. Health services in tribal areas of the state have also improved through mobile outreach services and supporting sickle cell anemia screening interventions and patient counseling services.

These well-performing programs supported by the original project that will be scaled up include state-wide expansion of non-communicable disease prevention and control activities, which are currently active in two districts in the state. The additional financing will also support state-wide implementation of hospital and health management information systems, and the strengthening and monitoring of maternal and neonatal health services at the tertiary level.

The loan from the International Development Association (IDA) has a 35 year maturity including a 10-year grace period.

World Bank Supports Urban Development in Bhutan


WASHINGTON, April 29, 2009 ─ The World Bank today approved a $12 million IDA credit to Bhutan, designed to improve infrastructure services in parts of the capital city of Thimphu where no formal services are currently available.

Bhutan has experienced rapid social and economic growth in the past couple of decades, which has fueled urbanization. Since 2000, the country’s urban population has grown at about 4.7 percent per year. It now accounts for about a third of the total population, and is expected to reach 50 percent by 2020. Thimphu, by far the country’s biggest city with about 80,000 residents, is struggling to manage the urban expansion. The newly extended areas in the north and south of the city are underdeveloped and lack basic urban infrastructure.

The Second Urban Development Project will finance development of basic infrastructure in the northern areas of Thimphu, including roads, storm water drainage, water supply, sewerage, and street lighting. The project builds on the experiences of the first Urban Development Project, approved by the Bank in 1999, with an IDA credit amount of $10.8 million. The project helped to develop urban infrastructure as well as strengthen local government’s project management in ten small and medium-sized towns.

“There is an urgent need to accommodate Bhutan’s rapidly increasing urban population and to develop policies and institutions to facilitate and manage urban growth,” said Toshiaki Keicho, World Bank Sr. Urban Environment Specialist. “This project will make significant contribution to the equitable and sustainable expansion of urban services through developing critical infrastructure and by strengthening the financial and institutional capacity of the responsible local authorities.”

Specifically, the project will support Bhutan’s municipal reform program by strengthening municipal finance and management in Thimphu and Phuentsholing. Further, it will help implement the country’s new legal framework for urban local governments, including the establishment of an effective intergovernmental fiscal transfer system.

The credit from the International Development Association, the World Bank’s concessionary lending arm, has 20 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent.

SSAB covers the Swedish Pavilion at the World Expo in Shanghai with energy-saving steel

A unique facade and roofing sheet that reduces the need for artificial indoor cooling in hot climates by up to 15 percent covers the Swedish pavilion at the World Expo in Shanghai. The product, Prelaq Energy from the steelmaker SSAB, is an energy-saving steel that can dissipate heat from solar radiation.

Body The roof of the Swedish pavilion is in a clear yellow color and the external walls are clad in white, perforated Prelaq Energy plates. The perforations in the plates form a street map of Stockholm, the capital of Sweden. But the plates are not only for decoration. Prelaq Energy has qualities which contribute to reducing energy consumption in buildings by up to 15 percent. The secret lies in the sheet's organic coating mixtures and pigments which are able to regulate inward heat radiation and contribute to a comfortable indoor climate.

“This high-tech steel from SSAB contributes to saving energy for cooling and ventilation, and thereby leads to a reduced impact on the environment,” says SSAB APAC President Martin Pei. It also connects to the overall theme of the Expo – Better Cities, Better Life, and to China’s commitment to creating a more sustainable future.

The Swedish pavilion reflects the interplay between city and nature. Nature has also been a source of inspiration in the development of Prelaq Energy. The qualities of the material can be compared with leaves on trees which act as a heat transfer medium in times of strong solar radiation.
An estimated total of 100 million visitors are expected to visit the World Expo from May 1st to October 31st. Shanghai is a city with temperatures reaching 40 °C (over 100 °F) in the summer and thus cooling is essential. This cool, environmentally friendly climate will be experienced by the visitors to the Swedish pavilion, thanks to Prelaq Energy.

SSAB will host seminars at the Swedish pavilion on the 13th and 14th of May.

Higher efficiency, less CO²: New material for 700-degree power plants ready for practical test phase

Together with E.ON and Hitachi Power Europe, ThyssenKrupp VDM has lab-developed a new material that subject to successful testing will represent a major step towards the construction of advanced 700-degree power plants. This new technology could further improve the efficiency of coal-fired power plants while reducing carbon dioxide emissions. The efficiency of new power plants can be increased by raising the steam temperature in the boiler and turbine from 600 degrees (at a pressure of 250 bar) to around 700 degrees (350 bar) - a temperature that the materials currently used in power plant construction cannot withstand permanently. The nickel-based special steels developed by ThyssenKrupp VDM therefore have a key role to play in the design of the power plant of the future.

With this specific application in mind, the research laboratories of ThyssenKrupp VDM have taken an existing material and significantly enhanced its properties. "Alloy 617 B occ" (optimized chemical composition) - corresponding to Nicrofer 5520 occ at ThyssenKrupp VDM - offers high strength and ductility at the same time as good weldability. In the power plant of the future it could be used in tubes, valves and connectors as well as in the form of sheet and plate. Alloy 617 B occ owes its special properties to three factors: First, it is melted and remelted in a vacuum, preventing the pickup of undesirable substances from the air. Second, it contains a minimal amount of boron, whose content has to be precisely defined and controlled. And thirdly, its molybdenum and carbon contents have been optimized to enhance weldability while retaining the same strength. "Alloy 617 is one of the most thoroughly investigated nickel alloys and has been used in pressure vessels for decades," says Ralf Husemann of Hitachi Power Europe. "Despite this, we wanted to optimize its properties with a view to achieving added operational reliability with A 617 occ. For Hitachi, operational reliability is paramount," adds Husemann.

From 2012 the new high-performance material is to be tested in pilot plants in parallel with further laboratory investigations. Extensive testing of the new materials is a key requirement for the construction of a 700-degree power plant. A precursor of the now optimized Alloy 617 B occ has been tested successfully for around five years in various laboratories and pilot plants. The results and experience gained played a major role in the development of the new material. "To validate the lab tests it is necessary to manufacture components from the nickel alloys and test them under actual power plant conditions," says Helmut Tschaffon, head of 700°C R&D activities at E.ON Energie. "This includes demonstrating that the materials can withstand the normal operating stresses in a power plant such as startups, shutdowns and load changes."

"We are confident that the positive properties of Alloy 617 B occ will be confirmed in the tests and that we can start marketing the material soon," says Dr. Jutta Klöwer, head of research and development at ThyssenKrupp VDM. "This takes us a big step closer to our goal of building more efficient, low-CO² power plants that can make a major contribution to environmental protection." Tschaffon, too, is convinced that thanks to the development of Alloy 617 B occ work on building 700-degree power plants can begin in the course of this decade.

ArcelorMittal reports first quarter 2010 results  

Luxembourg, April 29, 2010 - ArcelorMittal (referred to as "ArcelorMittal", or the "Company") (MT (New York, Amsterdam, Brussels, Luxembourg, Paris) MTS (Madrid)), the world's leading steel company, today announced results [1] for the three months ended March 31, 2010.

Highlights:

• Health and Safety frequency rate [2] consistent with Q4 2009
• Steel shipments of 21.5 million tonnes in Q1 2010, up 8% compared to Q4 2009
• Average steel selling prices down 3% in Q1 2010 compared to Q4 2009
• EBITDA [3] of $1.9 billion in Q1 2010
• Net debt [4] increased by $1.9 billion to $20.7 billion in Q1 2010, due to investment in working capital and M&A activity

Performance and industrial plan:

• Capacity utilisation increased to 72% in Q1 2010 from 70% in Q4 2009
• $2.9 billion of annualized sustainable cost reductions achieved by the end of first quarter of 2010; on track to achieve $5.0 billion of management gains by 2012

Guidance for the three months ended June 30, 2010:

• EBITDA expected to be between $2.8 billion - $3.2 billion

Financial highlights (on the basis of IFRS [1] , amounts in USD):

(USDm) unless otherwise shown	1Q 10	4Q 09	1Q 09
Sales	$18,652	$18,642	$15,122
EBITDA	1,888	2,131	883
Operating Income / (Loss)	686	684	(1,483)
Net Income / (Loss)	679	1,070	(1,063)
Iron Ore Production (Mt)	15.7	15.6	11.9
Crude Steel Production (Mt)	23.1	22.5	15.2
Steel Shipments (Mt)	21.5	20.0	16.0
EBITDA/tonne (US$/t)	88	107	55
Operating Income (Loss)/tonne (US$/t)	32	34	(93)
Basic Earnings / (Loss) per share (U.S. dollar per share)	0.45	0.71	(0.78)

Commenting, Mr. Lakshmi N. Mittal, Chairman and CEO, ArcelorMittal, said:

"The economic recovery is continuing in-line with our expectations and 2010 is set to be a stronger year for ArcelorMittal.  The year has started with improved demand in all main markets, which will have a positive impact in the second quarter."

Ashok Leyland Turnover at Rs. 7,244.71 crores, up 21%

 

·        Net Profit at Rs 423.67 crores, up 123%

·        Capex and investment plans of Rs. 2,000 crores
over the next 2 years

 

 

Ashok Leyland, the Hinduja Group flagship, has registered a sales turnover of
Rs 7,244.71 crores during 2009-10 compared to Rs 5,981.07 crores in the previous fiscal. Net profit also rose by 123% to touch Rs 423.67 crores
(Rs 190 crores).   

 

The Company effectively contained the increase in raw material prices especially steel and rubber reflected in the rise in consumption of raw material by just 17% at Rs. 5,217.52 crores (Rs. 4,452.25 crores).

 

Employee cost during the year rose by 18% to Rs. 665.93 crores
(Rs. 566.18 crores). Other expenditure went up by only 21% at Rs. 598.42 crores (Rs. 493.21 crores) thanks to the efforts towards cost reduction. Financial Expenses were curtailed by 31.7% at Rs. 81.13 crores as against
Rs. 118.71 crores in the previous fiscal largely through better management of liquidity and working capital.

 

An expenditure of Rs. 3.27 crores (Rs. 13.49 crores) for VRS compensation amortised is an extraordinary item. Income Tax claimed Rs. 121.10 crores
(Rs. 12.45 crores) to give a Net Profit from Ordinary Activities after tax of
Rs. 423.67 crores (Rs. 190 crores).

 

Depreciation for the year was higher at Rs. 204.11 crores (178.41 crores) mainly due to additions during the year, including commissioning of the Pantnagar plant. Other income increased by 42% to Rs. 70.44 crores (Rs. 49.62 crores).

 

“Although the year started sluggishly, the second half has been a very impressive story. The market turned around and we were able to take advantage of the traction in the market to double our sales in the second half compared to the first,” said Mr. R. Seshasayee, Managing Director. “While it helped us finish the year very strongly, it has also given us the right momentum going into the future,” he added.  

 

The Company’s total sales volume rose 17% to 63,926 vehicles
(54,431 vehicles) during 2009-10. This was on the back of improved sales in the haulage and passenger segments. Bus sales remained robust thanks to orders received under JnNURM.

 

Quarter over quarter, the numbers make for even better reading for the fourth quarter with Turnover up 141.3% at Rs. 2,939.04 crores (Rs. 1,218.12 crores) and Net Profit up 318% at Rs. 222.66 crores as against Rs. 53.32 crores in the corresponding previous quarter. Profit from operations before other income, financial expenses and exceptional items rose 371% at Rs. 319.64 crores
(Rs. 67.83 crores). Profit before financial expenses and exceptional item rose 303% at Rs. 321.95 crores (Rs. 79.94 crores).

 

With the inauguration of the modern, fully-integrated manufacturing facility at Pantnagar, Uttarakhand, the Company’s annual installed capacity will be 150,500 vehicles.

 

Production at the new chassis and bus assembly plant at Ras Al Khaimah, UAE, has already begun and, at full capacity, can roll out 2,000 buses to international specifications. These products, which will eventually also include trucks, will be manufactured to feed the neighbouring GCC (Gulf Co-operation Council) and African markets.

 

The Company has earmarked Rs 1,200 crores for Capex over the next couple of years in addition to investments ear-marked for the various joint ventures to the tune of Rs. 800 crores.

 

Having obtained the RBI license for operations as NBFC, Hinduja Leyland Finance is set to commence operations of providing financing for commercial vehicles and allied vehicle financing, initially from 130 centres across 16 states.

 

The developmental activity for all joint ventures are well on schedule. The first batch of Light Commercial Vehicle products as part of the JV with Nissan Motor Company will roll out by early 2011. The JV with John Deere for the construction equipment business is also well on track with pilot production set to commence at their new manufacturing facility at Goomdipoondi, near Chennai, from October 2010 and products set to roll out by early 2011.

 

About the prospects for the current year, Mr. Seshasayee said, “The future appears promising. On one hand, the macro-economic indicators are positive although, on the other, there are issues of rising fuel and raw material prices. Come October, the migration to superior emission norms will happen and I am happy to state that we are ready with the products and the technology to improve our market share. While one may not expect the 30+% growth levels witnessed in 2009-10, we are optimistic of a healthy growth at over 15% for the commercial vehicle industry in this fiscal.”

Nokia N8. Connect. Create. Entertain.

Espoo, Finland - The Nokia N8, Nokia's latest smartphone, intuitively connects to the people, places and services that matter most. With the Nokia N8, people can create compelling content, connect to their favorite social networks and enjoy on-demand Web TV programs and Ovi Store apps. Available in select markets during the third quarter of 2010, the estimated retail price of the Nokia N8 is EUR 370, before applicable taxes or subsidies.

The Nokia N8 introduces a 12 megapixel camera with Carl Zeiss optics, Xenon flash and a large sensor that rivals those found in compact digital cameras. Additionally, the Nokia N8 offers the ability to make HD-quality videos and edit them with an intuitive built-in editing suite. Doubling as a portable entertainment center, people can enjoy HD-quality video with Dolby Digital Plus surround sound by plugging into their home theatre system. The Nokia N8 enables access to Web TV services that deliver programs, news and entertainment from channels like CNN, E! Entertainment, Paramount and National Geographic. Additional local Web TV content is also available from the Ovi Store.

Social networking is second nature to the Nokia N8. People can update their status, share location and photos, and view live feeds from Facebook and Twitter in a single app directly on the home screen. Calendar events from social networks can also be transferred to the device calendar.

The Nokia N8 comes with free global Ovi Maps walk and drive navigation, guiding people to places and points of interest in more than 70 countries worldwide.

Symbian^3 in action
Powering the Nokia N8 is Symbian ^3, the latest edition of the world's most used smartphone software, which introduces several major advances, including support for gestures such as multi touch, flick scrolling and pinch-zoom. The Nokia N8 also offers multiple, personalizable homescreens which can be loaded with apps and widgets. The new 2D and 3D graphics architecture in the platform takes full advantage of the Nokia N8's hardware acceleration to deliver a faster and more responsive user interface.  Symbian^3 also raises the bar in performance by delivering greater memory management allowing more applications to run in parallel for a faster multi-tasking experience.

Getting Qt for Developers
The Nokia N8 is Nokia's first device to be integrated with Qt, a software development environment that simplifies the development and makes it possible to build applications once and deploy across Symbian and other software platforms.  Nokia has also made the powerful and simple to use Nokia Qt SDK available, in its initial beta, to enable developers to start realizing the potential of Qt.

  

About Nokia
At Nokia, we are committed to connecting people. We combine advanced technology with personalized services that enable people to stay close to what matters to them. Every day, more than 1.2 billion people connect to one another with a Nokia device - from mobile phones to advanced smartphones and high-performance mobile computers. Today, Nokia is integrating its devices with innovative services through Ovi  including music, maps, apps, email and more. Nokia's NAVTEQ is a leader in comprehensive digital mapping and navigation services, while Nokia Siemens Networks provides equipment, services and solutions for communications networks globally.

Pepsi adds refreshing content to Nokia's Ovi Store

Nokia's Ovi Store offers the world's most popular apps and games on their summer of football channel 

Espoo, Finland - Nokia today announced the launch of the Ovi Store football channel featuring exclusive Pepsi content as well as entertainment, apps and information from the world's most recognized football content providers. The channel leverages Ovi Store's global reach to offer Nokia football fans around the globe the easiest place to shop for the most popular and most refreshing mobile football content.

Launching today, Nokia's Ovi Store football channel is the ultimate football fan destination featuring highly popular apps, games, and the ability to quickly personalize and refresh your Nokia.

As part of Ovi's football offering, Pepsi's charity football anthem 'Oh Africa' will be featured for sale on Ovi Music Store. The charity single performed by six-time Grammy nominee, Akon, featuring Keri Hilson, the Soweto Gospel choir and sixteen youth from around the world is the soundtrack to Pepsi's 2010 football campaign.  

"Pepsi's unique content combined with Nokia's unparalleled global reach offers football fans around the world the chance to get involved with this year's great Football summer no matter where they are," said Marco Argenti, VP and Global Head of Media, Nokia. "The Ovi Store football promotion offers passionate football fans instant access to news, apps, games and a growing selection of personalization content from some of the world's top teams."

Claudia Lagunas, Digital and New Media Director at PepsiCo International commented: "Working with Nokia allows us to connect and communicate with the worldwide mobile community. Nokia's Ovi Store offers an exciting new channel through which to share our football content with millions of football fans around the globe."

Also launching today is the Nokia Skill Dribbler competition giving mobile gamers the opportunity to win a Football trip of a lifetime for two to see 'El Clasico' in Barcelona. To win, skill dribblers have to show off their silky football game skills, avoiding tackles and keeping control of the ball for as long as they can to accumulate points. The highest weekly scorers will receive a shirt signed by a one of the worlds' top footballers and Nokia N97 mini. The top scorer of the competition will be on their way to Barcelona. To enter and play Skill Dribbler visit www.ovi.com.

In addition to PepsiCo's content Nokia's Ovi Store football channel will also host a long list of further content dedicated to 2010's summer of football. From competitions and tournament updates to personalizing your device, football is a lot more fun when you are part of the action. Some of the key content and features to get you involved include:

Great goals
If you are supporting Brazil, England, or just great football, Great Goals will whet your appetite for what's to come with a series of free audio and video downloads dedicated to great goals scored by great players.

Football updates and news
No matter where you are in the world, you can't catch every game of the tournament but you can still get live updates. 2010's summer of football news and update applications are available from the largest football websites in the world. Livemobile Football, ESPN Soccernet, and Goal.com are all available as free applications to keep you up to date with breaking news from around the world, previews and recaps of games for all major leagues in the world and more. 

Games
Experience the latest in mobile football gaming and battle to win the cup for your country. Games available include Gameloft's Real Football 2010 and Real Football Manager 2010, and beat the rest in the next generation of sports radar built for speed shooting, Speedhero Multisport, and the latest football games from EA SPORTS.

Touchnote
A picture is worth a thousand words, but reminding everyone your country beat their country with a postcard is priceless. This app takes digital pictures and makes them into physical postcards in a matter of clicks.

Social networking
Whether heading to South Africa or just down the street to your local bar, stay in touch with your friends and family to let them know where you are watching the game. Share your football experience with fans back home, comment on games, post media, and find out where the nearby parties are.  Social networks like Nimbuzz and Buddycloud make sharing easy from your Nokia device.

Ovi Maps
Don't miss the Game because you got lost, Use new Ovi Maps with free walk and drive navigation available on Nokia smartphones to find your way to stadium, bar, park, or wherever you choose to watch the game. After the game, find the best sights, restaurants, hotels and events wherever you are through the Lonely Planet and Michelin travel guides that come free with the new Ovi Maps.   

About Nokia
At Nokia, we are committed to connecting people. We combine advanced technology with personalized services that enable people to stay close to what matters to them. Every day, more than 1.2 billion people connect to one another with a Nokia device - from mobile phones to advanced smartphones and high-performance mobile computers. Today, Nokia is integrating its devices with innovative services through Ovi including music, maps, apps, email and more. Nokia's NAVTEQ is a leader in comprehensive digital mapping and navigation services, while Nokia Siemens Networks provides equipment, services and solutions for communications networks globally.

About Ovi
Ovi is a family of internet services for use on Nokia mobile devices that keeps people connected to the people and things that matter. Ovi services include Ovi Maps with walk and drive navigation and premium travel content; Ovi Music with millions of music tracks; Ovi Mail for email and messaging; Ovi Share for sharing content; and the Ovi Store, filled with thousands of apps, games and media from the content industry's biggest names along with independent developers. 

About PepsiCo
PepsiCo offers the world's largest portfolio of billion-dollar food and beverage brands, including 18 different product lines that each generate more than $1 billion in annual retail sales. Our main businesses - Frito-Lay, Quaker, Pepsi-Cola, Tropicana and Gatorade - also make hundreds of other nourishing, tasty foods and drinks that bring joy to our consumers in over 215 countries. With more than $43 billion in 2009 revenues, PepsiCo employs 203,000 people who are united by our unique commitment to sustainable growth, called Performance with Purpose. By dedicating ourselves to offering a broad array of choices for healthy, convenient and fun nourishment, reducing our environmental impact, and fostering a diverse and inclusive workplace culture, PepsiCo balances strong financial returns with giving back to our communities worldwide. 

Order from China for Fontaine Engineering

Yichang Three Gorges orders six air-knife systems for hot-dip galvanizing lines

 

Yichang Three Gorges (Yichang Three Gorges Quantong Colored and Galvanized Plate Co., Ltd.), China, has placed an order with FOEN (Fontaine Engineering und Maschinen GmbH), Germany, for the supply of six air-knife systems inclusive of the electrical and automation package. The systems are to be integrated into six hot-dip galvanizing lines and will allow easy and precise setting of the zinc coating thickness. All of the plants are virtually identical and will be erected in the immediate vicinity of Yichang, a city with over a million inhabitants, and the Three Gorges Dam.

 

All of the plants are scheduled for commissioning in the second half of 2010. This short delivery period is only possible due to the high degree of standardization of the FOEN systems.

 

The supply scope comprises the design, manufacture and com­missioning of the air-knife systems inclusive of the electrical and automation package. The systems include an automatic control facility which regulates the air-knife parameters with the aid of a product database. The coating qualities can thus be generated and reproduced in a reliable manner. To enable continuous testing of the coating quality, X-ray coating-thickness measuring devices from the firm of IMS will be included with each air-knife system supplied by FOEN.

 

The plants are designed for coating thicknesses between 40 and 275 g/m² (zinc) and between 30 and 200 g/m² (zinc-aluminum alloy) at a strip speed of 30 to 130 m/min. The strip widths are between 1,000 and 1,250 mm at strip gages between 0.5 and 2 mm. 450,000 t can be produced each year on each plant.

 

MINISTER FARAGHER TOURS KOOLANOOKA PROJECT

 

Environment Minister Donna Faragher today toured Sinosteel Midwest Corporation’s Koolanooka Direct Shipping Ore (DSO) Project, 160km south east of Geraldton.

 

The tour was part of an event organised by the Geraldton Iron Ore Alliance (GIOA) to launch a cooperative environmental research project into feral goats in the Mid West region. The study will be funded by GIOA members, including Sinosteel Midwest.

 

According to Sinosteel Midwest Chief Operating Officer Giulio Casello, the launch of the cooperative study provided the ideal opportunity to showcase some of the things the company is doing to meet and exceed their environmental responsibilities at its iron ore mine site at Koolanooka.

 

“Sinosteel Midwest has committed to several measures for the Koolanooka/Blue Hills Project which will contribute both directly and indirectly to offset environmental impacts within project areas,” Mr Casello said.

 

“A parcel of land within the Koolanooka Threatened Ecological Community (TEC) of approximately 2,500ha will be fenced and managed to restrict intrusion of sheep and feral goats. At Blue Hills, the company will relinquish 5,270ha of tenements to directly offset the impacts of mining within the area.

 

“We have also committed $100,000 to the DEC for conservation management initiatives such as weed eradication, fencing for goat control, and fire and access management.

 

“These offsets are part of our wider environmental management program which includes proactive Malleefowl conservation measures, studies into reducing greenhouse gas emissions, and a rehabilitation and restoration plan incorporating a strategic partnership with the Botanic Garden and Parks Authority (BGPA), based in Kings Park in Perth,” Mr Casello said.  

 

The GIOA-funded cooperative study which was today launched by Minister Faragher in Morawa involves the Department of Environment and Conservation (DEC), Murdoch and Curtin universities and property owners in the region. This research will assess how native vegetation responds to goat removal and will provide land managers with a sustainable approach to managing the goat populations in the Mid West. Feral goats are considered to be the single greatest threat to native vegetation in the Mid West region of Western Australia. They have a major destructive influence on the ecosystem as a result of over grazing.

EMPower Workshop on

Large-Scale Solar Power in Asia

The EMPower workshop on large-scale solar power in Asia, jointly funded by the German Federal Ministry for Economic Development & Cooperation (BMZ) and UNEP, is being organised on 26th and 27th April in New Delhi. The workshop is co-hosted by the German Development Bank KfW and Reliance Power, and supported by India's Ministry of New & Renewable Energy and Ministry of Power. The Minister for New & Renewable Energy, Dr. Farooq Abdullah, inaugurated the opening session at the Taj Mahal Hotel in New Delhi.

The first EMPower workshop was organised in Berlin. The second capacity building workshop is now being hosted in India. This international workshop brings together 170 participants, mostly CEO’s from leading solar companies and senior government officials from India, Germany and the Philippines.

EMPower stands for Exploring and Motivating Sustainable Power Markets. The objective of the EMPower Initiative is to provide a platform for leading practitioners from utilities and solar industries in India, Germany, and the Philippines to present their views on market barriers in mainstreaming solar energy into India. The dialogue with high-level stakeholders from government agencies focuses on possible solutions that help implementing large-scale solar projects in Asian countries, specifically in India.

Apart from devising an action plan for solar energy professionals for better and effective implementation of solar energy related programmes, the workshop provides an opportunity to network with high level representatives from some of the world's largest solar companies, policy makers, utilities, financial sector and development organisations.

The workshop is concluding today afternoon with the “EMPower Declaration New Delhi”. In this document the participants will compile key findings of the workshop, including proposals addressed to investors, policy makers and regulators for the promotion of large-scale solar plants in India and in the Philippines.

Statement by the Prime Minister on the Eve of His Departure for Bhutan
  
Following is the text of the Prime Minister, Dr. Manmohan Singh’s statement on the eve of his departure to Bhutan:

“I will be leaving tomorrow for Bhutan to attend the 16th SAARC Summit being hosted by Bhutan.

This Summit has special significance as it takes place on the twenty fifth anniversary of SAARC. This is also the first time that Bhutan will be hosting a SAARC Summit.

The establishment of SAARC in 1985 was a visionary step for the South Asian region. During this period the region has witnessed major transformation, and the idea of regional economic cooperation has taken firm roots. We have established a robust institutional framework for cooperation in diverse areas such as food security, poverty alleviation, terrorism, communication links, trade and economic, and a range of social issues impacting lives of our people. The South Asian Free Trade Agreement, the SAARC Development Fund and the South Asian University are some concrete examples of regional projects that will enable greater economic inter-linkages, and promote people to people contacts within the region.

The Summit will provide the countries of this region an opportunity to collectively reflect on where we are, what more we can do together to meet the developmental aspirations of our people, and how South Asia can play its rightful role in the international arena.

The winds of change are blowing across the world. South Asia cannot be immune to the trend of greater integration, both at the regional and global levels. If we as South Asians work together, there is nothing that we will not be able to achieve. India will play its part in the resurgence of South Asia.

The theme of this year’s Summit is “Climate Change”. I look forward to discussing regional cooperation and strategies for tackling the effects of global warming in our region. Ours is a particularly vulnerable region, which demands a coordinated and well thought out response cutting across sectors. We all stand to benefit by learning from each other’s experiences and strengths.

India enjoys close relations with Bhutan which are based on complete mutual trust and understanding. I look forward to holding bilateral discussions with the Prime Minister of Bhutan H.E. Jigmi Y. Thinley to build upon these solid foundations. I also look forward to my meetings with leaders of other SAARC countries.”

Anand Sharma Releases Strategy Paper on Engineering Exports – Target of us $ 110 Billion by 2014

  
Shri Anand Sharma, Union Minister of Commerce and Industry, while releasing the Strategy Paper on the Growth of Engineering Exports commissioned by EEPC India and carried out by Ernst & Young, here today, said that engineering exports from India have grown considerably in the last few years with a growth rate that has been much higher than the world average. Commending the efforts of EEPC India, Shri Sharma stated that the Strategy Paper has set a target of USD 110 billion by 2014 for total engineering exports. “This, indeed, is a robust target and if engineering is able to maintain its share of nearly 22% in total exports than by 2014, India’s total exports should be in the range of USD 500 billion”, he said.

Speaking on the occasion, the Minister said that there is a major transformation taking place in the world markets. “The global economic recession is likely to leave its imprint for some more time, particularly in the developed world and hence it is important that our exporters concentrate on two critical ingredients for future growth: to remain competitive as also maintain quality and secondly to diversify into new markets. The strategy paper, I hope, has enough inputs that members of EEPC India can productively deploy and benefit from”, Shri Sharma added.

During the interaction, the Minister further stated that the DGFT is carrying a sectoral review of the exporting scenario, wherein all aspects of the policy related problems and major hurdles are being looked into sector by sector. The amendments to the new Foreign Trade Policy that I announced last August will reflect the concerns of the exporting community and initiate steps within our means to help exporters reach greater heights of glory, the Minister said.

Delivering the welcome address, Shri Anupam Shah, Vice Chairman, EEPC India, has said that the Study has carried out a detailed product analysis and added that the entire set of 1655 engineering products have been mapped by their past export share and growth performance from a global and Indian perspective. Based on their performance in India’s exports vis-à-vis in the world’s exports, engineering products have been classified into the Core, Leader, High-Potential and Striver categories. The Core, Leader and High-Potential product categories together constitute all the products that are important from an Indian and world perspective and have hence been collectively referred to as the thrust products.

Some of the highlights of the strategy paper are as below:

• India should aspire to triple its engineering exports over 2010–2014 to reach USD110 billion. In view of India’s current low share of world engineering exports, and considerable scope for improvement in its competitiveness, it can achieve a CAGR of 22–25% over 2010–2014.

• To realize this aggressive but achievable aspiration, concerted effort needs to be put in by the government, the council and exporters. The key imperatives for India include (1) enhancing the alignment and effectiveness of trade drivers, (2) boosting the competitiveness of the Indian engineering industry and facilitating upward movement along the value chain, (3) and strengthening enablers for growth by clearing infrastructural and procedural bottlenecks.

• India continues to be one of the fastest growing exporters of engineering goods, growing at a CAGR of 30.1%, trailing only China among major engineering exporters, but well above the global engineering average export growth of 13%. Significantly, the country’s engineering export growth rate has been higher than its overall exports.

• In 2008, India’s goods export touched USD182 billion (CAGR of 23% over 2004–2008), with its engineering exports contributing 23.69% of its total exports of goods, reaching USD43.13 billion (a CAGR of 30% over 2004-2008). However, the country’s share of engineering exports in its total exports – like the developing countries of Asia and Latin America – continue to be much lower when compared to developed countries.

• India has benefited less than other India-like countries from the proliferation of bilateral and regional trade agreements – comparatively higher tariff rates apply for Indian exports. Further, some of its export competitors have availed reduction or complete removal of tariffs for their exports, which has resulted in a decline in the competitiveness of exports from India vis-à-vis its competitors.

• If India wants to improve its export prospects, it needs to ensure preferential market access for its engineering exports by (1) negotiating trade agreements with some of its bigger exports markets and by (2) broadening the scope of the agreements by negotiating for complete FTAs/ CECAs.

• For India to capture opportunities in increasingly integrated global markets, it needs to align its trade enablers and drivers – trade agreements, promotions and marketing – with the global trade scenario and the fast evolving engineering trade landscape worldwide. Initiatives under this imperative include:

• Accelerate bilateral/regional trade negotiations, broaden their scope and leverage WTO flexibilities

• Align export promotion activities to the nature of markets and their relative importance to India

• Improve effectiveness of promotional activities

• Focused targeting of thrust markets for all major product categories

• Enhancing trade facilitation

• The government needs to facilitate economies of scale in the engineering sector by initiating policy-level measures to improve the saleability of engineering SEZs in the developer and user community and also attract higher levels of FDI in the engineering sector. These measures will need additional stimulus in the form of labor reforms to amend the existing archaic laws to meet the needs of current market realities, and also enhance the quality and quantity of manpower.

• The government should extend the Technology Upgradation Fund Scheme (TUFS) to the High-Potential and Striver product categories to combat increasing technological obsolescence in them. The TUFS should be first geared towards High-Potential products and later towards Strivers to ensure an immediate boost to engineering exports while enabling higher employment generation at the same time.

• The government should set up a skill development fund to impart training in areas where technology upgradation is being initiated to ensure the enhancement the productivity and quality levels. EEPC should take the lead in enhancing the skill levels in the engineering sector by identifying clusters where it is a necessity as well as developing a training plan so as to quickly implement it across the length and breadth of the country.

• While FDI will definitely help improve the technological capabilities in India, certain other important initiatives such as centralized mapping of the R&D activity happening in the engineering sector, incentivizing commercialization of indigenously developed technology, marketing of the developed technologies to ensure sustainability of R&D, enhancing industry-academia-central R&D institution interactions need to be taken up on a priority basis by the government.

• Additionally, an enhancement of the tax incentives would further boost R&D in the engineering sector.

• The government needs to simplify several customs procedures by reducing the number of requisite procedures or by initiating the process of self-certification for status-holders. In addition, it should undertake other relevant technological initiatives to reduce the overall transaction time and related costs.

IMF, Swiss National Bank Announce High-Level Conference on International Monetary System

April 27, 2010

The Swiss National Bank (SNB) and the International Monetary Fund (IMF) will jointly host a High-Level Conference on the International Monetary System in Zurich on May 11, 2010.

In the wake of the global crisis, this conference will provide an opportunity to exchange ideas on a number of related topics, including sources of instability in the international monetary system, improving the supply of reserve assets, dealing with volatile capital flows, and possible alternatives to countries’ accumulation of reserves as self-insurance against future crises.

The conference will bring together a group of high-level participants, including central bank governors, other senior policymakers, leading academics, and commentators.

The key objective of the conference is to examine weaknesses in the current international monetary system, and identify reforms that might be desirable over the medium to long run to build a more robust and stable world economy.

The event will be concluded with a joint press conference by SNB Governor Philipp Hildebrand and IMF Managing Director Dominique Strauss-Kahn.

Index of Six Core Industries (Base: 1993-94=100) – March 2010
  

The Index of Six core industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) with base 1993-94 stood at 257.4 (provisional) in March 2010 and registered a growth of 7.2% (provisional) compared to 3.3% registered in March 2009. During April-March 2009-10, six core industries registered a growth of 5.5% (provisional) as against 3% during the corresponding period of the previous year.

Crude Oil

Crude Oil production (weight of 4.17% in the IIP) registered a growth of 3.5% (provisional) in March 2010 compared to a growth rate of (-) 2.3% in March 2009. The Crude Oil production registered a growth of 0.5% (provisional) during April-March 2009-10 compared to (-) 1.8% during the same period of 2008-09.

Petroleum Refinery Products

Petroleum refinery production (weight of 2.00% in the IIP) registered a growth of (-) 0.4% (provisional) in March 2010 compared to growth of 3.3% in March 2009. The Petroleum refinery production registered a growth of (-) 0.4% (provisional) during April-March 2009-10 compared to 3.0% during the same period of 2008-09.

Coal

Coal production (weight of 3.2% in the IIP) registered a growth of 7.8% (provisional) in March 2010 compared to growth rate of 5.3% in March 2009. Coal production grew by 7.9% (provisional) during April-March 2009-10 compared to an increase of 8.0% during the same period of 2008-09.

Electricity

Electricity generation (weight of 10.17% in the IIP) registered a growth of 7.8% (provisional) in March 2010 compared to a growth rate of 6.3% in March 2009. Electricity generation grew by 6.5% (provisional) during April-March 2009-10 compared to 2.7% during the same period of 2008-09.

Cement

Cement production (weight of 1.99% in the IIP) registered a growth of 7.8% (provisional) in March 2010 compared to 10.1% in March 2009. Cement Production grew by 10.5% (provisional) during April-March 2009-10 compared to an increase of 7.2% during the same period of 2008-09.

Finished (carbon) steel

Finished (carbon) Steel production (weight of 5.13% in the IIP) registered a growth of 9.2% (provisional) in March 2010 compared to (-) 1.8% (estimated) in March 2009. Finished (carbon) Steel production grew by 4.9% (provisional) during April-March 2009-10 compared to an increase of 1.6% during the same period of 2008-09.

N.B: Data are provisional. Revision has been made based on revised data obtained.

Promotion of Organic Farming

  
The Government is implementing a National Project on Organic Farming (NPOF) for production, promotion and market development of organic farming in the country. Government is also implementing National Horticulture Mission (NHM) under which promotion of organic farming has been included as one of the components.

The farmers engaged in organic farming are provided assistance under the following schemes:-

(i) Under the National Project on Organic Farming, farmers engaged in organic farming are benefited through training, demonstration and awareness programmes. To increase availability of organic manure, financial assistance up to 25% of project cost up to a maximum of Rs.1.50 lakh per unit is provided as credit linked back ended subsidy for establishment of vermiculture hatcheries.

(ii) Under National Horticulture Mission, financial assistance @ Rs.10,000/- per hectare for a maximum area of 4 hectare per beneficiary for organic cultivation of horticultural crops is provided. Assistance is also provided for setting up of vermicompost units @50% of the cost subject to a maximum of Rs.30,000/- per beneficiary. Besides, assistance is provided for organic farming certification @ Rs.5.00 lakh for a group of farmers covering an area of 50 hectares.

(iii) Under Rashtriya Krishi Vikas Yojna (RKVY), financial assistance is available for organic and bio-fertilizers.

(iv) Under National Project on Management of Soil Health and Fertility, assistance is provided for promotion of organic manures @Rs.500/- per hectare.

This information was given by Prof. K.V. Thomas, Minister of State for Agriculture, Consumer Affairs, Food and Public Distribution in written reply to a question in the Lok Sabha today.

Impact of Recession On Msme
  
The global economic slowdown adversely affected the export market for Indian industry, including the micro, small and medium enterprises (MSMEs). In particular, sectors such as textiles, leather, gems and jewellery, auto components, etc., were mainly affected. Keeping in view the impact of global economic slowdown on MSMEs, the Government, the Reserve Bank of India (RBI) and the Public Sector Banks have taken several measures for protecting and providing a stimulus to the MSMEs which, inter alia, include: (i) extending the loan limit under Credit Guarantee Scheme from Rs.50 lakh to Rs.1 crore with a guarantee cover of 50 per cent; (ii) increasing the guarantee cover under Credit Guarantee Scheme from 80 per cent to 85 per cent for credit facility up to Rs.5 lakh; (iii) an advisory to Central Public Sector Enterprises to ensure prompt payment of bills of MSMEs; (iv) interest subvention of 2 per cent in pre and post-shipment export credit to small and medium enterprises (SME) sector; (v) refinance limit of Rs.7,000 crore to Small Industries Development Bank of India (SIDBI) for incremental on-lending to the micro and small enterprises (MSE) sector; (vi) grant of need-based ad hoc working capital demand loans up to 20 per cent of the existing fund-based limits; and (vii) reduction in interest rates for borrowing by micro enterprises by 1 per cent and in respect of SMEs by 0.5 per cent.

This information was given by the Minister of State (Independent Charge) for Micro, Small and Medium Enterprises (MSMEs) Shri Dinsha Patel in a written reply to a question in the Lok Sabha today.

How emissions-intensive are our industries?
Can India meet the emissions target set by government for 2020?

What are the implications for a climate constrained future?

CSE releases landmark study on how India will reduce emissions
to combat climate change

• Study on 6 sectors which together contribute over 60 per cent of carbon dioxide emissions

• Analysis of how these industrial sectors – power to aluminium – perform in terms of current emissions, their ranking in terms of global best industries and what is the technology pathway in future for these sectors

• Study finds Indian industry is capable of meeting emissions intensity reduction targets set by government till 2020, but after this technology options are limited and cutting emissions will mean high costs and difficult choices, which will impact growth

• Study has major implications for future climate negotiations. Shows that if India gives up its demand for an equitous agreement, it will not be able to afford the cost of transition to low carbon growth

New Delhi, April 27, 2010: In January this year, India had declared that it would voluntarily reduce emissions intensity of the GDP by 20-25 per cent by 2020 in comparison to the 2005 level. Will it be able to do so and what is the technology-emission reduction road map for India? A report by Centre for Science and Environment (CSE), which was released here today, finds while industry can meet the 2020 target under even business as usual scenario, its options beyond this are few, difficult and very expensive.

The study, using extensive data on each sector collected from the industries, concludes that most Indian industry is already efficient in terms of its use of energy and emissions. But in all these sectors, technology options for emission reduction stagnate after 2020. There is no way to reduce emissions without impacting growth once we cross the current emissions-efficiency technology threshold, says the study.

Says Sunita Narain, director, CSE: “This study must be understood in terms of its implications for global climate negotiations. India must continue to demand an equitous agreement, as the cost of transition to low carbon economies is high. The industrialized world must recognize its historical responsibility so that it can pay us to mitigate. Furthermore, it must recognize that in the current economic growth model, the options for drastic reductions are few. This is why the industrialized world has not been able to cut emissions meaningfully. India needs the ecological space to grow. Simultaneously, the world also needs to reinvent its growth model to be low-carbon. But all this must be understood in terms of cost to the economy.”

The report, titled Challenge of the New Balance, is the first study in India to look at options to reduce emissions, their feasibility and the costs involved, and understand the low-carbon roadmap and technology pathways for the future.

The CSE study

In 2009, CSE began analysing the six most emissions-intensive industrial sectors to find out how Indian industry performs – and will perform in future -- in terms of reduction in emissions. These sectors – power, steel, cement, aluminium, paper and pulp and fertilizers -- together accounted for over 60 per cent of India’s CO2 emissions in 2008-09.

Elaborating on the study and its objectives, Chandra Bhushan, associate director, CSE and the study’s author says: “There is a perception that India’s rising GHG emissions are due to an inefficient industry. The study tells us that it is not true. We have used data sourced from industry to see how the six sectors perform, what are the technology options to reduce energy and emissions, and the growth trajectories – we have found that many sectors are actually performing at global best levels.”

To do all this, the study examines the sectors under two scenarios -- Business as Usual (BAU), a scenario in which the industry will improve efficiency on its own due to the rising cost of energy, and Low Carbon (LC), in which the government is forced to take action to combat climate change.

How the sectors fare

The study unearths a mixed performance from the six sectors, with some performing at the global best level, some displaying immense potential, and yet others constrained by their unique characteristics.

For instance, while the power sector, the single largest contributor to CO2 emissions, has also the biggest potential for emissions reduction, the cement, aluminium and fertilizer sectors already feature among the global best. In the BAU scenario in the power sector, emissions intensity reduction is 18 per cent by 2030, largely because of improvements in coal-based power plants. In an LC scenario, emissions intensity can reduce by as much as 35 per cent by 2030 -- but this option is expensive as it means huge investments in new technologies and low-carbon fuels.

The CSE study says that India’s thermal power plants are more efficient than the global average. The country’s biggest power utility, NTPC, operates at 33 per cent efficiency, one of the highest in the world given the sub-critical technology and poor quality coal the company uses. The study also projects that just making more energy by saving and through increased efficiency the country could add as much as 20 per cent to India’s gross power generation by 2020.

The cement industry’s performance is credited to the use of modern technologies and blending materials (flyash and slag) for cement production. The sector, says the CSE study, can further lower its emissions intensity by increasing the proportion of blended cement in its total production – in a BAU scenario, the reduction can be by 25 per cent by 2030 while in an LC scenario, it could come down by 35 per cent.

The fertiliser sector, on its part, does not have technology options for reducing emissions and will have to rely on changing the feedstock – from naptha and fuel oil to natural gas. The industry can grow and still reduce its total CO2 emissions by 2 million tonne per annum in 2020 with respect to 2008-09 levels, simply by moving to natural gas. But the sector faces a critical shortage of natural gas.

In aluminium, 80 per cent of the sector is already using global best smelting technology. Technology options to reduce emissions are limited; companies will therefore have to improve the efficiency of on-site power generation system and move to renewables to go low carbon. Therefore, says the CSE study, the growth of this sector here means a four-fold increase in total emissions in the BAU scenario. In an LC scenario, emissions intensity reduces, but only if 30 per cent energy is sourced from renewables.

The paper and pulp industry performs poorly in terms of energy use, and its CO₂ emissions are high. The sector has begun changing its raw material from diverse wood and non-wood sources to wastepaper and market pulp. As a result, in a BAU scenario, emissions intensity reduces by 30 per cent by 2030. In an LC scenario, emissions intensity can reduce by as much as 40 per cent by 2030, but this will require retiring all old plants and investing in new energy-saving technologies.

“Steel will be the problem sector for India,” says Chandra Bhushan. “This sector will not be able to reduce emissions intensity significantly because of the technology choices it is making today – moving from blast furnace process route to sponge iron. Close to 60 per cent of India’s steel will be produced using sponge iron in which emissions efficiency gains are few.”

The study concludes that in the BAU scenario, industry, at its own cost, will reduce emissions by 20 per cent by 2030. This will help the world avoid 700 million tonne of CO2 emissions annually in 2030. In addition, between the BAU and the LC pathways, an additional 10 per cent emissions can be avoided – this, however, will require considerable expense.

Says Narain: “Under all circumstances today, the options for serious emissions reduction are limited in the industrial model we belong to or want to inherit. What our study shows is that the world – and India -- has to seriously rethink and rework its economic model for the future.”