Wednesday, August 31, 2011



The Case For Africa: Still Growing Despite Challenges to Global Markets

Equity markets around the globe have been challenged this month, with concern over the United States’ spending policies driving headlines, and worries over European debt markets sending markets lower worldwide. Notably, markets were shaken by continued trouble in Europe, as bad debts in the ‘PIGS’ (Portugal, Ireland, Greece, and Spain) are pointing to the necessity of future actions to stabilize the European monetary union. Africa’s markets have reacted negatively in tandem with a global fall in equities, as rising fear has led to a broad flight to safety worldwide.

In the short term, we believe that the situation in the Euro zone will need to be resolved in order to restore confidence to global markets. We expect that the Euro zone will take further steps towards this end in the very near term, and believe that concern will be mitigated by the end of 2011. This resolution could come in the form of a tight integration of fiscal and monetary initiatives among the EU; a breakup of the Euro, an increase in size in both the European Central Bank and European Financial Support Facility liquidity and guarantee programs; a restructuring of the debt of Greece, Italy, and Spain; or by any combination of the above. In most cases, the short term growth outlook for the EU region is poor.

However, the case for investing in Emerging Markets, most notably Africa, remains strong. First and foremost, the growth prospects for Emerging Markets are significantly higher than those of the Developed world. Emerging Market economies have for the most part less debt, young populations, and lower entitlement spending requirements than Europe and the United States, and valuations in their stock markets are more attractive. We believe that, over time, Developed Market investors will continue to increase their allocations to Emerging Markets. This process, which is likely to continue for decades, means that investors who put money into these markets now will be able to capitalize on growing interest in years to come.

On the other hand, a leveling off of commodity prices from a growth slowdown in Developed Markets will improve real consumer spending power, supporting consumption in most economies, especially within Emerging Markets. In fact, for a number of months we have believed that commodities were likely to be challenged in the short term as concerns over global growth rose. Notably, concern over inflationary pressure stemming from high oil and food prices has been suppressing returns in Emerging Markets year to date, as consumers have been forced to use more of their income to purchase basic commodities. Should that change, we would expect to see Emerging Market consumers increase their spending, which would be a positive sign for these markets. In addition, we have already seen Emerging Markets across the globe – including many of Africa’s nations - raise interest rates in order to curb inflationary pressure. However, we believe that the cycle of monetary tightening is coming to an end in the Emerging world, and that consumer spending will drive returns in the short term. To that end, we believe the opportunity for investing in consumer goods, which we feel will prove protective during increased market volatility, has become more compelling.

In the longer term, we continue to believe that growth in Developed Markets will remain anemic over the coming years, as high debt levels, unemployment, and entitlement spending will make it difficult for sustained growth to occur. On the other hand, Emerging Markets – most notably Africa – have demonstrated strong growth over the past few years, and are expected to continue their expansion over the coming decade. Thus, investors who are seeking opportunities for growth should continue to seriously consider allocating capital to the continent of Africa. We continue to see Africa as the best exposure to have among various investment options due to slowing growth in the US and other Developed Markets. We also view Africa as favorable relative to other EM economies that may be overly dependent on US or EU growth. We see the growth story in Africa as a secular trend, supported by increasing urbanization, rising real incomes, improved economic policies, and long needed large infrastructure investments. We believe that once these changes have been kicked off, the process will continue to build on itself to create long term growth. Although in the short term Africa’s markets have been challenged along with those of the rest of the globe, the long term investment opportunity makes this a compelling time to buy.


Molex Appoints Redington (India) Ltd as Distribution Partner in India

Molex Premise Networks (MPN), global manufacturer of Structured Cabling Systems and a division of Molex Inc.., announces the appointment of Redington (India) Limited as its distributor in India.  Redington will distribute the complete range of MPN product portfolio, including, PowerCat™   5e, 6 and 6A structured cabling systems as well as Optical Fibre and Canobeam® Free Space Optics & MIIM Intelligent cabling systems.

Deepak Jagtiani, Regional Sales Director, MPN, (India & ASEAN), said today that “this new partnership complements each other’s strength.  MPN is a leading manufacturer of structured cabling systems and this product suite expands the offering of Redington (India) Ltd, who are one of the leading distributors in India.”
Redington (India) Ltd is a leading technology distributor in India. Since 1993, Redington has connected technology solution providers with users by identifying markets and technologies that shape the IT industry. Today, Redington remains at the forefront of the technology marketplace, bringing the latest products and services to market and finding new ways to bring value to its customers. The company offers a broad array of solutions and services to thousands of partners by distributing and marketing IT products from nearly 75 world renowned brands.

Mr Neogi, President - IT of Redington (India) Ltd remarks that “Partnering with Molex Premise Networks is a strategic expansion in the Network infrastructure business for us. This product line would compliment very well with our other businesses, where the value division has leadership position with world class vendors in the market.  We look forward to a mutually rewarding partnership with Molex.”



About Molex:
Molex Incorporated is the world’s second largest manufacturer of electronic, electrical and fibre optic interconnection products and systems, switches and application tooling. Based in Lisle, Illinois, USA, the company has over 70 years experience and operates 54 manufacturing facilities in 19 countries.

For over 30 years Molex has manufactured comprehensive UTP, FTP and Optical Fibre cabling products suitable for the transmission of voice, data and video imaging signals. As one of the original pioneers of structured cabling we have provided state-of-the-art communication solutions to some of the biggest organisations in the world.


Molex Launches new PowerCat 6A Side Entry Jacks
 
08/08/2011 Molex Premise Networks, global manufacturer of Advanced Physical Layer Lifecycle Management solutions, announces the release of PowerCat 6A side entry shielded jacks.

This new side entry jack is ideal for use in work area outlet applications with limited back box space and trunking applications. The jack also incorporates time saving installation features such as a spring-loaded cable clamp feature and will be compatible with the Molex 4-pair termination tool and standard termination tool. The PowerCat 6A jack is specifically designed for high speed 10 Gigabit Ethernet applications, with typical applications including data centres, storage area networks, server farms, riser backbones, and beyond.

The PowerCat 6A end-to-end solution consists of Category 6A shielded patch panels, both straight and angled, cable, patch cords and the both the new die-cast Datagate™ side entry and regular shielded 6A jack. The PowerCat 6A solution is the ideal enterprise structured cabling choice for business enterprises looking to secure network performance for the future.


About Molex:
Molex Incorporated is the world’s second largest manufacturer of electronic, electrical and fibre optic interconnection products and systems, switches and application tooling. Based in Lisle, Illinois, USA, the company has over 70 years experience and operates 54 manufacturing facilities in 19 countries.

For over 30 years Molex has manufactured comprehensive UTP, FTP and Optical Fibre cabling products suitable for the transmission of voice, data and video imaging signals. As one of the original pioneers of structured cabling we have provided state-of-the-art communication solutions to some of the biggest organisations in the world.



Environmental Clearance for Coal Mining Projects of Coal India Ltd 

A total of 13 coal mining projects of Coal India Ltd. are Pending for approval with the Ministry of Environment and Forests. This include 6 new projects and 6 projects for expansion, They are awaiting environmental clearance for varying durations, under the Environmental Impact Assessment (EIA) Notification 2006. These projects have not been accorded environmental clearance as on date due to non-submission of complete information in their Environmental Impact Assessment (EIA) - Environmental Management Plan (EMP) Reports, inadequate information on critical environmental parameters, non-compliance of the procedures of the Environmental Impact Assessment (EIA) Notification 2006 and Circulars of the Ministry, etc by Coal India companies.

The EIA Notification 2006 provides for a time limit of 105 days for taking a decision after receipt of complete information from the project proponents.

This information was given by the Minister of State for Environment and Forests (independent charge) Shrimati Jayanthi Natarajan in a written reply to a question by Miss Anusuiya Uikey in Rajya Sabha today.

Disinvestment of 5% paid up equity of Bharat Heavy Electrical Ltd.

The Cabinet Committee on Economic Affairs today approved disinvestment of 5% paid up equity of Bharat Heavy Electricals Limited (BHEL), a Central Public Sector Enterprise (CPSE), engaged in execution of heavy engineering / electrical equipment manufacturing projects.

This is in line with the Government of India`s policy of enhancing people`s ownership in the CPSEs and enabling them to share in the growth and prosperity of these CPSEs. The Government will disinvest 5% equity in the company, out of its share holding of 67.72% through book building process in the domestic market.

The paid up equity capital of the company is Rs.489.52 crore. BHEL is a listed Central Public Sector Enterprise. The Government has decided to allow 5% price discount to the retail investors as well to encourage greater public ownership of the public sector companies. Ten percent of the shares to be offered for sale through further public offer shall be reserved for the employees of the Company. Government has also decided to allow 5% price discount to the employees of the company. After this disinvestment Government of India shareholding in the company would come down to 62.72%.

SMI Amtek decided to Install Second Forging Press Line

- Expansion of Forged Crankshaft Business in India -
SMI Amtek Crankshaft Pvt. Ltd, a joint-venture company owned by Sumitomo Metal Industries, Ltd. (Sumitomo Metals), Sumitomo Corporation, and Amtek Auto Limited (Amtek), has decided to install a second forging press line in order to respond to rapidly growing demand for crankshafts in India. This expansion will increase annual production capacity from 800,000 to 2.2 million units. Investment will amount to 1 billion rupees (approximately 1.9 billion yen at a rate of 1 rupee/1.9 yen), and the line is scheduled to start operation in November 2012.

The Sumitomo Metals aims to raise the global share to over 10% by the forged crankshaft business and will satisfy customers through our four-bases supply and sales structure, which comprises Japan, the United States, China and India.

1. Background

In India, where the automobile industry is growing rapidly, Sumitomo Metals, Sumitomo Corporation, and Amtek started up a 4,000-ton press line in April 2010. The current No. 1 forging line will reach full production capacity in the second half of 2012. As demands from customers have substantially exceeded the production capacity of the No. 1 forging line, the joint-venture company has decided to install a second forging line to meet rising demand.

The No. 2 forging line that is scheduled to be installed will introduce Sumitomo Metals' latest crankshaft forging technologies such as high speed and automation. As a result of this investment, the worldwide forged crankshaft supply capacity of the Sumitomo Metals will increase from 9.3 million to 10.7 million units. Sumitomo Metals aims to achieve over 10% global share of the forged crankshaft sector by performing its unique, competitive monozukuri (manufacturing based on highly skilled craftsmanship) from the perspectives of quality and productivity.

2. Investment details

(1) Equipment:                    5,000-ton high speed forging press line 
(2) Investment amount: :     1 billion rupees (approximately 1.9 billion yen)
(3) Production capacity:        Approximately 1.4 million units per year
(4) Start of operation:          November 2012 (plan)

1. Sumitomo Metals’ forged crankshaft production structure

(1) Japan - Railway, Automotive & Machinery Parts Company (Osaka Prefecture)
           Application:                  Mainly for passenger cars, trucks, and construction
                                             machinery
           Production capacity:      Approximately 4 million units per year
(2) U.S.A. - International Crankshaft Inc. (Kentucky State)
           Application:                  Mainly for passenger cars and small trucks
           Production capacity:      Approximately 2.7 million units per year
(3) China – Huizhou Sumikin Forging Co., Ltd. (Guangdong Province)
           Application:                  Mainly for passenger cars and small trucks
           Production capacity:      Approximately 1.8 million units per year
(4) India - SMI Amtek Crankshaft Pvt. Ltd
           Application:                  Mainly for passenger cars and small trucks
           Production capacity:      Approximately 0.8 million units per year (plan to increase to
                                             2.2 million units from 2012)

Economics is Always the First Casualty of Politics


Both the debt negotiations in Congress as well as the debt downgrade of the US by Standard & Poor represent, once again, the Barbier dictum: Economics is always the first casualty of politics.
 
The Obama Administration made a fundamental mistake earlier this year in not endorsing the Bowles-Simpson plan on deficit reduction that called for a combination of revenue increases, spending cuts and entitlement and tax reforms as the basis of a plan for deficit reduction over the medium term, while at the same time arguing that there is the need for continued government spending on selected infrastructure and investment opportunities in the short term while continue to be in recession. From the beginning of the 2008-9 recession, such short-term government spending needed to be supported by a number of economic incentives and policies to stimulate private sector investment, too. However, as long as the US economy remains in a recession with lack of consumer or private investment spending, public sector spending in the short term is necessary. But by adopting the Bowles-Simpson plan immediately, the Obama Administration would have signaled to the markets and the rating agencies that tackling US deficits and debt in the medium and long term, once economic recovery had started in earnest, would be the main priority.
 
Instead, the last weeks have demonstrated that sound economic policy has been hijacked by an ideological political debate that has focused purely on cutting spending and not managing either the recession or medium-term budget deficits. Clearly, the Republican Party has been irresponsible in promoting this ideological political stance, and as a consequence, has brought the US economy to the brink. Although one can agree with US Treasury Secretary Geithner that Standard & Poor is making its US debt downgrade decision based on political considerations, the wakeup call to US policymakers should not be ignored: stop playing politics with the US and world economy. This is a message that the Republican leadership in Congress must especially heed.
 
Meanwhile, economic policy needs to focus more securely on the short-term problem of jobs, economic growth and investment. In his speech on August 8, President Obama suggested that extending unemployment insurance and the reduction in payroll taxes as the means to this end. Unfortunately, this is not enough, especially for instigating a sustainable global economic recovery, much less one in the US.
 
At the beginning of the 2008-9 recession, at the request of the UN Environment Programme, I put together a global strategy for instigating a worldwide "green" recovery, called a Global Green New Deal (See A Global Green New Deal: Rethinking the Economic Recovery). I argued that, although the over $500 billion devoted by the Group of 20 (G20) largest and richest countries to clean energy and other green expenditures or tax breaks was a good start, it was not sufficient to launch a sustained green recovery. Instead, implementing further green measures will require G20 economies to commit to increased public investments, new pricing policies, improving regulations, more aid disbursements and other policy changes. But the positive multiplier effects of any additional short-term green stimulus and policies in support of an economic recovery will be counter-productive if they lead to unstably large fiscal and trade deficits, long-run real interest rate rises and inflation. There is also concern that green stimulus programs that emphasis short-term employment and environmental effects may be less effective in creating jobs and growth in the longer term.
 
A new policy strategy to enhance a global green recovery is therefore needed urgently. The new strategy requires two essential elements.
 
First, there needs to be coordinated global response led by the G20 to support the main objectives of the Global Green New Deal. It recommends an expenditure of 1% global GDP over a period of years on green initiatives. G20 countries should prioritize energy efficiency and clean energy investments, and developing countries should aim to improve agricultural productivity, freshwater management and sanitation. Such investments should be accompanied by a swath of domestic and international policies - from removing perverse agricultural, fishing and energy subsidies to taxing or trading carbon emissions, instigating tax credits for low-pollution cars and other clean-energy innovations, financing the transfer of green technologies to developing countries and creating a global carbon market through climate change negotiations.
 
Second, the G20 also needs to target and coordinate assistance to developing economies in science, technology and innovation (STI) for clean energy and energy efficiency. Such assistance is necessary to overcome the technical and market behavior that low and middle income countries face as obstacles to clean energy investment. Most developing economies lack even the minimum research and development (R&D) capacity and skilled workforce capable of attracting the transfer of many energy efficiency and low-carbon innovations. Reform and expansion of the Clean Development Mechanism (CDM) would be one important means of facilitating STI in clear energy for low and middle income countries.
 
At a time when political systems in the US and worldwide are increasingly dysfunctional, it is even more important to demonstrate a clear vision of how to steer the world economy out of this mess, rather than allow politics to continue to dominate sound economic thinking.
 
By Edward B. Barbier, author of Scarcity & Frontiers (Cambridge University Press) and Capitalizing on Nature (November 2011, Cambridge University Press). He is the John S. Bugas Professor of Economics at the University of Wyoming 


Schwab Foundation Announces US Social Entrepreneurs Of The Year 2011


Geneva, Switzerland, 30 August 2011 – Three social entrepreneurs have been recognized as US Social Entrepreneurs of the Year by the Schwab Foundation for Social Entrepreneurship for their organization’s innovative work and social impact, joining a global network of leading social entrepreneurs from over 40 countries.
“These award-winning organizations based in the US have a truly global impact,” said Hilde Schwab, Chairperson and Co-Founder, Schwab Foundation for Social Entrepreneurship, Switzerland. “From mobilizing low-income neighbourhoods around safe play environments and empowering homeowners in the horrible aftermath of an earthquake to protecting many of the world’s most vulnerable workers, these social enterprises are achieving transformative results.”
Hilde Schwab will confer the awards at the World Economic Forum’s Annual Meeting of the New Champions in Dalian, People’s Republic of China, from 14-16 September 2011. Nearly 50 members of the Schwab Foundation network will be present during the award ceremony.
“Despite working in very different sectors, these organizations share one thing in common,” added Mirjam Schoning, Senior Director, Head of Schwab Foundation for Social Entrepreneurship. “They have developed strategic partnerships with the private and public sector to solve social problems. By developing innovative models that combine the strengths of government, business and civil society, they are able to accelerate their social impact, delivering better results for more people as cost-effectively as possible.”
The Schwab Foundation for Social Entrepreneurship is proud to award the US Social Entrepreneurs of the Year 2011 to: 
Darell HammondDarell Hammond, KaBOOM! (USA and Mexico)
Children today have fewer places to play and spend less time playing outdoors than any previous generation, facts that are having disastrous consequences on their health, achievement levels and overall well-being. To fight this play deficit, social entrepreneur and best-selling author Darell Hammond founded non-profit KaBOOM! 15 years ago in Washington, DC with a vision of creating a great place to play within walking distance of every child in America. Since then, KaBOOM! has mapped over 85,000 places to play, built more than 2,000 playgrounds in lower-income communities, and successfully advocated for play policies in hundreds of cities and states across the country. KaBOOM! also provides communities with online, do-it-yourself tools to organize and take action in support of play on both a local and national level.
Elizabeth HauslerElizabeth Hausler, BuildChange (China, Indonesia, Haiti)
BuildChange is changing practices of home building in earthquake-prone regions to engage citizens and set in place new and lasting practices to ensure that earthquake-resistant construction becomes common. In China, where BuildChange has been active since the 2008 Sichuan earthquake, the organization is influencing the adoption of improved building codes – and simple tools for its enforcement – by municipal governments across the country. The organization is also working on more efficient ways of generating and collating data, such as putting building codes, checklists and home designs on mobile devices, which in turn makes it more difficult for corrupt contractors to operate. BuildChange is creating hybrid value chain partnerships with the private sector to disseminate public awareness messages on safe building techniques placed on cement bags and posted at retail outlets.
Dan ViedermanDan Viederman, Verité (Latin America, Southeast Asia, China)
Verité's mission is to ensure that people around the world work under safe, fair, and legal conditions. Today's complex supply chains pose challenges for implementing international labour standards at manufacturing and farm sites that collectively employ hundreds of millions of people. Verité works with consumer companies and their suppliers, which are mostly farms and factories in developing countries. The organization assists in the identification, analysis and resolution of labour rights problems, including child labour, forced labour, discrimination, sexual harassment, excessive working hours, poor safety conditions and wrongful termination. Verité also helps corporations embed sustainable social responsibility standards into their business operations, improving conditions for millions of vulnerable workers worldwide.
About the Schwab Foundation
The Schwab Foundation for Social Entrepreneurship was co-founded by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, and his wife, Hilde. Since its inception in 2000, the Foundation has been identifying the world’s leading social entrepreneurs in over 50 countries around the globe. Social entrepreneurs implement innovative and pragmatic solutions to social problems by tackling the root causes and creating social transformation. Selected social entrepreneurs of the Schwab Foundation network participate in World Economic Forum events, thus providing unique opportunities for them to connect with business, political and media leaders. 

Tuesday, August 30, 2011


MOTOREXCHANGE RECEIVES SERIES C FUNDING FROM TIGER GLOBAL AND CANAAN PARTNERS

INDIA, Mumbai, August 30, 2011: MotorExchange, India's leading used vehicle online marketplace, closed its $13million Series C funding, led by Tiger Global Management, with participation from existing investor Canaan Partners.

MotorExchange had previously raised Series A round of funding in December 2009 from Canaan Partners and other investors including Austin Ligon, Founder CEO of CarMax USA and a Series B round in December 2010 from Canaan Partners again and Epiphany Ventures.

While commenting on the deal, Lee Fixel, Managing Director, Tiger Global Management said "We have been impressed with the traction achieved by Vinay and his team. MotorExchange presents a unique opportunity to improve transparency, convenience, and choice to new and used car customers throughout India.”
This was further backed by Alok Mittal, Managing Director, Canaan India, who have invested in MotorExchange for the third time, said “We are excited to have Tiger Global partner with us in MotorExchange. MotorExchange represents a powerful platform that aims to reduce friction in used vehicles marketplace, both for consumers and businesses”

MotorExchange, launched in December of 2009, is an online platform for transacting used vehicles. It enables businesses (financial institutions and fleet owners) and consumers to sell their pre-owned vehicles. It provides Sellers the most efficient price, defined timelines and complete transparency. Buyers on the platform are used auto dealers (including dealers of cars, trucks and two wheelers) who gain access to a large pool of vehicles. It is a unique combination of B2B and C2B business models. The company also owns CarTradeIndia.com, a leading auto classifieds site.

MotorExchange is promoted by former Mahindra First Choice CEO Vinay Sanghi. Rajan Mehra, ex-eBay India head is also a founder-director. The company boasts a stellar Management team with extensive auto and internet experience.

Vinay Sanghi, CEO and Director, MotorExchange, said “We’re looking forward to working with Tiger Global and are confident in the value that they bring to the table. We are also delighted that Canaan Partners has participated once again in this round of investment. This latest investment will enable us to expand our Consumer businesses. Our goal will be to establish a platform which will bring scale, transparency and convenience to the used vehicle industry”

About MotorExchange

MotorExchange is India's largest used vehicle online marketplace providing sellers and buyers a structured platform for transacting used vehicles. It brings together qualified sellers and buyers of used vehicles. Sellers include banks, insurance and leasing companies, corporate, automotive dealerships and consumers. Buyers are used vehicles dealers located throughout India. This is enabled by an accurate certification process and world class technology. The marketplace provides customers with speed, transparency, convenience and scale. The Company also owns CarTradeIndia.com, one of India’s leading auto classifieds and content websites.

MotorExchange is promoted by Vinay Sanghi, the former CEO of Mahindra First Choice. Rajan Mehra, Managing Director at Nirvana Venture Advisors and former country head of eBay India is a founder-director in the company. 

About Tiger Global

Tiger Global Management, LLC is an investment firm that deploys capital globally through its private investment funds and hedge fund vehicles. The Firm’s private investment funds invest opportunistically in growth-oriented private companies around the world with a particular focus on the Internet and technology sectors. The firm’s fundamentally-oriented hedge funds invest primarily in public equities with an emphasis on the global technology, telecom, media and consumer sectors. Tiger Global Management, LLC was founded in 2001 and is based in New York with an affiliate office in Beijing, China.

About Canaan Partners

Canaan Partners is a global venture capital firm that invests in people to turn visionary ideas into valuable and significant technology & healthcare companies. For over 20 years, we have backed entrepreneurs by giving them the transformational opportunities, luminary insights and operational guidance it requires to build high-performance companies.

In India, Canaan Partners’ focus areas include consumer internet, mobile VAS and enterprise & managed services. Canaan’s investments in India include MotorExchange.com, a used car exchange model, mCarbon, a hotbed for VAS innovation, Chakpak.com from the online entertainment space, UnitedLex from the LPO space, iYogi - a direct-to-consumer and small business remote tech support provider, BharatMatrimony.com - India’s most trusted matrimonial portal and Cellcast Asia Holdings from the mobile VAS space.

Globally, Canaan Partners has been the early investor in some of the world’s leading technology companies, including Acme Packet, CommerceOne, DoubleClick and Match.com as well as healthcare giants Cerexa, Dexcom, Northstar Neuroscience and Peninsula Pharmaceuticals.


Index of Eight Core Industries (Base: 2004-05=100) July 2011

The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) with base 2004-05 stood at 143.22 in July 2011 and registered a growth of 7.8% compared to 5.7% registered in July 2010. During April-July 2011-12, eight core industries registered a growth of 5.8% as against 6.5% during the corresponding period of the previous year 2010-11.

Coal

Coal production (weight of 4.38% in the IIP) registered a growth of 2.4% in July 2011 compared to growth of 4.5% in July 2010. Coal production grew by 0.7% during April-July 2011-12 compared to an increase of 0.6% during the same period of 2010-11.

Crude Oil

Crude Oil production (weight of 5.22% in the IIP) registered a growth of 1.4 % in July 2011 compared to a growth of 15.8% in July 2010. The Crude Oil production registered a growth of 7.3% during April-July 2011-12 compared to 8.4% during the same period of 2010-11.

Natural Gas

Natural Gas production (weight of 1.71% in the IIP) registered a growth of (-) 8.2% in July 2011 compared to growth of 20.0% in July 2010. The Natural Gas production registered a growth of (-) 9.7% during April-July 2011-12 compared to 32.3% during the same period of 2010-11.

Petroleum Refinery Products

Petroleum refinery production (weight of 5.94% in the IIP) registered a growth of 3.9% in July 2011 compared to growth of 13.7% in July 2010. The Petroleum refinery production registered a growth of 4.9% during April-July 2011-12 compared to 7.3% during the same period of 2010-11.

Fertilizers

Fertilizer production (weight of 1.25% in the IIP) registered a growth of (-) 1.6% in July 2011 compared to (-) 0.3% in July 2010.Fertilizer production grew by 0.4% during April-July 2011-12 compared to an increase of (-) 2.0% during the same period of 2010-11.

Steel (Alloy + Non-Alloy)

Steel production (weight of 6.68% in the IIP) registered a growth of 15.5% in July 2011 compared to (-) 2.9% in July 2010. Steel production grew by 10.1% during April-July 2011-12 compared to an increase of 5.5% during the same period of 2010-11.

Cement

Cement production (weight of 2.41% in the IIP) registered a growth of 10.6% in July 2011 compared to (-) 0.2% in July 2010. Cement Production grew by 1.8% during April-July 2011-12 compared to an increase of 5.3% during the same period of 2010-11.

Electricity

Electricity generation (weight of 10.32% in the IIP) registered a growth of 13.0% in July 2011 compared to a growth of 4.2% in July 2010. Electricity generation grew by 9.4% during April-July 2011-12 compared to 5.3% during the same period of 2010-11.

Expenditure on Urban Infrastructure

The Minister of State for Urban Development, Shri Saugata Roy informed the Lok Sabha today that In order to provide reforms-linked Central Assistance for development of urban infrastructure, the 7 year Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched on 3rd Dec., 2005. Under the Urban Infrastructure and Governance (UIG) component of the Mission, Additional Central Assistance is provided inter-alia for capital expenditure for building urban infrastructure in 65 identified Mission cities, and under a similar subcomponent of Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), similar ACA is provided inter alia for capital expenditure for building urban infrastructure in all other towns and cities. The Mission objective is integrated development of infrastructural services in the cities and towns, securing effective linkages between asset creation and asset management so that the infrastructural services created in the cities are not only maintained efficiently but also become self-sustaining over time. For assistance under the Mission, the State Governments are required to prepare detailed project reports and commitment to meet their share/Urban Local Body share of the capital expenditure.

Other than JNNURM, there are schemes like 10% lumpsum assistance in the north-eastern states, North Eastern Region Urban Development Programme (NERUDP), Urban Infrastructure Development Scheme in Satellite Towns (UIDSST) around seven mega cities, which are also schemes that facilitate increase in capital expenditure on urban infrastructure like drinking water supply, sewerage and solid waste management.

He further informed that delivery of urban services take place at the State/Urban Local Body level and levy of user charges is also in the competence and the domain of the State/Urban Local Bodies.

Prohibition on Mining in CRZ area

Mining of limestone and other similar minerals is prohibited in Coastal Regulation Zone (CRZ) area. The Coastal Regulation Zone (CRZ) Notification, 1991 and the recently issued CRZ Notification, 2011, prohibits the mining of sand, rocks and other substrata material including limestone except rare minerals like, monazite, rutile etc., and exploitation of oil and natural gas. All activities which are permissible under these Notifications are required to obtain clearance under these Notifications. Mining of the sand, rocks and other substrata material is expected to cause damage to the Coastal environment including the Sea water intrusion.

The CRZ Notification indicated in parts (a) & (b) above are uniformly applicable in CRZ areas including elevated coastal areas.

The CRZ Notification 2011 supersedes the CRZ Notification, 1991. While finalizing the CRZ Notification, 2011, the inputs from various Stakeholders including the State Governments were examined for suitable incorporation.

This information was given by the Minister of State for Environment and Forests (independent charge) Shrimati Jayanthi Natarajan in a written reply to a question by Shri Kanjibhai Patel in Rajya Sabha today.

Impact of Climate Change on Agriculture and Livelihood

A Report on “Climate Change and India: A 4x4 Assessment a Sectoral and Regional Analysis for 2030s” has been published in November, 2010. However, the report has not been submitted to United Nations Climate Panel. The Report has projected the likely impact of climate change on temperature, precipitation, extreme events, sea-level rise, agriculture, eco-system and bio-diversity, water and human health in four regions, namely Western Ghats, Himalayan region, North-Eastern region and Coastal region. The assessment brings out vulnerability of these regions to the adverse impact of climate change. The Report does not have any specific recommendations. However, the information generated in the report and assessments made therein are utilized by appropriate agencies of the government including the nodal ministries for effective implementation of activities under National Action Plan on Climate Change.

Government is aware of various challenges posed due to climate change and has come up with National Action Plan on Climate Change (NAPCC) which outlines steps to enable the country to adapt to climate change and enhance the ecological sustainability of our development path. Eight Missions in specific areas of Solar Energy, Enhanced Energy Efficiency, Sustainable Habitat, Water, Sustaining the Himalayan Eco-system, Green India, Sustainable Agriculture and Strategic knowledge for Climate Change are being implemented by the nodal ministries to address vulnerability to climate change and enhance capacity at the Central and State level to respond to climate change.

This information was given by the Minister of State for Environment and Forests (independent charge) Shrimati Jayanthi Natarajan in a written reply to a question by Shrimati Shobhana Bhartia in Rajya Sabha today.

Peabody Energy, ArcelorMittal and Macarthur Board agree to terms for recommended takeover of Macarthur Coal

St. Louis, Luxembourg, August 30 (07:00 CET) - Peabody Energy (NYSE: BTU) and ArcelorMittal (NYSE: MT) today announced that PEAMCoal has agreed to terms with the Macarthur board for a cash takeover of all outstanding shares of Macarthur Coal for A$16.00 [1] per share, valuing the equity in Macarthur at approximately A$4.8 billion. All participating members of the Macarthur Board recommend that Macarthur shareholders accept the new PEAMCoal offer.
"This is a major step forward in our acquisition process," said Peabody Energy Chairman and Chief Executive Officer Gregory H. Boyce. "We are pleased to have Macarthur, Peabody and ArcelorMittal moving forward together to urge shareholders to accept this attractive premium. We now look forward to completing this transaction in a timely manner."
Aditya Mittal, CFO and Member of the Group Management Board at ArcelorMittal, said, "Our offer is the only offer before Macarthur shareholders, and we urge them to accept without delay and receive a substantial premium for their investment."
PEAMCoal and Macarthur have entered into an implementation deed, which is attached to this announcement. The improved offer is subject to limited conditions as set out in section 11.7 of PEAMCoal's replacement bidder's statement dated 15 August 2011, including minimum 50.01% acceptances and final regulatory clearance or expiry of the relevant waiting period.
The price to be received by Macarthur shareholders of A$16.00 per share represents a substantial premium of:

  • 44% to A$11.08 per share, the closing price on July 11, the day Peabody and ArcelorMittal's initial approach was disclosed to the market;
  • 48% to A$10.82 per share, the one-month volume-weighted average price (VWAP) to July 11;
  • 41% to A$11.32 per share, the three-month VWAP to July 11; and
  • 33% to A$12.02 per share, the twelve-month VWAP to July 11.
   
 
About Macarthur Coal
 
Macarthur Coal is a leading producer of low-volatile PCI metallurgical coal with production and development assets in the Bowen Basin , Australia , including the Coppabella and Moorvale Joint Venture, Middlemount and Codrilla. It holds total coal reserves of 270 million tonnes and total resources of approximately 2.3 billion tonnes.

About Peabody Energy
 
Peabody Energy is the world's largest private-sector coal company and a global leader in clean coal solutions. With 2010 sales of 246 million tons and nearly $7 billion in revenues, Peabody Energy fuels 10% of U.S. power and 2% of worldwide electricity.
  
About ArcelorMittal
 
ArcelorMittal is the world's leading integrated steel and mining company, with operations in more than 60 countries. In 2010, ArcelorMittal had revenues of US$78 billion and crude steel production of 90.6 million tonnes, representing approximately 8% of world steel output. ArcelorMittal's mining operations produced 47 million tonnes of iron ore and 7 million tonnes of metallurgical coal as well in 2010.

Ozone Layer Hole 

Based on scientific findings on the cause of ozone layer depletion, international community has catalysed global action to protect the ozone layer resulting in the adoption of the Vienna Convention in 1985 and Montreal Protocol in 1987. India became the party to the Vienna Convention on 19th June, 1991 and to the Montreal Protocol on 17th September 1992 and ratified all its amendments.

As per the scientific studies, it is expected that the ozone layer will be fully recovered to the pre-1980 level by 2050. Although, the production and consumption of major Ozone Depleting Substances (ODSs) responsible for depletion of ozone layer have already been phased-out, still some of these chemicals which were released globally earlier are still active in the stratosphere because of their long atmospheric life, thus this necessitates some time for complete recovery of the ozone layer. The size of Antarctic ozone layer hole measured in October 2010 was 22.2 million square kilometer, while the size reported in 2009 and 2008 were 24 million square kilometer and 27 million square kilometer respectively. This clearly indicates that the global efforts made including by India through the Montreal Protocol for the protection of the ozone layer are in the right direction and the Ozone Layer is on the path of recovery.

A number of research institutions and individual scientists both from within the country and non-resident Indian scientists have made contributions towards the phase out ODSs and recovery of Ozone layer. Indian industry has played a key role in phasing-out the production and consumption of major ODSs like Chloroflurocarbons (CFCs), Carbontetrachloride (CTC) and Halons with effect from 1.1.2010.

A number of steps have been taken including the fiscal and regulatory measures for implementation of the Montreal Protocol for the phase out of ODSs in the country. The technical and financial support for ODS phase-out activities to the Industry are directly provided by the Montreal Protocol.

The next task ahead is the phase-out of production and consumption of next category of chemicals known as Hydrochlorofluorocarbons (HCFCs) with an accelerated phase-out schedule adopted by the Montreal Protocol.

This information was given by the Minister of State for Environment and Forests (independent charge) Shrimati Jayanthi Natarajan in a written reply to a question by Shri Badri Ram Jakhar in Lok Sabha today.