Saturday, October 31, 2009

SAIL Q2 PAT of Rs. 1663 crore betters Q1 by 25%, lower by 17% YoY


l        Q2 turnover at Rs. 10730 crore 10% higher than Q1, lower by 21% YoY

l        Record Q2 sales of over 3 million tonnes; 14% growth

l        Value-added steel production up 15% in Q2, 18% in H1

l        Best-ever Q2 techno-economics

l        Record Q2 capex of Rs. 2450 crore, more than double of CPLY


New Delhi:  The unaudited financial results of Steel Authority of India Limited (SAIL) for July-September (Q2) of FY ’10, taken on record by the company’s Board of Directors here today, showed profit after tax (PAT) at Rs. 1,663 crore, an improvement of 25% in performance over the previous quarter, lower by 17.3% over the corresponding period last year (CPLY). 


Performance in Q2 improved over the previous quarter (Q1 FY ’10) with the help of several management initiatives contributing nearly Rs. 700 crore, resulting in best-ever Q2 sales and special steel production, substantial additional realisation from sales of secondary products and all-round cost efficiency.


The adverse impact due to lower price realisations in Q2 FY ’10 over CPLY was of the order of Rs. 3,000 crore. This could be partially offset through several internal actions which resulted in 14% increase in sales volume, 15% increase in value-added steel production, best-ever key techno-economic parameters, viz. coke rate, total energy consumption, blast furnace productivity, and prudential financial management. Together with this, substantial reduction in operating costs, repair and maintenance, stores & spares, administrative expenses, etc., resulted in overall savings of over Rs. 1,000 crore in Q2.     


The company’s capital expenditure of Rs. 2,450 crore in Q2 has been more than double of CPLY. During H1, it touched Rs. 4,920 crore – 2.5 times that of H1 FY ’09.  


SAIL’s Q2 turnover at Rs. 10,730 crore was 20.8% lower than CPLY mainly due to sharp drop in YoY steel prices.  Q2 profit before tax (PBT) of Rs. 2,519 crore and PAT of Rs. 1,663 crore were lower by 18% and 17% over CPLY respectively on account of factors such as lower realisations, escalation in input prices including rail freight, imposition of ad valorem royalty on minerals, fuel surcharge, etc., and higher interest charges.  H1 turnover at Rs. 20,481 crore and PBT at Rs. 4,529 crore were 20% and 22.7% lower than CPLY respectively.


During the quarter, SAIL’s net worth has risen by Rs. 1,825 crore to over Rs. 31,000 crore as on 30.9.09 – an increase of Rs. 3,151 crore over net worth as on 31.3.09.


With SAIL’s integrated steel plants producing over 1.2 million tonnes or 15% higher volumes of special/value-added steels over CPLY in Q2, production of these high value items crossed 2.3 million tonnes in H1, a growth of 18% over CPLY. SAIL’s captive power output went up by 10% during the quarter and 22% during H1.


With domestic sales growing 12.1% to touch the 3 million tonne mark in Q2, SAIL achieved 8% growth in H1 sales within the country at 5.6 million tonnes. Exports more than doubled in Q2, taking total SAIL shipments to over 0.16 million tonnes in H1. Substantial growth was recorded in sales of products such as HR coils/skelp (20%), wire rods (27%), structurals (19%), galvanised products (8%) and plates (7%).


Towards raw material security, significant progress has been made. For Rowghat mine at Chhattisgarh, after all statutory clearances, lease deed agreement has been signed on 21st October ’09, an issue which was pending for more than two decades. This will provide iron ore security to Bhilai Steel Plant for around the next 30 years.  Regarding Chiria/Gua mines, there has been a major positive development with the Jharkhand government conveying its ‘in-principle’ approval for renewal of the biggest of Chiria/Gua iron ore leases, viz. Budhaburu with a reserve of about 810 million tonnes of iron ore (area 823.8 hectares).  SAIL has further requested the Jharkhand government to renew additional leases of Chiria/Gua to meet the company’s iron ore requirements for its growth plan in the broader national interest. 


The company is also developing two new coking coal blocks at Sitanala and Tasra for its captive use.  Environment clearance for Tasra coking coal block of 4 million tonne per annum capacity has been received in October ’09 and the company is geared to start some mining operations in the next few months.


Commenting on the company’s performance, SAIL Chairman Mr. S.K. Roongta said: “While the overall demand growth for steel products in the country is encouraging, SAIL will continue its rigorous efforts in achieving higher all-round cost efficiencies, better techno-economic parameters, improved production/productivity and thrust on value-added products.”

Gujarat NRE Coke Ltd posts healthy Q2 results, expects a bright future ahead

Kolkata, 30th October 2009: The Board of Directors of Gujarat NRE Coke Ltd, the largest independent met coke producer in India, at the board meeting held yesterday evening approved the unaudited financial results of the company for the second quarter (Q2) ended 30th September 2009. The company’s operations show a healthy growth in its turnover and profits in the second quarter as compared to the first quarter in the current fiscal year.

The total income for the quarter ended 30th September 2009 stood at Rs 383.41 crore, registering a growth of around 24% over Rs 310.04 crore achieved during the quarter ended 30th June 2009. The profit before tax for the current quarter is Rs 27.90 crore as against that of Rs 5.54 crore in the previous quarter, reflecting a strong growth momentum in performance of the company. Similarly the company posted a net profit of Rs 20.21 crore, registering a whooping over 450% growth over previous quarter’s profit of Rs.3.64 crores.

Commenting on this impressive performance, Mr Arun Kumar Jagatramka, Chairman and Managing Director, Gujarat NRE Coke Ltd said, “Coke demand in India has been firming up from the start of this quarter and the market is buoyant at present. Though it may take time reach to the highs of 2008, but the future is bright for coke industry in India”. “With China for the first time becoming a net importer, this near famine of coke in China spells well for the met coke manufacturers in India, with expectations of more higher margins from operations in coming months”, said Mr Jagatramka. “The present market scenario does indicate that the future is very bright and we expect much higher growth in coming months. The order books indicate a strong demand of coke in India, and even demand in overseas market is also picking up.”

“A few milestones achieved in this quarter include, starting of production in our newly commissioned coke plant in Dharwad. Also in Australia, the commencement of longwall mining in NRE Wongawilli mine, and the start of production through longwall has been an excellent achievement. This would enable the mines to reach a capacity to deliver upto 2.00 million tones per annum. We are now poised to reap benefits of the future upturns in the market that is bound to come sooner than later”, added Mr Arun Kumar Jagatramka.


30 Oct 2009 

A seminar on Future National Security Challenges for India-Coping Strategies was organized by the Gandiv Division on behalf of South Western Command from 28 October to 30 October 2009 at the Kota University Auditorium.  The seminar, commenced with the opening remarks by Lieutenant General K Surendra Nath, VSM the General Officer Commanding Chetak Corps.


 The seminar addressed various facets of national security in a holistic manner and discussed aspects to include India and the Global Geo-Strategic Environment, New Wave of Terrorism, Non-Traditional Threats to India’s Security and Defence Planning and Security Reforms.  It provided an opportunity to service officers to share the views of luminaries on the subject and interact with them during the course of three sessions.  It also provided an interactive forum for better understanding of national security challenges in future, which would facilitate formulation of strategies to cope with future national security challenges, in what is increasingly being seen as a complex geo-political environment.


 The seminar brought together a rare and distinguished group of speakers who have all made a mark for themselves in their respective fields,  They included Admiral Arun  Prakash  (Retired), former Chief of Naval Staff and Chairman Chiefs of Staff Committee, Ambassador  Kanwal Sibal,  Lieutenant General Raman Puri (Retird),  Mr BG Verghese, Air Commodore Jasjit Singh (Retired) and many other renowned personalities, who are currently in the upper echelons of security related ‘think tanks’ in the country.


The seminar concluded with an address by Lieutenant General CKS Sabu, AVSM, VSM, General Officer Commanding-in-Chief, South Western Command, who highlighted the importance of such forums as an opportunity for widening horizons and sharing collective wisdom.  He spoke of the future challenges and the measures for addressing them.

China industrial profit down 9.1% in first nine months Thursday,October 29,2009 Posted: 05:00 BJT(2100 GMT)   From:xinhua    Article type:Redistributed
Industrial enterprises in China's 22 regions reported a combined profit of 1.55 trillion yuan (227.5 billion U.S. dollars) in first nine months, down 9.1 percent year on year, the National Bureau of Statistics (NBS) said Wednesday.

NBS statistics showed the decline was 4 percentage points less than that of January-August period.

Altogether 35 of the 39 major industrial sectors realized profit growth or smaller profit declines compared with the first eight months, said the NBS.

Core business revenues of those companies reached 28.8 trillion yuan in the first nine months, up 3.4 percent from a year earlier. The growth rate was 1.5 percentage points higher than that of the first eight months.

The accounts receivable of enterprises in the 22 regions stood at about 3.56 trillion yuan at the end of September, up 10.6 percent year on year.

The 22 regions comprise all of China's provinces, municipalities, and autonomous regions except Beijing, Chongqing, Inner Mongolia Autonomous Region, Hunan, Guangdong, Anhui, Hainan and Yunnan provinces, and Tibet Autonomous Region.


Bhushan Power&Steel in India continues to place its trust in drive technology and automation systems from Siemens

Siemens VAI Metals Technologies has received an order from Bhushan Power&Steel Co. to supply the drives and automation system for expansion of the company's compact hot rolling mill in Orrissa, India. The scope of supply also includes two reactive-power compensators for electric arc furnaces. Commissioning is scheduled for July 2010.

In Orrissa, a federal state of India, Bhushan Power&Steel has been operating a compact hot rolling mill with an annual capacity of 0.8 million metric tons since April 2008. The plant is being expanded in order to double its capacity and also to enable rolling of thinner steel strips with a minimum thickness of 1.2 mm. To this end, the hot rolling mill is to be equipped with a second caster, a sixth finishing stand and a second coiler. Siemens is to supply and install the associated drives and automation system, which are based on the Siroll HM solution platform specially developed for hot rolling mills. For the first construction stage, Bhushan had already decided in favor of drives and automation systems from Siemens. Moreover, Siemens supplied the reactive-power compensation equipment for the drives and the electric arc furnaces.

Within the framework of the current project, Siemens is supplying additional cyclo-converters and the motor for the finishing stand, the main drive and the main motor for the coiler, as well as other auxiliary drives and motors for the new parts of the plant. The caster will be automated on the basis of Simatic S7 and PCS7 with Simelt CC Control. Simatic TDC and PCS7 systems will serve as the basis for extended automation of the finishing mill. On top of all this, Siemens is supplying two reactive-power compensators (Static Var Compensators, SVC) for the electric arc furnaces, whereby each compensator has an output of 120 Mvar. Simetal PQ (Power Quality) is being used to ensure the quality of the power supplied. Siemens is also responsible for installation supervision and commissioning of the supplied drives and automation system.

The automation solution from Siemens for the new parts of the plant is a uniform, integrated system with a high degree of standardization. Integrated diagnostic functions ensure a high level of transparency, simple operator control and the ability of the operating personnel to react quickly in the event of a fault. The open communication protocols will facilitate additions to the plant in future.

2009 Pakistan Economic Update

The political and security environment has complicated policy-making and made the implementation of stabilization measures challenging.

Stabilization Program

In November 2008, to avoid a default on foreign debt payments, Pakistan developed a stabilization program, which was supported by the International Monetary Fund (IMF). In 2007-08, the sharp rise in international oil and food (specifically wheat) prices had led to rapidly expanding macroeconomic imbalances in Pakistan.

By mid-October 2008 the foreign exchange reserves of the State Bank of Pakistan (SBP) had dropped to about three weeks of imports ($3.3 billion). In response, the stabilization program envisaged fiscal and monetary tightening to bring down inflation and reduce the external current account deficit to sustainable levels.

Stabilization efforts since November 2008 together with a decline in international commodity prices have succeeded in reducing external imbalances, rebuilding foreign exchange reserves, and lowering inflation in Pakistan.

Macroeconomic Situation

However, the macroeconomic situation remains fragile and the medium-term outlook is uncertain. Progress with the implementation of reforms has been uneven, with inadequate measures taken to boost revenue and control public spending.

The political and security environment has complicated policy-making and made the implementation of stabilization measures challenging. While the worst of the global economic crisis seems to be ending, global recovery will be gradual and may take time. In the meantime, there are significant risks to exports and external financing. The fiscal year 2009-10 looks difficult.

Fiscal Year 2008-09

Economic activity significantly slowed down in 2008-09. The current account deficit narrowed to 5.1% of GDP. Overseas remittances have increased. But financial inflows (such as FDI and portfolio investment) dropped sharply—by over 37%—due to macroeconomic instability, deteriorating security situation and global recession.

But with the assistance of IMF disbursements, SBP foreign exchange reserves rebounded to about $9.1 billion (2.9 months of imports) by end-June 2009.

However, fiscal problems continued during 2008-09 and the fiscal deficit target was 5.2% of GDP. Overall revenues fell substantially short of the target primarily due to a drop in tax revenues as the economic slowdown reduced Pakistan’s two main tax bases-manufacturing and imports.

Fiscal Year 2009-10

The first two months of FY 2009-10 suggest that fiscal instability will continue, and the first quarter fiscal deficit target will likely exceed the estimates. Revenues have continued to underperform. Provincial governments have continued to spend at high levels, and power subsidies have remained unaddressed by the federal government.


Failure to raise revenues in future would further intensify Pakistan’s vulnerability to external shocks, and jeopardize development efforts by limiting resources available for planned investments in human and physical infrastructure.

Pakistan’s high economic growth in the earlier part of this decade was in part by heavy reliance on external financing and on expansionary fiscal stance, while revenues and savings remained stagnant. This reliance on external financing left the economy vulnerable to external shocks, which came in 2007-08 led to a balance of payments crisis. To reduce the economy’s vulnerability expanding domestic revenue mobilization would be critical.

Motorola Appoints Edward J. Fitzpatrick Chief Financial Officer

SCHAUMBURG, Ill., Oct 29, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Motorola, Inc. (NYSE: MOT) today announced that Edward J. Fitzpatrick, senior vice president, has been appointed chief financial officer, effective immediately. Fitzpatrick has served as Motorola's acting CFO since February 2009.

Greg Brown and Sanjay Jha, co-chief executive officers of Motorola, stated, "Ed has made numerous contributions, including driving significant cost reduction actions and focusing the company on working capital improvements and cash flow generation. We are confident that Ed's broad finance experience and his deep knowledge of Motorola and its businesses, coupled with his proven track record of driving financial discipline and process improvements, will continue to benefit Motorola and its shareholders."

Fitzpatrick, 43, joined Motorola in 2000 and has served as acting chief financial officer since February 2009 and corporate controller since January 2009. Previously, he served as corporate vice president of finance for Motorola's Home & Networks Mobility business. Prior to that, he served as vice president and controller for the Networks & Enterprise and the Government & Enterprise Mobility Solutions businesses and controller for the Connected Home Solutions business. Prior to Motorola's acquisition of General Instrument Corporation, Fitzpatrick was assistant corporate controller at General Instrument. He began his career at Price Waterhouse, where he served as a senior manager.

Fitzpatrick received a master's degree in business administration from Wharton School of Business and holds a bachelor's degree in accounting from Pennsylvania State University. He also became a certified public accountant in 1990.

About Motorola

Motorola is known around the world for innovation in communications and is focused on advancing the way the world connects. From broadband communications infrastructure, enterprise mobility and public safety solutions to high-definition video and mobile devices, Motorola is leading the next wave of innovations that enable people, enterprises and governments to be more connected and more mobile. Motorola (NYSE: MOT) had sales of US $30.1 billion in 2008.

Apache's Third-Quarter Production Exceeds 600,000 boe Per Day

HOUSTON, Oct 29, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Apache Corporation (NYSE, Nasdaq: APA) today reported that for the first time average worldwide production surpassed 600,000 barrels of oil equivalent (boe) per day during the third quarter, increasing 3.4 percent from the second quarter and 19 percent from the prior-year period.

"Apache's regional growth drivers put the company on track for record production and solid financial results in 2009, and we will enter 2010 with strong momentum, including two development projects in Australia that should add 40,000 barrels of oil per day to worldwide output when they commence operations in the first half," said G. Steven Farris, chairman and chief executive officer.

The company produced 607,118 boe per day in the third quarter. Liquid hydrocarbons production averaged 297,997 barrels per day, up 2 percent from the second quarter. Gas production averaged 1.85 billion cubic feet per day, up 5 percent from the second quarter.

Apache reported net income of $441 million, or $1.30 per diluted common share, compared with $1.2 billion, or $3.52 per share, in the prior-year period. Third-quarter cash from operations before changes in operating assets and liabilities* totaled $1.3 billion, compared with $2.1 billion in the prior-year period.

Apache's third-quarter adjusted earnings,* which exclude certain items that impact the comparability of operating results, totaled $534 million, or $1.58 per share, compared to adjusted earnings of $1.1 billion, or $3.19 per share, in the prior-year period.

Apache had approximately $1.4 billion in cash at the end of the third quarter. Debt was 24.7 percent of total capitalization.

Third-quarter operational highlights included:

    --  The Egypt Region achieved a new record for gross operated production of         290,452 boe per day, up 6 percent from the second quarter and 27 percent         from the prior-year period, driven by increased gas output from two new         processing trains at the Salam Gas Plant and increased oil production         from the Faghur Basin in the Khalda Offset Concession. Net production         was down slightly because higher oil prices and lower capital spending         reduced cost-recovery barrels under the terms of production-sharing         contracts.     --  In Australia, net gas production averaged a record 225 million cubic         feet (MMcf) per day.     --  At the Forties Field in the North Sea, record net production of 71,472         boe per day during the month of July contributed to the second-best         quarter since Apache took over operations in 2003. Third-quarter oil         output increased 13 percent from the second quarter to 67,288 barrels of         oil per day on strong drilling results and increased field efficiency.      --  The deepwater Geauxpher Field at Garden Banks Block 462 in the Gulf of         Mexico produced 98 MMcf per day during the third quarter; Apache's net         was 39 MMcf per day.  

Projects that will drive Apache's growth in 2010 include:

    --  In Australia, the Ningaloo Vision floating production, storage and         offloading vessel (FPSO) is expected to arrive at the Van Gogh field in         the Exmouth Basin in November, with first production expected in early         2010. Van Gogh is projected to add 20,000 barrels per day to Apache's         annual net oil production. Pyrenees, a second oil project in the Exmouth         Basin, is projected to begin ramping up to 20,000 barrels per day (net)         during the first half.     --  Production at Apache's Ootla development in the Horn River Basin shale         play in northeast British Columbia is projected to ramp up during the         second quarter. Apache and its joint venture partner EnCana plan to have         27 horizontal wells (gross) on production by the end of the first half.      --  Apache is planning to drill more than 20 horizontal wells in the Granite         Wash play in western Oklahoma and the Texas Panhandle during 2010. The         Hostetter #1-23H, Apache's first operated horizontal Granite Wash well,         is producing 17 MMcf of natural gas and 800 barrels of liquids per day.  

Apache also took steps to build its pipeline of long-term growth projects.

    --  Apache and Kuwait Foreign Petroleum Exploration Co. (KUFPEC) signed an         exclusive agreement to supply gas from their Julimar and Brunello         discoveries and become foundation equity partners in Chevron's         Wheatstone liquefied natural gas (LNG) hub in Western Australia,         unlocking an estimated 2.1 trillion cubic feet of gross gas reserves         from two of Apache's largest discoveries. Apache holds a 65-percent         interest in the discoveries.      --  In Argentina, Apache received government approvals of new contracts to         supply 50 MMcf of gas per day from two fields in Argentina's Neuquen and         Rio Negro provinces at a price of $5 per million British thermal units         (MMBtu). The new contracts - the first approved by the secretary of         energy under the government's Gas Plus program - are scheduled to         commence in January 2011, although the customer - a power plant operator         - has indicated it may begin taking gas in mid-2010. Apache has         submitted five additional development projects for approval under Gas         Plus.  

"Apache's diverse asset base comprises a mix of near-term investments with a pipeline of impactive projects that provide a foundation for solid long-term growth," Farris said.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina.

CSR AND TSMC Collaboration Reaches New Milestones

One million wafers processed and leading edge 40nm low power RF CMOS technology IP developed to deliver the next-generation wireless connectivity user experience


Bangalore, 29 October 2009 - CSR plc (LSE:CSR.L) today announced that it has shipped more than 1.5 billion units and processed more than one million wafers from foundry partner Taiwan Semiconductor Manufacturing Company (TWSE: 2330, NYSE: TSM).   CSR also announced that it is collaborating with TSMC on a leading edge 40 nanometer (nm) low power (LP) RF process technology and that CSR has validated a broad range of proprietary connectivity IP blocks at this node for incorporation into their next generation Connectivity Centre SoCs. 


As the pioneer in bringing single die Bluetooth products on RFCMOS technology, CSR has worked closely with TSMC over multiple generations of technologies and delivered a broad range of innovative products to mainstream consumer markets.  CSR has shipped more than 1.5 billion products that drive connectivity across multiple markets including mobile phones, automobiles, computers and consumer electronics devices.


CSR's Connectivity Centre SoCs require a small form factor and lower power consumption to deliver seamless connectivity for next-generation wireless devices. TSMC’s 40nm LP RF process technology enables CSR to meet these objectives with highly integrated multi radio devices that allow the seamless coexistence of Bluetooth, GPS, Wi-Fi and FM radios.  The two companies are leveraging their long relationship to help CSR achieve 40nm leadership with its multifunction radio integrated silicon platforms.


“TSMC consistently delivers cutting edge technology platforms that include integrated design collaterals and ecosystems. Our 40nm platform supports the high performance, low power, and high density RF products that will help CSR deliver next-generation experiences,” said Mark Liu, Vice President of Advanced Technology Business at TSMC. “CSR is a demonstrated wireless technology leader because of their unique ability to bring these news experiences to reality.”


“CSR’s close collaboration with TSMC is key to our ability to deliver significant advantages to our customers through industry-leading integration, power efficiency and cost efficiency of our products.  We enable our customers to do more for less by selecting the technology nodes appropriate for the platform architecture we are delivering,” said Mark Redford, Vice President Advanced Process Technology Development of CSR. “CSR’s highly integrated designs, with its portfolio of technology node optimized proprietary IP blocks, bring the best connectivity experience possible to wireless users worldwide.”




The Board of Aviva has assessed the options available for the Coolimba Power project following advice on 12 October 2009 that it had not been appointed preferred tenderer by Synergy under its 2009 supply procurement program.


The constraining factors in assessing the future options are as follows:

·        Synergy is the only wholesale power customer in the south-west of WA with sufficient credit worthiness to underpin the project financing of a coal fired power station.

·        Global power producers, such as AES have little interest in generation projects that are not underpinned by an off take agreement with a strongly rated counterparty, such as Synergy.

·        Without the involvement of a retailer, it is impossible  to economically aggregate small loads, and extremely difficult to put in place the required funding for the project.

·        The ongoing public debate regarding a merger of Synergy with state owned generator Verve Energy, and the changes or potential changes in arrangements between Verve and Synergy, creates insurmountable investment uncertainty for large projects necessarily reliant on Synergy for off take.


Market factors underpinning the opportunity for power generation are:

·        Domestic gas supplies to the southern end of the Dampier to Bunbury pipeline are, in our view, more likely to decrease than increase by 2014. Regardless we expect the price of gas for power generation to increase dramatically in that timeframe.

·        The Independent Market Operator forecasts unmet electricity demand of around 500MW in 2014/15.

·        Much of that new demand is from block mining loads in the Midwest region essential for the development of the Oakajee Port. However in the south desalination and silicon smelting loads are also set to double.


Project factors that remain attractive in this context are as follows:

·        Coolimba is nearing final environmental approval for a 360MW gas fired power station and a 400MW coal fired power station.

·        Coolimba is one of the most attractive sites for the development of CCS (Carbon Capture and Storage) in Australia.

·        Coolimba has fuel reserves equivalent to 100TJ per day for 30 years available for power generation.

·        Coolimba’s location adds to state energy security by increasing fuel and transmission diversity. 


In the absence of Synergy as a customer, it is not feasible for the company to pursue a large coal fired power project as the start up option at Coolimba. Aviva’s business case  is centred on upfront fees for the development of coal resources associated with a generation project, and therefore it is simply not attractive for Aviva to pursue power developments with gas fuel purchased from third parties. 


The Aviva board is of the view that in the timeframe required to make the project feasible, Synergy is no longer a potential customer for private baseload generation in the SWIS and the only options to extract value from Coolimba are to align the project with an alternative customer, either a private retailer or one of the block mining loads in the Midwest.  It is most unlikely that Aviva can participate directly in either of these development options.  To this extent discussions have commenced with relevant parties who may be interested in assuming development of the Coolimba Power project with a view to recovering some value for Aviva.


Agreements are in place between the owners of the mining rights, the owners of the mining title and Aviva to provide for exploration of the Central West Coal deposit.  Aviva’s option over the mining rights has been extended by mutual consent to allow for the timing of the Synergy procurement process. If Aviva does not reach agreement to extend the option on the mining rights beyond the 20 November 2010 deadline these tripartite agreements fall away, leaving the mining title, rights of exploitation and technical data in separate hands, which will make the future exploitation of the coal most unlikely.  The data generated by Aviva in its studies remains the property of Aviva.  In the past,  Aviva has been able to secure an extension of the option, however, it is unlikely that Aviva will seek a further extension of the option in the absence of a viable commercialisation opportunity for both parties.



The Independent Market Operator (IMO) highlighted the need for at least 500MW of new generation by 2014/15 in its Statement of Opportunities released in July 2009. Much of this unmet demand is made up of 20Mtpa of magnetite iron ore projects. The Minister for Energy confirmed in writing to Aviva on 17 June 2009 that no decision had been made to remove the 3,000MW capacity cap on Verve Energy which had been in place since 2006. Verve has also issued statements affirming its intention to stay within the 3,000MW cap.



It is understood that the Oakajee Port development championed by the WA government, and the intended  recipient of infrastructure funding from the WA and Australian governments, will require throughput of 25 million tonnes per annum to be viable. The most advanced projects in the Midwest likely to provide this throughput are power intensive magnetite projects. Magnetite production of 25Mtpa will require baseload power generation capacity of 400MW. The port itself and attendant service industries will require additional power.



Aviva’s assessment of the fuel available for power generation by 2014/15 in Western Australia also supports the critical need for a project like Coolimba. Domestic gas supplies are currently around 1,200TJ/day. Depletion of existing fields is likely to cut domestic gas supplies by around 300TJ/day. New “unsold” domestic gas supplies are coming on line but only after 2014/15, including Gorgon 150TJ/day, Pluto 85TJ/day and possibly Macedon 100 TJ/day.  


Rapid growth in the Pilbara iron ore industry is driving the demand for gas in the northwest. Power generation requirements alone will require an additional 150-250TJ/day of gas.  Minimal transport logistics and price insensitivity are likely to make the Pilbara customers a preferred market for new gas suppliers.


The Dampier Bunbury pipeline supplies around 750TJ/day to the southwest market and demand for gas from the power, industrial and household sectors in the southwest continues to grow.


It is our view that prices for new gas contracts to support electricity generation will be at a level where Coolimba would be viewed as being very competitive.



By 2014/15 the SWIS market is forecast to require 500MW of new generation, gas supplies are likely to be constrained, and / or  gas prices could increase significantly.


Coolimba Power was planned to commission in 2014/15 providing 400MW of new generation in the Midwest with a dedicated coal reserve providing 100TJ/day for 30 years at a competitive rate.


Without Coolimba or a similar project, we expect constrained power supplies, higher power prices, and significant impacts on the development of the Midwest.


Quarterly Report for the Three Months Ending 30 September 2009





·         Gold production of 50,584 ounces at a site operating cash cost of A$428 per ounce (not including royalties).

·         Mined production from Trident was 281,801 tonnes at 5.7 g/t gold for 51,326 contained ounces.

·         Underground development totaled 2,660m during the quarter.

·         The Higginsville treatment plant processed 314,463 tonnes at 5.2 g/t gold for 50,584 ounces at a recovery of 97.3%.

·         Underground drilling continues to yield excellent infill grade control drilling results from the Athena Lodes (e.g 5m @ 235 g/t), as well as extending the Apollo (eg. 37m @ 11.1 g/t) and Eos mineralised positions.



·         Surface exploration confirmed the highly encouraging continuation at depth of the Trident ore system with high grade intersections located 150m below the existing resource base (eg. 2.4m @ 14.1 g/t).

·         Indicated resource drilling of 14 holes at Chalice returned promising results (eg. 20.0m @ 10.7 g/t and 28m @ 7.2 g/t).

·         Drilling 1.2km north-west of Musket has identified a new mineralised position with all 7 RC holes from a shallow program returning good results (eg. 13m @ 4.0 g/t and 7m @ 2.3 g/t)


Project Development

·         The Trident paste plant was completed during the quarter on time and approximately A$1.5 million under budget.



·         Avoca closed its off-market takeover offer for Dioro Exploration NL with a 44.85% interest. Avoca subsequently acquired 3 million options in Dioro and by quarter-end had three of its directors (Messrs Williams, Reynolds and Castro) appointed to the Dioro board.

Asia Recovering Fast, but Faces a “New World,” IMF Says

October 29, 2009

Asia is rebounding rapidly from the depth of the global crisis, the International Monetary Fund (IMF) said today in its latest report on the region. According to the Regional Economic Outlook (REO) for Asia and the Pacific, released today in Seoul, Asia’s growth is forecast to accelerate to 5¾ percent in 2010 from 2¾ percent in 2009, both higher than previously projected.

“The primary driver of Asia’s recovery has been a progressive return towards normalcy following the abrupt collapse in global trade and finance at the end of 2008,” the report said. “Just as the U.S. downturn triggered an outsized fall in Asia’s GDP because international trade and finance froze, now their normalization is generating an outsized Asian upturn.” This development confirms that Asia has not decoupled from the rest of the world, the REO noted. In fact, Asia’s fortunes remain closely tied to that of the global economy.

The other key driver of Asia’s recovery, according to the report, has been the region’s rapid and forceful policy response. This reaction was made possible by Asia’s strong initial conditions: fiscal positions were sounder, monetary policies more credible, and corporate and bank balance sheets sturdier than in the past. These conditions have given policymakers the space to cut interest rates sharply and adopt large fiscal packages, helping to sustain overall domestic demand.

What lies ahead? The REO notes that global conditions are expected to continue to improve gradually in 2010. According to the IMF’s latest forecasts, output in the large G7 economies is forecast to grow by 1¼ percent next year, recouping only half the contraction estimated for 2009, because private demand in these countries remains constrained by the legacy of the crisis. Consequently, overseas demand for Asia’s products will remain subdued, keeping the region’s growth well below the 6 2/3 percent average recorded over the past decade.

In this environment, policymakers will face two major challenges, the report said. In the near term, they will need to manage a well integrated balancing act, providing support to the economy until the recovery is sufficiently robust and self-sustaining while ensuring that the support does not ignite inflationary pressures or concerns over fiscal sustainability.

Over the medium term, policymakers will need to find a new momentum to return to sustained, rapid growth in a new global environment of likely softer G7 demand. In this “new world”, Asia’s longer term growth prospects may be determined by its ability to recalibrate the drivers of growth to allow domestic sources to play a more dynamic role. To be successful, rebalancing will require greater exchange rate flexibility and structural reforms that will allow for a smooth reallocation of resources across the economy.

In the first of two analytic chapters, the REO explores how Japan emerged from its banking crisis in the 1990s to draw lessons for the current global recovery. “How Japan Recovered From Its Banking Crisis: Possible Lessons for Today” finds that a sustainable recovery in Japan only took hold when spillovers from a favorable external environment reinvigorated private domestic demand and the financial and corporate sector problems at the heart of the crisis were adequately addressed. Japan’s experience suggests that “green shoots” do not guarantee a recovery, implying the need to be cautious on the outlook today, and that addressing financial fragilities in the advanced economies is crucial for securing a durable recovery.

Chapter III, “Corporate Savings and Rebalancing in Asia”, analyzes the sharp increase in corporate savings in Asia over the past few years even as investment has remained subdued. This unusual combination poses a question: why didn’t corporations pay out their profits as dividends, if they didn’t have suitable investment projects? The chapter concludes that resolving this issue requires further structural reform. Greater financial development could reduce companies’ need to retain earnings for precautionary reasons, while improvements in corporate governance could ensure that managers retain earnings only for investments in profitable projects.

Steps taken to Improve the Statutory Framework for Accounting and Auditing

MOU Signed between ICAB and ICAEW
DHAKA, October 29, 2009: With a population of 150 million, Bangladesh has only 750 Chartered Accountants; far too few to meet the needs of the growing economy. The Institute of Chartered Accountants of Bangladesh (ICAB) signed a memorandum of understanding with its counterpart the Institute of Chartered Accountants in England and Wales (ICAEW) on Monday to jointly work to develop the accounting and auditing professions in Bangladesh. Under the MoU, ICAB and ICAEW will continue to work for developing the new ICAB qualification, which will be based on full implementation of the changes made with the assistance from the ICAEW.

The leading professional accountancy bodies in Bangladesh, The Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB) have to be strengthened to face the emerging global challenges. Availability of transparent and reliable financial information and an independent audit regime conforming to international standards are both essential for strengthening the country’s economy.

Speakers at the MOU Signing Ceremony stressed on the need to accelerate the development of the accountancy profession in Bangladesh. Nasir Uddin Ahmed FCA, ICAB President and Martin Hagen, ICAEW President signed the agreement on behalf of their respective institutions to enhance mutual cooperation. Muhammad Faruk Khan, The Honorable Commerce Minister was present as the Chief Guest.

The Ministry of Finance and Ministry of Commerce, along with the World Bank jointly facilitated the MOU Signing Ceremony under the umbrella of the technical assistance project Strengthening Auditing and Accounting Standards and Practice in the Corporate Sector.

“We commend ICAB for giving utmost priority to high-quality training programs by improving the curricula and quality of the teaching of accounting and auditing and by working with ICAEW to raise the skills and competencies in the profession to international standards” said Mohamed A. Toure, Country Management Unit, The World Bank. “I am hopeful that ICAB will play its role in enhancing the overall corporate governance by continuing its drive for excellence as one of the leading professional institutes in the country.”

The Honorable Commerce Minister lauded the role of the professional bodies in improving overall corporate governance while appreciating World Bank’s support to further strengthen the accountancy profession and education, and hoped for continued support in days ahead.

Strengthening the statutory framework of accounting and auditing in Bangladesh will help the country by improving the investment climate, attracting foreign investment, helping mobilization of domestic savings, underpinning securities market development, facilitating healthy growth of financial markets and enabling regulatory bodies.

The Government with the support of the World Bank has been focusing on a number of relevant areas including, formulating a Financial Reporting Act and establishment of an independent oversight body – Financial Reporting Council; capacity development of professional bodies through twining partnership with developed professional accountancy body; and improving professional education, training and Examination system.

Friday, October 30, 2009

Anand Sharma calls for building a comprehensive economic partnership between India and Egypt


Shri Anand Sharma, Union Minister for Commerce & Industry has called upon the business leaders of India and Egypt to work for building a Comprehensive Economic Partnership between the two countries. He was addressing a meeting of the Business Forum organized by the Egyptian Ministry of Trade and Industry in Cairo today. He is currently visiting Cairo at the invitation of Mr. Rachid Mohamed Rachid, Minister for Trade & Industry of the Arab Republic of Egypt, to participate in an Informal African WTO Trade Ministerial Brainstorming Session on “Consolidating the Development Dimension”. Prior to this in September 2009, an Informal Ministerial Meeting on the Doha Round of WTO was organized in New Delhi, which was attended by Minister Rachid.

Earlier Shri Anand Sharma had a meeting with Dr. Ahmed Nazif, Prime Minister of Egypt this morning, where wide ranging bilateral issues as well as global developments of mutual interest were discussed. With links going back to ancient time, India and Egypt have traditionally enjoyed close and friendly relations. In modern times, a firm foundation was laid by great leaders like Pandit Jawaharlal Nehru and President Nasser. Bilateral relations are marked by mutual respect, goodwill and understanding and constitute a factor of peace and stability in international relations. Shri Anand Sharma also briefed the Prime Minister Dr Nazif about the recent developments in India that have taken place after the visit of Shri Hosny Mubarak, President of Egypt to India in November 2008 and after the visit of Dr. Manmohan Singh, Prime Minister of India to Egypt in July 2009 for attending the XV Summit of the Non-Aligned Movement. Egyptian Prime Minister has invited India to set up joint ventures with Egyptian companies in an exclusive India investment zone that he is proposing to establish. He also suggested that both countries should explore possibilities of joint ventures in third countries. In addition, the Prime Minister mentioned that he is personally committed to taking the economic engagement with India to a higher level.

Shri Sharma also participated in the Informal African WTO Trade Ministerial Brainstorming session on “Consolidating the Development Dimension”, which was attended by 22 other Ministers and Director General of WTO. The meeting focused on finding the ways and means of a closer cooperation among the participating countries for adopting a common approach to the major issues coming up for discussions in WTO. It was felt that cooperation was the only way of protecting the interest of the developing countries in a forum like WTO.

After the WTO Brainstorming Session, Shri Anand Sharma had a fruitful bilateral meeting with Mr. Rachid and discussed the ways of boosting the economic and commercial relations. Bilateral trade between India and Egypt has been growing steadily till the financial year 2007-08, when it crossed US$ 3 billion for the first time. Despite being a net foreign investment recipient country, India has invested significantly in Egypt. In Egypt, there are 40 projects in diverse areas like chemicals, petrochemicals, pharmaceuticals, cosmetics, garments etc. that have received of a total of US $ 750 million Indian investment. Additionally, ONGC Videsh Ltd (OVL) and Gujarat State Petroleum Corporation (GSPC) have met investment commitments of US$ 300 to 500 million in the oil exploration sector. Both the Ministers agreed that the existing close economic relations within the two countries need to be taken to a higher level by going beyond the trade figures alone. At the end of the talks, the two Ministers signed a Joint Action Plan for cooperation between the Egyptian Ministry of Trade and Industry and the Indian Ministry of Micro, Small and Medium Enterprises (MSMEs). MSMEs play an important role in the economies of both the countries by providing employment for millions of people and by working as a vital entrepreneurial training ground for the small entrepreneurs not possessing sufficient financial resources to start a large business house. A Joint Committee will be constituted soon for implementation of the Action Plan.

A 16-member delegation from Confederation of Indian Industries (CII) has also accompanied Shri Anand Sharma. CII delegation called on Dr. Mahmoud Safwat Mohyee El-Din, Minister for Investment of Egypt and had very productive meetings at Egyptian Ministry of Electricity & Energy, Federation of Egyptian Industries (FEI) and Egyptian Businessmen Association (EBA). The other engagement of the CII delegation was a Business Forum followed by a Networking Dinner organized by the Egyptian Ministry of Trade & Industry. The Business forum was also attended by Shri Anand Sharma who called upon the business leaders of two countries to work for building a comprehensive economic partnership between the two countries.
State Industry Secretaries to deliberate on ways to Accelerate Industrial Investment
Industrialization is considered to be the prime engine of economic growth due to its significant role in domestic value addition and national capacity building. Thus accelerating investments into the industrial sector is one the major focus areas of the Government of India. Since there are several areas of industrial development which fall within the purview of the State Government, the Dept. of Industrial Policy and Promotion (DIPP) has been conducting meetings from time to time with the states. The last conference in May 2008 focused on various issues relevant for the growth of industry in India e.g. simplification of business regulations, provision of land and infrastructure, promotion of productivity, design standards and innovation in industry etc. A number of useful suggestions for promoting industrial growth emerged from the conference.

The conference was followed up with a detailed study of 17 Indian cities with respect to status of licensing and clearances required for starting and operating a business in India (Doing Business in India 2009), and the launch of the eBiz project to create a one-stop portal for offering investment related G2B services.

To build upon the earlier discussions and initiatives, and to accelerate the process of industrial development in India further, a conference of State Industry Secretaries is being held on 30th October, 2009, in Udyog Bhawan, New Delhi. The Conference will focus on accelerating industrial investments through creation of a business friendly policy environment in the country. Deliberations will cover

„X The findings of the ¡¥Doing Business in India 2009¡¦ study by the World Bank;
„X National ¡¥Best Practices¡¦ in Investment Promotion and Regulatory Reforms covering areas such as issue of permits, payment of taxes, provision of utility connections etc;
„X The role of states in the implementation of the mission mode e-Biz project;
„X The concerns of industrial investors and DIPP¡¦s effort to address them through the ¡¥Invest India¡¦ initiative.
The Conference will be aimed at strengthening the synergies between the states and the Government of India for attracting greater investments into the industrial sector. Emphasis will be laid on the measures required to be taken by the State Governments as they are at the cutting edge of investment promotion. Steps needed to be taken at the level of Government of India to speed up reforms and resolve roadblocks for attracting more investments will also be discussed.
Index Numbers of Wholesale Prices in India (Base: 1993-94=100)
Review for the week ended 17th October 2009  

The official Wholesale Price Index for 'All Commodities' (Base: 1993-94 = 100) for the week ended 17th October, 2009 remained unchanged at its previous week’s level of 242.2 (Provisional).

The annual rate of inflation, calculated on point to point basis, stood at 1.51 percent (Provisional) for the week ended 17/10/2009 (over 18/10/2008) as compared to 1.21 percent (Provisional) for the previous week (ended 10/10/2009) and 10.82 percent during the corresponding week (ended18/10/2008) of the previous year.


The annual rate of inflation, calculated on point to point basis, stood at 1.51 percent (Provisional) for the week ended 17/10/2009 over (18/10/2008) as compared to 1.21 percent (Provisional) for the previous week (ended 10/10/2009) and 10.82 percent during the corresponding week (ended 18/10/2008 of the previous year. Build up inflation in the financial year so far was 5.95% compared to a build up of 5.25% in the corresponding period of the previous year. 52 week average inflation for the week ended 17/10/2009 was 2.33 %. 

The movement of the index for the various commodity groups is summarized below:-

2. PRIMARY ARTICLES (Weight 22.02%)

The index for this major group declined by 0.1 percent to 273.3 (Provisional) from 273.5 (Provisional) for the previous week. The groups and items for which the index showed variations during the week are as follows:-

The index for 'Food Articles' group declined by 0.1 percent to 278.4 (Provisional) from 278.6 (Provisional) for the previous week due to lower prices of fish-marine (6%). However, the prices of tea, mutton, maize, arhar, condiments & spices and moong (1% each) moved up.

3. FUEL, POWER, LIGHT & LUBRICANTS (Weight 14.23%)

The index for this major group declined by 0.1 percent to 344.9 (Provisional) from 345.4 (Provisional) for the previous week due to lower prices of aviation turbine fuel (3%), furnace oil (2%) and light diesel oil (1%). However, the prices of bitumen (2%) moved up.


The index for this major group rose by 0.1 percent to 208.6 (Provisional) from 208.3 (Provisional) for the previous week. The groups and items for which the index showed variations during the week are as follows:-

The index for 'Food Products' group rose by 0.4 percent to 240.2 (Provisional) from 239.2 (Provisional) for the previous week due to higher prices of imported edible oil and gur (4% each), rice bran oil (3%) and oil cakes (2%). However, the prices of butter and groundnut oil (2% each) and gingelly oil and ghee (1% each) declined.

The index for 'Textiles' group declined by 0.1 percent to 144.6 (Provisional) from 144.7 (Provisional) for the previous week due to lower prices of cotton yarn-cones (1%). However, the prices of hessian cloth (2%) moved up.

The index for 'Chemicals & Chemical Products' group rose by 0.2 percent to 229.8 (Provisional) from 229.4 (Provisional) for the previous week due to higher prices of calcium ammonium nitrate n-content (8%), liquid chlorine (2%) and caustic soda (sodium hydroxide) (1%). However, the prices of p.v.c. resins (6%) declined.

The index for 'Basic Metals Alloys & Metal Products' group declined by 0.1 percent to 256.8 (Provisional) from 257.0 (Provisional) for the previous week due to lower prices of steel ingots and ms bars & rounds (3% each), basic pig iron and foundry pig iron (2% each) and other iron steel (1%). However, the prices of zinc ingots (1%) moved up.

The index for 'Machinery & Machine Tools' group rose by 0.2 percent to 174.1 (Provisional) from 173.7 (Provisional) for the previous week due to higher prices of batteries (13%).


For the week ended 22/08/2009, the final wholesale price index for 'All Commodities’ (Base:1993-94=100) stood at 241.6 as compared to 240.7 (Provisional) and annual rate of inflation based on final index, calculated on point to point basis, stood at 0.17 percent as compared to -0.21 percent (Provisional) reported earlier vide press note dated 03/09/2009.
Approval for participation and investment in the upstream and offshore midstream sections of the Blocks A-1 and A-3 in Myanmar Natural Gas Development Project by ONGC Videsh Ltd.
The Cabinet Committee on Economic Affairs today approved participation by ONGC Videsh Ltd (OVL) in the Upstream and Offshore Midstream sections of the Blocks A-1 and A-3, Myanmar Natural Gas Development Project by ONGC Videsh Ltd. and authorized OVL to make investments up to an aggregate amount of USD 173.85 million in Blocks A-1 and A-3 by OVL from its own resources and/or by borrowings from the domestic and/or international markets until the Field Development Plan (FDP) is finalized and a comprehensive proposal for the investment is approved by Government.

The investment is expected to provide additional reserve accretion of hydrocarbons and facilitate production and marketing of Natural Gas from the Blocks A-1 and A-3 having participating interest of OVL and GAIL. As per operator Daewoo the likely expenditure till March 2010 is about USD 869.25 million in respect of Block A-1, Block A-3 and Offshore Midstream PIPECO-I. Thus, OVL’s share of expenditure at 20% shall be USD 173.85 million.


OVL, a wholly owned subsidiary of ONGC has been active in Exploration and Production (E&P) activities in Myanmar since 2002 with its entry in Block A-1.
Performance of production units during April - September 2009
Chittranjan Locomotive Works (CLW) produced 81 electric locomotives against the target of 90 electronic locomotives and Diesel Locomotive Works (DLW) produced 132 diesel locomotives against the target of 127 diesel locomotives during April-September 2009. Rail Coach Factory (RCF) produced 770 coaches against the target of 770 coaches where as Integral Coach Factory (ICF) produced 635 coaches against the targets of 620 coaches during the same period. Rail Wheel Factory (RWF) produced 95483 wheels and 38630 axles during the same period against the target of 95357 wheels and 309975 axles during April-September 2009.

During the month of September 2009, CLW, DLW, ICF, RCF and RWF have produced 17 electric locomotives, 19 diesel locomotive, 120 coaches, 130 coaches, 14953 wheels and 6283 axles respectively against the target of 21 electric locomotives, 22 diesel locomotive, 105 coaches, 130 coaches, 15578 wheels and 5120 axels.

Railways have realized an amount of Rs. 36.27 crore approximately during the month of September 2009 through ticket checking.
Memorandum of Agreement between Department of Chemicals and Petrochemicals, Government of India and Government of West Bengal to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR)
In pursuance of the PCPIR policy of the Government of India and the approval of the Cabinet Committee on Economic Affairs (CCEA) in February 2009, the Department of Chemicals and Petrochemicals, Government of India entered into a Memorandum of Agreement today with the Government of West Bengal to set up a PCPIR at Haldia. The PCPIR policy is a window to ensure the adoption of a holistic approach to the development of global scale industrial clusters in the petroleum, chemical and petrochemical sectors in an integrated and environment friendly manner. The idea is to ensure the setting up of industrial estates in a planned manner with a view to achieve synergies and for value added manufacturing, research and development.

The Government of West Bengal proposed to host a PCPIR in Haldia in Purba Medinipur district covering the existing Haldia Municipal Area and the adjoining areas of Haldia Development Authority (including Nayachar Island). It will cover an area of 250.19 sq.kms, which includes 200.83 sq.kms on the mainland and 49.36 sq.kms on the Nayachar Island. It will exclude the CRZ I (i) area of 2.64 sq.kms on the island. The processing area of 108.42 sq kms is 43.33% of the total area and hence in conformity with the PCPIR policy that states that the minimum processing area for the PCPIR will be about 40% of the total designated area. The balance 141.77 sq. kms will be used as Non-Processing area and will include residential, commercial and other social and institutional infrastructure.

The Govt. of West Bengal proposes to notify the WBPCPIR under Section 9 (3) of West Bengal Town and Country (Planning and Development) Act, 1979. The State Government proposes to constitute a WBPCPIR Development Authority as the Development Authority for the notified area under Section 11 of the West Bengal Town and Country (Planning and Development) Act, 1979.

State Government has estimated a total investment of Rs. 93,180 crore in the proposed PCPIR, including a committed investment of Rs. 48,180 crore. The total employment generation from the WBPCPIR is expected to be 10 lakh persons, which includes direct employment to 4 lakh persons.

The proposal envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power etc. at a cost of Rs. 18,031 crores. The State Government has sought support from Government of India of Rs. 2108 crore involving road works, port facilities and a submarine cable landing station.

The major processing activities in the region at present are in the petroleum, petrochemical and chemical sectors. The leading among them are IOCL, Haldia Petrochemicals, MCCPTA India Corp Pvt Ltd, Tata Chemicals Ltd, Exide Industries Ltd, Shaw Wallace and Co. Ltd etc. The investment in the region from the existing units is about Rs. 12,872.5 crores. The State Govt has identified Indian Oil Corporation Limited (IOCL) and CALS Refinery Ltd. as the anchor tenants. IOCL has taken up expansion of its existing refinery from 6 MMTPA to 7.5 MMTPA with installation of a new hydro cracker unit as its matching secondary facilities at a cost of Rs. 3000 crore. IOCL also plans to initiate a techno economic feasibility study for setting up a grassroot refinery of 15 MMTPA capacity at Haldia, integrated with downstream petrochemical facilties. IOCL has already laid a dedicated crude pipeline from Paradip to Haldia. The State Govt has also signed an MOU with CALS Refinery Ltd. for setting up a crude oil refinery complex in the PCPIR with a capacity to process 5 MMTPA of blend crude in Phase I of the project and will consist of process units, utilities and offsites. These facilities will be installed by transplanting a Bayer Oil refinery at Ingolstatd, Germany and Petro Canada Refinery at Canada to Haldia.

The State Government has carried out a Preliminary Environment Impact Assessment (EIA). The State Government also proposes to carry out a comprehensive EIA for the PCPIR in accordance with the Ministry of Environment and Forests, Government of India. The detailed EIA study will require a time frame of about 12 months beginning with the approval of Terms of Reference for this study by the guidelines of Ministry of Environment and Forests. All existing labour laws of the country would be applicable in the PCPIR and SEZs, in the region, if any, would be governed by special laws, as approved by Government of India.