Achievements of Department of Public Enterprises During the Year 2011

The Department of Public Enterprises(DPE) laid down a number of policy guidelines for performance improvement, evaluation , autonomy and financial delegation, personnel management and other related areas for the Central Public Sector Enterprises (CPSEs) , during the year 2011. It acted as an interface between various parliamentary and government organizations and the CPSEs. Production of the CPSEs under the Department stood at Rs. 28575.68 crore during April to November, 2011 as against the Rs. 25002.19 crore during the corresponding period of last year. This shows positive growth of 14.29% compared to the last year.

Memorandum of Understanding(MoU) of CPSEs - 197 CPSEs signed MoU for the period 2011-12. The performance evaluation of MoUs of 2009-10 of 145 CPSEs was completed by the DPE. Guidelines on Sustainable Development, Human Resource Management and Research and Development for MoUs of CPSEs were issued in September, 2011.
< br> Maharatna and Navratna – Coal India Limited was granted Maharatna status on 11 April, 2011 and Neyveli Lignite Corporation was granted Navratna status on 11 April, 2011. Presently there are 5 Maharatna and six Navratna CPSEs.

Policy for Acquisition of Raw Material Assets Abroad by CPSEs – During this year the Government approved the policy for acquisition of raw material assets abroad by CPSEs. Guidelines regarding this policy were also issued. This policy aims to provide an integrated coordination mechanism to fast track the proposals of CPSEs in this regard and also to enhance the powers delegated to the boards of Maharatna and Navratna CPSEs for the purpose of acquisition of raw material assets abroad.

Revival of sick PSEs - During 2011, based on the recommendation of the Board for Reconstruction of Public Sector Enterprises (BRPSE), the Government approved the revival of three CPSEs viz., Scooter India Limited, Biecco Lawrie Limited and Hoogly Dock & Port Engineers Limited. The BRPSE during this period also reviewed the status of implementation of its recommendations in respect of nine CPSEs and implementation of approvals of Government in case of 16 CPSEs.

Government has so far approved revival of 43 CPSEs envisaging a total cost of Rs. 25084 crores from the Government of India. Out of these 43 CPSEs, 24 posted profit during 2010-11 and out of these 24, 13 CPSEs have posted profit consecutively for three years or more.

Guidelines for CPSEs – a number of guidelines were issued to CPSEs for better management and planning. They include guidelines on expenditure management, economy measures and rationalization of expenditure; guidelines under which turnaround CPSEs were defined as companies which showed profits continuously for three preceding accounting years and have positive networth after implementation of revival package, guideline making Integrity Pact mandatory for all CPSEs for their procurement contracts.

CRR Scheme for separated CPSE employees – From 2001-02 to 2010-11 around 1.63 lakh VRs optees of CPSE employees have been trained and 68000 have been self employed/redeployed under the Counselling, Retraining and Redeployment (CRR) Scheme of CPSE.

During 2011-12, with a plan fund of Rs. 8.90 crore, the target is to cover 9000 VRS optees. 11 nodal agencies have been engaged to achieve this target. From April to November, 2011, 4600 VRS optees have been trained and a sum of Rs. 6.71 crore has been released.

Policy guidelines issued during 2011 -

i) DPE on 6 July, 2011 issued clarification on some issues regarding Performance Management System (PMS) and Productivity Linked Incentive (PLI).

ii) DPE on 20 July, 2011 further allowed Ministry/Department to consider creating of a common corpus for the retired employees of CPSEs, under their Ministry control. Purpose of the corpus would be to take care of medical and any other emergency needs of retired employees.

SAIL, Kobe Steel to Form JV for ITmk3 Project Study

Tokyo, Dec 29, 2011 (JCN via COMTEX) -- The Steel Authority of India Ltd (SAIL) and Kobe Steel Ltd will be establishing a joint venture (JV) company to carry out a detailed feasibility study for a commercial ITmk3 ironmaking plant in India. Provisionally called SAIL-KOBE Iron India Private Ltd, the proposed 50-50 joint venture will be headquartered in New Delhi. Utilizing Kobe Steel's ITmk3 iron making technology, the JV is expected to herald a new dawn for the Indian steel industry.

The ITmk3 technology is the latest generation iron making technology where iron nuggets are produced by using iron ore fines and non coking coal. Conventional BF route requires iron ore lumps, sinter and coking coal to produce pig iron. ITmk3 technology produces high quality iron nuggets and the technology is also environmental friendly.

The two companies have so far been jointly working on a preliminary study to utilize the ITmk3 process developed by Kobe Steel since signing a memorandum of understanding in March 2010. Kobe Steel and SAIL will now carry out the detailed feasibility study to bring about the early implementation of the project.

The project consists of one ITmK3 ironmaking plant and associated facilities to be constructed at SAIL's Alloy Steels Plant in Durgapur in West Bengal. The plant will use iron ore from SAIL's mines and will have a capacity of 500,000 metric tonnes of iron nuggets per year. Non-coking coal, sourced within India, will be used as the reductant in the ITmk3 process.

After the detailed feasibility study is completed with the environmental permits having been obtained, the plant construction would commence in 2013 at the earliest and the plant would go into operation in 2015.

Kobe Steel and SAIL will have the right to utilize the iron nuggets produced at the Durgapur plant in proportion to their equity share in the joint venture for their own use, or the joint venture may sell the nuggets directly to the market.

Copyright (C) Japan Corporate News NetWork 

Cyclone Warning for North Tamilnadu and South Andhra Pradesh Coast

The cyclonic storm ‘THANE’ OVER southwest Bay of Bengal is likely to move westwards and cross north Tamil Nadu coast between Nagapattinam and Chennai, close to Puducherry around early morning of 30th December 2011. The system was centered at noon todayabout 180 km east of Puduchery andat the same distance southeast of Chennai ,Tamilnadu. Sea condition is very rough. It will gradually become very high to phenomenal along and of north Tamil Nadu, Puducherry and south Andhra Pradesh coasts.Fishermen along north Tamil Nadu, Puducherry & south Andhra Pradesh coasts are advised not venture into sea during next 48 hrs.

Under the influence of this system, rainfall at most places with heavy to very heavy falls a few places and isolated extremely heavy falls (25 cm or more) would occur over north Tamil Nadu & Puducherry during next 48 hours. Rainfall at most places with isolated heavy to very heavy rainfall would also occur over south coastal Andhra Pradesh and Rayalseema and isolated heavy rainfall would occur over south Tamil Nadu during the same period.

Squally winds speed reaching 55-65 kmph gusting to 75 kmph is likely along and off north Tamil Nadu, Puducherry and south Andhra Pradesh coasts. The wind speed will increase gradually becoming 110-120 kmph gusting to 135 kmph along and off north Tamilnadu and adjoining south Andhra Pradesh coast from today coast from today night onwards.

Storm surge of about 1.0-1.5 meter height above the astronomical tide would inundate the low lying areas of Puducherry and Chennai, Tiruvallur, Kanchipuram & Villpuram districts of north Tamil Nadu at the time of landfall.

Essence of Rajasthan in Bengal-

Banga Bhumi mein Maru Bhumi

Kolkata, 29^th December, 2011: The City of Joy, situated at the heart of West Bengal, famous for inculcating cultural rendezvous, now get the essence of Rajasthani culture which is organized by Saltlake Lok Sanskriti at Nicco Park as Rajasthani Mela “Aapno Gaon”.

Today, the mela is on a laugh riot with “Tarak Mehta Ka Oolta Chasma” fame Jethalal Gada and Daya Bhabhi. They have danced with public on Dandiya beats by Keyur-Nayan Mehta Band.

Yesterday, the mela has witnessed world renowned Gulabo Sapera and troupe performing the famous Kalbelia. Gulabo was a Big Boss entrant this year.

The opening ceremony of the 8 day long Rajasthani Mela was held on 24^th December,2011 in the presence of dignitaries like local MLA, Mr. Sujit Basu;  Saltlake Municipality Chairperson, Ms. Krishna Chakraborty; President- Saltlake Lok Sanskriti, Mr. Lalit Kr. Prahladka; Secretary- Saltlake Lok Sanskriti, Mr. Sandeep Garg and many others.

The big lawn of Nicco Park is decorated in such a way that it looks exactly like ‘Banga Bhumi Mein Marubhumi’. The lawn resembles a small Rajasthani village which includes Folk dance of Rajasthan, Camel Ride, Desert Safari, Bhool-Bhulaiyan, Puppetry and also special Rajasthani food at ‘ Chokhi Dhani’.

Mr. Lalit Kr. Prahladka, President, Saltlake Lok Sanskriti, said on this occasion, “The aim of organizing this Rajasthani Mela in West Bengal is to bring to light the Rajasthani culture and to connect today’s youth with their tradition and culture.”

For seven years, Kolkata is getting the flavors and pleasure of Rajasthani culture. The mela will be on till 31^st December late night followed by various cultural programmes by renowned Rajasthani Artists and Mumbai Artists.

30^th December people will get a treat of Rajasthani folk lore with Marubhumi Ki Lata (Lata Mangeskar of the Desert) Seema Mishra

31^st Night will be a special one. 10,000 people from 3 generations will dance with Sammrat (Mumbai) and his troupe. He will belt out bollywood and Hollywood numbers and welcome the new Year at midnight.

Year-End-Review of the Ministry of Civil Aviation for the Year 2011
Bilateral Aviation Safety Agreement Signed with us

Bilateral Aviation Safety Agreement (BASA)

India has signed Bilateral Aviation Safety Agreement (BASA) with United States on 18th July, 2011. This agreement provides for mutual certification of aeronautical products. It recognizes the mutual benefit of improved procedures for the reciprocal acceptance of airworthiness approvals and environmental testing, and the development of reciprocal recognition procedures for approval and monitoring of flight simulation training devices, aircraft maintenance facilities, maintenance personnel, flight crew members and flight operations. An Implementation Procedure for Airworthiness (IPA) was also signed in November, 2011.

India-US Aviation Summit

An India-US Aviation Summit was held in New Delhi from the 16th to the 18th of November 2011 in cooperation with the United States Trade and Development Agency (USTDA) and U.S Federal Aviation Administration (FAA). The summit continued with the commitment of the United States and India to advance cooperation in the aviation sector. It focused on technical, policy and commercial elements in the sector, including infrastructure development, air traffic management, air traffic control, aviation security, general aviation and airspace utilization throughout India.

Amendments of Air Services Agreements (ASAs) with foreign countries

Keeping in view the recent developments in the Civil Aviation Sector and with a view to modernize and update the existing Air Services Agreements (ASAs) with foreign countries as per the ICAO templates, the Ministry of Civil Aviation has signed ASAs with Indonesia and Brazil and ASAs initialed with Jamaica, Dominican Republic, Mozambique, Uganda, Trinidad and Tobago.

European Union Emission Trading System

An international meeting of ICAO council and other Non-EU member states was held in New Delhi on 29th – 30th September to discuss the inclusion of aviation in the European Union Emission Trading System (EU-ETS). Discussions included legal objection to EUETs, Policy objections, the role of ICAO-the way forward and discussions on next steps.

27 countries including India participated: Argentine Republic, Brazil, Canada, China, Chile, Colombia, Cuba, Egypt, Japan, Republic of Korea, Malaysia, Mexico, Nigeria, Paraguay, Peru, Philippines, Qatar, Russian Federation, Saudi Arabia, Singapore, South Africa, Thailand, Turkey, United Arab Emirates and United States of America. It was attended by over 70 delegates.

A Joint Declaration was negotiated and adopted at New Delhi on 30th September, 2011 opposing the scheme.India thereafter took the lead to co-present a Working Paper (WP), in ICAO Council which included the Joint Declaration. This was adopted in the 194th Council Session of ICAO meeting held on 2nd November, 2011.

India-ICAN conference, 2011

The President of India, Smt. Pratibha Devisingh Patil inaugurated the 4th ICAO Civil Aviation Negotiations (ICAN) Conference held in Mumbai from 17-22 October, 2011. ICAN has been conceptualized by ICAO as ‘One-Stop-Shop’ for bilateral negotiation process.

A special Africa session was also held on the inaugural day which included participants from the African Union, ICAO, Ministry of External Affairs and the Ministry of Civil Aviation.

The Conference was attended by 64 states and 04 Regional Bodies. During the conference, more than 370 bilateral meetings were held between air services negotiators from states in all regions of the world which led to the signing of over 120 agreements and arrangements. India met with 37 countries and signed MoUs/agreed minutes with 22 countries.

Indira Gandhi Rashtriya Uran Akademi (IGRUA):-

v In the Flying Calendar Year Jan – Dec 2011, approximately 17000 hours have been completed and a total number of 80 CPL holders graduated in the current year.

v DA 42 Aircraft and one DA 42 Simulator have been inducted for multi engine training.

v 125 aspiring cadets have been selected to undergo training for the next year at IGRUA.

v Considering the need for skilled manpower by the growing civil aviation industry in the country a proposal for upgradating IGRUA to a national Aviation University, is being considered.

v A proposal for the Airports Authority of India to take over Fursatganj Airfield, with a view to extend the runaway and convert it into a Civil Airport, along with a Cargo Hub and Maintenance Repair Organization Center, is under consideration.

v To supplement the demand for skilled technical manpower is proposed to start an Aircraft Maintenance Engineer training school at IGRUA.

Railway Safety:- Commission of Railway Safety performs its duty under rules framed under Indian Railways Act, 1989. In year 2011 (from Jan to Nov) CRS inquired into the 04 cases of collision, 07 cases of derailment, 06 cases of level crossing and 07 cases of unusual incidents. Besides that 473.959 KM new railway lines has been inspected by the CRS.

Air India Limited: -

v Air India has extended the offer of discounted fares in full fare economy class to para-military forces. Earlier similiar discounts was provided to Armed forces personnel and their family members.

v Air India has also decided to honour the children who are recipients of National Bravery Award 2010 by offering free tickets for their travel on domestic network along-with their parents/Guardians.

v Air Chief Marshal Fali H. Major (retd.) was appointed as non-official part –time Director on the Board of Air India Charters Limited for a period of 3 years with effect from 10th May 2011.

Helicopters Operations: -

The main objectives of PHHL are to provide helicopter support services to meet the requirement of oil sector, conduct operations in hilly and remote terrain, connecting inaccessible areas and providing charters for promotion of travel and tourism. Besides the above, the company has recently added the objectives of setting up of Heliports, helipads, Training Institute and Safety Institute. PHHL has emerged as one of Asia’s largest helicopter operators having a well-balanced own operational fleet of 42 helicopters at present.

v The paid up share capital of the Company has been increased from Rs. 113.766 crores to Rs. 245.616 crores.

v In 2010-11 the company achieved record revenue hours of 32175 as compared to 29890 in 2009-10.

v Highest ever operating revenue of Rs. 423.96 in 2010-11 as compared to Rs. 384.04 crores in 2009-10 has been achieved.

v As on 31.03.2011 the Company had operation & maintenance contract of 01 Dauphin N3 helicopter of Government of Gujarat, 2 Dhruv helicopters owned by ONGC and 4 Dhruv helicopters owned by BSF (MHA). Further, the company has signed in December 2010 another contract with HAL for operation & maintenance of 4 more Dhruv helicopters of BSF. The Company has provided one Dhruv helicopter taken on lease from HAL to Government of Maharashtra for Anti-Naxal activities at Gadcharoli, Maharashtra.

v At present 16 Dauphin N & N3 helicopters are on contract with ONGC out of which 2 Dauphins are stationed overnight at the main platforms in addition to a dedicated Night Ambulance to meet any emergency evacuation.

Important Policy Decisions Taken during the year 2011


v The Cabinet Committee on Economic Affairs (CCEA) in the meeting held on 29.03.2011 approved a proposal of AAI for a one-time grant-in-aid of Rs. 378.00 crore for final operational phase of a GPS Aided GEO Augmented Navigation (GAGAN) project over Indian Air Space subject to certain conditions.

v A seminar on operation of Seaplanes in India was organized by Ministry of Civil Aviation, DGCA and PHHL on 22.04.2011.

v A New Transfer Policy has been implemented by Bureau of Civil Aviation Security (BCAS). The new regional offices of BCAS will now be opened at Hyderabad, Ahmedabad, Guwahati and Amritsar and will be manned by the BCAS officers.

v In order to streamline and facilitate the Public service delivery systems of Ministry of Civil Aviation and its organizations it has been decided to constitute a Task Force to consider modalities of introduction of a “Single Window Public Service Delivery System”

v Ministry of Civil Aviation is the nodal Ministry for arranging to Haj Air Charter Flights to carry Haj pilgrims selected by Haj Committee of India. For the Haj Operation 2011, Ministry has selected two airlines viz. Saudi Arabia Airlines and NAS Air through competitive bid system from eligible airlines. A total of 875 flights were operated to carry 1,25,000 Haj pilgrims from 21 embarkation points in India. The whole Haj operation was completed on scheduled with almost 99% flights operated on day by schedule.

v The Bay of Bengal Arabian Sea India Ocean Safety Monitoring Agency (BOBASMA) has been endorsed as a competent Air Space Safety Monitoring Agency by the Regional Air Space Safety Monitoring Advisory Group, ICAO. The Enroute Monitoring Agency is presently monitoring PBN compliance and assessing the level of safety in horizontal plane.

v The Air Traffic Management (ATM) Contingency Plan for Indian Flight Information Regions (FIRs) have been updated to included revised route structure for safe and orderly flow of international traffic through upper Indian Air Space in case of disruption of Air Traffic Services.

v Installation of Air Traffic Services (ATS) automation system has been completed at Mangalore

v On the airports side the revised charges for handling Non Scheduled Operators (NSOs) at airports which were not within the ambit of Airports Economic Regulatory Authority, has been implemented with immediate effect.

v With regard to major airports, the Airports Authority of India (Major Airports) Development Fee Rules, 2011 have been notified on 02.08.2011 in exercise of the powers conferred by clause (ii) of section 22A read with clause (ee) of sub-section (2) of section 41 of the Airports Authority of India Act, 1994 (55 of 1994)

v With regard to perceived security threats from the surrounding areas of IGI Airport including the hospitality area (Aerocity), a Committee has been constituted by BCAS consisting of representatives from CISF, MCA, MHA, R&AW, ARC, Delhi Police and AAI under the Chairmanship of Jt. Commissioner of Security (CA).

v Civil Aviation Requirement (CAR) dated 11th August 2011 regarding Flight and Duty Time Limitations and Rest Requirements of Flight crew engaged in scheduled/non-scheduled air transport operations and general aviation aeroplanes operations has been issued. The CAR is based on the report of the Committee formed by the Government to review the flight duty and time limitations of flight crew.

v Minimum Safety Requirements for Helicopter Landing Areas used on Regular basis has been issued and which lays down the minimum safety requirements for helicopter operating to/from helicopter landing areas within the Indian Territory outside and licensed aerodrome/heliports and procedures to be followed by Helicopter operations for such operations.

v Digital Automatic Terminal Information Service (DATIS) has been installed at Dehradun, Udaipur, Bhuntar airports, permitting automatic broadcast of Airport information to the Airlines/Pilots.

v AAI has installed an Instrument Landing System at Agra (Defence Airfield) commissioning flight check has been successfully completed.

v ILS has been commissioned at Delhi for runway 09.

v Guidelines in the form of air traffic management circular have been issued on mandatory rest of relief for Air Traffic Control Operators (ATCOs). This will help in reducing stress and fatigue of ATCOs and improving overall safety levels.

The Glamour of Doing the Deal  - Sumit Khetan

Hunger for resources have reached manic proportions in India. The country, chalking GDP rates that even the most optimistic of the economists could not have imagined a decade back, is firing on all cylinders. And in the wake of this unprecedented growth, the need for overseas acquisitions, of asset plays abroad is coming into sharper focus by the day.

I remember my first exposure to overseas resource acquisition in the early 1990’s – inward looking India could not even think of such bold steps and everyone, from the bankers to the lawyers drafting the papers were skeptical in capital letters. The funds were difficult to access and we had a Herculean task at hand, of just explaining the economics of the deal to men with closed mind sets.

Cut to the present. I was attending a seminar on Mergers and Acquisitions and hold your breath; the speaker was highlighting “Glamour” as one of the reasons why Indian companies are going in for overseas asset plays!   

Today, as I look at some of the acquisitions that have taken place or are in the pipeline, I am horrified. Horrified because, the same set of globetrotting, blackberry wielding p-y-t’s who were managing stupendous amount of money in funds, is today playing the acquisition “game”. Youngsters, hardly out of their teens, with stamps from the world’s premier institutions propelled by the glamour of “doing the deal”. Youngsters, who have never seen a coal mine from the insides, mavericks who, while impeccable with the figures, have none the less, no domain knowledge of the dynamics of the industry.

They go by shelling out the price of reserve for resource and have in their collective wisdom jacked up prices to such an extent that Millions have been replaced by Billions. The prices have gone through the pit head and forgive me for sounding like an alarmist; I foresee a day where the same fate that befell on the purveyors of global high finance is going to unfold on the acquirers.

One cannot buy a mine off the shelf. They do not come with the tags and the price lines printed either. And mind you, the soot bedecked mines that bring out the jewels from deep within the nature’s womb are anything but glamorous. The world’s resources are being depleted at an alarming rate and supply security has already become the critical factor in most industries. In the context, acquisition of resource blocks, wherever they may be, is becoming a matter of grave concern by the day. But does it mean that we shall put all caution to the air and follow a few buccaneers who are out to make hay? Does it mean that Indian Industry, traditionally known for their cautious ways, blindly follow a few men, who according to their self styled agenda are chasing the glamour of “doing the deal”?

They have done their “deals” in the debt markets peddling securities that were everything but secure. They have played their little games with the scrips. Now they have taken on a newer avatar – that of resource mobilizers. Beware. The streets will soon be littered with bodies – not of the pipers who wield the magic flute, but of the rats that scurry to get rich quick!    

(The Author is an expert in overseas acquisitions and is currently the CFO of the Concast Group of Companies)

Central PSEs to Set up Renewable Energy Projects

The Government has recently decided to ask all Central PSEs to set up renewable energy projects or voluntarily procure Renewable Energy Certificates (RECs) as a part of their Energy Management Programme for sustainable development. The scope of the Energy Management Programme has been expanded by including Renewable Energy as a specific activity to be pursued by the Central PSEs. The Department of Public Enterprises under the Ministry of Heavy Industries and Public Enterprises has issued Office Memorandum on 19th December, 2011 which, inter alia, calls for use of renewable energy. The central PSEs can implement carbon management plan by participating in any of the Missions under the National Action Plan under Climate Change. They may purchase Renewable Energy Certificates to offset their carbon footprints. This decision, which will become a part of the MoUs signed by the CPSEs and the administrative Ministries/ Departments is expected to accelerate the growth of the emerging market for RECs in the country and make it a valuable business model.

Welcoming the decision, Secretary, Ministry of New and Renewable Energy Shri Gireesh B. Pradhan said that the move is expected to give a big boost to the efforts of the Ministry, which has been providing incentives for setting up of the renewable energy projects in the country.