India to develop deep-sea port at Paira
India proposes to develop deep-sea port at Paira in the southern coastal district of Patuakhali in the Bay of Bengal on a public-private partnership (PPP) basis and form a consortium with Bangladesh, sources said.
Building a regional shipping hub for transit trade through the Bay of Bengal is also a part of the government’s plan.
These issues would come up for discussion during the Prime Minister, Mr Narendra Modi’s forthcoming Bangladesh visit.
Bangladesh has been trying to build a deep-sea port for the last few years to cope with its growing pace of cargo movement. The country’s port usage is growing at 12 per cent a year.
The technical committee of the Paira sea port has estimated the construction cost at around 250 billion takas, including building a 34-km-long link road. The entire project is likely to be completed in five to seven years, it is learnt.
Adani Group mulling to bid for Sindri urea plant in Jharkhand
Billionaire Gautam Adani-led Adani Enterprises is mulling to bid for the now-shut Sindri urea plant in Jharkhand as the USD 9.4 billion group plans to foray into the fertiliser sector.
The commodities-to-infrastructure group is seriously considering to participate in the tender which the government is likely to float soon for revival of the urea plant, sources said.
The plant, which has been lying shut since 2002, may require at least Rs 6,000 crore investment for revival.
Sources said senior officials of Adani Group recently met Fertiliser Ministry officials to show interest in revival of Sindri fertiliser plant.
When contacted, Adani Group spokesperson declined to comment.
Adani Group, founded in 1988 for import and export commodities, has grown into a USD 9.4 billion enterprise with interests spanning from coal to powerports to logistics and infrastructure.
Sources said in their meetings with government officials, Adani group executives have shown keen interest in Sindri fertiliser plant revival.
The Cabinet had earlier this month approved revival of the closed urea plant at Sindri in Jharkhand by selecting an operator through open bidding.
The decision for bidding was taken after SAIL withdrew from its earlier proposal to revive Sindri plant in joint venture with National Fertilisers Ltd (NFL). Fertiliser Corporation of India Ltd (FCIL’s) Sindri unit was the first PSU in independent India. The unit is lying defunct and is not in operation since 2002.
Sources said Sindri plant assumes importance as there is no functional urea unit in the eastern India except two small units at Namrup in Assam.
Mounting coal piles add to doubts on India growth passing China
India will probably report on Friday that it’s the world’s fastest growing major economy. Yet unused coal piling up at power plants across the country tells a different story.
Plants monitored by the power ministry had an average stock of 20 days as of 24 May, compared with 12 days last year. Gross domestic product (GDP) expanded 7.3% in January to March, slightly down from the prior quarter but faster than China’s 7% growth, according to the median of 28 economist estimates in a Bloomberg News survey.
The power numbers, along with subdued lending and slower consumer sales, signal Asia’s third-largest economy may not be firing on all cylinders. The conflicting data make it harder for Reserve Bank of India (RBI) governor Raghuram Rajan to decide whether to cut interest rates next week.
Rajan, who said earlier this week that growth was “still slow in picking up,” is among economists who have noted capacity underutilization to question the validity of the GDP numbers, which have been calculated under a new method since January. Spare capacity in factories raises doubts about the efficacy of interest-rate reductions to stimulate growth because owners lack the incentive to invest more.
“A lot of new generation capacity has come up and still the coal is lying unused,” said Salil Garg, a New Delhi-based director at India Ratings and Research, the local unit of Fitch. “That’s because of lack of industrial activity and financial problems of distribution companies.”
While India produced more coal and added 22.6 gigawatts of additional power capacity in the past year, it hasn’t yet reached the end user. Generation in April dropped 1.2% from a year ago, indicating a fall in plant utilization.
Part of the power problem is that state electricity distributors are so burdened with debt that they’re unable to pay for as much electricity as their customers need.
That explains how a state like Uttar Pradesh, India’s most populous, has a power deficit of 11.5% even as coal piles up, according to power ministry data. The province witnesses outages of up to 6-8 hours daily during summer months.
“Capacity utilization remains low in several sectors,” said Anubhuti Sahay, an economist at Standard Chartered Plc in Mumbai. “Leverage is also very high and the banking sector is not in a very good position to go and fund higher investment.”
The problem has been exacerbated by monopoly state-owned miner Coal India Ltd, which boosted production by 6.9% to 494.23 million tonnes in the year to 31 March. The fall in global coal prices has also increased imports by 34% to 242.40 million tonnes. Coal fires 60% of India’s electricity generation capacity.
India is operating with a negative output gap, according to Moody’s Analytics. While growth is seen slowing from 7.5% in October-December, the economy should’ve expanded 9% if it were operating at full capacity, economist Faraz Syed wrote in a report on Wednesday.
Paradip Port Trust (PPT) and JSW Paradip Terminal Private Limited (JSWPTPL) today signed the concession agreement to develop a new iron ore berth for handling of iron ore exports at Paradip Port on Built Operate and Transfer (BOT) basis. M.T. Krishna Babu, Chairman, PPT signed the agreement on behalf of PPT and B.V.J.K. Sharma, JMD & CEO signed on behalf of JSWPTPL. Established in 1965, PPT has grown to become second largest among the major ports in India, handling about 71 million tones cargo last financial year (FY2015). JSW Group is an USD 11 billion conglomerate, part of the O.P. Jindal Group, having substantial presence across core sectors of India’s economy like steel, energy, infrastructure and cement. JSW Steel Ltd is the flagship company of JSW Group having installed steel production capacity of 14.3 million tonnes per annum (MTPA). JSW Energy Ltd has installed capacity of 3140 MW with another 8630 MW capacity under various stages of development. JSW Cement Ltd has installed capacity of 6 MTPA.
Further, with installed capacity of over 33 MTPA, JSW Infrastructure Limited(JSWIL) as a logistics vertical of JS group handled about 24 MTPA cargo last year across its port facilities in Dharamtar Port near Mumbai, South West Port terminals at Goa and Jaigarh Port at Ratnagiri, Maharashtra. JSWIL has given direct and indirect employment opportunities to about 1500 people in addition to business avenues to local entrepreneurs at its port locations. The project ‘Development of New Iron Ore berth for handling of Iron Ore Exports at Paradip Port on Built Operate and Transfer (BOT) basis’ envisages construction of iron ore handling facilities capable of handling exports up to 10 million tonnes per annum at Paradip Port. The project includes a berth for handling ships upto 1,25,000 DWT. The length of the berth will be 370 m and dredged to (-) 17.1 m. Iron Ore loaders of 4000 T/hrs with conveyors, drive house etc. has been planned to handle such quantity of exports.
The iron ore stream will have a pair of wagon tipplers handling 40 wagons per hour in heavy axle Wagons carrying 75 tonnes. The conveyance of ore from tippler to plot shall be in two stream of conveyor of capacity 4000 T/hrs. Materials will be stacked by 2 nos. stackers of capacity 4000 TPH each on about 82,125 Sqm. storage area. Loading to ship will be by two Reclaimers of 4000 TPH through the loaders at berth. The agreement signed between PPT & JSWPTPL provides for concession period of 30 years vide which JSW would develop, operate and maintain modern mechanized terminal of 10 MTPA capacity at an estimated project cost of Rs. 740 crores. JSW would invest about Rs. 605 crores while balance would be contributed by PPT towards providing supporting project infrastructure facilities. The environment-friendly and efficient terminal operations would provide employment and entrepreneurship opportunities for locals and would actively contribute to the socio economic development of Paradip region.
This post was written by Atlantic Admin