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Transcript of India Newsletter 06.2011
PUBLISHED BY THE EMBASSY OF INDIA VIENNA YEAR 1 | ISSUE 6 | JUNE 2011
INDIA NEWSLETTER INDIA NEWSLETTER
PAG
E 6
TWO-PAGE SPECIAL REPORT
INDIAN STEEL INDUSTRY
TWO-PAGE SPECIAL REPORT
INDIAN STEEL INDUSTRY
2 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1
News
► ECONOMY
Growth. India‘s growth will pick up in 2011,
buoyed by positive corporate sentiment and
demand for infrastructure spending, accord-
ing to the Organisation for Economic Coop-
eration & Development (OECD), an inter-
governmental think-tank. OECD mentioned
that India‘s current growth rate is moving at
a sustainable rate, after the global reces-
sion, driven by a surge in private invest-
ment.OECD also recommended liberalisa-
tion of foreign direct investment in the retail
sector to promote competition and help
modernise supply chains, which will boost
the economy further.According to OECD,
India's real gross domestic product (GDP)
growth at market prices in 2010-11 fiscal is
at 9.6 per cent, which would be 8.5 per cent
this fiscal and 8.6 per cent in 2012-
13.Globally, the world‘s GDP is projected to
increase by 4.2 per cent this year and by
4.6 per cent in 2012. In the US, activity is
projected to rise by 2.6 per cent this year
and by a further 3.1 per cent in 2012, while
in the Euro Zone growth is forecast at 2 per
cent this year and the next.
Prognosis. The commerce and industry
ministry has set a target of achieving $500-
billion exports by 2013-14 (in 2010-2011,
exports were approx. $246 billion) by strate-
gising the country‘s foreign trade through
diversification of products and markets on
one hand and technological enhancement
on the other hand. It floated a strategy pa-
per for this purpose where it had recom-
mended certain specific areas such as skill
development, focus on research and devel-
opment and channelising incentives in a
proper manner.
► INDUSTRY/BUSINESS
Vibrant Gujarat 2011. Foreign delegates
looking for Gujarati investments mopped up
proposals worth 35,000 crore (approx.
Economy & Business
May 2011 Highlights
$7.8 billion) at the 5th Vibrant Gujarat Glob-
al Summit. Small and medium businesses
from the state signed agreements during
the twoday summit that concluded in capital
Gandhinagar on Thursday promising invest-
ments abroad. Most companies investing
abroad were smaller companies following
their larger state peers like Adani group,
Zydus, Gujarat NRE Coke, Kiri Dyes, Motif
Infotech, Jyoti CNC Limited, Hester Biosci-
ences. The biggies have overseas busi-
nesses in USA, Europe, Japan, Brazil,
South Africa, Australia, Indonesia, France,
Germany, Nepal et al. Now smaller compa-
nies are expanding their footprint in coun-
tries like Australia and Canada.
Tourism. The export of touristic know-how
from Salzburg is booming. The first Indian-
Austrian tourism school is to be opened in
Karwar, some 350 km away from Goa, al-
ready in January 2012. 80 students will
commence their studies. The Indian hotelier
wants to invest 17 million Euros in the be-
ginning. The ―tourism software‖ from Aus-
tria, such as admission proceedings, teach-
er training, curricula, master diplomas or
quality assurance, will be provided in coop-
eration with the university of applied scienc-
es Salzburg.
Wind Power. Gamesa Wind Turbines, the
Indian subsidiary of Spanish wind turbine
giant, Gamesa, announced the signing of
an order with Caparo Energy India (CEIL)
for the supply, erection and commissioning
of 2,000 MW of turbine capacity for wind
power projects to be set up in India.
Steel. German engineering technology ma-
jor Siemens AG plans to make India its
global hub for manufacturing key steel plant
equipment. The Kolkata-headquartered Sie-
mens VAI Metal Technologies — the steel
technology arm of the multinational — has
been designated to manufacture five prod-
ucts — ladle furnace, vacuum degasser,
billet caster, small and medium capacity
sinter plant and blast furnace — for global
clientele. Additionally, Siemens VAI will set
a new factory to make steel plant equip-
ment in India.
In the meantime, other news sources an-
nounced that Indian steel companies are
planning to form strategic tieups with global
majors such as ArcelorMittal and
ThyssenKrupp to access new markets, in-
stead of bidding for these large units which
will be expensive. Jindal Stainless and SAIL
are the two large stainless steel companies
that could likely look at adding larger and
bigger customers by collaborating with the
global majors, and also by adopting newer
technology as part of the global restructur-
ing in the stainless steel industry.
Pharmaceuticals. In a first-ever deal of a
novel biologic molecule developed in India,
Glenmark Pharma has entered into a li-
censing agreement with global major Sanofi
to develop and commercialize a monoclonal
antibody, GBR 500. This could involve po-
tential payments of $613 million over a peri-
od of five years if commercialized. GBR
500, used to treat chronic autoimmune dis-
orders, is the first biological compound de-
veloped and outlicensed by a domestic
company.
Nanotechnology. Wipro, in collaboration
with Belgian research institute IMEC is set-
ting up a high-end nanotechnology R&D
centre in Bangalore , which will focus on
developing next generation intelligence sys-
tems for use in the healthcare, energy, and
imaging and vision - including body area
networks, which patients can wear and walk
around, while real time data is directly
transmitted to hospitals or doctors.
Automotive. US auto-manufacturing giant
General Motors Co. is to invest $500 million
J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 3
by 2012 in the expansion of its production
capacity in India, reported Reuters. The in-
vestment will be undertaken by GM‘s Indian
unit, General Motors India Pvt. Ltd.
Auto Components Sourcing. French car-
maker Renault will source €80 million worth
components this year from India to feed its
overseas plants. The company sourced €35
million worth parts last year.
IT. Marking the biggest acquisition of the
India IT industry, Nasdaq-listed iGate an-
nounced the completion of Indian Patni
Computer Systems‘ acquisition and re-
vamping of the top leadership. The com-
bined entity will be known as iGate Patni.
Chemicals. Reliance Industries is drawing
ambitious plans to be a world leader in rub-
ber, and is investing up to $12 billion in the
chemicals business to tap the rapidly-
growing market for hygiene and healthcare
products.
India/Germany Acquisition. Ujala fabric
whitener maker Jyothy Laboratories has
bought Henkel AG's majority stake in its In-
dian subsidiary for $136 million, The deal
includes Henkel's entire portfolio that in-
cludes Henko and Chek detergents, Pril
dish cleaners and Fa deodorant, and rights
to the multinational's future launches.
India/Australia $2-billion Acquisition.
Adani Group-owned Mundra Port and Spe-
cial Economic Zone Ltd (MPSEZL) today
announced the $ 2 billion acquisition of Ab-
bot Point Port in Queensland, Australia, on
a 99-year lease, marking the beginning of
the company‘s expansion outside India.
France/India Acquisition. France based
ALTEN Group has forayed into India with
the acquisition of Chennai & Bangalore
based Calsoft Labs. ALTEN Group is a
leading European Engineering Consulting
Group headquartered in Paris.
India/Germany-Japan Acquisition. India's
leading software services exporter, Tata
Consultancy Services (TCS), is eyeing ac-
quisition opportunities in Germany and Ja-
pan in the healthcare sector, its chief exec-
utive said, as the company aims to expand
its geographical presence and product of-
ferings.
India/Sweden Acquisition. Aditya Birla
Group acquired Domsjö Fabriker, a leading
Swedish Speciality Pulp and Bio-refinery
Company, through its global companies
Thai Rayon Public Company Limited
(Thailand) and Indo Bharat Rayon
(Indonesia), for a sum of US $340 million
from a Swedish consortium.
India/Brazil Acquisition. Wipro Limited
has signed a definite agreement to acquire
an 80 per cent stake in Brazilian hydraulic
cylinder manufacturer RKM Equipamentos
Hidráulicos for an undisclosed amount. Ac-
cording to the agreement, Wipro will ac-
quire the remaining stake over the next
three years. RKM would be a part of
Wipro‘s infrastructure engineering division.
India/France Acquisition. The Pawan Ku-
mar Ruia Group said it had acquired a
France-based automotive sealing manufac-
turer, SEALYNX Automotive, having a turn-
over of $98 million in 2010, for an undis-
closed amount.
► INFRA-STRUCTURE
Investment. Adani Enterprises Limited
(AEL), flagship of Adani group, will invest
about US$10-12 billion over the next four-
five years to expand its domestic as well as
global footprints. The company has pro-
posed to invest around US$6.9 billion to
develop Galilee Coal Tenement in Queens-
land, Australia, which is among the largest
ever investment made by an Indian firm
there.
Investment II. Morgan Stanley Infrastruc-
ture Partners (MSIP), a $4-billion global in-
frastructure fund, has committed to invest
up to $200 million in a joint venture (JV)
with Isolux Corsán Concesiones in India.
Isolux Corsán Concesiones is an infrastruc-
ture concessions subsidiary of the $4-billion
Grupo Isolux Corsán, specialising in large
projects across construction, engineering
and concessions.Grupo Isolux Corsán will
bring in an equal amount in the JV, bringing
the total commitment to $400 million.
Floating Solar Plant. Tata Power said
that it will be building the country‘s first low-
cost, high-efficiency floating solar plant in
partnership with Sunengy, an Australian
company, which invented the technolo-
gy.The pilot plant of Liquid Solar Array
(LSA) uses concentraded photovoltaic
technology, but instead of mounting the
cells on a frame, it is made to float on wa-
ter, making it low-cost, cyclone-proof and
does not require any land acquisition.
Renewable Energy. To promote develop-
ment of renewable energy in India, Germa-
ny‘s Development Bank KfW, acting on be-
half of the German Government, signed a
loan agreement worth approximately €190
million with the Indian Renewable Energy
Development Agency (IREDA). The agree-
ment comprises an integrated package of
concessional loan and technical assis-
tance.
Power Plant. Larsen & Toubro (L&T) has
received an order valued at over €550 mil-
News
May 2011 Highlights (cont'd )
4 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1
lion from PPN Power Generating Company
for setting up a 3x360-mw-gas-based pow-
er plant at Nagapattinam District of Tamil
Nadu.
Solar Energy. Technological break-
throughs and economies of scale will make
solar power competitive in six years and
help India add 67,000 megawatts of solar
generation capacity by 2022 - more than
thrice the country's target, according to a
report by consultancy firm, KPMG. The re-
port says solar energy can contribute 7% of
the total power needs of the country by
2022, helping cut coal imports by 30% or 71
million tonnes a year. This would result in
saving of $5.5 billion in imports per year
from 2022 onwards, it said. Though India
may add up to 17 gigawatts (GW) of solar
power by 2017, the cumulative installation
between 2017 and 22 can jump three fold
to 50 GW, the consultancy says.
Turbo Power Generators. State-run power
equipment maker BHEL has announced the
successful manufacture and testing of the
country‘s first new series turbo generator of
600 MW rating. The generator shall be sup-
plied and installed at the upcoming North
Chennai Thermal Power Project of Tamil
Nadu Electricity Board (TNEB). With the
successful testing of the generator, a new
benchmark has been set by BHEL with re-
spect to indigenous manufacture of thermal
sets with supercritical parameters.
Tablets. Indian Firms rush to make low-
cost tablets. A bevy of Indian companies
are set to launch tablets at price points be-
tween $220 and $440 – half to one-fourth
of what the Apple product costs. Compa-
nies such as Spice Telecom, Bharti Tele-
tech, Karbonn and Lava Mobiles are hoping
to repeat their success in the mobile phone
market. Indian companies have wrested
one-third of this 150-million-units-per-
annum market from big boys like Nokia and
Sony Ericcson. BK Modi‘s Spice Mobile is
planning to launch a model for $330. New
Delhi-based Lava Mobiles is looking to
launch a seven-inch tablet for $380-400. It
has set up a team to develop India-specific
applications.
► INTERNATIONAL
Colombia. India signed a Double Taxation
Avoidance Agreement (DTAA) with Colom-
bia for avoidance of double taxation and
prevention of fiscal evasion with respect to
taxes on income emanating from either
country.
Australia. India and Australia announced
the launch of the formal negotiations of a
comprehensive economic cooperation
agreement (CECA) also known as Free
Trade Agreement (FTA) aimed at liberalis-
ing and broadening the base of merchan-
dise trade, removing non-tariff barriers and
encouraging investments between the two
nations. They also committed to doubling
the value of trade between the two coun-
tries within five years to $42 billion dollars.
New Zealand. India and New Zealand are
likely to conclude a free trade agreement
by the end of the fiscal to enhance ‘below-
potential‘ bilateral trade and promote in-
vestments. While last fiscal‘s two-way trade
reached $1 billion, the two sides propose to
triple to $3 billion by 2014. ◄
News/Article
May 2011 Highlights (cont'd )
Article
Solar power in India could cost the same as conventional electricity by 2019-20
More aggressive policy could see solar power prices decline at a rate of 5-7 per cent annually over the next decade, ensur-ing ―grid parity‖, or the point when solar power costs the same as conventional pow-er, as early as 2017-18, the report said. Such targets are well in line with India‘s plans to produce 20 gigawatts (GW) of so-lar power by 2022, though hurdles such as steep production costs, lack of data and
trained manpower remain.
―The pace at which the gap between solar power tariffs and the landed cost of power will be bridged will determine the pace at which solar power will take off,‖ the report said. It continues: ―While we expect grid parity for these consumer categories - do-mestic and agriculture - in 2019-20, based on state-specific and end-use specific cost economics, the adoption of solar is likely to
happen earlier.‖
The report said certain states such as Raja-
sthan and Gujarat in the west and Tamil Nadu in the south could reach grid parity earlier than others because of more favour-able policies and sunnier weather, thereby reducing costs. Also, conventional power costs are higher in these states as they are located far away from coal reserves. Coal, available in abundance in India, provides power at about 2 rupees (4 cents) a unit, compared to a kilowatt-hour of solar power at a range of 11 to 12 rupees. According to the Indian Solar Mission, introduced in 2009, solar power output by 2022 would be equivalent to one-eighth of India‘s current installed power base, helping Asia‘s third-largest economy limit its reliance on coal to
power annual growth of 8-9 percent.
The KPMG report said solar energy could contribute to about 7 percent of India‘s total power needs and displace about 16,900 megawatts (MW) of conventional power by 2022, and with additional solar capacity, could cut India‘s total coal imports by 30
per cent by that year.
―Furthermore, solar power can save 95 mil-lion tonnes of CO2 equivalent per annum by 2022,‖ it said, which would mean a cut of about 2.6 percent of the country‘s total
emissions in that year.
In 2009, India set a goal for slowing the growth of its emissions, saying it will try to rein in its ―carbon intensity‖ - the amount of carbon dioxide emitted per unit of economic output - by between 20 and 25 per cent by
2020, from 2005 levels.
India is now the world‘s No. 3 greenhouse gas polluter after the United States and China, and rapid economic growth and con-sumption are driving up production of plan-et-warming carbon dioxide from coal-fired power plants, transport and industry. Its current per-capita emissions stand at 1.8 tonnes, about a third of China‘s and less
than a tenth of the United States‘.
J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 5
Business
Article
Clean technology, a driver for India-Finland economic cooperation
Several Finnish companies are keen to form joint ventures with Indian firms to expand their operations in the country and promote the use of clean technology, the Nordic nation‘s Environment Minister Paula Lehtomaki said Thursday. ―Finnish companies are looking for partners in India. Some of them have already started their businesses with local partners. Many more are looking for partners to explore the possibility of further investment,‖ the
minister said.
―Finland is a leader in green technologies. We have right technology and know-how and are keen to share it with India,‖ Lehtomaki told IANS during an event organised by Cleantech Finland on the sidelines of the Delhi Sustainable Development Summit. She said Finnish and Indian government had pledged to work together to promote the use of environment friendly technologies and a key focus of such cooperation will be in
renewable energy and water management.
―The global challenges we are facing today can be turned into opportunities with the
right technologies and know-how. What is needed is enhanced cooperation and sharing of knowledge,‖ the minister said, adding green economy will be the focus of
the future.
―Green economy is essentially about integrating environmental aspects into all sectors of the society — and simultaneously boosting economic growth
by creating new green jobs.‖
Leading Finnish companies including The Switch, Kemira, Metso, Picosun and Ruukki — here at the aegis of Cleantech Finland — are keen to expand their operation in India through joint ventures in clean
technology: Following are their initiatives:
Kemira Oyj: This company has a joint venture with Hyderabad-based water infrastructure firm IVRCL for water treatment. It started in India in 2008 and invested nearly $10 million thus far, with
plans to scale it up manifold soon.
The firm is involved in desalination, potable water and waste water management
projects. The company will soon set up a manufacturing base in India as well, and combine their know-how with $1.5 billion
IVRCL‘s expertise in water infrastructure.
The Switch: This company, which supplies wind power and new energy applications, started business in India last year. The company plans to invest $50-$100 million in India in a couple of years and is looking at
partners for a joint venture.
Metso: This company has entered into a pact with Aditya Birla Group‘s Grasim Industries to supply recovery boilers by 2012. The boilers to replace the two ones at the company‘s rayon grade pulp mill at
Kumarapatnam in Karnataka.
Picosun Oy: This company is a manufacturer of state-of-the-art atomic layer deposition system, which help in depositing ultra-thin films on surfaces. These are used in solar and atomic energy plants. The company is also looking for
Indian partners.
Indian Solar Energy Companies seek Foreign Collaboration
It is learnt that lack of prior experience and equity in the capital -intensive solar power sector is driving the Indian investors and EPC contractors to join hands with experi-
enced cash rich foreign players.
The National Solar Mission envisages in-stalling 20,000 mw of generation capacity at an investment of about 300,000 crore (approx. $66 billion) in next one decade. Industry experts believe that at least a doz-en collaborations and joint ventures be-tween Indian and foreign players have tak-en shape in just 12 months and the trend will continue in the sunrise solar power sec-tor.From zero presence of solar in Indian
energy mix at least 2,000 mw of solar pow-er generation capacity underway in the country. In Gujarat alone, government has entered into power purchase agreements with 83 developers to commission 958 mw of solar power generation capacity. Central government's nodal arm for solar power trade National Vidyut Vyapar Nigam, signed PPAs with developers in January for 620
mw of capacity.
Commenting on the trend, Solar Energy As-sociation of Gujarat founder chairman Pra-nav Mehta said solar power sector is in nascent stage in India and there is lot of excitement and the project developers will
need experienced hands with proven rec-ords. Also, there are no precedents for the financial institutions for funding the solar project and hence project developers will
need investments from strategic investors.
The Indian market potential for Swiss enti-ties that are into renewable energy and wa-ter technology areas could reach up to $ 2 billion, according to a Swiss business group official. Many Swiss entities are into the fast-growing clean energy sector and are look-
ing for business opportunities in India.
A Swiss government-sponsored entity, Cleantech Switzerland provides an export platform for Swiss cleantech players. The market for clean energy in India is growing and such projects are estimated to have attracted private investments of around $ 4
billion last year.
Uwe Krueger, president, Cleantech Swit-zerland said that now there are projects,
related to water technology areas in India, worth about 20 million Swiss francs in the pipeline. Krueger was here as part of the business delegation that accompanied Swiss Head of the Federal Department of Economic Affairs Johann Schneider-
Ammann.
He noted that power generation from "decentralised sources" such as wind pow-er turbines and solar farms would provide huge investment potential in countries, in-cluding India, especially, in terms of up-grading the existing electricity grids. Clean-tech Switzerland has also entered into an agreement with the Confederation of Indian Industry (CII) to explore business opportu-nities in the clean energy sector for both
Indian and Swiss entities. The focus would be on renewable energies and efficiency, water and waste water utilisation and envi-
ronmental technologies.
Swiss Renewable Energy Companies see $2 billion market in India
6 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1
Business
Interview
Hollywood meets Bollywood
Andrew Cripps, President of Paramount Pictures
Looking at increasing its footprint in In-
dia, Paramount Pictures announced a
strategic alliance with Viacom 18 to dis-
tribute and market their releases across
the sub-continent. President Andrew
Cripps spoke to Varada Bhat on their al-
liance and plans for the Indian market.
Edited excerpts:
Q: You have joined hands with Viacom
18, what is your India strategy?
A: I think for us this association is about
growth. Alliance with a strong local partner
gives us the scope for national distribution
of our films, instead of going for several sub
-distributors. We can build our movie mar-
keting strategies and do promotions activi-
ties while leveraging media assets of Via-
com 18 such as MTV, VH1 and other inter-
net platforms.
Q: What's your view about the Indian
market in the context of Hollywood mov-
ies?
A: Personally I feel the market is on the
path of growth. One can no longer make
money with action and horror movies. Part
of this is because the middle class has de-
veloped taste for different genres of mov-
ies. For instance, our movie No Strings At-
tached did exceedingly well here a few
months back. We compare this market to
Russia and Brazil 10 years ago. We have
seen those markets expand rapidly in a
short span. Now, Russia is the sixth biggest
territory we have internationally. I see the
same characteristics in the India today. For
instance, Transformers is now being re-
leased with 550 prints in four languages. In
the next four-five years, India should be in
the top 10.
Q: After Avatar, there has been a 3D
rush. What do you think is the future of
this technology?
A: 3D is here to stay. 2010 was certainly
the year when 3D had a major impact on
the box office, with eight of the top 15 inter-
national titles (presented) in 3D. But, as an
industry, we have to be careful what movies
we make in 3D. Like Transformers is the
perfect example. This way the audiences
will not only recognise, but also embrace
the technology. And they are willing to pay
a premium for 3D because it is a whole new
experience.
Q: So far Paramount Films operated
here as Paramount Films India ? What
happens to that?
A: We have joint venture with Universal
Studios called United International Pictures
(UIP). We are working with our partners
Universal to understand their plans for the
company. They have to make a decision on
what they want to do in the next couple of
months.
Q: Do you plan to enter into co-
production deals with film production
houses such as Sony and Warner ?
A: This is something we are definitely going
to look at. Our short-term objectives are
proper launch for the venture and focus on
the marketing of the movies. If there are
other opportunities from this alliance, we
will look at it.
Q: Do you plan to have theme parks
here as well?
A: You never know. India is a huge country
with a lot of consumers
Q: From this alliance, would you also be
looking at distributing and marketing
Viacom 18 motion pictures releases
globally?
A: Yes, definitely. There is huge audience
of Indian films. Wherever we can, we will
allow them to use our global distribution in-
frastructure.
QUOTE OF THE MONTH
"India‘s policies of trade and
investment liberalisation are
reintegrating it into the world
economy, allowing it to regain an
influence it had three centuries ago"
by George Osborne
UK Chancellor
J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 7
Industry
Sector Close-up
Steel Industry
Sector Structure/ Market Size
Steel industry has a major role to play in
the economic growth of India. With new
global acquisitions by Indian steel giants,
setting up of new state-of-the-art steel
mills, modernisation of existing plants,
improving energy efficiency and backward
integration into global raw material
sources, India is now on the centre of the
global steel map. Consumption of steel in
the construction sector,
industrial applications, and
transport sector has been on
the rise and special steel
usage in engineering industries
such as power generation,
petrochemicals and fertiliser
industry is also growing.
India has retained its position
as the 5th largest producer in
2010 and recorded a growth of
11.3 per cent as compared to
2009. India has also emerged
as the largest sponge iron/
direct reduced iron (DRI)
producing country in the world
in 2010, a rank it has held on
since 2002. Sponge iron
production grew at a CAGR of
11 per cent to reach a level of 20.74 million
tonne (MT) in 2009-10 as compared to
14.83 MT in 2005-06. India is expected to
become the second largest producer of
steel in the world by 2015-16, on account
of growing steel demand, rich resources
base of iron ore, skilled manpower and
vast experience of steel making and the
huge capacity expansion planned and
being executed in the steel sector.
With the expanding consumer market,
Indian steel industry is likely to receive
huge domestic and foreign investments.
Nearly 222 memorandums of
understandings (MoUs) for planned
capacity of around 276 MT have been
signed between the investors and various
State Governments, mostly in Orissa,
Jharkhand, Chhattisgarh and West Bengal.
India has recorded a growth of over 8.6 per
cent, producing 6.35 MT of steel in March
2011 as against 5.85 MT in the
corresponding month in 2010, according to
World Steel Association (WSA).
Steel exports has increased by 17.3 per
cent as it reached an estimated 2.46 MT,
while steel imports were at an estimated
5.36 MT, a growth of 2.8 per cent in 2010.
Production
Crude steel production was registered at
51.57 MT during April-Dec 2010 in the
country as per Joint Plant Committee
(JPC). The production is expected to be
nearly 110 MT by 2012-13.
Crude steel production grew at a
compound annual growth rate (CAGR) of
8.4 per cent during the five years, 2005-06
to 2009-10. The crude steel performance
accounted for 31 per cent of the total crude
steel production in the country during 2009-
10, contributed largely by the strong trends
in growth of the electric route of steel
making, particularly the induction furnace
route, which was a key driver in the growth
of the segment. In case of total finished
steel (alloy + non-alloy), production for sale
was recorded at 47.30 MT, a growth of 7.9
per cent during Apr-Dec 2010.
Steel Authority of India (SAIL) Ltd has
planned to enhance its hot metal
production capacity from the
level of 13.82 million tonnes
per annum (MTPA) to 23.46
MTPA under its current phase
of expansion and
modernisation which is
expected to be completed by
financial year 2012-13. In the
next phase, SAIL would
increase its capacity further to
26.18 MTPA.The indicative
investment for current phase is
about US$ 13.28 billion.
Additionally, approximately
US$ 2.21 billion has been
earmarked for modernisation
and expansion of SAIL Mines.
NMDC Ltd plans to increase
the production of iron ore from
the present level of about 24 MT to 40 MT
by 2014-15. Besides, setting up a 3 MTPA
Integrated Steel Plant at Nagarnar in
Chhattisgarh. The environmental clearance
for the plant has been accorded by Ministry
of Environment and Forests (MoEF).
Major Developments
The Indian steel market has witnessed the
announcements of mega expansion plans
from leading domestic producers in the
form of greenfield and/or brownfield
projects. Furthermore, with an expanding
consumer market, the steel industry in
India is likely to receive huge domestic and
foreign investments.
8 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1
Industry
Steel Industry (cont‘d)
Posco, South Korea, plans to set up a 12
MT integrated steel plant in Orissa.
Mittal Group's announced plans to set up
their 12 MT integrated steel unit in Orissa.
Tata Steel Ltd (TSL) has taken over US$
12 billion Anglo-Dutch giant Corus Group
Plc, transforming the former into a
significant global steel producer, which
may well be regarded as a benchmark
even in the history of the Indian steel
industry.
Bhilai Steel Plant (BSP), the flagship entity
of the Steel Authority of India Limited
(SAIL), has secured a fresh order of
exporting rails to Sri Lanka. The order of
about 14,000 tonnes is for the UIC-60
grade of rails. Earlier, the company had
received an order to supply 6,500 tonnes of
rails to Sri Lanka.
The Essar Group, through Essar Africa
Holdings Ltd (EAHL), has bought 54 per
cent stake in Zimbabwe‘s state-owned
steelmaker, Zisco. The total deal is valued
at US$ 750 million.
The State Level Single Window Clearance
Authority (SLSWCA) in Orissa has cleared
four investment proposals in the steel
sector worth US$ 632.86 million.
Orissa through its nodal agency for land
acquisition, Industrial Infrastructure
Development Corporation of Orissa Ltd
(Idco), has allotted 20684.06 acres of land
to steel companies that have signed
memorandum of understanding (MoU) with
the State. The steel sector in Orissa has
already recorded an investment of US$
11.64 billion till the end of December 2010.
Tata Steel Ltd (TSL) and Nippon Steel
Corporation (NSC) have signed a joint
venture (JV) agreement to setup India's
first continuous annealing and processing
line (CAPL) for the production of 600,000
tonnes per annum of automotive cold-rolled
steel at Jamshedpur, India. TSL will hold
51 per cent and NSC will hold 49 per cent
of equity capital of the JV Company. The
project will be set up at a capital cost of
approximately US$ 509.08 million and is
expected to come on stream in 2013.
NMDC Ltd has signed a pact with Russian
steel and mining major Severstal to set up
a 5 MTPA steel plant in Karnataka as part
of a strategy that aims to boost the
company's revenue by increasing presence
in value added product chain. It has also
set up a 3 MTPA integrated steel plant at
Nagarnar, Chhattisgarh, which is likely to
be commissioned in 2014.
It has also set up a 3 MTPA integrated
steel plant at Nagarnar, Chhattisgarh,
which is likely to be commissioned in 2014.
Essar Steel has commissioned a state-of-
the-art Compact Strip Production (CSP)
mill with a capacity of 3.5 MTPA. The CSP
mill is a part of the company's expansion
plans of raising the steel production
capacity at Hazira at a cost of US$ 3.03
billion. The company has also
commissioned two iron making units–a
blast furnace with a capacity of 1.73 MTPA
and a DRI unit of 1.74 MTPA, a conarc
furnace of 2.5 MTPA, besides
commissioning India‘s first 5-metre wide
plate mill with a capacity of 1.5 MTPA and
a pipe mill with an annual capacity of 0.6
MTPA.
Sesa Goa, a Vedanta Group company, has
acquired the assets of Bellary Steel and
Alloys (BSAL) for US$ 48.94 million in a
competitive bidding process conducted by
Industrial Financial Corporation of India
(IFCI) Ltd.
JSW Steel plans to infuse US$ 83.54
million in Ispat industries in the next 2-3
years. JSW Steel plans to invest US$
16.86 billion over the next 10 years to ramp
up capacity from 7.8 to 32 MTPA through
greenfield and brownfield projects.
Government Initiatives
The current policy regime allows 100 per
cent foreign domestic investment (FDI) in
steel sector, as per Mr Beni Prasad Verma,
Minister of State for Steel (Independent
Charge). Some multinational steel
companies like POSCO and Arcelor Mittal
have signed MoU with respective to State
Governments to set up steel production
units in the country. The total proposed
capacity under FDI is about 45 MT.
Some of the initiatives undertaken by the
Indian Government in the 11th Plan (2007-
12) to promote the steel sector include:
The Planning Commission has approved a
total outlay of US$ 9.5 billion for the
development of the iron and steel sector.
The scheme for the promotion of research
and development in the iron and steel
sector has been approved with a budgetary
provision of US$ 24.6 million to initiate and
implement the provisions of the scheme.
National Steel Policy 2005 is under review
and the process for drafting a 'National
Steel Vision' has since been initiated.
Five year strategy paper was prepared for
promotion of Steel sector in the country.
Moreover, in the Union Budget 2010-11,
the Government has allocated US$ 37.4
billion to the infrastructure sector and has
increased the allocation for road transport
by 13 per cent to US$ 4.3 billion which will
further promote the steel industry.
Ministry of Steel in association with UNDP
is carrying out a project on ‗Removal of
Barriers to Energy Efficiency Improvement
in Steel Re-rolling Mill Sector in India‘ at an
estimated cost of US$ 14.03 million. The
project seeks to reduce greenhouse gas
emissions by providing technical
assistance to small and medium sized steel
re-rolling mills in the country to enable
them to adopt more energy efficient and
environmentally friendly technologies.
J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 9
Trade Shows
WHAT
Exhibition on Technologies for Automotive Manufacturing
WHEN
June 10-12, 2011 WHERE Chennai
MORE INFO
www.autoengineeringshow.com
WHAT Expo on cutting edge research and technologies in the field of electric
and plug-in hybrid vehicles
WHEN August 10-12, 2011
WHERE New Delhi
MORE INFO www.greenautomobil.com
WHAT International Exhibition on Telecommunication and IT
WHEN July 29-August 1, 2011
WHERE Bangalore
MORE INFO www.tradeshows.tradeindia.com/
indiaconnect2011
WHAT
Exhibition on Agriculture, Farm
Machinery, Equipment and Agri
Processing Technology
WHEN
September 09-11, 2011
WHERE
Bangalore
MORE INFO
1 0 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1
Profile
Ispat Industries Limited (IIL) is one of the leading integrated steel
makers and the largest private sector producer of hot rolled coils
in India. Set up in May 1984 , IIL has steadily grown into a $2
billion-dollar company, a corporate powerhouse with operations in
iron, steel, mining, energy and infrastructure.
Headquartered at Mumbai, the company's core competency is the
production of high quality steel, for which it employs cutting edge
technologies and stringent quality standards. It produces world-
class sponge iron, galvanized sheets and cold rolled coils, in
addition to hot rolled coils, through its two state-of-the art
integrated steel plants, located at Dolvi and Kalmeshwar in the
state of Maharashtra. The sprawling 1,200 acres Dolvi complex
houses the 3 million tonne per annum hot rolled coils plant, that
combines the latest technologies - the Conarc process for steel
making and the compact strip process (CSP) - introduced for the
first time in Asia.
The complex also has a 1.6 million tonne per annum sponge iron
(DRI) plant, which was commissioned in 1994 as the world's
largest and most efficient gas-based single mega module plant.
Moreover, the Dolvi complex is home to a 2 million tonne blast
furnace and also boasts a mechanised multi-functional jetty
situated nearby, that facilitates the automation of raw material
handling. A new 2.24 million tonnes per annum sinter plant, a
1260 tonnes per day oxygen and a new electric arc furnace have
also been commissioned at IIL Dolvi.
Ispat is the only steel maker in India and among a few in the world
to have total flexibility in choice of steel making route, be it the
conventional blast furnace route or the electric arc furnace route.
Its dual technology allows Ispat the freedom to choose its raw
material feed, be it pig iron, sponge iron, iron ore, scrap or any
combination of various feeds. It also has total flexibility in choosing
its energy source, be it electricity, coal or gas.
Technology and innovation have always been the cornerstones of
IIL's quest for excellence and its state-of-the-art plants facilitate
the company's mission to attain and sustain market leadership,
through technological and product superiority.
With investments of over US $2 billion, IIL is the seventh largest
Indian private sector company in terms of fixed assets. It aims to
consolidate its market leadership in the national specialty steel
market by capitalising on the proximity of its manufacturing
facilities to major consumers of flat steel products in Maharashtra,
while increasing its presence in international markets by using its
convenient port location. In the short span of time since its
inception, Ispat Industries has steadily raised the bar. As it rapidly
forges ahead on, IIL has successfully reinforced its position as
market leader, while simultaneously making technological
breakthroughs and setting even higher standards for itself.
Big Players
Ispat Industries
Emerging SME
Microqual Techno Ltd. Microqual Techno Ltd., for over the last decade, has been a
pioneer in manufacturing and supply of products, services and
solutions impacting the global communications world. Microqual‘s
state of the art manufacturing facilities in India (3 Plants), backed
up with global technology, have been set up for manufacturing the
complete range of products for RF (Radio Frequency) cables,
transmission lines, in-building solutions materials, tower
accessories, electrical and mechanical site materials and a range
of RF antennas. Microqual has been awarded ―The SME of the
Year‖ & ―Best Infrastructure Company‖ by CNBC-TV18 and was
ranked among the top fifty fastest growing technology companies
in India by Deloitte and Touché for the last four years.
Ispat Industries Corporate Office
Address: 7th Floor, Nirmal, Nariman Point, Mumbai 400 021
Phone: +91 22 66542222 / Fax: +91 22 22855519 / Email: [email protected] / Web: www.ispatind.com
Microqual Techno Ltd.
Address: 3rd Floor, Techweb Center, Oshiwara Behrambaug, Off New Link Rd., Jogeshwari (W), Mumbai - 400 102 (India)
Phone: +91 22 40741515 / Fax: +91 22 40741590 / Web: www.microqual.com
J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 1 1
Tourism
With foreign influences as disparate as Chinese and Portuguese,
Arab and Dutch, Kerala is the spice coast of India. Edged by a
thread of unbroken beachline, the state‘s heart is composed of in-
tensely green paddy fields and a unique network of rivers and la-
goons. Upland Kerala, relatively little visited, is composed of hills
thickly wooded with teak and rubber. It is here that Kerala‘s most
precious spices are grown in carefully nurtured plantations: carda-
mom, pepper and nutmeg.
Thiruvananthapuram (Trivandrum), the state capital, an interna-
tional airport, has an exceptionally fine museum set in an amuse-
ment park. 16 km away is Kovalam, one of the most popular
beaches in the country. Many visitors stay at Kovalam, driving into
Thiruvananthapuram for sightseeing trips, rather than the other
way round. Sri Padmanabhaswamy temple in Thiruvananthapu-
ram, and Padmanabhapuram Palace, a short drive away, are im-
portant monuments.
Cochin, with a fine natural harbour, has been Kerala‘s center of
maritime trade for innumerable centuries. Along the harbour, rows
of antediluvian Chinese fishing nets indicate Kerala‘s trade with
China, just as buildings along the water‘s edge testify to the erst-
while presence of Dutch and Portuguese colonisers. Jewtown,
complete with an immaculately preserved synagogue, has a fla-
vour all its own, while Tripunathura, at the other end of the city,
has many traditional houses with central courtyards. Kerala‘s mul-
titude of faiths – Islam, Judaism, and a host of sects of Christianity
and Hinduism – all coexist harmoniously in a state that is known
for its Marxist inclinations! Kerala‘s traditions of dance forms,
which originated from temple worship, can be witnessed at regu-
larly held performances. Lecture-demonstrations of the most spec-
tacular of these – Kathakali – are held daily at many centres in Co-
chin. Teyyam, at once an act of worship and visual feast; temple
festivals complete with caparisoned elephants; Kalaripayata, the
indigenous art of self defence; all are a part of Kerala‘s remarkable
heritage of performing arts, and can be witnessed at various cen-
tres in Cochin and Thiruvananthapuram. A five hour drive from Co-
chin leads into thickly forested hills, past rubber and spice planta-
tions, and into southern India‘s tea growing district headquartered
at the charmingly old world Munnar. From Kottayam toAlleppey is
a world of palm fringed waterways, a route which is covered by
motor launch. Elderly sailboats, long barges transporting tons of
coconuts and tiny skiffs used to transport children to school are
common sights on these backwaters.
State Profile
Kerala
IndiaTourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt
Tel: +49 (69) 242949-0 / Fax: +49 (69) 242949-77 www.india-tourism.com / [email protected]
MORE INFO AT KERALATOURISM.ORG
Alumkadavu, Kollam - Kerala
J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 1 2
India in Austria
Agenda
June 2011
Published by the commercial section at the Embassy of India, Vienna. www.indianembassy.at
Contact: [email protected]
Talk-Series "Zu Gast bei Elisabeth Al-Himrani" No. 78 Mag. Ilja Steffelbauer, University Lecturer June 9, 2011, 19.00 Hochhaus Herrengasse 6-8, Stiege I, 10. Stock, Tür 57 Free Admission.
"4 Welten in einer Nacht" Palace Schallaburg
Performance by Radha Anjali , June 12, 2011, 19.00 Schloss Schallaburg More Info and Tickets at www.fabelhaft.at/p_4welten.htm
Seminar by Prof. Dr. Saskia Kersenboom in Zusammenarbeit mit dem Institut für Südasien-, Tibet- und Buddhismuskunde der Universität Wien
June 17, 2011, 19.00 More info at www.istb.univie.ac.at
Dance Workshop with Prof. Dr. Saskia Kersenboom June 17-19, 2011 Natya Mandir Studio, Börseplatz 3, 1010 Wien More Info and Tickets at http://www.natyamandir.at
The Ministry of Overseas Indian Affairs‗ (MOIA)
constant endeavour is to further strengthen the
strong bong between India and its diaspora,
address concerns and create an enabling
environment, whereby Overseas Indians engage
with, and benefit from, the opportunities in a
rapidly growing economy.
The Overseas Indian Facilitation Center (OIFC)
set up by the MOIA, currently runs activities such
as: query addressal on various issues faced by the
NRI‗s & PIO‗s, an online business networking
portal, projection of member States‗ projects, road
shows through investors interactive meets &
market place forums in India and overseas.
The MOIA can be reached online at the address
www.moia.gov.in . Overseas Indians can take
enjoy the services provided, get updates on the
latest news by subscribing to their e-newsletter
"India Connect", access publications of special
interest to NRI‗s and PIO‗s, take advantage of
online business networking, and more.
Overseas Indians
OIFC: India and its diaspora
Did you know?
Classic Indian Concert with the group "Sangeeta" Jun 14, 2011, 19.30 - Natya Mandir Studio Börseplatz 3, 1010 Wien More Info and Tickets at
[email protected] or 0676 312 57 36
All Kinds of Indian Food
Intervention am Jausenexpress in Payerbach June 4 and 18, 2011 July 2, 16 and 23, 2011 Hauptstraße 1, 2650 Payerbach
More Info and Tickets at http://www.viertelfestival-noe.at
BOLLYWOOD@MQ- ImPulsTanz Festival Opening Jul 15, 2011, 21:15 MuseumsQuartier Main Yard - Bollywood star-Choreographer Terence Lewis
and his company open this years’ ImPulsTanz festival with “Jhoom“. The show combines typical Indian Bollywood pop-choreography with Indian contemporary dance, and deals with extremities within Lewis home country and the culture industry, in which he is a star himself.Free Entrance!
On the celebration of Rabindranath Tagore‗s 150th birth anniversary,
the Reserve Bank of India launched the 150 Rupee
coin.
India's longest tunnel will be ready by 2012. The rail link between Kashmir valley and the rest of the country will be
completed by December 2012 once India's longest tunnel at 11 km — connecting Qazigund with Banihal — is constructed within
a year.
The tunnel, one of the world's largest and deepest, will pierce through the Pir Panjal range below snowline, which stands like a
wall between the Valley and Jammu.
Railways is using state-of-the-art Austrian tunnelling method to construct T80 that involves integration of surrounding
soil formations into a ring-like support structure.