Agreement soon likely on India-Sri Lanka link

The Sri Lankan and Indian governments are likely to soon sign an MoU for the Rs.1,000 crore undersea transmission link project, to be implemented by Power Grid Corporation of India. The undersea/ marine survey is likely to be completed in six months and thereafter, a DPR will be prepared. The link will connect Madurai in Tamil Nadu to Anuradhapura in Sri Lanka's North Central Province. The transmission line is expected to be 400 kV HVDC overhead line from Madurai to the Indian coast (near Rameshwaram (139 km), a 400 KV HVDC cable from the Indian sea coast to the Sri Lankan sea coast (39 km), a 400 KV HVDC over-head line from the Sri Lankan coast to Anuradhapura/Puttalam (125km).

India, Oman signs agreement for investment fund

India and Oman on 09 November 2008 signed an agreement to set up an India-Oman Joint Investment Fund for investments in Infrastructure, Tourism, Health, Telecom, Utilities, Urban Infrastructure and other sectors. The fund will be started with $100 million as initial seed money, which will eventually be increased to $1 billion. The proposed agreement aims at tackling the economic slowdown, which is likely to decline to 7.5 per cent in the year ending 31 March 2009.

L&T is setting up facility in Oman

Larsen & Toubro (L&T) is setting up a heavy engineering manufacturing facility at an investment of $50 million (approx Rs.245 crore) at Sohar in Oman. The facility will deliver high pressure heat exchangers and reactors for the Hydrocarbon sector. Construction work has begun on the plant, which is likely to go on stream within a year. Once operational, the plant will save cost of transportation, as currently, the company has been exporting high pressure exchangers and reactors from its Hazira facility in Gujarat to cater to the markets in the Middle East.

Iran approves OVL's gas commerciality report

National Iranian Oil Corporation (NIOC) has approved the gas commerciality report prepared by OVL and its consortium partners for the discovery made in Iran's Farsi offshore block. According to estimates, the block holds recoverable gas reserves of about 12.5 tcf. In December 2007, OVL and its partners who include Indian Oil Corporation and Oil India had submitted the commerciality report to NIOC. The consortium plans to invest around $3 billion in developing the gas field, of which they have invested $90 million so far.

OVL bags Columbia oil block

ONGC Videsh (OVL), an overseas subsidiary of ONGC, has bagged an oil block in Colombia as part of a 50:50 consortium with local oil and gas firm Pacific Stratus. The oil block was awarded through an auction. The consortium holds exploration rights for this block and is soon likely to sign a contract for the same. For Phase-I of exploration, the company expects to invest $23 million (approx Rs.112.7 crore). The 550-km long block has a total area of 270,702 ha. The Columbian government managed to find takers for 22 blocks after it put 43 blocks on auction.

Total to pick stake in OMEL's Nigerian oil blocks

Total SA of France will partner with ONGC Mittal Energy (OMEL) by picking up stake in two deepwater oil exploration blocks -OPL 285, OPL 279- in Nigeria. While Total will acquire a 25.67 per cent in deep offshore block OPL 285, OMEL will take another 14.5 per cent state in OPL 279. OMEL will remain the operator for the two blocks. The Nigerian national oil company EMO Exploration & Production is also a partner in both the blocks. Presently, OMEL holds 60 per cent participating interest in OPL-279 and EMO holds 40 per cent. OMEL holds a 90 per cent stake in block OPL-285 and the rest is held by EMO.

BSNL earmarks $50 mn for overseas foray

Bharat Sanchar Nigam (BSNL) is keen on acquiring companies in Africa and Middle East. It has joined a seven-company consortium for Europe India Gateway and will invest about $50 million (approx Rs.24.5 crore) for an under-sea cable Atlantic link. BSNL's equal share JV with MTNL-promoted Millennium Telecom will also lay two under-sea cable links, one for the eastern side stretching between India to Singapore and another as a western cable link to Europe. The proposed project involves a total investment of $300 million (approx Rs.1,470 crore).

Petronet to expand in Papua New Guinea

Petronet LNG (PLL) is expanding its perspective in the Oil & Gas sector, by proposing to take participating interests in gas assets in Papua New Guinea. PLL is initiating talks with three operators in the country for five explored blocks that have gas resources. It has already completed the study of seismic data of the assets. Apart from participation in upstream activities, the company will also be looking at setting up a 5 million tpa liquefaction facility in Papua New Guinea. The company's Board has approved PLL's intent for investing in exploration and production, and the company will partner with Oil & Natural Gas Corporation for overseas equity.

Indonesian govt approves Nalco's proposal

Nalco has received approvals from the Indonesian government, to set up a 5 lakh tpa aluminium smelter and 1,250 MW captive power project in Indonesia, after the FDI proposal was cleared in September 2008. Nalco will invest Rs.17,000 crore for setting up the projects. The company has completed the feasibility study of the project and is likely to float a global tender to rope a consultant for undertaking DPR, proposed to be taken up by end-January 2009.

CVIL to acquire Appalachia coal block

Coal Ventures International (CVIL), a SPV of Coal India, NTPC, Rashtriya Ispat Nigam and NMDC, is working at acquiring the Appalachia coal block in the US. CVIL is scouting for coal blocks abroad, to secure coking coal supplies for existing and new steel projects. CVIL has also initiated talks with six merchant bankers - Royal Bank of Canada, Royal Bank of Scotland, Union Bank of Switzerland, Merill Lynch, Citi Bank and Deutche Bank, to assist them scout for coal assets in the US and Canada.

Tata puts eco-car venture on back burner

Tata Motors' eco-car project, entailing investment worth around 7.32 billion baht, in Thailand, has been put on hold due to the ongoing liquidity crunch. The company is unlikely to acquire a site for its greenfield plant. The Thai Board of Investment (BoI) had given its approval to Tata Motors in March-April, this year. Presently, the project application has been approved and the Thai government has extended the deadline for project commissioning.

Credit crunch hits Tata's overseas plans

Tata Power, a subsidiary of Tata Group is likely to pull out of its global acquisition plans, in the wake of ongoing cash crunch. The company has decided not to bid for Singapore-based PowerSeraya that has a generation capacity of 3,100 MW. Also, the process of buying overseas coal properties has been slowed down. Group companies of Tata Group are asked to halt all acquisition plans unless they were of strategic importance.

RITES' Iran railway project faces a roadblock

A multi-crore railway project proposed by India in Iran is facing a roadblock because of difference of opinion between the two countries on the method of project implementation. Iran favours BOT basis for project work, whereas India prefers Build- Lease-Transfer (BLT) basis. The BOT model seems unfavourable for the Indian consortium, as the traffic flow is estimated to be low. The model proposes projects to be owned by developers who enjoy rights to earn revenue from an asset over a specified period of time. In the BLT model, the contractor is paid a fixed amount in installments by the client. Rail India Technical and Economic Services (RITES), a subsidiary of Railways is undertaking the project, with a scope of work for electrification of track, modernisation of workshop, supply and maintenance of the locomotives in Iran.