On 11 January 2010, the Indian and the Bangladesh Government signed an MoU on cooperation in the power sector. Besides, the government has announced a $1 billion (approx Rs 4,500 crore) line of credit for Bangladesh.

The proposed credit line is likely to help Bangladesh in infrastructural development including building railway bridges, supply of locomotives and assistance in dredging. India is likely to help Bangladesh to build rail infrastructure that is expected to allow train services from Kolkata to Tripura.

In another goodwill gesture, the Union Government is likely to stop work on the Tipaimukh dam project in Mizoram which had caused resentment in Bangladesh. Further, Bangladesh has welcomed India's decision to provide it with transit facilities to Nepal and Bhutan.

PGCIL to sign agreement with Bangladesh

PGCIL is all set to sign an agreement for setting up a transmission link with Bangladesh. A formal MoU with the Bangladesh Government in this regard is likely to be signed shortly. However, financial modalities regarding the transmission link are yet to be discussed.

The Union Government and the Bangladesh Government have already signed an MoU on cooperation in the power sector for exchange of electricity to the tune of over 900 million units per annum depending on the availability, need and price. Once the transmission link becomes operational Bangladesh will be able to exchange power from power grids in West Bengal and Tripura.

PGCIL to invest in Nepal JV

The board of directors of PGCIL has approved the company's equity participation of 26 per cent in the JV company Power Transmission Company Nepal with Nepal Electricity Authority (48 per cent) and IL&FS (26 per cent) as other partners. The JV company envisages the construction of the 39 km Dhalkebar-Bathnaha section of the 400 kV double circuit Muzaffarpur-Dhalkebar transmission line, across the Indo-Nepal border.

The board also approved investment approval for transmission system associated with Simhadri-II thermal power project (Andhra Pradesh)-line connecting the generation to the grid at an estimated cost of Rs 38.41 crore, with commissioning schedule of within 18 months from the date of investment approval.

CCEA okays OVL's investment in Nigeria

On 14 January 2010, the CCEA gave its nod to ONGC Videsh (OVL) to provide funding support to ONGC Mittal Energy (OMEL) for OVL's share of expenditure of $359 million (approx Rs 1,633.45 crore) for oil exploration in two deep-sea blocks in Nigeria over the next five years.

OVL plans to invest $195 million (approx Rs 887.25 crore) in block OPL 279 and $164 million (approx Rs 746.2 crore) in block OPL 285 in Nigeria. The company had won the two blocks through ONGC-Mittal Energy (OMEL), a JV with Mittal Investments. OMEL is likely to spend $389 million (approx Rs 1,769.95 crore) on OPL 279 and $399 million (approx Rs 1815.45 crore) on OPL 285.

The CCEA approved OVL's share of investment in the two blocks. The entire requirement of OVL's share of investment is likely to be funded by OVL's own resources and/or by borrowings from domestic/international market, without any budgetary support from the government.

OMEL led consortium gives up block in Turkmenistan

ONGC Mittal Energy (OMEL), along with its consortium partners, has reportedly surrendered its offshore exploration block in the Caspian Sea in Turkmenistan. OMEL is a JV between ONGC Videsh and LN Mittal's Mittal Investment Sarl.

According to sources, the formalities for surrendering the block have been completed in September 2009.

OMEL had acquired 30 per cent stake in offshore exploration block 11-12 in Turkmenistan. The company had invested about $28 million (approx Rs 127.4 crore).

The consortium led by OMEL decided against going ahead with the next phase of the exploration as the prospects were not found to be very attractive.

The block was awarded by the Turkmenistan Government to Maersk Oil in December 2002. The consortium comprised OMEL (30 per cent participating interest (PI), Wintershall, Germany (34 per cent PI), and Maersk Oil, Denmark (36 per cent PI).

ONGC loses oilfield in Algeria

ONGC lost a bid for an oilfield in Algeria to a consortium led by China National Offshore Oil Corporation and Thailand's PTTEP.

ONGC had teamed up with Turkish Petroleum Corporation (TPAO) and UAE's Dana Gas to bid for the Hassi Bir Rekaiz acreage in Algeria's latest licensing round. Spain's Cepsa and Russia's Gazprom were the other bidders for the acreage. As per sources, Algeria awarded three permits in its bid round for 10 exploration areas that closed on 22 December 2009.

Hassi Bir Rekaiz in the Berkine Basin was surrendered by Australia's BHP Billiton after a 2005 award.

SVL Oil & Gas plans refinery in Malaysia

SVL Oil & Gas SDN BHD Malaysia, an associate company of Chennai based SVL Engineering Group, proposes to set up a 10 million tpa refinery in Malaysia, at an expenditure of Rs 17,000-18,000 crore.

SVL inked an agreement with the state of Perak in Malaysia on 22 January 2010. The project will be implemented in three phases - the study stage will commence immediately, Phase II will comprise the detailed engineering and commissioning work and expansion of the refining and addition of petrochemicals is to take place in the final stage. The refinery is to be built in 36-42 months and will be commissioned by mid-2014.

India inks pact for rail line in Sri Lanka

On 11 January 2010, the Union Government and Sri Lanka Government signed a commercial agreement for construction of a railway line between Omanthai and Pallai in Northern Province of Sri Lanka.

IRCON International, a Union Government undertaking, is likely to construct the railway line. The agreement is backed by the Union Government's line of credit for $185 million (approx Rs 841.75 crore).

Earlier, similar agreements have been signed for the rehabilitation of the Southern Railway corridor, which had been damaged in the 2004 tsunami. Under this agreement, India is assisting in the rehabilitation of the Colombo-Matara rail link through a line of credit of $167.4 million (approx Rs 761.67 crore). Work on the Colombo-Kalutara sector of this line is currently underway.

BHARTI AIRTEL has reportedly agreed to acquire 70 per cent stake in Bangladesh based Warid Telecom, a wholly owned subsidiary of the Dhabi Group.

Under the agreement, Bharti intends to make $300 million (approx Rs 1,350 crore) fresh investment in the company, thus taking the overall investment to $1 billion (approx Rs 4,500 crore). The proposed investment is likely to be for capacity expansion, coverage and innovative products.

The acquisition is expected to be partly by purchase of existing shares held in Warid Telecom International by the Dhabi Group for a nominal consideration and balance by way of issue of fresh shares at par.

Post-acquisition, the Dhabi Group will continue to remain a strategic partner in the company with balance 30 per cent stake.