India, Myanmar signs an agreement

On 02 April 2008, an agreement was signed to commence the Rs.536 crore Kaladan multi-modal transit-cum-transport project. It involves creating a 225-km waterway, linking Kolkata-to-Sittwe-to- Kaleutuwa-to-Myanmar Border (in Mizoram). Also, two roads viz., a 117 km stretch from NHI54 to Border, and a 52 km stretch from Kaleutwa to Boaorder will be constructed. Inland Waterway Authority of India will be the project development consultant. The Myanmar government's reservation on a BOT model has changed the paradigam for project development from BOT to BTU (build, transfer and use) basis.

India, Oman mull over JV for infrastructure projects

India and Oman have planned to set up a joint holding company, purely to invest in infrastructure projects of both countries. The company will have an initial corpus of $100 million, which would serve as the seed capital and later be scaled up. Major business houses and investment institutions are expected to contribute. India requires an investment of about $475 billion over the next five years to build infrastructure, to sustain high economic growth of 8-10 per cent. Besides, foreign investors have lined up more than $5 billion for investments in Ports, Airports, Energy and Infrastructure services.

India, Iran sign railway MoU

On 13 April 2008, India and Iran have inked a MoU to co-operate in Railway sector projects, beginning with the India-Iran-Russia railway line. The MoU will encompass imparting technical training to the personnel, railroad signaling projects, supplying locomotives and spare parts, setting up a joint working group and increasing cooperation with the International Union of Railways (UIC). The deal will incorporate investment plans for a new track, which will connect the free trade zone of Chabahar in southeast Iran and the city of Fahrej in central Iran.

RIL discovers oil at Yemen

Reliance Industries (RIL) consortium has discovered oil at Block 9 in Qarn and Qaymah, the two wells at Yemen. Block 9 has an output of 10,000 barrels of oil per day (bpd). It is operated by Calvalley Petroleum of Canada, which holds a 50 per cent stake in the block. Hood Oil, a subsidiary of the Yemen-based business group, Hayel Saeed Anam Group (HSA) owns 25 per cent, and RIL owns 25 per cent as participating interest.

Tata Steel commissions furnace at South Africa

Tata Steel has commissioned its first furnace at its ferrochrome plant at Richards Bay in South Africa. The plant is Tata Group's first overseas greenfield project. There were plans to regenerate some of the plant's energy requirements at the facility itself, requiring recouping its gas emissions and being operated in an environmental-friendly manner.

JK Tyre acquires Mexican company

JK Tyre & Industries is acquiring 100 per cent stake in Mexican tyre company Tornel. The deal is worth Rs.270 crore. The acquisition is being carried out through the SPV route and is expected to close by end-May 2008. Tornel has three operating tyre plants with a capacity of 6.6 million tyres. It manufactures the entire range of bias and radial tyres, including tyres for commercial vehicles and high speed passenger cars.

OVL qualifies for oil, gas contracts in Iraq

ONGC Videsh (OVL) has qualified to bid for oil and gas contracts in Iraq, being the only Indian company in the list of 35 firms. The list of qualified bidders includes four Chinese firms, CNOOC, CNPC, Sinochem and Sinopic Group; seven energy majors from US, including Chevron, Conoco Phillips, Exxonmobil, Marathon and Occidenal Petroleum; and others like BP, Eni, Inpex, Royal Dutch Shell and Total. OVL presently holds a license for Block 8 in Iraq, and has qualified to bid in future contracts.

GMR Energy picks up 5 per cent stake in South African mine co.

GMR Energy has picked up a 5 per cent equity stake in mining company Homeland South Africa (HSA), for $15 million, with an option to scale it up to 45 per cent stake for $145 million. It is learnt that if the option is exercised by 02 September 2008, the total 50 per cent stake will be worth $155 million. The deal will allow GMR an access to HSA's mining properties in South Africa including the Kendal Mine, Eloff coal mining project and the Northfield site reclamation project. The Eloff project is expected to have a production generation of 13 to 15 mln tpa, 50 per cent of which will be accessible to GMR, which it will employ in its coastal power projects in India. The transaction excludes Homeland Energy's interests in Homeland Uranium, Altona Resources and other projects under consideration in South Africa.

Indian oil companies sign pact for exploration blocks in Yemen

On 13 April 2008, Indian oil companies signed agreements for five hydrocarbon exploration blocks in Yemen. These blocks include Block Nos. 82 & 83 signed by Oil India (OIL) and Indian Oil Corporation (IOC) consortium with their foreign collaborators Medco Energy and Kuwait Energy Co., while Gujarat State Petroleum Corporation with their foreign collaborators Jubilant Enpro and Alkor Petro have signed a pact for Block Nos. 19, 28 and 57. It is learnt that the agreements will be sent for ratification to the Yemen Parliament, and eventually to the President of Yemen for his signature. The process is expected to be complete by June 2008.