Lanco, Bukit eye power project in Indonesia

Lanco Infratech has joined hands with Bukit Asam, the Indonesia based coal mining company.

The partnership has been formed to bid for a 600 MW power project, according to sources.

PT Perusahaan Listrik Negara has floated tenders for developing the coal based power project in southern Sumatra on BOO basis. The project is estimated to cost Rs 3,500 crore with a concession period of 25 years.

Banco to set up cement plant in Tanzania

Banco Products (India), a manufacturer of gaskets and radiators, proposes to set up a cement plant in Tanzania at an investment of Rs 300 crore to cater to the east-African markets.

Of the total fund, the company will arrange Rs 100 crore as equity while remaining Rs 200 crore will be funded by bank loans.

Tanzania based Lake Cement, in which Banco acquired a 51 per cent stake recently, will be the investment vehicle for the project having a capacity of 0.5 million tpa.

JSPL restarts work on project in Bolivia

Jindal Steel and Power (JSPL) has recommenced work on its steel project in Bolivia.

The Bolivia Government has allocated an additional 3,000 acre for the venture in Santa Cruz area which entails a cost of $2.1 billion (approx Rs 9,765 crore). A total of 1,000 acre had been allotted to JSPL earlier. The company has resumed activities to develop the El Mutun iron ore deposit as well.

The company requires a total of 5,000 acre for the project, which comprises a 1.7 million tpa steel plant, a six million tpa sponge iron and 10 million tpa iron ore pellet plant. JSPL will also develop a power plant to feed the steel project.

The entire project is expected to become operational in the next three-four years.

AAI plans to develop airport in Sri Lanka

The Airports Authority of India (AAI) intends to develop an airport at Palali in Sri Lanka.

AAI has recently carried out the feasibility study for the airport which is near the city of Jaffna. The project is to include building a runway and the terminal building at a cost of Rs 400-500 crore.The Authority had earlier built airports in Libya and Yemen.

Adani Enterprises through its step-down subsidiary, PT Adani Global, has entered into a Tripartite Agreement for setting up a dedicated rail and port project with the Regional Government of Sumatra Selatan and PT Iiukit Asarn, a Government of Indonesia coal mining company.

The project envisages ownership, construction and
operation of 250 km rail line capable of
transporting a minimum 35 million tpa of coal
(expandable to 60 million tpa). The rail line will
connect Tianjung Enim, a coal mining area to
Tanjung Carat, where Adani will build a port with
matching capacity for evacuating the coal. The
project is expected to entail an outlay of $1.65
billion (approx Rs 7,672.5 crore) and will be
constructed within 48 months.

The agreement also provides 'Coal Purchase Rights' to Adani and the infrastructure created will be used for transportation of a minimum volume of 35 million tpa of coal on a "take or pay" basis from PT Bukit Asam concessions in South Sumatra. The concession is initially valid for a maximum period of 30 years.

BHEL commissions gas turbine unit in Muscat

BHEL has on 25 August 2010 commissioned a gas turbine generator at the Oman Refineries and Petrochemicals Company's plant in Muscat.

The 26-MW gas turbine generator has been the second such unit which has been put on stream at the Oman refinery. Another unit of similar rating was commissioned at the same project in May 2010.

The gas turbine generator units were engineered, manufactured and supplied by the BHEL's Hyderabad plant, while the control system has been supplied by its Bengaluru unit.

CIL mulls acquiring three mines abroad

CIL is in the process of acquiring three coal mines in Australia, Indonesia and the US. The combined reserves of the three assets could be 800-900 million tonne, with total production estimated to be between eight-nine million tpa.

The company has made substantial progress in due diligence of at least one of the assets and is hopeful to seek board approval with acquisition proposals by September 2010.

CIL has earmarked Rs 6,000 crore for such acquisitions during this fiscal and has roped in a number of merchant bankers to seal the deal(s).

Reliance to buy stake in Marcellus Shale

Reliance Marcellus II, LLC, a subsidiary of Reliance Industries (RIL), has signed definitive transaction agreements to enter into a Marcellus Shale JV with US based Carrizo Oil & Gas.

Under the transaction, Reliance will acquire a 60 per cent interest in Marcellus Shale acreage in Central and Northeast Pennsylvania that is currently held in a 50:50 JV between Carrizo and ACP II Marcellus LLC, an affiliate of Avista Capital Partners.

The total deal comprises a $340 million (approx Rs 1,564 crore) cash component and $52 million (approx Rs 239.2 crore) of drilling carry obligation and provides for 75 percent of the Carrizo's share of development costs over a two-year period.

The JV will have approximately 104,400 net acre of undeveloped leasehold in the core area of the Marcellus Shale, of which Reliance's 60 percent interest will represent approx 62,600 net acre. This acreage is expected to support the drilling of approx 1,000 wells over the next 10 years.