Nakoda acquires polyester plant in South Korea

Nakoda Textiles has acquired South Korea based Kyunghan Industry Company in a deal worth $40 million (approx Rs 186 crore). The deal has been executed through its subsidiary Indo Korean Petrochem.

Of the total, the promoters are likely to invest $10 million (approx Rs 46.5 crore) and Canara Bank, London, and UCO Bank, Hong Kong, are likely to provide $7.5 million each (approx Rs 34.87 crore). Of the total acquisition cost, fixed assets account for $25 million (approx Rs 116.25 crore) and rest is for working capital. A working capital loan of $15 million (approx Rs 69.75 crore) is expected to be equally extended by Indian Overseas Bank, Seoul, Syndicate Bank, London, and Canara Bank, London. The South Korea based unit has a capacity to manufacture partially oriented yarn (POY) of 150 tpd, fully drawn yarn (FDY) of 90 tpd and polyester chips of 60 tpd.

IFFCO mops up funds for facility in Jordan

Indian Farmers Fertilizer Cooperative (IFFCO) has achieved financial closure for its $670 million (approx Rs 3,115.5 crore) phosphoric acid plant being set up at Eshidiya in Jordan.

Jordan India Fertiliser Company, a 52:48 JV company of IFFCO and Jordan Phosphate Mines Company is setting up the facility.

International Finance Corporation and European Investment Bank have arranged $372 million (approx Rs 1,729.8 crore) loan. The plant will be set up with 60:40 debt and equity ratio. The plant is expected to produce 4,50,000 tpa phosphatic acid and is likely to be commissioned in 36 months.

NFCL plans urea plant in Nigeria

Nagarjuna Fertilisers and Chemicals (NFCL) proposes to set up a urea manufacturing facility in Nigeria. NFCL is planning to set up a factory with an initial capacity of one million tonne which is likely to entail an investment of Rs 5,000 crore. The company may join hands with a local partner in the country to form a JV.

Bajaj Auto plans CKD assembling at Indonesian plant

Bajaj Auto (BAL) is likely to switch to assembling completely knocked-down (CKD) parts of its motorcycles in its Indonesia plant in the second half of 2010-11. The company's Indonesia based subsidiary, PT Bajaj Auto Indonesia, assembles and markets Pulsars.

BAL's subsidiary has localised some of the assembly operations to bring down the customs duties. It is likely to continue to pursue the localisation of subassemblies in 2010-11.

Also, the product portfolio in Indonesia is expected to be expanded under the Pulsar brand with the Pulsar 135 LS. With the addition of Pulsar 135 LS to the model line up and with increased local subassembly operations, BAL is hoping that the Indonesia subsidiary will be able to reduce its losses this financial year.

OVL turns down stake in Caspian Investment Resources

ONGC Videsh (OVL) has refused to buy Mittal Investments Sarl's stake in a Kazakhstan based oil company after its request for data on the project did not elicit any response.

Mittal Investments Sarl, had in April, 2007, bought 25 per cent stake in Caspian Investment Resources (CIR) for $980 million (approx Rs 4,557 crore). Mittal Investments offered stake to OVL, which in turn sought certain information on the fields like deposits it had, future production profile and prospects, but did not get a response.

Russia's LUKoil owns 25 per cent stake while KazMunaiGaz owns 50 per cent stake in CIR.

Oil companies vie for BP's stake in Vietnam gas project

Indian oil majors including ONGC, GAIL, Indian Oil Corporation (IOC) are keen to acquire BP Plc's stake in Nam Con Son gas project in Vietnam as the latter is likely to exit its hydrocarbon business in Vietnam. BP is contemplating to offload its stake in its Vietnam project that includes upstream and midstream units as also a power project. The project cost is estimated to be close to $1.3 billion (approx Rs 6,110 crore). Other firms such as China's CNOOC and Sinopec as well as Thailand's PTTEP could also be interested in BP's stake in the Vietnam project.

OVL, the overseas investment arm of ONGC, is keen to up its stake in the offshore gas field, where it is a partner with BP and PetroVietnam. OVL has 45 per cent equity, BP 35 per cent (operator), and remaining is with PetroVietnam. While IOC has evinced interest in the 720-MW power project in which BP has a stake, GAIL is exploring the possibility of acquiring BP's stake in the 376-km gas pipeline.

BP has 32.33 per cent stake in the gas pipeline where its other partners are ConocoPhillips (16.7 per cent) and PetroVietnam (51 per cent). The gas produced from the fields is supplied to a 720-MW power plant where BP, National Instruments of Japan and Semb Corp of Singapore have 33.3 per cent stake each.

Adani to develop coal port in Australia

The Adani Group has been reportedly selected to develop an export facility for the fuel in Australia. Adani and DBCT Management, which leases the Dalrymple Bay Coal Terminal, will separately draw up plans for export terminals at Dudgeon Point, Mary Steele. Dudgeon Point is located about 15 km south of Mackay on the Queensland Coast and lies within the Port of Hay Point about four km north of the existing coal terminals.

SJVNL eyes stake in Khudoni hydel project

Satluj Jal Vidyut Nigam (SJVNL) is mulling buying a 30 per cent stake in the 638 MW Khudoni hydel power project in Georgia (US).

The acquisition is likely to cost SJVNL around Rs 345 crore. The company is likely to soon approach the Union Ministry of Power for its approval to invest in the overseas project.

Continental Energy is setting up the plant based on Inguri River. Of the project's estimated cost of Rs 3,800 crore, one third is expected to be invested by promoters as equity.

KGL mulls sugarcane crushing plant in Ethiopia

Karuturi Global (KGL), intends to invest $100 million (approx Rs 470 crore) for setting up a sugarcane crushing plant in Ethiopia (Africa).

The proposed plant is likely to be developed in a phased manner. The Phase I of the plant is likely to be commissioned in October 2010. The plant is to have a capacity of 7,000 tccpd. The company is expected to utilise 15,000 ha of three-lakh ha it recently bought in Ethiopia for sugarcane plantation.