RNI Certificate No.69375/98Postal Registered No.VSP-127/2012-14

P h : 0 0 9 1 - 8 9 1 - 2 7 9 9 9 6 9 , 2 7 1 4 5 7 5 C e l l : 0 9 4 4 0 8 6 4 9 9 9 F a x : 0 0 9 1 - 8 9 1 - 2 5 3 9 4 4 3Websites : w w w . v i s c a n . i n , E - m a i l : i n f o @ v i s c a n . i n , v i z a g i n d u s t r i a l s c a n @ gmail. c o m

VOLUME 15 No.2 (12 PAGES) VISAKHAPATNAM May 16-31, 2012 ANNUAL SUBSCRIPTION RS.999/- (BY POST)

Vizag Industrial ScanJ/VM/RNP/127/2012-2014 Regd. to postat concessional rate at RMS Vizag

A N a t i o n a l I n d u s t r i a l F o r t n i g h t l y

A.K. Sabharwal

Special Economic Zones (SEZs) in India have in recent years sparkedoff considerable debate among economists, industrialists, andpolicymakers.

While there is no gainsaying the importance of SEZs in fuelling thenation’s economy, these zones have probably not yet yielded their fullpotential results in India. One could attribute varieties of factors, but atthe core of these is the dominant view that the fundamental policy isflawed and has certain grey areas.

A careful study of the current policy will reveal, for instance, that itfavours only the final exporter in the form of income tax holiday. This isgood and even necessary. However, what about the intermediary supplychain partners who supply vital raw material and other inputs. Thesepartners have significant contribution to exports from SEZs and if partsof benefits are

given to them, surely their contribution will be even more.The current definition of ‘export’ under the SEZ Act 2005 includes

supplies from Domestic Tariff Area (DTA) to SEZ as well as supplies fromone unit to another within the zone. Under this, the indirect tax provisionstreat supplies made within the zone from one unit to another as duty-free.

However, strangely, the same is subject to income tax, as it does notinclude supply of goods and services by one unit to another within thesame zone. Imagine a vendor in a SEZ supplying products and services toits neighbour in the same zone will not get income-tax holiday benefit.

Moreover, SEZs are supposed to be deemed foreign territory for fiscalpurposes.

This flaw in fact applies as a squeeze on the entire supply chain structure.In addition, it leads to higher costs, as suppliers will pass on the additionalcharge to the unit that finally export the products. One does not have tobe a rocket scientist to know that this flaw is only nudging up prices ofproducts from SEZs and making them less competitive in the global marketarena. Economists feel that a change in this policy could go a long way insharpening the competitiveness of our SEZs.

Let us look at the land issue, which continues to be a major irritant.Instances galore in which state governments display feeble and anaemicrelief and rehabilitation policies. Apart from being a major irritant, it placesa huge cost burden on the promoters to resolve people related issues,which also causes immense delays. Clearly, the only way to erase this

irritant is for state government to ready the land before invitinginvestors to the zone.

There is also the issue of work visa policies that make it practicallyimpossible for overseas players to deploy their trained work force andquickly ramp up production, instead of spending enormous time and cashto train local talent in the short run; thus losing focus on rapidly creatingproduction scale. One way to avoid this problem is for the DevelopmentCommissioner to approve expatriate work force strength for SEZ unitsduring the project approval stage itself. Indigenization, will therefore,form part of the strategy to be achieved within a pre-determined period.

To add to the existing flaws in the policy, the Union Budget-2011 droppeda bombshell when it imposed MAT and DDT on the zones, underminingglobal confidence in India. The proposed Direct Tax Code is anotheradverse game changer on the radar.

Why change rules of the game even whilst the game is on? Restore taxholiday benefits as enshrined in the SEZ Act—this should be the clearand terse message to our policy makers.

We all know what is happening around the globe on the economic front.Economic slowdown has spread like a contagion across the global,especially in Europe and the US. Eurozone nightmares still haunt theglobal economy. The result —manufacturing activities have been scaleddown.

What can we do to dull the impact of this trend? One way could be tomaximise utilisation of the underutilised infrastructure in the operationalSEZs. Two-way connectivity with DTA to access the large untapped localdemand could present an opportunity—why does not our policy makersand government look in to this?

We have a simple five-point strategy toward this. Allow SEZs to sellutilities to DTA, undertake sub-contracting jobs for DTA, charge importduty only on imported inputs used in production in SEZs, provide level-playing field for SEZs vis-à-vis duty-free imports and encourage stategovernment to devise and implement their own SEZ Acts.

In addition, there is a need for SEZs to be infused with new FDI byleveraging on the large domestic market base. Moreover, to address thisconcern, it is cardinally important to adopt a practical approach to facilitategreater linkage with DTA and sharing of common infrastructure facilities,especially in the utilities segment such as power, treated water, and effluentcollection,treatment and discharge.

India, which is cushioned against the global economic overhand, stillprovides immense opportunities in the SEZ sector. What is required isfor the government to give it a big push.

The ball is in your court, Mr. Prime Minister.

VIS News Service

Bharat HeavyElectricals Limited

(BHEL) board which metrecently gave its nod forthe long-awaited clearancefor its merger with theVisakhapatnam-basedBharat Heavy Plate andVessels (BHPV). Themove has brought cheeramong the employees ofBHPV, which has beenunder reference to BIFRfor incurring heavy losses.

BHPV was made asubsidiary of BHEL, anavratna company in May,2010, despite a firmcommitment by PrimeMinister, Dr. ManmohanSingh to merge it withBHEL. For making BHPVa subsidiary of BHEL, thegovernment gave landunder possession of thecompany free of cost.Theexcise and sales tax dueswere also written off as agesture to wriggle BHPVout of a crisis situation.

The employees, whoare still getting 1992 pay

What ails SEZs in India?

VIS News Service

M r. SuryadevaraRamachandra Rao,

IAS, has assumed chargeas Commerce Secretary tothe Union Ministry forIndustry and Commerce.Mr. Rao was earlierSpecial Secretary to theCommunications and ITMinistry. He has beenworking for the centralgovernment since 2008.

An I. A. S. officer ofthe Gujarat cadre since1978, Mr. S. R. Rao hashad a varied careerworking in different

S.R.Rao now Secretary Commercedepartments. However, itwas his exemplary work asMunicipal Commissionerof Surat in Gujarat that Mr.Rao's managerial skillswere demonstrated, whenthe city of diamonds waswracked by the dreadedplague in 1994.

Mr. Rao moved swiftlyand decisively to control thespread of the plague, andin the process he cleanedup the City of Surat forgood.

His work in Surat wasacknowledged by theUnion Government when itawarded him the Padma

Shri, making Mr. Raopossibly the first serving I.A. S. officer to be sohonored.

Mr. Rao also served aschairman of theVisakhapatnam Port Trustfrom 1998 through 2003. Itwas during his tenure asVPT chairman that theport of Visakhapatnamemerged as the country'sport which handled themost cargo for three yearsin a row.

We at VIS wish Mr.Rao a successful tenureas Union CommerceSecretary.

BHEL board clears BHPV mergerBrings cheer among BHPV staff

scales, have beendemanding a merger atvarious fora to haveincreased job security andbrand value. Once themerger proposal iscompleted, they will get2007 pay scales.

A visibly happy generalsecretary of the INTUC-affiliated recognised union,Mr.V. Babu Rao said:“Finally, our peacefulstruggle has fetched us richdividends. We have brightdays ahead as we willbecome employees ofBHEL and will get pay andperks on par with all otheremployees of the navratnacompany. It is a dreamcome true.”

The union also signeda memorandum ofunderstanding with BHELmanagement after theboard meeting. Theemployees will get 60 percent of 1997 wage revisionarrears once BHPV’slosses are absorbed up to50 per cent. BHPV’saccumulated losses havebeen put at Rs.250 crore as

on date. The 1997 wagearrears amounted to Rs.82crore. The MoU also rulesout payment of arrears for2007 wage revision. The2007 pay scales will beimplemented with effectfrom the date of merger.After BHEL board’sratification, a note will beforwarded to theDepartment of HeavyIndustries. This will besubsequently placed beforethe Union Cabinet. TheCITU-affiliated BHPVEmployees’ Union, whilewelcoming the BHELboard’s nod for merger,criticised the rider forpayment of wage arrears.

The president of BHPVEmployees’ Union, Mr.G.T.P. Prakash said: “Weare supposed to get arrearsof Rs.82 crore for 1997 payscale and Rs.100 crore (ifthe merger gets effectivefrom April, 2013) for 2007wage revision. We arekeen that the arrears dueto us should be paid whilecarrying out the process formerger.”

VIS News Service

Mr. B. Prasada Rao, IPS officerof the 1979 batch, assumed

charge as Director General of the Anti-Corruption Bureau in Hyderabadrecently.

Talking to mediapersons after takingcharge, Mr. Prasada Rao said he woulddischarge his duties to the best of hisabilities. “I will peruse the files with meand based on the evidence gatheredthus far, will proceed with the best wayforward,” he said.

Meanwhile, the former City PoliceCommissioner, Mr. A.K. Khan, IPS, who took charge as APSRTC Vice-Chairmanand Managing Director in place of Mr. B. Prasada Rao, IPS, said that he would makeefforts to turn APSRTC into a profit-making unit by introducing new measures andimproving passenger amenities.

Prasada Rao takes over as DirectorGeneral of ACB

Business Scan2 VIZAG INDUSTRIAL SCAN May 16-31, 2012

ISPAT SANGRAH(INDIA)

With Best Compliments from:

Plot No.H-337 (E), Road No.17V.K.I. AREA, JAIPUR (Rajasthan)

VIS News Service

APTRANSCO iscontemplating to

further reduceTransmission &Distribution (T&D) losses,currently at 16.45 per cent,through adoption of latestinitiatives aimed at furtherstrengthening Extra HighVoltage TransmissionNetwork and increasingtransmission availability.Towards this end, it isconsidering implementationof Remote Meter Reading(RMR), GeographicalInformation Systems(GIS), Supervisory ControlAnd Data Acquisition(SCADA), etc. whichultimately lead to providingsatisfactory services to theconsumers. The powerutilities embarked on short

Hiralal Samariya assumescharge as CMD/APTRANSCO

and long term programmesas part of their all outefforts to bridge thedemand-supply gap in viewof the abnormal rise inpower demand.

Disclosing these detailson the occasion of hisassuming charge asChairman & Managing

Director ofAPTRANSCO, recently,Mr. Hiralal Samariya,IAS, said it is a greatprivilege to serve thepower sector again after aperiod of 6 years andsought the co-operation ofengineers, employees & allthe unions ofAPTRANSCO for furtherimproving the performanceof the utility.

Appreciating theofficials for their efforts tomake the APTRANSCOone of the best powerutilities in the country withhighest transmissionsystem availability at99.89%, he directed themto continue their sustainedefforts to complete thetransmission projectsstrictly as per theschedules.

Ms. Swati Lakra, an IPS Officer of the 1995batch, has taken over as the new DeputyInspector General of Visakhapatnam Rangerecently.

Interacting with the media after assumingcharge, she said that the by-elections inPayakaraopeta in Visakhapatnam district andNarasannapeta in Srikakulam district were ontop of her agenda at the moment though herjurisdiction covered the three districts ofSrikakulam, Vizianagaram and Visakhapatnam.

Ms. Lakra said that the instructions of theElection Commission of India would be followedscrupulously. Asked whether she perceived anythreat in the two Assembly segments going tothe polls, she said that she was yet to conduct areview meet with the concerned SP s on thesituation.She, however, said that the police wereprepared to meet any eventuality.

Replying to queries, she said that the goodwork done by her predecessors to gain the confidence of the tribal people in the regionwould be continued. Superintendent of Police, Mr. G. Srinivas was present.

By-polls top on agenda: Swati Lakra

VIS News Service

In an effort to extendhassle-free service,

VUDA Vice-Chairman,Mr. Kona Sasidhar IAS,has taken an initiative andannounced “Meet-the-V-C” programme to expeditesanctioning layoutapprovals and buildingpermissions.

Meet VUDA vice-chief for quick approvalsSince layout approvals

and building permissionsform a major part ofVUDA’s mandate and itsmain revenue sources, hehas decided to give priorityto them. “Meet-the-V-C”programme enables theapplicants of layoutapprovals and buildingpermissions to meet theVice-Chairman directly

and obtain orderssubmitting requiredsupporting documents andfurnishing otherinformation. Mr. Sasidharhas announced that theprogramme will be heldtwice in a month and theofficers and staff ofplanning to make availableall relevant files for speedydisposal.

VIS News Service

The general secretary ofEast Coast Railway

Shramik Union, Mr. Ch.Gandhi informed that theCentral AdministrativeTribunal, Cuttack benchhas ordered implementationof 6-hour duty roster in thereservation offices all overEast Coast Railway, basedon the petition filed by himin the Labour Court,Cuttack challenging thetimings.

He added, the

CAT orders 6-hour roster atRly booking counters

reservation office timingswere 8 AM to 2 PM and 2PM and 8 PM, but thetimings were revised from8 AM to 10 PM in twoshifts against the RailwayBoard orders.

The East Coast RailwayShramik Union has raisedthe arbitrary orders atvarious levels. Again, from01-03-2012 theadministration had rolledback the 7-hours dutyroster to reservation clerks,he added.

Tanishq, India’s largestand most trusted jewellerybrand is back with its much-awaited Gold ExchangeOffer. The offer givescustomers a chance toexchange their gold forTanishq certified jewellery.Moreover, as an additionalbenefit, customers stand tobenefit by getting oneadditional karat value forbuying gold jewellery andof 2 additional karats forbuying diamond jewellery.

The scheme is valid upto June 3, 2012.

Exchange oldjewellery atTanishq

Business ScanMay 16-31, 2012 VIZAG INDUSTRIAL SCAN 3

V. RAM CHANDRA IRON& STEEL PVT. LTD

With Best Compliments from:

PEERAKHAR, SHAHDARA,AGRA - 282006

IN BRIEFUnion Bank cuts home loanratesPublic sector lender Union Bank of India has cut

home loan rates for new and existing floating ratecustomers. The interest rate cut ranges from 25 basispoints (at the lowest loan slab of up to Rs 30 lakh) to150 basis points (on loans above Rs 75 lakh and up toRs 5 crore). One basis point is equal to 0.01percentage points. Customers can get home loans upto Rs 30 lakh at the Base Rate (10.50 per cent).

According to the bank’s sources in Mumbai,interest rate on home loans above Rs 30 lakh and upto Rs 75 lakh will be 10.75 per cent (Base rate + 0.25per cent). For loans above Rs 75 lakh and up to Rs 5crore, the interest rates will be 11 per cent (Base Rate+ 0.50 per cent).

Jyoti Ghosh is new CGM of SBH

Mr. Jyoti Ghosh, General Manager and GroupExecutive (Corporate Banking), State Bank

of Hyderabad, has been elevated as the ChiefGeneral Manager.

According official sources in Hyderabad, Mr.Ghosh had joined State Bank of Bikaner and Jaipuras a probationary officer in 1978. He has held variousassignments, including an overseas assignment asexecutive vice-president of State Bank of India’sFrankfurt branch.SBI Q4 net zooms toRs.4,050 crThe net profit of State Bank of India (SBI)

zoomed to Rs.4,050.27 crore for the fourth quarterended March 31, 2012, from a meagre Rs.20.88 crorein the year-ago period. Higher provisioning for badloans and increased tax outgo hit the profit on the lastoccasion.For the whole of 2011-12, the bank reporteda 41.7 per cent growth in net profit at Rs.11,707.29crore against Rs.8,264.52 crore in the previous year.

The bank’s Chairman, Mr. Pratip Chaudhuridescribing the results as ‘blockbuster’ in Mumabirecently, added that the bank planned to approachrating agency Moody’s for a review. Last October,the rating agency had downgraded the bank.

Mahesh Bank hascommenced a week-

long Induction TrainingProgramme to its newlyrecruited staff at its ownstaff training college atBegum Bazar inHyderabad recently. TheAddl. Registrar of Co-opSocieties & Member, A.PCo-op. Tribunal,Hyderabad, Mr. CNiranjan Sai, was thechief guest.

In his inaugural address,the bank’s Chairman, Mr.Ramesh Kumar Bung,stated that the Bank hasbeen giving due importanceto the training system andcontinues to conduct

The Reserve Bank ofIndia (RBI) was

taking steps to arrest thecurrency’s depreciation inthe wake of the recent slidein rupee value to variousdomestic and global factors,the Finance Minister, Mr.Pranab Mukherjee, hassaid.

“There are a lot ofreasons for this(depreciation). There isdemand and supply in themarket. In the US, there issurplus investment. It usedto be a safe haven,” he toldmediapersons in Kolkatarecently.

RBI taking steps to checkrupee slide: Pranab

“Europe used to be animportant destination forexports, but demand thereis uncertain, while globalrecovery was “poor andfragile” even as oil priceswere on the rise, he added.

India’s fiscal deficit toois widening and is estimatedto have touched 5.9 percent of GDP in 2011—12.

“Because of thecumulative effect of allthese reasons the price ofrupee is falling down,” headded.

Mr. Mukherjee said thatthe RBI which has beentaking steps to check the

depreciation in the Indiancurrency from time to timehas recently indicated thatit may sell dollars directlyto oil companies to easepressure on the currency.Besides, it has alreadytaken steps to curbspeculation in the forexmarket and increase theinflow of foreign currency.

Since early March, therupee has lost about 13 percent against the dollardriven by a combination ofdeteriorating global risksentiment and weakdomestic fundamentals.

Mahesh Bank inducts new staffseveral training programsto its staff of variouscadres periodically at itsown staff college.

He also said that theneed for training is morepronounced at present inthe changed scenario in theBanking industry. HumanResource is the backboneof service industryparticularly Banking. Headvised the participants totake full advantage of thetraining. Mr. C Niranjan Saisaid it is essential foreveryone to undergoperiodical trainings as itshows where we are andwhat more we need towork better.

City Union Bank hasposted 40 per cent

growth in net profit at Rs71.98 crore for the quarterended March 31, 2012,against Rs 51.40 crore inthe corresponding previousperiod.

Total income went upby 37 per cent to Rs 537.31crore, from Rs 391.10crore.

At end March, 2012 thenet NPAs (non performingassets) had come down to0.44 per cent from 0.52 percent in percentage terms.

However, in absoluteterms, gross NPAs wentup to Rs 123.5 crore duringthe year from Rs 112.5crore the previous year.

For the financial year2011-12, the company hasreported a net profit of Rs280.25 crore.

Mr. N. Kamakodi,Managing Director andCEO of City Union Bank,attributed the growth in netprofit to lower provisioningfor NPA during the year.

City UnionBank Q 4 netup by 40%

M.V.P. Colony,Visakhapatnam 530 017,

Ph.: 0891-2526633Fax.: 0891-2531385

STSTSTSTSTAAAAATE BTE BTE BTE BTE BANKANKANKANKANKOF MYOF MYOF MYOF MYOF MYSORESORESORESORESORE

‘Cut exposure toNBFCs givinggold loans’

The Reserve Bank ofIndia (RBI) has asked

banks to reduce exposureto non-banking financecompanies (NBFCs),which give loan against theprecious metal, at theearliest and bring it underthe prescribed limit withinsix months. According tothe RBI circular, banks arerequired to bring down theirexposure ceiling to suchNBFCs from 10 per centto 7.5 per cent of its capitalfunds. The ceiling will applyto those NBFCs which arepredominantly engaged inlending against gold.

Business Scan4 VIZAG INDUSTRIAL SCAN May 16-31, 2012

VIS News Service

P alm Beach Hotel,which has treated the

port city always withsomething new and unique,has launched TheCaribbean Food Festival atDUSK from May 19 to 27,2012.

According to theExecutive Manager of theHotel, Ms. Paramita, theresponse has beenoverwhelming, peoplecoming with family andfriends, youngsters and theelders to savour theCaribbean dishes and alsoto enjoy the soulful musicplayed by the band led byMr. Christopher.

Most visitors said thatthey not only enjoyed thefood but also the sweet and

Carribean Food Fest a major drawat Palm Beach Hotel

soft music played by theband unlike the deafeningmusic you get to hear atKFC, where you canneither order your food inpeace or make out whatyour friends are talking.

The best part about thisfood festival is that it is abuffet with authenticCaribbean cuisine servedcourtesy Chef Michellewho is from the CaribbeanIslands and has masteredthe culinary art there. Shehas been flown inparticularly for this foodfestival, because the hotelwants the guests to havethe authentic taste of theCaribbean Food, Ms.Paramita adds.

The menu included:Salad: Coleslaw TropicalSalad Green Banana Salad.

Dips: tamarind saucemango and cilantro acharmango chow hot peppersauce coconut chutney.Snack: Coconut ShrimpCrab Accra PholourieJamaican Corn Festival.Soups: Callaloo Veg Soup,Callaloo Crab Soup.

The Main Coursecomprised Jerk Mutton,Roasted Sweet PotatoOchroe Rice Pelau

green banana fritterslive counters grilled jerkfish ( Konem) stewedchicken.

The entireBuffetSpread has beenreasonably priced at Rs350/- only,” Ms. Paramitasays.

For more informationcontact: 0891 2754026/27, 2707776.

VIS News Service

WelcomHotel GrandBay recaptured the

400-year-old culinaryhistory of Hyderabad -‘DAWAT-E-NIZAM’ -The Great Cuisine of theNizams at the OceanicPavilion recently. The 10-day Nizam’s food festivalis scheduled to end on June3, 2012.

An expansive spread ofauthentic Hyderabadicuisine will be servedunder the expert guidanceof Chef T Suresh Babu,Executive Chef ofWelcomHotel GrandBay. The 10 day Nizam’sfood festival is scheduled to

VIS News Service

The Park Hotel has launched a biryanifood festival at its Vista restaurant

recently.According to chef, Mr. Pritam Das

of the hotel, biryanis from different regionswith special emphasis on spices. Themenu includes as many as 15 varieties ofbiryani to relish and is open for dinner tillJune 3.

The non-vegetarian delicacies includeawadhi zaffrani gosht, the traditionalHyderabadi kachchi murghi,shikampuri murgh, bhatkali shrimp andfish and many others. For those who areon the look out for Kolkata spices, there ismetiaburji murghir.

The famous dish of Tamil Nadu,thalapakattu chatti kozhi can be

‘Dawat-e-Nizam’ awaits you at Grand Baystart from 25th may andend on the 3rd June 2012.The festival is only fordinner and will be part ofthe Oceanic Pavilion dinnerbuffet the begins at 7:30 pmonwards.

According to Chef, Mr.T Suresh Babu, ‘TheGreat Cuisine of theNizams’ will feature amajestic spread of recipesfrom the Deccan regionlike the famous Biryanis,Kebabs and other lipsmacking main courses anddesserts. Kebabs include:Shikampur Kebab,Pathar ka Gosht,Talahuwa gosht, MalaiMachli-ke-Kababs, AlooCharminar Tikka. Main

course wouid includeclassics like Nalli GoshtNihari, Pay a kiNihari,Mircho ka Salan, MahiTamatar, Nizam MurghHandi, Haleem, KacheGosht ki Birayani,Paneer Qaliya, Baiganka Salan and Dahi kiChutney. Authentic breadslike Lukhmi and Rotiyanswould add to the repertoire.

For a wholesomeNizamis experience and toentice the sweet senses,desserts like Gulab Patheki Kheer, Seviyan, ShahiTukre, Double-ka-Meetha, Qubani-ka-Meetha, Badam-ki-Kheer and Gul-e-Firdaushave been included.

Try these spicy biryanis at The Parksavoured with an excellent mix of spices.The appealing parda chilman kheema willbe served in a dish which is fastened withflour.

“To extract the nice aroma and textureof the biryani, fresh assorted spices havebeen tied in muslin cloth like potlis andcooked along with basmati rice,” he said.

For vegetarians, chutneywalebroccoli aur aloo and tarkari dumbiryani are on the menu. A specialMalaysian dish with generous blend ofghee and dry-fruits, malay nasi minyakgoes with a choice of vegetarian and non-vegetarian korma.

VIS News Service

The Gateway Hotellaunched ‘Khao Galli’

(The Food Lane), theweekly food festivalrecently.

The menu includes bothSouth and North Indianvegetarian street food.There were live counterson pushcarts that servedsteaming-hot tiffins andsnacks such as idli, dosa,

Taste ‘street food’ atThe Gateway on Saturdays

vada, pesarattu,uthappam, bajji, upma,hakka noodles,manchurian, and differentvarieties of corns.

There were alsowelcome drinks like lassi,aam-ka-lassi, and masalabutter milk, and the menuconsists of North Indiansnacks such as pav-baji,pani-poori, samosa-chaat, dahi-chaat, aloo-chaat, etc. Delectable

items such as chakkarapongali, semiya payasam,rawa kesari, and ice-cream formed part of thedessert list. The salesmanager of the hotel, Mr.B. Sravan Kumar said: “As many prefer to havetiffins ( specially vegetarianfood) on Saturdays wehave launched Khao Galliwhich will be open on allSaturdays from 7.30 p.m.throughout the year.

Narain & Company

With Best Compliments from:

G.T. Road, Mandi Gobindgarh, Punjab (India)

HEAD OFFICEG.T. Road, MANDI Gobindgarh-147301, Distt. Fatehgarh Sahib (Punjab)Ph. : 01765-505019, 255122, 255389, 259117, 259117 Fax : 1765-255422

E-mail : rpmultimetals@rediffmail.com/ rpmultimetals@gmail.com/narain_co@yahooo.co.inwww.rpsteel.in / www.naraingroup.com

Stockists of Rashtriya Ispat Nigam Limited (Govt. of India Undertaking)

Deals in : Rebar, Structure, Billet, Blooms, Angle, Channel, Wire Rod, Pig Iron & AlloysSteels Rounds, Billets & Squares, M.S. Rounds & Special Steel Round.

Business ScanMay 16-31, 2012 VIZAG INDUSTRIAL SCAN 5

KERALA STEELASSOCIATE

With Best Compliments from:

34/1864-D, MAMANGALAMKOCHI -682025

Ph: 0484-2346615

VIS News Service

Following overwhelming response fromvisitors, GreenPark, which has “Italy

On A Platter - Pasta Food Festival” at itspopular “Tulips” restaurant from May 15th

to 23rd May 2012, 7.30 pm onwards on a-la-carte, extended the same till May 27.

According to the hotel’s GeneralManager, Mr. K. M. Rao it was veryexciting to watch people coming in drovesto experience the unique variety of Italiandishes that are specially made by ourMaster Chef of the hotel.

For Vegetarians we have offered PastaAlfredo, Pasta-A-La-Pesto, Pasta-A-La-Aglioolio Peperoncino, Pasta- A-LaArrabiata , Pasta-A-La-Primavera,Canelloni Florentine and Non-Vegetarians enjoyed our Pasta-A-La-Bolognese, Pasta Con Le Polpettine,Seafood Ravioli, Pasta –A-La-Marinara , Pasta Di Pollo A La Griglia,

Good response to Pasta Foodfest at GreenPark

all the above pastas were served along witha salad. The pasta varieties includedpenne, fussili, farfalle, spagheti andfettuchini.

Before launching this food festival,GreenPark organised a fun-filled ‘KidsDay Out’ from 5 p.m. to 9 p.m. on Sundayfor children enjoying summer vacation.

They enjoyed unlimited fun, games,gifts and unlimited vegetarian snacks withlive karaoke and a specially designed menuby hotel’s executive chef, Mr. L.M.Bhatnagar. The special menu includedwelcome drinks like mocktails, soft drinks,milk shakes and mango lassi and assortedcounters for chat, veg. tandoori kebabs,dosas, pav bhaji and South Indian snacks.There wasl also a buffet with Punjabisamosa, French fries, saseme toast, veg.pizza, veg. puff, mini burger, noodles,manchurian, hot chat and the dessertcounter with pudding, gulab jamun,Bombay Halwa, and assorted ice-creams.

VIS News Service

The VisakhapatnamAir Travellers’

Association (VATA) hasappealed to the governmentto provide the necessarymanpower support forround-the-clock operationsat the VisakhapatnamAirport.

In letters to the UnionMinister for Civil Aviation,Mr. Ajit Singh and theUnion Minister of State forDefence, Mr. Pallam Rajuand the Union Minister ofState for Human ResourceDevelopment, Ms. D.Purandeswari and theMinister for Infrastructureand Investments, Mr.Ganta Srinivasa Rao,VATA representative, Mr.

VATA seeks round-the-clockoperations

O. Naresh Kumar hassaid that the Singaporeairlines has announced itsdecision to start directflights to Singapore fromOctober 1, three times aweek.

It has also informed thedirector of VisakhapatnamAirport in writing about itsoperational schedule.

The Singapore airlinesexpressed its intention tostart bookings for sale oftickets from next month, ifpermission was given fornight landing.

He has recalled that inthe past, many domesticairlines wanted to operatein the early morning andlate night slots, but werenot able to do so due toairport timings.

VIS News Service

The District Collector,Ms. Neetu Prasad

IAS sought cooperationfrom the Naval officials inpromoting the surroundingsof Naval Enclave as touristspots in East Godavaridistrict.

Addressing a meetingwith the officials of theIndian Navy on theproposed diversion to theNaval Enclave Road, Ms.Neetu observed that thebeach near the enclavewas turning into a deathtrap for tourists. Sherecalled the recent deathsof four students of theJNTUK near the beachand stressed the need forarranging caution boardsalong the shore. She askedthe Navy authorities tosubmit a detailed report onland requirement for thediversion project, so thatoptions such as landacquisition and lease couldbe worked out. Stressingthe need for a special policecheck post at the beachSuperintendent of Police,Mr. C.M. TrivikramVarma, IPS, JointCollector, Mr. A. Babu,IAS, Mr. P.K. Mohan,Mr. V.P.S. Rawat, Mr.Amit Singh and Mr.Pankaj Sharma of theIndian Navy were present.

Navy help soughtto develop tourismin EG Dist

VIS News Service

Canadian universities are showing a lotof interest in India and the country is fast becoming

their favourite destination, Canadian Trade Commissioner,Mr. Vikram Jain said at a meeting with heads of GITAMUniversity’s institutions in Vizag recently.

His organisation would help the university strengthenthe academic relations with Canadian universities; Mr.Jain informed that the Canadian High Commissioner wasplanning to visit GITAM University.

University Vice-Chancellor, Mr. G. Subramanaymsaid that academic tie-up with foreign institutions wouldprovide a diverse international perspective for thestudents and an opportunity to synthesise westernefficiency with eastern ethos.

Canadian TradeCommissioner visits GITAM VIS News Service

Flag OfficerCommanding-in-Chief

of Eastern NavalCommand Vice-AdmiralAnil K. Chopra has saidfire-fighting was part ofdefence services, and theuse of explosives, electricalwiring, and handling ofmissile attacks on ships hadmuch to do with fire-fighting. During war time,when ships were hit bymissiles or were bombed,fire-fighting and enemy

‘Navy has proved its mettle in fire-fighting’fighting had to be handledsimultaneously.

“The Indian Navy is inthe forefront of handlingsuch responsibilitieseffectively,” he said andreminded that Navalpersonnel had successfullyhandled the HPCL disasterin the past.

Inaugurating the two-day seminar and exhibitionon ‘Fire and electricalsafety, security andautomation organised bythe local chapter of Fireand Security Association of

India in Vizag recently, hesaid it was heartening toknow that FSAI wasfunctioning on a non-profitbasis and rendering serviceto the nation by creatingawareness on a crucialsubject. FSAI nationalgeneral secretary Mr.K.P. Dominic announcedthat upgradation of the localchapter from its sub-centreto independent chapter andelevation of joint secretary,Mr. K. Leela Prasad asthe president of theupgraded chapter.

Port6 VIZAG INDUSTRIAL SCAN May 16-31, 2012

VPT signs pact with Vizag Agriport

VIS News Service

Visakhapatnam Port Trust(VPT) signed the

Concession Agreement on May18, 2012 for installation ofMechanised Fertiliser HandlingFacilities at East Quay-7 (EQ-7)in the Inner Harbour ofVisakhapatnam Port on Design,

The Chairman of Visakhapatnam Port Trust, Mr. Ajeya Kallam, IAS (third from left) is all smiles asofficials of VPT and Vizag Agriport exchange documents

.Build, Finance, Operate andTransfer (DBFOT) Basis, at acost of Rs.217.58 cores for 30years with the Special PurposeVehicle M/s. Vizag AgriportPvt. Ltd formed by M/s. ABG-LDA Bulk Handling Pvt.Ltd,Mumbai and M/s. IL&FSMaritime Infrastructure

Company LimitedConsortium. The projectfacilitates handling of fertiliserwill add a throughput of 5.21MTPA to the Port traffic. Theport Chairman, Mr. AjeyaKallam, IAS, officials fromVPT and M/s.Vizag AgriportPvt.Ltd graced the function

KPT to set up satellite containerterminal at Tuna-TekraKandla Port Trust (KPT), one of the major ports on the northwest

coast of India, has submitted bids for feasibility studies of acontainer terminal at its Tuna-Tekra port some 20 kilometres awayfrom its main port at Kenda. Twelve engineering firms have submittedbids for setting up a terminal at Tuna-Tekra including Tata group-owned Tata Consulting Engineers Ltd and ConsultingEngineering Services (India) Private Limited (CES).

According to official sources, the need for a new terminal is crucialwith Kandla operating at full capacity and demand growing, two ofits 12 berths handle 7.2 million TEU annually. The projected cost ofdevelopment of two container handling berths at Tuna-Tekra with anannual capacity of 14.11 million tonnes is set at INR10,600 million(US$196.5 million).------------------------------------------------------------------------------

APM Terminals Q1 net profitsurges by 66%The terminal operating unit of AP Moller-Maersk Group, APM

Terminals posted a 66 per cent increase in first quarter netprofit year on year to US$235 million.

First quarter results were positively affected by volume growthin West Africa and after-tax divestment gains of $73 million. Theglobal container terminal market measured in TEU increased by 1.4per cent from last year.

The number of containers handled by APM Terminals (measuredin crane lifts weighted with APM Terminals’ ownership interest)increased by 10 per cent from 7.8 million TEU in the first quarter oflast year to 8.6 million TEU in the first three months of 2012. Excludingthe impact of portfolio changes, volumes increased by five per cent.

“We are pleased with the stable progress - especially since thisallows us to invest in locations where our customers need us toprovide capacity,” said APM Terminals CEO, Mr. Kim Fejfer.------------------------------------------------------------------------------Daewoo yard begins work onMaersk’s first 18,000-TEU shipSouth Korea’s Daewoo Shipbuilding & Marine Engineering

(DSME) has begun construction of its first largest vessel of 20on a US$3.6 billion order from Danish shipping giant Maersk withdelivery expected second half 2013.

According to officials sources, the launch of the ship constructionat DSME’s Okpo shipyard in South Gyeongsang province was markedin a ceremony attended by Denmark’s Crown Prince Frederikand his wife Mary, in Korea to coincide with the opening of the 2012Yeosu Expo.

The 18,000-TEU containership will boast a deck wide enough forfour football fields at 50 metres wide, and a length of 400 metres.

TheE FNC Group’s 8th International FreightForwarders conference will be held in Hong

Kong at the Hotel Harbour Grand from June 15-17.

According to the organisers, the event isexpected to attract CEOs and decision makers

VIS News Service

T ianjin Port Group (TPG) andSingapore’s PSA International

(PSA) has signed a “strategic cooperationframework agreement” to furtherstrengthen the collaboration between thecompanies for the development of Tianjinport. The agreement was signed on May18 by TPG group president, Mr. TianChang Song and PSA group CEO, Mr.Tan Chong Meng in the presence of TPGchairman, Mr. Yu Ru Min and PSA group

VIS News Service

Dubai DP Worldchairman Sultan

Ahmed Bin Sulayem andvice chairman JamalMajid Bin Thaniah havemade a tour of inspectionof their DP World Dakarterminal in Senegal.Mr.Bin Sulayem and Mr. BinThaniah also touredTerminal Conteneur, WestAfrica’s largest and mostmodern container facility,managed and operated by

Singapore tops latestedition of the World

Bank’s LogisticPerformance Index (LPI)from 155 countries,followed by Hong Kong,Finland, Germany droppingfrom top spot, theNetherlands with the USmaking the biggest leapfrom ninth rank from 15thtwo years ago, and UKslipping to tenth.

The logistics gap iswidening between those in

PSA signs pact with Tianjin Portchairman, Mr. Fock Siew Wah.

So far, PSA has invested in two of theport’s container terminals, namely TianjinPort Pacific International ContainerTerminal (TPCT) and Tianjin PortAlliance International ContainerTerminal (TACT).These two facilitieshave a total of 10 berths that can handlethe biggest containerships. This makes“Tianjin Port one of the preferred ports ofcall for mega containerships in thenortheast Asia region.

Top bosses of DP World inspect West Africanterminal in Senegal

DP World Dakar.According to official

sources, four quay cranesand 10 rubber tyre gantries(RTG) were installed at theterminal recently,completing the upgradingwork, which included anew gate complex and newreefer storage facilities.The terminal opened lastNovember after DP Worldcarried out new expansionwork that more thandoubled capacity to600,000 TEU under a

concession agreementsigned in 2007.Sincewinning the Dakarconcession in 2007, DPWorld has introducedwindow berthing, wherevessels book a specifictime they can berth,virtually eliminating waitingtime at anchorage. DPWorld has also reducedtruck turnarounds to lessthan half an hour andintroduced clear tariffs andprocesses supported bymodern technologysystems.

OBITUARY

Mr. KANCHARLA VIJAYA KUMAR

VIZAG INDUSTRIAL SCAN

D.O.B9-10-1950

D.O.D26-05-2012

President, The Vizagapatam Chamber of Commerce & Industry

World meet of Freight Forwarders to be held in Hong Kongfrom 100 organisations, who are seeking to“establish strategic alliances and synergies withinthe delegates.” The conference is open to all-independent freight forwarders, NVOCC groupagecompanies and heavy-lift handlers.

We deeply mourn the sad demise of Mr. K. Vijaya Kumar.The management and staff of

VIS News Service

Assistant Controller ofWarship Production at

the IntegratedHeadquarters at theMinistry of Defence, Mr.Kapil Gupta visitedHindustan Shipyard Ltdrecently and reviewed the

Kapil Gupta visits HSL

progress of various navalprojects like the 50-tonneand 20-tonne Bollard pulltugs, three each of whichare under construction atthe shipyard.

Singapore tops in logistics index

the bottom 10, all low-income countries with eightin Africa, and the top 10high-income countriessince 2010 following threeyears of improvement bylower performing countriesto improve LP scores. Thistrend was attributed tologistics reform beingassigned less importance infavour of global events likethe recession, and theEuropean debt crisis.

Maersk, the world’snumber one container liner,will levy peak seasonsurcharges on servicesbetween India and NorthAmerica, including Canada,from June 15, according toshipping industry sources.

The surcharges will be$360 per TEU, $450 perFEU, $500 per 40-foot highcube and $560 per 45-foot.

It might be noted thatSingapore-based APL hadearlier made a similarannouncement in respectof the same trade laneseffective June 10.

APL proposes toimpose surcharges of $480per TEU, $600 per FEU,$675 per 40-foot high cubeand $760 per 45-foot highcube container, the sourcesadd.

Maersk to levypeak seasonsurcharges

Steel ScanMay 16-31, 2012 VIZAG INDUSTRIAL SCAN 7

VIS News Service

NMDC signed the contract forSteel Making Shop (SMS)

Package for the upcoming 3MTPA Integrated Steel Plant atNagarnar, Chhattisgarh with theconsortium led by M/s SiemensVAI MT GmbH & Co. (SVAI),Austria on May 23, 2012.

This is the 6th major packageawarded in respect of NMDC’s3 MTPA Integrated Steel Plant,i.e. the Steel Melting Shop whichis one of the most important unitof the Integrated Steel Plantswhich will convert hot metalsproduced by the Blast Furnace

VIS News Service

The Union Minister for Steel,Mr. Beni Prasad Verma

has asked the Rashtriya IspatNigam Ltd. - VisakhapatnamSteel Plant to quickly stabiliseproduction from the new unitscommissioned under itsexpansion to increase productionup to 6.3 million tonnes perannum.

Reviewing the annualperformance of VisakhapatnamSteel Plant for the financial year2011-12 at Vigyan Bhavan inNew Delhi recently, the Ministerappreciated the company’sefforts for registering significantgrowth in 2011-12.

RINL registered a growth ofseven per cent in volume of ironand steel products and 79 per centof the company sales was value-added steel supplemented bysignificant growth of 45 per centin by-products and 47 per cent inexport of pig iron which helpedin improving the bottom linethereby generating surplus fundsfor further expansion.

RINL Chairman andManaging Director, Mr. A.P.

Stabilise production from new units, Beni Prasad tells VSP collectiveChoudhary who gave apresentation, indicated that theimpact of around Rs.1300 croremainly on account of highercoking coal prices and iron oreprices could be partly offsetthrough management initiativesand in-house cost reductionexercises such as optimization ofcoal blend, reduction in energyconsumption, reduction in cokerate, increased usage ofmetallurgical waste, improvementin yields of various units etc. Thecompany had also commissioneda 14 MW Power plant to producepower from waste heat and atwo million gallon per day WasteWater Treatment plant to recoverwaste water.

Secretary-Steel, Mr. D.R.S.Chaudhary, IAS, whileappreciating the efforts of RINLfor improving its techno-economic parameters, advisedthe company to take advantageof its costal location to improveprofitability. Additional Secretaryand Financial Advisor, Mr. S.Machendranathan and JointSecretary, Mr. Dalip Singhwere also present during thereview.

The Union Minister for Steel, Mr. Beni Prasad Verma (extreme left) reviewing the performance ofRINL-VSP in New Delhi recently. The Steel Secretary, Mr. D.R.S. Chaudhary, IAS and the CMD ofRINL-VSP, Mr. A.P. Choudhary are also seen.

The Union Minister for Steel, Mr. Beni Prasad Verma flanked by the in-charge CMD of NMDC, Mr.Nanda and the CMD of RINL-VSP, Mr. A.P. Choudhary at the signing of MoU between the twocompanies in New Delhi recently, for a pipeline and a pelletisation plant.

NMDC signs contract for SMS atNagarnar steel unit

to Steel and the same willsubsequently be the input for theThin Slab Caster and Rolling Millto produce the finished saleableproduct like low carbon, highstrength, line pipe quality,automobile steel, etc. in the formof hot rolled coils.

ED (NISP), Mr. G.Viswakarma, on behalf ofNMDC and Sr. Vice President,Mr. Norbert Petermaier, onbehalf of SVAI, Austria signedthe Contract Agreement in thepresence of CMD, NMDC, Mr.N.K. Nanda, FunctionalDirectors of NMDC and otherdignitaries.

Rashtriya Ispat NigamLimited, the corporate entity ofVisakhapatnam Steel Plant,which is proposing to make apublic offer of equity shares, fileda draft red herring prospectuswith the Securities andExchange Board of India inMumbai recently.

According to companysources, RINL was convertedinto a public limited companyafter a resolution was passed bythe shareholders at theextraordinary general meeting onApril 21. A decision was takento offload 10 per cent of thestake.

The board has also approvedreservation of 10 per cent ofequity shares accounting for48,898,462 shares forsubscription by eligibleemployees of RINL with adiscount of 5 per cent on the offerprice. The decision was taken forgreater participation andinvolvement of its employees whoare known for their efficiency andcommitment, the sources said.

VIS News Service

The Chairman and ManagingDirector of Visakhapatnam

Steel Plant, Mr. A.P. Choudharyhas advised officers of theHindustan SteelworksConstruction Ltd. to introspecttheir style of functioning and alsoclosely monitor the strategiesbeing followed by thecompetitors.

Delivering the inauguraladdress at a two-day businessmeet of HSCL at Ukkunagaramrecently, he felt shrinkage ofmargins and inadequate ability ofresource mobilisation werebiggest challenges before theHSCL collective. Moresupervision and planning was the

VIS News Service

S teel Authority of IndiaLimited (SAIL) has

announced a growth of 3 per centin its standalone net profit toRs.1,576.98 crore during thefourth quarter ended March 31,2012, riding on the back of arecord Rs.50,000 crore turnover.

The company beat thepredictions by market analystsand posted net profit instead ofan expected fall of 16-20 per centin profits. It reported a net profitof Rs.1,530.61 crore in thecorresponding quarter of 2010-11.Net sales of the company wasup 12.17 per cent at Rs.15,079crore against Rs.13,339 crore.

Announcing this at a pressconference in New Delhirecently, SAIL Chairman, Mr. C.S. Verma said that for the firsttime in the history of thecompany, SAIL had achievedgross sales turnover of overRs.50,000 crore during the lastfiscal due to good performance

SAIL Q4 standalone net up by3 % at Rs.1,577 crore

during the January-Marchquarter. The company reporteda standalone gross sales turnoverof Rs.50,348 crore in 2011-12 up7 per cent over the previousyear’s Rs..47,041 crore.

“It is a matter of great pridethat SAIL’s turnover crossed theRs.50,000-crore mark during ayear in which the global economyfaced many challenges. With2012 having begun on a positivenote for us, and our strategicinitiatives in several areas takingfirm shape, our outlook is bright,”he added.

However, the net profit of thecompany was down 27.8 percent at Rs.3,542.72 crore in 2011-12, largely due to increase in inputcosts, amounting to over Rs.4,000crore, he said.

The cost increase was mainlydue to rise in the cost of importedcoking coal to $288 from $213 atonne in the previous year. Thevolatility in dollar-rupee valuationsalso had an adverse impact ofaround Rs.900 crore.

RINL okays 10 p.c.shares to staff

VIS News Service

GVK Industries hasreceived environmental

clearance for its integrated mine,rail and port coal project inAustralia.

The project expects to supplyat least 60 million tonnes perannum (mtpa) of high qualitythermal coal to Asian markets.

GVK Alpha Coal Project inthe Galilee Basin, consisting of 30mtpa mine, a 495 km standard

‘Tap potential of coal, iron mining sectors’need of the hour, he said, andadvised the HSCL managementto look for more potentialconsortium partners in all works,even at the cost of low margins,as they help increase business.

Mr. Choudhary also asked theHSCL to develop expertise inother fields such as water supplysystem and crane erectionsystem, which had high potentialmarket.

He appreciated the initiativestaken by the CMD of HSCL, Mr.Malay Chatterjee to improvethe image of the company.

The strength of the HSCLwas its pan India presence, henoted, and suggested that it shouldlook for further opportunities inthe coal and iron mining sectors.

GVK gets green nod for mine in Australiagauge railway with 60 mtpaapprovals and a terminal and twoberths at Abbot Point inQueensland, received theapproved Environmental ImpactStatement.

According to official sources,GVK purchased a controllingshare of Hancock Prospecting’sGalilee Basin coal mines and therail and port assets afterparticipating in an internationalcompetition.

Trusted Name forWedding Silk Sarees

Jagadamba CentreVisakhapatnam Ph: 2706969

Regd.No.69375/98 - Printed by D.S.V.R.K.Raju and Published by A.K.Sabharwal, Printed at G.K.Print House Pvt Ltd, 10-12-5/3, Jail to Apollo Hospital Road, Ramnagar, Rednam Gardens, Visakhapatnam - 530 002Published at 101, Aspen Heights, D.No.11-9-38/5, Daspalla Hills, Visakhapatnam - 530 003. Phone : 0891-2799969, 2714575 Fax: 0891-2539443 Editor - A.K.Sabharwal

Dream Space Interiors(We takeup Interior works)

VIP Road, Near Tycoon Hotel,Visakhapatnam-3

Ph: 0891-2792024,9848209951, 9666409951

dreamhomesvizag@yahoo.com

IMPORTED TILES

WALL & FLOOR TILES

Sanitaryware

DREAM HOMES &

TILES STUDIOTILES STUDIOTILES STUDIOTILES STUDIOTILES STUDIO

VITRIFIED TILES

IMPORTED TILES

SREE

RA

MA

KR

ISH

NA

EN

GIN

EER

ING

CO

.

New Resapuvanipalem, VSP2703655, Gwk : 2514446

Suryabagh, VSP : 2561713Exclusive CRI Showroom

Dabagardens, Vizag.Ph: 6615582

Cricket Stadium,Madhurawada, Ph: 6511596

TILES&

VITRIFIEDTILES

RAASI

KajariaCERAMICS LTD.

Too good to resist

SANITARY &CERAMICSDIVISION

SREE

RA

MA

KR

ISH

NA

EN

GIN

EER

ING

CO

.

New Resapuvanipalem, VSP2703655, Gwk : 2514446

Suryabagh, VSP : 2561713Exclusive CRI Showroom

Dabagardens, Vizag.Ph: 6615582

Cricket Stadium,Madhurawada, Ph: 6511596

TATA, JINDAL,SURYAPRAKSH

BANSAL, ASRANIKALINGAOSWAL

MSL IBR PIPES15MM TO 300MMG.I., M.S., I.B.R.Pipes & TubesSEAMLESS,

‘U’ P.V.C,P.V.C., HDPE PIPES

& FITTINGSSUDHAKAR PVC &

AJAY ‘C’ PVC,RAKSHA

PUMPS

SUBMERSIBLES,JETPUMPS, MONOBLOCKS

Classifieds8 VIZAG INDUSTRIAL SCAN May 16-31, 2012

Sati

sch

an

dra

Oza

& S

on

s

AC sheetsAerocon Walls

Prefab Structures

SABICLEXAN

PolycarbonateSheets

ROOF LIGHTSHEETS

FinolexPVC Roofing Sheets

9-1-234 Opp.Sri Ramatakies Jn.Visakhapatnam-13Ph : 257 53 56

257 53 57Tel Fax : 255 38 10

BranchGajuwaka

E-mail:ozasons@gmail.com

Website :www.ozasons.com

CHARMINAR

(0891)

275 40 70

Metal Roofing SheetsBUILD-TEC

Classifieds/TendersMay 16-31, 2012 VIZAG INDUSTRIAL SCAN 9

# 31-32-81, G-11, Rama KrishnaArcade, Dabagardens, Vizag-20,

Ph: 0891-2566621, 6633910,Cell 9848016910, 9246671910

E-mail: abhishekpower05@yahoo.co.in

Diesel Generator

A.P. is top investment driven economy By A.K.Sabharwal

Andhra Pradesh hasbeen chosen as the“Top Investment

Driven Economy” in theIndia’s MostCompetitive StatesAwards 2012 initiative.The award has beenconstituted by the Institutefor Competitiveness(India), the Indian wing ofthe global network ofInstitute for Strategyand Competitiveness atthe Harvard BusinessSchool. A.P. is alsoconsidered the bestinvestment destination.Andhra Pradesh hasemerged as the mostcompetitive investmentdriven economy, accordingto a study based oncompetitiveness of States inthe country. The awardprovides a detaileddescription of the 29 IndianStates, theircompetitiveness in terms ofbusiness environment,infrastructure andtechnology.

The report is based ona detailed study, whereinthe States were criticallyevaluated on variousparameters such as macroand microeconomiccompetitiveness. This isbased on in-depth researchand analysis by theInstitute, according to apress statement.

A.P. was ranked first incontext for strategy andfactor conditions. It has thebest administrativeenvironment, well-definedhuman capacity and lot ofscope for innovation,according to the report.Inthis context it may bestated here that AndhraPradesh will be hosting anumber of International andNational conferences in thenext few months.

Following are some ofthem:World Meet onBiodiversity

For first time in thehistory, BiodiversityInternational meet will beheld in Hyderabad inOctober this year. Keepingin view the magnitude ofthe biggest everBiodiversity Internationalmeet and the coordinationrequirements, a StateSteering Committee withMinisters has been formedheaded by the ChiefMinister, Mr. N. KiranKumar Reddy. This is thebiggest event ever held inthe independent India.Ministerial Delegationsfrom 193 countries will beparticipating in theConvention being held firsttime in the country. Thisincludes 20 Heads ofcountries and Ministersfrom 90 countries.

A State levelCoordination Committee

has also been formedheaded by the ChiefSecretary. NodalCommittees has beenformed headed by thePrincipal Secretaries forR e c e p t i o n ,Accommodation, Food &Protocol, Transport,Security, CityBeautification, CulturalProgrammes, Exhibition,Media, Medical & Healthetc. It may be stated herethat Conference of Parties-11 on Biodiversity will beheld in Hyderabad from1st to 19th October.Hyderabad has beendeclared as the BiodiversityCapital of the country.While President, VicePresident, Prime Ministerof India will be ChiefGuests in different days ofthe Conference, Heads ofother countries will alsoparticipate.

The Chief Minister saidthat the Convention is goingto be a prestigious eventnot only for Government ofIndia but also forGovernment of AndhraPradesh and therefore theevent has to be conductedin a befitting manner. Hesaid in order to make theevent a success all stakeholders have to rise to theoccasion in a coordinatedmanner and take up variousdevelopmental works togive a face lift to ourhistoric city. He asked allthe departments to initiateall steps required bydifferent departmentsconcerned. About 2,000media persons are likely tocover the event.World AgriculturalCongress

As per the invitation ofthe Chief Minister, Mr, N,Kiran Kumar Reddy andthe unstinted efforts of theState Government officials,the World Congress Forumhas decided to host a megaglobal event, i.e. WorldAgriculture Congress(WAS)-2013 at Hyderabadin November 2013. Thiswas in response to aproposal from theChairman of WorldAgricultural Forum’sBoard, James. B. Bolger,former Prime Minister ofNew Zealand, who himselfwas a farmer.

In connection with theWAC-2013, Dr. KennethM.Baker, Chairman ofWAF and Ms. Evie,WAF’s Board Member hada meeting with the ChiefMinister and other officialsat Secretariat. The broadtheme for the WAC-2013is likely to be ‘ReshapingAgriculture for thebenefit of small andmarginal farmers’. About500 to 600 high-profiledelegates includinggovernment leaders,administrators, eminentacademicians, CEOs ofindustry, farmers,

functionaries ofdevelopment organisationetc., are expected to attendWAC from all parts of theworld.

It is for the first timethat WAC is going to heldin India at Hyderabadunder the leadership of theChief Minister Mr. N.Kiran Kumar Reddy. Theprimary objective of theWorld AgricultureCongress-2013 is to discusswith all key stakeholderssuch as farmers’organisations, industry,government key leaders,scientists etc. on ‘how toreshape and repositionsmall farm-holderagriculture in order to makefarming economicallyviable and improvefarmers’ income’ in the eraof WTO regime. TheWAC-2013 is alsoexpected to provide a policydirection to the developingcountries on how toreshape agricultural policyin order to make farmingviable and attractiveprofession, based o sharingof inter-country

experiences.Partnership Summit-2012Andhra Pradesh hostedPartnership Summit2012 entitled “New AgeI n n o v a t i o nPartnerships” inHyderabad in January2012, after a gap of 8years. The summit wasattended by 1200Delegates including 200Overseas Delegates and 15Overseas Ministers,Speakers from 42Countries, and 37 ForeignDiplomats.

During the PartnershipSummit 2012, AndhraPradesh receivedinvestment proposals worthof Rs.6.50 lakhs Croresacross which is a record ofinvestment proposalsreceived in any Summit ofthis nature. The totalemployment likely to becreated would be about6,78,597.

The Chief Minister, at thState InvestmentPromotion Board(SIPB) meeting heldrecently cleared in just one

day 30 investmentproposals worthRs.76,552.44 crores withan employment potential of71,908. The proposalscover automobile, textiles,chemical and petro-chemical, food-basedindustries, glass industries,m e c h a n i c a l - b a s e dindustries, metallurgicalindustries, mineral-basedindustries etc. TheIndustries Department hasalready released the namesof the Industries andwhere it is beingestablished withinvestments and theemployment potential.AP 2nd highest ingetting JnNURMfunds

The Chief Minister MrN Kiran Kumar Reddyasked the officials tocomplete all the 252projects under theJawaharlal NehruNational Urban RenewalMission (JnNURM)costing Rs.12,230 crore.right on schedule. AndhraPradesh stands secondhighest in the country for

getting maximum fundssanctioned under theJnNURM. The ChiefMinister congratulated theMA&UD officials andasked them to complete theworks with clearmilestones. Officialsexplained that out of 125towns in the State, 89 arecovered including themission cities ofH y d e r a b a d ,V i s a k h a p a t n a m ,Vijayawada and Tirupatiunder the JnNURM. Outof the Rs.12,230 crore, totalcost of the projects,Government of Indiashare is Rs.6429 crore.,A.P. Govt. share isRs.1816 crore, Urbanbodies/beneficiaries shareis Rs.3984 crs. They saidthat out of the 252 projects,78 are 75% completed, 50are more than 50%completed, 31 are morethan 25-50% completedand 17 projects less than25% completed. Underhousing, 1,79,217 housesare sanctioned, 1,10,251 arecompleted and 28,864 areat roof level.

Update8 VIZAG INDUSTRIAL SCAN May 16-31, 2012

Business ScanMay 16-31, 2012 VIZAG INDUSTRIAL SCAN 9

Scan Interview12VIZAG INDUSTRIAL SCAN May 16-31, 2012

No merit in merging RINL with NMDC: Nanda Mr. N.K. Nanda,

Director (Technical)of NMDC Limited,

India’s largest iron ore miningcompany, is a happy man thesedays. And the reason is not farto seek: NMDC, of which Mr.Nanda had been acting chairman,surpassed the mining and salesof iron ore in 2011-2012, with aproduction of 27.26 million tonnesof production and 27.30 mt ofsales, a growth of 8% and 12%,respectively, over the previousyear, despite the recession in thedemand for mineral resourcesworldwide.

The public sector mining giantposted a net profit of Rs.7,265.39 crores in 2011-12, anincrease of 12% over theprevious year’s net profit of Rs.6,499.2 crores. NMDC Ltdreported revenues of Rs.11,261.89 crores in 2011-12.

Edited excerpts of aninterview with Vizag IndustrialScan’s Editor, A.K. Sabharwal:

It is widely believed thatNMDC is still applyingoutdated technology formining. Is that so?

(Smiles) Not at all. Pleaseappreciate that the size of oremines in India are much smaller(than other countries). (Forexample) the average size of ourmines is 8-10 million tonnes, whilein Australia it is between 25-30million tonnes. Hence, we selectthe dumpers and otherexcavating machineryaccordingly, and we deploy thelatest technology.

Why is NMDC not doingvalue addition to iron ore andjust selling the ore in its rawform?

We do value-addition at everystage, from the excavation stageto breaking huge iron ore blocksinto useable size for the steelplants. You may be aware thatiron ore mining is a complex andtechnology-driven process. So itis not correct to say that there isno value addition. Even majorglobal companies do it theNMDC way.

What is NMDC’s currentannual production?

We produce over 27 milliontonnes annually. In the next 18-

24 months we will produce over50 million tonnes.

What are NMDC’s plans inthe near-term?

As you are aware, NMDC isa ‘navratna’ company. We havean impressive track record. Weare going to start mining in Bastardistrict of Chhattisgarh. The planis to mine seven million tonnesof iron ore. Another seven milliontonnes is planned to be mined inKarnataka. We have set up ajoint venture company with theChhattisgarh Government for the

mining activity. Similarly, wehave invested over Rs. 572crores for a pellets plant whichwill produce pellets from 2013.

We have setup a three mtpain Nagarnar (in Bastar district).I can assure you that this will bethe most modern steel plant inIndia. We have plans to expandit further.

Is nothing happening inAndhra Pradesh Mr. Nanda?

Laughs. Yes. Yes. TheGovernment of Andhra Pradesh

is very receptive and we haveset up a Joint Venture with APfor diamond excavation. We havealso asked for more iron oremines and as you must be aware,we have a major presence inAndhra Pradesh with even ourRegistered Office being locatedin Hyderabad.

Mr. Nanda they say that

though NMDC and RINL arelocated in AP you are nothelping RINL with preferredsupplies of iron ore?

Well Mr. Sabharwal this is notcorrect at all. RINL whichoperates Vizag Steel Plant is ourvery preferred customer and infact we are in the process ofsigning an MoU with RINL forinstallation of 336 Km lengthSlurry Pipeline from Jagdalpur toVisakhapatnam at a cost of overRs 2200 Crores and a 4 Mtpacapacity Pellet Plant atVisakhapatnam.

M/s Mecon shall be theconsultant for this entire project.

Who are NMDC’s majorcustomers?

Almost all the Steel Plantssource iron ore from us, includingSAIL, RINL, JSW, Essar etc.The list is getting longer andlonger.

There is a feeling that ironore that NMDC mines shouldbe converted into steel andnot sold in the domesticmarket or exported. Do youagree?

The high-quality ore producedby us is used in the domesticmarket, and not exported. Butwe do export iron ore as per thebilateral agreements signed bythe Government of India withcountries like Japan, South Koreaand others.

There is a talk of mergingNMDC with RINL. Do youthink that the merging of alisted iron ore miningcompany, with a government-owned steel manufacturer isa good idea ?

I am not aware of any suchdevelopment, but I do not see anymerit in such a merger. In anycase, it is the prerogative of thegovernment of India, which hasa majority stake in NMDC andowns RINL, to decide on themerger of the two companies.

You are painting a veryrosy picture of NMDC, butthen why is your stock doingso badly in stock market?

(Smiles) Mr. Sabharwal, I amnot competent to comment on thebehavior of our equity shares onthe stock exchanges.

Do you have any messagefor our readers?

Yes, NMDC is a ‘navratna’company. So, remain invested.

VIS News Service

Even as the government hasmade known its intention of

screening foreign inflows fromtax havens such as Mauritius, asizable chunk, in terms of value,of the 25 foreign directinvestment (FDI) proposalsworth Rs.2,973.40 crore thathave received the nod originatefrom the Indian Ocean islandnation.

According to a FinanceMinistry statement here onTuesday, based on therecommendations of the ForeignInvestment Promotion Board(FIPB), headed by EconomicAffairs Secretary R. Gopalan,Mauritius-based AIF III Sub Pvt.Ltd. has been permitted to induct

25 FDI proposals worth Rs.2,973 crore clearedforeign investment worthRs.1,000 crore into the units of a‘Fund’ constituted as a ‘Trust’.

Also flowing in fromMauritius, as per the proposal ofMozart Limited, will be a foreigninvestment worth Rs.300 crore asinfusion into an existing companyin the pharmaceuticals segmentby way of brownfield investment.

Likewise, in the financialservices sector, SNC-LavalinMauritius Limited has obtainedthe go-ahead to bring in FDIworth Rs.51.02 crore as inductionof foreign equity in ‘investingcompany’.

Among other major proposalsapproved, Mumbai-basedMicroqual Techno Ltd. has beenallowed to infuse foreign equityby bringing in foreign direct

investment worth Rs.522.90crore to carry out its business ofwireless telecommunications.Plethico PharmaceuticalsLimited, also based in Mumbai,has been given permission to issueforeign currency convertiblebonds (FCCBs) worth Rs.500crore to carry out the businessof drug discovery anddevelopment.

Some of the other FDIproposals approved pertain toKarnataka-based Kintetsu WorldExpress (India) entailing aninflow of Rs.267.69 crore,Genworth Financial MortgageGuaranty India envisaging aninvestment of Rs.124 crore andSun Pharma ResearchCompany’s application forinfusion of foreign equity through

Rs.35,000-cr debt recast package for textile unitsThe Centre has approved a Rs.35,000-croredebt restructuring package for the textilesector, which has been faced with massiveunemployment and shutdown of business.

An announcement in this regard wasmade by the Commerce, Industry andTextilesMinister, Mr. Anand Sharma, whomet the Finance Minister, Mr. PranabMukherjee on May 30 to seek a resolutionon the issue, impacting lakhs of peopleemployed in the sector.

According to an official statement issuedin New Delhi, during the meeting, it wasagreed that there was a need to support theindustry in this crisis time.

Total outstanding debt of the sectorstands at Rs.1.56 lakh crore, of which debt

worth Rs.35,000 crore needs restructuring.“Directions would be issued to banks in thisregard to consider this on a priority basis,’’the statement adds.

Mr. Sharma said there was an agreementwith the Finance Ministry that the debtrestructuring package would be consideredon a case-by-case basis by banks. TheFinance Ministry would examine, inconsultation with the Reserve Bank ofIndia, for a two-year moratorium on termloans, special provision in NPA norms toavoid asset reclassification and workingcapital eroded to be converted into workingcapital term loans, repayable over 3-5 years.

An inter-ministerial committee of seniorofficials would be constituted to coordinate

with the industry and banks on expeditiousrestructuring.

Textiles industry associations hadrepresented to Mr. Sharma pointing to thehigh stress levels and industry sickness. Theysought his help to secure revamp package.

Earlier, the Finance Ministry hadconstituted a committee under theChairmanship of Mr. M. D. Mallya,Chairman of Bank of Baroda, forexamining the restructuring proposals for thesector.

Apparel Export Promotion CouncilChairman, Mr. A. Sakthivel thanked Mr.Sharma and Mr. Mukherjee for granting thedebt restructuring package and giving reliefto the industry.

.

VIS News Service

O il and Natural GasCorporation (ONGC) has

posted more than a two-fold riseof its net profit in the Marchquarter at Rs.5,644 crore.

Briefing journalists in NewDelhi on May 30, the company’sChairman and ManagingDirector, Mr. Sudhir Vasudevasaid the net profit in the January-March quarter rose to Rs.5,644crore from Rs.2,791 crore a yearago. ONGC paid Rs.14,170 crorefor subsidising diesel, domesticLPG and kerosene as againstRs.12,136 crore out go in Q4 inthe previous fiscal.

The subsidy out go was madegood by rupee depreciation fromRs.47.95 in Q4 2010-11 toRs.50.29 to a U.S. dollar in 2011-

ONGC Q4 net more than doubles12. Every rupee depreciationagainst the U.S. dollar increasesONGC’s top line by aboutRs.1,600 crore.

But for the subsidy outgo,ONGC profits would have beenhigher by over Rs.8,000 crore, headded. Mr. Vasudeva saidONGC got $44.32 on sale ofevery barrel of crude oil. ONGCplans to invest Rs.121,737 crorein the XII Plan. This fiscal, it hasa capex of Rs.30,432 crore. Itssales were up 22 per cent atRs.18,976 crore.The companypaid a record Rs.44,466 crore infuel subsidy in 2011-12, up fromRs.24,892 crore. The net profitin 2011-12 rose 33 per cent toRs.25,123 crore. But for the fuelsubsidy outgo, the net profitshould have been over Rs.50,000crore.

Cathay Pacific, one of theworld’s leading international

air cargo carriers, announces itsexpansion in India with a newtwice-weekly freighter service toHyderabad. This developmentmakes Cathay Pacific the firstairline to offer air cargo serviceslinking India’s fourth mostpopulous city with East and NorthAsia. The first flight to RajivGandhi International Airport(RGIA) from Bengaluru. landedat 2010 hrs on May 17.

Cathay Pacificcargo servicesfrom RGIA

The Director (Technical) of NMDC Mr. N.K. Nanda.

ScanInterview