Mining – India
1. NTPC plans to acquire coal mines overseas
2. India Signs Agreement With Namibia for Diamond, Copper Mines
3. Deadline ends, KSU to protest
4. India, Mongolia sign uranium agreement
5. Nalco in talks to set up nuke power plant
6. Writ seeking CBI probe into Orissa mining scam
7. To diversify into gold mining
Mining – International
8. UK Coal raises £100 million to pay down debt
9. British mining firm to explore gold, copper sites in Cordillera
10. 'We don't need a new mining law'
11. Macarthur Coal gets mining lease for Middlemount mine project
12. Zimbabwe opens mining conference
13. Rio, Harry Winston Cancel Diavik Mining Shutdown
Other News
14. UNIVERSAL PARTCIPATION – OZONE PROTECTION UNIFIES WORLD
15. Indian companies making inroads into African countries
16. No Forceful acquisition of land for railway projects
17. Tribal Affairs Ministry sanctions Rs. 116.90 crore for Madhya Pradesh under Central Assistance to Tribal Sub Plan
18. Joshi counters charge of packing NREGA body with Cong MPs
Mining – India
NTPC plans to acquire coal mines overseas
fe Bureau
Posted: Wednesday, Sep 16, 2009 at 0350 hrs IST
Updated: Wednesday, Sep 16, 2009 at 0350 hrs IST
Mumbai: India’s largest power generator, NTPC, which is currently engaged in capacity addition of 22,430 mw by the end of 11th plan, is exploring opportunities for acquisition of coal blocks or coal mines in South Africa, Indonesia, Mozambique and Australia. NTPC chairman and managing director RS Sharma told FE on Tuesday, “It is at a preliminary stage. As far as the acquisition of coal mines in Indonesia is concerned, NTPC has roped in Australian firm Macquarie as a consultant to do the due diligence.” Sharma said the NTPC board was yet to take any decision on acquiring mines or picking up minority stake in coal blocks in either of these countries.
NTPC sources, however, said the company plans to buy a minority stake in Kalimantau coal mines in Indonesia to achieve fuel security.
NTPC, which currently produces over 30,000mw, will need 150 million tonne of coal for 2009-10. It plans to import nearly 12m tonne. After adding the proposed 22,430mw by end of 2011-12, NTPC's coal requirement will shot up to 225--250 m tonne. The company will import around 20m tonne then.
NTPC hopes to produce 20m tonne from its captive coal mines, which are under various stages of development. According to NTPC's corporate plan, the company has proposed a coal mining capacity of 50m tonne per annum by 2017. The company is currently developing four coal blocks--North Karanpura and Brahmini (both in Jharkhand), Ib Valley (Orissa), and Mand Raigarh (Chhattisgarh).
http://www.financialexpress.com/news/ntpc-plans-to-acquire-coal-mines-overseas/517480/
India Signs Agreement With Namibia for Diamond, Copper Mines
By Debarati Roy
Sept. 16 (Bloomberg) -- India signed an agreement with the Namibian government on Aug. 31 for access to copper and diamond mines in the African nation, India’s Mines Minister B.K. Handique said today in an interview. The accord is part of India’s policy to secure raw material for the metals industry, Handique said, while attending a mineral industry conference in Bangalore.
To contact the reporter on this story: Debarati Roy in Mumbai atdroy5@bloomberg.net
Last Updated: September 16, 2009 02:04 EDT
http://www.bloomberg.com/apps/news?pid=20601116&sid=ayUNwfB5DTH0
Deadline ends, KSU to protest
OUR CORRESPONDENT
Shillong, Sept. 15: Meghalaya was today staring at an agitation by the Khasi Students Union after the latter’s 15-day deadline to scrap the cabinet decision to allow the Uranium Corporation of India Limited to carry out pre-development projects at the mining sites evoked no response.
As the deadline ended at 5pm today, the KSU decided to announce its agitation programme after a meeting tomorrow.
“As the government had not responded positively, the central executive committee of the KSU will meet tomorrow to discuss our future course of action,” KSU president Samuel Jyrwa said today.
He claimed that the rally organised by the KSU last evening at one of the mining sites in West Khasi Hills was well attended with several landowners rejecting the project.
“The landowners of Domiasiat and Nongtnger are against mining,” he said.
According to him, the landowners who are supporting uranium mining had been “paid” by UCIL.
On the rally at Iew Umdohlun, West Khasi Hills yesterday, Jyrwa said that the people who attended the meeting agreed with the views of the KSU that mining would only cause harm.
Besides the KSU, Langrin Youth Welfare Association and political party HSPDP also opposed the activity in West Khasi Hills.
According to Jyrwa, the UCIL-sponsored projects were not meant for the development of backward areas. He said that the Rs 209-crore pre-development project would only benefit the staff and family members of UCIL.
HSPDP president H.S. Lyngdoh criticised the 12 cabinet ministers for taking an “anti-people stand” on mining.
He said uranium mining would lead to health and environmental hazards, besides largescale influx of illegal immigrants.
Chief minister D.D. Lapang last night said that the government would not change its stand on the issue of uranium mining. The government had sent a letter to the KSU that the cabinet would not go back on the August 24 decision to allow the UCIL to carry out the spadework at the mining sites, he added.
http://www.telegraphindia.com/1090916/jsp/northeast/story_11499036.jsp
India, Mongolia sign uranium agreement
Published: Sept. 15, 2009 at 7:10 PM
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NEW DELHI, Sept. 15 (UPI) -- India signed a civil nuclear energy agreement with uranium-rich Mongolia on Monday.
The memorandum of understanding for "peaceful use of radioactive minerals and nuclear energy" was signed during Mongolian President Elbegdorj Tsakhia's state visit to India.
According to a statement issued by the Mongolian presidency, Indian officials expressed a "willingness to cooperate in mining, especially in uranium sector."
Tsakhia pledged to support Indian involvement in the minerals sector through government policy and "mutually beneficial long-term cooperation." He said Mongolia appreciated "India's notion to develop our cooperation in the uranium sector, as we are always open to such proposals."
Mongolia claims to have 6 percent of the world's uranium reserves.
India, Asia's third-largest energy consumer, now has a nuclear power generation capacity of 4,120 megawatts, which accounts for 3 percent of its total capacity. By 2030 it hopes to boost that amount to 60,000 megawatts, Shyam Saran, special envoy to Indian Prime MinisterManmohan Singh, said Jan. 8, Bloomberg reported. But India lacks its own uranium resources.
In September 2008 India received a waiver from the nuclear suppliers' group to undertake nuclear commerce, lifting a 30-year ban on purchasing uranium. Since then, it has signed nuclear deals with France, Russia, the United States and Kazakhstan.
Although Mongolia is not a member of the NSG, it had supported India's case for an exemption at the International Atomic Energy Agency meeting prior to the NSG talks.
Nuclear experts believe that the supply of uranium is more critical for India than access to enrichment and reprocessing technology.
To meet India's domestic shortages, the company is slated to spend at least $1.2 billion to secure equity in uranium mines abroad.
India is looking to secure long-term uranium supply contracts from Kazakhstan, Canada and Brazil as it orders reactors totaling some $14 billion from overseas, said state-run Nuclear Power Corp. of India Chairman Shreyans Kumar Jain said in early June, Bloomberg reports.
Mongolia's uranium production cooperation agreement with Russia earlier this year was followed by a deal to develop Mongolia's Dornod uranium deposit in a 50-50 joint venture with Russia's AtomRedMetZoloto, reports World Nuclear News. That upset Canada-based Khan resources, which has a 100 percent stake in an exploration lease and a 58 percent stake in a mining lease related to the deposit.
Prior to that, the Mongolian government suspended exploration licenses and passed a new nuclear energy law to the surprise of Western companies that already have uranium interests in the country, said World Nuclear News.
http://www.upi.com/Energy_Resources/2009/09/15/India-Mongolia-sign-uranium-agreement/UPI-60251253056200/
Nalco in talks to set up nuke power plant
Express News Service
First Published : 16 Sep 2009 08:13:43 AM IST
Last Updated : 16 Sep 2009 09:04:53 AM IST
KORAPUT: Nalco has begun exploratory talks to establish a nuclear power plant with the support of Nuclear Power Corporation of India Limited (NPCIL) in Ganjam district. Nalco CMD Chittaranjan Pradhan said this while addressing the media at Damanjodi here yesterday. Pradhan also said a power plant is coming up at Jharsuguda. Moreover, a smelter plant in Iran is also in the pipeline. Besides, there is a proposal to set up a coal-based power plant in Indonesia.
Commitment and joint efforts of administration, people and Nalco authorities could bring about development and make people self-reliant in the periphery villages of company’s Damanjodi project, he said.
He expressed concern that people residing in periphery villages are still living in pitiable conditions and the health services are not up to the mark despite the project completing 25 years. He said Nalco has requested district administration to identify a land for construction of a 25-bed hospital within 20 km radius of the project.
He said machinery of the company has been upgraded to match the best in the industry, but the input cost remains high with 21 per cent of the total cost going towards human resource management. There is a need to produce greater results with minimum inputs especially at a time when the entire industry, mainly the aluminum sector, is facing hard days due to recession. He said the company is planning to go for massive expansion both in the country and abroad by maximum utilisation of its human resource. High grade bauxite reserve of Pottangi mines would support the third phase expansion while the process for obtaining the mines is in the last stage.
Deals are in the final stage for acquiring mining areas at Gudem and K.R.Konda mining sites at Chintapalli in Visakhapatnam district and some other places near Godavari region in the neighboring Andhra Pradesh, he said. Nalco Mines and Refinery Complex executive director P.K.Mahapatra and general manger (H&A) R.P. Swain were present.
http://www.expressbuzz.com/edition/story.aspx?Title=Nalco+in+talks+to+set+up+nuke+power+plant&artid=vnhAb2qycW8=&SectionID=mvKkT3vj5ZA=&MainSectionID=fyV9T2jIa4A=&SectionName=nUFeEOBkuKw=&SEO=
Writ seeking CBI probe into Orissa mining scam
STAFF WRITER 16:5 HRS IST
Cuttack, Sept 15 (PTI) Orissa High Court has issued notices to the CBI, Centre and state government on a petition seeking probe by the premier investigating agency into alleged multi-crore mining scams in the state.
Pratap Rout, an advocate of the High Court, in his writ yesterday appealed to the HC to direct Centre to institute CBI probe into Keonjhar and other mining scams which have surfaced in recent days in Orissa.
Adjudicating over the PIL, the bench of Acting Chief Justice I M Quddusi and Justice Sanju Panda had issued notices to the CBI, Centre and state government to file their counters within four weeks.
The case would come up for next hearing after receiving the counter affidavits from the opposite parties, the bench ordered.
http://www.ptinews.com/news/283211_Writ-seeking-CBI-probe-into-Orissa-mining-scam
To diversify into gold mining
Mahesh Kulkarni / Bangalore September 16, 2009, 0:53 IST
MSPL is planning to diversify into gold mining later this year. The company has acquired gold mines at Mahalingapura village, about 20 from Gadag in north Karnataka. These mines, which were found originally by the Britishers in the early 20th century were later passed on to state-owned Bharat Gold Mines Limited and later to Hutti Gold Mines Ltd.
The company has planned an investment of Rs 550 crore for the proposed foray into gold mining. However, both the companies abandoned these mines for lack of sufficient quantity of gold and uneconomical prices for the yellow metal in the domestic market. Subsequently, MSPL has come forward to extract gold from these mines given the current high prices for gold in the local market.
“Meda Venkataiah, executive director-mining, MSPL Limited said, “We have already received reconnaissance permit from the state government to extract gold from these mines. We plan to extract around 2 tonnes of gold per annum here. At the current market prices for gold hovering over Rs 15,000 per 10 gram, it is economical to extract gold here. The breakeven point at this production rate for open cast mine is Rs 8,000 per 10 gram and Rs 14,000 when we dig into the underground mining.”
http://www.business-standard.com/india/news/to-diversify-into-gold-mining/370172/
Mining – International
UK Coal raises £100 million to pay down debt
Robert Lindsay
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UK Coal today announced a £100 million share placing and open offer which will nearly double its market value as part of a deal with its banks to extend the due date on £172 million in debt.
Today’s announcement was greeted with relief by investors who sent the shares in the company up 9 per cent, or 9.81p, to 114p in early trading.
The company's largest shareholder, Peel Holdings, with 28.28 per cent, is backing the issue of 142 million new shares at 75p each, a 37.6 per cent discount to yesterday's closing price.
The new shares will represent 90 per cent of its existing share capital. Peel Hunt, controlled by entrepreneur, John Whittaker, has committed to participate to retain the size of its stake. Evolution and Numis are underwriting the remainder of the shares
The company said that without the fund-raising, it may breach a debt covenant due to tested next month: "Should the capital raising not proceed, the company believes that there may be a breach of the loan- to-value covenant to be tested in October 2009." It may also fail a debt test due at the year-end on December 26.
The deal, which must be approved by shareholders at a meeting on October 9, is a condition the banks required before they would agree to extend the due dates on four loan facilities totalling £172 million, two of which were due to be repaid in September next year.
The company said the cash would help pay down debt, allow it to continue to invest in new equipment to iron out production problems and extend the life of three of its four deep coal mines and would allow it to "take advantage of longer term opportunities in its mining and property activities."
It has been dogged by its deep mine production problems, being locked into long term coal supply contracts at relatively low prices and by the collapse of the property market just as it was trying to sell disused coal mine sites for development. It said today that trading was continuing in line, although production at its Thoresby deep mine was still underperforming.
David Jones, chairman of UK Coal, said: 'In the recent past, UK Coal has been constrained by the pricing from legacy contracts and production difficulties in certain of its deep mines.
"Management has taken actions to address these issues. The board is, therefore, confident that the combination of the improving prospects for our mining activities and the significant value upside in our property business provides UK Coal with the opportunity to deliver strong value growth to shareholders."
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article6836552.ece
British mining firm to explore gold, copper sites in Cordillera
(philstar.com) Updated September 16, 2009 02:05 PM
MANILA, Philippines (Xinhua) -- Anglo American PLC Group, the world's fourth-largest diversified mining group, is exploring copper and gold deposits in several areas of Cordillera region, a ranking official of the company said today.
In an interview with reporters during a mining conference held here, Roderick Wattt, Anglo American's exploration manager for the Philippines, said the firm has already secured an exploration permit from the government to study a potential 8,000-hectare mining site in the northern province of Apayao.
Watt said that the company will pour in $1 million to finance the exploration.
He added that the company is applying for a permit to explore other provinces in the Cordiller region, home to the country's major copper and gold mines.
This is not the first time that the London-based mining firm has ventured in the Philippines. Anglo American has earlier explored the copper and gold mining deposits in Boyongan mine in Surigao province. The company, however, decided to drop the project as their study showed that the mining site would not produce an acceptable rate of return.
The government has been actively seeking investors in its growing mining industry. Since 2004, over $2 billion in both foreign and local investments have been poured in the country.
http://www.philstar.com/Article.aspx?articleId=505773&publicationSubCategoryId=200
'We don't need a new mining law'
By Marianne V. Go (The Philippine Star) Updated September 16, 2009 12:00 AM
Romualdez
MANILA, Philippines - Chamber of Mines of the Philippines (COMP) president Benjamin Philip Romualdez urged Senate President Juan Ponce-Enrile yesterday to be circumspect in acting on a number of bills being filed by party-list groups seeking to amend or even pass new mining laws.
“We do not need a new law,” Romualdez said, adding that “the current Mining Laws should be given a chance to work properly.”
Romualdez noted a “constant filing” of new bills seeking to repeal or amend the existing Mining Law from party-list groups.
Enrile, who formally opened yesterday the Mining Philippines 2009 Exhibit at the Sofitel Hotel in Pasay, acknowledged the economic benefits that the mining industry can bring to the country in terms of investments and employment.
However, Enrile urged local mining firms to “exercise prudence and extreme caution” in their mining activities.
Enrile noted that if mining activities are properly conducted, the sector could provide much needed employment for Filipinos who are currently forced to seek employment outside the country.
The mining sector, Enrile added, has been a growth driver for the Philippine economy and if properly managed would continue to be an engine of growth.
Romualdez assured that while the sector continues to encounter occasional slumps, it remains a bright spot especially as the global economy continues to recover.
http://www.philstar.com/Article.aspx?articleId=505521&publicationSubCategoryId=66
Macarthur Coal gets mining lease for Middlemount mine project
Wednesday, 16 Sep 2009
Macarthur Coal announced that it has been granted a mining lease for its Middlemount mine project. The mine is being developed by Middlemount Coal, an incorporated JV between Macarthur Coal and the Noble Group.
Middlemount Coal expects on site construction of the coal handling and preparation plant and mine site infrastructure to commence shortly. Construction of the CHPP and other site infrastructure will generate up to 160 jobs during peak activity, with the CHPP expected to be completed during 2010.
Mining operations are expected to start in the 2010 calendar year to supply ROM coal for commissioning of the CHPP, which will create around 80 full time jobs through Leighton Contractors, as contractor for the project. Mining operations will be undertaken 24 hours per day, seven days a week and will be performed using hydraulic excavators and trucks.
Ms Nicole Hollows CMD of MacArthur Coal said that the granting of the mining lease is a major milestone for the project and enables construction and development of the project to commence immediately. She added that "The Middlemount project is the first step in seeking to achieve our company wide aim of doubling our production in the next five years."
http://steelguru.com/news/index/2009/09/16/MTEyMDU0/Macarthur_Coal_gets_mining_lease_for_Middlemount_mine_project.html
Zimbabwe opens mining conference
SHARE BOOKMARK PRINT EMAILRATING
By KITSEPILE NYATHI, NATION CorrespondentPosted Wednesday, September 16 2009 at 12:03
HARARE, Wednesday - A major mining conference that seeks to explore investment opportunities and ways to leverage Zimbabwe’s economic recovery opened on Wednesday with more than 200 foreign investors participating.
The mining indaba, which is running under the theme “Reviving Zimbabwe’s Mining Sector, clear way forward” will be addressed by President Robert Mugabe and Prime Minister Morgan Tsvangirai.
The mining industry at its peak accounted for the about half the country’s foreign currency earnings and contributed over seven percent of the Gross Domestic Product before Zimbabwe’s economy took a plunge in 1997.
Zimbabwe’s economy had been on the decline until early this year owing to a number of questionable policies by Mr Mugabe’s previous administration.
However, there is renewed interest in the country by foreign investors following the formation of a unity government by Mr Mugabe and Mr Tsvangirai seven months ago.
“There has never been a better time than now for investors to gain access to good mineral resources in the country,” said Mines and Mining Development Minister, Mr Obert Mpofu.
“The two days will provide a great opportunity for all of us who are interested in mining to share ideas on the latest developments in the sector.
“It also provides a platform for colleagues and stakeholders in the mining sector to network with a view to accelerate investment in Zimbabwe.”
Investors will be seeking assurance that the new political dispensation in Zimbabwe following the formation of the unity government will be permanent.
Other issues expected to dominate the indaba include access to lines of credit to increase production activities, legislation pertaining to mining and opportunities for investment as well as the state of the industry.
Mr Mpofu said Zimbabwe had good geology, which will prove to be an incentive to prospective investors.
Zimbabwe is a major world producer of gold, platinum, iron ore, nickel and of late diamonds.
http://www.nation.co.ke/News/africa/-/1066/658782/-/item/1/-/d3bdc2/-/index.html
Rio, Harry Winston Cancel Diavik Mining Shutdown
By Rebecca Keenan
Sept. 16 (Bloomberg) -- Rio Tinto Group, the world’s third- largest mining company, and Harry Winston Diamond Corp. canceled a six-week shutdown of the Diavik mine in Canada as demand rises.
“We do not foresee a return to extreme conditions that would warrant a further shutdown,” Harry Winston said today in a statement. The mine is 40 percent owned by Harry Winston and London-based Rio Tinto, the operator, controls the remainder.
Diamond prices are rebounding after a slump that slashed profits at ZAO Alrosa, Rio and De Beers. All three producers have restarted mines and processing capacity in the past three months in anticipation of economic recovery in the U.S. and increased jewelry demand in China and India.
Diavik was to be closed from Dec. 1 to Jan. 11 following a summer shutdown that finished on Aug. 24. The mine is now producing at pre-shutdown levels, Harry Winston said.
Rio gained 2 percent to A$60.18 at the 4:10 p.m. Sydney close on the Australian stock exchange. Diamonds and copper accounted for 32 percent of its operating income last year.
Rio this week said it will resume work on the A$1.8 billion ($1.5 billion) expansion of the Argyle diamond mine, the world’s largest, next year. Argyle is the world’s biggest diamond mine, according to Rio.
There will be a significant improvement in the performance of the Rio’s diamond unit because of a forecast recovery in price, Argyle’s Chief Operating OfficerKevin McLeish said in an interview from Perth, Australia, on Sept. 14.
Rising Prices
De Beers said in July that it expects demand to increase in the second half. Last month, it held its largest diamond sale this year, RBC Capital Markets said Sept. 1. De Beers, 45 percent owned by Anglo American Plc, is the largest producer of diamonds, followed by Alrosa and Rio, according to Rio Tinto.
Diamond prices have risen 4 percent from March 30 according to the Rapaport Diamond Trade Index. The index traded at $6,882 in the week ended Sept. 8. Prices had dropped 26 percent in the previous six months.
The index is formulated from the average price for the top 25 best quality 1 carat diamonds, color between D and H and clarity between internally flawless (IF) and very small inclusion (VS2).
Rio is maintaining a close watch on the diamond market, Diavik President and Chief Operating Officer Kim Truter said on the Diavik Web site. It may consider future shutdowns if the market deteriorates again, he said.
Rio’s share of production from Diavik was 853,000 carats of diamonds in the June quarter, down 44 percent from the year before because of a slowdown at the operations, according to Rio filings to the Australian stock exchange.
To contact the reporter on this story: Rebecca Keenan in Melbourne atrkeenan5@bloomberg.net
http://www.bloomberg.com/apps/news?pid=20601081&sid=asskn6E0miwk
Other News
UNIVERSAL PARTICIPATION – OZONE PROTECTION UNIFIES THE WORLD
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16:33 IST
The 15th International Ozone Day was celebrated on 16 September 2009 at the FICCI Golden Jubilee Auditorium in New Delhi to commemorate the signing of the Montreal Protocol on Substances that Deplete the Ozone Layer. The theme for this year was “Universal participation – Ozone protection unifies the World”. Shri Jairam Ramesh, Minister of State for Environment & Forests was the Chief Guest on this occasion. Speaking on the occasion Shri Ramesh said that India was one of the first developing countries to join the Montreal Protocol and pledge its commitment to protect the Ozone Layer. As a part of the accelerated phase-out of CFCs, India has completely phased out the production and consumption of CFCs as on 1 August 2008, 17 months prior to the agreed schedule.
The Minister said that the Montreal Protocol has been hailed as one the most successful examples of an international environmental treaty. With Timor-Leste becoming the 196th state to ratify it, it has become the first treaty to ever achieve universal participation. At a time when the world is trying to solve the problem of climate change, the International Ozone Day provided a timely reminder of how international cooperation can help to solve major global environmental problems.
Shri Ramesh informed that over 97% of controlled Ozone Depleting Substances (ODS) have been phased out by the Montreal Protocol. The end of 2009 will mark another significant milestone in the history of its implementation, with the use of potent ODSs –CFCs, Carbon Tetra Chloride(CTC) and Halons, except pharmaceutical-grade CFCs used in the manufacture of Metered Dose Inhalers (MDIs) – being ceased completely. While CFCs required for manufacturing for MDIs used by Asthma and Chronic Obstructive Pulmonary Disease (COPD) patients are still available in India, a national transition strategy to phase them out by 2013 is currently under implementation. A comprehensive Road Map and Action Plan to phase-out of production and consumption of HCFCs in various sectors in India has also been developed. The Government of India has also taken a number of policy measures, fiscal and regulatory, to encourage the early adoption of alternative technologies in this area by existing and new enterprises, the Minister said.
The Ministry of Environment and Forests (MoEF), with support from the Global Environment Facility (GEF) and the World Bank recently also launched the India: Chiller Energy Efficiency Project to accelerate the conversion of CFC-based chillers using new, more energy efficient technologies. Given that the project aims to reduce greenhouse gas emissions while simultaneously supporting the phase-out of consumption of ODSs, it is a good example of how the implementation of the Montreal Protocol can contribute towards addressing global warming.
A number of competitions had also been organized for children on 4 September 2009 to mark this occasion. Prizes to the winners of these competitions were presented by the Hon. Minister. The 11th Edition of the “Montreal Protocol: India’s Success Story” describing India’s activities under the Protocol was also released on this occasion.
The Madini Puraskar for the year 2008 were also awarded by the Hon’ble Minister to six Writers of Books in Hindi on environment and related subjects.
http://pib.nic.in/release/release.asp?relid=52669
Indian companies making inroads into African countries
16 Sep 2009, 0606 hrs IST, Vikas Kumar , ET Bureau
NEW DELHI: In the rough-and-tumble that is Africa, a clutch of Indian companies decided to brave it out. And many moons later, their adventure is
paying off — and how!
Every sixth person in Egypt uses an Indian FMCG product , an Indian company’s inverters are lighting up hundreds of African homes and an Indian drink is the favourite of children in that part of the world.
The world’s biggest consumer brands may be flocking to China and India for their growth scripts, but a raft of Indian companies like Marico, Luminous and Rasna, having made inroads into African countries, are swearing by the fortunes of the Dark Continent.
Sample this: Bangalore-based rose grower Karuturi Networks has catapulted itself to Africa’s biggest private sector land owner and even owns a top football club in Kenya! Power solutions provider Luminous recently won a pilot project from a South African telecom giant to prune the power consumption (and costs) of its telecom towers.
And Gurgaon-based SME Kalindee Rail Nirman, which takes up signalling and track-laying projects for the Indian Railways and the Delhi Metro, has been roped in by Ghana to conduct a study of its ageing railway network for upgradation.
The excitement is indeed palpable. Most African countries represent what management guru CK Prahalad had famously christened the bottom-of-the-pyramid (BoP) consumers , who may spend less on a product but collectively make up a huge consumption base that marketers cannot ignore.
“African growth of GDP, capital accumulation , and FDI have been higher than the global average in the period 1996-2007 ,” says Sanjay Kirloskar, chairman of Africa Committee at the Confederation of Indian Industry (CII).
Indeed, Indian companies have been quick to sniff the vast opportunities the African market offers. While investments by India Inc into Africa have traditionally been into core areas like mining and oil and gas, that is now changing with companies making a beeline for sectors like retail, textile and telecommunications.
Says Piruz Khambatta, chairman, Rasna International: “It’s a cost-conscious and low SKU (stock keeping unit) market.”
It’s also a market where distribution and logistics, up against a fledgling marketing machinery, are big issues. To circumvent this problem, Mr Khambatta has created products that have a longer shelf life. “In most African markets, we are number two or three,” says Mr Khambatta, who has also launched advertisements in local languages.
Most Indian companies have chosen the acquisition route to get a foothold in these markets. Bangalore’s Karuturi acquired rose plantations from Dutch rose grower Sher Agencies in Kenya, a deal that propelled it into the world’s biggest rose grower in one go.
Booming trade between countries
Not satisfied with that deal, the company has been on a land acquisition spree, so much so that its total land bank now stands at 3,40,000 hectares (around eight times the size of Greater Mumbai). Karuturi has also been given land on long lease in Ethiopia’s Gambella state for farm development. “We are possibly the world’s biggest private landowners now,” claims the company’s chairman, Ram Krishna Karuturi. His most cherished possession, however, is Sher Karuturi, a football club in Kenya that came as part of the Sher acquisition.
FMCG firm Marico too entered the Egyptian market by snapping up brands like Hair Code and Fiancée two years ago. Today, it boasts of a 60% share
in the country’s hairstyling market. The company’s chief executive of the international business group, Vijay Subramaniam, estimates that its brands in South Africa—the Caivil and Black Chic range of haircare products and the Hercules range of healthcare products—command 8-10 % of the ethnic hair care space.
“In Africa, we make products locally for local consumption. Our current business from Africa (Egypt and South Africa) is about 25% of our international business group’s turnover,” says Mr Subramaniam. While some brands are cashing in on the swell of consumerism across the continent owing to rising incomes and better awareness, others are benefiting from poor infrastructure and lack of public utility.
“We do $4-5 million in inverters, which we plan to grow four times to $20-25 million in the next three years. Our products have a bigger demand in highly populated and infrastructure deficit markets ,” says Luminous Power CEO Rakesh Malhotra . The company, which started selling UPS and inverters in the continent three years ago, now has its products available in 12 countries across west Africa (Nigeria, Ghana), east (Uganda, Kenya and Tanzania ) and parts of south Africa. Mr Malhotra estimates the brand’s share at 12-15 %.
India’s blossoming interest in Africa is revealed by a CII-Exim Bank report released in March 2009. Trade between the continent and India rose from $7 billion to $51 billion between 1997 and 2007, an increase of over seven times, said the report
http://economictimes.indiatimes.com/Corporate-Trends/Indian-companies-making-inroads-into-African-countries/articleshow/5016583.cms
No Forceful acquisition of land for railway projects
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13:7 IST
The Ministry of Railways has decided that there shall not be any forceful acquisition of land for the railway projects. Accordingly, it has been decided to comprehensively review Railway’s Land Acquisition policy to ensure that forceful acquisition of land, including agriculture land, is completely avoided. The focus of this review will be to facilitate transaction/purchase/acquisition of land directly from the land owner with complete transparency.
All existing land acquisition cases shall be critically examined in the light of the above review within a period of one month.
http://pib.nic.in/release/release.asp?relid=52659
1546 Water Resources Projects appraised by CWC
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15:42 IST
Central Water Commission (CWC) under Ministry of Water Resource has appraised more than 1546 Projects since 1961 till March, 2009. The appraisal of the project ensures that the project proposal is in tune with the overall development plan; the basic planning of the project is reliable and investigations are as per established norms. It is also ensured that international/inter-state agreements or tribunal awards for utilization of water are duly followed and the lay out and design of the project are optimal.
After confirmation of the techno-economic feasibility of the project, the Advisory Committee on irrigation, flood control and multipurpose projects headed by the Secretary, Water Resources considers the project for acceptance and thereafter it is recommended for investment clearance by the Planning Commission.
During the year 2008-09, technical examinations of 37 Water Resources projects (14 Major irrigation, 9 Medium irrigation and 14 Flood protections) were completed and accepted by Advisory Committee. At present 169 irrigation schemes (111 Major & 58 Medium) are under different stages of appraisal.
http://pib.nic.in/release/release.asp?relid=52665
Expert Committee to review the Motor Vehicle Act, 1988
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16:18 IST
The Government has constituted an expert Committee to review the Motor Vehicles Act, 1988 and to suggest changes therein. The Committee will be chaired by Shri S.Sunder, Former Secretary, Ministry of Surface Transport. It will review the Motor Vehicles Act, 1988 in a comprehensive manner in order to ensure that the provisions of the Act address present days requirements of the Road Transport Sector in an effective manner. It will also study the contemporary Act of the leading Asian countries like China, Japan etc. and make suggestions to adopt best practices suitable for India.
It will have ten members including Professor Dinesh Mohan, IIT (Delhi), Shri O P Agarwal, CEO & MD, UMTC, Shri S R Marathe, Director (ARAI), Pune, Shri Dilip Chenoy, DG (SIAM), and Transport Commissioners of Government of M.P and Karnataka amongst others. Shri S K Dash, Joint. Secretary (Transport), Ministry of Road Transport & Highways will be the Member Secretary. The Committee may co-opt any other member as deem appropriate by the Chairman.
The Committee will submit its report to the Ministry of Road Transport & Highways within a period of three months.
Tribal Affairs Ministry sanctions Rs. 116.90 crore for Madhya Pradesh under Central Assistance to Tribal Sub Plan
16:46 IST
The Ministry of Tribal Affairs has sanctioned a grant of Rs. 116.90,50,000/- (Rs. One hundred sixteen crore ninety lakh fifty thousand) for the State of Madhya Pradesh as regular allocation.
The first instalment of grant-in-aid of Rs. 58,00,00,000/- (Rs. Fifty Eight crore) has been released to the State Government towards Special Central Assistance to Tribal Sub Plan (SCA to TSP) for the year 2009-10.
Special Central Assistance to Tribal Sub Plan (SCA to TSP) is provided by the Ministry of Tribal Affairs to the State Governments as an additive to the State Plan to bring about a more rapid economic development of tribals in the States. The Scheme was launched during the 5th Five Year Plan. The objective and scope of SCA to TSP, which was originally meant for filling up of the critical gaps in the family-based income-generation activities of the TSP, has been expanded to cover the employment-cum-income generation activities and the infrastructure incidental thereto not only family-based, but also run by the Self-Help Groups (SHGs).
The ultimate objective of extending SCA to TSP is to boost the demand-based income generation programmes and thus raise the economic and social status of tribals. 30% of the funds released are meant for activities benefiting women beneficiaries.
The fund releases under SCA to TSP are based on the population and area of STs in the States concerned. From 2008-09, projects/activities are being approved prior to release of funds. The performance of the States is generally monitored through review meetings with the States and also based on Utilization Certificates and Progress Reports of activities furnished by the States.
http://pib.nic.in/release/release.asp?relid=52672
Joshi counters charge of packing NREGA body with Cong MPs
TNN 16 September 2009, 03:20am IST
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NEW DELHI: A combative rural development minister CP Joshi has defended packing a key NREGA advisory body with Congress MPs, saying he could not
give space to people who were opposed to the UPA agenda.
Joshi was battling questions on why only Congress MPs and social activists were made part of the Central Employment Guarantee Council when the RD ministry could have made it politically inclusive.
Rejecting the charge, Joshi said it was a political government and the mandate was for Congress. "It (nomination) is upto me. The government works for UPA agenda and I cannot give space to those who don't agree with our programme."
The blunt reply came as Joshi said the claim of CEGC having been made a loyal bunch was unfounded since the same people levelling this charge were also saying that social activists in CEGC were critical of his work. "How can the Council be packed with partymen while they are also criticising me?" he asked.
Joshi was speaking to reporters on the achievements of his two ministries -- RD and Panchayati Raj -- during the first three months of UPA government.
Amid all the hype about NREGA and convergence as also reports of corruption in it, Joshi announced that he would tour every state to check theimplementation of NREGA. Taking heed of comments of the Chief Justice of India that there was corruption in the job guarantee programme, he said he would hold a workshop with members of the judiciary and seek their suggestions on what was to be done to plug the loopholes.
While the minister highlighted the decision to give 50% women's quota in panchayats as an achievement, saying it would be cleared by Parliament in the next session, he was sceptical of the fate of the Bill regarding land acquisition which has been redflagged by Trinamool leader Mamata Banerjee. "The cabinet has cleared the Bill and when to introduce in it Parliament should be addressed to the parliamentary affairs minister," he said.
http://timesofindia.indiatimes.com/news/india/Joshi-counters-charge-of-packing-NREGA-body-with-Cong-MPs/articleshow/5015579.cms
Core area chaos at Namdapha
- Efforts to resettle tribals for conservation face twin hurdles
A STAFF REPORTER
Where to go?
Guwahati, Sept. 15: The Namdapha tiger reserve authorities need to relocate the Lisu tribals living in the core area of the park for wildlife conservation, but find themselves impeded by the twin problems of where and how to move them out.
The Wildlife (Protection) Act, 1972 as well as the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006,require that people staying in core areas be resettled for providing inviolate spaces to tigers/wild animals.
An official of Namdapha tiger reserve said there are 84 families which have been staying in the core area for more than a decade now and the authorities are hunting for a place where the Lisu tribals can live harmoniously.
“There is a 74 acre plot of land near Miao town and we are discussing the modalities with the district authorities,” he said.
However, the problem is that one cannot force these people to go out of the forest as it would complicate the situation further, he added. This is because the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, does not allow people to stay in the core area, but gives those who have been staying in the forest before 2005 the right to settle in other areas, making it difficult to move them out.
The Lisus migrated across the Patkai range from Myanmar into the present day Vijaynagar area in the early part of the last century (1930s-40s), settling in several locations along the Noa-Dihing river. The border between India and Myanmar had not been demarcated then, and the area was no man’s land with dense forests and rugged terrain.
If the Lisus agree to move, there are two models under the National Tiger Conservation Authority (NTCA) to chose from — pay them direct cash or set up a model village for them. The authorities are yet to decide which model to offer.
An expert team constituted by the NTCA visited Namdapha last week and discussed the steps needed to boost the tiger population in the reserve.
The team was sent by the NTCA after the reserve was graded as poor on the basis of its tiger density. According to the 2006 census, the 1,985-square-km Namdapha reserve has only 14 tigers.
Experts say the minimum population of tigresses in breeding age, which are needed to maintain a viable population of 80-100 tigers (in and around core), require an inviolate space of 800-1,000 square km.
Encroachment by Lisus and militancy have been cited as some of the main problems in Namdapha. Inadequate staff has also hit the reserve. It has only 32 field staff, including a few women on protection duty. The tiger, being an “umbrella species”, will also ensure a viable population of other wild animals (co-predators, prey) and forest, thereby ensuring the ecological viability of the entire area/habitat.
http://www.telegraphindia.com/1090916/jsp/northeast/story_11498494.jsp
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