Coal India (CIL), the world's biggest miner, will miss its production target for 2012/13 by 5-6 million tonnes, but will meet its supply target of 470 million tonnes by drawing down from stocks. The production target is 464 million tonnes for the current fiscal year that ends in March. The state-run miner, which produces about 80 percent of India's total coal output, has a stockpile of 47 million tonnes as of today, nearly 24 million tonnes lower than its opening stocks at the beginning of this financial year. Besides, taking forward the process to assess reserves of its mines in Mozambique, the company has invited bids for taking up drilling at the blocks. The development comes at a time when the coal producer is facing problems in enhancing coal production and the country is facing shortage of the fossil fuel.
Indian Oil Corporation (IOC) is expanding its network and will invest Rs 10,000-11,000 crore during the 2013-14 fiscal. IOC would spend Rs 56,000 crore over the next five years on constant price basis in the 12th Plan period. Additionally the company would spend Rs 3,500-Rs 4,000 crore a year on non-plan areas like changing pumps. Meanwhile, IOC has implemented 80-85 of the MB Lal committee's recommendation on safety while it was 72 percent for the entire industry. The company is also planning to engage an independent external agency for handholding support to promote safety culture in the organization.
Lanco Infratech is in talks with strategic and financial investors to sell stake in three power projects separately to raise over Rs 2,500 crore after attempts to sell stake in its arm that owns all the units failed. The shift in strategy comes after almost a year of attempts by Lanco to raise up to Rs 4,150 crore by selling a minority stake in its power holding company to private equity funds or strategic investors. Now, the company aims to raise over Rs 1,500 crore by selling 50-75 % stake in its 1,200 mw coal-fired Udupi power plant. It is also talking to investors to sell stake in its operational 600-mw Amarkantak and under-construction 1,320-mw Babandh power projects to raise a total of Rs 1,000 crore. Lanco Infratech has been struggling to stay afloat as it deals with a staggering debt of Rs 35,500 crore, its inability to recover almost Rs 3,000 crore of receivables from state discoms even as it is forced to run plants at low capacity due to paucity of fossil fuel.
As differences simmer over scope of CAG audit of its flagging KG-D6 fields, Reliance Industries (RIL) has stated that it is not obliged to provide full access to documents relating to years that are not under audit. Disagreements over scope of audit cropped up on the very first day the Comptroller and Auditor General of India (CAG) began the second round of audit of spending on eastern offshore KG-D6 fields with RIL alleging that the auditor was not confirming if the accounts scrutiny would be as per the provisions enshrined in the Production Sharing Contact.
India Cements plans to expand its capacity in Rajasthan with the possible investment of around Rs 650-700 crore to cater to increasing demand in Gujarat and Madhya Pradesh. The present capacity of the plant in Rajasthan is over one million tonnes, and plans are afoot to add one more line with similar capacity. The expansion would help the company cater to the Gujarat and Madhya Pradesh markets. With a total capacity of 15.5 million tonnes, the company has plants in Tamil Nadu, Andhra Pradesh and Rajasthan. The company has been facing challenges operationally, especially on the cost front. Despite of higher power tariff in Andhra Pradesh and Tamil Nadu, hefty power holidays and subdued cement demand, the company was able to post healthy growth numbers.
Auto major Mahindra & Mahindra (M&M) will invest 80 billion Korean Won (about $ 73.73 million) on its Korean subsidiary Ssangyong Motor Company (SMC), through subscription of a preferential allotment. The said preferential offer would result in an increase in the paid-up capital of SMC by 11.9 percent and increase in M&M's stake in SMC to 72.85 percent from 69.63 percent. The said issue would facilitate improvement of the financial structure of SMC and proceeds of the issue would be utilized by SMC for new product development and strengthen its competitiveness. Mahindra had invested a total of KRW 522.5 billion in March 2011 (new paid-in capital increase of KRW 427.1 billion and 95.4 billion in corporate bonds) to acquire 69.63 percent of the equity in SMC.
Homegrown home textile company Welspun India (WIL), part of the $3.5 billion Welspun Group, is looking at raising revenues from the domestic market to 20%, from the current 5%, by 2020. The company is keen to expand to tier II and III cities and towns of India apart from getting to urban markets through shop-in-shops and a strong distribution network, apart from institutional sales to hotels. Welspun has set a target to have 100 shop-in-shops under the brand Spaces every year. Having shot to fame by manufacturing towels for the iconic Wimbledon Championships, the company is keen to associate with events in India. Besides, aspiring to be a $1 billion entity in four years, the company has forayed into new territories. Welspun's major markets are US and EU.
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