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News Economy & Business May 2011 Highlights ► ECONOMY Growth. India‘s growth will pick up in 2011, buoyed by positive corporate sentiment and demand for infrastructure spending, according to the Organisation for Economic Cooperation & Development (OECD), an intergovernmental think-tank. OECD mentioned that India‘s current growth rate is moving at a sustainable rate, after the global recession, driven by a surge in private investment.OECD also recommended liberalisation of foreign direct investment in the retail sector to promote competition and help modernise supply chains, which will boost the economy further.According to OECD, India's real gross domestic product (GDP)

$7.8 billion) at the 5th Vibrant Gujarat Glob-

ucts — ladle furnace, vacuum degasser,

al Summit. Small and medium businesses

billet caster, small and medium capacity

from the state signed agreements during

sinter plant and blast furnace — for global

the twoday summit that concluded in capital

clientele. Additionally, Siemens VAI will set

Gandhinagar on Thursday promising invest-

a new factory to make steel plant equip-

ments abroad. Most companies investing

ment in India.

abroad were smaller companies following their larger state peers like Adani group, Zydus, Gujarat NRE Coke, Kiri Dyes, Motif Infotech, Jyoti CNC Limited, Hester Biosciences. The biggies have overseas businesses in USA, Europe, Japan, Brazil, South Africa, Australia, Indonesia, France, Germany, Nepal et al. Now smaller companies are expanding their footprint in countries like Australia and Canada.

In the meantime, other news sources announced that Indian steel companies are planning to form strategic tieups with global majors





ThyssenKrupp to access new markets, instead of bidding for these large units which will be expensive. Jindal Stainless and SAIL are the two large stainless steel companies that could likely look at adding larger and bigger customers by collaborating with the

growth at market prices in 2010-11 fiscal is

Tourism. The export of touristic know-how

global majors, and also by adopting newer

at 9.6 per cent, which would be 8.5 per cent

from Salzburg is booming. The first Indian-

technology as part of the global restructur-

this fiscal and 8.6 per cent in 2012-

Austrian tourism school is to be opened in

ing in the stainless steel industry.

13.Globally, the world‘s GDP is projected to

Karwar, some 350 km away from Goa, al-

increase by 4.2 per cent this year and by

ready in January 2012. 80 students will

4.6 per cent in 2012. In the US, activity is

commence their studies. The Indian hotelier

projected to rise by 2.6 per cent this year

wants to invest 17 million Euros in the be-

and by a further 3.1 per cent in 2012, while

ginning. The ―tourism software‖ from Aus-

in the Euro Zone growth is forecast at 2 per

tria, such as admission proceedings, teach-

cent this year and the next.

er training, curricula, master diplomas or

Prognosis. The commerce and industry ministry has set a target of achieving $500billion exports by 2013-14 (in 2010-2011,

quality assurance, will be provided in cooperation with the university of applied sciences Salzburg.

Pharmaceuticals. In a first-ever deal of a novel biologic molecule developed in India, Glenmark Pharma has entered into a licensing agreement with global major Sanofi to develop and commercialize a monoclonal antibody, GBR 500. This could involve potential payments of $613 million over a period of five years if commercialized. GBR 500, used to treat chronic autoimmune disorders, is the first biological compound de-

exports were approx. $246 billion) by strate-

Wind Power. Gamesa Wind Turbines, the

veloped and outlicensed by a domestic

gising the country‘s foreign trade through

Indian subsidiary of Spanish wind turbine


diversification of products and markets on

giant, Gamesa, announced the signing of

one hand and technological enhancement

an order with Caparo Energy India (CEIL)

on the other hand. It floated a strategy pa-

for the supply, erection and commissioning

per for this purpose where it had recom-

of 2,000 MW of turbine capacity for wind

mended certain specific areas such as skill

power projects to be set up in India.

Nanotechnology. Wipro, in collaboration with Belgian research institute IMEC is setting up a high-end nanotechnology R&D centre in Bangalore , which will focus on developing next generation intelligence sys-

development, focus on research and development and channelising incentives in a

Steel. German engineering technology ma-

tems for use in the healthcare, energy, and

proper manner.

jor Siemens AG plans to make India its

imaging and vision - including body area

global hub for manufacturing key steel plant

networks, which patients can wear and walk

equipment. The Kolkata-headquartered Sie-

around, while real time data is directly

mens VAI Metal Technologies — the steel

transmitted to hospitals or doctors.

► INDUSTRY/BUSINESS Vibrant Gujarat 2011. Foreign delegates looking for Gujarati investments mopped up proposals worth

technology arm of the multinational — has been designated to manufacture five prod-

35,000 crore (approx.

2 | India-Austria Newsletter - June 2011

Automotive. US auto-manufacturing giant General Motors Co. is to invest $500 million

News May 2011 Highlights (cont'd ) by 2012 in the expansion of its production

India/Germany-Japan Acquisition. India's

Investment II. Morgan Stanley Infrastruc-

capacity in India, reported Reuters. The in-

leading software services exporter, Tata

ture Partners (MSIP), a $4-billion global in-

vestment will be undertaken by GM‘s Indian

Consultancy Services (TCS), is eyeing ac-

frastructure fund, has committed to invest

unit, General Motors India Pvt. Ltd.

quisition opportunities in Germany and Ja-

up to $200 million in a joint venture (JV)

pan in the healthcare sector, its chief exec-

with Isolux Corsán Concesiones in India.

utive said, as the company aims to expand

Isolux Corsán Concesiones is an infrastruc-

its geographical presence and product of-

ture concessions subsidiary of the $4-billion


Grupo Isolux Corsán, specialising in large

Auto Components Sourcing. French carmaker Renault will source €80 million worth components this year from India to feed its overseas plants. The company sourced €35 million worth parts last year.

projects across construction, engineering India/Sweden Acquisition. Aditya Birla Group acquired Domsjö Fabriker, a leading

IT. Marking the biggest acquisition of the India IT industry, Nasdaq-listed iGate announced the completion of Indian Patni Computer Systems‘ acquisition and revamping of the top leadership. The combined entity will be known as iGate Patni. Chemicals. Reliance Industries is drawing ambitious plans to be a world leader in rubber, and is investing up to $12 billion in the chemicals business to tap the rapidlygrowing market for hygiene and healthcare products.

Swedish Speciality Pulp and Bio-refinery






cost, high-efficiency floating solar plant in

from a Swedish consortium.

partnership with Sunengy, an Australian


company, which invented the technoloIndia/Brazil Acquisition. Wipro Limited has signed a definite agreement to acquire an 80 per cent stake in Brazilian hydraulic cylinder manufacturer RKM Equipamentos Hidráulicos for an undisclosed amount. Ac-

three years. RKM would be a part of

includes Henkel's entire portfolio that includes Henko and Chek detergents, Pril dish cleaners and Fa deodorant, and rights to the multinational's future launches. India/Australia



Adani Group-owned Mundra Port and Special Economic Zone Ltd (MPSEZL) today

Tata Power said

(Indonesia), for a sum of US $340 million



dian subsidiary for $136 million, The deal

Floating Solar Plant.

that it will be building the country‘s first low-


quire the remaining stake over the next

bought Henkel AG's majority stake in its In-

the total commitment to $400 million.



India/Germany Acquisition. Ujala fabric Laboratories has

bring in an equal amount in the JV, bringing

Company, through its global companies

cording to the agreement, Wipro will ac-

maker Jyothy

and concessions.Grupo Isolux Corsán will

gy.The pilot plant of Liquid Solar Array (LSA)




technology, but instead of mounting the cells on a frame, it is made to float on water, making it low-cost, cyclone-proof and does not require any land acquisition.

Wipro‘s infrastructure engineering division. India/France Acquisition. The Pawan Kumar Ruia Group said it had acquired a France-based automotive sealing manufacturer, SEALYNX Automotive, having a turnover of $98 million in 2010, for an undisclosed amount.

Renewable Energy. To promote development of renewable energy in India, Germa-


ny‘s Development Bank KfW, acting on be-

announced the $ 2 billion acquisition of Ab-


Enterprises Limited

half of the German Government, signed a

bot Point Port in Queensland, Australia, on

(AEL), flagship of Adani group, will invest

loan agreement worth approximately €190

a 99-year lease, marking the beginning of

about US$10-12 billion over the next four-

million with the Indian Renewable Energy

the company‘s expansion outside India.

five years to expand its domestic as well as

Development Agency (IREDA). The agree-

global footprints. The company has pro-

ment comprises an integrated package of

posed to invest around US$6.9 billion to

concessional loan and technical assis-

develop Galilee Coal Tenement in Queens-


France/India Acquisition. France based ALTEN Group has forayed into India with the acquisition of Chennai & Bangalore based Calsoft Labs. ALTEN Group is a leading European Engineering Consulting Group headquartered in Paris.


land, Australia, which is among the largest ever investment made by an Indian firm there.

Power Plant. Larsen & Toubro (L&T) has received an order valued at over €550 mil-

June 2011 - India-Austria Newsletter | 3

News/Article May 2011 Highlights (cont'd ) lion from PPN Power Generating Company

600 MW rating. The generator shall be sup-

for setting up a 3x360-mw-gas-based pow-

plied and installed at the upcoming North

er plant at Nagapattinam District of Tamil

Chennai Thermal Power Project of Tamil


Nadu Electricity Board (TNEB). With the





throughs and economies of scale will make solar power competitive in six years and help India add 67,000 megawatts of solar

successful testing of the generator, a new benchmark has been set by BHEL with respect to indigenous manufacture of thermal sets with supercritical parameters.

► INTERNATIONAL Colombia. India signed a Double Taxation Avoidance Agreement (DTAA) with Colombia for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income emanating from either country. Australia. India and Australia announced

generation capacity by 2022 - more than

Tablets. Indian Firms rush to make low-

thrice the country's target, according to a

cost tablets. A bevy of Indian companies

report by consultancy firm, KPMG. The re-

are set to launch tablets at price points be-

port says solar energy can contribute 7% of

tween $220 and $440 – half to one-fourth

the total power needs of the country by

of what the Apple product costs. Compa-

2022, helping cut coal imports by 30% or 71

nies such as Spice Telecom, Bharti Tele-

million tonnes a year. This would result in

tech, Karbonn and Lava Mobiles are hoping

saving of $5.5 billion in imports per year

to repeat their success in the mobile phone

from 2022 onwards, it said. Though India

market. Indian companies have wrested

may add up to 17 gigawatts (GW) of solar


power by 2017, the cumulative installation

annum market from big boys like Nokia and

between 2017 and 22 can jump three fold

Sony Ericcson. BK Modi‘s Spice Mobile is

New Zealand. India and New Zealand are

to 50 GW, the consultancy says.

planning to launch a model for $330. New

likely to conclude a free trade agreement

Delhi-based Lava Mobiles is looking to

by the end of the fiscal to enhance ‘below-

launch a seven-inch tablet for $380-400. It

potential‘ bilateral trade and promote in-

has set up a team to develop India-specific

vestments. While last fiscal‘s two-way trade


reached $1 billion, the two sides propose to

Turbo Power Generators. State-run power equipment maker BHEL has announced the successful manufacture and testing of the country‘s first new series turbo generator of




the launch of the formal negotiations of a comprehensive



agreement (CECA) also known as Free Trade Agreement (FTA) aimed at liberalising and broadening the base of merchandise trade, removing non-tariff barriers and encouraging investments between the two nations. They also committed to doubling the value of trade between the two countries within five years to $42 billion dollars.

triple to $3 billion by 2014. ◄


Solar power in India could cost the same as conventional electricity by 2019-20 More aggressive policy could see solar power prices decline at a rate of 5-7 per cent annually over the next decade, ensuring ―grid parity‖, or the point when solar power costs the same as conventional power, as early as 2017-18, the report said. Such targets are well in line with India‘s plans to produce 20 gigawatts (GW) of solar power by 2022, though hurdles such as steep production costs, lack of data and trained manpower remain. ―The pace at which the gap between solar power tariffs and the landed cost of power will be bridged will determine the pace at which solar power will take off,‖ the report said. It continues: ―While we expect grid parity for these consumer categories - domestic and agriculture - in 2019-20, based on state-specific and end-use specific cost economics, the adoption of solar is likely to happen earlier.‖ The report said certain states such as Raja-

sthan and Gujarat in the west and Tamil Nadu in the south could reach grid parity earlier than others because of more favourable policies and sunnier weather, thereby reducing costs. Also, conventional power costs are higher in these states as they are located far away from coal reserves. Coal, available in abundance in India, provides power at about 2 rupees (4 cents) a unit, compared to a kilowatt-hour of solar power at a range of 11 to 12 rupees. According to the Indian Solar Mission, introduced in 2009, solar power output by 2022 would be equivalent to one-eighth of India‘s current installed power base, helping Asia‘s thirdlargest economy limit its reliance on coal to power annual growth of 8-9 percent. The KPMG report said solar energy could contribute to about 7 percent of India‘s total power needs and displace about 16,900 megawatts (MW) of conventional power by 2022, and with additional solar capacity, could cut India‘s total coal imports by 30

4 | India-Austria Newsletter - June 2011

per cent by that year. ―Furthermore, solar power can save 95 million tonnes of CO2 equivalent per annum by 2022,‖ it said, which would mean a cut of about 2.6 percent of the country‘s total emissions in that year. In 2009, India set a goal for slowing the growth of its emissions, saying it will try to rein in its ―carbon intensity‖ - the amount of carbon dioxide emitted per unit of economic output - by between 20 and 25 per cent by 2020, from 2005 levels. India is now the world‘s No. 3 greenhouse gas polluter after the United States and China, and rapid economic growth and consumption are driving up production of planet-warming carbon dioxide from coal-fired power plants, transport and industry. Its current per-capita emissions stand at 1.8 tonnes, about a third of China‘s and less than a tenth of the United States‘.

Business Article Clean technology, a driver for India-Finland economic cooperation Several Finnish companies are keen to form joint ventures with Indian firms to expand their operations in the country and promote the use of clean technology, the Nordic nation‘s Environment Minister Paula Lehtomaki said Thursday. ―Finnish companies are looking for partners in India. Some of them have already started their businesses with local partners. Many more are looking for partners to explore the possibility of further investment,‖ the minister said. ―Finland is a leader in green technologies. We have right technology and know-how and are keen to share it with India,‖ Lehtomaki told IANS during an event organised by Cleantech Finland on the sidelines of the Delhi Sustainable Development Summit. She said Finnish and Indian government had pledged to work together to promote the use of environment friendly technologies and a key focus of such cooperation will be in renewable energy and water management. ―The global challenges we are facing today can be turned into opportunities with the

right technologies and know-how. What is needed is enhanced cooperation and sharing of knowledge,‖ the minister said, adding green economy will be the focus of the future.

projects. The company will soon set up a manufacturing base in India as well, and combine their know-how with $1.5 billion IVRCL‘s expertise in water infrastructure.

―Green economy is essentially about integrating environmental aspects into all sectors of the society — and simultaneously boosting economic growth by creating new green jobs.‖

The Switch: This company, which supplies wind power and new energy applications, started business in India last year. The company plans to invest $50-$100 million in India in a couple of years and is looking at partners for a joint venture.

Leading Finnish companies including The Switch, Kemira, Metso, Picosun and Ruukki — here at the aegis of Cleantech Finland — are keen to expand their operation in India through joint ventures in clean technology: Following are their initiatives:

Metso: This company has entered into a pact with Aditya Birla Group‘s Grasim Industries to supply recovery boilers by 2012. The boilers to replace the two ones at the company‘s rayon grade pulp mill at Kumarapatnam in Karnataka.

Kemira Oyj: This company has a joint venture with Hyderabad-based water infrastructure firm IVRCL for water treatment. It started in India in 2008 and invested nearly $10 million thus far, with plans to scale it up manifold soon.

Picosun Oy: This company is a manufacturer of state-of-the-art atomic layer deposition system, which help in depositing ultra-thin films on surfaces. These are used in solar and atomic energy plants. The company is also looking for Indian partners.

The firm is involved in desalination, potable water and waste water management

Indian Solar Energy Companies seek Foreign Collaboration It is learnt that lack of prior experience and equity in the capital -intensive solar power sector is driving the Indian investors and EPC contractors to join hands with experienced cash rich foreign players. The National Solar Mission envisages installing 20,000 mw of generation capacity at an investment of about 300,000 crore (approx. $66 billion) in next one decade. Industry experts believe that at least a dozen collaborations and joint ventures between Indian and foreign players have taken shape in just 12 months and the trend will continue in the sunrise solar power sector.From zero presence of solar in Indian

energy mix at least 2,000 mw of solar power generation capacity underway in the country. In Gujarat alone, government has entered into power purchase agreements with 83 developers to commission 958 mw of solar power generation capacity. Central government's nodal arm for solar power trade National Vidyut Vyapar Nigam, signed PPAs with developers in January for 620 mw of capacity.

need experienced hands with proven records. Also, there are no precedents for the financial institutions for funding the solar project and hence project developers will need investments from strategic investors.

Commenting on the trend, Solar Energy Association of Gujarat founder chairman Pranav Mehta said solar power sector is in nascent stage in India and there is lot of excitement and the project developers will

Swiss Renewable Energy Companies see $2 billion market in India The Indian market potential for Swiss entities that are into renewable energy and water technology areas could reach up to $ 2 billion, according to a Swiss business group official. Many Swiss entities are into the fast -growing clean energy sector and are looking for business opportunities in India.

related to water technology areas in India, worth about 20 million Swiss francs in the pipeline. Krueger was here as part of the business delegation that accompanied Swiss Head of the Federal Department of Economic Affairs Johann SchneiderAmmann.

A Swiss government-sponsored entity, Cleantech Switzerland provides an export platform for Swiss cleantech players. The market for clean energy in India is growing and such projects are estimated to have attracted private investments of around $ 4 billion last year.

He noted that power generation from "decentralised sources" such as wind power turbines and solar farms would provide huge investment potential in countries, including India, especially, in terms of upgrading the existing electricity grids. Cleantech Switzerland has also entered into an agreement with the Confederation of Indian Industry (CII) to explore business opportunities in the clean energy sector for both

Uwe Krueger, president, Cleantech Switzerland said that now there are projects,

Indian and Swiss entities. The focus would be on renewable energies and efficiency, water and waste water utilisation and environmental technologies.

June 2011 - India-Austria Newsletter | 5

Business Interview

Hollywood meets Bollywood Andrew Cripps, President of Paramount Pictures Looking at increasing its footprint in India, Paramount Pictures announced a strategic alliance with Viacom 18 to distribute and market their releases across the sub-continent. President Andrew Cripps spoke to Varada Bhat on their alliance and plans for the Indian market. Edited excerpts:

will not only recognise, but also embrace the technology. And they are willing to pay a premium for 3D because it is a whole new experience.

Q: You have joined hands with Viacom 18, what is your India strategy?

A: We have joint venture with Universal Studios called United International Pictures (UIP). We are working with our partners Universal to understand their plans for the company. They have to make a decision on what they want to do in the next couple of months.

A: I think for us this association is about growth. Alliance with a strong local partner gives us the scope for national distribution of our films, instead of going for several sub -distributors. We can build our movie marketing strategies and do promotions activities while leveraging media assets of Viacom 18 such as MTV, VH1 and other internet platforms. Q: What's your view about the Indian market in the context of Hollywood movies? A: Personally I feel the market is on the path of growth. One can no longer make money with action and horror movies. Part of this is because the middle class has developed taste for different genres of movies. For instance, our movie No Strings Attached did exceedingly well here a few months back. We compare this market to Russia and Brazil 10 years ago. We have seen those markets expand rapidly in a short span. Now, Russia is the sixth biggest territory we have internationally. I see the same characteristics in the India today. For instance, Transformers is now being released with 550 prints in four languages. In the next four-five years, India should be in the top 10. Q: After Avatar, there has been a 3D rush. What do you think is the future of this technology? A: 3D is here to stay. 2010 was certainly the year when 3D had a major impact on the box office, with eight of the top 15 international titles (presented) in 3D. But, as an industry, we have to be careful what movies we make in 3D. Like Transformers is the perfect example. This way the audiences

Q: So far Paramount Films operated here as Paramount Films India ? What happens to that?

Q: Do you plan to enter into coproduction deals with film production houses such as Sony and Warner ? A: This is something we are definitely going to look at. Our short-term objectives are proper launch for the venture and focus on the marketing of the movies. If there are other opportunities from this alliance, we will look at it. Q: Do you plan to have theme parks here as well? A: You never know. India is a huge country with a lot of consumers Q: From this alliance, would you also be looking at distributing and marketing Viacom 18 motion pictures releases globally? A: Yes, definitely. There is huge audience of Indian films. Wherever we can, we will allow them to use our global distribution infrastructure.

QUOTE OF THE MONTH "India‘s policies of trade and investment liberalisation are reintegrating it into the world economy, allowing it to regain an influence it had three centuries ago"

6 | India-Austria Newsletter - June 2011

by George Osborne UK Chancellor

Industry Sector Close-up Steel Industry Sector Structure/ Market Size

capacity of around 276 MT have been

10, contributed largely by the strong trends

Steel industry has a major role to play in

signed between the investors and various

in growth of the electric route of steel

the economic growth of India. With new

State Governments, mostly in Orissa,

making, particularly the induction furnace

global acquisitions by Indian steel giants,

Jharkhand, Chhattisgarh and West Bengal.

route, which was a key driver in the growth

setting up of new state-of-the-art steel

India has recorded a growth of over 8.6 per

of the segment. In case of total finished

mills, modernisation of existing plants,

cent, producing 6.35 MT of steel in March

steel (alloy + non-alloy), production for sale

improving energy efficiency and backward


was recorded at 47.30 MT, a growth of 7.9


corresponding month in 2010, according to

per cent during Apr-Dec 2010.

sources, India is now on the centre of the

World Steel Association (WSA).

Steel Authority of India (SAIL) Ltd has

global steel map. Consumption of steel in

Steel exports has increased by 17.3 per




















production capacity from the


level of 13.82 million tonnes

transport sector has been on

per annum (MTPA) to 23.46


MTPA under its current phase







usage in engineering industries




as power









expected to be completed by

industry is also growing.

financial year 2012-13. In the

India has retained its position


as the 5th largest producer in

increase its capacity further to

2010 and recorded a growth of


11.3 per cent as compared to

investment for current phase is

2009. India has also emerged


as the largest sponge iron/




US$ 2.21 billion has been

producing country in the world

earmarked for modernisation

in 2010, a rank it has held on

and expansion of SAIL Mines.



NMDC Ltd plans to increase

production grew at a CAGR of

the production of iron ore from














11 per cent to reach a level of 20.74 million

cent as it reached an estimated 2.46 MT,

the present level of about 24 MT to 40 MT

tonne (MT) in 2009-10 as compared to

while steel imports were at an estimated

by 2014-15. Besides, setting up a 3 MTPA

14.83 MT in 2005-06. India is expected to

5.36 MT, a growth of 2.8 per cent in 2010.

Integrated Steel Plant at Nagarnar in

become the second largest producer of


Chhattisgarh. The environmental clearance

steel in the world by 2015-16, on account

Crude steel production was registered at

for the plant has been accorded by Ministry

of growing steel demand, rich resources

51.57 MT during April-Dec 2010 in the

of Environment and Forests (MoEF).

base of iron ore, skilled manpower and

country as per Joint Plant Committee

Major Developments

vast experience of steel making and the

(JPC). The production is expected to be

The Indian steel market has witnessed the

huge capacity expansion planned and

nearly 110 MT by 2012-13.

announcements of mega expansion plans

being executed in the steel sector.


With the expanding consumer market,

compound annual growth rate (CAGR) of


Indian steel industry is likely to receive

8.4 per cent during the five years, 2005-06

projects. Furthermore, with an expanding

huge domestic and foreign investments.

to 2009-10. The crude steel performance

consumer market, the steel industry in



accounted for 31 per cent of the total crude

India is likely to receive huge domestic and


steel production in the country during 2009-

foreign investments.



memorandums (MoUs)







from leading domestic producers in the of




June 2011 - India-Austria Newsletter | 7

Industry Steel Industry (cont‘d) Posco, South Korea, plans to set up a 12

51 per cent and NSC will hold 49 per cent

Government Initiatives

MT integrated steel plant in Orissa.

of equity capital of the JV Company. The

The current policy regime allows 100 per

Mittal Group's announced plans to set up

project will be set up at a capital cost of

cent foreign domestic investment (FDI) in

their 12 MT integrated steel unit in Orissa.

approximately US$ 509.08 million and is

steel sector, as per Mr Beni Prasad Verma,

Tata Steel Ltd (TSL) has taken over US$

expected to come on stream in 2013.

Minister of State for Steel (Independent

12 billion Anglo-Dutch giant Corus Group

NMDC Ltd has signed a pact with Russian




steel and mining major Severstal to set up

companies like POSCO and Arcelor Mittal

significant global steel producer, which

a 5 MTPA steel plant in Karnataka as part

have signed MoU with respective to State

may well be regarded as a benchmark

of a strategy that aims to boost the

Governments to set up steel production

even in the history of the Indian steel

company's revenue by increasing presence

units in the country. The total proposed


in value added product chain. It has also

capacity under FDI is about 45 MT.

Bhilai Steel Plant (BSP), the flagship entity

set up a 3 MTPA integrated steel plant at

Some of the initiatives undertaken by the

of the Steel Authority of India Limited

Nagarnar, Chhattisgarh, which is likely to

Indian Government in the 11th Plan (2007-

(SAIL), has secured a fresh order of

be commissioned in 2014.

12) to promote the steel sector include:

exporting rails to Sri Lanka. The order of

It has also set up a 3 MTPA integrated

The Planning Commission has approved a

about 14,000 tonnes is for the UIC-60

steel plant at Nagarnar, Chhattisgarh,

total outlay of US$ 9.5 billion for the

grade of rails. Earlier, the company had

which is likely to be commissioned in 2014.

development of the iron and steel sector.

received an order to supply 6,500 tonnes of

Essar Steel has commissioned a state-of-

The scheme for the promotion of research

rails to Sri Lanka.

the-art Compact Strip Production (CSP)

and development in the iron and steel

The Essar Group, through Essar Africa

mill with a capacity of 3.5 MTPA. The CSP

sector has been approved with a budgetary

Holdings Ltd (EAHL), has bought 54 per

mill is a part of the company's expansion

provision of US$ 24.6 million to initiate and

cent stake in Zimbabwe‘s state-owned

plans of raising the steel production

implement the provisions of the scheme.

steelmaker, Zisco. The total deal is valued

capacity at Hazira at a cost of US$ 3.03

National Steel Policy 2005 is under review

at US$ 750 million.


and the process for drafting a 'National

The State Level Single Window Clearance

commissioned two iron making units–a

Steel Vision' has since been initiated.

Authority (SLSWCA) in Orissa has cleared

blast furnace with a capacity of 1.73 MTPA

Five year strategy paper was prepared for

four investment proposals in the steel

and a DRI unit of 1.74 MTPA, a conarc

promotion of Steel sector in the country.

sector worth US$ 632.86 million.



Moreover, in the Union Budget 2010-11,

Orissa through its nodal agency for land

commissioning India‘s first 5-metre wide

the Government has allocated US$ 37.4



plate mill with a capacity of 1.5 MTPA and

billion to the infrastructure sector and has

Development Corporation of Orissa Ltd

a pipe mill with an annual capacity of 0.6

increased the allocation for road transport

(Idco), has allotted 20684.06 acres of land


by 13 per cent to US$ 4.3 billion which will

to steel companies that have signed

Sesa Goa, a Vedanta Group company, has

further promote the steel industry.

memorandum of understanding (MoU) with

acquired the assets of Bellary Steel and

Ministry of Steel in association with UNDP

the State. The steel sector in Orissa has

Alloys (BSAL) for US$ 48.94 million in a

is carrying out a project on ‗Removal of

already recorded an investment of US$

competitive bidding process conducted by

Barriers to Energy Efficiency Improvement

11.64 billion till the end of December 2010.

Industrial Financial Corporation of India

in Steel Re-rolling Mill Sector in India‘ at an

Tata Steel Ltd (TSL) and Nippon Steel

(IFCI) Ltd.

estimated cost of US$ 14.03 million. The

Corporation (NSC) have signed a joint

JSW Steel plans to infuse US$ 83.54

project seeks to reduce greenhouse gas

venture (JV) agreement to setup India's

million in Ispat industries in the next 2-3


first continuous annealing and processing

years. JSW Steel plans to invest US$

assistance to small and medium sized steel

line (CAPL) for the production of 600,000

16.86 billion over the next 10 years to ramp

re-rolling mills in the country to enable

tonnes per annum of automotive cold-rolled

up capacity from 7.8 to 32 MTPA through

them to adopt more energy efficient and

steel at Jamshedpur, India. TSL will hold

greenfield and brownfield projects.

environmentally friendly technologies.






8 | India-Austria Newsletter - June 2011














Trade Shows WHAT Exhibition on Technologies for Automotive Manufacturing

WHEN June 10-12, 2011 WHERE Chennai


WHAT International Exhibition on Telecommunication and IT

WHEN July 29-August 1, 2011 WHERE Bangalore

MORE INFO indiaconnect2011

WHAT Expo on cutting edge research and technologies in the field of electric and plug-in hybrid vehicles

WHEN August 10-12, 2011 WHERE New Delhi



Processing Technology


Exhibition on Agriculture, Farm Machinery, Equipment and Agri



September 09-11, 2011


June 2011 - India-Austria Newsletter | 9

Profile Big Players Ispat Industries Ispat Industries Limited (IIL) is one of the leading integrated steel makers and the largest private sector producer of hot rolled coils in India. Set up in May 1984 , IIL has steadily grown into a $2 billion-dollar company, a corporate powerhouse with operations in iron, steel, mining, energy and infrastructure. Headquartered at Mumbai, the company's core competency is the

to have total flexibility in choice of steel making route, be it the

production of high quality steel, for which it employs cutting edge

conventional blast furnace route or the electric arc furnace route.

technologies and stringent quality standards. It produces world-

Its dual technology allows Ispat the freedom to choose its raw

class sponge iron, galvanized sheets and cold rolled coils, in

material feed, be it pig iron, sponge iron, iron ore, scrap or any

addition to hot rolled coils, through its two state-of-the art

combination of various feeds. It also has total flexibility in choosing

integrated steel plants, located at Dolvi and Kalmeshwar in the

its energy source, be it electricity, coal or gas.

state of Maharashtra. The sprawling 1,200 acres Dolvi complex

Technology and innovation have always been the cornerstones of

houses the 3 million tonne per annum hot rolled coils plant, that

IIL's quest for excellence and its state-of-the-art plants facilitate

combines the latest technologies - the Conarc process for steel

the company's mission to attain and sustain market leadership,

making and the compact strip process (CSP) - introduced for the

through technological and product superiority.

first time in Asia. With investments of over US $2 billion, IIL is the seventh largest The complex also has a 1.6 million tonne per annum sponge iron (DRI) plant, which was commissioned in 1994 as the world's

Indian private sector company in terms of fixed assets. It aims to consolidate its market leadership in the national specialty steel

largest and most efficient gas-based single mega module plant.

market by capitalising on the proximity of its manufacturing

Moreover, the Dolvi complex is home to a 2 million tonne blast

facilities to major consumers of flat steel products in Maharashtra,

furnace and also boasts a mechanised multi-functional jetty

while increasing its presence in international markets by using its

situated nearby, that facilitates the automation of raw material

convenient port location. In the short span of time since its

handling. A new 2.24 million tonnes per annum sinter plant, a

inception, Ispat Industries has steadily raised the bar. As it rapidly

1260 tonnes per day oxygen and a new electric arc furnace have

forges ahead on, IIL has successfully reinforced its position as

also been commissioned at IIL Dolvi.


Ispat is the only steel maker in India and among a few in the world

breakthroughs and setting even higher standards for itself.






Ispat Industries Corporate Office Address: 7th Floor, Nirmal, Nariman Point, Mumbai 400 021 Phone: +91 22 66542222 / Fax: +91 22 22855519 / Email: / Web:

Emerging SME Microqual Techno Ltd. Microqual Techno Ltd., for over the last decade, has been a






pioneer in manufacturing and supply of products, services and

accessories, electrical and mechanical site materials and a range

solutions impacting the global communications world. Microqual‘s

of RF antennas. Microqual has been awarded ―The SME of the

state of the art manufacturing facilities in India (3 Plants), backed

Year‖ & ―Best Infrastructure Company‖ by CNBC-TV18 and was

up with global technology, have been set up for manufacturing the

ranked among the top fifty fastest growing technology companies

complete range of products for RF (Radio Frequency) cables,

in India by Deloitte and Touché for the last four years.

Microqual Techno Ltd. Address: 3rd Floor, Techweb Center, Oshiwara Behrambaug, Off New Link Rd., Jogeshwari (W), Mumbai - 400 102 (India) Phone: +91 22 40741515 / Fax: +91 22 40741590 / Web:

10 | India-Austria Newsletter - June 2011


Tourism State Profile Kerala With foreign influences as disparate as Chinese and Portuguese,

has many traditional houses with central courtyards. Kerala‘s mul-

Arab and Dutch, Kerala is the spice coast of India. Edged by a

titude of faiths – Islam, Judaism, and a host of sects of Christianity

thread of unbroken beachline, the state‘s heart is composed of in-

and Hinduism – all coexist harmoniously in a state that is known

tensely green paddy fields and a unique network of rivers and la-

for its Marxist inclinations! Kerala‘s traditions of dance forms,

goons. Upland Kerala, relatively little visited, is composed of hills

which originated from temple worship, can be witnessed at regu-

thickly wooded with teak and rubber. It is here that Kerala‘s most

larly held performances. Lecture-demonstrations of the most spec-

precious spices are grown in carefully nurtured plantations: carda-

tacular of these – Kathakali – are held daily at many centres in Co-

mom, pepper and nutmeg.

chin. Teyyam, at once an act of worship and visual feast; temple

Thiruvananthapuram (Trivandrum), the state capital, an interna-

festivals complete with caparisoned elephants; Kalaripayata, the

tional airport, has an exceptionally fine museum set in an amuse-

indigenous art of self defence; all are a part of Kerala‘s remarkable

ment park. 16 km away is Kovalam, one of the most popular

heritage of performing arts, and can be witnessed at various cen-

beaches in the country. Many visitors stay at Kovalam, driving into

tres in Cochin and Thiruvananthapuram. A five hour drive from Co-

Thiruvananthapuram for sightseeing trips, rather than the other

chin leads into thickly forested hills, past rubber and spice planta-

way round. Sri Padmanabhaswamy temple in Thiruvananthapu-

tions, and into southern India‘s tea growing district headquartered

ram, and Padmanabhapuram Palace, a short drive away, are im-

at the charmingly old world Munnar. From Kottayam toAlleppey is

portant monuments.

a world of palm fringed waterways, a route which is covered by

Cochin, with a fine natural harbour, has been Kerala‘s center of maritime trade for innumerable centuries. Along the harbour, rows of antediluvian Chinese fishing nets indicate Kerala‘s trade with

motor launch. Elderly sailboats, long barges transporting tons of coconuts and tiny skiffs used to transport children to school are common sights on these backwaters.

China, just as buildings along the water‘s edge testify to the erstwhile presence of Dutch and Portuguese colonisers. Jewtown, complete with an immaculately preserved synagogue, has a fla-


vour all its own, while Tripunathura, at the other end of the city,

Alumkadavu, Kollam - Kerala

IndiaTourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt Tel: +49 (69) 242949-0 / Fax: +49 (69) 242949-77 /

June 2011 - India-Austria Newsletter | 11

India in Austria Agenda June 2011

Overseas Indians OIFC: India and its diaspora

Talk-Series "Zu Gast bei Elisabeth Al-Himrani" No. 78 Mag. Ilja Steffelbauer, University Lecturer June 9, 2011, 19.00 Hochhaus Herrengasse 6-8, Stiege I, 10. Stock, Tür 57 Free Admission.

"4 Welten in einer Nacht" Palace Schallaburg Performance by Radha Anjali , June 12, 2011, 19.00 Schloss Schallaburg More Info and Tickets at

Seminar by Prof. Dr. Saskia Kersenboom in Zusammenarbeit mit dem Institut für Südasien-, Tibet- und Buddhismuskunde der Universität Wien June 17, 2011, 19.00 More info at

Dance Workshop with Prof. Dr. Saskia Kersenboom June 17-19, 2011 Natya Mandir Studio, Börseplatz 3, 1010 Wien More Info and Tickets at

Classic Indian Concert with the group "Sangeeta" Jun 14, 2011, 19.30 - Natya Mandir Studio Börseplatz 3, 1010 Wien More Info and Tickets at or 0676 312 57 36

All Kinds of Indian Food Intervention am Jausenexpress in Payerbach June 4 and 18, 2011 July 2, 16 and 23, 2011 Hauptstraße 1, 2650 Payerbach More Info and Tickets at

The Ministry of Overseas Indian Affairs‗ (MOIA) constant endeavour is to further strengthen the strong bong between India and its diaspora, address concerns and create an enabling environment, whereby Overseas Indians engage with, and benefit from, the opportunities in a rapidly growing economy. The Overseas Indian Facilitation Center (OIFC) set up by the MOIA, currently runs activities such as: query addressal on various issues faced by the NRI‗s & PIO‗s, an online business networking portal, projection of member States‗ projects, road shows through investors interactive meets & market place forums in India and overseas. The MOIA can be reached online at the address

BOLLYWOOD@MQ- ImPulsTanz Festival Opening . Overseas Indians can take Jul 15, 2011, 21:15 enjoy the services provided, get updates on the MuseumsQuartier Main Yard - Bollywood star-Choreographer Terence Lewis latest news by subscribing to their e-newsletter and his company open this years’ ImPulsTanz festival with “Jhoom“. The show "India Connect", access publications of special combines typical Indian Bollywood pop-choreography with Indian contemporary dance, and deals with extremities within Lewis home country and the culture interest to NRI‗s and PIO‗s, take advantage of online business networking, and more. industry, in which he is a star himself.Free Entrance!

Did you know? On the celebration of Rabindranath Tagore‗s 150th birth anniversary, the Reserve Bank of India launched the 150 Rupee coin.

India's longest tunnel will be ready by 2012. The rail link between Kashmir valley and the rest of the country will be completed by December 2012 once India's longest tunnel at 11 km — connecting Qazigund with Banihal — is constructed within a year. The tunnel, one of the world's largest and deepest, will pierce through the Pir Panjal range below snowline, which stands like a wall between the Valley and Jammu. Railways is using state-of-the-art Austrian tunnelling method to construct T80 that involves integration of surrounding soil formations into a ring-like support structure.

Published by the commercial section at the Embassy of India, Vienna. Contact:

June 2011 - India-Austria Newsletter | 12

India Newsletter 06.2011  

India Newsletter published by the commercial section at the Indian Embassy in Vienna

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