INDIA NEWSLETTER PUBLISHED BY THE EMBASSY OF INDIA VIENNA YEAR 1 | ISSUE 6 | JUNE 2011
TWO-PAGE SPECIAL REPORT
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
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-
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-
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
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 "Indiaâ€˜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
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
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-
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
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
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
MORE INFO www.autoengineeringshow.com
WHAT International Exhibition on Telecommunication and IT
WHEN July 29-August 1, 2011 WHERE Bangalore
MORE INFO www.tradeshows.tradeindia.com/ 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
MORE INFO www.greenautomobil.com
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: Corporate_Communications@ispatind.com / Web: www.ispatind.com
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: www.microqual.com
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
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-
MORE INFO AT KERALATOURISM.ORG
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 www.india-tourism.com / email@example.com
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 www.fabelhaft.at/p_4welten.htm
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 www.istb.univie.ac.at
Dance Workshop with Prof. Dr. Saskia Kersenboom June 17-19, 2011 Natya Mandir Studio, Börseplatz 3, 1010 Wien More Info and Tickets at http://www.natyamandir.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 firstname.lastname@example.org 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 http://www.viertelfestival-noe.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 www.moia.gov.in . 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. www.indianembassy.at Contact: email@example.com
June 2011 - India-Austria Newsletter | 12