PI 19 - 25 November 2012


I nteraction


We have plans to diversify into the wire and network strengthening business

25 November | 2012 | Vol. 7 | No. 16

` 60

India’s First & Only Infrastructure Weekly

R N Nayak, Chairman and MD, PGCIL

I nside

India leveraging on capacity expansion

I nteraction


CE industry leaning towards ready-made platforms with technology updates

from 6 mtpa to 11 mtpa at an estimated cost of Rs 8,000 crore . However development clearance is yet to be granted. For expansion of the Gujarat refinery, IOC has received the first stage approval from the board. The refinery will go up from the present 13.7 mtpa to 18 mtpa at a cost of Rs 5,000 crore . The company is also setting up a 15 mtpa refinery at Paradip, Orissa, at an investment of Rs 30,000 crore , which will be commissioned later next year. The company also plans to expand the Panipat refinery

and distribution network, it is expected that a pipeline network of around 3,000 km will be added in the second half. Cairn India has already started working towards increasing the capacity of its 670 km pipeline in the Barmer region in Rajasthan. Besides, Gas Authority of India is expected to add 2,087 km of pipeline in an intermittent fashion during the year. This, coupled with the 1,750 km pipeline addition by Gujarat State Petronet will take the total capacity addition up to 4,050 km for the year 2012- 13. Meanwhile, IOC’s 1,100 km Paradip-Ranchi-Raipur pipeline has already missed the September 2012 deadline and is awaiting stage-I clearance from the Odisha government. With all approvals in place, IOC would require approximately 18 months to lay the Rs 1,800 crore pipeline that shall pass through a number of rivers and estuaries. Next up is the steel sector, which will witness tremendous capacity addition during the second half of FY2012-13 and during the first half of 2013- 14. The industry is expected to add around 12.8 million tonne capacity with major contributions from the Steel Authority of India (SAIL) , Rashtriya Ispat Nigam (RINL), Bhushan Steel and JSW Steel . These four players alone will add around 9.8 million tonnes out of the overall 12.8 million tones industry wide capacity addition . SAIL in its annual

from the present 12 mtpa to 18-21 mtpa by investing around Rs 8,000 crore . Meanwhile, Bharat Petroleum Corporation has signed a memorandumof understanding for the execution of Rs 20,000 crore expansion plan of the BPCL Kochi Refinery. It will jack-up the refinery capacity by 6 mmtpa from the present 9.5 mmtpa to 15.5 mmtpa. “ However, the expansion plans will go on stream by 2015,” the company said in a statement, recently. In terms of the LNG storage

Rahul Kamat T he deteriorating condition of the industrial and infra- structure sectors in India has been cause of concern. The country has also been exercising caution with regard to expecta- tions from the second consecu- tive quarter. Understanding, that there is a pertinent need to provide a push to the economy, India Inc has chalked out several capacity expansion plans worth Rs 3.7 trillion that shall be com- missioned by the second half of 2012-13 . The capacity addition plans by both public sector units and private players include an expansion into power plants, steel units, refineries and cement plants. However, analysts feel that the project commissioning and expansion phasecouldhappenonlyduring the next financial year i.e. 2013- 14 taking in to account the long gestation period and financial implications. Meanwhile, a large chunk of the expansion plans in the second half will see a cumulative investment ( FY2012-13) up to Rs 5 trillion , a leap over the Rs 4.3 trillion during 2011-12. Petroleum and LNG distribution systems are expected to lead the way followed by steel and cement. Thepetroleumproductindustry is expected to addmore than 10 million tonnes in the current financial year. As per reports, Indian Oil Corporation’s ( IOC) Mathura refinery will go up

( R-L)Thomas Löffler, CEO, bC Expo India andAnindya Ganguly, GM ( Operations),Voltas

PE fund may invest ` 400 crore in cement firm


HUDA awards ` 21 crore road repair projects


Nalco pushes for renewal of mine lease Railways to develop two rail corridors at ` 4 k crore




Water project awaits nod from forest department


Company Name

Project and size

Cost ( In ` Cr)


Mathura refinery (4 mtpa) Gujarat refinery (5 mtpa) Paradip refinery (15 mtpa) Panipat refinery (6 mtpa) BPCL Kochi Refinery (6 mtpa)

Rs 8,000 crore Rs 5,000 crore Rs 30,000 crore Rs 8,000 crore Rs 20,000 crore

Construction Chemicals 15-20

Indian Oil Corporation


Cairn India

670 km Pipeline, Barmer


Gujarat State Petronet Indian Oil Corporation Steel Authority of India

1,750 km pipeline

1,100 km Paradip-Ranchi-Raipur

Rs 1,800 crore

Construction chemicals industry to undergo paradigm shift

Blast furnaces (3.4 mtpa)


statement said that it plans to expand its production capacity from 14 million tonnes to 18 million tonnes towards the end of the current financial year. The phase-I capacity expansion target is around 24 million tonnes, out of which the company will undertake two new blast furnaces located at Rourkela (Odisha) and Burnpur CONTINUED ON PAGE 2


Blast furnaces (5 mtpa) Steel plant (2.7 mtpa)

Rs 1,000 crore

Bhushan Steel


Tata Steel JSW Steel Sagar-Vicat Venture Heidelberg Cement

Jamshedpur steel plant (3 mtpa) Vijayanagar works (2 mtpa)

Rs 2,695 crore

Cement plant (2.5 mtpa)


Cement plant (2.9 mtpa)

Rs 1250 crore

UltraTech Cement

Cement plant (52 mtpa)

Rs 12,000 crore

Jharkhand Government approves ` 34 crore worth road repairs project of NH23 & NH31 Our Mumbai Bureau

Chief Minister approved the road repair project, stated the source. Munda stated further that the two roads were the prop- erty of the Centre and to be maintained by the National Highways Authority of India ( NHAI). He also indicated that he has asked the road construction department of the state to make provision for repair of the two highways at the ear- liest. Officials in the road construction department said three stretches of NH23 and two stretches of NH31 would be repaired with the funds provided by the Jharkhand state government.

J harkhand Chief Minister, Arjun Munda has approved Rs 34.70 crore for the repair of NH23 and NH31, which con- nects the states of Chhattisgarh and Madhya Pradesh. Munda has approved the fund on the second day of his Johar Yatra. Around Rs 24.40 crore has been approved for the repair of national highway (NH23),while around Rs 10.34 crore has been sanctioned for NH31, a source in the Chief Minister’s Secretariat said. Keeping in mind the importance of the two roads which connect Chhattisgarh and Madhya Pradesh, the

Made with