The Mining Boom

India's increasing coal projects drive a surge in mining equipment demand!

Numaligarh Refinery implements Hexagon’s operations management solution

Hexagon’s PPM division announced that Numaligarh Refinery Limited (NRL) has implemented j5 Operations Management Solution (j5 OMS) to ensure safe, efficient and compliant operations of its industrial sites.

Union Cabinet clears new divestment policy

The Union Cabinet cleared the new policy for Public Sector Enterprises (PSEs). A broadsheet for disinvestment is expected to be announced by Finance Minister Nirmala Sitharaman in the Union Budget.

Commercial coal mining to improve efficiency

The Union Government?s recent move to allow the private sector to commercially mine coal will boost both production and mining efficiency, according to CRISIL. Substitution of imported non-coking coal with domestic production could save roughly Rs 30,000 crore of coal imports, CRISIL estimates.

Container Handling: Future?s Bright

Hybrid Annuity Model for highway projects

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given its approval for the Hybrid Annuity Model as one of the modes of delivery for implementing the highway projects.

One-time fund to revivelanguishing highway projects

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi approved a one time fund infusion to revive and physically complete languishing national highway projects under the extension of provision available for BOT (Toll) projects to BOT (annuity) projects.

Thrust on implementation

The Central Government has empowered its Ministries and Departments to clear projects up to Rs 1,000 crore by themselves.

2013 was a tough year but it is behind us. We must now look to the future

The year 2013 was a forgettable one for the construction equipment as well as the concrete equipment sector. With construction at a virtual standstill, the demand for concreting machinery fell by 15-20 per cent year-on-year

Government should set up an independent commission for PPP regulations

It is a clich? now that the infrastructure sector is a critical enabler for sustaining economic growth as well as for ensuring its inclusiveness. This alone could enable a two per cent growth in GDP.

Mandate for action

The CE sector, for its part, needs to look ahead. Looking back, it would seem, everything possible for a new growth story has been done, put in place. Looking forward is the only way; the pace may be painfully slow but is expected to be steady.

Road 2 recovery

Despite the present day gloom in the market, the future for the construction equipment sector, especially for the road equipment segment in India, still holds much potential as this sector has a profound and immediate impact on the country?s economic growth. Off-Highway Research is optimistic about the growth in demand for road equipment and forecasts growth at a CAGR of 12.67 per cent over the next five years. Agith G Antony finds out more about the positive vibes in the industry.

Growth will pick up only if the government ensures a good mix of BOT and EPC projects

The government has to address issues like long-term funding for road projects, faster land clearances and introducing more stringent prequalification criteria for contractors who are bidding for road projects. The blocks have to be cleared to expedite a healthy growth in this sector and to attract the private sector for BOT projects, says Rohit Punjabi, Assistant Director (Strategy and Marketing), Liugong India. Excerpts of the interview.

The government should award projects only after securing key sovereign clearances.

With the government planning for a major infrastructure boom in the North-Eastern states, we foresee a lot of potential for businesses to grow and flourish. The government plans to make investments in roads, railways, air connectivity, cyber and telecom connectivity and power in this region, says Amit Gossain, Vice President - Marketing and Business Development, JCB India. Excerpts of the interview.

Our marketshare has improved substantially in the last six months

When it comes to capacity, product range, manpower and servicing, we are quite comfortable and all geared for the upturn. For the past two years, the situation was really bad but we suddenly witnessed a spurt in demand; orders which used to take months and months for closure were getting finalised faster.

We work very closely with manufacturers.

We have tied up with manufacturers to come up with innovative schemes whereby maximum benefits can be passed on to the customer and we can bring the momentum back into the industry, says GC Rangan, Chief Operating Officer, L&T Finance. Excerpts from the interview.

CCI nod sought for expediting mine development

Approval of Cabinet Committee on Investment (CCI)is being sought by the Ministry of Coal to expedite development of allocated mining blocks where no cases or FIRs have been filed by the CBI.

Govt says coal demand may not exceed 60,000 mw capacity

The Union Coal Ministry has told the Coal India (CIL) that the requirement of coal under the fuel supply agreements would not be for more than 60,000 mw by 2015 due to various reasons, including slippages in the schedule for commissioning of projects.

Looking Ahead with Optimism

Despite the economic slowdown and contrary to initial apprehensions from the major stakeholders, Excon 2013 turned out to be a success, with OEMs and aggregate and components manufacturers launching a new range of machines and components, and some of them even announcing further investment to augment capacity, in order to meet the expected demand spurt in the coming years.

Coal block auction policy cleared

The Union Coal Minister Sriprakash Jaiswal has said on September 24 that the government has approved auctioning coal blocks for private steel, cement and power firms. For the first time, the policy will pave way for allotment of coal mines through competitive bidding. The Cabinet Committee on Economic Affairs has approved the policy, he added.

Getting back on track

Growth prospects in the current fiscal, 2013-1314, were expected to be sluggish, with no clear indicators towards a surge in demand for construction equipment. However, the recent developments in otherwise depressed business sentiments are something to cheer about.

CCEA to take final call on price pooling

Coal Minister Sriprakash Jaiswal informed reporters that his ministry submitted a note on the mechanism for coal price pooling to the Cabinet Committee on Economic Affairs (CCEA), which would take a final call in its next meeting. Under the proposed new pass-through mechanism, entire additional cost of imports would be passed on to the consumers against averaging of prices of imported and domestic coal under the earlier price-pooling mech

CCEA may clear fuel pass through mechanism

In order to enable power plants to pass on the rise in the cost of imported fuel to end consumers, the Cabinet Committee on Economic Affairs (CCEA) may clear the fuel pass through mechanism. Such a move may encourage power producers to use the full capacity of their power plants by importing fuel instead of running the plant at suboptimal capacity beca

CCEA to decide on Coal Regulatory Authority Bill

The Cabinet Committee on Economic Affairs would decide on clearing the draft coal regulatory authority bill in a month as the bill received the approval of the Group of Ministers (GoM). The GoM, in its latest meeting, cleared the formation of an independent coal regulatory authority to monitor the sector. The draft bill will bring state-owned monopoly miner Coal India, which accounts for 81 percent of Indian coal production, in the

Govt okays 4-laning of Dimapur-Kohima h'way in Nagaland

The Union government on May 23 approved the 4-laning of Dimapur-Kohima National Highway in Nagaland at a total cost of Rs 1,089.87 crore. The Cabinet Committee on Economic Affairs approved the implementation of the project of 4-laning of the Dimapur-Kohima section from 124.1 km to 172.9 km of NH-39, Finance Minister P Chidambaram said in Delhi. This project is under the special Accelerated Road Development Programme (SARDP-NE) in North Eastern Region, he said.

CCI, state govt to promote mining in Saranda forest

Cabinet Committee on Infrastructure (CCI), which is headed by Prime Minister Manmohan Singh and Jharkhand government are said to be taking efforts to develop iron ore mines in the 800 sq km Saranda forest division of Jharkhand. While the state government has reportedly prepared a list of 155 mines in the area, the CCI has already approved iron ore mining projects of two firms in the area.

Coal ministry counters charges of NTPC

Union coal ministry refuted the charges levelled by union power ministry and NTPC that Coal India (CIL) was supplying inferior quality coal to the power producer. The power ministry took its grievances against CIL to the Cabinet Committee on Investments (CCI) and this move irked the union coal ministry

Environment ministry clears 18 coal projects

The union environment ministry cleared 18 coal mining projects of the monopoly coal miner Coal India (CIL), Minister of State for Coal Pratik Prakashbapu Patil informed the Rajya Sabha. The Ministry of Environment and Forests gave environmental clearances (EC) for 14 projects and stage-I forestry clearances (FC) for four projects of CIL soon after the meeting of Cabinet Committee on Inve

SAIL may produce more ore due to Gua mine clearance

The government's move to give forest clearance for mining by Steel Authority of India (SAIL) in the Gua iron ore mines in Jharkhand may boost raw material supply for its steel plant. The company plans to increase the production of iron ore, which is a key raw material for steel making, as part of its steel capacity expansion projects

Environment ministry clears 18 coal projects

The union environment ministry cleared 18 coal mining projects of the monopoly coal miner Coal India (CIL), Minister of State for Coal Pratik Prakashbapu Patil informed the Rajya Sabha. The Ministry of Environment and Forests gave environmental clearances (EC) for 14 projects and stage-I forestry clearances (FC) for four projects of CIL soon after the meeting of Cabinet Committee on Inve

NHAI loses Rs 874 cr on project delays: CAG

The National Highways Authority of India (NHAI) has incurred a loss of around Rs 873.85 crore due to delay in completion of port road connectivity (PRC) projects. This was stated by the Comptroller and Auditor General of India (CAG) and it observed this while reviewing the operations of special purpose vehicles (SPVs) formed for implementation of PRC projects that connect major ports.

China's incursion: India may lose access to 750 km

India has described the China's incursion into its land as a 'deep scar.' It is reported that China has reinforced its position across the Line of Actual Control and raised the real prospect of India losing access to 750 sq km in strategically crucial northern Ladakh.

CCEA explores various options on coal issue

In order to help power producers suffering high cost of imported coal, the Cabinet Committee on Economic Affairs (CCEA) is said to be exploring several options including price pooling. The panel is expected to meet in the few two weeks to discuss the matter, reports suggest. Amidst shortage of coal

The Budget's impact

Industry captains analyse the Budget's implications on the CE sector. According to Vipin Sondhi, Managing Director & CEO, JCB India, the Finance Minister has rolled out a well-balanced and realistic Budget.

CE Industry to benefit from Budget's focus on infrastructure

The initiatives announced in the Budget and the measures taken outside it together will impact the demand for construction equipment. DK Vyas trains his thoughts on the likely impact of the recent Budget on the CE sector.

CCI gets request to streamline approval process

The Cabinet Committee on Investments (CCI) received a request from the union coal ministry for streamlining approval process for mining projects. In a letter written by the union coal ministry to CCI, it suggested parallel processing of environmental clearance (EC) and forest clearance (FC) for coal proj

Hits & misses

Even though the recent Budget left much to be desired, the initiatives announced in it and the measures taken outside it, together are expected to boost the demand for construction equipment (CE). To our surprise, the Budget was non-committal on the reduction of import duty for critical equipment and machinery.

CoalMin disapproves dual pricing for coal

The proposal of the Planning Commission to introduce dual pricing for coal was opposed by the union coal ministry, which argues that it is not a feasible plan. Under dual pricing, coal would be sold at different prices in different markets. Union coal ministry expressed its disapproval for the proposal at a meeting under the Chairmanship of Planning Commission Deputy Chair

Govt to ease norms for road builders

Seeking to attract developers to new construction projects the Union Roads Ministry has proposed easing norms for road builders. The Ministry has sent a note to the Cabinet Committee on Investment suggesting an early exit for road developers.

Reform in approval process

Some industry observers are not satisfied with the setting up of the Cabinet Committee on Investments (CCI) by the Central Government as they find it to be a watered-down and relatively toothless body.

Driving innovation

The Fifth Annual Equipment India Conference 2013 focussed on innovative equipment and solutions and how OEMs are becoming more innovative due to changing user pattern of machines.

Nod to Rs 7,915 cr road projects in UP, Maha, Gujarat, Haryana

The Union government on March 18 approved Rs 7,915 crore road projects in Uttar Pradesh, Gujarat, Maharashtra and Haryana under its flagship road building programme National Highways Development Project (NHDP). The Cabinet Committee on Economic Affairs (CCEA), in its meeting accorded approval to the four projects to be built under phases III, IV and V on Build, Finance, Operate and Transfer (DBFOT) basis.

We are virtually the best in fuel average and productivity in the 20T excavator segment.”

We are looking forward to a lot of regulatory reforms. For new projects, the approach towards environment clearances needs to be more pragmatic, GOI has to ensure that no retrospective taxation happens, GST needs to be introduced even if some states do not play ball initially. Such actions will get the CE industry going, says Vikram Sharma, Chief Executive Officer, Kobelco India. Excerpts from the interview.

We keep our customers at the heart of all our initiatives and endeavour.

JCB has recently announced its plan to set up its fourth world class manufacturing facility on a 70- acre site in Jaipur. The approximate investment of Rs 500 crore has been planned to set up this facility in phases. Our idea is to keep pace with future economic growth and strengthen our position as market leader in the construction equipment industry both in India as well as APAC & MEA, says Vipin Sondhi, Chief Executive Officer & Managing Director, JCB India. Excerpts from the interview.

India showcase

Look at the slew of dismal facts. There has been an overall slowdown in Indian infrastructure activity due to lack of clearances of new as well as ongoing infrastructure projects. Even L&T chief AM Naik has indicated that the project pipeline is drying up. Many projects have not progressed even after being approved of by the central government and after achieving financial deal closure, too.