Binani Cement signs MoU with Gujarat government to invest Rs4,200 crore

Binani Cement Ltd has signed a memorandum of understanding (MoU) with the Gujarat government to set up a greenfield cement plant, a 610 MW thermal power plant and a jetty to handle cargos. The MoU was recently signed between the Gujarat government and Binani Cement officials during the Vibrant Gujarat Summit. The company is investing Rs4,200 crore for these projects.

The MoU was signed with the Department of Mines and Geology to set up an additional greenfield cement plant with a capacity of 2.5MTPA in Phase II.  The MoU for Phase I capacity of 2.5MTPA was signed in Vibrant Gujarat 2009. Further, the company has signed an MoU with the Department of Energy and Petrochemicals, Gujarat state to set up a thermal power plant of 610MW of power generation to be completed in three phases; viz. Phase I of 110MW, Phase II of 210MW and Phase III of 210MW.

Another MoU was signed with the Gujarat Maritime Board for setting up a captive jetty capable of handling cargos of 10 million TPA. The jetty will be set up in three phases; viz. Phase I of 1MTPA, Phase II of 2.5MTPA and Phase III of 6.5MTPA.

The greenfield cement plant is proposed to be located at Lodhva village in Sutrapada district of Junagadh spread across 188 hectares. The plant will manufacture ordinary Portland cement (OPC) and Pozzolona Portland cement (PPC) in various grades and the production of OPC to PPC will be ordinarily 50:50. The plant will be further setting up additional grinding facilities in Gujarat and export to UAE and forthcoming grinding unit in Mauritius for East African Markets.

On Thursday, Binani Cement ended 0.11% up at Rs87.40 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.80% down at 19,182.82 points.


L&T exports first nuclear equipment to US

Engineering major Larsen & Toubro (L&T) Ltd delivered the first four dry shielded canisters for Transnuclear, Inc, US, an Areva company. These canisters form a part of orders of 50 such units for three leading American nuclear power plant operators to be manufactured in accordance with the US Code of Federal Regulations and Nuclear Safety Class 1 standards.

L&T is currently the only Indian manufacturer authorised by American Society of Mechanical Engineer (ASME) to use 'N', 'NPT', 'NA' stamps and 'NS' Certification for enabling design and manufacture and construction of nuclear island equipment as per American standards.

L&T serves the power sector across the entire spectrum-from design services to equipment manufacture, erection, construction and commissioning of complete projects on a turnkey basis.

On Thursday, L&T declined 0.64% at Rs1,748.70 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.80% down at 19,182.82 points.


Indraprastha Gas likely to hike CNG prices by Rs8/kg this year

Close on the heels of 4.5% hike in CNG prices, Indraprastha Gas Ltd may raise the rates by another Rs8 per kg this year, as the company is forced to buy expensive imported liquefied natural gas (LNG) in the absence of allocation from domestic fields.

IGL had this month raised compressed natural gas (CNG) prices in the national capital by Rs1.25 per kilogram to Rs29 per kg and piped cooking gas to Rs26 per cubic meter, as it bought more of imported LNG to meet the rising demand.

The CNG demand in Delhi is growing in double-digits and IGL is expanding in adjoining cities like Ghaziabad for which the government has not allocated any gas source, sources privy to the development said.

IGL has exhausted all of the 2 million cubic meters per day (mmscmd) of natural gas allocated for Delhi from state-run domestic fields while Reliance Industries' has curtailed supplies to 0.15 mmscmd against an allocation of 0.308 mmscmd.

Sources said the twin factors have forced IGL to buy imported liquefied natural gas (LNG) which costs $8-10 per million British thermal unit as against $4.2 per mmBtu price, at which gas from state-run fields and that from Reliance is available.

In case there is no additional allocation of gas from domestic fields and Reliance does not restore supplies to the original contracted volumes, IGL may be forced to raise CNG prices.

The hike could be by Rs1 per kg in the second quarter of 2011 calendar year, by another Rs2.75 per kg in July- September period and by a further Rs4 per kg in three months ending 31 December.

In the national capital region, IGL has an allocation of 2 mmscmd from state fields for Delhi, 0.2 mmscmd for Greater Noida and 0.5 mmscmd for Faridabad and Gurgaon.

There is no such allocation for Ghaziabad, where IGL is rapidly setting up CNG dispensing stations and piped gas network.

Sources said IGL has asked the government to merge together its state gas allocation of 2 mmscmd for Delhi, 0.2 mmscmd for Gautam Budh Nagar and 0.5 mmscmd for Faridabad and Gurgaon as an overall allocation of 2.7 mmscmd for Delhi, Noida, Greater Noida, Ghaziabad, Faridabad and Gurgaon.

The merging of allocation is important because IGL is developing city gas in the national capital region as one uniform entity.

IGL, sources said, has also sought an allocation of state gas for distribution in Ghaziabad.

On Thursday, IGL gained 0.63% at Rs329.70 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.80% down at 19,182.82 points.


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