Larsen & Toubro (L&T) said its railway business unit has won orders worth Rs1,103 crore from various power plant developers for the construction of 'Merry-Go-Round' Systems and construction of railway lines to link power plant sites to the main line rail network.
The division has received an order worth Rs365 crore from Maithon Power Ltd for construction of a 21 km rail link to its power plant at Maithon in Jharkhand.
Nabha Power Ltd, a wholly owned subsidiary of L&T Power Development Ltd, has placed an order valued at Rs270 crore for construction of a 13 km double-track electrified rail link to its power plant at Rajpura in Punjab. Balco has awarded L&T a Rs151 crore order for strengthening its existing railway facilities at Korba in Chhattisgarh.
L&T's railway business unit has also secured orders worth Rs317 crore from Sterlite Energy Ltd for further enhancement of its railway facilities that are already under implementation at Jharsuguda in Orissa.
The orders will be executed by the rail infra division, a part of L&T's railway business unit, Faridabad on a design, build and lump sum turnkey basis. The scope of the projects encompasses carrying out detailed layout and structural designs, obtaining statutory approvals from Indian Railways, construction and commissioning of integrated railway facilities, execution of activities like earth work in embankment, construction of various types of bridges including rail and road flyovers, track laying, railway signaling and overhead electrification.
On Monday, L&T ended 0.03% up at Rs1,979.65 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.25% to 20,561 points.
New Delhi: The prime minister's economic advisory panel (PMEAC) has said a hike in diesel prices may be deferred to next fiscal due to high inflation rate, reports PTI.
"Perhaps, if by March 2011, the inflation rate comes to about 6%, perhaps that may be the time at which they may revise the diesel prices," PMEAC chairman C Rangarajan told PTI.
A meeting of a ministerial panel headed by finance minister Pranab Mukherjee, to consider raising diesel price by at least Rs2 a litre, was deferred twice last month and no new date has been notified yet.
State oil firms currently sell diesel, the most consumed fuel in the country, at a loss of Rs6.99 a litre and have been pressing for an increase in retail prices to narrow the losses.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together lose about Rs128 crore per day on sale of diesel below the imported cost.
The losses have widened after global crude oil prices touched a two-year high of $92 per barrel.
Crude was ruling around $74 per barrel in June, when diesel prices were last revised.
The government had in June freed petrol prices from its control and stated that diesel price will be made market determined in due course. However, rising crude oil prices has derailed those plans with state oil companies even selling petrol at a loss of Rs1.25-Rs1.50 a litre.
Mr Rangarajan has always been in favour of freeing diesel prices from government control and linking it to global prices.
"Possibly, petroleum prices will be adjusted to the international crude price," he added.
However, inflation rate, particularly the food inflation is very high and if prices are raised now, it could add to inflationary pressure.
Food inflation surged to a ten-week high of 14.44% for the week ended 18th December as prices of vegetables-onions, in particular-besides fruits, cereals and protein based products continued to escalate.
Overall inflation in November stood at 7.48%, down from 8.58% in the previous month.
Following the spike in food prices, PMEAC has revised upwards its projections for overall inflation at the end of the 2010-11 financial year to 6%, as against the earlier estimate of 5.5%.
Finance minister Pranab Mukherjee has said that overall inflation could moderate to around 6.5% by March-end, as against the 6% projection in the finance ministry's Mid-Year Review.
Major steel makers say they will announce hike today. SAIL announced hike this morning
Indian steel producers JSW Steel Limited and Essar Steel will increase prices of flat products by 4%-5% today, due to surging raw material costs. This morning, the Steel Authority of India announced a 3% rise in the price of its products.
"We will increase prices of flat products in the range of 4%-5% depending on grades and products, as coking coal price for January-March contract has been increased by 4%-5% compared to the previous quarter, while iron ore (price) has gone by up by 8%-10%," Sharad Mahendra, senior vice-president, marketing and sales, JSW Steel, told Moneylife today. Last month, JSW Steel increased product prices by an average of Rs500 per tonne.
Essar Steel also confirmed that it will increase prices of flat products by around 5% on account of higher raw material prices. "We will increase product prices by about 5%," said B Ganesh Pai, vice-president, corporate communications, Essar Group. Essar Steel makes flat products.
Moneylife had reported on 9 December 2010 that steel makers were likely to increase prices by between 3% and 6% due to higher raw material prices in early January 2011. (http://www.moneylife.in/article/4/12082.html)
Today, JSW said it will increase the prices of its long products also, but it could not give the range of the price hike.
Flat products are used mainly by the automobiles and consumer durable goods sectors, while long products are used for construction and infrastructure projects.
"Prices on long and flat products in the international market have gone up, but primarily higher input costs have fuelled prices of steel products," Mr Mahendra said. Flat products account for around 70% of JSW's production.
Meanwhile, Tata Steel is also expected to announce a price hike on its products some time today. However, company sources were not available for comment.