Operations at the Mangalore refinery would be impacted till arrival of monsoon rains
New Delhi: Mangalore Refinery and Petrochemicals Ltd (MRPL) said it has shut down two-third of its 15 million tonne refinery in Karnataka due to shortage of water, reports PTI.
MRPL, a subsidiary of state-owned Oil and Natural Gas Corp (ONGC), in a regulatory filing said operations at Mangalore refinery would be impacted till arrival of monsoon rains makes up for stoppage of water supply to the plant from the nearby Nethravathi river.
“The refinery was receiving around 5.5 million gallons a day (mgd) water from Nethravathi river. Water availability in the Nethravathi river and its downstream dams started depleting from the end of March. As a result the district authorities enforced reduction of water supply to MRPL to one-third level and finally on 11 April 2012, completely stopped the intake of water from the Nethravathi river,” the company said.
MRPL has three crude units -- Phase I of 4.68 million tons, Phase II of 7.14 million tons and Phase III of 3 million tons -- and supplies oil products in southern states. The shutdown would lead to shortage of supply of products to MRPL fed locations. MRPL said it had reserve water to meet just one-and-a- half days of full load operation of the refinery.
“In order to overcome the situation and pulling on the resources for next couple of days till rainfall starts, it has been decided to shut down the Phase-I and Phase-II units with immediate effect,” it said adding the company continues to watch the situation and would initiate necessary action as deemed fit from time to time.
“There will be shortage of supply of products to MRPL fed locations,” it said.
Further, MRPL may have to incur additional demurrage on account of delay in unloading crudes because of ullage problem and loading of products.
In an all cash transaction, Mitsui Sumitomo Insurance will pay Rs2,731 crore for the 26% stake in Max New York Life
New Delhi: US-based New York Life said it will exit from its Indian life insurance business venture--Max New York Life-- by selling its entire 26% stake to Japanese Mitsui Sumitomo Insurance at Rs2,731 crore cash, a deal dubbed as the second largest in insurance sector, reports PTI.
In an all cash transaction, Mitsui Sumitomo Insurance (MSI), a unit of Mitsui Sumitomo & Aioi Dowa (MS&AD) Group of Japan will pay Rs2,731 crore for the stake in Max New York Life (MNYL) subject to regulatory approvals.
“The transaction values Max New York Life at Rs10,504 crore ($2.1 billion). The consideration offered by MS&AD reflects the strong confidence in the company and its superior performance,” Max India chairman Analjit Singh said.
This is the second largest deal in the Indian insurance sector after Reliance Life, which sold its 26% stake to Japanese insurer Nippon Life at about Rs3,062 crore last year. As per existing regulation, a foreign partner can hold only up to 26% stake in an insurance joint venture.
Post the transaction, Max India's majority stake will remain unchanged at 70% but the company will be renamed as Max Life Insurance Company (Max LIC), Mr Singh said.
Under a complex agreement entered into by the firms, New York Life will sell 16.63% of its holding to MSI. The remaining 9.37% would be sold to Max India for Rs182 crore. Max India will then sell the 9.37% stake to MSI for Rs984 crore.
Asked why the deal has been structured in a two-phased manner, Max India, managing director Rahul Khosla said: “Obviously from our perspective there are worthwhile tax advantages in doing so. We are able to sell shares in such a way that from tax submission perspective, they make more sense for what tax rates are applied.”
There is an overall tax benefit of Rs879 crore, Khosla said, adding, “We are doing this because this is the most effective way to do it. We have a separate buy transaction, a separate sell transaction. So, a pre-tax cash benefit of Rs879 crore (will) accrue.” Out of this, Max India will get a net cash flow of Rs802 crore and Rs77 crore as brand fee.
The cash generated from the arrangement will enable Max India to invest in growth opportunities, Mr Khosla added.
Announcing its exit, New York Life Insurance chief financial officer Michael Sproule said, the company was taking the step as it needed to focus on its North American business. New York Life Insurance in the recent past exited from many other countries, including China, Thailand and Korea, as part of a strategic decision.
New York Life will get Rs1,852 crore for its 26% stake.
MNYL incorporated in 2000 is capitalised at Rs2,126 crore. The insurance firm posted statutory profits of Rs283 crore in 2010-2011 and about Rs800 crore in the last fiscal. It currently has about Rs17,000 crore of assets under management. Singh claimed MNYL is amongst the top 4 private life insurers in India with 8.6% market share of the private life insurance market.
MS&AD is the seventh largest non-life insurance company globally, with a market cap of $12.6 billion.
There will not be any change in the top management but there could be professionals joining at the middle management from Mitsui Sumitomo Insurance, Singh said.
MNYL has a solvency ratio of 539% per cent as on 31 December 2011, which is significantly above the statutory requirement of 150%, Sud added.
Andhra Pradesh-based Dr VS Prasanna Rajan is seeking a detailed reply from the President Secretariat on the defence land that is being used for building a bungalow for Pratibha Patil to occupy post retirement
Andhra Pradesh-based Dr VS Prasanna Rajan has sent a notice under section 80 of the Code of Civil Procedure, 1908 to the secretary of President Pratibha Patil seeking detailed report or explanation on a story published by Moneylife (Ref ). President Pratibha Patil grabs 2,61,000 sq ft of land meant for soldiers and officers
Here is what Dr Rajan has sought within two months from the President Secretariat...
a) A detailed report, explanation containing the progress made by the concerned official(s) to bring to cognizance of the report vide Ref  in the media exposing the instance land grabbing by the current President of India, in utter violation of statutory rules and regulations.
b) A detailed report, explanation containing the initiatives taken by the concerned official(s) to appraise the current Honourable President, the relevant legal provisions and Supreme court judgments against grabbing excess land resource in violation of the relevant rules, regulations in force, for the same, so that corrective actions can be undertaken by the current Honourable President, to settle the controversy reported vide Ref , and to avoid unwarranted, avoidable court procedures, whereby the image, prestige, honour, credibility of Her Excellency, is enhanced before the citizens of India.
c) A detailed report and explanation on the designations of the officials in the secretariat and, or in the relevant departments under the Government of India/state government who were directly and indirectly instrumental for the controversy reported vide Ref  and the details on the prosecution so launched on the concerned officials for the same be provided.
d) A detailed report/explanation in the liability on the part of the current Honourable President of India for the unwarranted/unjustified infraction of the privileges, benefits due to the deserving employees of the ministry of defence, due to the incident reported by the media vide Ref .
e) A detailed report/explanation with regard to the corrective measures so undertaken by the current Honourable President of India, in order to avoid unwarranted, avoidable court procedures, thereby settling the controversy reported by the media vide Ref .
f) If no corrective measures are undertaken by the current Honourable President in light of the report in the media vide Ref , then a detailed report, explanation for the same, justified by cogent reasons backed by relevant provisions of the acts, rules, regulations, procedures in force.
g) If no such progress is made in any of the aforesaid queries, if no explanation, report is available for some, all, part of the queries in this notice, if it is decided officially not to act on this notice, then a detailed explanation, report, supported by cogent reasons for the same.
As per a judgement by the Supreme Court, public authorities and officers must be given a notice under section 80 of Civil Procedure Code, 1908 before moving courts against them.