Companies & Sectors
New power related projects: No waivers as MOEF clearances mandatory!

Fortunately, in the case of SAIL, the Cabinet Committee for Investments, headed by prime minister Manmohan Singh, has stipulated that “within a month” MOEF is to issue clearance after obtaining the necessary information from the Jharkhand government, to facilitate commencement of work at the iron ore mines in Gua

The newly appointed Cabinet Committee on Investments, after reviewing 20 project proposals, has cleared 13, estimated to cost around Rs33,000 crore. These projects cover ten transmission, one hydro and two thermal projects. Full details have not yet been released in regard to time frame, owners’ location and other data, but the fact that the prime minister has stipulated that clearance be given within a month, at least in the case of Steel Authority of India (SAIL), makes the news interesting.

 

From this list, it appears one has already been recommended for clearance by the ministry of environment and forests (MOEF); two others are being followed by the ministry of coal with ministry of power and four others are with state governments and other ministries for clearances.

 

The press report also says that various clearances are pending with MOEF; ten projects in the transmission sector awaiting clearance for Stage I and Stage II Forest Clearance from the MOEF.

 

Fortunately, in the case of SAIL, the Cabinet Committee for Investments, headed by prime minister Manmohan Singh, has stipulated that “within a month” MOEF is to issue clearance after obtaining the necessary information from the Jharkhand government, to facilitate commencement of work at the iron ore mines in Gua. The details of information required have not been publicised.

 

When the project is completed, SAIL will be able to increase its crude steel output by 5.44 million tonnes per annum. Media reports indicate that SAIL plans to invest Rs10,000 crore for mining activities and Rs19,000 crore for steel plants at Bhilai and Salem, apart from spending Rs43,000 crore in Bokaro, Durgapur, Rourkela and Burnpur plants. To meet these expansion and modernization projects, iron ore requirements will jump from current 24 million to 39 million tonnes, part of which will be, hopefully, obtained from the proposed Gua mines, when it becomes operational.

 

In a recent quotable quote, Jayanthi Natarajan, minister of environment and forests, is reported to have said that “there are no pending cases” in her office. There may be nothing ‘pending’ in her office as such, but, if somewhere down the line, work is held up and clearance is not forthcoming even at the state government or any other level, one must construe this as a stumbling block in our national progress.

 

It is also an altogether different issue that she was conspicuous by her absence in the recently held “Clean Energy Ministerial Meet” where her counterparts from 23 countries participated in the two-day conference. It is time MOEF announces details of pending cases for clearance, regardless of whether these are in Stage I or II and clearly give a time-frame within which these will be cleared; if not, they must categorically state why such clearances cannot be given and give ultimatums to project applicant for complying the required needs to facilitate such clearances. Passing the buck must stop by all concerned.

 

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)

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Residential realty sector in India is going through a phase of lull

Price acceleration was persistent across the markets, with the highest rise being in Bengaluru, says Liases Foras’ quarterly report on the realty sector

The residential realty sector in India is going through a phase of lull, according to Liases Foras’ quarterly report on the sector. In terms of sales both in units and value, only the National Capital Region (NCR) market received a boost in the fourth quarter of the fiscal 2012-13, followed by Chennai, while the others recorded a decline. The Mumbai Metropolitan Region (MMR) market showed stagnancy.

 

 

On a sequential basis, the NCR and Chennai markets logged in 24% and 36% surge in sales, while others such as Bengaluru and Pune showed decline. Hyderabad presented a gloomy picture with a 46% q-o-q plunge in sales.

 

While analyzing the cost range distribution, maximum sales figures in all the cities were skewed towards inventory in Rs25 lakh to Rs50 crore and Rs50 lakh to Rs1 crore. However, only in MMR, the sales saw equitable distribution across cost ranges above Rs25 lakh.

 

Price acceleration was persistent across the markets, with the highest rise being in Bengaluru.

The 1% decline in MMR in the previous quarter, hinting towards further correction, could not be sustained and the prices recorded a 3% q-o-q rise again.

 

In terms, of efficiency, again Chennai and NCR showed a decline in the months inventory.

Hyderabad once again indicated a dismal picture with its inventory standing at 49 months compared to 23 in the previous quarter. MMR was stagnant while situation in Bengaluru and Pune are dicey with a rise in months inventory.

 

 

On the whole, the price of new supply was lower than that of existing supply. MMR ruled the roost in terms of number of new launches while NCR, Pune, Hyderabad and Bengaluru have shown significant shrinkage in new launches.

 

 

It is interesting to note that the maximum new supply in MMR is in the cost range of Rs1 crore-Rs2 crore, while in NCR, it is the affordable housing that led the pack. Rest other markets saw a mix of budget and affordable housing in terms of new supply.

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COMMENTS

K Sunil Kumar

4 years ago

What is the check list for buying a new apartment ?
What legal documents we should look for ?
What hidden cost we should be aware of and how to judge the fair price of apartment ?

Unquoted: Nucent Estates

Stories of price manipulation

 
Nucent Estates Ltd was earlier Pressman Ltd, a public relations and advertising company owned by the Suchantis of Kolkata. Pressman changed its name to Nucent Finance Ltd. It was pulled up by depositories CDSL and NSDL for failing to comply with demat norms and by the BSE for failing to disclose corporate governance report. 
 
The company has now supposedly diversified into real estate business and has exited from financial services. The name has changed yet again and is now Nucent Estates (even though, for some reason, it is still listed as ‘Nucent Finance’ on the BSE). Its fundamentals are downright abysmal. It recorded virtually zero sales in the past six quarters ending December 2012 and it has recorded losses in five quarters out of these six quarters. Despite the terrible numbers, its share price has zoomed 742% over the past one year, from Rs1.28 to Rs10.78. An obvious case for investigation under SEBI’s market manipulation rules, but the regulators are sleeping, as usual.

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