NMDC signs deal with Australian firm Minemakers

NMDC will take a decision on acquiring 50% stake only after completion of the feasibility study, which would take about a year to complete

NMDC said it has signed an agreement with Australian firm Minemakers to develop Wonarah phosphate deposit of the company and would buy a 50% stake in the project after a joint feasibility study.

“Upon successful completion of the feasibility study, NMDC proposes to acquire 50% equity in the Wonarah project and participate in the development of the project,” the company said in a regulatory filing.

The announcement has come within a fortnight of NMDC agreeing to acquire 50% stake in another Australian firm—Legacy Iron Ore.

The memorandum of understanding (MoU) signed between the two firms envisages preparing of road map for NMDC’s participation in development of the Wonarah phosphate deposits, the filing said.

“This will enable us to enter into Australia’s largest known undeveloped phosphate deposit and bringing it to India for the domestic fertiliser industry,” NMDC Director (Technical), Mr NK Nanda said over phone.

He added that the company will take a decision on acquiring 50% stake only after completion of the feasibility study, which would take about a year to complete.

“The proposed Wonarah development will include a mine and downstream processing facilities to produce beneficiated rock phosphate for export; phosphoric acid (an intermediate product); and finished fertiliser products such as DAP and MAP (Diammonium Phosphate and Monoammonium Phosphate),” Minemakers said in a statement.

It added that after the feasibility study, both the companies may form a joint venture for the development of the asset and NMDC will have full responsibility to raise finances for the project through debt.

However, Mr Nanda said, “There has not been any investment commitments made so far and it will depend upon the findings of the study”.

The terms of the JV agreement will be negotiated during the advancement of the feasibility study, which is expected to begin during fourth quarter of 2011, the Minemakers statement said, adding that NMDC will also repay some of the project costs incurred on the Wonarah project to it.

Wonarah is also the only Australian rock phosphate project that has been granted Government’s ‘Major Project’ status and enjoys important traditional owner and stakeholder support, Minemaker’s website said.

A positive Direct Shipping Ore Feasibility Study and bulk sampling operation were completed in 2010, it added.

On Monday, NMDC ended 0.13% up at Rs236.15 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.24% to 18,240.11.

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India among preferred FDI destinations: E&Y

According to the ‘9th Annual European Attractiveness Survey’ by Ernst & Young, India will rank fifth among the most attractive destinations for European firms within the next three years, mainly on account of its perceived specialisation as a hub for low-cost outsourcing business

According to the ‘9th Annual European Attractiveness Survey’ by Ernst & Young, India will rank fifth among the most attractive destinations for European firms within the next three years, mainly on account of its perceived specialisation as a hub for low-cost outsourcing business

New Delhi: Despite regulatory hurdles, India continues to be among the preferred destinations for foreign direct investment (FDI) due to the country’s high economic growth, with both Mumbai and Delhi being touted as among the cities likely to produce the next Microsoft or Google, reports PTI.

According to the ‘9th Annual European Attractiveness Survey’ by Ernst & Young, India will rank fifth among the most attractive destinations for European firms within the next three years, mainly on account of its perceived specialisation as a hub for low-cost outsourcing business.

“Foreign investors are not deterred by current regulatory issues to invest in India... India’s perceived specialisation as a low-cost business process outsourcing (BPO) hub continues to appeal investors across the globe,” the report said.

As per the E&Y report, a huge number of respondents felt that India would be the home to the next big brand name in the IT sector.

“... Eight per cent of global respondents named Mumbai and 4% named New Delhi as the best cities to produce the next Microsoft or Google,” it said.

Around 800 executives from top-level global firms participated in the survey.

As per the survey, 31% of the participants each felt that Western Europe and China would be among the attractive markets for investing within three years.

“India ranked at the fifth position, with 17% of respondents believing the country to be a profitable economy for expansion of business,” E&Y said.

Experts have been warning against regulatory hurdles and a slowdown in the reform process, including failure to liberalise the retail and insurance sectors further, as likely irritants in attracting FDI.

FDI into the country fell to $19.43 billion (Rs88,520 crore) in 2010-11 as against $25.83 billion (Rs12.31 lakh crore) in the previous fiscal, a decline of 25%.

“India is undergoing a transition in terms of investor perception of its market potential, bolstered by economic growth projected to surpass 8% annually,” the report said.

The Indian economy expanded by 8.5% in 2010-11, up from 8% in the previous fiscal. The Reserve Bank of India, in its annual monetary policy, said that growth is likely to slow down a bit but still clock around 8% this fiscal.

The survey also found that Asian countries find Europe to be a good investment destination, with India ranking 11th among the top investors globally to the continent.

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How safe is your water purifier? HUL makes exaggerated claims

RTI activist exposes exaggerated claims by HUL that its water purifier kills one crore viruses per litre of water

"Ek litre pani mein ek crore virus marta hai", or one crore virus die in one litre of water. That's the claim by the water purifier maker Pureit, in a television commercial. The company tries to substantiate this claim with test results from the Pune-based National Institute of Virology (NIV). However, an RTI query has found Pureit's claim to be false.

According to a reply from NIV to an RTI application, the test was conducted on a sample of water of 0.67x105 Hepatitis E virus particles per litre, and not one crore virus as the sample size claimed. Therefore, the claim that one crore virus are killed, is not backed up. A copy of the test report and the RTI reply is available is with Moneylife.

NIV, which conducts comprehensive research on human viruses of public health concern, tested eight domestic water purifiers using 0.67x105 Hepatitis E virus particles per litre of water.

None of the water purifiers were named, but they were labelled as units, namely Unit I to VIII. The report revealed that only two water purifiers, that is Unit VII and Unit VIII passed the test.

Mumbai-based RTI activist Dr AR Shenoy evoked the RTI Act to seek details of the study by NIV. According to the reply, Unit VIII was the Pureit model manufactured by Hindustan Unilever (HUL). Mr Shenoy had asked whether any one of the brands was successful in removing/killing one crore viruses from one litre of water. The reply stated clearly that none of the water purifier brands tested had achieved this.

The report does not mention the names of any of the other water purifiers tested, apart from Pureit, which it says, removes 99.9% of virus particles.

Mr Shenoy says, "The test was conducted using 0.67x105 Hepatitis E virus particles per litre of water, which is less than one million virus particles. Pureit passed the test of removing/killing less than one million virus particles, as that was the sample size. The study did not take one crore as sample size, so this is a blatant lie and a claim made by the company that is misleading."

He said, "Pureit of Hindustan Unilever (HUL) has taken the liberty of twisting and misrepresenting the NIV report to its advantage. There is also a deliberate attempt on the part of NIV to please HUL, as the report does not mention the names of the other seven water purifiers, while it has no hesitation in mentioning Unit VIII as Pureit"
 
Dr Shenoy also pointed out that "Pureit has markets in Indonesia and Mexico, but, in these countries they don't make such tall claims of killing one crore viruses per litre, probably for fear of repercussions from the governments there."

In a reply to a query by Moneylife, HUL said the claim in the advertisement was based on the US EPA Log 4 standard for virus removal. Log 4 removal of virus from one millilitre of water would translate to one crore of virus in one litre of water. These claims are made based on strong scientific evidence.

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COMMENTS

Ranit singh

5 years ago

in this country make the fool is best policy for selling anything,the quality controllers are big fool.

nagesh kini

5 years ago

This is a fit test case to lodge a claim of Rs. 1 crore announced by HUL for challenging.

Waman Karmarkar

5 years ago

I feel HUL claim is big and they are just looting the customers at the time of recharging the battries

ajit joglekar

5 years ago

Thanks Dr Shenoy.
With a significant percentage of population not even getting assured drinking water,due to failure of civic administration across metroes,cities and towns and villages,these profit oriented companies are spreading fear psychosis among those who can afford such equipments at home.It is upto ASCI(Advt.standards council of India )to take an active role and streamline the advertisers of such products from making such tall claims.
Creative admen like Prasoon Joshiji,Piyush Pandeyji have a constructive role to play here.

Sunil Date

5 years ago

I believe they were challenging with a price of Rs 1 Cr. Why don't you claim it ?

showerob

5 years ago

The system should be subject to an independent testing by organizations like the NSF International, or the WQA.

BHARAT KANANI

5 years ago

From the TV Ad, Common men interprets that HUL is offering a Price of One Crore.

nagesh kini

5 years ago

HUL as a part of its CSR come out with its take on publishing such misleading ads.
It is for the Fair Business Practices and Advertising Standards Board to initiate suo moto action.
No entity however large can get away with blue murder.

deepaksb

5 years ago

Its not HUL-but all big players are equally worst and dishonest-and govt.authorities are equally corrupt,including Indian Medical Association , BIS and Advt.standards of India.

TWO YEARS back - I had very BITTER experience with Eureka Forgbe's ( Aquaguard) -Water purifier costing Rs.10,000/-+.Brand new water purifier was leaking when power is switched OFF. ( I was staying on second floor of a 4 storey building-no question of excessacive water pressure ) .

I did not allow the installation technician of Aquaguard to open and repair-BRAND NEW equipment and asked for a replacement.

Another brand new piece also had the same problem.Finally I asked Eureka Forbes to REFUND my payment - by a a/c payee cheque-issued by the company-NOT A DEALER.I got my refund and then only returned defective machine.There after I had sent MANY LETTERS to Eureka Forbes,Tata Empire (Eureka Forbes is a TATA group co/ tata holds stakes in Eureka Forbes),BIS-Delhi and Mumbai,Indian Medical Council,Advt.statndards of India.

Eureka Forbes NEVER REPLIED TO MY SINGLE EMAIL/LETTER.I personally visited BIS office at Mumbai(MIDC,Andheri-east) and spoke to conscerned persons connected with testing of water purifiers.I was told that out of 20/25 models of Aquaguard-only one or two models are certified for ISI standards.However while advertising in print and media-uncertified models are advertised as ISI certified.There is a CLEAR UNDERSTANDING between BIS officials and water purifiers manufacturers to play above referred tricks to FOOL public .Some of my communications were marked to senior official (leading consumer activist) of MONEYLIFE for information.

Dolphy Dsouza

5 years ago

Thank you Dr. Shenoy for this effort.

It is unfortunate that HUL which speaks of CSR and other initiatives is lying to the consumer. This is a fit case for all those who have purchased this to move the consumer court. Maybe Moneylife could guide the consumers.

Secondly, the NIV Institute must come out with the entire report or face action.

Dolphy D'souza

B V KRISHNAN

5 years ago

We must thank Dr. Shenoy for calling the bluff of this mighty multi-national. But sadly, the major print-media who thrive on political scandals, are yet to pick up this fraud by HUL. And the reasons are not far to seek: HUL has a generous ad budget and the print media is prepared to eat out their hands for a share of this ad pie.

REPLY

muthukumar

In Reply to B V KRISHNAN 5 years ago

Why is electronic+print media not reporting this. Scary that ads are so misleading

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