Companies & Sectors
NMDC to set up steel plant in Karnataka
The National Mineral Development Ltd (NMDC) will set up a three-million tonne per annum steel plant in Karnataka, union Steel and Mines Minister Narendra Singh Tomar said on Tuesday.
 
The greenfield plant, in the state's mineral-rich northern region, will be a joint venture with the state government at a cost of Rs.18,000 crore, he told reporters here.
 
Though the Hyderabad-based NMDC's main activity is mining iron ore and selling the raw material to steel plants, it is foraying into rolling out the hot metal to meet the 300 million tonne production target the government seeks to achieve over the next decade.
 
"The government is setting up four steel plants in Chhattisgarh, Jharkhand, Karnataka and Odisha through state-run SAIL, RINL and NMDC by forming special purpose vehicle (SPV) for each of them with the respective states where the raw material is available in abundance," Tomar said after chairing a parliamentary consultative committee meeting of his ministry.
 
The installed capacity will be doubled to six million tonne per annum in each plant in the second phase to meet the demand from across the country by diverse industry verticals for domestic consumption and exports.
 
The proposed four steel mills will contribute an additional 20-24 million tonnes to the annual national capacity, which is currently at 101 million tonnes, though actual production is 80-85 million tonnes.
 
Later, Tomar flew to Belagavi to discuss the ambitious project with Chief Minister Siddaramaiah and officials, as land and resources, including captive mines, have to be identified and allotted.
 
"I have also urged the chief minister to allot captive iron ore mines to KIOCL (Kudremukh Iron Ore Company Ltd) to fully utilise its pellet production plant at Mangaluru, as its mines in the Western Ghats were shut down by the Supreme Court (a decade ago) on environmental grounds," Tomar told reporters at Belagavi.
 
NMDC will be the second state-run enterprise to have a steel plant in Karnataka after SAIL, which operates a steel mill at Bhadravati in Shivamogga district.

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AAP government to bear expenses of MLAs opening offices
The AAP government in Delhi will bear the cost of opening and maintaining offices by legislators who have been asked to identify the land in their respective constitutes in the national capital.
 
In a letter to Bharatiya Janata Party (BJP) lawmaker Vijender Gupta, assembly Speaker Ram Niwas Goel said the government of the National Capital Territory (NCT) of Delhi has conveyed it was in agreement to the concept of establishing offices of assembly constituencies in each seat.
 
The letter was written on June 25.
 
Interestingly, about a dozen of AAP legislators have demanded hike in their salaries, due to official expenses in their constituencies.
 
Of the 70 Delhi legislators, 67 are from the Aam Aadmi Party and the remaining three belong to the BJP.
 
The letter said that "the office should be approximately about 700-1,000 square feet in size and located at a convenient location which is easily accessible to the public".
 
"Office infrastructure like staff, furniture equipment like computer, fax etc. will be provided by the Delhi assembly Secretariat," it added.

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India Inc to witness another forgettable quarter: CRISIL Research
Soft commodity prices, weak growth in investment-linked sectors and subdued rural demand might lead to disappointing results for the quarter ending June 30, independent analysis firm CRISIL Research said on Tuesday.
 
In an analysis of 600 companies (excluding financial and oil and gas companies) representing 70 percent of the overall market capitalization, it said it found only a three percent uptick in revenue growth.
 
However, the growth is 230 basis points over the 0.7 percent seen in the quarter ending March 31, 2015, CRISIL Research said in a statement.
 
The moderate growth expected in export-oriented consumer driven sectors will be impacted by continued weak performance of investment-linked sectors and low global commodity prices, it added.
 
"Export-oriented sectors and some domestic consumption-driven sectors (such as retail, FMCG, and media) will be the topline outperformers with the former being partly aided by the recent weakness in rupee," said CRISIL Research's senior director Prasad Koparkar.
 
Low prices will majorly impact petrochemical, steel, sugar and man-made fibre sectors while cement manufacturers are likely to see another weak quarter, it said.
 
However, after three flat preceding quarters, construction companies are likely to see two to four percent growth.
 
Low rural consumption is reflected in the volume and topline growth of FMCG, tractor and two-wheeler companies which depend on the hinterland. 
 
On the brighter side, rise in data revenue and control on operating expenses will boost telecom companies margins by 120 basis points. Margins of petrochemical companies are expected to witness a rise of over 400 basis points following improvement in polyester feedstock spread, the statement added.
 
Road developers are also likely to witness margin rise by 350 to 400 basis points following a hike in build, operate and transfer (BOT) projects.

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