POSCO has completed construction of its first steel plant, a 0.45 million tonne per annum continuous galvanised line facility in Maharashtra even as the steel company is awaiting clearances for its $12 billion plant in Orissa
New Delhi: Still awaiting clearances to begin work on its much-hyped $12 billion project in Orissa, South Korean steel major POSCO has completed construction of its first steel mill in India at a cost of $240 million.
"POSCO has completed construction of its first steel plant in India -- a 0.45 million tonne per annum continuous galvanised line (CVL) facility at Maharashtra," a company official, who did not wish to be quoted, told PTI.
"The facility was inaugurated by Posco-India chairman and managing director Yong-Won Yoon yesterday and a brief test run was done. It will be fully operationalised as soon as a minor clearance, which is pending, is given by the state government," the official added.
The project entailed a total investment of $240 million (about Rs1,339.35 crore), the official said adding the hot galvanised plate facility would cater to the high-end galvanised coil needs of automakers in and around Pune besides those of home appliances.
The world's fourth largest steelmaker is set to start production any day and supply products to automakers in Pune.
Maharashtra is home to a host of automobile plants including that of Volkswagen, Tata Motors, Mahindra & Mahindra, General Motor, Audi, Mercedes Benz, Skoda, Premier Auto and Bajaj Auto.
POSCO has also plans to set up an electric steel plate facility and a cold-rolled mill in Maharashtra.
About much-hyped $12 billion ( around Rs52,000 crore) plant at Jagatsingpur in Orissa, the official said work would begin on the project soon after the state government hands over the required land.
In a setback to Posco's Orissa project, the country's single largest foreign direct investment (FDI), the National Green Tribunal on 30th March had suspended the green clearance granted on 31 January 2011 to the much-awaited project. The tribual directed the Ministry of Environment and Forests (MoEF) to review afresh the clearance.
The Tribunal pointed out that memorandum of understanding between the Orissa government and Posco states that the project is for steel production of 12 million tonnes per annum (MTPA) but the environment impact assessment (EIA) report has been prepared only for 4 MTPA in the first phase.
The Tribunal decision came close on the heels of Prime Minister Manmohan Singh assuring South Korean President Lee Myung-bak in Seoul earlier this year that the project will be implemented and there was progress on it.
The steel plant, proposed at Jagatsinghpur district in Orissa, is hanging fire for over six years now due to land acquisition hurdles. It requires 4,004 acres of land for it.
Residents of Financial Action Task Force member countries, Gulf Cooperation Council and European Commission will also be considered as qualified foreign investors
New Delhi: In order to attract foreign funds, the Indian government on Tuesday allowed individual overseas investors also called Qualified Foreign Investors (QFIs) to invest up to $1 billion in debts and corporate bond market, reports PTI.
The government also expanded the ambit of QFIs to include residents of FATF (Financial Action Task Force) member countries and those from Gulf Cooperation Council (GCC) and European Commission (EC).
"A separate sub-limit of $1 billion has been created for QFI investment in corporate bonds and mutual fund debt schemes," a Finance Ministry official said.
As of now, foreign investors were allowed to invest $20 billion in the country's corporate bond market. With this the ceiling will increase to $21 billion.
"We are looking at 6-14 months to see the optimisation of QFI inflows," Thomas Mathew, Joint Secretary (Capital Market Division) in the ministry said.
EIH, the owner of Oberoi brand of hotels and resorts, reported an 89.7% increase in its full year net profit at Rs122.42 crore
New Delhi: EIH Ltd, which operates hotels and resorts under Oberoi brand, on Tuesday posted 32.7% decline in the net profit for the fourth quarter ended March 2012 to Rs 45.13 crore, reports PTI.
The company's net profit for the three months ended March 2011 was Rs67.06 crore, it said in a filing to the BSE.
The decline in net profit during the quarter under review was mainly due to 'other income' of Rs93.31 crore, which it had in the year ago-period. In the fourth quarter of FY12, the company's other income stood at Rs2.72 crore.
EIH further said its total expenditure in the quarter under review increased to Rs261.63 crore, compared to Rs252.20 crore in the fourth quarter of 2010-11.
Net sales during the quarter under review increased 1.1% to Rs319.60 crore, against Rs316.13 crore in the fourth quarter of 2011-12, the company said.
The firm's net profit for the year ended March 2012 grew 89.7% to Rs122.42 crore, from Rs64.54 crore in 2010-11. Its net sales for the year increased 7.2% to Rs1,101.79 crore, against Rs1,027.50 crore in 2010-11.
The company's board of directors have recommended dividend of Rs1.10 per share.
EIH shares were trading at Rs77 per share, down 0.52% from the previous close on the BSE.