Dear Colleagues,

W elcome to this edition of the newsletter of

CII Council on Public Sector Enterprises. There have been numerous discussions across the world on the role of Government in business, and the recently concluded national conference & annual general meeting of CII brought to the fore new perspectives and the best way

forward on this, taking into account the performance of PSEs in India since ushering-in of economic reforms in 1991 and the sources to drive growth in the Indian economy.

PSEs have grown by around 23% in turnover terms and around 10% in profit terms during the year 2011-12 over the previous year notwithstanding subdued business environment coupled with competition from domestic private sector & foreign companies.

The Hon’ble Prime Minister, Dr Manmohan Singh, rightly mentioned in his address during the CII National Conference that the 11th Five Year plan saw an average growth rate of 8%, and the growth had been more inclusive than ever before. He also indicated that there is further requirement for higher and more inclusive growth during the 12th Plan period. This year’s Budget has also introduced significant initiatives to stimulate investment, the prime mover for economic growth. The Prime Minister also emphasized that enhanced opportunity for employment is the best form of inclusion.

In a bid to push forward the reforms process, a Cabinet Committee on Investment (CCI) has been constituted under the Chairmanship of Hon’ble Prime Minister to expedite decisions on approvals & clearances for implementation of big ticket infrastructure & manufacturing sector projects involving an investment of Rs1,000 crore or more. Recently, 13 power projects out of 20 which were held up due to various reasons have got clearance, infusing fresh vigour in the growth revival story of the country.

It is being widely acknowledged that PSEs have an overarching role in industrial development, and thereby in driving growth in the Indian economy. Since the time of independence, it was only PSEs that took the initiatives with attendant risks in new ventures, from development in the hinterland to pioneering new technology like clean energy. There are over 250 PSEs and almost all have the inherent capability to scale up, but there are procedures that are constraining PSEs decision-making ability, and hence limiting the pace at which they can make new investments and drive growth. It has been aptly mentioned by the Planning Commission that there is a need to define the scope of the role that Government needs to play in businesses.

Hon’ble Minister for Heavy Industries & Public Enterprises, Shri Praful Patel, in his address during the CII National Conference, 2013, called for expeditious implementation of the recommendations contained in the Administrative Reforms Commission’s report and the SK Roongta Committee Report on the subject of public sector autonomy, drawing parallels with the model of management of public sector enterprises in other countries like Singapore. Referring to the benefit accrued to the Industry by the talent pool created by the PSEs, Hon’ble Minister called for partnerships between the public and the private sector, to leverage business synergies and achieve faster industrial development from domestic resources.

As always, we welcome your suggestions as we build on the economic foundations of planned industrial development for a continuous increase in production and its equitable distribution for increasing opportunities for gainful employment, and reducing disparities in income, as laid out in the first industrial policy resolution formulated by our founding fathers.

Sincerely,

B Prasada RaoChairman, CII Council on PSEs

& CMD, Bharat Heavy Electricals Ltd

From the Chairman’s Desk . . .

NewsletterPSE

Inside this IssueFrom the Chairman’s Desk…................1CEO Speak............................................2

Events....................................................6PSE News Update..................................8

CSR Initiatives.....................................10Appointments.......................................11

The Bi-Monthly Newsletter May 2013 • Vol 4 No 3

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Mr Virendra Sinha, CMD, Balmer Lawrie & Co Ltd

How does Balmer Lawrie synergize operations across its diverse SBUs of grease & lubricants, logistics services & infrastructure, industrial packaging, tours & travel, leather chemicals and refinery & oilfield services?Balmer Lawrie has six main strategic business units, SBUs. For all practical purposes, the business units operate independently and act as separate profit centres under the umbrella brand Balmer Lawrie.

Having said that, it is important to have a perspective on what these six businesses are. We have a presence both in the manufacturing & services sectors. Under manufacturing, we do business in industrial packaging, greases & lubricants and performance chemicals. Our business unit of performance chemicals manufactures leather chemicals, Synthetic Fat Liquors & Syntans for the leather tanneries, and construction chemicals for the construction & infrastructure industries. The services businesses of Balmer Lawrie comprise Tours & Travel, Logistics Services

and Logistics Infrastructure. In Logistics Services we provide end to end logistics solutions primarily for export-import cargo. Under Logistics Infrastructure we have three Container Freight Stations at Kolkata, Mumbai & Chennai along with warehousing facilities.

There is a very apparent synergy between Logistics Infrastructure & Logistics Services: Logistics Infrastructure comprising container freight stations & warehouses forms the backbone of Logistics Services. Operationally, we have separate teams to manage these two businesses because the way to manage Logistics Infrastructure & Logistics Services is different, primarily because the former is asset heavy & the latter is asset light.

Among other businesses, prima facie there is very little synergy. Having said that, I must add that we are leveraging in-house expertise across our SBUs. For example, Balmer Lawrie produces more than 50,000 tonnes of specialized greases & lubricants each year, which are distributed across India from over 28 stock points. In order to leverage the synergy between various businesses, Balmer Lawrie Logistics Services handles the entire distribution of Balmer Lawrie Greases & Lubricants. Over a period of time we are planning to have the Logistics Infrastructure & Logistics Services handle the entire supply chain of the greases & lubricants business. We are investing a lot in technology to ensure that end to end solutions are provided seamlessly, initially for in-house requirements and thereafter

we would consider providing these services to customers outside the company.

Balmer Lawrie’s Tours & Travel business handles all the company’s logistics for in-house travel, conferences, dealer meets & incentive programs, promotional programs. Balmer Lawrie Greases & Lubricants sources all its barrels from the Industrial Packaging business unit.

So prima facie, there is very little synergy between various SBUs, but we leverage all the in-house expertise at our disposal. And, we have consciously decided to let the SBUs function independently. The common link between these SBUs is Finance, HR, Company Secretarial & Legal services.

What has been the response to Balmer Lawrie’s online travel portal, which is in a competitive space with players like makemytrip, cleartrip etc?Balmer Lawrie’s Tours & Travel business is not meant to provide the traditional B2C service that is generally offered by other online travel & tour aggregators. Balmer Lawrie’s Tours & Travel business is primarily a B2B business, through which we provide complete travel solutions for business travel. Our focus is corporate travel now, and will remain so going forward. We cater to Government departments, PSEs, Defence services & private sector businesses.

You will find that on the Balmer Lawrie travel portal, www.balmerlawrietravel.com, the prices are among the best

CEO Speak

Interview especially for the readers of CII PSE newsletter

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available. The objective of setting up the Balmer Lawrie online travel portal is not to compete with other online tour aggregators but to complement our own tours & travel touch points, which number around 86 across India.

In the corporate travel business, there is a lot of demand for “flexible” tickets, for bookings that can be changed at the drop of a hat because executive travel schedules change unexpectedly. And as ticket cancellation & rescheduling charges are typically high, corporate houses don’t want to incur such additional expenses. Balmer Lawrie Tours & Travel business addresses the demand for these kinds of flexible bookings to suit the travel requirement of business executives.

Since we have a web presence, we also offer other services such as tour packages; we currently offer over 40 tour packages. We will over the next quarter have on offer hotel bookings & car hire as well, for end to end travel related services.

Additionally, we are making available a software for “self booking”, which will allow large corporate houses to integrate Balmer Lawrie’s web based tours & travel services with their ERP software and process travel requirements of their employees through their intranet. The employees can directly access the Balmer Lawrie travel portal through their company’s intranet, coordinate internally for outstation meeting schedules and do their travel booking after going

through all the choices in airlines, departure times, prices etc on the travel website. This software will make travel bookings for corporate houses easier and more efficient.

How much would Balmer Lawrie’s overseas subsidiaries in UK, UAE & Indonesia contribute to projected revenues of Rs 3,500 crore by 2015, a 43% increase over 2011-12 revenues. What has been the company’s experience in China & Sri Lanka?We are on track to achieving the targeted Rs 3,500 crore in sales by 2015, and these sales will be primarily from businesses within India. The manufacturing businesses contribute about 40% to sales, and the services businesses the remaining 60%. We have not taken into account, for this projection, sales from Balmer Lawrie businesses outside India.

We have three overseas businesses, one in the UK which was set up in the early 1990s when Balmer Lawrie was a large tea exporter, and had a large fleet of marine freight containers which was leased out. In about 2007, we exited the tea business in the UK, and in 2008 we exited the marine freight container business for strategic reasons. We are still retaining Balmer Lawrie UK as an entity, as there are funds available with this entity, and it serves as an overseas investment arm of Balmer Lawrie. So whenever an opportunity arises to make investments abroad, we use Balmer Lawrie UK to invest.

Recently, we have set up operations in Indonesia, for manufacturing

greases & lubricants. This is a 50:50 JV with a local partner and the investment in this company has been made from Balmer Lawrie UK. This company started operations last year.

Balmer Lawrie UAE was set up in the early 1980s in Dubai, and was the first overseas operation by any Indian PSE. In the early 1990s there was a change in regulation in UAE mandating local partnership, so now we have 51% local shareholding in the UAE operations, with Balmer Lawrie managing it. The facility is a market leader in the Middle East in industrial packaging, and manufactures the entire gamut of containers starting from steel barrels to plastic containers and metal cans.

We have invested overseas to leverage synergies with our existing businesses. China is another country we have entered into with leather chemicals. In fact, leather technologists from Balmer Lawrie have been travelling to China, and we have established a strong distribution there. Having established our presence in leather chemicals, and with increasing trade between China & India, we are planning to set up our logistics office in China by 2014-15.

We have also signed a MoU with a company in Bangladesh to set up a plant for making steel barrels.

As part of our growth plans in India, we have signed a MoU with Vizag Port Trust to set up a Multi Modal Logistics Hub in Vishakhapatnam, and we are in the process of getting the necessary approvals from the Government.

CEO Speak

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Balmer Lawrie will hold a 60% stake in the SPV and Vizag Port Trust 40%. While Vizag Port Trust will provide us the land, we will build and operate the Multi Modal Logistics Hub, which will be the first of its kind in Eastern India.

We are setting up our seventh steel barrel plant in Navi Mumbai which will be among the most modern barrel manufacturing plants in South & South East Asia. Our existing plants in India typically produce 400 barrels an hour with 150 people; the new plant will produce 800 barrels an hour with 22 people. This gives a sense of the degree of automation that we are investing in.

We plan to invest around Rs 500 crore over the next 2 to 3 years.

Balmer Lawrie invested 0.28% of sales on R&D across SBUs. How much of R&D driven innovation is expected to contribute to overall sales in the coming years?Balmer Lawrie’s R&D spend is mainly in the manufacturing business. Our R&D spend in 2011-12 was 0.35% of manufacturing sales, the sales being around Rs 1,000 crore. I would like to see it increase. We have budgeted an R&D spend of over 0.7% of sales of the manufacturing business for the year 2013-14, and will gradually increase it to 2% by 2016-17.

While we are doing basic research in under Greases & Lubricants business, in Industrial Packaging we are focusing on applied research. Majority of the investment is being made in our greases & lubricants plant, as we are one of the largest producers of specialty greases & lubricants in India. Similarly in the area

of Performance Chemicals our thrust is not only on developing import substitutes for the leather processing industry but also to develop more green & environment friendly products.

Additionally, we are making major investments in IT & technology, which will support not only the manufacturing businesses but also the service businesses. We are in the process of implementing ERP at Balmer Lawrie. Since the businesses are diverse, we found it very difficult to select an ERP solution which could take care of the needs of all businesses. We went ahead with SAP and the implementation will be completed in three years in a phased manner, across HR, Finance, Industrial Packaging, Greases & Lubricants, Performance Chemicals, and the service businesses. Apart from this, we have invested a lot in technology in our Tours & Travel business. We have put in place a new back end system and in the last one & a half years the whole system of booking tickets have been automated, with the system showing the lowest fares through a customized software..

In the Logistics Infrastructure business, we have implemented the RFID based system in all our Container Freight Stations (CFSs) for tracking containers in real time. Hence, we can monitor the status of all our CFSs and movement of the containers through a centralized web based system from Kolkata.

Later in the year, our customers will also be able to track their shipment in real time through the web interface, get invoices and make payments online.

Similar to the RFID tracking system

for containers, we are in the process of implementing a Freight Tracking System for our Logistics Services business. This system allows one to track the status of any shipment from the time of shipment till the time of its arrival at the customer’s warehouse.

In both Logistics Infrastructure & Logistics Services, we are investing substantially in technology.

We have also initiated brand building, which is a major exercise, for the Greases & Lubricants business to start with. Our ad spend was doubled last year and this year once again we plan to very significantly increase it. We have rebranded our Greases & Lubricants brand ‘Balmerol’ with a new logo & signage. We have enhanced brand visibility in pockets where we feel there is a need, by investing in a big way on hoardings, Ad spots, dealer displays etc. We plan to enhance brand visibility of the Tours & Travel business and strengthen the brand image of this SBU as well.

We have also rolled out various sales promotion initiatives for our Logistics business. Since it is primarily a B2B business and there is very little direct interface with the end customer, sales promotion will be done more through trade shows, trade media vehicles etc.

To increase brand recall of Balmer Lawrie, we have identified sponsorship opportunities which fit with where we would want to see our brand.

Balmer Lawrie has been a low profile company, and we are now getting out of that mould to have the right positioning for the Balmer Lawrie brand. For instance, people in Delhi

CEO Speak

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see Balmer Lawrie primarily as a travel company, people in Kolkata see Balmer Lawrie as a greases & lubricants and an industrial packaging company. So, in whichever region we have a strong presence in a certain product or service, or we have a facility, people there tend to associate Balmer Lawrie with only that product or service.

We are endeavouring to increase visibility of the Balmer Lawrie brand, and position it appropriately.

How does the Government separate its role of majority shareholder & manager in Balmer Lawrie?The Government does not play any managerial role at Balmer Lawrie. The Government representation is at the company Board, like that of any other Board member.

The Balmer Lawrie Board comprises four functional directors from within Balmer Lawrie, a CMD who is also a functional director, two Government nominee directors, and six independent directors with a vacancy for one more.

In the large Board of Balmer Lawrie, the Government has only two nominees, and the Government directors have never tried to manage the company. We are a profit making company, and in the company history of 146 years we have never made a loss. Hence, we have never found any interference from the Government in the day to day functioning of the company. If anything, the Ministry of Petroleum & Natural Gas has been very supportive of Balmer Lawrie’s initiatives; the Government nominee directors and the Ministry officials have been very supportive, and all our proposals have been dealt

with proactively at the Government level.

In fact in all our six businesses, we compete with the private sector on an even keel. And we are able to do this because we get a lot of freedom from the Government.

What is Balmer Lawrie’s approach to CSR, the company has been involved in activities from training girls in travel & tourism operations to supporting mid-day meal schemes?Balmer Lawrie’s philosophy of CSR is that we will invest in all CSR & sustainability related causes that fall within the sphere of operations of the company. For instance, in Kolkata we are supporting an SOS village and an institute of cerebral palsy, both of which are in the vicinity of two manufacturing facilities and a container freight station of Balmer Lawrie.

Balmer Lawrie has also developed a five year perspective plan for sustainability & CSR initiatives. We work with NGOs who engage with our unit heads for implementing these initiatives. The five year plan has been prepared in consultation with all internal & external stakeholders, and serves as a guideline for Balmer Lawrie.

We also have programs, BLISS (Balmer Lawrie Initiative for Self Sustenance) & SAMBAL (Samaj Mein Balmer Lawrie). While BLISS is directed at providing & improving the long term economic sustenance of the underprivileged, SAMBAL aims at improving the living standards &

quality of life of population in and around the company’s work-centres.

Balmer Lawrie has always invested more in its CSR & sustainability programs than what has been the Government guideline. For 2013-14, we have budgeted for far more than the minimum mandated by the Government.

We invest in CSR & Sustainability not because we are forced but because we believe we ought to do that.

You have headed Balmer Lawrie’s UK operations for 11 years. What has been your experience of business environment in the UK versus that in India, especially interface with the Government?It was very easy to do business in the UK, it is not so in India. The UK is a very developed economy; the focus in the UK has been more on compliance rather than on oversight. Culturally too we are very different, with business having a more humane face in India.

The local authorities in the UK are easily accessible and one could simply pick up the phone and get problems resolved.

Anoop Mittal, CMD, National Building Construction CorpExcerpts from an interview in The Hindu Business Line, Apr 10 2013 edition. For complete text of the interview, please visit www.thehindubusinessline.com

NBCC operates in three areas, in project management consultancy (PMC), in real estate development and in engineering, procurement & construction (EPC). NBCC’s business

CEO Speak

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is accounted for 90% by PMC, 7 to 8% by real estate development and remaining by EPC. We are increasing our thrust more on real estate with focus on public-private partnerships, to acquire land bank and construct residential & commercial property. We have recently purchased land in Delhi, NCR & in Bhubaneshwar. Also, we are targeting large value EPC contracts in power & steel sectors.

We have around 20 projects across the country, either under implementation or in the pipeline. At least 80% of these projects will be residential, and the balance 20% commercial. Under residential projects, we are developing premium residences as well as flats for the economically weaker sections.

Our strength lies in construction, and in our in-house engineering & architecture divisions. We are building over 5,000 houses across India, 80% of which are in Delhi NCR. We will soon start a project in Kochi, and have on

the anvil plans for Chennai, Madurai, Bangaluru & Goa. We are in discussion with the Goa Government to launch a project on a partnership basis, the State Government will provide land and we will construct the houses.

Our margins are to the tune of 15 to 20%, unlike private developers who have a margin of up to 30%. We are targeting to have the real estate business contribute 30 to 35% to net margin of the company over the next three years. The biggest challenge here is to acquire land, at a reasonable price. We are targeting public sector enterprises that have a land bank which they are looking to monetize.

Courtesy: The Hindu Business Line

Events

CII National Conference & Annual General MeetingSession on Public Sector’s Role in In-dustrial FutureMr Praful Patel, Hon’ble Minister of

Heavy Industries & Public Enterprises remarked that defining the role of the Public Sector is imperative to address growth in the Indian economy. “The role of public sector is essential for the growth of Indian economy and cannot be understated”, said Mr Patel. Since independence, the public sector enterprises have taken the initiative and risks associated with new ventures and areas of operations. For instance, BHEL is pioneering manufacturing of solar wafers for renewable energy generation in India. Mr Arun Maira, Member, Planning Commission said that there is no doubt about the role that PSEs have been playing and will continue to play in the growth of the Indian economy. Commenting on the wide range of services and products historically offered by PSEs, Mr Maira stressed on the need to define the scope of the role that PSEs need to play at this crucial point, particularly in view of their unique ability to deliver services regardless of the

Events

(L to R) BP Rao, CMD, BHEL; Arup Roy Choudhury, CMD, NTPC; Arun Maira, Member, Planning Commission; Praful Patel, Hon’ble Minister of Heavy Industries & Public Enterprises, Govt of India; Tarun Das, former Chief Mentor, CII; RS Butola, Chairman, Indian Oil

PSE Newsletter 7

consumer’s ability to pay. Mr Arup Roy Choudhury, CMD, NTPC mentioned that several PSEs have grown since liberalization, even with increasing competition from the private sector. Mr Choudhury said that there are 44 listed companies which account for 20% to 25% of the market capitalization. He emphasised the PSEs’ ability to cater to India’s needs at competitive prices. In his address, Mr Choudhury also talked about instances of high growth in PSEs even at time of slow down such as during 2008; and PSEs collectively contributing Rs 1,60,000 crore to the exchequer in the last fiscal; investor confidence being demonstrated in 47% subscription by overseas institutions in US$ 2.2 billion of funds raised by NTPC; and surveys finding several PSE’s as having exemplary HR & corporate governance practices. Mr Choudhury enumerated decision making processes and ownership of the enterprise as issues that need to be redressed by the Government. Agreeing with the above, Mr R S Butola, Chairman, Indian Oil Corporation Ltd said that the need for a strong public sector is widely acknowledged. While reiterating his concern with the autonomy need of PSEs, Mr Butola referred to the example of the Singapore investment firm TAMASEK & Singapore Airlines. He also asserted that the role of state government & state enterprises is important in bringing the equilibrium in the market for growth of PSEs. He mentioned about the challenges in pricing which lead to difficulty in

deciding on subsidy contribution.

According to Chairman, India Oil Corp, sourcing of crude oil is going to be a challenge and it needs to be addressed collectively, because the countries that have crude reserves are setting up their own refineries. Domestically, with the growing purchasing power, the energy demand has increased, so much so that the net import bill ballooned to US$ 100 billion in 2011-12. Therefore, while on one hand quick decision making will enable PSEs to make acquisitions internationally, indigenous technology will help in exploration of domestic sources of energy.

In the context of the new Procurement Policy being prescribed by the Government, it was stressed by the speakers that the policy needs

to be more transparent and there is a need to appreciate that more policy should not lead to more ambiguity.

While reiterating the PSEs’ pioneering initiatives in new

geographies like North East India, their substantial investment in Research & Development with enterprises like BHEL investing 2.5% of sales on innovation & technology up-gradation, and creation of talent pool that has benefited the private sector as well, he advocated reforms to facilitate smooth entry of PSEs into foreign markets.

Concluding the session, Mr Tarun Das, former Chief Mentor, Confederation of Indian Industry endorsed the idea of partnership between public & private sectors and the need to address constraints faced by PSEs. He urged industry leaders in both the public & the private sector to drive the reforms needed in Government’s management of public sector enterprises, in the context of the changing economic environment.

PSE News Update

Divestment SAIL: 5.82% equity is scheduled to be divested by the Government, equivalent to about Rs 1,564

Events

(L to R) BP Rao, CMD, BHEL; Arup Roy Choudhury, CMD, NTPC; Arun Maira, Member, Planning Commission; Praful Patel, Hon’ble Minister of Heavy Industries & Public Enterprises, Govt of India; Tarun Das, former Chief Mentor, CII; RS Butola, Chair-man, Indian Oil

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crore. The Cabinet Committee on Economic Affairs has approved divestment of 10.82% equity in SAIL. The Government of India currently holds 85.82% stake in the company.

Engineers India: 10% equity is scheduled to be divested by the Government, equivalent to about Rs 800 crore. The Government of India currently holds 80.40% stake in the company

BHEL: 5% equity is scheduled to be divested by the Government. The Government of India currently holds 67.72% stake in the company.

HAL: 10% equity is scheduled to be divested by the Government. The Government of India currently holds 100% stake in the company.

HAL files 32 patents in 2012-13Hindustan Aeronautics Ltd, HAL, filed 32 patents in 20112-13, the highest for the company in a single year. HAL has been a technology driven company, and continues its thrust on R&D. The company invested Rs 1,749 crore, equivalent to 12% of its sales, on it.

HAL has developed both human resource and infrastructure for military aviation, and the company is planning to build on it to address civil aviation requirements. HAL has on the anvil partnerships with Indian and international companies to set up facilities to address the same.

Shipping Corporation to start dredging servicesShipping Corporation of India, SCI, has chalked out plans to enter the business of dredging at ports. Dredging is the process of removing soil or rock from under the water surface at ports to improve navigation of ships.

The demand for dredging services is growing in India as several new port projects are being planned and all existing ports need to undertake annual maintenance dredging to keep up their water depths. A lack of adequate water depth does not allow large vessels to dock at ports and ends up catering to smaller vessels. Arrival of large vessels at ports is important in bringing down the cost of import& export of goods.

Shipping Corporation of India currently has 80 vessels and had revenues of 4,309 crore in the last fiscal year. The company has been looking to venture into allied areas of the shipping sector.

Currently, Dredging Corporation of India, a public sector enterprise, and some private sector organizations are providing dredging services in India, but the demand is far outstripping supply.

Airports Authority to set up R&D centreThe Airports Authority of India, AAI, has entered into an agreement with MITRE corporation to establish a research, development &training facility in

Hyderabad. MITRE is a not-for-profit organization that shares expertise in engineering services such as systems engineering, IT & enterprise modernization.

AAI proposes to use the facility to train air traffic controllers, ATCs, and enhance air traffic control infrastructure in the wake of increasing air traffic. The facility will help identify ATC problems, develop solutions and achieve cost-efficient deployment of the new solutions.

Among other support, MITRE will provide AAI state of the art ‘Human-in-the-Loop’ computer simulation capability, which is a virtual, real-time ATC simulation to cost effectively learn to manage high air traffic.

IRCTC opens food outlets at Delhi Metro stations IRCTC, Indian Railway Catering & Tourism Corporation, has opened food kiosks at the stations of the Delhi Metro, to provide passengers hygienically prepared, quality snacks & delicacies at reasonable rates. The snacks will be served hot & packed, and other meals will come served in microwave oven compatible sealed trays.

IRCTC will initially open five food stalls, which will cater to over 5,000 commuters daily. IRCTC has an agreement with the Delhi Metro Rail Corporation to operate 130 outlets at the Delhi Metro stations.

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IRCTC operates food joints at various locations including, Shastri Bhawan, Udyog Bhawan, South Block & Delhi University, in Delhi, Writers’ Building in Kolkata and the Indian Institute of Management in Indore.

RITES exports locomotives to BangladeshRITES, Railways Infrastructure Technical & Economic Services, will be providing 26 broad gauge locomotives to Bangladesh. RITES will provide two locomotives every month.

Hon’ble President of India, Shri Pranab Mukherjee & the Hon’ble Prime Minister of Bangladesh, Sheikh Hasina, jointly flagged off the first two locomotives exported by RITES to Bangladesh. The locomotives carrying freight were flagged off at the Dhaka cantonment railway station.

RITES had entered into an agreement with Bangladesh Railways to supply 16 broad gauge locomotives, at an estimated Rs 413 crore. The agreement has now been extended to 26 locomotives.

ONGC to invest Rs 4,050 crore on modernizationONGC is scheduled to invest over Rs 4,050 crore to modernize its Western offshore facilities at Mumbai High on the Arabian Sea. ONGC’s Western offshore fields are planned to be in production beyond 2030, which is more than the initial design of these facilities.

Hence, revamping & retrofitting these facilities is being carried out in a phased manner to maintain their level of oil & gas production.

48 platforms of Mumbai High and Neelam & Heera assets are scheduled to be revamped at an investment of Rs 2,913 crore. The modernization is scheduled to be completed by summer of 2016. The Bassein & Satellite fields located in the Arabian sea at Gujarat, Maharashtra border are nearing their designed life of 25 years. The modernization of the same is scheduled to be completed in 2014-15, at an outlay of Rs 1,138 crore.

ONGC Videsh raises US$ 800 millionONGC Videsh, OVL, has raised US$ 800 million (about Rs 4,000 crore) in its first attempt at raising funds overseas. The funds have been raised through issue of US$ 300 million five-year bonds & US$ 500 million ten-year bonds. ONGC has been funding OVL’s acquisition of assets abroad, and now OVL is looking at raising funds on its own.

OVL will use the proceeds to part finance its stake in Azeri, Chirag & Guneshli (ACG) oil & gas fields in Azerbaijan, and the attendant pipeline infrastructure. OVL had acquired the stake in Sept 2012 for nearly US$ 1 billion.

The ACG oilfield is one of the

largest producing oil fields in the world. It is operated by British Petroleum and produces around 700,000 barrels a day, 35 million tons per annum of crude oil. This production is more than India’s annual oil production. OVL’s share of output would about 1 million tons per annum.

Indian Oil raises Rs 1,700 crore domesticallyIndian Oil Corporation has raised Rs 1,700 crore through issue of bonds to investors in India, at an interest rate of 8.14% per annum.

The IOC bonds were rated AAA, and have maturity of five years, with exit options for investors at the end of 18 months & 36 months.

The proceeds of this funding will be used to meet working capital requirements of the company.

Oil India to raise US$ 400 million through ECBsOil India has planned to raise US$ 400 million (about Rs 2,000 crore) through external commercial borrowings, ECBs. Funding through ECBs is cheaper than raising funds domestically. Oil India has a capital expenditure of US$ 600 million in the current fiscal year, and has a cash surplus of Rs 14,000 crore (US$ 2.8 billion).

Among other initiatives, Oil India is looking to acquire oil & gas assets in North America and set up a 4 to 5 million tonne capacity LNG terminal at India’s east coast.

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Numaligarh Refinery to raise US$ 90 million through ECBsNumaligarh Refinery Ltd has entered into an agreement with State Bank of India to raise US$ 90 million (about Rs 450 crore) through external commercial borrowings, ECBs to part finance its capital projects. The company is currently executing a production facility for high value Paraffin & Micro-Crystalline wax at its plant location, to be commissioned in the current financial year at a total project outlay of Rs 577 crore.

Numaligarh Refinery is looking to raise its refining capacity from the current 3 million metric tonne per annum, MMTPA, to 8 MMTPA, and would be perusing funding for it separately.

MTNL to raise Rs 3,000 croreMTNL is looking at raising Rs 3,000 crore through sovereign guarantee bonds. It is proposed that the company will raise bonds for 10 years which will be covered by sovereign guarantee, the bonds will be raised through private placement. MTNL would be utilizing the amount for capital expenditure and in reducing the interest costs.

Additionally, MTNL has asked the management consultancy Deloitte to look into its operations structure and submit a report within a month on giving a fillip to its workings.

MTNL had revenues of Rs 3,625 crore in FY 2011-12 with an

employee strength of about 45,000. MTNL provides telecom services in Delhi, Mumbai & Mauritius.

CSR Initiatives

SJVN partners HelpAge India to provide easier access to healthcare

SJVN Foundation, a trust that carries out CSR initiatives of Satluj Jal Vidyut Nigam, SJVN, will partner HelpAge to operate six Mobile Medical Units and organize health check-up camps around its hydroelectric power generation sites. SJVN is implementing 10 projects in Himachal Pradesh, Uttrakhand, Nepal & Bhutan.

The foundation will extend support for a period of upto 5 years. The annual cost for each vehicle for first year will be around Rs 35 lakh and the total cost for running these medical units and organizing medical camps for three years will be around Rs 6 crore.

SJVN considers society development

measures a responsibility rather than an obligation. SJVN has earmarked Rs 15 crore for CSR & sustainable development initiatives in the current financial year, and will focus on education, infrastructural development, environment protection & skill development of youth, women & the differently-abled.

Oil India supports education of underprivileged youthOil India Ltd, in partnership with Centre for Social Responsibility & Leadership will be providing free of cost residential, engineering test preparation coaching facility to underprivileged students of Assam & Arunachal Pradesh, over the years 2013-14 & 2014-15. 90 students shall be provided this facility at Guwahati, Jorhat & Dibrugarh centres in Assam.

This initiative goes back to 2010 when Oil India started it from one centre at Guwahati, and fuelled by its success, extended the program to Jorhat in 2011 and is supporting the third centre

CSR

D Sarveswar, Additional GM (CSR), SJVN (second from right) & Madhu Madan, Coun-try Head, HelpAge India exchanging the MoU in the presence of SJVN management team

PSE Newsletter 11

Appointments

at Dibrugarh from this year.

This initiative has resulted in 73 students gaining admission in engineering education at IITs, NITs, ISRO, IIITs& Assam Engineering College, among other colleges.

ONGC supports education in local community in SudanAs part of community development initiatives at its project sites, ONGC has donated school furniture to the El-hara primary school in Khartoum, Sudan. Students, their parents, the school staff, members from the school neighbourhood and local ONGC employees attended the ceremony that marked this initiative.

Speaking on the occasion, Dr Bhandari, Country Manager, ONGC Videsh said that the company invests part of its revenue earned to enhance education, sports, healthcare etc in the local community. The El-hara primary school is located in a remote, underprivileged area of Khartoum. Mr Adam Idris, Chairman Salvation Committee who also attended the ceremony acknowledged the continuous ONGC efforts that help communities build their own capacities.

Awards

Engineers India receives award for R&D, technology development and innovation Engineers India Ltd has received an award for best practices in R&D, technology development and innovation during the year 2011-

12. The award was given away by the Hon’ble President of India to Mr AK Purwaha, CMD, EIL, at a ceremony in Vigyan Bhawan, New Delhi on April 26, 2013.

Also present on the occasion were Mr Praful Patel, Union Minister of Heavy Industries &Public Enterprises and Mr C S Verma, Chairman, SAIL & CMD, NMDC. Appointments

Anoop Mittal takes charge as CMD, National Buildings Construction Corp LtdMr Anoop Mittal has taken charge as Chairman & Managing Director, NBCC with effect from April 1, 2013. As CMD, Mr Mittal will be responsible for policy and strategic decision making of NBCC. Previously he was Director, Projects with NBCC, since Dec 2011.

Mr Mittal started his career with NBCC in 1985. Mr Mittal has been instrumental in project planning & construction

of structures ranging from institutional buildings to metro stations, mass housing, hospitals & medical colleges, environmental projects like sewerage treatment plant, solid waste management projects, para military complexes, to name a few. He became Dy General Manager, Engineering in 1999 and was elevated to the position of Executive Director with NBCC in 2010.

Mr Mittal holds a Bachelor’s in Civil Engineering from Thapar Institute of Engineering & Technology, Punjab, graduating in 1982.

A K Debnath takes charge as Chairman & Managing Director, Central Mine Planning & Design Institute Ltd Mr Amal Debnath has taken charge as Chairman & Managing Director, Central Mine Planning & Design Institute, CMPDIL.

CMPDIL is a wholly owned subsidiary of Coal India, and provides services related to exploration, planning & design,

(L to R) Pranab Mukherjee, Hon’ble President of India; Praful Patel, Hon’ble Minister of Heavy Industries & Public Enterprises; AK Purwaha, CMD, EIL; CS Verma, Chairman SAIL & CMD NMDC

Appointments

coal production preparation, environmental impact, research & development in coal sector to companies both in India & abroad. The institute is also undertaking exploration of coal bed methane reserves.

Mr Debnath has been credited with planning the Kusmunda mine of Coal India, which is one of the largest mines in India. Mr Debnath holds a B Tech in Mining Engineering from Indian School of Mines, Dhanbad, graduating in 1976.

Ajay Deshpande takes charge as Director Technical, Engineers India Ltd.

Mr Ajay Deshpande has taken charge as Director - Technical, and a member of the Board of Directors, Engineers India Ltd, EIL. Previously, he was Executive Director - Technical, EIL, since 2011.

Mr Deshpande started his career with EIL in 1979, and has worked in Process Design & Development, Project Management and R&D across Oil & Gas, Refining & Petrochemicals

sectors. He has lead innovations such as technology initiative in coal-to-liquid conversion, and EIL’s initiatives in the upstream exploration sector. He has co-authored 4 patent applications on behalf of EIL and has spearheaded commercialization of several technologies developed at EIL.

Mr Deshpande holds a B Tech in Chemical Engineering from Nagpur University, graduating in 1979 with a gold medal; and an M Tech in Systems & Management from IIT, Delhi again topping his class.

B L Saboo takes charge as Director Finance, Uranium Corporation of India

Mr B L Saboo has taken charge as Director Finance, Uranium Corporation of India Ltd, with effect from Mar 18, 2013.

Previously, Mr Saboo was Chief of Finance for over eight years with NHDC, Narmada Hydroelectric Development Corporation, which is a joint venture of NHPC & the Government of Madhya Pradesh. Prior to that he has served in various capacities in the Finance & Accounts department of Tehri Hydro

Power complex, THDC, at Rishikesh, Uttar Pradesh.

Mr Saboo started his career with SAIL at its Bokaro plant.

S K Barua takes charge as Director Finance, Numaligarh Refinery

Mr S K Barua has taken charge as Director Finance, Numaligarh Refinery Ltd, with effect from May 1, 2013. Previously, Mr Barua was General Manager, Finance with Numaligarh Refinery.

Mr Barua joined the company in 1993, when NRL was set-up, as its first permanent employee. He has been instrumental in setting up a refinery from its conceptualization to implementation, commissioning and operations thereafter. He has also been involved in conceptualization, feasibility report preparation and development of the Assam gas cracker project, which is scheduled for commissioning in Dec 2013.

Mr Barua started his career with Indian Oil Corporation in 1985, at its Assam Oil division. He holds degrees in Cost & Management Accountancy and in Law.

For comments/suggestions, please write to Nita Karmakar, Director, CII at nita.karmakar@cii.in

Disclaimer: This document is being shared for information purposes only and is therefore not intended to substitute for formal profes-sional advice. All information in this document has been compiled and/ or arrived at from various sources available in the public domain.

Published by Confederation of Indian Industry (CII)The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA)

Tel: +91-11-24629994-7 Fax: +91-11-24626149 Email: info@cii.in Web: www.cii.in