Microsec : NEWS
RAJESH DESAI
INFRASTRUCTURE
Unity Infraprojects hopes to expand presence overseas
· To ensure a better rate of return and higher margins, Unity Infraprojects is looking to generate up to 25 per cent of its targeted Rs 5,000-crore revenue by 2014-15 from overseas markets. The company is intend to go to countries such as Sri Lanka, South Africa and the Gulf nations, including Saudi Arabia, with company’s areas of strength in real estate and road construction. The company is sitting on a Rs 4,772-crore order book, including Rs 3,200 crore bagged in 2011-12.
Source: Business Line
NTPC to cross generation target in current plan, says CMD
· The utility major National Thermal Power Corporation Limited (NTPC) has expressed confidence to cross its power generation target during the 12th five year plan.The company is confident to produce about 13,000MW of additional power during the current plan period as against the target of 11500 MW. The company has to overcome some tough challenges in the way of ramping up power generation. NTPC needs around 140 to 150 Million tonne of coal per annum to feed its power plants while CIL provides about 120 MT. The shortfall is met by import and by other means like procuring coal through e-auction.
· Company is optimistic to achieve this because several projects are in execution stage at nine locations in the country which will go on stream during the current plan. Gone are days when we depended on Bharat Heavy Electrical Limited (BHEL) only for equipments. There would be an investment of Rs 20,000 crore in the state of Odisha for the two mega new power projects in Darlipalli and Gajmara besides expansion of Talcher Thermal Power Station.
Source: Business Standard
Coal India fuel pacts mean subsidy to private cos: TCI
· British hedge fund TCI, a minority shareholder in Coal India (CIL), today alleged that directing the coal PSU to sign fuel-supply pacts with power producers would amount to “direct transfer” of $19 billion to the private sector.
· In a presentation made to Coal India board which is likely to meet next week, The Children's Investment Fund (TCI), said “we believe large industrial companies” pushed the Government to “impose new fuel supply agreements (FSAs) on CIL.The Government on April 3 issued a Presidential directive to CIL to commit a minimum assured fuel supply to the power producers, failing which the company would be subject to paying a penalty
Source: Business Line
Coal stock for just four days at 25 power plants
· As the country braces for a harsh summer ahead, the average coal stock at about 25 thermal power plants has reached a ‘supercritical’ level. These plants have enough supplies for less than four days, against a normal range of 20-30 days.
· According to data from the Central Electricity Authority, the stock at 30 plants, with a total capacity of about 26,320 Mw, is at a critical level (would last less than seven days). Of these, 25 plants, with a capacity of over 21,000 Mw, have stocks at ‘supercritical’ levels. Four plants have virtually no stock.
· The power industry has been facing inadequate coal supply for some time, thanks to a supply-demand mismatch. The production at Coal India is unable to match the increasing requirement of the industry. The demand for coal has grown 8.4 per cent a year over the past five years. Supply has, however, fallen grossly short, registering a dismal annual growth of 5.4 per cent during the same period. For 2012-13, while coal demand is estimated at 696 mt, 554 mt is likely to be available, leaving a gap of 142 mt to be met through imports.
Source: Business Standard
CEMENT
Cement sales up 6% in March on Govt infra investment
Cement sales improved by 6 per cent to 17.97 million tonnes (mt) in March against 16.93 mt in the same period last year. Production was up 5 per cent at 17.91 mt (17.03 mt.
In the past financial year, cement companies sales were up 7 per cent to 179 mt (168 mt). Production rose 6 per cent at 180 mt (169 mt) in the fiscal.
The all-India sales number will increase by 4.52 mt in March if the performance of Holcim group companies, ACC and Ambuja Cement, are included. They produced 4.49 mt in March.
Cement demand across the country was down in the first three quarters of the last fiscal due to poor demand from infrastructure and real-estate companies. High borrowing cost and slowdown in the economy had brought down cement demand. However, there was a turnaround in demand since January with the Union Government reviving its investment in infrastructure development.
In March, the average cement price was Rs 300 a bag, an increase of Rs 5-8 a bag. This was due to rise in excise duty in the Budget. The next few quarters will be crucial for the positive trend in the industry to continue.
|
Cement Round -Up |
|||||
|
|
Mar-12 |
Feb-12 |
Mar-12 |
FY12 |
FY11 |
|
Cement Output |
17.91 |
16.27 |
17.03 |
179.79 |
169.21 |
|
Cement sales |
17.97 |
16.35 |
16.93 |
178.9 |
168.06 |
|
in million tonnes |
|||||
BANKING
Life insurance sector declines marginally in 2011-12
The life insurance industry has declined only marginally in 2011-12 compared to the year-ago period. The overall business during last financial year may decline only by about one per cent. The first-year premium, however, has declined by about 14 per cent. About 75 per cent of the income of companies comes from renewal premiums and group sales. In 2010-11, the total premium collected by the life insurance industry was Rs 2,86,500 crore as against Rs 2,65,450 crore in the previous year.
LIC can adhere to 10% stake norm at ‘its own pace
The Life Insurance Corporation of India need not rush to bring down its current stake in various companies to below 10 per cent. IRDA advise LIC to bring down the stake to below 10 per cent in a company. But, it doesn't want to put any timeframe for this. LIC can do so at its own pace.
As per the current norms of the regulator, no insurance company is allowed to have more than 10 per cent stake in a company. The regulator did not want to pressure LIC to adhere to existing norms by bringing down its stake in various companies in view of the likely adverse impact on market/investors. However, the state insurer has over 10 per cent stake in many companies, including State Bank of India, MTNL, ITC and Tata Steel. The issue has come to the fore after LIC had invested Rs 12,000 crore in the auction of ONGC stake by the Government in February.
Apex court gives SEBI 3 months to reconsider MCX-SX plea on equity exchange
The Supreme Court directed SEBI to take a decision within three months on the application of MCX Stock Exchange Ltd (MCX-SX) to start an equity exchange. The apex court also said the capital market regulator should amend the regulations concerned before considering the MCX-SX's application. MCX-SX currently deals only with currency derivatives. The regulations that will be amended are known as MIMPS regulations or the ‘Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges Regulations, 2006. The amendments will relate to the legality of buyback agreements and whether commonality of objective is required to be proved when a person is deemed to be a ‘person acting in concert' for the purpose of MIMPS regulations.
The SEBI had filed a Special Leave Petition before the Supreme Court against the Bombay High Court order in the MCX-SX case. The High Court had set aside the SEBI order, which did not grant permission for MCX-SX to start an equity exchange. The SEBI had dismissed MCX-SX's application saying it was not in “the interest of the trade and the public to allow its plea.” The High Court, last month, wanted SEBI to consider MCX-SX's application afresh within a month. However, SEBI said this time period was not enough.
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
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CA. Rajesh Desai