Fifth KG Basin well has 1,700 bcf volume, co informs government

New Delhi, March 30: Reliance Industries Ltd has informed the government of its fourth gas discovery - Dhirubhai-4 - with in-place gas volumes of 1,700 billion standard cubic feet (bcf). The Dhirubhai-4 (D-4) discovery falls within the KG-DWN-98-3 (KG-D6) block awarded to Reliance under the first round of the new exploration licensing policy.

Surface samples of gas collected during the tests show that the gas is dry and sweet and is mostly methane (99.7 per cent methane content), with carbon dioxide (CO2) content of 0.07 per cent.

Earlier, Reliance had notified the government of its three discoveries - Dhirubhai-1, Dhirubhai-2 and Dhirubhai-3 - with estimated gas reserves of 7-8 trillion cubic feet. All the four gas discoveries lie in the same block - KG-DWN-98/3 - of the Godavari region. The D-4 discovery in block KG-DWN-98/3 is the third biggest discovery in the KG Basin by Reliance.

Reliance has informed the government that the drilling of exploratory well F1 of Dhirubhai-4 discovery in KG-D6 block was taken up with deep water rig - Discover 534 of M/s TSF during September-December 2002.

This is the fifth exploratory well drilled in this block and its falls at a water depth of 1,760 meter in the KG Basin, the maximum so far for any well drilled in the country.

RIL, as the operator of the block, had conducted two drill stem tests in the F1 well. While the first such test was concluded with no flow, the second was concluded successfully with gas flow of 41.338mmscfd through 60/64" choke size, although the test rates were constrained due to size of the tubing and surface piping.

The KG-DWN-98/3 block was awarded to Reliance and Niko Resources Calgary under Nelp-I which constitutes an area of 7,648sqkm in the water depth range of 400-300 metre. The production sharing contract was signed between the Centre, RIL and Niko Resources in 2000. Reliance is the operator of the KG-DWN-98/3 block and holds 90 per cent of the participating interest with Niko holding the remaining 10 per cent.

Courtesy: www.financialexpress.com, March 31, 2003

New Delhi, March 28. Oil and Natural Gas Corporation will set up a specialised trading desk in India to market crude oil received from investments in oil fields abroad and surplus petroleum products from subsidiary Mangalore Refinery Petrochemicals Ltd.

"We are talking to a few consultants in the field for setting up a specialised crude marketing and trading desk," a company official said.

ONGC wants to optimise export of surplus products like jet fuel, gas oil and fuel oil from MRPL, which till now are being done through tenders that give little margins.

Besides managing risk and hedging volatilities in the international oil market, the desk would also help the firm locate buyers for its 3 million tonne per annum crude oil it would receive from a Sudan oil field, officials said.

Besides Sudan, the company, beginning next year, is likely to get crude oil from investments it has made in many other countries. The desk will help market that crude, they said.

The state-owned company was courting Daryl Pettison, the connoisseur who helped Reliance Petroleum Ltd set up a trading desk for its crude oil procurement and export of surplus product, but talks have not fructified into a partnership due to the stiff fee charged by the Australian.

"No decision has yet been taken," the source said.

Till such time, ONGC has retained services of Trafigura of London to trade its share of 60,000 barrels per day of crude oil from the Greater Nile Oil Project in Sudan.

"We are exploring if the Sudan crude can be brought to India. Meanwhile, Trafigura will trade for us for the next three months," the source said.

ONGC, through its wholly owned subsidiary ONGC Videsh Ltd has acquired Canadian Talisman Energy's 25 per cent stake in GNOP.

While the company explores customers in India for Nile Blend crude produced from GNOP, which has higher viscosity that the crude domestic refineries are configured to process, Trafigura would help it sell its share in spot market, officials said, adding at present, Talisman works through Trafigura in London, whose job is to identify the consumer and fix shipping fixtures for transportation.

Nile Blend Crude, produced from GNOP, is currently being sold to customers in Far East and Mediterranean on Cost Insurance Freight (CIF) basis.

OVL has set up a subsidiary, ONGC Nile Ganga, to manage GNOP operations, they said.

ONGC, which has already put in place a team led by AK Mehra to take over Talisman Energy's operations, is exploring shipping the light crude oil produced from the Sudan field for processing at its latest acquisition MRPL.

"For an initial period of three-four months, the existing contracts would be honoured to sell India's share of crude. By then MRPL would be configured to process Sudan crude," the source said.

Courtesy: www.hindustantimes.com, March 29, 2003.

Johannesburg, March 28. Auto-rickshaws, or three-wheelers that are the most common form of transport for millions in India, may soon be a familiar sight in South Africa if efforts by Piaggio Vehicles succeed.

Piaggio managing director, Ravi Chopra told IANS that he was meeting a number of South African players in a bid to convince them of the value of the three-wheeler as a cost-effective transport means for both passengers and goods.

"In India three-wheelers are a very major means of transportation, especially for the poor man in terms of passengers, but also as a very cost-effective solution in terms of transport of cargo and material," Chopra said.

"As a company, Piaggio has about 50 per cent of the Indian market, and also exports to 15 destinations around the world, with South Africa being a potential market that we have identified."

"We are seeing if we can create a distribution arrangement in South Africa for providing them with the same transport solutions."

Chopra said the success of the three-wheelers was built on the ability of his company to offer customized solutions to importers of the vehicles.

"If you want to transport cooking gas cylinders, we give you solutions; if you want to have ice-cream on wheels, we give you the solution; likewise for mobile shops or anything else."

"We provide the vehicles which can take the product from the warehouse to the retail outlets." "Unfortunately, nobody has yet made a breakthrough in South Africa, because nobody has visualized that the potential is high, although there is no three-wheeler (in this market)."

"We intend to explore the possibility of understanding what are the rules and regulations in this country, so that we are able to abide by those rules, and bring in the vehicles."

Chopra said once a distribution channel had been set up in South Africa, local production could also be considered. He said there had been a positive approach to the idea from people he had met here.

"We had an excellent meeting with Wiseman Nkulu, economic adviser to President Thabo Mbeki, through whom we got to understand the priorities and the economic focus of South Africa in terms of building up the infrastructure."

"The consequence of developing such infrastructure is more and better roads and communications, automatically leading to more need for transportation of cargo and cost-effective solutions, and this is what we are going to provide."

Chopra said members of the National African Federation Chambers of Commerce had shown a lot of interest.

"I'm upbeat. In fact, I'm coming here again next month to attend the Commonwealth Business Council and the Pan-African summit on April 7, where I am going to be a speaker and promote the possibility of using the three-wheelers as a cost-effective means of transportation of men and material."

Chopra said Piaggio was already exporting to Nigeria, Kenya and Uganda. "We have just executed an order for 2,500 vehicles in Nigeria. They got a lot of World Bank aid. Now if we want to eradicate unemployment, if you want to alleviate the level of poverty, just like we have in India, these vehicles become a good source, because they come at low cost, they can be financed, and they create an opportunity for earning."

Courtesy: www.hindustantimes.com, March 28, 2003

Bangalore: Tata Group's product design arm Tata Elxsi Limited has bagged orders to create animation for a Hollywood movie and three animated content series for American television channels.

The Media Works division of the Bangalore-based Tata Elxsi, created a year ago, has bagged the four orders with a delivery schedule of up to 18 months.

"These orders are long term and would strengthen our presence as a quality animation provider in the US market," Tata Elxsi general manager and head of Media Works K Chandrashekhar said.

The project details were not revealed citing non-disclosure agreements with the customers. The Rs 132 crore company also works on Bollywood projects, besides commercials with advertising agencies.

The revenue from the division with the Hollywood and Bollywood projects is estimated to touch $ five million in 18 months, Chandrashekhar said. He said Tata Elxsi was working on the first fully digitalised post production Bollywood movie.

Courtesy: PTI, March 19 2003

Industrial output grew 6.4 per cent in January 2003, up from 3.8 per cent in January 2002. The average industrial growth in the first 10 months of the current financial year is 5.5 per cent, against 2.6 per cent in April-January 2001-02.

Manufacturing recorded 5.8 per cent growth, against 2.8 per cent in the corresponding period in 2001-02. Mining grew 5.4 per cent, against 1 per cent in 2001-02. The January growth was driven by manufacturing, which grew 6.9 per cent in January 2003, up from 4.1 per cent in January 2002. Electricity generation grew 4 per cent, same as last year, while mining was up to 2.7 per cent from 2.3 per cent in January 2002. The manufacturing sector, on the whole seemed to have done better than previously thought.

The growth rate for capital goods continues to be high with 11.6 per cent growth in January 2003, against a 4.6 per cent fall in January 2002. Basic goods grew at 4.8 per cent, against 4.2 per cent in January 2002, while intermediate goods recorded a turnaround with 7.3 per cent growth, up from 2.5 per cent in January 2002. Intermediate goods have recorded the highest year-on-year growth in this fiscal in January.

In the consumer goods segment, after seven months of year-on-year decline in production, the consumer durables category recorded 0.5 per cent growth in January 2003. The growth in the consumer durables category was 7.2 per cent, as against 4.9 per cent in January 2002.

Courtesy: www.business-standard.com, March 13, 2003

Industrial output grew 6.4 per cent in January 2003, up from 3.8 per cent in January 2002. The average industrial growth in the first 10 months of the current financial year is 5.5 per cent, against 2.6 per cent in April-January 2001-02.

Manufacturing recorded 5.8 per cent growth, against 2.8 per cent in the corresponding period in 2001-02. Mining grew 5.4 per cent, against 1 per cent in 2001-02. The January growth was driven by manufacturing, which grew 6.9 per cent in January 2003, up from 4.1 per cent in January 2002. Electricity generation grew 4 per cent, same as last year, while mining was up to 2.7 per cent from 2.3 per cent in January 2002. The manufacturing sector, on the whole seemed to have done better than previously thought.

The growth rate for capital goods continues to be high with 11.6 per cent growth in January 2003, against a 4.6 per cent fall in January 2002. Basic goods grew at 4.8 per cent, against 4.2 per cent in January 2002, while intermediate goods recorded a turnaround with 7.3 per cent growth, up from 2.5 per cent in January 2002. Intermediate goods have recorded the highest year-on-year growth in this fiscal in January.

In the consumer goods segment, after seven months of year-on-year decline in production, the consumer durables category recorded 0.5 per cent growth in January 2003. The growth in the consumer durables category was 7.2 per cent, as against 4.9 per cent in January 2002.

Courtesy: www.business-standard.com, March 13, 2003

NEW DELHI: Steel manufacturers have never had it so good. The capacity utilisation of steel plants is touching almost 100% due to a jump in exports by over 33% compared to the previous year.

All steel companies like Tisco, Essar and Ispat are showing an exceptionally high utilisation of capacities due to an increase in demand for hot rolled coils and cold rolled coils, primarily from markets like China, South-East Asia and Central Asia. Jitender Mehra, resident director, Essar Group said, "Essar has achieved a 101% capacity utilisation since October. This is primarily due to a jump in steel exports to China, South-East Asia and central Asia."

Ispat officials also confirmed that its steel plant has achieved more than 95% capacity utilisation due to an upsurge in steel exports. Other steel producers have also hiked steel production to meet a major upsurge in exports. Analysts felt that while exports to the US expected to stabilise around current levels, buoyancy in exports to China is likely to continue. Senior Tata Steel officials said, "Indian steel exports to China have definitely increased in the last one year and the outlook for exports to China is good."

Analysts said China has emerged as the most important market for steel. The domestic consumption of steel in China is growing at the rate of around 20% per annum, making it one of the most lucrative markets in the world. They said although steel exports from India to China stand at 2,00,000 tonnes, it is turning out to be a key export market for India. Indian companies, like the Steel Authority of India, Essar Steel are looking at China in a big way to expand their exports.

Analysts feel that China is turning out to be a major market for Indian steel exports as India is at a good location to serve growing markets for steel in the far east.

Courtesy: Times News Network, March 08, 2003

Revenues in entertainment industry rose 27.69 per cent in 2002 to Rs 16,600 crore, according to a status report prepared by consulting firm KPMG.

Income from television accounted for over 60 per cent of the entertainment industry's revenues, touching Rs 11,100 crore against Rs 9,400 crore in 2001, according to a report in business newspaper.

The entertainment industry includes film, TV, music and radio. Cable TV subscription revenue has totalled Rs 6,000 crore in 2002 while advertising income stood at Rs 3,900 crore. Besides, industry has also earned from export of TV software.

The number of cable and satellite households has grown to 41 million in 2002, up from 37 million the year before.

WASHINGTON: Despite American concern over trading with India due to heightened tensions in the subcontinent, merchandise exports from India to the US has risen by 21.4 per cent in 2002 to $11.82 billion, the highest in past decade, the US Commerce department said.

"This strong performance reflects the highest annual percentage growth in Indian exports to US over the past decade," an Indian embassy release said.

"It is particularly noteworthy as it has occurred against a backdrop of lackluster growth in worldwide exports to USA in 2002, and despite concerns over trading with India due to heightened tensions in the subcontinent and travel advisories against visiting India that were briefly in place during mid 2002," it said.

India has emerged as the 19th largest merchandise exporter to USA in 2002 (up from 22nd position in 2001) with a 1.02 per cent share of total US imports (up from a 0.86 per cent share in 2001).

"Year 2002 marks the first year that India has entered the list of top 20 countries exporting to USA; it is also the first time that India's exports to USA have exceeded one per cent of US merchandise imports," the Commerce Department said.

"It also marks the first time in recent years that the rate of growth of Indian merchandise exports to USA (21.4%) has outpaced the rate of growth in our India's services exports to USA (20%).

Growth has been more or less across the board for major Indian export. Nine of the top ten items that India exports to USA witnessed growth, the release said.

India is now the number one exporter to USA of small and medium-sized diamonds ($2.6 billion), knotted and woven carpets ($384 million), linen ($366 million), large/medium sized frozen shrimp with shell-on ($220 million), cashewnuts ($213 million), antibiotics ($138 million ), woven silk fabrics ($85 million), pepper ($32 million), opium ($31 million, guargum ($23 million), psyllium seed husk ($22 million), woven jute fabrics ($14 million), and niger seed ($10 million).

During 2002, worldwide merchandise exports from USA dipped by -4.9% compared to 2001, declining to 21 of the top 30 US export destinations. It grew to only nine amongst them, including to India.

Growth in the US exports to India was 9.1 per cent and is particularly commendable when viewed against the backdrop of a -4.9% decline in overall US exports.

Courtesy: PTI, March 05, 2003

NEW DELHI: Data Access (Lanka), promoted by Data Access India, today announced it has entered into international long distance arena in Sri Lanka by bagging the external gateway operator licence there.

With this, Data Access became the first Indian telecom company to enter Sri Lanka to usher the end of monopoly of the incumbent carrier Sri Lanka Telecom, in this sector.

Commenting on the development, Siddhartha Ray, managing director of Data Access (India), said "We are gald to be the very first licensee of Sri Lanka's long distance telephony privatisation. Data Access is committed to participate in the new emerging markets of international carrier opportunity and the Sri Lankan licence is a very important milestone for us."

He said the company expected to tap 400 million minutes a year voice traffic market in Sri Lanka, which the company hopes would grow substantially due to the expected drop in rates arising out of privatisation of the sector.

Courtesy: PTI, March 04, 2003

NEW DELHI: Buoyed by the Rs 50,434 crore of additional investments pumped into the 240 Central public sector enterprises in the year ending 2001-02, the PSUs have registered a cumulative 66 per cent growth in net profits to Rs 26,045 crore during the period though with a marginal decline in dividend payment, says a survey.

Net profit in these enterprises has increased to Rs 26,045 crore in 2001-02 from Rs 15,653 crore in 2000-01, says the Public Enterprises Survey tabled in Parliament on Monday.

It says the investments in 240 Central public sector enterprises (including 10 under construction) have gone up from Rs 2,74,198 crore in 2000-01 to Rs 3,24,632 crore in 2001-02, an increase of 18.39 per cent. The Central public sector enterprises have declared a dividend of Rs 8,067 crore in 2001-02 as against Rs 8,260 crore during 2000-01, a decline of 2.34 per cent. The dividend payout ratio has gone down from 52.77 per cent in 2000-01 to 30.97 per cent in 2001-02, says the survey.

The public sector also posted growth in turnover which rose by Rs 20,491 crore during 2001-02 from Rs 4,58,237 crore to Rs 4,78,728 crore, the survey said. Capital employed of public sector enterprises also went up by 17.76 per cent from Rs 3,31,410 crore in 2000-01 to Rs 3,90,261 crore during 2001-02, it said.

Contribution of Central exchequer by way of excise duty, customs duty, corporate tax, interest on central government loans, dividend and other duties and taxes also registered a growth of 2.81 per cent, the survey said. It stood at Rs 62,753 crore in 2001-02 as compared to Rs 61,037 crore recorded the previous year, it said.

Courtesy: PTI, March 03, 2003

New Delhi, Mar. 4 (NNN): The Bharat Sanchar Nigam Ltd. (BSNL) has emerged as the top profit-making PSU.

Among he profit-making PSUs, oil companies appeared to dominate with ONGC, Indian Oil, GAIL and BPCL at the top.

They were followed by the two telecom companies BSNL and MTNL, power giants NTPC and Nuclear Power Corporation and mining majors Northern Coalfields and Neyveli Lignite Corporation, which together contributed Rs 25,540 crore net profit in 2001-02, according to the Public Enterprises Survey.

The survey shows that a year after its corporatisation, BSNL emerged as the most profitable company with Rs 6,312 crore net profit in 2001-02 outsmarting other cash rich PSUs like ONGC (Rs 6,198 crore), NTPC (3,540 crore), Indian Oil (Rs 2,885 crore) and Nuclear Power Corporation (Rs 1,549 crore).

MTNL was at the sixth position with Rs 1,301 crore net profits followed by GAIL (Rs 1,186 crore), Northern Coalfields (Rs 900 crore), BPCL (Rs 850 crore) and Neyveli Lignite (Rs 819 crore).

Courtesy: www.indolink.com

NEW DELHI: India registered a record Rs 21,286 crore as Foreign Direct Investment during 2002 despite global economic slowdown, the Economic Survey said on Thursday while stressing the need for toning up FDI policies to compete effectively with countries like China.

India succeeded in presenting itself an attractive investment destination due to strong economic fundamentals and its market size while overcoming natural calamities like the Gujarat earthquake and terrorist strikes including the attack on Parliament, it said.

"The ability of the economy to overcome these shocks and attract record FDI inflows point to the increasing attractiveness of India's country-specific attributes in securing FDI... (however) other countries are likely to improve policies and institutions in the years to come in order to further increase their FDI inflows".

"Finally, the year 2001 saw the Indian economy grappling with exogenous shocks like the Gujarat earthquake and the terrorist attack on Parliament apart from the calamitous developments of September 11," it said.

The growth trend continued in 2002 with actual FDI inflows up by about 10 per cent to Rs 21,286 crore. However, FDI proposals approved last year declined to less than half to Rs 11,140 crore from Rs 26,875 crore in 2001 with the survey attributing this decline to most FDI activities having been put on the automatic route.

Courtesy: PTI , February 27, 2003

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