Government Policies with reference to Cairns India, Vedanta Mining Project & Posco<br />
Vedanta Resources plc. <br />London listed ; Metals, Mining & <br /> Power generation major. <br />Produces aluminium, copper, zinc, lead, <br /> iron ore and commercial energy.<br />CEO,Chairman : Mr. Anil Aggarwal, ranked 10th on annual Sunday Times Rich List of the wealthiest people in UK.<br />Operating in India through its subsidiary – Sterlite Industries Ltd.<br />
Nation’s largest onshore oilfield; Barmar, Rajasthan.</li></li></ul><li> Transaction Highlights<br />Vedanta Group to acquire upto 60% stake in Cairn India .<br />For an aggregate consideration of US$9.6 billion in cash.<br />India’s state-run fuel companies like GAIL & ONGC may make a counterbid for oil assets of Cairn India, which mining group Vedanta is seeking to buy.<br />
Obstacles to deal <br />Vedanta's "inexperience" in the oil & gas business a major disqualification.<br />Need approvals for some of the blocks related to the New Exploration Licensing Policy.<br />Speculations about counter offer by ONGC.<br />
The Orissa Issue<br />Vedanta’s subsidiary Sterlite India has joint venture with Orissa Mining Corporation to mine Niyamgiri Hills for bauxite.<br />Government rejected environment clearance to $1.7-billion bauxite mining project in Orissa.<br />Reasons : <br /><ul><li>Serious violation of Environment Protection Act, Forest Conservation Act and the Forest Rights Act.
Age old access & rights of Dongaria & KutiaKondh Tribes violated. </li></ul> (cont)<br />
Forest Advisory Committee recommended action against Vedanta Alumina Refinery, Lanjigarh, Niyamgiri Hills, Orissa.<br />Reasons : <br /><ul><li>Violating environment laws.
Illegally encroaching 26 hectare of forest land.
Capacity increased from 1mn tonne to 6 mntonne without requisite clearance.
Currently sourcing bauxite from 14 mines; 11 non environmentaly cleared i.e illegal mines.</li></li></ul><li>POSCO<br />South Korean steel giant.<br />12 million tonne integrated plant to be set up at Jagatsinghpur, single biggest FDI venture.<br />54,000-crore integrated plant in Orissa may get the environment ministry’s clearance by September.<br />June 2005 ( Posco signed the MoU) for the state government to hand over the land.<br />
The Supreme Court gave its nod for Stage I clearance in 2008 and the MoEF put the final seal of approval in December, 2009. But now a central committee says law has been violated. <br />The Posco case mainly involves relatively minor violations of the Forest Rights Act and settlement of claims. The claims of only about 200 Dalit and tribal families need to be settled.<br />
Conclusion<br />India has been target destination because of cheap labor, big markets & lax environment rules.<br />Underlying all this is a realisation in India that enforcing environmental rules does not have to hurt growth, can boost the idea of a rule of law and make government policies transparent.<br />Govt. at centre will not allow industry to trample on citizen’s rights in name of development- clear from Rahul Gandhi’s visit. <br />
Indian Oil, Oil India in talks to buy into Essar’s Myanmar Gas block.<br />STATE-OWNED oil companies Indian Oil and Oil India are in talks with the Essar group to pick up 20% stake each in a gas block in Myanmar that is estimated to have even bigger reserves than Reliance Industries’ KG-D6 fields.<br />Both IOC and OIL are considering Essar’s farm-in proposals for A2-shallow water gas block and an onshore block L in Myanmar.<br />Another of Essar’s gas asset in Myanmar (Block L) has an estimated recoverable hydrocarbon reserve of 330 million barrels of oil equivalent (MMBOE). <br /> cont.<br />
Essar had submitted a commercial proposal to OIL and IOC in December last year. According to preliminary reports of the visiting technical team, the two companies are positive about prospects of the gas asset.<br /><ul><li> Mahindra’s Ssangyong buy to help co emerge as global player in SUV market </li></ul> MAHINDRA & Mahindra, India’s largest sports utility vehicle (SUV) maker, said on Monday its acquisition of South Korean company Ssangyong Motor would help it emerge as a global force in the SUV market<br />
M&M vice-chairman and managing director Anand Mahindra said that Korea is one of the world’s leading centres of automotive excellence .<br />Ssangyong brings with it a rich legacy of R&D and innovation...The synergies between both the brands, which share a similar heritage, will make us a combined force to reckon with in the global SUV space.<br />PawanGoenka, the company’s president, automotive and farm sectorsiad that ”M&M’s focus on alternative fuels and electric vehicles will further strengthen Ssangyong’s brand value and will take it to new geographies.<br />
ICICI Pru Life launches online term plan <br />PRIVATE life insurer ICICI Prudential Life has introduced iProtect — a pure term insurance plan that can be purchased online.<br />An individual can apply online for iProtect and the payment can be made either through his/ her internet banking account or credit card.<br />Coverage will begin only after the medical tests are done.<br />
The minimum entry age is 20 years, while the maximum is 65 years, with a minimum policy term of 10 years and a maximum of 30 years. <br /><ul><li>DWS Investments offers hybrid fixed maturity plan .
DWS Investments, the retail mutual fund arm of the Deutsche Bank Group, has announced DWS Hybrid Fixed-Term Fund Series 1 — a closed-ended hybrid fund with a tenure of three years.
Objective of the scheme is to generate income by investing in fixed income securities maturing on or before the date of the maturity of the scheme. </li></li></ul><li>The fund will be benchmarked against the Crisil MIP Blended Fund Index.<br />Targeted at investors with a medium-term horizon, the scheme will invest in a combination of debt and equity instruments.<br />The new fund offer (NFO) opened for subscription on August 23 and will close on September 6. <br />