Kamal Nath announces Rs. 50 crore for development of roads connecting places of tourist importance
New Delhi, Source : PIB

In a bid to improve road connectivity to places of tourist interest, the Minister for Road Transport and Highways Shri Kamal Nath has assured to provide Rs. 50 crore for development of such roads to state governments under the Central Road Fund.

Speaking at the “Emerging for Future” an annual conference organized by the World Travel & Tourism Council, Shri Nath assured full support to any such initiative of the state governments. He said that the states should prioritize and send their proposals to the Ministry, which will provide all its support. As per the CRF Rules, 2007, the central government provides funds to state government for development of state roads. Under this, there is provision for development of connecting roads to national highways from places of tourist importance.

Talking about the multiplier effect of tourism he said that tourism creates economic activity and youth should partake in this. The Minister also said that his ministry is working with the ministry of tourism on a pilot project to provide seamless travel on the golden triangle tourist circuit (Jaipur-Delhi-Agra) from 1st December 2009, and also developing wayside amenities on PPP basis along the national highways. The Minister also suggested a Cabinet Committee on Tourism to resolve Inter- Ministerial issues affecting the tourism sector.

SAIL steels spot in global league with record
profit run

The global economic slowdown has brought the best from state-owned steel maker SAIL as the company has become the most profitable steel company globally beating steel biggies such as ArcelorMittal, Posco, Bao Steel, Nippon in the half yearly profits.

The company has reported net profit of $571 million in the January-June period of 2009 bucking the trend where most global steel companies have made losses. Only Korean steel maker has come closer to match SAIL reporting a net profit of $565 million in the first half current calendar year.
“SAIL’s performance during the first half of 2009 has been best in the world steel industry because of a series of steps that the company took in response to the economic downturn. Not only did the company improve performance on techno-economic parameters, it lay thrust on value added products and cost efficiency. The efforts have been aided, by consistent growth in domestic steel demand,” SAIL chairman S.K. Roongta said.

Being a zero debt company, SAIL has also been able to reduce its interest cost substantially. It has also rationalised manpower reducing its workforce by 7,500 people in 2008-09 and another 6000-7000 people would reduce in 2009-10. The performance of SAIL mirrors the improved showing given by other domestic steel companies. Steel demand in the country has grown month-month in the current financial year and is projected to grow by 10 percent for the full year. Even World Steel Association (Worldsteel) has forecast that while the global steel consumption this year is set to fall by around 15 percent to 1,019 million tonnes, use of steel in India would grow by about 2 percent.

In terms of profit during the January- June period, Posco is the only international company coming closer to SAIL. ArcelorMittal has reported net loss of $1855 million during the period while Nippon has reported a loss of $1043 million, Severstal a loss of $944 million, US Steel loss of $831 million, Bao Steel a profit of $98 million. Another Indian steel company, Tata Steel has emerged as the third most profitable company during the period, reporting a profit of $458 million. The profitability is only for its domestic operations not including the operations of Corus.

The comparison has been make using the average of dollar rates prevailing during the first half of 2009. “Europe and America may take another couple of years to recover fully after which we may see a rise in demand there. Till that time only Indian and Chinese companies are expected fare well,” said an analyst.

Govt awards seven port projects worth Rs. 18 billion

In a major thrust to expand capacity at important ports in the country, India’s Ministry of Shipping has awarded seven projects worth over Rs. 18 billion, to be developed through the public- private partnership (PPP) route.

Another 19 projects, estimated to cost around Rs. 180 billion, are expected to be awarded on similar PPP basis by early 2010. These 26 projects together will expand capacity at the major ports in the country by 42 percent, or 245.97 million tonnes per annum. The ministry intends to double capacity at major and non-major ports in the country to 1,590mt by 2012 from the present 795 mt.

Rakesh Srivastav, joint secretary (ports), said: “We have floated RFQs for all the projects to be developed through PPP this fiscal. We are hopeful that the bidding process for most of the projects will be completed by early next year.” Of the seven projects awarded, those for the construction of deep draft iron ore berth (Rs. 5.91 billion) and deep draft coal berth (Rs. 4.79 billion) at Paradip port have been entrusted to a consortium of the Noble Group, MMTC and Gammon Infrastructure and Essar Shipping Logistics, respectively. Others include setting up of mechanised iron ore handling facilities at berth 14 at New Mangalore port, development of berth 7 for handling bulk cargo at Mormugao port and mechanization of berth 2 and 8 at Haldia Dock Complex.