Wednesday, June 4, 2008
పోర్టుభూముల కేటాయింపుపై ఆందోళన
Realty prices crash in Visakhapatnam
Visakhapatnam, June 2: Real estate agents suffered a rude shock after the Telangana byelection results were announced on Sunday evening in which the TRS suffered a serious setback.
Several agencies including from those outside the city made huge investments on the outskirts of the city hoping the prices would rocket once the process of separate Telangana takes a shape.
They took the gamble after the TRS quit the Assembly en masse.
The prices of land went up in Rushikonda, Kapulauppada, Madhuravada, Tim-mapuram, Bheemili from a mere Rs 50 lakh an acre to Rs 5 crore during the last two years.
This apart, the Visakhapatnam Urban Development Authority (Vuda) auctioned its prime land in these areas fetching more than Rs 1,000 crore during the last six months. All the bidders for
these lands were from Hyderabad and Mumbai. Some of those who invested in the Madhuravada, Timmapuram and Kapulauppada planned for mega housing schemes hoping to fetch a prime price in next two years.
A senior real estate agent said the present prices of apartments being quoted at Rs 2,000 for
square feet in Madhuravada, Rs 3,500 per sft in Seethammadhara, East Point Colony,
Pandurangapuram, Dasapalla layout and Rs 4,000, the highest so far in Facor layout. There was general speculation that the apartment prices would go up in Madhuravada as the city
was choked up with narrow roads.
"There was a hype among the realtors that Kapulauppada, Rushikonda and upto Bheemili along the Beach Road would become Navi Vizag and hoped to get a good price for the development," said another city-based realtor. Now that the dream of separate Telangana crashed, many investors would move to Hyderabad where the prices jumped by Rs 600 per sft on Monday alone.
Another realtor said there could be upward movement after the coastal corridor comes into being along with other mega projects proposed for the city worth more than Rs 1 lakh crore.
Once the project start commissioning, there would be huge demand for the housing and other
infrastructural facilities. "But that would take some time and till then the realtors might not
hold back their investments," a builder said.
Source: Deccan chronicle June 03, 2008
Andhra proposes coastal highway to link petrochemical projects
Mega plan for Industrial Corridor
The proposal has got the nod of the Centre a few days ago. Under this project, a 138 km-long
coastal corridor will be built between Kakinada Port and Gangavaram Port (near Vizag) with six-lane roads and pipeline corridor at a cost of Rs 1,062 crore. In the subsequent phases the link road will be converted into an eight-lane road by spending Rs 875 crore.
As part of the programme, the present Asian Development Bank-sponsored road will be converted as a four-lane road between Kathipudi and Kakinada Port in an extent of 51.07 km. In addition to this, the National Highway 214 will be developed into four-lane road from the present two-lane at a cost of Rs 260 crore. Later, it will be developed into a six-lane road at a cost of Rs 387 crore. As part of the industrial corridor development, the existing NH 5 will be developed into six-lane road for 190 km between Rajahmundry and Visakhapatnam.
In addition to this, the other external road links will be provided with Rs 512 crore. In all,
Rs 4,021 crore will be spent on the road development activity as part of Industrial corridor project. For the development of rail links Rs 1,010 crore will be spend in the corridor. A rail
link of 26 km will be taken up at a cost of Rs 102 crore between APSEZ and Gangavaram. For the provision of rail freight stations and for Gangavaram Port logistics Rs 730 crore will be utilised.
Further, authorities are allocating Rs 2,640 crore for developing airports in the region. This
would include the development of the new Visakhapatnam International Airport with Rs 2,000 crore and the upgradation of Rajahmundry airport at Rs 120 crore. These proposals were discussed at a meet held recently by the Infrastructure Development Corporation of Andhra Pradesh with allied departments.
GMR likely to set up ONGC’s proposed refinery in Kakinada
Investment could exceed original estimate of Rs 31,000 cr The project to be implemented by Kakinada Refinery and Petrochemicals in which ONGC has a 46 per cent stake, Kakinada Sea Port – 51 per cent and State Government – 3 per cent.
ONGC seeks Rs 16,000 crore sops from the State Govt to make project viable.
Hyderabad, May 28 After UK-based Hinduja Group, Reliance Industries (RIL) and Essar Oil, Oil and Natural Gas Corporation’s (ONGC) proposed refinery at Kakinada, has found a new suitor in GMR Group.
According to sources in the Chief Minister’s Office, GMR could emerge as the prime contender for setting up the refinery in the port town.
“Though it is not yet finalised, the refinery’s capacity could be around 20 million-tonnes-per-annum (MMTA) as against the original plan of 15 MMTA. The investment could also be much higher than the original estimate of Rs 31,000 crore,” the sources said. The project to be implemented by Kakinada Refinery and Petrochemicals, where ONGC has a 46 per cent stake, Kakinada Sea Port 51 per cent and the rest of the three per cent with the State Government.
ONGC had in the past maintained that the refinery was not financially feasible unless the Andhra Pradesh Government gave more incentives. It had sought incentives worth Rs 16,000 crore from the State Government over eight years to make the refinery financially viable.
Tax exemptionThe company wanted exemption from sales tax on the sale of petroleum and petrochemical products, free power and water supply during the construction phase, and road and rail connectivity.
Earlier this month representatives from RIL, Hindujas and Essar Oil had discussions with State Government officials for a stake in the Kakinada refinery for the refinery which is being proposed in a special economic zone (SEZ) being developed by ONGC in Kakinada. It is also learnt that GMR officials had 2-3 rounds of discussion with authorities in the State Government.
“The State Government is keen that the project takes off quickly as it will also help in the proposed petroleum, chemical and petrochemical investment region (PCPIR),” the official said.
Originally, a 7.5-million-tonne refinery was envisaged at Kakinada. But Engineers India Ltd did not find the size techno-economically feasible and so the capacity was doubled.The estimated cost of setting up the 15 million-tonne refinery with high complexity configuration was at Rs 25,000 crore.
Besides, Rs 600 crore was needed to build a single-point mooring and the sub-sea pipeline for transportation of crude oil to the project site.
Source: Business LineBOOM Town >>> Rs 50,000 crore to flow into Kakinada
The total investments in the town could go well above Rs 50,000 crore, according to local government officials. Oil and Natural Gas Corporation (ONGC), the country’s largest exploration and production company, is planning to spend close to Rs 26,000 crore to set up a refinery and petrochemical complex in the Kakinada SEZ. It has already acquired 8,000 acres of land for an SEZ, for which it will also be the developer.
The petrochemical plant it plans to set up in the SEZ will receive gas from Reliance Industries’ gigantic D6 block in the Krishna-Godavari basin.“It is around the RIL gas that all of these industries will come up. Kakinada, which got its first and only industry in the form of two fertiliser plants in the early 1990s, will now see this huge spurt in industrial growth,” said a official from the local administration.
The town will also be co-host to a petroleum, chemical and petrochemical investment region (PCPIR) which is projected to attract investments of over Rs 2 lakh crore.
“The proposed investment in PCPIR, running from Visakhapatnam to Kakinada, is only for onshore areas. Similar investments are likely to be made in oil and gas exploration and production work in the offshore area of the Krishna-Godavari basin,” said M Veerabrahmaiah, joint collector and additional district magistrate, Visakhapatnam.
Much of the investments in Kakinada are expected to be made by Reliance itself. According to sources, the company plans to acquire the two existing fertiliser plants in the town.
One plant, operated by Nagarjuna Fertiliser and Chemicals Ltd (NFCL), produces urea while the other, operated by Godavari Fertiliser and Chemicals Ltd (GFCL), produces phosphatic fertilisers. Although an NFCL official at Kakinada said the plant was not up for sale, an RIL official said the company was increasingly inclined towards making an offer for the two plants.
A port, operated by Kakinada Seaports Ltd, is also likely to be taken over by the Mukesh Ambani-promoted company. “It is the only weak link in the entire chain of gas production from the D6 block. If we can manage to take over the port, the risk of the chain breaking will minimise,” the RIL official said.
RIL had earlier wanted to build a berth for its captive use for loading offshore supply vessels which feed its exploration work in the K-G basin. It currently operates from a dedicated jetty at the port, for which it pays Kakinada Seaports Rs 95 lakh per month. Kakinada Seaport’s chief operating officer Surya Prakash Gutta said the company would sell for a price of Rs 500 crore. The two fertiliser plants are located adjacent to the port.
The Kakinada district administration official said the various companies such as construction firm Larsen & Toubro and Dubai Ports are interested in building a shipbuilding yard in the Kakinada coast. “The yard will also service the rigs which the oil companies use for drilling in the seas,” the official said.
Rigs, which need to be serviced every 3-4 years, have currently been sent to Dubai and Singapore for servicing. The official says investment in building a single shipyard could be to the tune of Rs 4,000 crore.
All of this has resulted in zooming land prices in this Pensioner’s Paradise, the name by which Kakinada is also known. “The price of land has almost doubled over the last couple of years. Cost of living has increased manifold,” Gutta said. Employment is also on the rise in Kakinada. “That is one of the major ways in which the local people are benefiting,” Tatavarty Srinivasa Rao, a social activist in Kakinada, said.
The man, who protested the privatisation of the Kakinada port 10 years ago, adds: “It gives great potential for industry and training.”
Source: Business Standard
Kakinada >> Rice Bowl set to become GAS Hub!
The town is filling up with engineers and contractors, all working to bring to production the huge volumes of Reliance Industries gas from an area 30 nautical miles off the town's coast.
"The population of this town will soon touch a million from the current 500,000-600,000. The slow pace of life is quickly changing and we will not be able to recognize this town a couple of years later," said Surya Prakash Gutta, Chief Operating Officer of Kakinada Seaports Ltd, the company which runs the Kakinada Port.
Most of the engineers pouring into Kakinada are working on the gas receiving and processing terminal that Reliance is constructing at Gadimoga, around 30 km from here.
Reliance is spending close to Rs 10,000 crore (Rs 1 trillion) to build the terminal, over an area of 214 acres. "The town of Kakinada is not just lucky, it is blessed," a Reliance official working at the gas terminal says, as he points out that there are over 10,000 workers at the terminal at any point of time.
"We have to work overtime to complete the terminal in time so gas production from the offshore block can begin. It's an immense task and we need all the men we can get," the official added.
The 214-acre gas terminal area houses water tanks and desalination plants, which will supply clean water to four villages in the terminal's proximity. The Reliance official says the company has adopted the villages. "We provide basic medical facilities, school and free books to the residents," he says.
Acquiring land for the terminal, however, was not easy as the area is highly fertile, fed by the rivers Godavari and Krishna. At least three crops of paddy are grown in the area - also known as the rice bowl of the state - in a single year. "There was a lot of problems in acquiring the land. But the government helped us somewhat," the official said, adding the land was bought at market rates and farmers were not paid a premium.
In Visakhapatnam, 150 km away, Joint Collector and Additional District Magistrate M Verrabrabmaiah says an amendment to the state Land Acquisition Act enables the district authorities and the state government to pay a premium of 100 per cent of the market value of the land to farmers.
Gujarat State Petroleum Corporation has also bought land adjacent to Reliance's terminal for a similar facility to process its gas from the shallow waters, off Kakinada. Construction work has not started, though. Oil and Natural Gas Corporation is also planning to acquire land for a similar terminal to process its K-G basin gas.
However, there are some who are not happy with the turn of events. "All of this acquisition of fertile land will finish us off," says MK Rao, who leads a retired life around the Gadimoga area, after working in Tanzania for over 20 years.
Meanwhile, Kakinada continues to wait for the consequence of these projects. In the 1990s, Nagarjuna Fertilisers and Chemicals and Godavari Fertilisers and Chemicals had opened two plants in the town.
"The people feel they did not benefit from the industries as much as they wanted to. Most are now waiting to see what Reliance will bring to their lives," said SV Ramarao, distributor for the Eenaadu group of publications.
Some in Kakinada are converting their homes into guest houses to accommodate the nearly 2,000 foreign engineers expected to come to the town over the next six months.
And everyone is talking of the gas. Tatavarty Srinivasa Rao, Chairman of the Jana Sikshana Samshtha, a non-government organization, says there are two aspects to the gas.
"One is directly using it as cooking fuel. The other is an enhancement of the industrial process," he said, adding "these are exciting times to live in Kakinada.
Source: Business Standard Jan 23, 2008
http://in.rediff.com/money/2008/jan/23kakinada.htm
Sunday, May 25, 2008
PCPIR >> A Jaggernaut along the Kakinada-Visakhapatnam Coast
Friday, May 23, 2008
Reliance gas production put off
Decision is because of operational problems
RIL from KG basin gas field expected to produce 80 mcm
The company holds a 90 per cent stake in the D6 block
Rajahmundry: Mukesh Ambani’s Reliance Industries which struck huge gas from its D6 block in the Krishna-Godavari basin in the Bay of Bengal and set to go for production from July has postponed its plans to the year-end.
After entering into an MoU with GAIL (India) for distribution and transportation it has finalized to start production in July and proposed to invest $ 5.2 billion in its facility.
As per Reliance Industries sources, the RIL is not in a hurry to start production immediately in KG Basin as it has encountered some operational problems onshore. The RIL is also having some tie-up problems with Andhra Pradesh, Gujarat & other states in distribution of gas.
The RIL from its KG basin gas field is expected to produce 80 million cubic meters (2.8 billion cubic feet) of gas per day, out of which it will take around 60 million cubic meters to its Gujarat and rest of 20 million cubic meters will be given to its customers in Andhra Pradesh.
Reliance Industries believes that there are reserves of more than 14.5 trillion cubic feet in the D6 block. The company currently holds a 90 per cent stake in the deepwater D6 block. The remaining 10 per cent is owned by Canada-based company Niko Resources.
DistributionAs per Reliance sources, at present the ONGC, Cain Energy and others have a tie-up with GAIL (India) for distribution of gas which they are producing from KG Basin. The distributor’s network in Andhra Pradesh includes NFCL (Kakinada) 2 million cubic meters per day, Lanco, Vijayawada 1.5 mcm, GVK 1.00 mcm, REL, APGPCL, Spectrum, Regency Ceramics, Dloex, Rolex paper mills, Andhra Sugars and so on. “All put together there will be around 38 to 40 customers for us.
They need a maximum of 17 million cubic meters per day. But, now they are getting only 7 million cubic meters a day”-said GAIL sources.The Reliance Industries currently produces a wide range of products, ranging from polymers to petroleum to garments.
The Reliance is also planning to have a tie-up with Bhagyanagar Gas Company Limited for opening CNG outlets in Hyderabad, Vijayawada and Visakhapatnam in first phase and Rajahmundry, Tirupati, Kurnool, Nellore and Karimnagar in second phase.
Tuesday, May 20, 2008
Mega Plan for Industrial Corridor in Andhra Pradesh
Deccan Chronicle -Kakinada, May 19: The government plans to spent Rs 20,000 crore to develop ‘linkages’ for the industrial corridor between Kakinada and Visakhapatnam. These include roads, railways, airports, ports and other external infrastructure.
The proposal has got the nod of the Centre a few days ago. Under this project, a 138 km-long coastal corridor will be built between Kakinada Port and Gangavaram Port (near Vizag) with six-lane roads and pipeline corridor at a cost of Rs 1,062 crore. In the subsequent phases the link road will be converted into an eight-lane road by spending Rs 875 crore.
As part of the programme, the present Asian Development Bank-sponsored road will be converted as a four-lane road between Kathipudi and Kakinada Port in an extent of 51.07 km. In addition to this, the National Highway 214 will be developed into four-lane road from the present two-lane at a cost of Rs 260 crore.
Later, it will be developed into a six-lane road at a cost of Rs 387 crore.As part of the industrial corridor development, the existing NH 5 will be developed into six-lane road for 190 km between Rajahmundry and Visakhapatnam.
In addition to this, the other external road links will be provided with Rs 512 crore. In all, Rs
4,021 crore will be spent on the road development activity as part of Industrial corridor project. For the development of rail links Rs 1,010 crore will be spend in the corridor. A rail link of 26 km will be taken up at a cost of Rs 102 crore between APSEZ and Gangavaram.For the provision of rail freight stations and for Gangavaram Port logistics Rs 730 crore will be utilised.
Further, authorities are allocating Rs 2,640 crore for developing airports in the region. This would include the development of the new Visakhapatnam International Airport with Rs 2,000 crore and the upgradation of Rajahmundry airport at Rs 120 crore. These proposals were discussed at a meet held recently by the Infrastructure Development Corporation of Andhra Pradesh with allied departments.
==========================
AP looking at integrating infrastructure development
Hyderabad, May 19, 2008: The Andhra Pradesh Government is looking at integrating infrastructure development for the proposed Costal Corridor and the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) projects.
“Since the first phase of the proposed Costal Corridor will be from Visakhapatnam to Kakinada, where the PCPIR project is slated to come up, the State Government is looking at developing work relating to basic infrastructure simultaneously,” Mr Sanjay Jaju, Vice-Chairman and Managing Director of Infrastructure Corporation of Andhra Pradesh (INCAP), told Business Line here today.
Mr Jaju also said that International Finance Corporation (IFC), an arm of the World Bank, will implement the road projects in the area. He added that they got a feel of what the development in the area will look like once the project is implemented.
A Government official also said that a meeting of the committee of Union Secretaries is slated for May 21 in New Delhi, to take a final decision on the PCPIR project which would in turn be recommended to the Cabinet for the final approval within the next one month.
Andhra Pradesh has turned out to be one of the prime contenders for the proposed PCPIR being envisaged by the Central Government.
The project in Andhra Pradesh is estimated to attract investments to the tune of around Rs 3 lakh crore and as per current estimates the State has more than half of the total investment envisaged for the project.
“IDFC is the consultant for the Chennai-Bangalore-Mumbai industrial corridor and we have had a meeting with them so that our proposal can be studied,” he said referring to the State proposal to join the project.
According to initial plan, the State Government is proposing development stretch from Satyavedu to Chennai and also development of Nellore to Bangalore region covering Rajampet, Kadapa, Ananthapur and Hindupur.
As per Government estimates, the total corridor in Andhra Pradesh is likely to cover 300 km.
HPCL-Mittal Energy : Total Consortium to fuel 3.5 L cr Investment in Petro Hub
20 May, 2008NEW DELHI: A cabinet secretary-chaired panel last week cleared the first mega oil, chemical and petrochemical investment hub, which is expected to attract an investment of Rs 3,43,000 crore.
Mittal Energy Investments, Total SA of France and oil refining and marketing major Hindustan Petroleum Corp (HPCL) would invest Rs 32,000 crore in the proposed petroleum, chemical and petrochemical investment region (PCPIR) which the Andhra Pradesh government has proposed in the Vishakhapatnam-East Godavari region.
The Cabinet committee on economic affairs (CCEA) is expected to consider the proposal on Thursday to give it the final go-ahead before the companies start construction work. The state government has a small administrative step to complete the process: notify the 603-sq km area as the petroleum, chemical and petrochemical hub, it is learned.
The massive investment — half of which has been committed by the investors — is expected to change the face of the southern state with anticipated exports of Rs 58,000 crore a year, tax receipts of Rs 46,500 crore a year and creation of 12 lakh jobs. The investment region is expected to account for 9% of the total value of goods and services produced in the state.
The Rs 32,000-crore investments by the HPCL-Mittal Energy-Total SA consortium will be the anchor tenant in the investment region, with numerous manufacturing units in the pharmaceutical, chemical, petrochemical and other specialised downstream industries coming up around it.
The consortium will set up a 15 million metric tonne a year (mmtpa) refining-cum-petrochemical complex at the Andhra Pradesh SEZ within the region. Besides this, HPCL is expected invest another Rs 10,000 crore to double its existing 7.5 mmtpa refining capacity in the region. Public sector refining major Oil & Natural Gas Corp (ONGC) would invest Rs 31,000 crore to set up a refinery and polypropylene unit in Kakinada SEZ.
The plan is to develop a number of SEZs, industrial parks, infrastructure projects and free trade and warehousing zones in the Vishakhapatnam-East Godavari region. While the central government is expected to provide financial support of Rs 5,214 crore for building roads, ports and airports, Andhra Pradesh intends to invest Rs 2,132 crore in building infrastructure. The state will also facilitate private sector participation in infrastructure creation at a cost of Rs 10,565 crore, it is understood.
Source: Economic Times
Sunday, May 18, 2008
Hinduja Group keen on Kakinada refinery sans ONGC
Hinduja group plans to go ahead and set up a Rs 25,600 crore refinery at Kakinada, Andhra Pradesh, even if its indecisive project partner, Oil and Natural Gas Corporation Ltd, opts out.
"We have given in writing to the Andhra Pradesh Chief Minister that we are keen to set up the project, with or without ONGC," Hinduja Group Chairman G.P. Hinduja told PTI.
ONGC had put a slew of conditions, including Andhra Pradesh government giving 950 acres of land free of cost, sales tax exemption and fiscal concessions equivalent to a special economic zone, for setting up the 15 million tonne refinery-cum-petrochemical project at Kakinada.
The concessions would cost the state government about Rs 16,000 crore. Even if ONGC were to join the project, the London-based Hinduja group is keen to take a majority stake, he said. However, Hinduja was optimistic about the economic feasibility of the project and said the group has also informed the state government of the source of crude oil for the refinery.
After the exit of Subir Raha, who had drawn a blueprint to catapult ONGC to become second largest refinery in the country, ONGC has fettered away the downstream expansion plans and the new management has taken a dim view of the Kakinada project. It also wants the stated to give free power and water to the project, provide road and rail connectivity, develop sewage and refinery effluent disposal system and give communications connectivity to enhance the 10.27 per cent return on capital currently.
Source — PTI
Friday, May 16, 2008
Kakinada SEZ...Kicks up Dust and Tempers
Kakinada SEZ seems to generate a lot of heated debate and resistance...
Thursday, May 15, 2008
ONGC's LOSS is Other Companies GAIN
Living up to its reputation that Public Sector Units/Companies (PSU) should run as slow as possible and take years to make a decision, ONGC lives up to the laxity evident in PSUs.
Read here for more news on its procrastination near Kakinada...
THREE Districts to Benefit from NH-214
Kakinada, May 14: The National Highway 214 from Kathipudi in East Godavari to Pamarru in Krishna district is expected to come into full utilisation by the first half of 2010 with the completion of the road bridge on Vainateya river en route.
The highway, for a distance of 242 kilometre, was taken up by the ministry of surface transport and highways (MSTH) to meet changing transport needs along the coast of East, West Godavari and Krishna districts in the coastal Andhra region.
The highway, which starts at Kathipudi from NH 5, connects NH 9 at Pamarru. It passes through Pithapuram, Kakinada, Yanam (under the Union Territory of Pondicherry), Mummidivaram, Amalapuram, Bodasakuru, Chinchinada, Bhimavaram to Pamaru in Krishna district. It covers the coastal areas of the three districts it passes through. At present, it takes a diversion at Bodasakurru between Amalapuram and Chinchinada in the Konaseema area at the Gannavaram aqueduct.
The road bridge at Bodasakurru on the Vainateya branch of river Godavari was taken up at a cost of Rs 70 crore in 2007 and is expected to cater to changing transport needs by the first half of 2010. On coming into full utilisation, the road is expected to provide a link road along the sea coast from Prakasam to East Godavari.
NH 214 A from Digumarru in West Godavari (near Narasapuram) to Ongole in Prakasam passes via Krishna and Guntur districts for a distance of 254 km. The road, in the next couple of years, is also expected to cater to the needs of industrial units being promoted along the coastal areas of the districts in addition to transport needs of the K-G basin off shore drilling operations in which major entrepreneurs like ONGC, Reliance, Gujarat State Petroleum Corporation (GSPC) and Cairn Energy are involved.
Besides this, the NH is also expected to cater to the needs of the farming community for transporting farm produce along the area. NH 214 and 214 A executive engineer B. Mallikarjuna Rao said that the two highways would come into full utilisation with the completion of road bridges by first half of 2010