PUBLISHED BY THE EMBASSY OF INDIA VIENNA YEAR 1 | ISSUE 6 | JUNE 2011

INDIA NEWSLETTER INDIA NEWSLETTER

PAG

E 6

TWO-PAGE SPECIAL REPORT

INDIAN STEEL INDUSTRY

TWO-PAGE SPECIAL REPORT

INDIAN STEEL INDUSTRY

2 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1

News

► ECONOMY

Growth. India‘s growth will pick up in 2011,

buoyed by positive corporate sentiment and

demand for infrastructure spending, accord-

ing to the Organisation for Economic Coop-

eration & Development (OECD), an inter-

governmental think-tank. OECD mentioned

that India‘s current growth rate is moving at

a sustainable rate, after the global reces-

sion, driven by a surge in private invest-

ment.OECD also recommended liberalisa-

tion of foreign direct investment in the retail

sector to promote competition and help

modernise supply chains, which will boost

the economy further.According to OECD,

India's real gross domestic product (GDP)

growth at market prices in 2010-11 fiscal is

at 9.6 per cent, which would be 8.5 per cent

this fiscal and 8.6 per cent in 2012-

13.Globally, the world‘s GDP is projected to

increase by 4.2 per cent this year and by

4.6 per cent in 2012. In the US, activity is

projected to rise by 2.6 per cent this year

and by a further 3.1 per cent in 2012, while

in the Euro Zone growth is forecast at 2 per

cent this year and the next.

Prognosis. The commerce and industry

ministry has set a target of achieving $500-

billion exports by 2013-14 (in 2010-2011,

exports were approx. $246 billion) by strate-

gising the country‘s foreign trade through

diversification of products and markets on

one hand and technological enhancement

on the other hand. It floated a strategy pa-

per for this purpose where it had recom-

mended certain specific areas such as skill

development, focus on research and devel-

opment and channelising incentives in a

proper manner.

► INDUSTRY/BUSINESS

Vibrant Gujarat 2011. Foreign delegates

looking for Gujarati investments mopped up

proposals worth 35,000 crore (approx.

Economy & Business

May 2011 Highlights

$7.8 billion) at the 5th Vibrant Gujarat Glob-

al Summit. Small and medium businesses

from the state signed agreements during

the twoday summit that concluded in capital

Gandhinagar on Thursday promising invest-

ments abroad. Most companies investing

abroad were smaller companies following

their larger state peers like Adani group,

Zydus, Gujarat NRE Coke, Kiri Dyes, Motif

Infotech, Jyoti CNC Limited, Hester Biosci-

ences. The biggies have overseas busi-

nesses in USA, Europe, Japan, Brazil,

South Africa, Australia, Indonesia, France,

Germany, Nepal et al. Now smaller compa-

nies are expanding their footprint in coun-

tries like Australia and Canada.

Tourism. The export of touristic know-how

from Salzburg is booming. The first Indian-

Austrian tourism school is to be opened in

Karwar, some 350 km away from Goa, al-

ready in January 2012. 80 students will

commence their studies. The Indian hotelier

wants to invest 17 million Euros in the be-

ginning. The ―tourism software‖ from Aus-

tria, such as admission proceedings, teach-

er training, curricula, master diplomas or

quality assurance, will be provided in coop-

eration with the university of applied scienc-

es Salzburg.

Wind Power. Gamesa Wind Turbines, the

Indian subsidiary of Spanish wind turbine

giant, Gamesa, announced the signing of

an order with Caparo Energy India (CEIL)

for the supply, erection and commissioning

of 2,000 MW of turbine capacity for wind

power projects to be set up in India.

Steel. German engineering technology ma-

jor Siemens AG plans to make India its

global hub for manufacturing key steel plant

equipment. The Kolkata-headquartered Sie-

mens VAI Metal Technologies — the steel

technology arm of the multinational — has

been designated to manufacture five prod-

ucts — ladle furnace, vacuum degasser,

billet caster, small and medium capacity

sinter plant and blast furnace — for global

clientele. Additionally, Siemens VAI will set

a new factory to make steel plant equip-

ment in India.

In the meantime, other news sources an-

nounced that Indian steel companies are

planning to form strategic tieups with global

majors such as ArcelorMittal and

ThyssenKrupp to access new markets, in-

stead of bidding for these large units which

will be expensive. Jindal Stainless and SAIL

are the two large stainless steel companies

that could likely look at adding larger and

bigger customers by collaborating with the

global majors, and also by adopting newer

technology as part of the global restructur-

ing in the stainless steel industry.

Pharmaceuticals. In a first-ever deal of a

novel biologic molecule developed in India,

Glenmark Pharma has entered into a li-

censing agreement with global major Sanofi

to develop and commercialize a monoclonal

antibody, GBR 500. This could involve po-

tential payments of $613 million over a peri-

od of five years if commercialized. GBR

500, used to treat chronic autoimmune dis-

orders, is the first biological compound de-

veloped and outlicensed by a domestic

company.

Nanotechnology. Wipro, in collaboration

with Belgian research institute IMEC is set-

ting up a high-end nanotechnology R&D

centre in Bangalore , which will focus on

developing next generation intelligence sys-

tems for use in the healthcare, energy, and

imaging and vision - including body area

networks, which patients can wear and walk

around, while real time data is directly

transmitted to hospitals or doctors.

Automotive. US auto-manufacturing giant

General Motors Co. is to invest $500 million

J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 3

by 2012 in the expansion of its production

capacity in India, reported Reuters. The in-

vestment will be undertaken by GM‘s Indian

unit, General Motors India Pvt. Ltd.

Auto Components Sourcing. French car-

maker Renault will source €80 million worth

components this year from India to feed its

overseas plants. The company sourced €35

million worth parts last year.

IT. Marking the biggest acquisition of the

India IT industry, Nasdaq-listed iGate an-

nounced the completion of Indian Patni

Computer Systems‘ acquisition and re-

vamping of the top leadership. The com-

bined entity will be known as iGate Patni.

Chemicals. Reliance Industries is drawing

ambitious plans to be a world leader in rub-

ber, and is investing up to $12 billion in the

chemicals business to tap the rapidly-

growing market for hygiene and healthcare

products.

India/Germany Acquisition. Ujala fabric

whitener maker Jyothy Laboratories has

bought Henkel AG's majority stake in its In-

dian subsidiary for $136 million, The deal

includes Henkel's entire portfolio that in-

cludes Henko and Chek detergents, Pril

dish cleaners and Fa deodorant, and rights

to the multinational's future launches.

India/Australia $2-billion Acquisition.

Adani Group-owned Mundra Port and Spe-

cial Economic Zone Ltd (MPSEZL) today

announced the $ 2 billion acquisition of Ab-

bot Point Port in Queensland, Australia, on

a 99-year lease, marking the beginning of

the company‘s expansion outside India.

France/India Acquisition. France based

ALTEN Group has forayed into India with

the acquisition of Chennai & Bangalore

based Calsoft Labs. ALTEN Group is a

leading European Engineering Consulting

Group headquartered in Paris.

India/Germany-Japan Acquisition. India's

leading software services exporter, Tata

Consultancy Services (TCS), is eyeing ac-

quisition opportunities in Germany and Ja-

pan in the healthcare sector, its chief exec-

utive said, as the company aims to expand

its geographical presence and product of-

ferings.

India/Sweden Acquisition. Aditya Birla

Group acquired Domsjö Fabriker, a leading

Swedish Speciality Pulp and Bio-refinery

Company, through its global companies

Thai Rayon Public Company Limited

(Thailand) and Indo Bharat Rayon

(Indonesia), for a sum of US $340 million

from a Swedish consortium.

India/Brazil Acquisition. Wipro Limited

has signed a definite agreement to acquire

an 80 per cent stake in Brazilian hydraulic

cylinder manufacturer RKM Equipamentos

Hidráulicos for an undisclosed amount. Ac-

cording to the agreement, Wipro will ac-

quire the remaining stake over the next

three years. RKM would be a part of

Wipro‘s infrastructure engineering division.

India/France Acquisition. The Pawan Ku-

mar Ruia Group said it had acquired a

France-based automotive sealing manufac-

turer, SEALYNX Automotive, having a turn-

over of $98 million in 2010, for an undis-

closed amount.

► INFRA-STRUCTURE

Investment. Adani Enterprises Limited

(AEL), flagship of Adani group, will invest

about US$10-12 billion over the next four-

five years to expand its domestic as well as

global footprints. The company has pro-

posed to invest around US$6.9 billion to

develop Galilee Coal Tenement in Queens-

land, Australia, which is among the largest

ever investment made by an Indian firm

there.

Investment II. Morgan Stanley Infrastruc-

ture Partners (MSIP), a $4-billion global in-

frastructure fund, has committed to invest

up to $200 million in a joint venture (JV)

with Isolux Corsán Concesiones in India.

Isolux Corsán Concesiones is an infrastruc-

ture concessions subsidiary of the $4-billion

Grupo Isolux Corsán, specialising in large

projects across construction, engineering

and concessions.Grupo Isolux Corsán will

bring in an equal amount in the JV, bringing

the total commitment to $400 million.

Floating Solar Plant. Tata Power said

that it will be building the country‘s first low-

cost, high-efficiency floating solar plant in

partnership with Sunengy, an Australian

company, which invented the technolo-

gy.The pilot plant of Liquid Solar Array

(LSA) uses concentraded photovoltaic

technology, but instead of mounting the

cells on a frame, it is made to float on wa-

ter, making it low-cost, cyclone-proof and

does not require any land acquisition.

Renewable Energy. To promote develop-

ment of renewable energy in India, Germa-

ny‘s Development Bank KfW, acting on be-

half of the German Government, signed a

loan agreement worth approximately €190

million with the Indian Renewable Energy

Development Agency (IREDA). The agree-

ment comprises an integrated package of

concessional loan and technical assis-

tance.

Power Plant. Larsen & Toubro (L&T) has

received an order valued at over €550 mil-

News

May 2011 Highlights (cont'd )

4 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1

lion from PPN Power Generating Company

for setting up a 3x360-mw-gas-based pow-

er plant at Nagapattinam District of Tamil

Nadu.

Solar Energy. Technological break-

throughs and economies of scale will make

solar power competitive in six years and

help India add 67,000 megawatts of solar

generation capacity by 2022 - more than

thrice the country's target, according to a

report by consultancy firm, KPMG. The re-

port says solar energy can contribute 7% of

the total power needs of the country by

2022, helping cut coal imports by 30% or 71

million tonnes a year. This would result in

saving of $5.5 billion in imports per year

from 2022 onwards, it said. Though India

may add up to 17 gigawatts (GW) of solar

power by 2017, the cumulative installation

between 2017 and 22 can jump three fold

to 50 GW, the consultancy says.

Turbo Power Generators. State-run power

equipment maker BHEL has announced the

successful manufacture and testing of the

country‘s first new series turbo generator of

600 MW rating. The generator shall be sup-

plied and installed at the upcoming North

Chennai Thermal Power Project of Tamil

Nadu Electricity Board (TNEB). With the

successful testing of the generator, a new

benchmark has been set by BHEL with re-

spect to indigenous manufacture of thermal

sets with supercritical parameters.

Tablets. Indian Firms rush to make low-

cost tablets. A bevy of Indian companies

are set to launch tablets at price points be-

tween $220 and $440 – half to one-fourth

of what the Apple product costs. Compa-

nies such as Spice Telecom, Bharti Tele-

tech, Karbonn and Lava Mobiles are hoping

to repeat their success in the mobile phone

market. Indian companies have wrested

one-third of this 150-million-units-per-

annum market from big boys like Nokia and

Sony Ericcson. BK Modi‘s Spice Mobile is

planning to launch a model for $330. New

Delhi-based Lava Mobiles is looking to

launch a seven-inch tablet for $380-400. It

has set up a team to develop India-specific

applications.

► INTERNATIONAL

Colombia. India signed a Double Taxation

Avoidance Agreement (DTAA) with Colom-

bia for avoidance of double taxation and

prevention of fiscal evasion with respect to

taxes on income emanating from either

country.

Australia. India and Australia announced

the launch of the formal negotiations of a

comprehensive economic cooperation

agreement (CECA) also known as Free

Trade Agreement (FTA) aimed at liberalis-

ing and broadening the base of merchan-

dise trade, removing non-tariff barriers and

encouraging investments between the two

nations. They also committed to doubling

the value of trade between the two coun-

tries within five years to $42 billion dollars.

New Zealand. India and New Zealand are

likely to conclude a free trade agreement

by the end of the fiscal to enhance ‘below-

potential‘ bilateral trade and promote in-

vestments. While last fiscal‘s two-way trade

reached $1 billion, the two sides propose to

triple to $3 billion by 2014. ◄

News/Article

May 2011 Highlights (cont'd )

Article

Solar power in India could cost the same as conventional electricity by 2019-20

More aggressive policy could see solar power prices decline at a rate of 5-7 per cent annually over the next decade, ensur-ing ―grid parity‖, or the point when solar power costs the same as conventional pow-er, as early as 2017-18, the report said. Such targets are well in line with India‘s plans to produce 20 gigawatts (GW) of so-lar power by 2022, though hurdles such as steep production costs, lack of data and

trained manpower remain.

―The pace at which the gap between solar power tariffs and the landed cost of power will be bridged will determine the pace at which solar power will take off,‖ the report said. It continues: ―While we expect grid parity for these consumer categories - do-mestic and agriculture - in 2019-20, based on state-specific and end-use specific cost economics, the adoption of solar is likely to

happen earlier.‖

The report said certain states such as Raja-

sthan and Gujarat in the west and Tamil Nadu in the south could reach grid parity earlier than others because of more favour-able policies and sunnier weather, thereby reducing costs. Also, conventional power costs are higher in these states as they are located far away from coal reserves. Coal, available in abundance in India, provides power at about 2 rupees (4 cents) a unit, compared to a kilowatt-hour of solar power at a range of 11 to 12 rupees. According to the Indian Solar Mission, introduced in 2009, solar power output by 2022 would be equivalent to one-eighth of India‘s current installed power base, helping Asia‘s third-largest economy limit its reliance on coal to

power annual growth of 8-9 percent.

The KPMG report said solar energy could contribute to about 7 percent of India‘s total power needs and displace about 16,900 megawatts (MW) of conventional power by 2022, and with additional solar capacity, could cut India‘s total coal imports by 30

per cent by that year.

―Furthermore, solar power can save 95 mil-lion tonnes of CO2 equivalent per annum by 2022,‖ it said, which would mean a cut of about 2.6 percent of the country‘s total

emissions in that year.

In 2009, India set a goal for slowing the growth of its emissions, saying it will try to rein in its ―carbon intensity‖ - the amount of carbon dioxide emitted per unit of economic output - by between 20 and 25 per cent by

2020, from 2005 levels.

India is now the world‘s No. 3 greenhouse gas polluter after the United States and China, and rapid economic growth and con-sumption are driving up production of plan-et-warming carbon dioxide from coal-fired power plants, transport and industry. Its current per-capita emissions stand at 1.8 tonnes, about a third of China‘s and less

than a tenth of the United States‘.

J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 5

Business

Article

Clean technology, a driver for India-Finland economic cooperation

Several Finnish companies are keen to form joint ventures with Indian firms to expand their operations in the country and promote the use of clean technology, the Nordic nation‘s Environment Minister Paula Lehtomaki said Thursday. ―Finnish companies are looking for partners in India. Some of them have already started their businesses with local partners. Many more are looking for partners to explore the possibility of further investment,‖ the

minister said.

―Finland is a leader in green technologies. We have right technology and know-how and are keen to share it with India,‖ Lehtomaki told IANS during an event organised by Cleantech Finland on the sidelines of the Delhi Sustainable Development Summit. She said Finnish and Indian government had pledged to work together to promote the use of environment friendly technologies and a key focus of such cooperation will be in

renewable energy and water management.

―The global challenges we are facing today can be turned into opportunities with the

right technologies and know-how. What is needed is enhanced cooperation and sharing of knowledge,‖ the minister said, adding green economy will be the focus of

the future.

―Green economy is essentially about integrating environmental aspects into all sectors of the society — and simultaneously boosting economic growth

by creating new green jobs.‖

Leading Finnish companies including The Switch, Kemira, Metso, Picosun and Ruukki — here at the aegis of Cleantech Finland — are keen to expand their operation in India through joint ventures in clean

technology: Following are their initiatives:

Kemira Oyj: This company has a joint venture with Hyderabad-based water infrastructure firm IVRCL for water treatment. It started in India in 2008 and invested nearly $10 million thus far, with

plans to scale it up manifold soon.

The firm is involved in desalination, potable water and waste water management

projects. The company will soon set up a manufacturing base in India as well, and combine their know-how with $1.5 billion

IVRCL‘s expertise in water infrastructure.

The Switch: This company, which supplies wind power and new energy applications, started business in India last year. The company plans to invest $50-$100 million in India in a couple of years and is looking at

partners for a joint venture.

Metso: This company has entered into a pact with Aditya Birla Group‘s Grasim Industries to supply recovery boilers by 2012. The boilers to replace the two ones at the company‘s rayon grade pulp mill at

Kumarapatnam in Karnataka.

Picosun Oy: This company is a manufacturer of state-of-the-art atomic layer deposition system, which help in depositing ultra-thin films on surfaces. These are used in solar and atomic energy plants. The company is also looking for

Indian partners.

Indian Solar Energy Companies seek Foreign Collaboration

It is learnt that lack of prior experience and equity in the capital -intensive solar power sector is driving the Indian investors and EPC contractors to join hands with experi-

enced cash rich foreign players.

The National Solar Mission envisages in-stalling 20,000 mw of generation capacity at an investment of about 300,000 crore (approx. $66 billion) in next one decade. Industry experts believe that at least a doz-en collaborations and joint ventures be-tween Indian and foreign players have tak-en shape in just 12 months and the trend will continue in the sunrise solar power sec-tor.From zero presence of solar in Indian

energy mix at least 2,000 mw of solar pow-er generation capacity underway in the country. In Gujarat alone, government has entered into power purchase agreements with 83 developers to commission 958 mw of solar power generation capacity. Central government's nodal arm for solar power trade National Vidyut Vyapar Nigam, signed PPAs with developers in January for 620

mw of capacity.

Commenting on the trend, Solar Energy As-sociation of Gujarat founder chairman Pra-nav Mehta said solar power sector is in nascent stage in India and there is lot of excitement and the project developers will

need experienced hands with proven rec-ords. Also, there are no precedents for the financial institutions for funding the solar project and hence project developers will

need investments from strategic investors.

The Indian market potential for Swiss enti-ties that are into renewable energy and wa-ter technology areas could reach up to $ 2 billion, according to a Swiss business group official. Many Swiss entities are into the fast-growing clean energy sector and are look-

ing for business opportunities in India.

A Swiss government-sponsored entity, Cleantech Switzerland provides an export platform for Swiss cleantech players. The market for clean energy in India is growing and such projects are estimated to have attracted private investments of around $ 4

billion last year.

Uwe Krueger, president, Cleantech Swit-zerland said that now there are projects,

related to water technology areas in India, worth about 20 million Swiss francs in the pipeline. Krueger was here as part of the business delegation that accompanied Swiss Head of the Federal Department of Economic Affairs Johann Schneider-

Ammann.

He noted that power generation from "decentralised sources" such as wind pow-er turbines and solar farms would provide huge investment potential in countries, in-cluding India, especially, in terms of up-grading the existing electricity grids. Clean-tech Switzerland has also entered into an agreement with the Confederation of Indian Industry (CII) to explore business opportu-nities in the clean energy sector for both

Indian and Swiss entities. The focus would be on renewable energies and efficiency, water and waste water utilisation and envi-

ronmental technologies.

Swiss Renewable Energy Companies see $2 billion market in India

6 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1

Business

Interview

Hollywood meets Bollywood

Andrew Cripps, President of Paramount Pictures

Looking at increasing its footprint in In-

dia, Paramount Pictures announced a

strategic alliance with Viacom 18 to dis-

tribute and market their releases across

the sub-continent. President Andrew

Cripps spoke to Varada Bhat on their al-

liance and plans for the Indian market.

Edited excerpts:

Q: You have joined hands with Viacom

18, what is your India strategy?

A: I think for us this association is about

growth. Alliance with a strong local partner

gives us the scope for national distribution

of our films, instead of going for several sub

-distributors. We can build our movie mar-

keting strategies and do promotions activi-

ties while leveraging media assets of Via-

com 18 such as MTV, VH1 and other inter-

net platforms.

Q: What's your view about the Indian

market in the context of Hollywood mov-

ies?

A: Personally I feel the market is on the

path of growth. One can no longer make

money with action and horror movies. Part

of this is because the middle class has de-

veloped taste for different genres of mov-

ies. For instance, our movie No Strings At-

tached did exceedingly well here a few

months back. We compare this market to

Russia and Brazil 10 years ago. We have

seen those markets expand rapidly in a

short span. Now, Russia is the sixth biggest

territory we have internationally. I see the

same characteristics in the India today. For

instance, Transformers is now being re-

leased with 550 prints in four languages. In

the next four-five years, India should be in

the top 10.

Q: After Avatar, there has been a 3D

rush. What do you think is the future of

this technology?

A: 3D is here to stay. 2010 was certainly

the year when 3D had a major impact on

the box office, with eight of the top 15 inter-

national titles (presented) in 3D. But, as an

industry, we have to be careful what movies

we make in 3D. Like Transformers is the

perfect example. This way the audiences

will not only recognise, but also embrace

the technology. And they are willing to pay

a premium for 3D because it is a whole new

experience.

Q: So far Paramount Films operated

here as Paramount Films India ? What

happens to that?

A: We have joint venture with Universal

Studios called United International Pictures

(UIP). We are working with our partners

Universal to understand their plans for the

company. They have to make a decision on

what they want to do in the next couple of

months.

Q: Do you plan to enter into co-

production deals with film production

houses such as Sony and Warner ?

A: This is something we are definitely going

to look at. Our short-term objectives are

proper launch for the venture and focus on

the marketing of the movies. If there are

other opportunities from this alliance, we

will look at it.

Q: Do you plan to have theme parks

here as well?

A: You never know. India is a huge country

with a lot of consumers

Q: From this alliance, would you also be

looking at distributing and marketing

Viacom 18 motion pictures releases

globally?

A: Yes, definitely. There is huge audience

of Indian films. Wherever we can, we will

allow them to use our global distribution in-

frastructure.

QUOTE OF THE MONTH

"India‘s policies of trade and

investment liberalisation are

reintegrating it into the world

economy, allowing it to regain an

influence it had three centuries ago"

by George Osborne

UK Chancellor

J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 7

Industry

Sector Close-up

Steel Industry

Sector Structure/ Market Size

Steel industry has a major role to play in

the economic growth of India. With new

global acquisitions by Indian steel giants,

setting up of new state-of-the-art steel

mills, modernisation of existing plants,

improving energy efficiency and backward

integration into global raw material

sources, India is now on the centre of the

global steel map. Consumption of steel in

the construction sector,

industrial applications, and

transport sector has been on

the rise and special steel

usage in engineering industries

such as power generation,

petrochemicals and fertiliser

industry is also growing.

India has retained its position

as the 5th largest producer in

2010 and recorded a growth of

11.3 per cent as compared to

2009. India has also emerged

as the largest sponge iron/

direct reduced iron (DRI)

producing country in the world

in 2010, a rank it has held on

since 2002. Sponge iron

production grew at a CAGR of

11 per cent to reach a level of 20.74 million

tonne (MT) in 2009-10 as compared to

14.83 MT in 2005-06. India is expected to

become the second largest producer of

steel in the world by 2015-16, on account

of growing steel demand, rich resources

base of iron ore, skilled manpower and

vast experience of steel making and the

huge capacity expansion planned and

being executed in the steel sector.

With the expanding consumer market,

Indian steel industry is likely to receive

huge domestic and foreign investments.

Nearly 222 memorandums of

understandings (MoUs) for planned

capacity of around 276 MT have been

signed between the investors and various

State Governments, mostly in Orissa,

Jharkhand, Chhattisgarh and West Bengal.

India has recorded a growth of over 8.6 per

cent, producing 6.35 MT of steel in March

2011 as against 5.85 MT in the

corresponding month in 2010, according to

World Steel Association (WSA).

Steel exports has increased by 17.3 per

cent as it reached an estimated 2.46 MT,

while steel imports were at an estimated

5.36 MT, a growth of 2.8 per cent in 2010.

Production

Crude steel production was registered at

51.57 MT during April-Dec 2010 in the

country as per Joint Plant Committee

(JPC). The production is expected to be

nearly 110 MT by 2012-13.

Crude steel production grew at a

compound annual growth rate (CAGR) of

8.4 per cent during the five years, 2005-06

to 2009-10. The crude steel performance

accounted for 31 per cent of the total crude

steel production in the country during 2009-

10, contributed largely by the strong trends

in growth of the electric route of steel

making, particularly the induction furnace

route, which was a key driver in the growth

of the segment. In case of total finished

steel (alloy + non-alloy), production for sale

was recorded at 47.30 MT, a growth of 7.9

per cent during Apr-Dec 2010.

Steel Authority of India (SAIL) Ltd has

planned to enhance its hot metal

production capacity from the

level of 13.82 million tonnes

per annum (MTPA) to 23.46

MTPA under its current phase

of expansion and

modernisation which is

expected to be completed by

financial year 2012-13. In the

next phase, SAIL would

increase its capacity further to

26.18 MTPA.The indicative

investment for current phase is

about US$ 13.28 billion.

Additionally, approximately

US$ 2.21 billion has been

earmarked for modernisation

and expansion of SAIL Mines.

NMDC Ltd plans to increase

the production of iron ore from

the present level of about 24 MT to 40 MT

by 2014-15. Besides, setting up a 3 MTPA

Integrated Steel Plant at Nagarnar in

Chhattisgarh. The environmental clearance

for the plant has been accorded by Ministry

of Environment and Forests (MoEF).

Major Developments

The Indian steel market has witnessed the

announcements of mega expansion plans

from leading domestic producers in the

form of greenfield and/or brownfield

projects. Furthermore, with an expanding

consumer market, the steel industry in

India is likely to receive huge domestic and

foreign investments.

8 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1

Industry

Steel Industry (cont‘d)

Posco, South Korea, plans to set up a 12

MT integrated steel plant in Orissa.

Mittal Group's announced plans to set up

their 12 MT integrated steel unit in Orissa.

Tata Steel Ltd (TSL) has taken over US$

12 billion Anglo-Dutch giant Corus Group

Plc, transforming the former into a

significant global steel producer, which

may well be regarded as a benchmark

even in the history of the Indian steel

industry.

Bhilai Steel Plant (BSP), the flagship entity

of the Steel Authority of India Limited

(SAIL), has secured a fresh order of

exporting rails to Sri Lanka. The order of

about 14,000 tonnes is for the UIC-60

grade of rails. Earlier, the company had

received an order to supply 6,500 tonnes of

rails to Sri Lanka.

The Essar Group, through Essar Africa

Holdings Ltd (EAHL), has bought 54 per

cent stake in Zimbabwe‘s state-owned

steelmaker, Zisco. The total deal is valued

at US$ 750 million.

The State Level Single Window Clearance

Authority (SLSWCA) in Orissa has cleared

four investment proposals in the steel

sector worth US$ 632.86 million.

Orissa through its nodal agency for land

acquisition, Industrial Infrastructure

Development Corporation of Orissa Ltd

(Idco), has allotted 20684.06 acres of land

to steel companies that have signed

memorandum of understanding (MoU) with

the State. The steel sector in Orissa has

already recorded an investment of US$

11.64 billion till the end of December 2010.

Tata Steel Ltd (TSL) and Nippon Steel

Corporation (NSC) have signed a joint

venture (JV) agreement to setup India's

first continuous annealing and processing

line (CAPL) for the production of 600,000

tonnes per annum of automotive cold-rolled

steel at Jamshedpur, India. TSL will hold

51 per cent and NSC will hold 49 per cent

of equity capital of the JV Company. The

project will be set up at a capital cost of

approximately US$ 509.08 million and is

expected to come on stream in 2013.

NMDC Ltd has signed a pact with Russian

steel and mining major Severstal to set up

a 5 MTPA steel plant in Karnataka as part

of a strategy that aims to boost the

company's revenue by increasing presence

in value added product chain. It has also

set up a 3 MTPA integrated steel plant at

Nagarnar, Chhattisgarh, which is likely to

be commissioned in 2014.

It has also set up a 3 MTPA integrated

steel plant at Nagarnar, Chhattisgarh,

which is likely to be commissioned in 2014.

Essar Steel has commissioned a state-of-

the-art Compact Strip Production (CSP)

mill with a capacity of 3.5 MTPA. The CSP

mill is a part of the company's expansion

plans of raising the steel production

capacity at Hazira at a cost of US$ 3.03

billion. The company has also

commissioned two iron making units–a

blast furnace with a capacity of 1.73 MTPA

and a DRI unit of 1.74 MTPA, a conarc

furnace of 2.5 MTPA, besides

commissioning India‘s first 5-metre wide

plate mill with a capacity of 1.5 MTPA and

a pipe mill with an annual capacity of 0.6

MTPA.

Sesa Goa, a Vedanta Group company, has

acquired the assets of Bellary Steel and

Alloys (BSAL) for US$ 48.94 million in a

competitive bidding process conducted by

Industrial Financial Corporation of India

(IFCI) Ltd.

JSW Steel plans to infuse US$ 83.54

million in Ispat industries in the next 2-3

years. JSW Steel plans to invest US$

16.86 billion over the next 10 years to ramp

up capacity from 7.8 to 32 MTPA through

greenfield and brownfield projects.

Government Initiatives

The current policy regime allows 100 per

cent foreign domestic investment (FDI) in

steel sector, as per Mr Beni Prasad Verma,

Minister of State for Steel (Independent

Charge). Some multinational steel

companies like POSCO and Arcelor Mittal

have signed MoU with respective to State

Governments to set up steel production

units in the country. The total proposed

capacity under FDI is about 45 MT.

Some of the initiatives undertaken by the

Indian Government in the 11th Plan (2007-

12) to promote the steel sector include:

The Planning Commission has approved a

total outlay of US$ 9.5 billion for the

development of the iron and steel sector.

The scheme for the promotion of research

and development in the iron and steel

sector has been approved with a budgetary

provision of US$ 24.6 million to initiate and

implement the provisions of the scheme.

National Steel Policy 2005 is under review

and the process for drafting a 'National

Steel Vision' has since been initiated.

Five year strategy paper was prepared for

promotion of Steel sector in the country.

Moreover, in the Union Budget 2010-11,

the Government has allocated US$ 37.4

billion to the infrastructure sector and has

increased the allocation for road transport

by 13 per cent to US$ 4.3 billion which will

further promote the steel industry.

Ministry of Steel in association with UNDP

is carrying out a project on ‗Removal of

Barriers to Energy Efficiency Improvement

in Steel Re-rolling Mill Sector in India‘ at an

estimated cost of US$ 14.03 million. The

project seeks to reduce greenhouse gas

emissions by providing technical

assistance to small and medium sized steel

re-rolling mills in the country to enable

them to adopt more energy efficient and

environmentally friendly technologies.

J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 9

Trade Shows

WHAT

Exhibition on Technologies for Automotive Manufacturing

WHEN

June 10-12, 2011 WHERE Chennai

MORE INFO

www.autoengineeringshow.com

WHAT Expo on cutting edge research and technologies in the field of electric

and plug-in hybrid vehicles

WHEN August 10-12, 2011

WHERE New Delhi

MORE INFO www.greenautomobil.com

WHAT International Exhibition on Telecommunication and IT

WHEN July 29-August 1, 2011

WHERE Bangalore

MORE INFO www.tradeshows.tradeindia.com/

indiaconnect2011

WHAT

Exhibition on Agriculture, Farm

Machinery, Equipment and Agri

Processing Technology

WHEN

September 09-11, 2011

WHERE

Bangalore

MORE INFO

1 0 | I n d i a - A u s t r i a N e w s l e t t e r - J u n e 2 0 1 1

Profile

Ispat Industries Limited (IIL) is one of the leading integrated steel

makers and the largest private sector producer of hot rolled coils

in India. Set up in May 1984 , IIL has steadily grown into a $2

billion-dollar company, a corporate powerhouse with operations in

iron, steel, mining, energy and infrastructure.

Headquartered at Mumbai, the company's core competency is the

production of high quality steel, for which it employs cutting edge

technologies and stringent quality standards. It produces world-

class sponge iron, galvanized sheets and cold rolled coils, in

addition to hot rolled coils, through its two state-of-the art

integrated steel plants, located at Dolvi and Kalmeshwar in the

state of Maharashtra. The sprawling 1,200 acres Dolvi complex

houses the 3 million tonne per annum hot rolled coils plant, that

combines the latest technologies - the Conarc process for steel

making and the compact strip process (CSP) - introduced for the

first time in Asia.

The complex also has a 1.6 million tonne per annum sponge iron

(DRI) plant, which was commissioned in 1994 as the world's

largest and most efficient gas-based single mega module plant.

Moreover, the Dolvi complex is home to a 2 million tonne blast

furnace and also boasts a mechanised multi-functional jetty

situated nearby, that facilitates the automation of raw material

handling. A new 2.24 million tonnes per annum sinter plant, a

1260 tonnes per day oxygen and a new electric arc furnace have

also been commissioned at IIL Dolvi.

Ispat is the only steel maker in India and among a few in the world

to have total flexibility in choice of steel making route, be it the

conventional blast furnace route or the electric arc furnace route.

Its dual technology allows Ispat the freedom to choose its raw

material feed, be it pig iron, sponge iron, iron ore, scrap or any

combination of various feeds. It also has total flexibility in choosing

its energy source, be it electricity, coal or gas.

Technology and innovation have always been the cornerstones of

IIL's quest for excellence and its state-of-the-art plants facilitate

the company's mission to attain and sustain market leadership,

through technological and product superiority.

With investments of over US $2 billion, IIL is the seventh largest

Indian private sector company in terms of fixed assets. It aims to

consolidate its market leadership in the national specialty steel

market by capitalising on the proximity of its manufacturing

facilities to major consumers of flat steel products in Maharashtra,

while increasing its presence in international markets by using its

convenient port location. In the short span of time since its

inception, Ispat Industries has steadily raised the bar. As it rapidly

forges ahead on, IIL has successfully reinforced its position as

market leader, while simultaneously making technological

breakthroughs and setting even higher standards for itself.

Big Players

Ispat Industries

Emerging SME

Microqual Techno Ltd. Microqual Techno Ltd., for over the last decade, has been a

pioneer in manufacturing and supply of products, services and

solutions impacting the global communications world. Microqual‘s

state of the art manufacturing facilities in India (3 Plants), backed

up with global technology, have been set up for manufacturing the

complete range of products for RF (Radio Frequency) cables,

transmission lines, in-building solutions materials, tower

accessories, electrical and mechanical site materials and a range

of RF antennas. Microqual has been awarded ―The SME of the

Year‖ & ―Best Infrastructure Company‖ by CNBC-TV18 and was

ranked among the top fifty fastest growing technology companies

in India by Deloitte and Touché for the last four years.

Ispat Industries Corporate Office

Address: 7th Floor, Nirmal, Nariman Point, Mumbai 400 021

Phone: +91 22 66542222 / Fax: +91 22 22855519 / Email: Corporate_Communications@ispatind.com / Web: www.ispatind.com

Microqual Techno Ltd.

Address: 3rd Floor, Techweb Center, Oshiwara Behrambaug, Off New Link Rd., Jogeshwari (W), Mumbai - 400 102 (India)

Phone: +91 22 40741515 / Fax: +91 22 40741590 / Web: www.microqual.com

J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 1 1

Tourism

With foreign influences as disparate as Chinese and Portuguese,

Arab and Dutch, Kerala is the spice coast of India. Edged by a

thread of unbroken beachline, the state‘s heart is composed of in-

tensely green paddy fields and a unique network of rivers and la-

goons. Upland Kerala, relatively little visited, is composed of hills

thickly wooded with teak and rubber. It is here that Kerala‘s most

precious spices are grown in carefully nurtured plantations: carda-

mom, pepper and nutmeg.

Thiruvananthapuram (Trivandrum), the state capital, an interna-

tional airport, has an exceptionally fine museum set in an amuse-

ment park. 16 km away is Kovalam, one of the most popular

beaches in the country. Many visitors stay at Kovalam, driving into

Thiruvananthapuram for sightseeing trips, rather than the other

way round. Sri Padmanabhaswamy temple in Thiruvananthapu-

ram, and Padmanabhapuram Palace, a short drive away, are im-

portant monuments.

Cochin, with a fine natural harbour, has been Kerala‘s center of

maritime trade for innumerable centuries. Along the harbour, rows

of antediluvian Chinese fishing nets indicate Kerala‘s trade with

China, just as buildings along the water‘s edge testify to the erst-

while presence of Dutch and Portuguese colonisers. Jewtown,

complete with an immaculately preserved synagogue, has a fla-

vour all its own, while Tripunathura, at the other end of the city,

has many traditional houses with central courtyards. Kerala‘s mul-

titude of faiths – Islam, Judaism, and a host of sects of Christianity

and Hinduism – all coexist harmoniously in a state that is known

for its Marxist inclinations! Kerala‘s traditions of dance forms,

which originated from temple worship, can be witnessed at regu-

larly held performances. Lecture-demonstrations of the most spec-

tacular of these – Kathakali – are held daily at many centres in Co-

chin. Teyyam, at once an act of worship and visual feast; temple

festivals complete with caparisoned elephants; Kalaripayata, the

indigenous art of self defence; all are a part of Kerala‘s remarkable

heritage of performing arts, and can be witnessed at various cen-

tres in Cochin and Thiruvananthapuram. A five hour drive from Co-

chin leads into thickly forested hills, past rubber and spice planta-

tions, and into southern India‘s tea growing district headquartered

at the charmingly old world Munnar. From Kottayam toAlleppey is

a world of palm fringed waterways, a route which is covered by

motor launch. Elderly sailboats, long barges transporting tons of

coconuts and tiny skiffs used to transport children to school are

common sights on these backwaters.

State Profile

Kerala

IndiaTourism Frankfurt Baseler Str. 48 / D-60329 Frankfurt

Tel: +49 (69) 242949-0 / Fax: +49 (69) 242949-77 www.india-tourism.com / info@india-tourism.com

MORE INFO AT KERALATOURISM.ORG

Alumkadavu, Kollam - Kerala

J u n e 2 0 1 1 - I n d i a - A u s t r i a N e w s l e t t e r | 1 2

India in Austria

Agenda

June 2011

Published by the commercial section at the Embassy of India, Vienna. www.indianembassy.at

Contact: marketingofficer@indianembassy.at

Talk-Series "Zu Gast bei Elisabeth Al-Himrani" No. 78 Mag. Ilja Steffelbauer, University Lecturer June 9, 2011, 19.00 Hochhaus Herrengasse 6-8, Stiege I, 10. Stock, Tür 57 Free Admission.

"4 Welten in einer Nacht" Palace Schallaburg

Performance by Radha Anjali , June 12, 2011, 19.00 Schloss Schallaburg More Info and Tickets at www.fabelhaft.at/p_4welten.htm

Seminar by Prof. Dr. Saskia Kersenboom in Zusammenarbeit mit dem Institut für Südasien-, Tibet- und Buddhismuskunde der Universität Wien

June 17, 2011, 19.00 More info at www.istb.univie.ac.at

Dance Workshop with Prof. Dr. Saskia Kersenboom June 17-19, 2011 Natya Mandir Studio, Börseplatz 3, 1010 Wien More Info and Tickets at http://www.natyamandir.at

The Ministry of Overseas Indian Affairs‗ (MOIA)

constant endeavour is to further strengthen the

strong bong between India and its diaspora,

address concerns and create an enabling

environment, whereby Overseas Indians engage

with, and benefit from, the opportunities in a

rapidly growing economy.

The Overseas Indian Facilitation Center (OIFC)

set up by the MOIA, currently runs activities such

as: query addressal on various issues faced by the

NRI‗s & PIO‗s, an online business networking

portal, projection of member States‗ projects, road

shows through investors interactive meets &

market place forums in India and overseas.

The MOIA can be reached online at the address

www.moia.gov.in . Overseas Indians can take

enjoy the services provided, get updates on the

latest news by subscribing to their e-newsletter

"India Connect", access publications of special

interest to NRI‗s and PIO‗s, take advantage of

online business networking, and more.

Overseas Indians

OIFC: India and its diaspora

Did you know?

Classic Indian Concert with the group "Sangeeta" Jun 14, 2011, 19.30 - Natya Mandir Studio Börseplatz 3, 1010 Wien More Info and Tickets at

austro.indian@hotmail.com or 0676 312 57 36

All Kinds of Indian Food

Intervention am Jausenexpress in Payerbach June 4 and 18, 2011 July 2, 16 and 23, 2011 Hauptstraße 1, 2650 Payerbach

More Info and Tickets at http://www.viertelfestival-noe.at

BOLLYWOOD@MQ- ImPulsTanz Festival Opening Jul 15, 2011, 21:15 MuseumsQuartier Main Yard - Bollywood star-Choreographer Terence Lewis

and his company open this years’ ImPulsTanz festival with “Jhoom“. The show combines typical Indian Bollywood pop-choreography with Indian contemporary dance, and deals with extremities within Lewis home country and the culture industry, in which he is a star himself.Free Entrance!

On the celebration of Rabindranath Tagore‗s 150th birth anniversary,

the Reserve Bank of India launched the 150 Rupee

coin.

India's longest tunnel will be ready by 2012. The rail link between Kashmir valley and the rest of the country will be

completed by December 2012 once India's longest tunnel at 11 km — connecting Qazigund with Banihal — is constructed within

a year.

The tunnel, one of the world's largest and deepest, will pierce through the Pir Panjal range below snowline, which stands like a

wall between the Valley and Jammu.

Railways is using state-of-the-art Austrian tunnelling method to construct T80 that involves integration of surrounding

soil formations into a ring-like support structure.