Asia Press Agency

Tag: infrastructure

  • PM Modi Inaugurates Development Projects in Jajpur

    PM Modi Inaugurates Development Projects in Jajpur

    On Tuesday, March 5, Prime Minister Narendra Modi marked a significant milestone by inaugurating and laying the foundation stone of multiple development projects worth ₹19,600 crore at Chandikhole in Odisha’s Jajpur district. The projects encompass various sectors such as oil and gas, railways, road transport, highways, and atomic energy, signifying a concerted effort towards bolstering infrastructure and promoting economic growth in the region.

     

    During the inauguration ceremony, PM Modi underscored the government’s commitment to expeditiously completing projects, contrasting it with the sluggish pace observed during previous administrations. He emphasized that projects that had languished for years under previous governments were now being swiftly executed, showcasing a paradigm shift in the country’s work culture over the past decade.

     

    “The earlier governments were not interested in completing the projects on time. Whereas our government tries to rapidly complete the projects. After 2014, those projects that were stuck, and lost in the country were completed,” PM Modi stated, highlighting the administration’s proactive approach towards project implementation.

     

    Addressing a massive gathering, PM Modi noted the overwhelming support from the people, interpreting it as a harbinger of the Bharatiya Janata Party’s (BJP) resolve to secure a resounding victory in the upcoming Lok Sabha elections. He expressed confidence in the electorate’s aspiration for transformative change, encapsulating it in the slogan “Abki Baar 400 Paar,” symbolizing the party’s ambition to surpass the 400-seat mark.

     

    Among the key projects inaugurated during the event was the Indian Oil Corporation’s Mono Ethylene Glycol project in Paradip Refinery, aimed at reducing the country’s import dependency. Additionally, the inauguration of the CONCOR container depot in Kalinga Nagar is poised to bolster both domestic and international trade, fostering economic growth and employment generation.

     

    Furthermore, PM Modi dedicated several highway projects to the nation, including the four-laning of the Singhara-Binjabahal section of NH-49, Binjabahal-Tileibani section of NH-49, Balasore-Jharpokharia section of NH-18, and Tangi-Bhubaneswar section of NH-16. These initiatives are expected to enhance connectivity, facilitate smoother transportation of goods and passengers, and spur regional development.

     

    Highlighting the significance of rail infrastructure, PM Modi inaugurated the 162-km Bansapani-Daitari-Tomka-Jakhapura railway line, which is poised to augment the transportation capacity and facilitate the efficient movement of iron and manganese ore from Keonjhar district to nearby ports and steel plants. This strategic railway line is anticipated to catalyze economic growth and industrial development in the region.

     

    Additionally, the foundation stone was laid for various projects in Jajpur aimed at enhancing rail infrastructure and maintenance facilities, including the eight-laning of the Chandikhole-Paradip section, Electric Loco Periodical Overhauling Workshop at Narla, Wagon Periodical Overhauling Workshop at Kantabanji, and the upgradation and augmentation of maintenance facilities at Baghuapal. These initiatives underscore the government’s commitment to modernizing rail infrastructure and ensuring operational efficiency.

     

    Earlier in the day, PM Modi paid homage to former Odisha chief minister Biju Patnaik on his birth anniversary, lauding his visionary leadership and unwavering commitment to development. The prime minister expressed his gratitude for Biju Patnaik’s enduring legacy, which continues to inspire generations and drive progress in the state.

     

    PM Modi’s visit to Chandikhole in Odisha’s Jajpur district symbolizes the government’s steadfast commitment to advancing infrastructure development and fostering economic growth across the country. The inauguration of these transformative projects underscores the administration’s proactive approach towards addressing key challenges and realizing the vision of a New India characterized by prosperity, innovation, and inclusive development.

  • PM to Inaugurate Development Projects Worth ₹7,300 Crores

    PM to Inaugurate Development Projects Worth ₹7,300 Crores

    Prime Minister Narendra Modi’s visit to Madhya Pradesh on Sunday marks a significant milestone in the state’s development journey, as he inaugurates and lays the foundation stone for multiple projects worth ₹7,300 crores. With a focus on benefiting the tribal population of the region, these initiatives aim to uplift communities and enhance their quality of life.

     

    Among the key highlights of the visit is the disbursement of monthly installments of Aahar Anudan under the Aahar Anudan Yojna to approximately two lakh women beneficiaries. This scheme, providing ₹1,500 per month for nutritious food, particularly targets women from especially backward tribes in Madhya Pradesh, ensuring their well-being and nutritional security.

     

    Furthermore, Prime Minister Modi will distribute 1.75 lakh adhikar abhilekh (record of rights) to beneficiaries of the SVAMITVA Scheme, a significant step towards providing documentary evidence of land ownership rights. This initiative empowers people by granting them formal recognition and legal validation of their land ownership, thereby enhancing their socio-economic status and facilitating access to various government schemes and services.

     

    Another noteworthy aspect of the visit is the foundation stone laying of the ‘CM Rise School’ in Jhabua, which underscores the government’s commitment to providing quality education equipped with modern facilities. Integrating technology to offer smart classes and e-library resources, this initiative aims to empower students with the skills and knowledge necessary for their holistic development and future success.

     

    In addition to educational endeavors, Prime Minister Modi will inaugurate projects aimed at strengthening water supply and provisioning of drinking water across Madhya Pradesh. The ‘Talavada Project’ stands out as a significant drinking water supply scheme benefiting over a thousand villages in Dhar and Ratlam districts, addressing a critical need for safe and accessible drinking water.

     

    Furthermore, urban water supply schemes under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 will provide potable water to more than 50 thousand households in various urban areas of Madhya Pradesh, contributing to improved sanitation and overall public health.

     

    The ‘Nal Jal Yojna’ initiative is set to benefit 50 Gram Panchayats in Jhabua, facilitating tap water access for approximately 11,000 households and significantly improving the quality of life for residents. These water-related projects reflect the government’s commitment to ensuring equitable access to essential services and infrastructure for all citizens.

     

    Additionally, Prime Minister Modi will inaugurate several rail projects, including the redevelopment of Ratlam and Meghnagar railway stations under the Amrit Bharat station scheme. Furthermore, railway line doubling and grade separator projects demonstrate the government’s efforts to enhance connectivity and modernize transportation infrastructure across the state.

     

    The visit also encompasses the dedication of road development projects worth over ₹3,275 crore, including the four-laning of key highway sections and the improvement of road connectivity in Madhya Pradesh. These infrastructure investments are poised to boost economic growth, facilitate trade and commerce, and enhance overall connectivity within the state.

     

    Overall, Prime Minister Narendra Modi’s visit to Madhya Pradesh symbolizes a significant stride towards holistic development and prosperity, reaffirming the government’s commitment to uplifting communities, fostering inclusive growth, and building a brighter future for the people of the state.

  • Cabinet’s Approval of Six Railway Multi-Tracking Projects

    Cabinet’s Approval of Six Railway Multi-Tracking Projects

    Prime Minister Narendra Modi has welcomed the Cabinet’s approval of six multi-tracking projects for the Indian Railways, highlighting their significance in enhancing transportation efficiency and alleviating congestion on busy railway networks. Taking to social media platform X (formerly Twitter), PM Modi expressed optimism about the transformative impact of these projects on infrastructure, commerce, and connectivity.

     

    In a tweet, PM Modi remarked, “Today’s Cabinet decision pertaining to the Railways sector will boost infrastructure, reduce congestion on busy routes and improve commerce as well as connectivity.” The Prime Minister’s endorsement underscores the government’s commitment to bolstering railway infrastructure to meet the evolving demands of transportation and commerce.

     

    Earlier in the day, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Modi, greenlit the railway transportation projects spanning six states. These projects, aimed at enhancing transportation efficiency, received a total capital outlay of Rs 12,343 crore. The states set to benefit from these initiatives include Rajasthan, Gujarat, Telangana, Andhra Pradesh, Assam, and Nagaland.

     

    The approved multi-tracking projects are poised to significantly expand the existing railway network by 1020 kilometers, fostering improved rail connectivity and economic growth in the respective regions. Additionally, these projects are projected to generate employment opportunities, providing approximately 3 crore man-days of work to the people residing in the beneficiary states.

     

    The proposed routes encompass diverse regions, including the Ajmer-Chanderiya and Jaipur-Sawai Madhopur stretches in Rajasthan, the Luni-Samdari-Bhildi corridor in Gujarat and Rajasthan, the Agthori-Kamakhya link with a new Rail cum Road Bridge in Assam, the Lumding-Furkating route in Assam and Nagaland, and the Motumari-Vishnupuram line with Rail over Rail at Motumari in Telangana & Andhra Pradesh.

     

    According to an official statement, these projects align with the PM Gati Shakti National Master Plan for multi-modal connectivity, which emphasizes integrated planning to facilitate seamless movement of people, goods, and services. The multi-tracking initiatives represent a strategic step towards achieving enhanced connectivity and operational efficiency in the Indian Railways network.

     

    With the Cabinet’s nod, these railway projects are poised to play a pivotal role in driving economic development, facilitating trade, and fostering regional integration across the six states. As India continues to invest in enhancing its transportation infrastructure, such initiatives are integral to realizing the vision of a modern and interconnected railway network capable of meeting the nation’s growing needs.

  • Pragati Maidan Tunnel Requires Overhaul Due to Cracks

    Pragati Maidan Tunnel Requires Overhaul Due to Cracks

    The completion delay and negligence in maintaining the Pragati Maidan tunnel have resulted in significant cracks, necessitating a complete overhaul, according to a senior official at Delhi’s Public Works Department (PWD), as reported by The Hindu on February 6.

     

    The official expressed concerns about the safety of commuters due to the condition of the tunnel, emphasizing that repairs cannot be carried out without a major revamp. Originally completed for ₹777 crore, the Pragati Maidan tunnel was inaugurated by Prime Minister Narendra Modi in June 2022.

     

    Designed to improve connectivity between central Delhi, eastern parts of the city, and satellite towns like Noida and Ghaziabad, the 1.3 km-long tunnel features five underpasses linked to the Integrated Transit Corridor Project.

     

    However, in 2023, the tunnel experienced multiple closures due to waterlogging issues, particularly during moderate to heavy rainfall, noted another official.

     

    Despite repeated communications to the maintaining authority, Larsen and Toubro (L&T), over the past two months, no repairs were undertaken, as per The Hindu’s report.

     

    Consequently, the PWD issued a show-cause notice to L&T on February 3, demanding a deposit of a “minimum token amount of ₹500 crore” and instructing the firm to initiate repair work and rectify the defective design.

     

    The notice highlighted L&T’s failure to complete the tunnel construction on time. Although the project tender was floated in 2017 with an expected completion date in 2019, it was not inaugurated until 2022.

     

    The PWD underscored that concessions in the timeline were granted with the expectation that construction quality would not be compromised.

     

    Furthermore, the PWD attributed the majority of the damage to defects in the design of Underpass No.5 near Bhairon Marg.

     

    L&T was given until February 18 to respond to the notice and justify why action should not be taken against it for financial and reputational losses.

     

    According to the report citing the PWD notice, the company is liable under civil and criminal laws for neglecting to repair and maintain a construction intended to have a design life of 100 years or more.

     

    In response, an L&T spokesperson stated that the company has filed a counterclaim of ₹500 crore against the PWD.

  • Development Projects Worth ₹19,100 Crore in Bulandshahr

    Development Projects Worth ₹19,100 Crore in Bulandshahr

    Prime Minister Narendra Modi is set to inaugurate a series of development projects worth over ₹19,100 crore during his visit to Bulandshahr, Uttar Pradesh. The Prime Minister’s Office (PMO) has announced that the projects include significant infrastructure enhancements, railway connectivity improvements, and the inauguration of an Integrated Industrial Township at Greater Noida (IITGN). Additionally, PM Modi will also welcome French President Emmanuel Macron in Jaipur on January 25.

     

    In Bulandshahr, PM Modi is expected to dedicate to the nation the 173 km long double line electrified section between New Khurja and New Rewari on the Dedicated Freight Corridor (DFC). The inauguration will include flagging off goods trains from the two stations, marking a crucial milestone in improving rail connectivity between the national capital and Southern Western and Eastern India.

     

    The Prime Minister will also launch the fourth line connecting the Mathura-Palwal section and the Chipiyana Buzurg-Dadri section, further enhancing railway connectivity.

     

    Several road development projects will be inaugurated, including the Aligarh to Bhadwas four-laning work Package-1, part of the Aligarh-Kanpur Section of NH-34. The widening of the Meerut to Karnal border via Shamli (NH-709A) and the four-laning of the Shamli-Muzaffarnagar section of NH-709 AD Package-II are also part of the infrastructure initiatives.

     

    Indian Oil’s Tundla-Gawaria Pipeline will be inaugurated, facilitating the transportation of petroleum products from Tundla to Gawaria T-Point of the Barauni-Kanpur Pipeline. The project includes pumping facilities at Mathura and Tundla and delivery facilities at Tundla, Lucknow, and Kanpur.

     

    PM Modi will also inaugurate the ‘Integrated Industrial Township at Greater Noida’ (IITGN), contributing to the industrial development of the region.

     

    In addition to the infrastructure projects, the Prime Minister will inaugurate the renovated Mathura sewerage scheme, which includes the construction of a sewage treatment plant (STP) at an estimated cost of about ₹460 crore.

     

    Meanwhile, the visit to Jaipur on January 25 will see PM Modi welcoming French President Emmanuel Macron. The visit is part of the 25th-anniversary celebrations of the India-France Strategic Partnership. The leaders are expected to hold in-depth bilateral talks during their visit to the Pink City.

     

    The significance of these projects in Bulandshahr lies in the improvement of transportation and industrial infrastructure, contributing to the overall development of the region. The inauguration of the Integrated Industrial Township at Greater Noida aligns with the government’s focus on boosting industrial growth and creating employment opportunities. The visit underscores the commitment to strengthen diplomatic ties with France, marking the 25th anniversary of the strategic partnership between the two nations.

     

    As PM Modi continues to dedicate significant projects, the developmental initiatives are expected to have a far-reaching impact on the economic landscape of Uttar Pradesh and foster collaboration with international partners.

  • PM Modi to Inaugurate ₹7,500 Crore Development Projects

    PM Modi to Inaugurate ₹7,500 Crore Development Projects

    Prime Minister Narendra Modi is scheduled to inaugurate a significant set of development projects in Maharashtra on October 26, with a total investment of approximately ₹7,500 crore. Subsequently, he will kick off the National Games in Goa, featuring more than 10,000 athletes competing in over 43 sports disciplines. These initiatives underscore the government’s commitment to infrastructure development, agriculture, and sports in the country.

     

    In Maharashtra, Prime Minister Modi will inaugurate the left bank canal network of the Nilwande Dam, an extensive canal system stretching about 85 kilometers. This project is expected to bring significant benefits to 182 villages by providing much-needed irrigation and water resources for agriculture, thereby contributing to rural development and livelihood improvement.

     

    Additionally, Modi will launch the ‘Namo Shetkari Mahasanman Nidhi Yojana,’ which is set to benefit over 86 lakh beneficiaries of the Pradhan Mantri Kisan Samman Nidhi Yojana in Maharashtra. This initiative will provide these farmers with an additional ₹6,000 per year, offering crucial financial support to bolster their agricultural activities.

     

    The Prime Minister will also dedicate various other development projects during his visit to Maharashtra. These include the inauguration of an Ayush Hospital at the Ahmednagar Civil Hospital, which will enhance healthcare services and promote traditional Ayurvedic and holistic healing methods. This move reflects the government’s commitment to providing accessible healthcare options to its citizens.

     

    Infrastructure development is also a key focus of these projects. Prime Minister Modi will launch the electrification of the Kurduwadi-Latur Road railway section, further improving connectivity and ensuring a smoother travel experience for passengers in the region. In addition, he will inaugurate the third and fourth railway lines connecting Jalgaon to Bhusaval, which will enhance rail transportation and contribute to economic growth.

     

    On the road infrastructure front, the Prime Minister will inaugurate the four-lane expansion of the Sangli to Borgaon section of NH-166. Improved road connectivity is crucial for economic development and mobility within the state. Furthermore, additional facilities will be inaugurated at the Manmad terminal of the Indian Oil Corporation Limited, contributing to the efficient storage and distribution of petroleum products.

     

    Prime Minister Modi’s visit to Maharashtra will also include a strong emphasis on healthcare. He will lay the foundation stone for the maternal and child health wing at the Ahmednagar Civil Hospital, underscoring the government’s commitment to maternal and child welfare.

     

    Moreover, the Prime Minister will distribute Ayushman cards and Svamitva cards to beneficiaries, aligning with the government’s focus on enhancing healthcare accessibility and promoting property rights for citizens.

     

    This multi-faceted visit showcases the government’s dedication to promoting development, whether it’s through irrigation and agriculture, healthcare, transportation infrastructure, or other key sectors. It underlines the commitment to addressing the diverse needs of the population and driving progress in the country.

     

    Furthermore, on the same day, Prime Minister Modi will initiate the National Games in Goa, providing a platform for over 10,000 athletes from across the country to showcase their talents in more than 43 sports disciplines. The National Games serve as an essential avenue for nurturing and celebrating the nation’s sporting prowess and promoting a culture of physical fitness and competition.

  • India Reiterates Opposition to China’s Belt and Road Initiative

    India Reiterates Opposition to China’s Belt and Road Initiative

    India has reaffirmed its opposition to China’s Belt and Road Initiative (BRI) amidst recent developments in the Maldives. The Indian Ministry of External Affairs spokesperson, Arindam Bagchi, emphasized that India’s cooperation with the Maldives is based on jointly addressing shared challenges and priorities.

     

    These developments follow the Maldives’ president-elect, Mohamed Muizzu, expressing support for China’s BRI. Bagchi reiterated India’s well-established stance on the BRI, which includes concerns about the program’s “lack of respect for our sovereignty and territorial integrity.”

     

    India did not receive an invitation to this year’s Belt and Road Forum hosted by China. The key reason for India’s absence from the BRI is its objections to the China-Pakistan Economic Corridor (CPEC), a significant component of the initiative, which runs through Pakistan-occupied Kashmir. India believes the program does not offer a level playing field for non-Chinese companies.

     

    Bagchi pointed out that parts of the CPEC pass through territories in “illegal occupation of Pakistan,” which is viewed as a violation of India’s sovereignty and territorial integrity. India’s concerns about the BRI have remained consistent since its statement in May 2017 during the first Belt and Road Forum.

     

    The 10th-anniversary Belt and Road Forum was attended by Russian President Vladimir Putin, who had skipped the G20 Summit hosted by India. However, Bagchi emphasized that India does not wish to link G20 participation with other matters, highlighting that India had invited all G20 members to the summit in New Delhi.

     

    In response to questions about the Maldives’ president-elect endorsing the BRI and plans to remove Indian military personnel from the archipelago, Bagchi emphasized India’s contributions to the Maldives in humanitarian aid, disaster relief, medical evacuations, and combating illegal maritime activities. Over the past five years, Indian personnel have carried out more than 500 medical evacuations, saving Maldivian lives. India has conducted multifaceted missions to safeguard maritime security, underscoring its commitment to the partnership with the Maldives, particularly in areas of humanitarian assistance, welfare, and disaster relief.

  • Cabinet Committee Approves Phase-II of Green Energy Corridor

    Cabinet Committee Approves Phase-II of Green Energy Corridor

    The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has given the green light to Phase-II of the Green Energy Corridor, facilitating a 13-gigawatt renewable energy project in Ladakh. The ambitious project, with an estimated cost of ₹20,773.70 crore, aims to be completed by the fiscal year 2029-30. The central government is providing 40% of the project’s total cost, equivalent to ₹8,309.48 crore.

     

    This initiative aligns with Prime Minister Modi’s announcement during his Independence Day speech, where he unveiled plans to establish a 7.5-gigawatt Solar Park in Ladakh. The Ministry of New and Renewable Energy formulated a comprehensive strategy to implement a 13-gigawatt renewable energy generation capacity in Ladakh, complemented by a 12-gigawatt-hour Battery Energy Storage System in Pang, Ladakh.

     

    The Power Grid Corporation will serve as the implementing agency for the project, employing advanced technology such as Voltage Source Converter-based High Voltage Direct Current (HVDC) systems and Extra High Voltage Alternating Current technology to bring this project to fruition. The transmission line for transporting this generated power will traverse Himachal Pradesh and Punjab before reaching Kaithal in Haryana, where it will integrate with the National Grid. An interconnection is also planned, linking this project in Leh to the existing Ladakh grid, ensuring a reliable power supply to Ladakh.

     

    “It will also be connected to Leh-Alusteng-Srinagar line to provide power to Jammu & Kashmir. The project will entail setting up of 713 km transmission lines (including 480 km HVDC line) and 5 GW capacity of HVDC terminal each at Pang (Ladakh) and Kaithal (Haryana),” the government release noted.

     

    This project is in line with India’s commitment to achieve the target of 500 gigawatts of installed electricity capacity from non-fossil fuels by 2030. Additionally, it contributes to enhancing the country’s long-term energy security, promoting ecologically sustainable growth by reducing carbon emissions. Furthermore, it is anticipated to generate a significant number of direct and indirect employment opportunities for both skilled and unskilled personnel, particularly in the Ladakh region.

     

    In addition to this project, Phase-II of the Intra-State Transmission System Green Energy Corridor is already in progress in Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh, aimed at grid integration and power evacuation.

  • Punjab Government Appoints Security Guards for Schools

    Punjab Government Appoints Security Guards for Schools

    In a commendable move aimed at bolstering the safety and security of students, the Punjab government has appointed 1,378 security guards for all senior secondary government schools in the state. Education Minister Harjot Singh Bains made this announcement, emphasizing the government’s commitment to student welfare during a program held at a local government school.

     

    The newly appointed security guards will play a pivotal role in ensuring the safety of students and preventing them from leaving the school premises during designated study hours. Minister Bains revealed that these security personnel would be stationed at the entry and exit gates of the schools. Their responsibilities include monitoring the movements of students, ensuring that no student leaves the premises during school hours without the principal’s permission, and maintaining records of school visitors.

     

    To ensure comprehensive coverage, Minister Bains stated that all senior secondary schools with a student population exceeding 500 would have security guards on duty. This measure aims to create a secure environment conducive to effective learning.

     

    Furthermore, the Punjab government has embarked on an ambitious mission to revamp the education sector, focusing on upgrading infrastructure in government schools. As part of this initiative, an allocation of ₹250 crore has been earmarked to construct boundary walls for all government schools. These walls not only enhance the security of school premises but also provide a physical boundary that defines the school’s territory.

     

    In addition to the appointment of security guards and infrastructure improvements, the government is also taking steps to ensure the proper maintenance of school facilities. To this end, nearly 2,000 campus managers are being appointed. These dedicated individuals will be responsible for overseeing the upkeep and maintenance of school buildings, ensuring that they remain in good condition to provide a conducive learning environment for students.

     

    Furthermore, the government is emphasizing cleanliness in schools as part of its efforts to enhance the overall educational experience. For the first time, funds have been allocated to schools specifically for cleanliness purposes. This financial support will help schools maintain high standards of hygiene and sanitation, promoting a healthy and pleasant learning environment.

     

    Minister Bains also highlighted another significant development—a financial incentive for schools based on their student population. The government will provide schools with monthly financial assistance ranging from ₹3,000 to ₹50,000, depending on the number of students enrolled. This initiative aims to address the specific needs of each school and ensure that adequate resources are available for effective teaching and learning.

     

    Punjab government’s proactive measures, including the appointment of security guards, infrastructure upgrades, campus managers, and financial incentives, underscore its commitment to enhancing the quality of education and student well-being in government schools. These initiatives are expected to have a positive and lasting impact on the education sector in the state, benefiting both students and educators.

  • SAIL Plans ₹5,500 Crore Investment to Expand Capacity

    SAIL Plans ₹5,500 Crore Investment to Expand Capacity

    Steel Authority of India Ltd (SAIL), the country’s largest steel manufacturer, is planning to invest ₹5,500 crore during the current fiscal year to expand its steel production capacity. This investment is part of SAIL’s ambitious ₹1 trillion investment plan aimed at boosting its annual steel production capacity from the current 20.6 million tonnes (mt) to 35 mt by 2030-31.

     

    According to Amarendu Prakash, Chairman of SAIL, the company’s investments for the fiscal year will focus on sustaining existing projects and de-bottlenecking efforts. Last year, SAIL invested ₹8,000 crore for similar expansion efforts, and this year’s investment is expected to be at a similar level.

     

    SAIL’s long-term goal is to reach an annual capacity of around 35 mt of crude steel by 2030-31, requiring substantial investments in expanding and modernizing its facilities. The company aims to invest approximately ₹1,10,000 crore to achieve this ambitious target, as outlined in a government statement in August 2022.

     

    Part of the ₹5,500 crore investment will also go toward augmenting existing facilities. Additionally, SAIL is exploring options to double its capacity at the Benga coal mine in Mozambique, increasing it from 2 mt to 4 mt, primarily through debt financing.

     

    SAIL’s plans for capital exploration and raising debt for the Benga coal mine expansion are strategic decisions. The International Coal Ventures Pvt. Ltd (ICVL), a joint venture involving SAIL, is responsible for acquiring overseas coal mines and assets. ICVL, along with partners such as Rashtriya Ispat Nigam Ltd, NMDC Ltd, Coal India Ltd, and NTPC Ltd, is involved in sourcing capital and managing the coal mine project.

     

    The steel industry is currently grappling with rising coking coal prices, driven by mine closures in Australia. Indian companies are stockpiling coal to meet increased demand after the monsoon season. In response to these challenges, SAIL is actively seeking to secure 300,000 tonnes of coal through Russian imports, marking its second coal import from Russia this year.

     

    As of September 30, 2023, Australian premium hard coking coal prices stood at $333 per tonne FOB (free on board) and $349 per tonne CNF (cost, no insurance, and freight), showing a 3% increase over the previous week. These price hikes are due to growing buyer interest and limited supplies.

     

    SAIL’s efforts to import more affordable coal from Russia are aimed at cushioning the impact of surging coal prices on its operations. As the steel industry continues to experience demand growth, securing a stable supply of key raw materials like coal becomes crucial for the company’s production and expansion plans.

     

    SAIL’s substantial investments in capacity expansion and coal procurement reflect its commitment to meeting the rising demand for steel in India while addressing the challenges posed by global commodity price fluctuations.

  • REC Ltd. and Punjab National Bank Partner to Fund Projects

    REC Ltd. and Punjab National Bank Partner to Fund Projects

    In a significant move to support India’s power and infrastructure sectors, REC Ltd. (Rural Electrification Corporation Ltd.) has entered into a memorandum of understanding (MoU) with Punjab National Bank (PNB) to explore opportunities for funding projects under a consortium arrangement.

     

    According to a statement from REC, the two entities, REC and PNB, plan to collaborate on co-financing loans amounting to ₹55,000 crore over the next three years. This partnership aims to provide substantial financial support to projects in the power sector and the infrastructure & logistics sector.

     

    REC, a Maharatna Non-Banking Financial Company (NBFC), has diversified its portfolio in FY23 to encompass infrastructure and logistics projects. At the company’s annual general meeting in May, Vivek Kumar Dewangan, Chairman, and Managing Director of REC, highlighted the power ministry’s approval for the company to finance up to 33% of its outstanding loan book in this sector.

     

    Dewangan stated, “During the first year itself, we have sanctioned more than ₹85,700 crore towards various projects spanning from metro, ports, airports, oil refineries, highways, steel infrastructure to healthcare, educational institutions, and also in sectors of IT infrastructure/fiber optics, etc. This constitutes about 32% of the overall sanctions of the company in the last financial year.”

     

    REC traditionally provides long-term loans and financial products for the power-infrastructure sector, covering areas such as generation, transmission, distribution, renewable energy, and emerging technologies like electric vehicles, battery storage, and green hydrogen. More recently, REC has expanded its focus to the non-power infrastructure sector, with its loan book currently standing at over ₹4.54 trillion.

     

    As India undergoes an energy transition, REC is gearing up to increase its loans for green projects. The NBFC aims to expand its loan portfolio for green initiatives to ₹3 trillion by 2030. Dewangan emphasized REC’s commitment to renewable energy initiatives encompassing solar, wind, hybrid, and e-mobility projects, as well as emerging areas like green hydrogen, green ammonia projects, round-the-clock projects, and ethanol manufacturing.

     

    In April, REC successfully raised $1.15 billion, securing loans with a 5-year tenor benchmarked to Overnight SOFR (Secured Overnight Financing Rate), the benchmark rate for USD-denominated loans. The proceeds from this facility will also be directed towards funding power, infrastructure, and logistics sector projects in line with the guidelines of the Reserve Bank of India for External Commercial Borrowings (ECB).

     

    On the stock market, REC shares on the BSE closed at ₹267.30 per share, marking a 1.15% decrease from the previous close. PNB shares on the BSE closed at ₹79.34, down 1.11% from their previous closing price.

     

    This strategic partnership between REC Ltd. and Punjab National Bank signifies a strong commitment to supporting the growth and development of India’s vital power and infrastructure sectors, ultimately contributing to the nation’s progress and economic stability.