You are here: Home » Economy & Policy » Features
Business Standard

Special report: Stalled projects

A series on mega projects that have faced bottlenecks and which the Cabinet Committee on Investments has to clear

BS Reporters  |  Mumbai 

delays may push Navi Mumbai airport take-off to 2017

First phase of the airport was scheduled to start by 2015 cost escalation to take toll, say experts


By Aneesh Phadnis

Due to inordinate delays in and securing environment clearance, among others, the second airport in Mumbai, the Navi Mumbai International Airport ( NMIA), may not take off before 2017, according to experts. The first phase of the airport was supposed to be operational by end-2014 or early 2015.

More than the delays, it will be cost escalation that will hurt the project, said industry observers. The first phase of the project is pegged at about Rs 9,000 crore. Any further delays could push up the costs, experts warned.

While the project has got environment clearance — which took a good three years — it is still grappling with issues related to

Click here for more

**************************************************

Private equity firms' money stuck in Asian Genco projects

Singapore-based firm's projects here stuck in diverse controversies, cost overruns

By Dev Chatterjee

In May 2010, Singapore-based Asian Genco Pte Ltd announced it had secured investments worth $425 million from a clutch of marquee private equity (PE) funds, to invest in the Indian sector.

It was a big surprise. The funds included General Atlantic, Morgan Stanley, Norwest Partners, Everstone and Goldman Sachs, and not many had heard of Asian Genco.

The financing by the PE biggies was the biggest equity transaction in the sector till 2010 and touted as endorsing the fundamentals of the sector in India. Today, all the marquee investors are wondering at the fate of their investments -- most projects of Asian Genco in India have been delayed considerably and face massive cost overruns.

Click here for more

**************************************************

NTPC-RIL dispute on Gujarat plants stuck in HC

The Cabinet Committee on Investment is to expedite clearance and implementation of projects stalled or delayed.

For the past 29 months, the court case between NTPC and Reliance Industries (RIL) on two gas-based plants in Gujarat has not come for hearing at the high court here.

NTPC took RIL to court in December 2005, after the latter would not sign a gas sale and purchase agreement ( GSPA) because of a dispute over a clause relating to unlimited liability. It contends expansion of its Kawas and Gandhar olants have been delayed indefinitely, thanks to RIL.

Click here for more

**************************************************

Vedanta Aluminium's trials with regulatory approvals continue

By Abhineet Kumar

Vedanta Aluminium’s refinery in Lanjigarh, Odisha, which was shut earlier this month due to unavailability of bauxite

Early this month, billionaire Anil Agarwal-promoted Vedanta Group was forced to shut its one million tonnes per annum alumina refinery at Lanjigarh in Odisha’s Kalahandi district due to unavailability of bauxite, 15 years after state-owned Orissa Mining Corporation signed over its rights to mine bauxite in the Niyamgiri Hills to the group firm.

The group has invested Rs 30,000 crore in six years to set up the aluminium business under Vedanta Aluminium, believing it would be able to get approvals for captive bauxite mines by the time the facilities get commissioned. Eventually, it commissioned a 1 mtpa refiner, a 0.5 mtpa smelter and a 1,215 Mw captive plant, but approval for bauxite mining did not come.

Click here for more

**************************************************

Trouble brews for Utkal alumina project as locals raise new demands

By Hrusikesh Mohanty and Dillip Satapathy

Even after 20 years and investments of over Rs 5,000 crore, the 1.5-million-tonne alumina refinery project of Utkal Alumina International Ltd (UAIL), a subsidiary of the Kumar Mangalam Birla’s Hindalco, is yet to see the light of the day.

As the company gears up to give a final push to complete the refinery work by the first quarter of 2013, renewed call of the project opponents to intensify their stir against the projects signals fresh troubles ahead for the company.

Click here to read more

First Published: Sun, December 23 2012. 03:33 IST
RECOMMENDED FOR YOU