re view TUESDAY | 24 JANUARY 2012 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII EASTERN BUSINESS 19 i nfrastructure & i ndustry i nclusive growth employment agriculture culture biz news Which are the sectors that have con- tributed in real terms to the economic growth in eastern India? Besides infrastructure and the mining industry, the growing education sector has really contributed in a big way to the respective state’s GSDP in the east. Can inclusive growth in the east give the much-needed boost to the edu- cation sector in Odisha? The strategic location of Odisha, resem- blance of culture, food, cost of living and quality education to some developed states are few major factors which are going to provide the boost. How good is the placement scenario? Placement depends on the market senti- ment. Since the IT industry is doing well now, we expect better IT recruitment. If this does not do well then recruitment for other core engineering branches will go up. How well poised is your college to make a mark in the region? Our college has different exclusive engi- neering branches like Marine Engineer- ing, Nautical Science and Automation Engineering. These programmes provide good employment opportunities. The col- lege has established different centres of excellence like Bosch-Rexroth for automa- tion, IBM for IT education and many more. Your prescriptions to handle imped- iments … To maintain the growth in the education sector there should be at least one control- ling authority and the fee structure of each college for different educational pro- grammes should be market driven, so that the institutions with quality can excel. Rout is chairman, CV Raman College of Engineering Engineering Development T H E S E C T O R S which have been unleashing the untapped potential and contributing to industrialisation in the eastern region are primarily natural resources in mining, steel making, power generation and aluminium industries. Human resources based industries– IT/ITeS sector, telecom, communication, education, research and most important- ly the service sector including banks, financial institutions, hospitality and tourism industry along with the real estate and logistic industries have played a very important role. Like the rest of east India, Odisha is abundant in natural resources, forests, quality manpower as well as a rich cultur- al heritage. I have a firm belief that, a well balanced development programme ensur- ing inclusive growth through provision of physical infrastructure and service deliv- ery will result in a meaningful economic growth of the state. This can be achieved only if the infrastructure deficit can be overcome and adequate investment takes place to support higher growth and an improved quality of life for both urban and rural communities.Infrastructure shall play the role of enabler for the industrialisation of the state. We need to double our investment in infrastructure in terms of industrial corridors, free- highways, port connectivities, higher capacity power transmission corridors, creating satellite and industrial town- ships, dedicated industrial investment regions etc. Jena is CMD, IAS, IDCO Paving the Path Ahead D U R I N G 2011, OPGC has added a couple of feathers in its cap by imple- menting market-based remuneration for executives tied to market-based service conditions, for the first time within pub- lic sector enterprises. It is also the first state PSU to adopt Integrity Pact by signing MoU with Transparency International India. We expect 2012 to be a great year for OPGC, anticipating completion of sever- al milestones in our expansion project clearing the path for 1320 MW capacity addition. Blended with strong support and guidance from the government of Odisha and professionalism and values from AES Corporation, OPGC is proud to stride towards its vision of being a world- class power utility. OPGC recently signed an MoU with Transparency International India com- mitting itself, its suppliers and contrac- tors for adoption of Integrity Pact. With this initiative, Odisha has become the first state and OPGC the first PSU to join hands with TII to pioneer transparency and fairness in its operation. The proposed capacity at the existing plant site in Jharsuguda district of Odisha has made significant progress. The estimated project cost is ` 10332 crore including power plant, railway line and coal mine. Venkatachalam K, MD, IAS, OPGC A Brighter Vision Do you feel inclusive growth rate in the east can give the much-needed boost to industrial revival? With every government we hope for the best and we are hopeful that West Bengal will experience a lot of positive changes under the present lead- ership providing boost to indus- trial revival. What is the market sce- nario for the electronic securi- ty and safety industry? Our industry is presently growing at a 20 per cent per annum growth rate, which is con- sidered to be good. The east has a 15 per cent market share with plenty of scope for growth. Your prescriptions to han- dle impediments that are deterring growth in your industry… Security and safety needs should be taken very seriously and industrial/non- industrial/institutional con- sumer awareness is very impor- tant. At the same time govern- ment support towards this indus- try is crucial. About 95 per cent of our products are imported. High custom tariff and the cur- rent tax structure are the major obstructions to growth. What should be the govern- ment’s role in order to aid your industry in reaching out to the people with security plans and safety devices? The government should chalk out massive awareness pro- grammes, strong legislation and well-defined security and safety standards. Annual security and safety audit by independent authorised agency should be made mandatory. In what ways have you tried to bridge the gap between demand and supply? Since inception in 1995, we being pioneers in this field have constantly updated our products with time. There is a huge short- age of technical manpower and technical support. To overcome this we are planning to set up a training institute called I-SAFE (Institute of Security and Fire Engineering). Bhutoria is MD, Vicom Security Private Ltd Making a Difference Editorial Coordinator : Kalyan Parbat and Aditi Guha Editorial Contributors: Rakhi Mazumdar, Anuradha Himatsingka, Tamal Sengupta, Ashoke Nag, Atmadip Ray, Writankar Mukherjee, Sutanuka Ghosal, Debjoy Sengupta, Sreeradha D Basu, Ashok Mishra, Bikash Singh and Nageshwar Patnaik. Editorial Assistance: Debolina Sen Design Head: Prabir Das Design: Debasish Mukherjee, Arnab Guha, Indrajit Sen, Sayantanee Chanda, Upen Sarkar and Avisek Das S A N J I B K U M A R R O U T V E N K A T - A C H A L A M K R A J E S H B H U T O R I A P R A D E E P K U M A R J E N A re view EASTERN BUSINESS The company has been successfully tapping the met coke export market and is regularly exporting coke to various countries , to offset the lower domestic demand. Gujarat NRE Coke Ltd has been using this slowdown to build in n capacity and to get itself ready for the inevitable upturn. All necessary approvals from various government departments required for the project clear- ance of Brownfield expansion at Bhachau in Gujarat is underway. Work is in progress for setting up the 1.5 MTPA Greenfield coke plant in Andhra Pradesh , for r ww hich land has already been acquired and public hearing in respect to environmental clearances of the project has been n successfully completed. The company is working to increase its in stalled capacity of met coke production to 4 MTPA and is confident of achieving the same by 2015. > How do you plan to leverage your key stren gth of secured su pply of cok ing coal from Australian mines? Coki ng coal is in short supply globally. The price of cok- i ng coal had peaked to over $300 per tonne in early 2011 due to floods in Queensland , AA ustralia , with availability being scarce, putting the entire metallurgical industry in the thaws of great uncertainty We at Gujarat NRE take assured comfort from the secured supply of coking coal from our own mines which insulates us from the ext reme volatility. Even today, with slowdown knocking at t the door of global economy led by the downturn in Europe, the coking coal price is stifi higher than what it was 12 months back. We are steadil y increasing our pro- duction of cokinn g coal from ou r r mm i nn es in Australia The longwall mining in our NRE Nol mines is sched- uled to start in the next few weeks which would take our production to over 2 MTPA in the next fiscal. We are on schedule to achieve the 6 MTPA production of coking coal by 2015. After meeting the needs of the Indian com- pany, the e xcess coking coal is sold to China. > When do you plan to have GNMRL listed? Since late 2010 we have been working towards getting GNMRL listed but the unfavourable state of the markets have pp revented us from doing anything, which could have been an investor value destroyer. We are fort unate to be in one of the most potential sectors one could be in the world economy today and I am m sure GNMRL shall reap big rewards once the world starts recovering. We expect the market to recover some- ti me soon, and accordingly plan to get ourselves listed.listed. GNMRL has recentl y y announced a Rights Issue. What is unique in it for existin g shareholders? Rights Issue of Optional Fully Convertible Bonds (OFCB) is a unique investment opportunity that GNMRL offers to its share holders , which is a blend of debt and equity with an attractive, defi nn ite ann d assur ed ret urn. It also introduces the shareholders of GNMRL to an exclusive option in the form of equity shares of the company to explore the long term benefits of the diversified business, the group is operating in. The issue offers assured lucrative redemption premi- um and is a secured form of investment against any future downturn in the market , with assured returns. There ’ s excitement in the air. What else is happening? Some have already started to pack theirh oliday bags...Please elaborate... (Smiles..) We have announced a trip to Sydney and an optional visit to our coal mines in Wol- longong, AA ustralia for a couple, to two best entries of a quiz contest that is being organised among the share- holders of Gujarat NRE Mineral Resources Ltd and has also been n extended to shareholders of Gujarat NRE Coke Ltd. Employees of the company (both existing and past) and their relatives are strictly not eligible to par- ticipate in the quiz contest. The quiz contest is being organised to promote and encourage investor awareness among the shareholders about the company and its operations. I feel that it is a unique opportunity for the shareholders to know more about t the group as well as to get associated more closely with this organisation . ADVE RIO R IAL GuJarat NRE Minera l Resources: Unique and Stron g ARU N KUMAR JAGAT RAM KA , CMD , GUJARAT NRE MINERAL RESOUR C ES LIMITED , DISCUSSES THE LATEST DEVELOPMENTS AND THE FUTURE IN AA FREE WHEELING CHAT WITH ADITI GUHA > How is Guj arat NRE Minera l Resources Ltd (GNMRL) unique? Gujarat NRE Mineral Resources Company Ltd (GNMRL) is a core investment company. The company enjoys presence in the key sectors like hard coking coal and metallurgical coke. GNMRL has its indomitable pp resence in the metallurgical coke industry in India by holdi ng the controlling stake in Gujarat NRE Coke Ltd , the largest independent met coke manufacturer in India. This inturn enables the company to hold controlling s take in Gujarat NRE Coking Coal Ltd (GNM), tt he ASX listed company and the Australian coking coal arm of the Gujarat NRE group, the only Indian company to own and operate hard coking coal mines in Australia. GNMRL tt hh uu s has tt he pott enn tial to rr eap benn efi t t of the l ucrative met coke and coking coal markets, whose sup- ply is perennially shor t t of the rising demand. > Met Coke is a direct raw material of steel. How is the steel industr y doin g in India and what are the future plans for Guj arat NRE Coke Ltd? Steel consumption in India has been down for a greater part of this fiscal till date. The slowdown in consump- tion has been primarily due to a moderation in demand from automobile and house hold appliances and less than expected demand from construction sector. www .sumedha lisca I.com INVESTM ENT BANKINC £ WEALT • Resolute Pr i nc i p l es At Sumedha , we believe in doing the right things. Value means a lot. 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