Dear Colleagues,

From the Chairman’s Desk . . .

PSEThe Bi-Monthly Newsletter January 2012 • Vol 3 No 1

NewsletterConfederation of Indian Industry

Let me at the outset convey to you very special greetings for the new year 2012. It is heartening to note that the public sector enterprises are looking at levers of growth, irrespective of the external environment.

One such initiative has been the seminar on “Information Technology as Growth Driver of Public Sector Enterprises”, which was organized jointly by CII Council on PSEs and Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India.

The seminar brought together PSEs across industry segments, involving both manufacturing & consultancy businesses, and IT companies that have pioneered the development and use of various IT tools for the benefit of respective businesses.

As Secretary, Department of Public Enterprises, Shri DRS Chaudhary pointed out at the seminar, several IT enabled services in the public sector, such as railway bookings over the internet, have become so ubiquitous that they are now taken for granted. While IT has been leveraged in varying measures by the PSEs, such as CRM by the oil companies for targeted interface with retail customers and IT enabled paper-less office at ONGC, there was a need to share learning among PSEs of the attendant benefits, and challenges in deployment, which the seminar addressed.

PSEs collectively accounted for Rs 12,35,000 crore (over US$ 260 billion or 23% of India’s GDP) in revenues with an employee base of 14,91,000 in FY 2009-10. Juxtaposed with the Indian IT industry which has now become world renowned for its innovations, the Indian

expertise in IT can be increasingly applied to Indian organizations. Indeed, growth in US economy over the last 15 years has in large part been attributed to enhanced business productivity enabled by use of IT. In fact, IT gives smaller businesses access to a much wider pool of customers & resources, making it easier for them to compete with larger businesses, in turn helping overall growth of the economy.

Increasingly, organizations that have grown even in the wake of a widespread deceleration of growth have been the ones that have been proactive in gathering & responding to information about their businesses from various stakeholders. IT enabled speed & access to information are important components in driving growth in a dynamic and increasingly globalized operations, workforce, customer base & investors.

We also expect that in the coming year, the government will address policy decisions to enhance competitiveness of the Indian economy, like optimum interest rates, more decision-making autonomy to PSEs, facilitating Listings on the Bourses, among others.

We welcome your suggestions & feedback which help us tailor-make initiatives, such as the seminar on leveraging IT, to share best practices among PSEs and collectively continue to be the torch bearers of economic development, as envisaged by our founding fathers.

Sincerely,

B Prasada RaoChairman, CII Council on PSEs

& CMD, Bharat Heavy Electricals Ltd

UPDATE

PSE Newsletter2

UPDATE

PSE Newsletter 3

Seminar on Information

Technology (IT) as growth

driver for Public Sector

EnterprisesConfederation of Indian Industry, CII, and the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India organized a day-long seminar on Dec 13, 2011 in Delhi on leveraging IT to drive the next phase of growth of the Indian Public Sector Enterprises. The seminar brought together organizations that have pioneered development of IT & IT Heads of various PSEs, and addressed perceptions & queries on deployment of IT to enhance efficient management of the massive scale of operations that PSEs have.

I am happy to note that CII Council on PSEs under the Chairmanship of Shri B Prasada Rao, CMD, BHEL, in association with Department of Public Enterprises has organized a very apt seminar on ‘Information Technology as Growth Driver for PSEs’.

This subject in today’s context of apparent slowdown in the industrial production is thought provoking as we need to look at different growth drivers for PSEs which are aiming to go global. Information Technology can help companies improve the efficiency of their operations and also enable

Message from Shri Praful Patel,

Hon’ble Minister of Heav y

Industries & Public Enterprises,

Government of India

Rahul Mallick, Partner,

Pricewaterhouse Coopers

Dr Murali Krishna Kumar, ICT

Adviser, Planning Commission,

Government of India

Five Maharatnas accounted for 7.1% of Indian GDP in FY 2009-10, equivalent to Rs 4,326 lakh crore. Five of the top 10 spenders on IT in India are PSEs, with ONGC being the highest s p e n d e r . B H E L’ s E R P implementation, MTNL’s open source billing platform, Oil companies’ customer loyalty programs are some of the examples of benefits derived by PSEs from IT implementation.

Taking the initiative further PSE’s are looking to invest in state-of-the-art tools like Business I n t e l l i g e n c e & C l o u d Computing, to have the benefits of IT permeate deeper across organizations. The government in the US has embraced Cloud Computing, and has also quantified the benefits accrued.

The 12th Plan will be unveiled in April 2012, and has laid out the objective of faster, more inclusive & sustainable growth. Among the objectives of the Plan are expanded rural connectivity & creation of jobs in manufacturing, to translate to a GDP growth of over 9% for the period. India will be a US$ 10 trillion economy by 2 0 2 5 , a n d t e c h n o l o g y convergence of IT with Telecom will drive this phase of growth of the Indian economy.

ICT is now being deployed for socio-economic development in many areas, and for better delivery

However, in India investment by PSEs relative to the GDP has been declining over the years, as brought-out in the table below.

There has been a lag in investments by PSEs, as compared to the private sector, with the investments by private sector steadily increasing since 1991. PSEs currently contribute 20 to 25% to India’s GDP, and it can better reflect in the investments being made by the PSEs.

There are 50 PSEs that are Listed on the Bombay Stock Exchange, representing just a fraction of the number of companies Listed but still accounting for 22% of the market capitalization. There are 249 PSEs in all, of which 100 are candidates for Listing. Enhanced deployment of IT, enabling real-time information flow within the PSEs and to the external stakeholders, will serve to provide a conducive environment to

L i s t i n g o f PSEs.

PSEs have a l w a y s leveraged IT, for example, to facilitate

of government services, such as through the UIDAI project. Distance is no longer a hindrance in communication, or in delivery of Government services. India has 12 million broadband subscribers currently, which is going to increase substantially, which will enable service delivery through the internet, for both government & private sector services.

Large businesses currently have over 500 interactions with over 100 depa r tmen t s o f th e G o v e r n m e n t , w h i c h t h e P l ann ing Commis s i on i s looking to streamline through the use of ICT tools. The Planning Commission plans to t r a n s f e r a l l g o v e r n m e n t services in electronic mode for e a s i e r i n t e r f a c e o f t h e Government with both citizens & businesses.

The Indian model of a mixed economy has helped India better withstand external shocks. There are PSEs in other parts of the world as well, with the US having the least & China the most. India, Brazil & Argentina have been following a mixed economic system, with both the public & the private sector contributing to economic development.

DRS Chaudhary, Secretary,

Department of Public

Enterprises, Government of India

them become cost competitive. I hope today’s seminar will bring about many points and thoughts which would be carried back and implemented by the public sector management taking a cue from their more successful peers.

I understand that selection of technology solutions and their service providers is becoming a concern given the multiplicity of options available. I hope through the deliberations today by public sector as well as private sector, some way forward could be worked out. The background note highlights the lack of penetration of Information Technology in PSEs, which I hope would be corrected by the end of 12th Plan.

Some PSEs have implemented IT and have derived benefits, while there are PSEs that are in the process of implementation of the various IT tools. The thought

Inaugural Session

B Prasada Rao, Chairman & MD,

BHEL

behind the seminar is to learn from one another the best practices in IT deployment, and the attendant challenges & benefits. PSEs have been playing a pivotal in economic development of India since Independence, and even in the backdrop of the global slowdown in 2008, India could maintain 7 to 8% GDP growth rate, largely through strong performance of the PSEs. In fact, 33 PSEs paid Rs 23,000 crore in dividend to the Government in the last financial year. And there are a number of PSEs now in the Fortune 500 list of the world’s largest corporations.

IT is a major initiative to make the PSEs stronger still. ICT tools like Video Conferencing is very much a part of PSE management which helps in quicker communication between site/unit heads spread across India, even at remote

locations. Sharing learnings from IT implementation across PSEs will also help address perceptions of return-on-investment & actual benefits accrued.

DRS Chaudhary, Secretary, Govt of India addressing the Inaugural Session. Also seen are Rahul Mallick, Partner, PwC; RS Butola, CMD, Indian Oil; B Prasada Rao, CMD, BHEL; Murali Krishna Kumar, ICT Advisor, Planning Commission; Shefali Chaturvedi, Sr Director, CII (L to R)

Investment as %of GDP by thePrivate Sector

% growthin the Indian

economy

9.7%

23%

24.4%

4.2%

9.5%

9%

Year

1985-86

2005-06

12th Planestimate

10.7%

7.3%

9.1%

Investment as %of GDP by thePublic Sector

UPDATE

PSE Newsletter2

UPDATE

PSE Newsletter 3

Seminar on Information

Technology (IT) as growth

driver for Public Sector

EnterprisesConfederation of Indian Industry, CII, and the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India organized a day-long seminar on Dec 13, 2011 in Delhi on leveraging IT to drive the next phase of growth of the Indian Public Sector Enterprises. The seminar brought together organizations that have pioneered development of IT & IT Heads of various PSEs, and addressed perceptions & queries on deployment of IT to enhance efficient management of the massive scale of operations that PSEs have.

I am happy to note that CII Council on PSEs under the Chairmanship of Shri B Prasada Rao, CMD, BHEL, in association with Department of Public Enterprises has organized a very apt seminar on ‘Information Technology as Growth Driver for PSEs’.

This subject in today’s context of apparent slowdown in the industrial production is thought provoking as we need to look at different growth drivers for PSEs which are aiming to go global. Information Technology can help companies improve the efficiency of their operations and also enable

Message from Shri Praful Patel,

Hon’ble Minister of Heav y

Industries & Public Enterprises,

Government of India

Rahul Mallick, Partner,

Pricewaterhouse Coopers

Dr Murali Krishna Kumar, ICT

Adviser, Planning Commission,

Government of India

Five Maharatnas accounted for 7.1% of Indian GDP in FY 2009-10, equivalent to Rs 4,326 lakh crore. Five of the top 10 spenders on IT in India are PSEs, with ONGC being the highest s p e n d e r . B H E L’ s E R P implementation, MTNL’s open source billing platform, Oil companies’ customer loyalty programs are some of the examples of benefits derived by PSEs from IT implementation.

Taking the initiative further PSE’s are looking to invest in state-of-the-art tools like Business I n t e l l i g e n c e & C l o u d Computing, to have the benefits of IT permeate deeper across organizations. The government in the US has embraced Cloud Computing, and has also quantified the benefits accrued.

The 12th Plan will be unveiled in April 2012, and has laid out the objective of faster, more inclusive & sustainable growth. Among the objectives of the Plan are expanded rural connectivity & creation of jobs in manufacturing, to translate to a GDP growth of over 9% for the period. India will be a US$ 10 trillion economy by 2 0 2 5 , a n d t e c h n o l o g y convergence of IT with Telecom will drive this phase of growth of the Indian economy.

ICT is now being deployed for socio-economic development in many areas, and for better delivery

However, in India investment by PSEs relative to the GDP has been declining over the years, as brought-out in the table below.

There has been a lag in investments by PSEs, as compared to the private sector, with the investments by private sector steadily increasing since 1991. PSEs currently contribute 20 to 25% to India’s GDP, and it can better reflect in the investments being made by the PSEs.

There are 50 PSEs that are Listed on the Bombay Stock Exchange, representing just a fraction of the number of companies Listed but still accounting for 22% of the market capitalization. There are 249 PSEs in all, of which 100 are candidates for Listing. Enhanced deployment of IT, enabling real-time information flow within the PSEs and to the external stakeholders, will serve to provide a conducive environment to

L i s t i n g o f PSEs.

PSEs have a l w a y s leveraged IT, for example, to facilitate

of government services, such as through the UIDAI project. Distance is no longer a hindrance in communication, or in delivery of Government services. India has 12 million broadband subscribers currently, which is going to increase substantially, which will enable service delivery through the internet, for both government & private sector services.

Large businesses currently have over 500 interactions with over 100 depa r tmen t s o f th e G o v e r n m e n t , w h i c h t h e P l ann ing Commis s i on i s looking to streamline through the use of ICT tools. The Planning Commission plans to t r a n s f e r a l l g o v e r n m e n t services in electronic mode for e a s i e r i n t e r f a c e o f t h e Government with both citizens & businesses.

The Indian model of a mixed economy has helped India better withstand external shocks. There are PSEs in other parts of the world as well, with the US having the least & China the most. India, Brazil & Argentina have been following a mixed economic system, with both the public & the private sector contributing to economic development.

DRS Chaudhary, Secretary,

Department of Public

Enterprises, Government of India

them become cost competitive. I hope today’s seminar will bring about many points and thoughts which would be carried back and implemented by the public sector management taking a cue from their more successful peers.

I understand that selection of technology solutions and their service providers is becoming a concern given the multiplicity of options available. I hope through the deliberations today by public sector as well as private sector, some way forward could be worked out. The background note highlights the lack of penetration of Information Technology in PSEs, which I hope would be corrected by the end of 12th Plan.

Some PSEs have implemented IT and have derived benefits, while there are PSEs that are in the process of implementation of the various IT tools. The thought

Inaugural Session

B Prasada Rao, Chairman & MD,

BHEL

behind the seminar is to learn from one another the best practices in IT deployment, and the attendant challenges & benefits. PSEs have been playing a pivotal in economic development of India since Independence, and even in the backdrop of the global slowdown in 2008, India could maintain 7 to 8% GDP growth rate, largely through strong performance of the PSEs. In fact, 33 PSEs paid Rs 23,000 crore in dividend to the Government in the last financial year. And there are a number of PSEs now in the Fortune 500 list of the world’s largest corporations.

IT is a major initiative to make the PSEs stronger still. ICT tools like Video Conferencing is very much a part of PSE management which helps in quicker communication between site/unit heads spread across India, even at remote

locations. Sharing learnings from IT implementation across PSEs will also help address perceptions of return-on-investment & actual benefits accrued.

DRS Chaudhary, Secretary, Govt of India addressing the Inaugural Session. Also seen are Rahul Mallick, Partner, PwC; RS Butola, CMD, Indian Oil; B Prasada Rao, CMD, BHEL; Murali Krishna Kumar, ICT Advisor, Planning Commission; Shefali Chaturvedi, Sr Director, CII (L to R)

Investment as %of GDP by thePrivate Sector

% growthin the Indian

economy

9.7%

23%

24.4%

4.2%

9.5%

9%

Year

1985-86

2005-06

12th Planestimate

10.7%

7.3%

9.1%

Investment as %of GDP by thePublic Sector

UPDATE

PSE Newsletter 5

UPDATE

PSE Newsletter4

priorities optimize between a Public & a Private Cloud, basis

portfolio of applications required. Critical applications are usually placed on the Private Cloud.

Valedictory Session

B Prasada Rao, Chairman & MD,

BHEL

Railway bookings on-line. ONGC & Mazgaon Dock Ltd have a system of paperless communication at workplace, enabled by IT. Coal India has been using e-auction & e-booking for sale of coal, which has made the process more transparent & efficient, with less attendant costs. There are several IT enabled business initiatives which we now take for granted.

The Roongta committee of the Planning Commission has suggested that PSEs put-together an IT-implementation plan in place, and have Board-level approval of the same. And the PSEs are actively looking at i m p l e m e n t a t i o n o f t h i s recommendation.

IT is an integral part of the refining process at Indian Oil. Use of IT is so ingrained in the processes at Indian Oil that we would not be able to calculate separately our investments in IT.

RS Butola, Chairman & MD,

Indian Oil

IT has enhanced business decision making ability, supply chain management and the like, and has become necessary to improve productivi ty & processes . Optimizing IT systems & data will also assist PSEs in the ircapacity to generate capital.

The government needs to provide a level playing field to PSEs to operate, which would include enhanced financial & decision making autonomy, as a delayed decision results in a lost opportunity for growth.

The session was moderated by Ambuj Sharma, Joint Secretary, Department of Heavy Industries & Public Enterprises, Government of India.

Enterprise Resource Planning, ERP, software forces organizations to have standardized processes, and brings-in an element of discipline into business processes. ERP brings about efficient

Plenary Session I: ERP & PLM

Alok Goyal, Chief-Operating-

Officer, SAP

utilization of resources through r e a l - t i m e a v a i l a b i l i t y o f information from various parts of the business, irrespective of their geographic location. Benefits of ERP are manifold, in the case of a dairy company it has lead to a 7.5% reduction in working capital requirement.

ERP is an evolving concept. For instance, a taxi operating service managing 6,000 cabs in Tokyo has innovated ERP to monitor traffic conditions at various times of the day, at various locations in the city. This allows the taxi operating service to advise its drivers, in real-time, on the shortest & the least congested route to take.

Organizations need not implement IT simply because a similar company has implemented it. Organizations need to define business processes, and then consider how their efficiencies can be enhanced through IT. It is business factors that must override technology considerations when implement ing a so lut ion. Implementing ERP should not h a v e t o b e a t o p - d o w n communication, while top management need to actively

Anjan Dasgupta, Executive

Director, BHEL

The discussion included the compulsion to keep IT cost at a minimum irrespective of a slowdown or a high growth economic environment. The appetite for new technology is a lway s th e re s o l ong a s organizations see value of the investment in IT, and not see IT as a cost.

What are the risks of cloud computing? For instance, the Amazon services to businesses

were down for 2 to 3 days, as the Amazon Data Centre was down. Can businesses afford to have their services not available for 2 to 3 days at a stretch?

The Amazon blackout is a factor of what kind of arrangement businesses have w i t h C l o u d service provider. And the Amazon Cloud is a Public C l o u d . Organizations are deploying Private Cloud for critical a p p l i c a t i o n s . Organizations, according to their

endorse it, all departments must actively embrace it. And, results of ERP implementation must be quantified, though the most obvious benefit is in financial terms, the benefit must be measured basis qualitative & quantitative parameters specific to the organization.

Product Lifecycle Management, P L M , c a n g i v e p r o c e s s standardization that can translate into efficiencies in operations, resulting in cost savings. It has b e e n i m p l e m e n t e d a t organizations across the world, in both emerging &developed economies, such as at HPCL Mittal Bhatinda refinery, GE and Alstom, among others.

Solutions from Siemens merge the physical & digital worlds. IT implementation need not be a puzzle, and process automation must be optimized. Siemens has partnered organizations to co-create IT solutions that have provided savings from a few thousand dollars to several million dollars.

T h e o r g a n i z a t i o n s t h a t part ic ipated in the panel discussion included Thermax, North Delhi Power, L&T Infotech and Gartner Research & Advisory. The discussion was moderated by Pranjal Sharma, Senior Editor, Bloomberg UTV.

Ajay Verma, Vice-President,

Dassault Systems

Suman Bose, Vice-President,

Siemens

Panel Discussion and Q&A on

Efficient Management of

Enterprise through Technology

Panelists at the discussion of efficient management of enterprise throughtechnology

(L to R) Suman Bose, VP, Siemens; Ajay Verma, VP, Dassault, Ambuj Sharma, Jt Secretary, Govt of India; Anjan Dasgupta, ED, BHEL; Alok Goyal, COO, SAP & Nita Karmakar, Director, CII

S Sundareshan, Secretary, Govt of India (left) withB Prasada Rao, CMD, BHEL

UPDATE

PSE Newsletter 5

UPDATE

PSE Newsletter4

priorities optimize between a Public & a Private Cloud, basis

portfolio of applications required. Critical applications are usually placed on the Private Cloud.

Valedictory Session

B Prasada Rao, Chairman & MD,

BHEL

Railway bookings on-line. ONGC & Mazgaon Dock Ltd have a system of paperless communication at workplace, enabled by IT. Coal India has been using e-auction & e-booking for sale of coal, which has made the process more transparent & efficient, with less attendant costs. There are several IT enabled business initiatives which we now take for granted.

The Roongta committee of the Planning Commission has suggested that PSEs put-together an IT-implementation plan in place, and have Board-level approval of the same. And the PSEs are actively looking at i m p l e m e n t a t i o n o f t h i s recommendation.

IT is an integral part of the refining process at Indian Oil. Use of IT is so ingrained in the processes at Indian Oil that we would not be able to calculate separately our investments in IT.

RS Butola, Chairman & MD,

Indian Oil

IT has enhanced business decision making ability, supply chain management and the like, and has become necessary to improve productivi ty & processes . Optimizing IT systems & data will also assist PSEs in the ircapacity to generate capital.

The government needs to provide a level playing field to PSEs to operate, which would include enhanced financial & decision making autonomy, as a delayed decision results in a lost opportunity for growth.

The session was moderated by Ambuj Sharma, Joint Secretary, Department of Heavy Industries & Public Enterprises, Government of India.

Enterprise Resource Planning, ERP, software forces organizations to have standardized processes, and brings-in an element of discipline into business processes. ERP brings about efficient

Plenary Session I: ERP & PLM

Alok Goyal, Chief-Operating-

Officer, SAP

utilization of resources through r e a l - t i m e a v a i l a b i l i t y o f information from various parts of the business, irrespective of their geographic location. Benefits of ERP are manifold, in the case of a dairy company it has lead to a 7.5% reduction in working capital requirement.

ERP is an evolving concept. For instance, a taxi operating service managing 6,000 cabs in Tokyo has innovated ERP to monitor traffic conditions at various times of the day, at various locations in the city. This allows the taxi operating service to advise its drivers, in real-time, on the shortest & the least congested route to take.

Organizations need not implement IT simply because a similar company has implemented it. Organizations need to define business processes, and then consider how their efficiencies can be enhanced through IT. It is business factors that must override technology considerations when implement ing a so lut ion. Implementing ERP should not h a v e t o b e a t o p - d o w n communication, while top management need to actively

Anjan Dasgupta, Executive

Director, BHEL

The discussion included the compulsion to keep IT cost at a minimum irrespective of a slowdown or a high growth economic environment. The appetite for new technology is a lway s th e re s o l ong a s organizations see value of the investment in IT, and not see IT as a cost.

What are the risks of cloud computing? For instance, the Amazon services to businesses

were down for 2 to 3 days, as the Amazon Data Centre was down. Can businesses afford to have their services not available for 2 to 3 days at a stretch?

The Amazon blackout is a factor of what kind of arrangement businesses have w i t h C l o u d service provider. And the Amazon Cloud is a Public C l o u d . Organizations are deploying Private Cloud for critical a p p l i c a t i o n s . Organizations, according to their

endorse it, all departments must actively embrace it. And, results of ERP implementation must be quantified, though the most obvious benefit is in financial terms, the benefit must be measured basis qualitative & quantitative parameters specific to the organization.

Product Lifecycle Management, P L M , c a n g i v e p r o c e s s standardization that can translate into efficiencies in operations, resulting in cost savings. It has b e e n i m p l e m e n t e d a t organizations across the world, in both emerging &developed economies, such as at HPCL Mittal Bhatinda refinery, GE and Alstom, among others.

Solutions from Siemens merge the physical & digital worlds. IT implementation need not be a puzzle, and process automation must be optimized. Siemens has partnered organizations to co-create IT solutions that have provided savings from a few thousand dollars to several million dollars.

T h e o r g a n i z a t i o n s t h a t part ic ipated in the panel discussion included Thermax, North Delhi Power, L&T Infotech and Gartner Research & Advisory. The discussion was moderated by Pranjal Sharma, Senior Editor, Bloomberg UTV.

Ajay Verma, Vice-President,

Dassault Systems

Suman Bose, Vice-President,

Siemens

Panel Discussion and Q&A on

Efficient Management of

Enterprise through Technology

Panelists at the discussion of efficient management of enterprise throughtechnology

(L to R) Suman Bose, VP, Siemens; Ajay Verma, VP, Dassault, Ambuj Sharma, Jt Secretary, Govt of India; Anjan Dasgupta, ED, BHEL; Alok Goyal, COO, SAP & Nita Karmakar, Director, CII

S Sundareshan, Secretary, Govt of India (left) withB Prasada Rao, CMD, BHEL

UPDATE

PSE Newsletter6

UPDATE

PSE Newsletter 7

There is proliferation of devices, CII PSE Council started in to access information easily. 2007 with AK Puri, then CMD, Mobile phones today have huge BHEL as the first Chairman of computing power, more than the Council. Subsequently, RS that of desktop PCs of the Sharma, CMD, ONGC took 1980’s. Cloud Computing has over the responsibility. Now the been there a long time: the email mantle of Chairmanship has service has been on the Cloud again fallen on BHEL.since the 1990’s . Cloud Computing, simply-put, refers PSEs have been at the forefront to on-demand, self-service of of expertise in IT: for instance, computing resources. It affords Electronics Corporation of edition. For complete text of the re source poo l ing , r ap id India, ECIL, employees have i n t e r v i e w, p l e a s e v i s i t elasticity, such as allowing for contributed to building private www.business-standard.comincreased computing resources sector organizations like Wipro.for a bank without having to purchase them at the time of To improve performance of Diwali when more credit card PSEs a number of IT tools are transactions happen.being actively considered for

deployment. PSEs are actively Cloud Computing is a measured considering Cloud Computing, service, and moves from capital and analyzing how countries expenditure to operational &organizations are benefiting expenditure model of IT resource from Cloud Computing.deployment. More importantly, it provides agility to businesses and Some organizat ions l ike “Oil India, OIL, has cash makes it easier for them to Thermax refer to their IT reserves & surplus of Rs 17,300 innovate their products & services. department as “Business crore. We have a planned Forrester estimates that 20% of Te c h n o l o g y G r o u p ” , investment of Rs 3,180 crore for small & medium businesses in the underscoring the significant this financial year, of which 52% US would own no IT assets, business linkages with IT. PSEs has been earmarked for allowing them to free-up precious like Indian Oil, ONGC & exploration & appraisal, 27% working capital. In India, Cloud North Delhi Power Ltd are for development and about 11% Computing has enabled J&K currently among the large for overseas projects.government to provide citizen spenders on IT.services like ration-card using the

Over the last ten years, OIL has Data Centre of Madhya Pradesh stepped up efforts to acquire government. Cloud Computing E & P ( e x p l o r a t i o n enhances pace of governance PSEs have always been early &production) assets in eight services to both citizens & adopters of IT, and their IT countries through competitive businesses.deployments date back to the bidding. OIL had recently

1970’s.Cloud Computing & acquired3.5% stake in the close coupling of devices, like development of oil reserves in PC with mobile phones, have the Orinoco belt in Venezuela, a l l o w e d f o r e n o r m o u s which holds among the world’s computing power for business largest deposits of non-processes’ accessibility from The interview appeared in conventional oil. We expect to remote locations. Business Standard, Dec 4 2011 produce oil from there by 2012-

Bhaskar Pramanik, Chairman,

Microsoft

NM Borah, Chairman & MD, Oil

India

CEO Speak

13. OIL is focusing on Corporation in Manipur for Chinese equipment for the a c q u i s i t i o n o f power generation, Bisra Stone power sector is because of lower discovered/producing assets Lime company in West Bengal performance standards in the that can be monetised in a short for production of cement grade l a t t e r : C h i n e s e p o w e r span of time, in preference to limestone. equipment costs 15% less, exploratory assets which have a however over the equipment-longer gestation period. l i fecycle , cost of BHEL

equipment comes to be lower In a study of 50 PSEs, it has been due to lower operational costs, OIL has been consistently found that their foreign better plant load factor & lower making small to medium-size exchange earnings increased to d ow n t i m e . A l s o , p owe r discoveries, leading to a healthy Rs 49,311 crore (US$ 10.3 equipment with lower heat rate reserve replacement ratio of b i l l i o n ) i n 2 0 1 0 - 1 1 , uses less coal to produce the 165%. This is mainly due to representing a growth of 11.4% same quantum of electricity, increase in production, higher over last year. The foreign leading to reduced fue l efficiency & low overheads. exchange earnings of PSEs have consumption & reduced plant Also, we continue to deploy new been steadily increasing: it was emission. technologies to sustain & Rs 44,271crore in 2009-10, and increase our production. Our Rs 43,208 in 2008-09.reserves as on April 1, 2011, are Chinese suppliers can easily

921 million barrels of oil conform to the CEA’s standards equivalent. Most of the wells The foreign exchange earnings on heat rate but compliance drilled are over 3,500 metres represented 4.4% of sales of the would make their equipment deep and we are now drilling PSEs under study. Some of the costs to increase. However, deeper.” PSEs studied like Nalco, compliance to this guideline

Gujara t A lka l i e s & TN could lead to higher power Newsprint, exports accounted tariffs for consumers.for over 10% of their sales in 2010-11.

The Government can raise over The government has set-up 25 Rs 3,76,000 crore (US$ 78 PSEs over the last three years,

The government is considering billion) by reducing its holding across industry sectors & across i n t r o d u c i n g m a n d a t o r y in PSEs to 51%, as per an India, under the administrative performance standards for estimate made by ICICI c o n t r o l o f t h e c e n t r a l power equipment such as for Secu r i t i e s . Keep ing the government ministries. Setting plant heat rate, auxiliary & Government stake at 51% up of new PSEs is a factor of specific power consumption. would still keep the enterprises prevailing techno-economic The Indian Central Electricity in the public sector. The current considerations, and the need to Authority (CEA) had issued market capitalization of PSE address unmet demand of guidelines on performance equities, an indication of their industry & households.standards of power equipment, market value, is an estimated Rs which were not mandatory, but 12,83,000 crore.Among the PSEs that have been were being complied with by developed are Jagdishpur Paper Indian manufacturers like The Government has twin Mills in UP for production of BHEL and L&T. objectives from disinvestment: writing & printing paper,

to unlock the value of PSEs and HPCL Bio-fuels in Bihar for I n c i d e n t a l l y, t h e p r i c e raise resources for funding social ethanol-blended fuel, Loktak differential between Indian & sector programmes.Downstream Hydroelectric

PSE news update

PSE foreign exchange

earnings increase

Govt can raise Rs 3,76,000 25 PSEs established since crore from stake sale2007-08

Power equipment to comply

with set standards

UPDATE

PSE Newsletter6

UPDATE

PSE Newsletter 7

There is proliferation of devices, CII PSE Council started in to access information easily. 2007 with AK Puri, then CMD, Mobile phones today have huge BHEL as the first Chairman of computing power, more than the Council. Subsequently, RS that of desktop PCs of the Sharma, CMD, ONGC took 1980’s. Cloud Computing has over the responsibility. Now the been there a long time: the email mantle of Chairmanship has service has been on the Cloud again fallen on BHEL.since the 1990’s . Cloud Computing, simply-put, refers PSEs have been at the forefront to on-demand, self-service of of expertise in IT: for instance, computing resources. It affords Electronics Corporation of edition. For complete text of the re source poo l ing , r ap id India, ECIL, employees have i n t e r v i e w, p l e a s e v i s i t elasticity, such as allowing for contributed to building private www.business-standard.comincreased computing resources sector organizations like Wipro.for a bank without having to purchase them at the time of To improve performance of Diwali when more credit card PSEs a number of IT tools are transactions happen.being actively considered for

deployment. PSEs are actively Cloud Computing is a measured considering Cloud Computing, service, and moves from capital and analyzing how countries expenditure to operational &organizations are benefiting expenditure model of IT resource from Cloud Computing.deployment. More importantly, it provides agility to businesses and Some organizat ions l ike “Oil India, OIL, has cash makes it easier for them to Thermax refer to their IT reserves & surplus of Rs 17,300 innovate their products & services. department as “Business crore. We have a planned Forrester estimates that 20% of Te c h n o l o g y G r o u p ” , investment of Rs 3,180 crore for small & medium businesses in the underscoring the significant this financial year, of which 52% US would own no IT assets, business linkages with IT. PSEs has been earmarked for allowing them to free-up precious like Indian Oil, ONGC & exploration & appraisal, 27% working capital. In India, Cloud North Delhi Power Ltd are for development and about 11% Computing has enabled J&K currently among the large for overseas projects.government to provide citizen spenders on IT.services like ration-card using the

Over the last ten years, OIL has Data Centre of Madhya Pradesh stepped up efforts to acquire government. Cloud Computing E & P ( e x p l o r a t i o n enhances pace of governance PSEs have always been early &production) assets in eight services to both citizens & adopters of IT, and their IT countries through competitive businesses.deployments date back to the bidding. OIL had recently

1970’s.Cloud Computing & acquired3.5% stake in the close coupling of devices, like development of oil reserves in PC with mobile phones, have the Orinoco belt in Venezuela, a l l o w e d f o r e n o r m o u s which holds among the world’s computing power for business largest deposits of non-processes’ accessibility from The interview appeared in conventional oil. We expect to remote locations. Business Standard, Dec 4 2011 produce oil from there by 2012-

Bhaskar Pramanik, Chairman,

Microsoft

NM Borah, Chairman & MD, Oil

India

CEO Speak

13. OIL is focusing on Corporation in Manipur for Chinese equipment for the a c q u i s i t i o n o f power generation, Bisra Stone power sector is because of lower discovered/producing assets Lime company in West Bengal performance standards in the that can be monetised in a short for production of cement grade l a t t e r : C h i n e s e p o w e r span of time, in preference to limestone. equipment costs 15% less, exploratory assets which have a however over the equipment-longer gestation period. l i fecycle , cost of BHEL

equipment comes to be lower In a study of 50 PSEs, it has been due to lower operational costs, OIL has been consistently found that their foreign better plant load factor & lower making small to medium-size exchange earnings increased to d ow n t i m e . A l s o , p owe r discoveries, leading to a healthy Rs 49,311 crore (US$ 10.3 equipment with lower heat rate reserve replacement ratio of b i l l i o n ) i n 2 0 1 0 - 1 1 , uses less coal to produce the 165%. This is mainly due to representing a growth of 11.4% same quantum of electricity, increase in production, higher over last year. The foreign leading to reduced fue l efficiency & low overheads. exchange earnings of PSEs have consumption & reduced plant Also, we continue to deploy new been steadily increasing: it was emission. technologies to sustain & Rs 44,271crore in 2009-10, and increase our production. Our Rs 43,208 in 2008-09.reserves as on April 1, 2011, are Chinese suppliers can easily

921 million barrels of oil conform to the CEA’s standards equivalent. Most of the wells The foreign exchange earnings on heat rate but compliance drilled are over 3,500 metres represented 4.4% of sales of the would make their equipment deep and we are now drilling PSEs under study. Some of the costs to increase. However, deeper.” PSEs studied like Nalco, compliance to this guideline

Gujara t A lka l i e s & TN could lead to higher power Newsprint, exports accounted tariffs for consumers.for over 10% of their sales in 2010-11.

The Government can raise over The government has set-up 25 Rs 3,76,000 crore (US$ 78 PSEs over the last three years,

The government is considering billion) by reducing its holding across industry sectors & across i n t r o d u c i n g m a n d a t o r y in PSEs to 51%, as per an India, under the administrative performance standards for estimate made by ICICI c o n t r o l o f t h e c e n t r a l power equipment such as for Secu r i t i e s . Keep ing the government ministries. Setting plant heat rate, auxiliary & Government stake at 51% up of new PSEs is a factor of specific power consumption. would still keep the enterprises prevailing techno-economic The Indian Central Electricity in the public sector. The current considerations, and the need to Authority (CEA) had issued market capitalization of PSE address unmet demand of guidelines on performance equities, an indication of their industry & households.standards of power equipment, market value, is an estimated Rs which were not mandatory, but 12,83,000 crore.Among the PSEs that have been were being complied with by developed are Jagdishpur Paper Indian manufacturers like The Government has twin Mills in UP for production of BHEL and L&T. objectives from disinvestment: writing & printing paper,

to unlock the value of PSEs and HPCL Bio-fuels in Bihar for I n c i d e n t a l l y, t h e p r i c e raise resources for funding social ethanol-blended fuel, Loktak differential between Indian & sector programmes.Downstream Hydroelectric

PSE news update

PSE foreign exchange

earnings increase

Govt can raise Rs 3,76,000 25 PSEs established since crore from stake sale2007-08

Power equipment to comply

with set standards

UPDATE

PSE Newsletter 9

UPDATE

PSE Newsletter8

Autonomy limit of Rs 5,000

crore may be revised

ICVL looking to secure assets

in Australia

PSE-private sector consortium

wins Afghanistan mine bid

PSEs to train & hire from J&K

for the youth through 9-month plant with 6 million tone annual training modules. Owing to capacity & a power plant with continued unrest in J&K, the 1,100 MW per annum capacity, a The Government is considering local economy has suffered and 200 km road-link, in addition to revising upwards the current has lead to a serious lack of other phys ica l & soc ia l limit of Rs 5,000 crore (about employment opportunities, and infrastructure in the mining area.US$ 1 billion) which the Board con s equen t l y a l a ck o f of Directors of a Maharatna employment-skills among the The consortium will also PSEs have for taking investment youth in that region. organise skills-training to decisions without approval from

enhance employability locally t h e Un i o n C a b i n e t o r Training cost of each participant and contribute to community Administrative Ministries.will be about Rs 2.5 lakh, of development initiatives, in which 50% will be paid by the keeping with the founding The PSEs have been looking to central government. 28 PSEs are charter of the Indian PSEs. The secure energy assets like oil & participating in this program project will generate direct minerals abroad to support high including BHEL, ONGC, employment for 8,000 & growth of the Indian economy. Indian Oil, SAIL, NTPC, HAL indirect employment for 40,000.Given the dynamic nature of a & State Bank of India.globalized economic system, it

has long been felt that speedy decision-making is required to address opportunities for asset International Coal Ventures, acquisitions abroad. Time ICVL, is looking to acquire a consumed in taking approvals for greenfield project in Australia an acquisition that costs over that can generate 2.6 million A consortium of seven Indian US$ 1 billion, which is not a tonnes of coking coal from an public sector & private sector sizeable sum considering the open mine. Coking coal assets companies has won the bid to price of international assets & are in demand from steel develop Afghanistan’s largest cash reserves of PSEs, has tended companies looking for raw iron-ore deposit located at to lose the PSE of the material security.Hajigak. The deposits estimated opportunity of asset acquisitions. at 1.8 billion metric tons, is

considered the largest untapped India is on the look-out for ore deposit in Asia. metallurgical coal reserves to

In order to provide productive meet the increasing appetite for employment to the youth of energy & infrastructure as the The consortium, christened Jammu & Kashmir, PSEs will be Indian economy expands rapidly. “A f g h a n I r o n & S t e e l absorbing 9,000 youth from the The demand for metallurgical Consortium, Afisco,” comprises state each year for the next 5 coal in 2009-10 was 40 million Steel Authority of India, years. The initiative will tonnes (mt), of which 23 mt was National Mineral Development translate into the youth of J&K imported. Demand is expected to Corp, Rashtriya Ispat Nigam & gaining employment at PSE rise to 90 mt by 2020.the private sector Jindal Steel & operations across India, which Power, Monnet Ispat & Energy, w i l l a l so he lp in the i r JSW Ispat Steel & JSW Steel. ICVL is jointly promoted by empowerment & integration SAIL, NTPC, Coal India, with the rest of the country. Rashtriya Ispat Nigam & It will require investments to the

NMDC, and was set up in 2009 tune of US$ 14 billion (Rs 66,000 T h e N a t i o n a l S k i l l to secure coal assets overseas. crore) over 8 to 10 years to develop Development Corporation, ICVL is currently also looking the mines. The consortium has NSDC, will facilitate training to secure assets in Indonesia.committed to building a steel

Investments

MTNL to launch broadband BEML, DRDO JV for defence

wireless services vehicles

SAIL, Posco form JV

Indian Oil, British Petroleum

form JV

Power Grid, RINL JV from

transmission towers

the configuration of the plant. The plant would use BP's latest “Cativa XL” technology, and the M T N L w i l l i n t r o d u c e Bharat Earth Movers & Defence gasification facilities would use broadband wireless services to R e s e a r c h D e v e l o p m e n t petroleum coke feedstock from afford internet connectivity on Organization have set-up a Indian Oil.the go, in the second half of technology centre at the

2012. MTNL will employ LTE Chennai campus of Combat Currently, the supply-demand ( Lo n g Te r m Evo l u t i o n ) V e h i c l e R e s e a r c h & gap in India for acetic acid is an technology that affords data Development Establishment estimated 600,000 tonnes per speeds in the range of 60 to 100 (CVRDE). The technology annum, which i s be ing mbps (mega bits per second). centre will enhance Research & addressed through exports. LTE, which is 4G technology, is Development and industry Among the end-uses of acetic compatible with both 2G & 3G linkages to hasten the pace of acid is solid-state packaging based networks. development of vehicles used in rasins, commonly referred to as defence.PET bottles. China accounts for M T N L w i l l f o l l ow t h e 44% of the world’s acetic acid outsourcing-model where BEML & DRDO have earlier production capacity.management of the network & collaborated on projects such as

the services will be given to a third launch & recovery system for party, on revenue sharing basis. the Underwater Autonomous

Steel Authority of India & Posco Vehicle, testing of torque are setting-up a 3 million tonne convertor & quality assurance LTE technology opted by per annum project in Bokaro, in for the Arjun Main Battle Tank, MTNL is considered superior to the state of Jharkhand, at an among others.WiMax which is the alternative investment of Rs 17,000 crore 4G technology. WiMax affords (US$ 4 to 5 billion). Two units of speeds of 40mbps and does not CVRDE is an independent 1.5 million tonnes will be set up at allow for compatibility with 2G DRDO laboratory entrusted Bokaro to produce auto grade steel or 3G networks. with design & development of using Posco's patented Finex Armoured Fighting Vehicles. It technology. The Finex technology also designs aircraft subsystems is considered environment related to the engine & friendly and makes use of iron ore h y d r a u l i c s . B E M L fines, thereby eliminating the need manufactures a variety of heavy to use coking coal in the steel equipment, such as that used for Indian Oil & British Petroleum making process. earth moving, transport & are looking to form a 50:50 JV

mining, and is Asia's second-to set-up an acetic acid plant in As Finex t e chno logy i s largest manufacturer of earth Gujarat. The plant is planned operational only in the Pohang moving equipment.to have 1 million tonne per plant of Posco in Korea they a n n u m o f a c e t i c a c i d would behaving full operational production and associated control of the JV.gasif ication faci l i t ies for

Rashtriya Ispat Nigam Limited production of synthesis gas. SAIL is also in talks with Kobe ( R I N L ) & Po w e r Gr i d Steel of Japan to set-up a 500,000 Corporation has entered into a

The project is expected to go on tonne alloy steel plant at joint-venture for manufacturing steam by 2015. A feasibility of Transmission Line Towers and Durgapur, West Bengal at an study by both partners is Research & Development of next investment of Rs 2,000 crore currently underway to arrive at generation transmission systems.(US$ 400 million).

Joint-Ventures

UPDATE

PSE Newsletter 9

UPDATE

PSE Newsletter8

Autonomy limit of Rs 5,000

crore may be revised

ICVL looking to secure assets

in Australia

PSE-private sector consortium

wins Afghanistan mine bid

PSEs to train & hire from J&K

for the youth through 9-month plant with 6 million tone annual training modules. Owing to capacity & a power plant with continued unrest in J&K, the 1,100 MW per annum capacity, a The Government is considering local economy has suffered and 200 km road-link, in addition to revising upwards the current has lead to a serious lack of other phys ica l & soc ia l limit of Rs 5,000 crore (about employment opportunities, and infrastructure in the mining area.US$ 1 billion) which the Board con s equen t l y a l a ck o f of Directors of a Maharatna employment-skills among the The consortium will also PSEs have for taking investment youth in that region. organise skills-training to decisions without approval from

enhance employability locally t h e Un i o n C a b i n e t o r Training cost of each participant and contribute to community Administrative Ministries.will be about Rs 2.5 lakh, of development initiatives, in which 50% will be paid by the keeping with the founding The PSEs have been looking to central government. 28 PSEs are charter of the Indian PSEs. The secure energy assets like oil & participating in this program project will generate direct minerals abroad to support high including BHEL, ONGC, employment for 8,000 & growth of the Indian economy. Indian Oil, SAIL, NTPC, HAL indirect employment for 40,000.Given the dynamic nature of a & State Bank of India.globalized economic system, it

has long been felt that speedy decision-making is required to address opportunities for asset International Coal Ventures, acquisitions abroad. Time ICVL, is looking to acquire a consumed in taking approvals for greenfield project in Australia an acquisition that costs over that can generate 2.6 million A consortium of seven Indian US$ 1 billion, which is not a tonnes of coking coal from an public sector & private sector sizeable sum considering the open mine. Coking coal assets companies has won the bid to price of international assets & are in demand from steel develop Afghanistan’s largest cash reserves of PSEs, has tended companies looking for raw iron-ore deposit located at to lose the PSE of the material security.Hajigak. The deposits estimated opportunity of asset acquisitions. at 1.8 billion metric tons, is

considered the largest untapped India is on the look-out for ore deposit in Asia. metallurgical coal reserves to

In order to provide productive meet the increasing appetite for employment to the youth of energy & infrastructure as the The consortium, christened Jammu & Kashmir, PSEs will be Indian economy expands rapidly. “A f g h a n I r o n & S t e e l absorbing 9,000 youth from the The demand for metallurgical Consortium, Afisco,” comprises state each year for the next 5 coal in 2009-10 was 40 million Steel Authority of India, years. The initiative will tonnes (mt), of which 23 mt was National Mineral Development translate into the youth of J&K imported. Demand is expected to Corp, Rashtriya Ispat Nigam & gaining employment at PSE rise to 90 mt by 2020.the private sector Jindal Steel & operations across India, which Power, Monnet Ispat & Energy, w i l l a l so he lp in the i r JSW Ispat Steel & JSW Steel. ICVL is jointly promoted by empowerment & integration SAIL, NTPC, Coal India, with the rest of the country. Rashtriya Ispat Nigam & It will require investments to the

NMDC, and was set up in 2009 tune of US$ 14 billion (Rs 66,000 T h e N a t i o n a l S k i l l to secure coal assets overseas. crore) over 8 to 10 years to develop Development Corporation, ICVL is currently also looking the mines. The consortium has NSDC, will facilitate training to secure assets in Indonesia.committed to building a steel

Investments

MTNL to launch broadband BEML, DRDO JV for defence

wireless services vehicles

SAIL, Posco form JV

Indian Oil, British Petroleum

form JV

Power Grid, RINL JV from

transmission towers

the configuration of the plant. The plant would use BP's latest “Cativa XL” technology, and the M T N L w i l l i n t r o d u c e Bharat Earth Movers & Defence gasification facilities would use broadband wireless services to R e s e a r c h D e v e l o p m e n t petroleum coke feedstock from afford internet connectivity on Organization have set-up a Indian Oil.the go, in the second half of technology centre at the

2012. MTNL will employ LTE Chennai campus of Combat Currently, the supply-demand ( L o n g Te r m Evo l u t i o n ) V e h i c l e R e s e a r c h & gap in India for acetic acid is an technology that affords data Development Establishment estimated 600,000 tonnes per speeds in the range of 60 to 100 (CVRDE). The technology annum, which i s be ing mbps (mega bits per second). centre will enhance Research & addressed through exports. LTE, which is 4G technology, is Development and industry Among the end-uses of acetic compatible with both 2G & 3G linkages to hasten the pace of acid is solid-state packaging based networks. development of vehicles used in rasins, commonly referred to as defence.PET bottles. China accounts for M T N L w i l l f o l l ow t h e 44% of the world’s acetic acid outsourcing-model where BEML & DRDO have earlier production capacity.management of the network & collaborated on projects such as

the services will be given to a third launch & recovery system for party, on revenue sharing basis. the Underwater Autonomous

Steel Authority of India & Posco Vehicle, testing of torque are setting-up a 3 million tonne convertor & quality assurance LTE technology opted by per annum project in Bokaro, in for the Arjun Main Battle Tank, MTNL is considered superior to the state of Jharkhand, at an among others.WiMax which is the alternative investment of Rs 17,000 crore 4G technology. WiMax affords (US$ 4 to 5 billion). Two units of speeds of 40mbps and does not CVRDE is an independent 1.5 million tonnes will be set up at allow for compatibility with 2G DRDO laboratory entrusted Bokaro to produce auto grade steel or 3G networks. with design & development of using Posco's patented Finex Armoured Fighting Vehicles. It technology. The Finex technology also designs aircraft subsystems is considered environment related to the engine & friendly and makes use of iron ore h y d r a u l i c s . B E M L fines, thereby eliminating the need manufactures a variety of heavy to use coking coal in the steel equipment, such as that used for Indian Oil & British Petroleum making process. earth moving, transport & are looking to form a 50:50 JV

mining, and is Asia's second-to set-up an acetic acid plant in As Finex t e chno logy i s largest manufacturer of earth Gujarat. The plant is planned operational only in the Pohang moving equipment.to have 1 million tonne per plant of Posco in Korea they a n n u m o f a c e t i c a c i d would behaving full operational production and associated control of the JV.gasif ication faci l i t ies for

Rashtriya Ispat Nigam Limited production of synthesis gas. SAIL is also in talks with Kobe ( R I N L ) & Po w e r Gr i d Steel of Japan to set-up a 500,000 Corporation has entered into a

The project is expected to go on tonne alloy steel plant at joint-venture for manufacturing steam by 2015. A feasibility of Transmission Line Towers and Durgapur, West Bengal at an study by both partners is Research & Development of next investment of Rs 2,000 crore currently underway to arrive at generation transmission systems.(US$ 400 million).

Joint-Ventures

UPDATE

PSE Newsletter10

UPDATE

PSE Newsletter 11

The JV will synergize operations modernizedand expanded at an 720 sq ft) three years back to Rs of the producers, viz RINL and investment of Rs 17,000 crore 2 lakh a cottah now.consumers viz Powergrid. The (US$ 3.6 billion) to come on JV will be located at Vizag, and steam from mid-2012. The The origins of IISCO date back will entail an investment of IISCO plant will be SAIL’s fifth to 1874, and in 1960s its about Rs 350 crore with a 2 lakh integrated steel plant and production was 1 million tonnes tonne annual capacity. r e p r e s e n t s t h e s i n g l e annually with a workforce of

largestinvestment in West 18,000. In 1972 IISCO was The JV will not only address the Bengal. The plant is spread over nationalized and for want of demand of the fast expanding an area of 950 acres. modernization, its production power sector in India but also in

declined until it was referred to South East Asia.There are currently 22,000 BIFR in 1994, and Burnpur workers at the site working to subsequently degenerated into a complete the plant, and the ghost town. The plant was inves tment inc ludes road merged with SAIL in 2005, and National Aluminium Company, infrastructure for seamless in 2006 a modernisation Nalco, is looking to form a joint-access to the plant. The new program went underway at the venture with the Gujarat-state p l an t w i l l have annua l plant.promoted Gujarat Minerals production capacity of 2.5 Development Corp, GMDC, to million tonnes of structural-mine Buaxite in the Kutch steel & pig-iron, and will region. Bauxite is the main employ about 5,500. The source of aluminium and Kutch international benchmark is a has 63 million tonnes of Bauxite w o r k f o r c e o f reserves.1 , 0 0 0 f o r production of 1 The proposed plant would have million tonnes.the capacity of 500,000 tonnes

of smelter and 1,000,000 tonnes With each person of refined alumina per annum, directly employed at an investment of Rs 10,000 to at the plant, four 12,000 crore.persons will get i n d i r e c t Gujarat currently has 18.75 employment.Manmillion tonnes of mineable high-ufacturing units grade bauxite ore reserves in 10 locally have got locations. GMDC is mining orders totalling Rs GAIL & Hindustan Unilever Ltd about 100,000 tonnes of high-1,000 crore so far as the plant is have received the National Award grade and 800,000 tonnes of being built. for Excellence in Corporate medium-grade bauxite annually.

Governance for the year 2011. As the plant readies for The award has been instituted by completion, residential & the Institute of Company commercial development in the Secretaries of India (ICSI), and form of malls & residential every year the two best governed complexes are also being companies receive the award.

The Indian Iron & Steel constructed. In fact, land prices Union Minister for Corporate Company (IISCO) plant in at Burnpur have increased from Affairs M Veerappa Moily gave Burnpur, West Bengal, is being Rs 25,000 a cottah (1 cottah = away the awards for this year.

Nalco, Gujarat Minerals

looking to form JV

GAIL receives ICSI award for

Corporate Governance

IISCO revival revives a whole

town

Awards

Turnaround: A Case-Study

On behalf of the companies, BC The scheme is found to have impact on environment, provide Tripathi, Chairman & MD, GAIL i n c r e a s e d e n r o l m e n t & saving in cost and enhance speed & Dev Bajpai, Executive Director, academic performance of of construction work. In fact, HUL received the awards. children across schools in India, m e a s u r e s t o m i t i g a t e

affording underprivileged environment impact were in-children to explore their ICSI gives away this award every built in the project design & p o t e n t i a l a n d b e c o m e year to the two best governed construction technique.productive members of their companies in India.communities.Given the geological conditions

in Sikkim including seismic and environment, it was essential to

Mr Ram Singh, Director – adopt a design which not only Finance & a member of the met the safety requirement but Board, Engineers India Ltd has alsoblended well with the natural been conferred the “GSBA-Top surroundings. Accordingly, a Rankers Excellence Award for design employing local stones, Finance” by Top Rankers, an earth vegetation & high strength HR consultancy firm. This “geogrid” was adopted which has award is given away each year for proved not only environment exemplary contribution to the friendly but has also resulted in d i s c i p l i n e o f F i n a n c i a l speedier construction, flexibility Management. and 30 to 40% savings in cost.

Mr Sham Lal Goyal has taken Mr Ram Singh is a Cost The cons t ruc t ion cou ld c h a r g e a s C h a i r m a n & Accountant by Profession. withstand successfully the recent Managing Director, National

earthquake which measured 6.8 Fertilizers Ltd (NFL). This will on the Richer scale. b e i n a d d i t i o n t o h i s

re spons ib i l i t i e s a s Jo int Secretary in the Ministry of Chemicals & Ferti l izers , Government of India.

Mr Goyal has previously served the Government of Maharashtra in various capacities including the Department of Animal Husbandry, Dairy & Fisheries; Commissioner - ESI Scheme; Secretary - Department of Env i ronment , Manag ing

Engineers India Ltd, EIL, under Director, Maharashtra State Airports Authority of India, AAI, its CSR initiative has provided Farming Corporation among has designed and constructed a four vehicles to ISKCON Food others.greenfield airport at Pakyong, Relief Foundation (IFRF) for Sikkim which is located in the delivering mid-day meals to Mr Goyal is Maharashtra Cadre foothills of the Himalayas. The school students of Government IAS officer of 1985 batch. He airport has demonstrated how & Municipal schools in & has done a Bachelor’s in new technologies can minimize around Gurgaon. Mechanical Engineering, with

EIL Finance Director

conferred Excellence award

Sham Lal Goyal takes charge

as CMD, National Fertilizers

EIL’s support for mid-day

meals scheme

AAI builds “green” airport

Appointments

CSR Initiatives

BC Tripathi, CMD, GAIL (left) receiving the award fromM Veerappa Moily (2nd from right)

Archna Agrawal, President, AAI Women Welfare Association receiving Greentech award for Pakyong airport

A vehicle to ferry food hygienically

UPDATE

PSE Newsletter10

UPDATE

PSE Newsletter 11

The JV will synergize operations modernizedand expanded at an 720 sq ft) three years back to Rs of the producers, viz RINL and investment of Rs 17,000 crore 2 lakh a cottah now.consumers viz Powergrid. The (US$ 3.6 billion) to come on JV will be located at Vizag, and steam from mid-2012. The The origins of IISCO date back will entail an investment of IISCO plant will be SAIL’s fifth to 1874, and in 1960s its about Rs 350 crore with a 2 lakh integrated steel plant and production was 1 million tonnes tonne annual capacity. r e p r e s e n t s t h e s i n g l e annually with a workforce of

largestinvestment in West 18,000. In 1972 IISCO was The JV will not only address the Bengal. The plant is spread over nationalized and for want of demand of the fast expanding an area of 950 acres. modernization, its production power sector in India but also in

declined until it was referred to South East Asia.There are currently 22,000 BIFR in 1994, and Burnpur workers at the site working to subsequently degenerated into a complete the plant, and the ghost town. The plant was inves tment inc ludes road merged with SAIL in 2005, and National Aluminium Company, infrastructure for seamless in 2006 a modernisation Nalco, is looking to form a joint-access to the plant. The new program went underway at the venture with the Gujarat-state p l an t w i l l have annua l plant.promoted Gujarat Minerals production capacity of 2.5 Development Corp, GMDC, to million tonnes of structural-mine Buaxite in the Kutch steel & pig-iron, and will region. Bauxite is the main employ about 5,500. The source of aluminium and Kutch international benchmark is a has 63 million tonnes of Bauxite w o r k f o r c e o f reserves.1 , 0 0 0 f o r production of 1 The proposed plant would have million tonnes.the capacity of 500,000 tonnes

of smelter and 1,000,000 tonnes With each person of refined alumina per annum, directly employed at an investment of Rs 10,000 to at the plant, four 12,000 crore.persons will get i n d i r e c t Gujarat currently has 18.75 employment.Manmillion tonnes of mineable high-ufacturing units grade bauxite ore reserves in 10 locally have got locations. GMDC is mining orders totalling Rs GAIL & Hindustan Unilever Ltd about 100,000 tonnes of high-1,000 crore so far as the plant is have received the National Award grade and 800,000 tonnes of being built. for Excellence in Corporate medium-grade bauxite annually.

Governance for the year 2011. As the plant readies for The award has been instituted by completion, residential & the Institute of Company commercial development in the Secretaries of India (ICSI), and form of malls & residential every year the two best governed complexes are also being companies receive the award.

The Indian Iron & Steel constructed. In fact, land prices Union Minister for Corporate Company (IISCO) plant in at Burnpur have increased from Affairs M Veerappa Moily gave Burnpur, West Bengal, is being Rs 25,000 a cottah (1 cottah = away the awards for this year.

Nalco, Gujarat Minerals

looking to form JV

GAIL receives ICSI award for

Corporate Governance

IISCO revival revives a whole

town

Awards

Turnaround: A Case-Study

On behalf of the companies, BC The scheme is found to have impact on environment, provide Tripathi, Chairman & MD, GAIL i n c r e a s e d e n r o l m e n t & saving in cost and enhance speed & Dev Bajpai, Executive Director, academic performance of of construction work. In fact, HUL received the awards. children across schools in India, m e a s u r e s t o m i t i g a t e

affording underprivileged environment impact were in-children to explore their ICSI gives away this award every built in the project design & p o t e n t i a l a n d b e c o m e year to the two best governed construction technique.productive members of their companies in India.communities.Given the geological conditions

in Sikkim including seismic and environment, it was essential to

Mr Ram Singh, Director – adopt a design which not only Finance & a member of the met the safety requirement but Board, Engineers India Ltd has alsoblended well with the natural been conferred the “GSBA-Top surroundings. Accordingly, a Rankers Excellence Award for design employing local stones, Finance” by Top Rankers, an earth vegetation & high strength HR consultancy firm. This “geogrid” was adopted which has award is given away each year for proved not only environment exemplary contribution to the friendly but has also resulted in d i s c i p l i n e o f F i n a n c i a l speedier construction, flexibility Management. and 30 to 40% savings in cost.

Mr Sham Lal Goyal has taken Mr Ram Singh is a Cost The cons t ruc t ion cou ld c h a r g e a s C h a i r m a n & Accountant by Profession. withstand successfully the recent Managing Director, National

earthquake which measured 6.8 Fertilizers Ltd (NFL). This will on the Richer scale. b e i n a d d i t i o n t o h i s

re spons ib i l i t i e s a s Jo int Secretary in the Ministry of Chemicals & Ferti l izers , Government of India.

Mr Goyal has previously served the Government of Maharashtra in various capacities including the Department of Animal Husbandry, Dairy & Fisheries; Commissioner - ESI Scheme; Secretary - Department of Env i ronment , Manag ing

Engineers India Ltd, EIL, under Director, Maharashtra State Airports Authority of India, AAI, its CSR initiative has provided Farming Corporation among has designed and constructed a four vehicles to ISKCON Food others.greenfield airport at Pakyong, Relief Foundation (IFRF) for Sikkim which is located in the delivering mid-day meals to Mr Goyal is Maharashtra Cadre foothills of the Himalayas. The school students of Government IAS officer of 1985 batch. He airport has demonstrated how & Municipal schools in & has done a Bachelor’s in new technologies can minimize around Gurgaon. Mechanical Engineering, with

EIL Finance Director

conferred Excellence award

Sham Lal Goyal takes charge

as CMD, National Fertilizers

EIL’s support for mid-day

meals scheme

AAI builds “green” airport

Appointments

CSR Initiatives

BC Tripathi, CMD, GAIL (left) receiving the award fromM Veerappa Moily (2nd from right)

Archna Agrawal, President, AAI Women Welfare Association receiving Greentech award for Pakyong airport

A vehicle to ferry food hygienically

UPDATE

distinction, from Punjab Design facilities in Hyderabad, c h a r g e a s D i r e c t o r f o r E n g i n e e r i n g C o l l e g e , Nasik, Lucknow, Kanpur, Operations of Cochin Shipyard, Chandigarh. Korwa, Koraput &Barrackpore. with effect from Nov 21, 2011.

HAL has a workforce of about Previously, Capt Sundar was the 33,000 and registered revenues Project Director at Mazagon of Rs 11,250 crore in the last Dock Ltd, and spearheaded the financial year. team that delivered INS Shivalik

& INS Satpura to the Indian Mr S Venkataramana has taken Navy.charge as Managing Director,

C h e n n a i P e t r o l e u m Corporation Ltd (CPCL). This Capt RS Sundar has served the will be in addition to his current Indian Navy for three decades.responsibilities as Director (Operations), CPCL. Cochin Shipyard, based in

Kerala, is the largest shipyard in Mr Venkataramana spearheaded India. It was established in 1972 the commissioning of CPCL’s 3 with building capacity of up to mmtpa (million metric tonnes 1.1 million tonnes and repair perannum) expansion cum capacity of up to 1.25 million Mr SP Gathoo has taken charge modernization project, which tonnes.a s Direc tor fo r Human won accolades from the entire Resources, Bharat Petroleum oil industry. Corporation Ltd (BPCL), with

effect from Nov 3, 2011. He was Mr Venkataramana started his Mr Ashok Kumar Mishra has previously Executive Director c a r e e r w i t h H i n d u s t a n taken charge as Director (Human Resource Services) Petroleum Corporation in F i n a n c e , H i n d u s t a n with BPCL.1982. He holds an MTech with Aeronautics Ltd. Previously, he Distinction from AC College of was Executive Director Finance, At BPCL Mr Gathoo has been Technology, Anna University, HAL.instrumental in a number of key Chennai, and an MBA. initiatives across functions, such as

Mr Mishra has also served as SAP implementation, launch of Chief Manager (Finance), MAK brand of lubricants, a self-Indian Telephone Industries, service portal for employees & a

Mr PV Deshmukh has taken and joined HAL as Deputy Corporate Social Responsibility charge as Officiating Chairman General Manager (Finance) in project related to education & of Hindustan Aeronautics Ltd, 1994. water resource management.with effect from Nov 1, 2011. He has been Managing Director, He is a fellow member of the Mr Gathoo holds an MBA in MiG Complex, HAL’s Nasik I n s t i t u t e o f C h a r t e r e d Personnel Management from unit, and will continue to hold Accountants of India (ICAI), an the University of Pune.this position also with the alumnus of National Law Chairmanship. School of India (NLSIU),

Bangalore and also an examiner HAL’s corporate office is located – Ph.D, Lucknow University.at Bangalore, and Production & Capt RS Sundar, has taken

S Venkataramana takes

charge as MD, Chennai

Petroleum

SP Gathoo takes charge as

Director HR, Bharat Petroleum

Ashok Mishra takes charge as

Director Finance HAL

PV Deshmukh takes charge

as Officiating Chairman HAL

RS Sundar takes charge as

Director Operations, Cochin

Shipyard

8

For comments/suggestions, please write to Nita Karmakar, Director, CII at nita.karmakar@cii.inDisclaimer: The data used here are from various published and electronically available primary and secondary sources. We have taken care to verify and cross-check the accuracy ofsuch data. However, despite due diligence, the source data may contain occasional errors. In such instances, CII is not responsible for such errors.

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