Indian Core Industries grew by 6.8% in November

Index of Eight Core Industries (Base: 2004-05=100), November 2011

The summarized Index of Eight Core Industries with 2004-05 base is given at the Annexure. The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) stood at 141.1 in November 2011 with a growth rate of 6.8% compared to its growth at 3.7% in November 2010. During April-November 2011-12, the cumulative growth rate of the Core industries was 4.6% as against their growth at 5.6% during the corresponding period in 2010-11. Coal: Coal production (weight: 4.38%) registered a growth of 4.9% in November 2011 compared to its growth at 0.7% in November 2010. Coal production grew by (-) 4.0% during April-November 2011-12 compared to its growth at 0.4% during the same period of 2010-11.  Crude Oil: Crude Oil production (weight: 5.22%) registered a growth of (-)5.6% in November 2011 compared to its growth at 17.0% in November 2010. Crude Oil production registered a growth of 2.9% during April-November 2011-12 compared to its growth at 11.5% during the same period of 2010-11. Natural Gas: Natural Gas production (weight: 1.71%) registered a growth of (-) 10.1% in November 2011 compared to its growth at 5.5% in November 2010. Natural Gas production registered a growth of (-) 8.5% during April-November2011-12 compared to its growth at 19.9% during the same period of 2010-11. Petroleum Refinery Products (0.93% of Crude Throughput)*: Petroleum refinery production (weight: 5.94%) had a growth of 11.2% in November 2011 compared to its growth at (-) 3.5% in November 2010.  Petroleum refinery production registered a growth of 4.5% during April-November 2011-12 compared to its 0.8% growth during the same period of 2010-11. Fertilizers: Fertilizer production (weight: 1.25%) registered a growth of (-) 2.4% in November 2011 against its growth at 0.0% in November 2010.Fertilizer production grew by (-)0.1% during April-November 2011-12 compared to its growth at (-) 1.7% during the same period of 2010-11.  Steel (Alloy + Non-Alloy) : Steel production (weight: 6.68%) had a growth rate of 5.1% in November 2011 against its 7.6% growth in November 2010. Steel production grew at a same rate of 8.2% during April-November 2010-11 and 2011-12. Cement: Cement production (weight: 2.41%) registered a growth of 16.6% in November 2011 against its (-) 4.3% growth in November 2010. Cement Production grew by 4.3% during April-November 2011-12 compared to its growth at 5.3% during the same period of 2010-11. Electricity: Electricity generation (weight: 10.32%) had a 14.1% growth in November 2011 compared to its 3.5% growth in November 2010. Electricity generation grew by 9.3% during April-November 2011-12 as against its 4.6% growth during the same period of 2010-11.

NMDC, India Result by Indian Steel Minister

Steel Minister Reviews the Performance of NMDC

The Union Steel Minister Shri Beni Prasad Verma has reviewed the performance of NMDC Ltd., a Navratna PSU under Ministry of Steel for the first quarter (April-June), 2011-12 here today. The CMD of NMDC Shri Rana Som briefed the Minister about the performance of the company during the first quarter of 2011-12 and highlighted its achievements against the MoU targets for the year quarter. The Minister expressed satisfaction over the performance of the company in the first quarter of the financial year 2011-12. He was informed that the Company has embarked upon expansion and diversification plans in India and abroad. However, the Minister stressed that the upcoming projects of NMDC in India and abroad specially its 3 MTPA Integrated Steel Plant at Nagarnar, Chhattisgarh, its 1.2 MTPA Pellet Plant in Donimalali, development of Deposit – 11B Mine in Bailadila Sector, Chhattisgarh and Kumaraswamy Mine in Karnataka needs to be completed as per schedule. The Minister also appreciated the R&D efforts of the Company for converting the low grade iron ores such as BHJ and BHQ into value added products. The Company has been consistently showing excellent results. During the year 2010-11, the production of iron ore was 25.16 million tonnes as compared to 23.80 million tonnes during previous year showing a growth of about 6%. Sales Turnover of the company during 2010-11 was Rs. 11367.42 crores against Rs. 6229.54 crores during the previous year, registering an increase of about 82%. The company earned profit before tax of Rs. 9727.17 crores during 2010-11 as compared to Rs. 5207.32 crores during previous year and profit after tax during 2010-11 was Rs. 6499.22 crores as compared to Rs. 3447.26 crores during previous year. The performance has further improved during the first quarter of 2011-12. During the period April – June, 2011, the production of iron ore was 6.07 million tonnes as compared to 5.76 million tonnes in the corresponding period of previous year showing a growth of 5%. The turnover during first quarter of 2011-12 was Rs. 2782.61 crores in comparison to Rs. 2517.99 crores during the first quarter of 2010-11. The profit before tax during Q1 of 2011-12 was Rs. 2662.69 crores in comparison to Rs. 2249.22 crores of the first quarter of 2010-11. ***

Indian Core Industries Index rises by 7.8%

Ministry of Commerce & Industry30-August, 2011 17:48 IST

Index of Eight Core Industries (Base: 2004-05=100) July 2011

The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) with base 2004-05 stood at 143.22 in July 2011 and registered a growth of 7.8% compared to 5.7% registered in July 2010.  During April-July 2011-12, eight core industries registered a growth of 5.8% as against 6.5% during the corresponding period of the previous year 2010-11. Coal Coal production (weight of 4.38% in the IIP) registered a growth of 2.4% in July 2011 compared to growth of 4.5% in July 2010. Coal production grew by 0.7% during April-July 2011-12 compared to an increase of 0.6% during the same period of 2010-11.  Crude Oil Crude Oil production (weight of 5.22% in the IIP) registered a growth of 1.4 % in July 2011 compared to a growth of 15.8% in July2010. The Crude Oil production registered a growth of 7.3% during April-July 2011-12 compared to 8.4% during the same period of 2010-11. Natural Gas Natural Gas production (weight of 1.71% in the IIP) registered a growth of (-) 8.2% in July 2011 compared to growth of 20.0% in July2010. The Natural Gas production registered a growth of (-) 9.7% during April-July 2011-12 compared to 32.3% during the same period of 2010-11. Petroleum Refinery Products Petroleum refinery production (weight of 5.94% in the IIP) registered a growth of 3.9% in July 2011 compared to growth of 13.7% inJuly 2010. The Petroleum refinery production registered a growth of 4.9% during April-July 2011-12 compared to 7.3% during the same period of 2010-11. Fertilizers Fertilizer production (weight of 1.25% in the IIP) registered a growth of (-) 1.6% in July 2011 compared to (-) 0.3% in July2010.Fertilizer production grew by 0.4% during April-July 2011-12 compared to an increase of (-) 2.0% during the same period of 2010-11.  Steel (Alloy + Non-Alloy) Steel production (weight of 6.68% in the IIP) registered a growth of 15.5% in July 2011 compared to (-) 2.9% in July 2010. Steel production grew by 10.1% during April-July 2011-12 compared to an increase of 5.5% during the same period of 2010-11. Cement Cement production (weight of 2.41% in the IIP) registered a growth of 10.6% in July 2011 compared to (-) 0.2% in July 2010. Cement Production grew by 1.8% during April-July 2011-12 compared to an increase of 5.3% during the same period of 2010-11. Electricity Electricity generation (weight of 10.32% in the IIP) registered a growth of 13.0% in July 2011 compared to a growth of 4.2% in July2010. Electricity generation grew by 9.4% during April-July 2011-12 compared to 5.3% during the same period of 2010-11.

Indian Miners in Karnataka: Sesa Goa, JSW Steel, etc

Mining ban extended in Karnataka

Supreme Court (SC) extends mining ban to Tumkur and Chitradurga districts:

Central Empowered Committee (CEC) had found that iron ore miners
resorted to illegal mining activity in Chitradurga and Tumkur districts of
Karnataka resulting in environmental damage and loss of forest cover. As per
CEC, the level of illegal mining and the consequential environmental
degradation in these two districts were similar to that in Bellary district. Thus,
based on the CEC’s suggestions, the SC has extended the ban to Tumkur and
Chitradurga districts. These two district account for approximately 20% of
Karnataka’s iron ore production. Earlier (on July 29, 2011), the SC had
ordered a blanket ban on mining in Bellary district of Karnataka (accounts for
80% of Karnataka’s iron ore production).


Severe steel production cuts underway in the region

With extension of mining ban in Chitradurga and Tumkur districts, iron ore
 production will decline drastically in the state which will be followed up
 by severe cuts in steel production in the region. Some of the plants in the
 region have been already shut down while several plants are running at
a lower utilisation levels on the back of shortage of iron ore to feed their furnaces.
 Steel industry in the region requires approx. 2.9mn tonnes of iron ore per month.
Currently iron ore from Karnataka is used to feed plants of companies that
include JSW Steel, Kalyani Steels, Mukand Steels, Kirloskar Ferrous, MSPL,
 BMM Ispat etc.

Further, several sponge iron manufacturers in Tamil Nadu and Goa also
source iron ore from Karnataka. On the supply front, NMDC’s Bellary mine is
the only major mine operating in the region; however, it is still to achieve its
targeted run-rate of 1mn tonne per month from its Bellary mines.
Auctions of piled-up inventory may provide some relief: The current iron ore
inventory at Karnataka’s mines is estimated at 25mn tonnes, which includes
~11mn tonnes of high-grade iron ore. As per JSW Steel, the SC is expected
to provide guidelines on auction of this iron ore inventory on September 02,
2011. SC has indicated that it will ensure that the required amount of ore is
released so that the steel industry does not suffer. Further, SC will look into
rehabilitation and forestation package and henceforth, permit regulated
mining in the region. This may take several months.

Sesa Goa’s Chitradurga mine to be shut:  Sesa Goa operates an iron ore mine
in Chitradurga district which would be shut down until further update by SC.
Our earlier estimate of production and sales volumes from Chitradurga mine
for FY2012 was 5mn tonnes (21.8% of Sesa’s total production volumes for
FY2012). With mining ban in the region,  now prune  production and
sales volume estimates for FY2012 and FY2013. It is expected no
production from Chitradurga mines. Except a  lower our target price to `253
(`335), valuing the stock at 3.0x FY2013 EV/EBITDA

The Question now hang on the fire, to the Extent to Which and Whether the companies
to Punishment. Shri Rao, JSW Steel, in his Press Conference had, Disassociated from t
the Mafia, But the Lok Ayuktta Report had mentioned there name. Market is expecting
Some Fine to be imposed on some of the Biggies  and  whether is takes the proportion of
the ' 2G ' Scam or worse..?