WCA MAY 2015

India Insight

Electrification probe The competition commission of India has instigated a probe into REC Power Distribution Company for the alleged misuse of its dominant position in financing rural electrification schemes. The commission has directed the director-general to complete the investigation in 60 days. REC Power Distribution Company is a wholly owned subsidiary of Rural Electrification Corporation Ltd, a Navratna central public sector enterprise (CPSE) under the power ministry. A complaint received by the commission alleged that there is a conflict of interest between REC Power Distribution Company and its parent company in implementing the Rajeev Gandhi Grameen Vidyutikaran Yojna scheme of rural electricity infrastructure and household electrification. The complainant alleges that, despite there being several CPSEs and private companies operating in the market to prepare detailed project reports (DPRs), choosing REC Power Distribution Company without following any tendering process is an elimination of fair competition in the market. REC, through a network of 13 project offices and five zonal offices, has been engaged in financing and promoting rural electrification projects across India. Its main objectives are to promote, develop, construct, own, operate, distribute and maintain electric supply lines of 66kV and below, and provide consultancy in electrification for agencies and government bodies in India and abroad. REC Power Distribution Company – India Website : www.recpdcl.in Possible company sale Tata Steel has signed a memorandum of understanding with the Klesch Group to undertake preparation and negotiation for the potential sale of its Long Products Europe business and associated distribution activities. The memorandum covers several UK-based assets including Tata Steel’s Scunthorpe steelworks, mills in Teesside, Dalzell and Clydebridge in Scotland, an engineering workshop in Workington and a rail consultancy in York, as well as operations in France and Germany. About 6,500 people are employed at Long Products Europe and its distribution facilities. Karl Koehler, chief executive of Tata Steel’s European operations, said: “We will now move into detailed due diligence and negotiations, though no assurance can be given about the outcome.” Explaining the context and rationale for this decision, he added: “We’ve improved the competitiveness of Tata Steel’s European operations, including Long Products Europe

which now supplies more of the innovative steel rail, rod, plate, sections and special profile products demanded by customers.” “We have…decided to concentrate our resources mainly on our strip products activities, where we have greater cross-European production and technological synergies,” he added. Tata Steel – India TMT coils in production The first 40 wagons (2,209.87 tonnes) of 8mm TMT coils produced from IISCO Steel Plant’s Concast steel billets have been dispatched to the Durgapur Steel Exchange yard for distribution. The TMT coils were rolled from 150mm x 150mm x 12mm billets, produced by the continuous casting plants at Burnpur, West Bengal. To date, a total of 3,766 tonnes of coils have been produced at the mill. Congratulating the employees, executive director-in-charge Ishwar Chandra Sahu said that there is heavy demand for these earthquake-resistant TMT bars, and anticipates sustained production. The production of TMT bars at the new wire rod mill began on 9 th January 2014, originally using billets from the Durgapur Steel Plant. Since its first dispatch of 8mm TMT coils the mill has achieved significant milestones in both quality and quantity, and now only billets produced at IISCO Steel Plant are used to produce TMT coils. IISCO Steel – India Website : www.sail.co.in Forest fibre The Maharashtra government has given clearance for the laying of fibre optic cables through forest areas, except national parks and wildlife sanctuaries, provided no trees are felled for the work. Maharashtra’s forest minister, Sudhir Mungantiwar, took the decision to facilitate work on providing broadband Internet connectivity to all gram panchayat areas in the state under the national optical fibre network scheme. The regional deputy conservator of forests will have the powers to grant permission to dig through forestlands. In an official statement, Mr Mungantiwar said: “If such optical fibre lines are to be laid through forestlands, it will no more be necessary to submit a proposal to the state government, which is mandatory for other such projects.” Website : www.tatasteel.com Klesch Group – Switzerland Website : www.klesch.com

Maharashtra Government – India Website : www.maharashtra.gov.in

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Wire & Cable ASIA – May/June 2015