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The Hindu
14 hours ago
- Politics
- The Hindu
Palla calls VSP privatisation charges by Opposition ‘false propaganda'
Dismissing the charges levelled by the Opposition that the Telugu Desam Party (TDP)-led NDA government is hand in glove with the Central government on the privatisation of Visakhapatnam Steel Plant (VSP) as 'baseless', TDP Andhra Pradesh unit president Palla Srinivasa Rao has called it a 'false propaganda' by the trade unions and the Opposition parties. Addressing the media in Vijayawada on Tuesday, Mr. Srinivasa Rao reiterated that the NDA government in the State was committed to protecting the VSP and ensuring its continuation as a public sector unit (PSU). 'The YSRCP, Congress, Left parties and trade unions are spreading false propaganda that the VSP would be privatised. Some harsh decisions are inevitable for the continuation of the VSP as a PSU, and this includes the privatisation of some sections of the plant to improve productivity and reduce costs,' Mr. Srinivasa Rao said. He said the bids called for Expression of Interest (EOI) recently was a 'step in that direction'. 'Some sections of the VSP would be given to good companies to improve efficiency. This has been happening for a long. There is nothing new in it,' the TDP leader said. He recalled that then Chief Minister N. Chandrababu Naidu and MP Yerran Naidu convinced then Prime Minister Atal Bihari Vajpayee and prevented the VSP from going into the red by securing funds for it in 1998. Visakhapatnam MP M. Sribharat and Union Civil Aviation Minister K. Rammohan Naidu had helped secure Central funds of ₹1,440 crore for the VSP this year to ensure steady supply of raw material. The third Blast Furnace was made operational after years and the VSP has achieved its highest production recently. 'The YSRCP, which had done nothing for the VSP during its tenure, is spreading false propaganda to mislead the plant workers and the people. Some trade union leaders had cheated the workers during the last five years and were responsible for the recruitment of a large number of 'ghost workers' on a contract basis by taking ₹3 lakh to ₹8 lakh from people. A probe will be ordered into the issue,' Mr. Srinivasa Rao said. Pointing out that the monthly salary bill of the VSP employees and officers stands at ₹240 crore, he said, 'If two Blast Furnaces operate to full capacity, the plant can just achieve a breakeven. The third Blast Furnace, which had not been working for the past several years, was made functional after the NDA government came to power in the State.' 'Our goal is the continuation of the VSP as the public sector unit. It should run to its full capacity and to do justice to the 8,000 displaced persons,' Mr. Srinivasa Rao added.
The Hindu
17 hours ago
- Politics
- The Hindu
CPI(M) demands cancellation of bids for privatisation of 44 departments in Visakhapatnam Steel Plant
Demanding the immediate intervention of Chief Minister N. Chandrababu Naidu and Deputy Chief Minister K. Pawan Kalyan to cancel the bids issued for Expression of Interest (EOI) towards privatisation of 44 departments in the Visakhapatnam Steel Plant (VSP), representatives of the CPI(M) district committee staged a protest at Jagadamba Junction here on Tuesday. Addressing the protesters, CPI(M) district secretary M. Jaggunaidu recalled that Prime Minister Narendra Modi had assured that VSP would remain in the public sector while announcing the revival package. He pointed out that the Chief Minister and Deputy Chief Minister too had promised there would be no privatisation, displaced persons would be given justice, and the revival package was showcased as an achievement of the alliance government within its first year in power. However, Mr. Jaggunaidu alleged that the package was intended to mislead workers and the public, while accelerating the privatisation process. At present, he said, VSP engages nearly 600 local private agencies and contractors, who are set to be replaced by around 50 large firms working under the influence of the Centre and the State government. This, he warned, would deprive officials and permanent employees of any say in operations. He further cautioned that the move would result in downsizing of permanent staff and mass termination of contract workers. Outsourced workers from other States would be appointed instead, without rights or job security. The EOI, he alleged, was designed to benefit big contractors and politically influential groups. VSP, which provides employment to nearly one lakh people directly and indirectly and has contributed about ₹54,000 crore to the Centre and State in taxes and dividends, was being handed over to vested interests, he alleged. CPI(M) district secretariat member B. Ganga Rao came down heavily on TDP State president and Gajuwaka MLA Palla Srinivasa Rao, and Visakhapatnam MP M. Sribharat for not opposing the termination of 5,000 contract workers and 2,000 permanent workers in VSP. He termed it a betrayal of the people who had voted them to power. District leaders R.K.S.V. Kumar, P. Mani, B. Jagan, V. Krishna Rao, B. Eswaramma, Subba Rao, P. Pydiraju and U.S.N. Raju also took part in the protest.
India Gazette
07-07-2025
- Business
- India Gazette
India trying to develop full E&P deepwater technology ecosystem: Hardeep Puri
New Delhi [India], July 7 (ANI): India is trying to develop a full exploration and production (E&P) deepwater technology ecosystem, as the country plans to explore over 2.5 lakh sq km in the Open Acreage Licensing Policy Round 10, Petroleum and Natural Gas Minister Hardeep said on Monday. In a series of posts on X, the Union Minister dubbed Round 10 as one of the largest offshore exploration bidding rounds globally. The Open Acreage Licensing Programme (OALP) provides potential investors with the freedom to select blocks of their choice by submitting an Expression of Interest (EOI). In a roundtable with representatives of the Offshore Energy Cluster in Bergen, Norway, the Union minister held discussions on technologies including well services, subsea operations, testing, maintenance operations, drilling tools, drilling submersible rigs, well completion services, high pressure high-temperature wells, drillships, monitoring technologies covering the entire gamut of hydrocarbons exploration, particularly deep sea exploration by the Norwegian energy professionals. Representatives from TechnipFMC, Reach Subsea, DNV Group, Odfjell Drilling, CCB Subsea, Shearwater, Innovasjon Norge, Norwegian Energy Partners, and Equinor India. Further, to provide momentum to India's efforts to achieve energy security, the minister visited the Northern Lights CO2 Terminal in Bergen, Norway. It is the largest carbon storage project funded by the Norwegian Government and partnered by Equinor, Shell, and TotalEnergies. 'This unique project can store up to 100 million tonnes of carbon dioxide. It has an open and flexible infrastructure to transport CO2 from capture sites by ship to a receiving terminal in western Norway for intermediate storage, before being transported by pipeline for safe and permanent storage in a reservoir 110 kms away from shore and 2,600 metres under the seabed,' the minister wrote in a post on X. 'We are reviewing this, and similar projects, to upgrade and expand India's energy capabilities. Norway's expertise in deepwater exploration, seismic oil surveys, offshore wind and carbon capture and storage (CCS) technologies aligns well with India's ambitious energy transition agenda,' he wrote. The minister also visited the CCB Energy Blue Hydrogen Plant, a first-of-its-kind commercial blue hydrogen facility located in Kollsnes as part of CCB Energy Park in Oygarden, Norway. 'It was interesting to see world's first commercial plant which produces blue hydrogen with integrated carbon capture and subsea storage. This strategically positioned plant is a joint initiative between CCB Energy (a part of CCB Energy Holding and H2 Production) and ZEG Power, leveraging proprietary 'ZEG-H' reforming technology with built-in CO capture. The captured carbon is transported to the adjacent Northern Lights facility for storage. The pilot plant produces around 1 ton of hydrogen per day while capturing nearly all associated CO2,' he wrote. (ANI)
Business Recorder
17-06-2025
- Business
- Business Recorder
Fauji Fertilizer keen in acquiring stake in PIA
KARACHI: In a significant development for Pakistan's corporate and aviation sectors, Fauji Fertilizer Company Limited (FFC) has formally announced its intention to explore a potential acquisition of stakes in Pakistan International Airlines Corporation Limited (PIACL), the country's national flag carrier. In a disclosure to the Pakistan Stock Exchange (PSX), FFC revealed that its Board of Directors, during their recent meeting, approved the submission of an Expression of Interest (EOI) and prequalification documents to the Privatization Commission of Pakistan. This strategic move signals FFC's growing interest in participating in the ongoing privatization process of state-owned enterprises, particularly the financially troubled national airline. The board also sanctioned a comprehensive due diligence exercise to thoroughly assess PIACL's financial, operational, and legal standing before any final investment decision. The official disclosure was signed by Brig Khurram Shahzada (Retd), Company Secretary of FFC, and filed in accordance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the PSX Rule Book. Pakistan's Fauji Fertilizer seeks entry into aviation, eyes PIA acquisition Industry analysts view this cross-sector interest as a bold diversification strategy for one of Pakistan's leading fertilizer manufacturers. If it proceeds, it would mark a rare entry of an agro-sector giant into the aviation industry, potentially setting a precedent for other corporates to explore similar opportunities. This development comes as the federal government accelerates efforts to privatize loss-making state-owned enterprises under its broader economic reform agenda. PIACL, burdened by mounting debts, operational inefficiencies, and persistent financial losses, has remained on the privatization list for several years. A previous privatization attempt in late 2024 collapsed after receiving only one bid of Rs?10 billion, far below the government's reserve price of Rs?85 billion. Investor confidence was undermined by PIACL's heavy debt burden, an 18 percent sales tax on new aircraft, and a lack of clear financial safeguards. The failed effort cost the exchequer $4.3 million in advisory fees and forced the government to reassess its strategy before re-launching the process in early 2025. As part of its renewed privatization push, the federal budget for 2025–26 introduced a major incentive, granting GST exemptions on aircraft imports and leases, effective retroactively from March 19, 2015. The waiver covers complete aircraft (purchased or leased), spare parts, maintenance kits, simulators, engines, and key Maintenance, Repair, and Overhaul (MRO) equipment. This broad tax relief aims to ease PIACL's financial burden, improve operational capacity, and enhance its appeal to private investors. Market observers believe that FFC's interest could inject much-needed momentum into the privatization drive and encourage other institutional investors. In its commentary, AKD Securities noted that this follows the government's major restructuring of the national carrier, carving out net liabilities of PKR 654 billion and non-core assets into PIA Holding Company Ltd. (Holdco) — effectively transforming PIACL into a debt-light entity. Notably, the airline was EBITDA-positive in CY24, with a reported equity value of PKR 3.6 billion as of December 2024. With PKR 147 billion in cash and short-term investments on a standalone basis as of March 2025, FFC possesses the financial strength to pursue such a transaction, analysts added. The government's decision to privatize PIACL arises from years of financial losses, mismanagement, overstaffing, an aging fleet, and persistent operational challenges. Copyright Business Recorder, 2025
Business Recorder
16-06-2025
- Business
- Business Recorder
FFC keen in acquiring stake in PIA
KARACHI: In a significant development for Pakistan's corporate and aviation sectors, Fauji Fertilizer Company Limited (FFC) has formally announced its intention to explore a potential acquisition of stakes in Pakistan International Airlines Corporation Limited (PIACL), the country's national flag carrier. In a disclosure to the Pakistan Stock Exchange (PSX), FFC revealed that its Board of Directors, during their recent meeting, approved the submission of an Expression of Interest (EOI) and prequalification documents to the Privatization Commission of Pakistan. This strategic move signals FFC's growing interest in participating in the ongoing privatization process of state-owned enterprises, particularly the financially troubled national airline. The board also sanctioned a comprehensive due diligence exercise to thoroughly assess PIACL's financial, operational, and legal standing before any final investment decision. The official disclosure was signed by Brig Khurram Shahzada (Retd), Company Secretary of FFC, and filed in accordance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the PSX Rule Book. Pakistan's Fauji Fertilizer seeks entry into aviation, eyes PIA acquisition Industry analysts view this cross-sector interest as a bold diversification strategy for one of Pakistan's leading fertilizer manufacturers. If it proceeds, it would mark a rare entry of an agro-sector giant into the aviation industry, potentially setting a precedent for other corporates to explore similar opportunities. This development comes as the federal government accelerates efforts to privatize loss-making state-owned enterprises under its broader economic reform agenda. PIACL, burdened by mounting debts, operational inefficiencies, and persistent financial losses, has remained on the privatization list for several years. A previous privatization attempt in late 2024 collapsed after receiving only one bid of Rs?10 billion, far below the government's reserve price of Rs?85 billion. Investor confidence was undermined by PIACL's heavy debt burden, an 18 percent sales tax on new aircraft, and a lack of clear financial safeguards. The failed effort cost the exchequer $4.3 million in advisory fees and forced the government to reassess its strategy before re-launching the process in early 2025. As part of its renewed privatization push, the federal budget for 2025–26 introduced a major incentive, granting GST exemptions on aircraft imports and leases, effective retroactively from March 19, 2015. The waiver covers complete aircraft (purchased or leased), spare parts, maintenance kits, simulators, engines, and key Maintenance, Repair, and Overhaul (MRO) equipment. This broad tax relief aims to ease PIACL's financial burden, improve operational capacity, and enhance its appeal to private investors. Market observers believe that FFC's interest could inject much-needed momentum into the privatization drive and encourage other institutional investors. In its commentary, AKD Securities noted that this follows the government's major restructuring of the national carrier, carving out net liabilities of PKR 654 billion and non-core assets into PIA Holding Company Ltd. (Holdco) — effectively transforming PIACL into a debt-light entity. Notably, the airline was EBITDA-positive in CY24, with a reported equity value of PKR 3.6 billion as of December 2024. With PKR 147 billion in cash and short-term investments on a standalone basis as of March 2025, FFC possesses the financial strength to pursue such a transaction, analysts added. The government's decision to privatize PIACL arises from years of financial losses, mismanagement, overstaffing, an aging fleet, and persistent operational challenges. Copyright Business Recorder, 2025
