Essar Shipping has received approval from the Securities and Exchange Board of India (SEBI) for the listing of the company’s shares on the stock exchanges. This is pursuant to the demerger of the erstwhile Essar Shipping Ports & Logistics Ltd (ESPLL) into Essar Ports Ltd and Essar Shipping Ltd.
It is to be noted that in compliance with the Gujarat High Court approved demerger scheme, ESPLL had been renamed as Essar Ports Ltd and has been trading since 31st May 2011 on the NSE and BSE. The resultant company, Essar Shipping Limited, had been awaiting formal approval from SEBI for commencement of trading which has now been accorded. Essar Shipping Ltd. would also be listed on the NSE and BSE.
As per the scheme of arrangement approved by the Gujarat High Court, the shareholding of ESPLL had been split in the ration 2:1. For every three shares of ESPLL held, shareholders received two shares of Essar Ports, and one share of Essar Shipping.
Essar Shipping Limited has a diversified fleet of 26 vessels, including VLCCs, Capesizes, Supramaxes, mini bulk carriers and tugs. The company has placed orders for 12 new ships, which are expected to join the fleet over the next 24 months. A sizeable part of the capacity is deployed on long-term contracts and COAs, insulating the company from the volatility of spot markets.
The Oilfields Services business provides contract drilling services to oil & gas companies across the globe. This business owns one semi-submersible rig and 12 land rigs.
The company has ordered two new jack-up rigs, which will be joining the fleet over the next 18 months.The Logistics business provides end-to-end logistics services – from ships to ports, lighterage services to plants, intra-plant logistics and dispatching finished products to the final customer. This business owns transshipment assets to provide lighterage support services, and onshore & offshore logistics services. It manages a fleet of over 5,000 trucks for inland transportation of steel and petroleum products.
Power agreement signed
Essar Energy has signed a long-term power purchase agreement (PPA) for output from its Tori power plant. Essar signed the PPA with the Bihar State Electricity Board (BSEB) for 300 megawatts of contracted capacity from its 1,200MW coal-fired Tori I power station which is under construction in Jharkhand state, India.
The binding PPA has been signed by BSEB with Essar Energy's subsidiary Essar Power Jharkhand Limited (EPJL) and has a 25 year duration. This follows the issue of a Letter of Intent to EPJL, as detailed by Essar Energy in an announcement on August 18.
The PPA was secured following a competitive bidding process, with supply of power under the terms of the PPA being due to commence from May 2015.
Under the terms of the PPA, the 300MW PPA will involve EPJL supplying power at a levelised tariff of `3.28 per kWh (approximately 6.7 US cents per kWh) net of transmission costs.
This PPA is the second 25 year PPA to be agreed with the Bihar State Electricity Board for the Tori I project, following an agreement signed in July 2010 for 450MW of capacity at a levelised tariff of Rs. 2.64 per kWh (approximately US cents 5.4 per kWh).
Naresh Nayyar, chief executive officer of Essar Energy, said: “We are pleased to have concluded this PPA with Bihar. This contract is at a significantly higher tariff than the previous PPA with Bihar and shows we are continuing to make progress in securing revenues from our investments in power generation in India.”
Essar Energy currently has 1,600 MW of generation capacity operational, with a further three power projects totalling 2,910 MW due to be fully commissioned by March 2012, taking the total to 4,510 MW. Beyond this a further seven power projects are under construction, which will take Essar Energy’s total to 9,670 MW by March 2014.
Corex module commissioned
Essar Steel has successfully commissioned a Corex module, with a capacity of 0.87 MTPA, as part of its expansion programme for increasing steel production capacity from 4.6 MTPA to 10 MTPA at its Hazira complex in Surat district of Gujarat.
The overall expansion, including downstream facilities, at Hazira is being done at a cost of `17,000 crore, a company official said. It had earlier commissioned a blast furnace and a DRI module. With this, the iron making capacity has reached over 9.5 MTPA. A second Corex module of 0.87 MTPA is expected to be commissioned shortly.
With the Corex facility, the company has ensured significant lower investment costs and operating costs vis-à-vis blast furnace, better environmental compatibility, improved operational flexibility, i.e., production output and diversifying energy needs, as well as use of Corex export gas for many applications within the plant, according to a release.
Largest facility
Essar Steel’s Hazira complex would be India's largest flat steel facility at any single location and amongst the ten largest facilities in the world. It is fully integrated and capable of producing the entire range of flat products. The total investment in Essar’s Hazira steel complex has so far been `30,000 crore.
Major facilities are expected to be commissioned by March 2012.
Essar Steel’s total production capacity is 14 MTPA. It is a fully integrated flat carbon steel manufacturer with a presence in North America, Europe, Middle East and South East Asia, UK, UAE and Indonesia. It operates eight steel processing and distribution centres globally with a capacity of over 4.5 million tonnes a year. Essar has the largest retail channel through over 600 Essar Hypermarts.
It is to be noted that in compliance with the Gujarat High Court approved demerger scheme, ESPLL had been renamed as Essar Ports Ltd and has been trading since 31st May 2011 on the NSE and BSE. The resultant company, Essar Shipping Limited, had been awaiting formal approval from SEBI for commencement of trading which has now been accorded. Essar Shipping Ltd. would also be listed on the NSE and BSE.
As per the scheme of arrangement approved by the Gujarat High Court, the shareholding of ESPLL had been split in the ration 2:1. For every three shares of ESPLL held, shareholders received two shares of Essar Ports, and one share of Essar Shipping.
Essar Shipping Limited has a diversified fleet of 26 vessels, including VLCCs, Capesizes, Supramaxes, mini bulk carriers and tugs. The company has placed orders for 12 new ships, which are expected to join the fleet over the next 24 months. A sizeable part of the capacity is deployed on long-term contracts and COAs, insulating the company from the volatility of spot markets.
The Oilfields Services business provides contract drilling services to oil & gas companies across the globe. This business owns one semi-submersible rig and 12 land rigs.
The company has ordered two new jack-up rigs, which will be joining the fleet over the next 18 months.The Logistics business provides end-to-end logistics services – from ships to ports, lighterage services to plants, intra-plant logistics and dispatching finished products to the final customer. This business owns transshipment assets to provide lighterage support services, and onshore & offshore logistics services. It manages a fleet of over 5,000 trucks for inland transportation of steel and petroleum products.
Power agreement signed
Essar Energy has signed a long-term power purchase agreement (PPA) for output from its Tori power plant. Essar signed the PPA with the Bihar State Electricity Board (BSEB) for 300 megawatts of contracted capacity from its 1,200MW coal-fired Tori I power station which is under construction in Jharkhand state, India.
The binding PPA has been signed by BSEB with Essar Energy's subsidiary Essar Power Jharkhand Limited (EPJL) and has a 25 year duration. This follows the issue of a Letter of Intent to EPJL, as detailed by Essar Energy in an announcement on August 18.
The PPA was secured following a competitive bidding process, with supply of power under the terms of the PPA being due to commence from May 2015.
Under the terms of the PPA, the 300MW PPA will involve EPJL supplying power at a levelised tariff of `3.28 per kWh (approximately 6.7 US cents per kWh) net of transmission costs.
This PPA is the second 25 year PPA to be agreed with the Bihar State Electricity Board for the Tori I project, following an agreement signed in July 2010 for 450MW of capacity at a levelised tariff of Rs. 2.64 per kWh (approximately US cents 5.4 per kWh).
Naresh Nayyar, chief executive officer of Essar Energy, said: “We are pleased to have concluded this PPA with Bihar. This contract is at a significantly higher tariff than the previous PPA with Bihar and shows we are continuing to make progress in securing revenues from our investments in power generation in India.”
Essar Energy currently has 1,600 MW of generation capacity operational, with a further three power projects totalling 2,910 MW due to be fully commissioned by March 2012, taking the total to 4,510 MW. Beyond this a further seven power projects are under construction, which will take Essar Energy’s total to 9,670 MW by March 2014.
Corex module commissioned
Essar Steel has successfully commissioned a Corex module, with a capacity of 0.87 MTPA, as part of its expansion programme for increasing steel production capacity from 4.6 MTPA to 10 MTPA at its Hazira complex in Surat district of Gujarat.
The overall expansion, including downstream facilities, at Hazira is being done at a cost of `17,000 crore, a company official said. It had earlier commissioned a blast furnace and a DRI module. With this, the iron making capacity has reached over 9.5 MTPA. A second Corex module of 0.87 MTPA is expected to be commissioned shortly.
With the Corex facility, the company has ensured significant lower investment costs and operating costs vis-à-vis blast furnace, better environmental compatibility, improved operational flexibility, i.e., production output and diversifying energy needs, as well as use of Corex export gas for many applications within the plant, according to a release.
Largest facility
Essar Steel’s Hazira complex would be India's largest flat steel facility at any single location and amongst the ten largest facilities in the world. It is fully integrated and capable of producing the entire range of flat products. The total investment in Essar’s Hazira steel complex has so far been `30,000 crore.
Major facilities are expected to be commissioned by March 2012.
Essar Steel’s total production capacity is 14 MTPA. It is a fully integrated flat carbon steel manufacturer with a presence in North America, Europe, Middle East and South East Asia, UK, UAE and Indonesia. It operates eight steel processing and distribution centres globally with a capacity of over 4.5 million tonnes a year. Essar has the largest retail channel through over 600 Essar Hypermarts.
Bird's eye view of GTG 1 & 2 Area, Vadinar Expansion
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