Yamuna Expressway is ready, says Jaypee Infra

The 165-km Yamuna Expressway is ready for commercial operation, the company that built the road, Jaypee Infratech, has said.

The road, built at a cost of Rs 12,839 crore, runs along the Yamuna river, connecting the industrial town of Noida and Agra. The tolled road is expected to reduce traffic congestion on the National Highway 2.

According to the terms of the concession agreement, Jaypee Infratech is entitled to collect tolls at rates fixed by the Uttar Pradesh Government for 36 years. In addition, the company will receive 6,175 acres of land across five different sites at the Government’s cost of acquisition, paying only an annual lease rent of Rs 41 per acre.

A research report of Angel Research, issued today, has said it has assumed a toll of Rs 1.5 per km. The report has noted that the commencement of the Yamuna Expressway (YE) is a trigger for the stock.

However, the report observes that the Yamuna Expressway faces competition from the existing highway NH-2, which is currently toll-free. While plans are afoot to make it a six-lane road, after which it will be tolled, the reluctance of commuters to use the Yamuna Expressway could impair its profitability.

Currently JPinfratech is trading at Rs.56..I advice my clients to go long on stock with a 2 year perspective for a target of 160-180

Wonderla looks at PE route for expansion

Wonderla Holidays, an amusement park, plans to raise up to Rs 200 crore either through private equity or through an initial public offering.

Arun K. Chittilappilly, managing director of Wonderla, said the funds will be used to set up new amusement parks in Hyderabad and Chennai. Wonderla is part of the listed Rs 1,000-crore V-Guard company.

The Hyderabad project is expected to begin first and the Chennai project will start shortly thereafter once some land issues are resolved, said Chittilappilly. The company already operates amusement parks in Kochi and Bangalore.

He said that Wonderla is almost debt-free, so there should not be a problem attracting investors.

“In 2003, we had a debt of Rs 50 crore, but now, apart from a debt of Rs 15 crore on the resort, we don’t have any debts,” he said.

Regarding the possibility of an IPO, Chittilappilly said it was also one of the options before the company.

The company is not looking to expand beyond South India in the immediate future, he said. “First we want to expand in the South. We will look at North India later on, but not for the next five years.”

SO BUY VGUARD INDUSTRIES AT 380 LEVEL FOR LONG TERM PRESPECTIVE FOR A TGT OF 480-500 RANGE

SOME ACTIONS MAY SEE IN RETAIL STOCKS

Some buying interest may seen in Pantaloon,Shoppersstop,Trent and Provogue as prez polls have been over and govt may start negotiation on fdi in multi brand retail...Traders can buy these stocks

StanChart PE shells out Rs 130 cr for stake in Karaikal Port

Standard Chartered Private Equity (Mauritius) II Ltd has invested Rs 130 crore for a minority stake in Karaikal Port Private Ltd.

The funds will be used in development work to enhance the port’s capacity to 28 million tonnes per annum from 21 MMTPA.

Motilal Oswal Investment Advisors acted as the transaction advisor for MARG group.

Karaikal port had already attracted private equity investments from India Infrastructure Fund, Ascent Capital Advisors and NYLIM Jacob Ballas India Fund III LLC. Standard Chartered is the fourth investor.

With a healthy business and political environment, location advantage and better infrastructure, Karaikal is poised to be the ‘most strategic and efficient’ port on the South East coast of India, said Mr G.R.K. Reddy, Chairman and Managing Director, MARG Ltd, in a press release.

Mr Rahul Raisurana, Managing Director, Standard Chartered Private Equity, will join the port’s board. There is strong demand for high quality port infrastructure to service expanding external trade and increasing needs for multiple commodities for growing economy, he said.

The port, located between Chennai and Tuticorin ports, is a deepwater, all-weather port on the South-East coast of India. Awarded on a build, operate and transfer basis by the Government of Puducherry in 2006, the port when fully developed is envisaged to have a total of nine berths capable of handling up to 45 MMTPA.

The port is to be developed over three phases with the final phase getting operational by 2017.

BASED ON THE NEW DEVELOPMENTS IN KARAIKAL PORT I LIKE TO BUY SOME  MORE SHARES OF MARG LTD AT 80 RANGE

Trafigura's 1st Asia refinery investment in India; BP out

Oil trader Trafigura has made its first move into refining in Asia, investing up to $130 million for a 24 percent stake in Nagarjuna Oil Corp Ltd's (NOCL) planned refinery in Tamil Nadu and replacing BP as NOCL's crude supplier. India and other emerging markets are boosting refining capacity to feed rising regional demand, while their counterparts in the United States and Europe restructure or shut

BUY NAGARJUNA OIL AT Rs.7 FOR LONG TERM

Nagarjuna Oil Corporation Limited (NOCL) is setting up a petroleum refinery at Cuddalore, Tamil Nadu, 180 km south of Chennai on the Bay of Bengal. This state-of-the-art project will refine 6 million metric tonnes of crude petroleum per year (MMTPA) in Phase-I, which is around 1,25,000 BPSD, and will primarily meet the growing energy needs of southern India. The project site is spread over an area of 2100 acres, including 300 acres of greenbelt. 

It is the single largest private sector investment in Tamil Nadu and declared as anchor unit for the proposed Petroleum Chemical & Petrochemical Investment

The Cabinet, on Wednesday, approved the proposal of the Tamil Nadu Government to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in Cuddalore and Nagapattinam districts.

PCPIRs have already been approved in Andhra Pradesh, Gujarat, West Bengal and Orissa.

According to an official statement , the Cabinet Committee on Economic Affairs (CCEA) approved the proposal at its meeting headed by Prime Minister Manmohan Singh.

A total investment of about Rs.92,160 crore is expected in the Tamil Nadu PCPIR, which includes committed investment of Rs.22,160 crore. It envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power, desalination plant and CETP (common effluent treatment plant) at a total cost of Rs.13,354 crore.

The PCPIR policy prescribes that infrastructure will be created/upgraded through public-private partnership (PPP) to the extent possible, and Central Government will provide the necessary viability gap funding (VGF). The Tamil Nadu Government has sought central support to the tune of Rs.1,143 crore on account of VGF funding for two road-related projects, CETP and desalination plants and Rs.1,500 crore of direct budgetary support for a rail project.

The project will be in Cuddalore and Nagapattinam districts in the coastal belt of Cuddalore, Chidambaram, Shirali and Tarangambadi Talukas. It will cover an area of 256.83 sq. km. with a processing area of 104 sq. km. and the balance for non-processing activities.

Nagarjuna Oil Corporation Ltd. (NOCL), a joint venture of Tamil Nadu Industrial Development Corporation Ltd. (TIDCO) and Nagarjuna Fertilisers and Chemicals Ltd. (NFCL), the flagship company of the Nagarjuna Group, has been identified as one of the anchor tenants for the PCPIR.

NOCL is setting up a 6-million metric tonnes per annum (mmtpa) refinery project at Cuddalore at a total cost of Rs.9,660 crore. The project activities have commenced, and are likely to be completed by September 2013. NOCL has also finalised in-house configuration mapping for expansion of the refinery by 9 million tonnes , and bringing the total crude processing capacity to 15 million tonnes per annum by 2015-16.

Apart from regular petroleum fuels that are expected from this expansion, NOCL plans to set up a xylene production facility, purified terephthalic acid (PTA) plant and a propylene recovery unit. The second anchor tenant is Chennai Petroleum Corporation Ltd. (CPCL), which is planning to establish an integrated 15-million tonnes per year capacity refinery-cum-petrochemical complex. It will have a grassroot refinery along with ethylene cracker, downstream derivative units as well as aromatic complex, paraxylene. The project is designed for production of 1.2 mmtpa of ethylene. It envisages an investment of Rs.40,000 crore beyond 2015.