Metro Rail in the pipeline

By SNV Sudhir

Visakhapatnam, May 29, 2013: The Vizag civic body staff are awaiting a nod from the state government to prepare a detailed project report (DPR) for introduction of metro rail in the city. Following the announcement of Metro Rail policy in the beginning of the year by the Union government, the GVMC staff here prepared a report having details about the cost to be incurred to prepare a DPR for a 20-km stretch, the present and projected population besides vehicular movement.

The GVMC estimated that it would cost at least Rs 8 lakh per kilometer to prepare a DPR. For the initial 20-km stretch, it costs Rs 1.6 crore, just to prepare a DPR. Both the state and union governments would equally share the total cost to prepare the DPR. It is estimated that there are around 6 lakh two-wheelers and four-wheelers plying on the city roads, having two million population. It is projected that the population would touch around 1 crore by 2045. 

Union Minister for Urban Development, Kamalnath, earlier said that since the metro rail is a matter related to the Union, it has been decided that all such projects in the country, whether within one municipal area or beyond, shall be taken up under the Central Metro Acts. There are metros in Kolkata, Delhi, and Bangalore. Metro works are in progress in several cities including Chennai, Gurgaon, Hyderabad, Jaipur, Mumbai and Navi Mumbai and Kochi.

“It’s at the initial stage. We have written to the state government about the cost that would be incurred to prepare a DPR for a 20-km stretch, which is about Rs 1.6 crore. After we get a nod, we will start preparing a DPR which may take roughly 6-8 months and then there will be a feasibility test,” GVMC additional commissioner (projects), B. Nagendra Kumar said.

Scrap tops Vizag imports list

By SNV Sudhir

Visakhapatnam, May 29, 2013: It is not hybrid flowers or furniture from China, but iron ferrous scrap that is much sought after imported material by locals after chemicals and refractories. It is one among the three top imports at the Visakhapatnam container terminal.

The scrap is said to be being imported from African and West Asian countries where it is available in plenty, and also from USA by local small scale steel mills and other small scale units to recycle and use in steel manufacturing. There are around 30 steel mills in and around Vizag and they import, on an average, 1,000 containers, weighing 20 to 30 tonnes in a month. Data compiled by the Metal Recycling Association of India (MRAI) also forecasts India’s ferrous scrap import to set a record at 7.5 million tonnes in 2012-13, almost 25 per cent more over the previous year, which is also an increase by 50 per cent from 2010-11.

With the non availability of iron ore in the open market, most steel mills and sponge iron producers have started depending on imported scrap. This dependence has increased in recent times as they feel it cheaper than buying ore. But major steel producers depend on iron ore with captive material linkage.

“Though iron ore can’t be replaced totally with scrap in steel-making, some secondary steel makers use it. The infrastructure sector is incomplete without steel and iron,” said Steel Exchange India Ltd, director K V Bhaskar.

RINL under CBI scanner

By SNV Sudhir

Visakhapatnam, May 21, 2013:  Fingers are being pointed at the RINL’s unsecured credit sale to the tune of Rs 285 crs, and also has now come under CBI scanner. RINL had given stocks of its steel products on credit without security to more than 26 traders and firms which is not a regular practice in public sector steel makers like SAIL and many others.

Only Long Term Customers (LTCs) are given stocks on 45 days credit that too on bank guarantee or post dated cheques as security. This unsecured credit sales to some of those who are not on the list of LTCs have raised many eyebrows. The ACB wing of the CBI Vizag office here had received a complaint in this regard. The CBI sleuths would first verify the allegations and then proceed with the regular procedure, said a highly placed source inn the CBI office.

The stocks were sold on unsecured credit during February and March just before the end of 2012-13 financial year. Of the total amount, steel products worth Rs Rs 75.25 cr were sold in February and Rs 210.59 cr in March.

The normal practice is that stocks are given to very limited long time customers with credit facility of 45 days with a bank guarantee. “Only L & T was given stocks on credit without any security as they execute many works at Visakhapatnam Steel Plant with a guarantee that if they don’t pay the cost that can be adjusted in the bills RINL has to pay to them. We wonder why RINL executives given so many crores worth stocks on credit without any security. Who is responsible if they default on the payment. We suspect some malifide interest on the part of RINL top executives in extending such a ‘special’ facility to the traders. They were also given incentives in the form of discounts to the tune from Rs 4,000 to 7,000 on a tonne,” Steel Progressive Employees Union, which is affiliated to CITU, deputy general secretary, J Simhachalam told  this correspondent.

However RINL earlier said that in steel market, all producers have been revising their prices by giving incentives, discount, credit etc to attract customers to capture the limited demand, increase their sales and destocking inventory.  In a couple of months, since June, 2012 onwards when RINL had also no option than to go for such incentive tools to match competitive  prices to maintain the price increase.

Accordingly, Marketing Department has taken initiatives and have been able to achieve sales turnover of Rs 13,650 Crs. The credit given during 2012-13 are promptly realized within a month and in case it exceeds time limit, penal interest are charged. All the credit sanctions have been made as per extant system and after verification at regional and branch level, said RINL authorities.

“Yes, we have received a complaint on unsecured credit sales by RINL and we would first verify it,” a top official in CBI here told this correspondent. 

Smugglers turn to Vizag port

By SNV Sudhir

Visakhapatnam, May 20, 2013: After Mumbai and Tuticorin ports, Vizag port now seems to be a safe passage for smugglers to ship banned red sanders to foreign shores. In a span of just two years the sleuths of the Directorate of Revenue Intelligence (DRI) caught two huge consignments of the red sanders stuffed in the container destined for Malaysia.  While it is only a tip of the iceberg many such consignments go unnoticed.

After a fresh seizure in the end of March DRI sleuths here have just launched an investigation into the red sanders smuggling. On a tip off DRI sleuths intercepted a consignment before being loaded into a ship at Vizag Container Terminal of the Vizag Port.

While the container has the capacity of carrying 28tonness the Rourkela based shipper declared 18 tonnes of refractory mortar as cargo. But to their surprise when opened the container had 400 logs of red sanders weighing an approximate 16 tonnes which is valued at Rs 1.6 cr in the Indian market and fetches few more crores in Arab countries and China.

The container was stuffed and sealed at the premises of the shipper in Rourkela in neighbouring Odisha. Later it was sealed with the permission of central excise sleuths. The container was later brought to Vizag Container Terminal by road and the local shipping agent loaded into the ship to Malaysia.

It was at the time of loading, DRI sleuths caught the latest consignment of the red sanders. Red sandalwood is mostly stolen from forests in Chittor and Karnataka and smuggled out of the country mainly through Mumbai and Tuticorin ports. Felling of the trees in forests is illegal and export is also banned. Even trees grown in private farms require permission for felling as red sandalwood is an endangered species.   

Red sanders are smuggled to Malaysia and Dubai from there transported to China where sandalwood is widely used for making musical instruments, medicines and also furnishing homes of the rich.   

Frequent seizures due to increased vigilance at Mumbai and other ports which are traditionally used by the smugglers might have forced them to choose Vizag port these days to smuggle the most valuable and endangered red sanders.

“We heard about red sanders interception at Mumbai and other ports but it’s surprising to note such incidents are occurring here in Vizag port. We strongly believe that there are many such consignments that go out safely unnoticed,” said a Vizag port official.  

Only 2-hr darshan for VIPs

By SNV Sudhir

Visakhapatnam, May 12, 2013: After learning some hard lessons last time, the Simhachalam temple authorities seem to have now restricted special darshans to VIPs and VVIPs for only one hour, in the morning, and one more hour in the evening, giving scope for regular, general devotees during  the annual Chandanotsavam, to be held on Monday.

During the Chandanotsavam, devotees will have an opportunity to see the actual form of presiding deity, Sri Varaha Lakshmi Narasimha Swamy, which is normally covered with sandalwood paste all through the year.

The Chandanotsavam is considered an important annual ritual and lakhs of devotees, from the three districts of north Andhra, and far away districts in Odisha , throng to the temple. The last time due to poor arrangements there were stampedes and several devotees were allegedly suffocated. Most of them were waiting for over 18 hours and could not have the Nijaroopa darshan of the presiding deity.

The then executive officer, of the temple, Narasinga Rao, immediately surrendered to the revenue department and  action was taken by the state government for the lapses.
It was on Akshaya Tritiya day, in Vaisakha month, that the sandalwood paste on the presiding deity will be removed in the morning.

After conducting special rituals and performing pujas, the true form of the deity will be kept for darshan, for 12 hours. This time VIPs like MLAs, MPs and other senior officials will be allowed for darshan between 4:30 and 5:30 am and 5.00 pm to 6.00 pm. Other VIP ticket holders will be allowed from 6.00 am to 8.00 am and 12.00 noon to 2.00pm. The Rs 500 and Rs 200 ticket holders can have darshan from 4.00 am to 9.00pm. 

GVMC merger: Chiru men win round one over Congress colleagues in Vizag

By SNV Sudhir

Visakhapatnam, May 8, 2013 : If the recent developments are anything to go by on proposed merger of Bheemili and Anakapalli municipalities into GVMC, the erstwhile PRP MLAs turned Congressmen have won round one against their party colleagues in Vizag.

 The proposal to merge the two municipalities with the GVMC had turned the ruling Congress into a divided house in the district. While a few Congress elected representatives have openly announced their opposition along with opposition forces from the TD, CPI and CPM, MLAs who won their spurs on a PRP ticket in 2009, including ports and infrastructure minister Ganta Srinivasa Rao, are in support of the proposal.

Those who vehemently opposed the move included Congress MLAs representing Vizag north and west constituencies, Tainala Vijaykumar and Malla Vijayprasad, respectively along with local MP and union minister of state for commerce and industry, D Purandheswari. They also wrote to chief minister N Kiran Kumar Reddy several times seeking him to scrap the idea.

It was such to their dismay, it is learnt, that the municipal administration minister Maheedhar Reddy gave a go ahead to the proposal by signing the file pertaining  to it on Tuesday. The file is now sent to panchayat raj minister K Jana Reddy for his approval to merge 10 more panchayats into GVMC along with the municipalities.

When the merger proposal was initially mooted in 2009, it was opposed by several corporators, MLAs and MPs. However, since Feb 2012, the GVMC has come under special officer ruling, the authorities are now busy expediting the process. The state government had asked the GVMC authorities to prepare a detailed report with images and geographical conditions.

Eying metro tag and more funds from union government GVMC authorities brought the proposal to merge 140-year-old Anakapalle municipality and its surrounding villages in the extent of 73 square km having a population of more than one lakh while Bhimili, the second oldest municipality in the country and other villages in an extent of 126 square km with population of another one lakh.

While Anakapalle municipality passed a resolution earlier in favour of the merger, Bheemili municipality opposed it and sent the resolution to the government. Purandheswari felt that even though 32 village panchayats were merged with the GVMC in 2005, there was no
substantial development in these areas that includes lack of drinking water and other basic amenities. Better civic amenities could be provided even without merger if the government prepares to do so, she said in her letter to the chief minister strongly opposing the move.

But the minister Ganta Srinivas Rao observed that the ‘greater’ concept itself which was introduced by the Congress government was to develop peripheral areas, municipalities, villages, panchayats surrounding Vizag and Hyderabad. He added that around 36 municipalities were merged in Greater Hyderabad and were seeing development.

If the two municipalities are merged GVMC would get more central funds. Bheemili’s historic and heritage significance can be restored, enhanced and safeguarded in a better way with the more Centre funds. GVMC gets more funds under various Centre schemes like JNNURM, said the minister. 

Dadi entry splits YSRC in Vizag

By SNV Sudhir

Visakhapatnam, May 5, 2013: Former Opposition leader in Legislative Council, Dadi Veerabhadhra Rao’s move has come as a jolt to the Telugu Desam as well as to YSRC cadre.

While the TD in north Andhra is struggling for its existence, YSRC which until now was untouched by internal bickering is literally divided into two groups in Anakapalle. One group is loyal to Dadi Veerabhadra Rao and another belonging to Konatala Ramakrishna.

Both leaders, along with their family members, had a history of personal rivalry since three decades and never saw eye to eye.  On Sunday, as a show of strength, the former minister Ramakrishna’s elder brother, Konatala Lakshminarayana (Pedababu), held a massive public meeting with the followers, activists, and grassroot leaders of YSRC in the town.

Speaking at the well- public meeting, Pedababu gave a clear indication to YSRC top leadership that they cannot work with Dadi Veerabhadhra Rao with whom they had personal rivalry since decades.

“He (Dadi) harassed our family by fostering false police cases against us and putting us behind bars when he was a minister. How can we now work with him cordially? For posts and power he suddenly dumped Naidu with whom he was associated for more than 30 years,” he said.

Interestingly, Ramakrishna never openly showed any resistance to Rao joining YSRC. He was also missing at the public meeting held in Anakapalle, organised by his brother on Sunday.

On the other hand, though most of the TD cadre disassociated from Veerabhadra Rao after his exit and then vowed to continue with the party, there were a considerable number of Rao supporters and followers that may dent the prospects of TD.

“We are not sure which party is going to benefit with Rao’s move. But the   development has created problems in both the parties,” observed political analyst and Uttarandhra Rakshana Vedika, convenor, S.S. Sivasankar.  

Dadi leaves Konatalas red-faced

By SNV Sudhir

Visakhapatnam, May 3, 2013: Dadi Veerabhadra Rao’s decision to join YSRC has left Anakapalle party cadre rallying behind its key leader Konatala Ramakrishna red faced. Konatala Ramakrishna’s elder brother Konatala Laksminarayana held a meeting with YSRC activists on Friday morning and openly expressed his dissent over Dadi’s move. Dadi and Kontala families are from the same ‘gavara’ community, which is very strong. They  continue their decades old rivalry in Ankapalle.

While the Dadi family was associated with TD since its inception Konatalas’ were with Congress. After the inception of YSRC, Konatalas shifted loyalties and Ramakrishna was playing a crucial role at Hyderabad party office in drafting party policies and strategies.

“I don’t understand in what way Dadi Veerabhadra Rao’s entry would strengthen the party in this region. He lost deposit in 2009 elections. We don’t want him in YSRC. He is a mischievous man and tries to create problem wherever he goes. How can the party central leadership too take him into our fold a person who until yesterday criticised our leader YS Rajasekhar Reddy,” said Konatakla Lakshminarayana, who is known as Kontala Pedababu in Anakapalle.

He went a step ahead and said YSRC cadre in the town will not allow him join the party. The known follower of Kontala Ramakrishna, former Pendurthy  MLA, Gandi Babji too joined the chorus and echoed the same opinions. “He dumped the party and its leader which honoured him with many posts and dignity since 30 years for denying just a re nomination. How can we trust such leaders? I don’t know central leadership has decided to take him into the party,” said ex MLA, Gandi Babji.

Meanwhile, members of both TD rural and urban coordination committees met at the party office and condemned Dadi’s move. TD state vice president, Bandaru Satyanarayana Murthy said “Since party’s inception, Dadi Veerabhadra Rao was MLA for 20 years and also minister twice earlier. Since 6 years he has been MLC and leader of opposition party in legislative council of cabinet minister rank. Party had done a lot to him and it’s unfortunate to hear from him that party had insulted him.”

Party activists in large numbers gathered at the office and burnt Rao in effigy while raising slogans against him. 

Dadi, son quit TD, may meet Jagan

By SNV Sudhir

Visakhapatnam, May 2, 2013: As expected, estranged TD leader Dadi Veerabhadra Rao has quit the  party along with his son Dadi Ratnakar, a TD rural unit president. Dadi Veerabhadra Rao faxed his resignation letter to TD chief N.  Chandrababu Naidu on Thursday evening stating that he was unhappy to exit the party, but had to do so due to prevailing circumstances. Rao and his son are expected to hold a meeting in  their stronghold Anakapalli on Friday, and announce their future  course of action.

Meanwhile, there are speculations that he is likely to meet YSR  Congress chief Y.S. Jagan Mohan Reddy on Saturday, and formally join YSRC with his son. Rao, who was the leader of the Opposition in the  Legislative Council openly aired his dissidence on March 10 as the TD  refused to re-nominate him for the MLC post. Interestingly his MLC  term ended on Thursday and he resigned from TD.

Rao had been sulking ever since he was denied nomination and was not taking part in any party activity. He didn’t participate in Naidu’s padayatra and its grand conclusion ceremony in the city. He was never seen in the padayatra except on the birthday of Naidu on April 20, when he came to wish him along with his wife. However, his son Ratnakar actively participated in the TD chief’s walkathon.  

Interestingly, Naidu visited Rao’s home and met his family  during his padayatra in Anakapalli. Dadi Veerabhadra Rao, who was once a minister, had been loyal to TD  since its inception.  He was always in the forefront in attacking the  Opposition in the Legislative Council.

On March 10 Veerabhadra Rao openly criticised Naidu’s leadership  stating that poor BCs don’t have a place in the party. “I was waiting outside his bus like a dog. Yet, he didn’t show the courtesy to call me. I should have been informed in advance about the party’s  decision to replace me with Yanamala Ramakrishnudu,” he had said.

Veerabhadra  Rao immediately after news broke that he had been denied an MLC seat. Rao said that he was hurt not by the denial of nomination,   but due to the humiliation of not conveying it in a proper manner.  Dadiâ?Ts open criticism of the TD leadership has left cadres in disarray. Many TD activists in Anakapalli have threatened to resign  from the party.

RTA drive to check city school buses

By SNV Sudhir

Visakhapatnam, May 2, 2013: With the end of the academic year and schools closed  for the summer vacations the Road Transport Authority has shifted focus on school  buses  in the district. The Fitness Certificates (FCs) issued to these buses after thorough inspection by the RTA  sleuths  is set to expire in a few days.

It may be recalled that last year a school bus fell into a canal  in East Godavari district killing  14 school kids. It’s the responsibility of the school management to ensure that the school bus obtains FC  to ply on the roads. Of the 852 school buses in the district only 647  could be checked. Of them only 439 were issued fitness certificates and 208 were rejected for not complying with the norms. After the RTA officials sent notification for obtaining FC, only 640 school managements responded.

“Schools purchase used vehicles from other states and change them into school buses to transport children risking lives of school children. School kids are  crammed into these buses,” said Narava Prakasa Rao of Bala Vikas Foundation (BVF) that works for child rights.

RTA has decided to take up a special drive from the first week of June  to identify unfit buses and initiate necessary action. Around 12 cases were booked against school managements for using unfit buses. “We will be initiating a special drive from next month onwards. Surprise checks will be conducted. It’s mandatory to get a fitness certificate for the bus to transport school kids,” RTA senior official, Vivekananda Reddy told this correspondent.

The RTA has warned that if the same vehicle is caught twice without an FC during the surprise checks it will be seized by the RTA. Schools are set to reopen in the second week of June. 

AP ignores alternative fuel option

By SNV Sudhir

Visakhapatnam, May 1, 2013: Despite the hike in petrol and diesel prices, the government continues to ignore exploring alternative sources. All the 11 Agency mandals in the district were once enriched with plantations of Jetropha and Pongamia.

These are scientifically proved by the organisations Sutra and Astra affiliated to Indian Institute of Sciences, Banglore that these plants can provide alternative source for diesel particularly for irrigation and rural transport.

Earlier these plantations were seen in thousands of acres in Vizag Agency and the seeds were purchased by middlemen from the tribals. The private traders in turn used to sell them in neighbouring Odisha for good price where it is used to generate fuel to use in generators.

All this was before 2005. With no much encouragement from government and being exploited by private middlemen, tribals stopped jatropha and pungamia cultivation.  

The Girijan Cooperative Corporation (GCC) that procures and facilitates marketing of tribal produce earlier planned to buy the seeds from the Agency farmers. The idea was als shelved due to some unknown reasons. Private traders used to buy these seeds from local farmers at Rs 4 to 5 per kg and used to sell at very higher rates to small and medium scale industries in Odisha and other states that convert seeds into oil.

GCC experimented Jetropha few years back but the conversion cost was higher than the actual diesel cost and hence it dropped the idea of procuring fearing no market for these bio diesel seeds at that time. “But now in the present scenario of increased diesel rates, these conversion rates would be definitely negligible and we are expecting good market for this. Unfortunately there is no Jatropha cultivation at all for us to procure and do marketing,” said GCC general manager, M Manohar.

However Pongamia, which is also a substitute for the diesel, is seen little in Agency tracts. Pongamia seeds are procured by the GCC, which the corporation in turn sells to private traders. But these traders sell these seeds to the soap industries instead for bio diesel purpose.

“Government and environmentalists should encourage and create awareness among people about these alternate sources other than depending upon the international crude oil prices. There is no integrated approach by the government regarding these seeds, like research on user industry, safety profile and research in refining process by which vast tribal wealth is wasted. At the present scenario neither the tribals nor the common man is benefited. Forest wealth is desecrated,” said G Srinivas of Samata, an NGO working for tribal rights. 

RINL may lose navaratna tag

By SNV Sudhir

Visakhapatnam, April 30, 2013: The state owned steel maker, Rashtriya Ispat Nigam Ltd (RINL), which was in the news recently after the allotment of Bayyaram iron ore mines by the state government, seems to have lost hopes to go for Initial Public Offering (IPO) in the near future.

Last year, RINL which runs Visakhapatnam Steel Plant (VSP), here had missed going for IPO thrice due to June 13 mishap, strong opposition from work force and poor market conditions among other reasons.  Last time it was on October 16, 2012 that the RINL was supposed to be listed in the stock exchange, which was deferred indefinitely.

Due to which it was at the verge of losing the Navaratna status. However the status was extended for one more year by the union steel ministry, which will end in the third week of November this year and it was compulsory to go for IPO to retain the coveted tag.

The Navratna status, is given to those PSUs who score a composite score of 60 or above out of 100 based on its performance during the last three years on six identified parameters.

The Navaratna status empowers a PSU to enjoy greater financial and functional autonomy. The RINL was given Navaratna status on November 16, 2010 with the condition that it would get its shares listed on the bourses within two years.

RINL's performance on all fronts including investment of major amount in expansion and modernisation of plant and completing all necessary formalities even for IPO were considered by the government in extending the Navaratna status for another one year, said the RINL authorities in an earlier occasion.

RINL is in the advance stage of completing its expansion of its production capacity from 3.2 million tonnes to 6.3 million tonnes at a cost of Rs 12,500 crore. The RINL IPO was supposed to begin the government’s Rs 30,000-crore divestment programme for the current fiscal. By diluting its 10 percent stake in RINL, the government aimed to raise about Rs 2,500 crore.

The Cabinet Committee on Economic Affairs (CCEA) in January last year had approved disinvestment in RINL. The company has appointed four merchant bankers - UBS Securities, Deutsche Bank, Edelweiss Capital and IDBI Capital - as the book-running lead managers to manage the IPO process.

The entire workforce of VSP too observed total work shutdown on October 12 and 13, last year opposing IPO.

“I don’t think company would attempt to go for IPO in anytime near future as the market conditions are very poor. And regarding Navaratna status it is the government’s discretion whether to extend it or not. We are all hopeful that the prestigious tag will be extended further due to our overall good performance,” said an RINL official.