Electronic manufacturing cluster soon in Vizag

By SNV Sudhir

Visakhapatnam, June 2, 2013: An Electronic Manufacturing Cluster (EMC) would come up in the Visakhapatnam district, at a cost of Rs 200 cr, which can boost the local economy and generate employment for people in and around the city.

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) had already sent a Detailed Project Report (DPR) to the concerned authorities for their approval for setting up the EMC. In all probability the DPR will be finalized by the union telecom and IT ministry in a couple of months.

APIIC which is the nodal agency to develop EMCs in the state had identified around 100 acres near Jaganandhapuram in Parawada in the district. Of the Rs 200 cr needed to develop the cluster union government would extend the financial assistance of about Rs 50 cr.  And the remaining would be borne by the state agencies. It needs around Rs 114 cr only to create infrastructure for the EMC.

As part of under National Telecom Policy 2012, Vizag, Srikakulam and Ranga Reddy districts were identified in the state to get four EMCs. Ranga Reddy district would get two such clusters.

Taking a cue from China and Taiwan, where  government provide support for electronic manufacturing companies, union government had decided to set up these clusters in the backdrop of software exports coming under increasing pressure due to slowdown in the largest economies.

Under the EMC scheme the government will provide aid to special purpose vehicles to set up such clusters. At present, the size of the electronics industry in the country is estimated at $45 billion and according to the union government it is expected to go up to $400 billion by 2020, almost 10 times more.

“We have already earmarked 100 acres in Parawada which can accommodate around 20 to 25 electronics manufacturing companies. Plots are divided into sizes of one acre to 5 acres. Since the land is already in the possession of the APIIC we can issue a notification calling for interested parties as soon as we get approval from the union government for the DPR we have submitted recently. Two clusters in Ranga Reddy district are at the advanced stage of completion. After Vizag we will begin work at Srikakulam,” APIIC zonal manager, Yethiraj told this correspondent.

Pharma unit lacks fire safety tools

By SNV Sudhir

Visakhapatnam, May 31, 2013 : It took more than 12 hours for the fire fighters to bring the high rising flames to control at the factory of Glochem Industries Ltd, in the Jawaharlal Nehru Pharma City (JNPC). The pharma firm is said to be running its unit violating norms, especially comprising safety standards.

Fire broke out on Friday evening and it was brought under control only in the early hours of Friday. Around 8 fire tenders including two foam tenders were pressed in to bring down the flames.

Experts pointed that the first explosion took place in the block B of the five blocks due to the exothermic reaction while manufacturing an Active Pharmaceutical Ingredient (API) having sodium hydrate in one of the reactors. While the manufacturing material came out of the vent of the emergency release system, it touched the wet floor. The material having the nature of being ignited if touched by water, explosion took place and the flames followed. The flames later spread to the nearby warehouse where drums of solvents were stored.

The entire warehouse was gutted and there was a major damage to the block B. Rest of the blocks suffered external damages. The estimated loss was put up at Rs 60 cr. The 5 acre factory in the plot no 77 of JNPC had 80 reactors in total.

The pharma unit was being prosecuted by the chief inspector of factories for lacking adequate fire fighting equipment and the district fire office earlier in two occasions cautioned and served notices to Glochem Industries to install necessary fire safety measures and obtain an NOC from them. “We have insisted and cautioned them to obtain the mandatory NOC from us. They didn’t even apply for it. The unit doesn’t have a fire hydrant system at all. We warned then twice in earlier two occasions,” said district fire officer Gnana Sundara Rao.

The joint chief inspector of factories, Chandrasekar Varma told this correspondent that they have prosecuted the firm in three cases, which includes running the unit without proper fire fighting equipment and commencement of operations without duly informing the authorities.

“Fortunately there were no casualties in this case as the vigilant workers after hearing the emergency alarm rushed out. We have now freshly served notices asking them not to commence operations until the unit is assessed and checked by us as part of routine,” said Varma.

Meanwhile, ports and infrastructure minister, Ganta Srinivasa Rao visited the mishap site and ordered an inquiry into the incident by the district collector. He also called for a high level meeting with all the senior district officials, various stakeholders on Saturday to discuss methods to improve safety standards at the industries due to the increased fire mishaps in pharma city and other industrial hubs in the district.   

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.