The Mint report for 7 Oct 2009

The Mint report for 7 Oct 2009

Coal India is going to select partners for joint ventures that will help it revive 18 abandoned mines. It’s going to float a unique tender within a month under which bidders will get ranks depending on their assessment of the revenue potential and production costs from the mines. The new tender is also unique because it’ll be the first time the government will allow foreign companies to start mining coal in India. The 18 abandoned mines have coal reserves of 1.6 billion tonnes.

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Flying may be the fastest way to travel, but India’s aviation regulator is getting concerned about safety. The DGCA has demanded three airlines come up with explanations for what it says are inadequate safety procedures and infrastructure.

JetLite, Paramount Airways and MDLR have been issued show-cause notices. According to the DGCA, JetLite lacked the necessary air safety infrastructure, while Paramount Airways has fallen behind in 69 areas of aircraft maintenance and also doesn’t have a proper investigation board. The DGCCA also says MDLR lacks emergency procedures, response plans, and safety manuals, and adds that its staff is inadequately trained.

While the show cause notices do not necessarily mean the airlines are unsafe, they indicate some safety procedures are not being followed.

After an advertising blitz by RNRL in August that accused the oil ministry of helping RIL earn super-normal profits, the Directorate General of Hydrocarbons has launched an ad campaign of its own. It states that RIL would earn $9.5 billion in sales from the KG D6 field, while the government would get $16.57 billion in revenues.

Months after the Supreme Court criticized the government for failing to solve the country’s many water problems, the science ministry is finalizing a blueprint that will list technological solutions for several water-related issues. A committee in the ministry is currently identifying 25 regions that represent all of India’s water problems after which government and industry will start pilot projects to tackle the issues in each region. The research will focus on areas like treating contaminated water, desalination, and making rainwater harvesting more efficient.

Tata Steel India says it sales of steel went up 19% to 1.46 million tonnes in the second quarter compared to a year earlier. India operations for the company are only about a quarter of the group’s total annual capacity of 30 million tonnes.

Markets lost ground on Wednesday. The Sensex fell 152 points to close at 16,807 and the Nifty went down 42 points to end trade at 4,986.