Tata to ask customers to bring Nano back to add safety device
10 Nov 2010;timesofindia.indiatimes.com:NEW DELHI: Tata Motors on Wednesday said it would ask Nano customers to bring back their cars to add safety devices free of cost to prevent the vehicles from catching fire, but insisted it was not a "recall." The company, however, said that the addition of safety devices, a lesson learnt from some of its brand new Nanos catching fire, was optional. After these incidents, Tatas had engaged experts to get into the details for the cause of the mishaps, and its internal report had said that there was no manufacturing defect. "We would be informing the customers that these are the additional protection we are willing to provide. "We are quite convinced that Nano is safe, based on our investigations. However, we feel that probably there may be some extraneous circumstances where people may want additional protection," Tata Motors Managing Director ( India Operations) P M Telang said. The safety move, incidentally, made public within days of the world's cheapest car, priced at $2,500, was showcased to the US President Barack Obama and the First Lady Michelle Obama. Asked if the cars were being recalled because of the concern about the safety of vehicles, he said: "Just to clarify that this is not a recall...It is just to make the Nano more robust." As part of the safety mechanism, the company would offer a tool to cover the catalytic converter to prevent the car from catching fire. It will also install fuse in electrical components to avoid short circuits. "We are willing to move forward to addition of safety tools like putting those converters or catalytic converters and so on. For this, we will be informing the customers and if they want, this will be done." He said in another three to four weeks time the company would be informing all the Nano customers. As of now, around 70,000 Nanos are on the roads. On Tuesday, Tata Motors Group CEO and Managing Director Carl-Peter Forster had said that the auto maker planned to introduce additional safety features in the small car in the wake of reports of the car catching fire. "The company has taken up several corrective measures and will now offer cover tool on catalytic converter to prevent the car from catching fire. It will also install fuse in electrical components to avoid short circuits," he had said. In August, a sixth incident of a Nano catching fire since the car was commercially launched in March 2009, was reported from the National Capital, three months after a company probe declared the car was "absolutely safe". The five previous incidents were reported from across the country, including Mumbai, Lucknow, Delhi and near Vadodara in Gujarat.
Tata Motors hits life-time high on smart Q2 numbers
10 Nov 2010;economictimes.indiatimes.com:MUMBAI: Tata Motors today soared over six per cent to hit a life-time high in the early trade on BSE, after the auto-giant yesterday reported a massive 102-fold jump in its consolidated net profit for the quarter ended September 30. Boosted by the robust second quarter numbers, shares of Tata Motors surged by 6.25 per cent to an all-time peak of Rs 1,350 in the start of the trade on the Bombay Stock Exchange , becoming the biggest gainer on the benchmark Sensex. Yesterday, the company had posted a whopping 102-fold jump in its consolidated net profit at Rs 2,222.99 crore for the quarter ended September 30, against Rs 21.78 crore in the same quarter last year, on account of robust demand across categories. The consolidated profit stood at Rs 22 crore in the corresponding quarter last year. Witnessing a similar jump on the National Stock Exchange , shares of Tata Motors gained by 6.19 per cent at Rs 1,348 in the morning trade. “The turnaround in the company's consolidated net profit is mainly due to the domestic business which registered a much better performance and strong profitability with healthy volumes in Jaguar Land Rover,” Tata Motors chief financial officer C Ramakrishnan told reporters here. “Both wholesale and retail volumes, improved favorably as compared to the corresponding quarter in the prior year, on the back of improved market conditions and continued overwhelming response,” a company statement said. The home-grown auto giant has witnessed a 36% growth in commercial vehicles in Q2 FY 11 and a significant volume growth in its Nano model , Tata Motors managing director, India operations P M Telang said. “The consolidated revenues (net of excise) in Q2 FY 11 increased to . 28,782 crore, a growth of 36.5% over . 21,088-crore posted in the corresponding quarter of the previous year, with a strong volume growth globally in all major markets, ” Mr Ramakrishnan said. Favourable macroeconomic conditions, good monsoons and good finance availability led to robust domestic demand during the quarter, resulting in volume growth across all segments, Tata Motors said. Meanwhile, the 30-share benchmark Sensex was trading weak at 20,894.90, down by 37.58 points from previous close.
ONGC outraged at Cairn Energy Plc's refusal to recognise its pre-emptive rights
10 Nov 2010;dailypioneer.com:New Delhi: Outraged at Cairn Energy Plc's refusal to recognise its pre-emptive rights, Oil and Natural Gas Corp (ONGC) is upping its ante against Vedanta Resources by buying stake in UK-based firm's Indian unit. The state-owned firm feels Cairn Energy is skirting real issues like Vedanta's lack of experience in oil and gas sector in its haste to collect up to $ 8.48 billion from its stake sale in Cairn India, an official in know of details said. It now wants to test Vedanta's technical expertise.ONGC by virtue of its stake in several of Cairn India's 10 properties, including the giant Rajasthan oilfields had asserted its preemptive or right of first refusal and as per legal requirement sought to know Vedanta's technical expertise and experience in exploration and production of oil/gas. Cairn Energy in its October 29 letter said nothing on ONGC's request for information on new buyer, he said. "All that they say is that operating expertise of Cairn Group resides within Cairn India. But does that mean expertise of people like Mike Watts (Cairn Energy's exploration director who sniffed oil below Thar desserts in Rajasthan) will continue to be available to Cairn India. The answer is no," the official said. "What if Cairn India's CEO Rahul Dhir who is face of the company and runs operations now, quits and goes back to being a banker?" the official asked. Dhir's contract as CEO of Cairn India is expiring next year and Cairn Energy has so far not initiated its renewal. "What will be the fate of Cairn India then (when Dhir exits)? It will definitely be run by someone from Vedanta and so logically ONGC wants to know the expertise of Vedanta before allowing it to take over the operations." ONGC has legal opinion from the Solicitor General of India, the nation's second-highest legal officer, to back its claims. SGI in its opinion has stated that sale of 40 to 51 per cent stake in Cairn India is effective transfer of operating control of a field like Rajasthan, the mainstay property of Cairn India, and so requires Government nod and partner ONGC's approval. Cairn India's main asset is the Rajasthan block that currently produces 1,25,000 barrels per day (bpd). At peak output of 2,40,000 bpd, it will account for one-fifth of the nation's domestic oil production. "We are not inclined to agree with your position that our consent and pre-emptive rights are not required/triggered in relation to the sale of up to 51 per cent of the equity shares of Cairn India by Cairn Energy Plc and Cairn UK Holding Ltd (collectively, Cairn Energy) to Vedanta Resources," ONGC had written to Cairn on October 21. ONGC said it being the licensee of Rajasthan and Cambaybasin CB-OS/2 blocks has "additional roles and responsibilities to ensure satisfactory performance of the ongoing operations." "We take this opportunity to remind you that the Government of India approved the award/transfer of the participating interest to affiliates/subsidiaries of Cairn Energy, on the basis that Cairn Energy shall stand guarantor to the government of India and ONGC, based on its financial strength, technical expertise, worldwide experience in exploration and production of oil/gas, including operatorship experience," it said.
09 Nov 2010;hindustantimes.com:London: Oil resumed gains to hit a fresh two year high above $87 on Tuesday, erasing earlier losses, as commodities rallied across the board. US crude oil futures hit $87.67 a barrel, the highest since October 2008. ICE Brent was trading 30 cents higher at $88.76. Oil reversed course following the release of the IEA's long-term energy outlook, in which the Paris-based agency said oil prices might exceed $100 a barrel in 2015 and $200 in 2035. Analysts said the $100 mark provided a clear price target for investors, but return on investments might not be dramatic. "That $100 per barrel is four-five years away. It is not much support to oil prices," Olivier Jakob with Petromatrix said. Analysts said gains might be limited by a stronger dollar against the euro due to renewed concern about debt in Europe and an expected rise in US oil inventories. "The top end of prices will be weighed by renewed concerns over sovereign debts in Europe, while crude prices would move with a solid floor due to money inflows into risky assets following the further easing (in the United States)," analysts with Mizuho Corporate Bank in Tokyo said in a research note. "Ahead of the (US government) oil inventory data tomorrow narrow range price movements are likely today." Wider commodities markets rallied due to risk appetite on the back of the US Federal Reserve's decision last week to inject $600 billion to spur a flagging recovery, referred as the QE2. Gold added to a record breaking run, hitting a new high above $1,400 an ounce as investors sought safe havens in the face of uncertainties including euro zone debt worries and this week's G20 leadership summit in Seoul. INVENTORIES US crude inventories probably increased by 1.4 million barrels in the week to Nov. 5 as imports rebounded, a Reuters poll of analysts showed on Monday. The American Petroleum Institute will issue its oil stocks report on Tuesday at 2130 GMT, followed by the US Energy Information Administration's (EIA) government data on Wednesday. The analysts in the poll forecast a drawdown of 1.8 million barrels for middle distillate inventories, which includes heating oil and diesel, down for the seventh consecutive week, while gasoline stocks fell 1 million barrels. The US EIA will release its outlook for 2011 oil consumption in the United States and the world later on Tuesday. Analysts expected the EIA to increase its forecast for next year.
09 Nov 2010;business-standard.com:New Delhi: India and the US have signed an agreement for cooperation in the field of shale gas. The memorandum (MoU), signed in Mumbai on Saturday, will enable India to commence exploration for this and reduce its heavy dependence on imported energy sources. “The MoU is on technical cooperation. It will help in mapping the area and interpretation of the data,” said Sudhir Bhargava, additional secretary in the petroleum ministry. US will train Indian personnel in the subject. The MoU was signed by Bhargava on the Indian side and David Goldwyn, coordinator (international energy affairs) in the US Department of State, part of the delegation accompanying US President Barack Obama. The US Geological Survey will carry out studies on shale gas resources and will provide its report to India. Shale gas refers to underground rock formations that hold reserves of oil and natural gas. It accounts for a fifth of US gas production. In the private sector, Reliance Industries (RIL) has, over the past five months, made three shale gas acreage acquisitions in the US. In April, RIL bought a 40 per cent stake in Atlas Energy Inc’s Marcellus Shale acreage for $1.7 billion. In June, it agreed to buy a 45 per cent stake in Pioneer Natural Resources’ Eagle Ford shale natural gas asset in Texas for about $1.36 bn. This month, it acquired a 60 per cent stake in the Marcellus shale-gas acreages of Carrizo Oil and Gas Inc in the US for $392 million. In August, Bharat PetroResources Ltd, the overseas upstream arm of state-run Bharat Petroleum Corporation Ltd, bought two exploration acreages of shale gas operated by Norwest Energy at Perth, Australia. Within the country, the government is looking to launch the first-ever auction of shale gas areas in August 2011. This will be the second unconventional natural gas source in India after coal bed methane.
08 Nov 2010;deccanherald.com:Mumbai: After the successful launch of Micra in July this year and having sold 4500 of them till date, Nissan Motor, on Monday, said that it has planned to launch the diesel variant expected to go on sale before Christmas this year. The company has started taking orders for the diesel variant of Micra in a phased manner starting this day through its 20 dealerships across the country, said an official release here. A comprehensive multimedia ad campaign has also been launched to support this activity, it added. Petrol variant success “The success of petrol variant of Micra in the domestic market has given us huge confidence to introduce the diesel variant within six-months from the launch of petrol version. We are confident that the diesel-powered Micra would fulfil the discerning needs of Indian customers,” Nissan Motor India Managing Director & CEO Kiminobu Tokuyama said. The company launched the petrol variant of its first made-in-India global compact car Micra (global compact hatchback) in July this year at its factory in Oragadam, Chennai.
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