Reliance Industries, Toshiba - JSW Deals

RIL still can't sign third-party gas deals

Reliance Industries Ltd. (RIL), which is all set to start gas production from the Krishna Godavari basin, will have to wait till July-end for signing sale agreements with potential customers. This is because the Bombay High Court deferred hearing in the long-standing legal dispute between RIL and RNRL till July 22. At yesterday's hearing, RIL counsel Harish Salve argued that the earlier interim order, restraining RIL from selling gas to third party, had lapsed. He said that RIL would start gas production from KG-D6 by the end of July and requested that it be allowed to enter into supply contracts with third parties. RNRL lawyer Ram Jethmalani said there was a strong possibility of appeals never getting disposed of if RIL was permitted to sign contracts. He also argued that if RIL is allowed to get into third-party agreements and the final verdict is in RNRL's favour, then the third parties will again move the court. Meanwhile, the court will soon take a call on the Government's application to become a party to the proceedings. RNRL has opposed the Government's plea to vacate the stay on RIL for creating third-party rights for the KG basin gas. It has alleged that the Centre's move is highly motivated and has been filed only with the intention of helping one party.

Toshiba & JSW to make turbines, generators

Toshiba Corp. and JSW Group agreed to establish a joint venture to manufacture and market super-critical steam turbines and generators for thermal power plants in India. Under the terms of an agreement between the companies, Toshiba and JSW will establish a joint venture in June. The new company will have an initial capitalization of US$50mn, 75% held by Toshiba and 25% by JSW Group, to be held by two group companies, JSW Steel (5%) and JSW Energy (20%). The companies are now deciding the location of the headquarters and manufacturing facilities, and will announce the details in due course. The manufacturing operations are expected to start in September 2009. The scope of the JV includes design, manufacture, marketing and maintenance services of mid- to large-sized steam turbines and generators, ranging in size from 500-megawatts (MW) to 1,000MW that will be deployed in highly efficient super-critical thermal power plants.