SAIL to ink pact with Iran for supplying railway tracks

[anonymus]

SAIL to ink pact with Iran for supplying railway tracks
​

With the Western nations easing sanctions on Iran, the country’s biggest steel maker SAIL is all set to sign a definitive agreement to supply steel worth nearly Rs 15,000 crore to help Tehran set up a railway network project spanning over 15,000 km to connect its major ports and key production centres.

Khaleel Rahim, chairman of state-owned trading firm State Trading Corporation (STC) is slated to visit Tehran this week to finalise some of the formalities that could pave the way for steel exports from India.

Iran had sought Indian investment in massively expanding its railway network and needs about 3 million tonnes of steel rails to connect all major cities, industrial centres and also ports for faster evacuation of goods.

Last year, Washington had eased sanctions on Iran, which has enabled Indian companies to explore investment options. The commerce ministry officials had in December last year, met the top brass of SAIL, BHEL and railway infrastructure builder IRCON to consider investing in the west Asian nation.

A top commerce ministry official told The Indian Express that the STC has been entrustedwith inking definitive agreements with its Iranian counterpart to pave the way for Indian steel exports there.

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“Iran is seeking around 3 MT of steel and STC chairman Khaleel Rahim would visit Tehran this week to finalise the formalities,” the official said. Other companies like Jindal, Vizag Steel and Essar are also in the race, a source said.

When contacted, SAIL chairman C S Verma said after several rounds of discussions with the commerce ministry and STC, SAIL has expressed its readiness in supplying 3 MT rail steel. “We are supplying rails to Indian Railways since many years. Our director commercial Vinod Kumar would accompany Khaleel Rahim to help him finalise the modalities,” Verma said.

SAIL’s Bhilai steel plant is the sole supplier of the country’s longest rail tracks of 260 metres. With an annual production capacity of 3.15 MT of saleable steel, the plant also specialises in other products such as wire rods and merchant products.

The commerce ministry official said Indian exporters are banking on the UCO Bank to help implement the rupee payment mechanism. The easing of the payment mechanism has helped propel Indian exports to Iran to over $ 550 million, which, is around eight times the exports few years ago.

UCO Bank, in 2012, began handling payments for India-Iran trade, under which domestic oil refiners buy oil from Iran but make payments into an ‘Iran Account’ with UCO Bank’s Mumbai branch. When Iranians import goods from India, the bank pays the Indian exporters out of this account.

India-Iran trade is expected to cross the $20-billion mark in FY14, up from $15 billion in FY13. India’s exports to Iran include rice, metals, machinery and instruments, primary and semi finished iron and steel, drugs and pharmaceuticals, processed minerals, manmade yarn and fabrics, tea and rubber manufactured items. Imports from Iran include crude oil, urea, petroleum products, saffron and dry fruits.

@SOHEIL @haman10 @rmi5 @Ostad @Abii @Sam1980 @mohsen @JEskandari @Serpentine and any other member i may have missed.

SAIL to ink pact with Iran for supplying railway tracks | The Indian Express

This is the same company which manufactures steel for Indian aircraft carriers.

 

[rmi5]

SAIL to ink pact with Iran for supplying railway tracks
​

With the Western nations easing sanctions on Iran, the country’s biggest steel maker SAIL is all set to sign a definitive agreement to supply steel worth nearly Rs 15,000 crore to help Tehran set up a railway network project spanning over 15,000 km to connect its major ports and key production centres.

Khaleel Rahim, chairman of state-owned trading firm State Trading Corporation (STC) is slated to visit Tehran this week to finalise some of the formalities that could pave the way for steel exports from India.

Iran had sought Indian investment in massively expanding its railway network and needs about 3 million tonnes of steel rails to connect all major cities, industrial centres and also ports for faster evacuation of goods.

Last year, Washington had eased sanctions on Iran, which has enabled Indian companies to explore investment options. The commerce ministry officials had in December last year, met the top brass of SAIL, BHEL and railway infrastructure builder IRCON to consider investing in the west Asian nation.

A top commerce ministry official told The Indian Express that the STC has been entrustedwith inking definitive agreements with its Iranian counterpart to pave the way for Indian steel exports there.

to help us personalise your reading experience.

“Iran is seeking around 3 MT of steel and STC chairman Khaleel Rahim would visit Tehran this week to finalise the formalities,” the official said. Other companies like Jindal, Vizag Steel and Essar are also in the race, a source said.

When contacted, SAIL chairman C S Verma said after several rounds of discussions with the commerce ministry and STC, SAIL has expressed its readiness in supplying 3 MT rail steel. “We are supplying rails to Indian Railways since many years. Our director commercial Vinod Kumar would accompany Khaleel Rahim to help him finalise the modalities,” Verma said.

SAIL’s Bhilai steel plant is the sole supplier of the country’s longest rail tracks of 260 metres. With an annual production capacity of 3.15 MT of saleable steel, the plant also specialises in other products such as wire rods and merchant products.

The commerce ministry official said Indian exporters are banking on the UCO Bank to help implement the rupee payment mechanism. The easing of the payment mechanism has helped propel Indian exports to Iran to over $ 550 million, which, is around eight times the exports few years ago.

UCO Bank, in 2012, began handling payments for India-Iran trade, under which domestic oil refiners buy oil from Iran but make payments into an ‘Iran Account’ with UCO Bank’s Mumbai branch. When Iranians import goods from India, the bank pays the Indian exporters out of this account.

India-Iran trade is expected to cross the $20-billion mark in FY14, up from $15 billion in FY13. India’s exports to Iran include rice, metals, machinery and instruments, primary and semi finished iron and steel, drugs and pharmaceuticals, processed minerals, manmade yarn and fabrics, tea and rubber manufactured items. Imports from Iran include crude oil, urea, petroleum products, saffron and dry fruits.

@SOHEIL @haman10 @rmi5 @Ostad @Abii @Sam1980 @mohsen @JEskandari @Serpentine and any other member i may have missed.

SAIL to ink pact with Iran for supplying railway tracks | The Indian Express

This is the same company which manufactures steel for Indian aircraft carriers.

It is not going to happen. building 15,000 km rail road needs at least 13-15 billion dollars(1-1.5 million$ per mile) which it is not feasible for Iran. Do not forget that mullahs have begged for 4.2 billion dollars and gave up their own nuclear facilities for only 4.2 billion $s.
Brother, try to ignore the BS propaganda news from mullahland, and do not take their news seriously.

 

[TimeToScoot]

Good news

 

[Serpentine]

That's a good news, I hope it doesn't vanish in thin air. An extensive railway ensures stable economic growth and helping Iran become a transportation hub. I think the priority should be the railway connecting Chabahar to Afghanistan.

It is not going to happen. building 15,000 km rail road needs at least 13-15 billion dollars(1-1.5 million$ per mile) which it is not feasible for Iran. Do not forget that mullahs have begged for 4.2 billion dollars and gave up their own nuclear facilities for only 4.2 billion $s.

That's exactly what Shariatmadari, Kayhan and other similar minded people say. For the first time, I think you guys are in the same basket.

 

[rmi5]

That's exactly what Shariatmadari, Kayhan and other similar minded people say. For the first time, I think you guys are in the same basket.

LOL, that's the truth and does not matter who says it. Is there really any other reason for begging(Narmesh e Ghahremaanaaneh)?
It seems that even Shariatmadaari has finally understood it, but some people has not yet.
Anyway, has not government deficit of financial resources to fund about 1/4 of its budget, and has hundreds of billions debts, and has no reputation to borrow more, or print more money?

 

[Serpentine]

LOL, that's the truth and does not matter who says it. Is there really any other reason for begging(Narmesh e Ghahremaanaaneh)?
It seems that even Shariatmadaari has finally understood it, but some people has not yet.
Anyway, has not government deficit of financial resources to fund about 1/4 of its budget, and has hundreds of billions debts, and has no reputation to borrow more, or print more money?

I don't agree with this view on nuclear negotiations, but discussing it would go off topic.

About the budget, yep there are problems. But first, hundreds of billions is overly exaggerated, if you meant dollars of course. But all of the deficit will be a non existent if the negotiations finally reach something, since Iran would have $100 billions instantly, not to forget receiving oil money with dollars or euros and massive influx of investors.

 

[rmi5]

I don't agree with this view on nuclear negotiations, but discussing it would go off topic.

About the budget, yep there are problems. But first, hundreds of billions is overly exaggerated, if you meant dollars of course. But all of the deficit will be a non existent if the negotiations finally reach something, since Iran would have $100 billions instantly, not to forget receiving oil money with dollars or euros and massive influx of investors.

If it was not for the lack of money for IR, they would not sign nuclear agreement with west. That's crystal clear. US has clearly said so, even many in Iran have admit it as well. Not only Kayhan, but also Hashemi has also a famous speech in Firouzkouh I guess, which says exactly the same thing.
Only their debts to banks is definitely more than 800,000 billion Rials, let alone their 15-20 billon foreign debts, and their debts to Iranian and foreign contractors. Economy of Iran is really in a deep shit. sorry for the language, but that's the reality.
BTW, there is no more 100$ surplass anymore. mullahs had about 80-100 billion about 2011, but about 25 billion of it is burnt as the direct money aid to Syria, let alone the money spent for buying arm, and food, ... for Syrian regime. Many of that money is also burnt during the fluctuations of Iranian economy during the embargo on Iranian oil. At least 5-10 billion is also sent to Hizballah, Hamas, ...
So, there is literally a few of that 80 billion left.
BTW, one needs to be a fool to believe that west would give free access to that remaining money(if there is any) at the end of negotiations.

 

[rmi5]

glad to hear. but personally i prefer water.

 

[Ostad]

sorry my bad i was playing a flash game in same time .

 

[Serpentine]

If it was not for the lack of money for IR, they would not sign nuclear agreement with west. That's crystal clear. US has clearly said so, even many in Iran have admit it as well. Not only Kayhan, but also Hashemi has also a famous speech in Firouzkouh I guess, which says exactly the same thing.
Only their debts to banks is definitely more than 800,000 billion Rials, let alone their 15-20 billon foreign debts, and their debts to Iranian and foreign contractors. Economy of Iran is really in a deep shit. sorry for the language, but that's the reality.
BTW, there is no more 100$ surplass anymore. mullahs had about 80-100 billion about 2011, but about 25 billion of it is burnt as the direct money aid to Syria, let alone the money spent for buying arm, and food, ... for Syrian regime. Many of that money is also burnt during the fluctuations of Iranian economy during the embargo on Iranian oil. At least 5-10 billion is also sent to Hizballah, Hamas, ...
So, there is literally a few of that 80 billion left.
BTW, one needs to be a fool to believe that west would give free access to that remaining money(if there is any) at the end of negotiations.

Oh, those random numbers, again. I don't know from where you are gathering those numbers and estimations. Iran's external debt is nothing compared to many countries in the world and it can be paid in less than a year. Iran doesn't have access to the blocked foreign reservations, so how could it give that money to Syria? A main part of negotiations is already about freeing those frozen assets.

And if negotiations lead to a deal, they will HAVE to free those assets and if it fails, they won't. It doesn't take a genius mind to understand the final goals of nuclear negotiations. As I said earlier, if negotiations reach a final deal, budget deficit will be a no problem and it will be solved in less than 2 years, if not 1 year.

 

[rmi5]

Oh, those random numbers, again. I don't know from where you are gathering those numbers and estimations. Iran's external debt is nothing compared to many countries in the world and it can be paid in less than a year. Iran doesn't have access to the blocked foreign reservations, so how could it give that money to Syria? A main part of negotiations is already about freeing those frozen assets.

And if negotiations lead to a deal, they will HAVE to free those assets and if it fails, they won't. It doesn't take a genius mind to understand the final goals of nuclear negotiations. As I said earlier, if negotiations reach a final deal, budget deficit will be a no problem and it will be solved in less than 2 years, if not 1 year.

They are exact numbers and not random. Do you have any source for your claims? you mean the deficit will vanish in 1 year? are you kidding with me? Negotiations would end up with a deal like their deal with Saddam, oil instead of money, in a less strict extent. Mullahs have already gave up most of what they could negotiate in the first run of negotiations. The remaining negotiations would be about less than 20K centrifuges that are enriching in a low grade. BTW, how much oil Iran can export after these negotiations? do you know that Iran's oil wells are old and lose 10% production capacity per year? do you know that Iran needed 100 billion $ to keep its oil production capacity and renovate the necessary parts of its oil industry? do you know that how much damage is done because of non-standard oil production, and using non-sufficient gas injection to oil wells? do you know that finding new customers is a really difficult job? Anyway, instead of getting emotional, provide numbers and proofs.

 

[rahi2357]

That's a good news, I hope it doesn't vanish in thin air. An extensive railway ensures stable economic growth and helping Iran become a transportation hub. I think the priority should be the railway connecting Chabahar to Afghanistan.



That's exactly what Shariatmadari, Kayhan and other similar minded people say. For the first time, I think you guys are in the same basket.

efrato tafrit are in the same way bro

 

[Serpentine]

They are exact numbers and not random. Do you have any source for your claims? you mean the deficit will vanish in 1 year? are you kidding with me? Negotiations would end up with a deal like their deal with Saddam, oil instead of money, in a less strict extent. Mullahs have already gave up most of what they could negotiate in the first run of negotiations. The remaining negotiations would be about less than 20K centrifuges that are enriching in a low grade. BTW, how much oil Iran can export after these negotiations? do you know that Iran's oil wells are old and lose 10% production capacity per year? do you know that Iran needed 100 billion $ to keep its oil production capacity and renovate the necessary parts of its oil industry? do you know that how much damage is done because of non-standard oil production, and using non-sufficient gas injection to oil wells? do you know that finding new customers is a really difficult job? Anyway, instead of getting emotional, provide numbers and proofs.

You didn't provide proofs for your numbers, while asking me to do so. 5 billions to Hezbollah? 25 billions to Syria from foreign reserves? Iran doesn't even have access to them.

My argument is that, even if Iran has about $50 b foreign reserves (which is more), it still can cover not only for budget deficit, but also to provide funding for numerous projects. Also, currently, Iran has a significant amount of gold reserves that it has bought from different countries during sanctions. So yes, budget deficit can be paid in less than a year if frozen assets are to be freed.

About oil industry, yes, there is a need for proper investment, but Iran can still go on and even increase the current production rate. Also, with sanctions removed, there will be a massive demand of western companies to invest in oil and gas industry. In less than 5 years, Iran will be able to increase its gas production significantly because there are too many huge untapped gas reserves. The same is true about oil reserves. Under sanctions, yes, it's hard to keep oil industry sustainable. My whole argument is about when sanctions are removed.

Oil for food? I think this is too laughable to need a proper answer. There will be no oil for food deal or anything similar to deal with Saddam. You can just wait and see. There will be either no deal or a complete removal of sanctions.

 

[rmi5]

You didn't provide proofs for your numbers, while asking me to do so. 5 billions to Hezbollah? 25 billions to Syria from foreign reserves? Iran doesn't even have access to them.

My argument is that, even if Iran has about $50 b foreign reserves (which is more), it still can cover not only for budget deficit, but also to provide funding for numerous projects. Also, currently, Iran has a significant amount of gold reserves that it has bought from different countries during sanctions. So yes, budget deficit can be paid in less than a year if frozen assets are to be freed.

About oil industry, yes, there is a need for proper investment, but Iran can still go on and even increase the current production rate. Also, with sanctions removed, there will be a massive demand of western companies to invest in oil and gas industry. In less than 5 years, Iran will be able to increase its gas production significantly because there are too many huge untapped gas reserves. The same is true about oil reserves. Under sanctions, yes, it's hard to keep oil industry sustainable. My whole argument is about when sanctions are removed.

Oil for food? I think this is too laughable to need a proper answer. There will be no oil for food deal or anything similar to deal with Saddam. You can just wait and see. There will be either no deal or a complete removal of sanctions.

You are emotional again.
US already gave access to only 4.2 billion $s for most part of the nuclear facilities and capabilities getting shut down. How much more they would give access for rest of few remaining facilities?
BTW, US has already said that they are much things that needs to be negotiated. it clearly means that getting nuclear facilities shut down, would not be all of P5+1 goals. right?
Anyway, you are giving me some empty words. Increasing or even maintaining oil production capacity needs a huge amount of money. Anyway, instead of empty slogans, read about the number of un-finished projects, and money needed to finish them.
The point is very clear. Instead of empty words, try to find out why mullahs have agreed to sign nuclear deal with west. BTW, Syrian conflict would not finish any time soon and it would remain as a money pit hole for the next 2-3 years at least.

 

[Serpentine]

You are emotional again.
US already gave access to only 4.2 billion $s for most part of the nuclear facilities and capabilities getting shut down. How much more they would give access for rest of few remaining facilities?
BTW, US has already said that they are much things that needs to be negotiated. it clearly means that getting nuclear facilities shut down, would not be all of P5+1 goals. right?
Anyway, you are giving me some empty words. Increasing or even maintaining oil production capacity needs a huge amount of money. Anyway, instead of empty slogans, read about the number of un-finished projects, and money needed to finish them.
The point is very clear. Instead of empty words, try to find out why mullahs have agreed to sign nuclear deal with west. BTW, Syrian conflict would not finish any time soon and it would remain as a money pit hole for the next 2-3 years at least.

No one on this forum knows me for posting emotional content, so you better find a more proper counter argument.

How are my words empty, but yours are rich while you are the one who is talking about future as if you can predict things. I think this argument will have no result, since one side can't distinguish between political hatred and reality and mixes them.

You and I, we will talk about this issue in less than a year, you can mark my words and I will mark yours. Talking about future deals is meaningless, so let's see what happens when the result is clear, whether the negotiations fail or succeed.