RIL’s D-6 block output set to redraw country’s energy map

RIL’s D-6 block output set to redraw country’s energy map

NEW DELHI: The beginning of gas flows from the deep waters of the Bay of Bengal is set to script a new screenplay for the country’s energy sector.

For, the gas production by Reliance Industries (RIL) from the Krishna Godavari basin, the largest natural gas field in the country, is not merely about doubling natural gas production in the country and meeting 90% of the current shortage. It also marks the beginning of a functional gas market in the country. Till now, for the most part, public sector companies have been selling gas at controlled prices. Further, the economy would turn a shade greener, as more factories run on a cleaner fuel and more motorists tank up on compressed gas.

The RIL gas — which is set to be sold to the first customer, Nagarjuna Fertilisers in Andhra Pradesh, in a few days — will be the first unit of the natural green fuel to be sold at a market-determined price. While it is true that the government played a crucial role in vetting the price and even modifying it marginally, this is the first time a consumer will buy gas at a price based on price bids by major consumers.

RIL had asked potential fertiliser and power companies with idle capacity along the pipeline to bid for the gas. The price of gas at $4.20 per mmBtu has been finalised based on the bids submitted by these consumers. The gas produced by all government-owned companies is sold at controlled prices.

Most of these customers have been either buying gas at a controlled price of $2.40 per unit or other alternatives like liquefied natural gas and naphtha that come at relatively high prices ranging between $4 a unit and even $8 depending on global prices. While several power plants — like those of NTPC, and private companies like GVK, GMR and Lanco, among others — have been forced to remain idle for years, fertiliser companies have had to import urea and run their plants on expensive naphtha. The RIL gas will provide customers a choice of the fuel, more availability and cheaper options.

For the government, the RIL gas will bring in a steady flow of revenue to the government in the form of profit petroleum. It is estimated that RIL will contribute $14 billion over the 11-year period for the 80 mmscmd that RIL plans to produce in the first phase. This comes at a time when the government’s finances are under severe pressure with a slowdown in the economy — fiscal deficit estimated to be around 6% for 2008-09 — and revenues dipping — estimated shortfall of Rs 20,000 crore from the revised targets.

RIL’s gas comes ahead of the government’s next round of exploration bidding. The petroleum ministry is working on the new schedules for the next round and the commercial production from KG basin will help provide investor confidence to potential players.
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Energy boost for India as KG gas flows

NEW DELHI: In a development slated to enhance India’s macroeconomic health as well as energy security, Reliance Industries (RIL) has commenced natural gas production from its D-6 block in the Krishna-Godavari (KG) basin. The gas started to flow late on Wednesday evening. The development will reduce India’s trade deficit, cut the subsidy burden on fertilisers, and improve chances of oil multinationals investing in oil and gas exploration in Indian seas. “The company has started producing 2.5 mmscmd of natural gas from the D-6 block on Wednesday evening. The output is expected to go up to 5 mmscmd in a day. Production will gradually increase to reach its peak of 80 mmscmd within a year, which would double the country’s gas production,” petroleum secretary RS Pandey said on Thursday. Along with the oil it produces, the field would meet about one-sixth of India’s total oil and gas consumption, he said. The country’s annual consumption of petroleum and natural gas is equivalent to 175 million tonnes of crude oil. RIL’s KG gas will reduce the country’s import bill by $9 billion annually during peak production at current prices. In 2007-08, the crude oil import bill was about $68 billion. The value of the gas over the 11-year life of the project is estimated at around $42 billion at $4.20 per mmBtu, and at this rate, the government’s share is expected to be about $14 billion. With $2 billion going to RIL’s bottom line every year, as ET had reported on March 30. Of course, prices would change, and so would these figures. Engineering complexity and financing challenges were not the only hurdles the project had to clear: a wrenching legal battle arising from the bitter fallout between the two brothers who inherit the Reliance name was the final obstacle. “Reliance has created history and has once again demonstrated its ability to implement complex projects on a par with the best performance benchmarks in the world,” RIL CMD Mukesh Ambani said in a statement. RIL, with its partner Niko Resources of Canada, had bagged this block in the first round of the new exploration licensing policy (Nelp-1). RIL holds a 90% interest in the block while the balance is held by Niko. The gas was discovered in 2002 and production commenced in less than seven years of the discovery. According to Mr Pandey, the KG gas will first reach the Nagarjuna fertiliser plant in the eastern part of the country (near the KG basin) in 4-5 days, and will be supplied to the farthest fertiliser plant in western India within 15 days. As per the government’s gas utilisation policy, the first 15 mmscmd gas from the KG basin will be supplied to fertiliser units situated around the natural gas trunk pipelines. “At peak level, it would amount to 44% of the current oil and gas production taken together,” he said.

Commenting on the development, global consultancy firm KPMG’s head of Infrastructure & government, Jai Mavani, said: “This is the first time, deepwater production of natural gas shall commence in India. Hopefully, this should also establish the commercial viability of the deepwater play in India. The huge volume of natural gas slated to come onstream from D-6 shall go a long way in mitigating the supply shortage in the country. In these times of ballooning current account deficit, the forex savings that this gas production will bring in is indeed welcome.”

The initial production of gas from the Dhirubhai 1 and 3 discoveries of the KG D-6 block will be sold to existing gas-starved fertiliser and power companies, resulting in substantial reduction in subsidy burden of the government, the statement said. As per an official estimate, the allocation of 15 mmscmd gas to the fertiliser sector will help the government save the fertiliser subsidy bill of Rs 3,000 crore.


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Govt receives first instalment of profit petroleum from KG basin

NEW DELHI: The government has started receiving its share of profit from Reliance Industries (RIL)-operated D-6 block in the Krishna-Godavari (KG) basin. It has booked $218,960 as its first profit share for the quarter ended December 31, 2008, by selling crude oil produced from the block, a petroleum ministry official said. The block started producing natural gas recently. The profit was generated from the sale of crude oil produced from the block beginning mid-September at an average price of $50.80 a barrel, said the official who didn’t wish to be named.

In the quarter ended December 31, 2008, Reliance Industries (RIL) earned $21,896,016 by selling crude from MA oil field in KG-D6 block. As per the contract between the government and RIL, the contractor was entitled to keep 90% of the sum towards recovering huge investments

made by it in developing the field. The balance amount was distributed between the contractor (RIL) and the owner (the government) in a mutually-agreed proportion.

The official said that RIL has spent $6.26 billion in developing the KG basin block. The government has approved $8.84-billion expenditure to produce 80 million standard cubic meters per day (mmscmd) of natural gas from the block. This also includes creation of an excess infrastructure capacity for producing 120 mmscmd of natural gas from the field. An email query to RIL in this regard went unanswered.

The directorate general of hydrocarbons — the technical adviser for upstream activities in the petroleum ministry — didn’t confirm or deny the figures. As per a DGH figure, the contractor had spent $4.65 billion for developing oil and gas fields up to March 31, 2008.

According to an estimate by the petroleum ministry, the field is expected to generate a revenue of $42 billion over the life of the field, which is 11 years. The government is expected to earn $14 billion from the D-6 block. “However, the figure is based on assumptions. It is calculated by keeping gas price at $4.20 per million British thermal unit (mmBtu) which is dependent on a formula with variables,” the official said.

Source:ET

India to save $9 bn in oil import with RIL's KG D-6 production

India to save $9 bn in oil import with RIL's KG D-6 production

NEW DELHI: India will save $9 billion in oil

import bill with the beginning of production from Reliance Industries' eastern offshore KG D-6 fields, said Petroleum Secretary R S Pandey.

"Yesterday evening, as RIL has informed us, production has begun," he told reporters.

Initial output was at 2.5 million standard cubic metre and will gradually increase. "Tomorrow it will become five million standard cubic metre per day," Pandey said.

The first, of the 15 fertiliser plants, that will get all of the initial output, is expected to get the gas in 3-4 days time, he said, adding, "The most distant plant will get the gas in about 15 days."

"In four months time, the production will be 40 mmscmd and in about a year's time it will be 80 mmscmd," he said.

"It will reduce oil import bill by about $9 billion annually during peak production at current prices," Pandey said adding, gas sales over the 11 year-life of the field will generate $42 billion in revenues.

The government's share in the production would amount to a minimum $14 billion, he said.

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Reliance begins pumping gas from KG basin field 3:21pm IST

NEW DELHI (Reuters) - Reliance Industries has started pumping natural gas from its massive deep-sea field in the Bay of Bengal, which at full throttle will nearly double India's gas output, the company said on Thursday. Full Article

By Nidhi Verma

NEW DELHI (Reuters) - Reliance Industries has started pumping natural gas from its massive deep-sea field in the Bay of Bengal, which at full throttle will nearly double India's gas output, the company said on Thursday.

Petroleum Secretary R.S. Pandey told reporters the company was producing 2.5 million standard cubic metres a day (mmscmd) of natural gas on Wednesday, and output may double in a day.

The first customer in the fertiliser sector would start getting gas supplies from Reliance in four to five days, Pandey said, while the plant farthest from the field would get supplies in 15 days.

The company last week signed a sales agreement with fertiliser firms, which have to be given first priority in gas sales, according to a government decision.

Shares in Reliance Industries rose 5.8 percent to 1,671.25 rupees by 0917 GMT, in a firm market that was up 5.1 percent.

Reliance, which has invested $8.84 billion for the development of the D1 and D3 fields in its D-6 block, said last month the company would initially produce 10-12 mmscmd and raise it by about 10 mmscmd a month, reaching its peak production of 80 mmscmd by the end of this year.

"At peak level it would amount to 44 percent of current oil and gas production taken together," Pandey said.

He said at a price of $4.2/mmBtu and the current reserve size, the project had a potential to generate $42 billion in revenue over its life of 11 years.

ccording to the upstream regulator's website, the expected peak production of 80 mmscmd can be sustained for six years. The fields are expected to hold reserves of 10.03 trillion cubic feet.

Reliance has a 90 percent interest in the block, while Canada's Niko Resources holds the rest.

Pandey said D-6 gas would help India reduce its crude imports by $9 billion a year, or about 10 percent of the import bill in 2008/09.

Reliance said the exploration block it was awarded in the first round of India's New Exploration Licensing Policy (NELP) had started production six and a half years after the gas was discovered.

Pandey said gas production from the deep-water project would encourage potential investors in the auction of 70 blocks in the next round of NELP that would be launched on April 9.

But Cairn India CEO Rahul Dhir said this week that potential investors may be deterred by the government's move to restrict Reliance's marketing freedom.

India will offer 24 deepwater, 28 shallow water and 18 onland blocks in the next round, Pandey said.

(Additional reporting by C.J. Kuncheria)

(For our special online coverage of the impact of Reliance's gas field on India's energy sector, please click:

here)

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How RIL can help India save $9 billion

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$9 billion! That's how much India will save with the RIL KG D-6

April 2, 2009

India will save $9 billion in its oil import bill with the beginning of production from Reliance Industries' eastern offshore KG D-6 fields, said Petroleum Secretary R S Pandey.

"Yesterday (Wednesday) evening, as RIL has informed us, production has begun," he told reporters.

The initial output was at 2.5 million standard cubic metre and will gradually increase. "Tomorrow (Friday), it will become five million standard cubic metre per day," Pandey said.

Image: Reliance Industries' KG-D6 floating production storage and offloading vessel is seen off the Bay of Bengal. | Photograph: Reuters

$9 billion! That's how much India will save with the RIL KG D-6

April 2, 2009

The first of the 15 fertiliser plants that will get all of the initial output is expected to get the gas in 3-4 days time, he said, adding, "The most distant plant will get the gas in about 15 days. In four months time, the production will be 40 mmscmd and in about a year's time it will be 80 mmscmd."

"It will reduce our oil import bill by about $9 billion annually during peak production at current prices," Pandey said, adding that gas sales over the 11 year-life of the field will generate $42 billion in revenue.

The government's share in the production would amount to a minimum $14 billion, he said.

Reliance Industries created history when natural gas from its deep-sea Krishna Godavari basin fields flowed to surface on Wednesday. This feat, which was achieved in just seven years, will transform India's energy landscape.

"Natural gas production from the wells started at 1700 hours Tuesday and it reached the onland receiving facility at Gadimoga in Kakinada district of Andhra Pradesh this (Wednesday) morning," a source in know of the development said.

It took 13-14 hours for the gas to travel from the sea-bed to the onshore facility. "The flare (at Gadimoga) lit up at 0920 hours," the source said.

A company spokesperson confirmed the start of gas production, but did not give details. "We will be issuing a statement shortly," he said.

Reliance took just seven years from the date of discovery to begin gas production from the deep-sea KG-D6 block as against the global practice of a minimum nine years.

The gas would boost power supply from idle electricity generators starved of fuel and produce cheaper urea for agriculture.

"It is a landmark in the history of oil and gas production. World-over, this has created a new benchmark for deep-sea developers," said Director-General of Directorate General of Hydrocarbons V K Sibal.

The $8.835-billion (Rs 441.75 billion) project will double domestic natural gas production when the field hits its peak output of 80 million cubic meters per day in 2010.

It will wipe out the fuel deficit at urea-making fertiliser plants and meet half of the 36 mmcmd gas shortfall in power plants. Reliance will produce enough gas to meet about a third of the UK demand.

"Whenever I have interacted with officials from global oil majors like Chevron and BP, they have been highly appreciative of the project management skills of Reliance," Sibal said.

he gas output will start at 10 mmcmd and rise by the same volume every month to reach 40 mmcmd by July-end.

"Each well is capable of producing 5-6 mmcmd gas," Sibal said.

"Our endeavour is to quickly ramp it up to peak 80 mmcmd. We are targeting the peak-out by the year-end (2009 calendar year)," the company's head of oil and gas business, P M S Prasad, had stated last week.

If achieved by 2009-end, the peak output will come a year earlier than previously planned. Of the 18 wells drilled in the Phase-I of the project, six would be put on production initially and the remaining would be hooked up one by one. Besides doubling the nation's domestic gas production, KG-D6 gas would displace costly naphtha or imported LNG as fuel at power and fertiliser plants

At $4.2 per million British thermal unit, KG-D6 gas is 25 per cent cheaper than the fuel produced by UK's BG-operated Panna/Mukta and Tapti fields in western offshore and 20 per cent cheaper than liquefied natural gas imported on long-term contracts.

'KG-D6 gas will replace about seven per cent of India's oil consumption in 2009-10, rising to 14 per cent in the following three years,' Goldman Sachs said recently in a report.

Besides, it would also reduce the Asia's third-largest oil consuming nation's current account and fiscal deficits and support economic growth.

'All else being equal, the current account deficit could improve by 0.2 per cent of GDP in 2009-10, and progressively go higher to an average improvement of 0.6 per cent of GDP in 2010-11 to 2013-14,' the report said.

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Source:ET,Reuters India,Rediff

http://in.reuters.com/news/globalcoverage/IndiaEnergy

Natural gas flows from RIL's KG basin

Source: reuters,economic times etc
Natural gas flows from RIL's KG basin



NEW DELHI: Reliance Industries created history when natural gas from its deep-sea Krishna Godavari basin fields flowed to surface today, a fleet achieved in flat seven years that will transform India's energy landscape.

"Natural gas production from wells started at 1700 hrs yesterday and it reached the onland receiving facility at Gadimoga in Kakinada district of Andhra Pradesh this morning," a source, in know of the development, said.

It took 13-14 hours for the gas to travel from the sea-bed to the onshore facility. "The flare (at Gadimoga) lit up at 0920 hours," the source said.

A company spokesperson confirmed start of gas production, but did not give details. "We will be issuing a statement shortly," he said.

Reliance took just seven years from the date of discovery to begin gas production from the deep-sea KG-D6 block as against the global practice of a minimum nine years.

The gas would boost power supply from idle electricity generators starved of fuel and produce cheaper urea for agriculture.

"It is a landmark in the history of oil and gas production. World-over, this has created a new benchmark for deep-sea developers," said Director-General of Directorate General of Hydrocarbons V K Sibal.

The USD 8.835-billion (Rs 44,175 crore) project will double domestic natural gas production when the field hits its peak output of 80 million cubic meters per day in 2010.

It will wipe out fuel deficit at urea-making fertiliser plants and meet half of the 36-mmcmd gas shortfall in power plants. Reliance will produce enough gas to meet about a third of the UK demand.

"Whenever I have interacted with officials from global oil majors like Chevron and BP, they have been highly appreciative of the project management skills of Reliance," Sibal said.

The gas output will start at 10 mmcmd and rise by the same volume every month to reach 40 mmcmd by July-end.

"Each well is capable of producing 5-6 mmcmd gas," Sibal said.

"Our endeavour is to quickly ramp it up to peak 80 mmcmd. We are targeting the peak-out by year-end (2009 calendar year)," company's head of oil and gas business P M S Prasad had stated last week.

If achieved by 2009-end, the peak output will come a year earlier than previously planned. Of the 18 wells drilled in the Phase-I of the project, six would be put on production initially and the remaining would be hooked up one by one.

Besides doubling the nation's domestic gas production, KG-D6 gas would displace costly naphtha or imported LNG as fuel at power and fertiliser plants.

At USD 4.2 per million British thermal unit, KG-D6 gas is 25 per cent cheaper than the fuel produced by UK's BG-operated Panna/Mukta and Tapti fields in western offshore and 20 per cent cheaper than liquefied natural gas (LNG) imported on long-term contracts.

"KG-D6 gas will replace about seven per cent of India's oil consumption in 2009-10, rising to 14 per cent in the following three years," Goldman Sachs said recently in a report.

Besides, it would also reduce the Asia's third-largest oil consuming nation's current account and fiscal deficits and support economic growth.

"All else being equal, the current account deficit could improve by 0.2 per cent of GDP in 2009-10, and progressively go higher to an average improvement of 0.6 per cent of GDP in 2010-11 to 2013-14," the report said.

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RIL's KG-D6 block gas project goes on steam

NEW DELHI: Reliance Industries is believed to have started natural gas production on Wednesday from its deep-sea Krishna-Godavari basin fields, a move that has the potential to transform India's energy landscape.

The company, however, did not officially make any announcement today, with a spokesperson saying Reliance will make a formal statement in this regard tomorrow morning.

Gas from the prolific KG-D6 block will not just help boost power supply from idle electricity generators starved of fuel and produce cheaper urea for agriculture, it will also fetch the government USD 28 billion (Rs 1,40,000 crore) by way of profit share and royalty over the life of the field.

Reliance took just seven years from the date of discovery to begin gas production from the deep-sea KG-D6 block.

"It is a landmark in the history of oil and gas production. World-over, this has created a new benchmark for deep-sea developers," said Director-General of Directorate General of Hydrocarbons V K Sibal.

The USD 8.835-billion (Rs 44,175 crore) project will double domestic natural gas production when the field hits its peak output of 80 million cubic meters per day in 2010.

It will wipe out fuel deficit at urea-making fertiliser plants and meet half of the 36-mmcmd gas shortfall in power plants. Reliance will produce enough gas to meet about a third of the UK demand.

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Reliance begins pumping gas from KG basin field

Reliance begins pumping gas from KG basin field 11:10am IST

NEW DELHI (Reuters) - Reliance Industries has started pumping natural gas from its massive deep-sea field in the Bay of Bengal, Petroleum Secretary R.S. Pandey told reporters on Thursday. Full Article

Source:ET,Reuters

UPDATE 1-Reliance begins pumping gas from KG basin field

Thu Apr 2, 2009 11:47am IST

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Cairn to start oil production in Sep

Cairn to start oil production in Sep



airn Energy Plc - the UK based parent of Cairn India - reiterated its commitment to commence the commercial production of crude oil from its Rajasthan fields from September 2009, when it published its results for year 2008 on 31st March 2009. Although the group will be spending more by way of capital expenditure in 2009 compared to the last year, it will cut down on its capex in other countries to focus on India

.

"The focus in 2009 is delivering production in Rajasthan on schedule and agreeing sales contracts with the buyers for its crude oil," mentioned Norman Murray, the chairman of the group in a press note. He further added, "Once Mangala is on stream, it will generate revenues, which will be used initially to invest in further development work and to pay down debt."

Cairn plans to spend nearly $970 million in 2009 on its India operations with an estimated $900 million represented by the Rajasthan development project. This is 58% higher compared to $614 million that the group spent in 2008 for its India operations. On the other hand, the group's capex in other countries is set to fall by 21.5% in 2009 to $62 million from $79 million of last year. The largest portion of this capex will be spent on exploration activities as against the field development activities in India.

"The size and scope of Rajasthan fields has substantially increased since the original Managala discovery in 2004 when peak production was forecast at 100,000 bpd. Today the facilities being set up will include phased construction of four processing trains with a capacity of 205,000 bpd with scope for further expansion," mentioned Sir Bill Gammel, the CEO of the group adding further that there is potential to extend and enhance the peak plateau production level beyond the currently envisaged 175,000 bpd.

Out of the parent company's total production for the year 2008 nearly 80% was contributed by Cairn India with the rest coming from Bangladesh. Oil represented 54.4% of the group's production with natural gas and associated liquids contributing the rest 45.6% of production. The average price for oil remained near $100 per barrel in 2008 - nearly a third higher than 2007, while the gas realization also improved.

The group spent $614 million during the year on capital expenditure, however, thanks to the private placement of Cairn India's shares for $634 million, the group ended the year with higher cash balance.

The group presently has three producing blocks - two blocks in India and one in Bangladesh - which are however facing natural decline in production. Cairn's share in the production from these blocks stood at 19809 barrels of oil equivalent per day in 2007, which will go down to 11000 boepd in 2009. Cairn Energy Plc: Dwindling Production Year Production 2007 19809 2008 12801 2009 E 11000 From existing producing fields Figures in barrels of oil equivalent per day (boepd) Source: Company In Rajasthan, the company holds over 3000 sq km area under development, where it has done 25 discoveries so far and the three largest discovered fields - Mangala, Bhagyam and Aishwarya (MBA) - are under development. These three fields put together are expected to produce nearly 1 billion barrels of oil equivalent over its estimated lifetime of 32 years. The smaller 22 fields are estimated to hold approximately 400 million barrels of in-place reserves and most of them are awaiting their commerciality to be proved. While the insulated pre-heated pipeline from Mangala to Viramgam and then to Salaya on Gujarat coast is nearing completion, the company has started shipping trial crude oil to Kandla port through insulated tankers. Once this pipeline gets completed Cairn's crude oil will get an access to Indian Oil's Koyali refinery and RIL and Essar's refineries on Gujarat coast. The Cairn group also holds exploration rights in nearly 72,000 sq km area in Greenland, which is a vastly under-explored region apart from some blocks in the Mediterranean region. Source: Economic Times

Power List 2009 from India Today

ISSUE DATED

March 16, 2009

India TodayArchivesMarch 16, 2009

Cover Story

The highest circle

S. Prasannarajan

The new club of the country's power elite, still dominated by moguls and mavens, is a celebration of India’s creative brio as well.

The highest circle (21-40)
The highest circle (41-50)
The official top ten

• A guide to the high and mighty
  
• Top 20 overseas Indians

From India Today Archives

• 2008: The Magic Circle
• 2007: Power Pyramid
• 2006: The Force of 50
• 2005: 50 Power People
• 2004: On a High Horse

• The highest circle II
• The highest circle III
• A guide to the high and mighty

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It is as if only irony alone can bring some cheer to these bleak times. The most feted millionaire today in India and elsewhere is a slumdog. Maybe, as in the movie, only wit and perseverance can keep you on top of the game at a time when the lights are going out all over the highest shrines of capitalism.

In the gathering darkness, desperate invocations have a socialist resonance. And suddenly, the cold breeze of mortality is wafting across the pinstriped republic of plutocrats, that sovereign state within the state that looked infallible till the other day.

The unthinkable is upon us. The masters of the universe have feet of clay. Still, despite all the news of Apocalypse Tomorrow, let’s not be fooled. The traditional relationship between wealth and power remains intact.

The front row of the power elite— the Establishment—is reserved for people who know how to create wealth and play with it, no matter even if they are poorer by a few billions in the wake of the economic downturn.

The sweep of their power, though, is not directly proportional to the size of their wealth; and that is why the richest is not necessarily the most powerful.

Power is all about the ideas and attitude of the one who wields it. The business class that still dominates the Higher Circle tells more than a story of survival; it essays the boldness and ingenuity of a few who still make a difference to the lives of the rest—for better or worse.

Today, in the age of bail-outs and stimulus plans, they may have realised the uses of governments but their power is not subordinate to the rulers of the day. That said, the India Today Power List 2009 shows a shift in hierarchy, a shift that reflects an India where the money is matched by the mind.

India is the stage on which some of the most exuberant shows on earth are mounted. India is the page on which some of the finest words are written.

And we won’t be surprised if Jai Ho becomes a global ring tone. Call it the reach of India’s soft power. As the bad news from the free market multiplies, there is at least something to be happy about: the cultural capital is not melting down.

And this list, though mostly populated by the usual suspects of moguls and mavens, is a celebration of India’s creative brio as well.

The classical architecture of the Establishment—built on the triangular structure of government, the military, and business—hardly exists in democracies. Usurpers and innovators continue to shatter its cosy equilibrium. The rustle of the following pages carries the power of the few whose privilege may be exclusive but not eternal.

1. RATAN TATA, 71, INDUSTRIALIST
NEVER SAY DIE

Ratan Tata

Because in India’s hour of terror, he acted more statesmanlike than any politician.

Because he spoke for the nation in every crisis, whether at Singur or when The Taj was being attacked in Mumbai, personifying India’s fighting spirit by ensuring the hotel reopened within a month.

Because he embodies ethical entrepreneurship even when being challenged with dire circumstances and notwithstanding Mamata Banerjee’s opposition, will roll out the Nano at the promised price this year.

Because despite the recession, his group’s turnover will touch $100 billion this year, and he has not yielded to pessimism, whether on Corus or on the Jaguar Land Rover deal.

The big number: A valuation of $10 billion for the telecom business when the Japanese major DoCoMo paid $2.7 billion for a 26 per cent stake.

Quotable quote: “Some Ms are good and some are bad.”

Y2K: Most of the cars that he drives have the number 2000.

Hot wheels: A Metallic Blue Maserati.

Is known to: Take the controls of his private jets.

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2. MUKESH AMBANI, 51, INDUSTRIALIST
WEALTH CREATOR

Because he did not succumb to either corporate fad or government pressure, staying away from investing in overseas acquisitions and sticking to building greenfield assets that deliver 20 per cent returns on investment.

Mukesh Ambani

Because RIL is likely to end the year with a growth of over 20 per cent with income rising to over Rs 1,60,000 crore from Rs 1,39,269 crore last year, and at a time when everyone is strapped for money, he is swimming in nearly Rs 30,000 crore of cash.

Agenda 2009: Supporting wife Nita in her quest to help Mumbai Indians win IPL Season 2 and shifting into their new home on Altamount Road before the new year.

Is proud that: Low cost gas from KG-D6 will bring down subsidies on power, fertiliser and LPG costs, therefore the fiscal deficit.

Current obsession: Preparing twins Akash and Isha who are leaving to study in the US.

Power moment: First Indian to meet US President Barack Obama within a month of his taking office.

He believes: His dream of farm-tofork revolution will happen next.

3. ANIL AMBANI, 48, INDUSTRIALIST
MR Big

Anil Ambani

Because he is Mr Big in every segment he has a presence in, from power to entertainment, from roads to coalfields.

Because his influence across the country’s political spectrum is unmatched and he bagged three big ticket power projects even with an unfriendly government.

Because by 2015, he could be the biggest infrastructure player in India.

Because he is setting up 32,000 MW of generating capacity, building 500 km of roads, the Delhi Airport Express Metro line as well as the Mumbai Metro project.

Because even as many are downsizing, he will be adding 16,000 employees this year.

Because his tie-up with Steven Spielberg and movie production alliances with Hollywood stars from George Clooney to Nicolas Cage make him a formidable name on the entertainment marquee.

Idea of a binge: Kesar pista ice cream on Wednesday nights at India Gate on the way to the airport to fly back to Mumbai on his Global Express.

Image makeover: Has now switched from flashy Armani to conservative suits.

Is proud about: The 700-bed super specialty hospital which has been set up by wife Tina.

Is happy about: Having improved his mileage. He now runs 18 km every day.

4. SUNIL MITTAL, 51, INDUSTRIALIST
RING KING

Sunil Mittal

Because in a business where he is competing with Tata, Birla, Ambani and Vodafone, he is the biggest, and in an era of gloom, has proved to be an island of boom.

Because given the lead of 25 million, even if Airtel stood still, it would take the nearest competitor nearly 12 months to catch up.

Because with annualised revenues of Rs 38,000 crore for 2008-09 and profit before tax of Rs 15,000 crore, Airtel is among the most efficient money machines and by 2013, Bharti will be a trillion-rupee group.

Because he is engaged in the transformation of telecom into a lifestyle business, ranging from calls to games, from movies to music, making a big play for the Indian mind-share with Bharti Airtel Triple Play, Telephone, Broadband and TV, on a single line.

Because Best Price, his tie-up with Walmart, will take off by June. Because without doubt, he is the face of the new Indian entrepreneur.

Little known fact: Airtel has over one million outlets and recharge stores.

Is looking forward to: His daughter Eiesha’s wedding this summer.

Fitness is: Walking for an hour in Lodhi Gardens.


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5. SHAH RUKH KHAN, 43, ACTOR
YES HE KHAN

Because he is everywhere, at once, as a movie actor, cricket team owner, television producer, sometime television host and ambassador of 10 brands, who was the most visible celebrity on TV in 2008.

Shah Rukh Khan

Because everything he does makes headline news, from a tiff with Salman Khan to a patch-up with Amitabh Bachchan and his film, Rab Ne Bana Di Jodi, almost salvaged a studio, Yash Raj Films.

Because he is emerging as a spokesman for Islam at a time when the religion is under global attack and though Pepsi may have dropped him as their brand ambassador, young people see him as a Bollywood outsider who made it to the top through sheer grit.

Because whether it is anchoring a film awards night or promoting his movie in a reality show, he can be counted on to perform.

Funniest thing anyone ever said to him: Nice try, sir. An SMS from someone after one of his movies.

Biggest joy: Sleeping in bed between his children Aryan and Suhana and constantly being kicked by them. And watching them ski in Austria.

Latest reads: The Yuck Book. “My daughter made me read it.” Artemis Fowl’s The Time Paradox and Daniel Suarez’s Daemon.

6. AMAR SINGH, 54, POLITICIAN
HEAVY METAL

Amar Singh

Because in a year when the economy is in a state of shock, the group is set to double its revenues from last year and with new businesses, expansion in steel as also the refinery going on-stream, their revenues will touch a trillion rupees by 2011.

Because while other companies are talking about shelving plans, the brothers are investing over Rs 15,000 crore in steel alone, taking their production capacity to 14 metric tonnes per annum, and pledging over half-a-billion dollars to telecom operations in Africa.

Because their businesses span sectors, from 1,500 gas stations through which they will retail petroleum products across India to Aegis, their BPO operations with 35,000 employees.

Recession mantra: Keep your head down, believe in yourself and your people during tough times.

Little known fact: With 10,000 employees in the US, Essar Group is the largest Indian employer there.

Smart strategy: With a majority of group companies privatelyheld, the Ruias are insulated from the vagaries of the stock market.

7. SHASHIKANT & RAVI RUIA, 65 and 59, INDUSTRIALISTS
MAN IN THE MIDDLE

Shashikant & Ravi Ruia

Because his support to the government makes it compliant to his demands and the moment he criticised the then finance minister P. Chidambaram for inflation and Petroleum Minister Murli Deora for his ‘anti-people’ (read anti-Anil Ambani) policies, the media assumed there would be a reshuffle.

Because when the Congress dithered over seat sharing in Uttar Pradesh, he worked out a political realignment with Sharad Pawar over dinner that brought the Congress to the negotiating table.

Exchange programme: Substituted Prakash Karat for the Gandhis as his new best friends. Says he sees “a ray of hope” in Sonia and Rahul.

The rethink: “I have already said that 1999 was a mistake,” he says, explaining Samajwadi Party’s decision not to support a Congress government at the Centre then.

And finally: Has stopped wearing his 10-carat diamond ring because “people said I was wearing it for my Venus angle but the real reason is that my wife gave it to me”.

8. SAMIR & VINEET JAIN, 54 and 42, MEDIA BARONS
NEWS WORTHIES

Samir & Vineet Jain

Because not only do they have the largest selling English language daily in the country at 32 lakh copies a day, and the largest English language financial daily selling seven lakh copies every day, but also their television news channel has become the highest rated in that genre.

Because they are the largest private players in radio, with 32 stations across India, to which they have added a foreign acquisition, Virgin Radio, as well.

Because they are the only ones brave enough to launch a business channel slam bang in the middle of a recession.

Because with cash reserves of Rs 3,400 crore, they are best equipped to ride the economic storm.

The big divide: The Vice-Chairman now looks after print and the Managing Director after everything else.

Big change: Mother Indu Jain no longer visits the office.

The big acquisition: Of the soon-to-be-husband of back-from-Stanford daughter Trishala who has been ensconced in the fourth floor of Times House.

Facing the axe: The Times of India’s edit page.

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9. KUMAR MANGALAM BIRLA, 41, INDUSTRIALIST
HEIR RISING

Because despite the economic downturn, the consolidated revenues of the Aditya Birla Group are still $28 billion and he has a footprint that straddles 25 countries.

Kumar Mangalam Birla

Because his companies have attained global leadership and are among the world’s most costefficient copper and aluminum producers.

Because a year of quiet consolidation has seen the Group’s retail operations touch 615 supermarkets and two hypermarkets.

Because thanks to a new will by grandfather B.K. Birla, a large part of the Rs 5,000-crore empire will be inherited by him.

Biggest stress buster: Shooting with his Morini pistol at the Maharashtra Rifle Association’s shooting range in Worli, Mumbai.

Recession mantra: Consistent cost management is holding the group in good stead today.

Road ahead: Wants to make the Aditya Birla Group a part of the Fortune 150 club by 2014.

10. G.M. RAO, 58, INDUSTRIALIST
MASTER OF ALL TRADES

G.M. Rao

Because he is steering the makeover of the eponymous GMR Group from a domestic player in the infrastructure business to a global player with a
presence in seven countries.

Because with the Rajiv Gandhi International Airport in Hyderabad, completed in a record 30 months in March last year, he proved India can have world class facilities.

Because even as the Group builds the new terminal at the Delhi airport, it has ensured an enduring connect with the Delhi Daredevils in the IPL contest.

Big buy: Acquisition of 50 per cent stake in Intergen, a leading global power generation company, at a cost of approximately $1 billion, making the Group the largest private power generation company in India.

Little known fact: A mechanical engineer by training, he was employed in the Public Works Department of Andhra Pradesh before he resigned to turn a jute trader.

Should be embarrassed about: The foray into insurance, creating ING Vysya and finally pulling out of it.

11. A.R. RAHMAN, 43, MUSIC DIRECTOR
THE MAESTRO

A.R. Rahman

Because his recently-acquired hardware underlines India’s growing soft power and his twin Oscar wins have made him the country’s golden boy.

Because he is every international artist’s first choice for collaboration in India, whether it is Kylie Minogue or Akon.

Because he is an amazing amalgam of Indian multiculturalism: born a Hindu, he converted to Islam at his mother’s behest and gave his first public performance in a church as an 11-year-old.

Because his music, a blend of raga and reggae, jazz and hip-hop, has opened the world’s eyes to the dazzling possibilities of Indian film sound.

Time out: None. While the rest of the world is celebrating his win, he has got back to work, completing his pending projects in India for “furious directors”.

Loves to: Surf the Internet on his MacBook and ensures that everyone in his team uses the same too.

First stop anywhere: Mosque and then an electronics shop. Currently devoted to the Continuum fingerboard.

12. ANAND MAHINDRA, 52, INDUSTRIALIST
MADE IN BHARAT

Anand Mahindra

Because by launching the Xylo, a multi-utility vehicle, at the gloomiest point for the automobile industry, he has displayed entrepreneurial courage.

Because with market leadership in tractors, utility vehicles, farm equipment, a finance company that lends to rural households, an SEZ and a realty division, he is all set to bring Bharat back to India.

Because his joint venture with BAE Systems sets him up to be one of the biggest players in India’s emerging defence sector.

Because he is one of the most articulate Indian voices at various international fora, from Aspen to Davos.

Is proud that: Mahindra Realty is a debt-free company. And that one in two tractors in the country carries the Mahindra badge.

Little known fact: The 155 mm howitzer, known to Indians as the Bofors gun, is now in the Mahindra-BAE stable.

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13. AZIM HASHAM PREMJI, 62, BUSINESSMAN
THE FRUGAL BILLIONAIRE

Because he steers India’s No. 3 software services exporter without worrying about the high volatility of the IT industry.

Azim Hasham Premji

Because with a cash chest of $500 million, he is looking for acquisitions abroad and plans to beef up his company’s position in France and Germany.

Because in keeping with deep personal values of corporate governance, he approached the Madras High Court to stop the proposed reverse merger between Subhiksha and Blue Green Constructions and Investments, even though his investment firm, PremjiInvest, had bought a 10 per cent stake in the retail chain from ICICI Ventures for around $150 million last year.

Management mantra: When you over-pay people based on their results, it can generate very distorted behaviours.

Little known fact: He fulfilled his teenage wish, 33 years on, by completing his electrical engineering at Stanford, in 1999.

14. DEEPAK PAREKH, 64,BANKER
MR SOLUTION

Deepak Parekh

Because he is the go-to guy for government and business, whether it is Satyam or the troubled US-64.

Because in a year of edifices turning to dust, HDFC will close with an estimated growth of 19 per cent.

Because he brings credibility to whatever he does, whether it is putting the nuts and bolts of the new pension policy in place or advising the Government on providing affordable housing to the masses in the country.

Because the rumour is that he knows someone on a first name basis on the board of every Fortune 500 company.

Recession mantra: Be cautious and conservative in such times. Don’t focus on market share, instead concentrate on the bottom line.

Road Ahead: Officially it’s his last year in office and July onwards he’ll be busy planning his exit from the company.

Favourite getaways: London and New York, where he enjoys a game of cricket or tennis during the season.

15. RAGHAV BAHL, 49, MEDIA BARON
THE COLORS OF MONEY

Raghav Bahl

Because from measuring the heartbeat of the Bombay Stock Exchange, his network now increases the pulse rate of prime time viewers, with his new channel Colors within striking distance of the nine-year-long No. 1, Star Plus.

Because three of the biggest hits of last year, Singh is Kinng, Golmaal Returns and Ghajini, were owned or distributed by The Indian Film Company.

Because while his two business channels continue to dominate their spaces, he is expanding into new media, with Homeshopping18 a Rs 200-crore property in its second year, and in.com becoming the second largest Indian general interest portal within six months of its launch.

The big discovery: That he likes watching soaps, especially of his own channel. “Balika Vadhu for sure, and occasionally, Jaane Kya Baat Hui, Uttaran and Jeevan Saathi”.

Wish he could have: Kept some extra cash to buy media assets which are currently available at such mouth-watering discounts.

16. AAMIR KHAN, 43, ACTOR
IN HIS OWN LEAGUE

Aamir Khan

Because Jaane Tu…Ya Jaane Na, which he produced, and Ghajini, which he starred in, were two of the biggest hits of last year, grossing over Rs 350 crore at the box office.

Because he is the Establishment’s first choice, be it endorsing the Ministry of Tourism’s Incredible India campaign or lecturing at the Lal Bahadur Shastri Academy of Administration in Mussoorie.

Because he is the face of six brands—his last deal with Tata Sky wrapped at Rs 14 crore a year.

Because he acquired the best body in Khandom and made the eight-pack part of public discourse.

Currently negotiating: The purchase of a housing society in Santa Cruz, Mumbai.

Big surprise: That he hasn’t signed on anything after Raju Hirani’s forthcoming film 3 Idiots and has only a cameo as a painter in wife Kiran Rao’s experimental film Dhobi Ghat.

Idea of extravagance: Gifting a 7-Series BMW to his nephew after the release of his movie and hiring a helicopter to make it to his wedding anniversary.

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17. J.P. GAUR, 78, INDUSTRIALIST
BUSINESS AS UNUSUAL

Because the Jaypee Group’s ambitious Ganga Express-way project across 14 districts of Uttar Pradesh will benefit at least 20 million people.

Because it became India’s largest private hydropower producer with the commissioning of the 400 MW Vishnu Prayag station and doubled its cement production capacity from nine million tonnes to 18 million tonnes per year.

J.P. Gaur

Because with power, cement, infrastructure, hospitality, real estate and education, the Rs 5,500-crore Jaypee Associates has a foothold in 14 states and is the only group in the country that successfully completed two power projects in Jammu & Kashmir in the last decade—Dulhasti and Baglihar.

Because he has a great equation with the chief minister of Uttar Pradesh.

The turning point: The death of his elder brother in 1946 in an accident. Gaur says it changed his life, making him a man of steel. He says he has not cried since.

Real estate watch: A township developed by the Group at Patiali in Etah district, Uttar Pradesh, over a 12-year period, at an investment of Rs 25,000 crore. Says it will be bigger than Chandigarh city.

18. HARISH SALVE, 53,
THE ARGUMENTATIVE INDIAN

Harish Salve

Because everyone who is in trouble or who believes he could be in trouble wants him in their corner, whether it is arch-rivals Mulayam Singh Yadav and Mayawati or longtime foes Lalit Modi and Subhash Chandra.

Because there is hardly any corporate case that he is not arguing and hardly any politician who hasn’t sought his advice.

Because he usually wins the cases he fights.

What excites him: Taking on a former Pakistani minister in a television debate or arguing against OBC reservation in Central government educational institutions. When Salve talks, people usually listen.

Big acquisition: A 7-series BMW, breaking his promise to himself that he would “behave”.

Nice guy move: Every evening he helps his wife Meenakshi set up a stained-glass showroom by typing emails and suggesting marketing strategies. As he quips, “it’s from maximum wages to minimum in the evenings”.

19. AMITABH BACHCHAN, 66, ACTOR
I AM LEGEND

Amitabh Bachchan

Because a chance remark from him on his blog about Slumdog Millionaire can set off a global controversy.

Because he is an easy target for marginal politicians like Raj Thackeray, looking to establish his political party.

Because after 40 years in the profession, he still remains at the top of the game, and is head of a family that includes an articulate Rajya Sabha MP, an actor who works with the best directors in the business, and another actor who is India’s best-known international beauty.

Because the family endorses as many as 10 brands combined and whatever he does sets off a trend, whether it is blogging or walking the red carpet to support his children, be it for Pink Panther 2 or Delhi-6.

Favourite pastime: Posting blogs that he discusses at times with his family.

Embarrassing moment: Walking away from Rekha at an awards show when it looked like she was going to kiss him next.

20. RONNIE SCREWVALA, 51, MEDIA BARON
ALL THE RIGHT MOVES

Ronnie Screwvala

Because he is now Disney’s point man in India, with one of the world’s most powerful empires acquiring a 60 per cent stake in UTV Software and 37.29 per cent in UTV Group.

Because UTV’s presence now spans a world movies channel to a business news network, gaming to the Internet, and the group has emerged as a global business, with 200 of its 1,000 employees based overseas.

Because UTV has shown an unusual flourish in backing sensible cinema, from the edgy terror thriller A Wednesday to the cult youth film Dev D.

Acquisition: A third gaming company and a dream home in Breach Candy that he and his wife worked on for five years.

Is reading: Billion-Dollar Lessons by Paul B. Carroll and a lot of scripts.

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Source: Indiatoday