Latest news with #MeghaEngineering
Hans India
2 days ago
- Business
- Hans India
India's largest underground LPG storage cavern unveiled
Mangaluru: A landmark achievement in India's energy infrastructure was realised with the completion of the nation's largest underground liquefied petroleum gas (LPG) storage cavern in Mangaluru. Capable of holding 80,000 metric tonnes of LPG, this state-of-the-art facility bolsters the country's capacity to meet critical energy demands, particularly during emergencies. The cavern, developed by Megha Engineering under the central government's oversight, underwent a rigorous Cavern Acceptance Test (CAT) from May 9 to June 6 to verify its safety and operational integrity. This marks the third underground storage facility in the Mangaluru region, joining the existing crude oil caverns at Permude (1.5 lakh metric tonnes) and Padur (2.5 lakh metric tonnes). Unlike its predecessors, this cavern is dedicated exclusively to LPG, surpassing the 60,000-tonne capacity of a similar facility in Visakhapatnam to claim the title of India's largest. Approved by the central government in 2018, construction began in 2019 and culminated at a cost of Rs. 800 crore. The facility, carved 500 meters beneath the earth's surface through solid rock, is supported by a newly completed pipeline system connected to a floating jetty in the sea, enabling efficient LPG transfer. This development strengthens India's energy security, ensuring a robust supply chain for LPG across the region. Authorities anticipate the facility will play a pivotal role in stabilising gas availability, reinforcing Mangaluru's growing significance as a hub for strategic energy reserves say the company officials.
Time of India
09-06-2025
- Business
- Time of India
Megha deal: Krishna Reddy plans Rs 15,000 cr buyout of uncle PP Reddy's 51% stake
Megha Engineering's shareholders, the Reddy duo, are finalizing a family settlement where PV Krishna Reddy will acquire Pamireddy Pitchi Reddy's 51% stake for around Rs 12,000-15,000 crore. Krishna Reddy plans to raise funds through asset monetization and financial institutions to complete the deal by March 2027. The infrastructure giant's rise has been marked by both success and controversy. Tired of too many ads? Remove Ads Deal set to Wrap Up Next Year Tired of too many ads? Remove Ads Power of two Tired of too many ads? Remove Ads Beyond Business Mumbai|New Delhi: The two principal shareholders of Megha Engineering and Infrastructure (MEIL), the Reddy uncle-nephew duo, are finalising a family settlement, said people with knowledge of the will see PV Krishna Reddy buying out uncle Pamireddy Pitchi Reddy's controlling interest three decades after the two started their entrepreneurial journey with small pipes for municipalities. It's since become a $5-billion, privately held infrastructure conglomerate that's among the largest in the country, said the people in the Reddy, with a net worth of $2.2 billion as per Forbes, is in talks with financial institutions to raise as much as Rs 12,000-15,000 crore to buy out his uncle's 51% stake in the holding company. Krishna Reddy owns the remaining 49%.According to the people cited, the services of a former chief justice of India were used to finalise the terms of settlement, which has been in the works for over two years. These have now been formalised and the valuations agreed upon, they deal has to be wrapped up by March Reddy is planning to raise part of the funds from private structured credit and special situation funds such as Kotak Alternate Asset Managers, Varde and Farallon. He's also in discussions with global banks such as Deutsche aims to partly or fully monetise some assets to raise the residual financing. One such asset is a power transmission project in western Uttar Pradesh, for which offers have come from domestic infrastructure groups, said officials involved. The nephew expects to raise almost half the settlement amount—about Rs 7,000 crore—from the sale of the interstate transmission lines and the substation have also been taking place with some of the largest global funds to divest the city gas unit. Megha City Gas Pvt Ltd is operational in 62 districts across eight states including Punjab, Maharashtra, Madhya Pradesh, Andhra Pradesh and Tamil the transmission network has been on the block, a deal is yet to be clinched, insiders said. Against a payment schedule for the Rs 15,000 crore settlement amount, only about Rs 1,000 crore has been paid so operations and maintenance wing of Olectra Greentech, the only listed entity of the group, may also be hived off to raise funds, said the people cited. Megha Engineering is the promoter of the company that makes e-buses and composite polymer insulators with a 50% stake. Between July 2023 and February 2024, the stock of Olectra Greentech more than doubled in value, sending it to an all-time high of over Rs 2,200. The stock was down 45% from those levels at the Friday Reddy declined to comment. PP Reddy didn't respond to the settlement was not easy, said the people cited, given that there was interest from one of the country's richest men—whose conglomerate is invested heavily in infrastructure—in the 51% stake of Reddy senior. According to people in the know, Krishna Reddy sought the aid of top political leaders to ward off this flamboyant uncle, PP to his friends, comes from humble origins in the Krishna district of Andhra Pradesh. Within two years of starting the business, he roped in his nephew. After initial success in irrigation projects, the group diversified into natural gas distribution, roads, dams, tunnelling, engineering, procurement and construction (EPC) and hydrocarbons, among 2006, the company's name was changed to the current one from Megha Engineering Enterprises.'Megha is a classic case study of the rise of the Telugu businessman under YSR Reddy's irrigation boom,' said the managing director of another Hyderabad-based diversified group, referring to the deceased chief minister of the undivided state. 'Like several of their peers in business and community, they started doing PWD (public works department) contracts only to become massive. It's a similar trajectory taken by other families that run GMR, IVRCL, Navayuga, NCC, Ramky etc. Several amassed enormous wealth but succumbed to debt pressures. Megha has only grown bigger.'This meteoric rise brought them into the national spotlight but also into regulatory and corporate crosshairs. Following the disclosure that Megha had bought electoral bonds worth Rs 966 crore, allegations of a quid pro quo for government contracts surfaced. The company has always denied any Reddy was responsible for expanding operations, acquiring companies in Italy for instance, said the people cited. This has helped the group expand in Asia, Africa and Latin America and form joint ventures such as the one with China's BYD for electric vehicles (EVs). However, the joint venture's plan to make EVs in India has been stuck for years due to Press Note 3, which mandates government approval for investments from countries that share a land border with India. This is specifically aimed at China due to the testy ties between the acquired the oil and gas division of the Trevi Group , which included Drillmec SpA and Petreven SpA (Italy) for 116.4 million euros in 2020. Drillmec is a global manufacturer of oil and gas drilling rigs and related equipment. It currently operates rigs in Venezuela and of the reasons for the uncle stepping aside is age, said people who know him.'PP is turning 70 soon and he wants to now retire and lead the good life,' said a long-time family friend. 'Krishna is firmly in the saddle and the family, instead of bickering, came to an understanding. There were initial differences in terms of valuations, but that is very common. Now Krishna is busy organising funds to fast-track the buyout. I will not rule out an IPO down the line as well. The asset sales will also help prune the vast portfolio.'MEIL's marquee project wins — the Zojila Road Tunnel , Char Dham Rail Tunnel, Thane Borivali twin tunnel project, Machilipatnam Port, Tuticorin Thermal Project , BKC bullet train terminal and Kaleshwaram Lift Irrigation Project — have faced controversy and challenges by month, L&T took the Mumbai Metropolitan Region Development Authority (MMRDA) to the Supreme Court after its bid for the construction of a road tunnel between Gaimukh and Fountain Hotel Junction and an elevated road along the Thane-Ghodbunder corridor--key links in Mumbai's coastal road initiative--were rejected by the civic two high-value infrastructure projects worth Rs 14,000 crore had been awarded to MEIL. The controversy forced MMDRA to scrap the tender.
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Business Standard
11-05-2025
- Automotive
- Business Standard
Tesla scouts for land in Satara to set up completely knocked down unit
Last week, Tesla's India head Prasanth Menon stepped down. A Tesla's China team will now oversee the EV maker's India operations Puja Das New Delhi Listen to This Article Elon Musk's Tesla is exploring land parcels in Satara, the hometown of Maharashtra Deputy Chief Minister Eknath Shinde, to set up a completely knocked down (CKD) assembly unit for electric vehicles (EVs), a senior government official said. This comes after Tesla's negotiations with Hyderabad-based Megha Engineering fell through, the official said, adding that the EV maker was in discussions with another Indian firm for a joint venture to acquire land and set up a CKD unit. CKD is a method used to reduce import duties and facilitate local assembly by shipping vehicle parts separately to be assembled in the destination
Hindustan Times
06-05-2025
- Politics
- Hindustan Times
Bengaluru South taluks to receive permanent drinking water supply by December: DK Shivakumar
Karnataka Deputy Chief Minister DK Shivakumar has announced that the permanent drinking water supply project for taluks in Bengaluru South district will be completed by December this year. According to news agency PTI, the project, which is being implemented at a cost of ₹540 crores, aims to provide reliable drinking water to the region, a promise made during the Chennapatna by-polls. Shivakumar highlighted that the project will benefit areas including Ramanagar, Kanakapura, Chennapatna, and Magadi taluks. The Deputy Chief Minister also performed the groundbreaking ceremony for the project near the Sattegala reservoir, the report added. (Also Read: Bengaluru Police summons Sonu Nigam over alleged remarks against Kannadigas) "We made a commitment to supply drinking water to all the taluks in Bengaluru South, and we are determined to keep that promise," said Shivakumar. The project was initially launched during his tenure as Water Resources Minister, and he expressed concerns about delays. The Deputy Chief Minister enquired with officials and Megha Engineering, the Hyderabad-based firm executing the project, regarding the reasons for the holdup. The project aims to supply 3.3 TMCft of water at a nominal cost. It is expected to benefit approximately 10.82 lakh people and 9.03 lakh cattle in the region, which has faced recurring water scarcity due to insufficient rainfall in recent years. Shivakumar also clarified that land for the project is being acquired from farmers as needed, with fair compensation provided. "We are ensuring that farmers who are cooperating with the project by giving up their land receive adequate compensation," he said. This initiative is designed to improve the area's groundwater levels and alleviate the ongoing water scarcity. Water will be transported from the Sattegala reservoir to the Iggalur barrage via gravity, with 220 cusecs of water flowing for 180 days. The project includes a 25.4 km pipeline, of which 5.5 km has already been completed. Additionally, 11.33 km of the 12.05 km tunnel, which is part of the infrastructure to deliver water, has also been completed. Water will eventually be supplied to several key reservoirs in the area, including Kanva, Manchanbele, and YG Gudda, through a lift irrigation system. Shivakumar, along with former MP DK Suresh, MLAs CP Yogeshwar and Kadalur Uday, and MLCs S Ravi and Sudham Das, also reviewed the ongoing tunnel work as part of the project's progress. (With agency inputs) (Also Read: Who offered ₹5 lakh to kill Suhas Shetty? Karnataka police reveal Mangaluru murder plot)
The Hindu
05-05-2025
- Business
- The Hindu
‘Permanent drinking water project for Bengaluru South district to be completed by December'
Deputy Chief Minister and Bengaluru Development Minister D.K. Shivakumar announced on Monday that the long-awaited permanent drinking water supply project for the Bengaluru South district is slated for completion by December 2025. Talking to reporters after the foundation stone laying ceremony near the Sattegala reservoir, Mr. Shivakumar reaffirmed the government's commitment to delivering on a poll promise made during the Channapatna byelections. The ₹540-crore project aims to provide drinking water to the parched taluks of Ramanagara, Kanakapura, Channapatna, and Magadi — regions grappling with persistent water scarcity and erratic rainfall. 'We are supplying 3.3 tmcft of water at a nominal cost. This project was conceptualised during my earlier tenure as Water Resources Minister. Today, I reviewed the progress and enquired about the reasons for delay,' said Mr. Shivakumar. Mr. Shivakumar held discussions with officials and representatives of Megha Engineering, the Hyderabad-based firm implementing the project, and emphasised timely completion. Responding to concerns about land acquisition, he assured fair compensation to farmers whose land is notified for acquisition.
