Latest news with #TCE
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Business Standard
7 hours ago
- Business
- Business Standard
CBI books ex-officials of TCE, JNPT in ₹800 cr ship channel dredging scam
The Central Bureau of Investigation has filed a case against former officials of Jawaharlal Nehru Port Trust (JNPT) and Tata Consulting Engineers (TCE), and two dredging companies over alleged irregularities worth over Rs 800 crore in the Capital Dredging Project to deepen ship navigational channels near Mumbai, officials said. The agency took the action after a three-year-long preliminary inquiry to look into the allegations of inflated estimates, throttling of competition to favour international bidders, extension of undue favours to contractors, and suppression of reports of independent expert organisations. In its FIR, the CBI has booked the then chief engineer of JNPT Sunil Kumar Madabhavi, then project director of TCE, Devdutt Bose, Boskalis Smit India LLP, Jan De Nul Dredging India Pvt Ltd and other unidentified public servants under IPC Section 120-B (criminal conspiracy), 420 (cheating) and provisions of the Prevention of Corruption Act. After the FIR was registered on Wednesday, the CBI conducted searches at five locations in Mumbai and Chennai, including the residence of Madabhavi, Bose and offices of private companies. The searches led to the recovery of a number of documents relating to the Capital Dredging Project, digital devices and documents showing investments made by public servants, a CBI spokesperson said. The documents recovered are being examined, she said in a statement. No immediate reaction was available from the accused companies. "The allegations of pecuniary advantage obtained by the private companies as a result of abuse of official position by the JNPT officials resulting into a huge wrongful loss to the exchequer, spread over the period from 2003 to 2014 (phase-I of the project) and 2013 to 2019 (phase-II of the project) was also inquired," the CBI said in the FIR. The inquiry showed a criminal conspiracy between JNPT officials and other private persons, including an official of Tata Consulting Engineers, and others, which resulted in wrongful loss amounting to Rs 365.90 crore for phase-I and Rs 438 crore for phase-II to JNPT due to over-dredging. The case pertains to a project envisaged by the JNPT to deepen and widen the navigational channel it shared with the Mumbai Port in 2003 to cater to the needs of larger size cargo ships. TCE was roped in for preparation of a final report on the planning for dredging activities for the Capital Dredging Phase-I project, which was submitted in 2010 in association with Dredging Solution. TCE was also awarded the work of project management consultant for the project, including preparation of the tender documents and work of supervising the execution of the project, the FIR alleged. The CBI during its preliminary inquiry found that JNPT officials along with TCE executives kept tender conditions to favour foreign bidders, and violated the guidelines of Competition Commission of India by allowing complimentary bidding, and allowed the formation of the joint venture by solely eligible bidders Boskalis Smit India LLP with Jan De Nul Dredging India Pvt Ltd (also known as BSI-JDN JV). The CBI inquiry also showed violation of a number of guidelines related to fixation of rates for dredging different type of rocks, delay in project, false claim of Rs 348 crore by the contractor without actual performance of work, excess payment of Rs 430 crore, and manipulation of the pre-dredge survey by using a less accurate software, 'Qinsy', among others.
Time of India
8 hours ago
- Business
- Time of India
CBI books JNPT officials, Tata firm for 804cr fraud
Mumbai: CBI has registered a case against Jawaharlal Nehru Port Trust (JNPT) officials and Tata Consulting Engineers (TCE), a project management consultant, for allegedly causing Rs 804 crore loss to govt in a contract to increase the depth of the channel for large cargo ships. CBI was carrying out searches at several premises at the time of going to the press, report Vijay V Singh & Reeba Zachariah. The FIR mentions "preparation of inflated estimates, restriction of competition to favour international bidders, extension of undue favour to contractor and suppression of reports of independent experts/organisations". CBI conducted searches at Tata Consulting Engineers' (TCE) Mumbai and Navi Mumbai offices and took "some materials from the locations", sources said. CBI has registered a case against JNPT officials and TCE for allegedly causing Rs 804 crore loss to govt in awarding a dredging contract. The sources clarified that TCE acted as a project management consultant for the JNPT dredging projects and earned just Rs 12 crore from them. Late on Friday, CBI issued a press release stating, "Searches were conducted at the residential premises of officials of JNPT and consulting company, and offices of accused private companies at 5 places in Mumbai and Chennai, which led to recovery of documents relating to the Capital Dredging Project, digital devices, and documents showing investments made by public servants." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The FIR was registered against former JNPT chief manager Sunil Kumar Madabhavi, TCE and its project director Devdutt Bose, BoskalisSmit India LLP, Jan De Nul Dredging India Pvt Ltd, and unidentified individuals. It says the loss was spread over the dredging project's two phases – 2003-14 and 2013-19. To accommodate large cargo ships, in 2003, JNPT appointed TCE to prepare the phase 1 project report for the cost estimates and time duration. TCE was also awarded the work of project management consultant, including preparation of tender documents and supervision of work. The FIR stated, "Shadow bidding arrangements to support the cartel made by BoskalisSmit India LLP and Jan De Nul Dredging India Pvt Ltd were permitted by Madabhavi in connivance with Bose… and other unidentified individuals, thereby enabling the cartel to participate in the bidding process." During the probe, it was found that the pre-dredge survey was manipulated by using the less accurate software 'Qinsy' instead of the globally accepted 'HYPACK' for measuring dredging quantity, the FIR said. CBI claimed that the two phases were planned back-to-back, and their implementation overlapped, though on record, it was mentioned that they would be taken up separately. JNPT had assigned the project report on Phase 2 to TCE in collaboration with E&Y and Howe Project. "Several stringent project qualifications criteria and tailor-made specifications were inserted in the Phase 2 tender documents to eliminate Indian bidders . ..and to the advantage of the international bidders. Such changes were made to allow bidders forming JVs or consortiums to compete for complementary bidding against the Competition Commission of India guidelines," the FIR said.
Time of India
13 hours ago
- Business
- Time of India
CBI books Tata Consulting Engineers, JNPT officials for alleged running of cartel
MUMBAI: The Central Bureau of Investigation ( CBI ) has booked the project manager of Tata Consulting Engineers (TCE), the chief manager of the Jawaharlal Nehru Port Trust ( JNPT ) and unknown officials for allegedly causing a loss of Rs 800 crore to the exchequer by running a cartel and awarding contracts to selected international bidders. According to a first information report (FIR) filed earlier this week, Sunil Kumar Madabhavi, the chief manager (PP&D) of JNPT at the time, in conspiracy with Devdutt Bose, the then project manager of TCE, a Tata Group company, allowed complementary bidding in the tendering process. By doing so, they allowed the formation of the joint venture by the solely eligible bidders - Boskalis Smit India LLP and Jan De Nul Dredging India (also known as BSI-JDN JV). The agency has alleged that the Competition Commission of India guidelines were violated in the process. The FIR adds that a shadow bidding arrangement was put in place to support the cartel formed by Boskalis Smit India and Jan De Nul Dredging India. It said "this was allowed by Madabhavi in connivance with Bose, project manager from M/s TCE and other unknown persons, thereby allowing the said cartel to participate in the bidding process for capital Dredging Phase-ll through their joint venture namely BSI-JDN JV." ET has seen a copy of the FIR. It also said that payments amounting to Rs 348 crore in phase-ll for work already executed in phase-l, without actually performing the work, was paid, thereby causing undue advantage to BSI-JDN JV. The dredging work was carried out in two phases - Capital Dredging Project Phase I and Capital Dredging Project Phase Il. The CBI has mentioned the period of the scam as 2003 to 2019, when the two phases were executed. The FIR said "several stringent Project Qualifications (PQ) criteria and tailor-made specifications were inserted in the tender documents of Phase - ll to eliminate the Indian bidders from the competition and to the advantage of the international bidders".
Yahoo
7 days ago
- General
- Yahoo
Placer County to remove lead from former gun range near Lincoln housing developments
Placer County supervisors have approved a plan to clean up a former law enforcement gun range in Lincoln, located across from the Sun City Lincoln Hills 55+ community. The $5.1 million project will remove lead and other debris and restore the soil to meet residential environmental standards. Roughly $750,000 has already been spent on assessments. The plan includes a $3.7 million budget for contracted labor and work is expected to begin later this summer, once a contract is awarded. The plan is expected to be completed by the fall. The board previously selected the residential cleanup option in 2022, following a presentation by Eric Findley, the county's real estate services manager. That method, which involves off-site storage of contaminated soil, was the most expensive of the proposed approaches but was recommended due to its long-term benefits. 'Cleaning up to residential standards and hauling it off-site is the most conservative (option) in the sense that it would provide the most flexibility for future use of the property,' Findley told the board. 'It would increase the value of the property and I think it would ... lessen the chance of litigation in the future.' The pricing estimates were developed by Sacramento-based Provost & Pritchard Consulting Group, which also prepared the project for contract bidding. The board approved a $400,000 contract extension for the firm as part of Tuesday's action. The county has owned the site since 1968. The gun and skeet ranges, once used to train police officers, have been closed since 1999. In addition to lead, the county's staff report notes the site includes bullet and clay pigeon debris that must be removed to meet residential standards. Supervisors Cindy Gustafson and Shanti Landon commended the Department of Facilities Management's work on the project, which has gone back to at least 2017. Landon, whose district includes Lincoln, commended the staff's efforts: 'It's very important for the Lincoln community that this remediation project move forward to ensure this site is safe for future generations,' said Landon, whose district includes Lincoln. Before Placer County developed the site into a police training range, it was home to a Cold War-era Titan-1 missile base. Built in 1962, the facility included three 160-foot-deep silos and miles of tunnels, which were later flooded and sealed. But the base also left behind trichloroethylene, or TCE, a cancer-causing solvent used to clean missile oxygen systems. The chemical was first discovered in the area's groundwater in 1991, according to previous Bee reporting. A Placer grand jury report last year found that 'nothing substantial' had been done to remove it and warned that the contamination plume had advanced roughly 150 feet toward Sun City Lincoln Hills. While the TCE leaks worried some residents of the Sun City development, data collected in July 2024 showed that monitoring probes near the closest homes show no signs of TCE. The Army Corps of Engineers resumed its feasibility study in 2018 and estimates a $26 million remediation effort could begin in 2027. The city of Lincoln supports an accelerated timeline, citing ongoing housing development nearby, according to previous Bee reporting. According to the county's development activity map, the area around the former range is rapidly developing. To the north is the under-construction, 233-unit Hidden Hills project. South of the site is the approved Waterfront project, which will include 271 rental units and 50,000 square feet of commercial space. Nearby is the proposed Village 1 Specific Plan, which has been in the works since 2013 and envisions more than 5,000 residential units, parks, mixed-use areas, and a golf course. Also on Tuesday, supervisors adopted a 2025-29 housing action plan with goals to increase the county's supply of 'achievable housing,' preserve housing stability and secure long-term funding. The plan sets a target of 1,300 new housing units by mid-2029. According to the county, Placer's median home price is about $665,000, while the median household income is $108,000. 'We incorporated a lot of great feedback from the board into our updated plan to consider potential community impacts and outcomes across Placer's unique regions,' Housing Manager Nikki Streegan said in a statement. 'This plan advances broad priorities like economic development, infrastructure and strategic collaboration with our partners from the state and throughout the region.'
Yahoo
24-05-2025
- Business
- Yahoo
Frontline PLC (FRO) Q1 2025 Earnings Call Highlights: Strong TCE Rates and Cash Generation ...
VLCC TCE Rates: $37,200 per day in Q1 2025; 68% booked at $56,400 per day for Q2. Suezmax TCE Rates: $31,200 per day in Q1 2025; 69% booked at $44,900 per day for Q2. LR2/Aframax TCE Rates: $22,300 per day in Q1 2025; 66% booked at $36,100 per day for Q2. Profit: $33.3 million or $0.15 per share in Q1 2025. Adjusted Profit: $40.4 million or $0.18 per share in Q1 2025. Time Charter Earnings: Decreased from $249 million in the previous quarter to $241 million in Q1 2025. Cash and Liquidity: $805 million in cash and cash equivalents as of March 31, 2025. Fleet Composition: 41 VLCCs, 22 Suezmax tankers, 18 LR2 tankers; average age 6.8 years. Cash Breakeven Rates: $29,700 per day for VLCCs, $24,300 per day for Suezmax, $23,300 per day for LR2s. OpEx Expenses: $8,400 per day for VLCCs, $8,000 per day for Suezmax, $8,200 per day for LR2s; Q1 fleet average $8,300 per day. Cash Generation Potential: $332 million or $1.49 per share, with a 30% increase from current spot market potentially doubling cash generation. Warning! GuruFocus has detected 4 Warning Signs with FRO. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Frontline PLC (NYSE:FRO) achieved strong TCE rates in Q1 2025, with VLCCs at $37,200 per day, Suezmax at $31,200 per day, and LR2/Aframax at $22,300 per day. The company has a solid balance sheet with $805 million in cash and cash equivalents, and no significant debt maturities until 2030. Frontline PLC (NYSE:FRO) operates a modern fleet with an average age of 6.8 years, consisting of 99% ECO vessels, enhancing operational efficiency. The company has substantial cash generation potential, with a projected $332 million or $1.49 per share, which could increase by 100% with a 30% spot market rise. Frontline PLC (NYSE:FRO) benefits from a growing demand for compliant tonnage as sanctions widen, potentially increasing market opportunities. Adjusted profit in Q1 2025 decreased by $4.7 million compared to the previous quarter, primarily due to lower TCE rates. Operating expenses increased, with ship operating expenses at $60.3 million, reflecting higher costs compared to previous quarters. The tanker market faces uncertainties due to geopolitical tensions, including potential impacts from US policy changes and sanctions. Frontline PLC (NYSE:FRO) is trading at a discount to NAV, indicating potential undervaluation despite a positive industry outlook. The company faces challenges in monetizing older vessels due to market dynamics and compliance concerns, limiting asset sales opportunities. Q: Activity in the Atlantic for VLCC fixtures has been quiet. Is this due to OPEC's accelerated ramp, and what might drive more long-haul cargoes out of the Atlantic Basin? A: Lars Barstad, CEO: The quietness in the US Gulf area is puzzling. It could be due to tonnage sitting on oil majors' hands, refinery runs in the US ahead of summer, or increased Canadian exports. However, there is active flow from Brazil and Guyana, and increased interest from India in West African barrels. Q: Operating costs have increased sequentially and year-over-year. What is driving this? A: Inger Klemp, CFO: The previous quarter's lower costs were due to insurance and supplier rebates. The current quarter's $60.3 million is more reflective of ongoing costs. Administrative expenses also increased due to a re-evaluation of synthetic option liability. Q: Frontline is trading at a discount to NAV despite a positive industry outlook. Is a strategic change needed to regain premium valuation? A: Lars Barstad, CEO: The discount is surprising. There has been an outflow of shareholders and high short interest. Investors are cautious and want proof before investing. Frontline remains disciplined, retaining upside potential by not engaging in extensive time charter contracting. Q: With VLCC rates improving, have we seen the full benefit of sanctions, or is there more to come? A: Lars Barstad, CEO: The full impact of sanctions is not yet realized. Incremental barrels are coming from compliant sources, and OPEC is returning barrels to the market. This is positive for the compliant fleet, particularly VLCCs, and we expect a stronger market in the coming months. Q: What was the main driver for refinancing the '24 VLCCs early? A: Inger Klemp, CFO: The primary driver was the margin reduction, with an extension of the duration being an additional benefit. The refinancing reduced the margin from 200 basis points to 170. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
