Madras HC’s nod for TVS twin-spark technology
 In a major morale-boosting development for TVS Motor Company, the Madras High Court has passed an order giving the go ahead clearance for the company to manufacture and market products with its twin spark plug technology.
The division bench of the Madras High Court comprising Justice S J Mukhopadhaya and Justice F M Ibrahim Kalifulla has allowed both appeals of TVS Motors by its order dated 18 May 2009. The appeals were filed by TVS Motor Company aggrieved by the order of the single judge of the Madras High Court granting an injunction in favour of Bajaj Auto, that restrained TVS Motor Company from manufacturing and selling its TVS Flame motorcycle involving twin spark plug technology.
Bajaj Auto had claimed a registered patent involving the twin spark plug technology and charged that TVS Motor had infringed Bajaj’s patented twin spark plug technology. In its order the court observed that there was a difference between the three valve configuration of TVS Motor Company and the two valve configuration of Bajaj Auto Ltd. That the combustion process of TVS Motor was not exclusively based on the twin plug operation but was based on the three valve configuration patented by AVL GmbH of Austria licensed to TVS Motor Company to use its technology.
The Division Bench held that merely because Bajaj Auto was having a valid patent that by itself would not mean that Bajaj Auto had made out a strong prima facie case of infringement against the TVS Motor Company.
A legal battle has been going on between TVS Motor and Bajaj Auto since September 2007 over alleged patent infringement by the former in its motorbike TVS Flame. Bajaj Auto had accused TVS of copying its patented digital twin spark ignition (DTSi) technology. However, TVS has been saying that the Flame was fitted with a three-valve engine based on Controlled Combustion Variable Timing Intelligent (CCVTi) technology, which is different from the technology used by Bajaj Auto.
As the matter went to the court and the single judge passing an order restraining TVS from making Flame, TVS Motor re-launched TVS Flame with single spark plug ignition in March 2008.
Sri City gets Rs 80 crore investments from Rockworth
 Rockworth Systems Furniture (India), a joint venture between Dubai-based Al Reyami Group and Thailand-based Rockworth Public Company Ltd, has chosen Sri City SEZ, a large private sector multiproduct SEZ located 55 km from Chennai in Andhra Pradesh, to set up its first furniture manufacturing unit in India at an investment of Rs 80 crore.
A memorandum of understanding was recently signed between Ravindra Sannareddy, managing director, Sri City SEZ and Sheikh Rashid Mubarak Saif Al Reyami, chairman, Rockworth Systems Furniture (India) Pvt Ltd.
“We chose Sri City to set up our first manufacturing facility in India, as it is a well-planned business destination that integrates world-class infrastructure with all necessary business and lifestyle amenities. Proximity to Chennai and a well-established connectivity network makes it an ideal location for our business. Rockworth Systems will invest close to Rs 80 crore and will employ over 300 people in the first phase and is expected to double this in the next two years. We expect to commence production from April 2010,” said Sheikh Al Reyami.
“In a short span of less than one-year, we have crossed several milestones in our project. Our initial investments planned in infrastructure are estimated at Rs 1000 crore. As of today, Sri City employs close to 1300 people, with a projected employment of 1.75 lakh, both direct and indirect over a period of eight-years,” said Sannareddy.
Rockworth Systems, office system furniture manufacturer, is the 18th company to have signed up with Sri City since its inauguration in August 2008. Few companies, who have already signed up with Sri City, are expected to go operational in the next six months.
Sri City is coming up on the Andhra Pradesh-Tamil Nadu border over 5000 plus acres. It will comprise a multi-product SEZ as well as a Domestic Tariff Area.
TN power regulator hikes tariff for
bio-mass and co-gen power
Tamil Nadu Electricity Regulatory Commission (TNERC) has increased the tariff for procurement of biomass power and bagasse-based co-generation power in a bid to promote generation of electricity from renewable energy sources and procure power from these sources to tackle the power crisis in the state.
While the tariff for procurement of biomass power has gone up from Rs 3.15 to Rs 4.50 per unit, which is claimed to be the highest in the country, the tariff for procurement of co-generation power has been hiked to Rs 4.38 per unit from Rs 3.15.
In March, TNERC increased the rates for procurement of power through wind energy sources from Rs 2.90 to Rs 3.39 per unit. It has announced tariff revision to promote wind energy, biomass and bagasse-based co-generation of power after an extensive consultation with all the stakeholders over the past nine months.
The increase in the tariff comes on the back of steep fall in capacity utilisation of biomass-based and bagasse-based co-generation power units in Tamil Nadu. Though there are several factors which have led to a fall in capacity utilisation, the main issue appears to be the unattractive tariff.
It has been reported that capacity utilisation of biomass-based power units that ranged 5-70 per cent during 2007-08, declined to 3-48 per cent during 2008-09. Since fuel cost was seen exorbitant and unaffordable for producers, TNERC has fixed the fuel cost at double the present rate of Rs 1000 per MT.
In bagasse based co-generation units, capacity utilization that used to be in the range of 10-74 per cent in 2006-07 and 13-63 per cent in 2007-08 fell to lower levels, ie, 4-48 per cent, during 2008-09 (upto January 2009) due to steep increase in the cost of bagasse.
The regulatory commission has almost doubled the price of fuel at Rs 1000 per tonne from Rs 575 per tonne fixed in the previous order.
TNERC has also introduced two part tariff. It provides for fixed and variable costs. Variable cost takes into account the variations in the cost of bio-fuel. The two-part tariff order would cover both the existing and the prospective power plants.
The installed capacity of biomass-based power units in Tamil Nadu is 147 MW, while the country’s capacity is 683 MW. Tamil Nadu accounts for half of the total installed capacity of 1034 MW of bagasse-based co-generation power in the country.
Labour unrest at MRF factory
Tyre maker MRF’s factories in Tamil Nadu have been witnessing labour unrest and lockouts from time to time. The company has claimed that intra-union rivalry is the major cause for the recent strike at its Arakkonam factory, about 70 km west of Chennai, which makes tyres for two-wheelers.
The company declared an indefinite lock-out at the factory from 17 May, following disruption to operations due to sit-in strike by a section of workers.
MRF has said in a statement that MRF United Workers Union was a rival union that was creating disturbances and obstructing the works of management-recognised MRF Arakkonam Workers Welfare Union.
MRF United Workers Union is upset with the long-term settlement forged between the company management and MRF Arakkonam Workers Welfare Union. It approached the court to injunct the MRF Arakkonam Workers Welfare Union and management from entering into a settlement. The High Court has passed an order to maintain status-quo situation.
MRF United Workers’ Union said that they represent the majority of workers of the factory. However, the management has recognized the MRF Arakkonam Workers’ Welfare Union that has fewer workers as members. MRF United Workers’ Union has been demanding management recognition and wage settlement discussions with them.
The workers at the Pondicherry factory have also gone on similar sit-in strike.
As the strike continued, a few of the two wheeler OEMs raised concerns that their operations could be affected if the strike continued. In the meanwhile, MRF has said it has made efforts to ensure regular supply of tyres to OEMs from its Medak factory in Andhra Pradesh.
In December 2008, MRF announced a lock-out at Arakkonam unit following a labour unrest that cropped up due to an unnatural death of a factory employee.
In 2007-end, labour issues cropped up at the company’s main plant at Tiruvottriyur near Chennai over a dispute on productivity norms between the management and workers union. MRF declared a lockout at the factory following the workers’ strike.
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