India fastest-growing aviation market in the world
The Indian aviation market grew by 27.4% in March making it the fastest-growing aviation market in the world, according to the passenger traffic data released by the International Air Transport Association (IATA). The IATA is an association of 260 airlines comprising 83% of global air traffic. India’s growth rate was over six times more than that of the US, which clocked the second-highest growth rate of 4.1%. “The domestic India market remains the fastest-expanding market, with growth edging up to 27.4% year-on-year, in March. Growth in the Indian domestic market is being propelled by the comparatively strong economic backdrop as well as sizeable increases in services,” the IATA said in a statement. The average flight frequencies within India, it said, are scheduled to increase by 11.5% year-on-year in 2016. Indian domestic airlines carried 23 million passengers in the first three months of 2016 as compared to 18.5 million during the corresponding period last year thereby registering a growth of 24.03%, according to the data released by the Directorate General of Civil Aviation (DGCA). “India’s annual domestic Revenue Passenger Kilometer (RPK) growth rate has now been in double digits for nineteen consecutive months. The combination of such rapid growth in India and slower (even negative) growth in other similarly-sized domestic markets has seen India overtake the others in terms of seasonally adjusted domestic RPKs over the past year or so, most recently Brazil, which it surpassed in March,” the IATA said. Globally, the overall domestic demand rose 3.7% in March this year compared to March 2015, driven primarily by performance in the two largest markets, the US — which accounts for two of every five domestic passengers–and China, the IATA said. However, India accounted for only 1.2% in the over all global domestic traffic. Adrian Wilson Jersey
India LNG Market Projected to grow at a CAGR of More Than 21% During 2016-2025
Research and Markets has announced the addition of the “India LNG Market Forecast & Opportunities, 2025” report to their offering. “India LNG Market Forecast & Opportunities, 2025”. Increasing focus on expansion of gas pipeline infrastructure, rising demand for natural gas from power and industrial sectors coupled with favorable government policies is making LNG a commercially viable fuel for an increasing number of end users industries in India. As a result, LNG demand is forecast to witness robust growth over the next 5-10 years. The total opportunity for RLNG in India is projected to increase from an estimated 52.34 mmscmd in 2016 to 305.10 mmscmd by 2025, registering a CAGR of more than 21% during 2016-2025. Upcoming LNG terminal projects, surging demand for natural gas in India and cost-effectiveness of LNG as compared to other alternative fuels are among the major factors anticipated to positively influence the country’s LNG market scenario over the next ten years. In addition, emergence of SSLNG market is opening up new opportunities for the industry. Other policies like E-bid RLNG are also expected to play a crucial role for supplying imported RLNG to power plants and fertilizer industry over the course of next ten years. Kevin Durant Jersey
CNG capacity stays comfortable, says IGL
Indraprastha Gas Ltd, the city gas distributor in the National Capital Region, said its CNG compression capacity of over 7 million kg per day is more than enough to meet the fuel demand after the Supreme Court’s decision banning diesel taxis in the city. Narendra Kumar, Managing Director of IGL said in a statement, “While the current average daily CNG sale of IGL is over 2.5 million kg per day, the existing refuelling infrastructure of IGL is enough to dispense over 3.5 million kg per day through a comfortable fuelling experience to our customers.” The statement added further that 73 new CNG filling facilities have been set up at retail outlets of oil marketing companies like Indian Oil, BPCL and HPCL since January 2016. “While 52 out of these fuelling facilities are located in Delhi, 21 are in the nearby towns of Greater Noida and Ghaziabad. Another 17 CNG fuelling stations would be set up by the end of the month thereby taking the total number of CNG fuelling facilities of IGL to 414,” the statement said. IGL has also introduced differential pricing by offering a discount of ? 1.5 per kg on the selling price of CNG for filling between 12 a.m. to 5 a.m. in order to incentivise non-peak hour refuelling. The company which provides the fuel over 8,50,000 vehicles in NCR, claims the CNG at current price levels offers over 57 per cent saving towards running cost compared to petrol driven vehicles. As compared to running cost of diesel vehicles, IGL claims CNG offers savings of 28 per cent. Jordy Nelson Authentic Jersey
Why cornering oil assets is important to India
Picking up stakes in Middle-East oil companies will have positive effects on the currency as well as on India’s energy security. A bear market is generally considered as the best time for value picking. If this rule holds true for investing, then it makes even more sense for companies who acquire distress assets in a bad market. Unfortunately, few companies have the foresight or excess cash during business cycle troughs to capitalise on such opportunities. So-called vulture funds or private equity investors generally fill this gap of acquiring deep distress assets. But the game of acquiring or picking up strategic stakes in distress assets is now being played at a much bigger level. Learning from China’s aggressive acquisition of oil assets globally, India is now considering picking up stake in oil rich Middle East countries. In an interview, oil minister Dharmendra Pradhan said that India is in talks with Middle East nations to pick up stakes in oilfields in the region for the first time ever. India, through its public sector enterprises – ONGC, ONGC Videsh and Oil India invests in strategic oil sector assets globally. India already has presence in Russia, Africa and even US Shale but has no stake in the oil and gas rich Persian Gulf. Low oil prices have already starting to have an impact in the Middle East. A recent conference call by Indian companies who have business interests in the Middle East suggests a sharp slowdown in business activity in the region. News reports say that remittances from Indian labour working in the region have come down by nearly $1.5 billion in FY15 to $68.9 billion. Gulf countries’ distress can also be seen in the financial markets where they are withdrawing their savings. Saudi Arabia has in fact announced that they will be selling a part of their stake in their crown jewel Aramco oil company. This is probably the best time to book India’s oil requirement from these oil rich countries. Not only does this ensure a steady supply of oil but also gets a better price for it. This is how it works. Assuming an Indian company, say ONGC (although the same logic is valid for private sector players), picks up a stake in an oil field. If oil prices move up Indian companies will have to import oil at higher prices which will result in outflow of foreign reserves. But as ONGC will have a stake in the oil field in gulf, it will benefit from the price rise and book its income at higher these higher prices, thus bringing in more foreign exchange in the country and acting as an hedge to oil prices. In the process, though refiners will be hit, the country benefits as the loss of one set of companies (especially public sector ones) is to an extent set-off by gains in the other. The impact on currency on account of higher import bill and current account deficit will also be muted. The key is in taking a meaningful stake in these oil ventures rather than smaller ones that Indian oil companies have been doing over the years. Oil companies should be given a free hand in dealing with it as they are the experts in the field. These public sector companies had complained of slow approval from government officials which resulted in China picking up some strategic assets earlier. Cornering oil assets is of strategic importance to a fast growing country like India. Darrius Heyward-Bey Jersey
ADB hopes TAPI gas line project to be completed in next five years
Despite having security concerns for materialising the much-awaited $10 billion TAPI (Turkmenistan-Afghanistan-Pakistan and India) gas pipeline, the Asian Development Bank (ADB) hopes that this flagship project of regional connectivity would now be on the ground and would be completed in the next five years. “All four member countries have established a project company by contributing initial money of $200 million, which will pave the way for the construction of 800-kilometre-long pipeline for 33 billion cubic feet of gas,” ADB’s Director General for Central and West Asia Department Sean M. O’ Sullivan told reporters during a media briefing on the sidelines of the 49th annual meeting of Manila based bank here on Wednesday. The ADB, he said, is also working with Pakistan for providing $150 million energy sector development programme which is expected to go to the board for approval by the end of this calendar year. Another $300 million loan programme for restructuring of state owned enterprises (SOEs) including Railways is expected to be approved next month (June 2016) which will make SOEs commercially viable. The ADB is also considering providing a facility of $50 million to Pakistan’s commercial banks. In another bid to connect the energy rich country with energy deficient countries in this region, the ADB is working on transmission line from Turkmenistan to Afghanistan, which will then be connected with Pakistan under the TAP project for which the ADB will finance $600 million. It will supplement the CASA-1000MW project from which the ADB had pulled out around 2009. Flanked by Hong Wei, Deputy Director General of ADB, Sullivan said that even Afghanistan had paid its equity share for establishing the project company for the TAPI gas pipeline. The major challenge for TAPI project will be ensuring security in the region but it is hoped that it will be overcome, he added. He said that under new arrangement, Pakistan’s resource envelop in terms of its quota for seeking financial assistance from the ADB went up from $1.2 billion per annum to around $2 billion per annum but it would depend upon the country’s ability to show results on pledged commitments. He said that under the initiative of Central Asia Regional Economic Cooperation (CAREC), the consortium of donors made plans for investing $28 billion on infrastructure and energy projects. To a question regarding volatile security environment in Afghanistan and non interest shown by giant oil and gas companies in the TAPI project, the ADB’s DG said that international oil companies might come in and for overcoming security concerns the communities would be involved for protecting the pipelines. The ADB, he said, has been selected as transaction advisor and termed it as major achievement on account of regional connectivity. Turkmenistan, he said, had already kick-started work on this project and now the work will be done to finalise design of the pipeline. He said that Islamic Development Bank (IDB) had committed $800 million. Under the initiative of CAREC, he said that Pakistan had already received $1 billion loan for construction of different road networks. He said now the ADB was planning to get involved into restructuring of Pakistan Railways, hydro and renewable energy to ensure energy security. The ADB provided assistance to Pakistan for Jamshoro coal project, although its working slowly and for bringing improvement in generation, transmission and distribution system of the country. The ADB provided $400 million for providing solar bulbs in the country. Regarding signing of Memorandum of Understanding between ADB and Asian Infrastructure Investment Bank (AIIB) for co-financing road project in central Punjab, he said it would be fourth installment of 386 kilometer road network for which now the AIIB joined as partner. This section of road, he said, will have estimated cost of $273 million including $100 million from AIIB, $100 million ADB, $34 million UK based-DFID and remaining $39 million by govt of Pakistan. Justin Smoak Jersey
Cairn can’t export crude till India attains self sufficiency, says government
The government today told the Delhi High Court that Cairn India cannot be permitted to export excess crude from its Rajasthan oil field, till India attains “self sufficiency”. “The stand of the central government is unequivocal and unambiguous that as a national policy, export of crude oil is not permitted till India attains self sufficiency,” the Centre told a bench of Justice Manmohan. The submission was made by the Ministry of Petroleum and Natural Gas which is opposing Cairn’s request for permitting them to export crude oil. Additional Solicitor General (ASG) Tushar Mehta, who was assisted by central government standing counsel Anurag Ahluwalia, said, “It is admitted position that between the parties that a Production Sharing Contract (PSC) is entered into by and between the parties and that the petitioner is governed by the terms of the said PSC which prohibits exports till self sufficiency .. ASG further said that, “whether to permit exports of crude oil exploited from the fields located within the territory of India (at a time when the country itself is suffering from huge deficit in demand and supply of hydrocarbons and is primarily dependent on imports), essentially falls within the realm of a policy decision, which is to be taken by the government keeping in mind the national interest and large public purpose. “The decision of the government not to permit export of the oil produced by the petitioner is a policy decision taken by the government, which cannot be in anyway termed to be an arbitrary, irrational or a mala fide decision warranting interference by this court,” the Centre submitted. The court asked the government to show it the copy of the policy under which Cairn was denied permission. While listing the matter for further hearing on May 18, it also asked them to inform whether there was any law or any contract under which they can restrict Cairn from selling their crude abroad. The court was hearing the plea of Cairn India, subsidiary of UK-based Vedanta group, seeking directions to the government to permit it to export the excess crude. Justin Coleman Womens Jersey