Better transmission, generation cuts power cost for South on IEX
With the increased integration of the southern power grid with other regional grids, the cost of electricity on the IEX has hit a low, auguring well for industry and power distribution companies. Also, the gap in price between the southern grid — where the rates have been typically higher — and the other regions has narrowed. On the exchange earlier this month, the prices in the southern grid matched those in other grids. For instance, in the first week of July the Average Clearing Price (ACP) on the IEX for the southern region was ?2.17 a kWh against the Market Clearing Price (MCP) of ?2.14 for the other regions. Between January and July 2016, the ACP was ?2.91 against an MCP of ?2.44. The gap was much higher last year. During January to July 2015, the MCP was as low as ?2.72 a kWh. But the ACP was much higher in the southern region at ?3.90 for Andhra Pradesh, Telangana and Karnataka, and ?5.11 for Tamil Nadu and Kerala. Now, even within the South, the price differential is no longer relevant as the region is well integrated and prices are uniform, sources familiar with the development said. According to industry sources, apart from the improved transmission infrastructure, the lifting of constraints on open access by Tamil Nadu and Karnataka has led to increased availability of power. Producers in both States can now sell outside the State. Though the corridor availability is still restricted, it is better than last year. In May 2016, the West and East to South corridors were available for almost 50 per cent of the time for the exchange market; in June, the corridor availability increased to about 85 per cent, sources said. Open access consumers in the southern States can save up to 30 per cent of their power procurement cost on the IEX platform. Even distribution companies can opt for sourcing power from IEX, rather than go in for short-term deals as prices are at such lows, sources said. T. J. Oshie USA Jersey
UDAY scheme: Jharkhand SEB backslides on dues
Jharkhand’s electricity board had to clear most of its dues to Damodar Valley Corporation (DVC) before it got its loans restructured under the UDAY scheme, but has since accumulated fresh dues to the utility, putting a question mark on the scheme’s ability to salvage the debt-ridden entity. DVC has already started regulating supplies to the state electricity board DVC chairman and MD Andrew WK Langstieh said the SEB had, prior to UDAY, owed about R7,000 crore to DVC, a joint venture of the central, West Bengal and Jharkhand governments. In order to sign up for the UDAY scheme, the SEB had paid the utility Rs 4,770 crore in September 2015, but has since piled up fresh dues of Rs 600 crore. Jammu and Kashmir was the only state other than Jharkhand that had to clear dues (Rs 2,140 crore) to central power utilities before climbing aboard the UDAY bandwagon. So far, 10 states, including those with heavily indebted discoms like Uttar Pradesh, Haryana and Rajasthan, have signed the UDAY MoUs, under which the states, helped by a relaxation of the fiscal road map compliance by the Centre, were to issue bonds to clear half of their respective discom’s debt in 2015-16 and an additional 25% in the current fiscal. To help other states — notably Tamil Nadu — that could not join the scheme due to regulatory issues, the Cabinet last month extended the deadline for joining the debt recast scheme to end-March, 2017. The Jharkhand SEB was unbundled into four different companies as part of the UDAY preparedness in September last year. However, Jharkhand Bijli Vitaran Nigam, now the nodal agency to buy power from DVC, has piled up Rs 600 crore dues in 10 months of operation, a DVC official said on condition of anonymity. Although Jharkhand chief secretary Raj Bala Verma is supposed to hold discussions with the DVC CMD on resuming regular supplies, DVC has already taken a stand that power would be supplied only against payments made. Langstieh said that Jharkhand was making part payment of its bill every month but according to a DVC official even that mode of payment has already started hitting the cash flow of the company. Jharkhand accounts for more than 20% of DVC’s total revenue from power sales and if the latter had continued unregulated supplies, the mismatch between the net sales figure and the actual realisation would have grown. DVC has already offered to sell a 74% stake in the 2×600 MW Raghunathpur thermal power project to Neyveli Lignite because of its balance sheet problems. While Langstieh says that the value of the stake would be determined by the Central Electricity Authority factoring in the tariff realised, another top official felt that DVC might have to sell the stake at a loss. The Raghunathpur plant had cost DVC Rs 8,000 crore at a 72:28 debt equity ratio. But with no power purchase agreement and inadequate return on investment, it is becoming a burden for the firm to carry on with the fixed costs. DVC last year approached the Reserve Bank of India for a Rs 30,000-crore debt restructuring since its debt servicing capacity had come under severe pressure with low returns on investment. Out of its 6,300 MW total capacity, 1,500 MW is lying idle. Bobby Hebert Jersey
Airports to be ranked on passenger feedback
Passengers’ rants or raves about services provided at India’s major airports could soon actually make an impact with the airports’ economic regulator putting in place a new system to monitor the ground operations and service standards. The carrot for the airport operators: those with high ratings for services could get to charge higher tariffs as an incentive. The Airports Economic Regulatory Authority (AERA) that came into existence in 2008, has so far been focused on its responsibility of setting airport tariffs, but will now assess their performance on the ground for 16 major airports as well. The regulator will rate airports based on parameters such as cost efficiency, entry time, security clearance, check-in and boarding facility, among other services at airports. A critical component of the rating would be passenger feedback. “As a part of our mandate, we have a major item we have not looked at so far which is setting and monitoring performance standards of airports. We want to make airports attractive and efficient and plan to monitor the service levels of airports,” AERA Chairman S Machendranathan said. Josh Bynes Womens Jersey
PIL filed in Delhi HC against arbitrary airfares
A plea was filed on Sunday in the Delhi High Court for capping airfares across the country so that customers are not fleeced arbitrarily by airlines. The PIL urged the court to direct the authorities to frame “guidelines so as to put a cap on airfares and prevent the private airlines here from charging arbitrarily, irrationally and exorbitantly for air flights”. Advocate Amit Sahni, in his plea, which is likely to be heard next week, stated that he had filed an RTI application seeking information regarding airfares and Ministry of Civil Aviation replied that these are not controlled by the government. Citing recent Jat agitation in Haryana, which reportedly forced some passengers to pay over Rs 90,000 for their journey, the plea said if there would have been a cap, the airlines could not charged such huge amount. “The private airlines companies have fleeced people even in emergent situation and government has stood as a mute spectator regarding the same,” the plea said, adding there is “urgent need to regulate the upper limit of airfares so that the private airlines could not fleece their customers as per their own wish.” Anthony Tolliver Jersey
Air India may lose privilege of being sole carrier of government staff if Cabinet note goes through
Loss-making Air India may soon lose the privilege of being the sole carrier of government employees. The civil aviation ministry is preparing a Cabinet note that will allow them to opt for the cheapest fare, regardless of carrier. Currently, government employees can only use other carriers if there is no Air India option. “The finance ministry, in one of the review meetings, has asked us to abolish this rule mandating Air India for official flights,” said a senior aviation ministry official, seeking anonymity. “We are preparing a Cabinet note, which should reach the Cabinet for approval in 15 days.” Air India, in the midst of a government bailout programme, may not have too much sympathy among some members of the government. Cabinet Minister M Venkaiah Naidu recently vented his ire on Twitter about missing a meeting 10 days ago because his Air India flight was delayed. The current rules mandate all central government employees should fly Air India on official trips. In case a destination is not connected by Air India, the official has to apply for an exemption from the civil aviation ministry. Ken Crawley Womens Jersey
Will Jigajinagi help fulfil the demand for an airport in Vijayapura?
Will the long pending airport project of the district get finally realised with MP Ramesh Jigajinagi joining the Modi Cabinet? This is the question lingering on people’s minds here after the MP of the district got elevated to the position of Minister of State in NDA government recently. Since the airport project comes under Civil Aviation Ministry of the Union government, locals expect that the Minister of the district serving in the Union government will use his authority to get the project implemented. It may be noted that Vijayapura, which is one of the prominent tourism districts of the State for having numerous world-famous monuments, needs an airport to boost its tourism that has still not been tapped fully. Considering this, the government in 2010 had signed a Memorandum of Understanding (MoU) with a private firm to develop the airport here. The government had granted 727 acres of land near Burnapur village for the project that had estimated to cost Rs. 100 crore. Jeff Petry Womens Jersey
Piped natural gas for more citizens
Minister of state for petroleum and natural gas Dharmendra Pradhan on Friday said Pune’s gas distribution company Maharashtra Natural Gas Limited (MNGL) has a very important role to play in the smart city project. Speaking to MNGL officials, Pradhan said the piped natural gas (PNG) must be made available to all households in the city and adjoining areas so that residents can avail the facility, which is safe and convenient. “The MNGL has to work hard to spread the eco-friendly fuel network across the city. Pune is a rich city in its heritage and has got immense potential to promote the eco-friendly fuel and natural gas,” he said. MP Anil Shirole assured his full support to the MNGL and said the PNG project will be implemented in the city in a time-bound manner. MNGL’s managing director A M Tambekar felicitated Pradhan. Among other officials who were present at the event included independent director Rajesh Pande and director (commercial) J Vedagiri. In October last year, Pradhan had launched the consumer connect initiative in the city. In November last year, the urban development ministry had asked all states and municipal corporations to supply PNG and CNG stations in smart cities. Pune has been ranked second in the list of 98 smart cities. Petroleum and natural gas authorities have urged the civic bodies to ensure speedy approvals for laying gas distribution pipelines in smart cities. The MNGL is supplying PNG to areas of Prabhat Road, Bhandarkar Road, Kothrud and some areas around Deenanath Mangeshkar hospital, besides areas like Pimple Gurav, Wakad, and Shahunagar. However, many households in Pimple Saudagar have been deprived of gas connections due to delay in permission granted by the PCMC for laying the network. Joel Iyiegbuniwe Authentic Jersey
Gail India tenders to buy 6 LNG cargoes for 2017 delivery
Gail India has launched a tender to buy six liquefied natural gas (LNG) cargoes for delivery in 2017, according to trade sources. The supply is to be purchased based on a link to Brent crude oil prices, one of the sources said. Price-sensitive Indian importers have taken advantage of relatively low LNG prices to bolster purchases and provide additional supply to gas-starved domestic industries. Vincent Rey Jersey
India’s refineries to go capacity deficit by 2030
With increasing domestic consumption of petroleum products, India would run short of its production by 2030, warned Indian Oil Corporation’s (IOC) director of refineries Sanjiv Singh. The country with a refining capacity of 230 million tons (MT), is presently a net exporter of petroleum products. The government is also seeking to ramp up its refining capacity to 300 MT in 15 years. However, Singh told Economic Times that the planned expansion of refineries may not be adequate to meet the growing demand, both domestically and for exports. He pointed out that the country’s surplus capacity too was not as robust. Over the last two years, India’s net export of petroleum products had fallen continuously to hit 32.3 million tons (MT) in fiscal 2016 from 42.6 MT the previous year. Data shows that fall in petroleum product export coincides with growth in domestic consumption. In 2015-16, consumption of petroleum products increased 11 per cent to 183 MT, while the production grew nominally by 4.5 percent. Singh pointed out that the situation should not worry India as there was always the option of importing. However, he highlighted that the opportunity to invest in production ramp up was more lucrative as the country is slated to achieve a 7.6 percent growth this year, and would continue to put up good performance going ahead. “Nothing is going to drastically change till 2030. Oil and gas consumption is going to grow even till 2040,” he said on the impact of green fuels on oil and gas business. However, disruptive technologies cannot be discounted, he cautioned. The official noted that given India’s strength in refining, it may not be well suited to import refined oil products as much as importing the crude oil itself. “The crude market is very wide but the products are available only with a few companies,” he told ET. IOC, Bharat Petroleum, Hindustan Petroleum and many private refiners like Essar and Reliance Oil are all expanding their production capacity. However, the problem of environmental damage from refining remains, unless clean development mechanisms are invented and implemented. Oil products basically include petrol, diesel, naphtha, ATF and feedstock for petrochemical plants and other industries. In 2014, India was the fifth largest refiner in the world after the U.S., China, Russia and Japan. Matthew Slater Jersey
D Rajkumar New Chief Of Bharat Petroleum; Utpal Bora To Head Oil India
Technocrats D Rajkumar and Utpal Bora were on Monday appointed as Chairman and Managing Director (CMD) of Bharat Petroleum Corporation Ltd (BPCL) and Oil India Ltd, respectively. Mr Rajkumar is, at present, working as Managing Director of Bharat Petro Resources Ltd, a unit of BPCL focused on exploration and production. Mr Bora is Executive Director in Oil and Natural Gas Corporation (ONGC) Limited. They have been appointed to the posts for five-year term, an order issued by the Department of Personnel and Training (DoPT) said. Mr Rajkumar will take over the charge on or after October 1, 2016 after retirement of BPCL’s current chief S Varadarajan in September. BPCL is a state refiner and retailer. Senior IAS officers Anil Kumar Jain and Ravi Kapoor were among the 10 contenders for the top job at Oil India Ltd, the country’s second biggest state-owned oil and gas explorer. Mr Bora was selected on the recommendation of a three-member search-cum-selection Committee, headed by Cabinet Secretary P K Sinha, officials said. Matt Stajan Jersey