Directorate General of Hydrocarbons’ Interactive Session for Discovered Small Fields Bid Round 2016 in Calgary
The Directorate General of Hydrocarbons organized an interactive session at Calgary, Alberta on 18th July 2016 for ‘Discovered Small Fields Bid Round 2016’ to facilitate interactions between the Government of India and Industry Leaders, and to promote investment in the energy sector of India. Many distinguished officials from the Ministry of Petroleum and Natural Gas (MoPNG), Government of India (GoI), top business leaders, and various international and national media houses were present at the session. The interactive session was organized at The Westin, Calgary to showcase and invite prospective bidders for the Discovered Small Fields Bid Round 2016, which was launched on 25th May 2016 in New Delhi, India and was followed up by the subsequent shows at Mumbai and Guwahati in India and recently in Houston, Texas. The Government of India has introduced the Discovered Small Fields Bid Round – 2016, under which it is offering 46 Contract Areas consisting of 67 different small fields across 9 sedimentary basins, estimated to hold over 625 Million Barrels of Oil and Oil Equivalent Gas in-place, spread over 1,500 square kilometres in Onland, Shallow water and Deepwater areas, for extraction and exploration of oil and gas. Bids are being invited by the Directorate General of Hydrocarbons (DGH) to develop and monetize these contract areas. Currently, India is the fastest growing large economy in the world, clocking a GDP of 7.6% in FY 2015-16. Along with the growing economy, the demand for energy has also risen dramatically over the past few years, which is majorly met by imports, and is expected to increase even further in the future. As stated by Mr. K D Tripathi, Secretary, Ministry of Petroleum and Natural Gas, the government aims to reduce energy import dependency by 10%. This can be done by tapping on the hydrocarbon resource available and increasing the oil and gas production. Joint Secretary, MoPNG, Mr. Amar Nath, informed that that this is a great opportunity to invest in the E & P sector in India especially considering the new policy regime under which the bid round is being held. Mr. Matthew Machielse, Asst. Deputy Minister, Ministry of Economic Development, Government of Alberta shared message on behalf of Premier, Govt. of Alberta and highlighted that there are significant opportunities for increasing trade between India and Alberta. Mr. Rajib Chander, Counsel General of India in Vancouver highlighted that energy has always been a focus for co-operation between India and Canada and that while, the trade between the two countries has grown over time, there are significant opportunities for furthering the trade relations. The session involved screening a film on Oil and Gas Industry of India, which highlighted the evolution of oil and gas sector and presented key statistics of the sector. Mr. Nilaya Varma, Partner with KPMG in India gave a detailed presentation on Indian economy with a focus on oil and gas sector in India. This was followed up by sharing of experiences by Mr. Stephen Beatty (Partner with KPMG Canada), Mr. Mayank Ashar (Leading oil and gas expert) and Mr. Sastry Karra (Director, Simorgh Energy) on Doing Business in India. Ms. Rachel Calvert from IHS gave a Presentation on Risk Rating of India. She highlighted that India was a very lucrative market in the Oil and Gas space and would continue to have a strong potential with further development. A presentation was given by Mr. Atanu Chakraborty, Director General, DGH to highlight the features of the Discovered Small Field Round along with the details of the contract areas on offer and the bidding timelines. To discuss the Taxation Regime in India, Ms. Neetu Vinayek (Partner, KPMG India) highlighted the specific provisions of the laws relating to income tax, customs duty, cess, royalty and license/lease fees as applicable to activities connected with the extraction or production of petroleum in the upstream sector. Mr. Sengupta from ONGC India informed the participants on the infrastructure and facilities available near the offered fields too. Mr. K.D. Tripathi, as part of his plenary address, informed the most important feature of the bid round that all the fields on offer are already discovered, which mitigates the risks associated in exploration. He highlighted that DGH has set up a facilitation cell to address investor queries. He also informed that he would be available at all times to provide assistance to the investors, especially in cases of difficulties faced by them. In the afternoon, a roundtable conference was conducted with select delegates to discuss and answer key queries on the Discovered Small Field Bid Round 2016. A physical data center, providing access to 2D and 3D seismic data, well logs etc., was launched in the evening by the Secretary, MoPNG. The GoI delegation informed the participants that they look forward to foster harmonious collaborations with the industry to help in taking the E&P reform process forward by facilitating the bidders at every step towards monetization of these discovered small fields. Antoine Roussel Authentic Jersey
Gadkari seeks US investment for Indian roads, highways
Road, Transport and Highways Minister Nitin Gadkari on Tuesday concluded his week-long trip to the US, which he termed successful upon receiving assurances from infrastructure and investment companies to boost Indian roads and highways. During the trip, Gadkari held a series of productive interactions with investment bankers, fund managers and captains of trade and industry in the infrastructure sector at business platforms in Washington, New York, San Francisco and Los Angeles and placed on record convincing statistics of the rapid growth of this sector under the leadership of Prime Minister Narendra Modi. He outlined the government’s policy initiatives and his own vision to strengthen India’s infrastructure sector and offered lucrative investment opportunities in road and highways construction and port-led industrialisation, listing the incentives to the US industry for joint ventures and collaborations on Public Private Partnership (PPP) model. Gadkari also explained about the new highways under construction in the difficult terrains of Jammu and Kashmir, Ladakh, Himalayas, the North-Eastern Region and coastal areas and the financing mechanisms under PPP models, framing of policies for logistics parks and modernization of roads, said a statement. The Minister visited Tesla and proposed joint ventures between the electric car manufacturers and the Indian automobile companies with a view to introducing pollution free road transport in India, especially commercial and public motor vehicles. He invited Tesla to make India their Asia manufacturing hub and offered land near major Indian ports to facilitate export of their vehicles to South and South East Asian countries. Gadkari said he was returning home fully satisfied with his visit which has broken new ground in the bilateral ties between India and the US and given the much needed impetus to cooperation in the field of infrastructure, particularly road transport, highways and shipping sectors. Scott Stevens Womens Jersey
Roadmap for PPP mode infra projects
With infrastructure development at crossroads in the State, a roadmap for sustainable infrastructure development in the Public Private Partnership (PPP) mode has been formulated to overcome challenges in projects developed with private investment. The roadmap has been formulated in the backdrop of the D. Narayana committee report which states that “the lack of clarity in the concept of PPP is a serious concern” and that lack of proper interpretation of PPP was affecting structuring, financing and implementation of the projects. Setting up of a committee has been suggested to formulate an approach paper defining the PPP. A PPP Cell in the Finance Department for faster and efficient decision making is part of the roadmap. The roadmap also suggests enacting of a legislation on infrastructure development, which should be followed with rules, regulations and procurement framework for PPP projects. The PPP procurement should be different from current procurement guidelines. Infra board A ‘Kerala Infrastructure Development Board’ with the Chief Minister as chairman has been suggested to lead infrastructure development initiatives. The board should coordinate with all departments and existing multiple agencies. The vision should outline long-term investment and financing plans, identify possible revenue sources as well as the extent of financing that can be enabled bringing the gaps in financing. The government has been asked to come up with the model documentation. The documents created by the erstwhile Planning Commission can be used as the base, but has to be made flexible to accommodate the ground rules of Kerala and the Infrastructure/PPP Act. PPP Cells in all major departments, capacity building, in-house consultants to do the project appraisals, interaction with stakeholders and other government entities have been suggested. An alternative C. Prathapmohan Nair, Consultant Advisor for ADB and World Bank in South Asia, who had worked out the roadmap, says the availability of quality infrastructure is crucial to attaining sustainable growth of the economy of the State. “PPP is an alternative approach to speed up infrastructure development and it is not a panacea.” The intent is not just finances by private sector but efficiency in developing and managing projects, he added. Archie Manning Authentic Jersey
NHAI to build roads connecting export hubs with ports
The National Highways Authority of India (NHAI) is identifying highway projects connecting export hubs with port cities, its chairman Raghav Chandra said on Tuesday. “We are looking at creating an economic bridge of projects to identify roads connecting export markets with ports or with other important economic destinations,” Mr. Chandra said while speaking at an event organised by PHD Chamber of Commerce and Industry here. “For instance, we may look to connect Moradabad with the mainstream or Agra to Mumbai, Mumbai to Kolkata. We will build road connectivity which brings out greater economic competitiveness of our highways,” he said. The government has already identified industrial corridor Delhi-Mumbai, Amritsar-Kolkata, Chennai-Visakhapatnam and Chennai-Bengaluru to connect the hinterland with the ports. The freight corridor which passes along the corridor will act as a conveyor belt, as per the plan. NHAI will bid out more than 10,000 km of highway projects this year, Mr. Chandra added. In the next three years, 30,000 km of road projects will be commissioned. Mr. Chandra said NHAI was also targeting greenfield expressway projects on Delhi-Jaipur, Lucknow-Kanpur, Hyderabad-Bengaluru and Delhi-Jammu stretches. NHAI is ready to bid out the first phase of the Vadodara-Mumbai Expressway. “It will be a 250-km stretch from Vadodara to Kim. We will be bidding out on the BOT (toll) basis because it turns out that it is a viable project over a period of 20 years and the existing road we will give along with that as a sweetener to the concessionaire,” Mr. Chandra said. C.J. Anderson Womens Jersey
Deadlines for completion of strategic road projects
73 roads are identified as strategic Indo-China border roads (ICBR), out of which 61 roads have been entrusted to Border Roads Organisation (BRO) with a length of 3417 km which were planned to be completed by 2012. Out of which 22 roads of length 707.74 km are completed. The revised completion schedule of 39 ICBRs is as under: 2016 – 5 Roads 2017 – 8 Roads 2018 – 12 Roads 2019 – 8 Roads 2020 – 6 Roads Ministry of Home Affairs is the nodal agency for the fencing along the border regions. The status of fencing works is as under: Indo-Bangladesh border (Phase-I): 857.37 km of fencing in the states of West Bengal, Assam, Meghalaya, Tripura and Mizoram has been completed in 2000. Indo-Bangladesh border (Phase-II): Out of 2468 km of fencing, 1872 km has been completed. The completion schedule is March 2019 for ongoing works. Indo-Myanmar border: Out of the 9.12 km fencing, 2.79 km has been completed. Government has taken following measures to expedite the pace of road projects: States of Sikkim, Arunachal Pradesh, J&K, Himachal Pradesh and Tripura have constituted the Empowered Committee to resolve issues related to land acquisition, forest / wildlife clearance, allotment of quarries etc. Ministry of Environment & Forest (MoEF) has given the General Approval under section 2 of forest (conservation) Act, 1980 for diversion of forest land required for construction / widening of roads entrusted to BRO in the area falling within 100 kilometers aerial distance from the Line of Actual Control (LAC) and for link roads between Border Roads in the area within 100 kilometer aerial distance from the Line of Actual Control (LAC) and National Highways / State Highways / Other roads subject to certain conditions. Outsourcing has been allowed to augment capacity of BRO. Long Term Roll On Work Plan (LTROWP) and Long Term Equipment Plan (LTEP) have been approved. Enhanced financial and administrative powers have been given to the executives of BRO. Jamar Taylor Womens Jersey
Hyderabad sees 100 cases of power theft per month
Rampant cases of power theft have left authorities worried. According to officials of Telangana State Southern Power Distribution Company Limited (TSSPDCL), at least 100 cases have been registered every month in the last year. Officials say this menace is seen more in the southern circle and parts of the central circle. Estimates suggest that energy losses here account for roughly 45% of total energy consumed. Altogether, the stolen power amounts to 900 million units every year. Making matters worse, officials from the discom said a few officials are hand in glove with the thieves. “We have a lab and centre where the meter seals are developed and attached. Every month, we come up with 10,000 such seals. There are some people who remove these seals and sell them to outsiders. Apart from this, there are some people who tamper with the meters as well,” said J Srinivas Reddy, director (operations), TSSPDCL. He also said that the miscreants attach diodes and resistors to their meters, ensuring that they get a lower reading. “For domestic use, there is a prescribed load that is given to these people. But when they attach resistors or diodes to their meters, they use up more energy but the meter does not register the same,” he added. Direct tapping, bypassing the meter and tampering are the most common methods of stealing electricity, for which criminal cases can be booked under section 135 of the Indian Electricity Act. Another problem officials pointed out was that many consumers insist on fixing meters indoors, making it difficult for billing officers to monitor pilferage. Roughly 30% of the city’s population has meters inside homes, which is against rules. Matt Wieters Jersey
Financial Crises in BHEL
On 7th April 2016, Bharat Heavy Electricals Limited (BHEL) reported Net Loss of Rs. 877 Crore for the financial year 2015-16 as per the then tentative/provisional Flash results. Subsequently on 27th May 2016, BHEL reported Net Loss of Rs. 913 Crore after Statutory Audit of the Company for the financial year 2015-16. The performance of BHEL during the year 2015-16 was impacted mainly due to continued subdued business environment, resulting in reduced level of operations and non-lifting of hold in many of the stranded projects of various customers in which the Company is engaged as a contractor/ supplier. Government issues advisories/ suggestions which may be policy related or specific issue related as and when required depending on the nature of the case and exigency. As a result of this, BHEL has pursued initiatives in diversification, eyeing new business opportunities emerging in defence, railways, water, solar and also in the conventional power sector. The Government has also appointed 2 Directors [Government Nominees] on the Board of BHEL who actively contribute in overseeing the Companys strategic direction, reviewing and monitoring corporate performance, ensuring regulatory compliance and Corporate Governance, and safeguarding the interests of the shareholders. Also, 5 Independent Directors having vast experience in the focus areas of BHEL, have been inducted in the Board of the company. Further, the performance of BHEL is reviewed by Department of Heavy Industry (DHI) on a regular basis. DHI also assists the Company in the achievement of growth plan through policy initiatives, suitable inter-ministerial interventions, and taking up specific issues from time to time. This information was given by Minister of State In the Ministry of Heavy Industries and Public Enterprises Shri Babul Supriyo in reply to a written question in the Lok Sabha today. Trae Waynes Authentic Jersey
More competition in power distribution soon
After rolling out the power distribution reform plan, Ujwal Discom Assurance Yojana (UDAY), the NDA government wants to open up the power distribution and transmission sector for competition. The amendments in the Electricity Act, 2003, would have enabling provisions to allow more than one player in power distribution, including private companies. The electricity amendment Bill is set to be introduced for discussion and passing in the winter session, said a senior government source on Tuesday. It was placed in the Lok Sabha in December 2014 and referred to a Standing Committee. The amendments also aim to provide a choice of power discoms to consumers with usage of less than one Mw, separate the content and carriage business, inclusiveness for renewable energy and tariff rationalisation. In order to create a competitive market for retail buyers, open access will allow consumers of less than one Mw to choose their supplier. Power generators, too, will be allowed to sell their surplus outside a state. A senior government source said some of the state governments were opposed to the entry of multiple players. “As a beginning, we will introduce this in Bharatiya Janata Party (BJP)-ruled states,” the source said. The amendments in the Act also propose to segregate the carriage (distribution network) from the content (electricity supply business) in the power sector. The government would introduce multiple supply licensees in the content business based on market principles and continue carriage as a regulated business. To keep the tariff structure on financial principles, the provisions on the same were approved in the new ‘Tariff Policy’ last year. UDAY was launched last year to turn around the discoms — both financially and operationally. The scheme has kicked off in 10 states. Phil Simms Authentic Jersey
Supreme Court’s order on revision of tariff under PPA positive for Gencos: ICRA
ICRA believes that the recent Supreme Court orders upholding statutory powers of state power regulators to review tariffs of power purchase agreements is a positive development for generation entities. This would cover generation companies that are in dispute with buyers over tariff review for events that are uncontrollable. “While these orders are a positive development for the independent power producers, it is assumed that tariff re-determination or compensation-related issues are unlikely to be resolved quickly. Further, orders issued by power regulators – whichever way they may favour – are likely to be contested and Supreme Court has noted in one of the cases that the final orders issued by the regulators shall be subject to scrutiny”, Sabyasachi Majumdar, Senior Vice President, ICRA said. On July 5, 2016, Supreme Court upheld an order issued by Appellate Tribunal for Electricity for re-determination of tariff by Gujarat Electricity Regulatory Commission in case of power purchase agreements signed by IPPs – Tarini Infrastructure (TIL) and Junagadh Power Projects (JPPPL) with the Gujarat Urja Vikas Nigam (GUVNL). This is a positive for these power producers, given that CERC is currently evaluating tariff compensations, post APTEL’s order dated April 7, 2016. The tribunal had directed CERC to assess the extent of the impact of force majeure events on the projects of APL and CGPL and provide them such relief as may be available under the respective power purchase agreements. Cyrus Jones Womens Jersey
Policy Not Enough, Regional Carriers Seek Active Support
The draft policy outline issued for feedback and suggestion on the much-hyped Regional Connectivity Scheme (RCS) by the civil aviation ministry promises lucrative airfares linked to distance travelled. But regional airlines and business aircraft operators want concrete measures in order to make RCS a success. Last week, when a delegation of the Business Aircraft Operators Association (BAOA) met the civil aviation ministry officials, they sought interest subsidy on loans or a cap on interest rates, easier access to funds for small airline firms, ability and flexibility in mortgaging of smaller aircrafts to take loans among others. Then older demands of allowing carriers to have their own ground handling service and lower parking charges at bigger airports were reiterated. The delegation wants the central government to bring down the interest rates for loans to small aircrafts in line with international practice. The draft RCS says the Passenger Service Fee (PSF), Development Fee (DF) and User Development Fee (UDF) will not be imposed on the air tickets. This means the airfare under the scheme will purely be distance based. As proposed, a flight up to 225 kms could be capped at less than Rs 2,000 (Rs 1,770) or under Rs 8 per kilometre. And a flight up to 800 km would cost Rs 4,070 or Rs 5 per kilometre, the draft says. While the slabs for fixed wing aircraft are measured in kilometres, for chopper services it is measured on time. Therefore, for the helicopter service under regional connectivity scheme, the first 30 minutes are proposed to be capped at Rs 2,500. For a chopper service between 31 minutes to 35 minutes, the cap will rise by Rs 400 to touch Rs 2,900. And for a chopper ride of 56-60 minutes, the cap will be Rs 5,000. The draft proposal has sought comments for finalizing these airfares from the stakeholders. C.J. Anderson Authentic Jersey