Power Ministry sets green energy target for state discoms
State discoms will have to mandatorily draw at least 2.75% of their total power consumption from solar plants in the current fiscal, according to the renewable purchase obligation (RPO) norms laid down by the power ministry. States will have to increase the share of solar power to 4.75% in 2017-18 and 6.75% in 2018-19, the guidelines said. While the Ministry of Power has issued guidelines, the final targets will be set by each individual state’s electricity regulatory commission (SERC). The RPO has been divided into energy from solar sources and non-solar. The ministry has set the quota of power to be drawn from non-solar renewable energy sources at 8.75% in 2016-17, 9.50% in 2017-18 and 10.25% in 2018-19. This adds up to a total renewable energy share of 11.50% this year, 14.25% in 2017-18 and 17% in 2018-19. India had earlier announced a goal of achieving 8% intake of solar power by March 2022. The new guidelines amount to a significant increase in the targets set, in keeping with the government’s ambition of having 175,000 MW of renewable energy capacity by 2022, including 100,000 MW of solar energy capacity. Track record of state discoms is not very encouraging though. In the last three years, solar RPOs set by different SERCs varied between 0.25% and 1%, and yet they were rarely fulfilled, with penal action rarely being taken against defaulting discoms. Also, discoms, many of them badly cash-strapped, are hardly in a position to encourage renewable energy growth. Though renewable energy tariffs have been falling of late, thermal power remains more attractive for them. More so because solar and wind power, by their very nature, erratic or infirm with output varying considerably depending upon the sun’s intensity or the wind’s speed. Houston Texans Jersey
ONGC, Cairn India demand halving of cess on crude oil
State-owned ONGC and private sector Cairn India have demanded halving of cess on domestic crude oil production saying their burden has actually gone up after Finance Minister Arun Jaitley’s Budget exercise aimed at reducing the levy. Oil and Natural Gas Corp (ONGC) paid Rs 4,500 per tonne cess on crude oil it produced from almost all its fields including prime Mumbai High, till February 2016. In Budget for 2016-17, Jaitley changed the cess from specific levy to an ad valorem rate of 20 per cent of crude oil price. However, at the current oil prices, ONGC and other oil firms like Cairn are paying more than Rs 4,500 per tonne cess. Sources privy to the development said the two firms have made representation to the government saying the Rs 4,500 per tonne equals to 20 per cent ad valorem duty when oil price crosses USD 44 per barrel. And with oil prices ruling higher, the net impact of an exercise which was aimed at giving relief to domestic oil producers, is that they have to pay more now, they said. Historically, the Oil Industry Development (OID) cess was first levied in 1970s at the rate of Rs 60 per tonne. Over the next decades it was hiked few times. It was Rs 900 per tonne, when India opened up its economy in 1991 and was doubled to Rs 1,800 in 2002. In 2006, it was hiked to Rs 2,500 per ton when international oil price was USD 60 per barrel. It was further hiked to Rs 4,500 per ton in 2012 when oil pries were over USD 100 per barrel. Sources said the levy translated into no more than 10 per cent of the oil prices even when oil prices were at their peak. But when international oil prices slumped to decade low, putting question mark over fresh investments in exploration, Jaitley proposed to move to ad valorem rate of 20 per cent. The move was to give relief to upstream firms but has turned out to be reverse, they said. ONGC and other upstream players have sought reduction in cess to 8 to 10 per cent as the purpose of Budget exercise to rationalise the cess has been defeated even at current moderate crude prices. In a low crude oil price regime, cess imposes a significant economic burden on producers, they said. In addition to cess, other statutory levies like royalty (10-20 per cent), VAT (5 per cent) and Octroi (4.5 per cent) are also payable on production/sale of crude oil. At prevailing crude oil prices, with the revised rate of 20 per cent fro cess, ONGC would end up paying almost half of crude prices towards statutory levies, source said. Moreover, since both royalty and OID cess are production levies and not pass through to buyers, it adds up in cost of production of crude oil. Dennis Rasmussen Authentic Jersey
Private LPG bottlers may shine as govt plans to add 10 crore consumers
The government’s ambitious plan to enroll 10 crore new cooking gas consumers in three years is set to throw open big opportunities for private liquefied petroleum gas (LPG) bottlers. The oil ministry recently asked state oil firms to prepare a model for participation of private players in setting up cooking gas bottling plants as the public sector’s planned bottling expansion may not be enough to meet the entire projected demand in the coming years, an official said. If the idea takes off, private bottlers, which have just a minor presence now, could help meet a large part of the new refill demand from state LPG distributors such as Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum . Fixing logistics is the biggest challenge in the government’s plan to enhance LPG consumer base by 60% in three years. This means appointment of thousands of LPG distributors across the country, especially in the interiors where the new consumers are likely to mostly come from, and setting up scores of bottling plants to churn out refills in time for new consumers. The state oil firms currently have 188 LPG bottling plants with a bottling capacity of around 15.2 million metric tonne per annum. State firms sold nearly 17.2 million tonne in 2015-16, mainly helped by more than 100% capacity utilization at several plants and some help from private players. But with the projected demand of 20.7 million tonne in 2016-17 and 24 million tonne in 2018-19, as per industry executives, the state firms would need rapid expansion of their bottling facility. The state firms plan to erect 14 new bottling plants by March 2019, adding 1 million tonne annual capacity, state oil companies’ executives said, adding that another nearly 3 million tonne capacity will be enhanced by adding carousals and shifts at existing plants. This would still leave a projected demand-supply gap, which is what the government wants the private players to fill. In some locations today, state firms source LPG refills from a handful of private bottling plants currently operating. Some of the private players run bottling plants and distribute non-subsidized LPG cylinders under what is called parallel marketing. Reliance Industries has recently sought the government permission to distribute subsidized cylinders to households as subsidy is now transferred directly to cooking gas consumers’ respective bank accounts. Once a model for private participation is prepared, it would pave way for private bottlers who would have a reliable clientele in state oil firms. Mason Foster Authentic Jersey
Air India to recruit 500 pilots, 1,500 cabin crew in next 2-3 years
Air India may recruit about 500 pilots and over 1,500 cabin crew in next two to three years to meet the requirement as the fleet size is expected to increase considerably, a senior official has said. “We are planning to have 700 more pilots in the next two to three years keeping in view the fleet expansion. From last August till now, we have already recruited 250 pilots. So about 500 more pilots we are going to recruit. Advertisement for 400 pilots has already been floated,” AI’s General Manager (Operations) N Sivaramakirshnan said. Last year, Air India had sought to recruit 200 trainee pilots (senior trainee pilot license holders who come with A320 endorsement). However, it could select only 78. Now all those pilots are flying on various routes, he said. Nearly 150 pilots are expected to complete their training by December this year. According to him, the present strength of pilots is 858 and the beleaguered airlines lost about 100 pilots during the last two years. “We have plans to have cabin crew of 3,000 personnel. Besides the existing number, we are planning to take 1,500 more in the next two to three years,” he said. The official said Air India envisaged fleet expansion of another 100 aircraft in the next four years’ time. On training facilities for pilots, the official said currently they have three simulators in Hyderabad and four in Mumbai. The simulators in Hyderabad belong to A320 while the four in Mumbai belong to Boeing family. “We are planning to order one more simulator for training on ATR aircraft in Hyderabad. RFI (Request for Information) has already been floated. By January next year we hope that it would be operational,” he said, adding that the cost of the simulator would be about Rs 65 crore and an additional Rs 6 crore is needed for construction of building and other facilities for the ATR simulator. Though Air India does not have any ATRs in its fleet, services will be provided to its wholly-owned subsidiary ‘Alliance Air’. Malcolm Smith Jersey
AERA exempts small aircrafts from landing fee, will boost regional connectivity
The Airports Economic Regulatory Authority (AERA) has corrected the anomaly in its earlier tariff orders and has exempted aircraft with 80 seats or less from being charged a landing fee, a move that’s going to give a fillip to the regional connectivity plan. According to an earlier tariff order, which is still in force, AERA had allowed airport operators of Delhi and Mumbai to charge landing fee to aircraft with seating capacity of 80 or less. Norms exempt smaller aircraft from landing charges at all airports and no other operator charges them. The order will help boost the regional connectivity plan that pegs on making operations by smaller aircraft cost effective. The order is likely to benefit airlines that operate 70-seater aircraft and includes SpiceJetBSE 5.32 %, Air India and Jet AirwaysBSE 2.63 %. Airlines such as Air India and SpiceJet had made several representation to AERA on the issue. “In the new tariff order for Delhi, we have ordered that these smaller aircraft will be exempted from paying landing charges. We have also informed Mumbai airport about the same,” said a top AERA official, who did not wish to be named. The official said the matter would have been addressed in the first tariff period itself if proper representation would have been made by these airlines. “We received a lot of representations from airlines later and the exemption was put in place,” said the official. AERA’s order will not be implemented immediately because tariff order for Delhi airport is in the courts. Delhi International Airport Ltd (DIAL) in an email response to a query said the charge is on the basis of directions given by AERA under the AERA Act 2008. “Exemption from landing charges for aircraft with maximum 80 seats capacity was given by Airports Authority of India …dated February 11, 2004, which was applicable to only AAI airports at that point of time. The AERA Act 2008, came into force on January 1, 2009, according to which tariff for major airports has to be determined by AERA,” the airport company said in an email response. Airlines, however, complain that the exemption helps in running viable operations with smaller aircraft in the country and should not have been removed. “Since their aircraft are used for shorthaul flights, the cost of operations are very high. It is also becoming increasingly difficult to continue operations with such high landing charges,” said an Air India official, who did not want to be identified. He said the airline already had to pay a lot of money as landing charges in the past. “The government plans to provide regional connectivity but at the same time smaller aircraft are being charged landing fee. How can it implement its plan when such charges are only going to make operations by smaller aircraft unviable?” asked the official. Justin Braun Womens Jersey
India more than capable of achieving 100 Smart City goal: Hany Fam
India is more than capable of achieving its 100 Smart City goal but needs a “collaborative” and focussed approach to complete the ambitious plan, a top executive of a leading global Financial services company has said. “With its ambitious plan, it is more crucial than ever for India to stay realistic and focused. (For) Smart city planning and development, India needs a collaborative approach of shared technology, expertise, learning and governance. That is what India needs to keep focused on to meet their 100 Smart City goal,” said Hany Fam, executive vice president, Enterprise Partnerships, Mastercard. He noted that India was working towards leveraging the smart city experience and technology available across the globe to drive the transformation it needs. Fam, however, cautioned that it was also important not to overlook the current problems plaguing society while they ambitiously work on developing India’s future. “In order to unlock cities’ full potential, they (India) need to remain focused on simultaneously developing basic services and infrastructure,” Fam said. India needs to keep its smart city vision in mind while it addresses issues such as sanitation and transport, in order to achieve its 100 Smart City goal. “It needs time, patience and work, but with a solid plan, governance and focus, India is more than capable of achieving it,” he stressed. The major concern for India is tackling the implications of urbanisation, with people moving from countryside to cities in unprecedented numbers, Fam said. “This is a trend that has global impact and is not specific to developing economies. So now, more than ever, there is a need to come up with technology that can be applied to the challenges cities face in order to make cities smarter, enabling business growth and quality of life,” he advised. A collaborative approach is needed with regards to shared technology, expertise and learning in order to recognise the potential in future cities and deliver truly impactful transformation, Fam said. “The Indian government has ambitious plans and recently announced 20 priority cities that will be the focus for the first phase of its smart city investment,” he said. “By taking into account the experiences citizens have with the city they live in, and applying technology to transform these interactions, we (Mastercard) can help to develop cities that are dynamic, liveable and sustainable,” he said. Mastercard is already working with 50 cities from all over the globe. In September last year, the company launched the Urbanomics Mobility Project, a new data analysis platform to fuel smarter, more inclusive cities. Jonathan Jones Jersey
Greka Drilling bolstered by contract in India
Greka Drilling Ltd (LON:GDL) expects to drill as many wells in India as China this year as activity slowed in the first half. The unconventional oil and gas drilling specialist saw the number of metres drilled reduce by 52% as oil prices struggled, with 12,458m drilled compared to 26,367m a year ago. India provided the bulk of this with seven wells drilled as part of a contract with Indian giant Essar. Greka hopes to complete 30 wells over the remainder of 2016 by two rigs as part of the Essar contract. Talks are also at an advanced stage with other oil and gas companies for work in the central part of India said chairman and chief executive Randeep Grewal. Previously, most of Greka’s contracts had been in China for former parent Green Dragon Gas, but only two wells were drilled in the first half though Green Dragon has indicated an eight well programme will start in the autumn. Other drilling expected to start this year in China for other customers includes six wells in November 2016 and six directional wells for tight gas. Grewal added: “We had previously advised the market that we expected this year to be challenging while the oil & gas operators realign their portfolios to the new oil price environment. “During this period we continued to take steps to reduce costs, improve our drilling efficiency and diversify our services and customer base. “In India we won a new contract from Essar Oil to provide drilling for vertical and directional wells on a day-rate basis. “In China it is anticipated that a number of larger E&P companies, including Green Dragon Gas, will start their programmes for 2016 in H2.” Buster Posey Womens Jersey
GAIL seeks to defer Gazprom LNG contract
GAIL India Ltd is seeking to defer a 20-year contract to buy liquefied natural gas (LNG) from Gazprom PJSC until the Russian company’s Shtokman project begins production, officials at the South Asian country’s biggest gas transporter said. New Delhi-based GAIL signed a contract in 2012 to buy 2.5 million tons a year of LNG from Gazprom starting in 2018 and 2019. The Russian exporter was to supply LNG from the Shtokman project under the contract, according to GAIL’s website. Now that the Arctic project is on hold, Gazprom has offered to supply LNG from other sources, said the GAIL officials, who asked not to be identified citing company policy. The Indian company is insisting on supplies from Shtokman and has said it will consider lifting LNG from other sources at a renegotiated price that is closer to spot-market rates, the officials said. Gazprom didn’t immediately comment. GAIL is struggling to find buyers for its gas amid an abundance of cheap alternative power generation supplies, including coal. The price of spot LNG to Asia during the past year has fallen 28% amid a global glut. Reuters earlier reported GAIL was seeking to delay the gas purchase deal with Gazprom. Rocky Bleier Jersey
India, US discover large deposits of natural gas in Bay of Bengal
Natural gas hydrate deposits were found in the Krishna-Godavari Basin in the Bay of Bengal by a joint expedition team, including the United States Geological Survey (USGS), the Indian government and Japanese scientists, said the USGS on Tuesday. The discovery has the potential to help India, which currently imports a major chunk of its fuel, in fulfilling its energy needs. This was the second such expedition undertaken by the USGS and the government of India. The gas hydrates found by the Indian National Gas Hydrate Program Expedition 02 are producible unlike the discovery during the first expedition. For natural gas to be “producible with existing technologies,” it has to occur in sand reservoirs, the US government agency said. “Advances like the Bay of Bengal discovery will help unlock the global energy resource potential of gas hydrates as well help define the technology needed to safely produce them,” said Walter Guidroz, USGS Energy Resources Program coordinator. The gas hydrate deposits, located in the Krishna-Godavari Basin, were found within coarse-grained sand-rich depositional systems. The discovery can help India diminish its dependence on coal and petroleum, eventually affecting the India’s carbon footprint. The team was led by Oil and Natural Gas Corporation on behalf of the Ministry of Petroleum and Natural Gas, in cooperation with the USGS, the Japanese Drilling Company and the Japan Agency for Marine-Earth Science and Technology. The team will now test if the production of the naturally occurring fuel is “practical and economic.” “The results from this expedition mark a critical step forward to understanding the energy resource potential of gas hydrates,” said USGS Senior Scientist Tim Collett, who participated in the expedition. “The discovery of what we believe to be several of the largest and most concentrated gas hydrate accumulations yet found in the world will yield the geologic and engineering data needed to better understand the geologic controls on the occurrence of gas hydrate in nature and to assess the technologies needed to safely produce gas hydrates.” Jack Lambert Womens Jersey
Not liable to repay Rs 6,000 crore debt due to breach of terms: Kingfisher Airlines
The Kingfisher Airlines Limited, a holding company of Vijay Mallya, said it is not liable to repay over Rs 6,000 crore debt to the consortium of banks as the lenders have breached terms and conditions of Master Debt Restructuring Agreement between both parties, which caused needless damages to the firm’s business. Resuming the hearing on the Original Application filed by bankers, seeking recovery of over Rs 6,000 crore from Mallya and his companies, KFA Counsel pleaded that the Debt Recovery Tribunal should reject the plea as the lenders have breached MDRA terms and conditions. Making submissions before DRT Presiding Officer C R Benakanahalli, KFA Counsel submitted that since section 54 of MDRA was breached by lenders, the company is not liable to pay the loans for damages caused by them. According to MDRA terms and conditions, KFA was to get the working capital fund from the lenders to continue their airline business, which the lenders violated and eventually the company faced further financial problems. “The lenders breached the agreement by not providing working capital fund to KFA, and due to which the company faced financial difficulties. Rafael Bush Womens Jersey