Vistara doubles market share, Jet sees steep fall
Vistara has doubled its market share to 2.8 per cent in June over the corresponding month last year. Jet Airways saw the sharpest fall among all airlines during this period. Domestic air traffic rose 20.81 per cent in June on the back of low fares and peak season demand. Carriers flew 7.9 million passengers against 6.6 million passengers in June 2015. According to the Directorate General of Civil Aviation (DGCA) data, domestic airlines flew 47.5 million passengers between January and June this year, registering a year-on-year (y-o-y) growth of 22.52 per cent. Vistara’s market share grew from 1.3 per cent in June 2015 to 2.8 per cent as it inducted aircraft and expanded its network. The market share of Jet Airways and JetLite (combined) slipped two percentage points to 19.1 per cent as it did not add aircraft and most of its capacity enhancement was through better aircraft utilisation. Daniel Sprong Womens Jersey
Aviation Minister A Raju hopes new policy would make flying ‘easy’
The government on Thursday hoped that the new civil aviation policy will ensure better viability gap funding which will result in improved connectivity of smaller airports by airlines operators and benefit the passengers. Responding to supplementaries in the Lok Sabha during Question Hour, Civil Aviation Minister A Gajapathi Raju said the funding was to be provided by the Centre as well as the state governments on a 80:20 ratio and 90:10 ratio for Northeastern states. He said revenue from passengers as well as viability fund will help the airline operators. “I hope that the scheme succeeds,” he said. It was pointed out to the ministers that certain airlines in the recent past have stopped services to some smaller airports citing lack of revenue. “The National Civil Aviation Policy, 2016 envisages to take flying to the masses by making it affordable and convenient. To promote this objective, the policy provides for regional connectivity scheme by way of upgradation/development of no-frills airports and viability gap funding to the airlines operating to these airports based on demands,” Raju said in his written reply. Kareem Hunt Authentic Jersey
Caution for govt’s regional connectivity scheme; fund cruch halts Air Pegasus’ ops for 2nd day
In October 2012, Kingfisher Airlines stopped operations because its engineers refused to certify aircraft fit for flying. This was a culmination of a long list of woes that the airline was facing. What happened over the next few months is well documented. Eventually, the airline’s flying permit expired and it never flew again. In December 2014, SpiceJet had to cease operations for a day because of unpaid dues to oil companies but then, with gradual help from the government, it got back on its feet under a new promoter who presented a comprehensive turnaround plan. The return was in a smaller avatar but operations have continued uninterrupted since. Cut to 2016, and another airline has been unable to conduct its operations for two days running. Only this time, it is a regional carrier called Air Pegasus which was operating just three aircraft, connecting Bengaluru to smaller cities across South India. The suspension of operations of Air Pegasus is a cautionary tale, specially since the Centre has been emphasising enhanced regional connectivity through a draft scheme which caps fares on regional routes in return for some viability gap funding to airlines. The scheme is not yet finalised but essentially encourages airlines with smaller aircraft to launch flights to India’s hinterland while getting some help from the Central and state governments in the form of VGF. The severe fund crunch which crippled the operations of Air Pegasus in the last two days should serve as warning against pitfalls of this ambitious scheme. A source confirmed that operations of Air Pegasus remain suspended today as well, as the promoters continue to hold negotiations for getting back aircraft and infusing some urgently needed funds into the airline. This person confirmed that the “cash burn” at the airline is Rs 5 crore a month and that there is an immediate need of up to Rs 100 crore to fund operations. What could not be ascertained is whether the three ATR aircraft which Air Pegasus was operating till day before yesterday have been possessed by lessors or not. Steve McNair Womens Jersey
Power crisis hits state as 2 plants suspend opreations
With the Kanti Bijli Utpadan Nigam Limited (unit-1) in Muzaffarpur and NTPC’s Kahalgaon super thermal power plant (unit-5) in Bhagalpur suspending operations due to technical reasons, major parts of the state have been reeling under acute power crisis. Bihar State Power Holding Company Limited (BSPHCL) spokesman H R Pandey on Wednesday said, “The boiler tube leakage of unit 1 of KBUNL since July 25 and the 25-day annual maintenance of unit 5 of the Kahalgaon power plant since July 5 have led to power shortage.” Of the total 3092MW power to be allocated to Bihar from the Centre, the state has been receiving a meagre 2617MW of power. According to sources,Patna normally requires nearly 500MW of power in peak hours. Since some parts of the state are flooded, power supply in those areas have been snapped as a precautionary measure. Marcus Morris Authentic Jersey
In 300-km range of any power plant: Fly ash mandatory for constructing new buildings
The state government has made it mandatory for all new buildings to be constructed using material containing fly ash, aiming to dispose of the entire quantity produced across Maharashtra without causing environment pollution and health hazards. Fly ash or coal dust is the ash produced in small dark flecks due to the burning of powdered coal during electricity generation and is very harmful to health and environment. It can, however, be used by the construction industry in making concrete and bricks. A senior official with the state public works department said, “We have made it compulsory for all new construction in the vicinity of 300 kilometres of any power plant in the state to use building construction material having fly ash. Considering Maharashtra’s area and the location of power plants, this will cover the entire state.” He added that for cities with a population of over one crore, the municipal corporations will amend the development control regulation to make the use of fly ash compulsory in building construction. Earlier, as per the Centre’s norms, it was compulsory for all construction projects in the vicinity of 100 kilometres of power plants to use material made out of fly ash. However, despite this, a large quantity of fly ash still remains unused prompting the government to come up with stricter regulation. Maharashtra currently produces three million tonne of fly ash every year, of which only about 60 per cent is used, while the rest is dumped and becomes a major source of pollution for areas in the vicinity, the official said. “The new decision will enable Maharashtra to become completely free of fly ash,” he added. Fly ash can typically make about 15-20 per cent of the concrete mix and is said to enhance the structural stability. With the cost of transporting fly ash from the thermal power station to the project site also being a deterrent for its use in the construction industry, the state government has now made it mandatory for the thermal power plant to bear all transportation costs within a distance of 100 kilometres. Beyond that, the cost is expected to be equally shared between the power plant and the user of fly ash. “The idea behind this is to reduce the cost of material produced from fly ash so that it is beneficial for the ultimate consumer,” a PWD engineer said. Besides private projects, the state also plans to use material containing fly ash for the construction of all public buildings, cement roads, bridges and other infrastructure under various government schemes. Seth Roberts Jersey
Piyush Goyal inducts Urban Vidyut Abhiyantas to monitor Integrated Power Scheme
Union Power Minister Piyush Goyal on Thursday inducted Urban Vidyut Abhiyantas (UVAs) to monitor the implementation of the Integrated Power Development Scheme (IPDS). Mission mode The Minister said the UVAs will take the work on a mission mode, similar to the Grameen Vidyut Abhiyantas deputed for the Deen Dayal Upadhyay Gram Jyoti Yojana. Goyal further said they will upload their reports on the implementation of the scheme on the URJA mobile application of the Ministry of Power in an effort to increase transparency. Some of the UVAs will be inducted in the State power distribution companies. These UVAs have an experience of 3-15 years in project management/distribution franchisee/infrastructure sector. The IPDS is part of the Ministry of Power’s efforts to ensure 24×7 electricity availability to all by 2022 and has a total outlay of ? 65,424 crore. Meanwhile, the Ministry of Power also announced on Thursday that the National Smart Grid Mission, along with USAID, has launched the first in a series of training programmes to develop skills of utility personnel to develop a smart grid infrastructure. Quality power Vishal Kapoor, Director-Distribution, Ministry of Power, said: “India expects to provide 24×7 quality power to all its people. The power generated will comprise a large share of renewable energy. “Managing renewable and conventional energy calls for a grid that is smart and capable of providing electricity to the remote corners of the country.” Michael Palardy Jersey
Madhya Pradesh, Tamil Nadu among 4 states to join UDAY soon
Four states, including Madhya Pradesh, Telangana and Tamil Nadu, may soon join the Centre’s UDAY scheme meant for revival of debt-stressed power distribution companies. “Power Ministry talks with Madhya Pradesh, Telangana, Tamil Nadu and Puducherry on UDAY scheme are at advance stages. These states are likely to join the scheme very soon,” a source said. Madhya Pradesh can formally ink the agreement in a few weeks, the source said. Madhya Pradesh discoms have an accumulated debt of Rs. 35,000 crore. The state is estimated to get benefit to the extent of Rs. 11,500 crore during next three years of the turnaround. Following the reforms, it could go up to Rs. 14,500 crore annually. In the case of Tamil Nadu, the source said the total debt is Rs. 67,000 crore, including around Rs. 46,000 crore in the distribution segment. It is estimated that during three years of the turnaround, the state will get cumulative benefit of Rs. 18,600 crore. After three years, the annual benefits are estimated at Rs. 22,420 crore. Power Minister Piyush Goyal has recently met Tamil Nadu Chief Minister J Jayalalithaa in an effort to get the state on board on UDAY. Similarly, Telangana discoms’ debt stands at around Rs. 6,700 crore. For the three years of reforms, the cumulative benefit is estimated at Rs. 6,000 crore, following which the state will see it go up to Rs. 6,100 crore annually. Puducherry has a debt load of Rs. 423 crore and will get benefits of Rs. 440 crore annually after implementation of UDAY scheme in three years. Earlier this week on Tuesday, Manipur became the 14th state to join the UDAY scheme, for which the gains translate into around Rs. 263 crore. It is also the first North Eastern state to opt for UDAY for improving efficiency of its discoms. The UDAY scheme was launched by the Centre in November last year to revive debt-laden power distribution companies. Bryan Anger Womens Jersey
No final decision on scrapping SPVs for four UMPPs: Govt
No final decision has been taken to scrap special purpose vehicles set up for four ultra mega power projects in Maharashtra, Odisha, Karnataka and Chhattisgarh. “No final decision has been taken to wind up the four special purpose vehicles (SPVs),” Power Minister Piyush Goyal said in a reply to the Lok Sabha today. Activities in the ultra mega power projects (UMPPs) — Maharashtra, Odisha (second additional UMPP), Karnataka and Surguja in Chhattisgarh — are stuck due to various reasons, including agitation by local people and non-identification of a suitable site. Goyal added that around Rs 96.82 crore has been spent by SPVs set up for these UMPPs. According to the minister, the Chhattisgarh government has said it in not keen on setting up of 4,000-mw UMPP in the state. Four UMPPs, namely Sasan in Madhya Pradesh, Mundra in Gujarat, Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand, have already been transferred to the developers, he said. “Out of the four awarded UMPPs, two namely Mundra and Sasan are in operation,” the minister said. The minister said 6×660 mw Sasan UMPP in Madhya Pradesh, which was awarded and transferred to Reliance Power in 2007, is fully commissioned. The 5×800 mw Mundra UMPP in Gujarat, which was awarded and transferred to Tata Power in 2007, also stands fully commissioned, he added.
Drop in the ocean: India’s strategic oil reserves unlikely to stir market
India’s initial plan to build-up its strategic petroleum reserves (SPR) is not shaping out to be the dramatic event that some in the market had hoped could help reignite global oil demand. While New Delhi has not shown its full hand in revealing its intentions, the first reports that SPRs might provide 90 days of net import coverage had stoked industry hopes of an important new pillar of oil demand. Indications now, however, are for much far less than this: shipping brokers say it’s possible the entire initial SPR build-up in the world’s third-biggest oil consumer could be handled by just a handful of Very Large Crude Carrier (VLCC) tankers. Indeed, India’s initial SPR plan pales in comparison to a programme that is ten-fold bigger in China and is a further sign that Asia’s demand outlook may not be as strong as expected. “I don’t see the Indian SPR having much movement on crude prices, mainly being that there is so much crude available,” said Matt Stanley of brokerage Freight Investor Services (FIS) in Dubai. India initially plans to build up oil reserves of 5 million tons (almost 40 million barrels) at three locations – Visakhapatnam, Padur and Mangalore – equivalent to almost 10 days of its average daily imports of 4 million bpd. About 1 million tons of crude has been filled at the Visakhapatnam site, according to Indian Strategic Petroleum Reserves Limited, a special purpose company managing construction of the reserve facilities. Construction and commissioning at the other two sites is in the process of being completed. Building up India’s initial crude storage requirements equates to 220,000 barrels a day (bpd) of tanker demand, according to a report by Braemar ACM Shipbroking. This amount “could theoretically be covered by two or three VLCCs if all came from the Middle East,” said Lars Spangberg, a tanker broker at Switzerland’s Ifchor Tankers. There are also doubts about whether India’s SPR purchases will be met by existing supplies. Instead, they might come from new production, meaning that they would not tighten the global oil market. “The new storage facilities could stimulate an increase in crude oil production from countries like Iran which are ready to add new oil to an already over supplied market,” said Luigi Bruzzone of shipping brokerage Banchero Costa (Bancosta). DWARFED BY CHINA’S PROGRAMME With the global oil market suffering from two years of oversupply, India has been touted as having the potential to pick up any slack from China and help rebalance the market. Even though India’s oil demand growth is strong, its SPR programme is dwarfed by an estimated 400 million barrels of crude China has imported over the past few years to build its own SPRs, which are equivalent to some 60 days of its 7.4 million bpd imports. It is also tiny when compared to the United States, where reserves stand at almost 400 days of its daily imports of over 8 million bpd. Shipping industry hopes that India’s SPR programme could lift tanker charter rates are also set to be disappointed. “Unfortunately, India is too close to the Middle East for this to make a big impression on the tanker market,” Spangberg said, although he said that some of the crude could be chartered from West Africa. Both India’s and China’s SPRs remain smaller than those of International Energy Agency (IEA) members, where import-dependent countries are required to hold reserves equivalent to at least 90 days of net import demand. In the longer term, however, the impact may be bigger. Both of Asia’s biggest oil importers want to mirror the IEA policy to have 90 days worth of import requirements in reserves. Patrick Wiercioch Womens Jersey
Shell net profit tumbles on low oil prices
Royal Dutch Shell’s net profit collapsed in the second quarter on low oil prices, weak refining margins and production outages, the British energy giant said Thursday. Net profits sank 71 percent to $1.175 billion in the three months to June, compared with $3.986 billion in the same part of 2015, Shell announced in a results statement. Profit on a current cost-of-supplies (CCS) basis — which strips out changes to the value of its oil and gas inventories — slid 72 percent to $1.045 billion in the reporting period. That was almost half of market expectations for CCS profit of $2.16 billion, according to Bloomberg News. A 25-percent rebound in Brent oil prices last quarter provided some relief, but the market hit three-month lows on Thursday as rising US inventories sparked resurgent supply glut fears. “Downstream and integrated gas businesses contributed strongly to the results, alongside Shell’s self-help programme,” said chief executive Ben van Beurden. “However, lower oil prices continue to be a significant challenge across the business, particularly in the upstream.” The downstream business includes refining, marketing and distribution, while upstream comprises exploration and production. Second-quarter production stood at 3.51 million barrels of oil equivalent a day, which missed forecasts of 3.63 million as output was hit by shutdowns in Canada and Nigeria. The recent slump in oil prices has pushed energy groups worldwide to slash spending and jobs, and sell off assets. “We are managing the company through the down-cycle by reducing costs, by delivering on lower and more predictable investment levels, executing our asset sales plans and starting up profitable new projects,” added van Beurden. “At the same time, integration of Shell and BG is making strong progress, and our operating performance continues to further improve.” The company completed in February a £47-billion takeover of BG Group, in a deal aimed at strengthening Shell’s position in the liquefied natural gas (LNG) market. “Our investment plans and portfolio actions are focused firmly on reshaping Shell into a world-class investment case through stronger, sustained and growing free cash flow per share,” said van Beurden. In late morning deals, Shell’s ‘B’ shares sank 3.73 percent to 2,026.50 pence on London’s FTSE 100 index, which fell 0.12 percent to 6,742 points. “Shell followed BP’s lead from earlier in the week to post a wince-worthy 72-percent slide in profits thanks to the continued weakness of oil and gas prices,” said Spreadex analyst Connor Campbell. “This not only sent Shell (shares) 4.0 percent lower but pushed the rest of its sector into the red as well.” Bob Lilly Jersey