Four-lane highway at teeming Gurugram-Sohna Road delayed by 3 years
Much like the Dwarka Expressway, the development of a planned four-lane highway at the teeming Gurugram-Sohna Road will also take three more years. The 92-km road connecting Rajeev Chowk at NH 8 to the Rajasthan border in Alwar district has recently achieved national highway status. But problems came to the fore during the 25-hour gridlock on Thursday and Friday, particularly at the stretch between Rajeev Chowk and Badshahpur. FAULTY DESIGN “We took charge of the Gurugram-Alwar road last week and soon hired a consultant company to check feasibility to develop a four-lane highway,” said Ashok Kumar Sharma, project director, NHAI. The NH 248 is highly congested, especially between Gurugram and Badshahpur, owing to a faulty design from the Haryana PWD, MCG and HUDA. Experts cite the flyover at Subhash Chowk as a key example of the flawed policies of the government and civic agencies that had passed the design of the structure from Huda City Centre Road to Hero Honda Chowk in spite of the Rajeev Chowk to Badshahpur stretch on NH 248. Compared to the previous road, the NH 248 has about 100 times more vehicular traffic due to a large number of IT companies, business houses and upscale residential complexes in the neighbourhood. “The consultant company will check the feasibility of an underpass at Subhash Chowk on NH 248. Besides that, it will also look for possibilities of elevated corridors at highly congested places such as Badshahpur, Sohna town, Nuh and Ferojpur Zirka,” Sharma said. He added that company will submit its feasibility report in three months and like the other NHAI project, it is also expected to be complete in three years. The NH 248 starts from Rajeev Chowk situated on NH8 and has four lanes till Nuh, the headquarters of Mewat district. The road further towards Ferojpur Zirka and touching Alwar border still has just two lanes. Denzel Perryman Womens Jersey
Road developers step up bidding war in quest to win EPC projects
Road developers are locked again in a bruising bidding war, offering to build highways at prices that are lower than cost estimates, just months after the government offered a bailout to companies to help revive stranded road projects. Several debt-laden developers, unable to take up build, operate and transfer (BOT) projects because they are capital-intensive, have opted to bid for engineering, procurement and construction (EPC) projects, where the government pays the contractor to build the project. A total of 52 EPC road projects worth about Rs.26,700 crore have been awarded between January and June, according to data compiled by brokerage Equirus Securities Pvt. Ltd. Of these, close to 40 projects were won below the National Highways Authority of India’s estimated cost and each of the projects attracted three to 14 bidders. The government’s push for a new low-risk hybrid-annuity model (HAM), in which the state commits up to 40% of the project’s total cost to kick-start private sector investments, and the emergence of a number of smaller, regional companies have added to the competitive intensity, according to road developers and analysts. The government has been trying to resolve stressed assets in the sector by giving faster land acquisition approvals and providing last-mile funding. Last year, it eased rules for companies to exit their operational road projects. It has terminated more than 40 unviable BOT road projects spanning 7,000km lane. These projects are being re-awarded via the EPC route. Larsen and Toubro Ltd (L&T) has decided to focus solely on EPC projects. It won five awards in the six months ended 30 June, all of them below estimated costs. It won two EPC projects in Tamil Nadu in February by bidding 27% and 13% lower than the project cost suggested by the awarding authority. In March, L&T won a road project in Kerala at a bid that was 38% below the estimated project cost. Similarly, Bhopal-based Dilip Buildcon Ltd has won six contracts, which were between 13% and 31% below the estimated cost. Apart from L&T and Dilip Buildcon, firms such as PNC Infratech Ltd, Ramky Infrastructure Ltd, Ashoka Buildcon Ltd and GVR Infra Projects Ltd have won EPC road contracts in 2016. The NHAI, which invites bids from developers and awards them to the lowest bidder, is the sole agency responsible for the development of national highways. Projects are also awarded by the ministry of road transport and highways and states. Infrastructure developers, weighed down by debt, are seeking to monetize dozens of highway and power projects to repay creditors. Many are taking on state-funded EPC projects to pay their interest and other costs and to grow their order book. Companies with weak balance sheets that do not support investing in BOT or HAM projects are bidding aggressively for EPC projects, said Devam Modi, an analyst with Equirus Securities. “This makes them bid below the NHAI cost, and this will impact margins, but it is difficult to say how much they will lose as of today.” L&T, however, said it has been able to win projects at lower costs due to better planning, design, and engineering. “It has nothing to do with competitive intensity. We do not want to improve market share at the expense of margins,” said chief financial officer R. Shankar Raman. While Dilip Buildcon acknowledges intense competition, it does hold NHAI’s project cost as an accurate metric. “Every state has a different cost and often cost estimates are not accurate… Competition has definitely increased. From four bidders in 2014, there are seven-eight bidders in EPC projects. But a lot depends on a company’s cost structures and their target for contracts,” said Rohan Suryavanshi, head of strategy and planning. The shift towards awarding projects under the HAM model this fiscal will heighten competition for EPC projects and benefit companies with financial muscle because of moderate competition for HAM projects, Edelweiss Securities Ltd analysts Parvez Akhtar Qazi and Rita Tahilramani wrote in their 27 July report. “The shrinking pie of EPC projects (expected to more than halve in FY17 from about Rs.40,000 crore in FY16) is likely to result in intense competition for such projects,” they wrote. In contrast to EPC, all the 25 HAM projects between January to July this year were awarded above the estimated project costs. Many of these projects had nine to 13 bidders each. MEP Infrastructure Developers Ltd along with partner Sanjose India Infrastructure, Sadbhav Infrastructure and MBL Infrastructures Ltd have won the most number of projects under HAM so far this calendar year. A total of 50 HAM projects are to be awarded in fiscal 2017. EPC projects formed the bulk of awards in the past two years; this year, however, most projects have been awarded on the HAM model, said Vasistha Patel, executive director at Sadbhav Infrastructure Projects Ltd. “This has led to aggressive bidding for the limited number of EPC projects… In EPC, we earn margins of 11-12%, while in BOT, they are naturally a little higher,” he said. Sadbhav had also bid 3-5% below the estimated cost for some projects, Patel said. India has set a target to award 25,000km of road projects in FY17 under the ministry of road transport and highways and NHAI, compared to 10,000km achieved in FY16. Randall Cunningham Authentic Jersey
Green cover plea along highways: NGT seeks reply of Centre
The National Green Tribunal (NGT) has sought the response of the Centre, NHAI and others on a petition seeking a direction for maintenance of mandatory 30 metres green cover on both sides of the national highways. The green panel also issued notices to the governments of Delhi and Haryana on the plea which claimed that there was an erosion of the mandatory green cover on both sides of NH-1 and NH-8 which was necessary to maintain the ecological balance between pollution and development. A bench headed by NGT chairperson Swatanter Kumar asked the respondents to file their reply and fixed the matter for hearing on September 7. The plea, filed by an NGO, said an effort should be made by National Highway Authority of India (NHAI) and the state governments, through which national highways pass, to preserve and maintain the surrounding areas. “As per norms adopted by the NHAI, mandatory green of 30 metres on each side of the highway/scheduled road and 50 metres on both sides of any bypass is to be maintained,” it said. It claimed that effective green cover along the national highways have manifold uses and NHAI itself has prescribed the mandatory green cover. “This is a huge loss to the green cover of the country, which is struggling with acute shortage of water and is faced with humungous air and noise pollution,” it said. The petition also referred to the notifications issued by the Haryana government which said that no construction can be allowed within 30 metres on either side of national highways and 50 metres on both sides in case of bypass road and it has to be maintained as green area. “The basic concept is that trees should be planted along the highway to maintain ecological balance between pollution and development and the future need for expansion of roads and insulate the population living nearby from noise pollution, dust and emission pollution,” it said. It sought a direction to authorities concerned for declogging of traffic on national highways. Mark Walton Jersey
No power shortage in the country, says Goyal
There is no shortage of power in the country to cater to the demands of states and government is trying to fully tap the potential of new and renewable energy to produce 175 Gigawatt of power by 2022, Rajya Sabha was informed today. Power Minister Piyush Goyal also said the government was exploring producing energy from waste and garbage and clearance of certain projects were awaited from National Green Tribunal and the Supreme Court, monitoring the use of technology which does not impact on environment. “There is no shortage of power in the country. We have sufficient power and if any state wants to buy power, one can do so from a portal now. “Total potential in India from new and renewable energy is huge and immense and the total potential is certainly not being exploited. This government has embarked on a plan for producing 100 GW planned capacity in solar and an overall five-fold increase in renewable energy to 175 GW by 2022,” Goyal told members during the Question Hour. Replying to supplementaries, the Minister said as regards the total amount of energy generated last year from solar power and renewable sources of energy put together was 65 billion units. “In 32 years, the country barely had 34 MW of renewable energy capacity and the total solar power capacity is 2,632 MW but we have added 4,130 MW capacity in last two years. This is almost 1.5 times in two years against what was added in last 32 years,” Goyal said. As per the new tariff policy, government has made compulsory grid inclusion for all new projects converting waste into energy, he said. “Government is awaiting clearance of technology for use by certain projects to convert waste into energy. The NGT and Supreme Court are monitoring the technology used for proposed plants for converting waste and garbage into energy. We are in discussion with foreign makers for use of technology,”he said. The Minister also said there was a proposal to tap the potential of wind power along the 7,500 km coastline in the country, but the cost turns out to be higher than in Europe. Jourdan Lewis Womens Jersey
Relief to domestic power consumers in UP
In a relief to domestic consumers, Uttar Pradesh State Electricity Regulatory Commission (UPSERC) today spared them from any hike in power tariff and did not propose any increase in tariff for small users for private tubewell or pumpsets for irrigation purposes. The new tariff for 2016-17 was announced by UPSERC today, said an official. The tariff has been planned in such a way so as to compensate the rising costs of the licencees without putting excessive load on the consumers, he said. Efforts have been made to ensure that the effective tariff for consumers with lower consumption is lesser as compared to those with higher consumption. In an initiative to revive the financially-distressed distribution companies (discoms), the Centre has approved a new scheme proposed by the Ministry of Power, Ujwal Discom Assurance Yojna (UDAY), said the official. Recognising the hardship of the Bundelkhand farmers, the commission has relaxed the minimum bill payable by a consumer to Rs 100 per BHP per month. This would be applicable till installation of meter to private tubewell consumers. The commission has approved telescopic tariff for LMV-4 category of consumers which, in turn, would result in a lesser amount in the electricity bill for those who consume less electricity and would also help in smooth implementation of pre-paid metering. To encourage consumers to make payments on or before the due date, the rebate has been increased from 0.25 to 0.5 per cent. SERC has also approved that in case of rectification, adjustment, settlement of bills etc., consumers would also be entitled to interest at the same rate as that on the security deposit on all the dues payable by the licensee to them. To encourage the use of solar energy, it has decided to continue with the rebate to consumers for installing and using solar water heaters, which costs only Rs 100 per month. Green Bay Packers Womens Jersey
Restriction on electricity injection blowing wind out of wind projects
Restriction on electricity injection into the national power network is blowing the wind out of wind power generation units. According to India Ratings, a rating firm, electricity networks all over the country have reduced receipt of wind turbine generated power which is starting to threaten credit worthiness of renewable energy projects. “It has the potential to impede capacity addition,”says India Ratings and Research (Ind-Ra). Non-availability of network to push the power generated by wind projects has majorly impaired operational strength of some wind projects, given the sizable installed capacities. The national power network carries electricity from generators and supplies it to utilities who then on supplies it to consumers. This network, referred to as grid is severely short of requisite capacity to hand power generated from wind projects. “The failure to address grid issues can gradually destabilise the solar projects in the ensuing years. Restriction of power injection by the grid is unpredictable, thus the ill-equipped developers have been grappling to manage their finances, barring the large ones,” the India Ratings report said. Wind power generation depends on the speed of wind at the project locations and it is uncertain, while curtailment of power receipt by the grid is controlled by the authorities that manage the grid is, this practise of not accepting wind power by the grid is slowly shaking the fledgling renewable energy sector. “Tamil Nadu, with the largest number of wind power project has been widely curtailing grid availability for power projects in the last three years; the phenomenon appears to have spread to Rajasthan in FY17 and FY16,” it said. Ind-Ra believes that inadequate forecasting systems have compelled the utilities to curtail the grid. In Ind-Ra’s view, due to the relative source certainty in solar projects, generation in solar is more predictable than in wind projects. Anecdotal evidence suggests that solar capacities in Tamil Nadu have also encountered grid issues in FY17. The average annual grid availability for wind assets in Tamil nadu from FY14 – FY16 stood at less than 80%, while the average annual grid availability from FY11 – FY13 was around 95 per cent. Drastic reduction in availability from FY14 onwards didn’t coincide with any major capacity addition, since total capacity of merely 604MW was added in the period FY14 to FY16 compared to total installed capacity of around 7600MW. Grid availability and increased wind supply in 1QFY17 has significantly improved the wind energy generation (94 per cent increase over 1QFY16, source: Southern Region Load Despatch Centre). Providing certainty in grid availability can make Tamil nadu attractive for repowering of old wind turbines (1900 MW installed till 2003). There is large solar capacity additions envisaged to come on track in Rajasthan in 2016; however the lack of assurance on the evacuation infrastructure and the grid availability can affect the credit profile of the upcoming projects. Forecasting and scheduling regulations have been notified, wherein the generator will be penalised in case of inaccurate forecasts. On the other hand, there is no mandate on the transmission and distribution utilities to manage the grid to ensure the ‘must run’ status which is conferred on renewable energy projects is adhered to. Ind-Ra notes that there is no provision for compensation in case a renewable energy project is unable to supply power in the event of grid curtailment. The lack of this provision, leaves the renewable energy project stranded whenever there is curtailment and they appeal to the regulators over the non-compliance of the must run status. Technical and commercial challenges are emerging for the distribution utilities because of changes in the energy mix. Efforts to address these challenges are trailing behind the envisaged pace of capacity addition. The monopoly in distribution infrastructure and lack of technology aids – to predict the source risk, tests the endurance of renewable projects and consequently renewable energy remains hostage to state utilities. There is also a need to address the costs of integration of renewable energy in the grid in an equitable manner. Alex English Womens Jersey
India’s total power generation capacity crosses 300 GW mark
India’s total installed power generation capacity has crossed the 300-GW mark, which includes 42 GW of renewable energy sources, including solar and wind. India’s total power generation capacity was 3,03,118.21 MW as on June 30, 2016, which includes 42,848.43 MW, stated Power Minister Piyush Goyal in a written reply to the Rajya Sabha today. According to the statement, private sector’s cumulative installed power generation capacity was 1,24,995.51 MW as on June 30, 2016 while central plants account for 76,296.76 MW and state capacities 101,825,94 MW. The minister also stated that the country has generated 12.01 billion units of electricity from renewable energy sources till June-end this fiscal while the output was 65.78 billion units in 2015-16 and 61.78 billion units in 2014-15. The target from clean sources in 2015-16 was 70 billion units. The minister also told the House that 1,107.82 billion units of electricity were generated last fiscal. Thermal power constituted 85.19 per cent of the total generation in 2015-16 while hydro contributed 10.96 per cent and nuclear power’s share was 3.38 per cent. India imported 5.24 billion units of electricity from Bhutan last fiscal, which was 0.47 per cent of the total output. Goyal also said that to meet the rising demand of power, as per 18th Electric Power Survey (EPS), the capacity addition target of 88,537 MW from conventional sources has been planned during 12th Five-Year Plan. Against this target, 86,565.72 MW has been achieved till June 30, 2016, he added. Star Lotulelei Jersey
Maharashtra consumers cry hoarse over power billing pattern of pvt companies
It is not just “inefficient handling” of supply by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) that the consumers are complaining about. Various consumer organisations have come forward to file petitions with the Maharashtra Energy Regulatory Commission (MERC), accusuing the state power utility as well as private power producers of “pickpocketing” . Atul Pawar, an industrialist who submitted a petition to MERC during its hearing here, said when the MSEDCL orders closing of generation plants of the state power generation utility, the Maharashtra State Electricity Power Generation Company Limited under the Merit Order Dispatch (MOD) mechanism evolved by the energy regulator, it forces companies with higher power costs to go off the grid as the demand drops. He said. “The Bhusawal Thermal Power Station (BTPS) units with 500 MW capacity each producing 24 million units collectively aday have been shut down since July 3. But power is being bought from private players at higher rates.” Incidentally, power supply from a private company is being bought at a rate higher than the units of BTPS providing power at Rs 2.88 per unit that have been put on ‘reserve shut down (RSD)’ – they are off the grid and have stopped producing power. “The MOD mechanism has been designed in a way that consumers get power at lower costs. Yet, the system is not being implemented in totality and this is largely because of grey areas in its implementation,” a superintending engineer with the Maharashtra State Electricity Power Generation Company Limited said on the condition of anonymity. Consumers were also weary of the “compensatory tariff” issue which is currently being decided upon by the Supreme Court. The compensatory tariff does not exist at present. A private energy producer had applied to the energy regulator in Maharashtra for compensation of additional expenses incurred by his company for production following the rise in cost price of raw material. It was not considered while preparing the power purchase agreement with the power utility. “The MERC had said that MSEDCL ‘may’ allow it and it is currently being battled in the court of law. While the matter is sub-judice, the rise in compensatory tariff sought was Rs 1.04 per unit of power over and above the agreed rate between the private company and MSEDCL. This is going to be tough for the consumers – especially the industrial and commercial consumers who are charged accordingly,” said the statement of the Maharashtra State Power Employees’, Engineers’ and Officers’ Joint Action Committee. “Both the issues are important and need a sound decision. This has the potential of saving the consumers from being exploited by the private players,” said Suyog Zute, general secretary, Graduates Engineers’ Association. Art Monk Womens Jersey
Initiatives taken to take forward Biodiesel programme
The Petroleum Minister Dharmendra Pradhan informed the Lok Sabha in a written reply that the Ministry of Petroleum and Natural Gas had announced a Bio-diesel Purchase Policy in October 2005, under which, Oil Marketing Companies (OMCs) would purchase bio-diesel at a uniform price as may be decided by the OMCs from time to time, for blending with High Speed Diesel (HSD) to the extent of 5% at identified 20 purchase centres across the country. However, OMCs could not procure biodiesel upto August, 2015 as biodiesel producers were not coming forward to supply their biodiesel at the prices decided by OMCs from time to time. On 10.8.2015, the Government allowed the sale of Bio-diesel (B100) by private manufacturers to bulk consumers like Railways, State Transport Corporations and other bulk consumers. Also, retailing of bio-diesel blended diesel by Public Sector Oil Marketing Companies (OMCs) has started on the same day. As a result, the biodiesel procurement by Public Sector OMCs has started. As on 1st July, 2016, 13.2 million litre Biodiesel (B100) has been procured by Public Sector OMCs. During the current Financial Year also, OMCs have finalised a quantity of 40.1 million litres of biodiesel for the period of April – September, 2016. Besides, Ministry of Petroleum and Natural Gas has taken following recent initiatives to take forward the biodiesel programme : A Steering Committee has been constituted in the Ministry to take forward the bio-fuel programme of the country. A separate Biofuel Cell has been constituted in Ministry of Petroleum and Natural Gas for dedicated focus on Biofuels. The Cell, besides being a technical repository on Biofuels, also monitors biodiesel procurement and blending by OMCs. Bureau of Indian Standards (BIS) has revised the standalone Biodiesel (B100) specification and also developed specification for biodiesel blend from B6- B20. L. P. Ladouceur Womens Jersey
Gazpromneft-Aero to increase monthly refuelling volumes in India by 40%
Gazpromneft-Aero, the operator of Gazprom Neft’s aviation refuelling business, is to increase its average monthly refuelling volumes in India by more than 40% — to 1,200 tons per month — in the period from July 2016 to July 2017. This growth will be achieved through new long-term agreements with Aeroflot and Volga-Dnepr airlines for “into the wing” refuelling in India’s major tourist and business centres: Delhi, Hyderabad, Goa, Mumbai, Calicut, Chennai, Trivandrum and Varanasi. The Gazpromneft-Aero aviation refuelling network in India is currently one of the company’s largest international networks. Refuelling is carried out under an aviation fuel supply agreement signed by Gazpromneft-Aero and Hindustan Petroleum, a major Indian national fuel supplier. This partnership began in 2010 and has strengthened over the years. Under the agreement, Gazpromneft-Aero provides guaranteed refuelling to its Russian and international customers at airports in India, in line with international safety and service standards. Over the past six years, Gazpromneft-Aero’s total refuelling volumes to its own customers via Hindustan Petroleum has amounted to more than 70,000 tons. Vladimir Egorov, CEO of Gazpromneft-Aero, said: “The expansion of our geography and increase in refuelling volumes in India demonstrates the growing trust of our long-term partner and, consequently, the strengthening of Gazpromneft-Aero’s position in the global aviation fuel supply market. We plan to develop our cooperation further with Hindustan Petroleum, a global fortune 500 company. It offers an attractive opportunity for Gazpromneft-Aero to expand its presence in the promising Indian market, which is the largest growing aviation market in the world with traffic growth of more than 20 %. Our partners, HP Aviation, have a major presence in India and are currently fulfilling the aviation refuelling requirements at 37 airports. We are confident that Russian and international airlines will benefit from the advantages of the formula pricing system, enabling our customers to refuel aircrafts both in Russia and abroad.” Gazpromneft-Aero is a Gazprom Neft subsidiary. The Company has been refuelling aircraft and conducting “into the wing” aviation fuel sales since January 1, 2008. Gazpromneft-Aero has been a strategic partner of the International Air Transport Association (IATA) in the field of aviation fuel supply since December 2008. Gazpromneft-Aero is the leader on the Russian aviation fuel market in terms of retail sales. In its operations, the company uses technologies that comply with the highest safety level for refuelling operations: Green. Hindustan Petroleum (formerly Esso and Caltex prior to 1974) has been providing aviation refuelling services at various airports in India for more than half a century. Hindustan Petroleum (HPCL) is a Government of India Enterprise with a Navratna Status, and a Forbes 2000 and Global Fortune 500 company. The company provides fuelling services to the aviation industry through its Aviation business unit, “HP Aviation”. The network covers all the major airports in India and is expanding continuously. The company’s Aviation Turbine Fuel fuelling service meets and exceeds the stringent international regulations for handling jet fuel. The company’s accolades and accreditation demonstrate its commitment to quality service in its operations, infrastructure and skilled manpower. Chris Boswell Womens Jersey