Logistics cost has to be brought down: Gadkari
The logistics cost in India is high at 17-18 per cent and it has to be brought down drastically, if the country were to compete in the international market, according to Union Minister for Surface Transport and Shipping Nitin Gadkari. The minister was speaking at the Visakhapatnam port here on Thursday after inaugurating several projects and laying the foundation stones for some. He first inaugurated the Visakhaptnam Container Terminal Private Limited’s container freight station built at a cost of ?104 crore and then the port’s 10-MW solar power project. He inaugurated the EQ-10 and WQ-6 berths in the port and visited the WQ-7 and other berths under construction at a cost of ?243 crore. He also laid the foundation stone for EQ-2 and EQ-5 berths taken up at an estimated cost of ?181 crore. Gadkari said these projects would vastly improve the functioning of the Visakhapatnam port which has a great future ahead of it on the east coast, as the government has adopted the Look East policy. Sagarmala project He said the government, realising the need to bring down the logistics cost, had taken up the Sagarmala project to improve the connectivity of the ports with the hinterland and also to link the ports. These measures will have the desired effect and Visakhapatnam port would also stand to gain a great deal, and this port will play a great role in the development of Andhra Pradesh and the country, he said. He said his ministry had also taken up the programme to double the length of the National Highways to improve connectivity and facilitate free flow of cargoes to the ports. Jake Dotchin Authentic Jersey
Gadkari: Rs. 11,900 cr for making highways safer
The Union Surface Ministry is planning to spend Rs. 11,900 crore for the removal of black spots (danger/accident-prone zones) on the National Highways by making the requisite changes in the road design, Union Minister for Road Transport, Highways and Shipping Nitin Gadkari has said. The minister was speaking at the inaugural of the two-day National Workshop on Road Safety 2016 which began here on Friday. He said it was a matter of serious concern that 1.5 lakh people were dying on Indian roads every year and the Centre with the cooperation of the States was committed to bringing down the road accident deaths. The total length of National Highways in India was 96,000 km and the plan was to increase it to 2 lakh km, but the focus would be on making them safer. Attributing 70 to 80 per cent of the road accidents to road engineering defects, he said 786 black spots were identified on the National Highways and funds would be allocated under the Pradhan Manthri Surakshit Sadak Yojana for making the necessary design changes. The rectification of the identified black spots would be done within two years. He said 30 per cent of the driving licences issued in the country were fake, and he urged the States to leverage technology to check corruption in the Transport Department. The other plans of the Centre include: allocation of Rs. 1 crore as grant for every district for the development of driving test tracks, driver training and vehicle fitness testing centres, launching of 1,000 emergency ambulances along the National Highways in the country for safe and timely shifting of accident victims to hospitals, road safety education to children and use of technology to minimise corruption in the Transport Department. Chief Minister N. Chandrababu Naidu, who had inaugurated the workshop earlier, welcomed the idea of the Union Minister to establish an accident fund to repay the loans taken from banks to provide various road safety initiatives. He said that 700 black spots were identified on all roads in AP and the State Government would take all steps to address the problem and bring down the accident rate. Tavon Young Womens Jersey
Motor vehicles pact set to give infra boost to BBIN
The Motor Vehicles Agreement (MVA) between Bangladesh, Bhutan, India and Nepal (BBIN) may invite rush for infrastructure building under the ADB (Asian Development Bank) finance in the participating nations. While majority of the finance is expected to reach Bangladesh that will see maximum increase in cargo movement; Nepal, Bhutan and India’s North-East should also witness infrastructure boost. The MVA will convert the region into a literally borderless territory for cargo and passenger movement, offering India easy access to its North-East. Bangladesh will gain by way of market access in the underserved north-eastern states. Protocol agreement In a recent interview to BusinessLine in Delhi, Syed Muazzem Ali, Bangladeshi High Commissioner to India, said he was hopeful that protocol agreement for the MVA would be signed this year after Bhutanese Parliament ratifies the framework deal. The other three nations have ratified the agreement. The Lower House of Bhutanese Parliament has already given its approval , underlining the need for some concessions in vehicular movement in terms of its small size and vulnerable geography. “I am hopeful that the protocol will be signed. But infrastructure development is necessary (to give it a head start). The road infrastructure is bad,” Ali said. Asian highway projects The ADB is already financing two Asian Highway projects in North Bengal connecting the Kakarvitta in Nepal, Phuntsholing in Bhutan and Banglabandha in Bangladesh to pave way for easy transit between the BBIN nations. But, major investment is required to improve the road and port infrastructure in Bangladesh that will see the maximum increase in cargo movement as Chittagong port will be accessed by Nepal, Bhutan and India’s North-East. Asked about financing options, Ali said: “So far, we are trying to do (get finance) bilaterally (with India). But, eventually, I think Asian Development Bank as well as UNESCAP has interests.” Bangladesh, he said, has already completed utilisation of the first Indian line of credit of $1 billion for infrastructure creation and is now utilising the second. Indo-Bangla border trade Meanwhile, Bangladesh is keen to restore its traditional rail connectivity with India by next year. The two countries are also making steady progress in improving border trade infrastructure. “Prime Minister Sheikh Hasina’s first priority is to restore rail connectivity through six points to West Bengal and the North-East. We hope we will be able to complete this process by the middle of next year,” he added. Apart from Akhaura-Agartala link, the rest were operative till 1965. The Akhaura-Agartala rail link will help mitigate the road infrastructure bottleneck and connect the Indian Railway system that is recently extended in the region. In the next step, the rail link will connect Chittagong port, located in close proximity, through Sabroom in South Tripura. This will end the north-eastern states dependence on Kolkata port, located nearly 2’,000 km away. For trade facilitation, the two countries have already opened modern integrated checkposts (ICP) at Petrapole and Fulbari borders in West Bengal and Akhura in Tripura. Next on line is an ICP at Dawki in West Jaintia Hills in Meghalaya. Michael Brantley Womens Jersey
Boeing, Tatas put Nagpur on global aviation map: Devendra Fadnavis
Maharashtra Chief Minister Devendra Fadnavis today said Nagpur is on the global map because of aviation company Boeing and the Tata Group. “It is a proud moment for all of us that some key parts for a Boeing aircraft are manufactured in the city,” Fadnavis said, adding with the help of Tata Group, MIHAN has put the country on the global aviation map. The chief minister dispatched the 5000th ‘beam’ from TAL Manufacturing Solutions to Boeing at a function at MIHAN here. TAL is a Tata Group entity. “City-based based TAL is manufacturing major parts for Boeing aircraft and Airbus also. It shows that Nagpur and Vidarbha region has talent along with the best human resources,” Fadnavis said. “When I was at Boeing’s headquarters in US, I was told that this part (beam) came from Nagpur. It was a proud moment for me. TAL would be the brand ambassador of the country in the aerospace sector,” he said. He also announced that Nagpur will become a cargo logistic hub shortly and all the related processes will be completed by this month end. “I received the letter from multinational company for the formation of FAB unit at Nagpur, which will be first of its kind in India,” he added. Union Shipping Minister Nitin Gadkari said TAL shows the talent of this region. “There is huge employment scope in this region. TAL in association with Boeing kept their promise, which they gave us in the formation of this unit related to employment generation,” Gadkari said. State Minister Chandrashekhar Bawankule, mayor Praveen Datke, Lok Sabha MP Krupal Tumane and senior officials of Boeing India, TAL and Tata Motors were present on the occasion. Harry Giles Womens Jersey
Air India in talks to recast Rs 10,000 crore debt
Air India is negotiating with lenders to convert Rs 10,000 crore of its debt into equity, a move that will substantially reduce the national carrier’s interest burden but give the banks a major say in its functioning. Air India chairman Ashwani Lohani has already met a few bank heads to discuss the matter and will meet some more in the coming days, said a senior official at the state-run airline who is involved in the talks with the 19-member consortium of lenders. The talks are being held under the Reserve Bank of India’s Scheme for Sustainable Structuring of Stressed Assets, or S4A, which gives struggling companies another chance at recovery. Under this programme, unsustainable loans — the portion of the debt that can’t be serviced through existing cash flow — can be converted into equity with the banks holding the stake. “About Rs 20,000 crore of our loans have been found to be sustainable (which can be serviced through its cash flow) and about Rs 10,000 crore is (proposed) to be converted into equity,” said the official, speaking on the condition of anonymity. “SBI Caps is negotiating for us with the consortium of 19 banks.” The national carrier pays Rs 4,000 crore of interest a year. “Once these loans are converted into equity, our annual interest payment outlay will reduce by Rs 1,000 crore,” he said. A lower interest outgo will boost the airline’s efforts to turn a profit. It is, in fact, set to post its first operating profit — that won’t include interest payment — since the 2007 merger of the erstwhile Indian Airlines with Air India, helped mainly by lower fuel prices than any improvement in operational parameters. Air India’s audited results for fiscal 2015-16 are likely to be released next month, when it is expected to report a Rs 100 crore operating profit. In his Independence Day speech last week, Prime Minister Narendra Modi said the airline has succeeded in registering an operating profit last year. . An aviation industry expert said the government is oversimplifying the problems of Air India by focussing on the financial bit and not its operational issues, which actually require direction. “This would mean transferring the loss of one company to another … It does not materially solve the airline’s problem because the problem lies elsewhere, which is in giving a strategic direction to the airline’s operational issues,” said Jitendra Bhargava, a former executive director at Air India. “The government did give the airline a bailout package of Rs 30,231crore but that has not been able to solve the problem.” he S4A scheme allows for restructuring large ticket loans where the project or company is up and running. Under this scheme, lenders are required to separate the sustainable loan, or where timely repayment is possible, from the unsustainable portion. The bank would convert the unsustainable debt into equity or equityrelated instruments. This would lower the debt burden of the borrower, while the bank, as a shareholder, would gain from the improved valuation a turnaround at the company would bring. ArDarius Stewart Jersey
NEEPCO losing Rs 40 lakh daily as ONGC fails to supply gas in Tripura
North Eastern Electric Power Corporation Limited (NEEPCO), a state run ‘Mini Ratna’ under the Ministry of Power claimed that it facing a loss of Rs 40 lakh daily since August 2013 as ONGC (Oil and Natural Gas Corporation Ltd) has failed to supply the committed gas to its 101 Megawatt power project at Monarchak in Tripura set up at a cost of more than Rs 1000 crores. Samar Ranjan Biswas, Head of the Monarchak project said, “Even after completion of the project of 100 MW size, and in all respect the project was completed in August 2013 unfortunately ONGC could not give us gas and it has remained unutilized. We had generated power only for few months and that too during non-operational of one unit of Palatana plant (power plant of ONGC) they could have given us the gas. After that it was again suspended and till now it is under suspension.” According to officials initially in the year 2001, NEEPCO had a plan to set up a gas based 500 MW combined cycle power plant and with the approval and allocation of 2 MMSCUMD (Million Metric Standard Cubic Meter Per Day) of Ministry of Petroleum and Natural Gas (MOP and NG). But in 2003 the gas allocation for the project was reduced to half and accordingly NEEPCO established all infrastructure for a 280 MW power plant. Meantime, ONGC during the end of 2005 had come with proposed for setting up its first power plant of 750 MW at Palatana in South Tripura and on view of which the MOP conveyed to NEEPCO to abandon its 280 MW Monarchak project. However, under the pursuance of the government of Tripura and NEEPCO by the end of 2007 again MOP&NG had asked ONGC to provide gas but this time only 0.5 MMSCUMD (i.e, one fourth what was committed) and according again the DPR for the project was changed to 101 MW and got approval from the CEA (Central Electricity Authority of India). In July 2010 the Project Investment Board (PIB) approved the project followed by the approval for setting up of the project by Cabinet Committee on Economic Affairs (CCEA), then headed by Prime Minister Manmohan Singh, in February 2011. In this delay the sanctioned project cost of Rs 623.44 crores after the revise had almost doubled and gone up to Rs 1007.57 crores. In spite of all these hurdles including the transportation of the over dimensional cargo (ODC) of the turbines and its parts in record 36 months and by the mid of 2013, NEEPCO completed the work of the gas turbine followed by the steam turbine and intimated about its readiness to the MOP&NG. Finally it became a 101 MW project and of which 63 MW would be generated by gas turbine while 38 MW by steam turbines. Accordingly ONGC on intermittent basis and as per availability first supplied gas in February 2015 though it failed to supply full contracted quantity and expressing its inability assured to supply by March 2016. Later only for a short period of two months (from 24 December 2015 to 28 February 2016) ONGC continuously supplied 0.5 MMS gas and during which both the gas and steam turbine operated, but now again ONGC has intimated that only by December 2016 it will be able to supply gas to the Monarchak project. The non supply of gas is a big loss for the NEEPCO and now official say that they are not sure about the fate of the project as ONGC has been giving date after date for supplying gas and without which the entire investment will be of no use. “We do not know what will happen to the plant, it is definitely a loss, a loss to the corporation and the nation. However, we have taken up the matter with the government of India and they have taken it with ONGC and others. Now we have got a commitment form the Ministry of Petroleum that gas will be resumed by December 2016 and in that case I think that we will be on stream with effect from January 2017. Daily loss is around Rs 40 to 45 lakhs and so yearly we shall have a loss of Rs 100 crore. Investment is Rs 1000 crore and we have a loan from Stat Bank of Singapore,” informed the Head of the Monarchak project. Along with this there are additional losses as the turbines and machineries which have already been used shall also gradually get rusted without use beside the staff and engineers those engaged with the project getting demoralized. N Bhuiya, a senior manager, said, “See we are losing around 40 lakhs a month and not only losing money but now we people – the engineers who are posted here are becoming ideal and that is also loss of your manpower and resource. So that way we are losing, revenue wise we are losing and see this is an internal combustion gas turbine and when already firing has taken place inside the gas turbine and definitely if it is a continuously process it is good. When we stop for eight to nine months again the whole process we have to start because from cleaning the gas pipeline, cleaning the steam turbine, pipelines whole activity again we have to do. So this is a loss in whole all the way, in terms of revenue, manpower and man resource.” The ambitious combined cycle electric power project of NEEPCO at Monarchak is all ready but ONGC has again expressed inability to supply gas till the end of this year. Now only time will say if NEEPCO shall be able to start its more than Rs 1000 crores project or shall have to bear the loss, a loss to the entire nation especially when India is starving for power and without which the wheel of development cannot run. Calvin Johnson Womens Jersey
APERC treads with caution on power tariff hike
Justice G Bhavani Prasad, chairman of Andhra Pradesh Electricity Regulatory Commission (APERC), has remained non-committal on the prospects of revision of power tariff. “It is the usual practice that the distribution companies (discoms) will submit aggregate revenue requirement (ARR) and tariff proposals some time in November every year and the commission will take a call on the proposals in April next. I cannot predict on the issue right now as it is a subject to be finalised at that point of time basing on the discoms’ proposals,” Justice Prasad said at a press conference here on Friday. In his capacity as chairman of APERC, he chaired the seventh state advisory committee (SAC) meeting of APERC held here. Justice Prasad claimed that power utilities in the state were ranked first in minimising distribution losses. The commission effected a 4 per cent hike, subjecting only 8 per cent of consumers to the burden in 2014-15 and 2 per cent covering only 4 per cent of consumers in the next year, he explained. When drawn his attention to the opinion of the industry on the higher tariff structure in the state which had resulted in migration of investments to the neighbouring states where power charges are relatively lower, he said that there was no truth in such claims. Replying to a question, Justice Prasad said the commission is examining a petition which challenged the power purchase agreements (PPAs), Hinduja National Power Corporation Limited had inked with the state government. “I cannot make any comment on this issue as it is subject to examination by the commission,” he added. Larry Andersen Authentic Jersey
Despite grim scenario, no power cuts: Energy Minister
Energy Minister D.K. Shivakumar has assured the people of Karnataka that despite a drought-like situation and the power scenario being grim, the department would not resort to power cuts. Speaking at the valedictory ceremony of the training programme held for candidates appointed to various posts in Hubballi Electricity Supply Company and Karnataka Power Transmission Corporation Ltd. here on Saturday, the Minister said that the department would make all efforts to supply quality power to farmers, industries and other consumers. Mr. Shivakumar said that hydel-power generation was not up to the mark as reservoirs had not received adequate inflow. “However farmers will get three-phase electricity for seven hours and industries will get power round the clock,” he said. Russell Bodine Jersey
Punjab paid extra to pvt firms for power: Jakhar
Congress chief spokesperson Sunil Jakhar has said that the SAD-BJP government in Punjab had paid Rs 2,935 crore extra to private generation units for making the state power surplus. Addressing a press conference on Sunday, the Congress leader demanded an explanation on the issue from deputy CM Sukhbir Badal during the upcoming assembly session. Jakhar said the international price of coal was US $ 26 per tonne in India in July 2015, but “anticipating an increase” in coal prices, the tariff order of the Punjab State Power Corporation Limited fixed the rates for private players at higher rates. “The excess power purchase for energy balance was Rs 2,257 crore at 268 paise per unit,” he said. “There should be detailed discussion in the assembly on this issue. The government should explain why it bought power at costly rates even though it could have been managed at cheaper tariff from outside.” These private generation units in the state have turned into white elephants and the government is paying so much extra to them. In my next press briefing, I will unearth who benefitted from these contracts. Legally, the government may have covered its tracks, but the figures do point to misrepresentations,” he said. Marcus Martin Jersey
Electrification of 1,450 Uttar Pradesh villages under lens, power ministry to seek CAG audit
he Centre is carrying out an on field verification in all 1,450 villages declared as electrified by Uttar Pradesh to probe if funds sanctioned for rural electrification by it have been pilfered. If found to be true, the power ministry will approach the Comptroller and Auditor General (CAG) seeking an audit, a senior power ministry official said. The power ministry has asked rural electrification engineers called as Gram Vidyut Abhiyantas (GVAs) to carry out cross-verification of village electrification claims of the state. BJP president for Uttar Pradesh Keshav Prasad Maurya will also go to villages to ascertain whether power infrastructure and supply position is in line with the information available with the central government. The decision has been taken by the power ministry after media reports highlighted that villagers of Nagla Fatela village in Hathras district of Uttar Pradesh, referred as electrified by Prime Minister Narendra Modi in his Independence Day speech, did not have electricity. Modi had said that although Nagla Fatela was only three hours away from Delhi and it took 70 years for electricity to reach there. Media reports, however, said villagers were using ‘katia connections’ from agricultural feeders. “As the work of establishing infrastructure for electrification was completed, we mentioned its status as completed. As the village already had power supply, we termed it ‘electrified,” said Dakshinanchal Vidyut Vitaran Nigam Ltd (DVVNL), the concerned distribution utility, in response to a showcause notice from Rural Electrification Corp (REC) on Wednesday. By Friday DVVNL admitted to illegal connections and resolved to dismantle the old infrastructure. “The reply makes it clear that Uttar Pradesh has admitted to mistakes and irregularities and has failed to provide regular electricity to the people while encouraging power theft and corruption,” the power ministry official said. Under the rural electrification scheme called Deen Dayal Upadhyay Grameen Vidyutikaran Yojna, state governments identify and implement village projects and REC sanctions funds after vetting them. Of the Rs 22,533 crore sanctioned to the state in about 10 years for electrification, only 34% has been utilised. Only 22% of the 92,323 villages identified for intensive electrification are reported to be energized. Power, coal, renewable energy and mines minister Piyush Goyal earlier alleged that Uttar Pradesh has been asking for additional funds while not been able to utilise the existing ones. While Uttar Pradesh blames the Centre, the Union power ministry accused the state of shoddy documentation and delayed execution. Uttar Pradesh principal secretary for energy Sanjay Agarwal was not available for comments. The Hathras district was sanctioned Rs 108 crore of grant by REC in January 2014 and was declared as electrified after verification by DVVNL in October 2015. Of the sanctioned cost, REC has released an amount of Rs 24.6 crore of which nearly Rs 25 lakhs was earmarked for infrastructure creation of Nagla Fatela. REC’s wholly owned subsidiary REC Power Distribution had last year appointed 309 young local rural electrification engineers at block and district level to monitor the progress of rural electrification in various states. REC Power Distribution will relocate some GVAs from other states to complete assessment of the 1,450 villages in UP by end of this month. Alex Mack Authentic Jersey