Union Ministry of Civil Aviation, Government of Maharashtra and Airports Authority of India sign MOU on Regional Connectivity Scheme

The Ministry of Civil Aviation, State Government of Maharashtra and Airports Authority of India today signed a tri-partite Memorandum of Understanding (MOU), thereby kicking off the collaborative process of the three agencies coming together for successful launch of the Regional Connectivity Scheme. The MOU was signed at Mumbai in the presence of Hon’ble Minister of Civil Aviation Sh. Ashok Gajapathi Raju and the Hon’ble Chief Minister of Maharashtra Sh. Devendra Fadnavis. With today’s development, the State Government of Maharashtra has formally agreed to provide the concessions required from the State Governments in the Regional Connectivity Scheme, thereby becoming the first state in the country to do so. The agreement was signed by Chairman, Airports Authority of India, Principal Secretary Civil Aviation (Maharashtra) and Joint Secretary (Ministry of Civil Aviation). Earlier during the day, Sh. Raju and Sh. Fadnavis discussed various other aviation related issues in the State of Maharashtra at length. The meeting was attended by Sh. R. N. Choubey, Secretary, Ministry of Civil Aviation, Sh Swadheen Kshatriya, Chief Secretary of the State and other officials. Amongst others, the subject of rehabilitation of slums (that have come up right next to the Mumbai International Airport) was deliberated upon in details. Early operationlization of several available airports and airstrips in the State (like Shirdi, Kolhapur, Nasik, Sholapur etc) also figured prominently in the discussions. Later, Sh. Raju undertook an aerial survey of the proposed airport site for Navi Mumbai and took a status briefing from the officers concerned. He laid emphasis on timely completion of the project and conveyed that this can be achieved only if timelines for all sub-activities are adhered to. Sh Raju conveyed that he will be undertaking similar visits to several other States across the country to promote the Regional Connectivity Scheme and discuss other related issues in the States. He expressed hope that several airports in the State will see activity as flights take off from these places as a part of the Regional Connectivity Scheme. Danny Etling Authentic Jersey

Regional connectivity scheme may be delayed

The National Democratic Alliance government’s ambitious regional connectivity scheme (RCS), planned to be operationalised by the year-end, has been delayed and is now expected to take off next year. The government is currently working on framing a roadmap for the RCS that aims to connect remote areas by operationalising unserved and underserved airports. In the first phase, the government plans to make 60 airports operational over the next three years. Of the 60 airports in the first phase, 10 are owned by the state-run Airports Authority of India (AAI) and 50 are owned by state governments. Currently, 65% of India’s air traffic is handled through 12 metro airports. A senior civil aviation ministry official, requesting anonymity, said the final RCS policy will be finalised by the end of this month, but it would take another month to formulate the roadmap for implementing the RCS project. Brandon Mebane Authentic Jersey

India highest growing aviation market, says Minister

Aviation growth in India has gone up to 20 per cent as opposed to China’s nine per cent, making it the highest aviation growth market in the world, Union Civil Aviation Minister Ashok Gajapathi Raju said here on Sunday. He was speaking to journalists after visiting the memorials of freedom fighters as part of the Centre’s ‘Freedom 70’ initiative. Mr. Raju said that as the country was rapidly growing in the aviation sector, the Central government was keen on sustaining this pace and progress further. To improve connectivity, the Union government had recently come up with the regional connectivity plan which envisaged viability gap funding, he said. The plan was to connect airports. For this, the State government’s participation was necessary. The Centre, he said, had planned to convert 31 “inactive” airports across the country with no flight operations into performing assets besides setting up new airports. In the next two to three years, the Centre might set up around 50 new “no frills” airports to connect the geographically unconnected areas. However, the Centre had not chosen the places for the new airports as yet. Nate Hairston Jersey

UDAY scheme: Power companies still losing 20 paise on every rupee spent on transmission

UDAY, a government scheme aimed at rescuing power distribution companies from their financial mess, may not be an immediate success because the utilities continue to lose at least 20 paise on every rupee spent to send electricity to consumers. However, there has been an improvement, with the average loss on every rupee spent narrowing from 25 paise last year. The loss is on account of increases in expenses and costs, which are not reflected in tariffs, according to a study by rating companies. “If cost components are not reflected in tariffs, utilities cannot recover what they spend for consumers and losses will remain,” said Sabyasachi Majumdar, senior vice president at ICRABSE -0.54 % Ratings. “No matter how many revival schemes are announced, build-up of losses and debt levels will not stop unless these utilities recover what they spend on sending power to consumers’ premises.” The Union Cabinet approved the Ujwal DISCOM Assurance Yojna, or UDAY, in November to facilitate the financial turnaround and revival of power distribution companies. The scheme seeks to achieve its goals by improving operational efficiencies of the utilities, reducing the cost of power, lowering interest costs and enforcing financial discipline on DISCOMs through alignment with state finances. “In the past, the government helped power distribution companies to write off these losses but they keep on accumulating again because recovery remains less than 100 per cent,” said a senior analyst. The government said in November that the weakest link in the value chain is distribution. It said distribution companies in the country were trapped in a cycle of operational losses that were funded by debt. They had accumulated losses of Rs 3.8 lakh crore and outstanding debt of Rs 4.3 lakh crore in March 2015. The utilities, too, are partly to blame for failing to file revised tariffs with the regulators on time, leading to delays in approvals and the recovery of money spent. This year, 28 of 40 utilities did not file for tariff revisions with the regulator on time. The situation has been deteriorating, with 25 utilities failing to file tariff revisions on time last year and 19 in the previous year. Connor Williams Jersey

Centre keen to tone up power distribution, network infra: CEA

The Centre is on a missionary mode to address the twin challenges of financial revival of distribution companies and reduction of transmission and commercial loss, said SD Dubey, Chairman of the Central Electricity Authority. Delivering his keynote address at the inaugural session of CII’s Energizing South 2016 conference on “Smart – Reliable – Sustainable Power”, Dubey said, “the Centre is keen to increase the efficiency of power distribution system in the country by addressing issues like network infrastructure, and IT enablement. It is also revising and amending technological standards for grid connectivity.” The government’s priority is the efficient and systematic development of generation, transmission, and distribution systems, the three limbs of the power sector. Dubey further said that though India has almost achieved power surplus, the benefits of generation and transmission have not reached consumers due to constraints in distribution. There are several parts of the country still experiencing power cuts, non-availability of power, and supply of non-quality power. India’s power sector has come a long way since Independence. In 1947, India had 1.4 GW of available power but today, the installed capacity has increased to over 300 GW with over 250 million connected consumers. Bob Probert Jersey

Maharashtra to soon introduce Energy Conservation policy

The Maharashtra government will soon come up with an Energy Conservation policy which will aim at enhancing the technology required to improve electricity generation. The draft of the policy, prepared in line with the Centre’s Energy Conservation Policy of 2001 has been uploaded on the government’s website and recommendations have been invited from experts to strengthen it, a statement released by the state Energy department said. “Increase in development and growing population of the state has caused a rise in the demand for electricity. Keeping in mind the development of industries, there will be a further rise in energy demand,” it said. As per the release, most of the electricity being generated today is through non-renewable sources like coal, fuels, etc which causes an imbalance in nature, increases pollution and is a factor causing global warming. “Also since these resources are fast depleting, we may not have enough of them in future. Thus these resources need to be used wisely,” it added. The Energy department said the new policy will ensure the government provides sufficient infrastructure for the Centre’s 2001 policy to be implemented. Once implemented after getting the state Cabinet’s nod, the government will save around 1000 MW energy in various sectors by 2020-21, it added. The policy once implemented will also aim to reduce the financial burden on the government by saving electricity, oil and gas. David Rundblad Authentic Jersey

Snag in MP plant, power dearer for Punjab

A snag in the ultra-mega thermal power plant located at Sasan in Madhya Pradesh has forced Punjab to buy electricity at much higher rates from other sources to meet the shortfall. The Sasan thermal power project is situated near a coal pit head and is run by the Reliance Power Limited (Anil Ambani group). Four out of six thermal units in the power plant broke down which caused the shortfall in power supply in Punjab. The plant supplies power to seven procurer states including Punjab, which buys 15% of the total produce. The plant with a capacity of generating 3,722.4 megawatts (MW) of electricity is now producing much less power affecting Punjab in the paddy season. The electricity produced by the Sasan thermal plant is priced at Rs 1.58 per unit while in Punjab the private projects plants sell power at a much higher rate. Talwandi Sabo power plant prices its energy at Rs 7.26 per unit and the Rajpura thermal plant sells it at Rs 4.10 per unit. Sources said on August 16, the production of Sasan thermal plant fell to 824 MW registering a loss of 2,898.4 MW, which caused Punjab a loss of 10.4 million units. Average availability of power at Sasan was been recorded as 851 MW on August 17, 1,608 MW on August 18, 1,795 MW on August 19, 1,646 MW on August 20, 2,505 MW on August 21, and 2,756 MW on August 22. Joakim Nordstrom Jersey

State electricity board officials caught taking bribe in Rajasthan

Two senior officials of the Rajasthan electricity board were today arrested by Anti-Corruption Bureau while they were accepting bribes. Additional Chief Engineer Narendra Kalra and Executive Engineer Jitendra Singh of the Rajasthan Rajya Vidyut Prasaran Nigam were caught taking bribes of Rs. 25,000 and Rs 20,000 respectively from representatives of a construction company. Acting on a complaint by the company manager Jitendra Singh, ACB laid a trap and sent Singh with the money to Kalra at his Jodhpur office while another employee of the company was sent to Dhankhad at his office in Jhunjhunu where they were caught. On the complaint of the project manager of the company, Jitendra Singh, we arrested Kalra and Dhankhad from their respective offices in Jodhpur and Jhunjhunu while accepting a bribe of Rs 25,000 and Rs 20,000 today , said SP (ACB) Ajay Pal Lamba. Following their arrests, their residences were also searched, informed Lamba. They will be produced in the court tomorrow, he added. Kevin Labanc Jersey

PSU oil firms question Adani’s plan to set up Dhamra LPG terminal and pipeline project

India’s three state-owned downstream oil firms have questioned Adani Group’s plans to set up a 650-Kilometer pipeline network that will connect Adani’s planned 1.6 million tonne LPG terminal at Dhamra port in Odisha to Asansol in West Bengal and Duttapulia near the Indo-Bangladesh border. Adani Gas Ltd (AGL), the natural gas distribution arm of Adani Enterprises, plans to capture the fast growing market for cooking gas in Eastern India and Bangladesh through the pipeline. However, the three PSU fuel retailers – Indian Oil (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) – have raised questions on the ambitious project in separate submissions to the downstream regulator Petroleum and Natural Gas Regulatory Board (PNGRB). An email sent to Adani seeking response on the PSUs’ questions remained unanswered. Experts said setting up an LPG import terminal of 1.6 mtpa capacity could entail an investment of close to Rs 1,500 crore. AGL had in April this year submitted an Expression of Interest (EoI) to PNGRB seeking authorization for laying the pipeline. Adani plans to make the terminal operational by mid-2018 and expects the initial volume to be around 1.6 MTPA which will be later increased to 2.5 MTPA. The IOC-BPCL-HPCL combine, however, has raised questions on the issue of parallel infrastructure – another LPG terminal being built by BPCL and Aegis Logistics at Haldia and a parallel 670-Km pipeline being constructed by IOC from Paradip to Durgapur via Haldia. “HPCL is of the view that due to upcoming LPG import terminal at Haldia by ALL and BPCL, there is no foreseeable requirement for LPG import terminal in the proposed pipeline route from Dhamra to Haldia,” HPCL has told PNGRB. The country’s third largest fuel retailer is already proposed to book 150 thousand metric tonne per annum (TMTPA) of the IOC pipeline. HPCL has also tied-up for usage of the upcoming import facility at Haldia with ALL. It stated that Adani Gas will have to make provision for input to their proposed pipeline from the ALL terminal for throughput of HPCL. IOC has also called the proposed pipeline by Adani Gas parallel infrastructure. Dhamra stands at a 30-Km distance from the route of the IOC pipeline and the distance between Duttapulia and Kalyani (the end point of IOC pipeline) is 50-Km, IOC has told the regulator. “Out of the around 650-Km pipeline route, for almost 550-Km, Adani Gas’ pipeline route is similar to IOC’s under-construction pipeline. With the requirement of major LPG marketers – IOC, BPCL and HPCL – being met by IOC’s pipeline, there might not be a need to create parallel infrastructure,” the nation’s largest fuel retailer said. The firm has already constructed 250-Km of the total 670-Km pipeline and plans to further extend it to Patna and Muzaffarpur. Raising similar questions, BPCL has said that there is no requirement of LPG from Dhamra port up to Haldia. “However, in exigencies and after evaluating the economics and circumstances, the option to use Dhamra can be exercised,” the company told PNGRB, adding the reason for terminating the (Adani Gas) pipeline at Asansol is not clear. According to Adani’s EoI, the proposed pipeline from Dhamra to Asansol and the Duttapulia pipeline would help evacuate cargo from the upcoming LPG terminal and help in increasing the penetration of LPG in the under-serviced markets of Odisha, West Bengal, Jharkhand and Bihar. AGL has been operating CGD networks in Vadodara and Ahmedabad since 2004 and Faridabad since 2009. The company also holds a 50:60 joint venture with IOC authorized by PNGRB to develop and operate CGD networks in Allahabad, Chandigarh, Panipat, Daman, Ernakulam and Dharwad. AGL services a customer base of around 350,000 daily through a network of 65 CNG stations, 400 Km of steel pipeline and 5,850 Km of Medium Density Polyethylene (MDPE) pipeline. According to Adani Gas, the availability of draft and the infrastructure for handling Very Large Gas Carriers (VLGCs) were major considerations for selecting the location of the import terminal at Dhamra port. India consumes around 18 MT of LPG annually even as domestic production stands at 10 MT. The country imports more than 8.3 MT of LPG a year. The LPG consumption is expected to grow to 25 MT in 2020 of which nearly 16 MT will be imported. LPG consumption in the Dhamra hinterland has also grown to 2.8 MTPA driven by sharp rise in demand in West Bengal, Odisha, Jharkhand, Bihar, Chhattisgarh, Bangladesh and the north-Eastern regions of India. Bangladesh’s LPG supply is also heavily import-dependent. That nation consumed 150,000 tonne of LPG last year of which only 22,000 was produced locally. Tre Flowers Authentic Jersey

RIL may drop arbitration proceedings on government’s authority to fix gas prices

The board of Reliance Industries will consider next year dropping the arbitration against the government on the latter’s authority to fix gas prices, sources familiar with the matter said. Reliance must withdraw the arbitration if it wants to charge a higher price for its deep sea gas, according to a recently announced government policy that has more than doubled prices available to gas from difficult fields. Following the policy announcement, Reliance hasn’t clearly said if it wants to withdraw the arbitration but has initiated the process of developing its deep sea fields in the KG Basin. Reliance and its partners, BP Plc and Niko Resources, have sought contractors for concept engineering and design for deep water field development. “The fact that Reliance Industries has sought vendors for the field shows that it is keen on developing it. Dropping arbitration is a precondition for availing higher prices for gas from the field. Therefore, once the development plan is ready, it will be put to the board next year which would then take a call if it made sense to develop the field and drop arbitration. It will be a purely commercial decision,” a source familiar with the matter said. The new policy on gas prices can potentially benefit Reliance’s eight discoveries with reserves of 2.53 trillion cubic feet of gas. The maximum price available to gas from difficult fields in India is $6.61 per unit currently, according to the government formula, which compares favourably with the global spot liquefied natural gas (LNG) rates hovering between $5 and $6 per unit these days. The price available to domestic natural gas from other fields is $3.06 per unit. The price of gas from difficult fields has been linked with alternative fuels. Kevin King Authentic Jersey