Power tariff in Haryana cut 37 paise per unit
Two days after having decided to slash power rates in Haryana, distribution companies Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam on Sunday announced to pass on the benefits from this billing cycle. Haryana Electricity Regulatory Commission (HERC) on Friday notified to bring down electricity rates by 37 paisa per unit. This decision will benefit 55 lakh electricity consumers in all categories across the state. Additional chief secretary, Rajan Gupta said the companies were working towards implementing the HERC decision from this billing cycle. “This is for the first time in two decades when the state government had strongly pleaded to bring down tariff . This will bring major relief to consumers,” Haryana’s public relation minister, Kavita Jain said. Dennis Seidenberg Jersey
Exporters step up cargo handling demand at airport
A Russian cargo plane which landed in Madurai International Airport on Thursday with equipment for the Kudankulam Nuclear Power Plant in Tirunelveli has raised eyebrows of exporters and trade body representatives demanding international cargo facility for the last couple of years. They alleged that despite receiving clearance in 2013, the international cargo facility is yet to be operational at the airport. Scanners and other required facilities were installed long back, but the Customs department was yet to take custodianship for the cargo, said exporters, adding that it was “due to the lack of will to execute things quickly.” They said that the Russian cargo was immediately cleared by the Customs department after receiving approval from the terminal director, as it was in the interest of the government. They demanded that the authorities show the same urgency in safeguarding the interests of farmers and exporters. The exporters said that there was a huge potential for export of vegetables, fruits and flowers from Madurai and the facility would help farmers get good price for their produce as they would be able to export directly. Derrick Thomas Authentic Jersey
Foundation-stone for new international airport to be laid around Dussehra
After a long wait of over four decades, Agra will finally get a civil air terminal outside the ambit of the Indian Airforce by Dussehra this year, following a campaign run by India Today. Talking to India Today, Uttar Pradesh Chief Secretary Deepak Singhal said that the foundation stone of the international airport at Agra will hopefully be laid by October around Dussehra at Dhanauli village near Malpura gate of the Indian Airforce Base. Singhal said that preparations for the construction of the airport are complete and the central government has informed the UP government of the requisite documentation required to sign over the land to the Airports Authority of India (AAI) for the airport’s construction and operation. Following this declaration by the chief secretary, the Agra tourism industry is hoping that the timeline for the airport’s foundation stone laying will not be extended this time. Meanwhile, Air India has announced that a flight connecting Delhi to Agra will begin operating soon, utilizing the existing Civil Air Terminal inside the Air Force Base at present. It will transfer the operations to the new terminal as soon as it is ready. This flight is being seen as Air India’s attempt to cash in on the influx of tourists coming to Agra during the tourism season. The industry leaders expressed satisfaction to the positive outcome of a long struggle that the tourism industry of Agra fought against. Even the recent moving of the Taj International Airport project from Agra to Jewar by the then Union Minister of State for Civil Aviation Mahesh Sharma was seen as an attempt of the Delhi-lobby to hurt the tourism prospects of Agra. Walt Frazier Jersey
AirAsia sees 10% growth annually
After a strong showing in earnings in the second quarter, AirAsia group boss Tan Sri Tony Fernandes says the airline can grow by 10% every year despite operating in a competitive environment. He is looking at a 10% growth in available seat kilometre (ASK) every year for the next few years. ASK is a measure of an airline flight’s passenger carrying capacity, basically the number of seats available multiplied by the number of miles or kilometres flown. The airline is taking delivery of several aircraft over the next few years and it will be able to add capacity to grow. As it is, group wide, it has 180 aircraft in operation. “We will start growing aggressively in the next few years and will add 10% ASK. If we add 10% capacity, the growth will be 10%,” he says. Group wide, he expects the airline to carry 60 million passengers this year. Nolan Ryan Womens Jersey
Pune International Airport Site: AAI demands more land; focus shifts from Khed to Purandar
With more land sought by the Airports Authority of India (AAI) for the proposed Pune international airport, the district administration along with the officials from the AAI and Maharashtra Airport Development Company (MADC) have shown keen interest on the site in Purandar taluka, besides having assessed two sites of Koye-Pait and other villages in Khed taluka on Friday. The AAI, after the review, is expected to prepare their report within two weeks with Chief Minister Devendra Fadnavis asking them to speed up the process. Earlier, the AAI had put forth the proposal of 1,200 hectare but on Friday, the officials demanded 1,800-2,000 hectare, which came as point of concern for the district administration officials. The earlier two sites in Khed taluka is spread over 1,400-1,500 hectare while the villages Rajewadi and Waghapur in Purandar have the desired land as put forth by the AAI. The officials of AAI and MADC had reviewed the sites on Friday. According to MADC officials, the day-long review had the team from AAI examining all the options and the final report is expected within two weeks. Principal Secretary, civil aviation, Sham Lal Goyal, officials from AAI JK Dutta and S Dey were part of the team along with Vishwas Patil, MADC MD and Pune Collector Saurabh Rao. The existing two sites in Khed taluka at Rajgurunagar, which included the villages Gargotwadi and Koye Pait stretch, were shown to the team while they also conducted a recce on Purandar-Waghapur, Rajewadi and Dalimb in Daund area. While no site has been ruled out, the availability of land in these areas seems to make Purandar a viable option. The distance of these sites from the city is nearly 50 km. Pune district administration, led by the Pune Collector Saurabh Rao, said that the AAI put forth the fresh demand for 1,800-2,000 hectare of land on Friday for the first time. “We have shown them three sites and whichever is feasible and suits the requirement will be given a go-ahead by the AAI team. While the Khed site is slightly undulating and hilly which may escalate the cost of the project, the Purandar site is barren and plain,” said the collector. Moreover, the earlier demand of the runway was 6 km by 2 km and on Friday it was stated that they would require 6 km by 4 km by the AAI officials, which would mean more than 2,000 hectare of land would be required and that would mean more displacement and rehabilitation. Anthony Zettel Womens Jersey
Air India Express turns profitable for the first time
Air India is likely to enjoy acche din, as its low-cost international subsidiary Air India Express has turned the corner by reporting net profits for the first time since it started operations in April 2005. The airline reported a profit of Rs 362 crore during the 2015-16 fiscal, helped by lower fuel prices and improved revenues over the past year on the back of flying more people per flight. The airline had incurred losses of Rs 62 crore during the 2014-15 fiscal. Profits of AI express has come during the fiscal, when its parent Air India is also expected to make operational profit. The airline also found a mention in Prime Minister Narendra Modi’s Independence Day speech, where he complimented the national carrier for improved financial performance. The airline’s board approved the audited financial results on Wednesday. K Shyam Sundar, chief executive officer of Air India Charters Ltd, the subsidiary that operates Air India Express, told ET that the turnaround could be achieved on the back of improved operations. Bobby Hull Jersey
Mahindra May Start Plane Sales, Manufacturing in India This Year
The aerospace unit of Mahindra & Mahindra Ltd plans to sell planes built by its Australian unit in India this year, a top company executive said. Mahindra may also consider manufacturing the planes in India if sales pick up. “We are hoping that (regulatory) approvals will come this year; so once approvals come this year, we will start selling the planes in India,” said S.P. Shukla, chairman, Mahindra Aerospace Pvt. Ltd, part of the $17.8-billion Mahindra Group, at an aerospace summit on Wednesday. In 2008, Mahindra bought Australia’s GippsAero, which makes the eight-seater GA8 Airvan close to Melbourne. About 220 of these planes are flying in 30 countries. Shukla explained why the plane continues to be made in Melbourne. “In Australia, there was a standard of CASA (Australian aviation regulator); CASA has a reciprocal arrangement with FAA (US aviation regulator) in the US, which has a reciprocal arrangement with Europe. And therefore, it makes sense if you have approvals in Australia to continue assembling in Australia,” he said. The next step could be to make in India. “After we start selling the plane in India, we will definitely look at the possibility of making also,” he said, adding some parts of the plane were already made in Bengaluru and supplied to the Melbourne facility. Aircraft certifications are tough to get and without them, it’s difficult to find buyers. Julian Edelman Authentic Jersey
Rising oil import costs may become Asia’s growing pain
A widening gap between Asia’s oil production and demand is creating a growing capital drain for the region and leaving countries vulnerable to global supply disruptions and a sudden surge in oil prices. Asia’s net oil imports surpassed the total amount of oil consumed in North America in 2015 and are set to rise after producers slashed spending on exploration and production on low oil prices, leaving oilfields at risk of sharp production declines in the next decade. Activities across Asia-Pacific to search for energy resources have nearly ground to a halt in the past year while recent exploration finds have struck more natural gas than oil, analysts said. As Asia’s net imports grow and crude prices recover, the region’s oil import bill is set to climb back above $500 billion in 2017 for the first time in three years, calculations based on forecasts by the International Energy Agency and a Reuters crude oil price poll in August showed. “With demand growth set to continue and outpace declining domestic production, this leaves Asia increasingly vulnerable to rising prices,” said Energy Aspects analyst Virendra Chauhan. FALLING OUTPUT The oil price slump since mid-2014 had given Asian economies a breather from high import bills. But oil demand in the Asia-Pacific is expected to grow by 800,000-900,000 barrels per day (bpd) this year and next, while the region’s output could shrink by 240,000-330,000 bpd during the same period, Chauhan said. The gap between oil production and demand has jumped over 30 percent since 2010 to an estimated 25.7 million bpd in 2016 and is set to grow by another 1.1 million bpd next year. Rising oil prices, however, means the cost could soar by a third in just one year to $566 billion. “We have seen two years in a row in 2015 and 2016 oil investments declining,” International Energy Agency (IEA) chief Fatih Birol said. “This would mean oil security and oil markets may face a challenge as a result of a huge drop in the investments in a very few years in the medium term.” Producers across the region are struggling, which is not being helped by international oil companies’ capital and expertise leaving the region, said Chauhan. Consultancy Wood Mackenzie expects Asia’s oil production to fall to 5 million barrels per day in 2025 from 7.6 million bpd in 2016. “We’ve seen a number of projects delayed – some cancelled – plus the level of investments in existing oil fields is falling,” Angus Rodger, director of Asia-Pacific upstream research at Woodmac said. “That has a minor impact in the short-term, but if you go out to 2020, it means oil production across the region will have declined significantly.” China is leading the decline, with output hitting a five-year low in July as producers shut-in marginal fields while imports hit a record. Indonesian officials said they are looking at ways to shore up a production target of 780,000 bpd in 2017, the lowest since 1969 and 40,000 bpd lower than 2016’s forecast. “We are discussing how to make Cepu block production higher than now,” Director General of Oil and Gas Wiratmaja Puja said, adding that output at the oilfield operated by Exxon Mobil may increase by 15,000 bpd. Indonesia, the largest oil producer in southeast Asia, faces a potential 20-25 percent natural decline in production unless it steps up activities such as drilling and well servicing, said Muliawan, deputy for operations at regulator SKK Migas. MIDEAST SUPPLY IMPASSE China, Indonesia and India have been actively investing in overseas oil production assets to supplement domestic output. China has also been broadening its sources of supply, taking more oil from Russia and Latin America to reduce its dependence on the Middle East, as well as building its strategic reserves to cushion itself in the event of an oil price shock. The region’s biggest oil consumer is also turning to gas and renewable energy, but these are long-term solutions. Asia imports just over half of its oil from the Middle East and will continue to rely heavily on Gulf producers, analysts said, exposing the region to geopolitical risks that have disrupted oil production and exports. “Asian production is on the decline, notably among others in China, and with increases in refining capacity that are unlikely to remain idle, the dependency of the region to Middle Eastern oil will remain,” BNP Paribas Global Head of Commodity Markets Strategy Harry Tchilinguirian told the Reuters Global Oil Forum. “It is, as you can imagine, hard to replace Saudi Arabia in your import mix for many an Asian refiner.” Tracy Mcgrady Womens Jersey
India to carry petroleum products via Bangladesh
The Indian Oil Corporation Limited (IOCL) will transport petroleum products from the northeastern state of Assam to Tripura through Bangladesh from September 7, an official said here on Sunday. The official said the arrangement was due to the difficulties faced in carrying petrol and diesel through the Indian roads of the region. The IOCL under the Ministry of Petroleum and Natural Gas of the Indian Government and the Roads and Highways Department (RHD) of the Bangladesh government had signed Memorandom of Understanding (MoU) in lieu of this in Dhaka on August 18. “If the passports of the officials and truckers of IOCL were received by Tuesday, the transportation of the petroleum products from Assamto TripuraviaBangladeshwould start from September 7,” an IOCL official said. He said Indian oil tankers carrying petroleum products from Bongaigaon (northern Assam) will ply on the Dawki border (Meghalaya)- Tamabil (Bangladesh)- Chatlapur (Bangladesh)- Kailasahar (north Tripura) route covering a distance of 136 km in about four hours. “This new route via Bangladesh would save time and costs in carrying petroleum products from Assam to Tripura as the existing over 400 km mountainous route required more than ten hours to carry these essential items. Besides, the condition of national highways through Meghalaya and southern Assam is horrifying,” the official added. The short-term India-Bangladesh deal on shipping of the petroleum products is valid till September 30. An official statement of the Indian High Commission in Dhaka said based on the request by the Indian government, Bangladesh has granted permission for the movement of petroleum goods on humanitarian grounds through their territory. The MoU will facilitate India to carry petroleum goods (Motor Spirit, High Speed Diesel, Superior Kerosene Oil and Liquefied Petroleum Gas) from Assam to Tripura through Bangladesh territory to make a buffer stock of them in the northeastern state. Bangladesh had earlier allowed India to carry food grains and heavy machineries from different parts of India to northeastern state of Tripura via Bangladesh. The Food Corporation of India(FCI) has transported a fresh consignment of 2,350 tons of rice last week from Kolkata to Tripura via Bangladesh to avoid transportation hitches through the traditional route of Assam and Meghalaya. Earlier in 2012, Bangladesh had allowed state-owned Oil And Natural Gas Corporation to ferry heavy machinery, turbines and over-dimensional cargoes through Ashuganj port for the 726-MW Palatana mega power project in southern Tripura. There is only a narrow land corridor to the northeastern region through Assam and West Bengal that passes through hilly terrain with steep gradients and multiple hairpin bends, making plying of vehicles, especially loaded trucks, very difficult. Agartala via Guwahati is 1,650 km from Kolkata by road, and 2,637 km from New Delhi. But the distance between Agartala and Kolkata via Bangladeshis just 620 km. Justin Hunter Womens Jersey
Inventory gains boost oil marketing companies in June quarter
While the June quarter was supported by strong inventory gains, a similar support in the current quarter is unlikely, according to some analysts. State-run refining and marketing companies (OMCs)—Bharat Petroleum Corp. Ltd (BPCL), Indian Oil Corp. Ltd (IOC) and Hindustan Petroleum Corp. Ltd (HPCL)—have all delivered strong June quarter results. A key reason why these companies were able to perform better is the fact that they reported a better gross refining margin (GRM). For the quarter, the measure for IOC, HPCL and BPCL stood at $9.98 a barrel, $6.83 a barrel and $6.09 a barrel, respectively. GRM is a measure of profitability for refining companies. In general, GRMs of refining companies were expected to get a boost from inventory gains, thanks to the rising oil price trend over the quarter. That has panned out. Spark Capital Advisors (India) Pvt. Ltd says, adjusted for refining inventory gains, the GRMs for these companies were in the range of $4-5 a barrel. That’s not very impressive. Nevertheless, the results beat street expectations. IOC’s operating profit increased by one-third, compared with the same period last year to Rs.136.83 billion. HPCL’s operating profit increased 17% year-on-year to Rs.36.27 billion, while BPCL’s operating profit increased at a much slower pace of 3% to Rs.39.19 billion. Reported net profit of IOC, HPCL and BPCL increased 25%, 30% and 11%, respectively, to Rs.82.69 billion, Rs.20.98 billion and Rs.26.20 billion. What next after a great quarter? Investors in these stocks have little to complain. Higher visibility on profits thanks to reforms in the sector, benefits from lower crude price and robust demand have helped sentiment. So far this year, shares of these companies have outperformed the Sensex meaningfully. Currently, BPCL, HPCL and IOC trade at 11 times, nine times and 10 times estimated earnings for this fiscal year. Even as valuations do not appear demanding, the outlook isn’t the brightest. Spark Capital believes OMCs’ earnings have peaked out in fiscal 2016 and sees risks to 2HFY17/FY18E earnings. Some factors that pose risks, according to the brokerage, include weaker GRMs and narrowing of trade discounts offered by West Asian suppliers—hitting GRMs and normalization in marketing margins of auto fuels. Further, while the June quarter was supported by strong inventory gains, a similar support in the current quarter is unlikely. In fact, it is possible that the June quarter ends up being the best quarter for this year. Given this and the sharp run-up in the stocks, upsides in the OMC stocks could be capped. Keith Magnuson Jersey