National highways to turn ‘no advertisement’ zones
India’s highways will become no advertising zones as the government has ordered the removal of all advertisement hoardings across the length and breadth of national highways. According to an order issued last week by the road transport and highways ministry, no hoarding will be allowed on the right of the way on national highways. The right of way also includes the 10-metre of land strip on both sides of the highway that runs along the length. India has a national highway network of one lakh km which the government has planned to double in the next four years. The ministry has formed a special team that would work on the removal of hoardings by prioritising the highways that have maximum congestion. National Highways Authority of India (NHAI) has been tasked with the inspection of all highways on immediate basis. “It has been decided that the regional and liasoning officers within their jurisdiction will inspect the NHs (national highways) by prioritising heavily trafficked NHs and other NHs in stages and submit inspection reports to the ministry for further necessary action,” the government said. The ministry feels that advertisements cause distraction which often leads to accidents. An internal study conducted by the ministry has focused on the need to remove huge hoardings, a move which is in line with international practice. The government is working on a national roadmap to reduce the number of road accidents in India. The country has over five lakh road accidents every year on the NHs in which over 1.5 lakh people are killed. A target to reduce road deaths by half by 2020 has been set by Road Transport and Highways Minister Nitin Gadkari. The roads ministry has also launched Pradhan Mantra Surakshit Sadak Yojana with a corpus of Rs 2,000 crore to fix the black spots on highways where accidents occur regularly. Drew Brees Authentic Jersey
NHAI moves to address concerns over new hybrid model: Sources
The National Highways Authority of India (NHAI) has moved to address concerns of lenders over its new hybrid annuity model (HAM) that it unveiled recently to push the pace of highway construction in India. Sources have told CNBC-TV18 the highways authority may move in a month or two to address concerns raised by lenders over various aspects of the agreement of such projects such as low level of compensations in case of project delays or cancellation, limited promoter equity etc. The NHAI had awarded 11 projects as of March 31, 2016 but lenders had been hesitant to fund such projects. Sources now say that one project under hand has already attained financial closure that is the Delhi-Meerut Expressway package-1 by Welspun Enterprises. Two other projects which are likely to attain financial closures are Meerut-Bulandshahar National Highway and Delhi-Meerut Expressway package-3. Marc Staal Jersey
Urja app shows power cuts far graver than suggested by Centre
Power deficit and theft have long been India’s woes but state-wise data recently put up by the power ministry on Urja app paint an even grimmer picture. On an average, the country goes without power for about 17 hours in a month, with wide disparity among regions: for example, Haryana faces power cuts to the tune of ten times the national average and Uttar Pradesh, 8 times. These figures controvert the power deficit data which the Central Electricity Authority (CEA) puts out. The CEA, for instance, estimates the power deficit in Haryana to be nil and that in UP just 0.3%. Similarly, pan-India power theft is now 22% whereas it is over 35% in Bihar, Jharkhand and Uttar Pradesh, Urja app discloses, indicating that despite focused efforts to cut pilferage, India’s power-sector entities continue to suffer heavily from the scourge of theft. The UDAY scheme for reviving the debt-burdened state-run power distribution entities envisages the aggregate technical and commercial losses, the jargon for theft, at 15% by FY19. Although the power ministry has said it takes no responsibility for the accuracy of the Urja app data provided by state discoms, the divergence of the data with the CEA statistics is a cause for concern. It may be recalled that based on the inputs from the state, the CEA, a technical arm of the power ministry, had reported that the country would be power surplus in the current fiscal. Shedding light Wide disparity between CEA’s deficit data and power cuts reported on Urja app Not just Urja app, anecdotal evidences such as reports of widespread load shedding in several cities, including Noida and Gurgaon in the national capital region, also question the CEA claim. “We have suggested that the government and the CEA should not use the ‘power deficit’ criteria in its annual reports, as the definition varies from state to state,” Rajesh Mediratta, director of business development at Indian Energy Exchange (IEX), told FE. The exchange provides the country’s biggest platform for spot trade of power. Power cuts, Mediratta said, can be a function of weak distribution network where old substations and transformers aren’t able to carry the current load, forcing the discoms to regulate power in such areas during peak hours. The other reason could be the lack of financial prowess among discoms to buy more power to meet demand. Some states also regulate power to areas where losses are huge. However, power outrages due to these reasons are not covered under the CEA’s ‘power deficit’ data. “The CEA should create a category of ‘unserved demand’ which would encompass all the scenarios that lead to the curtailment of power supply. This will represent the power supply scenario in the the country more accurately,” Mediratta added. The Urja app provides the ranking of states on their performance in the sector on six parameters, including power theft. The other parameters include average power cut per month and pending consumer complaints. Although the data is taken from roughly 1,200 IT-enabled towns covered under the integrated power development scheme, it is fairly representative. The usual suspects namely Bihar, Uttar Pradesh, Haryana, Rajasthan and Jharkhand feature at the bottom of the pile on nearly all parameters. The performance of these states are symptomatic of the large debt accumulated by their discoms over years. However, despite high debt levels and accumulated losses, states like Tamil Nadu, Madhya Pradesh and Punjab fare rather well on most parameters. Experts say that such states would find it much easier to break even, as their fundamentals are not as weak. Curiously, Karnataka, which houses the country’s IT capital Bengaluru, features among the states where e-payment by consumers is yet to pick up. Just a little over 2% of Karnataka’s consumers pay their power bills online, while the pan-India figure is 7%. Bernie Parent Jersey
NTPC posts record output of 866.47 mn units in a day
State-run NTPC has recorded its highest-ever power generation capacity 866.47 million units in a day from sources like coal, solar, gas and hydro. “Powering India: Accounting for a quarter of India’s power generation, NTPC achieves its highest ever electricity output on 9th September,” Power Minister Piyush Goyal said in a tweet today. NTPC has produced 866.47 million units of electricity from various sources like coal, gas, solar and hydro on September 9, 2016, a senior official said. NTPC Ltd, on standalone basis, produced 782.32 million units, including 741.32 million units generated from coal based power plants on September 9. Earlier, NTPC had touched its peak power generation on June 3, 2016, at 846.1 million units. NTPC Ltd’s standalone production stood at 767.54 million units including 730.58 million units from coal based power plants. NTPC’s present installed capacity is 47,228 MW (including 6,966 MW through JVs/Subsidiaries) comprising of 44 NTPC stations (18 coal-based stations, 7 combined cycle gas/liquid fuel based stations, 1 hydro-based station), 9 joint venture stations (8 coal-based and one gas-based) and 9 renewable energy projects. The company’s gross power generation during the quarter ended June 30, 2016, rose almost 10 per cent to 64.55 billion units (BUs), over 58.69 BUs year ago. NTPC Ltd’s had reported 4 per cent rise in standalone net profit to Rs 2,369.53 crore for the first quarter of this fiscal due to increased power generation and better utilisation of coal-based plants. The plant load factor or proportion of capacity utilisation of the NTPC Ltd’s coal-based power plants was 81.35 per cent in April-June quarter of the ongoing fiscal. New York Giants Authentic Jersey
Promise of free power to farmers raises concerns in Punjab
Experts and social bodies have objected to Aam Aadmi Party (AAP) announcing free electricity to farm sector for 12 hours and have asked the party to review the decision in the larger interests of Punjab. The decision, if implemented, would have far-reaching consequences especially on the fast depleting groundwater in Punjab, they warned. NGO Safal Bharat Guru Parampara has asked AAP not to go for the political populist measure, but to ensure judicious use of groundwater to save it for future generations. The NGO had approached the National Green Tribunal (NGT) in February 2014 to stop the government from releasing tubewell electricity connections to save the groundwater. Safal Bharat Guru Parampara chairman P K Rana said, “Out of 145 blocks in Punjab, 110 have been put in the overexploited category where drawing of groundwater is not in the interest of future generations. While granting permission for releasing tubewell power connections in July 2015, the NGT had asked the government to use groundwater very cautiously. Now AAP has gone further in robbing the coming generations of precious groundwater. We will approach the Supreme Court against this decision.” Punjab has nearly 14 lakh tubewell power connections and its water table is falling by 80-88 centimetres per year. Gurbir Singh Dhillon, former chief engineer with irrigation department, termed the action of AAP as highly objectionable. He said, “Punjab is passing through very tough times on the groundwater issue. Not only 110 out of 145 blocks are in dark zones, but 45 blocks have been notified under red zone, where as per law water only for drinking purposes can be pumped. More free electricity will further aggravate the situation.” AAP MP Bhagwant Mann said, “We have studied the issue. Farmers need electricity for farm sector to survive. If the experts have negative opinion, we will further approach them to know more about it.” Otis Sistrunk Jersey
Mohali to get 5 new power grids, updated transformers
To address the problem of low voltage and power fluctuations in Mohali, five new grids would be set up by end of next year. Five grids of 66KV capacity would be installed at several locations in town to enable an even and sufficient electricity supply. Besides installation of new grids, more than 250 transformers would be replaced with new equipment. A senior official from the power department said that the central government has approved a grant for upgrading, replacing the old transformers and installation of new ones under the Accelerated Power Development and Reforms Programme (APDRP). An amount of Rs 40 crore has been approved for Mohali district for upgrading the electrical system and Rs 300 crore was approved for improving the basic infrastructure. In this project, all cables will be laid underground for a distance of over 40km in town and work is expected to complete by start of next year, said sources. As of now, Mohali district has a demand of over 59,000 units per day but the supply is barely over 35,000 units. Anandpur Sahib MP Prem Singh Chandumajra from SAD said, “The grant has been approved by the central government and has been issued for power reforms. I shall oversee the work. With reformation of the electric grid system, the gap between demand and supply would be reduced.” Jerry Rice Authentic Jersey
Adani, Essar get DRI notice for overvaluing imports of cap goods
The Directorate of Revenue Intelligence has issued show-cause notices to Adani Group and Essar group companies for inflating the value of capital goods imported for power plants. DRI is also believed to have prepared another show-cause notice, which is expected to be issued in the next two days to ADAG’s Reliance Infrastructure for allegedly inflating the value of coal imports. Officials said the overvaluation in the case of Adani and Essar was Rs 800 crore and Rs 500 crore, respectively. In the case of ADAG, the overvaluation is pegged at Rs 350 crore. TOI was the first to report on the alleged violations in December 2014. DRI has been investigating 40 power generating companies and traders for the past couple of years. According to DRI, some prominent public and private sector companies inflated the import value of coal beyond that prevailing in the international market. Some companies are being probed for allegedly inflating the value of imported capital goods. According to DRI, power tariffs were fixed based on the inflated values, which resulted in consumers paying higher charges. DRI has alleged that Adani Group and Essar have imported capital goods through intermediaries in tax havens. It claims that the companies’ objective was to siphon off money abroad while availing higher power tariff compensation based on artificially-inflated costs of imported coal or capital goods. While the coal was directly shipped from Indonesian ports to importers in India, the import invoices were routed through one or more intermediaries based in a third country such as Singapore, Dubai, Hong Kong and British Virgin Islands. These intermediary firms appear to be either subsidiaries of Indian importers or their front companies. This was the modus operandi used in the import of capital goods too. Investigations into overvaluation by other companies are still in progress. Anthony Brown Authentic Jersey
No transmission line, Spiti’s mega solar project in limbo
High cost involved in transmitting the power produced has almost put the 1,000 MW solar park project of Spiti valley in Lahaul Spiti district on back-burner. Most difficult challenge for the state government is to lay a transmission line to Spiti to evacuate the power from Himalayan region. Earlier, similar solar project in Ladakh was shelved due to same reasons. In 1997, state government had decided to lay 150km transmission line from Karchham in Kinnaur to Kaza in Spiti. Till date, an amount of Rs 50 crore has been spent on the project but the transmission line is still far from completion. A senior government official, requesting anonymity, said it would take another 20-30 years to lay new line to evacuate power. Sources said Power Grid Corporation of India Limited had termed the Ladakh green corridor project economically unviable. They said if 5,000 MW solar project in Ladakh could be unviable due to high cost of per unit production then similar conditions apply for Spiti where a new transmission line needs to be laid before executing the project. Himachal Pradesh State Electricity Board Limited director R K Sharma, who was earlier associated with project, said evacuation of power from the proposed 1,000 MW solar project in Spiti is a big issue. He said on the issue of laying transmission line to Spiti, Central Electricity Authority and Power Grid Corporation of India Limited has to take the final call. Lahaul Spiti MLA Ravi Thakur said that project is very much feasible provided Power Grid lays the transmission line as 2,500 bighas of land has already been identified for the project. Sources said that the proposed solar park would require around Rs 8,000-9,000 crore for completion. Germany has agreed to provide loans worth 125 million euros (about Rs 915 crore) for financing two green energy projects in Himachal Pradesh and Andhra Pradesh. Of the total amount, 57 million euros would be given to Himachal Pradesh. Cameron Meredith Womens Jersey
RIL-ONGC gas row: State firm to contest key findings of Shah panel
Oil and Natural Gas Corp (ONGC) will likely question the role the Directorate General of Hydrocarbons (DGH) played while Reliance was pumping out gas from the state firm’s fields and argue that its claim for compensation can’t be wished away just on the ground that the firm hadn’t developed the then commercially unviable fields, signaling the state firm’s resolve to challenge the government panel’s recommendations. The board of the country’s largest oil and gas producer recently discussed the report of the government panel, headed by retired judge A P Shah, which found Reliance Industries had unjustly gained by producing gas from the fields operated by ONGC. The board has decided to contest some of the key findings of the Shah panel report, which criticized the company for delayed field development and also recommended further scrutiny of “long periods of alleged inactivity on the part of ONGC in this case particularly.” The company will shortly write to the oil ministry rebutting key charges that the company had prior information but did not act on it promptly, and that it can’t claim compensation as it had not developed the field yet, company executives said. The company will also call into question the role of DGH in this matter, arguing that the government arm has access to all seismic data available with all operators and it should have acted in time, executives said. “ONGC had data only about its own fields. But DGH had access to seismic data of our fields as well as that of Reliance’s. It knew exactly where the wells were being drilled by Reliance. It should have acted in time,” said an executive. ONGC Chairman D K Sarraf said last week that the company had no information before 2013 that the reservoirs of Reliance and ONGC were linked and the panel ignored all the submissions the company made regarding this. He said the company’s technical and legal teams were studying the findings and it would be ‘very difficult’ to say whether ONGC will be compensated for gas loss. ONGC executives said the company will stake its claim for compensation as it is the contractor and therefore must get the economic benefits flowing from the fields. “We have spent money on making the discovery and intended to develop this. At that time, it was not commercially viable to develop this. But the delay in developing the field can’t be used to hold back compensation,” an executive said. The DGH had supported ONGC’s claim for compensation in a written submission to the panel but later its advocate took a different stand, arguing that the migrated gas produced by Reliance belonged to the government and ONGC had “no right whatsoever.” The committee concluded that “till the time ONGC produces gas from its blocks, it has no legal or possessory rights in the gas under its surface and contract area” and cannot seek compensation from Reliance. ONGC executives said the company was not delaying the project but it wasn’t commercially viable to produce then and this was borne out in a 2003 appraisal report of Reliance’s block, a copy of which the state firm had submitted to the Shah panel during the hearing. ONGC had told the panel that the appraisal report concluded that “a standalone working of the ONGC block Godavari PML would be cost prohibitive and may not be commercially viable; the drawing of gas from the connected reservoir (RIL’s KG-DWN-98/3 block) would deplete the gas reserves of ONGC’s Godavari PML block; and finally that all these findings of the 2003 Appraisal Report were known to RIL and Niko.” Shaun Alexander Womens Jersey
Trafigura puts India oil team in place as demand takes off
For Trafigura, the surge in Indian oil demand is just the start of a story that promises to run for long, and the commodities trader is busy putting together a strategy to ensure that it is not left behind in the battle for market share in Asia’s next big center for growth, after China. The company has just put together a team to be based in India to handle oil trading, expanding its ground presence beyond metals in the country. “We are also ramping up to serve what we see as an expanding market in India, both with imports of crude and trading of refined products,” Nicolas Marsac, Trafigura’s CFO for Asia Pacific, told S&P Global Platts in an interview Tuesday. India’s oil products demand grew 8.5% year on year in 2015 to 177 million mt, or 3.81 million b/d, as gasoline, LPG and naphtha saw double-digit growth in consumption. In the first half of 2016, India’s overall oil products demand surged 11.1% year on year to 97.62 million mt, or 4.2 million b/d. The IEA expects total Indian oil demand to average 4.3 million b/d in 2016. The Industry Leadership Award for Downstream is looking for companies with exceptional operational and financial performance in an ever-changing downstream environment. Nominate your company for a Platts Global Energy Award by September 12. Learn more and nominate The government’s clear policies for the oil sector, strong and sustained GDP growth, and a huge push towards making India a manufacturing hub are not only playing crucial roles in helping accelerate oil consumption move into top gear, but are also whetting the appetite of leading multinationals to set up shop in the South Asian nation. In addition to Trafigura’s plan to set up a trading team, there have been reports in the media about the Swiss trader’s interest in acquiring a stake in Essar Oil Ltd., India’s second-largest private refiner. But this has not been confirmed and company officials are tight-lipped about it. THE CHINA STORY While Trafigura pushes its expansion into oil in India, it is also aggressively moving ahead with its plans for China, where the liberalization of the oil sector from government control has been one of the biggest Asian oil growth stories since last year. “China’s oil liberalization is a very good opportunity and we are well-equipped for that. We are also expanding our infrastructure and presence in China. The independent refiners provide us a very good opportunity to boost our business volumes,” Marsac said. Trafigura has been one of the most active companies in trading with China’s independent refiners. Besides supplying foreign crude, it has also been the offtaker of a number of gasoline cargoes exported by these refiners. Sources said recently that Trafigura had struck a deal with two refineries — Luqing Petrochemical and Huifeng Petrochemical, also known as Wonfull — to supply crude to them and buy their oil products for export, but on preferential credit terms. It has been also making an effort to sell Iranian crude to independent refiners, according to sources. In addition to oil, the company is keen to expand its presence in LNG and bitumen in Asia, sources have said. Trafigura’s gross profit for the six-month period ending March 31 was $1.17 billion, down 23% from $1.52 billion a year earlier, giving a gross margin of 2.7%, CEO Jeremy Weir said in a statement while releasing the financial results in June. Its average volume of oil traded during H1 amounted to 4 million b/d, an increase of 46% from 2.7 million b/d in H1 2015 — leading to doubling in size of its oil trading book since H1 2012. Weir said in June that with US production falling sharply and demand continuing to grow strongly, for example for gasoline in the US and China, he believed that the much-anticipated rebalancing of supply and demand seemed within reach. Keith Kinkaid Womens Jersey