MoEF comes out with norms for infra projects in forests
Recognizing the threats of linear infrastructure project such as roads and railway lines to wildlife, the union environment, forest and climate change ministry (MoEF&CC) has come out with detailed policy guidelines on putting inadequate safeguards while clearing these projects to facilitate wildlife movement and prevent their deaths. The guidelines come in the wake of severe criticism of the MoEF&CC for clearing infrastructure projects through wildlife habitats without due safeguards and the ministry is also hoping that standard wildlife safeguards for such projects will ensure speedy clearances. Infact, just a month ago it cleared a road widening project through the Kanha-Achanakmar tiger corridor in Chhattisgarh despite calls from National Tiger Conservation Authority (NTCA) and Wildlife Institute of India (WII) to reject it. Each year, several endangered wildlife species such as tigers, leopards, elephants and a range of other wildlife get killed as they try to cross highways and railway tracks that bisect wildlife habitats. Besides roads and railway, power transmission lines and canals also kill wildlife as they get electrocuted or drown. The draft policy guideline, ‘eco-friendly measures to mitigate impacts of linear infrastructure on wildlife’ has been prepared by the WII and the ministry has now sought public suggestions and objections on it. For the first time, standard recommendations and engineering solutions have been issued through the report, applicable to specific wildlife and habitats. For instance, it has said that for projects that pass through tiger landscapes, both underpasses and overpasses are potential engineering solutions for reducing the impact of these projects. “A minimum span of 30m with a height of 5m and width of 5-8m would work for most species in tiger landscapes,” the report has said. In the case of elephants, the report has recommended that elevating a road project on pillars is the best solution. If it is an underpass, it should have a height of at least 8m and width of 12m for smooth movement of the biggest land animal, the report added. Monkeys and squirrels can use canopy bridges that are built on railway tracks while pipe culverts are ideal for smaller mammals, reptiles and amphibians, the WII report said. The guidelines also highlight that infrastructure projects are a barrier for wildlife that restrict and prevent their movement. They disturb wildlife habitats and affect natural processes, which in turn may have long-term implications for wildlife such as genetic drift. According to the ministry report, National Highway-7 stretch between Maharashtra and Nagpur, that passes through Kanha-Pench wildlife corridor sees an average traffic volume of 452 vehicles/hour, comprising of all kinds of vehicles. As per the report, a death zone, where 375-600 cars pass per hour, only about 25% of the animals will be able to cross. In sections of the highway where more than 600 cars pass per hour, animals are largely repelled from crossing, preventing them from moving to newer habitats. The report has recommended that on sharp bends and high-speed networks where applying brakes is not possible, railway tracks should be be barricaded while giving access to elephants at other locations. Dna had reported earlier this month that more than 400 railway trains (passenger and goods) pass through the country’s sensitive wildlife habitats. Austin Blythe Jersey
NHAI to shake dust off three stalled road projects in State by floating fresh tenders
After taking over three stalled road projects in the State, including the Chennai-Tada Tollway road from private developers for various reasons, the National Highways Authority of India (NHAI) hopes to revive them by inviting fresh tenders for these works soon. According to National Highways Authority of India sources, work began on six laning the Chennai-Tada stretch (43.4 km), awarded to Larsen and Toubro Limited, in April 2009. The project was scheduled for completion by 2011. But due to land acquisition problems, the project remained incomplete and deemed a non-performing asset by the company last year. Thirty per cent work on widening NH-5 is pending due to delay in acquiring lands within Chennai metropolitan area. Similarly, work on the 93 km Poonamallee-Walajahpet (Essel Infrastructure limited), six-lane project, commenced in 2013 but stalled with less than 20 per cent work finished, primarily due to payment default issues. Officials of NHAI told Express that the take over of both the projects, which fall under phase V of National Highways Development Project of NHAI, was completed by May. As far as the 32 km Chennai Bypass toll road (MEP infrastructure developers) is concerned, National Highways Authority of India officials say although work has been completed entirely, disputes arose between the concessionaire and National Highways Authority of India on issues such as toll evasion and fee rule notification. “We have taken over the maintenance work of the Bypass road, but we will invite fresh tenders for it along with the other two projects, by early next year. The Poonamallee-Walajahpet road, with only less work done, will be treated as a new project,” the official said. Junior Seau Jersey
NTPC Group looks to top 50 GW installed capacity by March
State-owned NTPC Group is gearing up to cross the milestone of over 50,000 MW installed power generation capacity by March-end 2017 with expected addition of over 4,630 MW. “The NTPC Group, including its joint ventures and other subsidiaries, will have over 50,000 MW of installed power generation capacity by the end of this fiscal,” a senior power ministry official told PTI. The NTPC Group has an installed power generation capacity of 47,228 MW, which includes 800 MW of hydro and 360 MW of solar energy. The official said, “Even if there is some slippage in capacity addition, the NTPC Group as a whole will cross the milestone of 50,000 MW by March-end 2017.” The company is expected to commission 550 MW of solar power project at Mandsaur, Ananthapuram and Badhla. Besides, thermal power generation capacities at Kudgi (1600 MW), Bogaigaon (250 MW), Mauda (660 MW), Solapur (660 MW), Nabinagar (250 MW JV) and Meja (660 MW JV) are in line for commissioning by March-end next year. Various projects with an aggregate capacity of around 24,000 MW are under implementation at 23 locations across the country. This includes 4,050 MW being undertaken by joint ventures and subsidiary companies. Out of the total capacity under implementation, 1,329 MW is based on diversified sources of renewable energy. The company is quickly moving towards its ambition of achieving a solar portfolio of 10 GW out of the 100 GW target of the government by 2022. Over 1,700 MW renewable energy projects of the company are under execution. Chipper Jones Authentic Jersey
Power sector debt worth Rs 1.34 trillion at high risk: Crisil
Nearly Rs 1.34 lakh crore worth of debt on operational and under-construction power projects is at risk, says ratings agency Crisil. As per Crisil estimates, around 17,000 MW of operational power projects with a debt of Rs 70,000 crore and additional 24,000 MW under-construction projects with a debt exposure of around Rs 64,000 crore are at high risk. “These operational projects are those, which are facing the consequences of aggressive bidding for coal supplies or facing huge cost overruns, and those with gas-supply issues,” Crisil Senior Director Sudip Sural said. He said over the period, the credit growth to the sector will moderate to 5 per cent over the next three years as compared to an average of 18 per cent witnessed in the last five years. “This is primarily because the discoms debt which has been the key components of this exposure, is going to go out of the banking system over a period of time and move to the fold of the state government because of the UDAY scheme,” Sural said. Also, fresh investments in the thermal generation sector will remain muted, while on the other hand the capacity addition in the renewable space will give some fillip to the credit growth, he said. As far as delinquencies are concerned, Crisil noted, that while the gross NPAs in the sector have increased from 1.3 per cent to 4.4 per cent in financial year 2015-16, the stressed assets as measured by gross NPAs and restructured standard assets continue to remain steady at 14 per cent. “They have not seen an increase primarily on account of the movement of Rs 75,000 crore out of this category on the account of UDAY scheme. So, essentially on the restructured assets quantum have come down,” Sural said. “But even with the reduction it continued to be at elevated level in the sector,” he added. Crisil further observed that in the discoms space banking sector debt is expected to come down significantly over the next 3 years with UDAY scheme making increasing impact. “What we will see is that state governments will take over the principal financiers to discom. As per our estimates as of March 2019, of the roughly Rs 4.6 lakh crore exposure to discoms Rs 3.4 lakh crore would be coming in from state governments,” he noted. Art Monk Jersey
IDFC Alternatives buys 3 Punj Lloyd solar projects
The India infrastructure fund of IDFC Alternatives is buying three solar projects in Punjab and Rajasthan from Punj Lloyd Infrastructure as part of the parent’s plans to establish a presence in the renewable energy space through acquisitions — as much as 1,000 megawatts in a year or so. The deal on the three solar projects with a total capacity of 45 megawatts was signed on Saturday evening, said people with knowledge of the matter. IDFC paid about Rs 100 crore to wholly acquire the three projects from the Punj Lloyd unit, they said. Aditya Aggarwal, partner, infrastructure, IDFC Alternatives, confirmed the deal but declined to disclose the price. This is IDFC’s second investment in the renewable energy space, having acquired a 25 MW wind power plant from Jindal Steel & Power Ltd for an undisclosed valuation in October. The company wants to put together a renewable energy portfolio in 12 to 18 months through acquisitions with a capacity of 500 to 1,000 MW, said people with knowledge of the matter. It envisages assets with capacity of 250 MW in six months based on solar, wind and hydro energy. IDFC, which plans to float a platform to hold its renewable energy assets, is creating an in-house team to manage them, said some of those cited above. This will include the recruitment of a CEO and CFO. Experts said the renewable energy sector is in consolidation mode. In June, Tata Power agreed to acquire Welspun Enterprise’s renewable energy business for an enterprise value of around $ 1.4 billion. Going ahead, many existing players in the renewable energy space will give way to newer investors, including private equity firms, they said. Theo Riddick Womens Jersey
Fewer power tariff categories likely in Andhra
To discuss ways and means to simplify power tariff structure, the Andhra Pradesh electricity regulatory commission (APERC) will hold a joint meeting of the state advisory committee (SAC) and the state coordination forum (SCF). The meeting will be held in Tirupati on Wednesday. In a press release on Sunday, the APERC said the meeting will discuss ways to reduce the number of tariff categories for the benefit of around 1.5 crore electricity consumers in the state. “We are holding the meeting with a view to protecting the interests of power consumers and developing the power sector by ensuring financial stability of power utilities,” said chairman of APERC justice Bhavani Prasad. The joint meeting is being convened for the first time to facilitate an elaborate discussion on issues pertaining to power sector, the press release added. Laremy Tunsil Womens Jersey
Pradhan asks states to help bring petro products under GST
Oil Minister Dharmendra Pradhan today nudged the states to agree on bringing all petroleum products under the Goods and Services Tax (GST) regime. Speaking at the Global Investors Meet here, he said petroleum is currently under ‘state list’ for the the purpose of taxation under GST. “GST Council will decide on this (taxation of petroleum products). On behalf of the industry, I would request the states to allow petroleum products to be brought under GST taxation,” he said. As per the GST Constitutional Amendment Bill, petroleum products like LPG, kerosene and naptha would attract GST. However, other products — crude oil, natural gas, petrol, diesel, high speed diesel and aviation turbine fuel — have been excluded from GST for initial years. Hence, these products will continue to be taxed in the hands of the states as they are being taxed at present. The GST Council, which consist of Union Finance Minister and state counterparts, will decide on the date of inclusion of these products in the GST basket and rates thereon. Pradhan also asked Madhya Pradesh Chief Minister Shivraj Singh Chouhan to support bringing all petroleum products under the Goods and Services Tax (GST) regime. “In the last 3-4 years, there is a healthy growth of petroleum products in Madhya Pradesh. I will request the Chief Minister that he should agree to (petro items coming under) GST. There would be no loss to the state on account of taxation of petroleum products,” he said. With two different kinds of taxation structure, in the new regime the oil and gas industry would have to comply with both the current tax regime as well as GST. According to experts, GST would have a negative impact on the oil and gas industry due to compliance with dual taxation regime and non-creditable tax costs. Pradhan said petrol consumption in rural areas is growing by 10 per cent every year. On the occasion, there were total seven MOUs signed today for setting up solar power plants and oil marketing and infrastructure facility in the state. Neyveli Lignite Corp (NLC) and Madhya Pradesh New and Renewable Energy Department (MPNRED) signed an MoU to set up 1,000 MW solar power plant, followed by an agreement between IOC, OIL India and Madhya Pradesh Urja Vikas Nigam Ltd (MPUVN) for 500 MW solar facility, NTPC and MPNRED for 500 MW solar power plant, PTC and MPNRED for 500 MW facility and NHDC Ltd and MPNRED for 140 MW solar project. Besides five MoUs on solar projects, there were two agreements signed for oil marketing and infrastructure facilities. One MoU was signed between BPCL and MPNRED for setting up an ethanol plant and the other by IOC and MP Trade and Investment Facilitation Corporation (TRIFAC) for developing oil marketing infrastructure in the state. State-run companies like NTPC, Neyveli Lignite will work towards making the state a solar power hub. Pradhan said there are 1.65 lakh houses in the state and 56 lakh family had LPG connection till 2014. “In the last two years, we have added 30 lakh more, and in the coming two years in MP, 50 lakh more LPG connections will come,” he said. Keith Tkachuk Jersey
Soon, a Policy for Contract Extension of Oil & Gas Blocks
The government is framing a policy that will guide Cairn India’s request for renewal of contract to operate its prolific Barmer oil and gas block, as well as 27 other energy blocks, lifting uncertainty around contract extensions that forced a legal tussle between the Vedanta group firm and the government. Cairn India, controlled by billionaire Anil Agarwal, is seeking to extend the contract to operate the oil and gas block in Barmer, Rajasthan, by 10 years after the initial 20year agreement runs out in 2020. Cairn, which controls about a quarter of the country’s crude output, has been urging the court for several months now to force a deadline on the government for deciding on the issue. An oil ministry official said that instead of taking a company-specific decision for Cairn India, the government has decided to frame a policy that will guide the contract extension in 28 blocks, including that of Barmer. This group of 28 blocks, the official said, is referred to as the Pre-NELP `exploration’ blocks, or the blocks that were auctioned before the NELP , or New Exploration Licensing Policy , came into being. In March, the cabinet had approved a renewal policy for Pre-NELP `discovered’ fields that also applied to another set of 28 smalland medium-sized discovered fields. Under this policy, the government’s share of profit petroleum during the extended period of contract shall be 10% higher than the share during the initial period. During the extension, the royalty and cess shall be payable at the prevailing rates by all the contractors in proportion to their participating interest. The policy also outlined guidelines on pre-requisites for grant of ex tension, cri terion for evaluation of a request, a time-frame for consideration of a request, duration of extension, seat of arbitration, etc. The oil mini stry official, who did not want to be named, did not say if the new policy being considered for the Pre-NELP exploration blocks will be a copy of the policy announced in March. He said the terms and conditions are still being contemplated. The terms for extension are at the heart of the delay with both the government and the contractor, Cairn India, trying to extract a larger share of profit for itself in the new contract. Kenneth Dixon Jersey
Pradhan launches Ujjwala LPG scheme in Amethi
Union minister of state for petroleum Dharmendra Pradhan on Saturday attacked Amethi MP Rahul Gandhi for turning down the government’s formal invite to attend the inauguration of the Rajiv Gandhi Petroleum Technology Institute (RGPTI). Mocking Rahul’s absence at the inauguration of the RGPTI permanent campus citing his “busy schedule”, Pradhan said it was not unnatural that a “big man” like Rahul was unable to find time for his constituency. Congratulating the RGPTI management for naming the auditorium where the function was held after Swami Vivekananda, Pradhan also proposed, on the basis of a voice vote, that a statue of Vivekananda be installed there and be unveiled by Amethi MP Rahul Gandhi, this time “on a date of his convenience.” Launching the NDA government’s ambitious Ujjawala scheme, the minister gave away 1,000 free gas connections to Amethi’s poor. On his arrival in Amethi, a Congress-BJP poster war was also on display between Fursatganj and RGPTI, with both parties claiming credit for the permanent campus. “In eight years since the enactment of the law for RGPTI, the UPA government gave Rs 129 crore, while the Modi-led NDA government doled out Rs 302 crore,” said Pradhan. On Friday, the Congress vice-president had tweeted his letter to Pradhan in which he had said the UPA government had first proposed the idea of setting up RGPTI. Referring to the decision to retain the name of the institute after late ex-prime minister Rajiv Gandhi, Pradhan said a debate should be conducted on why important institutions are named after family members. “What about Netaji Subhash Chandra Bose, Sardar Vallabhbhai Patel, Swami Vivekananda, Lal Bahadur Shastri and many others who contributed to the freedom struggle?” Pradhan asked. Pradhan also promised a skill centre on the campus to ensure 70% jobs to Amethi’s people. Captain Munnerlyn Authentic Jersey
Petronet seeks cut in Gorgon LNG price
Petronet LNG Ltd, India’s largest liquefied natural gas importer, is seeking at least 10 per cent cut in price of LNG it plans to buy from Australia’s Gorgon project. Petronet LNG, a private firm whose chairman is the oil secretary, had in August 2009 signed a 20-year deal to buy 1.44 million tonnes per annum of liquefied natural gas (LNG) at a price equivalent to 14.5 per cent of the prevailing oil rates. The indexation agreed was one of the highest in the world. “The world has changed since then and LNG deals are being done at much lower indexation,” an official said. Petronet had late last year renegotiated price of the long-term deal to import 7.5 million tonnes per year of LNG from Qatar, helping save Rs 8,000 crore. At that time it had also signed a contract to buy an additional 1 million tonne per annum till 2028. “That deal for an additional 1 million tonne was at 13.05 per cent of the ruling Brent price. So naturally, the expectation is that the Gorgon should lower the indexation to a minimum 13 per cent,” the official said. Petronet has written to Exxon Mobil, the seller of Gorgon LNG, for reworking the price. “Negotiations are on,” he said. LNG in spot or current market is available at USD 5-6 per million British thermal unit where as Gorgon LNG at current formula will cost USD 7.25 per mmBtu at an oil price of USD 50 per barrel. After adding 5 per cent customs duty, shipping cost and that of converting liquid gas back into its gaseous state, the landed price of the Australian gas will be close to USD 9.5 at the Kochi port where it is supposed to be delivered. State-owned gas utility GAIL India, one of the four PSU promoters of Petronet, had way back in 2013 sought review of the Gorgon LNG price formula. Its the then Director (marketing) Prabhat Singh, who now is the Managing Director and CEO of Petronet LNG, had in June 2013 written a letter seeking reduction in price of Gorgon LNG. Sources said the case of renegotiating the Gorgon deal has strengthened after Petronet last year got RasGas of Qatar to lower the rate for 7.5 million tons per annum LNG it supplies under a 25-year long term contract since 2004. The price of imported LNG under this agreement had been linked to crude oil (Japanese Customs Cleared Crude or JCC) and had a concept of floor and ceiling indexed to last 5-year average. The rate thus arrived was higher than spot LNG. Petronet sought renegotiation of the deal and RasGas agreed to modify the pricing formula to link it with last 3- month average rate of Brent crude oil, they said. GAIL, Indian Oil, Bharat Petroleum and Oil and Natural Gas Corp (ONGC) hold 12.5 per cent each in Petronet. Petronet was to get Gorgon LNG by the end of 2015, but supplies have been deferred to 2017. Kevin Hayes Womens Jersey