Uttarakhand electricity regulator wants Power Corpn to get long-term supply deals
The central as well as Uttarakhand government had envisioned round-the-clock supply of electricity to consumers. However, with the increase in demand and absence of capacity addition, the state has been witnessing shortages even in summer months, when hydro-electric supply levels are high. Keeping this in mind, the Uttarakhand Electricity Regulatory Commission (UERC) has been pushing Uttarakhand Power Corporation Ltd (UPCL) to enter into long-term commitments with electricity generators. At present the installed capacity of the generating stations under the control of Uttarakhand Jal Vidyut Nigam (UJVN) is about 1,250 megawatt (MW), while actual generation is almost 900 MW in summer. Power available from central generating stations is about 700 MW and peak demand during summer months in the state is around 2,000 MW, thereby resulting in shortage of about 500 MW. For the first time, UERC has approved UPCL to enter into long-term (25-35 years) power purchasing agreements (PPAs) with thermal (gas) and hydro generators. Significant reforms are taking place in the power sector and funds are available to the distribution companies both from the central and state governments to improve power network, reduce losses and ensure quality and reliable supply of power at affordable prices. It is learnt that having taken care of the gap in demand and supply of power, UERC now intends to focus on ensuring that the consumers get optimum services from UPCL both in terms of quality and reliability of supply and other commercial issues pertaining to billing and metering. The commission has now decided to get this monitored by the state government. In this regard, a meeting was held in UERC’s office on Thursday under its chairman, Subhash Kumar, with the commissioner of Garhwal and district magistrates of all districts in Garhwal region, besides chief engineers, superintendent engineers and executive engineers from UPCL. Al Davis Jersey
Energy projects worth Rs 29,000 crore stuck in Vishakhapatnam
Two major projects in the energy sector with a combined investment of around Rs 29,000 crore by power PSU National Thermal Power Corporation (NTPC) and Trina Solar (Singapore) Science and Technology Energy for Visakhapatnam district are in limbo for almost a year now due to various obstacles. While NTPC had planned to set up a 4,000 MW super thermal power project at Pudimadaka, about 60 kms south of Vizag city at an investment of Rs 26,000 crore, Trina Solar was expected to set up a Rs 2,800-crore high efficiency solar cell and module production project at Atchuthapuram in the district. According to sources, even though NTPC had held a public hearing in August last year, the project is yet to take off as a decision is pending on coal allocation for the proposed thermal power plant. Sources said while Union power and coal minister Piyush Goyal had promised fuel linkage from domestic coal mines, a formal order on it is yet be issued due to which the project has not moved ahead. “Earlier, there were plans to import coal for the project planned at Pudimadaka, but later it was decided to use domestic coal. We need high GCV coal for higher productivity and we are expecting coal linkage from the Raniganj coalfield in West Bengal as it has high GCV (gross calorific value),” an NTPC official said. The sources said environmental clearance for the project and awarding of tenders can be completed only after the coal linkage is finalised for the project. NTPC Pudimadaka super thermal power project is expected to be developed on an area of around 1,500 acres. Meanwhile, Trina Solar had inked a memorandum of understanding to set up a Rs 2,800 crore plant at Atchutapuram, which would provide employment to around 3,500 people. Andhra Pradesh Industrial Infrastructure Corporation (APIIC) sources said Trina Solar had been allotted around 90 acres for the project. Trina Solar had planned to set up a high efficiency solar cell and module production project in two phases with a capacity of 700 MW cells and 500 MW modules in the first phase and subsequently expanding it to 1.4 GW cell and 1 GW module capacity in the second phase. “The foundation stone for the project was laid in January earlier this year but the company is expecting more incentives from the state government including a dedicated power line before moving forward. It also wants the government to develop the plot by increasing the height of the land by half a metre. The project is proposed on around 90 acres and to increase the height will be very costly,” said an APIIC official. He said the state government has already issued various incentives as per the AP electronics policy. J.T. Brown Womens Jersey
GAIL approves orders for US$1.94 billion JHBDP Project
GAIL India has approved orders for the pipe laying work on a 345 km section of the Rs 129.40 billion (US$1.94 billion) Jagadishpur- Haldia and Bokaro-Dhamra Pipeline (JHBDP). JSIW Infrastructure and IL&FS Engineering & Construction commenced pipelaying work between Phulpur and Dobhi last month. The work is part of phase-IB, which is targeted for completion by December 2018. India’s Cabinet Committee on Economic Affairs recently announced it would provide 40 per cent of the total cost of the project, an estimated Rs 51.76 billion (US$774 million), to be supplied over the next five years. Indian Minister for Petroleum and Natural Gas Dharmendra Pradhan said “Our Honourable Prime Minister has taken a clear and committed stand to move towards a cleaner fuel regime. “It is a delightful moment for us as a cleaner and greener energy path has been chosen for Eastern India that shall be affordably accessible to the masses.” GAIL India Chairman and Managing Director Bhuwan Chandra Tripathi said “Pipeline and city gas projects, under JHBDPL in Eastern India, are a big step towards accomplishment of national development goals based on natural gas. “The company will expeditiously work to execute the entrusted projects in tune with the Government’s objectives as per schedule.” The 2,359 km pipeline network will connect the east of India with the national gas grid, and is expected to be completed by the end of 2020. Joonas Donskoi Jersey
GAIL scraps multi-billion dollar ships tender
In December 2011, GAIL signed a deal with Cheniere Energy Partners to buy 3.5 mtpa of LNG from the Sabine Pass Terminal in Louisiana on FoB basis. Deliveries would start between March and August 2018. GAIL (India) has cancelled tender to hire newly built ships to ferry liquefied natural gas (LNG) from the US as there have been few takers for the multi-billion dollar contracts. Sources told FE that even though two Japanese consortia participated in the bidding process that lasted two years, they could not be finally selected due to the stringent indigenisation norms. GAIL, sources said, would now look to charter LNG ships for short terms of three to four years, till a new proposal is made, a senior official told FE. There were no takers for the tender even after an aggressive diplomatic push from India’s external affairs minister Sushma Swaraj and petroleum minister Dharmendra Pradhan. No Indian shipyard has ever built a vessel to transport LNG and foreign giants based in Korea and Japan are not keen to accept India’s request to form a joint venture and transfer technology here. The delay in finalising the tender could land GAIL in a crisis for not having LNG vessels on time to import gas from the US, which is expected to start from 2017. According to the initial plan, the vessels build overseas are to be delivered between January-May 2019 and one out of three made locally are to be ready between July 2022 and June 2023. GAIL has floated the latest tender for time-charter hiring of up to 11 ships for 15 to 18 years through international competitive bidding. Exact number of ships to be chartered will be decided in due course. The tender was floated on September 15, 2015 with a due date of submission of December 14, which was later extended till February 29, 2016. The tender was first launched with a cut off date of October 30, 2014, which was later extended several times to December 4, January 6 and February 17 next year. GAIL did not respond to an email seeking its comments on cancelling the tender. The two Japanese bidders who participated in the last bid include – a consortium of Mitsui OSK Lines (MOL)-Nippon Yusen Kabushiki Kaisha (NYK Line) and Mitsui & Co. The second consortium comprises Mitsubishi Corporation-Kawasaki Kisen Kaisha Ltd (K Line) and GasLog. Industry watchers feel the tender conditions are too stringent to be met. This is at a time when most Indian shipmakers do not have the financial muscle to spent capex for upgradation of shipyards. For the shipyards there are two challenges — to find the technology as well as investors. Moreover, such an opportunity has emerged for the first time in India and hence it would take time to fructify. In December 2011, GAIL signed a deal with Cheniere Energy Partners to buy 3.5 mtpa of LNG from the Sabine Pass Terminal in Louisiana on FoB basis. Deliveries would start between March and August 2018. In April 2013, GAIL booked another 2.3 mtpa capacity to export LNG from the Dominion Cover Point terminal in Maryland, delivery of which is expected from end-2017. After a government directive, GAIL was forced to take out a tender with a clause that out of three LNG vessels one has to be built in India. Generally, it takes 30 months for Japanese and Korean companies to deliver an LNG ship Jerick McKinnon Jersey