Land deal for Patna airport expansion likely today
The Airports Authority of India (AAI) and Bihar government will sign the land transfer agreement on Tuesday for expansion of the terminal building of Jayaprakash Narayan International Airport. Union civil aviation secretary R N Choubey and Bihar chief secretary Anjani Kumar Singh would hold a meeting for transfer of around 13 acres of land near the airport. Apart from Patna airport, discussions will also be held for development of terminal buildings at the Indian Air Force airbase at Purnia and Darbhanga as well. Besides, the AAI is also seeking 200 acres of additional land at Gaya International Airport for development of its apron and a new terminal building. “The AAI board is keen on commencing the works on expansion of terminal building at Patna airport at the earliest and complete it in two years time,” a senior AAI official said. The AAI board gave its consent last month for transfer of around 11 acres of its land at Anisabad to Bihar government in return of 13 acres of land of the state hangar, depot of Indian Oil Corporation (IOC) and 6.5 acres of land owned by the Special Task Force (STF) adjacent to the airport. Henri Jokiharju Authentic Jersey
New norms hit airlines’ ancillary revenue
The government’s passenger-centric initiatives such as limiting cancellation charges and reducing passenger baggage fees have hit airlines’ revenue from ancillary sources. IndiGo, which announced its September quarter results last week, saw its ancillary revenue record a sequential decline of 3.8 per cent, compared with the double-digit growth in previous quarters. For the September quarter, revenue from ancillary sources stood at Rs 558.4 crore compared to Rs 581 crore in the April-June period. The same had grown 9.2 per cent and 3.1 per cent, sequentially, in the previous two quarters. “The ancillary revenue figures were impacted due to the Director General of Civil Aviation (DGCA)’s new rules, limiting charges on excess baggage and booking of tickets closer to the date of departure due to low-ticket prices,” the management said during a conference call with analysts. The decline is likely to be similar for other airlines as well. Charlie McAvoy Jersey
Purti Group co develops bio-CNG for vehicles
Manas Agro Industries and Infrastructure Limited (MAIIL) of the city, an extension of Purti Group of Industries, has developed a process of producing bio-CNG (compressed natural gas) that can be used as fuel for vehicles. MAIIL is planning to set up fuel stations or bio-CNG dispensing units in the city in about 8-9 months. The fuel will be produced from molasses and will be carried in cascades to the fuel stations unlike other CNG which is transported through pipeline. Manish Umale, general manager of MAIIL, told TOI that the bio-CNG would cost Rs40-45 /kg and a scooter can run 65km in one kg. “This is very cheap compared to the conventional petrol or diesel which cause pollution to different extents. Bio-CNG is environment-friendly and the Petroleum and Explosives Safety Organization (PESO) has given nod to use biogas as fuel,” said Umale. The idea for bio-CNG came from Spectrum Renewable Energy Pvt Ltd of Hyderabad which is testing the use of this new fuel in commercial vehicles. Bio-CNG is being produced at Warna Nagar near Kolhapur. Detailing the process of bio-CNG production, Umale said molasses generated while manufacturing sugar is mixed with rectified spirit and ethanol which forms a sludge. This sludge is used to produce methane which is then purified and filled in cascades at high pressure. In the process, some sludge remains which can be used as fertilizer. “We would be transporting the sludge from our Bela plant to city in cascades which will be installed in our fuel stations. Users can fill bio-CNG in vehicles from these outlets which are expected to be ready in less than a year,” said Umale. Considering the benefits, government needs to make changes in rules and infrastructure so as to allow use of bio-CNG as fuel. The government should allow converting existing vehicles like scooters or three wheelers into CNG-friendly vehicles by attaching a conversion kit in it. Old vehicles too can be permitted to be converted into bio-CNG vehicles. An Israeli company I Tuk is learnt to have developed a kit that is already being used in Gujarat. Kawann Short Jersey
HPCL to take 25 per cent stake in proposed 60 million tonnes refinery
Hindustan Petroleum Corp (HPCL) will take 25% equity stake in the proposed 60 million tonnes refinery on the west coast that the state oil companies plan to build, its chairman has said. The proposed refinery–cum-petrochemicals complex will cost about Rs 1500 billion, M K Surana, chairman and managing director of HPCL, said. Indian Oil Corp, the largest of the three oil companies partnering for the project, will take 50% stake in the proposed refinery, Surana said. Bharat Petroleum will take another 25%. Marshall Faulk Authentic Jersey
OMCs report strong gross refining margin for September quarter
The country’s oil marketing companies (OMCs) have so far reported healthy gross refining margins (GRMs) for the September quarter. Analysts expect the trend to continue but pressure on marketing volumes for the state-run OMCs in the bulk fuel business would be a key item to look for. So far, Reliance Industries (RIL) and two of the three state OMCs, Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOCL) have reported their numbers for the quarter. RIL reported GRM at $10.1 a barrel, lower from $10.6 a year before. “Singapore GRMs have again improved in the October month touching $6 a barrel against the last quarter average of $5.1. The next quarter might also see the same healthy trend,” said an analyst from a domestic brokerage firm, who did not wish to be identified. In the September quarter, average GRM for BPCL was $3.08 a barrel against $3.87 a year before. IOCL reported $7.19 a barrel in the April-September period, against $5.76 a barrel a year before. Hindustan Petroleum Corporation will report its financial performance on Tuesday and analysts expect the company to report a similar trend. “We expect the GRM trend to continue for the state-run OMCs to be in the same range as seen so far and for Reliance Industries in double digits,” said a second analyst from a domestic brokerage firm, who did not wish to be identified. The state OMCs might come under stress over marketing volumes and as private competition rises. Both BPCL and IOCL have reported a sequential decline in their marketing volumes for the September quarter. BPCL’s sales were lower at 8.93 million tonnes, from 9.73 mt in the sequential quarter. “Private players are capturing markets and in the bulk deal market, they have seen a significant rise,” said the first analyst quoted earlier. According to an IDBI Capital report on RIL, the company’s market share in bulk diesel sale improved from 3.8% in the June quarter to 4.5% in the September one. According to an October 28 report of Elara Capital on IOCL, there was a sequential decline in their marketing volumes, excluding exports, to 19.7 mt in the September quarter from 21.38 mt in the June one. “This happened only because of some losses in the tenders for the bulk consumer business; it has not been the trend,” said A K Sharma, director-finance at IOCL, in an investor call after its earnings announcement. The state OMCs might face further heat as stronger entities such as BP and Rosneft enter the retailing business. “With the increased competition, we need to see if marketing volumes or the margins come under pressure. Either of one will see an impact,” said the second analyst cited earlier. Armani Watts Authentic Jersey
Look who’s asking for currency: Petroleum ministry knocks at FinMin doors
Needs cash for retail outlets; if the finance ministry agrees, banks will have to give about Rs 2.65 billion of smaller denomination notes daily to fuel outlets. India’s ongoing currency crisis has taken a fresh turn, with the petroleum ministry now knocking at the doors of the finance ministry for Rs 50,000 worth of smaller denomination notes to each of the nearly 53,000 fuel retail outlets in the country on a daily basis. This is meant to tide over the currency shortage. If the finance ministry agrees to this, banks will have to give about Rs 2.65 billion of smaller denomination notes to fuel outlets of public sector oil marketing companies in the country every day. After the announcement by Prime Minister Narendra Modi that Rs 1,000 and Rs 500 currency notes would be demonetised, sales at fuel retail outlets have increased by 15-40 per cent, as the government had allowed these outlets to accept the old currency notes. The move by the petroleum ministry comes after the railways ministry, too, approached the Reserve Bank of India to supply lower denomination notes to the national carrier with immediate effect. According to multiple sources close to the development, the Dharmendra Pradhan-led ministry has taken this proposal by retailers to the finance ministry. “We have forwarded the proposal by retailers to the finance ministry to provide them with smaller notes or else set up currency exchange centres at every petrol pumps in the country,” said a ministry official, who does not want to be named. The government today extended the date for accepting old denomination notes at petrol pumps and railway stations till November 24 considering the currency crunch faced by common people. Following a shortage of smaller notes, petrol pumps in the country are accepting refilling of Rs 500 and Rs 1,000 and not giving any change. “Our sales have increased by about 40 per cent on a daily basis since the government’s decision. We have asked the government to disburse Rs 50,000 to every petrol pump or set up currency exchange counters on outlets,” said Ajay Bansal, president of All India Petroleum Dealers’ Association. India has about 56,190 fuel retail outlets, out of which state-run Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd have about 52,604 outlets. On a monthly basis, each of these outlets sell 170 kilolitre of fuel. “While the customers are demanding changes for higher denomination notes, banks are not giving us small notes. At the same time, our sales have increased from 11 kilo litre to about 20 kl per day after the announcement,” said Rajiv Chadha, owner of a Hindustan Petroleum Corporation outlet at Bahadur Shah Zafar Marg in Delhi. According to All India Petroleum Dealers’ Association, in many places across the country petrol pump staff is being assaulted and man-handled for smaller denomination notes. In 2015-16, the overall fuel demand zoomed to 183.5 million metric tonne from 165.5 million tonne, compared to the previous financial year. While diesel consumption increased by 7.5 per cent to 74.6 million tonne, gasoline usage rose 14.5 per cent to 21.8 million tonne. Shaq Thompson Jersey
Petrol price cut by Rs 1.46 a litre, diesel by Rs 1.53
Petrol price was cut down by Rs 1.46 a litre and diesel price by Rs 1.53 per litre on Tuesday. The new prices will be effective from Tuesday midnight. On November 5, petrol price was raised by 89 paise per litre, the sixth increase in rates since September. Diesel price was raised by 86 paise a litre, the third increase in a month. This move is in response to global prices and currency fluctuations. “The current level of international product prices of petrol and diesel and INR-USD exchange rate warrant decrease in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision,” IOC said in a statement. “The movement of prices in the international oil market and INR-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes,” it said. The new prices of non-branded petrol in metros like New Delhi would come to Rs 65.93 per litre, Kolkata Rs 68.67, Mumbai Rs 72.29 and Chennai Rs 65.41. The revised prices of non-branded diesel in New Delhi would come to Rs 54.71 per litre, Kolkata Rs 56.95, Mumbai Rs 60.32 and Chennai Rs 56.24. Union Budget to be presented on February 1 The Union Budget 2017-18 will be presented on February 1. “We are on track to meet the date. The inter-ministerial discussions for finalising the Revised Budget Estimates have been completed,” said a government source, adding that it will not be impacted by the government decision to scrap Rs 500 and Rs 1,000 notes and replace them with a new Rs 500 and Rs 2,000 notes. “These are two independent exercises being handled by separate teams of officers,” said the source. The government has decided to advance the Budget process by a month to ensure that it is completed before the start of the new financial year on April 1. Danny Etling Authentic Jersey