MP government wants to hike tariff after buying power at high rate: AAP
Aam Aadmi Party on Monday alleged that Madhya Pradesh government purchased electricity at a high rate for the benefit of private power generation firms, and to make up the resultant loss of Rs 9,288.53 crore, it now wanted to put the burden on the consumers through a tariff hike. “MP Power Management Company Limited (MPPMCL) has sustained a whopping loss of Rs 9,288.53 crore according to its audit report of 2013-14,” state AAP convener Alok Agrawal said in Bhopal. “Instead of buying power from MP Power Generating Company, NTPC and other government establishments, state government bought electricity, in some cases for Rs 9.50 per unit, from private electricity sellers,” he alleged. “MPPMCL has petitioned MP Electricity Regulatory Commission (MPERC) seeking its approval to hike power tariff for the three distribution companies which supply power to consumers in MP,” he said. “If the MPERC gives permission to MPPMCL, the domestic consumers will get power Rs 2.50 per unit costlier,” he added. Agrawal said AAP was opposed to the MPPMCL petition and was going to contest it at hearing at MPERC tomorrow. The petition aimed at “looting” the commoners, he said. The AAP leader, citing the petition, also said Rs 1,569 crore electricity dues of big consumers (industrial houses) were waived unlawfully. This made it clear that small consumers were being victimised, he added. AAP will oppose any move to hike the power tariff and wanted the tariff to be halved, he said. Dick Butkus Womens Jersey
Storage push to solar power
Advances in energy storage technology could pull down prices of solar and wind power to levels close to those of coal-fired power within the next five to seven years, energy analysts just back from the UN climate conference in Morocco said today. These emerging advances in battery-based storage systems have been projected to make available solar and wind-driven electricity at about Rs 5 per unit, making the prices of these renewable energy sources close and competitive to the price of coal-based power, the analysts said. “This is amazing, if these projections actually pan out, we could see a significant acceleration of the expansion of renewable energy everywhere, including India,” said Ajay Mathur, the director general of The Energy and Resources Institute (TERI), a research think-tank in New Delhi. Coal-fired thermal power plants currently make up about 60 per cent of India’s installed electricity capacity; renewable energy sources, mainly wind and solar, contribute about 15 per cent; large hydroelectric stations make up 14 per cent; gas 8 per cent; nuclear 1.9 per cent; and diesel 0.3 per cent. The Indian government has pledged to increase the country’s installed solar power capacity from the current level of about 8,600 MW to 100,000 MW by 2022, and to raise the proportion of non-fossil fuel sources, primarily renewable and nuclear, in India’s total installed energy capacity to 40 per cent by 2030. However, the main barrier holding up the rapid scale-up of solar and wind power is the limited generation capacities of solar and wind stations because neither sunshine nor wind are available 24 hours a day, unlike a thermal power plant that can burn coal continuously. But the France-based International Energy Agency has predicted major transformation in the global energy market over the next decades, with renewables and natural gas emerging as “big winners” to meet the energy demands up to the year 2040. Senior TERI analysts said the IEA had also made technical projections of emerging battery storage technology that would help address the issue of limited sunshine and wind availability. These technology advances are expected to make available renewable energy dispatched to electricity utility companies round the clock, reducing the cost. While coal-fired electricity is currently available for utilities in India for about Rs 3.5 per unit, the prices of coal electricity are likely to increase by about Rs 1 per unit under new thermal power plant standards mandated by the Indian government. “When this happens, coal prices will rise above Rs 4 per unit,” Mathur said. The IEA, in a report released during the climate meeting in Morocco, has predicted that coal consumption is expected to barely grow over the next 25 years as demand in China falls back through that country’s efforts to fight air pollution and diversify the energy mix. The annual conference brought together delegations from several countries to discuss strategies to curb or reduce Earth-warming greenhouse gas emissions from the burning of fossil fuels to avoid the worst impacts of climate change induced by global warming. The expansion of renewable energy is a key component of these strategies. The IEA has predicted that renewables will remain the fastest-growing source of electricity generation, with their share globally rising from 23 per cent in 2015 to about 28 per cent in 2021. Marshon Lattimore Jersey
Government mulls central transmission entity
Government is looking at creating a separate entity to function as a dedicated central transmission utility with operational and financial authority, Parliament was informed on Monday. “Government has contemplated the creation of a separate entity as a dedicated company having operational and financial autonomy which shall discharge the statutory functions of Central Transmission Utility (CTU) along with other functions which inter-alia includes Power System Planning,” Power Minister Piyush Goyal stated in a written reply to Rajya Sabha on Monday. According to statement, the proposal for creation of such an entity is presently at a preliminary stage. At present, Power Grid Corp discharges the CTU functions. Its arm Power System Operation Corp manages the electricity grid in the country. PSOC ensures integrated operation of regional and national power systems to facilitate transfer of electricity within and across regions and trans-national exchange of power. In another reply to the House, Goyal said that during the April-October period of the current fiscal, 2.67% of coal and lignite based thermal units could not generate electricity at all. During 12th Plan (2012-17) till September 2016, he said, a total of 3,000 MW of inefficient thermal generating capacity has been retired. This will result in better utilisation of more efficient plants. In another reply, Goyal stated that as reported by the states, there were 18,452 un-electrified census villages in the country, as on April 1, 2015. Out of these, 10,628 villages have been electrified as on October, 31, 2016 and the remaining 7,824 un-electrified villages are targeted to be electrified by May, 2018. As per Census 2011, out of 1,678 lakh rural households in the country, 750 lakh were un-electrified. However, 249.89 lakh BPL households have been released connections under Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY), including Rural Electrification component, as on October, 31, 2016, he added. Goyal further said that the 23,273.5 MW capacity of coal and lignite based thermal power generating units were un-utilised due to its non-schedule from beneficiaries (Reserve shut down) as on November 14, 2016. The un-utilised capacity of gas and other liquid/multi fuel power stations cannot be quantified as it depends on availability of gas, he added. On hydro power, he said as many as 12 Detailed Project Reports (DPRs) of hydro power projects, with an aggregate installed capacity of 9,979, MW are under examination in Central Electricity Authority (CEA). Jake Gardiner Authentic Jersey
Sweden to scrap taxes on solar energy in 2017 in bid to run entirely on renewables
Sweden is set to ditch taxes on its production of solar energy in 2017 in a bid to run entirely on renewable energy by 2040, the government said on Monday. Solar energy is currently marginal in the Nordic nation, accounting for less than 0.1 percent of electricity production. Sweden relies mostly on hydropower (39 percent) and nuclear power (36 percent). The finance ministry said in a statement that the production of solar electricity for own use would be entirely exempt from taxes. Electricity providers would meanwhile only be taxed 500 kronor (51 euros) per megawatt hour, which is a 98-percent reduction from the current level. “This makes fast investments possible,” Social Democratic Finance Minister Magdalena Andersson said. The proposal is likely to be adopted by parliament, with the centre-right opposition having criticised the minister for her lack of ambition with regards renewable energy investments. The move must also be approved by the European Commission in Brussels, which aims to boost the EU’s share of renewable energy to at least 20 percent of consumption. In October, the Swedish energy market regulator had estimated that in order to reach the target of 100 percent renewable energy, the share of solar electricity would have to rise to between five and 10 percent. Steve McLendon Jersey
Vedanta looks to raise captive power generation capacity by 1,200 Megawatt
Metals and mining conglomerate Vedanta Ltd is looking at increasing its captive power generation capacity by 1,200 megawatt (MW) amid rising production. The company is considering setting up 350-MW super-critical units in joint ventures at its different production bases in the country. “We are evaluating various models and one of them being looked at includes offering excess land at our manufacturing units as equity in setting up thermal power units under joint venture with third parties,” Ajay Dixit, chief executive officer of Vedanta’s power business, said. Vedanta has an electricity generation capacity of nearly 9,000 MW of which 200 MW comes from wind and the rest from thermal. Nearly 60% of the 9,000 MW is for captive use, the remaining is sold in the market. “At present, the average utilisation of commercial power generation capacity at Vedanta Ltd is a shade above 70% while the utilisation of captive power units are more than 90%. We have estimated that an additional 1,200 MW of generation capacity would be required to cater to the increased production capacities,” Dixit said. Vedanta is looking at various models for procuring quality power supplied steadily at competitive rates. “Apart from the joint venture model, other models being looked at include entering into long-term power purchase agreements with power producers that would set up their plants and supply us the power. Alternatively, we would set up our own generation capacities at manufacturing bases,” he said. Vedanta has already invited an expression of interest and is evaluating the pros and cons of various models. Around 3,554 MW of the total capacity, meant for commercial sale, is running at around 70%. The remaining 5,194 MW is for captive usage, where capacity utilisation has risen with the rise in production. In Jharsuguda in Odisha, Vedanta has a power generation capacity of 3,615 MW of which 600 MW is for commercial sale while the rest is for captive use. The commercial capacity utilisation is around 80%. At the Talwandi Sabo Power project in Punjab, the entire capacity of 1,980 MW is for commercial sale on a long-term basis. The project recently saw a dip in power sales but capacity utilisation has now risen to 90%. At Balco, Vedanta has an installed capacity of 2010 MW of which 600 MW (2 x 300 MW) is for commercial sale while the rest is for captive use. At Hindustan Zinc Limited, the total installed capacity is 748 MW of which 274 MW is generated from wind and is sold in the market. The remaining 474 MW is for captive usage. There is an additional 100 MW at Malco for commercial sale and 160 MW at Tuticorin for captive usage. Greg Mancz Authentic Jersey
Gurgaon power department all set to invest Rs 200 crore to maintain and upgrade feeders
Power woes of residents in private colonies are likely to be resolved soon. The power department is all set to invest Rs 200 crore to upgrade and maintain the feeders installed in builder areas and group housing societies. A senior official of the power department said around Rs 1 crore is required to upgrade and maintain one feeder on an average. As of now, residents in builder areas and housing societies are facing outages for hours owing to insufficient infrastructure, over-loaded and erratic supply. “The move by power discoms will bring much-needed relief to the residents,” he said. The power discoms have prepared an elaborate maintenance plan for feeders. It will take around a year to implement the plan and upgrade the network of feeders, according to officials. Another senior official of the power department said builders, who should take care of power infra maintenance in plotted colonies and group housing societies, pass the responsibility to resident welfare associations (RWAs). They, in turn, are unable to carry out the maintenance work properly, owing to which residents have to face tough time during power cuts. The plight of residents, who file complaints, has forced the power discoms to take over the maintenance work. “During the maintenance work, the load of independent feeders will be shifted to another feeders and additional infrastructure will be created so that the residents do not face crisis during the work,” said an official. Power discoms have bee working on other ways to ensure circuits and cables don’t break under excess load. Also, workers have many a time complained that they don’t get necessary equipmentt to tackle outages and erratic supply. Brett Hull Authentic Jersey
Govt’s equity flow choke might block Air India revival path
Air India’s turnaround plan would be hit by a proposed curtailment in government equity infusion, the airline has informed the civil aviation ministry. Air India received Rs 1,713 crore of equity in the Budget, against its requirement of Rs 3,900 crore. The airline had requested the remaining Rs 2,200 crore to be released in the supplementary Budget. But the finance ministry has turned down the airline’s request. Lower equity infusion could result in increased finance costs and impact the turnaround plan, the airline has told the government. Air India is on a Rs 30,000-crore government bailout package and has till now received Rs 23,993 crore in equity, including Rs 1,713-crore investment this year. The infusion fund was to take care of the cash deficit and to be used for loan repayment. The airline was hoping to retire debt using the equity infusion in 2016. Last week, Air India Chairperson Ashwani Lohani wrote to the civil aviation ministry highlighting the perils of reduced equity infusion. The airline has sought the ministry’s intervention in the regard. Lohani confirmed to Business Standard he has written to the ministry. “Air India’s huge debt burden is a legacy of the past. It would be impossible to manage unless we are given full equity,” he said in response to a query. Lohani has in his letter pointed out that the airline was on an expansion mode and leasing aircraft, making it essential to have sufficient liquidity to take care of commitments. Further, he said, the airline would be forced to raise temporary loans from banks to bridge the liquidity gap, which might endanger the survival of the company. Ryon Healy Jersey
Demonetisation: GAIL (India) stock flow comes to a screeching halt
Inventories have piled up at GAIL’s petrochemicals facilities as a large number of trucks remain off the road due to the demonetisation-induced cash crunch, leaving the state firm scrambling for new warehouse spaces and an alternative mode of transport to carry products to customers. “The movement of trucks has slowed. So that has certain impact. As of now, we are stocking in our store. There is no reduction in our production. But our stocks are moving up in our warehouses. The plant inventory has gone up by 50%,” Chairman B C Tripathi told ET. Tripathi said he was hopeful things will get back to normal in a week or 10 days as cash availability increases. The lack of cash has pushed many trucks off the road as drivers are unable to pay for fuel, food and toll at many places. Petrochemicals, produced using petroleum and gas, find use in several industries, most visibly in the plastics used in household and electronic items and in construction and cosmetics. The cash crunch is cutting both ways by curtailing demand as fewer end users have cash to purchase stuff, and by restricting supply as factories can’t keep producing goods that don’t leave their gates. GAIL owns and operates a gas-based petrochemicals complex at Pata, near Kanpur in Uttar Pradesh. It also controls a petrochemicals facility in Assam and is a part owner in another in Gujarat. As inventory overflows, GAIL is scrambling to arrange new places for storage. “We are trying to create alternative warehouse,” said Tripathi. All the petrochemical products at GAIL are carried by trucks, not train, Tripathi said, which is why the company is now searching for an alternative carrier. “We are talking to Container Corporation, they are a PSU, they can move products,” said Tripathi. State-run Container Corporation of India mostly uses trains to ferry products across the country. To help transporters tide over the cash crunch, GAIL is also thinking of supporting them with cash. “We can give some cash from our side, which we have. Withdrawal limits are available to us. Increase the credit period, all these things we are looking at,” Tripathi said. The Indian petrochemicals industry has been growing annually by 14% and is expected to reach $100 million in size by 2020. In the July-September quarter, GAIL’s petrochemicals business witnessed sharp growth with profit climbing to Rs 104 crore from a loss of Rs 364 crore in the corresponding quarter last year. Tripathi said the company’s gas business has not seen any impact due to demonetization as the option of electronic payment is easily available to the smallest of customers in this segment. DJ LeMahieu Authentic Jersey
Things Looking Good, Will Continue Investing: AirAsia India CEO
Emphasising that things are looking good for the airline, AirAsia India CEO Amar Abrol has said it will continue to make investments and expand fleet size to 10 in the current financial year. The no-frills carrier, which took to the Indian skies in June 2014, also expects to have a headcount of around 1,000 by the end of March next year. AirAsia India, a joint venture between Tatas and Malaysia’s AirAsia Berhad, came into focus recently after ousted Tata group Chairman Cyrus Mistry alleged fraudulent transactions worth Rs 22 crore had happened in the carrier. Currently, the airline has eight aircraft and two more would be added in this financial year, Mr Abrol said, adding that the staff strength is expected to reach around 1,000 during the same period. Presently, the airline has a staff strength of 800-850. “We will have around 1,000 people, hopefully by March… Things are looking good and we continue to invest in India,” he told PTI. The budget carrier had 2.3 per cent share in the domestic aviation market at the end of September quarter. It flew 5.89 lakh passengers in the three months ended September, an increase of 42 per cent compared to the year-ago period. Without divulging specific financial details, Mr Abrol said the airline has been seeing gross profit since the new management took over in March. He came at the helm of the airline in March this year. “I think since March when the new management took over, we have been gross profit positive,” he noted. Draymond Green Authentic Jersey
Small wings can make big flights
In a few years, a passenger from Ramnad may not have to take a 10-hour train journey to Chennai or a road trip to Madurai airport to fly abroad. He or she can take a nine-seater aircraft from Ramnad and fly to Madurai or Trichy, and then board a connecting flight to Mumbai, Delhi, or the rest of the world. Flying between small towns is going to be the norm if the ministry of civil aviation has its way in developing regional connectivity. In Tamil Nadu, more than 14 unused airstrips and a few underserved airports have been identified for this purpose. These include airstrips in Arakkonam, Chettinad, Cholavaram, Hosur, Kayatar, Neyveli, Ramnad, Salem, Sulur, Thanjavur, Ullundurpet and Vellore. Some of these were built by the British during the Second World War while others used to be private airstrips for the rich but now defunct. The airstrips could be used to fly nine-seater to 18-seater flights so that people from the hinterlands can have easy access to bigger airports, said Union minister of state for civil aviation Jayant Sinha detailing the Centre’s plan to develop air connectivity in the next 10 years. The ministry is trying to encourage private entrepreneurs to invest in these facilities for basic infrastructure if airlines show readiness to operate. Airports Authority of India too has been considering developing small airports with frugal facility like a hall as the terminal. In the southern peninsula, the density of airports is high. There are eight airports with good passenger traffic. The airstrips identified for development are scattered in such a way that these can connect people in remote areas to the existing airports for onward journey. However, airlines have to bid for these routes. The bidding is likely to happen in January. Two defence air strips – Tambaram and Arakkonam – are also included in this and are expected to be opened up for civilian aircraft if airlines show interest. Golden Tate III Womens Jersey