Power ministry extends domestic manufacturing rule by 3 years
The Ministry of Power has extended by three years a clause whereby companies inviting bids for boilers and turbine generators of supercritical projects need to incorporate a condition of setting up of phased indigenous manufacturing facilities. The period of advisory had expired on October 2015 and the ministry has now extended it by three more years with minor changes in the guidelines, Central Electricity Authority said in a report. The advisory said, for a foreign bidder, the company should have a registered subsidiary or a joint venture (JV) company for manufacturing of super critical boilers or turbine in India. It further said the bidder in this case must maintain an equity participation of minimum 51 per cent in the subsidiary or minimum 26 per cent in the JV company during the lock-in period of seven years. For an Indian company, it has to have an experience of 500 Megawatt supercritical boiler or turbine and it should have a valid ongoing collaboration and technology transfer agreement, the document said. “Major part (minimum 75 per cent) of the land required for setting up the manufacturing facility should be in possession with clear title, prior to submission of bid in the name if the subsidiary/JV company,” CEA said. Shannon Sharpe Jersey
Rs 900 crore extra toll collected on Mumbai-Pune Expressway?
While activists have earlier claimed that toll operator IRB has collected the projected toll revenue on the 94-km-long Mumbai Pune Expressway, the official toll collection data of the Expressway maintained by the Maharashtra State Road Development Corporation (MSRDC) has indicated that the toll operator, IRB, allegedly collected over the last 10 years around Rs 900 crore more than the anticipated toll. As per the contract between MSRDC and the IRB, the anticipated toll during 2007-2008 and 2016-2017 was supposed to be around Rs 1,800 crore, but the latter pocketed around Rs 2,700 crore by December 2016. When contacted, IRB claimed that the toll collection does not involve only the construction cost and one should understand the whole economic calculation behind it. Activists have alleged that the surplus toll collection is due to the faulty traffic study conducted by MSRDC that anticipated wrong escalation in traffic resulting into surplus toll revenue, turning into profit for the toll operator. The MSRDC sold the rights to collect toll to IRB in 2004 for 15 years for upfront payment of Rs 918 crore. In an email response, IRB said, “It needs to be understood that the traffic study is done by project developer before bidding for the project by assuming the likely traffic growth for concession period. One needs to appreciate that the recovery of only project cost does not mean recovery of only construction costs. It needs to consider initial investments of upfront payment by concessionaire to the nodal agencies concerned, servicing debts.” Vivek Velankar, toll activist, said, “As per the contract between MSRDC and the IRB there is no clause of sharing or shutting of toll collection in case of the targeted toll Rs 2,869 crore is met before the termination of contract in 2019. We have also highlighted that.” Mr Velankar, added, “MSRDC had anticipated that Rs 2,869 crore in terms of toll revenue would be collected by 2019 and after meeting the target the contract will be terminated. However, despite collecting revenue of Rs 2,923 crore till the end of November 2016, the toll operator has been allowed to charge toll on the expressway.” On the other hand, IRB said, “The road developer takes a huge risk on the traffic assumptions over the fixed concession period during the bidding process.” Mr Velankar said, “MSRDC’s assumption while signing the contract was that the traffic growth would be five per cent on per annum basis but the traffic growth is not increasing at the rate of five per cent. Around 50,000 vehicles use the Expressway daily against the anticipation of 20-25,000 by MSRDC. Post 2007, every year the toll operator is collection more than anticipated” MSRDC has claimed that there is no clause to stop tolling in the contract signed between MSRDC and IRB. “To stop tolling in case of early recovery and whatever surplus the toll operator collects should be considered as his/her profit considering the risks involved in such huge projects. Also, the matter is now going to be referred to the state advocate general for his legal opinion,” Kiran Kurundkar, joint managing director, MSRDC. Will Richardson Womens Jersey
Civil Aviation Ministry Gives Push to Executive Development for the Aviation Sector
The first Executive Development Programme of Rajiv Gandhi National Aviation University was inaugurated by the Minister for Civil Aviation Shri Ashok Gajapathi Raju in the capital today. Speaking on the occasion, the Minister said that the Aviation University should play the important role of spreading knowledge and see that it is applied practically in the growth of the Aviation sector. Shri Raju pointed out that skill development was a key of the growth of the Aviation sector which is likely to see an increase in demand for skilled workers in the years to come . He also asked the University to co-ordinate its activities with the Aviation Academy. The Minister of State for Civil Aviation Shri Jayant Sinha said that to have better infrastructure and transportation facilities in the country, it was necessary to close the gap of increasing demand for trained and skilled people in the Aviation sector. In the present scenario people are looking for jobs and airlines are looking for trained persons, he added. Shri Jayant Sinha also advised the university to be innovative and include research programmes. Secretary for Ministry of Civil Aviation, Shri R.N. Choubey said that the Rajiv Gandhi National Aviation University should not only organize training courses but also act as a think tank for the Aviation sector. The Vice Chancellor of the University Shri Nalin Tandon in his welcome address said that the Executive Development Programme and Management Development Programme had been structured after conducting detailed workshops with the industry and other stakeholders. He informed that the first Executive Development Programme on Aviation Management is being conducted by the University in collaboration with Indo US – American Cooperation Program. The programme is being attended by senior leadership from the Indian aviation sector to include air operators, airport operators, ancillary service providers and regulatory authorities. India is on the cusp of exponential growth in the aviation sector and a critical need was felt for India to invest in research and innovation in the aviation milieu in order to ensure that the growth is protected and to develop into a global aviation hub. The establishment of Rajiv Gandhi National Aviation University is therefore a step by the Ministry of Civil Aviation towards promoting this growth on a sustainable basis and building a foundation on which India’s aviation sector shall be showcased to the rest of the world. Key learning outcomes from premier Indian institutions have been drawn to build Rajiv Gandhi National Aviation University into a world class university and a centre of excellence for aviation education and research that is focused at meeting industry needs and skill requirements. This University is the first of its kind in the country that has been established to promote aviation studies and research to achieve excellence in areas of aviation management, policy, science and technology, aviation environment, training in governing fields of safety and security regulations on aviation and other related fields to produce quality human resources to cater to the needs of the aviation sector that is witnessing a massive transformation and growth. The University is planning the launch of its flagship programme in 2018 at its campus in Fursatganj, Rae Bareilly, Uttar Pradesh. A number of Management Development Programmes have also been planned and shall be conducted in subsequent years. Mike Wallace Womens Jersey
24% more funds to drive India onto super highway
In line with the government’s thrust on expanding the highway network, the allocation for the sector has been increased by 24% over 2016-17 to Rs 64,900 crore. In addition, Rs 27,000 crore will be spent on building roads in rural areas under the Pradhan Mantri Gram Sadak Yojana (PMGSY) over the next two years. The additional provision in the Budget for National Highways Authority of India (NHAI) to raise nearly Rs 59,300 crore through borrowings would mean that both the ministry and NHAI can undertake projects worth over Rs 1 lakh crore during 2017-18. The tax exemption on ‘masala’ bonds (bonds through which Indian companies can raise funds from global markets in rupees at cheaper rate) is likely to help the NHAI fund projects. While the NHAI executes its own projects, the ministry implements programmes through state public work departments. FM Jaitley said 2,000km of coastal roads had been identified for construction and development to facilitate better connectivity with ports and remote villages. “Besides government investment, we also expect substantial private investment in the highways sector. There is ample scope to continue and take up works worth Rs 1.5 lakh crore,” said a government official. Highways minister Nitin Gadkari termed the Budget revolutionary on account of its focus on infrastructure. However, what remains a matter of concern is the inadequate allocation for highway maintenance, which is almost unchanged at Rs 3,000 crore. Jarran Reed Jersey
HARYANA CABINET NOD TO ROAD INFRASTRUCTURE PROTECTION ACT
Haryana Cabinet on Thursday approved the draft of the Road Infrastructure Protection Act, 2017 for protection of roads constructed and maintained by Haryana Public Works (Building and Roads) Department, except National Highways declared under National Highway Act, 1956. At present, to protect the National Highways from deliberate damage, the National Highway Act, 1956 exists. Under the new Act, the roads constructed by the Public Works (Building and Roads) Department would be protected from illegal encroachments and damaged by individuals or community, said an official spokesman. He said that it has been observed that the State Government is spending a good part of its budget to improve the road infrastructure, but the same was negated by illegal encroachments and damaging activities carried out on the roads, which was a matter of serious concern. The issue was worsening day by day and remains unabated. The Act would provide clearly defined rules and regulations to be followed by competent authority and would help in implementation of a systematic approach for better utilisation and management of road infrastructure and enhancement of security, said he. The roads to be covered under the Act would include state highways, major district roads, ther district roads, any other road, paths and streets for transport or communication. It will not only include all types of roads, but also their structures. Vontaze Burfict Jersey
Budget Offers Promising Times For Infra Sector
Amidst growing speculation on the impact of the Budget for 2017-18 and whether it would bring a spiralled growth momentum for the Indian economy, the finance minister unveiled the first integrated Union Budget of Independent India that included the proposals for the railway sector as well. Similar to as was in 2016, the key focus in Budget 2017 continues to be infrastructure growth. The finance minister gave a booster shot to the country’s infrastructure with a record budgetary allocation of Rs. 3.96 lakh crore. This demonstrates clear commitment of the government towards the sector. Given that Railway Budget is now subsumed, one has to compare the subsumed Budget of last year which stood at approximately Rs. 3.43 lakh crore, thereby resulting in an increase of approximately 15.50 per cent in the budgetary allocation towards the infrastructure sector this year. While Railways get a lion’s share of allocation, the four major focus areas of railways include passenger safety, capital and development works, cleanliness and finance and accounting reforms. Further, the government anticipates an increase in commissioning of railway lines by 3,500 kilometres in 2017-18. There is also a major impetus on modernisation and redevelopment of stations with over 25 stations already in pipeline and plan for augmentation of 7,000 stations with solar power (with 300 stations already underway). Also, the endeavour to enact Metro Rail Act is a long shot for greater private participation in the sector. On the road sector, there has been an allocation of Rs. 64,900 crore as compared to Rs. 57,976 crore in 2016-17. There is a definitive commitment for connectivity of 2,000 kilometers of coastal roads with ports and remote villages. Further, under the PMGSY, the pace of construction of roads has increased to 133 kilometres per day as against 73 kilometres in 2011-14. In addition, there is a promise to set up a multi-modal logistics park and multi modal transport facility, to make the economy more competitive. On the airports side, the finance minister has promised certain policy measures by stating that select airports in Tier II cities will be taken up for operation and maintenance in PPP mode. The funds generated thereof would be utilized for airport upgradation. Turning towards the solar sector, the government proposes to start the second phase of solar park development for additional capacity of 20,000 MW. On the Policy front, the finance minister has granted infrastructure status (and grant of corresponding incentives) to affordable housing, a long-time demand from the industry. This will allow developers access to a larger pool of bank credit and that too at a lower rate with a hope that affordable housing will really become “affordable”. Further, plans for a new restructured central scheme viz. Trade Infrastructure for Export Scheme (TIES), with a focus on India’s export infrastructure, have been laid down. Moving further, as a part of its commitment last year, the government has proposed changes to the Arbitration and Conciliation Act, 1996, to settle disputes in infrastructure related construction contracts, PPP and public utility contracts. This should lead to speedier and transparent resolution of pending litigation in Infrastructure sector. On the tax front, the Budget has proposed to extend the concessional tax rate of 5 per cent on interest on foreign currency borrowings (including rupee-denominated bonds) up to June 30, 2020. In addition, while there have been certain relaxations to the domestic transfer pricing regulations, entities which are covered under profit liked incentives continue to be governed by the said provisions. On the indirect tax front, since GST or Goods and Services Tax is at the dawn of its implementation, the government has acknowledged that there are no significant changes to be made to the existing law. Given the current state of financial affairs of infrastructure sector, there was an expectation that more financial reforms would be announced. However, there was neither any such major announcement nor any direction on operationalising the National Investment and Infrastructure Fund. Through this Budget, the finance minister has continued to demonstrate its growth trajectory and commitment towards pro infrastructure environment. While there have been promising budgetary allocations and an optimistic roadmap for the sector, one could have expected some more investor-friendly tax and regulatory proposals to set the pace and momentum towards a conducive and non-adversarial tax regime. Martin Jones Authentic Jersey
Govt moots 100 MW floating solar power plant in PABR
The State government is coming up with a novel idea of establishing a 100 MW floating solar power plant in the PABR Reservoir. Details are being worked out in this regard. The idea not only saves space but also reduces water evaporation losses as the solar floats give a cover to the water in the reservoir from Sun. New and Renewable Energy Development Corporation (NREDCAP) is also in the process of meeting its target to complete 1,000 mega watts of wind power generation by March 31, 2017. Already 400 megawatts of wind power generation has been commissioned and another 600 megawatts are in the execution stage and expected to be commissioned by March 2017. Dubbed as green corridor, Rayalaseema particularly Kurnool and Anantapur will have a total power generation of 3,000 megawatts – 1,000 MW in Kurnool and 2000 MW in Anantapur district. Close ad X The expansion of existing power plants is taking place in various mandals including Axis Wind Farm by 100 MW in Kuderu, Green Co at Saipuram by 100 MW, Skiron Energy at Polthuru by 226 MW, Ostro Energy by 200 MW in Kambaduru and Future Energy at Chennanpalle by 100 MW and also two other projects contributing to another 200 MW. AP Genco has plans to set up a 500 MW solar power plant at N P Kunta in the district sometime in 2017. These projects altogether would contribute to expansion of non-conventional projects – with further increase in wind power generation by more than 1,000 MW and solar energy production by another 500 MW. Presently, National Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) is engaged in overseeing establishment of Power Pooling Stations (PPS) at Kambaduru, Madancheruvu, Borampalle and other places to facilitate grid connection so that the power pooled from the sub-station areas could be transferred to the 220 KV sub-station at Borampalle and from there to the 400 KV sub-station at Uravakonda. These pooling stations will be completed by the end of March. NREDCAP District Manager Kodandarama Murthy told The Hans India that 30 years ago AP was brushed aside as a ‘No wind State’ but today it is producing 2000 MW of wind power out of the union government’s national target of 10,000 megawatts. Normally the minimum specification is 150 watts of wind power density per square metre area. “Modern machinery has enabled us to tap wind power even at 150 watts per square metre, a proposition not considered in the past on grounds of ‘not feasible’,” he said. What the power producers generated 10 lakh units in Ramagiri area is now able to almost double to 18 lakh units with latest equipment. Latest equipment enabled power producers to capture wind power even in low density wind power areas. Among the several players, Suzlon group, Gamesha, Inox, Wind World, Regen Power Tech, General Engineering, Tata and BHEL are major ones. Two companies Suzlon and Regen group are into manufacturing of wind fans to bring down transportation and import costs. The district is producing more than 1000 MW of power including old and new solar and wind projects in Kalyandurg, Uravakonda, Kadiri and Ramagiri regions. The wind power projects commissioned up to March 2015 were producing wind energy to the order of 792.94 MW capacity and subsequently another 401.10 MW have been added. The wind projects commissioned post 2015 are located at Atmakur, Beluguppa, Honnuru, Kalyandurg, Kudair, Pottipadu, Singanamala, Talaricheruvu, Tallimadugula and Vajrakaruru. Andhra Sugars of Mullapudi Harischandra Prasad was the first to set up a 3 MW wind power project at Ramagiri, followed by many others groups including BHEL, APSRTC, Navabharath Group, Deccan Cements, Rayalaseema Paper Mills, BSM Spinning Mills, Priyadarshini and ILFS setting up the plants and producing altogether 51.74 MW of power and supplying the same to the Power Grid.
Revival package for stalled hydropower projects soon: Piyush Goyal
Power minister Piyush Goyal said on Thursday he was working on a proposal to revive stalled hydropower projects to enable them to sell power at a competitive tariff. Addressing industry executives at The Verdict, the Mint-CNBC-TV18 conference on Budget 2017 in New Delhi, Goyal said his ministry will seek cabinet approval shortly on a proposal for financial re-engineering of stalled hydropower projects. He said the provision for budgetary support will be invoked as a last resort as it was vital for projects to be self sustaining. “We are working on revitalizing hydropower and see if tariff can be less than Rs5 a unit. Hydropower projects in hill states have become expensive due to associated infrastructure requirements. Budgetary support may be the last resort,” Goyal said, adding that the LED industry had become self sufficient and cost-competitive without government support. Former power secretary Anil Razdan, who was present on the occasion, said the 175 gigawatts (GW) of renewable energy capacity the government is targeting, requires a strong component of renewable energy storage capacity and other sources of power to balance the grid. Hydropower projects have a long gestation period of 2-10 years, he said. Many projects got stalled due to problems relating to land, finance, and promoters. Goyal said he would seek comments from all stakeholders, including NGOs, before finalizing the policy. The power ministry is keen to revive hydropower projects and attract fresh investments into this sector as it can be a valuable source of power that could balance the grid during the night and on cloudy days when solar energy supply drops. Goyal asked industry executives to take the lead in investing. Union budget for 2017-18 presented by finance minister Arun Jaitley on Wednesday proposed steps to promote clean energy including lowering of import duty on tempered glass that goes into manufacturing solar cells, panels and modules. O. J. Simpson Authentic Jersey
SKILL SHORTAGE BIGGEST CHALLENGE FOR POWER SECTOR’
The biggest challenge facing the power sector in the State is shortage of highly-skilled manpower. There is a need for skill development training, and industries’ help is needed for it, said Energy Department Secretary Hemant Sharma at a Confederation of Indian Industry’s (CII) Energy Conclave on ‘Emerging Power Sector and Priorities for Odisha’ here on Thursday. Sharma said though there is no shortage of infrastructure and funds, skilled manpower like fitters and technicians are not available for projects. There is a huge need for skilled manpower and the Government would provide all facilities to get trained and skilled personnel. The State has provided huge funds to develop massive infrastructure so that the initiative of ‘24×7 Power for All in Odisha is achieved. He further said now the power distribution companies can have access to Government funds for different projects. While some years ago there were 13 lakh consumers in the State now it has reached 65 lakh. Energy deficits are non- existent and the State has made a transition from shortage regime to surplus regime. Besides, the private sector involvement in thermal and solar power has improved the situation. Now, shortages are thing of the past and surplus power is a reality. However, by and large electricity is affordable in Odisha as the State Government has made huge investments. But on subsidies, he said path of revenue subsidies is a black hone and if one gets sucked in, one cannot get out it. So, the Government is making huge investments to make power affordable, he said. Talking about renewable energy, he said presently there is an energy mix and there is requirement for it. But renewable energy should be affordable for the consumer. Power is an infinite need and it would grow further. But to generate it, one is dependent on finite need like coal, which one does not know till when it would be available. So sustainability of resources is important, said Sharma. Nalco Director Production V Balasubramanyam said India has one per cent of oil reserves but 16 per cent of the world population. So it is a big challenge. Renewable energy would save energy and environment. But there is need for less consumption and more conservation of energy. Nalco is presently consuming 900 MW of power and with expansion of its projects it requirement would increase further. The Odisha Government should put u windmills and facilities for solar powar. Nalco will help in it. Then power for all can be a reality. But there is a need for green and clean energy, he said. Among others, KPMG partner and head, infrastructure, government and healthcare Ansh De also spoke. Korbinian Holzer Womens Jersey
AAI can monetise 2000-3000 acres of its land, says Ashok Gajapathi Raju
Civil Aviation minister Ashok Gajapathi Raju on Thursday said the national airports operator AAI could monetise around 2000-3000 acres of its land and utilise the funds raised in airport infrastructure development. Under the current norms, airport land could be used only for limited purposes. Raju’s comments came a day after Finance Minister Arun Jaitley announced in the 2017-18 Union Budget that “the AAI Act will be amended to allow monetisation of land assets owned by AAI.” “AAI can easily monetise 2000-3000 acres of land… The amount (raised) from this should contribute to infrastructure (development),” Raju said. He also said the move to monetise the land assets of the Airports Authority of India (AAI) would benefit the fliers as well. AAI owns around 55,000 hectares of land in urban areas across the country. Significantly, the AAI chairman too had last year said the authority would focus on monetisation of its huge chunk of land on the city side across airports in the country as part of AAI’s larger efforts to enhance non-aeronautical revenues. AAI’s non-aeronautical revenue currently account for around 19 per cent of its annual top line. Asserting that the government’s ambitious regional connectivity scheme UDAAN was going in the “right” direction, Raju said the first flight under the scheme was likely to take off in March. Jose Iglesias Authentic Jersey