India can be much larger producer, consumer of natural gas: US Congress report
India has the potential to become a much larger producer and consumer of natural gas by 2022, according to a first-of-its-kind Congressional report. “India’s natural gas plans have implications for a number of issues in which Congress has expressed an interest,” the bipartisan and independent Congressional Research Service (CRS) said in a report on India’s natural gas sector. The report noted that India could see greater demand for energy with its population expected to be around 1.4 billion people by 2022, making it the world’s most populous country. “India has the potential to become a much larger producer and consumer of natural gas by 2022,” it said. Issues of interest include prospects for US hydrocarbon exports, investments by US energy companies, Indian investments in US natural gas production, India’s ability to meet its international commitments to reduce greenhouse gas emissions to combat climate change and India’s plans for integrating itself into the growing South Asian energy market, the 19-page report, released yesterday, said. The independent research wing of the US Congress brings out periodic reports on issues of interest to American lawmakers so that they can make informative decisions. However, the reports are not considered to be official documents of the Congress. The CRS said in the mid-2000s, members of both houses of Congress expressed interest to formalise closer energy ties between the United States and India, and a legislation was introduced but it was not enacted into law. However, the executive branch has implemented programmes to further improve the energy partnership between the two nations, it said. India’s current assessment of total reserves–resources that are economically and technically viable under existing market conditions–are estimated to represent less than one per cent of the global natural gas, the report said. As India attempts to shift away from coal and oil over the coming decades, natural gas production, especially from offshore resources, is seen as a way to increase domestic supply, it noted. Combined with improving infrastructure for imported LNG, India could become a bigger natural gas consumer in the future, the report said. CRS said in the past decade, India has incentivised foreign access to its upstream sector as a way to increase domestic production. Some of India’s energy companies are also investing more in US energy projects and have signed contracts to import US LNG, it said. Doug Middleton Jersey
India, Uganda to expand cooperation in energy sector
India and resource-rich Uganda agreed to expand cooperation in the energy sector and training of personnel for space programme and peaceful use of atomic energy. Vice President Hamid Ansari, on the second day of his visit to Uganda, held talks with President Yoweri Museveni at the State House and reviewed the “entire gamut” of bilateral cooperation. “We reviewed the entire gamut of our bilateral ties. We remain committed to working together in trade, investment, development cooperation, agriculture, IT, defence cooperation domains,” Ansari said during a joint press conference with President Museveni. “We also agreed to expand cooperation in the energy sector and training of personnel for space programme and peaceful use of atomic energy,” he said after his “very fruitful” meeting with Museveni. “One area where emphasis was put was on vocational training for skill development,” Ansari said. As Ansari held a tete-a-tete with Museveni, senior government officials held bilateral talks with their counterparts. President Museveni also pitched for Indian companies to manufacture automobiles locally to discourage import of cars. “We have automobiles and other imports from India, and also machines and machine parts. But, I alerted the Vice President that in the future we should start to look out for assembling manufacturing vehicles here to discourage import of cars in East Africa,” he said. Ansari said, “This certainly means the possibility that it would open up for Indian manufacturers and local investors. And, this is something that I would take back home to our business community.” The President also hosted a luncheon for Ansari and described the Indo-Uganda relationship as “long-standing, warm and respectful.” Earlier in the day, Ansari met his counterpart Edward Ssekandi at the Vice President’s Secretariat and held bilateral talks with him. The Vice President arrived in Kampala yesterday after a visit to Rwanda, where he spent three days in its capital Kigali. His Uganda visit ends tomorrow. “We support each other and the discussion today was for mutual benefit,” Museveni said. Oliver Kylington Jersey
AAI pays Rs 560 Crore interim dividend to government for 2016-17
Airports Authority of India (AAI), which is 100% owned by the government, today announced an Interim Dividend payment of Rs 560 crore for the year 2016-17 to its promoter. “AAI has earned a Revenue of Rs 10,824 crore and a profit before tax of Rs 3,697 crores and Profit after tax of Rs 2,537 Crores for the year 2015-16,” said a release from the airport operator. AAI said that it has spent an amount Rs 4,315 crores during the last three years [2013-14 to 2015-16] on modernization of Airport terminals, passenger facilities and Air Traffic and Navigational Aids at its Airports. AAI has paid Rs 1,106 crore as dividend in the last three years [2013-14 – 2015-16] and has also contributed to the Central Exchequer Rs 6,253 Crores in different forms during the same period, apart from paying Dividend, added the relelase. Francisco Lindor Jersey
Flyover at Hero Honda Chowk could be opened in two weeks
The under construction flyover at Hero Honda Chowk on the Delhi Gurgaon Expressway is nearing completion and could be opened for commuters and traffic anytime in the next couple of weeks, a senior official of the National Highways Authority of India (NHAI) said on Wednesday. Work on the project commissioned by the NHAI started in February 2015 and was to be completed by July 2015. Earlier, the NHAI officials inspected the site and took stock of the project. The flyover, once complete, is tipped to make the commute between Delhi and Jaipur via Hero Honda Chowk smooth and hassle-free. AK Sharma, project director, NHAI, said, “We are trying to get the flyover up and running for commuters as early as possible. Work is on in full swing and a one portion or flank is almost complete.” The project did face obstacles and was mired in red tape over the last five years, before work finally began in February 2015. The busy Hero Honda Chowk, which draws commuters by the dozens through the day, is considered a choke point as it is crammed with motorists, commuters and even pedestrians. Union minister for road transport and highways, Nitin Gadkari, twice inspected the Delhi-Gurgaon Expressway in 2015 after locals complained of commuting woes at Hero Honda Chowk. However, with the project on schedule and expected to be completed soon, the 1.4 km flyover is expected to ease the flow of traffic on the busy Hero Honda Chowk once it opens. Work on the underpass, which is proceeding parallelly, will help pedestrians shuttle between both sides of the chowk easily. The residents of sectors 34 and 37 are also expected to derive a lot of benefits from the underpass, which stretches from Rajiv Chowk to Kherki Daula. Rambir Singh, a resident of Narsinghpur, said, “Hero Honda Chowk has been a commuting nightmare for us. People coming from Iffco Chowk and heading towards Sector 10 often take the wrong service lane between Rajiv Chowk and Hero Honda Chowk causing a chaotic traffic situation.” Jaelen Strong Authentic Jersey
Ahamdabad:Government paid Rs 50 crore for toll exemption
The state government has been paying over Rs 35.94 lakh per day to the toll tax agency in lieu of the exemption given to small passenger vehicles and state-run buses from paying road levy on 12 state highways from August 15. The state government, in reply to a question by Khedbrahma MLA Ashwin Kotwal, stated that from August 15 to December 31, 2016, the toll agencies have raised a bill of Rs 86.21 crore against the exemption given to small passenger vehicles and state-run buses. So far, the government has paid Rs49.61 crore to the toll plazas. Officials said that as per the estimate, 86,000 vehicles pass through these state highways daily where 27 toll booths are located. The state government had announced that it will bear the toll tax and it will not be collected from people. The 12 state highways that became toll-free are 1 Ahmedabad-Mehsana, Vadodara-Halol, Ahmedabad-Viramgam-Maliya, Halol-Godhra-Shamlaji, Rajkot-Jamnagar-Vadinar, Himmatnagar Bypass, Kim-Mandvi Highway, Bhuj-Nakhatarana Highway, Kapadwanj-Modasa, Deesa-Gundri, Vadodara-Chhayapur and Bagodara-Bamnasore. Officials said that if the entire Rs86.21 crore was paid, it would mean that the state will be paying Rs62.41 lakh per day in lieu of toll tax exemption. Phillip Lindsay Authentic Jersey
NHAI rolls out UP Gate revamp plan
The inter-state border at UP Gate will look very different in the near future with the National Highways Authority of India (NHAI) rolling out a comprehensive decongestion plan as part of the widening of NH-24 to 14 lanes. Central to that plan is a new flyover that will come up over UP Gate, as an extension of the existing Ghazipur flyover. This new flyover will end on the highway before the bridge over the Hindon canal in Indirapuram. The makeover of the UP Gate area has also factored in ramps for the elevated road to Raj Nagar Extension that the Ghaziabad Development Authority (GDA) is building. The elevated road is being built perpendicular to NH-24 as a single corridor with a median verge, along the Hindon canal in Indirapuram. But before it merges with the highway, the GDA has decided to bifurcate the road and build two ramps. One ramp will pass under the NH-24 bridge on the Hindon canal and marge with the Ghaziabad-Delhi carriageway of the highway. The other ramp — meant for traffic headed for Raj Nagar Extension and Kanawani — will terminate on the opposite side of NH-24, on the Delhi-Ghaziabad carriageway. The integrated plan has been formulated by GDA and NHAI. The new 12-lane flyover that will be built on NH-24 is part of the first package of the widening project, which has already started and has a completion target of 910 days. NHAI (project director) in Ghaziabad RB Singh told TOI, “Construction work on the flyover will commence as soon as additional lanes on either sides of the highway are ready to use. This will allow us to devise a traffic plan so that vehicles are diverted through the new lanes leaving the stretch of NH-24 free for construction work. There is no separate budget for the flyover and its cost will be met from the sum allocated by the ministry of road transport and highways for the first section of the NH-24 widening project. The plan to merge the elevated road with NH-24 has been chalked out with GDA.” The GDA, meanwhile, is undertaking construction work at a rapid pace on the last leg of the 10.3km elevated road project. “The elevated road will help divert traffic by allowing signal-free rides both from and to Raj Nagar Extension. The six-lane elevated flyway is being built on 228 pillars. The road will be ready for use by the latter half of this year,” GDA executive engineer Chakresh Jain said. Jimmy Garoppolo Authentic Jersey
Airbus says profit hit by military plane woes
European airplane maker Airbus said today that its profits nosedived last year as charges related to problems with its A400M military cargo transport plane sent earnings into a tailspin. Airbus said in a statement that its bottom-line net profit plummeted by 63 per cent to 995 million euros (USD 1.0 billion) last year, shot down by a 2.2-billion-euro hit on the A400M. Revenues grew by three per cent to 66.6 billion euros. “We have delivered on the commitments that we gave a year ago and achieved our guidance and objectives, with one exception, the A400M, where we had to take another significant charge totalling 2.2 billion euros in 2016,” said chief executive Tom Enders. “De-risking the programme and strengthening programme execution are our top priorities for this aircraft in 2017.” The A400M was commissioned jointly in 2003 by the governments of Germany, Belgium, France, Britain, Luxembourg, Spain and Turkey. Originally planned for launch in 2011, its delivery was substantially delayed by a string of technical problems and different requests from the governments. And new faults were discovered in the propellor engines last year. Airbus delivered 17 A400M in 2016, compared with 11 in 2015 and has delivered two of the military transport planes so far this year. “Cash retentions by customers will continue to weigh significantly in 2017 and 2018 in particular,” Airbus warned. “Challenges remain on meeting contractual capabilities, securing sufficient export orders in time, cost reduction and commercial exposure, which could be significant. Given the size of the cumulative A400M programme loss, the board of directors has mandated management to re-engage with customers to cap the remaining exposure.” Airbus said that its new orders amounted to 134 billion euros in 2016, down from 159 billion euros in 2015. The total value of the group’s order book stood at 1.06 trillion euros at the end of December, up from 1.0 trillion euros a year earlier. Total deliveries of commercial aircraft rose to 688 in 2016 from 635 a year earlier and helicopter deliveries were up at 418 compared with 395. Adam Graves Authentic Jersey
Jet Airways, HongKong Airlines ink codeshare agreement
As part of the reciprocal agreement, Jet Airways will place its marketing code “9W” on Hong Kong Airlines’ flights operating between Hong Kong and Okinawa and Tokyo in Japan; Denpasar in Indonesia; Hanoi in Vietnam; Bangkok in Thailand; and Auckland in New Zealand. Hong Kong Airlines in turn, will place its marketing code “HX” on Jet Airways’ flights between Hong Kong and Mumbai as well as Delhi in India. The agreement will allow Hong Kong Airlines to offer its guests a daily service connecting the key business cities of Hong Kong, Mumbai and Delhi. The codeshare will provide opportunities for both airlines to expand their reach and cater to guests across the region. It will also enhance connectivity for Jet Airways guests from Mumbai and Delhi via Hong Kong to multiple destinations in the Asia-Pacific region including to first time codeshare destinations – Okinawa in Japan and Auckland in New Zealand thus enhancing the proposition for travelers who are increasingly seeking newer and more varied travel experiences.Guest can also enjoy the multi-gateway travel flexibility of travelling to/from India to Hong Kong in one direction and via Bangkok in the other direction. Additionally, Jet Airways’ Jet Privilege members will also be able to earn frequent flyer miles when they travel on Jet Airways marketed flights on these codeshare routes, which will not only be available for redemption but also count towards their tier status in the programme. Teez Tabor Authentic Jersey
Indian Aviation Industry’s Profitability At Risk, Pricing Holds The Key
A year after posting first profits in a decade, India’s aviation industry is expected to slip back into the red in the ongoing and the next fiscal. Limited ability to hike fares, rising crude oil prices and aggressive borrowing plans to buy planes may eat into the profitability of Indian carriers in the financial years (FY) 2016-17 and 2017-18, a report by aviation adviser and researcher CAPA India said. IndiGo, Jet Airways, SpiceJet, GoAir and Air India Express are expected to remain profitable in FY17, but at a level lower than in FY16. Losses will increase at Air India, AirAsia India and Vistara, which is expected to pull the industry into the red with combined losses of $250-300 million, CAPA said. The industry’s losses could widen to $380-450 million in FY18 with fuel prices estimated to be around $55-60 a barrel and exchange rate in range of Rs 73-75 a dollar, the report said. Indian carriers have ordered 880 aircraft, of which 600-650 are expected to be delivered over the next 10 years. Financing these orders, which have an estimated value of $30 billion, may become challenging, according CAPA India’s outlook for financial year 2017-18. The industry is scheduled to induct 60-65 narrow-body planes and 10-12 small aircraft in FY18, according to CAPA estimates. The airlines are expected to raise close to $1 billion in FY18, led by Jet Airways at $300-400 million. Any delay in raising funds may cost Indian carriers and market conditions are “expected to turn” in the near term, the report said. Fuel expenses are a substantial part of an airline’s operating costs. The sharp fall in global crude oil prices had resulted in steep cuts in airfares in FY16. Crude prices have started rising again, helped by production cuts since January by Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia. U.S. crude, or the generic WTI benchmark, has risen to $55 a barrel in February 2017 from below $30 a year ago. There is uncertainty on where the fuel prices are headed. It largely depends on whether the OPEC bloc continues to cut production to boost prices. Mike Wallace Womens Jersey
Renewable energy mission needs a robust grid network
Air pollution in Delhi and metropolitan cities of India has dominated much of the recent conversation in the judiciary, government and media. Half of the world’s 20 most polluted cities, according to World Health Organization, are in India and these cities are immensely contributing to climate change. On 2 October 2016, India ratified the Paris climate agreement, officially emphasizing its commitment to reduce greenhouse gas emissions. Nonetheless, just two years after embarking on the grand campaign to scale up country’s renewable energy capacity to 175 gigawatt (GW) by 2022, India is facing a serious problem. While wind power has faced curtailment in the past in Tamil Nadu, solar energy is being curtailed for the first time, sometimes over 50% during peak generation periods. Utilities have the discretion to decline buying power in the name of stabilizing the grid or preserving the grid balance. Grid curtailment is one of the biggest operating risks for the future of the solar sector given India’s transmission capacity is already overburdened. The curtailment threat is highest in Jharkhand, where the average daytime power demand is less than 1 GW but the state has already tendered 1.2 GW of solar projects. As India aspires to lead the world in renewables, will the grid be an obstruction or a catalyst for renewable energy development? Causes of the problem The problem is largely a technical one. Solar and wind power are not as easy to control as traditional fossil fuel plants, so power grids need to become flexible enough to handle frequent changes in power generation. Additionally, distance is an issue. In India, six states in the western and southern regions account for 80% of all of the country’s currently installed solar capacity, but only 38% of power demand. For grid operators used to being able to turn fossil fuel plants on and off at will, these changes are easier. If new measures are not urgently put into place to accommodate variable renewable energy sources, a situation can arise where the grid operator will be unable to use solar and wind power when it becomes available. Experience of other countries Other countries have already dealt with this problem with varying degrees of success. Germany and the US have relatively high levels of solar and wind penetration and low curtailment rates, while China has major curtailment as the share of wind and solar in the energy mix increases. Germany achieved low curtailment rates with high renewable energy penetrations through improved grid planning and changes to the power market structure. In another case, the state of Texas implemented smaller changes to how the grid is operated and it made all the difference. For example, the Texas grid operator ERCOT shifted from 15-minute dispatch intervals on the intra-day market to 5-minute intervals, allowing for superior planning around variable wind and solar power plants. (India currently uses 15-minute dispatch intervals.) ALSO READ | Wind power reverse auction today, may witness aggressive bidding Although China has been able to build out renewable energy capacity swiftly over the past decade, it has taken much longer to develop the transmission infrastructure and make the institutional changes required to utilize all of this new power. Grid curtailment issues continue to impact the export of power from solar projects and some provinces such as Gansu and Xinjiang (31% and 26% of curtailment respectively) have been hit severely. Recommendations to government How can India learn from the experience of other countries and rapidly scale up renewables without any wastage or curtailment? 1. Execution of green corridor The variability of solar and wind energy can be mitigated to a large extent through transmission interconnections, thus, the first priority for India is to complete the transmission infrastructure through its $3.5 billion green energy corridor program so that renewable power can be transmitted where it is needed. Further transmission systems need to be built ahead of renewable energy generation as transmission projects typically take up to five years to become operational whereas solar projects become operational within 12-18 months. There are significant power surpluses in some states and power deficits in others. New investment in inter-state and intra-state transmission systems will help balance out such disparities. 2. Strengthening the national grid Accelerating planning and completion of the power grid will enable the country to better manage power problems through efficient transmission system. The objective of “One Nation-One Grid-One Frequency” is necessary to get full utilization of the nearly 175 GW of solar and wind capacity that will be installed by 2022. Besides the National Power Grid, transmission lines within states need to be completed and modernized. This will also enable India to take advantage of the vast amounts of solar energy available from Ladakh, a cold desert and Jaisalmer, part of the Great Indian Thar desert, to power future energy needs of heavy consumption areas. 3. Emerging role of electricity storage Electricity storage will play an important role in reducing curtailment. Electricity storage is unique in the Indian context where more than 300 million people still have no access to power. The cost of storage is still a major barrier to mass adoption, but prices are dropping rapidly. As the price of energy storage drops, it will become an increasingly compelling complement to variable renewable energy. India stands a unique chance of leading the world in electricity storage. To facilitate this, the government should encourage battery manufacturing under the “Make in India” programme, as import of grid-scale batteries due to their extreme weight not only leads to high transportation costs but also creates other logistical challenges. In this regard, the government can co-locate battery manufacturing with top solar regions in India, which are attractive to storage companies. 4. Creation of South Asian grid Flexible generating resources (quick start, swift ramp-up or ramp-down) such as hydro and gas plants along with active distribution management system would go a long way to improve the stability & reliability of the grid. It may be added here that India’s neighbouring countries—Bangladesh, Myanmar, Sri Lanka,