JICA’s Rs 400 crore loan to smoothen traffic on Delhi expressway
Japanese lending arm JICA will provide Rs 400 crore loan to India for computerised traffic control on the under-construction Delhi eastern peripheral highway linking Haryana. It will cover 135-km tolled access control highway starting at Kundli in Sonipat and ending at Palwal, Faridabad. An Intelligent Transport System (ITS) will be deployed on Delhi Eastern Peripheral Expressway to monitor traffic volume and control congestion at toll gates, JICA stated today. The National Highways Authority of India (NHAI) is constructing the Delhi Eastern Peripheral Expressway (EPE). “We expect that this project would not only promote regional socio-economic development, but improve urban environment through mitigation of traffic jams and decrease of pollution caused by increasing vehicles in urban area,” Takema Sakamoto, Chief Representative, JICA India, said in a statement. The Advanced Traffic Management System (ATMS) will be launched to reduce traffic congestion and accidents and the Toll Management System (TMS) will shorten queues at toll gates. ATMS will collect information on road, traffic and weather conditions at traffic control centres and transmit it to road users 24 hours per day throughout a year. TMS will manage toll via radio frequency identification in which a unique tag – FASTag – is attached to passing vehicles and tolls are collected directly from a pre-paid account linked to a central server, removing the need to stop and pay at gates. The agreement was signed between JICA’s Sakamoto and S Selvakumar, Joint Secretary, Finance Ministry. Japan International Cooperation Agency’s (JICA) Official Development Assistance(ODA) will have to be repaid at 1.4 per cent interest for project activities and 0.01 per cent for consulting. The loan tenure of 30 years includes grace period of 10 years. Alex Wood Womens Jersey
With plans of US expansion, Air India to induct wide-bodied Boeing 787-9
The Air India board has approved a proposal seeking to induct the wide-bodied Boeing 787-9 aircraft in the fleet as it plans to expand operations to the US besides launching services to Canada. Air India will lease seven B787-900 planes, the higher range of B787-8 aircraft, for which the Board has given its go-ahead, Chairman and Managing Director Ashwani Lohani said. “The board’s approval for leasing of seven B787-900 planes has come by,” Lohani told PTI. The airline currently has 23 B787-800 planes among others in its fleet, and four more of these aircraft are expected to be delivered to it between July and October this year. Air India has proposed a host of international destinations for launch this year as part of its overseas expansion plans. The national carrier is looking to launch one more destination in the US this year in addition to Washington DC, which will commence operations from July, Lohani said. At present Los Angeles, Dallas and Houston are being explored and air services to one of them could start later this year, he said. Air India is also mulling launching flights to either Vancouver or Toronto in Canada from New Delhi going forward, according to Lohani. Plans are also afoot to increase frequency to Australia and to look at routes in Africa by connecting Mumbai with Mauritius or Nairobi, he added. The Air India CMD also said that flight services to the Danish capital Copenhagen are now likely to start from August instead of May. Air India will also be commencing operations directly to Israel next month. Kelly Olynyk Womens Jersey
AirAsia India seeks exemtion from foreign flying norms
AirAsia India’s Malaysian partner has asked the Indian government to exempt the Indian subsidiary from the 0/20 foreign flying rule. The exemption request was made by Malaysian Business Council to Prime Minister Narendra Modi. “If the exemption from 0/20 is guaranteed, we will start international flights in three months. The Malaysian carriers have exhausted bilateral entitlements and cannot add any more flights to India. Indian carriers, however, do not at all fly to Malaysia. Exemption to Air Asia India would help increase connectivity between India and Malaysia,” Datuk Kamaruddin Meranun, executive chairman AirAsia Berhad told reporters. According to the foreign flying norm, which was revised in June last year, any Indian carrier needs to operate a fleet of 20 aircraft in the country to become eligible to fly abroad. The airline can fly international from the 21st aircraft. Clayton Stoner Authentic Jersey
Government sets up National Board for Electric Mobility seven years after approval
More than six years after it was approved by the UPA government, the Centre has constituted NBEM to promote electric mobility and manufacturing of electric (& hybrid) vehicles and their components. The Union Cabinet chaired by former Prime Minister Minister Manmohan Singh had on March 31, 2011 cleared the proposals for launch of the National Mission for Electric Mobility and setting up of a National Board for Electric Mobility (NBEM) and National Council for Electric Mobility. The NBEM will examine, formulate and propose the short-term and long-term plan and contours of the mission programme on electric mobility, its objectives, quantifiable outcomes and roles & responsibilities of the various stakeholders. It will propose and recommend policy guidelines and government interventions and possible strategies for promoting electric mobility and for encouraging manufacture of electric vehicles in the country. One of its key functions will be to explore and recommend collaborations and tie-ups for technology acquisitions, obtaining technical experts and explore possible agreements with leading R&D centres globally to facilitate availability of technology to the domestic industry. The NBEM, to be chaired by the Secretary of Department of Heavy Industry, will comprise of senior bureaucrats as members, including secretaries in the Department of Economic Affairs, Department of Revenue, Ministry of Power, Ministry of Road Transport & Highways, Ministry of Petroleum & Natural Gas, among others. It will also have six nominated members of eminence and expertise from the automobile industry, academia and research & development. These include Vikram Kirloskar, CMD, Kirloskar Systems Ltd; Vinod Dashari, MD, Ashok Leyland; Pawan Goenka, MD, Mahindra and Mahindra; Annamalai Hemalatha, MD, Ampere Vehicles Ltd and Sudarshan Venu, Joint MD, TVS Motors. The nominated members will have a tenure of two years, or until further government order, whichever is earlier. These members can be re-nominated for additional terms, if needed. The NBEM will coordinate and resolve difference of opinion, if any, among various ministries. It will examine, recommend, monitor and review electric mobility related R&D projects and pilot projects and also evaluate and propose business models for popularising electric mobility. It will formulate strategies and give directions to the various ministries and other stakeholders for implementing the decisions of the National Council for Electric Mobility. Bruce Ellington Authentic Jersey
Depressed domestic prices make IEX look abroad for power trade
The India Energy Exchange is looking to garner a share of the power trade with neighbouring countries as subdued demand in the domestic spot market has depressed average tariffs. In its representation to the Central Electricity Regulatory Commission, short-term power purchase market IEX has noted, “…Cross Border trade through Power Exchange should be incorporated in view of the Cross Border transactions in TAM (Term Ahead Market) segment.” This will allow the power producers to directly offer electricity to power distribution companies or to nodal agencies appointed by the neighbouring countries through the IEX platform. Domestic consumers can also directly purchase power from designated authorities. Currently, India has transmission networks with Nepal, Bhutan and Bangladesh and power transfer is permitted after the government approval. “We estimate a power demand of 100 MW to 200 MW per day from cross border trade in the spot market immediately and this is going to grow,” Director, Business Development at IEX, Rajesh Mediratta told BusinessLine . The exchange currently trades over 4,900 MW of power per day in the domestic market he added. Power prices in the spot market have been depressed over the past two years. According to data shared by IEX, the average Market Clearing Price for February 2014 was Rs. 3.29 per unit, this fell to Rs. 2.85 per unit in February 2015, then to Rs. 2.30 per unit in February 2016 and has risen marginally to Rs. 2.54 per unit in February 2017. Low demand Due to the relatively low demand from abroad, prices are not expected to move upwards substantially. However, the prospect of increasing cross border power trade can push them up in the long run. Mediratta explained that the low prices have promoted domestic power traders to explore neighbouring markets. “There is a demand from local traders to sell power in Bangladesh and Nepal,” he said. The other trigger for increasing cross border trade is the government push to increase renewable energy in India’s energy mix. Mediratta said, “Hydro Power generators from Bhutan having merchant capacity are looking forward to trading on the exchange with Indian consumers.” According to the Central Electricity Authority India has turned around from a net importer of electricity to net exporter of electricity during the current financial year (April to February 2017). India has exported around 5,798 million units to Nepal, Bangladesh and Myanmar. This is 213 million units more than the import of around 5,585 million units from Bhutan. The export to Nepal increased 2.5 times and export to Bangladesh has grown by 2.8 times in the last. Rishard Matthews Jersey
Infrastructure: As far as private power producers are concerned, no light at the end of the tunnel
With around 45,000 MW of power capacity running at sub-60% Plant Load Factor (PLF), servicing their staggering debt of `1.9 trn has become a challenge for India’s thermal power producers. To make matters worse, state discoms have been unwilling to sign power purchase agreements (PPAs) with private producers, opting for central and state power utilities instead. The PLF of the private sector’s coal-based plants fell to 56.45% in the ten months to January 2017 from 83.9% in FY10, as per data available with the Central Electricity Authority. The figure stood at 62.60% in January 2016. The authority estimates that another 50,000 MW capacity would get commissioned over the FY18-22 period. The central and state utilities would account for 50% of this capacity and the private sector for 40%. Unfortunately, things are unlikely to get any better in the near future. “As the short-term power prices are likely to remain benign and discoms are unwilling to sign PPAs, capacities are unlikely to see an increase in PLF going forward,” Salil Garg, Director Corporate at India Ratings, says. An analysis of the financials of power producers like GMR Infrastructure, GVK Power & Infrastructure, Lanco Infratech, KSK Energy, and Jindal India Power Ltd reveals the state of affairs as far as private power producers are concerned. GMR Infrastructure suffered a loss of `381 crore in the third quarter of FY17 compared with a profit of `40 crore a year ago. Two of its coal-based power plants—GMR Warora Energy Venture Ltd and GMR Kamalanga Energy Ltd—registered an accumulated loss of `3,022 crore as of December 31, 2016. GMR Chhattisgarh Energy, another subsidiary, saw lenders taking control of the project in February by converting `2,992 crore of the `8,800 crore debt into equity. Lanco Infratech, an infrastructure-cum-power company, incurred a loss of `813 crore for the third quarter ended Dec 31 compared with a profit of `35.19 crore a year ago. The earnings before interest and tax (EBIT) for its power segment dropped 47.24% to `232.10 crore and the revenues fell around 20% to `1,190 crore. The company is looking at options to sell its operational assets. As for GVK Power & Infrastructure, it incurred a net loss of `71 lakh in Q3, compared to a loss of `6.80 crore a year ago. For its single coal-based power plant in the Taran Taran district of Punjab, the company is facing fuel supply issues. Another Hyderabad-based power producer, KSK Energy Ltd, saw its losses growing to `17 crore in the third quarter from `14 crore a year ago. The company is believed to be in talks with lenders to refinance its Mahanadi project debt—`11,691 crore of the total `19,000 crore—under the 5/25 scheme of the Reserve Bank of India. The fall in tariffs in solar and wind segments has compounded problems for thermal power producers. “The drop in tariff for solar projects to `2.97 per unit in the latest bidding in Madhya Pradesh and the levellised tariff of `3.34 per unit would be an additional burden for conventional power generators, as their cost of production has gone up due to cost overruns on fuel supply and environmental clearances,” an analyst with a Mumbai-based foreign brokerage says. The renewable segment is likely to see consolidation going ahead as the government’s target of attaining 175,000 MW of renewable energy capacity by 2022 approaches closer, he adds. As much as 15,000 MW of solar and 9,000 MW of wind capacity creation is likely to be targetted in the new financial year (FY18). Maurice Cheeks Womens Jersey
Hot weather powers IEX volumes to all-time high; average trade price rises to Rs 3 kwh
The current heat wave conditions in North, West, and Central India has taken the trade volumes on the Indian Energy Exchange to an all- time high as discoms across states are resorting to the spot market to meet shortfalls, a senior exchange official told FE. The total volumes traded on the IEX has increased to 147 million units (MU) per day in the last five days as against an average of 120 MU per day earlier, Rajesh Kumar Mediratta, director Business Development at IEX told FE on Friday. “This time summer like conditions have come at least 15 days early. Last year we saw similar conditions in April. The average traded price has also increased to `3 per kwh compared with `2.20 to `2.40 in January-February,” Mediratta said. States like Gujarat and West Bengal are buying in large quantities of spot-market power, both to support shortages due to heat wave conditions and also to meet the shortfall due to shutdown of plants. Gujarat and West Bengal are at present buying around 1000 MW each from the exchange, while Maharashtra, and Southern States of Telangana, Karnataka and Tamil Nadu are buying between 100-200 MW of electricity. Erratic temperature transition might also explain the sudden surge in exchange prices. The sudden change in temperatures has led to abrupt surge in electricity consumption. Temperature during the last week of March was 4-6 degrees above normal, constituting heat wave conditions in many areas of the country. The rise in consumption from government policies has also brought a lot of people into the electricity grid, leading to surge in power demand especially in the summer. Sambitosh Mohapatra, partner, energy and utilities at PwC told FE that the state discoms reaping the benefits of the Ujwal Discom Assurance Yojana (Uday) scheme are partly responsible for the increase in spot electricity trading from the energy exchanges. Discoms across the participating states have saved `11,989 crore in interest costs till December 2016 after joining the scheme. Better liquidity has improved their ability to procure power. Off late, state discoms were signing long term power purchase agreements (PPAs) at a much lower rate. The power generators without any PPAs from the states would gain from the surge in spot market prices. That would indirectly benefit the banks and the financial institutions who funded these projects, as surge in spot market trade might help some power plants become operating assets from NPAs. Some analysts believe that thermal capacity of around 8,100 MW in North India was lying idle due to feasibility factor. These may come on-stream as demand for power surges in the coming months. “This would keep the increase in price on IEX under check,” said analysts. This is the first summer when the Indian power infrastructure is witnessing the combined effect of all these phenomena. The power ministry on Friday took a review of power supply position, and preparedness of various power utilities during the forthcoming summer. It noted that peak demand during the summer is expected to be of the order of 165 GW. “We see atleast 10% increase in solar power generation during the year if the trend continues in April,” said Gangadhar Rao, an independent solar power consultant based out of Bengaluru. However, Mytrah Energy, a developer of solar and wind energy plants, has a different outlook. The company noted that solar generation tends to be a little lower in summer as the heat affects the performance of the modules. Vita Vea Authentic Jersey
India’s gas production to rise over 40 per cent to 125 mmscmd over the next decade: ICRA
India’s natural gas production is set to rise by over 42 per cent to 125 million standard cubic meter per day (mmscmd) over the next decade through 2027 owing to a market-linked pricing formula and the marketing freedom allowed by the government to companies, according to research and ratings agency ICRA. “The pricing formula along with the marketing freedom could improve the viability of gas discoveries in challenging fields and could lead to higher domestic gas production over the longer term. ICRA expects domestic natural gas production to increase to around 110 mmscmd by 2020-21 and to 125 mmscmd by 2026-27 from the current level of around 88 mmscmd,” ICRA said in a statement. It added that apart from marketing and pricing freedom for gas discoveries (not yet commenced production), the centre has also announced various reforms like implementation of the revenue-sharing model, a uniform licence framework and an open acreage policy under the new Hydrocarbon Exploration Licensing Policy (HELP) and reduction in royalty rates for the deepwater and ultra-deepwater areas which could aid in incremental gas production over the long term. The recent fall in prices had made future development of many gas fields unviable. But the government provided marketing and pricing freedom (subject to a price ceiling) to players operating in deepwater, ultra-deepwater and high pressure-high temperature areas that were yet to commence commercial production as on January 1, 2016. Natural gas price ceiling for the challenging areas are US$5.3 per mmbtu as of now but this may keep varying in line with the prices of substitute fuel. According to ICRA, the capacity utilisation levels of some gas transmission pipelines would remain sub-optimal in the near to medium term due to shortage of gas supplies but would show an increasing trend with rising LNG consumption. “Further, with incentives being offered for challenging fields, domestic gas production is expected to improve over the long term, which along with the rise in re-gasification capacity, could lead to an increase in pipeline utilization,” it said. India’s total natural gas supply potential is expected to increase over the next five to six years with higher domestic production and commissioning of firm re-gasification capacity during 2018-22. With the increase in supplies, the difference between the projected demand and supply potential is expected to narrow down 2019-20 onwards. However, the upcoming LNG capacities may operate at relatively lower utilisation than the current utilisation of regasification capacities in the country, according to ICRA. The price sensitivity of R-LNG demand would be critical in this regard. Analysts believe if many re-gasification terminals, as planned, come on stream over the next four to five years, the new entrants would face significant pressure on volumes and margins as they will have to compete with the existing terminals and brownfield expansion, which are more cost efficient because of lower capital intensity. Sub-optimal capacity utilisation and lower regasification margins could put significant pressure on the returns and credit profiles of new entrants, especially in the initial years of operations. Jeff Beukeboom Authentic Jersey
Works worth Rs 7000 crore to be started in 2 years in J-K: Nitin Gadkari
Union minister Nitin Gadkari has said work on projects worth Rs 7,000 crore would be started by the Ministry of Road Transport and Highways in the next two years in Jammu and Kashmir. “I want to assure you that in coming two years we will start works worth Rs 7,000 crore in the state,” he said at a rally yesterday. “I am happy that the Prime Minister has dedicated the biggest road tunnel to the nation,” he said after Modi inaugurated the Chenani-Nashri tunnel, which will reduce the travel time between Jammu and Srinagar by around two hours and the distance by 31 kilometres. “We are working on 13 new projects in Jammu and Kashmir and I hope that it will further strengthen the road network and road communication for people,” the Union Minister of Road Transport and Highways said. He said work on ring roads in Jammu and Srinagar would start in the next three months. “I am happy to announce that the ring road in Jammu and Srinagar, costing around Rs 2,100 crore and Rs 2,200 crore respectively, are going to be constructed. “Tenders have been floated for the Jammu ring road, while that for the Srinagar ring road will be floated in next two months and within three months, the work will start on both the projects,” he added. The Centre will also float a tender for construction of the Zojila tunnel which will cost around Rs 6,000 crore in the next two months, Gadkari said, adding with the construction of the tunnel, the highway to Leh and Kargil districts of the Ladakh region will become an all-weather road. “The Prime Minister had announced a package of Rs 24,160 crore for Jammu and Kashmir, out of which, I am happy to announce, projects worth Rs 4,463 crore have been implemented,” he said. “I want to assure the people of Jammu and Kashmir that the Prime Minister’s focus and vision is to make India a vibrant and strong country,” he said, adding “the PM wants to build best infrastructure in the country which will be no less than that of any other country.” On the newly inaugurated tunnel, Gadkari said, “This tunnel will result into job creation, the state’s hotels, motels and related businesses will get a boost and that will create new job opportunities for unemployed youths of Kashmir.” “The Chenani-Nashri tunnel is a state-of-the-art project. It will boost tourism and increase employment potential and ensure supply of essential goods. It is a revolutionary step. “It is a very proud moment for all of us. Sophisticated electronic arrangements of global standard were made,” the minister added. Keegan Kolesar Womens Jersey
Rs 1.2 lakh crorer spent on national highways development in 3 years
A total of Rs 1.2 lakh crore was spent on development of national highways during the last three fiscals, Parliament was informed today. “About Rs 1,20,036 crore have been spent on the development of national highways during the last three financial years 2013-14, 2014-15 and 2015-16,” Minister of State for Road, Transport and Highways Pon Radhakrishnan told Lok Sabha in a written reply. A total of Rs 71,517 crore was spent by the private sector on national highways construction under PPP mode during the last three years, the minister said in a separate reply to the lower house. The minister said that private companies that got work from NHAI during the last three years included Larsen & Toubro, IL&FS Engineering, HCC, IRB Infrastructure, IRCON International, Ashoka Buildcon and Dilip Buildcon. Jason Spriggs Jersey