Solar power tariff falls by 80% in seven years
Solar power tariff in the country has fallen by 80% since 2010. The maximum tariff for solar power was seen in December 2010 when 150MW was sold at Rs 12.76 per unit under the Jawaharlal Nehru Solar Mission. Since then, the tariff has fallen steadily with the lowest tariff of Rs 2.44 per unit for 500MW in Rajasthan. The solar power tariff has been falling only when the states or agencies go through the bid mode. Tamil Nadu which followed the power purchase agreement does not figure in the list of states that took advantage of falling solar power tariff until 2015. “Reduction in solar power tariff depends on several factors like solar irradiance, project cost, debt-equity ratio, cost of financing, return on equity, operation and maintenance cost,” said Union power minister Piyush Goyal in Lok Sabha on Thursday. “In 2015, when Tamil Nadu signed several MoUs with solar power companies for Rs 7.01 per unit, states like Rajasthan and Madhya Pradesh had firms quoting Rs 5.25 per unit. We did not capitalise on the falling tariff of solar power as we were following the power purchase agreement (PPA),” said a power expert, not willing to be named. A look at the data presented by the power minister shows that the solar power tariff across the country started falling from Rs 6.88 per unit to Rs 4.63 per unit in nine months of 2015. “We wanted to adopt the tender process way back in 2013 and we received the lowest bid of Rs 5.97 per unit but TNERC rejected it and adopted the PPA model,” said a TNEB official. Compared to several sunshine countries, India’s solar power tariff is still high. While in Dubai, the tariff in May 2016 was US cent 1.99 per unit, in Abu Dhabi in September 2016, per unit tariff was US cent 2.42 per unit. In South America, the tariff was slightly higher. Chile has a tariff of US cent 2.91 and Mexico at US cent 2.7 per unit. Vernon Davis Jersey
You will soon get diesel delivered at your doorsteps, courtesy IOC
State-run oil marketing companies like Indian Oil Corporation (IOC) are likely to launch home delivery of diesel within two months, once Petroleum and Explosives Safety Organisation (Peso) comes up with a regulation in this regard. “So far, there are no norms in place for home delivery of petrol and diesel. Peso is working on it and we would certainly like to go ahead with it once a regulation is in place. We are more aggressive on diesel, as it is a much safer fuel compared to petrol for handling,” said Sanjiv Singh, chairman of IOC. The idea for home delivery of fuel was mooted by petroleum minister Dharmendra Pradhan at a meeting of the consultative committee of Members of Parliament in Srinagar early this year as the effort may increase digital transactions in the sector. “Peso is likely to come up with the regulations in two months and once it is in place, we will launch home delivery of diesel,” said B S Canth, director of marketing in IOC. The idea was floated in order to reduce the long queues outside fuel outlets and to get it delivered at doorsteps. Walt Weiss Jersey
IndianOil, partners look for cheaper site for Pacific NorthWest LNG terminal
Indian Oil Corporation Ltd said it is in talks with its partners to scout for an alternative, cheaper site for the Pacific Northwest LNG terminal after the recent pullout of the lead developer cast doubt on the future of the Canadian project. Malaysia’s state-owned Petroliam Nasional Bhd (Petronas), which held a majority 62 percent stake in the proposed C$36 billion ($29 billion) Pacific NorthWest LNG Project in British Columbia, said last week it was abandoning the plan due to weak global prices. Sanjiv Singh, chairman of Indian Oil, which has a 10 percent stake in the Canadian project, said the company remained interest in going ahead with at least part of the plan. “We are very much positive going ahead with the upstream part of it, which is gas production. Liquefaction and transportation further in the liquid form we are not pursuing, I mean, we don’t want to pursue very aggressively as of now,” he told a news conference. “We are also looking at a different location which might be much less expensive than the earlier one,” Singh said. Indian Oil’s head of business development, G.K. Satish, said consortium partners are talking about alternatives. He declined to comment on write-offs IOC might be taking in the next quarter for investment in the Canadian LNG project. Petronas’s pullout dealt a blow to the project and its partners which would now have to invest additional capital to complete the project. Indian Oil is the first partner to suggest the project could still go ahead, in modified form. “Cost of liquefaction, transportation and retail outside Canada has gone up. And today we are finding that it may not be very attractive at the present prices,” Singh said. The other partners in the project are Chinese oil and gas giant Sinopec, with 15 percent, Japex Montney Ltd, with 10 percent, and Petroleum Brunei, with 3 percent. Petronas may have to write off up to $800 million for work already done on the Canadian project, analysts say. Japan Petroleum Exploration Co (Japex) said on Wednesday it would take a loss of about C$102 million ($82 million) due to the scrapping of the project. Indian Oil Corp planned to lift 1.2 million tonnes of the super-cooled fuel for 20 years from the British Columbia project for its 5 million tonne a year regasification LNG plant at Ennore in eastern India. Indian Oil was expecting deliveries from the western Canadian project to begin in 2020. The company said it also expected a “slight delay” from Cameron LNG project in the United States and will see deliveries by the end of 2018. Indian Oil will float a tender to import 2 million barrels of high sulphur U.S. crude in August. It intends to import high sulphur oil from the United States for as long as benchmark WTI prices are depressed, Finance Director A.K. Sharma said. Tim Heed Womens Jersey
Prices of subsidised LPG zoom 16 per cent since Modi took charge
The prices of subsidised cooking gas zoomed by 16 per cent, from Rs 414 per cylinder when the Bharatiya Janata Party (BJP) government came to power in May 2014 to Rs 479.77 in August 2017, despite global crude oil prices dipping by about 49 per cent. The Narendra Modi-led government had stormed to power in 2014 on the back of serious corruption charges against the Congress-led regime and the rise in prices of commodities like cooking gas, against which the BJP had raised its voice. Interestingly, the price of liquefied petroleum gas (LPG) was revised 22 times by oil marketing companies (OMCs) like Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) since May 2014, when the BJP government took charge. However, on the back of a 49 per cent drop in international crude prices, from $102.71 a barrel on May 30, 2014, to $52.16 (Brent crude) on August 3, 2017, prices of non-subsidised cylinders dipped 44 per cent, from Rs 928.50 per cylinder in May 2014 to Rs 524 in August 2017. Also, in an effort to reduce the subsidy burden or to completely do away with the subsidy, OMCs are authorised to increase prices of subsidised domestic LPG cylinders by Rs 4 per month till March 2018. “The government stands committed and will continue to provide subsidy assistance to the needy and poor households,” said an official close to the development. The subsidy amount on a 14.2-kg cylinder transferred to the accounts of Delhi consumers stands at Rs 86.54 currently, which the government wants to do away with or reduce to the range of Rs 40 per cylinder by March 2018. The current national average of LPG subsidy per cylinder comes to the tune of about Rs 58 per cylinder. This comes at a time when the Modi government is increasing the penetration of LPG through the Pradhan Mantri Ujjwala Yojana, by providing 50 million new connections to women belonging to below poverty line (BPL) families over a period of three years, starting from financial year 2016-17. So far, over 25 million connections have been given under the scheme. “With the expansion of LPG coverage, it is an imperative to rationalise the subsidy component so as to ensure that while the needy and poor are fully protected, at the same time, the affluent households should pay little more price given their rising income and higher paying ability,” the aforementioned official added. In July 2016, Delhi was declared a kerosene-free city. If you consider the prices prevailing in Kolkata, from May 2014 up till now, they have also seen a 57 per cent surge, from Rs 14.9 per litre to Rs 23.36 per litre. In the past three years, the total number of households having LPG connections has remarkably increased from 140 million in April 2014 to 210 million in July 2017. The LPG penetration has increased from 56 per cent to 76 per cent in that period. According to the BJP government, the step to decontrol prices was initiated by the Manmohan Singh government. In June 2010, an empowered group of ministers met under the chairmanship of then finance minister Pranab Mukherjee to look into the issue. “It was in this meeting that it was decided that the price of domestic LPG will be increased by Rs 35 per cylinder in Delhi, with corresponding increases in other parts of the country. Thereafter, the price would be periodically revised based on the increase in paying capacity as reflected in the rising per capita income,” said the official. Interestingly, all key Opposition leaders, including Sharad Pawar, Mamata Banerjee, Kamal Nath, Sushilkumar Shinde, Murli Deora, and M K Alagiri, were present at that meeting. In June 2010, petrol prices were deregulated and linked to international markets, which was followed by diesel prices in October 2014. However, despite these hikes, LPG prices in India remain below international standards. Earl Thomas III Jersey
It Is In Government’s Interest To Protect Air India Jobs: Arun Jaitley
Finance Minister Arun Jaitley today said a “proper decision” would be taken on Air India’s future in a competitive market and that it would be in the government’s interest to protect jobs at the airline. His remarks come at a time when a group of ministers headed by him is working on the modalities for the divestment of loss-making Air India. In a competitive market, challenges are different and a “proper decision” would be taken on what Air India has to do in such a market, Jaitley said in the Lok Sabha. “Is mein karmchariyon ke services bachee rahen, is mein hamara bhi swarth hai (It will be in the interest of the government to protect the jobs at Air India),” he said while replying to a discussion on Supplementary Demands for Grants. Noting that the airline has a debt of Rs. 50,0000-55,000 crore which is “not small”, he said, “now we have to decide what has to be done with the Air India”. He also wondered for how long can tax collected from the public be given to the public sector airline. The previous UPA government had extended bailout package worth little over Rs. 30,000 crore to the national carrier for a 10-year period starting from 2012. Air India has a share of around 15-16 per cent in the domestic market while some 84-85 per cent passengers are flying in private airlines, Jaitley said. Nathan Shepherd Jersey
AAI land monetisation plan on hold
The Centre has put on hold a plan to amend the law to enable monetisation of land assets owned by the Airports Authority of India (AAI) announced in the Union Budget 2017-18 by Finance Minister Arun Jaitley. In his Budget speech, the Finance Minister had said that money raised through monetisation of land assets will be utilised for airport upgradation. The Centre had initiated a proposal for amending the Airports Authority of India (AAI) Act, 1994 for liberalising land use at airports owned by AAI as mentioned in the National Civil Aviation Policy (NCAP) 2016, Minister of State Civil Aviation Jayant Sinha said in a written reply in Rajya Sabha on Tuesday. However, the GMR-led Delhi International Airports Ltd. had challenged the provision in the NCAP 2016 in Delhi High Court which declared it as “ultra-vires.” “Thus, the proposal of amendment in the AAI Act has been kept in abeyance. Ministry of Civil Aviation has approached the Supreme Court against the decision of Delhi High Court and the matter is presently sub-judice,” Mr. Sinha added. William Jackson Authentic Jersey
Air India’s current business ‘not sustainable’: Government tells Parliamentary panel
Air India’s current business is “not sustainable” as it is neither able to generate enough cash flow nor start repaying even the principal amount on its debt, the government has told a Parliamentary panel. With the Cabinet giving “in-principle” approval for selling stake in the loss-making Air India, a ministerial panel is working on the final contours of the proposed disinvestment. Against this backdrop, a parliamentary panel has sought details on the Air India disinvestment decision. Sources said the civil aviation ministry has provided a brief overview about the factors that led to the decision to sell Air India stake to the panel. In the current scenario, Air India is not in a position to generate enough cash flow, to be in a position to start repaying principal amounts on its debt, the ministry has told the panel, according to sources. Doug Middleton Authentic Jersey
DGCA starts safety audit of country’s airlines
As an audit of India’s aviation sector by the International Civil Aviation Organisation (ICAO) nears, the local regulator has launched an evaluation of the country’s airlines for their compliance with safety standards. The Directorate General of Civil Aviation (DGCA) audit is seen as part of the local body’s preparation for the international audit, which comes in the backdrop of increased instances of safety violation in Indian skies. Adverse findings during the evaluation by ICAO, a UN watchdog, could result in foreign aviation regulators imposing sanctions on India. “The airline audit will check them (carriers) on almost all parameters,” said an official in the know, who did not want to be named. Airlines confirmed the development. “These audits by DGCA cannot be surprise audits and they need to inform us and seek dates for the audit,” said an executive at an airline. “Our audit is likely to happen in September.” The number of safety violations reported in Indian skies increased by more than half in 2016 compared with the previous year. According to DGCA data, it took 422 enforcement actions last year, compared with 275 in 2015. And, this at a time when India has become the fastest growing aviation market, registering more than 20% growth in passenger traffic and capacity in each of the past two years. After an audit in 2012, the UN watchdog had placed India on its list of 13 worst-performing nations in terms of air safety, triggering a downgrade of Indian aviation by the US Federal Aviation Authority two years later. The ratings were finally restored in 2015. Such downgrades could hamper Indian airlines’ services to foreign destinations as well as their ability to form codeshare tie-ups. ICAO wanted to conduct the audit in March this year, but agreed to a request from the aviation ministry that it do so later as March also marked the end of financial year in the country. It conducts audit in areas related to legislation, organisation, licensing, operation, airworthiness, accident investigation, air navigation and aerodromes. DGCA officials said the regulator was prepared for the international audit. “One of the concerns was of strengthening regional offices and stationing flight operations inspectors at regional offices. We have almost completed that and we have already placed people at regional offices in Mumbai and Bengaluru,” said a senior DGCA official, who also spoke on the condition of anonymity. The aviation regulator has every requirement in place and will comfortably clear the ICAO audit, he added. Manti Te’o Womens Jersey
Power workmen threaten stir in Chandigarh
The Electrical Workmen Union on Wednesday set a deadline of August 17 for the authorities to meet their long-pending demands. If the authorities fail to comply, the union will stage protests from August 18. The decision was taken in the meeting of the union, which was chaired by its president Kishori Lal. In the first phase of the agitation, effigy burning processions will be organised and then relay hunger strikes. The demands include categorisation of technicians as per orders of the administration, implementation of old pension scheme in regards to the workers regularized after 2004, implementation of labour laws in respect of contractual employees, filling up of 40 vacant posts and special allowance to workers at par with Punjab. UT Powermen Union is also at loggerheads with the administration for non-fulfilment of their long pending demands. Anthony Hitchens Womens Jersey
CAG audit report on MRPL’s Planning and Implementation, laid in Parliament
The Comptroller and Auditor General has reported deficiencies in planning and execution of capital projects, operation of processing units, and operation of support facilities, leading to cost and time overruns at Mangalore Refinery and Petrochemicals Ltd. These discrepancies have been highlighted in the performance audit report on the Planning and Implementation of Phase III Expansion Project of Mangalore Refinery and Petrochemicals Ltd, tabled in Parliament on Wednesday. CAG notes that the initial project cost to increase the refinery capacity from 11.82 mmtpa to 15 mmtpa was estimated at Rs 79.43 billion in 2006. The estimates of cost underwent changes from time to time due to change in capacity and the addition and deletion of various units. As of October 2015, the total adjusted estimated cost of the project worked out to Rs 163.23 billion. Against this, the company had incurred an expenditure of Rs 148.32 billion by March 2016. The project, which was initially proposed to be completed in June 2010, was actually completed in June 2015. Chidobe Awuzie Jersey