ONGC, OIL push crude oil output up by 0.24%, natural gas by 4%
The country’s crude oil output rose 0.24 per cent and natural gas production was up 4.04 per cent in the June quarter of 2017 due to a push from state-run companies like Oil and Natural Gas Corporation (ONGC) and Oil India (OIL). Cumulative crude oil production by ONGC in Q1 was 5,640.77 Thousand Metric Ton (TMT), which is 0.22 per cent lower than the period’s target but 2.71 per cent higher than production during the year-ago period. OIL produced 839.86 TMT, about 5.22 per cent higher than the last year’s corresponding period. However, the production from private and joint venture (JV) fields dropped 6.23 per cent to 2,541.74 TMT y-o-y. The overall crude oil output in June 2017 was 0.6 per cent higher than June 2016, owing to a better performance by public sector undertakings. On the other hand, cumulative natural gas production during the April-June period rose 4.04 per cent to 8,057.72 million metric standard cubic meters (mmscm) y-o-y. During the quarter, ONGC produced 10.76 per cent higher than the year-ago period’s production, while OIL’s output fell 0.98 per cent compared to last year. Cumulative natural gas production by private and JV players in Q1 was 1,605.39 mmscm, 12.82 per cent lower than the production during the corresponding period of the last year. In June, the country’s natural gas production zoomed 6.05 per cent y-o-y. Closure of some wells in Rajasthan and Panna-Mukta majorly contributed to the drop in private sector’s crude oil production. Meanwhile, under performance of coal bed methane wells at Sohagpur West by Reliance Industries (RIL), closure of few wells in Raniganj East by Essar, delay in grant for petroleum mining lease in Hindustan Oil Exploration Company (HOEC) and closure of two wells in D1D3 field and one well in MA field in KG-DWN-98/3 by RIL are the major reasons behind the drop in natural gas production by private sector compared to the year-ago period. Refinery production in June 2017 was 20,057.80 TMT, 0.11 per cent higher than the target but 0.54 per cent lower y-o-y. Cumulative production in Q1 was 60,898.38 TMT, 1.04% higher than the output during the year-ago period. Chris Scott Jersey
Buy abroad diktat doesn’t worry India’s solar sector
India has to make suitable policy changes by December this year to remove measures it had undertaken to protect its fledgling solar manufacturing sector from foreign competition, according to a recent notice issued by the Dispute Settlement Body (DSB) of the World Trade Organisation (WTO). DSB adjudicates on trade disputes between national governments. “The United States and India have agreed that the reasonable period of time for India to implement the recommendations and rulings of the DSB in the dispute ‘India – Certain Measures Relating to Solar Cells and Solar Modules (WT/DS456)’ shall be 14 months from the October 14, 2016, date of adoption of the DSB recommendations and rulings. Accordingly, the reasonable period of time expires on December 14, 2017,” DSB said in a communication on June 16. “We have been given time till December and have been asked to complete all on-going projects. We will not be able to keep the provision of a secure market for Indian suppliers. Even Indian projects, which are owned by the private sector, cannot have Domestic Content Requirement (DCR),” said an official in India’s Ministry of New and Renewable Energy (MNRE). “However, WTO permits us to do projects by the government. So, if the government or its public sector units are undertaking a project, they have the provision of DCR.” On February 6, 2013, the United States had requested consultations with India concerning certain measures of the country relating to domestic content requirements for solar cells and solar modules. The matter reached the level of a dispute, was taken to the WTO, and was settled in October 2016 in the favour of the US. The June statement comes after India accepted the ruling. The December deadline is not a surprise, according to Raj Prabhu, CEO and co-founder of Mercom Capital Group, a clean energy consultancy. “Public sector units were already reluctant to tender DCR projects due to cost issues. The government has finally realised that it has to pay from its own pockets to pursue protectionist policies,” he told indiaclimatedialogue.net . “Some manufacturers will lose out, but most have not invested in R&D, so the result is not unexpected.” According to Bridge to India, a renewables consulting firm, India provided some breathing room to local manufacturers through DCR and toyed briefly with anti-dumping duties. However, such protectionist measures have not helped local manufacturing anywhere in the world and the share of imports in India has continued to go up from 74 per cent in 2014-15 to 89 per cent in 2016, it said. There are no real threats to the Indian solar industry in the short-term, Prabhu said. “The government is all for lowest power prices and it is doubtful they will disrupt the markets when they are getting solar power at cheaper prices than coal. With DCR tenders disappearing, some manufacturers will fail, but most of the jobs in solar are in project development and not manufacturing.” The Indian solar sector had brushed aside any worries earlier as well. However, there had been some concern just after the WTO ruling came out. Madhavan Nampoothiri, founder-director of RESolve Energy Consultants, also believes there will be no major impact due to this ruling. However, the capacity utilisation of domestic manufacturers, which is already low at an industry level, could go down further, Nampoothiri said. The MNRE official said private developers who own a project, and install and develop it on their own and then sell power to the discoms will not have the DCR component. But projects owned and undertaken by government-owned National Thermal Power Corporation, Coal India or Solar Energy Corporation of India will continue to have the local content policy. “We have a scheme called Central Public Sector Units (CPSU) and, under this, there was a target of 1,000 MW. Now, we are in the process of bringing the second phase of this scheme, which will have a target of 7,500 MW,” he said. “Once that comes, the Indian industry supplier will have an adequate market.” Prabhu explains that even when the DCR category was in place, Indian manufacturers were way behind the Chinese. “As of now, there is no competition between the two as Indian solar manufacturers form a negligible part of the global solar manufacturing industry. Solar tariffs have been going down largely due to cheaper Chinese modules, for example, in Rewa, Kadapa and the Bhadla solar parks. The Indian solar market is completely dependent on Chinese modules now and the Chinese are subsidising Indian solar installations.” “It is a fact that our suppliers are not competitive enough. Their prices are higher than the imported ones and that is precisely the reason why for the developer mode projects, they would always opt for the cheaper Chinese modules, since they have to compete,” said the MNRE official. “When it comes to bidding for a tariff, the cheapest one will give benefits, so they opt for it. This is unfortunate but is the case now.” Bridge to India suggests that instead of considering a short-term response to this issue, “the Indian government should consider long-term implications for the sector and send a clear policy signal to reduce uncertainty for all stakeholders.” India’s National Solar Mission talks of creating a domestic manufacturing supply chain. However, market dynamics have not supported that vision, says Prabhu. “Currently, the Indian module manufacturing business model is built on importing Chinese cells and assembling them in India.” The MNRE official said that the Indian government doesn’t want to remain dependent on imported solar cells modules and is committed to supporting the industry. “We will ensure that some kind of policy is always in place to support the solar industry,” he said. Tyler Myers Authentic Jersey
In two years solar energy for residential sector would be cheaper than electricity grid: Solar players
In the next two years, solar power will be cheaper than the electricity grid in the residential sector, says solar energy provider SunSource Energy which on Monday successfully implemented the first two phases of a 100 MW solar project in South East Asia. Stating that while the solar energy in India has already reached ‘grid parity’ in commercial, industrial and utility sectors, soon this would be achieved in residential sector as well. The grid parity happens when the cost of the electricity produced by an alternative source — solar in this case — becomes lesser or almost equal to that being supplied from the conventional source e.g coal. At present, India has installed capacity of 327 GW (One GW is equal to 1000 MW), of which about 40 GW is Solar (12 GW) and Wind energy (27 GW) combined. About 70 per cent of power comes from coal-based power plants and the remaining from hydro and other sources like biogas. “Solar energy in India has already reached grid parity in the commercial, industrial and utility sectors. In most scenarios, in the next two years solar power would be cheaper than the electricity grid in the residential sector as well,” said Adarsh Das, Co-Founder and CEO SunSource Energy. The solar company has designed and built over 100 solar projects across 18 states in India, with a focus on decentralised power projects. It is currently involved in nearly over 150 MW of solar projects in India and overseas. Its rooftop projects include the India Habitat Centre. “Aligning with Prime Minister Narendra Modi’s target of 100 GW by 2022, including 40 GW from rooftop and decentralised projects, we are focused on developing, designing and building 400 MW of decentralised solar projects by 2022,” said Kushagra Nandan, Co-Founder of SunSource Energy. Chase Roullier Jersey
Distribution companies want to rework pacts as solar tariffs hit new low
Solar tariffs have fallen so dramatically that tariffs which were at record lows just three months ago no longer appeal to distribution companies, creating a big challenge for renewable energy companies. In April, French solar developer SolaireDirect won 250 MW in an NTPC conducted auction at Kadapah Solar Park in Andhra Pradesh, quoting a tariff of Rs 3.15 per kwH. At the time, this was a record low, beating the previous record of an average tariff of Rs 3.30 per kwH set in the auction conducted at Rewa Solar Park in Madhya Pradesh in February. But with tariffs having dropped even further, reaching an all-time low of Rs 2.44 per kwH at an auction conducted in May by Solar Energy Corporation of India (SECI) at a solar park in Rajasthan, Andhra Pradesh has made it clear to NTPC that it does not want solar power at Rs 3.15 per kwH, a tariff it now believes is too high. NTPC is left with the unenviable task of finding a new buyer. “We have given NTPC permission to find another off-taker,” said Ajay Jain, chairman, New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP). “We have said we will waive the transmission charges. There is no immediate requirement for us to take on this power.” NTPC officials refused to discuss the matter. French power giant Engie, which acquired SolaireDirect in 2015, was also unwilling to comment. Ever since solar tariffs began tumbling in the last few months, thanks to a steep global fall in the price of solar equipment, a number of state discoms have been regretting the relatively higher tariffs at which they agreed to buy solar power during earlier auctions. Uttar Pradesh has renegotiated the tariff for an auction it conducted in September 2015, despite having already signed the necessary PPAs. Jharkhand has been delaying signing PPAs with the winners of an auction conducted 16 months ago. But Andhra Pradesh does not even want to renegotiate – it is simply not interested any more. Andhra Pradesh added maximum amount of solar installed capacity among states in 2016-17, a sizeable 1,294.26 MW, achieving a cumulative installation of 1,867 MW by end March. Joe Vitale Authentic Jersey
$23 billion to be invested in KG Basin’s oil & gas fields: Dharmendra Pradhan
About $23 billion is planned to be invested in the oil and gas fields of the KG Basin, Oil Minister Dharmendra Pradhan told Parliament on Monday. “The operators of blocks /fields in KG basin under Production Sharing Contract (PSC) regime and nomination fields have submitted DoC (Declaration of Commerciality)/FDP (Field Development Plans) for the commercial oil and gas discoveries along with projected investment estimates,” Pradhan said, adding that the estimated investment from these plans were $22.9 billion. The new oil and gas production from these fields in the KG Basin is expected to reach up to 22.27 billion cubic meters of gas and 4.68 million metric tonnes of oil by 2021-22, Pradhan said. Last month, Reliance Industries and BP announced a $6 billion investment plan to develop three new fields in the KG Basin. The two companies plan to award contracts to develop the ‘R-Series’ deep water gas field that is expected to produce up to 12 million cubic meters of gas a day from 2020. They plan to submit development plan for two more projects by the end of 2017. Together, the three fields are expected to produce 30-35 million cubic meters of gas a day by 2022. Last year, ONGC unveiled a $5 billion investment plans for developing its fields in the KG Basin. Russell Wilson Authentic Jersey
Government mulls LPG-like subsidy transfer for PDS foodgrain
Food ministry is working on a pilot to emulate the direct cooking gas subsidy transfer scheme model for public distribution system (PDS) of subsidised foodgrains. The beneficiaries will get the subsidy amount in advance in their bank accounts and they will have to buy the foodgrains from any ration shop, which has got the electronic point of sale (e-PoS) devices. The food ministry recently sent three trainee IAS officers (assistants) to assess the ground situation in Ranchi where a pilot is likely to be rolled out. This initiative will ensure zero leakage of the subsidy and foodgrain as well. A government source said the beneficiaries’ failure to buy the foodgrains from the e-PoS enabled ration shop would result in no transfer of the subsidy for the next month. This will also ensure that beneficiaries under National Food Security Act don’t use the subsidy amount for anything else. “In case of cooking gas subsidy, the consumer has a connection from a particular LPG supplier and government transfers the subsidy through the supplier concerned. But in case of PDS, this mechanism is not possible. Therefore, the provision is being made that the beneficiary buys the foodgrains from ration shops and e-POS will ensure the authenticity,” said a source. At present, 81 crore identified beneficiaries get subsidised foodgrains at Rs 1-3 per kg from ration shops. This costs the exchequer about Rs 1.4 lakh crore annually. The other provision of direct cash transfer for subsidised foodgrains is being implemented in only three Union Territories of Chandigarh, Puducherry and Dadra & Nagar Haveli. In these cases, the entire subsidy amount is transferred to the beneficiaries’ account and they are free to buy the grains from anywhere. The new model is under serious consideration as an alternative to the nationwide roll-out of DBT, which, would throw up several questions for the government on whether it can continue to procure grains at MSP when it will have no mechanism to release them. Marcus Sherels Jersey
ONGC-HPCL merger to be completed this fiscal, Jaitley to head panel: Dharmendra Pradhan
Oil minister Dharmendra Pradhan on Monday announced that Oil and Natural Gas Corporation (ONGC) merger with Hindustan Petroleum Corp (HPCL) will be completed in the current financial year. He added the Cabinet Committee on Economic Affairs (CCEA) has approved the setting up of a special ministerial panel headed by Finance Minister Arun Jaitley which will oversee and expediate the merger process. “The proposed acquisition in the oil sector will create a vertically integrated public sector ‘Oil Major’ company having presence across the entire value chain. This will give ONGC an enhanced capacity to bear higher risks, take higher investment decisions and to neutralise the impact of global crude oil price volatility. The acquisition of HPCL by ONGC will result in significant synergies in terms of optimisation of logistics costs, R&D activities, economies of scale of purchase of crude oil and optimization in refinery operations,” Pradhan said in Parliament on Monday. He added for overseeing this transaction, CCEA approved setting up of an alternative mechanism, headed by the Finance Minister, which will help in taking quick decision with regard to the timing, price, terms and conditions and other related issues to the transactions. Also, the Department of Investment & Public Asset Management (DIPAM) has invited bids by August 10 from investment bankers and legal advisers who are expected to advise the government on the valuation of HPCL and ‘professionally guide during the negotiation with ONGC,’ according to an advertisement published on DIPAM site. According to senior ministry officials, the merger will not have an impact on HPCL’s cultural and corporate identity, which will remain distinct from ONGC. The deal which is expected to cost ONGC around Rs 30,000 crore, according to HPCL’s current market valuation, will be given the final nod by the Union Cabinet only after a clear process for the merger is determined. The recent flurry of activity to integrate government-owned Oil Marketing Companies (OMCs) with oil and gas exploration companies follows Finance Minister Arun Jaitely’s announcement during the 2017-2018 budget speech on the government’s plan to create an integrated public sector ‘Oil Major’ rivalling international and domestic private sector oil and gas companies. Ambit Capital, an equity research firm in its recent report stated that the merger would not bring much synergy benefits to the two companies and on the contrary will result in the weakening of high-performance culture at the target company. Also, ratings agency ICRA, in its note released last week on the merger, stated that the transaction could affect the financial strength of ONGC for future large acquisitions and capex programmes. It added that ONGC may face several challenges related to integration and probable delay in decision-making due to multiple hierarchies as a result of the merger. The government, after the ONGC-HPCL merger, reportedly plans to embark upon divesting its 66 percent stake in upstream oil and gas company Oil India to Indian Oil Corporation (IOC) India’s largest fuel retailer. Justin Reid Jersey
Domestic air traffic up 20% in June
Domestic airlines flew 95.86 lakh passengers in June, registering a growth of 20 per cent over the 79.75-lakh passengers flown during the same month in the previous year. IndiGo retained the number one spot by flying 38.26 lakh passengers in June followed by Jet Airways (14.58 lakh) and SpiceJet (12.73 lakh). Air India carried 12.49 lakh passengers, while GoAir flew 8.05 lakh, Vistara 3.44 lakh and AirAsia 3.51 lakh passengers. SpiceJet, however, reported the highest passenger load factor of 94.5 per cent. Passenger load factor shows how many of the total seats on offer gets filled. AirAsia reported a PLF of 89.6 per cent, followed by GoAir (89.4 per cent), IndiGo (87.8 per cent) and Vistara (86.4 per cent). Brandon Mashinter Authentic Jersey
Goods And Services Tax Will Accelerate Growth, Says Union Minister Nitin Gadkari
The Goods and Services Tax (GST) will accelerate the growth and ease of doing business and help in nation building, Union minister Nitin Gadkari said today. “GST will remove the red-tapism and corruption and will bring in transparency in the system,” the Shipping minister said at the inaugural ‘Gopal Krishna Gokhale Memorial’ lecture organised by newspaper ‘The Hitvada’. “Till a few days ago 75 lakh (traders/businessmen) have registered for the GST and it is the biggest economic reform that the the country has witnessed wherein, 17 taxes and 22 cesses have been cancelled,” he said. “India has a logistic cost of 18 per cent, while China has a logistic cost of 8 to 10 per cent and that is a reason, why we are not that competitive in the export market,” he said. “Export and manufacturing will get a big boost by GST. Maharashtra’s revenue will increase by 25 per cent and illegal trading will come to a standstill,” he added. The nationwide GST was rolled out from July 1. Thomas Hickey Jersey
IGL To Lay City Gas Distribution Network In A Part Of District Gurugram
Indraprastha Gas Limited (IGL), The supplier of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Delhi, Noida and Greater Noida said in Wednesday that it has received permission from the state government of Haryana to lay City Gas Distribution (CGD) network in a part of Distt. Gurugram. IGL is the entity authorized by Ministry of Petroleum & Natural Gas, Govt. of India for Gurugram since 2004 and had been pursuing with the state government of Haryana for the permission to lay, build and operate CGD network in Gurugram. As per letter issued by Director of Industries & Commerce, Govt. of Haryana on 13th July 2017, IGL has been permitted to lay city gas distribution network in Gurugram in the area lying between west side of Sohna Road and National Highway – 8 of Gurugram. The state government of Haryana has also decided to allocate 10 nos. of plot sites for setting up CNG stations for which IGL has been asked to identify the areas and approach HUDA/HSIDC for allotment of sites as per policy of the government. IGL has already been authorized to set up CGD network in adjoining district of Rewari also, where the project work is in progress and trail run of CNG sales has already started. Commenting on the development, E. S. Ranganathan, Managing Director, IGL said, “We are thankful to the state government of Haryana for having granted permission to us for laying pipeline network in a part of district Gurugram”. Highlighting the preparedness of IGL to meet the desired targets of setting up 10 CNG stations and providing 10,000 PNG connections, he assured that the entire IGL team is already in action to make sure that that the targets are achieved. “IGL is in the process of drawing up an investment plan amounting to capital expenditure of Rs 75 cr to Rs 100 cr in a year in this area”, he added. IGL is already the largest CNG distribution company in the country having set up 425 CNG stations in less than two decades. The company has a track record of having successfully rolled out CGD projects in Delhi, Noida, Greater Noida and Ghaziabad. In the city of Rewari in Haryana, where the CGD project work is in progress, IGL has already achieved the project milestones for the first year within ten months of start of project work. Company Profile The role of IGL in checking the vehicular pollution in the National Capital Region is well acknowledged both at national as well as international forums. IGL has well laid out its city gas distribution infrastructure in Delhi, Noida, Greater Noida and Ghaziabad which consists of over 10000 Kms of pipeline network. IGL is meeting fuel requirements of over 9.5 lakh vehicles running on CNG in NCR through a network of 425 CNG stations. IGL is supplying PNG to nearly 7.5 lakh households in Delhi and NCR towns. Patrick Chung Womens Jersey