India’s power plants stranded as 50 million homes left in the dark
India is scaling back expectations for power demand growth as it struggles to electrify millions of homes despite a glut in generation capacity. The world’s second-most populous nation is building more power plants than it can utilize as state-level distributors struggle to connect 50 million households, according to Ravindra Kumar Verma, head of the Central Electricity Authority, the power ministry’s planning arm. As a result, about 25 gigawatts of coal-fired power-generating capacity is “stranded” and unused, he said. That’s equivalent to the entire installed capacity of neighbouring Pakistan. Demand growth for power is slowing as state distribution companies, known as discoms, struggle to purchase enough electricity for the populations they serve. Most discoms lose money selling below cost to poor and agricultural customers and through power theft. The CEA defines demand as the amount of electricity that distributors buy, not necessarily how much would be needed for the whole country, helping explain why millions still lack power and several cities face regular blackouts despite the under-utilized capacity. “We were thinking that the entire demand will come on the system, but it has not happened that way,” Verma said in an interview in New Delhi on Tuesday. “When discoms turn around is the point when we will get close to 24/7 power. That’s where all the constraint lies.” Electricity use is estimated to grow 6.2 per cent a year over the six years ending March 2022. Consumption over the previous six years expanded 5.3 per cent, missing a 7.6 per cent forecast, the CEA said in its latest power survey report published this year. The lower-than-expected growth rate led the agency to temper its outlook, Verma said. “Projections are estimated growth rates worked out on the basis of certain assumptions. If the assumptions slip, then projections are hit,” he said. India is on track to add 102 gigawatts of conventional power projects in the five years ended March 2017, compared with a target of 88.5 gigawatts, according to country’s Draft Electricity Plan published in December. At the same time, the country’s gas-fired plants, which can generate nearly 25 gigawatts of power, are running at less than a quarter of their capacity, according to the plan. The country’s capacity totaled 329 gigawatts, with more than half of that coming from coal-fired plants, according to CEA data. David Desharnais Jersey
Indizel, India s first non-petroleum diesel, launched
My Eco Energy, a private company, has launched the first ever non-petroleum based diesel fuel in India. Called Indizel, it is claimed to be Euro 6 compliant and is made from renewable vegetable oils amongst other raw materials. The company has about five outlets in India as of now with more than 500 outlets in the pipeline before its public launch in September. Indizel, is a substitute to the regular diesel offered by the state-run petroleum enterprises and private players like Reliance and Shell. It will require absolutely no modifications to the existing diesel engines. Since the sulphur content is less than 10ppm as against 550ppm of petroleum diesel, the exhaust gases are claimed to be significantly less harmful. In terms of the standards, it adheres to the EN590 EURO6 norms or the BIS IS 1460 BS-VI norms and is certified for retail usage in the Indian market. Santosh Verma, co-founder, My Eco Energy, says “Indizel is a preferred fuel as it is made from biodegradable products and should contribute towards solving some of today’s most pressing environmental concerns. It offers better fuel efficiency, a smoother ride and lower engine maintenance thanks to its cleaner roots.” The company plans to expand to 4,000 outlets in the next two to three years and expects to gain 5 to 10 per cent market share in diesel. To start with, Indizel will be shipped from Malaysia. But setting up a manufacturing unit in India is on the cards as well. Harold Landry Womens Jersey
IOC sets extensive maintenance shutdown plans for units
Indian Oil Corp has lined up an extensive maintenance turnaround plan for its refineries in 2017, sources with knowledge of the plan said, which could force the country’s top refiner to tap overseas markets for gasoline and diesel to meet rising local demand. IOC plans to shut a 150,000 barrel per day (bpd) crude unit at its 300,000 bpd Panipat refinery in northern India and an associated naphtha cracker plant for about a month in July, the sources said, freeing up some naphtha for exports. IOC also plans to shut a 160,000 bpd Mathura refinery for 15 days from Aug 25; its 120,000 bpd Barauni refinery in Bihar for about five weeks in July-August; and a 150,000 bpd Haldia plant in West Bengal of the country for about three weeks in November-December for a flare job. IOC plans to shut the only crude unit at its 300,000 bpd coastal Paradip refinery in Odisha for about three weeks for repairs in October to enhance its capability to process tough grades, the sources added. The refiner has already shut some units at its 274,000 bpd Koyali refinery in Gujarat for revamp and maintenance from June 1. There is not likely to be any planned shutdowns in the first quarter of 2018, because state refiners normally do not plan maintenance in the last quarter of their fiscal year, when they ramp up runs to meet annual production targets. The company may change dates for the planned shutdowns depending on local fuel demand and the turnaround plans of other refiners, the sources said. No comment was available from IOC. Russell Martin Authentic Jersey
Indian infrastructure market to overtake Japan by 2023: BMI Research
With large residential and non-residential projects in the pipeline, the Indian infrastructure market is forecast to overtake Japan’s in next five years, says a report. “India’s infrastructure market is the third-largest in Asia, and is forecast to overtake Japan’s in nominal value terms by 2023,” the report by BMI Research said. Although demonetisation had a negative impact on construction activity in 2016 as most construction workers’ wages were paid in cash, the Fitch group company said that it believes that “robust growth will return in 2017 as work resumes on the large pipeline of infrastructure, residential and non-residential projects in the country”. At the same time, the operating environment of India’s construction industry remains immensely challenging, with major infrastructure projects commonly incurring delays and cost overruns, it said. “The Modi government has made some progress in addressing underlying issues in the sector, such as streamlining the land-acquisition process in some states, though the slow pace of reform means that the market remains relatively risky,” it added. Industrialisation and urbanisation trends are making India’s infrastructure deficit more apparent and increasing demand for investment in roads, railways, ports, power transmission and water utilities, the report said. The Narendra Modi-led government at the Centre has initiated several programmes aimed at improving logistics, stimulating investment in manufacturing and building affordable housing, which will contribute to growth in the construction industry over the next 10 years, the report said. “Reforms to foreign investment laws under Make In India initiative have made it easier for international companies to invest and participate in India’s infrastructure projects. “That said, the infrastructure market remains dominated by domestic companies which have significant home market advantages owing to their experience with the complex regulatory environment in India,” it said. Sean Kuraly Authentic Jersey
NHAI forms 2 panels to speed dispute resolution
The National Highways Authority of India (NHAI) has come up with an alternative dispute resolution mechanism to find a way out of the nearly 280 pending claims worth Rs 43,000 crore on its hands, as well as future cases. It has set up two panels of six independent experts, including a former central vigilance commissioner (CVC) and a former Lokayukta, for conciliation and settlement of disputes. The decisions of the panels – one headed by former CVC Pradeep Kumar and the other led by former Allahabad high court judge Justice I P Vasishth – will be binding on NHAI and contractors. The panels also have experts from the corporate world, including former managing director of Maruti Suzuki (India) Jagdish Khattar. The NHAI has notified the guidelines for the new mechanism, wherein neither the contractor nor the authority would have to engage any advocate. NHAI chairman Yudhvir Singh Malik told TOI, “The intention behind the policy is quick amicable settlement of disputes, avoiding unnecessary litigation, and playing a constructive role in completion of road projects.” In an open letter to contractors, the NHAI chief has appealed to them to avail of the option. New cases will be referred to the expert panels only after both the NHAI chairman and the chief of contractor board of directors exhaust the scope of conciliation and settlement. But to enable the expert panels to take up disputes which have already reached courts or tribunals, the private player will have to explicitly submit it to the court or tribunal to put the hearing in abeyance. “Now we have to see how the industry is taking keen interest in quick resolution of disputes. We have taken the required step to minimise the number of disputes reaching courts and tribunals,” an NHAI official said. The number of disputes is likely to swell as more projects get completed. The PMO had been pushing for quick resolution, within a stipulated time frame, of disputes, which have led to blocking of funds for contractors even after completion of works. Coby Fleener Jersey
‘Stop move to privatise highway maintenance’
The State Government should abandon privatisation of maintenance of Highways in the State immediately, said Tamil Nadu State Highways Workers’ Association State president Hamsa Raj. Talking to mediapersons here on Wednesday, he said that privatisation of road maintenance was not only a costly affair but also affected survival of thousands of highway workers. The government had already offered maintenance of 378-km-long roads in Pollachi division to private parties for ? 233.93 crore, 569-km-long roads in Ramanathapuram division for ? 340 crore, 581-km -long roads in Krishnagiri division for ? 450 crore and 770-km-long roads in Thiruvallur division for ? 630 crore. On the whole, 2,304 km long roads had been given to private parties for maintenance at a cost of ? 1,654.31 crore. If road workers maintained these roads, maintenance costs would be around only ? 560 crore. The government planned to privatise maintenance of other highways also. It should abandon the move, he insisted. Announcing a series of agitation against the State government, he said that the association leaders would start public campaign from Nilgiris, Krishnagiri and Kanyakumari about the ill effects of privatisation between June 10 and 23 and tour throughout the State. The campaigners will meet in Dindigul on July 8 and take out a mega protest rally and conduct a conference. If the government failed to fulfil their demands, they would stage a demonstration in Chennai on August 4. Fozzy Whittaker Jersey
Government keen to support indigenous, affordable e-mobility solutions for intra-city transportation
The Government of India is promoting e-mobility by working towards adopting indigenous and affordable e-mobility solutions which are sustained by an economic model. Speaking at theCII- Shell Global Lecture Series on ‘Greenovation: Future Mobility’on 7 June 2017 at the Indian Institute of Technology Delhi, Mr Abhay Damle, Joint Secretary (Transport), Ministry of Road Transport and Highways, Government of India, highlighted the importance of building India’s transportation and logistics infrastructure for future mobility. He stated that Indian cars produce less pollution compared to trucks and buses, which travel an average 200 km per day and while comprising 2.5% of vehicles, consume 65% of fuel and emit about 70% NOx and SOx.Therefore, the e-mobility industry should focus on converting high mileage vehicles into electrical. Prof Ashok Jhunjhunwala, Principal Advisor, Minister of Power and New & Renewable Energy, Government of India said that globally electric vehicles are promoted with huge subsidies, which is not feasible for India. He said innovative techniques should offset high battery prices, concessional GST and road-tax for three years. Battery swapping& charging, module-based battery design, developing business opportunities for battery ownership, etc. can alleviate battery costs. In the first stage, 4 wheelers, city buses and 3-wheelers may see a launch in Oct–Nov2017. Electricity from renewables will be primary source for EVs. Speaking on India’s biofuels mandate, Mr Y B Ramakrishna, Chairman – Working Group on Biofuels, Ministry of Petroleum and Natural Gas said that biofuels can mitigate climate change and secure India’s energy by replacing upto 30 per cent generation from fossil fuels. The Government is implementing policies to promote sustainable conversion technologies to produce blended fuels like bio-ethanol, bio-diesel and biogas, and India is already leading in technology to produce second generation ethanol. He said that issues like underutilization of production capacity and feedstock supply and cost need to be resolved. Emphasing an India-specific policy, Dr Suddhasatwa Basu, Professor, Chemical Engineering, IIT Delhi said that a clear policy roadmap is required to run over 10 billion electric cars over the next decade. Mr P K Banerjee, Deputy Executive Director (Tech.),SIAM said that four main forces will drive the mobility sector: consumer need, move from connected to autonomous mobility, infrastructure, and management of old vehicles including recycling. Ms Soma Banerjee, Principal – Energy & Infrastructure, CII, said that with growing urban population and increasing pollution, India must choose between public and private vehicles. Government policy should encourage citizens and Industry to move towards public vehicles, taking into account energy efficiency and global market conditions. Also, given India’s diversity, it would need a combination of biofuels, renewables, electricity and cleaner fossil fuelsto serve its future mobility needs. Ms Mansi Tripathy, Managing Director, Shell Lubricants India, said that India needs multivariant e-mobility solutions which are affordable and customised to the Indian market. Despite challenges to the last mile connectivity, such as charging points and urban infrastructure, industry including OEMs are fully committed to realising the national vision. Clark Harris Womens Jersey
As solar energy booms, Indian manufacturers struggle to compete with China
Some of India’s biggest solar equipment makers are facing financial collapse, priced out by Chinese competitors as Prime Minister Narendra Modi’s government prioritises cheap power over local manufacturing despite his ‘Make in India’ push. Though President Donald Trump is pulling the United States out of the Paris accord on climate change, India is sticking to its huge renewable energy programme. That has created a multi-billion-dollar market for Chinese solar product makers, who are facing an overcapacity at home and steep duties in Europe. India’s solar power generation capacity has already more than tripled in three years to over 12 gigawatts (GW) as Modi targets raising energy generation from all renewable sources to 175 GW by 2022. Chinese companies have gained the most from that increase, accounting for around 85 percent of India’s solar module demand and earning around $2 billion, according to industry data. The total annual market could jump to more than $10 billion in the next few years going by the government’s capacity targets. Local companies such as Jupiter Solar, Indosolar Ltd and Moser Baer India Ltd, however, are struggling to win contracts. Orders funnelled through a domestic-content policy have all but dried up after the World Trade Organization last September upheld an earlier ruling that found the move violated global trade norms. As a result, Jupiter said it could shut shop by July after delivering their last orders this month; Indosolar auditors have raised doubts over it remaining as a “going concern”; and Moser Baer says it needs support from its lenders to revive its solar business. “Torprdoed” Indian solar power plant developers — including companies backed by Japan’s Softbank and Goldman Sachs are quoting ever-lower tariffs in auctions to win big projects, encouraged by the steep drop in Chinese solar equipment prices. That is squeezing out Indian cell and module makers, many of which have inferior technology, depend on imports of raw materials, have limited access to cheap loans and operate below capacity. Chinese modules are 10-20 percent cheaper than those made in India, company and industry executives said. “The WTO ruling has torpedoed everything. It’s not a case of one company – we have the largest cell operating capacity – everybody below us will shut down one after another,” Jupiter CEO Dhruv Sharma told Reuters by phone. Chinese companies were selling solar cells in India at 19-20 US cents, around 35 percent below his production cost, he added. There are more than 110 Indian solar cell and module makers registered with the government, out of which consultancy Bridge to India expects only a handful to survive. Santosh Vaidya, a senior official in the Ministry of New & Renewable Energy, said the government was working on several initiatives to promote the domestic solar manufacturing industry. He did not elaborate. Going The Telecom Way India’s promise, and need, as a market for solar, is obvious. It is one of the lowest per-capita consumers of electricity in the world and more than 200 million of its people are still not connected to the grid, making it crucial for the government to aggressively push for cheap power. Despite its low labour costs, it is not alone in buckling under pressure from Chinese competition. Earlier this month, Germany’s SolarWorld, once Europe’s largest solar panel maker, said it would file for insolvency. Indian companies produced an estimated 1.33 GW of modules last year out of the total capacity of 5.29 GW, according to Bridge to India. Total consumption of modules – 60 percent of a solar project’s cost – was around 4 GW. Solar project developer SB Energy, a joint venture between SoftBank, Taiwan’s Foxconn and India’s Bharti Enterprises, said it had discussed the shortage of local manufacturing with the government. “Lack of significant domestic solar manufacturing capacity is a concern, as this is a major gap,” SB Energy Executive Chairman Manoj Kohli said, drawing a parallel with India’s huge mobile phone market but negligible local production. Several company executives said a lack of scale, absence of raw material supply chains and rapidly changing technology were some of other reasons Indian firms were unable to compete with Chinese manufacturers such as Trina Solar and Yingli. “The government is busy bringing power prices down … but you can’t build castles on graves,” Gyanesh Chaudhary, CEO of module maker Vikram Solar told Reuters. “Without a domestic manufacturing ecosystem, no public policy can last for a long time.” Paulo Orlando Jersey
India looking to extend UDAN scheme to Bimstec countries
In a bid to boost its engagement with Bimstec, India is looking to expand the UDAN scheme of its aviation policy to countries of this regional bloc, Minister of State for Civil Aviation Jayant Sinha said on Tuesday. “What the government of India would like to see is that we can take the policy design behind UDAN (Ude Desh ka Aam Naagrik or ‘common people of the country can fly’) and extend it across the Bimstec region,” Sinha said while speaking at an event here to mark the 20th anniversary of the establishment of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec). “So if we can link Pakyong (greenfield airport in Sikkim), there is no reason why we can’t link an airport in Bhutan or an airport in Myanmar in the same fashion,” he said. Bimstec comprises Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand. Its main objective is technical and economic cooperation among south Asian and southeast Asian countries along the rim of the Bay of Bengal. Chris Chelios Jersey
Air India has 5 times more debt than Jet Airways, 16 times than IndiGo: A comparison in 15 charts
The disinvestment plans of national carrier Air India are back in news and the government is making all the right noises. Making a case for the sale of the airline, union finance minister, Arun Jaitley said in Dialogue@DDNews programme, “In this country, if 87 or 86 percent flying can be handled by the private sector… then they can also do 100 percent.” Jaitley further said about Rs 50,000 crore of tax-payers’ money that has been pumped into the airline so far could have been invested to improve the education sector. Indeed a valid point, especially considering India’s education budget has remained at a lowly 0.5 percent of GDP over the last few years. What Jaitley said is by and large correct. A look at the air traffic data available from the Directorate General of Civil Aviation (DGCA) shows that Air India’s market share has been on a declining course. From 20.2 percent in 2013-14, the airline’s market share shrank to 17.8 percent in 2015-16. according to DGCA data. Of the 10.38 crore passengers carried by Indian carriers in 2015-16, Air India accounted for 1.85 crore, Jet Airways 2.33 core and budget carrier IndiGo 3.31 crore. IndiGo has witnessed a steady increase in its market share from just 14.1 percent in 2010-11 to 32 percent in 2015-16. Firstpost did an analysis of various parameters of three leading airlines in the country–Air India, Jet Airways and Indigo–in the context of Air India’s selloff plan. Air India and Jet Airways are full service carriers while IndiGo is a budget carrier that is making profit and by far the best performer in the sector. Xavier Rhodes Jersey