Not averse to any probe in land acquisition matters: NHAI
The National Highway Authority of India (NHAI) today said it is not averse to any investigation by any agency, including CBI, into the matter of alleged irregularities in land acquisitions. It said allegations that NHAI is “reluctant on going ahead with the CBI enquiry in the matter of alleged irregularities in land acquisition in Nagina ? Kashipur, Kashipur ? Sitarganj, Sitarganj ? Tanakpur and Rudrapur – Kathgodam sections in the State of Uttarakhand” is not true. The matter pertains to alleged change in land use under section 143 of the Zamindari Abolition Act by revenue authorities in the process of acquisition of land for NH projects, the Ministry of Road Transport and Highways said in a statement. “The NHAI never objected to any enquiry or investigation by any agency at any point of time in the matter. The NHAI only conveyed its stand to various authorities in the state government to clarify the roles and responsibilities of officials of the state government and NHAI in land acquisition matters,” the statement said. The NHAI officials have no role to play in deciding the nature of land or the compensation amount to be paid for acquisition of land, it said adding, the role of NHAI officials is limited to depositing the amount as may be decided by the competent revenue authorities or the courts. “NHAI requested the state authorities to intervene in the matter only because dragging NHAI officers in such incidences is going to be counterproductive. This may not only lead to adverse impact on the process of land acquisition in Uttarakhand, but also affect our targets in other states too,” the statement said. It said in the present situation, the NH projects in Uttarakhand have come to a complete halt and it is feared that such a situation may arise in other States also and the whole NHDP may get affected severely. “It is clarified that land for NH projects is acquired under the provisions of the National Highways Act, 1956 (NH Act). As per the recommendation of the state government, the revenue officials of the state are duly appointed as Competent Authorities under section 3A of the NH Act,” it said. All the subsequent activities as well as declaration of awards are within the domain of the Competent Authority under the Act, it said. Asdrubal Cabrera Authentic Jersey
Use of solar rooftop systems dismal in metros: Greenpeace
Despite a substantial subsidy offered by the government, installation of solar rooftop systems has been “dismal” in metros including Delhi and Mumbai, an analysis by a green body today said. Rooftop solar systems are those in which electricity is generated by installing solar panels on rooftops of residential or commercial buildings. Greenpeace India in its new analysis – Indian cities slacking on rooftop solar said that despite policies and net metering guidelines in several states, installation of such systems has been dismal. “Despite policies and net metering guidelines in several states and a subsidy of 30 per cent offered by the Ministry of New and Renewable Energy (MNRE), the installation of solar rooftop systems has been dismal in leading metros in the country, especially in Chennai and Mumbai,” the green body said. According to reports, a net metering is a new concept where an instrument which has a special metering and billing agreement between utilities and their customers, facilitates the connection of small, renewable energy-generating systems to the power grid. It said, Delhi, which offers a generation-based subsidy as per the solar policy released last year, as well as net metered connections, has also failed to see a big uptake in the residential sector. “Delhis total solar potential is 2,500 MW with a residential potential of 1,250 MW. The official target in Delhi is to reach 1,000 MW worth of solar installations by 2020 and 2,000 MW by 2025. “But as of December 2016, only 35.9 MW have been installed out of which only 3 MW were residential installations in March 2016,” the analysis said. On the other hand, Mumbai, which has a potential of 1,720 MW has only 5 MW overall installed till now while the entire state of Tamil Nadu has less than 2 MW as against a rooftop solar target of 350 MW. The green body said that the MNRE has earmarked 40 GW as the rooftop solar target by 2022 but as of December 2016, installation had just crossed 1 GW, it said. The reasons for the slow uptake seem to be lack of familiarity with the process and fear of bureaucratic red tape, the body said while asserting that though net metering provisions are present in most states, effectiveness of implementation varies significantly. “Despite the national incentive in the form of a 30 per cent capital subsidy, and a range of state incentives and schemes, rooftop solar is yet to take off in the same manner as large-scale solar. “However, this does not mean India should lower its ambitious targets, as some have suggested. Rather, the government must step up and play a more proactive role in encouraging rooftop installations,” said Pujarini Sen, Climate and Energy Campaigner, Greenpeace India. Sen said that this can be done via innovative financing schemes, aggregating demand and incentivising city and state governments. “The potential benefits in terms of reduced energy expenditure and cleaner air due to reduced demand on fossil fuels are too significant to be ignored. “As the convenor and a founding member of the International Solar Alliance (ISA), and a country with abundant solar potential, Indias commitment to clean energy must continue to be robust,” Sen said. Noting that air pollution leads to 1.2 million deaths every year while referring to a Global Burden of Disease study, Greenpeace India said decarbonising the power sector is essential to tackle the menace of air pollution. Referring to a poll conducted by Greenpeace, the body said that close to 55 per cent of the 812 survey respondents from its supporter base expressed interest in investing in and installing solar. “There is still a widespread perception that installation of rooftop solar panels needs a large investment, and people are not always aware of the financial incentives available. “If central and state governments are serious about boosting solar, they must do a better job of reaching out to resident welfare associations and community groups to encourage people to shed their inhibitions and embrace rooftop solar,” said Sen. Kendall Lamm Womens Jersey
India’s red hot solar sector has been served a tax shocker
India’s sizzling solar power sector, where rock-bottom tariffs are now competing with coal-based electricity, has been served a tax plan that could cause a lot of burn. Under the upcoming Goods and Services Tax (GST) regime, which will replace multiple taxes levied by the central and state governments starting July 01, solar modules have been handed a rate of 18%. That’s quite a jump from the current 5% value added tax (VAT) that most states levy, which effectively drops to zero due to several waivers. “The new regime will, therefore, result in an increase of 18% in module cost, about 12% in inverter cost, and 3% in all service costs—increasing overall project cost by about 12%,” Bridge to India (BTI), a renewable energy consultancy, wrote in a recent note. By BTI’s estimation, the higher GST rates could hit over 10 gigawatt (GW) of ongoing projects. This is substantial considering that India is likely to have only 18GW of solar power by the end of 2017. As Quartz has argued earlier, India’s solar sector is already under duress with aggressive bidding in recent months having driven tariffs to unviable levels. Any further increase in costs will only worsen things. Although the ministry of new and renewable energy has previously assured developers that any increase in cost would be passed through to the buyer, according to BTI, this is easier said than done. Not only are there multiple formats of power purchase agreements (PPAs) to deal with, distribution companies are also expected to resist tariff hikes at a time when auctions are throwing up record-low numbers. “Third, the entire process for tariff determination, ratification, and documentation amendments would easily take up to six months or even more,” BTI’s note said. Solar project developers, too, estimate a significant increase in cost and delays. “Following GST, solar projects will be about 18% costlier on an average, while cost of generation would go up by around 20%,” Ratul Puri, chairman of Hindustan Power Projects, told the Economic Times. “It would require project developers to go back to banks for additional funding for projects under construction. It might require a minimum of three months to get additional funding, thus delaying projects.” These delays, BTI reckons, could even lead to the cancellation of some projects altogether. In the long-term, however, the GST’s impact is likely to be evened out by falling costs. That’s something India’s energy minister Piyush Goyal is betting on. “We don’t need support of lower taxes to encourage renewable energy,” Goyal said on May 19. “Solar, wind, and hydro would be affordable forms of power. I don’t think GST rates will impact my sectors.” Nonetheless, India’s solar sector seems set up to deal with some short-term pain. Zack Martin Jersey
Holiday travel turns cheap, airlines offering flights for as low as Rs 11
To counter SpiceJetBSE 0.67 % anniversary sale, Indigo, Jet AirwaysBSE -1.15 % and other airlines have also announced discount fare offers for the flier on select destinations and select period. Here are the details of the sale offers by airlines: SpiceJet : The airline has announced a sale with ticket price starting as low as Rs 12 one-way for all domestic and international flights. The discounts will be applicable on only one way fares. Booking Period: May 23, 2017 to May 28, 2017 Travel Period: June 26, 2017 to March 24, 2018 Minimum fare: Rs 12 (As claimed by the company) Indigo : The Gurgaon-based airline has announced sale fares starting at Rs 11 (basic fare) and all inclusive fare starts at Rs 899. However, the offers are valid on select sectors and select non-stop flights only. Booking Period: May 23, 2017 to May 28, 2017 Travel Period: June 26, 2017 to March 24, 2018 Minimum fare: Rs 11 (As claimed by the company) Jet Airways : Jet Airways is also offering special fares on selected routes. Though, the offer is not applicable on group bookings. Booking Period: May 24, 2017 to May 26, 2017 Travel Period: June 15, 2017 to September 20, 2017 Minimum fare: Rs 1,079 (all-inclusive) AirAsia : The Malaysia-based low-cost airline has also jumped into the ongoing sale competition. It is offering discounts on one-way journey and is available on selected fare classes only. Booking Period: May 23, 2017 to May 28, 2017 Travel Period: Valid till November 23, 2017 Minimum fare: Rs 1,699 Denzel Perryman Authentic Jersey
Compensation for grid curtailment to benefit renewable sector: India Ratings
The Centre’s proposed compensation mechanism for existing renewable energy projects will protect the cash flows to an extent from grid curtailments and will also ensure a favourable operational environment for renewables sector, said India Ratings. “If the proposal is adopted it will protect the cash flows to an extent from grid curtailments and also ensure a favourable operational environment for renewable energy projects. It will also be positive for wind and solar energy developers,” the ratings agency said in a statement here. Historically, power purchase agreements (PPAs) signed for renewable energy projects have failed to address the grid issues and lacked a mechanism to compensate for energy loss. According to Ind-Ra, the annual debt service coverage ratio (DSCR) slips by 0.12 times for 10 per cent of energy curtailment and the 50 per cent proposed compensation at PPA tariff will restrict the fall by half at 0.06 per cent. The developers have bridged any cash flow shortfall in debt service through a combination of or individually tapping debt service reserve or drawing working capital limits or sponsor support, it said. “The recent reverse auction of 750MW solar capacity in Rewa solar bid included the provisions for compensation for deemed generation in case of curtailment. The recommended PPA format for future wind and solar projects should also include provisions for curtailment compensation.” It, however, maintained that the absence of clarity on two possible reasons for grid curtailment – low system demand and grid security – could however pose new challenges for developers. “Further clarity by the authority/utilities to define the terms and spell out when these measures will need to be opted for could allay possible apprehensions of the developers and make the process more transparent,” the agency said. Also, in the proposed framework it is unclear which situations will be identified as low system demand incidences, since the network operators have the option to shut down a thermal plant which is falling below its technical minimum operating level, it said. Citing the recent forced shutdown of some thermal power plants by Tamil Nadu discom during high wind season to enable full evacuation of wind power generation, Ind-Ra said there is a possibility of utilities taking refuge under the low system demand and curtail high costs renewables to save costs leading to reduced cash flows. “We believe that utilities should project demand for the next six months to one year along with definition of low system demand. This transparent process could allay the fears of developers when actually the demand plummets,” it said. The compensation will also incentivise grid operators and distribution utilities to reduce curtailments and benefit renewable energy developers in scheduling and forecasting and enable integration of increasing renewable energy capacity. In FY17, grid curtailment was prevalent for wind projects in Rajasthan (up to even 45 per cent energy curtailed compared to 90 per cent of plant load factor) and solar projects in Tamil Nadu. Deion Sanders Jersey
BHEL commissions 1,980 Mw super-critical thermal power plant in UP
Bharat Heavy Electricals Ltd (BHEL), the country’s largest power equipment manufacturer, today announced it has commissioned the third 660 Megawatt (Mw) unit of the 1,980 Mw Prayagraj Super Thermal Power Project (PSTPP) in Uttar Pradesh, successfully completing the execution of the plant in Allahabad. The first two units of the project, commissioned earlier by BHEL, are already under commercial operation. Located in Bara tehsil in Allahabad, the project is owned by Prayagraj Power Generation Company Limited (PPGCL), a subsidiary company of Jaiprakash Power Ventures Limited. BHEL’s scope of work in the project included design, engineering, manufacture, supply, erection and commissioning of the Boiler and Turbine-Generator (BTG) package. The key equipment for the project was manufactured by BHEL at its Haridwar, Trichy, Hyderabad, Ranipet and Bengaluru works while the construction of the plant was undertaken by the company’s Power Sector-Northern Region unit. “Notably, in the last 17 months, six supercritical sets have been commissioned in Uttar Pradesh, all of which have been installed by BHEL,” the company said in a statement today. It added that over 70 per cent of Uttar Pradesh’s power generation capacity — aggregating to more than 17,000 Mw — has been supplied by BHEL. The company has commissioned 4,960 Mw of projects in the state in the last two years. Jordan Poyer Womens Jersey
GAIL India to invest Rs 1,000 crore to help Dabhol LNG terminal operate all year
GAIL India will invest.Rs 1,000 crore on the liquified natural gas terminal at the Ratnagiri Gas and Power Private (RGPPL) to make it an ‘all-weather’ port by 2019, said BC Tripathi, chairman, GAIL. RGPPL, the second avatar of the troubled Dabhol power project, is in the process of demerging the power plant and the LNG terminal to make the project financially more viable as the project continues to struggle to keep afloat even after a decade since banks and public sector units stepped in to revive it. “We will hold over 70% in the demerged LNG terminal and our aim would be to convert it into an all-weather port so that we can run it at full capacity,” Tripathi said. After the original promoter of the project Enron declared bankruptcy in 2001, it was taken over for revival by RGPPL, backed by the government, in 2005. GAIL and NTPC are the biggest shareholders with 25.1% each, while the government of Maharashtra owns 13.51% and lenders have a 35.47% stake. Post the demerger, GAIL would be a majority stakeholder in the LNG terminal, while NTPC would lead the power project that would run a 500 mw unit. “We hope to give the contract for the breakwater project and expect it to be operational by monsoon in 2019,” said Tripathi. A breakwater is an offshore structure built to break the intensity of the waves so that the terminal can work all year. Right now, this terminal cannot operate for almost five months between June and September since the choppy sea poses risks to the ships. The company had hoped to award the project by October last year but it has been delayed. The demerger of the power plant and the LNG regasification unit has been delayed since lenders such as Power Finance Corp and LIC had put forth conditions. The power plant is in pact to supply 500 mw to the Indian Railways. Ryan Shazier Jersey
BHP hires Barclays to divest U.S. shale gas assets – sources
BHP has hired Barclays to divest its U.S. Fayetteville shale gas assets as the miner seeks to fend off an attack by activist funds, two sources close to the matter said on Tuesday. BHP said last month the gas-rich Fayetteville field in Arkansas was under review and that it was “considering all options, including divestment”. BHP declined to comment and Barclays was not immediately available for a comment. The miner had tried to sell the business more than two years ago, but the attempt was shelved in February 2015, when it said it planned to “maximise value” of the assets. The revived sale comes as activist investor Elliott Advisors, which has built up a 4.1 percent stake in BHP’s London-listed arm, urged for changes to boost shareholder value. The sale is expected to draw interest from smaller mining companies already operating in the region, the sources said. The Fayetteville assets, which BHP acquired for $4.75 billion in 2011, had a book value of $919 million at the end of 2016, according to the company’s annual accounts. The miner had to write down the assets by $2.8 billion in 2012 due to lower gas prices. Earlier this month, Elliott called for BHP to run an independent review of its petroleum division, valued at more than $20 billion, after asking to spin off the U.S. oil and gas assets. BHP has rejected the call by Elliott, which was later joined by Australian boutique manager Tribeca Partners. The mining company denied any link between the activists’ move and prospects for Fayetteville including divestment, and said the move was instead part of an ongoing review. Within the petroleum business, BHP has long made it clear it intends to focus on liquid products in the United States, a more lucrative business than dry gas. In February, it agreed to spend $2.2 billion to fund its share of investment for the second phase of the Mad Dog oilfield in the Gulf of Mexico. Ryan Fitzpatrick Jersey
In a first, India’s petroleum regulator to use real-time data monitoring tech to assess output from fields
In a first of its kind move, India’s upstream petroleum regulator, the Directorate General of Hydrocarbons (DGH), will use the all new real-time data monitoring technology to assess output from all the contract areas recently awarded under the Discovered Small Field (DSF) auctions. Real-time data collection and monitoring is being used by many industry players and will help the government decide the quantum of its share as the fields under DSF were awarded based on the new revenue-sharing model prevalent under Hydrocarbon Exploration Licensing Policy (HELP), a senior DGH official told ETEnergyWorld. “It is a common practice among many industry players. We are working on creating a real-time petroleum measurement data access system which will be live soon. It is a support mechanism as the auctions were under revenue-sharing contract. As the focus is will be on production, such a support system is necessary,” the official said. After the award of contracts under DSF, the regulator had held workshops for the winning bidders in order to de-brief the contractors, primarily new entrants, about the various aspects of the DSF policy and newly introduced revenue sharing model. These meetings included workshops on financing matters, essential certificates and statutory clearances, Field Development Programme specifications and the taxation regime for the Exploration and Production sector. The Model Revenue Sharing Contract (MRSC) policy provides flexibility to DGH to issue directions to the contractor on the methodology of measurement, the equipment used for the measurement and the points of measurement of petroleum. In order to create proper infrastructure to promote real-time monitoring, the upstream regulator will announce measurement guidelines to be adhered by the contractors. The operator will have to declare the details of pressure, temperature and flow transmitter in the FDP. The operator will have to facilitate data transfer from all field locations to the central data receiving stations. The oil ministry had launched the first round of DSF in May 2016 under a new liberalized policy under which 46 contract areas consisting 67 fields spread across nine sedimentary basins were auctioned. The auctions had witnessed 134 e-bids for 34 contact areas of the 46 offered. Later, 22 companies were awarded 31 contract areas of which 15 companies were new entrants with no prior experience in the sector. The ministry had pegged the indicative gross revenue over the economic life of these fields at Rs 464 billion. Sheldon Richardson Jersey
Shell, Engie exit Kakinada LNG project
Royal Dutch Shell, Europe’s largest oil firm, and French energy major Engie have exited a floating LNG import terminal project at Kakinada in Andhra Pradesh over concerns about demand for imported gas in India. Post exit of Shell and Engie (previously known as GDF Suez), state-owned gas utility GAIL India Ltd is negotiating with Andhra Pradesh government on possible structure of the project, GAIL Chairman and Managing Director B C Tripathi said. “Shell and GDF (now known as Engie) are no longer part of the project,” he told reporters here. The two firms had wanted GAIL to guarantee a minimum sale of imported liquefied natural gas (LNG) before investment decision could be taken. However, with power plants not willing to buy imported gas, such a guarantee never came. Tripathi did not put a timeline for completion of building the floating storage and regasification unit (FSRU) off the Kakinada coast. “The project is now between Andhra Pradesh government and GAIL and we are discussing its structure,” he said. Way back in 2011, GAIL and Shell had conceived plans to set up a floating LNG receipt facility (FSRU) in Bay of Bengal for import OF super-cooled natural gas (LNG) in ships and then piping it to onshore. Shell had teamed up with billionaire Anil Ambani-led Reliance Group’s Reliance Power and Kakinada Sea Ports Ltd (KSPL), which operates the Kakinada deep water port in Andhra Pradesh, for setting up an FSRU with a capacity of up to 5 million tons per annum (mtpa), expandable to 10-plus mtpa to “meet the surging demand for gas in the region.” However, Reliance Power exited the project in 2014 and Shell decided to join the GAIL-led project. On January 15, 2015, Shell, GDF Suez and Andhra Pradesh Gas Distribution Corp (APGDC) — a joint venture of GAIL and Andhra Pradesh government, signed an agreement for 3.5-5 mtpa FSRU. Shell and GDF took 26 per cent stake each while ADGDC held the remaining 48 per cent. Also, another agreement was signed between GAIL, GDF and Shell to cover sourcing of LNG and the marketing of the regasified LNG from the terminal. For this venture, GAIL held 48 per cent stake and the remaining was split equally between GDF and Shell. However, the project never got off the ground as the foreign partners insisted on GAIL getting firm customers of imported LNG first, sources said adding GAIL however felt it cannot guarantee any minimum offtake in absence of indicative price of imported gas. This particularly because Indian Oil Corp (IOC) is setting up a 5 mtpa LNG import terminal at Ennore to cater to demand in the state while Adani Group is leading a joint venture to set up another similar capacity import facility at Dhamra in Odisha. The terminals had already led to Petronet LNG – the nation’s largest importer of liquefied natural gas, shelving its plans to build a 5 mtpa facility at Gangavaram in Andhra Pradesh. GAIL had in 2011 set up APGDC as a joint venture company with the government of Andhra Pradesh to set up regional gas pipeline distribution network and to develop projects to sell CNG in major cities of state. GAIL Gas Ltd, a wholly owned subsidiary of GAIL, held 50 per cent stake in APGDC while the balance was with state government entity Andhra Pradesh Gas Infrastructure Corp (APGIC). APGDC has been authorised by the regulator PNGRB to lay, build, operate and expand natural gas pipeline from Kakinada to Srikakulam having length of 301 km for the mainline. The pipeline will cover four districts of Andhra Pradesh namely East Godavari, Vishakhapatnam, Vizianagaram and Srikakulam. APGDC is also in the process of obtaining authorisation to lay further pipelines within the state. Lane Johnson Womens Jersey