Soon inter-city flights for just ₹2500, says UP civil aviation minister
One hour flights to cities like Lucknow, Gorakhpur and Varanasi from Allahabad for just Rs 2500 will become a reality soon. Nand Gopal Gupta ‘Nandi’, UP cabinet minister of stamp, registry and civil aviation, spoke extensively about how cities in UP will be well connected with air service. Starting helicopter service to six pilgrimage sites in the state was also in the pipeline. He talked about his plans in an interview with HT How are you planning for small distance flights at cheaper rates in UP? In order to make air service available to even medium and low income group people, we have planned to launch small distance flights from Allahabad. The one hour flight will cost just Rs 2500. There will be viability loss but 80% of it will be covered by the Centre and 20% by the state. We are also inviting private airlines to launch their service in UP. Once the number of passengers increases, the loss will automatically be covered. When will Allahabad airport become fully operational with more number of flights? The target is to make it fully operational by October 2018 before Ardh Kumbh. It would be well connected with Delhi and other parts of the country. We have recently sanctioned Rs 35 crore for acquiring land etc for the airport. I have also asked the district magistrate of Allahabad to inform in case more funds are required for the purpose. Are there any plans for construction of airport in other cities of UP? Bareilly and Kushinagar will also be having airports. In Bareilly, we have also acquired land for it. Is it true that major pilgrimage sites in UP will be connected with helicopter service? In the initial phase, six pilgrimage sites will be connected with helicopter service. These sites include Vindhyachal, Chitrakoot and Naimisharanya. Helipads are being constructed at these places. In the second phase, other places of religious significance will be covered. How do you propose to make stamp and registry department work as per the ‘Digital India’ initiative of PM Narendra Modi? We have already started working to further strengthen the e-stamping facility in which online payment for non judicial stamps could be made within a few minutes. Further, swipe machines would be installed for making cashless payment for registry. Now, the newly-wed couples can also get their marriage certificates online. They just have to submit their Aadhaar number in the online form. In this way, fewer people would come to departments for getting their certificates. This would, in turn, hopefully bring down the corruption graph. Further, these departments will be made people-friendly with water and seating facilities. Jonathan Cooper Jersey
Number of passengers denied boarding a flight doubled in past 1 year
As per the PTI report, Just a week after a passenger of an allegedly overbooked United Airlines flight was removed forcibly from the aircraft in Chicago, US, the Indian government’s air traffic data has revealed that incidents of passengers being denied boarding by domestic airlines have doubled in the past one year. However, procedure specified by aviation watchdog Directorate General of Civil Aviation (DGCA) seeks to ensure that people are unlikely to be taken out of the plane like David Dao, the passenger on the United Airlines flight. A total of 18,242 passengers were not allowed to board aircraft between April 2016 and February 2017, the government data said. This is an increase from 10,561 passengers who were not allowed onboard aircraft during the same period in the preceding year. According to the data for 2016- 2017, more than 80% of the passengers affected were those who flew Jet Airways and 14% were Air India fliers. Dave Robinson Womens Jersey
Airlines should be allowed to overbook seats: global airlines body IATA
Carriers should be permitted to continue with the overbooking practice as seats in a flight are a time sensitive and “perishable” product, global airlines body IATA said today. Against the backdrop of American carrier United Airlines forcibly evicting a passenger recently — an incident that sparked a global outrage — the International Air Transport Association’s (IATA) said the practice of overbooking flights is an important tool for managing inventory. “Airlines should be allowed to continue long-established overbooking practices. The airline business is unique in that once a flight takes off, the seats on that flight are no longer available for sale; it’s a time-sensitive, perishable product,” the grouping said in a statement. Overbooking refers to airlines allowing passengers to book seats in excess of available capacity. IATA also noted that airlines can, with a degree of certainty, overbook a flight considering the number of no-shows expected. While stating that some governments are considering regulations which would restrict the overbooking practice, IATA said it is an economically important activity that should not be denied to the carriers. If the practice of overbooking is stopped then consumers might lose access to more flexible fares that are available, it added.
Lufthansa says starting local airline in India a ‘misadventure’
Deutsche Lufthansa AG said starting a domestic airline in India, the world’s fastest growing aviation market, will be a “misadventure” because of high jet fuel taxes and the cost of operations. Lufthansa’s comments come weeks after Qatar Airways Ltd. said it plans to start an airline in India with as many as 100 planes, as the Gulf carrier looks for a bigger share of a market projected to sell half a billion domestic tickets in a decade. Singapore Airlines Ltd., Etihad Airways PJSC and AirAsia Bhd. have also bought stakes in local carriers buoyed by an emerging middle-class flying for the first time. “You only go make business when you have business plans which give you hope that you can be very successful,” said Wolfgang Will, a senior director for South Asia at Lufthansa, “And I did not hear up to now of any domestic airline in India making a lot of profit.” Lufthansa has a history of running an Indian airline. It was part of a partnership that ran ModiLuft, which was grounded in 1996 after disputes over payments with the German carrier, creditors, oil companies and the Airports Authority of India. The airline’s permit was later used by two entrepreneurs to start SpiceJet Ltd., now India’s second-largest budget carrier. Lured by an expanding market, more airlines are coming up in India. At least 43 businesses have applied to Indian regulators in the past two years to start some form of passenger air transport service in what’s projected to be the world’s third-biggest aviation market by 2020 and the largest by 2030. The increase in local traffic — estimated to reach half a billion in a decade — has outpaced all other markets for 23 straight months. Fuel Costs Still, the nation is home to some of the world’s costliest jet fuel, mainly due to provincial taxes of as much as 30 percent and cut-throat competition that forces airlines to sell tickets below cost. Aviation turbine fuel in India costs 70 percent more than it does abroad, and has led to the shuttering of as many as 17 airlines in the past two decades, according to a research paper by KPMG and The Associated Chambers of Commerce of India. Indian carriers lost money every single year for a decade before posting a combined profit of $122 million in the year ended March 2016, helped by a crash in oil prices, according to Sydney-based CAPA Centre for Aviation. The industry is set to report losses of as much as $750 million in the two years ending March 2018, according to CAPA estimates. Petr Mrazek Jersey
Solar tender and auction slow down despite installation speeding up
While solar installations in India have picked up speed, tender and auction activity have been slowing down over the last few quarters. The slowdown in activity has been disconcerting to developers and manufacturers that have been positioning for much higher levels of activity based on India’s solar installation goal of 100 GW by 2022. Mercom India Solar Project Tracker shows about 1.9 GW was tendered in the first quarter of 2017 (1 GW of this was a retendered) compared to 3.4 GW in Q4 last year. There were 1.3 GW projects auctioned in Q1 2017 compared to 255 MW in Q4 2016. It may be noted, India needs to install 18 GW of solar per year through 2022 to reach the 100 GW installation target set by the Centre. The pace of tenders and auctions must pick up quickly if the government wants to meet its solar installation goals and show the investment community and the industry that it is serious. Companies who have invested hundreds of millions in expanding to meet the demand and build projects are anxiously waiting for activity to pick up, say experts. Some of the reasons for the decline in tender and auction activity include the poor financial condition of distribution companies (DISCOM), transmission issues, weaker power demand and increases in a captive generation by commercial and industrial companies. DISCOMs that are continuing to struggle financially are not taking on a new generation that is more expensive than coal, which is leading to curtailment of solar and wind projects as well as payment delays to developers. In some states, weak power demand is contributing to the lack of urgency to speed up the pace of solar tenders and auctions. The increase in captive generation by industrial customers have compounded the situation since they are requiring less power generation from DISCOMs. The World Trade Organisation (WTO) ruling against India’s domestic content requirement (DCR) has resulted in continuous cancellations and postponements of planned DCR tenders. The recent record low bid of Rs.3.30 (~$0.494)/kWh at the REWA solar park auction is playing a big role in the slowdown of auction activity as government agencies and states are stalling to renegotiate PPAs that are more expensive than the bids received at REWA. For DISCOMs, coal is still the cheapest option available. According to Mercom’s December Solar Quarterly Report, DISCOMs have resorted to sporadic curtailment from some solar projects in Rajasthan and Tamil Nadu because cheaper power is available on the power exchanges. Even when there is demand, several states have complained that the DISCOMs are resorting to power cuts instead of buying power on the exchanges to save on costs. The report added, power purchase agreements for 1.1 GW of solar in Jharkhand are yet to be signed because the state DISCOM is not accepting the quoted tariffs. Tariffs quoted in the state ranged from a high of Rs.5.59 (~$0.0824)/kWh to a low of Rs.5.08 (~$0.0749)/kWh. The state had tendered 1.2 GW of solar since December of 2015 in an effort to achieve its 2,650 MW solar target by 2020, but there has been no activity since. In this case, the DISCOM was unwilling to sign the PPAs for tariffs above five rupees per kWh claiming it is not viable for the DISCOM. It has been disappointing with the delay in tenders. After September 2016, tenders have slowed down for IPPs. It is less likely we will see new tenders after the REWA bid as each bid is now being expected to meet the REWA numbers, which is ridiculous. The Kadapa Solar Park tenders are postponed as Andhra Pradesh has pulled out because they now have surplus power and their cash flow situation is bad. DISCOMs are currently of the belief that solar tariffs are falling, so let us wait, with states claiming that they are power surplus and don’t need any kind of power, let alone solar, stated a large developer. Raj Prabhu, CEO of Mercom Capital Group said that although this is the lowest tariff ever recorded in India, this auction has several special attributes which make it hard to directly compare with previous low bids. The size and location of the projects, payment guarantees, deemed generation benefit, longer construction timeline, the recent solar module price crash, and yearly tariff escalation for 15 years – all make the low bids unique.” Prabhu continued, “The fear is that media, government officials and analysts will hype up the low bids and other states will then start pressuring developers to match bids from the REWA auction tariffs, which has happened in the past.” Mercom’s Solar Project Tracker, tendering activity has declined in Several states including Bihar, Jharkhand, Tamil Nadu, Rajasthan, and Maharashtra are the problem states. For instance, Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had tendered a total of 1,000 MW of solar in two separate tenders but received a tepid response due to TANGEDCO’s reputation of curtailing power, as well as delaying payments. Reluctance on the part of DISCOMs to buy from solar generating projects in the presence of cheap power from other sources is another challenge, said an official. The transmission system also needs to be developed in the state to allow optimum utilisation of solar projects. This is another reason tenders have slowed down in the state. “We hope this is a short-term issue which, once resolved, tariffs will get down to realistic levels and there will be a big spurt in activity. However, if some of these pressing issues are not resolved quickly, growth will stall,” said Prabhu, CEO of Mercom Capital Group. “There needs to be a policy mechanism put in place to avoid the stop and start in tender activity every time there is an outlier in terms of a low bid. However, if states revise their tenders to include all of the positive aspects of the REWA tender, it could be a win-win for all”. Al Davis Jersey
Govt to give custom, excise duty benefits to boost solar rooftop sector
In a boost to India’s lagging solar rooftop sector, the Union ministry of new and renewable energy (MNRE) has decided to give custom and excise duty benefits to it for ensuring high growth. The move will not only bring down the costs of setting up projects but also that of generation. Solar power developers setting up grid-connected solar PV (photovoltaic) projects have been seeking “grant of duty benefits” (custom and excise duty) from the MNRE for installation of rooftop systems. “The matter of extending the duty benefits to the rooftop grid connected solar PV power plants has been under consideration in this ministry for past some time. After examination of various issues involved, it has been decided to give customs and excise duty exemption certificates, with immediate effect, to all rooftop solar PV power projects upto a minimum capacity of 100 KW (Kilowatt) as a single project or bundled project,” said an MNRE order dated 11 April. India has set up an ambitious 100 GW solar power target by 2022. Of the 100 GW, 60 GW is planned through large- and medium-scale grid-connected solar power projects while 40 GW is planned from the solar PV (photovoltaic) rooftop system. But the sector has not seen great growth and the target of 40 GW by 2022 remains a mammoth task. As per reports, India’s rooftop solar capacity till 2016-end was about 1GW only. Experts welcomed the custom and excise duty benefits for the solar sector. “It’s a good decision. We have ambitious targets and we need to take various steps to encourage the solar rooftop sector. We need to bring the cost down and make it more lucrative,” said Rakesh Kamal, a consultant with The Climate Reality Project, an independent organisation working on climate change-related issues. Kamal, however, cautioned that MNRE should also focus on maintaining the quality of solar panels being used. India has given a huge thrust to the solar rooftop sector as it does not require pooling of land or separate transmission facilities and has minimal technical losses, unlike ground-mounted solar projects. The solar rooftop sector also benefits power distribution companies in various ways. For instance, rooftop projects enable these companies to meet their renewable purchase obligations, help them in managing daytime peak loads which are projected to become more widespread as India’s economy grows and in localised generation of power that ultimately helps them in avoiding costly power. States leading in providing solar rooftop power are Tamil Nadu, Gujarat and Punjab. Trey Hopkins Jersey
Export power to Pakistan to fill Punjab coffers: IIM-Ahmedabad
Many experts see Punjab’s border with Pakistan as a liability because drugs and terrorists sneak through it, wreaking havoc. But a study by India’s premier B-school, Indian Institute of Management, Ahmedabad (IIM-A), sees an opportunity in Punjab’s unique geography. A study , ‘Tariff and related matters: The electricity sector in Punjab’, prepared in May 2016 after the Pathankot terror strike, says Punjab, which has a massive Rs 1.34 lakh crore debt, can use the border to substantially increase its annual revenue collection. All the new Captain Amarinder Singh government has to do is sell its surplus electricity to Pakistan. The proposal has come at a time when Punjab has borne the brunt of two of the deadliest terror strikes in recent years originating from Pakistan – the Gurdaspur attack at Dinanagar of 2015 in which seven people were killed and the Pathankot airbase strike in early 2016 in which eight people died. The IIM-A study has crunched the numbers and given three ways by which the state can evacuate surplus power of Punjab State Power Corporation Limited (PSPCL). Punjab call sell its electricity to powerdeficit states like UP, sell it in the open market and to large consumers like Railways and export it to Pakistan. “Pakistan is facing acute energy crisis at the moment.There is scope to export power to Pakistan. The total available capacity for generation in Pakistan was only 12,361 megawatts (MW) in April 2016 ,” says the study , authored by G Raghuram and T S Krishnan. A study by India’s premier Bschool, Indian Institute of Management, Ahmedabad (IIM-A), sees an opportunity in Punjab’s unique geography . The study authored by G Raghuram and T S Krishnan says that as per projections, the need is bound to jump to about 40,000 MW by 2020. Jermaine Kearse Jersey
Power woes to multiply: Summer yet to peak, but Chandigarh already short of electricity
There could be a lot of sweating in store for residents with the UT administration not getting 30MW (around 10% of city’s peak demand of 400 MW) of power it used it used to buy from Jammu and Kashmir every year. UT electricity department superintending engineer MP Singh told HT, “We were drawing power up to 30 MW from Jammu and Kashmir during summers and we use to give them power during winters. The finances were settled mutually. Now, however, we will not buy power from them as they some financial issues to settle with the Central power authorities. ” “The maximum load is between 1 pm to 4pm and during the night. Now, rotational cuts likely to be deployed, the residents will be harassed. The department for year 2016-17, 17-18 and 18-19, has projected the peak demand to be 426 MW, 450 MW and 475 MW,” the officer added. UT buys power from central stations The electricity department does not have its own power generation source and buys power through its allocation from the NTPC, the NHPC, the NPCIL, the BBMB, Satluj Jal Vidyut Nigam (SJVN) and Tehri etc. ‘Heatwave to stay, rain by weekend’ The weather department has predicted no respite from the scorching heat (the temperature touched 39°C on Monday) for the next two days. Relief is likely only by the weekend as there is prediction of rain on April 21 and 22 (Friday and Saturday). Temperature is likely to touch 40°C over the next two days. The minimum temperature recorded was 25.2°C, 6°C above normal. The humidity oscillated from 20% to 57%. “The temperature will increase during the next two days, but it will decline on April 21-22, as there is a possibility of rain,” said Surender Paul, Director, India Meteorological department, Chandigarh. Zdeno Chara Jersey
Haryana govt promises unhindered power supply in Gurugram this summer
Rubbishing media reports of power outages in several areas of the Millennium city, the Haryana Power Utilities said they were fully capable of meeting the peak load this summer season and that there will no outages on account of deficiency in the system or shortage of power availability. The reaction came after a section of media reported frequent power cuts and tripping in the areas of South City, Sector 17, 30, 31, 43 46, 47, 21, 15, New Basti, Patel Nagar etc. “The power cuts reported in the above mentioned areas on Saturday were on account of planned maintenance activity and not due to any fault in the transmission or distribution system,” an official spokesperson said. He said power outage was permitted to facilitate the work of shifting of power lines coming in the way of construction of underpasses on the National Highway 8. Besides, HVPNL also had to shut down the Badshahpur Sector 15 power line due to erection and shifting of towers falling in the way of highway and the underpasses, he said. The spokesperson further clarified that there is a lot of construction activity going on along the highway for quite some time now, which has forced DHBVN and HVPN to allow shutdowns as per requirement of civic authorities. He said a special drive for maintenance and up-gradation of system has been launched since the last four months, and around 1,880 meter ACSR conductors have been erected and 154 transformers added to the system in Gurugram. “Dakshin Haryana Bijli Vitran Nigam (DHBVN) has set up a call centre in the city to deal with complaints of power cuts. The call centre can be reached 24X7 on toll free number 1912. Besides, another toll free number 1800-180-4334 has been set up for the consumers to contact the Helpdesk round the clock,” the spokesperson added. Doug Baldwin Authentic Jersey
Oil and gas activity firmly back in growth mode
For the first time since crude prices began falling in late 2014, Permian Basin oil and gas activity is exceeding year-ago levels. The Texas Permian Basin Petroleum Index achieved the milestone of year-over-year increases in February, according to Karr Ingham, the Amarillo economist who prepares the index. He said the index was up sharply from January levels and is 2.4 percent higher than the February 2016 levels. Ingham also cited sharp improvements in crude oil price averages, rig count, drilling permits and oil and gas employment compared to year-ago levels. February crude prices were just over $50 a barrel, up 84.7 percent from the $27.08 averaged the previous February. This is the first time prices have topped $50 a barrel since June 2015, according to Ingham. He said activity may slow in the near future barring an unforeseen event that sends prices significantly higher. The rig count, which had more than doubled since last summer, has seen its growth curve flatten over the last couple of weeks, both in the Permian Basin and statewide, Ingham said. “How far will $50 take us? I don’t know the answer but it will take us ahead for the foreseeable future,” he said. While the industry has momentum at the moment, he said the outlook bears watching. “We’ll see where oil prices land,” he said. “At some point there will be a plateau. The rig count may already be stalled right now, and drilling permits indicate strong activity for now. Assuming we don’t get a significantly higher oil price in 2017, at what point do we reach an activity level incentivized by $50 oil?” he said. As oil prices began their 85 percent surge, so did the rig count, Ingham said. The February rig count averaged 252 rigs, the first time it has topped 250 since March 2015 and was a 66.9 percent rise from the 151 rigs averaged last February. Reflecting that growth in activity, estimated direct oil and gas employment in Midland-Odessa recorded a year-over-year increase of almost 700 jobs, or 2.4 percent, the first such increase since February 2015. The Railroad Commission issued 564 drilling permits in February, up 79.6 percent from the 314 issued last February. In the first two months of the year, the commission has issued 1,051 permits, up 84.7 percent from 569 in the same period of 2016. Operators reported 245 oil completions in February, down 40.8 percent from the 414 reported last February and have completed 489 oil wells so far this year, down 42.9 percent from the 856 completed at this time last year. Crude production volumes rose 3.2 percent compared to February 2016 and are up 3.5 percent so far this year. Natural gas continued to mirror crude oil, reporting higher prices and production volumes. Natural gas averaged $2.61 per Mcf in February, up 45 percent from $1.80 last February. Producers reported only nine natural gas completions in February, down 69 percent from 29 last February and have completed 14 wells so far this year, down 72 percent from 50 a year ago. Natural gas volumes from Permian Basin wells was up 3.3 percent over last February and is up 4.6 percent so far this year. Curtis Lazar Womens Jersey