IREDA to sanction Rs 13,000 crore loans for renewables in FY18
State-run Indian Renewable Energy Development Agency (IREDA) will sanction Rs 13,000 crore for clean energy projects next fiscal in the country, vying for around 20 per cent of the loan market share. With the government aiming at adding around 15 to 16 GW of clean energy projects, including solar and wind, there would be total credit market size of around Rs 65,000 crore. “We have planned to sanction around Rs 13,000 crore credit to clean energy project developers in the country in next financial year, which would be around 20 per cent of the market share,” IREDA Chairman K S Popli told PTI. Popli also said that IREDA would be able to release around Rs 8,000 crore for these clean energy projects in country. IREDA has sanctioned around Rs 37,000 crore of credit for clean energy projects in the country so far and has released around Rs 28,000 crore to developers, which aids generation capacity of around 7,000 MW. Elaborating further, Popli said, “The same amount of credit would be able to aid larger green capacities as the cost of clean energy equipment was quite high in earlier days”. The lower cost of equipment and lower borrowing charges have already pulled down solar energy tariff to all time low of Rs 2.97 per unit last month. The wind power tariff has too dropped to a record low of Rs 3.46 per unit in an auction of 1,000 MW capacity conducted by the Solar Energy Corporation of India (SECI). The loan sanctions by IREDA have grown from Rs 826 crore in 2007-08 to Rs 7,806 crore in 2015-16, with a CAGR of 32 per cent and expected to cross Rs 10,000 crore during this fiscal. Similarly, the loan disbursements have grown from Rs 553 crore in 2007-08 to Rs 4,257 crore in 2015-16, with a CAGR of 29 per cent and is likely to cross Rs 6,000 crore in the financial year 2016-17. The net profit of the company has increased from Rs 47.96 crore in 2007-08 to Rs 298.04 crore in 2015-16. In order to give more wings to IREDA’s ambitious plans to finance clean energy projects, its board has approved initial public offer proposal of Rs 13.90 crore fresh equity share with face value of Rs 10 each during February 2017. The initiative would help IREDA to increase its net worth facilitating lending to larger projects. The fresh issue of share shall be at price to be determined through a book building process. The IPO process is expected to be completed within six months from the date of approval of Cabinet Committee on Economic Affairs (CCEA). As soon as the necessary approvals are in place, IREDA shall approach the market and there is no question of wait by the agency for the market to stabilise before approaching the bourses, the official said. Though several commercial banks and financial institutions have forayed into clean energy financing, IREDA has been successfully maintaining its substantial share of the renewable market. Now, the other big players in the green energy finance market next fiscal would be state-run Power Finance Corp and Rural Electrification Corp, which are likely to have substantial share in the segment. DJ Moore Authentic Jersey
Andhra plans to generate 11,670 Mw additional power
Keeping in view the future power requirements of the capital city of Amaravati, the state government has unveiled its ambitious plans to add 11,670 mw more to its capacity. The government will take up projects in that direction in the next 10 years at an estimated cost of Rs 84,000 crore. At a review meeting here on Sunday, managing director of AP Genco K K Vijayanand said that the chief minister had directed the officials to adopt the latest global technologies in power generation for optimising thermal power generation in a cost-effective manner. He said the government will tap non-conventional energy sources like solar and wind power. Vijayanand, who is also the chairman and managing director (CMD) of AP Transco, said that the state government is keen to constitute a committee to study the best global practices and the latest IT initiatives in thermal energy generation, transmission and distribution.” To further enhance the efficiency of AP utilities, we are planning to study the best practices adopted in Japan and Germany,” he added. Stating that the state government is ready to meet power requirements during summer, Vijayanand said AP Genco is geared to enhance its thermal power generation. Nick Martin Womens Jersey
Essar Oil gives undertaking to pay lenders soon after Rosneft deal
Pushed by LIC, Essar Oil has given an unconditional undertaking to the institution and some of the lenders that their dues would be cleared within three days of the closure of its crucial deal with the Russian firm Rosneft. These lenders had expressed their reluctance to approve the proposed acquisition of Essar Oil by Rosneft and other offshore investors till the dues are cleared. On Friday, Essar communicated its decision to LIC, GIC and some of the banks which insisted on settlement of loan dues, a person familiar with the development told ET. The unconditional and irrevocable undertaking has been en cable undertaking has been endorsed by Rosneft and other strategic investors who would hold 98% of Essar Oil once Essar group promoters Ruias sell their stake. Under the circumstances Essar will have to prepay around $225 million to various lenders in persuading them to clear the deal -which is expected to revive the group and lower leverage levels of debt saddled companies like Essar Steel. Most loan covenants typically lay down that lender’s consent is necessary for a change of management. Essar and its lenders having large exposure to the group are keen to close the deal by March 31. One of the possible reasons for sticking to the deadline could be future tax implication of signing the deal on or after April 1, 2017. Since Essar holds stake in the g roup company through Mauritius-based entities, selling shares after March 31 would mean a capital gains tax for Rosneft and other foreign investors if they choose to exit in future. According to India’s revised treaty with Mauritius, while shares bought before April 1, 2017 would not attract capital gains tax irrespective of when they are sold, there would be capital gains tax on shares bought on or after this date and sold later. Thus, even though selling shares after the deadline of March 31, 2017 would not require Essar to pay any capital gains tax, it would expose Rosneft and other investors to capital gains tax as and when they sell their stakes. However, a senior banker as well as a person close to Essar brushed aside any such concern and the possibility of renegotiation of the deal price if the transaction is not closed by March 31, 2017. “It’s not an issue for long-term strategic investors like Rosneft. These are matters which typically would concern private equity investors,” said one of them. LIC had told Essar that it would approve the deal only after its loans to Essar’s power venture are regularised.In reference to this, an Essar official told ET that Essar Oil and Essar Power had individually availed long term facilities from LIC and the these facilities cannot be linked. LIC and other lenders are yet to respond to the proposed undertaking. The $13-bn deal, which would be single largest inflow of foreign direct investment into India, was announced last October when Prime Minister Narendra Modi met President Vladimir Putin during a meeting of BRIC leaders in Goa. Rob Housler Authentic Jersey
India to formally sign oil and gas contracts with companies under new policy
India’s oil ministry will today formally sign oil and gas extraction contracts with winning bidders under the recently concluded discovered small field (DSF) auctions, the first such bidding for exploration licenses held by India after a gap of six years. The auctions had witnessed 134 e-bids for 34 contact areas of the 46 offered. Later, 22 companies were shortlisted for 31 contract areas of which 15 companies were new entrants with no prior experience in the sector. Touted as an auction round that would replicate the shale gas revolution of the US, half of the fields went to new and lesser known entrants like engineering company Megha Engineering & Infrastructure, KEI-RSOS Petroleum, Enquest Drilling and Nippon Power and many more new players with no prior experience in the oil and gas sector. “The DSF auction round was very important for the country as it helped us gauge the high investment sentiment even at a time when investments in the exploration sector were at an all-time low globally. The government has successfully changed the negative sentiment that used to be attached with the sector earlier,” a senior official said overseeing the contract signing said. He added that the positive response from the investors, especially new players, has given the government the confident to go ahead with the second round of DSF bidding. “We also expect a healthy response from investors in the upcoming oil and gas auctions held under a revamped bidding mechanism called open acreage licensing policy,” he said. The oil ministry had launched DSF I in May 2016 under a new liberalized policy under which 46 contract areas consisting of 67 fields spread across nine sedimentary basins were auctioned. The ministry had pegged the indicative gross revenue over the economic life of these fields at Rs 46,400 crore. These fields, which hold in place reserves of 62 million tonnes of oil and oil equivalent gas, can cumulatively produce a peak of around 15,000 barrels of oil per day and 2 million standard cubic meters per day of gas, the Directorate General of Hydrocarbons (DGH) said in a statement last month. The peak oil and gas output envisaged is about 2 per cent of India’s current oil and gas production Maurkice Pouncey Authentic Jersey
Nod to convert 57,500 km state highways into NHs: Govt
The Centre has given in principle approval to upgrade 57,500 km of state highways to national highways so as to augment the existing 1.13 lakh km of NHs across the country, Parliament was informed today. “About 57,500 km length of state roads have been approved ‘in principle’ for their declaration as new NHs subject to outcome of their detailed project reports,” Minister of State for Road Transport and Highways Pon Radhakrishnan informed the Lok Sabha in a written reply. Keeping in view the requirements to enhance road safety, reduce congestions, improve road connectivity, the Ministry has taken decision to augment the NHs network of existing 1,13,298 km, he said. He said the ministry has also reduced threshold traffic for 4-laning of NHs from 15,000 passenger car units (PCU), 11,000 and 8,000 PCUs per day to 10,000 PCUs, 8,500 and 6,000 PCUs a day for plain, rolling and mountainous terrains respectively. Decisions have also been taken to entrust 4-laning of all such NHs to the National Highways Authority of India for their implementation through additional market borrowings etc in a phased manner by leveraging limited available budgetary allocation, he said. Taylor Lewan Womens Jersey
Powergrid Corporation commissions Rs 6,300 crore transmission project in Chhattisgarh
India’s largest and state-owned electricity transmission company Power Grid Corporation of India Ltd (PGCIL) today said it has started the commercial operation of its 800 Kilovolt HVDC Champa-Kurukshetra Pole I project. The power line is part of 800 kV, 3,000 Megawatt western-northern region HVDC interconnector transmission system for independent power projects in Chhattisgarh. The 2,576 circuit km Champa-Kurukshetra line has been set up at a cost of Rs 6,300 crore. “This project will enable transfer of power from Independent Power Producers (IPPs) generation projects coming up in Raigarh, generation complex in Chhattisgarh to demand centres of Northern region such as Harayna, Punjab, UP, Rajasthan and adjoining areas,” Power Grid said in a release.
Air India considering no-fly list after MP assaults staffer
Air India is examining creating a no-fly list for unruly passengers — a negative entry list which will mean that a person mentioned in that will not be allowed to fly on flights operated by the national carrier. This follows an incident on Thursday at the IGI airport here in which Shiv Sena MP Ravindra Gaikwad assaulted an Air India staffer after he was upset that despite having a business class ticket he was made to travel in the economy class. Sources told BusinessLine that early on Thursday the airline received a call from the MP’s staff that Gaikwad would be travelling to Delhi from Pune on AI 852. Since the MP was holding an “open business class” ticket, the airline staff informed them that they could consider travelling on another AI flight as business class seating on that particular flight had been discontinued. Sources in AI claimed that Gaikwad agreed to travel on the flight despite knowing that there was no business class seating in it. However, when the flight landed in Delhi at 9.40, Gaikwad was “agitated” and declined to get off the aircraft demanding that senior officials of the rank of Chairman and other Directors come to meet him and address his complaint on the spot. Sukumar, a former Air India crew member who was the senior most person at the AISATS, was deputed to pacify the MP. AISATS, an airport services company, is a 50:50 joint venture between Air India Ltd and SATS Ltd, a leading gateway services and food solutions provider.. The MP lost his temper when Sukumar told him that being an elected representative of the people, he should conduct himself accordingly. In reaction to this, the MP took off his slipper and hit the AISATS employee and pushed him out of the aircraft’s exit door. Sources claimed that crew members and others intervened and physically restrained the MP from causing further harm to the employee. Sources also claim that Air India and Sukumar will be registering FIRs against the MP. Air India will register the FIR for “forcibly holding the flight, due to which it was delayed by 40 minutes.” Justin Bailey Jersey
NHAI urged Odisha Government to give land for free for building National Highways
The National Highways Authority of India (NHAI) has urged the State Government to give land for free for building National Highways as the district Collectors are asking it to deposit funds before handing over Government land. NHAI Chairman Yudhvir Singh Malik requested the State Government to reconsider its decision to demand cost of the land for building NHs. Malik, while appreciating the State Government for handing over land in the Talcher-Dubri-Chandikhole stretch of National Highway 200/23 for improvement, requested State to review its order to demand deposits for acquisition land in other cases. The Odisha Government in the Department of Revenue and Disaster Management has issued orders in this regards and had asked the district Collectors to collect deposits from the NHAI before handing over the Government land. The NHAI is saying that by setting up the National Highways in the State, the social and economic benefits accrue to a community once transportation networks between towns and cities are strengthened. Tramaine Brock Womens Jersey
Government looks to capture big gains from infra boom via VCF policy
A classic get-rich-quick scheme for the well-connected is picking up land cheaply near a new national highway, a railway line or in a smart city before such plans are widely known, then making a killing as prices inevitably soar. Not for much longer. The government has decided to implement a value capture financing (VCF) policy for all infrastructure projects starting April to recover the premium that public investments generate for private landowners. “The government has decided VCF to be an integral part of detailed project report (DPR) of all projects of the central government,” the finance ministry wrote in a note sent to all ministries and departments. ET has reviewed the note. The financing tool, which is used the world over, is based on the logic that the government makes large investments in developing public infrastructure leading to rapid economic development in those areas and a spike in land prices. A VCF policy would mean tapping into this increment through additional taxes, government-as-realtor and other tools and then using these finances to fund future infrastructure projects in the same area. The government has decided to implement such a policy after considering it for six months and conducting intensive stakeholder consultations. Ministries and departments will identify the mode by which the VCF policy can be implemented for every project. Each project proposal put before the Public Investment Board (PIB) and the Delegated Investment Board (DIB) will contain these details. “It has been decided that the PIB headed by the secretary (expenditure) as well as the DIB chaired by the administrative department concerned while appraising a project of the Central government being implemented in the states, would see whether the ministry/department piloting the proposal relating to the project has examined the option of VCF or not,” said the finance ministry note cited above. This is the first time a VCF policy has been framed and is being implemented at the Centre. Though the policy details some financing tools–including land value increment tax, fee for changing land use from agricultural to non-agricultural and area-based betterment charges–nothing specific has been recommended. Each project will be gauged and varied tools can be employed on the basis of location–urban or rural. State governments have been employing the financing tool sporadically. The above policy has been recommended to the states but won’t be mandatory for them to follow. Jodie Meeks Authentic Jersey
KEI-RSOS secures two oil and gas blocks in KG Basin
KEI-RSOS Petroleum & Energy, which currently operates five marginal gas fields in the KG Basin and markets the gas to industries, announced securing two oil and gas blocks in the KG Basin from the union petroleum and natural gas ministry. The allotment of these blocks was part of the discovered small fields in global bids where the bid rounds were launched in May last year and blocks were allot ted under revenue sharing model last week. The two blocks allotted to the company together hold reserves of over 1,400 million barrels of oil and 35,000 million standard cubic feet of gas. KEI-RSOS Petroleum is jointly owned by Lt Murthy Jasti of the River Bay group of Rajahmundry and KEI group owned by Anil and Shobhana Kamineni of the Apollo Hospitals promoters’ family. The JV firm proposes Rs 200 crores to invest around over the next two years to exploit reserves from these blocks. Derek MacKenzie Authentic Jersey