India may make local steel use mandatory in govt infra projects
India may soon mandate the use of local steel in government infrastructure projects worth billions of dollars, sources said, pitching it as a WTO-compliant protectionist measure aimed at further cutting cheap imports, mainly from China. The government expects the move to boost sales of local companies such as JSW Steel and Tata Steel, and eventually attract global steelmakers such as ArcelorMittal and POSCO to invest in the country, five steel ministry sources told Reuters. India, the world’s third largest steel consumer, has budgeted a record $59 billion for 2017/18 for steel-intensive infrastructure projects such as ports, roads, railways and power. “The preference in procurement will enhance demand and thus production. Definitely it is ‘Make in Steel’ and thus ‘Make in India’,” Steel Minister Chaudhary Birender Singh told Reuters. “It is preference with no compromise on quality and competitive pricing. To use domestic produce is an acceptable norm.” Analysts said a similar proposal by US President Donald Trump requiring the use of domestic steel to build two energy pipeline projects could violate international trade laws, but Indian officials say their plan will fall within WTO rules. A government document on the proposal, seen by Reuters, cites an article under the General Agreement on Tariffs and Trade of the World Trade Organisation, allowing an exception to “procurement by governmental agencies of products purchased for governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale”. Abhijit Das, head of the New Delhi-based think-tank Centre for WTO Studies, said the provision had been invoked by the United States in the past and India could do the same. The protectionist move would, however, shrink foreign companies’ sales in the world’s fastest growing steel market. Japan has already threatened to take India to the WTO over some recent steel restrictions. Boost production, cut imports India wants to nearly triple its production capacity by the next decade and acquire technology to produce higher value products including automotive steel. “Current level of capacity utilisation of domestic steel producers is below 80 per cent,” said Sanak Mishra, secretary-general of the Indian Steel Association in New Delhi. “If demand picks up on account of increased government spending on infrastructure and government mandates the use of domestic steel in such projects, the domestic steel producers are fully capable of raising the production level.” The proposal to use local steel, which will not be applicable to smaller projects, will be taken to Prime Minister Narendra Modi’s cabinet in a month, two of the sources said. Modi, under pressure to create millions of jobs, wants steel to contribute heavily to the government’s target of raising the share of manufacturing in the economy to 25 per cent by 2022 from 17 per cent now, according to a steel ministry document seen by Reuters. “In the absence of domestic capacity, India would have to largely rely on China for its steel requirement since it is the only country with adequate surplus capacity to meet India’s requirement,” said the document. “For a strategic product like steel which has uses in defence and infrastructure sector, this is a worrying proposition.” Debt burdens Most Indian steel companies are so saddled with debt, however, that large-scale expansions will be difficult, analysts say. The steel industry contributes 29 per cent of overall banking sector bad debt of around $135 billion, according to government data. Most companies have reported losses as prices fell after imports into India more than doubled to 13 million tonnes in 2015/16 from the levels of 2013/14. China contributed to more than a third of the imports. Following some restrictions on imports, April-to-January shipments into India fell a third to around 6 million tonnes. “The steel ministry has found an innovative way of clearing the bad debt by ensuring procurement,” said one of the sources. “When we say we will give preference to Indian steelmakers, the fence-sitters (among foreign steelmakers) will gear up to start investing in India.” Global companies including POSCO have made multiple field visits over the past few months but have not committed to any new projects in India. Steel ministry officials have also unsuccessfully courted Hyundai Steel, including offering them a strategic stake in SAIL’s money-losing units, over the past months. POSCO and Hyundai Steel declined to comment about their India investment plans. Su’a Cravens Authentic Jersey
Hyderabad, Delhi airports ranked high in service quality
Delhi International Airport (P) Ltd and Hyderabad International Airport Ltd, both managed by GMR-led consortium, have secured top rankings in airport service quality by the Airports Council International. While Delhi’s Indira Gandhi International Airport has become world’s number 2 airport in the over 40 million passengers per annum (mppa) category, Hyderabad airport was ranked number 1 in the 5-15 mppa category in the Airports Council International 2016 rankings. DIAL ranking DIAL’s score increased from 4.96 in 2015 to 4.99 in 2016 that helped IGIA scale over several other airports and attained the second position globally, after Incheon, South Korea. Delhi Airport joined the club of international airports handing over 40 MPPA. I Prabhakara Rao, CEO, DIAL, said in a statement, “We are now geared to undertake the expansion works at Delhi airport. IGIA Master Plan-2016 will further enhance the experience of our passengers.” Hyderabad tops The ASQ awards are presented to those airports whose customers have rated them the highest during the year. Delhi Airport is served by 11 domestic and 51 foreign carriers with average of 1,124 flight movements a day. The Montreal (Canada)-based Airports Council International survey in the 5-15 million passengers per annum category shows Hyderabad Airport has steadily improved its score from 4.4 in 2009 to 4.9 in 2016, measured on scale of 1 to 5. SGK Kishore, CEO, GHIAL, said in a statement, “We plan to go for expansion of the airport, where it can enhance its capacity to meet 20 MPPA.” Mark Scheifele Womens Jersey
Aadhaar is now must for free LPG connection under PMUY scheme
The government has made having an Aadhaar card must for poor women to avail of free cooking gas (LPG) connection under the Pradhan Mantri Ujjwala Yojana. While the government in October last year had made the unique identification number mandatory for everyone to get LPG subsidies, it has now extended the same for free cooking gas connections to women of BPL households. The government had last year launched the Pradhan Mantri Ujjwala Yojana to provide 5 crore poor women with free LPG connections in three years with a view to providing clean cooking fuel. “Individual beneficiary desirous of availing the benefits under the scheme (PMUY) is hereby required to furnish proof of possession of Aadhaar number or undergo Aadhaar authentication,” said a gazette notification issued by the Ministry of Petroleum and Natural Gas. Those below poverty line (BPL) women looking to avail free LPG connection but do not have the Aadhaar number, have been asked to apply for it by May 31. Once enrolled for Aadhaar, the beneficiary can apply for free LPG connection by providing the enrolment ID slip or a copy of such a request. Such application will have to be accompanied by one of the government identification documents like bank passbook with photograph, election voter ID, ration card, permanent account number (PAN), passport, driving licence, kisan photo passbook or a certificate of identity having a photo issued by a gazetted officer on an official letterhead, it said. The ministry has asked state-owned fuel retailing firms to facilitate enrolment of beneficiaries for biometric identification number, Aadhaar. In October last year, the government had made Aadhaar mandatory for availing of cooking gas (LPG) subsidies. The government currently gives 12 cylinders of 14.2—kg each at subsidised rates per household in a year. The subsidy on every cylinder is transfered in advance directly into bank accounts of individuals, who then buy the cooking fuel at market rates. The ministry notification issued on March 6 stated that the use of Aadhaar as identity document for delivery of services or benefits or subsidies simplifies the government delivery processes, brings in transparency and efficiency, and enables beneficiaries to get their entitlements directly to them in a convenient and seamless manner. “Aadhaar obviates the need for producing multiple documents to prove one’s identity,” it said. Riley Nash Jersey
Boeing pitches B737 MAX 10 to Indian operators
Boeing(BOE, Chicago O’Hare) has pitched its proposed B737 MAX 10 project to two of India’s largest operators of the B737 Family of jets, SpiceJet (SG, Delhi Int’l) and Jet Airways (9W, Mumbai Int’l), Dinesh Keskar, the US manufacturer’s Senior Vice President (Sales – Asia Pacific & India), has told Reuters. As such, according to the report, Boeing has pitched to the two Indian operators as a means of determining market receptiveness to the aircraft, which is aimed at the A321neo niche. According to Keskar, the MAX 10 would be ideally suited to Indian carriers running frequent shuttle flights between the country’s main hubs. “If you are flying to the metros this (737 MAX-10) will be a perfect airplane, because runways are long, demand is there, frequency is already there,” he said. According to Boeing, the B737 MAX 10 will feature a 66-in. fuselage stretch, or two seat-rows, on the B737 MAX 9. Seating a total of 230 in a single class configuration, the upgraded CFM International Leap 1B-powered twinjet could make its debut as early as 2020. Joseph Noteboom Authentic Jersey
Govt says renewable energy capacity grew 26 per ccent in Apr-Jan
Generation of renewable energy grew 26 per cent in Apr-Jan 2017 as compared to that of previous corresponding period. Generation of power from renewable sources grew to 55,518.3 units in Apr-Jan as against 70,129.15 units during the same period last year. “Strong focus on renewables is driving up total electricity generation figures. In 2017 alone, for Apr-Jan 17, electricity generation growth was 5.04 per cent excluding generation from renewable sources. However, if renewable generation is included then total generation for the same period became 6.25 per cent,” the government said in a release. During the same period, generation from conventional sources grew over 5 per cent to 922,299.71 units from 968,780.44 units a year back. Conventional sources of energy account for over 70 per cent of India’s current energy mix. In February alone, generation from conventional sources of energy stood at 3.57 per cent. “February 2016 was a leap year with 29 days and February 2017 had only 28 days. The extra generation of 1 day in February 2016 affected the February 2017 figure by 3.57 per cent. Had February 2017 also had 1 extra day the increase in electricity generation from conventional sources would have been 3.52 per cent,” the release said. The government wants to take up the renewable energy capacity of the country to 175 Gigawatts by 2022 with solar alone accounting for 1 GW. Shea Weber Womens Jersey
Renewables purchase obligations: CERC to make it easier for discoms
The Central Electricity Regulatory Commission (CERC) has proposed to decrease the floor prices of renewable energy certificates (RECs), making it easier for the state discoms to meet their renewable energy purchase obligations (RPOs). For solar, the proposed floor price is R1,000 per REC, substantially lower than the current rate of R3,500. For non-solar RECs, the proposed floor price has been suggested to be R1,000, down from the current R1,500. The proposed reduction in REC floor prices are in line with the fall in renewable energy costs. REC mechanism is a market-based instrument to promote renewable energy and facilitate compliance of RPOs. It aims to address the mismatch between availability of renewable energy resources in the states and the requirement of the obligated entities to meet their RPOs. One REC is treated as equivalent to 1 Mwh of green electricity. RPO mandates that all electricity distribution licensees should purchase or produce a minimum specified quantity of their requirements from renewable energy sources. The state electricity regulatory commissions fix the minimum RPO for the states. The forbearance prices of RECs, or the upper price limit at which the RECs can be traded, have also been proposed to be cut. Forbearance prices for solar RECs may be slashed by more than half to R2,500 from R5,800. The same for non-solar RECs may come down to R2,900 from R3,300. Nick Cousins Jersey
Brazil to auction power transmission licenses on April 24 requiring $4.2 billion investment
Brazil’s energy regulator Aneel said on Tuesday it will auction next month new licenses to build and operate 7,400 kilometers (4,598 miles) of power transmission lines requiring up to 13.1 billion reais ($4.2 billion) in investment. In a statement, the regulator said the power lines would pass through 20 Brazilian states and should enter operation in the five years after the auction, scheduled for April 24. Power generator Engie Brasil Energia SA and distributor Energisa SA have already expressed interest in bidding. President Michel Temer launched an infrastructure concessions program on Tuesday aimed at raising 45 billion reais ($14.4 billion) in investments in roads, port terminals, railways and power transmission lines. Industry analysts expect the power transmission licenses auction to be successful, following good results for another sale in October. The companies that acquired licenses last year included Brookfield Asset Management Inc, Equatorial Energia SA , Cteep Companhia de Transmissao de Energia Eletrica Paulista and EDP Energias do Brasil SA. ($1 = 3.1194 reais) Hayes Pullard Authentic Jersey
Energy policy may bring subsidy cut, price control in power, fertilisers
The government will soon outline comprehensive energy sector reforms that could free up sectors such as coal, electricity and fertilisers of subsidies and price controls, helping produce more power and make generation projects commercially viable for private companies. The policy could also give greater emphasis towards improving the financial condition of power distribution companies (discoms), which are bogged down by debt, to make the sector profitable in the medium to long term. Key suggestions being considered include overhauling the entire structural and functional capacity of discoms so that they operate more professionally. Official sources told ET that after intense deliberations held for more than a year with stakeholders, the government’s premier think-tank Niti Aayog has firmed up the National Energy Policy and the first draft will soon be made public. According to people who spoke to ET requesting anonymity, the electricity and fertilizer sectors are heavily subsidised, which is why their input costs cannot be increased as of now. “There is a need to bring down subsides in such sectors and the energy policy is expected to lay out a clear roadmap for lowering subsidies and aligning their prices to that of the market,” one of the people said. State discoms should run on commercial lines, either be privatised or run in private-public partnership mode or as a franchise to become profitable, according to Praveer Sinha, managing director of Tata Power Delhi Distribution. “While the Central government policies related to the sector are in the right direction, state utilities have to transform in a big way. Enough manpower capacity should be created to run them professionally and there should be integration of technologies between discoms,” said Sinha, who was part of the initial deliberations on the proposed policy. Ajay Mathur, director general of research institute TERI, is of the view that electricity reforms and coal supply are important to make the power sector commercially viable as well as available to all. “India’s energy sector needs continuation of strategic procurement policy for oil and gas while harmonising the domestic market. “Besides, the policy should focus on long-term strategy in the electricity sector to move towards renewables,” said Mathur, who too took part in the initial discussions on the policy. The Central government rolled out the Ujwal DISCOM Assurance Yojana (UDAY) to help discoms become profitable while finding a permanent solution to their financial mess. The scheme aims to provide a permanent solution to their legacy debt of about Rs 4.3 lakh crore and address potential future losses. The scheme comprises four initiatives for discoms – improving operational efficiency, reducing cost of power, lowering interest costs and enforcing financial discipline through alignment with state finances. The turnaround scheme allows state governments, which own the debt-laden discoms, to take over 75% of their debt, as of September 30, 2015. Discoms are expected to issue bonds for the remaining 25% of their debt. Zack Smith Authentic Jersey
Oil Ministry orders detailed review of ONGC board of directors
Oil & Natural Gas Corp is in for a shakedown with the petroleum ministry ordering a detailed review of its board of directors for a possible revamp of the functional heads, following prolonged delays in projects linked to output enhancement.While examining the status of oil and gas production last January, Petroleum Secretary KD Tripathi noted lapses in the development of discovered oilfield Ratna and R-Series, restarting of oil production from Amguri field as well as in conducting two-dimensional seismic surveys to identify new oil and gas reserves. “In this context, Secretary advised Joint Secretary (Exploration) to examine on file the re-organisation of ONGC Board of Directors, in particular the role of functional directors, with a view to have a lean structure facilitating quick decision making to boost the overall performance,” says the minutes of the meeting. Following replies by the ONGC officials during the January 17 meeting, Tripathi directed that each of the three projects be directly monitored by Director General of upstream quasi-regulator Directorate General of Hydrocarbons. Jake Matthews Jersey
AG&P and Air Liquide Global E&C Solutions sign MoU to deliver fully integrated LNG infrastructure solutions in Southeast Asia
AG&P (Atlantic, Gulf and Pacific Company), a leading integrator of infrastructure solutions across the LNG supply chain, has signed a Memorandum of Understanding (MoU) with Air Liquide Global E&C Solutions, the engineering and construction arm of the Air Liquide Group, to develop small-scale LNG infrastructure for LNG distribution across Asia. By combining their respective strengths, AG&P and Air Liquide will be able to offer unique, fully integrated and cost-optimized solutions for LNG distribution with a focus on liquefaction, transportation and downstream infrastructure to deliver LNG to end users seeking LNG for power, shipping, ground transport and other industrial applications. Under the MoU, AG&P will integrate the technologies offered by Air Liquide with its expertise in planning, designing engineering, financing and operating LNG infrastructure modules to build technologically-advanced blocks that can plug into any part of the LNG supply chain. This will deliver end-users faster and more cost-competitive solutions that maximize a project’s value. Commenting on the strategic alliance, AG&P’s Chairman, Mr. Jose P Leviste (Jr.), said, “This milestone agreement with Air Liquide will enable the integration of downstream LNG infrastructure, including small scale regasification terminals, distribution hubs, truck loading stations and boil-off gas handling systems into AG&P’s LNG supply network for rapid delivery of tolled gas to last-mile customers. Our aim is to streamline Air Liquide’s know-how in gas processing technology and patents with AG&P’s experience in design, engineering and construction to bring the most competitive solutions to customers across Asia. We offer unique products for both onshore and offshore applications.” As part of this MoU, AG&P and Air Liquide will begin developing standardized downstream LNG modules (some as skids) that optimize costs and shorten delivery time. The MOU as well covers innovative Boil-off Gas (BOG) management systems eliminating the need for investment in BOG compressors, while ensuring that no gas is vented or flared, bringing environmental and economic benefits to the customer. AG&P has a long and successful track record as an integrator of pragmatic solutions for the oil and gas industry with specific expertise in LNG. It is only one of three companies globally to have a global technical and licensing agreement for membrane tank design from the French giant, GTT. In addition, AG&P owns a major stake in Gas Entec, the leading Korea-based engineering firm. AG&P further has entered in a joint venture with Risco Energy Group of Indonesia. Recently, AG&P has announced its development of an LNG terminal in East India with Hindustan LNG. AG&P also co-owns and operates the Hydro Deck, a unique giant mobile port, through a joint venture with global heavy lift and logistics leader, ALE. Domenico D’Élia, Vice President and Chairman, Air Liquide Engineering and Construction said, “We chose AG&P to be our partner because of their reputation for innovation, safety record and fast delivery. Through this agreement, we will be able to meet the dynamic requirements of customers in the vast region of Asia where small quantities of LNG need to be delivered efficiently to end-users scattered across vast distances.” The demand for LNG continues to grow worldwide as countries seek to replace oil and heavy fuel oil with LNG as a cleaner and cheaper fuel for power generation, shipping, ground transport and industrial use. However, uptake remains slow because of a lack of the requisite infrastructure and investment to deliver reliable and sustainable supply. Much of Asia requires massive development of assets to bring the gas from its source to demand centers dispersed over vast geographies where it is estimated that $70 to $80 billion USD needs to be invested in gas infrastructure over the next decade. Through this MoU, AG&P and Air Liquide will pioneer the development of this much-needed LNG infrastructure. Archie Manning Jersey