25% jump in IPDS, DDUGJY funds to ensure 24X7 power for all
The proposal to hike expenditure under IPDS and DDUGJY schemes together by 25 per cent to Rs 10,635 crore as provided in the budget is likely to pave the way for sustainable energy for all. The allocations under the Integrated Power Development Scheme (IPDS) and Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) have been increased by over 25 per cent to Rs 10,635 crore in 2017-18 as compared to budget estimate of Rs 8,500 crore for this fiscal. However, the budget document stated that the revised estimate of these two schemes together, which are meant for increasing efficiency of power transmission and distribution, was Rs 7,874 crore for the current fiscal. “Today’s budget gave a clear indication of the government’s focus to achieve ‘sustainable energy for all’, with two of its critical steps,” Schneider Electric India Country President and MD Anil Chaudhry said on the budget that was presented by Finance Minister Arun Jaitley. He said, “Providing a boost to rural electrification with a 25 per cent increase in the outlay for key power schemes like IPDS and DDUGJY is expected to fast-track the rural electrification drive, which is now planned to be completed by May 1, 2018. Second, (it can be achieved) by strengthening focus on renewable energy forms with inflow of another 20 GW in the next fiscal.” DDUGJY’s objectives include separate agriculture and non-agriculture feeders, strengthen and augment sub-transmission and distribution infrastructure in rural areas and rural electrification. IPDS’ objective is 24×7 power supply for consumers, reduction of AT&C losses and providing access to all households. The budget has provided Rs 750 crore for 2017-18 under the head Power System Development Fund. The scheme envisages strengthening of existing distribution and transmission infrastructure by part-funding through grants. It also provides for subsidy to discoms purchasing electricity from stranded gas-based power plants. The overall budget of Ministry of Power has also been raised to Rs 13,881 crore in 2017-18, from Rs 12,252 crore budget estimate and Rs 10,475 crore revised estimate for the current fiscal. Similarly, the total expenditure of Ministry of New and Renewable Energy has also been increased to Rs 5,473 crore in 2017-18 from budget estimate of Rs 5,036 crore and revised estimate of Rs 4,360 crore in the current fiscal. Power Minister Piyush Goyal told PTI that the government’s push to rural sector and housing for all initiative will stoke demand of power and help improve plant load factor (PLF). Jarome Iginla Womens Jersey
Government Allocates Rs 1,800 crore as Budgetary Support to Air India
The government has put aside Rs 1,800 crore as budgetary allocation for Air India for the financial year 2017-18, less than what the national carrier asked for, in an indication the government continues its squeeze on fund handouts to the loss-making carrier. In the last financial year, the government had allocated Rs 1,713 crore while the carrier had asked for a total of Rs 3,300 crore. In the supplementary grants, the government allotted Rs 752 crore more making it a total of Rs 2,465 crore. A reduction in fuel prices and its own cost cutting measures has helped Air India reduce losses but it still accounts for the biggest chunk in the industry. In FY16, the airline posted a net loss of Rs 3,837 crore as compared to Rs 5,859 crore in the previous year. The bigger bother for the carrier however is its Rs 46,000 crore debt. Lohani had in a recent interview with ET said the government’s squeeze of financial support will lead to further pile-up of loans. “The government is giving us support to the extent of servicing loans raised for the procurement of planes as desired by it. It is always the owner who pays for the capital invested. These funds don’t even fully cover the loan repayments. These are not subsidies,” he said. “What will happen is that the money I owe to other organisations, including banks, will rise. We have to meet our costs: either by borrowing from banks, or delaying payments. That has been happening for several years,”he added. Henrik Sedin Womens Jersey
Civil Aviation Ministry gets 22% more budgetary funds for 2017-18
The Civil Aviation Ministry today received a substantial increase of over 22 per cent in budgetary allocation at Rs 5,167.60 crore for the next financial year. In the Union Budget 2017-18, presented by the Finance Minister Arun Jaitley in Parliament today, out of the ministry’s total allocation, a good chunk will be for Air India, which is to get Rs 1,800 crore. The amount will be extended to the national carrier as part of the bailout package announced by the then UPA government in 2012. Besides, the airline will be given Rs 508 crore as part of investment in public enterprises. National airports operator AAI (Airports Authority of India) has been allocated Rs 2,543 crore, apart from a budgetary support of Rs 100 crore. Meanwhile, the budgetary funds for aviation watchdog DGCA has been stepped up significantly to Rs 230.56 crore for 2017- 18. The amount is at Rs 29.67 crore for the current fiscal. Significantly, UN aviation watchdog, International Civil Aviation Organisation (ICAO) is scheduled to audit India’s air safety preparedness in the second half of this year. The Bureau of Civil Aviation Security (BCAS), the country’s apex aviation safety agency, has been allocated Rs 214.50 crore in the latest Budget. Eric Kendricks Jersey
Kolkata:Staff licence uncertainty may ground airport operations from April
Airline officials are wary of flight disruptions from April 1 if the Bureau of Civil Aviation Security (BCAS) refuses entry passes to staff of ground-handling agencies outsourced by various airlines at the Kolkata and other Indian airports. The current entry passes used by nearly 6 lakh staff of 400-odd ground-handling agencies at Indian airports are valid till March 31, 2017. According to the National Civil Aviation Policy 2016, from April 1, 2017, airlines will only be permitted to hire staff from three registered ground-handling agencies at each airport. Air India Air Transport Services Ltd (AI ATSL) and Bhadra International are the two recognized agencies at Kolkata airport at present, though nearly a dozen other agencies operate here, providing services to Jet Airways, IndiGo, SpiceJet and Go Airways. Other than 200-odd staff of AI ATSL and 350-odd people of Bhadra International, there are several other ground-handling agencies like JP Aviation Services, JSM Enterprise and MK Enterprise to whom airlines have outsourced various jobs including cleaning aircraft, loading and unloading baggage, providing wheelchair assistance and transferring baggage from aircraft ramp to arrival gate and from departure gate to aircraft ramp. Loui Eriksson Authentic Jersey
RGNAU to Launch US-India Aviation Cooperation Programme
As reported by PIB, multiple experts will be participating in the programme by delivering high end lectures on various key topics such as Next Generation Transportation Systems, Airport Planning, Air Traffic Flow Management, Safety and Security and Sustainability in Aviation. In a bid to promulgate knowledge among aviation professionals, the Rajiv Gandhi National Aviation University (RGNAU) in association with US-India Aviation Cooperation Programme has decided to launch its first Executive Development Programme tomorrow, February 2, 2017. As reported by PIB, multiple experts will be participating in the programme by delivering high end lectures on various key topics such as Next Generation Transportation Systems, Airport Planning, Air Traffic Flow Management, Safety and Security and Sustainability in Aviation. Apart from this, the programme will also be attended by several CxO level executives, C-level professionals from the industry, and experts and senior officials from the Regulatory Authorities. It is widely anticipated that such initiatives will not only help the senior professionals, but also keep them in touch with the latest trends in the aviation sector. Shaquil Barrett Authentic Jersey
Will private players look at regional airports now?
State-owned airports will now be allowed to monetise the huge parcel of land that it holds across the country in order to encourage private sector participation in developing these airports. Finance Minister Arun Jaitley in his speech of the Union Budget 2017-18 proposed a change in the Airports Authority of India (AAI) Act allowing the airport operator to use the land bank for commercial purposes. At present, the act allows an airport operator to use land only for aviation-related services. With 128 airports across the country, AAI owns almost 55,000 acres of land. The minister also said that airports in Tier-2 cities will be taken for operation and maintenance in a Public-Private-Partnership (PPP) model. Will the move encourage private players to bid for management contracts of airports in cities like Ahmedabad, Jaipur? According to senior officials in AAI, the two Budget announcements have a history and should be seen in connection. AAI, which functions under the Ministry of Civil Aviation, had applied for relaxation in land usage norms back in 2010 following a request by the country’s private parties. The move was made after AAI announced city-side development of 15 airports, through private participation. Private players said that not allowing commercial development for non-aeronautical activities will make such projects unviable, as many of these airports have very low footfall. “If the government wants private players to participate in the development of airports at regional cities, it is necessary that those players are allowed to monetise from the commercial development of those,” a senior AAI official said. A senior official of major private player which owns airport said that the group will evaluate such opportunities. “As an airport operator we are interested in either fully owning or just operation and maintenance of airports, we will evaluate on a case-by-case basis,” he said. Jimmy Vesey Womens Jersey
Rs 2 lakh crore for development of highways in Madhya Pradesh: Nitin Gadkari
Union Minister for Road Transport Nitin Gadkari today said Rs two lakh crore have been allotted for the development of highways in Madhya Pradesh. The minister also informed that state’s 2021-km roads will be converted into national highways. “The Centre will provide Rs two lakh crore to Madhya Pradesh during a period of next two years,” Gadkari announced while laying the foundation stones for different road projects at Naugaon, a town in Bundelkhand region of Madhya Pradesh. On the demand made by chief minister Shivraj Singh Chouhan, Gadkari announced conversion of 2021-kilometers long seven different roads in the state into national highways. The minister claimed that new roads are being constructed according to international standards and these roads will “not develop potholes for next 200-years.” “The roads being constructed these days will not get damaged or develop potholes for next 200-years,” he said, adding, his ministry was also focussing on development of inland waterways. “We are not only concentrating on road construction work but also focussing on developing 20,000-km of inland waterways in the country. In Madhya Pradesh, the waterways will be developed on Chambal, Narmada rivers,” he added. At the function organised in the campus of a school in Naugaon, Gadkari laid the foundation stones for the widening of 85-km long road from Chhatipahad to Khajuraho costing at Rs 920.46-crore, widening with paved shoulder of 44.70-Km long road from Angor to Chhatarpur costing Rs 178.23-crore and widening of 90-km long road from Sanchi to Sagar worth Rs 287.34-crore. In another function at Beora town under Rajgarh district today, Gadkari also dedicated a newly constructed paved shoulder on 61-km long stretch at two lane road from Rajasthan border to Beora costing Rs 220-crore. In the same function, he also laid the foundation stone for the widening of 141.26-km long road costing Rs 1583.79-crore from Beora to Dewas. DeMarcus Ware Womens Jersey
“Exceptionally Low PLF’s” and Tariffs Posing Challenge To Private Power Producers: Survey 2017
The Economic Survey 2017 tabled in Parliament by Finance Minster Arun Jaitley on Tuesdaynoted that private firms are reeling under cost-overrun pressure and “exceptionally low” plant load factor’s (PLF’s) and tariffs in the short-term market are not likely to rise in the near term.These two factors, the Survey said, were hurting the profitability of private power producers. Higher cash flows are important for any company to service debts and interest obligations. Low profits reduces the pay back capacity of a power producer. “There is scant sign on the horizon that PLFs and tariffs might improve,” the survey said. PLF indicates the performance of a power plant in terms of its generation capacity vis a vis its actual generation. Low PLFs mean that the plant is generating less power than what it is capable of generating. A 100 mw power plant running at 60% PLF means that it is producing 60 mw power as against its actual capacity of 100 mw. As per the survey, PLF — actual electricity production as a share of capacity– tumbled to just 59.6 per cent during April-December 2016 from 62 per cent during the same period last year. Commenting on the falling merchant tariffs, the Survey said, “Meanwhile, merchant tariffs for electricity purchased in the spot market have slid to around Rs 2.5/kwh, far below the breakeven rate of Rs 4/kwh needed for most plants, let alone the Rs 8/kwh needed in some cases.” The Survey said the setbacks have led to cost overruns at the new private power plants of more than 50% in nearly every case, and much more than that in many. “To cover these costs, these companies need to sell all the power they are capable of producing at high tariff rates. But the opposite is happening,” it said. It further said while much electricity is being sold at higher long-term rates under power purchase Agreements (PPAs), in some of these cases even these rates remain below costs and the share of electricity purchased under PPAs is falling, as state electricity boards increasingly rely on the cheap and abundant power available in the spot market. “Note that if there had not been cost overruns, a tariff of Rs 3/kwh would have been sufficient to ensure profitability for most new plants,” the survey said. Zach Ertz Authentic Jersey
Highways allocation stepped up to Rs 64,000 crore: Finance Minister Arun Jaitley
Finance Minister Arun Jaitley today announced enhancing the outlay for National Highways by 11 per cent to Rs 64,000 crore for 2017-18. Presenting the Budget in Parliament today, Jaitley said, “In the road sector, I have stepped up the budget allocation for the National Highways from Rs 57,676 crore in the BE of 2016-17 to Rs 64,000 crore in 2017-18.” “For transport sector, including railways, road and shipping, government provides Rs 2.41 lakh crore,” he added. Jaitley said 2,000 km of coastal connectivity roads have been identified for construction and development. This will facilitate better connectivity of ports and remote villages, he said. “The total length of roads including those under the PMGSY built from 2014-15 to current year is about 1,40,000 km, which is significantly higher than the previous three years,” Jaitley said. He said 133-km roads per day were constructed under the Pradhan Mantri Gram Sadak Yojana (PMGSY) as against 73-km in 2011-14. Darren Woodson Jersey
Has FM Jaitley done enough for the energy sector?
he Union Budget 2017-18 has come as a mixed bag for the energy sector. While Finance Minister Arun Jaitley has retained the government’s focus on rural electrification, renewable energy and a push for the oil and gas industry, there were no major provisions for other crucial areas of thermal power, wind, hydro and nuclear energy. Key announcements: One of the major energy related announcements in today’s budget was the merger of Indian state oil companies to create a global behemoth. Jaitley said the government will create an integrated public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies. The FM also announced a reduction in basic customs duty for liquefied natural gas (LNG) to 2.5 per cent from 5 per cent. He also said two additional strategic crude oil reserves will be created at Chandikhole in Odisha and Bikaner in Rajasthan to ramp up domestic reserves to 15 MT. Significantly, this budget also maintains the last year’s allocation for the oil ministry’s flagship scheme to provide LPG connections to poor households at Rs 2,500 crore. Also, in an indication of things to come, Jaitley identified the ongoing rise in global crude oil prices as one of the key three factors that will be major challenges for the emerging economies, including India. This year’s budget also attempts to maintain focus on rural electrification flowing from Prime Minister Narendra Modi’s vision. Jaitley said India was confident of meeting its 100 per rural electrification target by May 2018 and allocated a sum of Rs 4,814 to its flagship scheme Deen Dayal Upadhyaya Gram Jyoti Yojana. On the front of renewable energy, the FM said the government would add 20,000 Megawatt by taking up the second phase of solar park development in the country. Stressing on the government’s seriousness to focus more on solar energy, he said around 7,000 railway stations would be fed through solar power in the medium term and work has already begun in that respect in 300 stations. Major misses While the government maintained its push for the renewable sector, the lack of any relief provision for private thermal generators struggling with huge investments stuck for want of long term PPAs left a part of the domestic industry disappointed. there was not even a mention on thermal power and coal apart from Jaitley’s announcement on rural electrification. The Economic Survey, released on Jan 31, had pointed out to the difficulties being faced by the private power generation sector due to falling tariffs. The survey said private firms were reeling under cost-overrun pressure and PLFs and tariffs in the short-term market are not likely to rise in the near term. The industry had expected some, if not major, relief in terms of corporate tax and minimum alternate tax (MAT) for the power sector. But there was no such mention in the FM’s budget speech. Thermal power producers had also expected some relief in terms of the Rs 400 per tonne clean energy cess that was imposed last year. Experts also flagged the lack of major provisions for hydro or nuclear energy. The wind power sector had also hoped for a revision of the generation based incentive (GBI) for wind generators which is expiring on 31 March. The oil and gas industry had also demanded a revision of the high crude oil cess — another demand that remained unheeded in this budget. Overall, experts said the budget was a mixed bag for the energy sector. Research and ratings agency ICRA said the budget has several favourable proposals such as creation of two more strategic oil reserves projects, reduction in basic customs duty (BCD) on LNG and creation of an integrated oil PSU major. “The creation of additional strategic oil reserves will boost the energy security of the nation. Reduction in BCD on LNG will make LNG more affordable to end users. This is a credit positive for existing regasification terminal owners such as PLL, GAIL and Shell India,” ICRA said in a statement. Experts also said the idea of creation of an integrated oil major is laudable as it will strengthen the business and financial risk profile of the combined entity but integration issues, especially on the HR side, will e key challenges. Globally, the concept of stated-owned oil majors is a well established one, which confers advantages to the stakeholders. Vince Williams Jersey