NHAI terminates Samrala Chowk, Kishangarh-Udaipur-Ahmedabad projects
With lenders doubtful over the completion of Samrala Chowk and Kishangarh-Udaipur-Ahmedabad (KUA) Package VI projects, the National Highways Authority of India (NHAI) has terminated the ventures, sources confirmed to FE. Both projects were to be built through the hybrid annuity model (HAM). Raghav Chandra, chairman, NHAI, told FE that both the projects have been terminated. Chandra, however, denied that banks were uncomfortable lending to the projects. “KUA Package VI was annulled and Samrala Chowk was rebid as the bids were not found to be proper. We have received two bids for Samrala Chowk now,” the NHAI chairman said declining to give further details. Samrala Chowk-Ludhiana in Punjab and Kishangarh-Udaipur-Ahmedabad (Package VI) in Gujarat, won by Gawar Infrastructure and Overseas Infrastructure (Alliance) (OIA), respectively, were bid out between April and June 2016. However, both the projects missed the deadline of 150 days within which the financial closure must be achieved, sources said. Gawar bagged the Samrala Chowk-Ludhiana project in mid-April at a bid amount of R1,049 crore, 23% higher than the NHAI bid of nearly R853 crore, according to a report from Jefferies. Details of KUA (Package VI) which was bagged by OIA around July this year could not be ascertained. Overseas Infrastructure did not respond to the email sent by FE seeking responses over the termination of the project till the time of going to the press. Repeated calls made to Gawar remained unanswered. Industry watchers say lenders are being choosy when it comes to backing the contractors bidding for HAM projects. Of the 30-odd road projects bid out so far, only about 10 projects are understood to have achieved financial closure. “Banks are following a stringent process to assess HAM projects. Only contractors with an execution track record and strong balance sheets have managed to get loans, for others it’s a challenge,” said a top executive of an infrastructure firm which managed to access bank funds for one of its HAM projects. Banks have suggested to the ministry of road transport and highways (MoRTH) that the compensation or termination charges, in the event of the concessionaire’s inability to complete a project, should be 100% of the debt due. “The entire loan amount or most of it would have been drawn down, except perhaps for a small sum,” a banker explained. Currently, the rules for HAM projects stipulate a far lower level of compensation to lenders which is worrisome for them. Lenders also want NHAI to not insist on a guarantee for extending an advance in the early stages of construction. Among the projects that were bid out in March and April, MEP has achieved financial closure for two projects with four more under evaluation. Two projects awarded to MBL are also being evaluated as is the Delhi-Meerut Expressway, Package III, awarded in December 2015. Sadbhav has also achieved financial closure for two projects. However, financial closure of the project bagged by Eagle Infra in April is taking longer than expected. Forrest Lamp Authentic Jersey
Demonetisation to hurt toll-road operators in short term
An expected decline in road traffic and the exemption of road tolls following the withdrawal of high-value banknotes may pose short-term cash flow concerns for toll road operators, companies and analysts said. While the government plans to compensate these companies for their toll loss, there would likely be short-term pain as traffic plunges on account of low economic activity, they said. Demonetisation could drag down 2017-18 gross domestic product (GDP) growth to 5.8%, an Ambit Capital report on Friday said. The exemption on toll collection could result in cash flow constraints for road projects for interest payments at the end of the month, said K. Ramchand, managing director at IL&FS Transportation Networks Ltd (ITNL), which owns and operates multiple toll-based projects and collects an average of Rs1.7 crore in tolls every day. The cash flow impact would be serious wherever the revenue of road projects is linked to the repayment of loans, said Jayant Mhaiskar, managing director of MEP Infra Developers Ltd. “As far as the compensation is concerned, the concession agreements are fairly well-scripted or well-documented in terms of how the compensation is given,” he said. MEP Infra operates 30 toll plazas on national highways and has an average daily toll collection of about Rs4.5-5 crore. Mhaiskar said it is yet to be seen how traffic growth will be impacted. The government on Thursday extended the exemption on toll collection to all vehicles across national highways till 24 November to ensure smooth flow of traffic after withdrawing Rs500 and Rs1,000 notes on the evening of 8 November. To be sure, executives at least three road companies that Mint spoke said they have received some form of communication from the ministry of road transport and highways and the National Highways Authority of India (NHAI) assuring compensation. Under the concession agreement for road projects, companies need to apply for compensation against such losses under the change in law provision. The government could also compensate by extending the concession by a corresponding number of days. In case of cash compensation, anything less than 100% will be a negative for toll-based road projects, said Ashish Agarwal, director (infrastructure) at Equirus Capital Pvt. Ltd, an investment bank. “It is getting more clear that trade is going to be lower in the next quarter and traffic is in direct correlation to trade. Traffic in the third quarter would definitely get impacted,” he said. Road projects had seen a traffic growth of about 6% in fiscal 2016 and an equivalent growth in the first half of the current fiscal year, but this is likely to slow down in the second half, said Shubham Jain, vice-president at ratings agency Icra Ltd. Overall traffic growth at the end of the current fiscal may be just about 3%, he said. “More than the amount, as a rating agency, we are more concerned about the actual timing of the release of payments. Because toll road companies are operating at very thin cushion in terms of debt servicing and these companies have to make interest payments on a monthly basis, and debt repayments on monthly or quarterly basis,” Jain said. Even beyond this exemption period, overall toll revenue in this fiscal year may be lower than what the companies would have expected before 8 November, he said. Last week, Icra said in a report that loss of toll revenue for around 115 NHAI toll projects operated by private sector firms could be Rs460 crore for the 10-day period between 9 and 18 November. Other industry estimates suggest a toll revenue loss of Rs55 crore per day for NHAI’s projects. “ICRA expects that the NHAI may opt for cash compensation, instead of extension of concession, considering the developers’ financial stress. Nevertheless, there is significant uncertainty regarding the quantum, mode and timing of such compensations,” the Icra report last week said. The government could reimburse companies for the loss of toll income calculated either on the basis of their October average or the average of first eight days of November, Ramchand of ITNL said. “The government could pay 75% immediately and the rest over time, but there is no formal decision on this,” he said. “NHAI has communicated that it will pay an interim amount to toll operators and will also compensate the remaining. It is not yet decided whether NHAI will compensate on the basis of October’s toll income or an average for first week of November,” said Vasistha Patel, executive director at Sadbhav Infrastructure Projects Ltd. NHAI chairman Raghav Chandra did not respond to an email sent on Friday seeking comment. India has the world’s second largest road network of about 4.8 million kilometres but national and state highways constitute a small percentage of that network. Josh Gorges Womens Jersey
Two years on, LED project to replace lamps yet to take shape in Maharashtra
It seems that municipal corporation’s plan to replace 24,000-odd sodium vapour lamps with LED lights will be delayed, as the civic administration is yet to finalise a consultant to draft the tender documents. The idea to install LED lights across the city was floated by the Kolhapur Municipal Corporation (KMC) two years ago. The tendering process of the work was stopped after the standing committee raised some issue. A few months ago, the KMC invited firms to bid for the project. Some of the firms had promised saving a significant amount of electricity from the existing consumption. The total cost of the project is estimated at Rs 16 crore. The KMC will undertake the project under the build operate and transfer (BOT) basis. Civic officials claimed that a government-run firm has been finalised as the consultant, but the issue is yet to be put up before the standing committee for final approval. Amit Dalvi, head of the KMC’s electricity department, said, “The proposal will be put before the standing committee soon. The consultant will survey the number of streetlights in the city, undertake energy auditing and finalise the tender documents. We expect the work to start at the earliest. The financial model for the project will be decided by the committee and the general body after the consultant comes up with the report of energy audit and makes suggestions for effective execution.” According to officials, the process of survey and energy auditing is time-consuming and may take months. The energy audit will be carried out to estimate the consumption of electricity by the existing lamps, the amount of power and the expenses to be saved after the installation of LED lights. While floating the idea, the KMC had decided to give yearly grant equal to the expenses on electricity bills to the firm. The civic body has studied similar projects undertaken in other cities across the country. “Civic officials have found that automatic functioning of LED lights can be possible, besides cutting down on the staff required for maintaining streetlights because of the advanced technology. All aspects are being studied. Maximum efforts will be taken to save expenses,” Dalvi said. “We have been trying to by all means to complete the project. We are facing a major cash crunch situation and we are studying all aspects to make the situation better for motorists and commuters across the district,” he added. Kolten Wong Womens Jersey
Karnataka scouts for technology that will re-purpose thermal plant residue
Raichur Thermal Power Station (RTPS) may be staring at a major environmental crisis. Fly ash, the easily airborne byproduct of coal combustion, produced at the state’s largest thermal power plant was until now being carefully stockpiled in its backyard. But running out of space, the energy department is now looking to import technology from Germany to clear up the stock, scientifically. The department officials, led by energy minister DK Shivakumar, have been visiting various fly ash sites across Germany and other European countries. Kumar Naik, managing director of Karnataka Power Corporation Ltd (KPCL), which owns thermal units across the state, is also accompanying the minister and holding talks with European agencies over methods of disposal of accumulated fly ash. The idea is to adopt a feasible scientific method to cope with similar challenges at new thermal plants in Ballari and Raichur. Sources in KPCL told Mirror that RTPS currently dumps its fly ash in a 1,000-acre site. “There are two plots of 500 acres each were we have been dumping the fly ash. One plot is filled to the brim while the other almost half full. It is not possible to acquire any more land for dumping because of the costs involved. Besides, people are going to protest, if we do. So, a scientific way of disposal may be the only way out,” said the senior electrical engineer. HEALTH HAZARD The nearly weightless fly ash can cause severe air pollution in the vicinity and so officials have been using a lot of water to dampen the ash and transport it to the dumping site. “Mere ash cannot be transported anywhere as it gets airborne easily. Also, there are legal bindings on safe disposal and transport of fly ash. Hence, it is carried in the form of slurry of bottom ash and deposited at the site. What we are looking at now is a technology to process that waste instead of just transporting and dump it at a site. It’ll save a huge quantity of water too,” energy minister Shivakumar told Mirror from Germany. According to Shivakumar, the department’s delegation last week visited Germany’s major fly ash treatment and deposition plant at Leipzig and was told about the latest technology through which ash can be processed scientifically. THE GERMAN WAY “The site is currently managed by MUEG Company which completely takes care of collection of ash to final processing at the original site itself. Using their patented technology, they have been successfully treating the ash before it gets dumped at a designated place. The method is ecofriendly and not water-intensive. Just by adding a chemical agent, the ash is converted into a ready concrete. It does not require any other external agent for further strengthening. Due to its molten state, it can easily be transported anywhere or used in application. They have developed three to four different methods of treating fly ash and depending on the requirement we can adopt any of them,” Shivakumar explained. The company has been treating ash at its plants in Lochau and Peres. “The treated ash has application in several industries as it blends with the general climatic conditions without causing any ecological imbalance. Be it filter ash, wet ash or slurry, they treat it effectively. Making use of the treated fly ash, they have been filling cavities in railway and water supply tunnels; and they’ve used it during asphalting of roads. In fact, they have used the fly ash to construct the A72 motorway in Germany. Besides, the bunds of several lakes have been built using fly ash materials. The internal layer of almost all water canals was built using processed fly ash,” a senior officer accompanying the minister said. HIGH UTILISATION Shivakumar revealed that currently the utilisation of fly ash is only about 40 to 45 per cent. “What we do now is mix it with other agents such as cement or other substances to make it into bricks. But by adopting this German technology, we not only require huge amounts of water to treat the ash. We should also be able to clear up the pile in less than a few years. As per the Supreme Court order, fly ash has to be utilised 100 per cent and this new technology allows us to comply with that order,” he said. Evan Boehm Jersey
CHHATTISGARH AIMS 1/3RD OF INDIA’S POWER GENERATION TARGET IN 12TH PLAN
Chhattisgarh is aiming to achieve one-third of the national power generation target of 90,000 MW through commissioning of various projects during the 12th five-year Plan, officials informed. Chhattisgarh will procure additional power from renewable energy sources to the tune of approximately 700 MW by FY 2018, officials informed. With this the average power purchase cost for Chhattisgarh State Power Distribution Company Ltd (CSPDCL) based on the above power availability will increase from 2.58 Rs/kWh in FY 2015-16 to 3.12 Rs/kWh in FY 2018, they informed. The rates have been derived based on cost of power at existing rates and considering no escalation in power purchase cost since it is passing through for the distribution company. Notably, Chhattisgarh Renewable Energy Development Agency (CREDA) has invested ` 400 crores during last 11 years in developing infrastructure for solar power generation which had resulted in 40 MW of electricity being generated from non conventional energy sources. The agency will be installing a total of 10,000 submersible and surface solar photo voltaic (SPV) irrigation pumps in farm lands soon across the State. The SPV Pumps shall be provided with lightening and over voltage protection. The principal aim in this protection is to reduce the over voltage to a tolerable value before it reaches the PV or other sub-systems components. The source of over voltage can be lightening or any other atmospheric disturbance, officials informed. Notably, the State government has already commenced preparation for setting up 51,000 solar powered irrigation pumps in a span of two-and-half-years in the State. The government has set the target of setting up 11,000 solar pumps in the current financial year till March 2017 and the rest during the next two years. Notably, Chhattisgarh government is also planning to add 2640 MW of additional renewable energy capacity by financial year 2018-19, officials informed. The State currently has total renewable energy potential of 4,500 MW which includes solar (grid connected and roof top), wind biomass and small hydro. The State has also planned to install solar powered pump sets for agriculture consumers which will benefit 16,000 consumers. It may be recalled that there are significantly more number of villages which are to be electrified in Chhattisgarh using the off-grid (solar) mode than the grid-based (conventional power supply) mode. As per the latest data available with the Union Ministry of Power, a total of 543 villages have to be electrified under ‘off-grid’ mode compared to 101 through the conventional power supply grid as on May 31, 2016. The State will soon also launch a ‘Solar Community Irrigation Project’ for drawing water extracted using solar pumps for supplying to the agricultural land of farmers across the State. The pipeline extension project to be executed by CREDA would be undertaken shortly, officials informed. Chhattisgarh is planning to add 2640 MW of additional renewable energy capacity by financial year 2018-19, officials informed. The State currently has total renewable energy potential of 4,500 MW which includes solar (grid connected and roof top), wind biomass and small hydro. The State has also planned to install solar powered pump sets for agriculture consumers which will benefit 16,000 consumers. It may be recalled that there are significantly more number of villages which are to be electrified in Chhattisgarh using the off-grid (solar) mode than the grid-based (conventional power supply) mode. As per the latest data available with the Union Ministry of Power, a total of 543 villages have to be electrified under ‘off-grid’ mode compared to 101 through the conventional power supply grid as on May 31, 2016. The State will soon also launch a ‘Solar Community Irrigation Project’ for drawing water extracted using solar pumps for supplying to the agricultural land of farmers across the State. Jamar Taylor Womens Jersey
Country’s first environment-friendly Metro depot constructed in Lucknow
The country’s first environment-friendly Metro workshop and maintenance depot has been constructed at Transportnagar, said Lucknow Metro Railway Corporation (LMRC) officials on Saturday. LMRC general manager (operations) Sushil Kumar said, “For the first time, no vehicles will be allowed outside the premises of the Metro depot and diesel, and petrol works will be prohibited inside.” He further said all employees would have to come on a bicycle and electrical appliances will be battery or electrically operated. He also said solar panels would be installed on the roof of the depot, which would supply electricity to all eight metro stations. Speaking about the LMRC’s workshop, officials said the workshop will be able to maintain around 42 trains, with six coaches each. The depot will repair and test Metro coaches. Officials also said the depot was first of its kind to have been equipped with a hazard-based safety system, wherein different kinds of hazards are identified before installing the depot. Jamie McGinn Womens Jersey
Slow Progress in Commissioning Pvt Sector Hydro Power Projects
Indicating slow progress in commissioning of hydro power projects by the private sector, only 3,269 megawatts of capacity has been operationalised so far out of the overall plans for 38,039 MW across the country. As many as 120 hydro projects with a total capacity of 38,039 MW were conceived by the private sector but unfortunately 3,269 MW could be made operational, a senior official said, quoting data of the Central Electricity Authority (CEA). The official further said these 20 operational hydro power projects with generation capacity of 3,269 MW include even small hydro power units of above 3 MW. As per the CEA data, 19 private sector hydro power projects having a total capacity of 4,555 MW are under construction while there are 22 projects with 15,058 MW capacity whose detail project reports (DPR) were approved by the authority. At present, the CEA is examining DPR of six hydro power projects having capacity of 3,317 MW while reports of 16 such projects of 5,338 MW capacity were returned to private players for resubmission, the official said. The official also said that private players are still preparing DPR of 31 hydro power projects having a total capacity of 6,502 MW. Earlier in the week, elaborating on reasons for delay in implementation of hydro power projects, Power Minister Piyush Goyal told the Lok Sabha, “The reasons for delay in respect of hydro projects under construction in private sector mainly include law and order issues, rehabilitation and resettlement, natural calamities, geological surprises, environmental clearances, financial constraints, etc.” The minister said that against identified capacity of 148.70 GW of large hydro power projects (above 25 MW capacity), 38.32 GW capacity is under operation while projects of 12.01 GW capacity are under construction. Construction of 94.89 GW of hydro power generation capacity is yet to be taken up, the minister had said. Shane Ray Jersey
Demonetisation: Power distribution companies’ coffers swell with old currency
It is a win-win for the electricity department here because of the demonetisation. Since the defunct 500- and 1,000-rupee notes are acceptable until November 24, the power discom is receiving the maximum dues from defaulters. The officials claimed that the number of consumers who have cleared their dues has increased by 20% in the past one week. “There are 40,838 defaulters in the Ghaziabad zone and during the ongoing demonetisation exercise, we are exhorting them to pay off their dues in old currency notes,” said S K Gupta, chief engineer, PVVNL. “The offer is valid until November 24 and in four days we hope to draw in as many defaulters as possible,”Gupta said. “The power dues amount to Rs 509 crore and if these consumers miss out on this we will issue pink slips to them, which will result in automatic power disconnection,” he said. The Ghaziabad Municipal Corporation (GMC), meanwhile, has announced the acceptance of defunct currency for paying house tax. “In keeping with a government order, the GMC will accept old currency notes from house tax payers till November 22 and we are requesting residents to make good use of the opportunity,” said D K Sinha, Ghaziabad additional municipal commissioner. “Going by data available with us, we have collected house tax to the tune of Rs 2.5 crore in old currency notes in the past four days and we hope more people will avail themselves of this opportunity,” Sinha said. As for point-of-sale (POS) swipe facility at petrol pumps in Ghaziabad, the petrol pump officials are at a loss. They are neither aware of all the relevant details on the government’s announcement regarding the POS scheme nor are the new currency notes available with them. “People are already throinging our petrol pumps to enquire about this scheme and we are turning them away politely,” said N K Garg, who owns a petrol pump near Meerut Mor. “The biggest problem is scarcity of cash and no arrangements have been made so far for implementation of the scheme ” he added.For a person wanting daily amenities, this note is redundant. Introduction of lower denomination notes would have addressed the residents’ needs Darnell Nurse Authentic Jersey
Surcharge waiver on power bills to recover Rs4,000cr dues
The state government and the power discom on Saturday announced a surcharge waiver programme for certain domestic and non-domestic consumers, especially in rural areas, to lure them into paying back dues worth Rs 4,000 crore. The two categories for which the waiver has been announced include domestic and the non-domestic consumers using power up to 2kW in rural areas (connected or disconnected), and domestic consumers up to 2kW in the urban areas (disconnected cases only). “The total amount of dues for the two categories eligible under the scheme is Rs 4,000cr,” said Arun K Verma, MD, Dakshin Haryana Bijli Vitran Nigam Limited. The policy will be applicable from November 20 and will cover bills September 30. The surcharge will be frozen as on that date and the scheme is valid till December 31. Under the policy, the consumer can either pay a lump sum amount or six bi-monthly instalments along with the next six months’ utility bills. In case of lump sum payment , an additional rebate of 5% on the principal amount will be given to the consumers. In case of instalments, 40% surcharge will be waived off after one year of payment on six bills, and 30% of the frozen surcharge will be waived off at the end of the second year. The remaining surcharge will be waived off at the end of the third year. In case a consumer defaults while repayment in the first year, 100% surcharge will be revived while 60% and 30% surcharges will be revived if the consumer defaults in the second and the third year, respectively. Connection will be restored after the first payment. Riley Reiff Authentic Jersey
Bangladesh to import only cleaner gasoil from 2017 – energy officials
Bangladesh will lower the sulphur content of all its gasoil imports from January next year, in line with a global trend towards cleaner fuel, two energy officials said on Sunday. The country will only import gasoil with 500 parts-per-million (ppm) sulphur from 2017 and will no longer buy the 2,500 ppm grade, two senior officials of the Bangladesh Petroleum Corp (BPC) told Reuters. The state-owned company, the country’s sole importer of gasoil, has already started importing cleaner gasoil from this year. This year it hasn’t purchased gasoil with 2,500 ppm from any oil companies other than Kuwait Petroleum Corp (KPC), the biggest supplier of gasoil to BPC with around 1 million tonnes a year. “From next year, we will not import gasoil with 2,500 ppm anymore from any oil companies. We are importing gasoil with 500 ppm only,” said one of the officials, who asked not to be named as they are not authorised to talk to media. BPC buys oil products from a number of oil companies through term deals while it has also started buying a portion through tenders as part of efforts to buy at cheaper rates. Bangladesh imports around 3.0-3.3 million tonnes of gasoil a year to meet demand, while the country’s sole Eastern Refinery produces around 350,000 tonnes, BPC officials said. A shortfall in supplies of natural gas has forced the south Asian country to burn oil, a costlier option, to generate electricity.