IDFC Alternatives buys 3 Punj Lloyd solar projects
The India infrastructure fund of IDFC Alternatives is buying three solar projects in Punjab and Rajasthan from Punj Lloyd Infrastructure as part of the parent’s plans to establish a presence in the renewable energy space through acquisitions — as much as 1,000 megawatts in a year or so. The deal on the three solar projects with a total capacity of 45 megawatts was signed on Saturday evening, said people with knowledge of the matter. IDFC paid about Rs 100 crore to wholly acquire the three projects from the Punj Lloyd unit, they said. Aditya Aggarwal, partner, infrastructure, IDFC Alternatives, confirmed the deal but declined to disclose the price. This is IDFC’s second investment in the renewable energy space, having acquired a 25 MW wind power plant from Jindal Steel & Power Ltd for an undisclosed valuation in October. The company wants to put together a renewable energy portfolio in 12 to 18 months through acquisitions with a capacity of 500 to 1,000 MW, said people with knowledge of the matter. It envisages assets with capacity of 250 MW in six months based on solar, wind and hydro energy. IDFC, which plans to float a platform to hold its renewable energy assets, is creating an in-house team to manage them, said some of those cited above. This will include the recruitment of a CEO and CFO. Experts said the renewable energy sector is in consolidation mode. In June, Tata Power agreed to acquire Welspun Enterprise’s renewable energy business for an enterprise value of around $ 1.4 billion. Going ahead, many existing players in the renewable energy space will give way to newer investors, including private equity firms, they said. Theo Riddick Womens Jersey
Fewer power tariff categories likely in Andhra
To discuss ways and means to simplify power tariff structure, the Andhra Pradesh electricity regulatory commission (APERC) will hold a joint meeting of the state advisory committee (SAC) and the state coordination forum (SCF). The meeting will be held in Tirupati on Wednesday. In a press release on Sunday, the APERC said the meeting will discuss ways to reduce the number of tariff categories for the benefit of around 1.5 crore electricity consumers in the state. “We are holding the meeting with a view to protecting the interests of power consumers and developing the power sector by ensuring financial stability of power utilities,” said chairman of APERC justice Bhavani Prasad. The joint meeting is being convened for the first time to facilitate an elaborate discussion on issues pertaining to power sector, the press release added. Laremy Tunsil Womens Jersey
Pradhan asks states to help bring petro products under GST
Oil Minister Dharmendra Pradhan today nudged the states to agree on bringing all petroleum products under the Goods and Services Tax (GST) regime. Speaking at the Global Investors Meet here, he said petroleum is currently under ‘state list’ for the the purpose of taxation under GST. “GST Council will decide on this (taxation of petroleum products). On behalf of the industry, I would request the states to allow petroleum products to be brought under GST taxation,” he said. As per the GST Constitutional Amendment Bill, petroleum products like LPG, kerosene and naptha would attract GST. However, other products — crude oil, natural gas, petrol, diesel, high speed diesel and aviation turbine fuel — have been excluded from GST for initial years. Hence, these products will continue to be taxed in the hands of the states as they are being taxed at present. The GST Council, which consist of Union Finance Minister and state counterparts, will decide on the date of inclusion of these products in the GST basket and rates thereon. Pradhan also asked Madhya Pradesh Chief Minister Shivraj Singh Chouhan to support bringing all petroleum products under the Goods and Services Tax (GST) regime. “In the last 3-4 years, there is a healthy growth of petroleum products in Madhya Pradesh. I will request the Chief Minister that he should agree to (petro items coming under) GST. There would be no loss to the state on account of taxation of petroleum products,” he said. With two different kinds of taxation structure, in the new regime the oil and gas industry would have to comply with both the current tax regime as well as GST. According to experts, GST would have a negative impact on the oil and gas industry due to compliance with dual taxation regime and non-creditable tax costs. Pradhan said petrol consumption in rural areas is growing by 10 per cent every year. On the occasion, there were total seven MOUs signed today for setting up solar power plants and oil marketing and infrastructure facility in the state. Neyveli Lignite Corp (NLC) and Madhya Pradesh New and Renewable Energy Department (MPNRED) signed an MoU to set up 1,000 MW solar power plant, followed by an agreement between IOC, OIL India and Madhya Pradesh Urja Vikas Nigam Ltd (MPUVN) for 500 MW solar facility, NTPC and MPNRED for 500 MW solar power plant, PTC and MPNRED for 500 MW facility and NHDC Ltd and MPNRED for 140 MW solar project. Besides five MoUs on solar projects, there were two agreements signed for oil marketing and infrastructure facilities. One MoU was signed between BPCL and MPNRED for setting up an ethanol plant and the other by IOC and MP Trade and Investment Facilitation Corporation (TRIFAC) for developing oil marketing infrastructure in the state. State-run companies like NTPC, Neyveli Lignite will work towards making the state a solar power hub. Pradhan said there are 1.65 lakh houses in the state and 56 lakh family had LPG connection till 2014. “In the last two years, we have added 30 lakh more, and in the coming two years in MP, 50 lakh more LPG connections will come,” he said. Keith Tkachuk Jersey
Soon, a Policy for Contract Extension of Oil & Gas Blocks
The government is framing a policy that will guide Cairn India’s request for renewal of contract to operate its prolific Barmer oil and gas block, as well as 27 other energy blocks, lifting uncertainty around contract extensions that forced a legal tussle between the Vedanta group firm and the government. Cairn India, controlled by billionaire Anil Agarwal, is seeking to extend the contract to operate the oil and gas block in Barmer, Rajasthan, by 10 years after the initial 20year agreement runs out in 2020. Cairn, which controls about a quarter of the country’s crude output, has been urging the court for several months now to force a deadline on the government for deciding on the issue. An oil ministry official said that instead of taking a company-specific decision for Cairn India, the government has decided to frame a policy that will guide the contract extension in 28 blocks, including that of Barmer. This group of 28 blocks, the official said, is referred to as the Pre-NELP `exploration’ blocks, or the blocks that were auctioned before the NELP , or New Exploration Licensing Policy , came into being. In March, the cabinet had approved a renewal policy for Pre-NELP `discovered’ fields that also applied to another set of 28 smalland medium-sized discovered fields. Under this policy, the government’s share of profit petroleum during the extended period of contract shall be 10% higher than the share during the initial period. During the extension, the royalty and cess shall be payable at the prevailing rates by all the contractors in proportion to their participating interest. The policy also outlined guidelines on pre-requisites for grant of ex tension, cri terion for evaluation of a request, a time-frame for consideration of a request, duration of extension, seat of arbitration, etc. The oil mini stry official, who did not want to be named, did not say if the new policy being considered for the Pre-NELP exploration blocks will be a copy of the policy announced in March. He said the terms and conditions are still being contemplated. The terms for extension are at the heart of the delay with both the government and the contractor, Cairn India, trying to extract a larger share of profit for itself in the new contract. Kenneth Dixon Jersey
Pradhan launches Ujjwala LPG scheme in Amethi
Union minister of state for petroleum Dharmendra Pradhan on Saturday attacked Amethi MP Rahul Gandhi for turning down the government’s formal invite to attend the inauguration of the Rajiv Gandhi Petroleum Technology Institute (RGPTI). Mocking Rahul’s absence at the inauguration of the RGPTI permanent campus citing his “busy schedule”, Pradhan said it was not unnatural that a “big man” like Rahul was unable to find time for his constituency. Congratulating the RGPTI management for naming the auditorium where the function was held after Swami Vivekananda, Pradhan also proposed, on the basis of a voice vote, that a statue of Vivekananda be installed there and be unveiled by Amethi MP Rahul Gandhi, this time “on a date of his convenience.” Launching the NDA government’s ambitious Ujjawala scheme, the minister gave away 1,000 free gas connections to Amethi’s poor. On his arrival in Amethi, a Congress-BJP poster war was also on display between Fursatganj and RGPTI, with both parties claiming credit for the permanent campus. “In eight years since the enactment of the law for RGPTI, the UPA government gave Rs 129 crore, while the Modi-led NDA government doled out Rs 302 crore,” said Pradhan. On Friday, the Congress vice-president had tweeted his letter to Pradhan in which he had said the UPA government had first proposed the idea of setting up RGPTI. Referring to the decision to retain the name of the institute after late ex-prime minister Rajiv Gandhi, Pradhan said a debate should be conducted on why important institutions are named after family members. “What about Netaji Subhash Chandra Bose, Sardar Vallabhbhai Patel, Swami Vivekananda, Lal Bahadur Shastri and many others who contributed to the freedom struggle?” Pradhan asked. Pradhan also promised a skill centre on the campus to ensure 70% jobs to Amethi’s people. Captain Munnerlyn Authentic Jersey
Petronet seeks cut in Gorgon LNG price
Petronet LNG Ltd, India’s largest liquefied natural gas importer, is seeking at least 10 per cent cut in price of LNG it plans to buy from Australia’s Gorgon project. Petronet LNG, a private firm whose chairman is the oil secretary, had in August 2009 signed a 20-year deal to buy 1.44 million tonnes per annum of liquefied natural gas (LNG) at a price equivalent to 14.5 per cent of the prevailing oil rates. The indexation agreed was one of the highest in the world. “The world has changed since then and LNG deals are being done at much lower indexation,” an official said. Petronet had late last year renegotiated price of the long-term deal to import 7.5 million tonnes per year of LNG from Qatar, helping save Rs 8,000 crore. At that time it had also signed a contract to buy an additional 1 million tonne per annum till 2028. “That deal for an additional 1 million tonne was at 13.05 per cent of the ruling Brent price. So naturally, the expectation is that the Gorgon should lower the indexation to a minimum 13 per cent,” the official said. Petronet has written to Exxon Mobil, the seller of Gorgon LNG, for reworking the price. “Negotiations are on,” he said. LNG in spot or current market is available at USD 5-6 per million British thermal unit where as Gorgon LNG at current formula will cost USD 7.25 per mmBtu at an oil price of USD 50 per barrel. After adding 5 per cent customs duty, shipping cost and that of converting liquid gas back into its gaseous state, the landed price of the Australian gas will be close to USD 9.5 at the Kochi port where it is supposed to be delivered. State-owned gas utility GAIL India, one of the four PSU promoters of Petronet, had way back in 2013 sought review of the Gorgon LNG price formula. Its the then Director (marketing) Prabhat Singh, who now is the Managing Director and CEO of Petronet LNG, had in June 2013 written a letter seeking reduction in price of Gorgon LNG. Sources said the case of renegotiating the Gorgon deal has strengthened after Petronet last year got RasGas of Qatar to lower the rate for 7.5 million tons per annum LNG it supplies under a 25-year long term contract since 2004. The price of imported LNG under this agreement had been linked to crude oil (Japanese Customs Cleared Crude or JCC) and had a concept of floor and ceiling indexed to last 5-year average. The rate thus arrived was higher than spot LNG. Petronet sought renegotiation of the deal and RasGas agreed to modify the pricing formula to link it with last 3- month average rate of Brent crude oil, they said. GAIL, Indian Oil, Bharat Petroleum and Oil and Natural Gas Corp (ONGC) hold 12.5 per cent each in Petronet. Petronet was to get Gorgon LNG by the end of 2015, but supplies have been deferred to 2017. Kevin Hayes Womens Jersey
Modi’s Urjaa Ganga to bring cooking gas flow in Varanasi
Prime Minister Narendra Modi will today visit his parliamentary constituency Varanasi and lay the foundation stone for the ‘Urja Ganga’ project, aimed at providing piped natural gas (PNG) to all the households in the city. He will also lay the foundation stone for the doubling of Varanasi-Allahabad rail track and electrification of the Varanasi-Allahabad rail section. Modi will also dedicate to the nation a dual rail engine that runs on both electricity as well as diesel. The special engine has been manufactured in Diesel Locomotives Works (DLW), Varanasi. As part of the Urjaa Ganga project, a 1,500 Kilometer long pipeline will also be set up to ramp up availability of cooking gas for households in the region at an estimated cost of Rs 51,000 crore. Ahead of the PM’s visit, BJP workers in the region had launched a cleanliness drive in the city. Among those overseeing the preparedness of the event for Modi’s visit are Petroleum Minister Dharmendra Pradhan, Minister of State for Railways Manoj Sinha and Minister of State for Human Resource and Development Mahendra Nath Pandey. As part of the programme, Modi is expected to launch a stamp dedicated to the city of Varanasi and also lay the foundation for a road project. Officials informed Uttar Pradesh Governor Ram Naik and Chief Minister Akhilesh Yadav have been invited for the foundation laying ceremony of ‘Urja Ganga’ project. The PM will fly from Mahoba by a special Indian Army helicopter which will land at the Dereka helipad around 3:55 PM. From there, he is expected to head to the main venue at Dereka Inter college ground to lay the foundation stone for the various projects. Later, he will leave for Delhi by a special aircraft from the Lal Bahadur Shastri International airport at Babatpur. Vernon Hargreaves III Jersey
Singapore awards two new LNG import licences to meet future demand
Pavilion Gas and Shell Eastern Petroleum have been appointed as importers of liquefied natural gas (LNG) into Singapore, the city-state’s trade minister said on Monday. “These two companies were selected on the basis of the reliability, flexibility and competitve-pricing of their LNG supplies,” S. Iswaran, Singapore’s minister for trade and industry, said at the opening of Singapore’s International Energy Week (SIEW). The two firms beat Sembcorp Industries and BG Singapore Gas Marketing for the contracts to supply Singapore with 1 million tonnes per annum (mtpa) of LNG. The exclusive franchises awarded on Monday will last for three years or when the firms reach imports of 1 mtpa, depending on which comes first. The Energy Market Authority’s (EMA) first called for proposals in June 2014. Eric Berry Authentic Jersey
Connectivity scheme will turn India into third largest aviation market: PM Modi
Accusing previous governments of having “no vision” for aviation, Prime Minister Narendra Modi, on Saturday, said his government is working in a “mission mode” for expansion of the sector and has put in place the country’s first integrated policy to tap the potential of small cities. He was speaking after dedicating the new integrated terminal building of the airport here, which is now the second green airport of the country after Kochi. PM Modi noted that India in the near future would probably become the third country in the world in terms of airport activity benchmarks with more middle-class families aspiring to travel by air. The Prime Minister said the country is very huge and “if you think only 80 to 100 airports not enough, then we are trying to create hurdles in the country’s growth”. He said the the country’s development can take new dimensions if the tier-2 and tier-3 cities are bought on the aviation map and noted that government was making efforts to revive the large number of non-functional airstrips and airports in the country. “That is why to promote this, the government brought out a new regional connectivity scheme under which people can travel with airfares of only Rs 2,500 for up to 500 kms distance,” he said. Attacking the previous governments, he said, “Earlier airports were set up, planes would fly but the country did not have an aviation policy. “How to take the sector forward in next five or ten years and take care of its and passengers’ needs, what should be done for common people, there was no vision in place earlier. It was just moving,” he said. “After the new NDA government came to power, for the first time since independence it formulated a new aviation policy for the country… we are working in a mission mode for expansion,” he said. The PM said the new aviation policy will take care of the consumers’ needs and the growth of the sector. Ray Lewis Jersey
Thanjavur could soon be on the air map
Thanjavur airport could soon be on the air map under the Regional Air Connectivity Scheme which the Government unveiled on Friday. RN Choubey, Secretary, Civil Aviation, said Thanjavur airport is part of the eligible list of airports which will be covered under the RCS scheme. “I had a discussion with the Chief of Air Staff on certain matters, including Thanjavur where we needed certain land to be exchanged. There is considerable cooperation and support which is forthcoming from the IAF for making commercial flying possible from Thanjavur. I expect that to happen along with certain unused airports in Tamil Nadu,” Choubey said. Chennai airport On the issue of glass falling from the ceiling at Chennai airport, Choubey said a study through IIT Chennai had confirmed that the glass panes which are falling, as a percentage of total glass that has been used, were not beyond what is the global average. “It is just that the number of glass panes which have been used is more. Even then we are taking all precautions,” the Secretary said. Study commissioned Meanwhile, the Government has also commissioned an internationally well-known agency, NATS of UK, to look at two aspects — designing of the air space bubble over Chennai and Delhi and ways to improve air navigational services which will be on par with the best in the world at these two airports as they have air space management issues. “They have assured to give us the report in 3-4 months’ time. Based on NATs’ report we will also be able to create more slots at Mumbai airport,” Choubey said. Phillip Lindsay Authentic Jersey