Rajasthan and Haryana will outshine other states as far UDAY is concerned: Piyush Goyal, Power Minister
n a conversation with ET Now, Piyush Goyal, Power Minister, says he is very satisfied with progress of UDAY. Edited excerpts ET Now: Are you satisfied with how the UDAY bonds are doing? Piyush Goyal: This is now about six months of implementation of UDAY bonds in Bihar, Uttar Pradesh, Rajasthan and there were truly the ones which are making the highest losses. Personally, I am very, very satisfied with the progress of UDAY. In UDAY. we are not giving out money or doles or subsidies. We have looked at a self regulation mechanism to permanently solve this problem and that can only happen when you ensure that people are not incentivised to go truant again. I am glad that the states have cooperated. The trajectory of losses this year will certainly be significantly lower than last year while it may not have resulted in game changing increase in power demand it was never intended to because at the outset we first want them to become stronger and then power demand or their ability to purchase power will be a natural outcome of improved deficiency. ET Now: If I may ask you something which you also mentioned in your address earlier, the financial aspects by and large of UDAY have been taken care of. They have gone as planned but operational parameters are something which you flagged off personally as well. Perhaps there is something you are not very satisfied with. Who do you see are the best performers in UDAY so far on operational parameters and which states are remained behind. Piyush Goyal: No by and large I would not like to get into the specific states because I am getting everybody on board in voluntary scheme and obviously each state has its own compulsions and local issues. It takes certain time for different states to come up to expectation. But frankly if you ask me, by and large all the states have performed well. It is just that different states came on board at different time and then there are a number of states which are already performing very well. Look at Gujarat. I remember one day I had got very angry at my officers. Why is Gujarat not joining the financial parameters and they tell me sir but there are no loans to join financial parameter. Total borrowing of Guajarat was some Rs 1800 crore. Andhra Pradesh has equally done a phenomenal job. Rajasthan and Haryana are two loss making states. They deserve special mention for the fastest ramp up to come out of losses. They are very aggressive admissions and to my mind, these two states that will outshine all other states. ET Now: The central assistance under the IPDS is also something which is an important part of making progress in UDAY. If I may ask you, you have got some states, you have got Uttar Pradesh, for example which has joined UDAY, they were the first issuers of the bonds as well, what sort of progress do these states like UP need to make? Piyush Goyal: The government utilisation of funds and its proper reporting and recording is the integral part of any success of any programme. Under Deen Dayal Upadhyaya Gram Jyoti Yojana, I have been urging all the states to ensure their systems are well in place. There have been certain glitches in the initial period because over so many years they were so used to incomplete work and still getting paid that it is taking a little time for people to get used to strict adherence to the system but other than that I think things are alright. Varanasi the IPDS has taken off extremely well. ET Now: Let us talk about something which is very close to you; the renewable space. If I may cite, you know, recently the WTO hearing on our domestic content requirements has gone against us how do you read this in terms of impact on our domestic content requirement program and how do you see that going forward? Piyush Goyal: Right now, we have many cases on the United States for their domestic content requirement that they have been… ET Now: So you are going ahead and filing them? Piyush Goyal: We have already filed. We have filed, I think, six or eight cases against states in the United States which have been following almost similar domestic content requirement rules. That is a process that is underway, we have already filed the cases. As far as Indian interests are concerned, we may have lost this case which as I have said earlier reflects very poorly on the global effort to address the impact of climate change and mitigate this problem but be that as it may, we will continue to support Indian manufacturers, we will ensure that everybody who manufactures in India will be competitive and will be able to get good business. There are always ways to support them and we are exploring and examining jointly with Ministry of Commerce. We will shortly come out with our new proposals. Miami Dolphins Jersey
Power company brings in mobile app for meter reading
The Kolhapur zone of the Maharashtra State Electricity Distribution Company Limited (MSEDCL) has started using a mobile app developed by the power company to bring in transparency in meter-reading. The application, equipped with meter tampering system and Global Positioning System (GPS), aims to remove lacunas like human errors in the billing process. Kolhapur zone comprises Kolhapur and Sangli districts and has around 18 lakh customers. Public relation officer of Kolhapur zone Vikas Puri said the earlier system had some flaws. “Manual errors used to creep in while uploading data into the system, resulting in complaints regarding billing. The new app aims to remove such errors. The photo taken by the company employee will automatically be uploaded to the server. If internet is not available, the data will get automatically uploaded as and when the internet is available. This is important for remote areas in Kolhapur and Sangli districts where internet network is hardly available,” Puri added. The app is available on Google store, window store, and apple store. “The app is equipped with meter tampering system which will help our employees identify tampered meters. Once a meter is tagged as tampered, legal enquiry against the customer will be initiated under the Electricity Act 2003. This system will be implemented in the entire state soon,” he said. Chief engineer of company’s Kolhapur zone Shankar Shinde said, “The app was launched after carrying out primary trials, which were successful. Also, we have developed another application for consumers which they can use to register their grievances,” Shinde said. MSEDCL has 16 distributions zones in the state. Bhadup, Kalyan, Pune, Nagpur zones were selected in the first phase for introducing this application. Kolhapur, Aurangabad, Baramati, Nashik zones have been selected for second phase of the programme. Sam Darnold Jersey
Maharashtra becomes 17th state to join UDAY
Maharashtra has become the 17th state in the country to join power distribution reform scheme Ujjwal Discom Assurance Yojana (UDAY). The state government and Maharashtra State Distribution Company Ltd (MSEDCL) signed a pact with the centre under the scheme at the two-day state power ministers’ conference today. Under UDAY, 16 states and Union Territories had already signed the pact so far. The combined discom debt, including Central PSU dues, that would be restructured in respect of these states is around Rs 2.57 lakh crore, around 68 per cent of the total outstanding discom debt at the end of 30 September. “An overall net benefit of approximately Rs 9,725 crore would accrue to Maharashtra by opting to participate in UDAY, by way of cheaper funds, reduction in Aggregate Technical & Commercial (AT&C) losses, interventions in energy efficiency, coal reforms etc. during the period of turnaround,” the power ministry said in a statement. As part of the scheme, the state government has committed to take over 75 per cent of the discom’s non-capex debt of around Rs 6,600 crore during the current year. The balance 25 per cent of such debt remaining with the discom would be converted into Bonds or repriced at cheaper rates. This would reduce the interest burden of the state and the discom by Rs 595 crore. The state would bring down the AT&C losses through compulsory distribution transformer metering, consumer indexing and GIS mapping of losses and feeder audit. Also, it will eliminate the gap between cost of supply of power and realisation. “The reduction in AT&C losses of MSEDCL to 14.39 per cent and the decline in transmission losses of the state to 3.75 per cent is likely to bring additional revenue of around Rs 2,200 crore during the period of turnaround,” the ministry said. As part of the scheme, the centre would also provide incentives to the discom and the state government for improving power infrastructure in the State and for further lowering the cost of power. “The central schemes such as Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), Power Sector Development Fund are already providing funds for improving power infrastructure in the state and additional funding would be considered under these schemes if the state meets the operational milestones,” the ministry said. The state government will also be supported through additional coal at notified prices and in case of availability, through higher capacity utilization, low cost power from NTPC and other central PSUs. Other benefits such as coal swapping, coal rationalization, correction in coal grade slippage, availability of 100 per cent washed coal would help the state to further reduce the cost of power. The state would gain around Rs 4,500 crore due to these coal reforms. Saquon Barkley Womens Jersey
Centre offers soft loan to discoms to provide power connections for Rs 100/month
The Centre has offered long-term soft loans to states to provide electricity connections in easy monthly installments to households to meet its power-for-all commitment, Power Minister Piyush Goyal said here on Friday. State-run Rural Electrification Corp will offer 10-15 year loans at low interest rates to power distribution companies to finance capital expenditure incurred by states in offering electricity connections to households at installments of Rs 100 per month, said Goyal, who is also the minister for coal, renewable energy and mines. Currently, consumers have to pay Rs 4,000-5,000 to get an electricity connection. The NDA government has committed to provide electricity to all by March 2019. Adarius Glanton Womens Jersey
IOC launches start-up scheme with Rs 30 crore corpus
Indian Oil Corporation (IOC), the country’s largest fuel retailer, today announced it has launched a start-up scheme with a corpus of Rs 30 crore to promote promising start-ups and “nurture an eco-system conducive for innovations” in the domestic hydrocarbons sector. Driven by IOC’s Research & Development Centre at Faridabad, the scheme will support projects which involve innovative technology and business process re-engineering ideas with significant business potential, social relevance and focus on environment-protection. “The start-up scheme will be administered through a dedicated online portal and will facilitate the community of innovators, entrepreneurs and intrapreneurs. It will help them pursue their promising ideas right up to validated proof of concept (PoC) stage by funding the incubation ecosystem and through intellectual mentoring,” the company said in a statement. IndianOil will also help in commercialisation of select validated PoCs through equity participation. Citizens of Indian origin willing to work in India besides individuals affiliated to academic institutions having incubation centres approved by the central government, or intrapreneurs from IndianOil can apply under the scheme. To begin with, IndianOil will float the first round of open Innovation Challenge by way of an Expression of Interest (EoI) to select 9 proposals in the domain of Technology Process Re-engineering (TPRE) and 6 proposals in the domain of Business Process Re-engineering (BPRE). The proposals received will be subjected to screening and the short-listed one will be incubated with the required physical and intellectual support till they reach PoC stage. The project owners will be supported with grants of up to Rs 2 crore per project during this period. The areas identified by the start-up scheme under Technical Process Re-engineering (TPRE) include low-cost efficient vapour recovery system at fuel stations, low-cost production of Hydrogen, low-cost process for desalination of sea water, innovative schemes for ensuring zero effluents from oil refineries, molecular modelling and design of the inter-phase molecule for dispersion of nano-material in HC media. The scheme will also cover environment-friendly disposal of insulation material like ceramic blankets and glass wool, LPG cylinder safety aspects and waste-to-energy projects. The company said it is hopeful the start-up scheme will promote collaborative research, develop an innovative ecosystem, nurture entrepreneurship, boost start-ups with rural orientation and open up avenues for young employees of IOC to launch start-up projects. IOC will soon launch a dedicated online portal for the scheme. Matt Read Womens Jersey
Saudis cancel rare prompt oil offer to Asia after OPEC deal -sources
Top global crude oil exporter Saudi Aramco last week cancelled a rare offering of prompt cargoes to buyers in Asia, five sources with knowledge of the matter said on Friday, pulling back on a private tender after OPEC unexpectedly agreed to an output cut. The state oil giant has excess crude to sell as at least two domestic refineries are scheduled for maintenance in the fourth quarter, while Asian buyers may have opted to lift minimum term volumes next month after official monthly prices rose more than expected, the sources said. In what is sometimes called a private tender, selected buyers across Asia last week were given the option of purchasing Arab Light or Arab Heavy crude cargoes loading at Ras Tanura in October in the tender, the sources said, although few other details were available. But Saudi Aramco subsequently cancelled the tender after the Organisation of Petroleum Exporting Countries (OPEC) reached a deal to cut output on Sept. 28, the sources said. It was not immediately clear if Saudi Aramco sold any cargo before or after cancelling the tender. Saudi Aramco officials did not respond to an emailed request for comment. The company does not comment on its oil sales. The sources talking on the matter asked to remain anonymous due to its sensitivity. Asian buyers have remained cautious following the OPEC supply cut agreement, awaiting the next meeting in November for more details on how the agreed cut might be divvied up between the group’s members. SPOT CRUDE SALES? The crude sales tender may indicate an interest from Saudi Aramco to sell spot cargoes in future, trade sources said, which would be a major change in the producer’s marketing strategy. Saudi Arabia sells its crude oil mainly via annual contracts to customers at designated destinations, meaning that its oil is rarely traded on the open market. Still, the producer has in the past few years shown some flexibility in selling spot cargoes from its storage in Okinawa, Japan, to North Asian buyers. “Spot sales help in price discovery, providing an additional guide for the producer when it sets monthly prices,” an industry source said. Saudi Aramco typically sets its crude prices based on the changes in the Dubai market structure, recommendations from customers, and after calculating the change in the value of its oil over the past month, based on yields and product prices. The official Saudi prices help to set the trend for crude grades from Iran, Kuwait and Iraq, affecting more than 12 million barrels per day (bpd) of oil bound for Asia. Dave Winfield Jersey
GLOBAL LNG-Prices rise to highest in nine months on firm Asian demand
Asian liquefied natural gas (LNG) gas prices reached a nine-month high this week as demand from India, Japan and South Korea underpinned sentiment. LNG for November delivery were about $6.20 per million British thermal units (mmBtu), 10 cents higher than last week, as supply-demand balances for the rest of the year appear tighter, said three traders who participate in the market. That is the highest since the week ending Jan. 8. Higher crude prices are also lending support to LNG values. ICE Brent futures have gained 3.3 percent to above $52 a barrel this week following the Organizations of the Petroleum Exporting Countries announced plans to curb production. LNG demand from North Asia remains firm as nuclear power stations in Japan and South Korea that have been taken offline are expected to stimulate demand for the super-cooled fuel. Japan’s Kyushu Electric Power Co shut the 890-megawatt No. 1 reactor at its Sendai nuclear plant on Thursday for planned maintenance that is expected to last at least two months, although a restart could be hampered by anti-nuclear local authorities. South Korea has also shut multiple nuclear power plants for maintenance and as a precaution after the country suffered its biggest earthquake ever in September. “We expect demand to continue to be strong in Korea and Japan. China is also looking for more cargoes,” a Malaysia-based LNG trader said. The best bids from Asian buyers were pegged at the low-$6 per mmBtu range, while offers were in the mid- to high-$6 per mmBtu range, the traders said. “It is still a buyers’ market, but for November and December cargoes, sellers can decide who they want to sell to,” a Singapore-based trader said, adding that the market may rise due to demand from India and North Asia. Indian gas firm GAIL closed a tender seeking a November and a December cargo early this week. The results were not immediately known, but traders expect the firm to have appetite for more cargoes. Angola LNG, which closed its sell tender for its Oct. 4-6 loading cargo on Wednesday, is likely to have awarded the tender because of its prompt loading dates. The bids are valid until Friday. Despite firm Asian demand, gains in spot prices could be capped by new production from the Australia Pacific LNG (APLNG) project that is due to start-up this quarter, and returning U.S. supplies. Cheniere’s Sabine Pass is scheduled to come back from maintenance around Oct. 17, a source close to the matter said on Thursday. The Australian project is starting up its second production line, an APLNG spokesman said on Thursday, with traders expecting a first shipment to be loaded later this month. Jarvis Jenkins Womens Jersey
Pradhan pitches for subsidy withdrawal on petro products
Making a case for free market economy to boost investments, Oil Minister Dharmendra Pradhan has said the market price of petroleum products should be commensurate with production rate to augment output and subsidies on such items must be for poor households only. “The market price should be near to production price. We have to adopt a market mechanism. Government should not control prices (of petroleum products),” the minister said at the India Economic Summit here. The minister was also of the view that freeing price of petroleum products is necessary to boost the investors confidence and increase private players participation in energy sector. He suggested that the without removing subsidies India cannot augment production of petroleum products in the country. He also stressed that the subsidies should be targetted and should not be available to everybody for increasing investors confidence. Besides there should be a debate on this. At present, the government still provides subsidy on kerosene and cooking gas (LPG). Government has been trying to persuade consumers to give up their LPG subsidy so that it could be provided to deserving below poverty line or poor families. The minister was of the view that the gas and renewables like solar and wind energy has a future in India in the long term and their proportion will increase in the energy mix in coming days. The Minister also emphasised the need to monetise farm waste by converting it into various forms of energy and said “We are very much focused on the bio-energy. We have to tap the farm bio waste.” Ben Lovejoy Authentic Jersey
Government mulling over ways to boost power demand
Lack of demand for power is a serious concern for the coal industry and the government is examining this conundrum, according to Coal Secretary Anil Swarup, who has suggested a relook on the government’s ambitious one billion tonnes of production target for fossil fuel by 2020. “For me the serious concerns are: Number one, there is hardly any demand for power. What we will do? We are planning to produce one billion tonnes of coal by 2020. What will I do with that coal,” said Coal Secretary Anil Swarup. He suggested that the need to increase this demand for power is very important because, currently, per capita consumption of energy in India is equal to the per capita consumption of the US in the late 90’s. “The demand has to go up,” he said. In fact, in the current financial year, coal production has had to ensure that coal does catch fire at the pit heads, where much of the stock lies unused. “On 31st of March this year India had surplus of 56 million tonnes (MT) as inventory at pitheads and around 32 MT at the power plants, as on March 31, 2016. “I would rather be in this situation than what I was in a couple of years ago, when everyone was running around… to reach out coal to these power plants. I am glad we are where we are,” said Swarup. The government’s focus has now shifted to the quality of coal, he said. State-owned Coal India (CIL) which amounts for over 80% of domestic coal production is eyeing one billion tonnes of coal production by 2020. Colin McDonald Womens Jersey
Power tariff in Rajasthan lower than other states, CM Vasundhara Raje says
The chief minister said tariff for domestic power in Rajasthan was lower than that in Maharashtra, Madhya Pradesh and Karnataka, the chief minister said. The state government hiked power tariff by an average 9.6% last month.Raje said power tariff for agriculture in Rajasthan was lower than that in Chhattisgarh Assam , Meghalaya, Delhi, Madhya Pradesh , Kerala, Odisha, Uttarakhand , Goa and Karnataka. JAIPUR: Chief minister Vasundhara Raje on Wednesday defended her government’s decision to hike electricity rates in the state, saying these were still among the lowest in the country. “Barring for technical snags, the state is maintaining electricity supply for 22 hours to 24 hours every day,” the chief minister said. She said flat rate consumers in Rajasthan were getting electricity for Rs 120 per Horse Power instead of Rs 635 per Horse Power, as the state government was subsidising it. JAIPUR: Chief minister Vasundhara Raje on Wednesday defended her government’s decision to hike electricity rates in the state, saying these were still among the lowest in the country. The state government hiked power tariff by an average 9.6% last month.Raje said power tariff for agriculture in Rajasthan was lower than that in Chhattisgarh Assam , Meghalaya, Delhi, Madhya Pradesh , Kerala, Odisha, Uttarakhand , Goa and Karnataka.”The current rate for agriculture (metered) was Rs 4.75 per unit, of which Rs 3.60 per unit was being subsidized by the state government. We are paying Rs 7200 crore annually to the power companies in lieu of lower rates for agriculture consumers,” Raje while addressing the BJP executive meeting in Udaipur on Wednesday. The chief minister said tariff for domestic power in Rajasthan was lower than that in Maharashtra, Madhya Pradesh and Karnataka, the chief minister said. The tariff for non-domestic power was lower than that in Delhi, Kerala, Punjab, Maharashtra, Uttar Pradesh and Andhra Pradesh Power tariff for small-scale industries too was lower than that in Delhi, Madhya Pradesh, West Bengal, Uttar Pradesh and Punjab, for medium-scale industries was lower than that in Delhi, Maharashtra, Wes Bengal, Uttar Pradesh and Punjab, while tariff for large-scale industries here was lower than that in West Bengal and Maharashtra. “It was the previous Congress government that took a cabinet decision to hike power tariff every year after financially ruining the state Discoms,” the chief minister said.The Congress recently held state-wide demonstrations accusing Raje-government of increasing electricity rates to “cover up” financial mismanagement in Discoms and of failure to add “even a single unit” to state’s power generation in past more than two years. Vonn Bell Jersey