Bengal’s ‘light-for-all’ project enters the last mile
Even as Bengal gives finishing touches to its 100% electrification drive, power department officials have given up on 72 villages. Spread over Burdwan, Nadia and Murshidabad, residents of these villages will continue to live in the dark even as the ‘Sabar Ghare Alo’ (Light in every home) project makes a concerted effort to light up 6 lakh households that are outside the electricity loop. Sources in the power department said the state would miss the 100% electrification target by a whisker as the 72-odd villages located on sand bars in Burdwan, Nadia and Murshidabad were economically unviable to be connected to the grid. “In some cases, it may entail an expense of over Rs 1 crore to provide connection to a few dozen households,” an official of West Bengal State Electricity Distribution Co Ltd (WBSEDCL) said. Sources said a separate programme could be taken up later to provide solar electricity to these mid-river villages. In the rest of the state, the programme will most certainly overshoot the deadline with challenges in connecting remote islands in the Sunderbans in North 24-Parganas and South 24-Parganas and enclaves in Cooch Behar. The 51 enclaves that were exchanged with neighbouring Bangladesh last year pose a challenge. Ryan Anderson Womens Jersey
Power ministry special secretary may get REC’s charge too
Power ministry special secretary BP Pandey is likely to get additional charge of state-run Rural Electrification Corporation (REC), which drives the government’s flagship household electrification programme. Pandey will take over from Rajeev Sharma, who on Saturday became chairman and managing director of Power Finance Corporation. An announcement giving Pandey additional charge of REC is likely to be made on Monday, sources in the power ministry said. The development comes at a time when the government has decided to step up its electrification drive that aims to provide electricity connections to all Indian citizens by December 2018 and make power available 24×7 to all by March 2019, ahead of the earlier target of March 2022. Quinton Spain Authentic Jersey
Adani Gas slashes PNG, CNG prices
A day after the Union ministry of petroleum and natural gas cut prices of domestically-produced natural gas, city gas distribution company Adani Gas Ltd reduced prices of piped natural gas (PNG) and compressed natural gas (CNG) on Saturday. The company slashed prices of PNG for domestic households by Rs 13.81 per metric million british thermal unit (mmbtu) to Rs 510.15 per mmbtu (approx Rs 19.43 per cubic metre). Earlier, the price was Rs 523.96 per mmbtu (Rs 19.96 /cubic metre) excluding VAT. CNG prices have been reduced by Rs 1.10 to Rs 44.70 a kg from Rs 45.80 a kg including all taxes. The new prices are effective from October 1, 2016. Martin Havlat Jersey
Kerala CM promises all support to GAIL project
Kerala Chief Minister Pinarayi Vijayan has pitched for time-bound implementation of the much-delayed GAIL pipeline project in Kerala, saying it was “essential” to ensure “pollution-free” and “sustainable development” in the state. In a Facebook post, he said it was not proper to curtail development in the name of pollution and usage of environment-friendly fuel like CNG was a solution to this. The state should be connected to GAIL’s natural gas grid to get CNG at a cheaper rate, he said. “It is not proper to stop development for controlling pollution. The solution to this is to use green and clean fuel in place of those creating pollution. CNG is one such fuel which has been recognised as environment-friendly the world over,” the chief minister said. Detailing the significance of linking the state to GAIL’s natural gas grid, Vijayan said, “It is essential to connect Kerala with this national natural gas pipeline grid for sustainable development.” The grid will be connected with LNG Petronet at Kochi. The 900-km gas pipeline project of GAIL, passing through Kerala, Karnataka and Tamil Nadu, has been facing a delay due to land acquisition issues in Kerala and Tamil Nadu. In Kerala, of the 550-km stretch, only about 44 km inside Ernakulam city has been completed so far. Tamil Nadu and Karnataka together account for about 384 km of the project. Two pipelines, one from Kochi to Mangaluru passing through the coastal districts of Kerala and another connecting Bengaluru and Kochi, are to be laid. Protests from the residents of the areas through which the pipelines would pass have caused the delay. The 50 lakh tonnes per annum capacity of the Petronet LNG terminal at Puthuvype in Kochi has not been able to fully utilise its capacity due to the delay in laying of the pipelines. Petronet sources said things have picked up after the LDF government came to power in the state. “The GAIL pipeline project has a significant role to ensure pollution-free and sustainable development in the state. So, the state government is promising all support for the completion of the project,” Vijayan added. Demar Dotson Womens Jersey
ONGC, OIL making losses on natural gas production
State-owned ONGC and Oil India are making losses on natural gas production after government cut rates for the fourth consecutive time to bring down selling price to below the cost of production. Price of natural gas produced by Oil and Natural Gas Corp (ONGC), OIL and Reliance Industries locally was cut by 18 per cent to USD 2.5 per million British thermal unit (mmBtu) based on its gross heat value for six month period beginning October 1. On net heat value basis, the price will be USD 2.78. “Our average cost of production is about USD 5.14 per mmBtu. It comes to about USD 3.59 per mmBtu without taking into account return on capital,” said a senior ONGC official. For Oil India Ltd, the cost of production, without taking into account the return on capital, comes to about USD 3.06. “Gas production is now a loss making business as irrespective of cost of production we have to continue paying royalty and other taxes,” the official said. As per a new mechanism approved by the government in October 2014, the price of domestically produced natural gas is to be revised every six months — April 1 and October 1 — using weighted average or rates prevalent in gas-surplus economies of US/Mexico, Canada and Russia. For October 1, 2016 to March 31, 2017, the rate was on Friday announced to be USD 2.5 per mmBtu compared to USD 3.06 per mmBtu previously. The price of gas between October 1, 2015 and March 31, 2016 was USD 3.81 per mmBtu and USD 4.66 in the prior six month period. Next change is due on April 1. The reduction in natural gas prices would mean lower raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG) and would translate into reduction in retail prices. It would also mean lower feedstock cost for power generation and manufacturing of fertilisers. But for producers, it means lower revenue. Every dollar dip in gas price results in Rs 4,000 crore hit in revenue of ONGC on an annual basis. The current price reduction would hit its revenue by about Rs 1,000 crore. Alongside the price cut, the government also announced a sharp reduction in cap price based on alternate fuels for undeveloped gas finds in difficult areas like deepsea which are unviable to develop as per the existing pricing formula. The cap for October 1, 2016 top March 31, 2017 will be USD 5.3 per mmBtu, down from USD 6.61 in April 1 to September 30 period. The official said ONGC had used this flexibility to sell about 1.4 million standard cubic meters per day of gas from a Mumbai offshore field. “We sold the gas at USD 5.05 per mmBtu to (state gas utility) GAIL India Ltd. Fortunately, that price remains under the lower cap,” he said. Indian gas prices are calculated by taking weighted average price at Henry Hub of the US, National Balancing Point of the UK, rates in Alberta (Canada) and Russia with a lag of one quarter. So, the rates for October 1, 2016 to March 31, 2017 period were based on average price at the international hubs during July 1, 2015 to June 30, 2016. Ty Sambrailo Womens Jersey
CNG, PNG prices cut in Delhi NCR by IGL
City gas distributor Indraprastha Gas Ltd (IGL) has cut prices of automobile fuel Compressed Natural Gas (CNG) and household Piped Natural Gas (PNG) in Delhi-National Capital Region (NCR). The third price cut in less than a year follows the centre’s latest move to reduce domestic natural gas prices 20 per cent to $2.50 per unit for six months effective 1 October. The revision in prices would result in a decrease of Rs 1.40 per kg in the consumer price of CNG in Delhi and Rs 1.60 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad. The new consumer price of Rs. 35.45 per kg in Delhi and Rs 40.60 per kg in Noida, Greater Noida & Ghaziabad would be effective from tonight. The price of CNG in Delhi remains the lowest in the entire country. “With the objective to boost CNG refuelling during non-peak hours, IGL will continue to offer a discount of Rs 1.50 per kg in the selling prices of CNG for filling between 12 am to 5 am at select outlets. Thus, the consumer price of CNG would be Rs.33.95 per kg in Delhi and Rs 39.10 per kg in Noida, Greater Noida & Ghaziabad during 12 am to 5 am at the select CNG stations across the region,” the gas supplier said in a statement today. The company has also reduced domestic PNG prices from tomorrow. The consumer price of PNG to Delhi households is being reduced by Re 1 per standard cubic meter (scm) from Rs 24 per scm to Rs 23 per scm. Due to differential tax structure in Uttar Pradesh, the applicable price of domestic PNG to households in Noida, Greater Noida and Ghaziabad would be Rs 24.35 per scm. It is being reduced by Rs 1.15 per scm from the existing Rs 25.50 per scm. IGL — a joint venture of GAIL (India) Ltd, Bharat Ptroleum Corp (BPCL) and the Delhi Government — currently supplies PNG to nearly 480,000 households in Delhi and over 190,000 households in Noida, Greater Noida and Ghaziabad. “The revision in retail prices of CNG and domestic PNG has been effected after taking into account the overall impact on the cost as a result of the reduction in prices of domestically produced natural gas notified by the government,” the company said. It also claimed that with the revised price, CNG would offer over 60 per cent savings towards the running cost when compared to petrol-driven vehicles at the current level of prices. When compared to diesel driven vehicles, the economics in favour of CNG at revised price would be over 32 per cent, it said. IGL currently caters to over 850,000 CNG vehicles in the capital, which include nearly 550,000 private cars. The company is also augmenting its CNG refuelling infrastructure to meet the rapidly growing demand as a result of increased number of vehicles switching to CNG mode. Dale Hawerchuk Authentic Jersey
IGL to set up city gas distribution network in Rewari
Indraprastha Gas Limited (IGL) has been authorized by Petroleum & Natural Gas Regulatory Board (PNGRB) to lay City Gas Distribution (CGD) network in the geographical area of Rewari in Haryana, M Ravindran, Chairman, IGL said. Addressing the shareholders, Mr. Ravindran also gave an overview of future plans of the organization involving consolidation of its presence in existing areas as well as expansion in new geographies in view of the focus of the government to move the country towards a gas based economy. Referring to various initiatives taken by the government recently like developing national gas grid to cover all corners of the country and promotional campaign being undertaken to communicate benefits of natural gas, he said that IGL is fully geared up to seize the emerging opportunities in the CGD sector. Highlighting the initiatives undertaken by IGL to promote the usage of clean fuels due to increasing environmental concerns, Mr Ravindran shared information about the first of its kind pilot project in the country to run two wheelers on CNG being undertaken by the company. Speaking about augmentation of CNG infrastructure undertaken by IGL wherein 16 new CNG stations had been made operational in 2015-16 and work had also started on another 78 CNG stations, which were subsequently made operational in the first quarter of 2016-17. He added that this had resulted in IGL recording highest ever sale of 29.5 lakh per day last month, which is the highest for any CGD company on a single day. Referring to addition of 75,000 new domestic PNG customers by IGL in 2015-16, Mr Ravindran gave an overview of the marketing activities being undertaken by IGL to give boost to PNG segment. He added that IGL has been making conscious efforts to enhance customer experience by upgrading its services while leveraging technologies to its advantage. He informed that IGL has implemented Business Communication Management application to facilitate customers with optimized and improved call center operations over IVR to enable users to track, consolidate and respond in timely manner to customer complaints received through multiple channels. Joel Ward Womens Jersey
Essar Power commissions 60 Mw power unit at Paradip
Essar Power Ltd (EPoL), part of the $27 billion Essar Group, today announced it has commissioned a 60 MW unit comprising the first phase of its 120 Megawatt Paradip power plant. The company’s total installed capacity now stands at 4,705 MW. The 120 Mw imported coal-based power project at Paradip in Odisha, is developed by Essar Power Orissa Limited which is a subsidiary of EPoL. This has been set up as a captive power plant to meet the requirements of Essar Steel India’s 12 million tonne pellet plant in Odisha. The facility comprises a pellet plant at Paradip and a beneficiation plant at Dabuna, which are connected through a 253-km slurry pipeline. “Our focus is on completing all our under construction projects in the quickest possible time and achieve our stated target of operationalising 6,100 MW so that we can fully leverage on efficiencies of scale. With that goal in mind, the completion of Phase I of the Paradip project is an important milestone that we are delighted to reach,” KVB Reddy, Chief Executive at EPoL, said. The company claims the project uses technology that cuts down emissions. The boiler is designed to use both domestic as well as imported coal. With the commissioning of the second unit, Essar Steel will be able to further reduce its power bill and enhance its competitive edge, the company said in a statement. Essar Power Ltd is among the largest private sector power producers. It owns power plants in India and Canada with a total generation capacity of 6,100 Mw. Of this, 4,705 Mw is operational. Of the total operational capacity, 3,105 Mw is coal-based while 1,600 Mw is gas-based. The operating plants in India are at Mahan, Hazira, Salaya, Vadinar and Paradip. Also, a 1,200 Mw plant at Tori in Jharkhand is under development. Dion Lewis Womens Jersey
NTPC faces upto 30 per cent cut in fuel cost recovery on Regulatory hurdles
State-owned power generator NTPC Ltd is facing a significant hit to its fuel cost recovery on generation for the five year period 2015-19 on account of unfavourable regulatory tariff orders passed by Central Electricity Regulatory Commission (CERC). The Energy Charge Rate (ECR) approved by CERC is lower in the range of 20 per cent to 31 per cent than what was sought by NTPC. The difference in the ECR is due to the change in the basis for measurement of the gross calorific value (GCV) of coal to ‘as-received” as against “as fired” basis,” ratings agency India Ratings and Research said in a note. The orders so far passed by CERC cover only around 7,000 Megawatt capacity. Adding to the firm’s woes, the commission is likely to follow the same principle for the rest of NTPC’s plants leading to large differences in fuel cost recovery. “However, India Ratings expects NTPC to contest the same through regulatory process and initiate steps to install the infrastructure for measurement of coal GCV on “as received” basis. There is also a possibility of a dialogue between NTPC and Coal India (CIL) to resolve differences over coal grade slippages. According to CERC’s tariff regulations for the period 2014-2019, coal Gross Calorific Value (GCV) has to be measured at the point of unloading the coal at the power station gate, referred to “as-received” basis as compared to the earlier regulations which allowed measurement of coal GCV at the point before coal is fired, referred to “as-fired” basis. Read More: NHPC in pact with Rajasthan govt, Inox for wind project In its petition to CERC, NTPC had been highlighting the lack of infrastructure at its plants as the reason for its inability to measure coal GCV on “as-received” basis. Therefore, CERC, in the absence of data on “as-received” basis, has now considered the GCV on “as-billed” basis while arriving at the ECR leading to the consideration of a higher GCV rate. The regulator had decided to shift to the “as-received” basis of GCV measurement so that the generating company bears the inefficiencies post unloading of the coal and to ensure the generating company takes up the coal grade slippage with the coal supplier company and resolve it. NTPC had been highlighting problems regarding the measurement of GCV on “as-received” basis and was seeking “as-fired” basis on multiple grounds — coal samples taken after crushing for firing are of small and homogenous size compared to samples taken from wagons which are big and heterogeneous. Also, sample collection time from wagons is longer leading to demurrage charges and safety for personnel is better when samples are taken after crushing. Finally, samples taken from the wagons may not accurately represent coal quality because often good quality coal could be loaded at the top and superficial layers become dry during the transportation while the moisture percolates inside the wagons to the lower layers. Experts say the difference between the GCV on “as-received” and “as-fired” basis is governed by the ambient temperature, type of coal and duration for which coal is stored. According to Central Electricity Authority (CEA), heat loss during this time should not be more than 0.1 per cent in GCV value, which is in line with international studies. However, in this case the difference between the GCV of the coal works out to 20 per cent to 31 per cent. India Ratings noted that NTPC has been contesting the GCV calculation and had been highlighting the grade slippages in the quality of coal. “The grade slippage discussion between CIL and NTPC has become more visible post the January 2012 change in coal grading methodology to GCV-based grading from the earlier used heat value based system of grading,” it said. NTPC over the last two years has seen tightening of operational norms including the station heat rate, specific consumption and auxiliary consumption, change in the basis for providing the capacity charge incentives to plant load factor instead of plant availability factor and lower tax arbitrage. These factors have had a negative impact on the company’s profitability. Jonas Siegenthaler Womens Jersey
Centre to float first bid for road project mgmt under TOT model shortly
The Centre is likely to float its first bid for management of projects under the toll-operate-transfer (TOT) route within the next three months. The TOT route – often called asset recycling – is a unique asset monetisation exercise. Around 75 operational projects (or roads) set up with public funds will be handed over to private players. The Centre is looking to raise close to Rs. 50,000 crore through this monetisation model. According to Rohit Kumar Singh, Joint Secretary, Ministry of Road Transport & Highways, the Centre will target global funds with patient capital, including pension funds and sovereign funds from West Asia, among others. Contracts will come in bundle form – a number of road projects – being clubbed together. Around Rs. 1,200 crore may be raised in the first tranche. “Within the next three months the first such bid is likely to be floated. We expect around Rs. 1,200 crore; but this is a rough estimate,” he said on the sidelines of an infrastructure seminar organised by the Bengal Chamber of Commerce and Industry (BCC&I) Singh, however, said the “bundles” and draft guidelines have not yet been finalised. The monetisation programme has been cleared by the Cabinet. The model concession agreement and RPF documents are being finalised and will soon be taken up by the Ministry of Finance for clearances. Operation model Under the TOT model, roads will be given for a 30-year lease period. They will include projects which have been operational and generating toll revenues for at least two years. The payment for the lease will have to be made “upfront”. The bidders will recoup their investments by collecting toll over the lease tenure. According to Singh, around 20 global funds, including Nomura, Macquarie and Abu Dhabi Investment Authority, are expected to participate in the bidding process. Ron Hextall Jersey