Govt plans Rs 1,000 cr Sterlite project to rid Gurgaon of blackouts
Gurgaon’s chronic power woes could be a thing of the past in a little more than a year from now. A Rs 1,000 crore-plus transmission project is under way to raise electricity supply to the millennium city and its surrounding areas, home to scores of multinationals, call centres and manufacturing units, by 2,000-3,000 MW. The project, awarded to Sterlite Power promoted by NRI metals-and-mining tycoon Anil Agarwal, is part of the Jagdish Khattar government’s efforts to turn Haryana into a zero-blackout state. The Sterlite project would prop up another plan being pursued by the central and state governments to make Gurgaon the first city in the country with a full-scale smart grid that would allow consumers to reduce power bills by turning into ‘prosumers’- becoming suppliers during the day by feeding surplus power from rooftop solar systems into the mains and drawing back in the night. The Sterlite project envisages laying four lines totalling 170 km and three high-power sub-stations to raise wheeling capacity to rid the area of generators and power cuts. The sub-stations would strengthen the network in Gurgaon and connect other sub-stations located at Palwal, Rangla, Rajpur and adjoining areas of Meerpur Kurah in Haryana – all part of the inter-state transmission system. “This project is quite challenging as it passes through established human settlements. We are confident of delivering it ahead of schedule, as we have been doing on our other projects,” Sterlite Power CEO Pratik Agarwal told TOI. Land acquisition has begun and the financial closure is expected any time now. “It’s a matter of days,” a company source said. The company is confident of completing the project in 17 months, or by the middle of 2018, much ahead of the sanctioned time. Besides augmenting power supply to residential areas, the project would also improve reliability of electricity supply for manufacturing and service sectors in the region and help generate jobs. The transmission links are proposed between Aligarh and Prithla , covering a distance of 52 Km. The second line between Prithala and Kadarpur would cover 40 km and the third one linking Kadarpur with Sohna Road travel 21 Km, while the fourth between Neemrana and Dhanonda would cover 54 Km. The sub-stations are being planned at Sohna Road, Kadarpur and Prithla along with associated 400 kv (kilo volt) connectivity. Sergei Fedorov Womens Jersey
No possibility of setting up nuclear plant in Punjab: SAD
Ruling Shiromani Akali Dal (SAD) today ruled out the possibility of setting up a nuclear plant anywhere in Punjab, holding there was no feasibility for it in the state, a day after the Centre said it was looking at possible sites in Uttarakhand, Punjab and Haryana. SAD General Secretary and Member of Parliament Prem Singh Chandumajra said there was no feasibility for setting up a nuclear power plant in the state. He said if the Centre really wants to set up nuclear plants, it should look for sites in Rajashatan or Madhya Pradesh. Read More: Green activists oppose nuclear plant near Doon. Govt. exploring opportunities to set up nuclear power plants in U’khand, Punjab and Haryana. Meanwhile, chairman of Punjab State Power Corporation Limited (PSPCL) K D Chaudhary said no such proposal was there for consideration with the state. He said that the state is “power plus” now. Yesterday, Minister of State in the Prime Minister’s Office Jitendra Singh had said that the central government is looking at possible sites in Uttarakhand, Punjab and Haryana for setting up new atomic power plants. The Congress government had rejected the proposal for setting up a nuclear power plant in Darauli in Patiala in 2000. CORR VJ AJR SC AJR Derrick Johnson Jersey
Diwali power boost with eye on polls in UP
The people of poll-bound Uttar Pradesh can expect a brighter Diwali this year as the state government is all set to increase power supply around the festival of lights, which is on October 30. Presently, rural and urban areas get 12-14 hours and 18-22 hours of power supply, respectively. This will be increased to 16-18 hours for rural and 22-24 hours for urban areas. A formal announcement is likely to be made by chief minister Akhilesh Yadav. Managing director, UP Power Corporation Limited, A P Mishra said all preparations for an increased power supply will be completed by October-end. “It was part of the state government commitment,” he said. Sources said that the state government seeks to wheel in more power when the demand lessens. As on date, while the demand is at the peak up to 15,000MW, the UPPCL is able to provide nearly 13,000MW, leaving a gap of nearly 2,000MW. The rural areas are facing prolonged power cuts and the maximum power supply is in the range of nearly 10-12 hours. The same is with urban areas where power supply is to the tune of 18-22 hours. Sources said the state government is looking to not only state-owned power plants but also those of the private sector like Rosa, Bajaj, Bara and Lanco for a higher and efficient generation. While the UP Rajya Utpadan Nigam has set a target of nearly 4,000MW from state-owned power plants, the UPPCL expects to get nearly 5000MW just from private players. A senior UPPCL official, however, said power supply from IPP will come through only after a separate power corridor is created. “For this, we need to have a Short Term Open Access (STOC) and Long Term Open Access agreement,” he added. Zay Jones Jersey
Border village, devoid of electricity or roads, hopes for a better future
A visit to Thapliyalkheda, a village in Champawat district on the Indo-Nepal border is an illustrative example of how villages in the far-flung reaches of Uttarakhand remain disconnected from the rest of the region and the country even now in times of instant communication. Located around 170 km from Nainital, the judicial capital of the state and headquarters of Kumaon division, the village of around 45 families still has no electricity or road. Till 1998, the villagers were also not able to exercise their voting rights since their names were not included in the area’s electoral rolls due to few officials visiting the place because of its inaccessibility. Visiting the village is like going back a few decades in time — in the absence of electricity, life comes to a standstill after sunset although some families have started using solar powered lanterns provided by the Sahastra Seema Bal (SSB) which guards the border areas. The irony is that the National Hydropower Corporation-operated Tanakpur power plant on Sharda river is just nine kilometres from the village. The other irony is that the area is represented by a MLA of the ruling Congress but still has to struggle with basic sadak, bijli, paani issues. Residents say that till the time the SSB moved into the area (in 2001), they also had to grapple with mischievous elements from across the border. “People from Nepal used to come and take away away our cattle. We were helpless as no official used to visit us. Only sometimes, officials from the forest department came to our area. We had to struggle a lot in order to get our names included in the voters’ list which happened only in 1998,” said Mohan Singh, the village head. The remoteness of the village can be gauged from the fact that the only sound one can hear is of an occasional vehicle of the armed forces making its way to the border outpost which is just a few kilometres away. Most of the youth of the village work either as daily wagers or farmers. With the arrival of the SSB in the area though, some hope has sparked amongst villagers of a better future. The border force has started providing basic amenities to villagers like solar lanterns, medical and public phone facilities as well as guidance for those youngsters who want to join the armed forces. In the pipeline, says Shyam Singh, inspector general, of SSB frontier Ranikhet, is a plan to light up around 10,000 homes in the border areas with solar units. SSB has collaborated to this effect with the NGO SCALE (Society to Create Awareness Towards Life & Environment). According to Arun Sinha, general secretary, SCALE, solar lanterns for use in villages like Thapliyalkheda are being manufactured in Uttarakhand for which units and workshops have been set up in Haldwani and other towns. Radha, a class nine student of Thapliyalkheda student who uses a solar lantern to study, says she wants to “become a doctor and cure everyone in the village.” Similar aspirations abound among other youngsters. Pooja Dhek, a 23-year-old graduate has recently appeared in the physical fitness test for entry into the SSB. “I want to get a government job so that I can support my family and do something for my village,” she says, eyes sparkling with hope for the future. Ryan Allen Jersey
ONGC Top Guns Face Travel Allowance Cut
The directors at Oil and Natural Gas Corp (ONGC) are set to lose the perk of claiming full travel allowance and comforts while working in Delhi that helped them claim piles of cash on top of their salaries. The directors are officially based at Dehradun, the company HQ, but mostly operate from Delhi and end up being on a perennial tour to Delhi, claiming daily allowance, residential and any other benefit available to a visiting top executive. An oil ministry decision will now end this. For directors, the headquarters will be changed to Delhi, said sources with direct knowledge of the matter. “The company’s headquarters will remain at Dehradun. The shift from Dehradun to Delhi is only with respect to directors’ base. This will help us save public money,” said a source. At present, most directors have company-paid accommodations in Delhi and Dehradun or another city, sources said. The houses, called transit accommodation, are in posh localities of Delhi with monthly lease of Rs 2 lakh or more. Another perk directors will lose is daily allowance of about Rs 1,800 or roughly Rs 50,000 per month. The food and transport is also paid for by ONGC. “As per terms and conditions of their appointment, the ‘headquarters’ of CMD and functional directors is Dehradun. However, in the terms and conditions of appointment of director (onshore) received from ministry of petroleum & natural gas on 27.09.2016, his headquarters has been mentioned as ‘New Delhi’,” ONGC said in response to ET’s email query. According to sources, similar communications are being sent to other directors and chairman as well. “During their stay at Delhi, chairman & managing director/directors are provided with transit accommodation instead of hotel. “However, during their visits to Dehradun, they avail ONGC guest house. CMD/directors are not claiming any DA for their stay at Delhi,” ONGC said. At present, ONGC has seven functional directors, including the chairman, two government nominee directors and three independent directors, according to its annual report. Linus Ullmark Jersey
No option but to run Gail pipeline through farmland: Union min
Union petroleum and gas minister Dharmendra Pradhan has reiterated that the gas pipeline in western districts of Tamil Nadu will go only through farmland and there is no other alternative to the pipeline along highways. In a letter to DMK Rajya Sabha MP Kanimozhi, the minister said the Centre would hold talks with the Tamil Nadu government and find a solution the problem. Gas Authority of India Limited (GAIL) is laying pipes from Kochi to Bengaluru through Coimbatore, Tirupur, Salem, Dharmapuri and Krishnagiri. Of the total 879km, the pipeline will be passing through 310km in Tamil Nadu. “You had raised the issue in the Rajya Sabha as a calling attention motion. I consulted the company officials on the project. The farmers will retain ownership of their land even after the pipes are laid,” said Pradhan. Adding, since the pipes are laid one metre below the ground, there is no danger to crops cultivated in the land. He said pipes could not be laid on highways as it was not possible to set up valve stations and maintenance stations. Farmers in the districts are apprehensive of losing their land. “Land will be acquired only on a temporary basis and only if there are trees or buildings which need to be uprooted or demolished. Suitable compensation will be paid based on the revenue loss as well as based on the Petroleum and Minerals Pipelines (Acquisition of Right of User Inland) Act, 1962,” said the minister. The Supreme Court on February 2, 2016 ordered the Tamil Nadu government to compensate the farmers as per the market rate as on January 1, 2016. “The court had ordered 10% of the land value and 30% on compassionate basis to the farmers for the use of the farmland. After laying of the pipes, the land will be returned to the farmers who can carry out normal cultivation activities on the land,” he said. Ben Hutton Womens Jersey
RIL should pay for illegally extracting gas: CPI(M)
Latching onto the observations of the AP Shah committee on compensation Reliance Industries Limited should pay to ONGC for producing the state-run firm’s gas, the CPI(M) today demanded the Centre “fully recover” cost of the volume of gas the private player “illegally” migrated to Krishna Godavari basin. “The RIL should return the cost of the gas that it was not entitled to and had illegally extracted for commercial gains. “The Politburo demands that on the basis of the Committee report, this amount that is legitimately due to the exchequer must be fully recovered from the RIL. Additionally, the RIL should be penalised for this illegal act, in accordance with our laws,” the CPI(M) said in a statement. The Justice AP Shah Committee report on the compensation from Reliance Industries Ltd regarding the Godavari-KG Basin natural gas fields was submitted on August 31. As much as 11.122 billion cubic metres of ONGC gas had migrated from its Godavari-PML and KG-DWN-98/2 blocks to adjoining KG-D6 of RIL between April 1, 2009 and March 31, 2015. At prevailing prices, the gas was worth Rs 11,000 crore. While ONGC’s reservoirs have almost emptied, RIL continues to produce gas from D1&D3 fields in KG-D6 block, some of it being of ONGC. Dexter Fowler Womens Jersey
Centre to utilise waterways to transport logistics: Nitin Gadkari
Looking to bring down the cost of logistics, government would utilise waterways in the country to transport goods including fertiliser, cement and steel, Union Minister Nitin Gadkari said today. Gadkari said this hailing the arrival of car carrier ship MV Dresdan with 500 cars at Coachin Port. This is a successful experiment and effective utilisation of this (waterways) system will help increase water transport in the country, Gadkari, Minister for Road Transport and Highways said here. “We want to diversify road traffic to water transport,” he said adding goods transportation through water costs barely 20 paise per km in comparison to Rs 1.5 a km through road and Re 1 per km through railways. The logistics cost in India is 18 per cent, which is higher than China (8-10 per cent), Japan (10-12 per cent) and European Union (8-12 per cent), he noted. “Now this can be a very successful experiment by which we can take cargo including fertiliser, cement and steel on the water,” he told reporters. Recalling the recent transportation of Maruti cars from Varanasi to Assam through waterways, the Minister said per car, the cost could be reduced by Rs 3,000 to 4,000 as the transportation expense was very less. The car carrier ship, arrived here, is of Cyprus registration, which has obtained licence for coastal run between the ports in India. It has the circuit of Ennore-Cochin-Kandla-Cochin-Ennore, connecting the automobile production hubs in Tamil Nadu in the East coast and Gujarat and Haryana in the West coast of India. The ship has 13 decks with the capacity to carry 4,300 cars. The operator of the Car Carrier is SICAL Logistics based in Chennai, which is a leading player in bulk operations in many ports and operates a Coal Terminal at Ennore. The Car Carriers, which are Roll on-Roll off (Ro-Ro) ships, are highly productive with automobiles being driven in and out of the ship. The operator carried the vehicles of Renault, Ford, Hyundai and Toyota from Tamil Nadu and Honda and Ford from Gujarat. Cochin Port has identified the Q7 berth at Ernakulam Wharf for handling the ship, and a clean yard of 4,000 Sq m area at Q7 is allotted for storage of cars until delivery to the dealers, which is normally expected in a week’s time. Kerala is a major consumption centre of cars with annual sales of about 1,50,000 to 1,80,000 units, which is highly significant in determining logistic patterns. Brock Coyle Jersey
In tolls and foreign players, roads sector eyes new funds
The Centre is planning to push the new toll-operate-transfer (TOT) model in the roads sector, buoyed by indications of interest from sovereign funds such as the Abu Dhabi Investment Authority and the Qatar Investment Authority, as well as Canadian Pension Plan INvestment Board. If the pipeline of the 100-odd projects lined up under the TOT model can be successfully handed out to investors, the move would offer an avenue for monetisation of completed stretches of public-funded national highways that are up to two-years old, thereby helping mobilise additional resources for constructing of new highway sections. Alongside the TOT option, where interest has been shown by the Abu Dhabi Investment Authority, Qatar Investment Authority and Canadian pension funds, the government-owned National Highways Authority of India (NHAI) is also exploring the possibility of raising funds through infrastructure investment trusts, officials indicated. A major feature of private funding of roads is the collection of toll. In India, toll rates are calculated taking into account the base toll rate and the wholesale price index and are indexed to the projected costs of sections in the case of high cost structures. Toll revenue numbers from across the country point to an over two-fold increase in collections over the last five years, with road users increasingly coming to terms with paying tolls on highways (chart). This is even as the private participation in the roads sector witnessed a severe liquidity crunch in the years 2012-13, 2013-14 and 2014-15, which resulted not just limited or no participation in the new projects awarded on the default BOT-toll format, but also delays in completion of ongoing projects. The TOT push comes at a time when the overall outlook for tolling in India has improved, with Crisil Research pegging overall toll collection stretches to increase 1.5 times over next four years. According to the agency, the total stretch of highways under toll collection model for NHAI and key states is expected to increase 1.5 times from around 15,190 km in 2014-15 to around 22,200 km by 2018-19 and the total number of toll collection projects are projected to increase from around 250 (in 2014-15) to 360-365 in 2018-19. Of these, NHAI toll collection stretches are pegged to increase 1.4 times over next four years while toll collection on state highway stretches are expected to increase 1.5 times over next four years, according to Crisil. NHAI had initiated the process of awarding projects on tolling towards the end of 2009-10 and as of 2014-15, according to Crisil estimates, around 6,990 km of national highways constructed under EPC and BOT Annuity are under tolling. This is expected to increase 1.4 times over the next four years and touch 10,300-10,500 km by 2018-19, primarily driven by a number of to-be awarded projects to be implemented on EPC/Cash contract basis. The total number of toll collection projects are expected to increase from around 102-104 currently, to 128-132 by 2018-19 (assuming an average length of 80 km for NHAI toll collection project), according to Crisil. Several hurdles, however, plague toll collection in India, including some factors that are intrinsically linked to the consumer behaviour of road users in the country. Problems associated with toll collections in India: Transition from EPC to BOT: Most BOT project operators are companies that have evolved from EPC contractors into BOT concessionaires by leveraging their experience in constructing mega road projects. However, these companies had either no knowledge or very basic knowledge of tolling when they entered the tolling business, Ministry of Road Transport officials indicated. There is progressive realisation tolling is a very technical and complex activity and many varied factors contribute towards its success. Unwillingness to pay toll: Users treat roads as a public good where the service should be provided free by the government. Support from local authorities: The concept of BOT projects is not understood by the lower levels of administration with whom the concessionaires have to deal with on a daily basis. Pilferage: According to a rough assessment, toll pilferage on ill managed plazas can be as high as 25 per cent. Even a momentary failure of toll IT system can result in considerable toll pilferages. Detours: With wide-spread development of roads, taking a toll detour has become a standard practice by most road users. In a large number of concession agreements, there are no safeguards like check plazas. Therefore, to avoid loss of toll collections, choosing the correct location for the plaza becomes critical. Political interference: This generally commences from protests against land acquisition and finally culminates in obstruction of tolling activities. Explicit clauses for addressing the issue of disruption of tolling activities needs to be included in the agreements. The ‘Force Majeure’ clause in contracts currently, does not provide adequate safeguards due to the lengthy time stipulations. Toll plazas are usually the target of political agitation in the near vicinity culminating in impacting toll operations. Unauthorised exemptions: A large percentage of exemptions consists of road users who have to be necessarily exempted in order to ensure smooth and unhindered tolling operations. These road users have the potential to create problems. Tavon Young Womens Jersey
NHAI Opens Bids For Road Assets Worth Rs 50,000 Crore
The National Highways Authority of India (NHAI) has floated tenders inviting bids to monetise its road assets worth Rs 50,000 crore. The government-run authority said it expects to lease out around 6,000 km of national highways to private players through the auction route starting next month. Around 50 national highways would be leased out in the next month, according to data from NHAI website, mostly for toll collection and maintenance in lieu of the upfront payment to the road authority. “I would like to make it very clear that this is not a distress sale of assets but an initiative to enhance private sector participation in the operations and management of the highway sector,” Raghav Chandra, Chairman, National Highways Authority of India said in an emailed response. Growing Appetite NHAI’s latest move has the potential to kickstart stalled projects in the highways sector, according to experts. “Since most of these highways are already being made, it is just about maintenance, which private players feel comfortable working around with,” said Gaurav Karnik, partner and leader of real estate and infrastructure, at advisory, auditing and business consultancy firm EY. What could sustain the momentum is the ministry of road transport and highways’ ambitious target of adding 50,000 km of national highways over the next five years. The government will set the pace of highway construction at 42 km per day, Union minister for road transport & highways and shipping, Nitin Gadkari said. Floating online tenders will make the auction process more transparent, said EY’s Karnik. “The highways sector is growing and we are bullish on it. There is good growth potential over the next couple of years, especially given the government’s push,” he added. Cruising Ahead A recent study by India Ratings and Research estimates that investors are keen on picking up stake in completed highway projects worth Rs 24,500 crore. With infrastructure investment trusts gaining traction, highways will evolve further as an asset class, the agency says in a report titled ‘Opportunities Manifest Despite Overt Limitations’. Global institutional investors such as UAE Infrastructure Investment Fund, Japan Bank for International Cooperation (JBIC), Nomura and others have indeed shown interest in picking up stake in these long-term projects, Chandra of NHAI confirmed. While institutional investors including sovereign wealth funds are generally averse to taking risks in ongoing projects, they are open to investing in stable yield projects, the state-run authority said. The availability of foreign capital frees up domestic capital, both equity and debt, for the NHAI to invest in more greenfield projects. Welcoming the NHAI’s decision, Isaac George, director and chief financial officer, GVK Power & Infrastructure said. “It is a good thing to bring private players in the sector. Road maintenance will improve and so will the administration of toll collection.” That is precisely the NHAI’s rationale behind these auctions. “This would ensure efficient operations and management of monetised assets on a long-term basis while generating financial resources upfront for investing in new projects,” Chandra said. More private companies should exploit these opportunities, Issac added. When asked whether GVK has bid for any of these or other projects, he said, “As of now, we have not taken any call as we are still dealing with problems on our end.” Though private players are gung-ho, the NHAI cautioned that projects will only be monetised if it gets attractive bids. “The base price for the project will be determined by the authority,” clarified Chandra. Seth Jones Authentic Jersey