Power-surplus India to electrify Bangladesh trade
After turning power-surplus, India is working with Bangladesh on a plan to double the capacity of existing transmission interconnects and set up a third link for increasing cross-border electricity trade in a bid to widen the regional market as new generation capacities come up on both sides. Sources said the two sides are working to double the capacity of the Baharmapur-Bheramara line to 1,000 mw and also examine the possibility of raising the Tripura-Comilla line’s capacity to 200 mw. Also on the table is a proposal to lay a third line from Assam’s Bongaigaon to a suitable interconnect point in Bihar through Bangladesh. Though the proposal is at a nascent stage, sources said a HVDC (high-voltage, direct current) line with a capacity of around 2,000 mw is being looked at. The new line is expected to wheel power from hydel projects proposed to be built in the northeast, some of which can also be shared with Bangladesh.This line would allow an easy tap-in or tap-off facility for both countries to feed -or plug into -each other’s markets. According to the Asian Develop ment Bank, interconnected networks increase the operational efficiency and reliability of existing national grids and encourage the development of new renewable power resources.Besides Bangladesh, India also exports power to Nepal and imports from Bhutan. A wider regional market with easy export and import options will help balance the output swing from the 175 mw of solar power capacity being pursued by India. The talks for enhanced interconnect capacity are well-timed with developments on the ground as power generation grew at more than 9% in the April-June 2016 period against the same period of 2015. Ryan Anderson Authentic Jersey
NTPC saves Rs 550 crore/month on coal rationalistion, import control
State-owned NTPCBSE -0.54 % has achieved savings of approximately 30 paise per unit – approximately Rs 550 crore per month – on account of coal rationalisation and reduction in imports of fossil fuel, Parliament was informed today. “NTPC has achieved saving of approximately 30 paise per unit (approximately Rs 550 crore/month) due to rationalisation of coal linkage and reduction of imports,” Power and Coal Minister Piyush Goyal informed the Rajya Sabha. Further, due to various efficiency measures, including reduction in grade slippage, specific coal consumption (coal consumed per unit) in the first quarter of 2016-17 has come down by 2.9 per cent as against the same quarter in the previous fiscal, the minister said. The minister further said the government has taken various measures in order to ensure synergy between power and coal sectors. The coal availability, he said, is regularly monitored at the highest level, resulting in increased supply of domestic coal. The blocks have been allotted to certain power utilities to improve domestic coal availability and 100 per cent crushed coal is supplied from Coal India. Coal India, he said, will supply 100 per cent washed coal of G10 grade and above from October 1, 2018, as per environment ministry guidelines. “The amount of coal imported during 2013-14, 2014-15 and 2015-16 was 166.86 mt (million tonnes), 217.78 mt and 199.88 mt (provisional), respectively,” he said. Le’Veon Bell Womens Jersey
Narendra Modi govt puts hefty $1 bn burden on ONGC, Oil India
Government-owned explorers ONGC and Oil India face an additional royalty burden of more than $1 billion after the Narendra Modi government decided that they would have to pay royalty to crude oil-producing states such as Assam, Gujarat, Andhra Pradesh, Rajasthan and Tamil Nadu at ‘pre-discount’ rates. “It has been decided that ONGC and Oil India will pay royalty to all similarly placed crude oil-producing states at pre-discount prices effective February 1, 2014, pending the outcome of the special leave appeal filed by ONGC before the Supreme Court,” said a petroleum ministry order dated July 15. This means ONGC and Oil India would have to pay royalty to the states based on their gross realisation on sale of crude oil and not on the net price. This is despite the fact that the shift from gross to net price for royalty was made in 2008, in concurrence with the petroleum ministry. The difference between the gross and net price is the subsidy burden borne by these upstream companies to compensate state-run IOC, HPCL and BPCL for selling sensitive petroleum products below market cost. Though the exact additional burdens on ONGC and Oil India because of the ministry’s stance are not immediately known, officials say their combined additional payout would be $1 billion. DK Sarraf, chairman and managing director, and AK Srinivasan, director (finance) at ONGC, could not be reached for comments, as both are travelling overseas. Thanks to the drastic fall in global crude oil price that reduced India’s oil subsidy substantially, in FY16, ONGC reported gross realisation of $48.26/barrel. After forking out for subsidy at $1.12/barrel, its net realisation stood at $47.14/barrel. In FY15, ONGC gross realisation was $85.28/barrel and after sharing $40.41/barrel towards subsidy, its net realisation dropped to $44.87/barrel. “We have decided Assam and oil-producing states will get additional royalty from ONGC and Oil India. Assam might get above R1,400 crore,” said petroleum minister Dharmendra Pradhan. ONGC and Gujarat are embroiled in a legal tussle over the calculation of royalty payments. In November 2013, the Gujarat High Court ordered ONGC to pay R10,000 crore dues to the state till September 2013 to make up for the royalty dues. The ‘maharatna’ PSU appealed in the Supreme Court against the Gujarat HC order and on February 13, 2014, the apex court stayed the high court order, but told ONGC to pay royalty at the pre-discount price starting February. In October 2003, upstream companies were directed to make good a part of the under-recoveries of oil-marketing companies. However, the Centre initially said the revenue of states in terms of royalty should not be affected by the discount offered to OMCs. Based on this direction, ONGC from April 2003 started paying royalty to the Centre for its offshore fields at the post-discount price, while for onshore fields it paid royalty on the pre-discount price. But ONGC realised that royalty payments to the states were in excess of the statutory limit of 20% of the price realised by the company, as mentioned in the Oilfields (Regulation and Development) Act of 1948, and in 2008 got the oil ministry agree to the shift towards net price for royalty to states. Aldrick Rosas Womens Jersey
Nitin Gadkari asks Tesla to choose India as its Asia manufacturing hub
Urging U.S.-based electric car major Tesla to make India its Asia manufacturing hub, Union Minister Nitin Gadkari has offered it land near major Indian ports to facilitate exports to South and South East Asian countries. Road Transport and Highways Minister Mr. Gadkari visited the Tesla factory near San Francisco and offered to promote joint ventures between the firm and Indian automobile companies with a view to introducing pollution-free road transport in India, especially commercial and public motor vehicles, an official statement said. Mr. Gadkari said the Indian government was committed to encouraging alternate pollution-free transport in the country by providing incentives to bio-fuel, CNG, ethanol and electric vehicles. Offers land “He proposed to the Tesla senior executives to make India their Asia manufacturing hub and offered land near major Indian ports to facilitate export of their vehicles to South and South East Asian countries,” Ministry of Road Transport and Highways said in the statement. Tesla senior executive admitted that their manufacturing hub has to be outside the U.S. for markets in rest of the world. They appreciated the Indian offer of cooperation which they said will certainly be considered at the appropriate time in future, the statement said, adding that the company assured him that India will definitely be a market for its next generation low-cost sustainable Model-3. “Replying to specific queries from the Transport and Highways Minister regarding manufacturing of electric trucks, buses and two wheelers, the Tesla team said they have future plans for trucks and pick-up vans but not buses and two wheelers,” the statement said. They evinced keen interest in knowing if there was any subsidy on electric vehicles in India, to which Mr.Gadkari asked Tesla executives to outline their plans.
‘Construction equipment sector seeing strong growth’
The construction equipment and earthmoving industry — traditionally seen as bellwethers of economic activity — has seen strong growth in the first half of this calendar year, an indication of optimism in business sentiment and a revival of economic activity, according to a top official at JCB India, one of the largest providers of such equipment in the country. “De-growth in the sector started in April 2011 and went on until September 2015,” Vipin Sondhi, managing director and CEO of JCB India told The Hindu in an interview. “Then October to December 2015 was a period of flat growth. In the last six months, January to June, the industry has clocked a growth rate of more than 40 per cent.” Business activity “People won’t buy the machines unless they are expecting to begin work soon,” Mr. Sondhi said. “This involves large capital investments. The actual digging of earth on the ground is a sign of business activity, not just new project announcements.” The first five months of 2016 recorded sales of 21,869 units in the construction equipment sector as a whole, according to industry data shared by JCB, which represents a growth of 47.6 per cent over the same period of the previous year. The growth in the sector accompanies an average 8.25 per cent growth over the same period in the cement category of the Index of Eight Core Industries as computed by the government. This is far stronger than the nearly flat average growth rate of 0.01 per cent seen in the sector in the January-May period of 2015, lending further weight to the assertion that the construction sector is seeing a revival. Optimism “There is a business sentiment of optimism, but it has not yet translated in all industries,” Mr. Sondhi said. “Some of the bellwethers have started moving faster. The heavy commercial vehicles sector has grown, as has the construction equipment sector.” However, the construction equipment sector is yet to recover to the highs of 2011, Mr Sondhi said. “The industry is likely to reach to that level by the next calendar year.” The sector sold 52,893 units that year, the data shows. Now that the infrastructure sector — roads and highways — has started growing, the economy needs sectors like railways, real estate, and irrigation to start firing, Mr. Sondhi said. “It is then steel and cement can pick up and the wheels of the economy can really start moving.” “But we need to be an investment-led economy,” he said. “Consumption is good, but is not enough for sustainable job creation.” Brian Urlacher Authentic Jersey
Restrict NH 169 width to 30 m, Rai tells NHAI
Dakshina Kannada district in-charge Minister B. Ramanath Rai on Saturday asked the National Highways Authority of India (NHAI) to restrict the width of National Highway 169 (Mangaluru-Solapura) between Mangaluru and Moodabidri to 30 m instead of the proposed 45 m, particularly in urban areas. Presiding over a meeting to discuss widening of the NH and land acquisition for the same here, Mr. Rai said that the reduction in width should be followed in Mangaluru, and from Gurupura Kaikamba to Thenka, Badaga Edapadavu. Mr. Rai also asked the NHAI not to acquire property belonging to Thodar Masjid and plan the alignment skirting it. Special Land Acquisition Officer Gayathri Nayak informed that about 448 acres of land, including 307 acres of private land, would have to be acquired for the project as per the preliminary notification issued on May 20. K. Abhayachandra Jain, Moodbidri MLA, B.A. Mohiuddin Bava, Mangaluru North MLA, zilla Panchayat president Meenakshi Shanthigodu, Deputy Commissioner A.B. Ibrahim and others attended the meeting. Frank Gore Womens Jersey
Govt. allocates funds for key infrastructure projects
The earmarking of Rs.50 crore by the State government for the airport extension of the Seaport-Airport Road is expected to provide the much-needed impetus to the critical thoroughfare that holds the key to decongesting the Edappally-Kundannoor NH Bypass and the Edappally-Angamaly NH 47 corridor. The Roads and Bridges Development Corporation of Kerala (RBDCK), which owns and maintains the road, is also expected to widen the Bharat Matha College-Collectorate Junction corridor into four-lane, as part of the project to decongest the road. The project is expected to cost Rs.28 crore. “We will take a call on how best to use the Rs.50 crore based on a Government Order that is awaited. We submitted detailed project reports to the government on the extension of the road. The extension is being carried out at a width of 45 metres, and a four-lane road is being built,” said a senior RBDCK official. The construction of the 5-km-long NAD-Asoka-Mahilalayam Road is expected to commence soon. The project is likely to cost Rs.280 crore. The total cost of extending the road from HMT Junction to the airport by 14 km is estimated at Rs.662 crore. Work is on to develop the 2.7-km-long HMT-NAD corridor. The funds allotted to widen the Thammanam-Pullepady Road has come to a total of Rs.35 crore, with the government sanctioning an additional Rs.10 crore recently. “The government had allotted Rs.25 crore three years ago. But this is hardly enough, since the total project cost hovers around Rs.200 crore, considering the cost of land acquisition for the 3-km-long corridor that will link Padma Junction with Chakkaraparambu on the Palarivattom-Vyttila NH Bypass,” said an official of the Kochi Corporation. Victor Antipin Jersey
Smart city project: Northeast wants 90:10 ratio in funding
Tripura Chief Minister Manik Sarkar has requested Urban Development Minister M. Venkaiah Naidu to share the investment in smart city projects for the northeastern states by adopting a 90:10 ratio — 90 per cent by the central government and 10 per cent by the state. Sarkar met Naidu on Friday in New Delhi and urged him to adopt a separate funding policy for the backward northeastern states, Tripura Urban Development Minister Manik Dey told reporters on Saturday. The present funding pattern for the smart city project is on a 50:50 basis between the central government and the states. “The Finance Ministry had issued a circular earlier that the 90:10 ratio norms would be followed in all central government launched projects,” Dey said. “Naidu remained noncommittal after Sarkar put up the proposal,” Dey said, adding that northeastern states are unable to bear the huge financial burden to implement the smart city projects. The minister said that other northeastern states have already made similar demands. Three cities in the northeastern region — Guwahati (Assam), Imphal (Manipur) and Agartala (Tripura), have been selected for the implementation of the ambitious smart city plan so far . Other cities of northeastern states that participated in the fast-track competition, included Shillong (Meghalaya), Aizawl (Mizoram), Kohima (Nagaland) and Pasighat (Arunachal Pradesh). These cities failed to fulfil the stipulated criteria and can submit their revised smart city plans for evaluation in the third round of competition likely to be held a few months later. Aiming at the all-round development of the infrastructure of the cities, the Smart City Mission marks a paradigm shift towards overall urban development in the country since it is based on a ‘bottom up’ approach with the involvement of citizens in the formulation of a city vision and smart city plans and the urban local bodies and state governments piloting the mission with little say for the Ministry of Urban Development. The Tripura Chief Minister also requested the Urban Development Minister to give relaxation in the centre-state funding pattern for northeastern states in the implementation of the Pradhan Mantri Awas Yojana (Urban), Atal Mission for Rejuvenation and Urban Transformation, Swachh Bharat Mission and Heritage Development and Augmentation Yojana. Louis Domingue Jersey
Tamil Nadu power minister to lead a team to Delhi to discuss UDAY
Goyal, who also handles the coal, new and renewable energy portfolios independently met Jayalalithaa at the state secretariat. During their meeting, Jayalalithaa reiterated to Goyal to consider her government’s request relating to joining the Ujwal Discom Assurance Yojana (UDAY) – a scheme for financial turnaround of power distribution companies. She told Goyal that she had already requested Prime Minister Narendra Modi, in her letter dated October 23, 2015 to consider certain requests of the state government to ensure that the state finances are not adversely affected, while taking over the debt of TANGEDCO- the power distribution company. She also requested that the Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) which are central public sector undertakings may extend co-operation by providing loans for both revenue and capital expenditure and also for the new power projects proposed by Tamil Nadu. She told Goyal that Tamil Nadu has an installed capacity of 7,600 MW of wind power and is in a position to sell wind power to other states who require to fulfill their Renewable Purchase Obligation (RPO). Jayalaltihaa reiterated that it is absolutely essential to provide a dedicated green corridor to export the surplus power to other states. Derrick Shelby Jersey
Essar to fully operationalise Tori, Mahan power plants
Essar Power plans to make its 2×600 MW Tori power plant operational by the next financial year as the company expects to secure new fuel through government’s upcoming coal linkage auction, a company spokesman told ET. The plant, which is 43 per cent complete, will be built at an investment of Rs 4,100 crore. “All approvals for the plant are in place and the company has also signed long-term power purchase agreements for the project with Bihar and Jharkhand,” the spokesperson said. The promoters of the company have infused close to Rs 1,500 crore as equity in the project. The current debt of the project stands at Rs 2,600 crore. The company is also in process of re-operationalising unit II of 2×600 MW Mahan power plant by November this year as it plans to secure coal through special forward e-auctions in the short term. For longterm fuel security, the company looks to make coal available from its Tokisud coal mine. “The restart of unit I has been possible due to the government making coal available through e-auctions and aligning coal prices to the current market scenario. Mahan plant has already secured over 12 lakh tonne coal through special forward e-auction of Coal India (CIL). Company will be participating in further e-auctions being done by CIL,” Essar said. Danny Woodhead Womens Jersey