HAL signs joint venture with Safran for helicopter MRO
Hindustan Aeronautics Limited (HAL) and Safran Helicopter Engines have agreed to establish a support centre in India for national and international rotorcraft customers. An agreement to this effect was signed on Monday by DK Venkatesh, Director (Engg, and R&D), HAL, and Bruno Even, CEO-Turbomeca, at the ongoing Farnborough International Airshow (July 11-17, 2016) in the presence of T Suvarna Raju, CMD-HAL and Philippe Petitcolin, CEO-Safran. This new centre will provide Maintenance Repair and Overhaul (MRO) services for Safran TM333 and HAL Shakti engines that powers HAL-built helicopters. Safran Helicopter Engines and HAL will provide their customers with a first-class service including optimized engine availability. With over 1,000 engines, including 250 TM333 and 250 Shakti, India’s armed forces are one of the largest operators of Safran-designed helicopter engines. Shakti is the Indian designation for the Safran’s Ardiden 1, co-developed with HAL and produced under licence. T Suvarna Raju, CMD-HAL, said, “The JV reflects the close relationship established over many years between HAL and Safran Helicopter Engines. It places both partners on an ambitious path towards world-beating customer support in the field of engine MRO. The joint venture will provide the impetus for the ‘Make-in-India’ initiative since around 1000 Shakti engines are likely to fly in the coming years”. Serge Maillé, Safran Helicopter Engines Executive Vice President for Strategy and Development, commented “this joint venture marks a new step in the long-lasting and fruitful partnership between Safran Helicopter Engines and HAL. We are extremely proud of the continued confidence placed on us by HAL. Together we are committed to delivering world-class support to our customers, both in India and throughout the region”. Shakti is fitted to HAL’s ALH-Advanced Light Helicopter (Dhruv) and has been selected to power the HAL-designed Light Combat Helicopter (LCH). The new Light Utility Helicopter (LUH), a three-ton single-engine chopper under development is also fitted with a Turbomeca engine. Denzelle Good Authentic Jersey
Private players will be able to exit PPP projects in all sectors
The revised framework for public private partnership (PPP) projects in India will offer an exit options for private players in all sectors, including power, railways and SEZs, among others. At present, only road projects under the PPP model have an exit clause. PPPs, awarded through a competitive bidding process, are typically very high-value contracts, often with huge capital and operating costs, making it difficult for developers to cope with financial losses. Besides, difficulties in land acquisition and environment clearances often lead to delays and litigation. In some cases, PPP projects can even extend up to 30 years. According to the Centre for Monitoring Indian Economy (CMIE0, the total value of stalled projects stood at around ?11.2 lakh croreas of June 30,2016, with 75% of the projects belonging to the private sector. The Centre last year allowed developers to exit highway projects two years after completion. “There is no question of stalling the PPP model… we are just revising it,” said a senior finance ministry official who did not wish to be identified. “The PPP model has been a success. We admit certain projects have landed problems but those were related to unforeseen events such as availability of coal. In the revised model, we will plug those holes and ensure that in cases of stalemates due unforeseen events, private players can have an easy exit and bring in fresh blood without hindering the project execution .” Apart from the exit clause, the government has also asked the PP P cells in various ministries to study the reasons behind delayed projects. “Alist of such projects is being made, and the reasons for the delay will be analysed,” said the official quoted earlier. According to sources, once the reasons are analysed and solutions provided, the Project Monitoring Group will start tracking the progress of the projects. “The concept of allowing changes in the PPP contract to aid exit of private players is underway in the road sector. The power ministry has started experimenting with it ,” another finance ministry official said. In fact, the ministry has identified hydroelectric projects in the north-east, where it will allow private players to exit, a source said. The Vijay Kelkar panel report on the PPP model for infrastructure development, released last year, had also suggested that the private sector needs to be protected in case of “abrupt economic or policy changes.” Meanwhile, minister of finance for state Arjun Ram Meghwal on Sunday said the government can use the PPP mode to optimally utilise idle assets of public sector units to promote skill development and generate new jobs. Trey Hopkins Womens Jersey
Patil hopes to clear key infrastructure projects
Chandrakant Patil, a trusted aide of BJP president Shah, has taken giant strides with chief minister Devendra Fadnavis allotting him the crucial revenue portfolio during the state cabinet reshuffle. Moreover, Patil has also retained the public works as well as revenue and rehabilitation departments. The move to club the revenue and PWD ministries is aimed at pushing pending infrastructure projects. The state government has so far announced numerous projects such as widening roads and converting these into national highways. It is also getting investment from the railways for laying new rail lines. With Patil holding both the portfolios, expectations among stakeholders are high as far as speedy clearances of land acquisition and pending proposals are concerned. Speaking to TOI, Patil said, “It is true that the public works and revenue departments work closely. I will have to give justice to the requirements and procedures of the respective departments. My priority will be to work harder so that orders are issued at the earliest. If I can start a sizeable number of projects within the next six months, the change should be felt by May 2019. The change would be in terms of easy commutation, good experience while driving, speedy movement of goods and other services among others. I will use this opportunity to achieve the targets.” Moreover, Patil’s proximity with Shah and Prime Minister Narendra Modi can also help in getting clearances for major projects. A retired state government officer said on the condition of anonymity, “The only problem with Patil holding both the portfolios would be his availability. Both the ministries are known for heavy workload. The minister needs to give extra time when it comes to tricky issues. It needs complete attention to handle things delicately. Land acquisition has become a sensitive issue as the existing government does not take land owners into confidence. Moreover, the overall treatment lacks basic decency in terms of discussions and negotiations.” “People should be aware of the people’s basic rights. Losing a piece of land or entire land forever will be a major shock for them. In such situation, Patil will have to use his all skills. Besides, people working in both the departments will also have to carry out negotiations for major land acquisition in the state,” the retired official added. A lot in the bag for Patil * Conversion of 12,000km-long roads in state into national highways * The state government has already bagged investment projects worth Rs 8 lakh crore through the Make In India drive, which would need huge land bank * The government is hunting for huge land in Konkan for setting up the country’s biggest oil refinery at an investment of Rs 1 lakh crore * Jaitapur nuclear power plant in Konkan is already stuck due to opposition over land acquisition. Though Shiv Sena has not yet given its green signal, Patil will have to use his skills to get it through * Pune-Miraj-Londa railway line doubling is underway for which additional land is required * Karad-Chiplun and Kolhapur-Vaibhavwadi fresh railway lines have been proposed. Land acquisition and getting clearances from the environment ministry will be the key aspects. Tyler Bozak Authentic Jersey
Jharkhand to hike power tariffs
Jharkhand Urja Vikash Nigam Limited (JUVNL) Chairman-cum-Managing Director RK Srivastava today said electricity tariffs will be hiked to meet required resources for maintaining power supply in the State. During his maiden visit to Dhanbad, Srivastava said the power system was reeling under a pool of problems. “To remove the hurdles and to ensure 24×7 power supply in the State, there is need of resources to improve infrastructure, which can be generated only through enhancing power tariff,” he said. Srivastava said JUVNL purchases power at ?5 per unit and supplies it at ?2.20. Quinton Jefferson Womens Jersey
Reliance Power’s Rs 14,500-crore loan: It’s Goyal vs Goyal on mortgage of coal blocks
Can Reliance Power be allowed to mortgage its coal blocks as collateral for a Rs 14,500-crore loan? The Coal Ministry under Piyush Goyal said no, underlining this would “vitiate the bid document and bidding process”. A week later, the Power Ministry, also under Goyal, said it didn’t share the Coal Ministry’s view. With Coal and Power sticking to their positions, Goyal widened the debate to consider if all captive power projects, not just Reliance, could be allowed to use coal mines as collateral — last Tuesday, the Mines portfolio was also handed to him in the reshuffle of the Council of Ministers. In the first week of June, Goyal directed “whether UMPP (ultra mega power project) or otherwise, the mortgage of mines/ mining lease and whether bidding condition permit, it may be put up to an IMC (inter-ministerial committee) of Power, Coal, Banking and Law under the chairmanship of Power and give its recommendations within 30 days.”
Maharashtra may re-join UDAY for financial benefits; new Cabinet decision likely soon
The Maharashtra government could modify its Cabinet decision to join power distribution companies’ revival scheme UDAY only for operational benefits and may now include financial parameters also, power minister Piyush Goyal today said. Goyal said the state has now shown interested in the financial benefits of the UDAY scheme and could soon pass another Cabinet decision to re-join the discom revival scheme. The minister said while that state did not have any major financial losses, it could still get benefit to the tune of Rs 1500 crore it joins UDAY for financial efficiencies. The UDAY scheme envisages the respective states of loss making dicoms taking over 75 per cent of the SEB debts of Rs 4.3 trillion into their books but will not be calculated as their fiscal deficit. This involves taking over 50 per cent of the short-term liabilities of their respective discoms in FY16 and remaining 25 per cent in FY17. The scheme was launched on November 20 last year to help loss-making power distribution companies in the states to come out of a debt trap of Rs 4.3 lakh crore by March 2016. So far, 19 states have given their approval to join the scheme and 10 states, namely, Rajasthan, Uttar Pradesh, Chattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand and Jammu & Kashmir have signed MoUs for the same. Noel Acciari Womens Jersey
Better transmission, generation cuts power cost for South on IEX
With the increased integration of the southern power grid with other regional grids, the cost of electricity on the IEX has hit a low, auguring well for industry and power distribution companies. Also, the gap in price between the southern grid — where the rates have been typically higher — and the other regions has narrowed. On the exchange earlier this month, the prices in the southern grid matched those in other grids. For instance, in the first week of July the Average Clearing Price (ACP) on the IEX for the southern region was ?2.17 a kWh against the Market Clearing Price (MCP) of ?2.14 for the other regions. Between January and July 2016, the ACP was ?2.91 against an MCP of ?2.44. The gap was much higher last year. During January to July 2015, the MCP was as low as ?2.72 a kWh. But the ACP was much higher in the southern region at ?3.90 for Andhra Pradesh, Telangana and Karnataka, and ?5.11 for Tamil Nadu and Kerala. Now, even within the South, the price differential is no longer relevant as the region is well integrated and prices are uniform, sources familiar with the development said. According to industry sources, apart from the improved transmission infrastructure, the lifting of constraints on open access by Tamil Nadu and Karnataka has led to increased availability of power. Producers in both States can now sell outside the State. Though the corridor availability is still restricted, it is better than last year. In May 2016, the West and East to South corridors were available for almost 50 per cent of the time for the exchange market; in June, the corridor availability increased to about 85 per cent, sources said. Open access consumers in the southern States can save up to 30 per cent of their power procurement cost on the IEX platform. Even distribution companies can opt for sourcing power from IEX, rather than go in for short-term deals as prices are at such lows, sources said. T. J. Oshie USA Jersey
UDAY scheme: Jharkhand SEB backslides on dues
Jharkhand’s electricity board had to clear most of its dues to Damodar Valley Corporation (DVC) before it got its loans restructured under the UDAY scheme, but has since accumulated fresh dues to the utility, putting a question mark on the scheme’s ability to salvage the debt-ridden entity. DVC has already started regulating supplies to the state electricity board DVC chairman and MD Andrew WK Langstieh said the SEB had, prior to UDAY, owed about R7,000 crore to DVC, a joint venture of the central, West Bengal and Jharkhand governments. In order to sign up for the UDAY scheme, the SEB had paid the utility Rs 4,770 crore in September 2015, but has since piled up fresh dues of Rs 600 crore. Jammu and Kashmir was the only state other than Jharkhand that had to clear dues (Rs 2,140 crore) to central power utilities before climbing aboard the UDAY bandwagon. So far, 10 states, including those with heavily indebted discoms like Uttar Pradesh, Haryana and Rajasthan, have signed the UDAY MoUs, under which the states, helped by a relaxation of the fiscal road map compliance by the Centre, were to issue bonds to clear half of their respective discom’s debt in 2015-16 and an additional 25% in the current fiscal. To help other states — notably Tamil Nadu — that could not join the scheme due to regulatory issues, the Cabinet last month extended the deadline for joining the debt recast scheme to end-March, 2017. The Jharkhand SEB was unbundled into four different companies as part of the UDAY preparedness in September last year. However, Jharkhand Bijli Vitaran Nigam, now the nodal agency to buy power from DVC, has piled up Rs 600 crore dues in 10 months of operation, a DVC official said on condition of anonymity. Although Jharkhand chief secretary Raj Bala Verma is supposed to hold discussions with the DVC CMD on resuming regular supplies, DVC has already taken a stand that power would be supplied only against payments made. Langstieh said that Jharkhand was making part payment of its bill every month but according to a DVC official even that mode of payment has already started hitting the cash flow of the company. Jharkhand accounts for more than 20% of DVC’s total revenue from power sales and if the latter had continued unregulated supplies, the mismatch between the net sales figure and the actual realisation would have grown. DVC has already offered to sell a 74% stake in the 2×600 MW Raghunathpur thermal power project to Neyveli Lignite because of its balance sheet problems. While Langstieh says that the value of the stake would be determined by the Central Electricity Authority factoring in the tariff realised, another top official felt that DVC might have to sell the stake at a loss. The Raghunathpur plant had cost DVC Rs 8,000 crore at a 72:28 debt equity ratio. But with no power purchase agreement and inadequate return on investment, it is becoming a burden for the firm to carry on with the fixed costs. DVC last year approached the Reserve Bank of India for a Rs 30,000-crore debt restructuring since its debt servicing capacity had come under severe pressure with low returns on investment. Out of its 6,300 MW total capacity, 1,500 MW is lying idle. Bobby Hebert Jersey
Airports to be ranked on passenger feedback
Passengers’ rants or raves about services provided at India’s major airports could soon actually make an impact with the airports’ economic regulator putting in place a new system to monitor the ground operations and service standards. The carrot for the airport operators: those with high ratings for services could get to charge higher tariffs as an incentive. The Airports Economic Regulatory Authority (AERA) that came into existence in 2008, has so far been focused on its responsibility of setting airport tariffs, but will now assess their performance on the ground for 16 major airports as well. The regulator will rate airports based on parameters such as cost efficiency, entry time, security clearance, check-in and boarding facility, among other services at airports. A critical component of the rating would be passenger feedback. “As a part of our mandate, we have a major item we have not looked at so far which is setting and monitoring performance standards of airports. We want to make airports attractive and efficient and plan to monitor the service levels of airports,” AERA Chairman S Machendranathan said. Josh Bynes Womens Jersey
PIL filed in Delhi HC against arbitrary airfares
A plea was filed on Sunday in the Delhi High Court for capping airfares across the country so that customers are not fleeced arbitrarily by airlines. The PIL urged the court to direct the authorities to frame “guidelines so as to put a cap on airfares and prevent the private airlines here from charging arbitrarily, irrationally and exorbitantly for air flights”. Advocate Amit Sahni, in his plea, which is likely to be heard next week, stated that he had filed an RTI application seeking information regarding airfares and Ministry of Civil Aviation replied that these are not controlled by the government. Citing recent Jat agitation in Haryana, which reportedly forced some passengers to pay over Rs 90,000 for their journey, the plea said if there would have been a cap, the airlines could not charged such huge amount. “The private airlines companies have fleeced people even in emergent situation and government has stood as a mute spectator regarding the same,” the plea said, adding there is “urgent need to regulate the upper limit of airfares so that the private airlines could not fleece their customers as per their own wish.” Anthony Tolliver Jersey