Adani, Essar get DRI notice for overvaluing imports of cap goods
The Directorate of Revenue Intelligence has issued show-cause notices to Adani Group and Essar group companies for inflating the value of capital goods imported for power plants. DRI is also believed to have prepared another show-cause notice, which is expected to be issued in the next two days to ADAG’s Reliance Infrastructure for allegedly inflating the value of coal imports. Officials said the overvaluation in the case of Adani and Essar was Rs 800 crore and Rs 500 crore, respectively. In the case of ADAG, the overvaluation is pegged at Rs 350 crore. TOI was the first to report on the alleged violations in December 2014. DRI has been investigating 40 power generating companies and traders for the past couple of years. According to DRI, some prominent public and private sector companies inflated the import value of coal beyond that prevailing in the international market. Some companies are being probed for allegedly inflating the value of imported capital goods. According to DRI, power tariffs were fixed based on the inflated values, which resulted in consumers paying higher charges. DRI has alleged that Adani Group and Essar have imported capital goods through intermediaries in tax havens. It claims that the companies’ objective was to siphon off money abroad while availing higher power tariff compensation based on artificially-inflated costs of imported coal or capital goods. While the coal was directly shipped from Indonesian ports to importers in India, the import invoices were routed through one or more intermediaries based in a third country such as Singapore, Dubai, Hong Kong and British Virgin Islands. These intermediary firms appear to be either subsidiaries of Indian importers or their front companies. This was the modus operandi used in the import of capital goods too. Investigations into overvaluation by other companies are still in progress. Anthony Brown Authentic Jersey
No transmission line, Spiti’s mega solar project in limbo
High cost involved in transmitting the power produced has almost put the 1,000 MW solar park project of Spiti valley in Lahaul Spiti district on back-burner. Most difficult challenge for the state government is to lay a transmission line to Spiti to evacuate the power from Himalayan region. Earlier, similar solar project in Ladakh was shelved due to same reasons. In 1997, state government had decided to lay 150km transmission line from Karchham in Kinnaur to Kaza in Spiti. Till date, an amount of Rs 50 crore has been spent on the project but the transmission line is still far from completion. A senior government official, requesting anonymity, said it would take another 20-30 years to lay new line to evacuate power. Sources said Power Grid Corporation of India Limited had termed the Ladakh green corridor project economically unviable. They said if 5,000 MW solar project in Ladakh could be unviable due to high cost of per unit production then similar conditions apply for Spiti where a new transmission line needs to be laid before executing the project. Himachal Pradesh State Electricity Board Limited director R K Sharma, who was earlier associated with project, said evacuation of power from the proposed 1,000 MW solar project in Spiti is a big issue. He said on the issue of laying transmission line to Spiti, Central Electricity Authority and Power Grid Corporation of India Limited has to take the final call. Lahaul Spiti MLA Ravi Thakur said that project is very much feasible provided Power Grid lays the transmission line as 2,500 bighas of land has already been identified for the project. Sources said that the proposed solar park would require around Rs 8,000-9,000 crore for completion. Germany has agreed to provide loans worth 125 million euros (about Rs 915 crore) for financing two green energy projects in Himachal Pradesh and Andhra Pradesh. Of the total amount, 57 million euros would be given to Himachal Pradesh. Cameron Meredith Womens Jersey
Delay in tariff order can unplug Discoms’ finances
The slow progress in issuing electricity tariff orders for 2016-17 is becoming a major concern for power generators, worried about the load on the financial health of the State distribution companies (Discoms). “Inadequate tariff increase and delay in tariff revision will render bootless the Centre’s attempts to turnaround Discoms through the Ujwal Discom Assurance Yojana,” said a senior official of a private power generator. While 11 States are yet to issue tariff orders for 2016-17, 16 have but with most effecting only a modest increase. “Due to delayed tariff orders, the financial health of the Discoms has further deteriorated. Discoms cannot procure power, resulting into non-availability of supply to consumers and poor service,” he said. So far, States including Tamil Nadu, West Bengal, Assam and Tripura have not filed a tariff petition for 2016-17. In Delhi, the three private sector Discoms — Tata Power Delhi Distribution Ltd, BSES Rajdhani and BSES Yamuna — have filed the tariff petition but the Delhi Electricity Regulatory Commission is yet to. Similarly, in Maharashtra, Haryana, Rajasthan, Kerala and Jammu & Kashmir, tariff orders are yet to be issued despite completion of the public hearing process. Even the increase in tariffs has been small in most of the 16 States that have revised electricity rates for 2016-17. While in Bihar and Odisha there was no increase, Punjab and Gujarat reduced tariffs by 4 and 10 paise a unit, respectively. Uttar Pradesh, Telangana and Karnataka have increased rates by 4-9 per cent. The exception has been Chhattisgarh, which has raised electricity tariffs by 16 per cent for 2016-17. Rating agencies’ concerns Credit rating agencies have expressed concern over the delay/non-filing of tariff petitions. In a recent report, Fitch said: “For the majority of States, tariff increases are required to reach breakeven status even after the other savings to which they are committed are considered. “A meaningful improvement in Discoms’ economics will especially benefit power generation companies via higher utilisation and timely clearance of dues.” ICRA’s Sabyasachi Majumdar said in a recent report that the delay in issuance of tariff filings and tariff orders may be attributed to the UDAY scheme “which resulted in some uncertainty about quantifying the impact of the scheme on the cost structures of Discoms.” Seth Joyner Womens Jersey
Increased smart grids adoption multiplies hack risks says Technavio
With wider adoption of information technology in power distribution networks, or smart grids as they are commonly called, the possibility of rogues taking control of a city’s power network or any power plant connected to these smart systems also rises dramatically says experts. According to Technavio, a leading market research company, a few years ago, adversaries took control of systems that controlled critical operating parts of a facility involved in enriching uranium in Iran. They were then reprogrammed, heavily damaging the facility, while readings on control system displayed that the equipment was operating under normal conditions. Smart grids offer grid operators greater control of the functions of the power network for improving its reliability allowing enhanced monitoring and efficiency through information exchange. Composed of various integrations of information technology and operation technology systems to manage different functions, smart grids offer various access points for adversaries to breach its security systems said Technavio. Though the integration of IT systems offers several benefits such as remote monitoring and automation of controls across various geographical locations, it also opens up new vulnerabilities for attacks. This in turn, will be one of the major factors that will fuel the demand for the smart grid security systems market during the forecast period. It has predicted, that the threat potential of smart grids will fuel global smart grid cyber security market growth. This security market is expected to grow steadily at a compounded annual growth rate of almost 10% by 2020. Cloud-based smart grid applications offer organizations several features to reduce operational costs and also to centralize their resources. However, cloud-based applications are hosted on the Web, which makes these applications more vulnerable to cyber-attacks. Harold Carmichael Jersey
Narendra Modi government looks at ashrams to harness solar power
The sun may be nature’s measureless bounty, but the government feels a little help from spiritual gurus can go a long way in making mortals realise its value. In a bid to promote its target of creating 40,000MW of rooftop solar power capacity, the Union new and renewable energy ministry is roping in religious and interfaith gurus to demonstrate the virtues of green energy and set an example by ensuring that their ash rams are solar-powered, a top government official said. According to new and renewable energy secretary Upendra Tripathi, the gurus will act as spiritual partners of International Solar Alliance, a global grouping of over 100 ‘sunshine countries’ between the tropics of Cancer and Ca pricorn that was launched by PM Modi at the Paris climate summit last December. “Spiritual and interfaith gurus have a large number of domestic and overseas followers who visit their ‘ashrams’ (hermitages), or meditation centres, in big numbers. So, we feel the gurus are ideally placed to showcase and demonstrate the values and virtues of solar energy to a global audience,” Tripathi said. According to the government, in May, Radha Soami Dera in Amritsar became the world’s largest single rooftop solar power facility. The dera’s Rs 140 crore solar energy system, spread over more than 80 acres of rooftops, can generate an estimated 19MW of power. Not all ashrams are as large or resourceful, but even smaller ones with a few acres of land can use some practical applications of solar energy. Besides, solar power projects require open spaces, available in ashrams, for making best use of photovoltaic panels, which convert sunlight into electricity. No wonder a data bank of at least 100 large ashrams is being drawn up for seeking their cooperation and commitment for setting up solar power projects in return for a ‘commitment certificate’ that will recognise their contribution to the solar cause. A global conference of interfaith leaders is also on the anvil to showcase the commitment. “If we can get commitment of even 1MW of solar capacity from each ashram, it will be a big leap of faith and encourage others. Solar projects will help ashrams reduce their power bills and they can also sell electricity to the grid,” Tripathi said. The launch of the ‘International Interfaith Solar Alliance’ during the World Culture Festival organised by Sri Sri Ravi Shankar’s Art of Living in Delhi in March is a step in this direction. The alliance pledged to cooperate among interfaith organisations globally and promote solar energy in their institutions as well as create awareness about renewable energy. The government has set an ambitious target of creating 175GW of solar energy capacity by 2022, including 40,000MW rooftop solar power capacity, as part of the strategy to reduce the country’s carbon footprint. Paul Martin Jersey
Piyush Goyal says E-commerce will not affect small-scale businesses
Assuring small-scale businessmen that the era of e-commerce would not affect their trade, Union minister Piyush Goyal today said the importance of corner stores and small shops would only increase in the coming days as compared to big shopping malls. Citing examples of America and Europe, the Union Minister of State for Power, Coal and New and Renewable Energy said the relevance of corner stores was increasing and big malls were becoming “unviable”. Therefore, he said small-scale businessmen should not have any concern. “The relevance of small shops would not lessen. In America and Europe, the number of corner stores is increasing whereas the big malls are being shut down. In the era of e-commerce, the relevance and importance of small shops would only increase,” Goyal said at the 3rd Yuvak-Yuvti Parichay Sammelan of Shri Agrawal Parmarth Seva Samiti here. “Delegations come to us to express concern over the impact of supermarkets and e-commerce on small businesses but I do not see any concern because I understand that supermarkets are now becoming unviable and e-commerce will only benefit small businesses. Corner stores and shops will continue to be relevant,” he said. As compared to supermarkets, goods purchased from small shops are cheaper. The customer not only has to pay more for the goods but also has to spend on parking, food etc. at the malls, the Union minister pointed out. On another note, Goyal said politics is a “means to serve the society”. He said there were certain customs in the society which needed to be “eliminated”. “The time has come to link the community with active politics and serve the society as a whole. Members of the community have the capability to serve it with honesty and more and more people should come forward to do that through politics,” he said. The Union minister lamented the fact that even after 70 years since Independence, nearly 20-22 crore people in the country were without electricity. “Crores of students are deprived of good education. They are forced to drop out and work at farms. The reason behind this is that good people did not join politics. I want to provide electricity to every household. This too is a community service in a way,” said Goyal. He said in the coming years, the eastern states would get Rs 3.25 lakh crore from the auction of coal blocks and the money will be spent on public service and welfare of people.
Centre sanctions Rs 200 cr for power infra to Maharashtra
The central government has sanctioned about Rs 200 crore for upgrade of city power infrastructure. MSEDCL had sent the proposal months ago under Integrated Power Development Scheme (IPDS). The upgrade is necessary for catering to the growing electrical load of the city. It will also reduce the number of breakdowns and voltage fluctuations. Five new substations will be built using these funds. The locations are Deekshabhoomi, Khamla, Dharampeth, Kalamna and Subhan Nagar. The first two are in Congress Nagar division, which comes under MSEDCL while the remaining three are in the franchisee SNDL area. Two transformers of 10 MVA capacity will be installed in MSEDCL substations while only 10 MVA transfomer will be installed in the remaining three. One 10 MVA transformer will be installed in the existing IT Park substation of MSEDCL. Other than the substations, large number of cables overhead as well as underground will be laid under the project. New distribution transformers will also be installed. Most of the overhead cables will be air bunched (AB) type. These cables, although far costlier, are installed as hooking is not possible through them. High voltage distribution system (HVDS) cables will also be laid in the city. The tender for the substations has already been floated while that of cables and transformer is under process. Luke Falk Womens Jersey
Bills inflated as discom staff ‘fail to read meters’
Consumers have complained of having been issued ridiculously high power bills this cycle, which discom officials claim can be blamed on linemen’s ‘laziness’. Daskshin Haryana Bijli Vitran Nigam has said it has received complaints from consumers, most of which are in the new city, that their meter readings as per bills do not correspond with thier usage, and the amount hence calculated is inflated. “My bill for the month of June and July has come to be Rs 31,500 which is ridiculous given that both my wife and I are working and are out most day and both our kids go to school,” said Amit Agarwal, a resident of Malibu Towne, a township on Sohna Road. For some residents, a two- to three-fold jump has been recorded, without substantial change in consumption patterns. “My average daily consumption was 9-15 units between 26.9.2015 and 26.05.2016. It shot upto 35 units/day between 26.5.16 and 26.7.16 despite no change in usage pattern,” said Ram Mohan, also a resident of Malibu Towne. The residents approached their respective circle offices for an explanation, however, nothing came of it. Some were, in fact, told the bill has increased due to the increased usage of air conditioner this season due to humidity. Consumers have been left clueless by the the lack of communication from sub divisional offices. The residents, instead, argued that if that were the case, bills would have spiked proportionally across the city, instead of a selected few. “I agree summer months require more AC usage but the units consumed were beyond expected calculation. We all try to keep a slight record or check on our usage, and bills go up or down. However, so many consumers cannot be wrong about the same thing at the same time,” said Sardar Gurviner Singh, a resident of Sector 52. Officials at DHBVN claimed that the discrepency has taken place because of the laziness of their technical staff who is supposed to take readings. The said the linemen did not actually take readings out of ‘laziness’ and generated random readings averaging the previous months’ consumption. Consequentially the discom ended up generating random power bills basis the average consumption. “Our staff that is supposed to take the reading used to avoid going to the field and give a reading averaging the previous month’s bill which has caused a backlog of unpaid consumption,” said a senior DHBVN official. He added that department has now taken it up with their staff who will be now taking regular readings not causing such problems in the future. Adam Boqvist Jersey
Industry can return to Singur: Bengal Power Minister
Among the decade-old unused structures on the 997-acre abandoned Tata Motors plant site in Singur stands the transmission and distribution towers built by the West Bengal government to supply power to the proposed factory. Announcing the road map for implementing the Supreme Court order on giving physical possession of the land back to the villagers, Chief Minister Mamata Banerjee said on September 1 that the power plant spread over 40 acres of land would have to be dismantled. At a time when work is going on in full swing for land-plotting on the site, the State’s Power Minister, Sobhandeb Chatterjee, said the power plant would be rebuilt in nearby areas, kindling fresh hopes of industry coming to Singur. “I have told officers that the machinery relating to the transmission towers should be carefully removed. We have discussed with district administration availability of land near the project area,” Mr. Chatterjee told The Hindu. “The stations are reusable, we have to make power stations in this area only,” he said, adding that Rs. 80 to 85 crore had been spent building this power infrastructure. The Power Minister is among those senior Trinamool Congress leaders who did not rule out industry returning to Singur. “If the people of Singur want industry and they tell that to the Chief Minister, industry will be set up here. It was for the people that she [Mamata Banerjee] fought such a long battle,” Mr. Chatterjee said. Since the Supreme Court verdict of August 31, at least one State Minister is visiting the site every day to take stock of the work. Garret Sparks Womens Jersey
‘APEPDCL aims to provide uninterrupted power supply’
Mudavatu M Nayak, chairman and managing director of Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL), has several plans up his sleeves to transform APEPDCL into one of the best discoms in the country. A graduate in mechanical engineering from Andhra University, Nayak joined the Indian Administrative Service in August, 2005. Before he took over as the CMD of the APEPDCL in July, Nayak served as the district collector of Vizianagaram. In an interview with V Kamalakara Rao of TOI, Nayak speaks about his plans to develop APEPDCL and protect the interests of its over 50 lakh consumers. What’s the current status of the APEPDCL? We have reduced the transmission and distribution losses. The sale of meters is up by 84%. We have strengthened the network system. It has surplus power, and ranks among the best discoms in the country. However, there is a gap between the consumer and the service provider. We will reduce this gap. The services will be streamlined. The toll free number 1912 will be strengthened. A dedicated ADE-level officer was appointed to handle consumer grievances. There are interruptions in power supply. This is due to maintenance of power lines. What are your plans to reduce interruptions in power supply? The discom has installed equipment to prevent interruptions in power supply. We identify outage feeder on a real time basis to improve power supply. We have also planned to replace the existing ordinary conductors by advanced imported covered conductors. It will reduce power supply interruptions. We will implement this on a pilot basis in Visakhapatnam. Are the applications for new connections cleared promptly? Yes. I noticed several applications for new connections pending with us. We are now attending to them. Some of the applications were kept pending for technical reasons. What is your main objective? My plan is to see all APEPDCL consumers get uninterrupted and quality power supply. We will achieve this. What are the core areas before you? The core areas are better services to consumers, strengthening of power supply network and infrastructure and improving the quality of our staff. Are any new ventures or projects coming up soon? We have planned to install 146 sub-stations in next 18 months. This will reduce voltage fluctuation and power interruptions. We have proposed indoor sub-stations in urban areas including Visakhapatnam and outdoor sub-stations in rural areas. Infrared meters will also be installed in next three months. Are there any information technology-enabled projects? Supervisory Control and Data Acquisition (SCADA) is being planned in sub-stations. It works on IT. Smart grids and smart meters are also planned. We will install smart meters in 1,000 houses on pilot basis. Remote-operated agricultural pump sets are also part of our plan. Do you have any ‘outsourcing’ plans? We will extend all our services through Mee-Seva centres. Consumers need not approach us for any service. They can go to the nearest Mee-Seva centre. This will reduce the burden on our staff. It will also help the consumers. We are also planning to launch a pilot programme of door-to-door collection of electricity bills at Rajam town in Srikakulam district. We are planning to use the Kaizala App, which helped government officials for group communication during the Krishna Pushkaram. The Kaizala App can help my staff too. Any plans to use social-networking platforms? Presently, we are not on Facebook and Twitter. We will explore these platforms too. What is present status of underground power supply network project for Vizag city? We will shortly go for tenders for the first phase of the project aided by the World Bank. What steps do you plan to take to check corruption? Corruption prevails everywhere. I hope the IT-enabled smart systems and awareness among the consumers about the ill effects of bribe will bring down corruption. We take action whenever we receive complaints from consumers. Tommy McDonald Authentic Jersey