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POWER SCENARIO
Power woes
Lack of power and inadequate distribution infrastructure are costing businesses in low and lowermiddle-income countries dear. Losses due to electrical outages, measured as a proportion of
annual sales, are the highest in South Asia (6.5%)...
impetus the industry is focusing on or the govern-ment is trying, we shall soon have more
manufacturing companies coming to India, he said.
Goyal said India will not have a single incandescent bulb in the country, and hopefully no CFLs
either, in 3 years. I am talking about 3 years replacing 7 years, 770 million LED bulbs in peoples
homes and just the programme we are looking at will save 100 MU of energy consumption - that is
10,000 crore units of electricity, and the benefit goes straight into your pocket, he added.
Goyal also reiterated that India has around 18,500 villages that are still to be electrified. In 1,000
days, we will have a situation where all 597,000 villages will have energy access. We have
allocated central funds for it, he added. He said that the government has taken a pledge to
provide 24x7 power, which is the right of every citizen and will be taken up as a mission. I assure
that every household will get energy. Especially the eastern part of India has been deprived of their
rights. It has to be a shared responsibility that people staying in forests, tribals, villages in UP and
Bihar have access to these basic amenities. For any development, I believe it is important to have
electricity. You cant have huge investments and say wait, youll have to wait until electricity is
made available to you, Goyal said.
LiveMint; September 1, 2015 (Edited)
Dr. V.K. Saraswat, Member, NITI Aayog, said that the county was dealing with the issues of
depleting resources and growing energy demand. Also, India was looking forward to becoming a
developed nation, which meant that energy demand would increase, making it imperative to
increase the share of clean energy and use of carbon efficient fuel for sustainable growth. Here,
IESS would become an effective tool for understanding implications of the choices made.
Dr. Bibek Debroy, Member, NITI Aayog, said that IESS would soon be available as a mobile app.
IESS would allow sensitivity analysis with its contingent of future assumptions. The tool provides
hundreds of scenarios with different combinations of levels/efficiencies of energy demand and
supply sectors, enabling to define the future energy consumption.
The Financial Express; August 29, 2015 (Edited)
RITWIK MUKHERJEE
Kolkata: The WB government is drawing up a strategic business plan and road map to overhaul the
power sector. The blueprint being developed by the West Bengal Electricity Regulatory
Commission, focuses on distribution and transmission, standard of performance and consumer
services, renewable energy and energy conservation and use and application of IT. The objective of
the strategy paper is to address a number of issues like poor quality of power in a number of areas,
wide voltage fluctuation and tripping of lines due to rain/wind, break-down of lines and equipment
causing frequent outrages in supply and high AT&C loss. It will also discuss weak distribution
network, differential tariff, gap in peak and off-peak demand, fuel availability and quality, poor
operating practice and substantial commercial loss, Rabindra Nath Sen, chairperson, WBERC, said.
Financial Chronicle; September 2, 2015 (Edited)
which sold the entire equity shareholding of Sasan Power Ltd to RPL, purchase the entire
shareholding in SPL, along with all its assets and liabilities from RPL," said the letter. The company
has filed a case against the ministries of coal and power, as well as PFC, on the cancellation of the
coal block.
The move would be a major blow to the UMPP programme and the NDA government's drive to
invite private investment in the infrastructure sector. Of the 4 UMPPs awarded, only 2 are
operational - Sasan and Mundra (operated by Tata Power), which is also involved in a legal tussle
over 'compensatory tariff'. RPLs Krishna-patnam UMPP has remained a non-starter, owing to land
allocation issues. The company announced an exit from the Tilaiya UMPP in April this year, after
awaiting clearances for 5 years. The Sasan UMPP achieved full commissioning in March 2015. The
project was awarded to the company in 2007, when it bid the lowest rate of 1.19 a unit for sale of
power. In August last year, a Supreme Court judgment had cancelled all coal block allocations
through the past 2 decades, except the ones awarded to UMPPs on a bidding basis. It also asked
the UMPPs not to use surplus coal from attached mines for commercial purposes. When the project
was awarded, Sasan UMPP had 3 mines - Moher, Moher Amlrohi extension and Chhatrasal.
According to RPLs letter, the Union government had promised to allocate the 3 mines, with an
aggregate capacity of 760 MT. In May this year, the coal ministry cancelled the allocation of the
Chhatrasal block, saying the 3 mines exceeded the amount of coal to be used by the plant and
"surplus coal cannot be used by the promoter". At that time, a senior company executive had said
that the company wasn't challenged in terms of blocks for which competitive bidding was held for
the lowest tariff for power for UMPPs. On July 31, the company approached court, contesting the
government's move to take away one of the 3 blocks attached with the plant. The company's plea
in the Delhi Court also stated PFC should buy the entire shareholding. The company has argued the
coal reserves of the 2 mines aren't enough for the power plant to run at a PLF of 85% for the PPA
term of 25 years. It would also hurt the capital investment already made, the plea said.
Business Standard; August 29, 2015 (Edited)
Cabinet took a decision to cancel GO No 1107 issued in 2008. The company had purchased land
through AP Industrial Infrastructure Corp. Three persons were killed in police firing when a large
group of farmers and fisher-men, protested against setting up of thermal power project in July in
2010.The company had acquired 972 acres of land allotted by the AP government. It has also
purchased some land from private owners specifically for setting up of the thermal power plant at
Sompeta.
Financial Chronicle; August 29, 2015 (Edited)
Government to rationalise
coal prices, says Piyush Goyal
CIL shifted from UHV to GCV-based pricing prior to its maiden IPO, to price coal on
international parity prices
FE BUREAU
Kolkata: The coal ministry will rationalise coal prices aligning it with gross calorific value (GCV), so
that the price disparity is eliminated across various grades of coal. Coal and power minister Piyush
Goyal said. As certain grades were not being priced properly, We need to rationalise pricing based
on GCV, Goyal said. He made it clear that rationalising coal prices didnt mean downward revision
of coal prices to bring parity with falling inter-national prices. Indian coal prices were never benchmarked with international prices and any rationalisation will not be aligned with international
prices, Goyal said.
CIL shifted from UHV to GCV-based pricing prior to its maiden IPO, to price coal on international
parity prices. Since CIL offered coal at a deep discount of up to 50%, the company advised the
government to change the pricing mechanism so that Indian coal prices were worked out on the
basis of market forces and on the basis of inter-national standards. There were even suggestions of
a regulator, which would determine Indian coal prices.
Now that international coal prices are down, the govern-ment doesnt want to link Indian coal
prices with inter-national prices, a WB Power Development Corp official said. With international
prices falling, coal imports have already increased. While Goyal has been saying that the country
was aiming at not importing a single tonne of thermal coal, it has imposed a zero duty on imported
coal. However, Goyal said, While not importing a single tonne of thermal coal is our larger aim, it
may be wise to import coal at the present point of time to keep cons-umers interest in mind.
Goyal, speaking at the energy conclave of the Bengal Chamber of Commerce, said India, as a
matter of policy, would not follow other countries at least in matters of pricing. He said since 70%
of the countrys coal require-ment was produced by the government-owned CIL and the
government more or less regulated the price, there was no need for a separate regulator in the
coal sector.
WB power minister Manish Gupta said that a regulator was necessary since CIL has a monopoly
over the commo-dity in India and it often drove prices keeping profitability in mind. Goyal said
profitability has to be resolved by efficiency and benefits should not come to CIL through pricing
only. He said CIL saw 10% growth this year and this continued even in the lame months. The
ministry was monitoring day-to-day coal and power output and the country at present had surplus
of both. But the mecha-nism for equitable distribution was still to be in place.
The Financial Express; August 29, 2015 (Edited)
New Delhi: State governments are set to grant mining leases for all coal blocks awarded during the
first phase of auctions in next 1 month, paving the way for pro-duction to start from these
operational mines, which have been lying unutilised in the absence of statutory clearances. The
move will be a big face-saver for the centre, grappling with clearances for the auctioned coal
blocks, though it was swift in conducting the auction and allotment of producing and nearproducing coal mines in February-March. These mines were scheduled to start production from
June.
There is no problem as far as the centre is concerned, as prior environment and forest clearances
(EC/FC) were taken for all coal mines auctioned in the first phase.The transfer of coal mines to new
owners is getting delayed at the state level, but even that matter has been resolved with mining
lease of at least 14 coal mines to be cleared over the next 2 weeks, said a top official in the coal
ministry privy to the development.
The delay from states is on the grant of mining leases, clearing boundary of mines and mutation of
land, pollu-tion certificate and state-level forestry clearances.
Of the 24 producing coal blocks (schedule-II coal blocks) that were auctioned and allotted (to public
sector entities) in the first round, only about 6 are operational with a production capacity of 2.5 MT
of coal per annum or 25% of coal reserve in auctioned blocks. 2-3 blocks are expected to start
producing in couple of weeks time. Others are still awaiting all clear from state governments.
All the producing coal blocks were operational when a Supreme Court order in August 2014
cancelled all captive coal block allocations. Even after cancellation, the earlier owners of the
operational blocks were allowed to mine coal till March and pay 295 per tonne as penalty. The
delay is resulting is loss of production that could be used by power, steel and cement companies.
But mining com-panies are helpless, as new owners need to take about 19 clearances before any
productive activity can start, said an official of private sector power company that had bid for a
coal block in the recent round of auctions.
According to the timeline finalised by the coal ministry, winners of coal block auctions were to
secure all statu-tory permissions within 3 months of signing the vesting orders. These orders were
issued to all owners of pro-ducing mines in March. Subsequently, the block owners were required to
adhere to a mining plan that was to be finalised within 6 months of vesting orders. There are
cases of genuine delays over procedural issues. We would consider extending this deadline on a
case to case basis, said Vivek Bharadwaj, the nominated authority desig-nated by the coal
ministry for auctions.
Under the rules of auction, any delay in getting clearances on part of mine owners could result in
penalties and forfeiture of performance security submitted by winning bidders. The government is
focusing on getting clearan-ces for the 16 operational coal blocks, which have been auctioned so
far, before moving to others.
Among the mines that have started production is Parsa East & Kanta Basan (this block has been
allotted to Rajas-than Rajya Vidyut Utpadan Nigam), Amelia North with Jaiprakash Power Ventures,
Belgaon block with Sunflag Iron and Steel, Talibara - I with GMR Chhattisgarh.
Under the first three rounds, the coal ministry has auctioned 32 blocks to private companies and
garnered over 2 lakh crore, surpassing CAGs loss estimate of 1.86 lakh crore in allotment of
mines earlier without auction. In addition, 38 coal blocks (both producing and near producing ones)
have been allotted to central and state-run utilities.
Financial Chronicle; August 30, 2015 (Edited)
Power-starved Karnataka
may get additional coal: Centre
DC CORRESPONDENT
Bengaluru: The Union Government will examine the possibility of ensuring additional coal supply to
Karnataka to ramp up power production from thermal units in the wake of severe shortage of
power, said Union Minister of State for Power, Coal, and Renewable Energy, Piyush Goyal. He said
hydel power generation in Karnataka had dropped to 40% as against 80% owing to poor rainfall.
The Union Government would also examine the possibility of diverting power from power-surplus
states to Karnataka, besides releasing additional quota of coal.
Power prices had come down by nearly 50% after the Modi Government came to power at the
Centre. States such as Karnataka could buy power from north India at a competitive price.
However, Karnataka had to improve its transmission corridors to buy power from states such as
Gujarat, Maharashtra and Chhattisgarh. Power, which was sold at 12-13 per unit, was now
available at 5 per unit. In the last one year, the Union Government added 22,500 circuit km, he
said.
On the controversy over allotment of a single block in WBl to 7 states, including Karnataka, Goyal
said that it was not a good idea of asking 7 states to share one block. There had to be one block to
each state. The government would re-examine it and bring out alternative mechanism of allotting
independent blocks to each states. We are sorting out various operational issues which are critical
for transmission lines and transmission corridors. This will help make available sufficient power to
south India round-the-clock at cheaper rates. It will be achieved by 2019. Our plan is to add 6000
MW of power to south Indian grid during 2018-19, he added.
He said that he had spoken to the CM of Maharashtra to extend full co-operation to Karnataka,
which had been allotted a coal block in that State. Formalities were at final stages for calling for
operational tender mining. It would be done expeditiously to help Karnataka to get sufficient
quantity of coal for its thermal plants.
Deccan Chronicle; August 28, 2015 (Edited)
SIDHARTHA
New Delhi: The stage is set for a demerger of Ratnagiri Gas & Power (Dabhol) project into 2
entities, with GAIL dealing with the gas block and NTPC running the power plant, but the project is
unlikely to be without problems with fuel supply remaining a major concern. Railways is pitching to
buy electricity from the troubled plant.
Sources said that there is near unanimity on
demerger after a PMOappointed panel suggested a similar roadmap but
question marks remain over
the availability of gas with supply of only 0.9
mmscmd available so far
and the company has sought more domes-tic fuel in
the next round of auction. But
even with enhanced supply, it would only be able to
run half of 1 block and is
expected to generate around 330 MW. Dabhol has a
capacity of 1967 MW, split
into 3 blocks, but has been unable to run for want
of demand for power at the
price at which it can produce electricity. In the
absence of domestic gas
supply, the power plant has to run on imported LNG, which makes generation costs unviable at a
time when tariffs are low due to weak demand.
The project, which was set up by the now-defunct Enron, has been causing headache to the lenders
and the government for nearly 2 decades and has now reached a stage where banks have read the
riot act, prompting the Centre to act. In fact, the project was taken up for review at the level of the
PM's Office and a group was tasked with preparing a revamp plan.
But fuel supply is not the only issue. Evacuation of power is the other problem although Railways,
which is looking to trim its fuel bill, is the likely buyer. Railways has been asked to seek a
distribution company licence from the central power regulator to buy power. With a licence,
Railways can hope to buy power at around 4.70 a unit, including subsidy of over 1.50 a unit.
Otherwise, it would have to shell out at least 6.60 a unit. Sources said the panel has also
recommended that the Maharashtra government offer concessions to make the unit viable and in
return may be given a 2-year moratorium in clearing its dues to lenders, which are estimated at
around 2,000 crore.
The Times of India; August 28, 2015 (Edited)
With production falling and new discoveries yet to start flowing, the industry is worried
over low prices
RICHA MISHRA
New Delhi: The Centre is under pressure to allow dom-estic gas players to sell certain volumes of
their produce at market rates. If current estimates are any indication, the new gas price effective
October 1 could drop below $4 a unit. With domestic gas production declining conti-nuously and
new discoveries yet to start flowing, low prices will be a bad messenger as offshore discoveries
become unviable below $7 a unit, said an industry player.
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The government is looking at the option of allowing a certain quantity of the produce to be sold at
market price. Varied views are under consideration on the quantum of quantity - whether it will be
25% or 50%, a senior official said. Currently, domestic gas is available at $4.7 a unit, the landed
cost of long-term contract (Qatar gas) is $12.5 a unit, and landed cost of gas bought from the spot
market is less than $8.5 a unit. The prices exclude local taxes and levies, marketing margins, and
transmission charges. The domestic industry has been maintaining that anything below $8 a unit is
not viable for any volume of deep-water discoveries. Even the shallow water produce is not viable
below $4 a unit, according to the industry. However, for deep-water discoveries, the government is
working on a special package. Every dollar change in gas price impacts the CNG, used as auto fuel
by about 3 a kg, piped natural gas price, used for cooking by around 2 per SCM, and the
electricity tariff by 45-50 paise a unit.
The Hindu Business Line; August 30, 2015 (Edited)
Government has passed a decree law, paving way for start of construction work on the
project
PRESS TRUST OF INDIA
New Delhi: ONGC and its partners will invest about $24 billion in producing natural gas from a giant
field off Mozambique and converting it into LNG for export by ships to consumers like India. ONGC
Videsh Ltd, the overseas investment arm of the state-run explorer, holds 16% stake in Rovuma
Area 1 where recoverable resources in excess of 75 trillion cubic feet have been established. BPCL
holds another 10% and Oil India Ltd 4% stake in the field and all 3 together hold more stake than
operator Anadarko of the US (26.5%).
The Mozambique government has passed a decree law, paving way for start of construction work
on the project. An estimated $ 23-24 billion will be required to bring first set of discoveries in
Rovuma Area-1 on to production and convert that gas into LNG, a senior official in the consor-tium
said. The partners have so far committed $16 billion and hope to achieve financial closure of the
remaining by December or early January, he said. They are planning to produce first gas from Q1 of
2020. The gas will be turned into LNG at an onshore liquefication plant and exported in cryogenic
ships to consumption centres like India.
Initial plan of development of Area-1 envisage developing two LNG trains of about 6 million tonnes
per annum each from the Golfinho-Atum Field in Area-1. The decree law essentially means that
the cost of bringing the gas field to production as well as building of liquefaction (LNG) plant will be
cost recoverable i.e. all investments will be recouped from sale of gas first before profits are shared
with Mozambique government, he said.
The project will have an ultimate capacity to produce 20 million tonnes of LNG annually and will be
the worlds largest LNG export site after ExxonMobil-run Ras Laffan in Qatar. Rovuma Area-1
Offshore Mozambique Block (Block Area 1) is located along the coasts of northern Mozambique and
southern Tanzania in the Indian Ocean.
It has a total area of more than 10,000 square kms in water depths ranging from 900-1,600 metres
and about 30-60 kms from shore. Texas-based Anadarko is the operator with 26.5% stake while
other partners include Mitsui (20%), ENH (15%) and PTTEP (8.5%).
So far, seven gas fields have been discovered in the block. Of these, 3 fields - Lagosta,
Windjammer and Barquentine (collectively called the Prosperidade field) - extend into the adjacent
Block Area-4 where Italys ENI with a 70% stake is the operator. The others -- Atum, Golfinho and a
small field Tubarao - are independent fields lying fully in Block Area-1. The official said the
consortium is looking at developing the independent fields first.
LiveMint; August 28, 2015 (Edited)
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Chennai: With the wind power season coming to an end, Tangedco has asked Nuclear Power
Corporation of India Ltd to resume generation in the first 1000 MW reactor of Kudankulam Nuclear
Power Project (KKNPP) by mid-September. The unit has been shut down since June 24 for annual
overhauling. The nuclear reactor, which supplies 563 MW to TN was taken out of service for
carrying out annual maintenance on June 24 for 60 days. As per schedule, the unit was supposed to
come back to service on August 23 itself. But the 1000 MW reactor is expected to come into the
service only in the end of September with a delay of over 30 days.
In a letter to NPCIL, Tangedco stated that generally in the month of September wind generation
drops from peak generation. In order to maintain load generation balance during the month, it has
requested that steps should be taken to bring back unit I into generation on September 15 after
completion of overhaul.
The state receives over 20% of its daily energy require-ment from windmills between June and
September. On August 11, windmills supplied 4,144 MW out of 12,994 MW peak demand, the
highest this year. Stating that the state was unlikely to face a power deficit, a senior Tangedco
official said, It is always better to have firm power supply. The wind generation will start dropping
after the second week of September usually. The generation from KKNPP will help bridge the gap.
However, KKNPP site director R.S. Sundar said that the nuclear reactor would resume service only
by the end of September. He said that the first time they have taken the unit for annual
maintenance after the reactors began commercial operation on December 31, 2014. Several
works are underway including replacement of spent fuel from the reactors. It is not possible to
commence genera-tion by September 15. We are targeting end of September only, he said.
Deccan Chronicle; August 31, 2015 (Edited)
HYDROELECTRIC POWER
JSW Energy in talks to recast
6,000 crore debt under 5/25 scheme
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Will refinance debt component of the 9,700 cr trans-action to buy 2 hydro assets from
Jaiprakash Power
VISHWANATH NAIR & AMRITHA PILLAY
Mumbai: JSW Energy Ltd is in talks with banks to refinance debt worth 6,000 crore under the socalled 5/25 refinance scheme for long-gestation infra-structure projects, according to 2 bankers
directly invol-ved in the talks. JSW Energy will refinance the debt component of the 9,700 crore
transaction to buy 2 hydropower assets from Jaiprakash Power Ventures Ltd. Bankers are meeting
in the first week of September to finalize a 5/25 refinancing for these 2 hydroelectric power
projects, with a clause that the new management comes in within a stipulated period of time, said
the executive director of a large state-run bank. There is a refinancing being done with a change
in management clause, said a second banker.
Banks will clear the request because of JSW Energys creditworthiness, the first banker said. As of
now, ban-kers representing majority of the 6,000 crore debt have agreed to enter this
agreement. A formal approval is still pending. JSW Energy, which had a consolidated debt of
8,210.57 crore as on 31 March, is one of the few power companies in India that have a relatively
healthy balance sheet, allowing it to raise funds from banks easily to pursue its plan to buy
distressed assets. Many power producers in India, struggling with huge debt, are trying to sell some
of their assets.
JSW Energy agreed to buy the Baspa Stage II (300 MW) and Karcham Wangtoo (1,091 MW)
hydropower projects, both in HP, in November. As part of the deal, the 2 hydropower assets were to
be transferred to a SPV named Himachal Baspa Power Co. Ltd, followed by JSW Energy picking a
100% stake in the SPV. The assets have been transferred to JSW Energys books, said a third
public sector investment banker directly involved in JSWs purchase of the 2 hydropower assets
from the Jaypee Group. The executive director confirmed comple-tion of the transfer.
However, a spokesperson for Jaiprakash Power Ventures said: The sale of the two Jaiprakash Power
Ventures hydro units - Karcham Wangtoo and Baspa - is in advanced stage of completion, major
approvals including that of Honble High Court are in place and it is expected that the transaction
will close shortly. The 5/25 refinan-cing is under consideration for our Nigrie Super Thermal Power
Project. Jaiprakash Power operates a 1,320MW thermal power plant at Nigrie, MP.
The 5/25 scheme has found many takers from the power sector including the Jaypee Group, Adani
Power Ltd and GMR Infrasructure Ltd. I would not be surprised if the company convinced bankers
for a refinance by giving an alternative option of repaying the entire debt off. Banks dislike a
prepayment from creditworthy clients, said a banker with a private investment bank.
Vibha Batra, senior vice-president at Icra, does not see an issue with JSW Energys refinancing
request. As far as the cash flows of a project match the serviceable debt, there should be no
problem with approving a 5/25 refinancing, since the project would be viable, Batra said.
However, this viability differs significantly from project to project and so, this decision needs to be
taken very carefully. The RBI, in its annual report, said it will periodically examine randomly
selected 5/25 deals to ensure they are facilitating genuine adjustment rather than becoming a
backdoor means of postponing principal payments indefinitely.
LiveMint; August 31, 2015 (Edited)
Relief for PE funds as state may buy back assets from Asian Genco
Sikkim govt is looking to buy back Teesta Power assets from infra firm as it failed to
develop proposed projects
P.M. INDULAL & BAIJU KALESH
Mumbai: In what could be one of the largest asset-buybacks by a state, the Sikkim government
may buy back assets from infrastructure firm Asian Genco as it failed to develop the proposed
projects in the north-eastern state. The state government's decision might bring relief to big ticket
global private equity players, which have nearly written off a $425 million investment in Asian
Genco, which owns several power assets. As part of the proposed arrangement, Asian Genco,
which owns the 1200 MW partly completed Teesta hydro power project in Sikkim, will hand over the
asset to the state government for 600 crore, according to several people familiar with the
development.
There is a consensus among private equity funds and they are more or less fine with this
arrangement. A final decision is expected soon, said one of the persons. The funds are recovering
some of the money, which they have nearly written off. The transaction would be under state
sovereign rights as the firm failed to meet project obli-gations, paving the way for larger cost
escalations, making it almost unviable. An earthquake in Sikkim had further spoilt the plot,
damaging major equipment and delaying construction, said another person.
The Sikkim government holds 26% in the SPV for the project, Teesta Urja, in which Asian Genco
holds a majority. The investment will end with the government owning 51% while the PE investors'
stake will reduce. Apart from Teesta, the company has 2 hydro power assets in Arunachal Pradesh
and HP, a gas-based and thermal project in AP and a wind farm in Gujarat.
Big-ticket investors such as funds managed by Goldman Sachs, Morgan Stanley, General Atlantic,
Everstone Capi-tal and Norwest Partners have together invested $425 million in the firm in 2010.
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Since then, differences have cropped up between the funds and the company promoters. Investors
had initiated arbitration procee-dings against Asian Genco, and its chief promoter Vijay-kumar TV,
for management control and to recover their funds. As of now, investors hold majority in the
company, with no voting rights, sources said. In turn, Vijaykumar had filed a complaint in a
Hyderabad court arguing that PE funds were trying to take away all the money from his company.
There was a warrant against directors of all the big buyout funds to be present for questioning,
according to various media reports.
Indian asset owners' lack of urgency to cut debt will continue to restrict their ability to capture
growth, HSBC said in a note about India's infrastructure and power sector. Who blinks first is not
important; investors lose. Indian asset owners have shown limited willingness to cut debt by selling
off assets. Their stubbornness to hold assets in anticipation of better valuation despite a weak
operating outlook suggests near term earnings and valuation will remain under pressure, HSBC
said. We argue that investors during the current cycle are unlikely to be forthcoming in funding
overleveraged asset owners, it added.
The Economic Times; August 31, 2015 (Edited)
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The Assam experts are going to submit their final report within the current month, urging the Union
Government not to proceed with LSHEP until the safety of its dam is convincingly ensured, said Prof
Kalita. Prof BP Duarah said that the 2 major issues on which the States Expert Group and the other
experts had differed, included - whether the seismic design parameter used for ensuring dam
safety was adequate and what would be the res-ponse of dam abutments in the event of an
earthquake of the intensity considered for dam construction.
In its sixth meeting, the POC worked out a list of seismic experts from India and abroad for
consultation, basing on the terms of reference (ToR) of the POC. On July 20, 2015, the Power
Ministry told the POC that as per clause 3 of the POC ToR, the committee may consult any eminent
expert - individual or organisation - of national/inter-national repute. However, it maintained that
the Commi-ttee may consider engaging any Indian expert indi-viduals/organisations with
national/international repute as per the ToR, considering international sensitivity of the issue. The
Assam experts stuck to the decision of the sixth meeting, said Prof Duarah.
The Assam Tribune; August 28, 2015 (Edited)
WIND/SOLAR/OTHER RENEWABLES
15% of Indias power by 2030 to be green,
says NITI Aayog
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shows it would be a big leap for India as renewable energy currently contributes to less than 6% of
the countrys energy mix. PM Narendra Modi has announced setting up a green power capacity of
175 GW by 2022 to ensure every household gets adequate power.
Indias power demand by 2030 is expected to be about 10 lakh MW. According to the panel, the
biggest contr-ibutors to enhanced green power will be solar and wind energy, contributing about
70% to total power genera-tion by renewable, followed by nuclear energy. India plans to generate
20,000 MW of power from nuclear energy by 2030, when renewable is expected to contri-bute
2,00,000 MW of energy.
The Hindustan Times; August 31, 2015 (Edited)
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However, issues including whether or not a significant number of home-grown companies have the
experience, technical expertise, technology and financial resources to win bids for such huge
projects will also have to be looked into, it said.
The Financial Express; August 31, 2015 (Edited)
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New Delhi: Global green energy firms seems to be making a beeline to take bets on Indias
renewable energy story as companies including New York Stock Exchange (NYSE)-listed NRG
Energy Inc. and Canadas TransAlta are planning an India entry. While NRG has an installed
capacity of 50,000 MW, TransAlta is Canadas largest publicly traded power generator and
marketer of electricity and renewable energy. India needs as much as $250 billion to meet its
target of installing 100 GW of solar power and 60,000 MW of wind power by 2022.
These firms are actively scouting for an opportunity to invest in India, given the scales involved
here and also the rate of return. These firms have big plans. A case in point being NRG, which has
one of the largest global renewable energy platforms, said a person aware of the firms plan.
A senior government official, said many firms are scouting for investments in green energy
development and manufacturing space.
Speaking at Mints fourth annual energy conclave Tarun Kapoor, joint secretary, MNRE, said most
renewable energy companies are scouting for opportunities to set up base in India. There has been
growing interest from overseas investors in the Indian renewable energy space. Russias OAO
Rosneft, the worlds largest publicly traded oil company, US-based First Solar and Chinas Trina
Solar are among the firms looking for opportunities to participate in Indias solar energy sector. In
June, SoftBank, along with Bharti Enterprises Ltd and Taiwans Foxconn Technology, proposed to
invest at least $20 billion in solar energy projects in India through a joint venture, SB Cleantech Ltd.
Also, a number of utilities and private equity (PE) firms are trying to get a slice of Indias growing
green energy pie. These include NYSE-listed Brookfield Asset Mana-gement, Switzerland-based PE
firm Partners Group AG, infrastructure investment manager I Squared Capital, Dubais PE firm
Abraaj Group and Doha-based Nebras Power QSC. A subsidiary of Singapore-based Sembcorp
Industries Ltd acquired a 60% stake in IDFC Alternatives-backed renewable energy firm Green Infra
Ltd for S$227 million in February. In the same month, Actis Capital committed $230 million to
create an Indian renewable energy platform called Ostro Energy Pvt. Ltd. SunEdison recently
agreed to acquire Continuum Wind Energy Ltd.
Renewable energy currently accounts for only 13%, or 35,777MW, of total installed capacity of
2,74,818 MW.
LiveMint; September 3, 2015 (Edited)
Bundelkhand to turn
solar energy projects center
BISWAJEET BANERJEE
Lucknow: The rugged Bundelkhand region which is craving for development could soon turn into a
hub of solar energy projects as Akhilesh Yadav Government plans to set up 1000 MW solar energy
park in Jalaun. The Government has already acquired 250 acres of land in Jalaun for this purpose.
If everything goes well the area will have many small solar power plants operating in that area, a
senior official in CMs office said. The state cabinet had already approved 15 projects that will
generate 215 MW of solar energy. The decision was taken after final bids were approved by the
Department of Non-Conventional Energy Development Authority. The department is headed by the
CM himself.
20
The Adani Group plans to set up 50 MW solar power plant which will come up in Jalaun. Others
groups like Sukhveer Agro Energy Ltd, a UP venture which also delves into farm sector, Essel Group
of Zee, Sahasdhara Energy Pvt Ltd, Chennai, Sudhakara Infotech Pvt Ltd, Hyderabad, and other
groups that would set up solar power plants from 20 to 10 MW capacity each. These plants will sell
power to state grid under 25 years PPA. Price would be decided.
These projects might take time to come but the CM will inaugurate a solar power plant of 50 MW
in Jalauan later this week. This would be the first solar power plant in Jalaun. Earlier a solar power
project has come up in Mahoba. Soon all the districts have solar power projects, the official said.
In February Chief Minister had inaugurated a 10 MW solar power plant in Karkahkala village. UP got
its first megawatt-capacity solar power in 2012 when Chief Minister had inaugurated 2 MW plant in
village Sandauli of Barabanki district.
Officials say that Adani group has shown its willingness to set up a 1000 MW solar park in UP.
Senior officials of the Adani Green Energy group had a meeting with CM. The Adani group wants to
set up unit in eastern UP - somewhere near Varanasi. State governments willing-ness to go ahead
with solar power energy generation could be gauged from the fact that a proposal is on the anvil to
set up Solar Power Corp. The corporation, working like UP Power Corp Ltd, will set up solar power
plants in state-run sector. It will set up 3 plants of 30 MW each in Allahabad, Mirzapur and Jhansi.
UP, as a matter of fact, is blessed with a good solar radiation to the tune of 1,800 kWh-hour per
sqm on an annual average basis. This is necessary for operating a solar PV power plant. Chief
secretary Alok Ranjan said that these solar power projects will help government to meet its
promise to provide 16-20 hour power supply in rural areas and 20-24 hours in cities by the end of
2016.
The Pioneer; September 3, 2015 (Edited)
Solar Park
Bengaluru: Power Minister Piyush Goyal said Asias biggest solar park was coming up on 10,000
acres of barren land at Pavagada in Tumkur district to generate 2000 MW of power. No
impediments were seen in setting up this park jointly by the Union and State governments. Bidding
process would begin soon for this PPA solar park.
Deccan Chronicle; August 28, 2015 (Edited)
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Power drawn from the solar panels from 6.30 a.m. to 5 p.m. is connected to the grid. Official
sources said the company preferred not to avail itself of the subsidy schemes of the Centre and
State Governments. District Collector S. Prabakar, who visited the production unit last week, was
hopeful of others following suit. Tamil Nadu Pollution Control Board officials say augmentation of
solar power by industries will go a long way in improving environment standards on the SIPCOT
campus.
The Hindu; August 31, 2015 (Edited)
22
Sunil Tiku, associate vice president of Luminous Power Technology Ltd, says his customer base from
the residen-tial sector is limited to people who have independent houses. It is difficult to install
solar panels in multi-storey housing societies. Residents of apartments that do not have
(independent) roofs cannot install solar panels and not all the residents of a housing society would
want to invest so much in solar energy-driven systems.
The solar energy sector is carrying out various innovations in an attempt to attract the attention of
individual consumers towards the benefits of solar power. Rooftop systems come with a net
metering sys-tem that displays the power produced in real time on a monitor. Many companies are
also developing econo-mical solar products. We have come up with solar batteries that can charge
inverters. They are very eco-nomical and useful in areas that face frequent power cuts, says KK
Roy, director of Kalisons Telvent Pvt Ltd.
The Times of India; September 2, 2015 (Edited)
23
Chennai: TN has the enviable status of being one of the largest wind power producing states; it
also possesses more around 7,800 MW installed capacity of this renew-able power. Now to reap the
most of this resource, the state is utilising a new wind power forecasting service.
The output of wind farms, unlike conven-tional energy plants, is as
changeable as the weather. So it's not feasible to dep-end on it as the
only source of power. However, this flaw can be rectified if the energy
can be estimated beforehand for its effective management. The new
prediction system developed by National Institute of Wind Energy
(NIWE) in collaboration with Vortex Factoria De Calcul SL, a Spanishbased company, requires availa-bility-based tariff (ABT) metres in wind
energy pooling sub-stations. So far, these meters have been installed
in 80 sub-stations in the state and by the end of this month another 40
sub-stations will have them, NIWE scientists said. The system will
provide the forecast every 15 minutes for up to 10 days in advance.
This will help Tangedco in scheduling and dispatching electricity from wind turbine generators. With
the wind season on (May to October), the institute is aiming to provide highly accurate results and
customizable and cost-effective service. With this, they will know how much energy is available and
schedule their distribution reducing the burden on thermal plant stations, which supplies around
8,000 MW of the total 14,000MW of the state's energy requirement.
Head of wind resource assessment unit K Boopathi said the ABT metres are installed in wind energy
pooling sub-stations that connects wind turbines positioned within a radius of 10 km. They are
fixed on the group connector, which joins the distribution feeders. They will gather data on
availability of wind power through a modem and a SIM card fixed in the meter. The data will then
get transferred to a centralised server installed in Chennai. Scientists at NIWE will filter the data
before transferring it to the super computers at Vortex in Spain where it is processed. The
information is sent back to NIWE and is simultaneously made available in the monitor of the grid
managers at the state load dispatch centre and NIWE. As a pilot project few months back, NIWE
installed 1 ABT meter each in 24 feeders in a pooling sub-station in Kayathur.
The Times of India; August 28, 2015 (Edited)
CHETAN CHAUHAN
New Delhi: Three years ago, when representatives from Sukhbir Agro approached farmers in Punjab
proposing they sell their farm waste to the company to generate bio-energy, no one believed them.
They proposed to buy our waste We didnt believe them, said Amolak Singh, a farmer.
However, as the farmers slowly came around to the idea the green benefits of this move became
apparent. Every November, farmers in the northern states of Punjab, Haryana and Rajasthan burn
24
their agricultural waste increasing the air pollution in the national capital region and neighbouring
cities - home to over 25 million people.
The waste collected is enough for the companys biomass plant to generate green electricity
around the clock, which then is sold to the Punjab government at a price higher than thermal
power. They buy my produce and my waste, said an elated Amolak Singh, adding that by selling
the waste helps him cover his annual farm labour costs. Since the quality of the waste is also good,
the companys efficiency is about 80% - almost the same as thermal power and much higher than
that of solar power which currently stands at 13-18%.
A 2012 study by IIT-Kharagpur said that since most farmers do not find buyers for their waste, they
burn it - which releases a huge amount of emissions - or dump it leading to soil and water
contamination. India generates about 350 million tonnes of agricultural waste every year, which
can generate more than 18,000 MW of power a year. While its productive use is limited,
Maharashtras Satara district has shown it can be done by processing sugarcane molasses for to
generate electricity and act as fertilizer for fields.
A unit, set up by a company in collaboration with Sugarcane Farmers Cooperative and German
federal technical agency GIZ, collects the waste from around 10,000 sugarcane farmers. It is then
treated and fed into a boiler at the unit to generate electricity. Suresh Aklekar, chairperson of the
cooperative, said it is a win-win situation. The productivity has improved since the fertiliser was
used and the problem of dealing with the waste has also been taken care of, he said, adding many
other cooperatives in Maharashtra have now started adopting this new development model.
While Punjab and Maharashtra have taken a lead in setting up biomass plants, other states like UP,
Haryana, Gujarat and MP - which contribute half of Indias annual agricultural waste worth 50,000
crore - are lagging behind because of low tariff. MNREs renewable energys review found that tariff
as low as 2.2 in Kerala, 3.3 in MP, 3.6 in Karnataka and 4 in UP as compared to 5.05 per
unit in Punjab and 4.98 per unit in Maha-rashtra, thus making them attractive destination for
investors in the new-age green power. To provide a level-playing field across the states and give
them an incentive, the government had planned to set up a National Biomass Mission to harness
620 MT of bio-resources.
The Hindustan Times; August 31, 2015 (Edited)
OUR BUREAU
Panaji: The 16th Regulators and Policymakers Retreat 2015 (RPR), an interactive flagship event
hosted by the Independent Power Producers Association of India, will be held here from September
3 to 6. Experts will discuss issues in the energy and power sectors covering policy and governance.
The Retreat celebrates the achieve-ments of the Indian power and energy sector in which
regulators, policymakers and other stakeholders parti-cipate. Among those expected to participate
in the event are Piyush Goyal, Minister of State for Power, Coal, New & Renewable Energy.
The Hindu Business Line; September 2, 2015 (Edited)
Peak-hour rates may be higher; sops on offer to maximize industry work at night
SUBHRO NIYOGI
Kolkata: West Bengal Electricity Regulatory Commission (WBERC), utilities and state power
department are chalking out a plan to balance the swing in the demand of power. Power demand is
typically low at night. But, it picks up in the morning and reaches a high in the afternoon. The
power demand dips a bit again around late afternoon before rising sharply in the evening.
Speaking on the side lines of a seminar on green growth and energy security organized by CUTS
International, WBERC chairman Rabindranath Sen said that time of day (TOD) tariff and solar power
would be used to stabilize electricity demand at 6,000 MW instead of a fluctuating demand that
ranges between 5,400 MW and 7,600 MW.
Balancing the load is important to increase the efficiency of thermal power plants which will use
less fossil fuel to generate a kW of electricity. It also makes commercial sense to do so, he added.
Sen planned to use the TOD tariff mechanism that disincentivizes electricity consumption during
peak hours through high tariff while encouraging its use during off-peak hours by offering low tariff.
He believed this plan would also encourage agricultural and industrial sectors to consume more
power at night. Use of water lifting pumps for irrigation and running of furnaces will have to shift
to night, when the electricity load is otherwise low. This will lower the demand in the evening and
push it up at night, bringing the power loads closer to a mean level of 6,000MW that we plan to
achieve, he said.
Simultaneously, the solar pump storage plant in Purulia will use thermal electricity produced during
off-peak per-iod to pump water up and then release it during peak period to churn the turbines and
generate electricity. While a 900 MW pump storage plant is already in opera-tion in Purulia, the
government is also designing a 1,000 MW plant at Turga, also in Purulia, to balance the growth of
25
power demand in the days to come. The cost of the 5-year project has been estimated at 3,500
crore.
Unlike the current plant, which uses thermal power to pump water, West Bengal State Electricity
Distribution Company Ltd (WBSEDCL) is planning to build a 1,200 MW solar power plant. The plant
will be set up in 4 phases, while 1,000 acres have already been identified in East Midnapore for
installation of 300 MW solar panels in the first phase of the project. The land is with the land revenue department. Once it is transferred to us, WBSEDCL will start developing it, said joint secretary
power Anindya Narayan Biswas.
Also on the cards is a 10 MW solar panel project along the 80-km banks of Teesta canal. The 68crore project will be implemented by WBSEDCL and will be partially funded by MNRE. WBERC has
also proposed rooftop solar grids to lower the electricity consumption load during 2.30pm3pm.While the state had earlier targeted to generate 18MW through rooftop solar grids by 2019,
now it is revising the target upward to 30MW-35MW. Govern-ment buildings, schools and large
private projects will be asked to set up rooftop solar power grids.
The Times of India; August 30, 2015 (Edited)
26
AMAN MALIK
New Delhi: NTPC Ltd is looking to bundle 10,000 MW of solar power with thermal power and sell the
same at 3.20 per unit. If the company does manage to sell solar power at these rates, it could be
a game-changer, as the lowest unbundled solar tariff quoted so far has been 5.05 per unit in MP.
A top company official said that apart from this, NTPC would sell another 15,000 MW at between
4.5-5 per unit. This will however not be bun-dled with thermal power.
We have committed this rate for 10,000 MW, the official said. For the other 15,000 MW, while we
would generate some of it, buy some of it and facilitate a transaction in some cases. There are
various models. We are also looking at dollar tariffing, the official said. The 10,000 MW NTPC plans
to bundle, would come up at its plants that are going out of commission or are at the end of their
operational life.
Meanwhile it would buy the other 15,000 MW via a process of reverse auction. This would be done
at the behest of the renewable energy ministry.
The Hindustan Times; September 1, 2015 (Edited)
B.S. ANILKUMAR
Thiruvananthapuram: The Kerala State Electricity Board (KSEB) has decided to opt for a reverse
bidding process to purchase 200 MW of solar power from the domestic market. The reverse bidding
would explore the possibility of the power utility getting so lar power at a rate lower than the one
fixed by the state electricity regulatory commission for each unit of grid-connected solar power.
The state electricity regulatory commission had fixed the rate per unit of solar power at 7. The
reverse bid is expected to kick up competition among the solar power generators who are willing to
supply 200 MW of solar power to the board at a lower rate.
The RPO that was 0.25% till recently, has been increased to 0.5% of the total power generation in
the respective states after the Modi government came to power. The reverse bidding for 200MW
solar power would in no way affect the business prospects of those who have already set up or
obtained permission from the board to set up grid-connected solar power generation units,' KSEB
C&MD M Sivasankar said.
The Times of India; August 31, 2015 (Edited)
POWER DISTRIBUTION/DISCOMS
UP discoms improve, but still
among worst performers
The 5 discoms get poor ratings in terms of financial discipline and other issues
BRAJENDRA K. PARASHAR
UPs discoms have been found among the worst perfor-mers getting poor scores in the latest allindia integrated rating of the countrys 40 electricity distribution utilities by the ministry of power
(MoP). Though all the 5 discoms in UP have shown an improve-ment this time, they are still poor
performers, especially in terms of financial discipline and regulatory affairs, the ratings indicate.
Dakshinanchal Vidyut Vitaran Nigam Ltd (Agra discom) has got C grade, the worst rating that
stands for very low operational and financial capability, as per the results of the Third Integrated
Rating (based on the rating year 2014). The findings were disclosed a few days ago.
The discom shares its status with the Jharkhand Elec-tricity Board that is the only other power
distribution utility in the country to have got the C grade. The remaining four discoms Madhyanchal Vidyut Vitaran Nigam Ltd (Lucknow discom), Purvanchal Vidyut Vitaran Nigam Ltd
(Varanasi discom), Pashchimanchal Vidyut Vitaran Nigam Ltd (Meerut discom) and Kanpur
Electricity Supply Company (KESCo) - have all been rated better than the Agra discom. They have
got the C+ grade.
27
Of the 40 power distribution utilities in the country, two have got A rating (high operational and
financial capa-bility), 10 have been given B+ grade (moderate opera-tional and financial capability)
and 13 have been awarded the B grade (below average operational and financial capability).
Twenty-one utilities that have shown imp-rovement in their AT&C losses during the financial year
2014. Four are from UP - Lucknow, Agra, Varanasi and Meerut. Only KESCo has failed on this count.
The Lucknow discom has been able to improve upon its realisation of receivables which has
resulted in a signi-ficant improvement in revenue realised. This, in turn, has resulted in an
improved cost coverage and improved AT&C losses level. Varanasi discom rating has also improved
for the same reason. But KESCo was found to have high AT&C losses on account of high distribution
losses. However, its improved collection efficiency impro-ving AT&C loss level helped it get a better
rating this time.
Anti-theft measures, customer service facilities and special courts in all districts were among the
Agra discoms key strengths. But high levels of the AT&C losses (32.4% in 2014), besides other
weakness like poor finan-cial profile, negative net growth, etc., have earned it the poorest rating.
All the 4 discoms in Gujarat have got the best ratings (A+). They were found to have healthy cash
collection from customers, comfortable cost coverage ratio, timely sub-mitssion of audited
accounts and timely submission of ARR/tariff revision proposals. Above all, their AT&C losses were
as low as 6.61%-13.10% in case of 3 discoms. The fourth one, that is, Paschim Gujarat Vij Company
Ltd was, however, found to have relatively higher losses at 23.4% during 2014.
Scores were assigned both on the basis of absolute and relative improvement in operational and
financial performance parameters. Financial performance para-meters like subsidy received, cost
coverage ratio, AT&C losses, financial planning carry the maximum weightage of about 60% out of
a maximum score of 100 marks. Efficient regulatory practices like issue of regulatory guidelines,
tariff guidelines, timely filing of tariff petition and timely issue of tariff orders were the second most
important factors holding weightage of 15%.
The Hindustan Times; September 1, 2015 (Edited)
28
New Delhi: Delhi CM and Aam Aadmi Party (AAP) chief Arvind Kejriwal launched the electricity bill
disputes redressal scheme. If any area doesnt get electricity for more than an hour, electricity
companies responsible will be penalised, Kejriwal said.
Business Standard; August 30, 2015 (Edited)
29
The state had requested the Centre to allocate 1,500 MW of power additionally to the state to tide
over the shor-tage, and efforts were on to purchase power from neigh-bouring states. In the event
of non-availability of power from the central grid and neighbouring states, load shedding will
become inevitable. The government is already spending over 240 crore per month to tide over
the shortage of nearly 3,000 MW of power, and we are again planning to buy more from private
producers, Jayachandra added. Earlier in the day, energy minister DK Shiva Kumar said power
situation in the state has reached a precarious situation due to drought and they are doing their
best to tide over the crisis. Money is not at all an issue and we will buy more power from private
producers to keep the widening gap between demand and supply under check, he added.
The Times of India; September 1, 2015 (Edited)
REC has initiated a pilot project in Bihar to provide uninterrupted DC (UDC) power to consumers
during power cuts with the help of IIT Madras. This UDC power shall be sufficient to support every
household with 2-3 lights, 1-2 fans or a TV apart from charging mobile phones/laptop, even during
power shortages. Piyush Goyal, MoS, Power, Coal and New & Renewable Energy and Rajiv Pratap
Rudy, MoS, Skill Development and Entrepreneurship were present at the event.
The Hindustan Times, September 1, 2015 (Edited)
31
in making steel bars, chemicals, dyestuffs and processing of textiles. However, most of these units
are not aware of techniques by which waste heat generated in their plants can be reused," he said.
Financial Chronicle; August 31, 2015 (Edited)
32
meters are installed, the petitioners shall pay half the additional consumption deposit amount
demanded by the respondents which shall be refunded to the petitioners as soon as the pre-paid
meters are installed.
Deccan Chronicle; August 30, 2015 (Edited)
POWER TRANSMISSION
Central govt has excess power, but K'taka lacks transmission capacity
33
against the existing practice of giving an ex gratia of 2.5% of the fair value of the land provided for
the purpose, sources said.
As the protesters refused to relent, the government in January decided to enhance it to 100% of
the fair value and that amounted to 1,020 crore. The State is already facing a power shortage
and the crisis is set to deepen in the coming months. Any laxity in stepping up the power importing
capacity would invariably force KSEB to rely on other costly options such as diesel and naptha
stations. Officials of PGCIL, Power Department, and KSEB would attend the negotiations. The
Corporation is unlikely to wait indefinitely for completing the survey operations to commence and if
it decides to retract, it would prove dearly for the State, sources said.
The Hindu; September 3, 2015 (Edited)
CORPORATE/FINANCE/INVESTMENT
Payments banks 14 lakh cr bonanza
for infra sector
KPTL shares gain over 4% as company bags orders worth 880 crore
FE ONLINE
Kalpataru Power Tranmission (KPTL) shares gained as much as 4.6% intraday on Friday after the
company informed stock exchanges that it has bagged new order worth 880 crore in both
domestic and international markets. At 1.14 pm, the scrip was trading 0.87% higher at 254.50. It
opened at 252.50 and had touched a high and low of 267 and 252.50, in trade so far.
In a BSE filing, the KPTL said, The company secured 5 transmission line projects together valued
at 465 crore in Tanzania, Ukraine, Thailand, Tajikistan and Ethiopia. It also won a turnkey
contract for 400 kV transmission line of approximately 342 crore from Karnataka Power
Transmission Corp. KPTL has also won a 75 crore pipeline laying project from GAIL.
For the quarter ended June 2015, the company reported net profit of 48.41 crore, up 15.65%,
against 41.86 crore in the corresponding quarter a year ago. However, the scrip wiped off its
days gain in the second half of the trading session and closed 1.37% lower at 248.85
The Financial Express; August 28, 2015 (Edited)
Bhopal: As a part of the Integrity pact, Independent External Monitors (IEM) - DRS Chaudhary,
Retired IAS, Pravin Tripathi, Retired IAS and VVR Sastry, Retired C&MD, BEL - visited BHEL, Bhopal.
The monitors reviewed contracts valuing more than 10 crore. BHEL has appointed the IEMs to
35
ensure transparency and integrity in award and execution of contracts. The IEMs appre-ciated that
in past 6 years of introduction of Integrity Pact there has been no complaint. Besides, the IEMs also
visited Swarna Jayanti Block, New Transformer Block, Ultra High Voltage Testing Lab and Hydro Lab
of the unit.
Later, a meeting with IEMs was also held. On this occasion AMV Yugandhar, Executive Director,
BHEL, Bhopal; HK Nigam, General Manager, Materials Management, all General Managers and
other senior officers of the unit were present.
In the review it was reiterated that BHEL systems had matured and stabilised and appointing of
IEMs is a positive step in giving confidence to the public of the transparency and integrity in
company operations. Meanwhile, the BHEL administration has clarified that some forged
appointment letters are being used by few miscreants. The administration in a statement said, It
has been observed that some criminal elements are issuing letter of appointment using the name
of BHEL and the logo of the organisation. The letter also contains seal of Director, HR and signed by
some Ashok Kumar. It is therefore informed that no such appointment letter has been issued by
BHEL.
BHEL is registering First Information Report in police station in this regard. Nobody should
therefore get deceived by such imposters and if any such case comes in anyones knowledge, it
should be immediately reported to the police, it added
The Pioneer; September 3, 2015
36
commitments from over 10 international banks, including Adanis former chief financier for
Carmichael, Standard Chartered, and the Commonwealth Bank of Australia, to withdraw from the
project.
Business Standard; September 3, 2015 (Edited)
PUBLIC AFFAIRS/POLITICS/ACTIVISM
37
While Govt claims 24X7 power supply; Collector wants money to run
generator
NITENDRA SHARMA
Bhopal: The MP government has been claiming for around 2 years now that round-the-clock power
supply was being made across the state. However, the Collector of Raisen JK Jain, in a letter, has
demanded an allocation of 1.75 lakh from Commissioner, Treasury and Accounts for the running
generator in district treasury. The said letter has been forwarded by Commissioner Ashish
Upadhyaya to Principal Secretary, Energy, ICP Kesari.
According to sources, District Treasury Officer, Raisen had sought budget from the department for
running generator. Commissioner, Treasury and Accounts, raising an objection, said that when
there is 24 hours power supply in the state why where was the need for running generator.
Collector, Raisen in his response, informed the Commissioner that there is problem of power supply
in the district and hence budget should be allocated. Treasury office is situated in the Collector
Office in Raisen and it is clear that it is facing power supply issues.
Raisen district is a constituency of Union Minister for Foreign Affairs, Sushma Swaraj and it is the
only district in the state, which is represented by 3 ministers namely Gaurishankar Shejwar,
Rampal Singh and Surendra Patwa in the cabinet. Jain when contacted refused comment and said
that he was on training. According to sources, several districts in the state have sought budget to
run generators in Treasury. A senior officer of Energy Department maintain that adequate power
supply is being made in all districts and only Collector can tell why he is asking for budget for
generator. Previously, Power Distribution Company had released its power cut plan but when it was
protested, CM Shivraj Singh Chauhan had to give clarification saying that there was sufficient
power.
The Free Press Journal; August 27, 2015
38
that Rao would face the wrath of the people of Telangana if the government yielded to the
conditions of World Bank to get loans from it.
Recalling the struggle of the people in united AP over the increasing power tariff, he said that the
people taught the then CM N. Chandrababu Naidu a lesson by defeating him in the 2004 elections.
Mr Reddy addressed a programme conducted on the memory of martyrs who were killed during the
Basheer Bagh firing incident. Then onwards, no government tried to increase the power tariff
abnor-mally. He said that it is not correct to privatise the sectors related to the infrastructure in the
state.
Deccan Chronicle; August 29, 2015 (Edited)
39
PEOPLE
Public participation needed for
social development: Piyush Goyal
OUR BUREAU
New Delhi: PM Narendra Modi has given his nod for RP Watal, the senior most Secretary in the
Finance Ministry, to be designated as Finance Secretary. A 1978-batch AP cadre IAS officer, Watal is
currently Expenditure Secretary in the Finance Ministry.
40
Rising again?
He was passed over as the first chief secretary of Telangana when Rajiv Sharma was appointed to
the post. But now, things might look up for AK Parida. Presently special chief secretary of
environment and forests, the chances are that he will be appointed the next chief secretary of AP
after the present incumbent retires.
The Times of India; August 31, 2015 (Edited)
41