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National News Bulletin

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Daily Newsletter 2019

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Friday, November 15, 2019

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Infraline Comprehensive Power , Oil & Gas & Coal Only Detailed Newsletter

What’s New

Acts and Regulations

§  Order on Dhariwal vs NPCL -Petition no. 1318 & 1319 - Approval of procurement of Additional Coal in case of shortfall of FSA Grade Coal in FY 2018-19 for supply of 170 MW power

§  Order on Indian Energy Regulatory Services (IERS) vs DVVNL Petition under section 142 and section 42 (2) of EA 2003 against non-compliance of UPERC (T&C for open access) Reg. 2004 by the Distribution Licensee and its Franchisees in Petition no 1405/2019

§  Order on RKM Powergen Pvt Ltd vs UPPCL - Petition no 1506/2019 -1440 MW coal fired thermal power plant at Ucchipinda, Chattisgarh developed by RKM Powergen Pvt Ltd

§  Order on UPPCL vs RPSCL - Petition no 1502/2019 Petition for seeking accounts and details of Domestic and Imported coal fired at Thermal Power Plant of RSPCL between FY 2010-11 to FY 2012-13

§  Order on for Dhariwal Infrastructure Ltd. vs NPCL - Petition No. 1438/2019 & 1440/2019 - In principle approval of procurement and use of Additional Coal for FY 2019-20

View More...

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Performance of State Discom

New!

Power

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GE T&D commissions third of four planned poles of PGCIL’s Champa-Kurukshetra UHVDC project

GE T&D India Limited has energised the third of four poles planned of the Champa-Kurukshetra ultra-high-voltage direct current (UHVDC) project. This project is being developed for Power Grid Corporation of India Limited (PGCIL).

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PowerGrid's potential InvIT could be less than 20percent of targeted size

Proceeds from this would be used to pay higher dividend, depending on the profit recognised on such sale of assets or capital expenditure layout, the company said

§  CESC junks power split

§  Biggest drop in power demand makes Indian banks' bad debt headache worse

§  BSES launches blockchain tech platform for power trading

§  CG Power to put its Worli head office up for sale

§  BHEL Q2 profit slumps 36percent to Rs 119 cr as revenue from operations falters

§  Will Budgetary Support to promote Hydro Electric (HE) Power encourage DISCOMS to purchase power from HEPs?

[Poll Question]

Projects Update

Project Name

Promoter

Capacity

State

Kamalanga Thermal Power Plant Phase-1

GMR Kamalanga Energy Ltd.

1050 MW

Odisha

Kamalanga Thermal Power Plant Phase-2

GMR Kamalanga Energy

350 MW

Odisha

Rosa Thermal Power Plant Phase-2

Rosa Power Supply Company (Reliance Power)

600 MW

Uttar Pradesh

Rosa Thermal Power Plant Phase-1

Rosa Power Supply Company (Reliance Power)

600 MW

Uttar Pradesh

Chandrapura Thermal Power Plant Extension 500 MW

Damodar Valley Corporation

500 MW

Jharkhand

Renewable Energy

 

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Suzlon Energy Q2 net loss widens to Rs 777 cr

Revenue from operations fell to Rs 803.09 crore during the quarter under review as against Rs 1,194.99 crore in the year-ago period.

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Three Bidders For SECI’s Manufacturing Linked Tender

SECI Receives Bids For 8 GW Solar PV Project Capacity Linked With 2 GW Manufacturing Capacity From Adani Green Energy, Azure Power & Navyug Green Energy

§  Several wind power projects miss completion deadlines

§  Indian solar tender with manufacturing finally oversubscribed

§  Canada Institutional Investor CDPQ to Invest $75 Million in Azure Power

§  Solar Power Generation Dipped in the Third Quarter of 2019 By Nearly 14 percent

§  Hindustan Insecticides Issues Tender for 2.15 MW of Solar Projects with Battery Storage

§  Hindustan Aeronautics Floats Tender for 2 MW of Solar Projects in Hyderabad

§  BHEL Issues Tender for Solar Powered Classrooms in Karnataka as Part of its CSR

§  Does Anti-Dumping probe benefit Domestic Solar Manufacturers in India?[Poll Question]

§  Ecoppia Robotic Cleaning Solution for 427 MW of Fortum’s Solar Plants in India

§  SECI's 5 GW manufacturing-linked solar auction gets good response

§  Adani Green Energy Q2 profit at Rs 102 crore

Projects Update

Project Name

Plant Owner

Capacity (MW)

State

Chhayan Solar plant

Tata Power Renewable Energy Limited (TPREL)

150

Rajasthan

Ramanathapuram Solar Project

Neyveli Lignite Corporation Limited (NLC India Limited)

95

Tamil Nadu

Tirunelveli Solar Power Plant

Neyveli Lignite Corporation Limited (NLC India Limited)

100

Tamil Nadu

Ibrahimpatanam Solar Power Project

Bharat Dynamics Ltd.

5

Telangana

Kothagudem Solar Photovoltaic Power Project

Singareni Collieries Company limited (SCCL)

37

Telangana

Oil & Gas

 

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Implementation of Government Policy PAHAL (DBTL) Scheme, PMUY and Financial Aspects- 2019 [Exclusive]

LPG is a cleaner fuel, so to promote LPG for domestic use & as cooking fuel by making it affordable, govt of India announced policies such as PAHAL and PMUY. A subsidized supply of domestic LPG was proposed to save customers from highly unstable international prices.

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Chennai: Oil spill recovery vessel flagged off at city port

​​The vessel – Marudham — was flagged off by minister of state for shipping Mansukh L Mandaviya on Thursday. The vessel was bought at a cost of Rs 14 crore

§  Can India attain the objective of decreasing 10% crude oil import by 2022?

[Poll Question]

§  Petrol price see another hike, up by 85 paise in 10 days. Diesel stagnant

§  Asian gasoil margins slump to 5-mth low as India opens export taps

§  Govt considers cutting stake in Indian Oil to below 51percent

§  ONGC second quarter net profit falls 37 per cent to Rs 5,487 crore

§  India: Major ports record muted performance on fall in coal, fertilizer cargo

§  Centre to expedite gas projects in Kerala

Oil & Gas Technical

New!

 

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First Cobalt seeks government backing to restart Canadian refinery

First Cobalt Corp is in advanced talks with Canada’s Ontario province to finance the $37.5 million required to restart its idled cobalt refinery, President and Chief Executive Officer Trent Mell said.

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OPEC chief says rival oil supply could underperform

U.S. shale oil supply growth could slow down next year, OPEC’s secretary general said in his latest indication that the oil market in 2020 could surprise to the upside.

§  ADNOC: Oil is our gold and we aim to use all of it

§  Finland's Gasum boosts LNG business in Nordics with Linde deal

§  Saudi Aramco to supply LNG to Bangladesh

§  Oxy looks to sell as much as $15 billion in assets by mid-2020

§  Qatar joins Gulf producers in oil-price formula overhaul

§  Oil rises on signs of U.S. supply drop, OPEC’s shale outlook

Daily International Coal Prices

New!

Coal

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China, India are the problem and solution for coal, climate change

The latest IEA report outlined three scenarios for energy use up until 2040, namely current policies, stated policies and the sustainable development scenario

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Draft coal auction plan ready

The government had noted 32,56,715 metric tonnes of coal was lying in 4 mining districts of Meghalaya

§  Will Commercial Coal Mining attract global players to invest in India?

[Poll Question]

§  Coal mine auctions close with significant variation across winning bid prices

§  Coal India down despite steady earnings in Q2

§  India: Major ports record muted performance on fall in coal, fertilizer cargo

Roads

 

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States may have to bear full cost for land acquisition

A National Highways Authority of India (NHAI) circular, which suggests that State governments have to bear the entire cost of land acquisition for new road projects, has raked up a controversy among engineers in the State.

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Away from highway, several roads in Chennai's T Nagar cry for attention

According to T Nagar residents, while the Chennai Corporation seems to have beautified Thyagaraya Road in a hurry, other roads have been neglected.

§  Interest Bearing Working Capital Advance against unbilled executed work to mitigate the cash flow problems of HAM Concessionaires EPC contractors and modification in Schedule - H of the EPC Contract [Exclusive]

§  No progress in Karur Bypass Road widening

§  Ashoka Buildcon Q2FY20 EPC Revenue at Rs. 862Crores

§  Six-laning project hangs fire in Kurukshetra

§  Delay in land acquisition holds up work on e-way cloverleaf flyover

§  Do you think Govt may achieve FY20 road awarding target?

[Poll Question]

Projects Update

Project Name

Promoter/Client

State

Length (Km)

Four Laning of Puducherry to Poondiyankuppam (NH-45A) (New NH-332)

NHAI / IRB Infrastructure Developers Limited (M/s. Modern Road Makers Pvt Ltd)

Tamil Nadu

38

Eight Laning Mukarba Chowk to Panipat (NH-1)

NHAI / Essel Infra

Haryana

69.84

Four laning of Kharar to Ludhiana (NH-95) New NH-05

NHAI/Ashoka Buildcon

Punjab

76

Four Laning Tarsod-Fagne (Package-II- B) section (NH-6)

NHAI/MBL Infra and Agroh Infra JV

Maharashtra

87.3

Four Laning of Sethiyahopu – Cholapuram (NH-45C)

NHAI / Patel Infra

Tamil Nadu

50.48

Power(7 News Items)

General


GE T&D commissions third of four planned poles of PGCIL’s Champa-Kurukshetra UHVDC project

·         GE T&D India Limited has energised the third of four poles planned of the Champa-Kurukshetra ultra-high-voltage direct current (UHVDC) project. This project is being developed for Power Grid Corporation of India Limited (PGCIL).

·         This adds an additional 1,500 MW of capacity to the 1,305-km link, which is now transmitting 4,500 MW, a GE statement said.

·         A special feature of the Champa project is the use of an overhead line “dedicated metallic return,” which uses a neutral conductor as a part of the DC circuit. GE is the first company in the world to demonstrate this technology with this project. This eliminates the typical technical and environmental issues associated with the traditional electrode solution, the statement noted.

·         This transmission line will help provide reliable electricity for millions of people living in the states of Punjab, Haryana, Delhi, Uttar Pradesh and surrounding areas, the statement added.

·         The Champa-Kurukshetra project transmits electricity from power generating plants located across Chhattisgarh to a GE-built rectifier station in Champa, where it is converted from alternating current (AC) to direct current (DC). The electricity is transported in bulk across the UHVDC line and is then converted back to AC by a GE inverter station in Kurukshetra, Haryana.

·         From there, power is transported to the surrounding rural states who are in need of reliable and consistent electrical power.

·         Phase 1 of the project, completed in 2017, provided 3,000 MW of transmission capacity. GE recently commissioned Pole-3, adding another 1,500 MW of transmission capacity, marking a key benchmark towards the completion of Phase 2. Once Pole 4 is commissioned, the entire system will transmit 6,000 MW of electricity at 800 kV, the statement said.

Source

 

Top

PowerGrid's potential InvIT could be less than 20percent of targeted size

·         The potential asset monetisation exercise of state-owned electricity transmission operator Power Grid Corporation of India (PGCIL) could be much lower than the Rs 10,000 crore expected by the government.

·         Close to Rs 2,000 crore worth of its assets, the company has told its investors, would be eligible for the Infrastructure Investment Trust (InvIT) route. Proceeds from this would be used to pay higher dividend, depending on the profit recognised on such sale of assets or capital expenditure layout, the company said.

·         Power Grid plans to set up a Special Purpose Vehicle (SPV) wherein it will transfer some of its assets. This SPV would be part of the InvIT to be floated by Power Grid. Sources privy to the investor concall said the firm disclosed only some projects of those acquired through the cost-plus mode (directly awarded by the government) would be eligible, as they’d lose value during the transfer. “Broad guidelines for undertaking an InvIT are with the understanding that the rate for the consumer should not go up. Given the stamp duty, there will be cost implications on transfer of assets to SPV. It seems difficult that the basket of cost-plus assets will be large at this point of time,” the firm is learnt to have told its investors.

·         Company executives said they, however, continue to explore the issue of transferring their cost-plus assets and have held discussions with the Central Electricity Regulatory Commission.

·         Regarding the assets it has acquired via the TBCB or tariff-based competitive bidding route, executives said of the Rs 3,000 crore worth of such assets with Power Grid, projects totalling Rs 1,700 crore could comply for transfer to the InvIT.

·         “Transmission service agreements have clauses which allow dilution of 51 per cent, 74 per cent and 100 per cent from the date of commissioning to two years, two to five years and beyond five years (respectively),” said an investor.

·         In its presentation, Power Grid said the assets transferred to the InvIT would continue to be operated and maintained by it. PGCIL expects investment of Rs 2.8 trillion between 2020-21 and 2029-30 in inter-state projects and a similar amount in intra-state ones. Put together, the investment basket is expected to be Rs 560 crore.

·         Following the slowdown in the power sector, the company’s capital works have been on a downslide for four years. Since 2015, this has come down by 53 per cent to Rs 34,635 crore in 2018-19, owing to the decreasing number of new projects. Apart from state-owned NTPC adding generation capacity, no private power generator has applied for ‘long-term access’ or transmission connectivity since 2013.

·         In 2018, the central government said it was identifying assets -- including rail lines, national highways and power transmission lines — for monetising through InvITs. The price of the units will be tied to performance of these assets and the money used for further infrastructure development. The amount earned through these units will not be part of disinvestment or non-tax revenue and, hence, will not be used for bridging fiscal gaps, this publication had reported of the intention.

Source

 

Top

CESC junks power split

·         CESC has scrapped the plan to unbundle the power generation and distribution business after waiting for more than two years to get an approval from the state electricity regulator.

·         The board of the company on Thursday decided “that it would be prudent and in the best interests of the company, its shareholders and other stakeholders to no longer pursue the said demerger”.

·         CESC, the flagship of the RP-SG Group, did not disclose what led to the reversal of the decision which the board took on May 18, 2017, and subsequently executed partially.

·         The company had proposed a four-way split of power generation, distribution, retail and new businesses (FMCG and business process outsourcing).

·         While the National Company Law Tribunal (NCLT) approved the plan on March 28, 2018, the split of the power business was sent for clearance to the West Bengal State Electricity Regulatory Commission (WBERC).

·         According to the scheme of arrangement, all power generation utilities — including the ones that serve Calcutta licence areas — would have been transferred to Haldia Energy, a wholly owned subsidiary of CESC.

·         CESC had sought an approval from the regulator for a power purchase agreement between CESC and Haldia Energy. But on February 16, 2018, the commission declined permission and asked the company to approach it with a fresh proposal under section 17(3) of the Electricity Act, 2003.

·         On October 12, 2018, the company decided to tweak the demerger plan keeping the unbundling of the power business on hold till the commission’s approval. Subsequently, Spencer’s Retail and CESC Venture started trading on the bourses. On Thursday, CESC decided to junk the plan altogether and approach NCLT.

·         Sources in ERC said the regulator was unaware of CESC’s plan not to go ahead with the demerger. “We had sought certain clarifications, which are still awaited. For us, the status quo remains,” sources added.

·         Profit up 18%

·         CESC has reported a healthy rise in standalone income and profit for the second quarter. Total income rose 9 per cent to Rs 2,382 crore compared with Rs 2,185 crore a year ago.

·         Profit went up 18 per cent to Rs 217 crore in the second quarter from Rs 184 crore in July-September of 2018-19.

Source

 

Top

Biggest drop in power demand makes Indian banks' bad debt headache worse

·         The biggest drop in India’s electricity demand in at least 12 years is hindering efforts of Indian lenders to recover a pile of loans to power producers that have soured.

·         Banks had about Rs 1.8 trillion ($25 billion) of stressed loans to India’s coal-fired power generators as of last year, according to the State Bank of India. Prospective bidders for these stressed generators are wary as demand from the country’s power distribution utilities contracted in three straight months to October.

·         India’s electricity demand is closely linked to its industrial output, which contracted in September to its lowest level in eight years. An overwhelming majority of data is pointing to continued weakness in the economy that expanded 5 per cent in the quarter ended June -- the slowest pace in six years.

·         chart

·         Flagging electricity demand “clouds efforts to resolve bad debt in the power sector,” said Debasish Mishra, partner at Deloitte Touche Tohmatsu in Mumbai. “Some bidders evaluating these power generators might demand even deeper haircut from banks.”

·         Drop in demand is adding to the weak financial health of the power distribution companies, also called discoms. These state-controlled utilities often serve the populist plans of their political masters by selling power below cost to certain groups of consumers, which leaves them financially broke.

·         Booming demand has often been seen as an answer to this problem, giving room to discoms to raise prices and bridge the gap between the cost of supplies and revenues. Weak demand exacerbates the problems, imperiling the entire sector.

·         However, some power projects, including GMR Chhattisgarh Energy Ltd., and SKS Power Generation Chhattisgarh Ltd. have found new bidders, while some others including RattanIndia Power Ltd.’s Amravati project in Maharashtra and GMR Kamalanga are nearing a resolution with lenders writing off part of the loans.

·         “Loan write-offs are set to go deeper, as bidders will grapple with new realities of slowing economic growth and declining power demand,” said Hemant Kanoria, chairman at Srei Infrastructure Finance Ltd., which bids for stressed assets. “India needs to help lenders nurse these assets back to health rather than sell them off at distressed prices.”

Source

 

Top

BSES launches blockchain tech platform for power trading

·         In a major environment-friendly digital initiative, Delhi electricity distribution company (discom) BSES on Wednesday announced that BSES Rajdhani Power Ltd (BRPL) has partnered Australias Power Ledger, a global leader in blockchain technology, to launch consumer-to-consumer (peer-to-peer or P2P) solar power trading on a trial basis.

·         A BSES statement said that Power Ledger's blockchain-based platform can enable consumers even without rooftop solar, to trade power between themselves.

·         According to the company, BRPL has, thus, become India's first discom to use a blockchain-based platform for P2P solar trading.

·         "A feasibility study has been successfully undertaken. The offering will rolled-out, once the regulatory approvals are in place," it said.

·         "The pilot project will initially be carried-out amidst the existing and select group of gated community (CGHS) solar consumers in Dwarka who generate around 5-6 MW of solar-power. These consumers will be able to trade solar power their neighboring apartments and buildings using this platform rather than letting it spill-back to the grid."

·         Consumers with rooftop solar infrastructure can sell their excess solar energy to their neighbours even if they don't have rooftop solar, using the energy trading platform.

·         "Thus, even consumers who don't have roof-top solar will benefit by purchasing cheaper and cleaner electricity, compared to the slab-rate of the discom, which as consumer they would otherwise have to pay," it said.

·         P2P surplus solar power trading among consumers connected to the same distribution transformer is expected to result in optimal loading of the distribution transformer (DT).

·         "The platform will give BRPL access to a cost-effective energy alternative during the times of peak demand pricing. Apart from this, the discom will also benefit by not having to purchase solar energy exported to the grid, gain revenue through transaction fee and wheeling charges as also create and actively engage in a two-way positive relationship with its consumer base," the statement said.

·         There is no specific hardware device or investment required to sign up to the blockchain-based platform.

·         "This technology is a transactive layer that utilises close to real-time data from smart meters to facilitate the P2P trading environment. All that is required is access to solar power infrastructure - solar power panels installed on the roof of the house, or solar power infrastructure within the consumers' community," it added.

Source

 

Top

CG Power to put its Worli head office up for sale

·         CG Power and Industrial Solutions will soon put on the block its corporate head office building, a landmark in Mumbai’s posh Worli area, as a part of its plan to monetise assets to help revive the cash-strapped company.

·         The company is dealing with muted cash flows and huge debt at a time when an alleged fraud in the company has come to light. The company will monetise assets like head office building ‘CG House’ and is also working with lenders to resolve its debt issues after nine of its fourteen lenders, constituting 88% of total outstanding credit facilities of the company by value, signed an Inter Creditor Agreement (ICA).

·         “Our intent is to monetise our assets, which would mean consummating the deal for sale of Kanjurmarg land. We will put ‘CG House’ on the block. We will also go for semi-equity or an equity issuance,” Sudhir Mathur, executive director, told investors on Wednesday.

·         The company is in pact to sell its land at Kanjurmarg to Evie Real Estate for Rs 279.94 crores. The company did not share valuation of ‘CG House’. According to the website of the real estate firm Jones Lang LaSalle, which lists ‘CG House’ for rent, the building has 13 floors and a total area of 80,424 square feet.

·         Mathur said the company is conducting a ‘deep’ study on potential of overseas arms to be concluded in two months, after which a decision on their future would be taken.

·         “Our first job is to protect the India business, where the margins are great and CG brand is valued. With limited capital, our priority will be India business. Internationally, all options are open, including getting investors there partially,” he said.

·         The monetisation of assets will ease the company’s stretched working capital position which is curbing its ability to grow. “A significant part of the operating cash flow from previous year and till we signed an ICA has gone towards repayments and interest payments. As a consequence of that, our overdue creditors have shot up significantly and our working capital is strained,” Mathur said.

·         He said the company aims to raise funds through an equity or quasi-equity issue and has sought the regulator’s exemption from a certain clause. ET was first to report that the company aims to raise around ?800 crore for which it sought an exemption for the Securities and Exchange Board of India from a norm that bans companies from accessing the capital market if promoter and directors have been banned from the markets, as is the case with CG.

Source

 

Top

BHEL Q2 profit slumps 36percent to Rs 119 cr as revenue from operations falters

·         Public sector engineering major Bharat Heavy Electricals Ltd (BHEL) on Wednesday reported a 36 per cent year-on-year decline in its net profit at Rs 119 crore for the quarter ended September.

·         Lower net revenue from the operations and high expenses steered the fall in quarterly net profit. The company had reported a profit of Rs 185 crore in the corresponding quarter of previous financial year.

·         BHEL said its revenue declined by 8 per cent to Rs 6,226 crore for Q2 FY20 against Rs 6,780 crore in Q2 FY19. Earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs 267 crore while EBITDA margin improved at 4.3 per cent against 3.5 per cent year-on-year.

·         The company spent Rs 4,316 crore for acquiring the materials consumed including erection and engineering in Q2 which is largely similar to the previous quarter spending of Rs 4,388 crore.

·         BHEL's diluted and basic earnings per share on the basis of standalone earnings reduced to Rs 0.34 in the July to September quarter of FY20 from Rs 0.50 per equity share from the quarter ended September last year.

Source

 

Top

Renewable(12 News Items)


Suzlon Energy Q2 net loss widens to Rs 777 cr

·         Suzlon Energy on Thursday reported widening of its consolidated net loss to Rs 777.52 crore in the quarter ended September 30, 2019. The company had reported a net loss of Rs 625.76 crore in the corresponding quarter last fiscal, Suzlon Energy said in a BSE filing.

·         Its revenue from operations fell to Rs 803.09 crore during the quarter under review as against Rs 1,194.99 crore in the year-ago period.

·         The company's total expenses were at Rs 1,551.16 crore as against Rs 1,850.28 crore in the same period of preceding fiscal.

·         "The sector is witnessing issues on project execution due to some policy issues but there has been some healthy growth in installations over the last year. Wind capacities added in India in H1 2019-20 was at 1,304 MW as compared to 569 MW in H1 2018-19," Suzlon Group CEO J P Chalasani said in a separate statement.

·         "Our operations are at a subdued level with minimal allocation of funding as we are trying to fix our capital structure," he added.

Source

 

Top

Three Bidders For SECI’s Manufacturing Linked Tender

·         Several extensions and modifications later, the Solar Energy Corporation of India (SECI) can finally heave a sigh of relief for its mega manufacturing linked solar project tender. It has now received offers for 8 GW of solar PV project capacity linked with 2 GW of manufacturing capacity from three bidders.

·         Mercom India Research reports the bids have come from:

·         Adani Green Energy for 4 GW projects with 1 GW manufacturing capacity,

·         Azure Power and

·         Navyug Green Energy have each bid for 2 GW of project capacity and 500 MW of manufacturing capacity.

·         This way 7 GW of project capacity tendered has been oversubscribed by 1 GW.

·         SECI had originally issued a manufacturing linked tender in May 2018 for 5 GW production capacity with 10 GW project capacity and a maximum tariff payable at INR 2.93 per kWh for 25 years. In January 2019, the government rejected the sole bid it received from Azure Power finding it unreasonable as per local media reports and said it will re-issue the tender.

·         In June 2019, SECI launched a fresh interstate transmission system (ISTS) connected solar power project development tender linked with 2 GW annual manufacturing capacity capping bids at INR 2.75 per kWh, which Mercom said back then was a revamped version of its January 2019 tender.

·         A Press Trust of India (PTI) report points out that India suffers a forex outflow of around $10 billion annually as it is dependent on Chinese solar modules for 95% of its requirement.

·         Recently, the Indian Renewable Energy Development Agency Limited (IREDA) has proposed to provide term loan assistance under this manufacturing linked tender of SECI stating in a letter that it would be happy to examine any such proposal from a qualified bidder.

·         India has an official target to achieve 175 GW of renewable energy capacity by 2022, including 100 GW solar, which the government says it is confident of overachieving with 200 GW to be installed cumulatively by 2022. Indian Prime Minister Narendra Modi announced at the 2019 Paris Climate Action Summit that his country would be increasing overall renewable energy capacity to 450 GW by 2030.

·         However, event the 2022 target seems a long way to go. End of July 2019, the cumulative grid-interactive solar PV capacity of India was over 30 GW out of 81.3 GW of total renewable energy capacity.

Source

 

Top

General


Several wind power projects miss completion deadlines

·         Several wind power projects have missed their completion deadlines. Wind energy companies (developers) blame the delay mainly on non-availability of land.

·         Ever since wind power projects began in February 2017 to be awarded through auctions to energy companies on the basis of who offers to sell power at the lowest prices, there have been 16 successful auctions so far (not counting the cancelled ones). Eighty projects, worth 14,412.64 MW of capacity have been awarded to wind developers.

·         Each auction has its own deadline for completion of projects awarded under it. By now, 5,087 MW of projects should have come up, against which the achievement is 1,707 MW.

·         Gujarat overwhelmed

·         Of the 14,412 MW awarded, 9,370 MW were through eight successful auctions of SECI, a government of India-owned company meant to foster development of renewable energy projects in the country. SECI buys power from wind (and solar) companies and sells the power to electricity distribution companies (discoms) in non-windy States, under back-to-back agreements with the discoms.

·         Under the SECI auctions, a developer could put up his project at a place of his choice – the company would get paid the agreed per-kWhr tariff for the electricity delivered at the agreed sub-station.

·         As the competitively-determined tariffs squeezed margins, most developers opted to put up their projects in the two windiest States of India – Tamil Nadu and Gujarat. Out of the 31 projects awarded under the first five SECI auctions, (for which developers have disclosed the States of choice), 21 opted for Gujarat, 9 Tamil Nadu and one Karnataka.

·         An overwhelmed Gujarat government felt it was not all right that 21 projects worth 4,975 MW should take up its windiest sites and all the cheap power should go to other States. So, it put the stopper on allocation of land, wanting to reserve the lands for itself. The projects got stuck.

·         BusinessLine learns that a high-level meeting between Gujarat and the Ministry of New and Renewable Energy took place in Delhi on Wednesday to find a solution to this problem.

·         TN situation

·         In Tamil Nadu too, land issues have cropped up. The State is refusing to let wind turbines be put on agricultural lands. Many in the industry believe there is more to it than meets the eye.

·         The deadlines for the other projects are closing in. As much as 2,950 MW of SECI IV and V and 500 MW of Maharashtra are scheduled to come up in calender 2020. If the land issue doesn’t get sorted out, there is no hope in hell that they would.

·         Nor can the developers move to elsewhere because other States have less wind resources, which will affect power generation and hence viability.

Source

 

Top

Indian solar tender with manufacturing finally oversubscribed

·         The Solar Energy Corporation of India (SECI) received bids for 8 GW of solar power projects linked with 2 GW of photovoltaics (PV) manufacturing capacity in a tender after its increased the solar electricity tariff cap.

·         The government solar agency extended the deadline for bids in the 7-GW solar tender several times this year as it failed to attract significant interest. It amended certain clauses to make the tender more attractive, including lifting the maximum tariff for the solar electricity from the projects to INR 2.93 (USD 0.041/EUR 0.037) per kWh, from INR 2.75/kWh previously.

·         Mercom India Research said today Indian companies Azure Power Global Ltd (NYSE:AZRE), Adani Green Energy Ltd (BOM:541450) and Navyuga Engineering Co have bid to develop 8 GW of PV projects and set up 2 GW of manufacturing capacity, which is 1 GW above the solar project capacity the tender seeks to award. Adani bid for 4 GW of power and 1 GW of manufacturing capacity, while each of the other two bidders proposed to establish 2 GW of solar parks and 500 MW of manufacturing plants.

·         The tariff-based reverse auction to determine the final awards will be held in the coming weeks, according to Mercom’s report. The solar projects will get 25-year power purchase agreements (PPAs).

·         (INR 100 = USD 1.39/EUR 1.26)

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Canada Institutional Investor CDPQ to Invest $75 Million in Azure Power

·         Caisse de dépôt et placement du Québec (CDPQ), one of Canada’s leading institutional investors, has announced that it will invest $75 million in Azure Power Global Limited, a solar power developer in India.

·         Once the transaction is complete, which is subject to approval from Azure Power’s shareholders and other customary closing conditions, CDPQ’s stake in Azure Power will increase from 41.4% to 49.4%.

·         Last year, Mercom had reported when CDPQ had announced that its stake in Azure Power had been increased to 40% through ₹7.32 billion ($0.1 billion) contribution to the company’s capital raising.

·         According to Mercom’s India Solar Project Tracker, Azure Power has around 1.7 GW of large-scale solar projects in operation, and ~1.9 GW of solar projects are under the development pipeline.

·         Earlier this year, CDPQ announced that it had raised its target for its carbon-neutral assets to CA $32 billion (~$24.2 billion) by 2020.

·         CDPQ has been actively involved in solar-related investments in the past few years. Last year, the company had announced an investment of CA$150 million (~$114 million) in debt financing to ContourGlobal. ContourGlobal is a platform for acquiring and developing energy assets with long-term contracts across the world.

·         The global investor also invested CA$50.4 million (~$38.29 million) in a leading U.S. residential solar company, Sunrun.

·         There was another foreign investment in an Indian renewable energy company recently. Just a few days ago, the United Arab Emirates-based Masdar invested around $150 million (~₹10.7 billion) in Hero Future Energies. This was the second such strategic investment in HFE since 2017 when an investment of $125 million (~₹8.94 billion) was made by the International Finance Corporation (IFC), which is an arm of the World Bank.

·         According to Mercom Capital Group’s recently released 9M 2019 Solar Funding and M&A Report, the total corporate funding (including venture capital/private equity, public market, and debt financing) in the first nine months (9M) of 2019 was up with $9 billion raised, compared to $6.7 billion that was raised in the same period last year, a 34% increase year-over-year (YoY).

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Solar Power Generation Dipped in the Third Quarter of 2019 By Nearly 14 percent

·         Solar power generation numbers declined by 14% quarter over quarter (QoQ) in the third (Q3) quarter of 2019. Solar power generation in India stood at 10,530 million units (MUs), according to the data released by the Central Electricity Authority (CEA).

·         The decline in generation numbers is not a surprise as the quarter coincided with the monsoon season when solar generation typically dips.

·         In the first nine months (9M) of the calendar year (CY) 2019, solar power generation totaled 34,207 MUs, a 29.6% increase on a YoY basis when compared to the 26,449 MU of solar electricity generation in 9M of CY 2018.

·         Solar power generation peaked in March and April. The decline in solar power generation started in May and June; this has been a yearly trend, which is clear in the monthly chart below. The rainy season in the country affected solar power generation significantly.

·         Solar power generation in India has continued to grow, albeit at a slower pace despite nagging issues such as curtailment, low tariffs, delayed payments, and lack of availability of transmission infrastructure and land.

·         Recently, the Ministry of New and Renewable Energy (MNRE) issued a letter to the chief secretaries of all states and union territories, asking them to ensure that ‘must run’ status has been accorded to both wind and solar power projects in the states in line with the Indian Electricity Grid Code 2010 and the Electricity Act 2003. However, it remains to be seen what the MNRE can do if states continue to violate the must-run status rules. This challenge, which is becoming widespread, has started to affect the solar generation and needs to be addressed immediately to the meet solar installation goals by 2022.

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Hindustan Insecticides Issues Tender for 2.15 MW of Solar Projects with Battery Storage

·         Hindustan Insecticides Limited, a government-owned enterprise, has issued an expression of interest (EOI) for 2.15 MW of solar projects with battery energy storage systems (BESS) to be installed at three of its manufacturing units in the states of Kerala, Maharashtra, and Punjab.

·         The tender includes both ground-mounted and rooftop solar projects. The overall estimated cost for the projects is ₹96.89 million (~$1.35 million).

·         It plans to set up a 603.5 kW project at Udhyogmadal in Kerala costing an estimated ₹27.19 million (~$380,084) , a 1,540 kW project at Rasayani in Maharashtra for about ₹68.85 million (~$962,159) and a 17.6 kW project at Bhatinda in Punjab for around ₹844,800 (~$11,805.8).

·         The projects are to be developed under the RESCO model. The RESCO model is a system where the solar project is owned by the developer, and the consumer only has to pay for the energy generated.

·         The last date for bid submission is November 28, 2019. The timeline for the commissioning of the projects will be 120 days from the date of issue of the work order.

·         The scope of work under this tender would cover the design, engineering, supply, construction, erection, testing, commissioning, and operation and maintenance of the projects as well as the BESS. HIL will enter a power purchase agreement (PPA) with the successful bidder for a period of 25 years.

·         Applicants are expected to come from a related field with three years of relevant experience in installing solar power systems. They must have installed at least 2 MW of solar projects; previously, the tender document stipulates.

·         The tender stipulates that the net worth of an interested bidder should be 15% of the annualized bid value while the turnover should be 50% of the bid value.

·         Recently, another government enterprise, Hindustan Shipyard Limited, announced that it was planning to increase its rooftop solar capacity by adding 1 MW installation at its premises in the state of Andhra Pradesh. This project will be installed under the RESCO model and will be executed by CleanMax Solar.

·         Then in July 2019, Mercom reported about three small solar tenders floated by government-owned enterprises.

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Hindustan Aeronautics Floats Tender for 2 MW of Solar Projects in Hyderabad

·         The Hindustan Aeronautics Limited (HAL) has issued a Request for Selection (RfS) for setting up of 2 MW of solar projects under RESCO mode at its Avionics Division in Hyderabad.

·         The project is to be developed on a build-own-operate (BOO) basis, and the last date for the submission of bids is December 9, 2019.

·         Prospective bidders are expected to pay a sum of ₹2 million (~$28,025.3) as the earnest money deposit (EMD), and the period of execution of these projects is six months.

·         According to HAL, the project is a part of the defense program for setting up over 300 MW of grid-connected and off-grid solar PV power projects under the Jawaharlal Nehru National Solar Mission (JNNSM).

·         The scope of work includes setting up a solar PV project, along with the power evacuation network up to the designated point and to the nearest substation within the campus. It also involves the development, construction, synchronization, commission, and operation and maintenance of the 2 MW solar PV power project. The generated power will be sold to HAL for a period of 25 years. As per the tender document, the maintenance of the transmission system up to the interconnection point will also be the responsibility of the successful bidder.

·         The project under the developer mode will be free to procure solar cells and modules under the open category (indigenous or imported).

·         The entire cost of transmission, including the cost of construction of the lines, wheeling charges, and losses from the project up to the delivery point will be borne by the selected bidder and will not be met or reimbursed by HAL.

·         Based on the RfS, the selected bidder must submit a performance guarantee for a value of ₹6,000,000 (~$84,076) before signing the power purchase agreement (PPA) or three weeks from the date of issue of Letter of Intent (LoI).

·         As far as the technical bids are concerned, the successful bidder should strictly comply with the technical parameters. Further, the cells and modules used in the project should be sourced only from the modules and manufacturers included in the Approved List of Models and Manufacturers (ALMM), as published by the Ministry of New and Renewable Energy (MNRE).

·         It should be noted here that recently, the ministry issued a notification shedding light on its earlier order regarding the compulsory registration under the Approved Models and Manufacturers of Solar Photovoltaic Modules. The MNRE has stated that the list would consist of List-1, which specifies the models and manufacturers of solar PV modules, while List-II will specify the models and manufacturers of solar PV cells. Both the lists will come into effect from March 31, 2020.

·         Moreover, according to HAL, the net worth of the bidder for this tender should be at least ₹10.7 million (~$0.15 million)

·         The company has committed to install 50 MW of renewable energy power projects to reduce its carbon footprint and has already installed wind and solar power projects of nearly 46 MW capacity.

·         Meanwhile, a few weeks ago, Mercom reported that the electronics manufacturing division of HAL issued a Request for Information to identify a potential Indian entity for business cooperation in the electric vehicle charging business.

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BHEL Issues Tender for Solar Powered Classrooms in Karnataka as Part of its CSR

·         Bharat Electronics Limited (BHEL) has issued a Request for Selection (RfS) for setting up 122 solar-powered smart class facilities in government high schools of Yadgir district of Karnataka.

·         The project falls under its Corporate Social Responsibility (CSR). In August 2019, Mercom reported on how CSR funds can be an effective tool for solar expansion. The concept of CSR, which was introduced through the Companies Act 2013, puts the onus on companies to formulate policies which will help in uplifting the community.

·         The total capacity of the project is 36.6 kW. The last date for the submission of bids is November 22, 2019, while the tender opening date has been scheduled for November 23, 2019.

·         The scope of work includes the design, supply, testing, installation, and successful commissioning of the smart class hardware and educational digital content, including five years of comprehensive annual maintenance contract (CAMC).

·         The work for the smart class hardware involves the supply, installation, commissioning, and maintenance of solar-based standalone power systems with battery and other associated infrastructure and equipment, including the central processing unit (CPU) preloaded with educational digital content.

·         The PV systems should carry an overall warranty of at least five years. Solar PV modules should be of the crystalline silicon type and should be manufactured in India. Further, the minimum rated power of the module should not be less than 150 W.

·         The tender also specifies that the inverters should be hybrid with batteries with both solar and grid priority operational modes.

·         According to the tender document, the bidder should have an average annual turnover of at least ₹10 million (~$139,747) for the last three financial years.

·         Regarding the technical criteria, the successful bidder should have successfully implemented similar smart class facilities that involve smart classroom solutions or digital classrooms.

·         The system components should comply with the standards prescribed by either the Ministry of New and Renewable Energy (MNRE) or Karnataka Renewable Energy Development Limited (KREDL). The solar PV modules used should qualify for the latest edition of the International Electrotechnical Commission (IEC) PV module qualification.

·         Earlier, it was reported that the Himachal Pradesh Energy Development Agency (HIMURJA) invited bidders to bid for the installation of solar projects at 312 middle schools in 11 districts of the state. The project installations will be executed under the state’s ‘Samagra Shiksha Abhiyan’ program.

·         Previously, Mercom published an article that analyzed how solar is beginning to power classrooms, dormitories and canteens of multitudes of educational institutions across the country.

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Ecoppia Robotic Cleaning Solution for 427 MW of Fortum’s Solar Plants in India

·         Ecoppia, a leading developer of fully autonomous, water-free photovoltaic (PV) solar panel cleaning solutions, has announced that it has been chosen by Fortum, to deploy its field-proven platform across different projects in India, totalling 427 MW of production capacity.

·         UK Climate Investments (UKCI), a Macquarie subsidiary, and Elite Alfred Berg (EAB) who are stakeholders for 230 MW of Fortum’s operating asset share the same vision to drive towards the sustainable operation of solar business.

·         To reshape the global energy ecosystem and improve resource efficiency with smart solutions, the firm was chosen to equip the Fortum developed projects in the Pavagada and Bhadla solar parks with its connected and environmentally friendly E4 solution. Ecoppia is already well-known and massively operational in the Indian subcontinent, deployed over nearly 2 GW in production capacity in that region alone, and boasting over 7 GW in secured projects globally.

·         “As we drive the change towards a cleaner world, the Ecoppia water-free solutions are a perfect fit with our strategy,” said Sanjay Aggarwal, managing director India in Fortum.

·         “Now, we will be able to provide clean energy without exhausting water resources – ensuring solar energy production is both cost-effective and truly environment-friendly. This is a natural next step towards sustainable & clean development, a joint vision shared with our partners UKCI & EAB,” he concluded.

·         Ecoppia’s robust E4 robot for fixed-tilt solar installations supports both framed and frameless panels add no load to the panel surface and have been proven to be fully safe on both panels and Anti Reflective Coating (ARC). Certified by the leading US module maker First Solar – the E4 will clean both crystalline modules and frameless modules in Fortum’s sites.

·         “It’s a great honor to extend our successful collaboration with Fortum to additional projects,” noted Eran Meller, CEO of Ecoppia. “We see Fortum as a true and visionary partner in advancing the solar industry towards full automation and lower, viable LCOE,” he added.

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SECI's 5 GW manufacturing-linked solar auction gets good response

·         State-owned SECI's manufacturing-linked solar energy auction for 5GW capacity has evoked good response as Adani Green Energy, Azure and Navyug have submitted bids for a total of 10 GW projects. Solar Energy Corporation of India's (SECI) for 5GW solar energy auction includes 1GW manufacturing component. Thus developers will have to set up solar equipment manufacturing capacity of 1 GW and power generation projects of 4 GW.

·         The tariff based reverse auction will be conduced by SECI later this week, a source said.

·         Adani Green Energy has submitted bid for 5GW, including 1GW manufacturing facilities, followed by Azure and Navyug which submitted bids for 2.5 GW each, including 500 MW manufacturing plants each, the source added.

·         These bids came in after several obstacles were faced in the manufacturing-linked solar power auctions. For past few months, renewable power project bids, particularly manufacturing-linked solar energy ones, were either extended or scrapped on account of poor response from the developers.

·         After successful auction, an investment of around Rs 6,000 crore is expected for setting up 1GW of solar manufacturing facilities, which would generate permanent direct employment of up to 10,000 people, the source said.

·         At present, India imports 95 per cent of its solar module requirement from China, leading to a forex outflow of around USD 10 billion per year.

·         This programme will be a boost for manufacturing, resulting in large scale development of industries and employment in India.

·         The success of this tender will help achieve the Prime Minister's objective of generating 450 GW of renewable energy by 2030. ABI BAL

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Adani Green Energy Q2 profit at Rs 102 crore

·         Adani Green Energy on Wednesday posted a consolidated net profit of Rs 102 crore profit for the September quarter of 2019-20.

·         The company reported a loss of Rs 188 crore in the year-ago period, a BSE filing said.

·         Total income rose to Rs 711.96 crore in the second quarter from Rs 458.89 crore a year ago.

·         "Adani Green Energy continues to expand and invest in the renewables spectrum following the government's mission to be the world's largest renewable energy expansion programme of 175GW till 2022. The company will continue to provide reliable, sustainable, round the clock green power for India's growing power demands and needs," Chairman Gautam Adani said in a statement.

·         CEO Jayant Parimal said the company commissioned 450 MW of new renewable capacity in April-September of this fiscal, taking total operational portfolio to 2.4 GW.

·         "With a further 2.9 GW currently under construction, we will reach 5.3 GW capacity progressively over the next 2 years, contributing to the renewable energy targets of the country," Parimal added.

·         Shares of Adani Green were trading at Rs 96 per scrip, up 2.56 per cent, on the BSE.

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Oil & Gas(8 News Items)

Chennai: Oil spill recovery vessel flagged off at city port

·         Oil spill issues along the Chennai coast can be handled better hereafter as the Chennai Port Trust has acquired a new vessel for the purpose.

·         The vessel – Marudham — was flagged off by minister of state for shipping Mansukh L Mandaviya on Thursday. The vessel was bought at a cost of Rs 14 crore.

·         A senior port official said this oil recovery vessel was designed for first-line oil spill response and suited to provide immediate assistance in combating oil spills. It will be helpful to meet the demanding requirements in the cleanup operations of oil spills in port limits, he said.

·         The shipping ministry provided 50% of the fund for acquiring the vessel and the balance amount was sourced from Indian Oil Corporation, Chennai Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. These companies are operating in the port and have agreed to contribute for buying the vessel.

·         The vessel has two tanks which can collect spilled oil from water. It has two storage tanks with a capacity of 7,500 litre each. At any given time, the vessel can collect 15,000 litre of spilled oil.

·         On the occasion, the minister also inaugurated a paved storage area. This paved concrete storage yard spread over an area of 11.32 hectares can handle multiple cargos in a clean manner without emanation of dust. Work on providing drains and illumination for the yard was in progress, which would be completed soon, an official said.

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Petrol price see another hike, up by 85 paise in 10 days. Diesel stagnant

·         With Brent crude oil rates staying above $62 a barrel, state-run fuel retailers have increased the price of petrol by 85 paise during the last 10 days while that of diesel has gone up by only 4 paise. After being unchanged yesterday, petrol price increased by 15 paise a litre while diesel was left untouched today.

·         In Delhi, a litre of petrol costs ₹73.45 a litre and diesel ₹65.79. If you are in Mumbai, you have to pay ₹79.12 for petrol and ₹69.01 for diesel.

·         Those in Gurgaon will have to pay ₹73.28 a litre for petrol and ₹65.13 for diesel. In Noida, you pay ₹75.07 for petrol and ₹66.10 for diesel. In Bengaluru, a litre of petrol comes at a cost of ₹75.96 and diesel ₹68.03.

·         Among the three neighbouring cities of Delhi, Gurgaon and Noida, fuel prices are the cheapest in Gurgaon while Noida is the most expensive one. The difference in prices are due to a difference in sales tax charged by different states as petroleum products has so far been kept out of the purview of goods and services tax (GST).

·         Once petrol and diesel are brought under the purview of GST, as suggested by Oil Minister Dharmendra Pradhan to finance minister Nirmala Sitharaman recently, rates would be uniform across the country. However, there could still be a minor difference in petrol and diesel prices across India due to higher transport costs in some places.

·         In the meantime, after rising 0.5% yesterday Brent futures were up 17 cents, or 0.3% at $62.54 a barrel today.

·         In the India market, crude oil futures fell by ₹41 to ₹4,053 per barrel after participants reduced positions, tracking a weak trend in global markets.

·         On the Multi Commodity Exchange, crude oil prices for November delivery dropped by ₹41, or 1 per cent, to ₹4,053 per barrel with a business volume of 23,950 lots.

·         Similarly, crude oil for December delivery was quoting lower by ₹44, or 1.07 per cent, at ₹4,068 per barrel with an open interest of 890 lots.

·         The fall in crude oil futures was mostly due to trimming of positions by traders, in line with weak global cues, analysts said.

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Asian gasoil margins slump to 5-mth low as India opens export taps

·         Asian refining profit margins for gasoil have plunged to their lowest in more than five months, weighed down by fresh Indian gasoil exports that have swelled already abundant supplies just 50 days before new ship fuel regulations kick in.

·         Market participants had widely anticipated a boost in gasoil margins in late 2019 as ship-owners switch out bunker oil for cleaner fuels such as marine gasoil (MGO) to comply with new sulphur emissions rules set by the International Maritime Organization for 2020. But the expected demand jump has not materialized yet as buyers delay purchases until absolutely necessary.

·         Refining margins or cracks for gasoil with a sulphur content of 10 parts per million (ppm) slumped to $14.27 a barrel over Dubai crude on Wednesday, the lowest since June 11.

·         The crack has dropped 25% since a recent peak of $19.14 in September.

·         “Refining margins are very poor at the moment and it’s negative for some,” said Sushant Gupta, downstream research director at consultant Wood Mackenzie.

·         “Shippers are waiting for the last moment to convert fuel tanks.”

·         The cracks have also declined in recent weeks as some regional refineries are returning to production after maintenance, while export volumes from state refiners in India have surged because of weaker domestic demand.

·         “A combination of higher refinery runs and weak demand growth will continue to push more gasoil out of India over this winter,” said Sri Paravaikkarasu, director for Asia oil at consultancy FGE.

·         India’s fuel demand growth is set to drop to its lowest in at least six years, while a slowdown in China’s industrial production growth is also raising doubts on fuel demand in the world’s second-largest economy.

·         Regional refineries are forecast to raise their processing rates in anticipation of rising refining margins in the lead-up to IMO 2020, FGE’s Paravaikkarasu said.

·         The 10-ppm gasoil crack for January is trading about $1 a barrel higher than December, indicating more demand for the fuel after the IMO 2020 change over.

·         Gasoil demand related to IMO 2020 should become more apparent in the coming weeks, offsetting the increased refinery runs, according the FGE and Wood Mackenzie.

·         FGE’s Paravaikkarasu believes the market is overestimating the amount that very-low sulphur fuel oil (VLSFO) will displace (MGO) in meeting the new clean bunker demand.

·         “The demand for MGO should also increase. Hereafter there will still be a group of shippers who would prefer MGO over VLSFO... This should lift the (gasoil) cracks by about $4-$5 per barrel before year-end from current levels”, she said.

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Govt considers cutting stake in Indian Oil to below 51percent

·         India plans to reduce its stake in Indian Oil Corp. to below 51% while ensuring the government and state-run companies retain control of the nation’s largest oil refiner, people with knowledge of the matter said.

·         Prime Minister Narendra Modi’s cabinet will consider, as early as next week, a proposal to sell shares in some companies, including Indian Oil, to below 51%, the people said, asking not to be identified as the plan is not public. India directly holds 51.5% in Indian Oil, and another 25.9% through state-run Life Insurance Corp. of India, and explorers Oil & Natural Gas Corp. and Oil India Ltd.

·         Sluggish revenue collections has left Modi’s administration with little choice but to push ahead with a plan to raise a record ₹1.05 trillion ($14.6 billion) through asset sales in the financial year through March. A slippage will put the government’s goal of capping its budget deficit at 3.3% of gross domestic product at risk, and prompt rating companies to put India’s credit score on a path for a downgrade to junk.

·         Government can sell as much as 26.4% its holding in Indian Oil — valued at about ₹33,000 crore — and still retain indirect control. Finance ministry spokesman Rajesh Malhotra could not be immediately reached for a comment.

·         The South Asian nation is likely to start selling shares in Indian Oil through an exchange-traded fund in January, according to the people. The ministers’ panel is also expected to take up other crucial proposals such as privatization of Bharat Petroleum Corp., Shipping Corp. of India and Container Corp. of India, they said.

·         Finance Minister Nirmala Sitharaman, in her budget speech, announced plan to lower direct holdings in some state-run companies below 51% on a “case-to-case basis." The government later identified the biggest energy companies such as Indian Oil, ONGC, NTPC Ltd. and GAIL India Ltd. as probable candidates for such reductions.

·         Shares of Indian Oil have dropped 3.8% this year. The broader benchmark S&P BSE Sensex has risen 11.4% in the period.

·         Indian Oil, along with its unit Chennai Petroleum Corp., operates 11 refineries, controlling more than 35% of the nation’s total crude oil processing capacity. It’s also India’s biggest fuel retailer, owning about half the country’s refilling stations.

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ONGC second quarter net profit falls 37 per cent to Rs 5,487 crore

·         Oil and Natural Gas Corporation (ONGC), India’s state-owned petroleum explorer, today posted a 37 per cent decline in consolidated net profit at Rs 5,487 crore for the second quarter ended September 2019, on the back of lower production and price realisation.

·         The company had posted a consolidated net profit of Rs 8,731 crore in the corresponding quarter ended September 2018.

·         ONGC’s revenue from operations during the second quarter declined 10.50 per cent to Rs 101,554 crore as compared to the corresponding quarter a year ago. Its overall crude oil production during the quarter dropped 3.9 per cent to 5.84 Million Tonne (MT).

·         Crude oil price realization from nominated fields during the second quarter declined 17. 4 per cent to $60.33 per barrel, while realization from oil fields operated under Joint Ventures declined 13 per cent to $60.99 per barrel.

·         The company’s total natural gas production during the second quarter declined 1.6 per cent to 6.26 Billion Cubic Meter (BCM) while gas price realization during the quarter increased 20.6 per cent to $3.69 million british thermal units as compared to the same period last year.

·         ONGC’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 136.25, down 1.38 per cent as compared to previous close.

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India: Major ports record muted performance on fall in coal, fertilizer cargo

·         A consistent drop in shipments of thermal coal and raw fertilizers dragged cargo growth of major ports between April and October. Cargo throughput of major ports stagnated in the period, clocking a growth of only 0.44 per cent. While thermal coal shipments subsided 17.69 per cent, raw fertilizers dropped by 4.61 per cent.

·         The performance of liquid cargo- crude oil and derivative products like LPG and LNG remained flat at 1.7 per cent. The major state owned ports of Kamarajar (Ennore), Chennai, New Mangalore, Mormugao and Jawaharlal Nehru Port Trust (JNPT) witnessed degrowth in the period.

·         For the major ports, the positive takeaways came from iron ore and finished fertilizer cargo. Iron ore shipments including pellets, surged by 28 per cent, logging the best growth in cargo throughput while finished fertilizer cargo spiked by 22 per cent. Coking coal shipments were in the positive territory, moving up by 6.88 per cent in the period under review.

·         The major ports handled 405.39 million tonnes (mt) cargo in the period against 403.6 mt in the corresponding period of last fiscal, data from the Indian Ports Association said.

·         Deendayal Port handled the most cargo among the major ports with a volume of 71.09 mt followed by Paradip at 64.46 mt.

·         The major ports had a combined capacity of 1477 mt at the end of FY19. The Maritime Agenda 2010-20 envisages the major ports reaching capacity of 3130 mt by 2020. In FY19, the major ports had handled 699.05 mt of cargo.

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Centre to expedite gas projects in Kerala

·         Kerala is a model for other states when it comes to implementing Centrally-sponsored schemes, Union Minister for Petroleum, Natural Gas and Steel Dharmendra Pradhan said here on Thursday.

·         The minister thanked Chief Minister Pinarayi Vijayan for the state’s support in implementing the GAIL natural gas pipeline project. During an interaction with Pinarayi at his office, Pradhan said the completion of the GAIL project was a big achievement at the national level.

·         Pradhan assured the Chief Minister that steps would be taken to expedite the city gas project for delivering natural gas at homes. He also said the project could be implemented in Pathanamthitta, Idukki and Kottayam districts as well.

·         Steps will be taken to install more CNG stations in the state and promote buses run on natural gas. The Chief Minister urged Pradhan to set up a retail chain of Steel Authority of India Ltd (SAIL) in the state to find a solution to the crisis in SAIL-SCL Kerala Ltd in Kozhikode.

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Coal(5 News Items)

Linkage issues


China, India are the problem and solution for coal, climate change

·         One thing becomes absolutely clear when reading the The International Energy Agency's (IEA) report latest World Energy Outlook; if the world is to have even the remotest chance of making its climate goals, then China and India are going to have to do something about their coal use.

·         The IEA's report said coal is responsible for 30 per cent of all energy-related carbon dioxide emissions, making it the biggest single contributor.

·         If the world is to limit the increase in temperature as a result of climate change to less than 2 degrees Celsius (3.6 degrees Fahrenheit), it's clear that coal consumption will have to be reduced far more dramatically than is currently forecast.

·         The IEA report outlined three scenarios for energy use up until 2040, namely current policies, stated policies and the sustainable development scenario.

·         The latter two are the more important as stated policies refers to what is likely to happen on the basis of announced government policies and plans, and sustainable development is the path needed to meet the climate goals.

·         Coal responsible for 14.66 billion tonnes of carbon emissions

·         Coal was responsible for 14.66 billion tonnes of carbon emissions in 2018, and the IEA said that under the stated policies scenario this will only drop slightly to 14.34 billion in 2030 and 13.89 billion in 2040.

·         However, the sustainable development path calls for coal's carbon emissions to plunge to 8.28 billion tonnes by 2030 and 3.4 billion by 2040.

·         The gap by 2040 between the stated policies and the sustainable development is a massive 11.24 billion tonnes, which to put in context is almost the total amount of carbon emissions created in 2018 by using crude oil, and almost 60 per cent higher than the emissions from natural gas.

·         If the world is to move to the sustainable development scenario, it means a dramatic shift away from coal and towards renewable energy across the globe.

·         But in practical terms, the future of coal is largely in the hands of just two countries, China and India, which currently account for 60.2 per cent of global electricity generated by the polluting fuel, according to data from the Institute for Energy Economics and Financial Analysis (IEEFA).

·         The United States (US) accounts for 11.1 per cent and the European Union for 5.2 per cent, but coal burning is declining rapidly in both, mainly as a result of cheap natural gas in the United States and the rising penetration of renewables in Europe.

·         The IEA said that under its stated policies scenario China's coal use goes from 2.83 billion tonnes of coal equivalent to 2.84 billion in 2030 and 2.57 billion by 2040, but under the sustainable development path it would need to drop to 2.07 billion by 2030 and 1.15 billion by 2040.

·         India's demand was 586 million tonnes of coal equivalent in 2018, and the IEA forecasts this to rise to 938 million by 2030 and 1.16 billion by 2040 under the stated policies scenario, but to meet the sustainable development scenario it would need to be 546 million.

·         China and India are energy hungry

·         What the IEA suggests is that India effectively needs to limit its coal demand to current levels, and China will have to cut its consumption by some 60 per cent by 2040.

·         This would require a major change in policy direction in both countries, something that would be difficult to achieve, both politically and financially.

·         India perhaps offers more hope given the country is already embracing renewable energy, given it is now cost-competitive with coal-fired generation.

·         The well-publicised pollution problems afflicting many Indian cities may also drive a shift away from coal, especially if public discontent increases.

·         For China the challenge is harder, given the size of its coal sector and the subsequent cost of shifting away from the fuel.

·         The IEA suggests China may be able to deploy carbon capture and storage systems on a large scale, but this would be costly and there is currently little political impetus to make this happen.

·         Replacing coal with renewables, hydro or nuclear will also be expensive, especially since the sustainable development path would mean retiring many coal-fired power plants well ahead of their normal lifespan of about 50 years.

·         It is of course possible to take a different view of the IEA's forecasts, but no matter which way the world's energy future is sliced and diced, the fact remains that coal consumption will have to drop sharply to meet climate change goals.

·         It's also a fact that the world is largely reliant on this happening in just two countries, but not just any two countries.

·         China and India are the world's most populous nations and are still developing economically, making them energy hungry.

·         They also have vast domestic coal resources and the technology to mine them and burn them in locally-engineered power plants.

·         Weaning these two nations off coal is looming as the real challenge for climate activists.

Source

 

Top

General


Draft coal auction plan ready

·         The Meghalaya government has finally come up with a draft policy for handing over and auctioning of more than 32 lakh metric tonnes of coal as directed by the Supreme Court in July.

·         The draft policy, which has been submitted to a committee constituted by the National Green Tribunal, will have to be further fine-tuned before it receives approval.

·         According to an affidavit filed by the state mining and geology department in the Supreme Court, the total quantity of coal, which has been extracted and assessed, but is yet to be transported, is 32,56,715 metric tonnes.

·         The government had noted that this amount of coal was lying in four mining districts of the state.

·         The court, in its judgment and order passed on July 3, directed the government to hand over the coal to Coal India Limited which will have to auction the coal, in all likelihoodthrough e-auctioning.

·         Ever since the order and judgment of the apex court, the government has been seeking time to frame a policy to facilitate the handing over of the coal.

·         Speaking after chairing a meeting of the committee here, committee chairman Justice (retired) B.P. Katakey informed that recently, the government had sent the draft policy for consideration.

·         “The draft policy has been placed before the committee, and we have put forward the committee’s suggestions to the government and Coal India Limited. They will discuss our suggestions and come up with the final draft,” Katakey said.

·         A meeting to study the final draft of the policy will be held on November 21.

·         He also made it clear that the committee’s job is to ensure that the handing over of the coal to Coal India Limited and the subsequent auctioning should take place according to the Supreme Court’s order.

·         The committee chairman said they would see that the transportation of 32,56,715 metric tonnes of coal is done in a proper manner.

·         “Other than the 32 lakh metric tonnes of coal which the Supreme Court has taken notice of in the order, nobody else can transport their coal which has not been legally mined,” he said.

·         The committee will meet on Friday on issues related to allegations that illegal mining and transportation of coal were still taking place.

Source

 

Top

Coal mine auctions close with significant variation across winning bid prices

·         The auction of coal mines under the eighth, ninth and tenth round has come to a close with winning bid prices reflecting the significant variation.

·         The highest winning bid amount from among all mines bid out, at ₹1,674 per tonne, has been quoted for the Jamkhani coal mine in Odisha by Vedanta Limited. Prakash Industries’s winning bid, at ₹1,100 per tonne, for the Bhaskarpara coal mine in Gujarat has got the second-highest winning bid amount. There is a steep fall from these two exceptionally sought after mines with the winning bid amounts ranging between ₹154 to ₹230 per tonne for all the other mines auctioned.

·         Commenting on the differences in winning bid price, Kameswara Rao, partner at PricewaterhouseCoopers (PwC) India said, “The bids are generally lower due to improved supply situation. The differences too are largely cost-reflective. The cost of underground mines and the smaller mines is high, and so the bids received are lower.”

·         None of the mines offered under the ninth tranche could attract an adequate number of bidders.

·         In total, the Ministry of Coal was able to auction six out of the 27 coal mines it intended to bid out in these three rounds. All the coal mines that found bidders have been earmarked for the unregulated sector, this means that any industry can bid for these mines.

·         Birla Corporation Limited has won two mines (Brahmapuri and Bikram) in these rounds. Powerplus Traders Private Limited, Jindal Steel And Power Limited, Prakash Industries Limited and Vedanta Limited have won one mine each.

·         Prakash Industries said that the coal from the Bhaskarpara mine will be used in the company’s Integrated Steel Plant at Champa in Chhattisgarh. For Vedanta, the Jamkhani coal mine would be handy for operations of the company’s nearby Jharsuguda aluminium smelter.

·         The Ministry of Coal is now gearing to conduct another round of mine auctions but will be further relaxing the bid guidelines. Measures being considered to attract more investment in the coal mining sector include having larger coal mines and allowing the auction of mines with less than three bidders.

·         One of the reasons for disinterest in the rounds that just concluded could be expectations from commercial coal mining, the auctions for which are projected to begin from December 2019.

Source

 

Top

Coal India down despite steady earnings in Q2

·         Coal India (CIL) shares were down on the bourses today although the public sector miner reported a steady set of Q2FY20 numbers.

·         On the BSE, Coal India stock was down 1.09% to Rs 204.95, with volumes traded at 43,000 shares as at 10.40 am.

·         Higher-than-expected fuel supply agreement (FSA) realisations supported overall earnings for the September quarter. The company reported a total operating income of Rs 20,383 crore, and was down 7% YoY. The company's PAT for the September quarter came in at Rs 3,523 crore, up 14% Y-o-Y.

·         ICICI Securities says that the company has achieved a sales volume of 122 million tonne (MT) (down approximately 11% YoY). FSA sales volume came in at 104 MT, while FSA realisations during the quarter was at Rs 1,439/tonne (up 5% QoQ, higher than our estimate of Rs 1,350/tonne).

Source

 

Top

India: Major ports record muted performance on fall in coal, fertilizer cargo

·         A consistent drop in shipments of thermal coal and raw fertilizers dragged cargo growth of major ports between April and October. Cargo throughput of major ports stagnated in the period, clocking a growth of only 0.44 per cent. While thermal coal shipments subsided 17.69 per cent, raw fertilizers dropped by 4.61 per cent.

·         The performance of liquid cargo- crude oil and derivative products like LPG and LNG remained flat at 1.7 per cent. The major state owned ports of Kamarajar (Ennore), Chennai, New Mangalore, Mormugao and Jawaharlal Nehru Port Trust (JNPT) witnessed degrowth in the period.

·         For the major ports, the positive takeaways came from iron ore and finished fertilizer cargo. Iron ore shipments including pellets, surged by 28 per cent, logging the best growth in cargo throughput while finished fertilizer cargo spiked by 22 per cent. Coking coal shipments were in the positive territory, moving up by 6.88 per cent in the period under review.

·         The major ports handled 405.39 million tonnes (mt) cargo in the period against 403.6 mt in the corresponding period of last fiscal, data from the Indian Ports Association said.

·         Deendayal Port handled the most cargo among the major ports with a volume of 71.09 mt followed by Paradip at 64.46 mt.

·         The major ports had a combined capacity of 1477 mt at the end of FY19. The Maritime Agenda 2010-20 envisages the major ports reaching capacity of 3130 mt by 2020. In FY19, the major ports had handled 699.05 mt of cargo.

Source

 

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National News Bulletin

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Daily Newsletter 2019

We Help You Take Better Decisions Everyday !

Thursday, November 14, 2019

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Infraline Comprehensive Power , Oil & Gas & Coal Only Detailed Newsletter

What’s New

Acts and Regulations

§  RoP on Petition under Section 94 of the Electricity Act, 2003 read with Regulation 103(1) of the Central Electricity Regulatory Commission (Conduct of Business) Regulations,1999, read with order 47 Rule 1 of the Code of Civil Procedure, 1908 for review of Order dated 9.4.2019 on in Petition No. 318/MP/2018. PGCIL

§  RoP on Petition for recovery of money due and outstanding from BSES Yamuna Power Limited as per the tariff determined by the Commission and in terms of the Agreement between THDC India Limited and BSES Yamuna Power Limited. THDC India Limited

§  RoP on Petition under Sections 79(1)(f) read with 79(1)(c) and 79(1)(b) of the Electricity Act, 2003 relating to adjudication of dispute relating to Energy Meter Data discrepancy at Bhadrawati station leading to commercial loss to GMR Warora Energy Limited. GMR Warora Energy Limited

§  RoP on claiming compensation on account of occurrence of "Change in Law" event as per Article 10.1.1 of the Case-1 long-term PPA dated 21.03.2013 entered into between GMR WEL and DNHPCL. thereby resulting into additional recurring/non-recurring expenditure to GMR WEL for supply of 200 MW Contracted Capacity from its 2x300 MW TPS at Warora, Chandrapur in Maharashtra to DNHPDCL

§  RoP on Petition for relinquishment of the Long-term Open Access under the Bulk Power Transmission Agreement dated 13.5.2010 under the Regulation 18 read with Regulation 32 of the CERC (Grant of Connectivity, Long-term Access and Medium-term Open Access in inter-State Transmission and related matters) Regulations, 2009. JITPL

View More...

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Performance of State Discom

New!

Power

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84percent people in MP paid less than Rs 400 as power bill in September

The government reimburses what’s left of the dues for the first 100 units. The maximum subsidy a consumer gets is Rs 531 per month in urban areas, and Rs 521 per month in villages

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Haryana power regulator seeks advice

Sharing more information in this regard, an official spokesman said HERC chairman D S Dhesi has sought comments/suggestions on the draft regulations from various stakeholders.

§  Discom partners with Oz firm for solar trading

§  Adani Power Q2 profit nosedives to Rs 4 crore

§  Four engineer injured in turbine blast in UP's Anpara thermal power unit

§  ABB India Q3 net profit rises to Rs 135 crore

§  India's electricity demand falls at the fastest pace in at least 12 years

§  India’s electricity demand is at the lowest in this decade

§  Power Grid Corp trips post Q2 numbers

§  As power demand trips on thermal circuit, recovery could be slow and damp

§  Domestic consumers can clear power dues in instalments

§  Discoms saddled by Rs 25,000cr loss, be ready to pay extra Rs 5 per unit

§  Will Budgetary Support to promote Hydro Electric (HE) Power encourage DISCOMS to purchase power from HEPs?

[Poll Question]

Projects Update

Project Name

Promoter

Capacity

State

Kamalanga Thermal Power Plant Phase-1

GMR Kamalanga Energy Ltd.

1050 MW

Odisha

Kamalanga Thermal Power Plant Phase-2

GMR Kamalanga Energy

350 MW

Odisha

Rosa Thermal Power Plant Phase-2

Rosa Power Supply Company (Reliance Power)

600 MW

Uttar Pradesh

Rosa Thermal Power Plant Phase-1

Rosa Power Supply Company (Reliance Power)

600 MW

Uttar Pradesh

Chandrapura Thermal Power Plant Extension 500 MW

Damodar Valley Corporation

500 MW

Jharkhand

Renewable Energy

 

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Solar manufacturing tender finally receives bids after a dozen extensions

Adani and Azure Power commit double the capacity offered; new entrant Navyug Power submits bid similar to Azure

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Discom partners with Oz firm for solar trading

In order to launch consumer-to-consumer solar power trading on a trial basis, BSES Rajdhani Power Limited (BRPL) has entered into an agreement with Australia’s Power Ledger, a global leader in block-chain technology.

§  Andhra Pradesh proposal casts doubt on India’s renewable sector: Rystad Energy

§  Answer to power woes blowing in the wind?

§  This Chinese solar company is on a hunt for bargain deals in India

§  Adani Green Energy reports profit of Rs 102 crore in Q2

§  India to build 30 gigawatts of renewable plants along western border

§  Rajasthan DISCOMs Asked to Pay INR 313 Million to NTPC After Trading Margin Dispute

§  Solar Imports to India Declined by 39 percent in Q2 2019

§  CERC: Demonetization a Force Majeure Event, SECI to Refund INR 30 Million to Krishna Wind Farm

§  West Bengal Floats Tender for a 220kV Solar Evacuation Line

§  MNRE Issues Guidelines for Executing Component-C of KUSUM Scheme

§  Does Anti-Dumping probe benefit Domestic Solar Manufacturers in India?[Poll Question]

§  SECI Schedules Meeting With Prospective Bidders for 1200 MW RE Tender

§  TERI offers to find ways to provide cheap energy in AP

§  Renewables are booming, but not fast enough to cap greenhouse emissions

§  BRICS nations must adapt clean energy transition: Report

§  EESL slashes EV order by 70percent to just 3k on Andhra Pradesh's cancellation of order

§  EESL falls way short of ambitious target to electrify government's car fleets

Projects Update

Project Name

Plant Owner

Capacity (MW)

State

Chhayan Solar plant

Tata Power Renewable Energy Limited (TPREL)

150

Rajasthan

Ramanathapuram Solar Project

Neyveli Lignite Corporation Limited (NLC India Limited)

95

Tamil Nadu

Tirunelveli Solar Power Plant

Neyveli Lignite Corporation Limited (NLC India Limited)

100

Tamil Nadu

Ibrahimpatanam Solar Power Project

Bharat Dynamics Ltd.

5

Telangana

Kothagudem Solar Photovoltaic Power Project

Singareni Collieries Company limited (SCCL)

37

Telangana

Oil & Gas

 

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Implementation of Government Policy PAHAL (DBTL) Scheme, PMUY and Financial Aspects- 2019 [Exclusive]

LPG is a cleaner fuel, so to promote LPG for domestic use & as cooking fuel by making it affordable, govt of India announced policies such as PAHAL and PMUY. A subsidized supply of domestic LPG was proposed to save customers from highly unstable international prices

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India proposes free natural gas pricing regime

The Indian government has started work on implementing a free pricing regime for domestically produced natural gas, which would be freely tradable at exchanges.

§  Can India attain the objective of decreasing 10% crude oil import by 2022?

[Poll Question]

§  Govt may shut doors on consolidation in public sector oil firms

§  Crude oil price facing downward pressure, will drop below $60 a barrel before year-end, says KPMG’s Regina Mayor

§  Punjab, Haryana should take steps to convert stubble into CNG, coal: Kejriwal

§  Megha group to supply Natural gas to Krishna district soon

§  GAIL's Q2 profit down 47percent on poor gas transmission, LPG profitability

§  ONGC wants to take Opal out of SEZ as domestic demand grows

§  Indian Oil in talks with Rosneft to import Russian oil

§  GAIL plans two million tonne polycarbonate plant

§  Petrol, diesel prices stable after five continuous days of spike

§  Govt may shut doors on consolidation in public sector oil firms

§  India to allow foreign companies to bid in oil sector selloff

§  Renewables are booming, but not fast enough to cap greenhouse emissions

§  BRICS nations must adapt clean energy transition: Report

Oil & Gas Technical

New!

 

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Tunisian gas field to start production by year-end, slashing imports

Tunisia’s long-delayed, $1.2 billion joint venture with Vienna-based OMV AG will start producing natural gas by the end of the year, the country’s industry minister said.

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Emerson launches IIoT-enabled Connected Services to support multiphase flow meters in unconventional shale

Oil and gas producers have a new means of optimizing wellhead production that lowers operating costs while increasing safety, thanks to a newly launched service from Emerson that leverages cloud-based technologies to remotely monitor flow meter performance at the wellhead.

§  Repsol looks to Alberta to replace Mexican and Venezuelan oil

§  Offshore oil to peak in 2020, then join the shale slump, says analyst

§  India to invite foreign firms to invest in state-owned oil companies

§  Brazil to boost biodiesel blend to 15percent by 2023, helping soy demand

§  Peninsula plans to double IMO-compliant fuel sales by year-end

§  Honeywell selected as main automation contractor for largest integrated refinery complex

§  Uniper says it sees Wilhelmshaven LNG terminal by 2023

§  Egypt lifts LNG exports from Idku terminal to 1 bln cubic feet per day

§  Italy's Edison agrees to extend Algeria gas supply deal to 2027

Daily International Coal Prices

New!

Coal

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Punjab, Haryana should take steps to convert stubble into CNG, coal: Kejriwal

"I have met several experts, the left stubble can be converted into CNG.I have talked to Indraprastha Gas Limited and they are willing to buy it.

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Delhi court convicts 3 persons, firm in coal block allocation scam case

The court also held that "person deceived in the present matter was primarily MOC (Ministry of Coal), Government of India, through the Screening Committee route".

§  Will Commercial Coal Mining attract global players to invest in India?

[Poll Question]

§  Vedanta is highest bidder for Jamkhani coal block in Odisha

§  Coal India, Hindalco to be watched after Q2 results

§  Adani Enterprises drops after weak Q2 numbers

§  Goa Industrial Development Corporation’s Rs 196 crore coal block request hits finance department roadblock

§  Renewables are booming, but not fast enough to cap greenhouse emissions

Roads

 

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Bumpy ride in store for motorists on NH-75 due to financial, technical issues

With the move of the National Highways Authority of India (NHAI) to upgrade the Hassan-Mangaluru stretch of National Highway-75 hitting financial and technical roadblocks, commuters using this vital road connecting the city to state capital Bengaluru are in for a roller-coaster ride on the battered highway.

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Pulled up by Modi, UP officials start sorting out land issues of Delhi-Meerut Expressway

The National Highways Authority of India (NHAI) said Wednesday that all land issues pertaining to four villages, which are holding up the work on Phase 4 of the Delhi-Meerut Expressway (DME), will be taken up in one week.

§  Active Bids for Bharatmala Roads Project by NHAI [Exclusive]

§  Request For Annual Qualification for Public Private Partnership DBFOT Toll [Exclusive]

§  70 per cent of motorists across Karnataka still not FASTag-ready

§  Cold war between PWD, Corpn delays Konakarai Road work

§  UT Admn sets a 15-month deadline for Tribune flyover

§  National Highways Authority of India gets 15 days to clear Punjab gateway

§  Attention commuters! FASTag toll payments on national, UP highways from December 1

§  PWD officials locked up over bad roads

§  Delhi-Meerut Expressway work on, NHAI fined Rs 1 lakh

§  Authority fixes single pothole shown by techie but rest of NH-48 service road left in its terrible state

§  Budget 2020: Highway ministry asks for 83percent hike in budget outlay for FY21

§  Do you think Govt may achieve FY20 road awarding target?

[Poll Question]

Projects Update

Project Name

Promoter/Client

State

Length (Km)

Four Laning of Puducherry to Poondiyankuppam (NH-45A) (New NH-332)

NHAI / IRB Infrastructure Developers Limited (M/s. Modern Road Makers Pvt Ltd)

Tamil Nadu

38

Eight Laning Mukarba Chowk to Panipat (NH-1)

NHAI / Essel Infra

Haryana

69.84

Four laning of Kharar to Ludhiana (NH-95) New NH-05

NHAI/Ashoka Buildcon

Punjab

76

Four Laning Tarsod-Fagne (Package-II- B) section (NH-6)

NHAI/MBL Infra and Agroh Infra JV

Maharashtra

87.3

Four Laning of Sethiyahopu – Cholapuram (NH-45C)

NHAI / Patel Infra

Tamil Nadu

50.48

Power(12 News Items)

General


84percent people in MP paid less than Rs 400 as power bill in September

·         Nearly 84% residents of Madhya Pradesh are paying less than Rs 400 as their monthly power bills, thanks to a ‘smart subsidy’ scheme that encourages low power consumption.

·         Close to 1 crore consumers are now covered by Indira Griha Jyoti Yojana — under which those who use 150 units of power or less a month pay only Re 1 for the first 100 units, and the rest is billed as per the tariff prescribed by Madhya Pradesh Electricity Regulatory Commission (MPERC). The government reimburses what’s left of the dues for the first 100 units. The maximum subsidy a consumer gets is Rs 531 per month in urban areas, and Rs 521 per month in villages.

·         It has translated into big savings in a state that has one of the highest power tariffs in the country. The scheme has, however, drained the coffers of Rs 350 crore in the first month of implementation. At this scale, it will cost the government Rs 4,000 crore a year.

·         The erstwhile BJP government had rolled out two power schemes in June-July 2018 — one for waiver of dues and the other, named Saral Bijli Bill Scheme, for providing power at a flat rate of Rs 200 per month to unorganized sector workers. Both came into effect six months ahead of the assembly polls. With a change of guard in the state, the Congress government announced in the first week of February that it would fulfil its poll promise by cutting power bills by 50% and that beneficiaries will need to pay only Rs 100 for 100 units of power. If they exceed 100 units, consumers will have to bear the rest of the cost, it said.

·         A couple of weeks later, the government changed the rules and said that beneficiaries will get power at Rs 100 for 100 units and for consumption above 100 units, they will need to pay a maximum of Rs 200. In September this year, the scheme was again changed to include “anyone who consumes less than 150 units of power”.

·         As per data available with TOI, in the first month of the scheme, 84% consumers of the state — or a whopping 97.42 lakh of them — benefited from the scheme. Thus, eight out of 10 power consumers of MP paid a maximum bill of Rs 395 only. Those who used less than 150 units, paid even less.

·         Sources said that earlier, several high-end consumers — even those using over 500 units of power per month — enrolled themselves as labourers of the unorganized sector to avail of the scheme meant for the poor, say sources. The capping at 150 units has now reduced such misuse to negligible limits, but it has increased financial implications. Earlier, the burden of subsidy was around Rs 180 crore a month, now it is Rs 350 crore.

·         Asked about this, additional chief secretary-energy Mohammad Suleman said, “It’s just the first month of implementation of the scheme and the results are positive. Actual evaluation of the scheme could only be done after some time. Exact costs cannot be evaluated in a month’s time. For instance, there was prolonged monsoon this time, reducing consumption of power and making more people eligible for benefits.”

Source

 

Top

Haryana power regulator seeks advice

·         Haryana Electricity Regulation Commission (HERC) has invited various stakeholders to share their comments on draft Single Point Supply Regulations 2019. The stakeholders can submit their comments before November 28.

·         Sharing more information in this regard, an official spokesman said HERC chairman D S Dhesi has sought comments/suggestions on the draft regulations from various stakeholders.

·         He said the single point supply regulations were for the first time notified in 2013. These regulations covered only residential colonies of employers, group housing societies and residential or residential-cum-commercial complexes of developers.

·         "However, now considering demand of various consumers, HERC has added various other consumers like commercial complexes, shopping malls, industrial estates, IT parks, universities, hospitals and jail, police and paramilitary establishments in the new draft regulations," the spokesperson said.

·         He said the draft regulations mandate creation of user's association for taking single point supply connection, which shall perform the function of metering, billing and connection of charges for supply of electricity to the usual consumers. He said the entities were also permitted to install solar PV system of minimum 25% of connected load of contract demand.

Source

 

Top

Discom partners with Oz firm for solar trading

·         In order to launch consumer-to-consumer solar power trading on a trial basis, BSES Rajdhani Power Limited (BRPL) has entered into an agreement with Australia’s Power Ledger, a global leader in block-chain technology.

·         With this, BRPL has become the first discom in the country to use Power Ledger’s block chain based platform for peer-to-peer (P2P) solar trading. “Consumers with rooftop solar infrastructure can sell their excess solar energy to their neighbours even if they don’t have rooftop solar, using energy trading platform. Thus, even consumers who don’t have roof-top solar will benefit by purchasing cheaper and cleaner electricity, compared to the slab-rate of the discom, which as consumer would otherwise have to pay,” the official said.

·         A senior discom official said that the pilot project will initially be carried-out amidst the existing and ‘selected group of gated community’ (CGHS) solar consumers in Dwarka who generate around 5-6 MW of solar-power. These consumers will be able to trade solar power their neighboring apartments and buildings using this platform rather than letting it spill-back to the grid, he said.

·         Amal Sinha, BRPL CEO said that the BSES has been embracing emerging technologies, especially in the space of demand side management and renewable.

·         “This partnership is yet another testimonial to these efforts. With the exponential growth in our economy and production, the ability to generate clean energy and utilise it across India without the need for a fully centralised grid is critical,” he added.

·         Sinha further said that realising the importance of distributed generation, we have already built an extensive renewables infrastructure, and this trial with Power Ledger will help us fully utilise that energy. “Basis the outcome, BRPL and Power Ledger will expand the trial to include block chain enabled solutions for group net metering, ‘virtual net metering’, electronic vehicles charging and virtual power plant applications in the near future,” he added.

·         Meanwhile, Tata Power Delhi Distribution Ltd. (Tata Power-DDL) claimed that it has rolled out a pilot project with Zoomcar in a phased manner under which initially 12 electronic vehicles will be used for company’s operations and maintenance activities in North Delhi.

Source

 

Top

Adani Power Q2 profit nosedives to Rs 4 crore

·         Adani PowerNSE -5.87 % (APL) on Wednesday said its consolidated net profit nosedived to Rs 3.88 crore in the quarter ended September 30, mainly due to a fall in revenue from operations.

·         It had clocked a net profit of Rs 386.89 crore during the corresponding period a year ago, the company said in a regulatory filing. Sequentially, the firm had reported a consolidated loss of Rs 263.39 crore during the June 2019 quarter.

·         The country's largest private sector thermal power producer's total revenue from operations in the September 2019 quarter fell to Rs 5,915.69 crore, compared with Rs 7,104.22 crore a year ago.

·         ADL's total expenses during the quarter were Rs 6,658.44 crore, compared with Rs 6,955.35 in the year-ago period.

·         In a separate statement, the company said APL has completed the acquisition of Korba West Power Co. Ltd and renamed it as Raigarh Energy Generation Ltd (REGL), which owns and operates a 600-megawatt (MW) thermal power plant at the Raigarh district of Chhattisgarh. It has also completed the acquisition of GMR Chhattisgarh Energy Ltd and renamed it as Raipur Energen Ltd (REL), which owns and operates a 1,370 MW supercritical thermal power plant at the Raipur district of Chhattisgarh.

·         "With the completion of these acquisitions, APL has consolidated its position as India's largest private sector independent power producer, with operating thermal power capacities of 12,410 MW and solar power generation capacity of 40 MW.

·         "In addition to this, APL's wholly-owned subsidiary Adani Power (Jharkhand) Ltd is constructing a 1,600-MW ultra-supercritical thermal power plant at Godda district of Jharkhand," it added.

·         APL and its subsidiaries (excluding recent acquisitions of REL and REGL) during the second quarter of 2019-20 achieved an average plant load factor (PLF) of 63 per cent and sales volume of 13.6 billion units (BU), compared with a PLF of 65 per cent and sales volume of 14.6 BU recorded a year ago.

·         This lower performance was primarily a result of lower grid demand and higher renewable energy generation, the company said.

·         Adani Group Chairman Gautam Adani said, "Adani Power is forging ahead in its quest to establish itself as a key supplier of reliable and affordable electricity in India. The private sector has played an important role in strengthening India's economic fundamentals and helping improve the prosperity of the masses."

Source

 

Top

Four engineer injured in turbine blast in UP's Anpara thermal power unit

·         Altogether four assistant engineers suffered burn injuries following the blast in the turbine generator unit of the seventh unit of 500 MW of Anpara DE thermal power station in Sonbhadra district on Wednesday.

·         The power generation in Anpara D with installed capacity of 1,000 MW came to a grinding halt following the blast and fire.

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ABB India Q3 net profit rises to Rs 135 crore

·         ABB India has reported a 3.8 percent QoQ jump in its consolidated net profit for the September quarter at Rs 135.3 crore against Rs 130.40 crore.

·         The company’s revenue was up 1.2 percent at Rs 1,745.6 crore versus Rs 1,726 crore, QoQ.

·         Earnings before interest, tax, depreciation and amortisation (EBITDA) was down at Rs 123.4 crore versus Rs 123.9 crore, while EBITDA margin was down at 7.1 percent versus 7.2 percent, QoQ.

·         Tax expense for the quarter was Rs 33.9 crore versus Rs 42.9 crore, QoQ.

·         Transportation continued to be a growth driver, with robust orders for propulsion systems in the third quarter. The company won an order for 33kV gas-insulated switchgear (GIS) for a leading metro operator in the quarter.

·         The company added new customers in the mining space for aluminium smelter (electrification and instrumentation) and copper refinery (eBOP and instrumentation) applications.

·         The total orders for the power grid business for the third quarter were at Rs 1,164 crore and revenue was Rs 1,007 crore.

·         “We have sustained the growth momentum in orders, revenue and profitability in the quarter in mixed market conditions,” ABB Managing Director Sanjeev Sharma said.

·         At 1345 hours, ABB India was quoting at Rs 1,430, down Rs 27.05, or 1.86 percent, on the BSE.

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India's electricity demand falls at the fastest pace in at least 12 years

·         Decline in power consumption points to tapering industrial activity

·         India's power demand fell at the fastest pace in at least 12 years in October, signalling a continued decline in the industrial output, according to government data. Electricity has about 8% weighting in the country's index for industrial production.

·         India needs electricity to fuel its expanding economy but a third decline in power consumption in as many months points to tapering industrial activity in a nation that aims to become a $5 trillion economy by 2024.