Daily Newsletter 2020

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Friday, November 13, 2020

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

What’s New

Acts and Regulations

§  Case of Tata Power Company Ltd - Distribution seeking approval for change in the execution entity of 225 MW grid connected Wind-Solar Hybrid Power Projects from Tata Power Green Energy Ltd, a 100% subsidiary of The Tata Power Company Ltd to TP Saurya Ltd, another 100% subsidiary of The Tata Power Company Ltd

§  Petition of Sai Wardha Power Gen. Ltd seeking declaration of Captive Status with respect to its 2x135 MW Generating Units No. 3 and 4 for FY 2016-17 AND Miscellaneous Application of TPCL (Distribution) seeking impleadment of all Captive Users in Case No. 175 of 2017 and Miscellaneous Applications of Seven Captive Users for impleadment in the matter

§  Case of Maharashtra State Electricity Distribution Company Limited seeking approval to float Open tenders and taking land on lease by paying rent under Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) Scheme.

§  Petition of SWPGL seeking declaration of Captive Status with respect to its 2x135 MW Generating Units No. 3 and 4 for FY 2017-18 AND Miscellaneous Application of TPCL (Distribution) seeking impleadment of all Captive Users in Case No. 170 of 2018 and Miscellaneous Applications of Eight Captive Users for impleadment in the matter

§  Petition of M/s Atnu Solar Private Limited (Jalna) for approval of "Change in Law" and mechanism for grant of an appropriate adjustment/ compensation to offset financial/ commercial impact of change in law events on account of imposition of safeguard duty on solar cells/modules

View More...

Performance of State Discom

New!

Power

PFC Q2 results: Net profit jumps 72 per cent to Rs 4,290 crore

State-run Power Finance Corporation (PFC) on Thursday reported a 72 per cent jump in its consolidated net profit at Rs 4,290 crore in the July-September quarter on account of higher revenues.

Loans worth Rs 1.18 lakh crore sanctioned under discom liquidity package

In May, Finance Minister Nirmala Sitharaman had announced Rs 90,000 crore liquidity infusion into cash-strapped discoms facing demand slump due to the COVID-19 crisis.

§  Electric 3-wheelers to drive EV adoption in Telangana

§  Agra: Farmers block highway, lock power sub-stations in rural areas

§  GE Power India Q2 results: Posts net profit of Rs 38 cr

§  Gujarat: State electricity corporation gets new MD

§  Diwali cheer: No power tariff hike, slabs unchanged in Uttar Pradesh

§  Niti Aayog invites bids for setting up Advance Chemistry Cell manufacturing facilities under PPP

§  Peak demand up: Three new substations for Greater Noida coming

§  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

Jameri Hydro Power Project

KSK Jameri Hydro Power Pvt. Ltd.

60 MW

Arunachal Pradesh

Tidding II Hydro Power Project

Sai Krishnodaya Industries Pvt. Ltd.

75 MW

Arunachal Pradesh

Dardu Hydro Power Project

KVK-ECI Hydro Energy Private Limited

60 MW

Arunachal Pradesh

Attunli Hydro Power Project

Attunli Hydro Electric Power Company

680 MW

Arunachal Pradesh

Kolodyne Hydro Power Project Stage-2

NTPC

460 MW

Mizoram

Renewable Energy

 

IREDA sanctions loans worth Rs 12,696 crore in 2019-20

Addressing the directors and shareholders, Pradip Kumar Das, CMD, IREDA, highlighted the performance of FY 2019-20 and informed that gross income of the company increased to Rs 2,372.38 crore, registering a growth of 17.32 per cent.

SBM Offshore hikes profit guidance, starts work on wind project

While noting that OECD countries had modestly drawn down their crude oil stocks for two months in a row by September, the IEA said that storage levels were still not far from peaks in May at the height of the pandemic

§  India announces $3bn package to attract solar module and advanced battery manufacturers

§  Sterling and Wilson Solar Q2 net down 81 pc to Rs 15 cr

§  Suzlon Posts Financial Results for Q2 FY21, PAT at Rs 670 Crore

§  Decision on introducing PLI in key sectors will give right impetus to economy: Amit Shah

§  Tender Issued for 50 MW Off-Grid Solar Plants in Meghalaya

§  GE Power India Posts Net Profit of Rs 37.7 Crore in Q2 Results

§  NITI Aayog Drafts RfP for Setting up Advance Chemistry Cell Manufacturing Facilities

§  IEEFA Suggest the Adani Group Should Lead India’s Energy Strategy

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

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

 

India's Petronet has no plans to invest in LNG developers

Petronet, the country's top gas importer, has time until December-end to consider investing $2.5 billion for 5 million tonnes per annum (mtpa) of LNG in Tellurian's Driftwood project to end-2020

IGL net profit drops 8.4 pc in Q2

IGL, which retails CNG to automobiles and piped natural gas to households and industries in the national capital and adjoining cities, reported Rs 944 crore revenue from CNG sales, down from Rs 1,257 crore in July-September 2019

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

[Poll Question]

§  Rajasthan: RSGL to expand pipe gas network across state

§  India's fuel demand rose 2.1 percent in October

§  Covid impacts GEECL's sales, outlook remains positive

§  ONGC eyes stake in $4 billion Senegal oil field in distress sale after price crash

§  Gujarat: Adani should lead India’s energy strategy, says report

§  PGCIL net profit up 20percent to Rs 3,094 crore in September quarter

§  Producing urea using natural gas as coal supply hampered: NFL

§  Indian Oil runs at full capacity on demand rebound

§  Artson Engineering Ltd bags Rs. 109.89 crore contract from Indian Oil Corporation Ltd

§  GAIL adjudged to be a proud PSU winner in UNGCNI

§  Producing urea using natural gas as coal supply hampered: NFL

Oil & Gas Technical

New!

 

MePCDL issues EoI Tender for 10MW Solar Plant in Meghalaya

MePDCL has issued an EoI for the installation of Decentralized Grid Connected Ground/ Stilt Mounted Solar Based Power Plants in Meghalaya

ADNOC inks long-term LNG deal with world’s largest independent trader

ADNOC LNG has signed up to a six-year supply agreement with Vitol, the world’s largest independent energy trader, for the sale of 1.8 million tons per annum (mtpa) of post-2022 LNG volumes and a two-year supply agreement with Total for 0.75 mtpa of 2021 and 2022 LNG volumes.

§  ConocoPhillips tallies significant gas discovery offshore Norway

§  IEA cuts oil demand outlook on concerns over vaccine’s impact

§  Ghana forces Eni to merge its Sankofa field with a domestic discovery

§  U.S. wind turbine capacity to expand by 23 gigawatts in 2020

§  OPEC+ explores a three to six month delay on oil output hikes

§  Plunging shale acreage values may create new Permian M&A wave

Daily International Coal Prices

New!

Coal

Next round of commercial coal mine auction in Jan: Coal Minister

The statement assumes significance as of the total 35 coal mines successfully auctioned in the last 10 tranches of auction, only 14 blocks could begin operations

Congress tells CM to pass resolution against coal in Goa

Reacting to chief minister Pramod Sawant’s assurance that the Centre and Goa will cap the coal being handled by JSW’s South West Port Ltd, Adani Mormugao Port Terminal Pvt. Ltd and Vedanta at Vasco, Kamat said that Sawant should walk the talk by accepting Congress’ demand

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

[Poll Question]

§  CIL shares decline nearly 4 pc as Q2 profit falls

§  Government to get Rs 3,056 crore dividend from Coal India

§  India’s Largest Coalfield To Become Larger, Green Cover Under Threat

§  Coal India : Second-Quarter Net Profit Fell 12percent

§  Ropar plant shuts operations to save coal

§  Producing urea using natural gas as coal supply hampered: NFL

Roads

 

Phase-II development of Vyttila Junction doubtful in near future

Even as the Vyttila flyover is getting ready for commissioning in less than a month, doubts remain about the second phase development work at the junction, including the construction of a four-lane underpass linking SA Road and Thripunithura Road.

FASTag registers 400percent growth YoY basis: NHAI

As per the statement, the government’s direction to move towards 100 per cent digital transaction for payments at the toll plazas provided the required impetus for the ‘FASTag’ adoption.

§  NHAI to improve Outer Ring Road in MYsuru

§  HCC Q2 net loss widens to Rs 476 crore, expenses decline to Rs 2,093 crore

§  Tender for Bangalore-Chennai expressway issued

§  Ashoka Buildcon gallops after Q2 PAT soars to Rs 70 cr

§  IRB Infra posts consolidated net loss of ₹20 crore in Sept quarter

§  NHAI team takes stock of bizmen’s problems

§  Do you think construction target of 15000 kms by MoRTH in FY21 up over 46 percent what they built in the previous year is achievable?

[Poll Question]

Projects Update

Project Name

Promoter/Client

State

Length (Km)

Four Lanning of Villukuri to Kanyakumari Section (NH-47)

NHAI / L&T Ltd

Tamil Nadu

42.70

Four Laning Patna-Hajipur-Muzaffarpur Section (NH-19,77)

NHAI / Gammon Infrastructure Projects Ltd

Bihar

63

Four Laning Baharagora to Singhara (NH-6)

NHAI / L & T

Odisha

111.60

Four Laning Sangli-Solapur (Package –II Borgaon to Watambare) NH-166

NHAI/ Dilip Buildcon Limited

Maharashtra

52

Four Laning Chakur to Loha Section of NH-361

NHAI/ MEP infrastructure Developers - LongJian Road & Bridge Company (JV)

Maharashtra

73.3

Power(9 News Items)

General


PFC Q2 results: Net profit jumps 72 per cent to Rs 4,290 crore

·  State-run Power Finance Corporation (PFC) on Thursday reported a 72 per cent jump in its consolidated net profit at Rs 4,290 crore in the July-September quarter on account of higher revenues.

·  Its net profit was Rs 2,497 crore in the quarter ended September 30, 2019, a BSE filing said.

·  Total income of the company rose to Rs 18,171.41 crore in the said quarter from Rs 15,537.55 crore in the same period a year ago.

Source

 

Top

Loans worth Rs 1.18 lakh crore sanctioned under discom liquidity package

·  Loans worth Rs 1.18 lakh crore have been sanctioned so far by state-run non-banking finance firms Power Finance Corporation and REC Ltd under the liquidity package for stressed power distribution utilities, a statement said.

·  In May, Finance Minister Nirmala Sitharaman had announced Rs 90,000 crore liquidity infusion into cash-strapped discoms facing demand slump due to the COVID-19 crisis.

·  This package was later increased to Rs 1.2 lakh crore by the Ministry of Power.

·  "The company and its subsidiary REC Ltd, upto October 31, 2020, has sanctioned an amount of Rs 1,18,273 crore respectively under this scheme of liquidity package to eligible discoms," PFC said in a BSE filing.

·  The loans under the package will be co-funded by PFC and REC in equal proportion. The loans would be sanctioned in two equal tranches, it added.

·  Both the firms have disbursed around Rs 31,100 crore under the package.

·  Under the liquidity infusion scheme of the Centre, REC and PFC are extending financial assistance at a concessional rate of interest. The package was announced on May 13, 2020.

·  The discoms require liquidity to pay off their bills to the gencos (generation companies) and transcos (transmission firms).

·  According the PRAA portal (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators), discoms' total outstanding dues as of September stand at Rs 1.38 lakh crore.

·  Power producers give 45 days to discoms for paying bills for the supply of electricity. After that, outstanding dues become overdue and generators charge penal interest on that in most cases.

·  Such overdues stand at Rs 1.26 lakh crore out of the total outstanding dues of Rs 1.38 lakh crore as of September 2020.

·  The package would help to reduce outstanding dues of the discoms considerably. Besides, it would reduce stress on the power gencos and transcos as their payments are stuck with discoms.

·  Besides the package, in order to give relief to gencos, the Centre had enforced a payment security mechanism from August 1, 2019. Under this mechanism, discoms are required to open letters of credit for getting power supply.

·  The central government had also given moratorium to discoms for paying dues to power generating firms in view of the COVID-19-induced lockdown. The government had also waived the penal charges for late payment of dues.

Source

 

Top

Electric 3-wheelers to drive EV adoption in Telangana

·  With the Telangana government doling out incentives for early adopters of EV vehicles in its EV policy for various segments such as 2,3,4 wheelers and e-buses, the industry players expect that the high demand for electric 3-wheelers will drive EV adoption in the state in the coming days.

·  Currently, there are around 600-700 e-3 wheelers in the city and with adequate financing support and requisite permits required for plying passenger e-autos, this number can grow up to thirty times (nearly 20,000) in two years, Raja Gayam, CEO at Gayam Motor Works, said.

·  “The 3-wheelers will be the first to be electrified and will drive EV adoption primarily because even without any state subsidy, e-3 wheelers are economically viable as compared to their diesel counterparts, due to low maintenance cost,” he added.

·  This is in line with the national trend as a CRISIL research paper that was published earlier this year had estimated that nearly half of the 3-wheelers sold in the next three years in the country will be electric. It said that e-3 wheelers, which already enjoy better cost economics compared with their internal combustion engine (ICE) counterparts, will account for 43 per cent-48 per cent of the new sales in its segment by 2024. On similar lines, KPMG, in a report published earlier this month, said India expects 65 per cent to 75 per cent of 3-wheelers to be electric by 2030.

·  Even ETO Motors president Venugopal Rao Nellutla said the e-3 wheeler sales will be driven by high demand from the cargo segment, especially by e-commerce players who require it for last-mile delivery. “This is the right time for every state to work on replacing the diesel 3-wheelers with electric as post-lockdown, it is time to be more conscious about environment,” he said.

·  As part of the policy, Telangana will be offering 100 per cent exemption of road tax & registration fee for first 20,000 e-3 wheelers purchased & registered in the state. Besides, it will also offer retro-fitment incentive at 15 per cent of the retro-fitment cost (capped at Rs 15,000 per vehicle) for first 5,000 retrofits 3 seater auto-rickshaws. Even under FAME II, e-3 wheelers including e-rickshaws are eligible for demand incentives.

Source

 

Top

Agra: Farmers block highway, lock power sub-stations in rural areas

·  Farmers staged massive protest in Firozabad on Wednesday against inadequate power supply and lack of water in canals which is causing them much inconvenience while irrigating the fields. Farmers, protesting under the banner of Bharatiya Kisan Union (BKU), blocked the Tundla-Etah highway. They also locked down at least three power sub-stations in the rural areas.

·  The police had to implement a route diversion plan after the farmers blocked the highway. It was only after the assurance of senior officials that the farmers ended their protest after around 3pm.

·  BKU state president Yogesh Pratap Singh said, “With poor monsoon this year, farmers were largely dependent on tube wells for irrigation of their fields. We want the state government to ensure at least 18 hours of power supply for operating tube wells in rural areas. Besides, adequate water supply should be there in canals. We will also lock down the head office of the power distribution company in Agra if the state of power supply does not improve.”

·  BKU state vice president Dhirendra Pal Singh said, “The authorities have assured to provide power supply from irrigation feeders for at least 15 hours per day. They will provide 18 hours after consulting the state government and making the required arrangements. We have decided to wait for 15 days. In case the authorities fail to fulfill their promise, then we will launch an indefinite strike.”

·  Sub-divisional magistrate Rajesh Kumar said, “The electricity department officials were called on the protest site. They were asked to ensure at least 15 hours of uninterrupted power supply for proper irrigation of the fields. Required availability of water in canals will be ensured by the end of November. Irrigation department officials have been asked to complete the ongoing cleaning of canals within the next two weeks.”

Source

 

Top

GE Power India Q2 results: Posts net profit of Rs 38 cr

·  GE Power India on Wednesday reported a consolidated net profit of Rs 37.37 crore for the September 2020 quarter, mainly on the back of higher revenues.

·  The company had registered a consolidated net loss of Rs 22.32 crore in the corresponding quarter of the previous financial year, according to a BSE filing.

·  Its total income during July-September 2020 rose to Rs 917.80 crore, compared with Rs 545.43 crore in the year-ago period.

·  The consolidated results include the results of GE Power India Ltd (GEPIL) and its subsidiary GE Power Boilers Services Ltd.

·  The group's business activity falls within a single operating segment - power generation equipments and related services.

·  In a statement, GE Power India Managing Director Prashant Jain said, "We have achieved positive operational and financial second quarter results and had some significant wins in the services business."

·  He added that quick response from its team and timely completion of the projects have resulted in tangible customer satisfaction for all its projects.

·  Jain also said, "GEPIL has a strong position in the Indian power market, which continues to rely on coal for base load power, and GE is committed to all applicable capital market regulations with respect to its majority interest in GEPIL."

·  About the impact of COVID-19, it said that as long-term contracts represent a significant portion of the business volumes, the impact is not expected to be broad, pervasive and long-term.

·  The group has a strong order book of long-term projects and adequate unutilised fund-based credit limits to mitigate impact on the group.

·  Further, it said the group has evaluated the impact of COVID-19 on the financial results and factored in the changed economic environment, wherever required, the impact of which is not significant.

Source

 

Top

Gujarat: State electricity corporation gets new MD

·  M Prasanna Kumar has taken over as Managing Director of Gujarat State Electricity Corporation Ltd (GSECL), a generation arm of state-owned Gujarat Urja Vikas Nigam Ltd (GUVNL). Prior to joining GSCEL, he was heading vertical of NTPC (corporate fuel management) as executive director. He is gold medallist in Mechanical Engineering from Nagarjuna University and also an MBA in operations management, marketing management, financial management and human resources management.

·  He is also a fellow of The Institute of Engineers (I) and has presented and published a number of technical and managerial papers in national and international conferences and journals.

Source

 

Top

Diwali cheer: No power tariff hike, slabs unchanged in Uttar Pradesh

·  Ushering cheer for power consumers before Diwali, UP Electricity Regulatory Commission (UPERC) on Wednesday declined to raise power tariff and retained the slabs of 2019-2020 fiscal. TOI was the first to report earlier this year that tariff would remain unchanged.

·  The regulatory commission decided not to change the slab category and the fixed charge, which was kept at Rs 110/KW/month. An urban domestic consumer would continue to pay at the rate of Rs 5.50 per unit for first 150 units, followed by Rs 6 per unit on consumption of 150-300 units. Likewise, for the slab between 301-500 units, a consumer would be required to pay at the rate of Rs 6.50. Consuming electricity above 500 units will require the consumer to shell out Rs 7 per unit.

·  The tariff has also been kept unchanged for rural households and industrial units. In case of rural consumers, consumption up to first 100 units would invite Rs 3.35 per unit, followed by Rs 3.85 for consumption of 101-150 units.

·  ‘UPPCL decision driven by dip in eco activity’

·  For next 151-300 units, a consumer would be required to pay at the rate of Rs 5 per unit, followed by Rs 5.50 per unit for next 301-500 units. Power consumption above 500 units would invite energy charge of Rs 6 per unit.

·  The development, UPERC sources said, comes days after UP Power Corporation Limited (UPPCL) submitted a business plan, pushing for increase in revenue collection. The commission, on Wednesday observed the UPPCL has to raise its revenue recovery efficiency and curb line losses.

·  The commission’s decision not to hike power tariff, sources said, was also driven by a dip in economic activity following the pandemic. In fact, the nationwide lockdown that affected operations of commercial and industrial units and this too moved the commission to keep tariff unchanged.

·  For townships, registered societies, residential colonies, multi-storied residential complexes (including lifts, water pumps and common lighting within the premises) with loads 50 KW and above, the commission decided to keep the fixed charge at Rs 110/KW/ month with energy charge at the rate of Rs 7 per unit.

·  A housing apartment seeking to supply at single point for bulk loads to flats shall be considered a deemed franchisee of UPPCL. The association shall charge not more than 5% additional charge on specified ‘rate’, apart from applicable charges such as regulatory surcharge, penalty, rebate and electricity duty on actual basis. The 5% additional charge shall be towards facilitating supply to individual members to recover expenses towards supply of electricity, distribution loss, electrical maintenance in its supply area, billing, accounting and audit.

·  The commission also announced that rebate to power loom consumers shall be provided in accordance with applicable government orders, subject to adherence of provision of advance subsidy.

·  President of UP Rajya Vidyut Upbhogta Parishad, Avdhesh Verma, said, the commission should have considered its plea to reduce power tariff. “Nevertheless not increasing power tariff is a welcome step,” he said. Verma said, the parishad would file a review petition after Diwali seeking reduction in power tariff.