Daily Newsletter 2020

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Thursday, August 13, 2020

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

What’s New

Acts and Regulations

§  RoP on Petition under Section 79(1)(c), 79(1)(f) and 79(1)(k) of the Electricity Act, 2003 seeking quashing of the letter and invoice dated 20.1.2020 issued by Power Grid Corporation of India Limited for claiming transmission charges. IL&FS Tamil Nadu Power Company Limited (IL&FS)

§  RoP on Petition under Section 63 of the Electricity Act, 2003 for adoption of tariff for 480 MW Solar PV Projects (Tranche V) connected to the Inter-State Transmission System and selected through Competitive Bidding Process as per the Standard Bidding Guidelines dated 3.8.2017. Solar Energy Corporation of India Limited (SECI)

§  RoP on Petition under Section 63 of the Electricity Act, 2003 for adoption of tariff for 1150 MW Solar PV Projects (Tranche IV) connected to the Inter-State Transmission System and selected through Competitive Bidding Process as per the Standard Bidding Guidelines dated 3.8.2017. Solar Energy Corporation of India Limited (SECI)

§  RoP on Petition under Regulations 9(4) and 15(3)(a) of the Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and other related matters) Regulations, 2020. Shree Cement Limited (SCL)

§  RoP on Petition under Section 79(1)(b) and (f) of the Electricity Act, 2003 seeking reimbursement of amount incurred towards taxes and duties and arranging open access for the purpose of supply of contracted capacity of 100 MW from Noida Power Company Limited/PTC in terms of APP dated 6.4.2018 read with PPA executed on the same date. SPGCL

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Performance of State Discom

New!

Power

Tata Power announces merger; Reports 10 per cent jump in PAT

The merger is part of a strategic initiative to simplify the group holding structure and a broader plan to set the company for future growth

Centre disagrees with UP's e-bidding plan among IPPs for rebate on dues

The payments are being done through loans being provided by Power Finance Corp and REC Ltd under the Centre's Rs 90,000 crore liquidity infusion package under Atma Nirbhar scheme

§  Regulations support Adani Transmission's EBITDA, collection delays: Fitch

§  Punjab: NGT dismisses plea on Bathinda plant

§  Preparation for privatisation: Chandigarh compiling list of power department assets

§  Amid row over power bills, Goa CM announces rebate for consumers

§  Delhi HC directs RBI to allow JSPL to pay $55 million to its Mauritius subsidiary

§  Centre’s power push in J&K: Keran, Mundian join national grid 73 years after Independence

§  PTC India June quarter net profit up 7 per cent to Rs 100 crore

§  Andhra Pradesh: State to set up energy conservation cells in govt depts

§  Centre disagrees with UP's e-bidding plan among IPPs for rebate on dues

§  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

 

OPINION: Powering solar power - a prescription for India

The Indian government is looking at domestically and internationally to utilise the full potential of solar energy.

Andhra Pradesh to set up Energy Conservation Cells in Government Departments

The government of Andhra Pradesh is planning to set up Energy Conservation Cells in all its departments to promote efficient use of energy at all levels

§  PTC India Reports net Profit of Rs 100 Crore in April-June Quarter

§  EESL Tenders for 279 MW of Solar Power Systems in Maharashtra

§  Tender Issued for Supply of 50 Electric Buses in Assam

§  Lucknow: Solar rooftops must for upcoming houses on 500sqm

§  Wind generation falls over 40percent in July; initial assessment blames low wind speed

§  Maharashtra: 'Centre's green rules ignore state control, need review'

§  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

 

Oil India Surveys 2756 Families for Assessment of damage for compensation

After the blowout at its gas well in Baghjan, Tinsukia, Oil India Limited said that a total of 2,756 families have been surveyed for assessment of damage for compensation in Doomdooma and Tinsukia Circle put together till Tuesday.

Streamlining asset monitoring solutions in the oil and gas industry

Operator implements smart well integrity and flow assurance management system to optimise safe well performance in India

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

[Poll Question]

§  India's fuel demand fell 10.8 per cent in July

§  Petronet says invoked force majeure on 9 cargoes

§  'Customers looking for alternates amid rising petrol, diesel prices'

§  COVID: 31 employees of ONGC's offshore facility test positive

§  Crude oil futures rise on firm demand

§  India's weak fuel demand drags on as virus crisis worsens

Oil & Gas Technical

New!

 

Southwestern Energy to acquire Montage Resources in all-stock deal

Southwestern Energy Company and Montage Resources Corporation have entered into a definitive merger agreement under which Southwestern Energy will acquire Montage Resources in an all-stock transaction.

Saudi Aramco plans a 50percent capital spending cut in 2021

Saudi Arabia’s state oil company plans to cut capital expenditure to $25 billion or less next year, about half the amount it was originally planning, according to people familiar with the matter.

§  Saudi Aramco sees Asian crude oil demand recovering. But is it?

§  Petrofac and Storegga partner to build new energy capability for the UK

§  Trump eases methane monitoring rules for oil and gas operators

§  Halliburton to auction 13 real estate properties in the U.S. and Canada

Daily International Coal Prices

New!

Coal

CIL seeks extension of freight concession for coal

Asks Railways for 15% lower tariff for transporting coal 701-1,400 km from mines

Punjab: NGT dismisses plea on Bathinda plant

The day the Supreme Court asked north Indian states to spell out steps taken to stop stubble burning, National Green Tribunal(NGT) disposed of an application filed by retired deputy chief engineer, Punjab State Power Corporation Limited (PSPCL).

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

[Poll Question]

§  Accreditation scheme for prospecting, mining plan consultancies

§  Don't auction Marki-Mangli-II coal block: Maha govt to Centre

§  More industry-friendly reforms in mining sector very shortly: Pralhad Joshi

Roads

 

Underpasses, flyovers at Ravi Nagar, Medical and RBI Squares proposed

Union transport minister Nitin Gadkari has asked MahaMetro to execute three more traffic improvement schemes for Ravi Nagar, Medical and RBI Squares. National Highways Authority of India (NHAI) will fund these schemes.

Vijayawada: Durga temple flyover ready for trial run

Much awaited Durga temple flyover will be ready for trial run in 10 days as the last works like lighting and slab works will be completed soon.

§  Kerala-Karnataka border road to be opened

§  India-Myanmar-Thailand highway: SC allows Centre to continue work

§  600-km highway to connect J&K tourist spots

§  Is it end of the road for conductors in BMTC?

§  NH project between Mangaluru-Bengaluru stalled, commuters face problems

§  NHAI to build 22 expressways with Rs 3.3 lakh crore investment, forms SPVs to meet fund requirement

§  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 Laning Of Repallewada To Telangana- Maharashtra Border (NH-363)

NHAI / Dilip Buildcon Limited

Maharashtra,Telangana

52.602

Four Laning Sahibganj-Manihari (NH-131A & NH-133B)

NHAI/ Dilip Buildcon Limited-HCC (JV)

Bihar

21.68

Four Laning Of Dhrol - Bhadra Patiya Section (NH-151 A)

NHAI / Dilip Buildcon Limited

Gujarat

50.45

Four Laning Cuddapah-Mydukur-Kurnool NH-18 (New NH-40) (Rayalaseema Expressway)

NHAI / KMC Construction and IVRCL

Andhra Pradesh

188.75

Four Laning Binjhabahal - Telebani (NH-6)

NHAI/Oriental structural Engineers Pvt Ltd

Odisha

77.60

Power(11 News Items)

General


Tata Power announces merger; Reports 10 per cent jump in PAT

·  Private power generator Tata Power reported a 10 per cent jump in Profit After Tax (PAT) for the quarter ended June 2020 at Rs 268 crore on the back of lower financing cost. The company also announced three wholly-owned subsidiaries will be merged with the parent firm.

·  In the same quarter last financial year, the company had reported a PAT of Rs 243 crore. Consolidated revenue during the June 2020 quarter stood at Rs 6,671 crore as compared to Rs 7,567 crore in the corresponding period last financial year.

·  "Three wholly-owned subsidiaries i.e. Coastal Gujarat Power Ltd (CGPL), Tata Power Solar Systems (TPSSL) and Af-Taab Investment Company (Af-Taab) are proposed to be merged with Tata Power (parent company) for greater synergies in financing, compliance and oversight," the company said in a statement.

·  It added that the merger is part of a strategic initiative to simplify the group holding structure and a broader plan to set the company for future growth through fiscal consolidation and strengthening of balance sheet.

·  "The merger aims to achieve the long-term objectives by facilitating efficient use of cash and making available corporate support to the businesses of the said wholly owned subsidiaries as needed," the company said.

·  During the June quarter, Tata Power won new renewable energy bids totaling 220 Megawatt and reported sale of ships completed at $212.76 million. Its solar Engineering, Procurement and Construction (EPC) order book stands at Rs 8,700 crore.

·  The quarter also saw Tata Power taking over the management of CESU, Odisha for distribution of electricity in five circles - Bhubaneshwar, Cuttack, Puri, Paradeep and Dhenekal in the state.

·  The company had recently announced expansion plans for its network of smart Electric Vehicle charging points from the current 170 to over 700 by end of this financial year, under the brand name EZ Charge.

·  It has also signed an pact with MG Motors India to deploy 50 Kilowatt DC Superfast chargers at select MG dealership locations and offer end-to-end EV charging solutions to dealerships across India.

Source

 

Top

Centre disagrees with UP's e-bidding plan among IPPs for rebate on dues

·  The Central government disagrees with a recent proposal by Uttar Pradesh to conduct unique online auctions among power plants under which the state seeks rebates in power bills from private producers to disburse payments faster.

·  “The Union power ministry is clear that nobody can alter contracts like this,” a government official said adding that the ministry will soon communicate its stance to Uttar Pradesh.

·  Uttar Pradesh additional chief secretary Arvind Kumar recently wrote to Union Power Minister R K Singh and Union Power Secretary Sanjiv Sahai seeking the Centre’s support for the proposed e-auctions. The move, being the first time ever by any state asking power plants to bid to get payments for power supplied, took the power industry by surprise as well.

·  The payments are being done through loans being provided by Power Finance Corp and REC Ltd under the Centre's Rs 90,000 crore liquidity infusion package under Atma Nirbhar scheme. Under the scheme, the payments to power generators are made directly by PFC and REC but state distribution utilities guide the financial institutions.

·  A senior official in the Uttar Pradesh government said the move was being taken keeping in the cash crunch position of the state's distribution companies. However, the power industry said the proposed bidding by Uttar Pradesh amounts to arm twisting and hurts investment sentiments in the state.

·  "Uttar Pradesh is in the process of developing an online and transparent bidding process claiming to give upto 75% of private plant's dues in the first tranche of the loan depending on the rate of the rebate they offer. Those plants that will not offer rebates will get paid in the second tranche of disbursement by PFC and REC," an official said on condition of anonymity.

·  Uttar Pradesh has been sanctioned a loan of Rs 20,940 crore under the liquidity scheme, half of which will be disbursed now and half in the second trache when the state fulfills agreed conditions.

·  The Union power ministry had last month issued a direction to PFC and REC asking them to disburse the sanctioned amount under a liquidity infusion package in a proportionate manner among state-run and private thermal and renewable plants.

·  Meanwhile, the Centre is working to extend the liquidity package to cover dues for the months of April, May and June 2020.

Source

 

Top

Regulations support Adani Transmission's EBITDA, collection delays: Fitch

·  The operating profit of AdTransmission Ltd's (ATL's) electricity transmission and distribution business is largely immune to lower volume caused by coronavirus pandemic as it benefits from a favourable regulatory framework, Fitch Ratings said on Wednesday.

·  However, the group faces cash-collection delays from both state-owned power-distribution utilities and retail customers in Mumbai due to logistical challenges in collections, lower demand and payment concessions amid the pandemic.

·  Fitch said ATL's recurring EBITDA of Rs 1,100 crore billion in the first quarter of the financial year ending March 2021 was supported by availability-based payments under a favourable regulatory framework.

·  The assets of ATL's distribution business, housed in Adani Electricity Mumbai Ltd's (AEML) obligor group, are based on a cost-plus tariff framework while its transmission projects are either governed under the return-based framework or were awarded through tariff-based competitive bidding.

·  "Revenue under both frameworks is based on system availability and is not exposed to volume risk. ATL maintained availability of its transmission assets and distribution business above regulatory benchmarks in Q1 FY21," said Fitch.

·  The company did not face major operating issues during India's pandemic-related lockdown as the government classified electricity supply as an essential service.

·  However, ATL faces cash-collection delays, as most of its customers are state-owned power-distribution utilities whose operational and financial profiles have weakened from the pandemic-related drop in electricity demand and payment concessions to end customers.

·  ATL group's cash collection deteriorated to 60 to 65 per cent in Q1 FY21. However, Fitch said any delay in recovering accrued revenue will be recouped with interest costs in line with slated regulations.

·  The company says that economic activity and electricity demand have picked up in Mumbai since the relaxation of the lockdown in late June with collections at the AEML obligor group and the rest of ATL group improving to 99 and 80 per cent respectively in July.

·  "Nevertheless, we believe ATL has ready access to working capital facilities, owing to its regulated contracted asset base, should counterparty payments be delayed and that regulatory penalties will cover interest costs on working capital," said Fitch.

Source

 

Top

Punjab: NGT dismisses plea on Bathinda plant

·  The day the Supreme Court asked north Indian states to spell out steps taken to stop stubble burning, National Green Tribunal(NGT) disposed of an application filed by retired deputy chief engineer, Punjab State Power Corporation Limited (PSPCL). The petitioner sought directions to the Punjab government to convert one of the units of Guru Nanak Dev thermal plant from coal fired to paddy straw fired to decrease pollution.

·  The NGT bench comprising chairperson Justice Adarsh Kumar Goel, judicial member Justice S P Wangdi and expert member Nagin Nanda, in its brief order on Tuesday, wrote that the Punjab government may take action in accordance with the law and if the power plant is to be converted from coal fired to paddy straw fired, all norms laid down should be complied with.

·  With this, the state government is free to dismantle the power plant. Tenders for dismantling of the plant are to be opened on August 20. Land of the plant has already been transferred to Punjab Urban Planning and Development Authority (PUDA).

·  Darshan Singh had filed an application in the NGT on December 16, 2019 saying that PSPCL had prepared a project report for converting one unit of the thermal plant into paddy straw fired. If the proposal is accepted, he said, pollution caused by burning of paddy straw will be reduced.

Source

 

Top

Preparation for privatisation: Chandigarh compiling list of power department assets

·  An asset count is on in the Union Territory's power department before the unbundling and privatisation.

·  A senior UT official said the administration will hand over a list of electricity towers, offices, and equipment etc. to the Union government's consultant. The Centre-appointed and state-run Power Finance Corporation (PFC) had appointed multinational company Deloitte as consultant recently.

·  In May, Union finance minister Nirmala Sitharaman had announced to privatise the electricity distribution companies of the UTs.

·  The powermen's union had opposed the move but the UT administration had promised to protect the workers' jobs and service benefits, besides giving them better or similar employment terms. It had also ruled out retrenchment and transfers. It had a series of meetings with the employee unions to understand their concerns.

·  Last year, the UT's special secretary of engineering wrote to the superintending engineer (SE) about the decision to appoint a consultant for turning the electricity wing of the UT engineering department into a business corporate and start the process of appointing a consultant through competitive bidding.

·  Joint Electricity Regulatory Commission (JERC) had earlier directed the UT administration to restructure and reform the power department because it is mandatory under the Electricity Act of 2003. In a 2018 public hearing, the commission had pulled up the department for a delay in enforcing the law's corporatisation mandate.

·  As Chandigarh doesn't produce its own electricity, the state transmission utility will be responsible for smooth transmission. The state load dispatch centre will be the apex body for integrating the power system operation. It will also be responsible for optimum scheduling and dispatch of electricity, maintaining accounts of the volume of power transmitted, and controlling the intra-state transmission system.

·  Chandigarh's electricity department serves 2.47-lakh consumers of nine categories. Almost 87 per cent of the consumers, 2.14 lakh in number, are in the domestic class. The remaining 23 per cent belong to other categories such as commercial, small power, medium supply, large supply, bulk supply, public lighting, agriculture power, and temporary supply.

Source

 

Top

Amid row over power bills, Goa CM announces rebate for consumers

·  Amid a series of protests by opposition parties against the Goa Electricity Department over inflated power bills, Chief Minister Pramod Sawant on Tuesday announced a rebate of Rs 18.3 crore for all consumers.

·  "The government has decided to give a total rebate of Rs 18.3 crore to electricity consumers. 50 per cent of fixed charges are waived for April and May for all low tension domestic, commercial and other categories.

·  "For high tension consumers, the difference of the billed maximum demand charges and actual recorded maximum demand charges for April and May 2020 are waived. The rebate will be adjusted in future bills," Sawant said.

·  Over the last two months, the Electricity Department has been flooded with complaints from consumers alleging inflated bills.

·  The Congress, the Aam Aadmi Party and Goa Forward have staged protests in the state urging the Goa government to examine the excessive power billing issue.

Source

 

Top

Delhi HC directs RBI to allow JSPL to pay $55 million to its Mauritius subsidiary

·  In a major relief for Jindal Steel & Power (JSPL), the Delhi High Court has directed the Reserve Bank of India (RBI) to allow the Naveen Jindal promoted firm to remit about $55 million (around Rs 411 crore) to its Mauritius-based subsidiary.

·  The company is seeking to remit a total $90 million to its subsidiary Jindal Steel and Power (Mauritius) to meet its debt obligation, which the company was supposed to pay by June 30, 2020.

·  However, the Court has in its order said that the relief is conditional and the JSPL will have to furnish the undertaking from the board of director that if for some reason this court passes a direction to the company to deposit the remitted amount of around $90 million, the company will immediately deposit the same amount in the court.

·  Also, the court has directed the company to give an undertaking that it has unencumbered assets of $100 million or more and the JSPL will shall not sell, alienate or transfer such encumber assets till next date of the hearing.

·  “I cannot help noticing that the corporate guarantee and the loans have prima facie been taken with the prior permission of RBI,” said Justice Jayant Nath in his order of July 24, which was recently uploaded on the court website. “It would hardly be appropriate for the RBI to now let the petitioner go in default and dishonour its corporate guarantee because some investigation proceedings are pending by law enforcement agencies which appear to have been pending since 2015.”

·  According to JSPL, it had made a foreign direct investment and had undertaken financial commitment in its three wholly-owned overseas subsidiaries including Jindal Steel & Power (Mauritius), Sky High Overseas and Jindal Steel Bolivia after taking the approvals from the RBI.

·  Senior counsel Parag Tripathi, while appearing for the JSPL argued that the entire transaction, namely including loans of $279.5 million dollars and the corporate guarantee of $865 million have been given by the petitioner after taking due permission from RBI.

·  The counsel for the RBI argued that the permission has been declined on the saying of the Enforcement Directorate. The central bank also argued that the Delhi High Court lacks the jurisdiction to hear the case since RBI and also the Foreign Exchange Department, Central Office, Overseas Investment Division both are situated in Mumbai.

·  The RBI had also argued that the court needs to implead ED in the case to seek their response.

·  However, the court had rejected RBI’s arguments and observed that the discretion has to be exercised by RBI. The same cannot be delegated to the Enforcement Directorate.

·  “The discretion under clause 9 of the above-noted Regulations has to be exercised by RBI the respondent based on cogent facts and materials and not at the mere directions of Directorate of Enforcement,” said the court in its 15-page order. “It was for the RBI to exercise its discretion in the facts and circumstances of the case keeping in view its own permissions given and subsequent facts and events that may have taken place after the permission was given.”

·  The lawyers for the JSPL had also argued that, since 2015 there has been no fresh inquiry under FEMA or PMLA initiated by the law enforcement agencies.

·  “The old inquiries which are of insignificant amounts continue to be languishing. Despite the pendency of those inquiries, it is pleaded that several permissions have been given by RBI earlier,” argued the counsel for the Jindal Steel & Power.

Source

 

Top

Centre’s power push in J&K: Keran, Mundian join national grid 73 years after Independence

·  The people living in Keran and Mundian, located on the LoC, in Kupawara district of Jammu & Kashmir are brimming with new energy. Their evenings are no longer dictated by a few hours of dodgy electricity supply from diesel generators as the area was linked to the grid on July 18, 73 years after Independence.

·  The lights of Keran and Mundian today shine as a symbol of the Centre’s push to improve power infrastructure and supply since J&K was carved out as a Union Territory a year ago. It is pumping Rs 3,500 crore into upgrading and expanding transmission and distribution infrastructure. Another financial package of Rs 4,580 crore is in the works to infuse liquidity in the utilities.

·  According to power ministry data, 33 sub-stations, 745 new distribution terminals have been built under Central schemes in the year since the UT was created. Besides, 48 km of feeders were separated, 2,020 km of distribution lines and 356 km of aerial bunched/underground cables were laid to cut line losses and improve supply during this period to ensure 24X7 supply.

·  But the most interesting makeover perhaps is the installation of energy-efficient LED street lights under Street Lighting National Programme, similar to what is seen elsewhere in the country. Energy Efficiency Services Ltd under the ministry, has installed some 1.2 lakh LED street lights, split almost equally between Jammu and Srinagar, under an agreement with J&K power and urban development departments.

·  This single initiative alone has saved Rs 57 crore in power bills for municipalities, leaving more funds for health and sanitation. The LED scheme is also estimated to have resulted in energy saving of 81 million units, avoided peak demand of 13.63 MW and reduced CO2 emission of 56,345 tonne.

·  In June, a new joint regulatory commission for UTs of Ladakh and J&K has was set up to ensure fair tariff for consumers. The ministry is currently examining a roadmap submitted by a committee under Alok Kumar, principal secretary, UP, for creating an efficient and viable power sector in the UT.

Source

 

Top

PTC India June quarter net profit up 7 per cent to Rs 100 crore

·  Power trading solutions firm PTC India on Tuesday reported an over 7 per cent rise in consolidated net profit at Rs 100.06 crore for the June quarter, helped by reduced expenses. The company's net profit stood at Rs 93.26 crore in the April-June period of 2019, it said in a BSE filing.

·  However, total income fell to Rs 4,641 crore during the quarter, from Rs 5,415 crore in the year-ago period. Total expenses also reduced to Rs 4,499 crore, as compared to Rs 5,275 crore earlier.

·  In a separate statement, the company's CMD Deepak Amitabh said, "While the demand for traded electricity was impacted initially, the gradual restoration of economic activity has seen a revival of demand to levels comparable to the corresponding period last year."

·  "Positive results of structural initiatives taken by government of India in the wake of COVID -19 are now visible, and we remain cautiously optimistic," he added.

Source

 

Top

Andhra Pradesh: State to set up energy conservation cells in govt depts

·  In a bid to promote energy conservation and efficiency, the state government is planning to set up Energy Conservation Cells (ECC) in all its departments to promote efficient use of energy at all levels and achieve energy security along with economic, environmental and social benefits.

·  According to an estimate by Bureau of Energy Efficiency (BEE) and the Andhra Pradesh State Energy Conservation Mission (APSECM), 25 per cent of the energy consumption can be reduced by adopting energy- efficient technologies.

·  Chief secretary Nilam Sawhney has directed all heads of departments (HoD) and district collectors to create ECCs in all 87 HoD offices, district level offices, corporations and various society offices in the state. The ECC will act as a nodal agency to coordinate with APSECM for effective implementation of energy conservation and energy efficiency measures in their respective department and organisation.Although a decision has been taken to create ECCs, orders are yet to be given by the government. The officials have to constitute the ECCs in their respective departments within a month after orders are issued.

·  The secretary for energy Srikant Nagulapalli said in a statement on Tuesday that Andhra Pradesh is keen on bringing in the latest technologies to enhance energy efficiency in key sectors. It has been approaching international agencies for their support to bring innovative global technologies in the area of energy efficiency and energy conservation.

·  “We are seeking technological development, technology transfer for the enhancement of energy efficiency in the areas of municipal, agricultural, industrial sector and other key sectors that will enhance energy security, promote industrial and economic development apart from environmental benefits,” he said.

Source

 

Top

Centre disagrees with UP's e-bidding plan among IPPs for rebate on dues

·  The Central government disagrees with a recent proposal by Uttar Pradesh

 

 

Daily Newsletter 2020

We Help You Take Better Decisions Everyday !

Tuesday, August 11, 2020

For Latest Updates Follow Us On

TwitterlinkedinFacebook

 

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

What’s New

Acts and Regulations

§  Communication System for Intra State Transmission of Electricity Regulations, 2020

§  Haryana Electricity Regulatory Commission (Communication System for Intra-State transmission of electricity) Regulations, 2020.

§  Order on Review Petition seeking review and modification of Order dated 16.09.2019 passed by this Hon’ble Commission in case No. HERC/PRO-25 of 2019 and HERC/PRO-32 of 2019

§  Order on stopping of cheque payment by UHBVN and provisions of Regulation No. HERC/29/2014 Haryana Electricity Regulatory Commission (Electricity Supply Code) Regulations, 2014 dated 08/01/2014

§  Order on Petition seeking clarification on various applicable charges under Clause 19, 20, 21, 22, 23, 24, 57, 58 and 59 of HERC (T&Cs for grant of connectivity and open access for intra State transmission and distribution system) Regulations, 2012 (No. 25/HERC/2012 dated 11.01.2012) to be levied on Northern Railways (DDL) for availing medium term open access.

View More...

Performance of State Discom

New!

Power

Save your electricity bill, and save your power company too; here’s how smart meters can help

While the government looks to help India’s power distribution companies emerge from distress, smart meters can actually prove to be a convenient solution to the same and may help in saving up on collection and billing losses.

Genus Power Makes History, Supplies 1.5 Million Smart Meters to EESL

Power Infrastructures Ltd (Genus Power), the country’s largest electricity metering solutions provider, becomes the first company in Asia Pacific to achieve the milestone of supplying 1.5M Smart Meters to EESL (Energy Efficiency Services Ltd), bearing a testimony of the manufacturing capability of an Indian company for such an advance meter amid global competition.

§  UPSEB shows why some business leaders are not so sure about ‘ease of doing business’ in India

§  AAP protests power bills in front of Raut’s house

§  Maharashtra: Cabinet to discuss power bill relief this week

§  OPINION: Busting the Myth - Electric Vehicle Policy

§  Kerala: Muraleedharan raises concerns over lack of power supply in landslide-hit Idukki

§  Cabinet to okay new Consumer charter to provide 24X7 power

§  Dry shielding in place for Kudankulam plant 3 reactor vessel

§  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

 

Rs 1.8 Tn Investment in Transmission Segment in India by 2025: ICRA

ICRA expects an investment of Rs 1.8 trillion by 2025 in the power transmission segment in India, driven by evacuation infrastructure for RE projects.

Renew-SECI Tussle At CERC Indicates Further Trouble For Wind Energy

India’s wind energy sector has been stuttering, even as solar has managed to escape the worst of the slowdown blues.

§  Explaining India’s 175 GW Renewables Target. The Big Change Making It Possible

§  3 Firms Pitch for Equalisation Levy on Solar Equipment Supplies From SEZs

§  BEL sets up Solar-Power Classrooms in 122 Government Schools in Karnataka

§  CERC Issues Draft Amendments for ISTS Connectivity of RE Projects

§  Maharashtra has Achieved 9.7 GW of its 22 GW by 2022 RE Target

§  BEL sets up solar-powered classrooms in 122 Karnataka schools

§  Power projects may not be able to use "grandfather" clause: MNRE

§  Is Covid-19 a blessing in disguise for green energy companies?

§  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

 

Another attempt to cap Assam gas well blowout fails

Since the Baghjan well is located close to Dibru Saikhowa National Park (DSNP) and the ecologically-sensitive Maguri Motapung Wetland, there were fears of environmental damage to the area due to the blowout and fire.

Fuel hacks by Indian farmers among multiple threats to diesel

The retail price of the fuel in Kolkata and other Indian cities has surged this year, even as the coronavirus pummeled the economy

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

[Poll Question]

§  Saudi Aramco still aims for $15 billion investment in India’s Reliance

§  Pachpadra refinery will be built on time: Rajasthan government

§  BPCL launches GoDigital campaign to popularize online refill booking facilities

§  Crude oil futures rise on firm demand

§  Numaligarh Refinery Limited gets environmental clearance for the Refinery Expansion Project

§  Reliance Industries' asset monetisation to boost credit quality: S&P

§  Baghjan gas well inferno: Blowout preventer placed over the well

Oil & Gas Technical

New!

 

Halliburton, Honeywell develop open-architecture oil and gas software

Halliburton and Honeywell announced a collaboration to maximize asset potential, reduce execution risk and lower the total cost of ownership for oil and gas operators.

Prumo, bp and Siemens enter into partnership with SPIC on Brazil LNG projects

The closing of the agreement, scheduled for the fourth quarter of 2020, is subject to the fulfillment of certain conditions precedent usual to this type of transaction, among others.

§  PESA says oilfield job losses are accelerating, with more likely to come

§  $3 billion deal for rig-builder Keppel canceled after quarterly loss

§  Oil climbs on signs of recovery in Asia and increasing air travel

§  Norway cuts September crude shipments to help limit global supply

§  Equinor promotes technology chief to CEO to lead clean-energy push

Daily International Coal Prices

New!

Coal

Towards a self-reliant India: Private sector steps into the future of coal mining

The government aims to increase transparency, competition and participation of the private sector, under the new regime of coal block auctioning.

Who benefits from Modi government’s commercial coal auctions? Not coal mining states

Scroll.in analysis shows the floor revenue share fixed in the current auctions yields lower assured returns for states compared to previous rounds.

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

[Poll Question]

§  India approves 41 coal mines amid environmental concerns

§  Nod to keep green areas out of coal auction in Chattisgarh

§  Unions call off coal strike after delay in commercial mining auction

§  India's coal import drops 43percent in July owing to high stockpile at pitheads, plants

§  E-auction dates for commercial mining of coal likely to be extended again: Sources

Roads

 

Repair work to be finished by 1st week of Sept: NHAI

The entire repair work of the Mumbai-Agra highway on Kasara Ghat will be completed by the first week of September, said senior officials of the National Highway Authority of India (NHAI).

Highway construction in Q1 dips to 18 km a day amid Covid-19 pandemic

The Ministry of Road Transport and Highways constructed 1,640 kilometres in the first quarter (April-June) of the financial year 2020-21 (FY21).

§  Active Bids for Roads Project (Costing INR 500- 1000 Crs[Exclusive]

§  Road Projects Awarded But Not Started As on July 2020 (by NHAI) [Exclusive]

§  Outer Ring Rd phase II ready by Aug-end

§  Felling nod for Ytl-Darwha road widening violates norms

§  PWD, (R&B) Circle, Kokrajhar invites tender for restoration work

§  Double deck structure proposed between airport, Chennai bypass

§  Traffic cops fill potholes on busy Mumbai-Ahmedabad national highway at Vasai

§  Gadkari plans to step on the gas as road construction slows down to 21 km per day this fiscal

§  Encroachment along highway road in Chengalpet

§  Location of eastern Karnal bypass may be changed

§  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 Laning Of Repallewada To Telangana- Maharashtra Border (NH-363)

NHAI / Dilip Buildcon Limited

Maharashtra,Telangana

52.602

Four Laning Sahibganj-Manihari (NH-131A & NH-133B)

NHAI/ Dilip Buildcon Limited-HCC (JV)

Bihar

21.68

Four Laning Of Dhrol - Bhadra Patiya Section (NH-151 A)

NHAI / Dilip Buildcon Limited

Gujarat

50.45

Four Laning Cuddapah-Mydukur-Kurnool NH-18 (New NH-40) (Rayalaseema Expressway)

NHAI / KMC Construction and IVRCL

Andhra Pradesh

188.75

Four Laning Binjhabahal - Telebani (NH-6)

NHAI/Oriental structural Engineers Pvt Ltd

Odisha

77.60

Power(9 News Items)

General


Save your electricity bill, and save your power company too; here’s how smart meters can help

·  While the government looks to help India’s power distribution companies emerge from distress, smart meters can actually prove to be a convenient solution to the same and may help in saving up on collection and billing losses.

·  While the government looks to help India’s power distribution companies emerge from distress, smart meters can actually prove to be a convenient solution to the same and may help in saving up on collection and billing losses. “Investing in smart metering solutions would drastically improve metering, billing and collection (MBC) efficiencies, and thereby maximise revenue,” a report by CRISIL said on Monday. In fact, utilities, which have smart metering infrastructure installed, reported 95% billing efficiency in the first quarter of this fiscal, when the lockdown was in force, and generated additional revenue of 15-20% per meter for discoms, the report cited data from Energy Efficiency Services Ltd (EESL).

·  According to data by EESL, discoms can garner additional revenue of over Rs 100,000 crore annually from unbilled electricity as smart meters increase metering, billing and collection (MBC) efficiencies. As of now, India currently has nearly 3 million smart meters while a whopping 270 million meters are still traditional. India will need to spend Rs 65,000 crore to make a switch from traditional meters to smart meters.

·  Benefits to consumers too

·  Smart meters have many benefits for discoms but may also prove of some use to consumers too. “With smart metering infrastructure, discoms can introduce time-of-day tariff by tracking real-time consumption. This will also enable consumers to select economical and convenient time slots,” the CRISIL report said. How does this help consumers? Users may choose to charge their electric vehicles during off-peak hours, and can enjoy substantial savings, while discoms manage peak load.

·  Discom distress

·  India’s power distribution sector is ailing with huge AT&C losses and MBC inefficiencies. As of May 2020, the discoms owe Rs 1.16 lakh crore dues to power generation companies. The government has also jumped in to save the sector and announced privatisation of discoms, starting with the union territories and eventually targeting states with high AT&C losses. The government has also provided Rs 90,000 crore liquidity support to discoms in view of the pandemic and ailing financials under its Atmanirbhar Bharat Abhiyan stimulus package. The Ujwal Discom Assurance Yojana (UDAY) also aims to improve the discoms’ overall financial health.

Source

 

Top

Genus Power Makes History, Supplies 1.5 Million Smart Meters to EESL

·  Genus Power Infrastructures Ltd (Genus Power), the country’s largest electricity metering solutions provider, becomes the first company in Asia Pacific to achieve the milestone of supplying 1.5M Smart Meters to EESL (Energy Efficiency Services Ltd), bearing a testimony of the manufacturing capability of an Indian company for such an advance meter amid global competition.

·  Genus Power is the largest supplier of Smart Meters in India and is currently executing a big contract for EESL. EESL plays a vital role in implementing India’s ambitious plan of rolling out 240 million Smart Meters in next 3 years as planned by the Ministry of Power, Government of India.

·  Excited with this achievement, Jitendra K Agarwal, Jt Managing Director, Genus Power said, “As a leader in the Smart Metering industry, we are proud to be the first in India to achieve this figure. The Smart Meters commissioned in various states have played an important role during the COVID 19 pandemic. The nationwide lockdown and social distancing prohibited DISCOMs from physically taking the monthly meter readings. All states where Genus Power Smart Meters were installed have been able to take readings remotely that resulted in bill generation & collection, helping DISCOMs to sustain their operations.”

·  Mr Saurabh Kumar, Managing Director, EESL said, “Smart Meters offer numerous benefits to DISCOMs as well as consumers. They also have the potential to make the power sector increasingly resilient, transparent, digitized, and accountable. A seamless and consumer-focused energy ecosystem is the way forward and thus we must encourage the adoption of smart meters across the country.”

·  Riding on its large installed base of more than 60 million electricity meters and domain expertise, Genus Power has embarked on an ambitious programme on Smart Metering in line with the Smart Grid vision of the Government of India. The company is currently exporting its products to Middle East, Africa and Asia Pacific regions.

Source

 

Top

UPSEB shows why some business leaders are not so sure about ‘ease of doing business’ in India

·  The UP government owes Rs 17,825 crore to gencos and Rs 13,294 crore to discoms. Power producers, as FE has reported, have rejected the offer—allowing this for one state would mean allowing it for all, and independent power producers are owed near about Rs 88,000 crore.

·  If the Uttar Pradesh State Electricity Board defaulting on payments to gencos was not bad enough, it is now asking private power producers to give it a discount for it to be able to pay up. This despite the fact that the state received Rs 21,000 crore under the Centre’s Rs 90,000 crore liquidity infusion to clear outstanding dues. The UP government owes Rs 17,825 crore to gencos and Rs 13,294 crore to discoms. Power producers, as FE has reported, have rejected the offer—allowing this for one state would mean allowing it for all, and independent power producers are owed near about Rs 88,000 crore. This state of affairs, however, is more than just economic pain; it shows that the ‘ease of doing business’ goal can be shelved at will by a state government—it dims investors’ perception of India’s business-friendliness.

·  It is just as well that business leaders have been speaking out. As per Times of India, Volkswagen India MD Gurpratap Boparai is of the belief that while it is easy to get initial clearances in the country, it gets difficult to do business afterwards. Commenting on the policy of import curbs on Chinese products, he further highlighted that India needs to have policy certainty, and policy should not be changing from one budget to another. Boparai further remarked that efforts on ‘ease of doing business’ need to incorporate day-to-day functioning as a parameter as well. While India has improved its ease of doing business ranking, a new study by Teamlease, India’s largest temping agency, showed how much red tape remains; there are 463 Acts in the case of labour that need to be followed, 17,966 compliances and 1,262 filings that need to be made.

Source

 

Top

AAP protests power bills in front of Raut’s house

·  A large number of activists from the Aam Admi Party (AAP) staged a dharna opposite the residence of energy minister Nitin Raut on Sunday, protesting astronomical summer power bills. They were detained by cops and taken to the police station.

·  The main demands of the activists were waiving power bills up to 200 units per month, and cancelling the power tariff hike imposed by Maharashtra Electricity Regulatory Commission (MERC) from April 1.

·  They raised slogans asking Raut to resign if he failed to reduce power bills, and condemning MSEDCL.

·  The activists said that earnings of most people had reduced drastically due to the lockdown and they were in no position to pay such high bills. They pointed out that the Arvind Kejriwal-led government in Delhi had waived power bills to give relief to common citizens.

·  AAP has collected 10,000 signatures on a petition demanding reduction of power bills and sent it to chief minister Uddhav Thackeray. AAP leader Devendra Wankhade and Bhushan Dhakulkar said the government had not taken cognisance of the petition so far.

·  They also expressed unhappiness over Raut refusing to meet them when they were agitating in front of their house.

Source

 

Top

Maharashtra: Cabinet to discuss power bill relief this week

·  The proposal to provide relief to consumers receiving astronomical power bills this summer will be discussed by the state cabinet this week. Energy minister Nitin Raut told TOI that the proposal has been cleared in principle and just needs cabinet nod.

·  Energy secretary Aseem Gupta, who is preparing the proposal, said that consumers of all four distribution licensees – MSEDCL, BEST, Tata and Adani – would get relief. He refused to elaborate on the proposal as it was yet to be tabled before the cabinet. Raut had earlier told the media that 93 per cent consumers would get relief from the proposal.

·  All the four licensees had not taken meter readings in late March, April and May. They issued average bills on the basis of winter months’ power consumption, which was very low. They took readings in June and sent bills on the basis of actual consumption. As the difference between consumption as per average bills and the actual one was very high, the accumulated units were very high and consumers got astronomical bills.

·  This has led to widespread unrest in the state. Consumers, including celebrities, have slammed the distribution companies and the state government over high bills. Opposition parties, including BJP, AAP, Janata Dal, etc, have been staging agitations across the state demanding relief for consumers.

·  A senior MSEDCL official said that the government would have to give subsidy amounting to thousands of crores if it wants to reduce the summer power bills of consumers of all licensees. “It is doubtful whether the government has the money to provide the kind of relief that consumers are expecting,” he added.

Source

 

Top

OPINION: Busting the Myth - Electric Vehicle Policy

·  This is the fourth article in the "Busting the Myth" series aimed at breaking down the popular myths surrounding the electric vehicle ecosystem. The series is a joint editorial initiative of ETEnergyworld, The Climate Group and Climate Trends.

·  For India, transitioning to electric mobility is not just about achieving its low carbon goals, but also about resolving issues like air pollution, energy security and job creation. The ongoing COVID-19 pandemic and the auto sector slump have led to not only low vehicle sales, but also a disruption in component supply chains. The converging of multiple crises like extreme weather events and the ongoing pandemic highlight the need to double down on efforts towards low carbon transition.

·  Advancing electric mobility can help meet India’s multiple objectives and revitalize the automobile market. The economic recovery steps that follow, should focus on developing a clear roadmap to enable this transition. To drive indigenous manufacturing and the concept of “Aatma Nirbhar Bharat” (self-sufficient India), a strong and systematic push to introduce the right policy and economic levers would be required.

·  Though policy support is essential for moving ahead with electric mobility, it is equally important to address some of the myths surrounding this sector.

·  Myth #1: There is no evident government support for EVs in India yet

·  To kickstart the electric vehicle (EV) revolution, the Government of India has undertaken multiple initiatives to promote manufacturing as well as adoption of EVs. Capital subsidies are being provided for purchase of EVs under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme, as well as some state EV policies. In addition, various financial incentives, fee exemptions and tax rebates are also available to EV owners under various state level schemes.

·  To boost the nascent EV market and increase EV sales, the Goods & Services Tax (GST) on EVs has been reduced from 12% to 5%. EV owners can also claim an income tax deduction of INR 150,000 on the interest paid on loans taken for EVs.

·  Myth #2: Policy support for EVs means more government money is needed?

·  A healthy set of policies is a mix of both subsidies and mandates. The carrot and stick example illustrate this clearly, where subsidies are carrots and mandates are sticks. For example, while the government is providing several financial incentives (listed above) to increase the adoption of EVs, it has also imposed strict fuel and vehicle efficiency standards for Internal Combustion Engine (ICE) vehicles and had mandated the transition to BSVI from April 2020.

·  Other mandates can include tightening of CAFÉ (Corporate Average Fuel Efficiency) norms, low emission zones that allow entry to EVs only, and the introduction of Zero Emission Vehicle (ZEV) mandate programs that link EV sales to automaker’s ICE vehicle sales. Both financial incentives and mandates go hand-in-hand in transitioning to cleaner, low carbon transport alternatives.

·  Myth #3: Insufficient planning and recognizing the need for charging infrastructure

·  National as well as state governments are working on improving public charging infrastructure within their jurisdictions. The Bureau of Energy Efficiency (BEE) is the Central Nodal Agency for EV charging, with State Nodal Agencies being identified in every state. Under the FAME II scheme 2636 charging stations were sanctioned in January 2020. At the state level, through EV policies and clean energy programs, fiscal and non-fiscal incentives are being provided for manufacturing and operating chargers, such as attractive tariffs from utilities. States like Telangana have amended their building by-laws to mandate space for charging infrastructure. With these ongoing initiatives and many more in the planning, the density of public charging infrastructure can be built up to match the rising sales of EVs.

·  Myth #4: Private sector needs to shape the EV market while government waits passively

·  The government has taken the onus to kickstart the e-mobility market by generating demand. It has procured e-cars for government use, increased the number of e-bus tenders for public transport, and invested in charging infrastructure through public enterprises (like EESL, REIL, HPCL). The industry, however, must support this by supplementing and scaling up this demand, and by deploying EVs for corporate and commercial use. Doing so will help create the ecosystem-level infrastructure (manufacturing, charging and after-sales services) needed to accelerate mass adoption.

·  Myth #5: Corporate consumers should wait for a few years before thinking about EVs

·  Both central and state governments are providing a bunch of incentives for manufacturing and adoption of EVs. Consumers investing in e-mobility will have the early mover advantage to avail these financial incentives. Further, with BS-VI mandate increasing ICE vehicle costs, uncertainty around petroleum price, higher renewable penetration in the grid and robust policy support, EVs should become a preferred option.

·  What next?

·  The requirements for accelerated EV adoption call for strong and stable government policies and regulations. Through policy support, the government is trying to encompass all parts of the EV ecosystem – manufacturing, use and end-of-life for vehicles, charging infrastructure and batteries, to ensure smooth transition to EVs. This is evident through the electric vehicle policy developments by two states this week - Telangana and Delhi. In addition to incumbent policy support, enhanced

·  industry co-operation and higher consumer awareness can help enable faster adoption of EVs in India.

Source

 

Top

Kerala: Muraleedharan raises concerns over lack of power supply in landslide-hit Idukki

·  Minister of State (MoS) for External Affairs V Muraleedharan on Monday raised concerns over inadequate healthcare facilities, road infrastructure in Kerala and claimed that people weren't receiving power supply amid landslide in Idukki.

·  Muraleedharan also targeted the Kerala Electricity Minister MM Mstating that Idukki does not have an uninterrupted supply of electricity and areas hit by landslide did not have power for more than four days.

·  43 persons lost their lives after a landslide, triggered by torrential rains, occurred in a residential area in Rajamala of Kerala's Idukki district.

·  "Idukki, the home district of Kerala's Electricity Minister, MM Mani does not have uninterrupted supply of electricity. The landslide areas did not have power for more than four days," Muraleedharan tweeted.

·  "The State of Kerala, which boasts of being number one, in healthcare failed the poor, innocent & hardworking people of Idukki. Both LDF & UDF deprived them of basic healthcare," he tweeted.

·  The Minister also said that Munnar, a renowned tourist destination in India and abroad, does not have proper road connectivity to its villages.

·  "Munnar, a renowned tourist destination in India & abroad, does not have proper road connectivity to its villages. It's shameful that a road bridge that collapsed during 2018 floods is yet to be connected. Road situation is so bad, that no emergency service can reach on time," he tweeted.

Source

 

Top

Cabinet to okay new Consumer charter to provide 24X7 power

·  The Government proposes to bring in regulations that will give rights to the consumer to seek 24X7 electricity supply in their homes and provide them compensation for any deviation from the stated goal.

·  Sources said that a consumer charter has been introduced in the new tariff policy that has been finalised by the Power Ministry that clearly mandates role and responsibility for power distribution companies and states the rights of consumers.

·  The new tariff policy with added consumer charter has been placed for approval of the Cabinet by the Power Ministry. Once approved, the subordinate legislation would be placed in Parliament before it becomes operational bringing under its ambit state discoms over performance of providing 24X7 power to consumers.

·  "The policy would become model electricity generation and supply in the country and give citizens the right to seek uninterrupted power supplies or get compensated," said a source in the power ministry.

·  The new charter would specify interruptions in power supplies due to load shedding. For every load shedding that is unscheduled or stretches beyond a cut off time, consumers would be compensated by the discoms. The compensation would be in the form of a credit that will be made into the consumers account with discoms so that this credit is used when paying the next electricity bill.

·  "In most regions, power is in surplus over the current demand. This provides ideal ground for providing 24X7 power households. If the regulation does not go into litigation and all states are on board over it, it would be a major reform that would change the way electricity is supplied in the country," said a power sector analyst asking not to be named.

·  Government is carrying forward two major reform in the power sector. One that will come through the tariff policy while the other through a new Electricity Act. The aim of both regulations is to create a competitive power market where suppliers, distributors and consumers -- all gain.

Source

 

Top

Dry shielding in place for Kudankulam plant 3 reactor vessel

·  The third 1,000 MW nuclear power plant coming up in Kudankulam in Tamil Nadu reached another milestone with the installation of reactor pressure vessel dry shielding, said Russia's integrated nuclear power company, Rosatom State Atomic Energy Corporation.

·  Rosatom said Indian contractor Larsen & Toubro, under technical support of Russian experts, completed the works on installation into position of the reactor pressure vessel dry shielding.

·  Dry shielding is a cylindrical shield in metal cladding filled with serpentine concrete and located around the reactor pressure vessel. This structure serves for the neutron flux attenuation, and facilitates prevention of overheating of the reinforced concrete reactor pit structure.

·  The equipment was manufactured at Tiazhmash JSC in Syzran town.

·  The cylindrical shield filled with serpentine concrete weighs 140 tons.

·  According to Rosatom works on dry shielding preparation for installation are completed in time as scheduled.

·  The Russian company said installation of the reactor pressure vessel dry shielding is an essential process operation in the construction of a nuclear power plant.

·  After its completion, the installation of the reactor support truss and other assembly operations were performed, which were followed by the installation of the reactor pressure vessel into position.

·  India's atomic power company, Nuclear Power Corporation of India Ltd (NPCIL) is building four more plants of 1,000 MW each in Kudankulam in Tirunelveli district - Units 3,4,5 and 6.

·  The first two units of similar power generation capacity has been functional for sometime now.

Source

 

 

 

National News Bulletin

Daily Newsletter 2020

We Help You Take Better Decisions Everyday !

Monday, August 10, 2020

For Latest Updates Follow Us On

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

What’s New

Acts and Regulations

§  RoP on Petition for truing up of transmission tariff of the 2014-19 period and determination of tariff of the 2019-24 period for the assets under Eastern Region Strengthening Scheme-VI in Eastern Region. Power Grid Corporation of India Limited

§  RoP on Petition for truing up of transmission tariff of the 2014-19 period and determination of tariff of the 2019-24 period for the assets under “Supplementary Transmission System associated with Vallur TPS” in Southern Region. Power Grid Corporation of India Ltd.

§  RoP on Petition for truing up of transmission tariff of the 2014-19 period and determination of tariff of the 2019-24 period for the assets covered under Transmission System for Connectivity for NCC Power Projects Ltd. in Southern Region. Power Grid Corporation of India Ltd.

§  RoP on Truing up of tariff of the 2014-19 tariff period and determination of tariff of the 2019-24 tariff period in respect of two assets (combined) under “Transmission System associated with Koldam Hydro-electric Project in the Northern Region” Power Grid Corporation of India Ltd. (PGCIL)

§  RoP on Petition for truing up of transmission tariff of 2014-19 period and determination of tariff of 2019-24 period of assets under Inter-connection between India and Bangladesh Electrical Grids for India portion in Eastern Region. Power Grid Corporation of India Limited

View More...

Performance of State Discom

New!

Power

Powering reforms: Transforming India’s power sector through GARUDA

Retiring old, inefficient coal-based power plants by bundling them with new, cheap renewable energy plants would bring multiple transformational benefits to the power sector, improve the PLF and efficiency of old thermal plants

Massive investment expected in India’s power transmission segment by FY25

Sabyasachi Majumdar, group head and senior vice-president (corporate ratings) of ICRA, said the Centre has lined up 14 transmission projects under the tariff-based competitive bidding (RBCB) route for evacuating power from 25-gigawatt RE projects.

§  Power production at NTPC’s Kahalgaon unit daips by 1420MW

§  India is Power Surplus, E-Mobility Solutions in Interest of the Country: Gadkari

§  Delhi's EV policy aims to electrify 50percent 2W fleet of delivery companies by March 2023

§  NTPC Group achieves 100 billion units power generation mark

§  Power discoms launch schemes for replacement of ACs in Delhi

§  Decoding Delhi EV Policy 2020

§  BEL sets up solar-powered classrooms in 122 Karnataka schools

§  Cutting power losses? Give report: Chandigarh administration

§  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

 

ISTS Charges Waive Off Period Extended In India, Again

Indian Power Ministry Extends ISTS Transmission Charges Waive Off Period For Solar & Wind Power Projects Commissioned Till June 30, 2023

Maharashtra: Renewable energy: State has achieved 44 per cent of 2022 target

As per the National Electricity Plan 2018, the state has set a clean energy target of 22 gigawatt (GW) to be achieved by 2022. According to the analysis, the renewable energy installed capacity in the state as of June 2020 is 9.7GW

§  Grasim Industries signs LLP agreement with Cleanmax to set up wind power plant in Karnataka

§  Indian 1.2GW solar sees ‘aggressive’ tariffs, Actis buys 400MW of assets

§  NTPC 1.2 GW ISTS solar auction sees aggressive tariff of INR 2.43/kWh

§  Tata Power's renewable InvIT may help cut debt by Rs 20,000 crore

§  Evacuation infrastructure for renewable energy projects to drive investments: ICRA

§  Solar cameras to track snow leopards near Army & ITBP camps in upper reaches of Himalayas

§  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

 

Assam well fire: Oil India objects to committee’s report in NGT

Oil India Ltd has objected before the National Green Tribunal to a preliminary report filed by a committee of experts on the fire incident in Assam’s Baghjan oil well saying it is based on desk research and review of secondary data.

Petrol, diesel prices may rise again from next week

Accordingly, petrol and diesel prices may begin their rising trend all over again much to the discomfort of fuel consumers that have faced constant increasing prices since June 7

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

[Poll Question]

§  India to save  Rs 35,758  crore on key fuel subsidies

§  Govt begins probe into Chinese shareholding in rig operations in India

§  Reliance's 15-year-plan to build into new energy company

§  Oil and Natural Gas Corporation cuts debt by 35 per cent to Rs 13,949 crore

§  Oil marketing companies hold fuel prices, diesel price same for 9th day

§  TSRTC staff to run fuel outlets, corpn eyes Rs 20 lakh/mnth

Oil & Gas Technical

New!

 

Contrary to Greek commitment, Turkey restarts offshore oil exploration

Turkey resumed oil and gas exploration in the Mediterranean Sea days after the government said it would delay offshore surveys to seek a diplomatic resolution with Greece.

OPEC+ pressures Iraq to take deeper cuts as non-compliance continues

Iraq made its strongest commitment yet to implement deep cuts in crude production after the country’s oil minister and his Saudi counterpart held a phone call Thursday.

§  Negative impacts of historically low drilling activity reverberate across the oil and gas industry

§  U.S. drilling rig count lowest since 1940 on falling shale exploration

§  Oil slips below $42 on rising U.S. – China tensions

Daily International Coal Prices

New!

Coal

Coal India e-auction fuel allocation rises 21.5percent in to 19.76 MT in June qtr

In the corresponding quarter a year ago, the fuel allocation by the PSU under all the four windows of e-auction was 16.26 MT

India’s Adani not interested in domestic coal mine auctions – CFO

Indian Prime Minister Narendra Modi in June opened up coal mining without end-use restrictions and provided financial incentives to attract investment in India, which has the world’s fourth largest coal reserves.

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

[Poll Question]

§  Jharia Master Plan: An ever-changing rehabilitation blueprint

§  Coal India revises production target for 2020-21 to 650-660 MT

§  Powering reforms: Transforming India’s power sector through GARUDA

§  Coking coal production picks up after lockdown slump

Roads

 

PNC Infratech inks agreements for HAM and EPC projects worth Rs 6,731.8 crore

The agreements have been signed with NHAI

Dilip Buildcon declared L-1 bidder for Dodaballapur bypass to Hoskote section

The tender was floated by NHAI

§  Labour shortage hits work, Kharar flyover deadline pushed to December

§  Madhya Pradesh: On Betul four-lane highway divider, lush crop of soybean

§  Trichy semi-ring road project deadline extended for 3rd time

§  'Network of highways in J&K, Ladakh to give impetus to region's growth'

§  IIT-Delhi to set up Centre of Excellence for advance data management system for highways

§  Construction Of Roads Under PMGSY In Full Swing In J-K's Baramulla

§  Illegal roads made by mining mafia in Palampur yet to be dismantled

§  Centre discusses border roads with states

§  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 Laning Of Repallewada To Telangana- Maharashtra Border (NH-363)

NHAI / Dilip Buildcon Limited

Maharashtra,Telangana

52.602

Four Laning Sahibganj-Manihari (NH-131A & NH-133B)

NHAI/ Dilip Buildcon Limited-HCC (JV)

Bihar

21.68

Four Laning Of Dhrol - Bhadra Patiya Section (NH-151 A)

NHAI / Dilip Buildcon Limited

Gujarat

50.45

Four Laning Cuddapah-Mydukur-Kurnool NH-18 (New NH-40) (Rayalaseema Expressway)

NHAI / KMC Construction and IVRCL

Andhra Pradesh

188.75

Four Laning Binjhabahal - Telebani (NH-6)

NHAI/Oriental structural Engineers Pvt Ltd

Odisha

77.60

Power(10 News Items)

Finance


Powering reforms: Transforming India’s power sector through GARUDA

·  One of the long-term impacts of the Covid-19 pandemic on the power sector is likely to be depressed energy demand. A recent study by TERI indicates this reduction maybe 5-10% over the next five years. India’s goal of installing 450GW of renewable energy looks to be a challenge anyway, but this will be an even bigger challenge if India has overcapacity due to lower-than-expected demand.

·  Enter GARUDA. This innovation proposes to retire old, inefficient coal plants by bundling them with new and cheaper renewable energy (RE) capacity. GARUDA does this by employing a “blended tariff”that amortises the cost of decommissioning over the term of the RE power purchase agreement, such that the financial burden on the distribution companies is almost negligible. The RE tariff would be discovered through competitive auction, as is the norm now.

·  We chose the name GARUDA as the objective is the renewal and transformation of the power sector, not its diminution.

·  Decommissioning thermal plants

·  India has a total coal fleet of 170+ plants across the country, amounting to 205,000MW. Several plants are old and inefficient—the oldest is 57 years old, and the lowest plant load factor is 21%. Of these, 58 plants amounting to 45,000 MW of coal plants are over 20 years of age, with an average plant load factor of 62%, and tariffs ranging between Rs 1.87- 7.03/kWh.

·  Research by CPI and ReConnect Energy suggests that there is a strong economic and environmental case for decommissioning many of these plants—up to 60% of plants amounting to 28,000MW. The criteria used to identify these plants are a combination of age, plant load factor, tariff, and suitability for the installation of flue gas desulphurisation units. This last is an important category mandated in 2015 by the ministry of environment, forests and climate change and the Supreme Court to mitigate the growing problem of air pollution in India, and has since suffered implementation deadlines slipping from 2017 to 2022, also unlikely to be met. Flue gas desulphurisation units oblige higher tariffs and also require land and water, so typically older plants cannot afford them.

·  Of the 48 plants identified for retirement, 26 plants, or more than half, are located in or near urban areas. State-owned gencos own most of these plants–discoms own 36 plants aggregating to 21,000 MW, and National Thermal Power Corporation (NTPC) owns eight plants aggregating to 5,000MW.

·  The GARUDA tariff would include the normal tariff for the new renewable energy plant plus the cost of decommissioning the old fossil fuel plant. The bidder would build such RE capacity to match the generation of the retiring thermal plant. Ideally, the bidder would be a combination of a RE independent power producer and a specialised decommissioning contractor. The learnings from the Rewa solar IPP would be a helpful starting point for designing the risk allocation among the parties.

·  Our analysis estimates that impact of decommissioning 500 MW of coal capacity with equivalent hybrid renewable capacity ranges between Rs 0.03-0.05 per kWh. It is assumed that the decommissioning cost, net of scrap value, ranges between Rs 70-105 crore per 500 MW.

·  Adding renewable capacity

·  Critics of retiring existing coal-based capacity say this will create challenges for system reliability and resource adequacy. This is one of the reasons plants are often retrofitted and used by state utilities beyond the end of their life. Renewable energy offers infirm power adding costs for grid balancing. However, two reliable alternatives are emerging—one, hybrid renewable systems that include solar and wind together, as they collectively complement each other in terms of generation hours during the day; and, two, battery energy storage systems, as costs are declining fast and new business models are being invented. With these advances, a competitive price point can be discovered through the auction for round-the-clock renewable energy supply, providing a technically feasible way to replace coal.

·  Financing

·  Discoms do not have the resources to take up this scheme in its entirety in the short-term. We envisage GARUDA to move beyond business-as-usual, whereby some 3-5GW of thermal capacity is decommissioned each year. An accelerated program, with pre-arranged financing, could help the speed and scale up existing decommissioning trends.

·  The entire GARUDA program would entail an investment of approximately $41 bn. For each 5GW tranche of coal capacity, of the total 28GW program to be offset by two times the RE capacity (10GW), the bidder, would need approximately $218mn of equity. This capital would be mobilised with the assurance of debt financing to the extent of $510mn.

·  This debt would be pre-arranged as a green bond, or, an emerging financing class—a transition bond, in tranches to grow with the scale-up of the programme. The bond could be backed by development banks and oblige the GOI’s sponsorship/guarantee, and its subscribers could be large scale pension funds with green windows. This “GARUDA bond” would be structured as regular debt, serviced by the earnings from the RE PPA, with an upside that could come from the carbon credits earned from the renewables being injected into the grid.

·  Benefits

·  GARUDA is a win-win for India’s goals, achieving both financial and social benefits.

·  Financially, GARUDA would save discoms Rs 9,820 crore ($1.3 bn) per year from lower tariffs, even as it results in a younger fleet with better plant utilisation. It also gives a boost to India’s RE sector, which has been slowing down with discom issues. GARUDA would add ~60,000 MW of new RE capacity. Adding significant renewable energy, in turn, would give a strong push to local manufacturing and EPC companies under the “Atmanirbhar Bharat” initiative. Replacing coal-based plants with renewable energy will also have a significant impact on reducing the RPO costs for discoms. And finally, the programme would release land for other uses. The programme identifies 26 urban plants, opening up over 13,000 acres of valuable land, which can create liquidity gains for the state and an increase in income generation of 4x-20x depending on the choice of commercial activity.

·  The programme would save India 113mn tonnes of GHG emissions annually. Assuming a carbon price of $5/ton, every 500MW of coal retired would produce an estimated $10mn in annual revenue to the investor—nearly equal to the decommissioning costs.

·  The thermal power sector makes a significant contribution to air pollution in India, for example generating 45% of SOX emissions, most harmful to human health in-country and also among the worst offenders for global warming. Further, as water shortages increase across India, thermal plants are routinely being shut down for lack of water. Implementing the GARUDA project for these older thermal power plants, many of which lack cooling towers which re-use water, would reduce the grossly inefficient use of water in these plants.

·  Implementing GARUDA would bring multiple transformational benefits to the power sector, improve the PLF and efficiency of old thermal plants, and move India forward in its implementation of renewable energy targets—all without burdening discoms. All this, while addressing critical environmental concerns arising from climate change, air pollution, and water scarcity.

Source

 

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General


Massive investment expected in India’s power transmission segment by FY25

·  The domestic power transmission segment is expected to attract investments worth Rs 1.8 lakh crore in the next five years, according to a report by rating agency ICRA. It said evacuation infrastructure for renewable energy (RE) projects will drive investments in the power transmission segment.

·  “ICRA expects an investment of Rs 1.8 trillion (Rs 1.8 lakh crore) over the five-year period from FY21 (financial year 2020-21) to FY25 in the power transmission segment at an all-India level, driven by evacuation infrastructure for RE projects,” the rating agency said on Friday in the report.

·  It added that in line with a shift in policy focus from conventional sources (coal and gas) to renewable power sources (wind and solar), the focus of the transmission segment is towards augmenting infrastructure for evacuation of power generated by RE projects.

·  Sabyasachi Majumdar, group head and senior vice-president (corporate ratings) of ICRA, said the Centre has lined up 14 transmission projects under the tariff-based competitive bidding (RBCB) route for evacuating power from 25-gigawatt RE projects.

·  The government has also lined up another six projects in the intra-state segment, providing healthy pipeline for private sector players, he added. There is likely to be a slowdown in electricity demand and investments in the sector in 2020-21 amid the COVID-19-induced disruption but recovery is expected from 2021-22 onwards, he said.

·  ICRA said the private sector’s share is expected to witness a healthy growth over the next four-five years, while Power Grid Corporation of India Ltd (PGCIL) and other state transmission utilities are likely to remain major players in the power transmission segment.

·  On the issues in the segment, the agency said, “The key challenge for the winning bidders under the TBCB route has been delays in execution, mainly because of delays in securing right of way, forest clearances and re-routing requirements in some cases.”

·  It added that this, in turn, results in cost overruns, thereby putting pressure on the return and debt coverage metrics for the developers. “The median delay for projects awarded under the TBCB route has been about 8.5 months.”

·  Girishkumar Kadam, sector head and vice-president (corporate ratings) of ICRA, said the lockdown restrictions during the first quarter of the current fiscal and consequent constraints in terms of labour availability are likely to result into delays by 3-5 months for under-implementation transmission projects. He added that it will lead to cost overrun for such projects.

·  As a result, availability of relief under force majeure clause from the appropriate regulatory commission would be important for such projects, he said. The lockdown induced by the COVID-19 pandemic since March 2020 led to an adverse impact on the finances of distribution utilities, leading to delays in payments to power generation and transmission companies, he added.

Source

 

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Power production at NTPC’s Kahalgaon unit daips by 1420MW

·  Power production at the National Thermal Power Corporation (NTPC)’s Kahalgaon Super Thermal Power Station (KhSTPS) has plunged by 1420 MW due to temporary shut down of four production units following breach in embankments of fly ash dyke and collapse of deep intake wells on Thursday afternoon.

·  The KhSTPS has initiated the restoration work of the breached embankments and deep intake wells to resume power production on war footing. A technical committee has also been set up on Friday to probe the reasons of the mishap besides overseeing the restoration work.

·  Executive director Chandan Chakraborty told this newspaper that a team of NTPC experts from New Delhi will reach Kahalgaon by Friday evening and look into the issue. “We are working on war-footing to restore the breached portion,” he said.

·  KhSTPS has seven power production units with four units having a capacity of of 210 MW each and three units each of 500MW, which generates 2,340MW of electricity. NTPC officials said Bihar is one of the major beneficiaries of power generation by the KhSTPS. Another KhSTPS official wishing anonymity said that there was a small breach in the embankment of intake well number-2 at ash dyke lagoon- II. “Out of total seven production units, two units of 500 MW each and two units of 210 each have been shut temporarily as a precautionary measure,” he said.He added: “There is no spillage of ash water outside the lagoon overflow area and there is no loss of life or damage to property. Even the agricultural areas in the near vicinity are safe.”

Source

 

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India is Power Surplus, E-Mobility Solutions in Interest of the Country: Gadkari

·  Union Minister for Road Transport and Highways, Minister of Shipping, and the Minister of Micro, Small and Medium Enterprises, Nitin Gadkari believes India is power surplus so the benefits of e-mobility solutions are very much in the interest of the country. Speaking at the India e-mobility Conclave 2020 (IMC 2020) organised by the India Energy Storage Alliance (IESA). The minister said that there is a strong need to develop import-substituting, cost-effective, indigenous, and pollution-free sustainable transportation systems in the country, and one of the most important solution is public transport on electricity.

·  The India e-Mobility Conclave 2020 (IMC 2020) conference provided a unique platform to interact, network and learn about market landscape, government policies, new products, EV and charging infrastructure deployments including fast charging and swapping technologies.

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Delhi's EV policy aims to electrify 50percent 2W fleet of delivery companies by March 2023

·  The Delhi government's new electric vehicle policy envisages incentives to cut to 50 per cent by March 2023 fleet of petrol-powered two-wheelers used by delivery service providers in the city. Chief Minister Arvind Kejriwal, who launched the Delhi Electric Vehicle Policy on Friday, sought the cooperation of all stakeholders in implementing it.

·  "I am glad Delhi's EV policy has been well received by all stakeholders. It was prepared after wide-ranging consultations spanning over a period of more than 2 years. Now, I seek everyone's cooperation in successfully implementing it," he tweeted on Saturday.

·  It is expected that the incentives will encourage delivery service providers like those engaged in food delivery, e-commerce logistics and courier services to switch to using electric two-wheelers, the EV policy stated.

·  "To ensure the switch happens in a time-bound manner, all delivery service providers shall be expected to convert 50 per cent of their fleet operating in Delhi to electric by March 31, 2023, and 100 per cent by March 31, 2025," it said.

·  The delivery service providers who commit to achieving these targets will be eligible for financial support from the Delhi Finance Corporation (DFC), according to the policy for the two-wheeler segment.

·  Two-thirds of new vehicle registrations in Delhi comprise two-wheelers, with the most popular segments being motorcycles between 110-125 cc and scooters between 90-125 cc.