Essar Power's over Rs 11,000 cr investment awaits mining approvals...

 

Within a month after the Comptroller & Auditor general (CAG) tabled the coal block allocation report in Parliament in August last year, the Central Bureau of Investigation filed a first information report (FIR) against Hyderabad-based Navabharat Power Private Limited for the coal block allotted to it in Odisha in January 2008. And this dragged billionaire Ruia brothers promoted Essar Power into the controversy as it had acquired  Navabharat for Rs 230 crore in two tranches in July 2010 and April 2011.

Navabharat Power is a 1,050 MW coal-fuelled power plant being set up in Dhenkanal district in Orissa. The project includes the allocation of 17.39% share of the Rampia coal block that has 112 million metric tonnes of reserves.
 
The CBI in its FIR has alleged that Nav Bharat misrepresented the facts to get the coal block and later made about Rs 200 crore profit by selling it to Essar Power. The CBI questioned promoters and directors of Navabharat, Y Harish Chandra Prasad and P Trivikarma Prasad. It also quizzed Essar Group director Vikash Saraf in this context.
 
The CBI alleged that Navabharat would not have had the requisite net worth for the proposed plant for which the block was allotted to it. Essar Group denied allegations of making Nav Bharat its front for getting the coal blocks allotted. Even the CBI in its FIR has not named Essar as an accused.
 
Following the acquisition, Essar Power has invested more than Rs 500 crore in developing the project and has also achieved financial closure. But no debt has been drawn so far. 
 
Currently the project is awaiting revalidation of various regulatory clearances including environment clearance, water approval, etc. Implementation of the project is linked to mining and regulatory approval revalidation, which is pending for a long time.
 
Apart from Navabharat, Essar Power has been under the scanner of CAG for the blocks allotted to it for Mahan and Tori projects. Essar Power M.P is setting up 1200 MW power plant at Singrauli in Madhya Pradesh (MP).  The first unit of 600MW of Mahan (I) power project in MP was commissioned in Dec 2012. The second unit of 600 MW is at an advanced stage of progress and it will be completed in 2014. The plant is suffering due to lack of mining approval for Mahan Coal Block, which is the captive mine for Mahan Power station.
 
“The delay in mining approvals has resulted in delay in disbursement of project funding and resultant cost overruns which are putting a severe strain on the company’s balance sheet,” said a company spokesperson giving status of the project.
 
Essar Power (M.P) is continuing to make good progress towards Stage 2 forest clearance for the block.  Essar Power (M.P) has also applied for an allocation of coal under Coal India’s tapering coal linkage system in order to provide Mahan with sufficient coal to cover the period until the coal mine gets forest clearance stage 2 and mine is operational. Currently the plant is being operated utilizing coal from the e-auction market in India.
 
The Mahan project had achieved financial closure and significant part of the debt for Mahan has already been drawn by Essar Power M.P Ltd. Till date Rs 7,000 crs has been invested in Mahan by Essar Power M.P including debt and equity.
 
Similarly, Essar Power Jharkhand is setting up 1,800 MW power plant at Latehar in Jharkhand.  The project is called Tori project. Over the past few years land acquisition has progressed, equipment ordered and construction and erection commenced with over Rs 3,500 crore invested towards these activities. However progress has been slow and completion has been delayed with 2 coal mines allocated for these projects –Chakla & Ashok Karkatta   still awaiting regulatory approvals like environment clearances and forest clearances.
 
The Tori project had achieved financial closure and some of the debt for Tori has already been drawn by Essar Power Jharkhand.  Till date over Rs 3,500 crs invested in Tori including debt and equity. This takes Essar Power’s over Rs 11,000 crore investment await regulatory approvals for mining to get the due returns on investment.

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Increased buying from discoms improve sale of RECs...

 

After months of tepid trading, sale of 'Renewable Energy Certificates' (RECs) at the power trading body India Energy Exchange (IEX) witnessed a rise in the current trading session.

The trading session at IEX featured trade of 98,921 non-solar and 6,548 solar RECs with supply far exceeding demand. However, the trading session saw the buy volume increasing by almost 140% over the previous month largely due to increased buying by the power distribution companies.

In the non-solar segment, buy bids of 98,921 RECs and sell bids of 24, 47,684 RECs were received against which 98,921 were cleared at Rs 1,500 per REC.

In the solar segment, buy bids of 6,548 RECs and sell bids of 48,515 RECs were received against which 6,548 RECs were cleared at Rs 9,300 per REC.

Due to dearth of buyers, RECs market crashed recently with both solar and non-solar certificate price stooping to their floor price. There are currently 27 lakh REC lying unsold.

Calculations by IEX and ministry of new and renewable energy show that at the current level of renewable purchase obligation (RPO), the cumulative requirement for all states would be 1.14 crore non-solar RECs and 16 lakh solar RECs in 2012-13. For 2013-14, the requirement would go up to 1.67 crore non-solar and 21 lakh solar RECs.

Pre defined solar RPO target for all states, as mentioned in 'National Tariff Policy' currently ranges from 0.25% to 1.90% of their requirement. Non-solar obligation is in a larger band of 2.5% to 10%. Solar power rich states like Gujarat and Rajasthan are the only ones to achieve their solar-RPO targets.

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CERC to hear Adani Power compensatory tariff issue on Nov 13...

 

Electricity regulator CERC on November 13 will hear Adani Power's plea seeking increase in tariff from its thermal power plant in Gujarat due to rise in price of coal from Indonesia.

Adani PowerBSE 1.08 % had petitioned Central Electricity Regulatory Commission for evolving a mechanism to meet the escalation in fuel cost due to enactment of new coal pricing regulation by Indonesian government.

Adani Power is executing a coal-based thermal power project at Mundra in Gujarat based on domestic coal. Due to shortfall in production of coal by state-run Coal India, the company had tied up supplies with Indonesia.

CERC, in April, had said that Adani Power should be granted compensation package for its Mundra project which would provide a cushion against the escalation in cost of imported coal for the plant.

The compensation in the form of compensatory tariff will be decided by a committee headed by HDFC Chairman Deepak Parekh, the regulator had said in its order.

The committee, in its report submitted to CERC, is believed to have suggested a hike of about 50 paise per unit for the Adani Power's plant in Mundra.

The regulator will decide on the compensatory tariff after hearing the petitioner (Adani Power) and the power procuring states, including lead procurer Haryana. before allowing for escalation in tariff.

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Suzlon's internation arm REPower renamed as Senvion...

 

Suzlon Energy has renamed its German subsidiary REpower Systems as Senvion with effect from 2014, the wind turbine maker said Thursday.

REpower has been using its name under licence since 2001. The rights belong to a Swiss company that is now using this name itself. Therefore the external corporate design will be gradually changed, the company said in a press release.

"In addition to having unique products and services, we will also be the only company with this name. As Senvion we will continue along our path as a strong brand and remain an innovative company in the wind energy industry," Andreas Nauen, chief executive officer of REpower Systems SE, was quoted as saying in the release.

The Tulsi Tanti-promoted wind turbine maker, which has been severely hit by the double whammy of huge debt and slowdown in business, piled up Rs 14,000 crore in debt and has reported losses for the past three years. The company recently received approval to recast debt totalling Rs 9,500 crore under the Corporate Debt Restructuring programme that gives the company a two-year moratorium on principal and interest payments and additional working capital limit that would improve the company's cash position and drive execution.

Suzlon has identified non-critical arms like SE Forge, SE Electricals and its China manufacturing units to for stake sale or complete sell-out. Although some of its bankers are believed to have demanded a stake sale in its German Subsidiary, REpower Systems, the company has repeatedly denied any plan citing it is a 'jewel in the crown' and critical for company's growth.

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New Generation Power’s Consortium to be Awarded 315 Megawatt Power Purchase Agreement in India...

 

New Generation Power, a Chicago based renewable energy company, along with Premier Solar Group, a Hyderabad based solar company has signed one of the largest Power Purchase Agreements (PPA) in India by a consortium. Under the Andhra Pradesh Solar Scheme, the open bid process will now be part of a 1,000 megawatt (MW) development plan that will be built out in the region.

Expected to cost roughly US$400 million over a period of 12 months, installations will spread across multiple sites in the State of Andhra Pradesh with PPA’s for 20 years. NGP’s valuable consortium will build, own and operate all of the plants.

The initial phase for the 70 MW PPA has been executed and development work has already begun. By the end of 2014, the entire 315 MW of solar projects will be completed. WAAREE Energies Limited has been awarded the exclusive EPC contract for 245 MW and Premier Solar/WAREE will be the joint EPC contractor for the initial 70 MW.

Long term financing for the project is being negotiated with various EXIM and other financial institutions.

WAAREE Group, a Mumbai based leading multi-technology company, along with Patriot Solar Group (PSG), will be setting up a joint-manufacturing facility in Gujarat, India that will be fully capable of supplying all product solutions and opportunities by the project’s completion.

“We are very happy with a partnership that will bring more green, sustainable energy to the world. WAAREE will bring its manufacturing and project execution skills to execute this project,” said Hitesh Doshi, Chairman of WAAREE Group.
“Patriot Solar Group is truly delighted to be a part of this world class team. Together with WAAREE Group, the production facilities for our full line of tracking, mounting and mobile fixed off-grid solar systems are already being developed,” said Patriot Solar’s President, Jeff Mathie.

“Premier Solar is proud to have won this large contract and partner with New Generation Power, on the largest solar development project in India. Premier will bring its project development and execution skills to get the project off the ground and ensure timely completion”, said Mr. Karthik Polsani, CEO of Premier Solar group. Premier’s co-development partners on this venture are RRE Power and Inspirra Energy, both US-based development firms.

"New Generation Power will build a world class solar facility that India will be proud to call its own that will create significant job opportunities and economic development for Andhra Pradesh. It’s an honor to be part of one of the largest solar farms globally in my native country," said Dr. Chirinjeev Kathuria, the Chairman of New Generation Power. NGP’s additional partner in this venture is Thermo Source.

NGP is currently developing grid scale projects in Africa, Europe, South America and the Caribbean.

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Vikram Solar tops Gujarat solar plants performance ranking...

 

Vikram Solar, a leading global manufacturer of solar photovoltaic(PV) modules and EPC contractor, has been championing the use of efficient and sustainable solar energy. Its efforts are setting new standards in the industry as an independent research has confirmed.

“Sunrise in Gujarat” report by RESolve Energy Consultants, Chennai, has established that the 5 megawatt solar power plant set up by Konark Gujarat PV Pvt. Ltd. whose modules were manufactured and supplied by Vikram Solar, ranks first amongst 50 solar power plants set up in Gujarat over the last year. Significantly, the EPC contract was for this project, set up at village Shivalakh in Kutch district of Gujarat, was also given to Vikram Solar along with operations and maintenance of the facility.

A total of 50 plants aggregating 665.64 MW have been ranked based on their annual yield (MWh/MW) in this research report. All the plants have been operational for at least 1 year. Of these 50 plants, 15 plants are located in Charanka Solar Park (totaling 210 MW) and 35 plants outside Charanka. The generation data available from the Gujarat State Load Dispatch Centre (SLDC) has been used. Ranking of the power plants has been done on the basis of the Plant Load Factor (PLF) or Capacity Uti¬lization Factor (CUF). PLF or CUF is calculated as the ratio of actual energy generated (for a given period of time) to the maximum (theoretical) possible generation of a power system.

The 5-megawatt Konark Gujarat solar plant set up by Vikram Solar generated 9361 MWh of solar power during the year giving a per megawatt output of 1872 MWh and CUF of 21.3%. The plant was set up using crystalline silicon modules manufactured by Vikram Solar and the design uses fixed tilt of the modules structure. The solar power is sold to the Gujarat Energy Development Agency (GEDA) under a 25-year power purchase agreement (PPA).

Gyanesh Chaudhary, Managing Director, Vikram Solar commented, “The recognition is a testament to our experience in typical and complex installations to engineer, procure and construct solar power plants. Vikram Solar is committed to generating efficient power through innovation that is sustainable and also to building trust among stakeholders by being honest and socially responsible in everything we do.”

The RESolve report stated: “In addition to the quality of the solar modules, the plant’s efficiency as reflected in its CUF will depend on some more factors like build quality, Balance of Systems used(cables, structures, etc) and design optimization. One inference that could be drawn is that a developer should pay equal attention to the selection of the Balance of system components, ensure design optimisation and select the right EPC contractors who can ensure build quality and high plant uptimes. Another aspect that could have an impact on the plant CUFs is the Operation and Maintenance (O&M) of the plants. A plant that has a very good performance monitoring system (remote monitoring or local SCADA) and is well maintained will obviously lead to higher generation.”

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Southern Railway plans to set up windmills in Nellai district...

 

The Southern Railway is toying with the idea of setting up windmills in the district in a bid to draw on alternative energy to trim its annual electricity bill.

General Manager, Southern Railway, Rakesh Mishra told reporters on Tuesday that a comprehensive project report on installing windmills was under preparation.

Mr. Mishra, accompanied by Railway Divisional Manager, Madurai, A.K.Rastogi, was inspecting the facilities at the Tirunelveli Railway Junction.

Mr.Mishra cited the case of the Integrated Coach Factory which decided to go in for the non-conventional energy programme in 2007 and installed seven windmills at a cost of over Rs.66 crore. The units, set up at Kasthurirengapuram and Urumankulam in the district, offset ICF’s total annual power requirement of 25 million units by generating 25.90 million units. They also earned Rs.2.50 crore as carbon credits.

“It is a highly useful project that saves a lot of money for the ICF now. The power to be generated by the windmill, by offsetting our power requirement, will give the investment cost back to us within 10 years. Hence, the Southern Railway is mulling (the idea of) installing its own windmills in the district,” Mr. Mishra said.

Wind turbine generators are likely to come up along the Aralvaimozhi-Muppandal-Radhapuram belt.

Mr.Misra said further that the railway track electrification up to Kanyakumari would be ready for commissioning either in April or May next year, while the Rs.300-crore gauge conversion project between Shencottai and Punalur would take at least five years for completion owing to paucity of funds.

“This is, in fact, my dream project that will pass through the scenic areas of the Western Ghats. Even the people of Kerala expect the early completion of this project, but paucity of funds may extend the execution period up to five years,” Mr.Misra noted.

The Tirunelveli Junction would get two escalators shortly, Mr.Mishra added.

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PFC to raise Rs.1.5 Billion through bonds

 

 

India's Power Finance Corp invited bids on Wednesday to raise at least 1.5 billion rupees ($24.43 million) through an issue of subordinate tier II bonds, a termsheet showed.

The firm has sought bids for coupon rates for its proposed 12-year bonds, as per the document.

The issue is scheduled to open and close on Nov.7. ($1 = 61.3900 Indian rupees)

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Load shedding resumes in Coimbatore as winds drop...

 

The city witnessed two hour load shedding on Tuesday as wind energy generation dropped.

Officials of the Tamil Nadu Generation and Distribution Corporation told on Tuesday that two hour load shedding was implemented in rotation across the city from 7:40am. Usually, hydro generation picked up in the evening hours and wind energy generation was also better in the afternoon.

The normal windy months in the State were from May to October.

The wind season started early this year — by mid-April — and lasted till the end of November. And, wind energy generation was unpredictable now. Though it was festival season, demand for power had not increased much in the city. It was nearly six million units a day on weekdays and remains almost the same now.

However, since there were no rains for the last one week, the agricultural demand could have increased slightly, the officials added.

According to data available on the website of the Tamil Nadu Transmission Corporation, the State witnessed 956 MW load shedding on Tuesday morning. Wind energy generation on Tuesday morning was just 49 MW as against 500 MW on Monday morning and 991 MW last Tuesday.

Unscheduled load shedding now would not affect the industries here much as workers have started going home for Deepavali. R. Ramachandran, president of Coimbatore District Small Industries’ Association, said that industries would resume full-scale operation only after a couple of weeks as workers from other States and districts would return to work only after a week or so.

The Government was already buying power and it should increase the purchase to meet the demand. The industries would be able to manage two to three hours of scheduled load shedding a day.

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Industry miffed as Maharashtra Electricity Regulatory Commission allows higher cross subsidy charge...

 

In what may be a gain for farmers, but a loss for the manufacturing sector, Maharashtra Electricity Regulatory Commission (MERC) has approved a hike in cross subsidy surcharge (CSS) from Rs 1.18-1.60 per unit to Rs 2.30-2.75 a unit respectively.

This has left the industries miffed. CSS is a charge levied from the industry when it buys power from open market rather than the state-owned utility MSEDCL.

It is levied to make good the losses on account of cheap power for agricultural and other consumers. For this reason, MSEDCL charges industry a higher rate but if the industries buy power from sources other than MSEDCL, government does not get the money for funding subsidy. CSS is charged on purchases from open market to bridge the gap.

Vidarbha Industries Association (VIA) has been lobbying hard to do away with the CSS. However, the deputy chief minister Ajit Pawar, who also heads the power ministry, has flatly refused on the grounds that funds were needed for subsiding the farmers and poor consumers. MERC decision to hike the CSS has left the industries disappointed. VIA said that it would appeal the order.

R B Goenka, who represents VIA in MERC, said the order would kill competitiveness of private power players operating in open market. After adding the increased CSS, power from open market becomes almost equal to MSEDCL.

"MSEDCL charges Rs 7.50 per unit on average. With higher CSS, power from open market would be costlier at Rs 7.65 a unit. If the load factor incentive is claimed by a consumer, MSEDCL tariff can be further reduced to around Rs 6.75 a unit," said Goenka.

Goenka claims high power tariff had hit industrial production in state. He is relying on year-on-year change in consumption by high tension users. "The consumption has come down by 2% this year," he said. HT users include commercial establishments, townships as well as industries. According to Goenka's estimates it was likely that the industrial consumption may have gone down by 5% but consumption by commercial establishments and townships increased leading to a net fall of 2%.

 

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Power Grid to invest Rs 2,820 crore in four projects...

 

State-owned Power Grid Corp today said its board has investments worth Rs 2,820.04 crore for four projects.

The power transmission major would invest Rs 1,364.52 crore in "Eastern Region Strengthening Scheme-V" project, with commissioning expected in 30 months, according to a regulatory filing.

Besides, the company would pump in Rs 1,315.90 crore in "Inter-Regional System Strengthening Scheme in WR and NR (Part A)" project, which is anticipated to be completed in 36 months.

As per the filing, Power Grid would shell out Rs 76.30 crore for procurement of telecom equipment, operation support system and other telecom network requirements among others.

This project is estimated to be ready in one year from the date of award.

Further, the company would be developing a "Transmission System for Solapur STPP (2x660 MW) at an estimated cost of Rs 63.32 crore with a commissioning schedule of 24 months from the date of investment".

These investment proposals were approved by the company's board during their meeting held on October 23.

Shares of the firm closed flat at Rs 100.60 on the BSE.

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Jindal Steel & Power Q2 net profit at Rs 4520.70 mn...

 

 

Jindal Steel & Power Ltd has posted a net profit after taxes, Minority Interest and Share of Profit / (loss) of Associates of Rs. 4520.70 mn for the quarter ended September 30, 2013 as compared to Rs. 8972.80 mn for the quarter ended September 30, 2012.

Total Income has increased from Rs. 47338.10 million for the quarter ended September 30, 2012 to Rs. 49687.10 mn for the quarter ended September 30, 2013.

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Ushdev International cons net profit jumps 112%...

 

Ushdev International Ltd (UIL), a leading corporate house engaged in the Trading of Metals and Generation of Power, has reported its Financial Performance for the second quarter and half year ended September 30, 2013.
 
Consolidated Total Sales for the quarter ended September 30, 2013 stood at Rs 2,796 crores, registering a jump of 47%, as compared to Rs 1,906 crores in the in the corresponding period previous year.
 
Consolidated Net Profit for Q2FY14 stood at Rs 44 crores, up by 112% as compared to Rs 20 crore in the corresponding period previous year.
 
For the half year ended September 30, 2013, the Company’s Consolidated Total Sales stood at Rs 4,841 crores, up by 38%, as compared to Rs 3,511 crores in the corresponding period previous year. Consolidated Net Profit for H1FY14 stood at Rs 74 crores, a rise of 65% as compared to Rs 45 crores in the corresponding period last year.
 
On the Standalone basis, Net Profit for Q2FY14 stood at Rs 16 crores, up by 15% as compared to Rs 14 crores in the corresponding period previous year.
 
The Board of Directors of the Company at its meeting held on October 29, 2013 has approved and taken on record the financial results of the Company for the quarter and half year ended September 30, 2013.
 
Commenting on the second quarter performance, Mr. Prateek Gupta, Vice-Chairman, Ushdev International Ltd, said, “The group has been consciously exploring new opportunities for business both in terms of product and geography. Quarterly performance is result of those efforts. ”
Earnings per share (EPS) for the H1FY14 stood at Rs 21.85.

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Ramky Acquires Sembcorp's Stake In Indian JV...

 

Sembcorp Environment, subsidiary of Sembcorp Industries, is divesting its entire stake of 51% in Sembcorp Enviro (India) to partner Ramky International (Singapore) for $7.25 Mn, Straitstimes states. The move is line to streamline its businesses and sharpen its strategy for the Indian market.

Sembcorp Enviro (India) is a special purpose vehicle that owns a 51 per cent stake in SembRamky Environmental Management, a medical waste collection and treatment player in India.

The Singapore major SembCorp Industries had acquired a 51% stake in Medicare Incin Pvt Ltd, a wholly-owned subsidiary of the Ramky Group, Hyderabad, to enter the medical waste disposal business in India.

The JV company was called SembEnviroRamky, which suited Sembcorp’s expansion strategy in India as well as helping in internationalising its business at that time.

Ramky Enviro Engineers Ltd acquired the commercial cleaning, conservancy services, and car park management units from Sembcorp Environment Pte. Ltd in Singapore through its fully-owned subsidiary Ramky Cleantech Services Pte Ltd., in 2009.

Ramky is headquartered in Hyderabad with regional offices located at Delhi, Mumbai, Ahmedabad, Bangalore, Chennai, Bhopal and Kolkatta and over 50 project offices. It provides services in the areas of civil, environmental and waste management infrastructure.

Sembcorp is a provider of essential energy and water solutions to customers in Singapore, China, Vietnam, the United Kingdom, the UAE and Oman. The Group has total assets of over S$13 billion and employs over 9,000 employees.

Sembcorp Environment also has stakes in Singapore based SembWaste (100%), Sembcorp Tay Paper Recycling (60%) and Australia based SembSITA Australia (40%).

Recently , A unit of Sembcorp Industries, backed by investor Temasek, was planning to acquire a majority stake in NCC Power Project for R1500 Cr; In November 2009, Sembcorp through its wholly owned subsidiary Sembawang Shipyard had formed a JV with Kakinada Seaports Ltd to establish and operate a marine and offshore facility.; In 2006, the firm had sold Sembawang Engineers and Constructors Pte Ltd to Punj Lloyd Pte Ltd, an arm of Indian infrastructure firm Punj Lloyd in two tranches for a total of $25.33 million.

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Pan Global Corp to buy 5.7 MW hydro plant in Uttarakhand for $6.6M...

 

Pan Global Corp, a firm listed on the OTC exchange in the US, has entered into a stock purchase agreement with Regency Yamuna Energy Ltd (RYEL) to buy the outstanding shares and convertible debt of RYEL which is commissioning a 5.7 MW small-hydro project in northern India.

The acquisition, to be completed in multiple tranches, will involve a total investment of around Rs 41 crore ($6.6 million).

As part of the deal, Pan Asia Infratech, an arm of Pan Global Corp, has entered into an agreement with RYEL, Arun Sharma, a director and majority stockholder of RYEL and the remaining stockholders of RYEL on October 28, 2013 to buy their shares.

This acquisition aims to fund the completion of RYEL's hydro project in Badyar in Uttarakhand, having a valuation of Rs 67.11 crore.

It will also enable RYEL to restructure its outstanding secured bank credit facility worth Rs 28.36 crore with the State Bank of Patiala.

In the first round of closing of the transaction scheduled by this weekend, Pan Global will buy 2,758,621 shares for Rs 4 crore (approximately $655,738), constituting approximately 13.4 per cent of RYEL.

In the second closing, expected within two weeks after the project starts generating power, Pan Asia will purchase 8,127,094 shares from the existing shareholders representing a 38 per cent stake of the firm for Rs 11.8 crore.

Within four months of the second close it would purchase the balance shares and pick certain liabilities of RYEL and the promoters of the firm for Rs 24.75 crore.

Pan Asia has also purchased a debenture from RYEL for Rs 42 lakh (approximately $68,852), bearing interest at the rate of 15 per cent per year, maturing on October 18, 2014 and convertible into shares of RYEL at the rate of Rs 14.50 per share. This would take total investment to around Rs 41 crore.

Ninety-five per cent of RYEL’s small hydro power project is estimated to be completed and commercial operation is expected to start during the current quarter.

Small hydro power generation facilities are a fast-growing component of India’s electricity generation sector. These projects typically comprise hydropower plants less than 25 MW and are different from traditional large-scale hydropower because they have a significantly reduced environmental impact. Small- and mini-hydro facilities are typically ‘run-of-the-river’ power plants, which do not dam the water channel, thereby retaining a light environmental footprint on the channel hydrology and the surrounding terrain.

Pan Global, which was till recently a shell company incorporated in the US, is focused on developing and supporting renewable energy projects besides other cleantech ventures. The firm is backed by investment firm Brookstone Partners, as per a SEC disclosure.

Early this month it also entered into a 10-year lease agreement for a five-acre parcel of land in Punjab for establishing hydroponic greenhouse growing operation. Hydroponic systems can use as much as 90 per cent less water than conventional methods while increasing crop yields on a more regular production schedule.

Pan Global is led by Bharat Vasandani, who began his career at an Indian plastic manufacturing company Jyotika Industries. He later joined D’Essence Consulting based in Mumbai where he was part of a team that assisted private and public companies on business strategy and turnarounds. He later moved on to a similar role with TresVista Financial Services in Mumbai.

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Selling power via long-term pacts augurs well for JSW Energy...

 

Lower power offtake by state distribution companies and depreciation of the rupee led to a 36% year-on-year fall in profit for JSW Energy in the September quarter.

The company on Monday reported a net profit of Rs 162 crore for the quarter. A healthy monsoon resulted in weak demand for power during the quarter. As a result, JSW Energy's plant load factor (PLF), or capacity utilisation , for the quarter dropped to 69.3% from 82% in the year-ago period.

In addition, the depreciation in rupee led to high fuel costs for the company. However, correction in international coal prices partially offset the foreign exchange loss. Overall, the company reported an exceptional loss of Rs 168 crore in the quarter to September because of depreciation in the rupee.

A positive for the investors is that the foreign exchange losses are unlikely to continue in future. During the quarter, the company completely hedged its foreign exchange exposure. While this may lead to higher operating costs, it would reduce earnings volatility in the coming quarters. Over the past few quarters, the company has been shifting its revenue mix towards long-term contracts.

As of September, the company sold 60% of its output through long-term contracts compared with 48% in the previous year.

The company intends to sell up to 80% of its power through long-term power purchase agreements . This augurs well for the company as merchant or shortterm power tariffs have been under pressure due to lower off take. State distribution companies, or discoms, have become disciplined in buying power post their restructuring.

In addition, the integration of southern grid may reduce merchant rates in south India, the company's key supply region. At present, the company has three operational power plants with a combined capacity of 3,140 MW.

In addition, it has started tendering construction for its 240 MW hydropower project. A healthy debt-to-equity ratio of 1.4 gives the company opportunity to expand its capacity through organic route or acquire distressed projects in the near future. Another development to watch out for in the coming quarters is the final tariff for its Rajasthan power plant. At present, the company sells its power at Rs 3.74 per unit.

A higher price may increase investor sentiment in the stock. At the current price, the stock has been trading at a price-to-book value of 1.2, which is lower than the three-year historic average of 1.7. International coal prices and merchant tariff rates would be the key factors to watch out for the stock movement in the near term.

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Large power plants back on Centre's agenda...

 

India's power sector has always been a story of shortages, and successive governments have attempted to solve the problem through rapid capacity addition without adequate regard to the backend problems. It was with such missionary zeal to wipe out the power shortage that in 2005 the government had launched ultra-mega power plants, or UMPPs, with 4,000 Mw capacity each to be located at coal pitheads and at the coast which would make coal imports easy.

The report card of the four UMPPs that were given out to private companies amid much fanfare - Mundra (Gujarat) to Tata Power and Sasan (Madhya Pradesh), Tilaiya (Jharkhand) and Krishnapatnam (Andhra Pradesh) to Reliance Power - is hardly encouraging: while Mundra and one unit of Sasan are generating power, the other two are yet to start. And now the government has launched two new UMPPs: one each at Bedabahal in Odisha and Cheyyur in Tamil Nadu.

In eight years since UMPPs were first launched, the investment climate has dramatically changed. All large private-sector power players are currently facing tough times and the government may find it hard to attract investments. Considering that the estimated cost of the Bedabahal UMPP is Rs 25,200 crore and of Cheyyur UMPP is Rs 24,200 crore, the investment requirement is huge - assuming debt/equity of 3, this would require the developers to raise over Rs 35,000-crore in loans.

Arranging that kind of money won't be easy. Indian financial institutions are over-exposed to the powers sector. Some power companies like Lanco have gone in for corporate debt restructuring. Interest rates for power companies have escalated to 13-14 per cent per annum. So, project developers are increasingly dependent on external commercial borrowings (ECBs). "Most domestic developers are financially stretched, and so we should work to attract more overseas developers and local companies that are financially stronger, especially those in the public sector," says Kameshwar Rao, leader (energy, utilities and mining), PriceWaterhouseCoopers. "Conditions like fuel availability, PPA (power purchase agreements) and equity infusion for attracting funding are not being met. Promoters were dependent on private equity which has lost interest due to the sector outlook weakening; this is also responsible for domestic banks not making the sanctioned disbursements," says Tata Power Managing Director Anil Sardana.

Brake on imports
To be sure, there has been record addition to India's power capacity in the last few years. Much of that was fuelled by the easy import of equipment for power projects - almost 50 per cent of the new coal-based capacities use imported equipment. However, the recent duties on imported equipment threaten to increase project costs. Sardana says there is a strong need to remove the barriers to entry at all stages and for an optimal pricing and tax strategy to be in place, so that resource allocation takes place based on market forces operating in a credible regulatory regime.

The Union power ministry too appears conscious of the challenges it is facing with regard to the two new UMPPs. So, qualifying norms have been simplified this time, allowing companies which are not in the power sector to bid. "The qualifying requirement, however, for non-power bidders, is higher," says Power Secretary PK Sinha. A bidder needs to have technical capability of Rs 12,600 crore worth of projects in case of power companies in the last five years. The bidder is allowed to include an infrastructure project executed by it worth Rs 1,260 crore in its experience. This threshold was earlier Rs 2,520 crore but was reduced due to the economic slowdown.

Sinha says some 52 developers turned up at the pre-application conference on October 15 which included multinationals like Mitsui, Larsen & Toubro and General Electric, besides domestic power producers like GMR Energy, Adani Power, Sterlite Industries and Tata Power. Reliance Power, which already has three UMPPs, did not take part in the conference. That's because the bidding norms do not allow companies with three UMPPs under construction to bid for more such projects. Rao says a different set of developers such as multinationals, engineering companies and public sector corporations will participate this time. This explains the presence of a large number of non-power generating companies in the pre-application conference.

Easier qualifying criteria is among various other changes being tried out in the bidding for UMPPs this time. For Bedabahal, which comes along with a coal mine, it is only the fixed charge which will constitute the tariff for the purpose of bidding. Since the bidder is expected to source fuel from captive coal mines allocated for the project, the fuel charge payable would be Rs 0.356 a kWh (unit). Though this was not the case in Sasan and Tilaiya, the two pithead UMPPs that were bid out earlier, companies want any variation in the mining cost which is beyond the control of bidders should be adequately compensated.

Cheaper power
From the buyer's point of view, the changes in the bidding norms could make tariffs more realistic. "The rates of UMPPs are typically less. The rates are far lower than power generated out of smaller plants," says Manu Srivastava, managing director, MP Power Management Company, the holding company for three power distribution companies in Madhya Pradesh. The state will source 1,485 Mw from Sasan and 200 Mw from Tilaiya at less than Rs 2 a unit. In addition, it has signed up for buying another 400 mw power from the Bedabahal UMPP. In the case of both Sasan and Tilaiya, Reliance Power is seeking a tariff revision from the Central Electricity Regulatory Commission. Srivastava says the current PPAs do not permit any revision. "It is difficult to seek solution out of the written draft even if some of the reasons for seeking revision are genuine. It makes more sense to allow flexibility in the beginning. The price of power is more a function of factors prevailing then," he says.

Tata Power, which has fully operationalised imported coal-based Mundra UMPP but on account of changes in Indonesian law is seeking an increase in Rs 2.44 tariff it quoted to bag the project, does not see the changes in bidding norms bringing any relief. The company has lobbied the power ministry to retain the previous documentation except setting right a few issues related to fuel risk et cetera. "The present documentation is a completely new concept and provides challenges which add much more risk on the developers end. We would take such decision (on bidding for the two UMPPs) only after deliberations at the board level. At this stage, the terms and conditions indicated in the documentation are a matter of serious concern," says Sardana.

For the power sector, fuel continues to be a serious concern. Sinha, on his part, points out that resolution of 16,000 Mw of stranded gas-based capacity is on the cards with the gas pooling proposal, while fuel supply agreements for 72,000 Mw of coal-based capacity have been signed. With eight tapering linkages, given in lieu of long-term linkages that have not materialised, another 4,000 Mw would get coal. "If these decisions get implemented, new projects will become attractive to bankers and developers," he says. In power, where there are long-gestation projects, capacity planning has to be done over at least a five-year horizon. The challenge would be to make the two new projects on the block live the dream.

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Power Ministry awaits Karnataka's response on discom debt recast...

 

Power Ministry is awaiting response from the Karnataka government on restructuring the debt of the state's discoms, before approaching the Cabinet Committee on Economic Affairs with the proposal.

"As soon as Karnataka (government) sends us their response we will send the note to CCEA," an official in the Ministry of Power told .

As per the proposal by the ministry, the state electricity boards of Jharkhand, Bihar and Karnataka will be allowed to convert their outstanding loans, till March 2013, into bonds as part of an amendment to the discom debt restructuring package.

At present, under the government approved Financial Restructuring Package (FRP), 50 per cent of the accumulated debt of the discoms till March 2012 can be converted into bonds to be issued by these distribution companies to the participating lenders, backed by state government guarantees.

This package was approved in September 2012 by the Centre in order to bail out the near-bankrupt discoms.

Karnataka along with Jharkhand and Bihar had approached the Ministry seeking this special provision.

Under the FRP scheme, balance 50 per cent loans will be restructured by providing moratorium on principal and best possible terms for repayments.

The support under the scheme is available for all participating state-owned discoms on fulfilling short-term mandatory conditions.

The government has also stated the debt recast should be accompanied by concrete and measurable actions by discoms or states to improve the operational performance of the distribution utilities.

The accumulated losses of state power distribution companies are estimated at about Rs 1.9 lakh crore as on March 31, 2011, and Rs 2.46 lakh crore as on March 31, 2012.

The debt recast plan for the discoms was formulated based on the report of an expert group headed by B K Chaturvedi, Member (Energy) of the Planning Commission.

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Everything you want to know about National Solar Mission Phase II batch I...

 

The Government of India / Solar Energy Society of India has finalized and issued the guidelines for the solar projects under National Solar Mission Phase II Batch I and issued the RfS for the same.

Power India have analyzed the key aspects of the guidelines as well as RfS and hereby attached the brief analysis of the document.

 

 

In the preliminary workings the following aspects have been touched upon:

• Introduction of National Solar Mission
• Current status of the projects under National Solar Mission
• Brief of the NSM Phase II Batch I
• Salient features of the provisions under NSM Phase II Batch I
• Key technical and commercial considerations
• Tentative financials of the projects
• Sensitivity analysis covering key variables
• Various strategies to optimize the financials

Read the embedded version of the report below:

 

 

Comments from the stakeholders are invited on the various aspects discussed in the preliminary analysis. 

 

The full report can be downloaded at here, or write to us at sparksnetwork@gmail.com .

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Tata Power records 43% increase in generation in FY13...

 

Tata Power, India’s largest integrated power utility, announced crossing over 800 MUs from its Wind Power Projects in FY13. In the span of one year, the Company’s wind farms have generated 813 MUs as against 569 MUs in the previous year, recording an incremental generation of 43% in FY13.

This growth is mainly attributed to the Agaswadi wind farms which had an  increased generation of 85 MUs and Poolavadi with 140 MUs. Tata Power has a total installed capacity of 398 MW in Wind Generation with plants across five states Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka, which are the leading states in promoting wind power generation in India.

Tata Power has adopted the following technologies In order to optimize its operations:

• Surge protection module in pitch power supply unit for reducing pitching error and convertor errors
• Vacuum type slip ring to increase the maintenance cycle of wind turbines
• Air gap monitoring at bearings to prevent bearing failures
  

Speaking on achieving this milestone, Anil Sardana, Managing Director, Tata Power, said, “Tata Power is developing wind power projects of over 160 MW in India. We are proud to have increased our wind generation capacity by a record of 43%, which proves our commitment towards to generating 20-25 % of our total generation capacity from clean energy sources.”

Tata Power Renewable Energy Limited (TPREL), a 100% subsidiary of Tata Power has recently signed a SPA for acquisition of 100% shareholding in AES Saurashtra Windfarms Pvt Ltd (ASW), a 100% subsidiary of AES Corporation. ASW owns and operates a 39.2 MW wind farm near Dwarka in Jamnagar district of Gujarat. The project which is fully operational since January 2012 has executed a power purchase agreement with GUVNL for sale of the electricity at a tariff of Rs 3.56/kWh for the duration of the project.  The project is registered with UNFCCC as a CDM project and is eligible to receive CERs. The project is also registered under the Generation Based Incentive scheme of MNRE.

The Company international wind presence includes a Joint Venture Company in South Africa with Exxaro, Cennergi (Pty.) Ltd. Cennergi has recently announced financial closure of its 95 MW Tsitsikamma Wind Farm Project and 135 MW Amakhala Emoyeni Wind Farm Project The wind projects will be located in Eastern Cape, South Africa and are expected to achieve commercial operations in 2016. Power Purchase Agreements and Implementation Agreements for these projects were signed with Eskom and Department of Energy, Government of South Africa respectively on May 9th, 2013.

Tata Power is also pursuing new environment friendly technologies and has installed micro turbines to understand their performance in Indian conditions. The purpose of this project is to determine the most cost-effective forms of wind energy which can be installed on rooftops or in remote areas where there is sufficient wind energy. Micro turbines of capacities of 2 kW from Windtronics, 5 kW and 12 kW from WePower and 5 kW from Unitron have been installed at the test bed site.

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NTPC Q2 net profit at Rs24929mn...

 

NTPC Ltd has posted a net profit of Rs. 24929.00 mn for the quarter ended September 30, 2013 as compared to Rs. 31423.50 mn for the quarter ended September 30, 2012.

Total Income has decreased from Rs. 171709.30 million for the quarter ended September 30, 2012 to Rs. 170594.10 mn for the quarter ended September 30, 2013.

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Challenges faced by wind industry...

 

There is a need to move to a more sustainable form of power generation for avoiding the adverse impacts of climate change, in line with the global target of keeping Global Mean Temperature rise below 2 degree C above pre-industrial levels, as agreed by the world leaders.  If we are serious about securing out planet’s future against ill effects of climate change, the displacement of conventional fossil fuel usage with low carbon technologies must be dealt with utmost seriousness.

In the present scenario, Wind energy is techno-economically viable efficient alternative to fossil fuel, due to its zero emission factor and non pollutant nature, as in power generation process it does not emit greenhouse gases.

As of now, the renewable energy accounts for around 13 per cent of total installed capacity, with the largest share from wind energy which stands at around 70 per cent. There are two forces that will drive the growth of wind energy in India. One is the rising energy demand in India and the other is obligations on India’s part to encourage clean development.  There are abundant wind resources available in India; there is institution like Centre for Wind Energy Technology (C-WET) which does regular assessment of wind resources. India also has cost advantage attributed to available indigenous wind technology.  However, the insufficient grid infrastructure, unattractive incentive policies and absence of an integrated policy framework deter the growth of the sector.

Multitude of regulatory agencies, add to the confusion. While the policy environment for renewable energy in India has been improving in recent years, the wind industry is facing challenges in the aftermath of the sudden reduction in tax incentives. 

Domestic advantage

Wind power is a mature and scalable clean energy technology and India holds a domestic advantage in it.  Established and proven wind turbine technology in India led to huge investments in the sector. India is emerging as a major wind turbine-manufacturing hub today. Over 15 existing manufacturers have a consolidated annual production capacity of over around 10,000 mw. Indian companies now export domestically manufactured wind turbines and blades to Australia, Brazil, Europe, USA and a few other countries.

Many of the older low-capacity (500 kw) wind turbines installed more than 10 to 12 years ago occupy some of the best wind sites in India. These turbines need to be replaced with more efficient, larger capacity machines for generating more power from such sites. A study on repowering potential conducted by ‘Wise’ for the ministry of new and renewable energy estimated India’s current repowering potential at approximately 2,760 mw. Due to lack of policy guidelines and incentives, states are not willing to repower the old wind machines, as concerns are raised on a number of subjects including disposal of old machines, fragmented land ownership in existing wind farms, clarity on the feed-in tariff offered to newly repowered projects and constrained evacuation of the extra power generated.

Wind energy technology helps prevent the adverse effects of climate change as well as boosting the low carbon economy. Established and proven wind turbine technology in India has led to huge investments in the sector. Increased domestic demand and expansion of the in–house manufacturing capacity of the Indian wind industry has resulted in attracting many new manufacturers into the fray.

Historically the Indian wind energy sector has met and occasionally exceeded its allocated target. However, the modest pace of utilisation of the country’s wind power manufacturing and resource potential in the recent times could be attributed to several factors which include inadequate grid infrastructure, land acquisition, high rate of interest, etc. There is need to create an adequate grid and transmission infrastructure across the states with significant wind potential so that the state distribution utilities are able to evacuate ever-increasing amounts of wind power. There has to be attractive incentive policies and an integrated policy framework in place to encourage investment in the sector. Land clearance for wind power installation and land conversion issues are very time taking and need to be made smooth.

The 12th Plan envisions installing 100 gw of new capacity of which 30 gw is projected to come from Renewable Energy Sources, of which wind would account for 15 Ggw The country is seeing about 3 GW in annual installations under the 12th Plan target. With right policies in place and proper incentive schemes, there is no doubt that the target could be met.

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In a first, NTPC to ship imported coal via waterways...

 

In a strategy aimed at cushioning the impact of expensive imported coal, power major NTPC Ltd is in final stages of launching an ambitious plan to move this coal from the high seas to its generating stations through inland waterways, starting with its Farakka plant in West Bengal.

The very first consignment for Farakka — a ship bearing 69,060 metric tonnes (MT) of imported coal — has already arrived at Sandheads, the transshipment point in the Bay of Bengal, on October 15.

Inland water transport (IWT) is widely acknowledged as among the cheapest form of transport for goods and is used extensively in countries such as China, Germany and the US by utilities for transporting bulk cargo.

The Farakka plant is set to begin import coal movement by inland waterway shortly through a tripartite agreement that it has in place with the Inland Waterways Authority of India and Jindal ITF Ltd, the operator for the project.

The pact entails supply commitments of 3 million MT per annum of coal to be transported to Farakka plant through inland waterway over the next seven years. The Farakka plant has been operating since 1986 but has been using a mix of rail and road transport to supply coal.

Under the inland waterway transport plan, Jindal ITF will unload and transport imported coal from high seas to the Farakka plant, for which the operator has created infrastructure, including a mid-sea transfer point, all the way to the NTPC coal stock yard.

The other facilitators include a transhipper, 19 barges of 2,000 MT that have been procured by JITF, unloading arrangement at Farakka waterfront, a conveyor from the jetty to Farakka coal stockyard.

While Jindal ITF has made the entire investment of some Rs 650 crore for the project, the payments for the coal transported by it shall be made by the imported coal supplier to be appointed by NTPC from time to time.

NTPC has also floated a second tender for a 10-year contract to haul 3 MT of imported coal a year through inland waterways to its power project at Barh in Bihar.

India is estimated to have nearly 14,500 km of navigable inland waterways, even though the exploitation of IWT sector has remained neglected, with most waterways requiring constant dredging on account of heavy silting and draft available only seasonally.

Besides, not many entrepreneurs are willing to invest in inland vessels, which have resulted in under utilisation of whatever infrastructure is created, thereby putting brakes on the development of sector.

In China, navigable inland waterways total more than 100,000 km and there are a large number of inland port facilities with berths for large vessels. IWT accounts for almost 10 per cent of the freight tonnage. In neighbouring Bangladesh, about 35 per cent of the freight movement is by inland waterways, according to figures from the Asian Development Bank.

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NHPC revises its strategy, to focus on thermal projects...

 

The state-owned hydropower company NHPC Ltd has decided to also focus on developing thermal power plants in India in a move that will put it in direct competition with another state-owned company, NTPC Ltd. The main reason would seem to be the long-gestation period of hydropower projects as well as delays in clearances.

With projects that will generate 3,808.5 megawatts (MW) delayed due to issues such as disputes between states, geological surprises and resistance from the local population and no new projects coming its way, NHPC is in talks with the Bihar government to jointly develop two coal-fuelled projects of 1,320 MW, each requiring an investment of around Rs.14,000 crore.

“We are planning to set up thermal power projects in a big way. As part of this exercise we have already acquired Indian Farmers Fertiliser Cooperative’s (Iffco) stake in a 1,320 MW project in Chhattisgarh, where we have a 74% stake. We are doing this as no new projects are being allotted to NHPC as states have allotted projects to the private sector,” said A.B.L. Srivastava, director, finance, at NHPC.
While executing a hydropower project is a time-consuming and tedious process, taking around seven years for execution, thermal projects can be commissioned in around three years.

“We are looking at two more projects in Bihar. These are Bihar government projects of 1320 MW each. We are in talks for the same for a majority stake,” Srivastava said, without elaborating. NHPC, formerly the National Hydroelectric Power Corp., has a generation capacity of 5,702 MW, including joint venture projects. Executing a hydropower project requires a thorough survey and investigation, detailed project report preparation, relocation and resettlement of the affected population and infrastructure development.

NHPC’s plans will take it head on with NTPC Ltd, India’s largest electricity generator with an installed capacity of 41,684 MW from 15 coal-fuelled plants.

While NHPC had earlier set itself a target of becoming a 10,000MW utility by 2010, a majority of NHPC’s hydropower projects that are under construction have been delayed. These include Teesta Low Dam-III (66 MW), Uri-II (240 MW), Parbati-III (520 MW), Teesta Low Dam-IV (160 MW), Subansiri Lower (2000 MW) and Parbati-II (800 MW). And projects such as Chamera-III (231 MW) and Chutak (44 MW) were commissioned way past the deadline set at the time of the company’s listing.
“Led by execution delays at each of its projects under construction and higher implementation time required for hydro projects, 30% of NHPC’s FY13 balance sheet is represented by surplus cash that earns just 6-7% RoE (return on equity) and 18.5% by CWIP (Capital Work in Process) that earns no RoE. This depresses its RoE. We expect its RoE to remain subdued at about 8% for the next several years,” Credit Suisse said in an 1 August report on NHPC.

Companies and experts have expressed their reservations regarding India’s hydropower sector.

India’s moribund hydropower sector isn’t expected to change trajectory in the next two years, Hubert Lienhard, president and global chief executive officer of Voith GmbH, which makes electro-mechanical equipment said in December last year.

Hydropower holds the key to meeting the country’s peak shortage, but hydropower capacity comprises only 17.43%, or 39,623.40 MW, of India’s installed power generation capacity of 227,356.73 MW. Some 641 hydropower units are operational at 184 power stations across the country. With state-owned firms such as NHPC Ltd, SJVN Ltd, THDC India Ltd and North Eastern Electric Power Corp. Ltd (Neepco) failing to meet capacity addition targets, even the Comptroller and Auditor General of India (CAG) has criticized the functioning and performance of the firms. According to the CAG report, while hydropower capacity addition was initially set at 11,813MW in the 11th Plan period (2007-2012), even the revised target of 6,794MW couldn’t be met due to project delays.

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Sical Logistics wants to handle coal at Ennore port for TNEB...

 

Sical Logistics continues to explore opportunity to handle thermal coal at Ennore port as an alternative cargo for its iron ore terminal lying idle for nearly two years due to a ban on export of the ore.

The company has invested Rs 475 crore on the terminal and spends Rs 4 crore a month to service the principal, interest and other expenses, the company said.

Sical, a part of the Bangalore-based Coffee Day, hopes to make the investment productive by handling coal for Tamil Nadu Electricity Board. It has obtained necessary approvals of the Ennore port. The final approval for conversion is pending from the Shipping Ministry . “We continue to work with the ministry to make it happen,” the company said.

Sical, which originally belonged to the Chennai-based M.A. Chidambaram Group, was also awarded the project to develop a mechanised iron ore handling at the deep draft berth No 14 of the New Mangalore port on a build, own and transfer basis. It is facing a similar situation there due to the ban.

The company has not invested much of its resources at the facility there. To complete the project, the company has approached the port authorities seeking permission to handle multiple cargoes.

An official of Ennore Port Ltd said since a competing facility operated by the Chettinad group is handling coal at the port, it is not possible for Sical to handle the same cargo. However, it is up to the Shipping ministry to take the final call.

Sical Iron Ore Terminals Ltd, a special purpose vehicle to manage the project, developed a six million tonnes terminal at the country's first corporatised port. The terminal, for which the company has signed an agreement with Ennore Port in July 2006, was developed on a build-operate-transfer, revenue-sharing contract with Ennore Port for 30 years, including the construction period.

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UT solar project lights up...

 

The ministry of renewable energy of the central government has given approval to UT administration to equip solar energy plants atop private houses but curtailed their number from 300 to 230.

"We received the nod last week. Public notices will be issued and if more than 230 residents opt for the facility, we will hold draw of lots," said Santosh Kumar, director, science and technology, UT and conservator of forests. Solar plants of three categories, 1 kilowatt, 2 kilowatt and 3 kilowatt, would be provided to residents as per space of houses. One kilowatt plant requires 100 square feet area and would be able to generate 1,300 to 1,400 units of electricity in a year.

"The cost of the 1KW plant will be roughly around Rs 1 lakh and Rs 1.40 lakh with battery. A resident will get 30% subsidy," said Kumar, adding tenders would be advertised within a week for selecting competent companies and later impanel them from where people could buy the equipment.

Sources said more than two firms would be chosen for supplying the equipment. A team of technical wing of UT's science and technology department would first go through the specification and technical qualities of the products before allotting them tenders.

The Centre had selected Chandigarh and Nagpur as model solar cities, asking officials to equip government and private buildings with solar plants. At a panel discussion as part of TOI campaign, 'Chandigarh-Back to the Future', on June 9, UT administrator Shivraj Patil said the solar city project was a priority agenda for the administration and would be pursued aggressively.

Over half a dozen government buildings, including Paryavaran Bhawan, Burail Jail, Punjab Engineering College, government school of Sector 46 and police headquarters, have solar plants.

The department had some time back identified five government houses in Sector 7 for installing solar plants, as a pilot project.

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Suzlon promoters convert CCDs worth Rs 203 cr...

 

Suzlon Energy has allotted over 18.47 crore shares of face value of Rs 2 each upon conversion of 203 compulsorily convertible debentures (CCDs) of face value of Rs 1 crore each, to its promoters.

The preferential allotment post conversion of 100 CCDs is in consideration of conversion of the promoters’ unsecured loan of Rs 100 crore. These shares of over 9.09 crore have a lock-in-period of three years.

The remaining 103 CCDs is for the promoter contribution of Rs 103 crore brought in according to the terms of the corporate debt restructuring package. These shares, totalling over 9.37 crore, have a lock-in-period of one year.

On Monday, Suzlon shares closed 4.93 per cent higher at Rs 11.29 on the BSE.

The Securities Issue Committee of Suzlon board approved of the allotment on Monday.

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Kerala State Electricity Board plea to regulator...

 

The Kerala State Electricity Board has sought a review of drastic cuts in its expenses on generation of power, purchase of power, and general administration.

The request was contained in an appeal to the Kerala State Electricity Regulatory Commission.

The appeal noted while the Board had projected a revenue gap of Rs 2,758.67 crore in commercial operations in the year 2013-14, the commission had calculated it only to be Rs 1,049.91 crore.

The Commission has meanwhile posted a public hearing on this petition at its office on Tuesday.

The Board also sought a review of the order in which it was allowed a spending of Rs 1,803.81 crore on salaries and pensions against the requirement of Rs 2,551.50 crore for 2013-14.

The sum approved had fallen short by 29.30 per cent, the Board pointed out in the appeal.

 

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Government finalising draft policy on incentive for green buildings...

 

The Centre was finalising a draft policy on non-financial incentives to promote green buildings, a top official of the Ministry of Housing and Urban Poverty Alleviation said here today.

Referring to the additional Floor Space Index, for green buildings in Noida, Union Secretary, Ministry of Housing and Urban Poverty Alleviation, Arun Kumar Mishra said such measures would be actively promoted by the Centre and made part of the national policy [on promotion of green buildings],

Addressing the " Green Building Congress-2013" orgainsed by CII and the Indian Green Building Council, he said the Centre would hold dialogue with State governments on such incentives for green buildings.

On any financial support like capital subsidy, he indicated that it could take time as it involved "deliberations and interaction" with several ministries.

Stating the government had a role in encouraging green buildings, he said, "in government housing programmes, we plan to do about a million houses in the next four years. We have already made it a part of our instruction that any block, any State, any municipality wanting to construct these [green] buildings, will be covered in our project cost."

"We have Building Materials and Technology Promotion Council and we can enter into an MoU to promote this energy saving green technology."

Stating the Centre would also promote alternative technologies in building material, he indicated that the issue of financial support for this sector would be pursued if needed.

He said the Centre would be inclined to ink an MoU with the Green Buildings Council to sponsor a training programme for the engineers and senior officers of the Centre so that "they could be acquainted with this green technology."

CN Raghavendran, Chairman, IGBC-Chennai Chapter said over a period of time India's building footprint would be "100 billion square feet out of which 70 billion square feet will be in the residential sector, which is growing at a rate of 5 per cent every year."

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Tamil Nadu regulator's Order confuses solar energy users...

 

Domestic consumers who had installed rooftop solar photo vo­ltaic plants have been left clueless wi­th the energy department’s order that capital subsidy of Rs 20,000 for solar systems would be provided only to those who purchased their systems through Ta­mil Nadu Elect­ri­city Development Age­ncy.

In the government order, the energy department said that the subsidy would be given on ‘first come first serve’ basis by TEDA. The subsidy wi­ll be given only to grid-connected, battery-less systems purchased from vendors approved by TEDA.

A resident of Nungambakkam sa­id he installed a one-kilo watt rooftop so­lar system with battery in his house at a cost of Rs 1.6 lakh in May hoping to get Central and state government incentives. “I was really disappointed. Only after the state government’s annou­nce­ment of Rs 20,000 subsidy, did I opt for solar system,” he said, adding that he made several visits in vain to local TNEB office to know about guidelines before going ahead with solar system installation.

Another resident of Tambaram, who has set up a solar system in his house, said that even a year after the state government came out with its solar energy policy there is no clarity in the procedures to be followed in inst­alling solar systems. “The excess power generated in the solar system is going waste as they are not allowed to be connected to the grid,” he said.

Sources in TEDA said that the state government incentive would be given only to those who are applying for solar systems through TEDA. However, sou­rces said that they would be allowed to supply surplus po­wer to the grid once the Tamil Nadu El­ectricity Regulatory Commission comes out with its order on net metering facility.

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NHPC to buy-back government shares...

 

State-owned NHPC would buy back government shares which would yield the exchequer about Rs. 20 billion.

The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, is likely to give its approval to this effect soon, according to a media report.

Under the buyback scheme, the government can raise money by selling its equity in the company to the PSU itself.

The hydro power producer has informed BSE that its board of directors has unanimously approved the buyback of up to 10 per cent of fully paid-up equity shares of Rs 10 each for an aggregate amount of nearly Rs. 24 billion. Since the government holds 86.36 per cent stake in NHPC, buyback of shares on proportional basis would mean government getting about Rs. 20 billion.

The company has a cash reserve of nearly Rs. 30 billion.

NHPC was listed on the bourses in 2009 after the government divested a 5 per cent stake and the company issued 10 per cent of fresh equity.

The government plans to raise Rs. 400 billion in the current financial year (2013-14) through disinvestment.

NHPC generates 5,702 MW of electricity from 17 hydel stations in the country. As many as seven power stations totalling 4,095 MW of capacity are under construction.

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KEC International stock surges 7%

 

Shares of KEC International Ltd surged over 7% after consolidated net profit surged 34% to Rs 22 crore on 6.6% growth in net sales to Rs 1778 crore in Q2 September 2013 over Q2 September 2012.

The stock is current trading at Rs33, up Rs2.25.

The stock has hit a high of Rs33 and a low of Rs31.

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Tata Power developing 160 MW wind projects in India...

 

Augmenting its renewable energy portfolio, Tata Power is developing wind projects having total generation capacity of over 160 MW in the country.

The private power producer already has an installed wind energy generation capacity of 398 MW with projects across Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka.

"Tata Power is developing wind power projects of over 160 MW in India," Tata Power Managing Director Anil Sardana said in a statement today.

Besides wind, the company has presence in solar power generation and is also implementing hydro projects.

Meanwhile, the company saw its electricity generation from wind projects rose 43 per cent to 813 Million Units in the year ended March 2013. The same stood at 569 MUs in the previous twelve months.

This growth is mainly attributed to the Agaswadi wind farms which had an increased generation of 85 MUs and Poolavadi with 140 MUs, according to the statement.

"We are proud to have increased our wind generation capacity by a record of 43 per cent, which proves our commitment towards to generating 20-25 per cent of our total generation capacity from clean energy sources," Sardana said.

The company has an overall installed generation capacity of 8,500 MW.

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630 MW Bokaro Thermal Plant of DVC closed down due to pollution issues...

 

630 MW Bokaro hermal Station of Damodar Valley Corporation (DVC) was ordered to shut down on October 24 as it was found polluting the Kolar River.

The Ash ponds of Bokaro thermal station were overflowing and the ash was being released to the Kolar River which is a subsidiary of Damodar River in gross violation of pollution norms. The Jharkhand State Pollution Control Board had raised serious objection which DVC was unable to address. The Chief Secretary Jharkhand has ordered the total shutdown of the station to save the Damodar River from further degradation.

All India Power Engineers Federation (AIPEF) in a letter to Union Power Minister has alleged that the shutdown of this station is a case of management failure on part of DVC. An enquiry into the events leading to the closure of Bokaro thermal unit and management failure needs to be ordered.

The closure of this station will cause immediate and direct financial loss to DVC as the DVC tariff is governed by CERC and capacity charges get reduced when station availability falls. Capacity charges are recovered through tariff and when station power is zero the revenue loss is immediate.

AIPEF has suggested that a task force or crisis management group may be set up to tackle the ash problem and to revive the plant.

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Modern India Ltd to set up 5 MW solar power plant at Satara District...

 

Modern India Ltd to set up 5 MW solar power plant at Satara District

The Board of Directors of Modern India Ltd at its meeting held on October 25, 2013, approved the proposal to set up a 5 MW Solar Power Plant at Satara District, Maharashtra.

Shares of Modern India Ltd was last trading in BSE at Rs.52, up by Rs.1 or 1.96%. The stock hit an intraday high of Rs.52 and low of Rs.52.

The total traded quantity was 2.16 lakhs compared to 2 week average of 0.31 lakhs.

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Country's target for renewable energy achievable: Karnataka Power Regulator...

 

The Confederation of Indian Industry (CII) Karnataka conference on power highlighted several measures that could be adopted to help ease the current power crisis in the country.

From wind and solar energy, to utilizing gas installation for peak-hour power requirements, the conference brought together some of the best minds in the industry to share their views and concerns on the power sector.

Mr Sreenivasa Murthy, chairman, Karnataka Electricity Regulatory Commission (KERC), said that the national action plan for climate change constituted in 2008 had recommended that 15% of power generated in the country should come from renewable energy by the end of the decade.

“At the national level, India has just reached 5% currently, which was the target for 2010. Despite the backlog, I am confident that the 15% target is achievable by the end of the decade,’’ Murthy said.

He highlighted that Karnataka was well on its way to achieving the target and could well surpass the target by the next decade. He noted that Karnataka was at 10%—the highest renewable purchase obligation among states in India. Though the compliance was just at 9.9%, it is still a step in the right direction, he said.

On the issue of free power supply to farmers, he said that this was largely a misconception, as the department was not at a loss since the government was footing the bill on behalf of the farmers.

He estimated that around `5,000 crore per year is being paid by the government for power subsidy to farmers. He noted that loss of power due to transmission and distribution was an area of great concern.

He suggested that the state should shift to a high-voltage distribution system to help mitigate some of the losses and also explore additional options to minimise the problem.

Amita Prasad, principal secretary (energy department), said that the immediate issues to be addressed are the quality of power and the preparedness to go forward with new technology. She said that the greatest hurdle in implementing solar or wind projects was the lack of quality and innovation from suppliers.

She called on Indian companies to do more research in the field and thereby reduce the country’s dependency on foreign companies. She said that there was lot of scope for roof-top, off-grid and in-grid installations and the government is seriously looking at implementing the same.

As far as free power supply to farmers was concerned, she stressed on making the agricultural sector in the country more efficient through the use of modern pumps and solar installations to reduce consumption of power.

Karnataka in the lead for renewable energy
The national action plan for climate change constituted in 2008, had recommended that 15% of power generated in the country should come from renewable energy by the end of the decade.

While India has reached only 5% currently, which was the target for the year 2010, Karnataka has reached 10%, the highest renewable purchase obligation among all states in India. According to these estimates, Mr Sreenivasa Murthy, chairman, Karnataka Electricity Regulatory Commission, said Karnataka is sure to not only reach, but surpass the target by the next decade.

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