NHPC’s Rs 2,368 cr share buyback to begin from Nov 29...

 

NHPC’s buyback of shares worth up to Rs 2,368 crore will start from November 29 and aims at funding the country’s largest hydro power producer’s expansion plans.

 

“The (buyback) process will commence on November 29 and will be concluded on December 12,” said a source.

 

The company plans to buyback up to 123,00,74,277 fully paid up equity shares of Rs 10 each at a price of Rs 19.25 apiece aggregating Rs 2,368 crore from the open market.

Government holds 86.36 per cent stake in NHPC.

The company got listed on bourses in 2009 after the government divested 5 per cent stake. It has also issued 10 per cent fresh equity.

Overall, the government plans to raise Rs 40,000 crore in the current financial year (2013-14) through disinvestment.

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

The company’s scrip closed at Rs 17.65, down 1.67 per cent, on the BSE.

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ICRA reaffirms TPDDL's loan facilities at "ICRA AA-"...

 

ICRA has reaffirmed Tata Power Delhi Distribution Limited's (TPDDL) Rs. 4,500 crore term loans and Rs. 145 crore fund-based limits at "ICRA double A minus". Moreover, ICRA has also reaffirmed a rating of "ICRA A one plus" assigned to the Rs. 725 crore non-fund based limits and Rs. 500 crore short-term debt programme of TPDDL.

According to the rating agency's report, the rating action has factored in the satisfactory working of the cost plus tariff mechanism in Delhi as reflected by significant hike in tariffs allowed over the past three years which has made current tariffs nearly cost reflective.

While the ratings continue to derive comfort from the company’s favourable operating position arising from the cost-plus nature of its core business, ICRA was happy to note TPDDL's ability to meet the stringent operating parameters including AT&C loss reduction measures laid down by DERC.

However, the above ratings are constrained by significant build of receivables on account of revenue under recoveries as power purchase costs increased significantly over the years. Further, lower sale rate for surplus power as against the rates approved by DERC has continued to result in power-cost under-recoveries.

As for the key rating sensitivities, the company has listed out certain factors which include TPDDL's timing of additional tariff hikes and its adequacy to not only cover increasing cost of power but also permit eventual liquidation of past under-recoveries.

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CIL tweaks provision of model fuel supply pacts on disputes...

 

State-owned Coal India Limited (CIL) has tweaked the provision pertaining to the settlement of disputes in the model fuel supply agreements (FSA) for the existing and new State-owned power utilities.

“(There are) modifications in the provisions of model FSAs applicable for the existing and new power utilities (for SEB (State Electricity Board) and state Gencos,” Coal India said in a letter.

CIL further said in the letter that the provision for ‘settlement of disputes’ under the model FSA for both existing and new plants was in accordance with the mechanism of permanent machinery of arbitrators (PMA) issued by the Department of Public Enterprises.

“Recently, the Department of Heavy Industries & Public Enterprises modified the dispute resolution provision, replacing the earlier OM (Office Memorandum),” it said.

“Since earlier OM dated January 22, 2004, has been superseded by the new OM dated June 12, 2013, the FSA provisions...for the model applicable to existing as well as new government/state power utilities, including the corresponding tapering FSA model, will stand modified accordingly,” CIL said.

Coal India Chairman S. Narsing Rao had recently said the PSU has signed FSA for 70,400 MW.

Amid continuous delays, the Cabinet Committee on Investment (CCI) had earlier said that timelines for signing of fuel supply pacts for power projects of 78,000 MW capacity should be met.

Two deadlines set for signing of the fuel supply agreements by CIL with the power producers could not be adhered to.

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Coal ministry de-allocates coal blocks of Jindal, Rathi, Monet Ispat and 8 others...

 

Coming down heavily on firms sitting idle on mines, the coal ministry has decided to deallocate 11 blocks given to companies including Jindal Steel and Power Ltd (JSPL) and Rathi Udyog Ltd. “The coal ministry last evening took a decision to deallocate 11 coal blocks alloted to firms including JSPL and Rathi Udyog Ltd,” a top coal ministry official told PTI.

The inter-ministerial group (IMG) on coal blocks after reviewing the performance of 30 coal blocks had earlier recommended deallocation of 11 blocks given to companies including JSPL and Monnet Ispat & Energy Ltd. “In the case of another 19 mines, the IMG has recommended either imposition or deduction of bank guarantee,” a source had earlier said.

Coal blocks, which were recommended for deallocation, include Ramchandi Promotional block allotted to JSPL, the source had said. These coal blocks were earlier issued show cause notices for delaying production.

Last month, the coal ministry had asked the coal block allottees to make presentation before the IMG on achievement of milestones and reasons for delays. The firms which were asked to make presentation include, Steel Authority of India Ltd (SAIL), NTPC Ltd, JSPL, Tata Power Co. Ltd and Monnet.

JSPL was asked to make presentation with regard to delaying production from its four coal blocks — Amarkunda Murgadangal in Jharkhand, Utkal B1 and Ramchandi Promotional block in Odisha and Urtan North in Madhya Pradesh. SAIL was asked to make presentation for Sitanala mine in Jharkhand, and NTPC for Parki Barwadih mine in Jharkhand and Talaipalli mine in Chhattisgarh.

The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation. The panel under the chairmanship of additional secretary in the coal ministry has members from other ministries, including steel and power.

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AERC approves 2.4 pc hike in power tariff...

 

The Assam Electricity Regulatory Commission (AERC) today announced the multi-year power tariffs for the financial years of 2013- ’14, 2014- ’15 and 2015- ’16, which will come into force from December 1.

The Commission has approved of an average tariff increase of 2.4 per cent for the financial year of 2013-’14 and has retained the fixed/demand charges at the existing level for all categories.

However, through its tariff order, the Commission has retained the tariffs of the ‘Jeevan Dhara’ category and the first slab of the ‘Domestic-A’ category (first 4 units per day or first 120 units per month) at the existing levels, with the intention of reducing the burden on these categories, and also since the level of cross-subsidy is within limits.

It needs mention here that the Government of Assam has assured a Rs 200 crore tariff-related subsidy and it has particularly mentioned Rs 1.10 per unit subsidy for the ‘Jeevan Dhara’ category and Rs 0. 70 per unit for the ‘Domestic-A’ category for the first four units per day, that is 120 units per month. This will benefit 11.27 lakh ‘Jeevan Dhara’ category consumers and 15.28 lakh ‘Domestic-A’ category consumers, said AERC sources.

In real terms, the tariff for these two categories will actually be lower than the existing tariff on account of the State Government subsidy being provided to them, the sources said. It has reduced the tariffs for the ‘Public Water Works’ category (both HT and LT) and ‘Public Lighting.’

The Commission has also reduced the tariffs for the ‘Low Tension (LT) General Purpose Supply’ category since this category, which primarily includes premises of charitable organisations, places of worship, small government offices, etc., may not be required to subsidise other categories. Further, the Commission has retained the existing tariff differential in the time of day (TOD) tariffs for different time slots during the day so as to ensure that the demand side management (DSM) and energy conservation measures are continued.

The Commission has approved of a marginal increase, that is 2.4 per cent, in tariffs of certain categories of consumers like high tension (HT) industries, tea, coffee and rubber industries, ‘Domestic-B’ category (above 5 KW- 20 KW load), while keeping in view the overall objective of maintaining the cross-subsidy within the limit of plus-20 per cent, said the sources.

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Torrent Power funded Gujarat smart-grid project: Ecolibrium...

 

Ecolibrium Energy, the energy management company floated by the Soni family, has said the smart-grid project implemented in the Gujarat Secretariat was funded by Torrent Power, a private sector distribution company, and that the state nodal agency for the energy sector, Gujarat Energy Development Agency (Geda), did not make any financial contribution to the project.

According to Chintan Soni, managing director, "To implement the project, a tri-partite MoU (memorandum of understanding) was signed between Torrent Power, Geda and Ecolibrium Energy, where it has been clearly laid out that Geda will not incur any expenses and will merely provide access to its facilities for installation of the project."

Soni further clarified, "We would also like to hereby reiterate that we did not receive our first project from Gujarat government."

When Ecolibrium approached Torrent Power for funding the project, the latter agreed. According to Soni, a separate agreement was signed with Torrent Power to detail the understanding.

Soni said the company started development of the smart grid solution in 2009-10, and had approached Geda for piloting of the technology. "We got to know about the Renewable Energy Search programme supported by Ministry of New and Renewable Energy (MNRE) and approached CIIE (Center for Innovation Incubation and Entrepreneurship) for incubation support by presenting our solution of smart grid along with our business plan in October 2009."

The screening committee at Renewable Energy Search comprising industry, academia and representatives from MNRE, accepted the proposal for incubation support at CIIE under the Renewable Energy Search programme. "To help expedite the project, in January 2010 CIIE wrote to Geda requesting it to give us a chance to implement the project. The project was carried out to pilot a useful concept - which actually resulted in savings for the Gujarat government without any investment of resources from Geda," he added.

Ecolibrium has since received a separate smart micro-grid pilot project from MNRE, which has been implemented at its Solar Energy Centre in Gurgaon.

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Kerala Solar Policy 2013 - Solar projects can use tribal land in the state...

 

The Kerala Solar Energy Policy, approved by the Cabinet on Wednesday, envisages use of tribal land for solar power projects.

The policy proposes a revenue (not profit) sharing mechanism for the landowner besides lease rentals for the land. The willingness of the landowner is mandatory.

(The policy proposals on solar installations on tribal land assume significance in view of controversy over dispossession of the land belonging to tribals in Attappady and installation of wind power units.)

The policy says that the land ownership rights shall continue to fully vest with the original owner (tribal). The developer shall have only rights to set up and operate the project. The landowner will have the right to use land for agricultural purpose. Revenue sharing based on the power generated, possibly in the range not below 5 per cent, is envisaged.

The payment of share of revenue, it adds, shall be made directly to the bank account of the landowner. For this purpose, a tripartite agreement has to be entered into among the developer, landowner, and the Kerala State Electricity Board (KSEB). Only lands which do not have an immediate productive use shall be thus identified or permitted.

Developer’s role

It says that the prime responsibility for identifying land for renewable energy shall be with the developer. The government shall endeavour to assess clearly the land suitable for the development of solar installations in the possession of either the government or the private party or tribal individuals.

The policy proposes that the KSEB shall create evacuation facility beyond the pooling station for the projects with a capacity of less than or equal to 10 MW. For higher capacity plants, the KSEB shall construct evacuation facility on deposit work basis.

There shall be no open access charges for solar projects for wheeling power within the State. Wheeling and transmission and distribution losses will not be applicable for the captive solar generators within the State. The energy generated shall be fully exempted from electricity duty.

The Agency for Non-Convention Energy and Rural Technology (Anert) will be the nodal agency for non-conventional energy.

Administration of the policy will be entrusted with a State-level empowered committee headed by the Additional Chief Secretary or the Principal Secretary in charge of power.

The Kerala State Electricity Regulatory Commission will notify the normative feed-in-tariff of solar power procurement by the KSEB in case of off-site commercial installations.

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BEST started supplying 20 MW solar power to Mumbai...

 

With the supply of 20 MW solar power to the island city, the BEST has taken a big step towards providing green energy to its consumers. Sources said the power was being given at a price cheaper than market rates.

"We have started feeding our grid with 1.85 million units of solar power, generated in October, which is being procured through renewable energy sources. We expect to generate solar energy up to 2.58 million units every month," said BEST general manager Om Prakash Gupta.

According to MERC regulations for renewable energy purchase obligations, every utility in the state is mandated to procure certain percentage of its power requirement through renewable energy sources. For solar power, this percentage is 0.25% from 2010-11 to 2012-13 and 0.5% from 2013-14 to 2015-16.

As approved by the BEST committee in May, the power utility firm entered into a deal with M/s Welspun Energy Pvt Ltd for generating 20 MW solar power. "The BEST has taken steps to procure solar power, helping the green cause," BEST senior spokesperson A S Tamboli said.

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