Final price bids for Odisha, Tamil Nadu UMPPs to open on 26 February…

 

The final price bids for the two ultra mega power projects (UMPP)—Odisha and Tamil Nadu—will open on 26 February, power minister Jyotiraditya Scindia said on Thursday.

The minister said that the projects will be awarded to the successful bidders post opening of the financial bids.

All the nine applicants for Odisha UMPP and eight applicants for Cheyyur UMPP (Tamil Nadu) who have applied for request for qualification (RFQ) have been shortlisted for issuance of request for proposal (RFP), or the final price bids.

Power Finance Corporation (PFC) is the nodal agency for UMPPs in the country. UMPP is coal-based thermal power project that have 4,000 megawatt (MW) of generation capacity.

The apex evaluation committees cleared all the technical bids in the first round. Both the committees are headed by V.K. Shunglu, ex-CAG.

NTPC, Tata Power, NHPC, Adani Power, JSW Energy, Jindal Power (an arm of Jindal Steel and Power), Sterlite Infraventures, CLP India and Larsen & Toubro (L&T) had submitted applications for the Odisha project.

NTPC, Adani Power, CLP India, GMR Energy, Jindal Power, JSW Energy, L&T and Sterlite Infraventures had submitted bids for the Cheyyur UMPP in Tamil Nadu.

Odisha UMPP is a pit-head power project. Based on domestic coal to be sourced from allocated captive coal blocks, it is expected to cost around Rs25,000 crore.

The Cheyyur UMPP is a coastal power project, based on imported coal, with an expected investment of about Rs24,200 crore.

So far, four UMPPs have been awarded, of which Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand)—have been bagged by Reliance Power. Tata Power is operating the Mundra UMPP in Gujarat.

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Power Grid to invest Rs 472 cr in two projects…

 

Power Grid Corporation of India will invest more than Rs 472 crore in two projects.

The investment plans were approved by the transmission utility's board of directors at their meeting held on January 13, PGCIL said in a regulatory filing today.

The two projects are estimated to cost Rs 472.58 crore.

An investment of Rs 374.63 crore will be made in 'Phase-I of Unified Real Time Dynamic State Measurement (URTDSM) Project', which is expected to be completed in 27 months.

Besides, the state-owned company will invest Rs 97.95 crore in 'Transmission System associated with contingency plan for evacuation of power from IL&FS (2x800 MW)'. This project is expected to be commissioned within 18 months from the date of investment approval.

Shares of the company rose nearly 1% to Rs 98.30 in afternoon trade on the BSE.

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AP to ink MoU with UK govt on energy conservation…

 

Andhra Pradesh government will soon sign a memorandum of understanding with the government of UK for collaboration on energy efficiency and low-carbon growth.

The MoU will see UK extend technical support for the state to implement the best practices vis-a-vis energy efficiency and conservation.

With the assistance of the British High Commission, AP government is also preparing a comprehensive roadmap for improving energy efficiency, said the Chief Secretary and State Energy Conservation Mission (SECM) Chairman, Prasanna Kumar Mohanty.

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Dec quarter likely to be weak for Power Utilities sector: Credit Suisse…

 

The third quarter ended December 2013 is likely to be weak one for the utilities sector in the country, according to outlook presented by Credit Suisse India Research.

Providing insight into the third quarter ahead of the corporate sector coming out with their earnings reports, Credit Suisse expects states, “We expect the third quarter of 2013 to be another weak quarter for most Indian utilities. While Adani Power, JPVL, KSK and Lanco are likely to report losses, NTPC and NHPC's profitability is expected to decline anywhere between 1-5 per cent year on year. And that of the Tata Power's profitability is expected to decline year on year.”

Adani Power is likely to report a loss as Mundra project Power purchase agreements (PPAs) have to be honoured status quo pending Central Electricity Regulatory Commission (CERC's) final decision on compensatory tariff. For Lanco, low plant load factor (PLF) and Griffin's continuing losses could result in loss in during third quarter.

With regards to NTPC, the analysts from Credit Suisse in their report state that the recurring profit after tax (PAT) to remain almost flat year on year. The status on captive coal production, imported coal supplies to Farakka/Kahalgaon projects, railway infrastructure issues at Mouda project along with any update on discussions with CERC on upcoming tariff regulations are key factors to watch.

In the case of Reliance Power’s Rosa project profitability is expected to remain robust but with Sasan ultra mega power project (UUMP's) units presently getting capitalised, recurring profit is expected to grow.

In the case of Tata Power, losses in Mundra UMPP's are expected to continue. Pending CERC's final decision and the profitability in the coal business is expected to decline due to correction in international coal prices.

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KEC International gets Rs 1,215 cr order from India, overseas…

 

The KEC International Ltd, which provides EPC solutions to infrastructure sector, has got various orders worth Rs 1,215 crore for its transmission and cable businesses from both India and overseas.

The transmission business constitutes Rs 1,148 crore of the total order while the remaining Rs 67 crore is from the cable business, KEC International, a RPG Group firm, today said in a statement.

In the transmission business, the biggest order worth Rs 708 crore is from Saudi Electricity Company for design, supply and construction of 380 kV circuit overhead transmission line.

KEC International said its wholly-owned subsidiary SAE Towers has got Rs 196 crore orders from the US and Latin American countries.

Bhutan Power Corporation has awarded KEC International a Rs 180 crore order for supply and construction of 400 kV double-circuit transmission line.

Nepal Electricity Authority has placed a Rs 32-crore order for a 132kV transmission line.

In India, the Rs 32-crore order is from Power Grid Corporation for erecting a transmission line in West Bengal.

"In the cable business, the company has secured orders for the supply of power and telecom cables. The total value of these orders is Rs 67 crore," KEC International said.

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Himachal cabinet approves sale of power to Tata Power Trading Company Limited…

 

The Himachal Pradesh cabinet on Thursday approved the selection of Power Trading Corporation of India Limited and Tata Power Trading Company Limited (TPCL) for a year for the sale of government's entitlement of power from various hydroelectric projects.

In a meeting chaired by chief minister Virbhadra Singh, the cabinet decided that the trading margin might be increased if better rates for power sale were received.

The cabinet also gave its nod to the establishment of a government engineering college at Nagrota Bagwan in Kangra district. This college will have 40 seats each in mechanical engineering, electronics and communication engineering and electrical engineering.

Giving the impetus to health care, the cabinet also approved primary health centres (PHC) at Sheelghat, Shimla, and Patta-Baravery in Solan district, and a health sub-centre at Dattowal village in Solan district.

The government also sanctioned industrial training institutes (ITI) for Gagret, Balh, Manali and Patta Mehlog with two trades from the next academic session along with creation of posts. A veterinary dispensary at Navi, Shimla district, also got the cabinet's nod along with filling up of a post of veterinary pharmacist and a post of animal husbandry assistant.

The state cabinet also accorded approval to the establishment of Poorna Shakti Kendra (PSK) project in Solan district.

Besides, the government also approved filling up of 100 vacant posts of ayurvedic medical officers in the ayurveda department on contract basis, and filling up of 50 posts of clerks on contract basis by direct recruitment through Himachal Pradesh Subordinate Service Selection Board, Hamirpur, against the vacant posts of senior assistants in relaxation of recruitment and promotion rules and keeping equivalent number of posts in senior assistants in abeyance.

The cabinet's nod was also given to eight posts of lecturers in IGMC Government Dental College, Shimla, by direct recruitment through Himachal Pradesh Public Service Commission (HPPSC). State government also accorded approval to fill up the post of director, sainik welfare department, on regular basis through the HPPSC, besides filling up of 8 vacant posts of deputy directors (Class 1) in the sainik welfare department through direct recruitment on contract basis. The approval was accorded to the draft notification of Himachal Pradesh Raj (Appointment and Conditions of Service of Panchayat Sahayaks in Zila Parishads) Rules, 2014.

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Andhra Pradesh to offer incentives to energy saving industries…

 

The Andhra Pradesh Government is working on modalities to offer incentives to industries who bring about savings in their process through energy efficiency measures.

A Green Factory Code will also be shortly announced whose objective is to encourage savings in high energy consuming industrial establishments.

During the Fifth State Energy Conservation Mission meeting held here today, P.K.Mohanty, State Chief Secretary, highlighted the importance of energy saving and various measures initiated by the Government.

During the meeting, he said, “Energy intensity, which is measure of energy required for unit of GDP growth in India is twice that of other developed countries. Reducing energy intensity must be our top priority by improving energy efficiency.”

As per the integrated energy policy of the planning commission, the electricity saving potential per year on demand side in India is about 15 per cent (15 billion units) of the total electricity demand. By improving efficiency and bringing down losses, a significant demand-supply gap could be met, he said.

The State Government expects to facilitate the addition of about 1000 mw of wind energy and 500 mw of solar energy every year during the XII Plan period.

The Government is planning to utilise the entire force of self help groups for creation of awareness about energy efficiency programmes. The State has about 10 lakh self help groups with 1.2 crore women members.

A memorandum of understanding with the UK Government will be signed shortly for sharing global best practices in energy savings. And a comprehensive roadmap for energy efficiency improvement is under preparation.

As a part of Government move to encourage energy saving, the Confederation of Indian Industry has been requested to institute awards for industries who adopt best energy efficient management practices.

A Japanese company has made a baseline study in Cherlapally industrial estate area on energy efficiency measures. In about six months, the model practiced here is planned to be replicated in other industrial areas of the State.

The Mission has come out with broad areas of savings sector wise. As per the Mission’s calculations, there is potential to save about 15,105 million units across domestic, industrial, Government and local bodies and in agriculture sectors.

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FinMin rejects power ministry's plan to make gas projects viable through subsidy…

 

The finance ministry has rejected a proposal by its power counterpart for making stranded gas-based projects viable through subsidizing high cost imported fuel.

“We had proposed subsidizing the high cost of imported Re-gasified Liquefied Natural Gas (R-LNG) through pooling. The finance ministry has turned down the proposal last week,” power secretary P K Sinha told reporters at the sidelines of the ministry’s media interaction. The ministry is now reworking the proposal.

Speaking at the event, power minister Jyotiraditya Scindia said the government is mulling seeking a relief mechanism for the gas-projects which have been stranded for want of lack of availability and high cost of fuel.

He added that power generated using costly imported Re-gasified Liquefied Natural Gas (RLNG) will not get scheduled as the output prices are regulated. “Power sector will not be able to bear a gas cost of more than $5 per million metric british thermal units (mmbtu).”

Power projects are facing an acute gas shortage owing to dwindling output from Reliance Industries’ KG-D6 block off Andhra coast. The government has notified an increase in prices under a formula that will push up gas prices from the current $4.2 per mmbtu to $8.4 an mmbtu.

The new price regime will kick in from April 1 and be applicable for five years. Every quarter, prices will be reviewed and adjusted, depending on how global prices move. Scindia said the sector will get additional gas of around 8.9 mmscmd over the next three years helping ease the crunch.

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Cos not having green nod to lose coal block; notice to 61 firms…

 

The government has decided to deallocate all the captive coal blocks which have not obtained environment and in-principle forest clearances and has issued show-cause notice to allocatees of 61 such mines.

The move comes in the backdrop of the Supreme Court posing some tough questions on allocation process for coal blocks and questioning the Centre over the functioning of the screening committee that made allotment recommendations.

“The following coal blocks will be deallocated… Coal blocks where environmental clearance and forest clearance stage-I (in-principle) have not been obtained,” S K Shahi, Director in the Coal Ministry, said in a letter to allocatees of 61 blocks.

Coal blocks, which are unexplored or partially explored at the time of allocation and where prospecting licence (PL) has not been obtained, will also be cancelled, it said.

The letter further added that in cases of coal blocks where PL has been issued but geological reports have not been prepared will also be cancelled.

Tata Steel, ArcelorMittal, Hindalco, Jindal Steel and Power, JSW Steel, Essar Power, Adani Power, Tata Power, GVK Power and Infrastructure, Ultratech Cement, Reliance Energy, Sterlite Energy and JP Associates are some of the allocatees who feature in the list of 61.

Some blocks, which are already under the scrutiny of CBI such as Mahan to Essar Power and Hindalco, Brinda Sasai and Meral to Abhijeet Infrastructure, Bander to AMR Iron and Steel, also figure in the list.

Fatehpur coal block, allocated to SKS Ispat & Power Ltd, the company allegedly linked to former Union Minister Subodh Kant Sahay, is also a part of the list.

The allocatees have been given time till February 5 to obtain the requisite clearances and produce proofs in support of approvals.

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