Suzlon gets 23 mw worth wind turbine order from Gail India…

Suzlon Energy has received an order from Gail [India] to supply 11 wind turbines with a total 23 mega watt capacity to enhance the gas utility's captive power requirements. This is the fourth order that Suzlon has received from Gail and the turbines will be commissioned in the states of Tamil Nadu and Karnataka by the end of the current financial year [2011-12], the company said. Following this order, Gail's total wind power capacity with Suzlon will exceed 67 mw, it said.

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150 MW solar power plant to be set up at Dhule soon…

• A 150 MW solar power plant will be set up in Dhule with financial assistance of Euro 250 million from KFW, a German investment bank. The project is claimed to be one of the biggest in the country. Speaking to TOI on conditions of anonymity, a senior director from Maharashtra State Power Generation Company Ltd said, "This would be one of the first solar power generation plants for which finance is coming from abroad. The total cost of the project is Rs 1,800 crore, of which some Rs 1,700 crore (Euro 250 million) is being financ ed by KFW and the state government will pump in the rest of the amount." The project is expected to start generation by the end of 2012. This would be the first solar project that will be connected to the national grid, he added.

• Photo voltaic cells will be used in the solar panels for storing power. The cells are durable and have higher efficiency than the silicon wafers. The state government has signed the supply contract in May this year with manufacturers of solar power panels. Lanco Solar and Juwi Renewable India Ltd will jointly supply crystalline technology-based photovoltaic solar panels for building a 75 MW power plant. The supply for the remaining 75 MW plant would come from other two partners, one of which is a Spanish company.

• The efficiency of the power panels is 20% of the total heat absorption, said the official. The proposal for the project came from the Union government, where the requirements for setting up a power plant were high radiation, bright light and dry climatic conditions. Dhule is one of the few districts in the state that has suitable climatic conditions. Data received from National Aeronautics and Space Administration ( Nasa) about radiation from solar rays revealed that Dhule will have maximum days with bright sunlight and heat for better power generation as it falls in the same line of radiation level as Rajasthan and Gujarat, said the official.

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Sunborne Energy mulls Rs 6 billion solar thermal plant in South India…

• Sunborne Energy, a Haryana-based solar power producer backed by General Catalyst Partners and Khosla Ventures, is contemplating setti ng up a 50-Mw solar thermal power project in Andhra Pradesh for an investment in the range of Rs 500 crore and Rs 600 crore (including land cost). The company has already acquired 200 acres in Andhra Pradesh and is now trying to work it out with the state government to set up the plant.

• "We are keenly watching the policy framework developments in the state. As and when we get a nod from the Andhra Pradesh government, we will go for it. We are technology-agnostic and we want to go with a technology (photo voltaic, crystalline or thin film) which is reliable and bankable, and is closer to the lowest cost of energy (LCOE)," Gagan Vermani, executive director and chief operating officer, said. Vermani said, they had seen Rajasthan, Gujarat and Karnataka coming up with some sort of policies, besides the National Solar Mission. "In AP, we have to wait for the right (policy) environment," he said.

• Sunborne, which had so far rais ed $25 million in a two-round funding from General Catalyst Partners, recently signed a power purchase agreement with the Gujarat government, for a 50-Mw solar thermal power plant and is expecting the project to be commissioned in the next couple of months. Also in the pipeline is a 5-Mw power project in Rajasthan under the MNRE scheme, to be completed by March 2012. "We are looking to expand aggressively and want to achieve a 20-Mw on-ground installed capacity by the end of this financial year and reach 200 Mw (only photo voltaic) in the next fiscal," Vermani said, adding the company was targeting a grid-parity by 2014 in photo voltaic by 2014.

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Green Infra commissions 10-MW solar plant in Gujarat…

• Green Infra Ltd, a renewable energy-focused power generation company, has commissioned its first 10-megawatt (MW) solar photovoltaic (PV) power plant in village Mervadar in Rajkot district of Gujarat. The company invested Rs 130 crore in the facility and has commissioned it ahead of its schedule, according to a release. This is the first solar plant to be commissioned under the second phase of Gujarat's solar policy, Mr Shiv Nimbargi, Managing Director and CEO, said. The solar PV plant is expected to generate 16 million units of energy annually, supplying electricity to over 4,000 homes and saving 12,000 tonnes of carbon emissions.

• With the commissioning of this plant, Green Infra's operating capacity now stands at 174 MW. The company is on track to implement an additional 150 MW by the end of this financial year, with a longer term plan to reach total generating capacity of 3,000 MW by 2015 across several renewable energy secto rs in a diversified portfolio including wind, solar, small hydro, biomass and energy efficiency sectors. Incubated by IDFC Private Equity Funds in 2008, Green Infra now has 174 MW of operating assets under management in Tamil Nadu, Karnataka, Maharashtra and Gujarat.

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PFS sanctions Rs 7.16 bn to 4 power projects…

• PFS has sanctioned financial assistance aggregating to RS 7.16 billion to 4 power projects in the current quarter taking the aggregate amount of loan sanctions to Rs 22.55 billion till date in FY12. This exceeds the aggregate amount sanctioned during the entire FY11 which was Rs 16.58 billion. Similar growth momentum has also been maintained in different key parameters of the company. The gross revenue rec orded in H1 FY12 was Rs 970.7 million, which is 89% of the gross revenue recorded in the entire FY11.

• Similarly, interest income on debt recorded in H1 FY11 was Rs 540.9 million which is 73% of the interest income on debt in entire FY11. Profit before tax (PBT) and profit after tax (PAT) during H1 FY12 records growth of 36% and 29% respectively over the corresponding figures of H1 FY11 despite foreign exchange translation loss on ECBs and mark to market loss on outstanding derivative contracts undertaken for hedging of ECBs amounting to Rs 43.6 million during H1 FY12.

• These are not the actual losses as the ECB drawls are for long term tenure of 12 years with 3 years moratorium for principal repayment. However, the provision, though not actual loss, was required to be provided for in terms of accounting standards applicable in India. If adjusted for the same, PAT for H1 FY12 would have been Rs 358.2 million which is 97% of PAT for the entire FY11. It may be mentioned that post Q2, on October 05, 2011, the company has concluded sale of investment pursuant to a ``Put Option`` exercised by the company during the current quarter. In accordance with the applicable accounting standards, gain of Rs 476.1 million arising on this transaction would be recognized in the subsequent quarter i.e. Q3.

• Another development subsequent to Q2 FY12 is that the company has executed necessary agreements for divesting its part stake in Indian Energy Exchange (IEX). Application for FIPB approval is being made. It may be mentioned that during FY11, PFS divested 4.88% stake in IEX at Rs 115.41 a share which was subscribed by PFS at face value of Rs 10 a share. PFS has loan pipeline of projects both for long term and mezzanine funding, which offers potential for additional sanction of more than Rs 40 billion. The effective undisbursed debt sanction as at the end of H1 FY12 was Rs 31.02 billi on. Increase in exposure norms on PFS becoming IFC, and increase in net worth on capital raising through IPO in March 2011, has increased the lending business of PFS significantly.

• The outstanding debt amounting to Rs 9.91 billion as at the end of H1 FY12 recorded increase of 63% over the outstanding debt as at the end of H1 FY11. Normally, the pace of disbursement is more in the later part of the financial year. PFS` portfolio of projects includes IPPs, and PFS has no exposure to distribution companies. There are NIL NPAs as on date. There is increasing number of proposals for mezzanine/short-term funding and for renewable projects, which may result in to quicker disbursement. The growth in the business of PFS is despite the stricter due diligence process followed for appraising the projects under prevailing risk environment for the power projects.

• Because of the low-cost resources available and ability to pass-through i ncreased interest cost, the Net Interest Margin (NIM) stands at 6.57% for Q2 FY12 and spread at 3.88%. Net Interest Income considered for NIM does not include interest income of Rs 54 million earned on treasury float on temporary surplus funds. NIM and Spread for Q1 FY12 were 4.97% and 3.03% respectively. The average cost of borrowings in Q2 FY12 has reduced to 10.22% from 10.50% in Q1 FY12.

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PTC India Financial Services eyes Rs 500 million from stake sale in energy exchange…

• Infrastructure lender PTC India Financial Services (PFS) expects to garner as much as Rs 50 crore from sale of over 16% stake in the country's largest power bourse, Indian Energy Exchange (IEX). PFS, which currently holds 21.12% stake in the power exchange, would probably divest more than 16% to one or more overseas players, sources said. On a conservative basis, the divestment of over 16% stake is expected to mop up about Rs 45 to 50 crore. The sale is expected to be complete by end of December, they added. he promoters of IEX include diversified group Financial Technologies (India) Ltd and PFS, a group company of leading power trading solutions provider PTC India.

• PFS has already approached the Foreign Investment Promotion Board (FIPB) for the planned stake divestment. The proposed stake sale is part of efforts to comply with the regulatory requirements . As per the Central Electricity Regulatory Commission (CERC) norms, an entity trading in electricity cannot have more than five% in a power exchange. Without divulging the names of prospective buyers, sources said the share sale by PFS would also help allay concerns of the investors about the overall power sector and the power exchange business, in particular.

• Last fiscal, PFS had sold 4.88% stake in IEX at a price of Rs 115.41 per share and brought down its shareholding to 21.12%. The stake sale and fetched PFS about Rs 14 crore at that time. Other key shareholders of IEX include Adani Enterprises, Infrastructure Development Finance Company (IDFC), Lanco Infratech, Reliance Energy, Rural Electrification Corporation (REC) and Tata Power Company. A non-banking finance company, PFS has sanctioned loans worth Rs 2,255 crore so far this fiscal. The company posted a 11% increase in profit after tax at Rs 22.64 crore for the three months ended September .

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Neyveli Lignite set to light 250 MW unit…

• Integrated mining-cum-power generation company Neyveli Lignite Corporation (NLC) is planning to light up one of the two 250 MW Circulating Fluidised Bed Combustion (CFBC) boilers Friday, said a senior official. "We are planning to light one of the boilers Nov 25. We hope to generate 150 MW initially and gradually increase that to the full capacity," an official told media preferring anonymity. According to officials, the second unit is expected to be commissioned next March once the unit gets stabilised after addressing the teething problems.

• He said officials from the Central Electricity Authority (CEA) had visited the unit recently. NLC officials said power generation will have to be increased gradually as the technology is new and issues have to be resolved. Officials said generation in the first unit was increased up to 150 MW during the test phase while issues were plugged d uring the process. Power equipment major Bharat Heavy Electricals Ltd ( BHEL) had supplied four CFBC boilers for NLC. While the two 250 MW units are located in its home town and near the pit head at Neyveli, the other two units - 2x125 MW - are in Rajasthan. The two units at Rajasthan were dedicated to the nation in June 2010, but the boilers started facing problems and power generation had to be halted.

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NTPC floats tender for importing 4 million tonnes of coal - Move to bridge shortfall in domestic supplies…

• NTPC Ltd has floated a tender on Monday for importing 4 million tonnes of coal to bridge the shortfall of the fuel from domestic sources. The country's biggest power producer has decided to import the coal directly, rather than depend on designated trading agencies, to cut down on delays. Coming at a time when the rupee has weakened sharply against the dollar, higher coal imports by NTPC could spell bad news for consumers as the move could impact power tariffs. NTPC consumes around 164 million tonnes of coal a year to fire over two-thirds of its installed generation capacity of around 35,000 MW.

• The imported coal is to be used across 14 of the power major's thermal stations in the coming months. NTPC is already in a pact to import around 12 million tonnes of coal through State Trading Corporation. The new tender, along with the STC contract, would make up the company's coal import target of 16 million tonnes set for the current fiscal.

• In the coming future, NTPC is looking at striking long-term contracts spanning 25 years for sourcing 10-15 million tonnes to ensure steady supplies and lower price volatility. NTPC' s average imported coal blending during 2010-11 was close to 8 per cent in comparison to about 6.5 per cent in the previous year. This could be much higher this year, as the domestic coal shortage is only getting worse and imports are surging. In the long-term, the state-owned power utility aims to meet about 20 per cent of its coal needs through captive mines by 2017. The Centre has allotted seven mines to NTPC, including two blocks to be developed through joint ventures.

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Power reform programme to be implemented soon…

• The Restructured Accelerated Power Development and Reform Programme (R-APDRP) of UT electricity department will soon be implemented as the Joint Electricity Regulatory Commission ( JERC) has accorded its approval to the department for availing the funds from the central government through the Power Finance Corporation (PFC). These funds will be used towards the implementation of Part-A of R-APDRP scheme for creation of reliable and automated systems with IT intervention for sustained collect ion of accurate baseline data.

• R-APDRP will have projects which would be undertaken in two parts - part A and part B. Part-A includes the projects for establishment of baseline data and IT applications for energy accounting/auditing and setting up IT based consumer service centres. Part-B shall include regular distribution strengthening projects. Part-A also covers SCADA implementation which facilitates centralized control of power supply position in Chandigarh. PFC has been appointed as a nodal agency for this Central Government funded scheme.

• The Government of India will provide 100% loan for part-A of the scheme and the entire amount of loan for it shall be converted into a grant after establishment of required baseline data system within a stipulated time frame. According to electricity department officials, the R-APDRP system will sort out various problems, while adding that the data related to meters and electricity consumption in various places will be available at the click of a mouse with the management information system. Also areas where there will be a power cut would also be identified early.

• A total of 17 modules are to be implemented in part-A, making most of the work of the electricity department computerized and web-based. The consumer will get to know the progress of any work by logging on to the electricity department's website. The centralized customer care centre will also be established which will work 24X7. The consumer can approach the centre at any time with his or her complaint and would get a number for further reference. Touch screen kiosks will also be established through which consumers will be able to get any information they want and pay their bills at any time.

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Government goes 'soft' on National Hydroelectric Power Corporation…

• Even as the deadline to National Hydroelectric Power Corporation (NHPC) for completing formalities to continue operations for power generation in the state has expired, Jammu and Kashmir go vernment is yet to take any action under law to proceed on the matter. Under State Water Resources Act, the action by the government could range from penalizing the Corporation to even stopping water supply to its projects. Officials said under the Act the Corporation, which is setting up another five to seven projects in the state, had to complete formalities including obtaining license from Irrigation Department within one year to harness state water resources for power generation from four power projects presently run by it -480 MWs Uri-I, 390 MWs Dulhasti, 690 MWs Salal and 120 MWs Sewa-II.

• Though the deadline expired on November 12, state government has taken a casual approach after blowing trumpet on the issue for almost a year. Talking to Greater Kashmir, Minister for Irrigation Taj Mohi-ud-Din said they have sent notices to the NHPC General Managers of four power projects. "We have made it clear in the notices that the Corporation has not p rocessed the licenses for continuing operation and it will be doing so illegally, making it liable for penalties under the law," Taj said. Asked what is stopping government from taking action, Taj said law will take its own course. "The department will take action step by step as per the law. We will not sit silent," he said.

• The minister said he has already written to Chief Minister Omar Abdullah who is also the Power Minister, to take up with the Government of India the return of two power projects, Uri-I and Salal, from NHPC. "There is a well defined condition on it," Taj said. Talking to Greater Kashmir, civil society activist and former chairman FCIK, Shakeel Qalander, said the documents obtained by them from NHPC, Union Power Ministry and state government shows that NHPC is "illegally and unconstitutionally controlling the projects." "A state minister had announced publicly that government will take over control of the projects if NHPC failed to complete formalities within the set deadline. We fail to understand what is stopping the government from honoring its own commitment and the law," he said. "Any new correspondence with the Corporation will be a mere eye wash," he alleged.

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Power cuts irk industrialists in Punjab…

• Despite a marked dip in temperature, industrial sector of the city continues to suffer from long power cuts. The Punjab State Power Corporation Limited (PSPCL) has imposed one da y weekly off on general industry and two day weekly off on arc and induction furnace. According to sources in the industry, the power board is suffering from shortage of funds due to which they are forced to impose hours of power cuts. PSPCL authorities argue that the power department is facing power generation shortage in the national grids and at present there is a gap of 200MW between demand and supply.

• In the notice issued by PSPCL, general industrial consumers being fed category- 2 feeders have been directed to observe one weekly off day of 12 hours while arc/induction and rolling mills to observe two weekly off days of 12 hours each, till further directions. These orders have completely irked the industrialists who were hoping to get rid of power woes in winter. Federation of Association of Small Industry of India ( FASII) regional chairman Badish Jindal said, "The industry seems to be stuck with power woes and if such a situation continues f or some more time it would become difficult for us to sustain. This is clearly the fault of power department since they are facing a serious shortage of funds and were also unable to produce energy from thermal plants as it was costing them higher.''

• Punjab Pradesh Beopar Mandal general secretary Mahinder Aggarwal, said, "Since September the power department has been imposing weekly offs on and off, disturbing our entire schedule. In a single week, they issue two or three circulars, on an average, imposing or rolling back weekly offs.'' He added, "The entire power distribution system is in a pathetic condition as most of the employees remain on strike instead of performing their duties. In order to smoothen things the first and foremost thing to do is improve the department working.'' When contacted, director distribution of PSPCL, A K Verma, said, "Power generation from Hydel, Thermal and even national grid has reduced due to which we have schedul ed weekly off days for industries. Earlier, industry used to purchase energy from other states through open access but now they have stopped doing the same therefore we are facing problems.''

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Uncertainties over availability of fuel, land and water leave projects out of power…

• India is heading for a huge power deficit in three years as developers have slowed execution of projects worth about Rs 1,50,000 crore due to uncertainty over availability of fuel, land and water, industry and government officials said. Many of these projects are unable to progress because of regulatory and fuel-supply obstacles, while in other cases the developers have consciously slowed down project implementation because of uncertainties surrounding the sector, officials said. The government is worried as PSU banks have high exposure to the projects and their non-execution could mean black outs in future.

• However, companies with allotted coal blocks plan to cash in on the opportunity by selling power in the open market. Power companies worry the government over lesser draw down of loans. Finance minister Pranab Mukherjee expressed concern over slow progress on Rs 1,74,000 crore infrastructure projects of which 90% belong to the power sector. Typically a thermal power project requires Rs 5 crore per megawatt. Mukherjee had in September reviewed progress on loans disbursals by projects that borrowed more than Rs 100 crore. Industry experts said disbursals were less even as sanctions to major power projects in the current year remained satisfactory.

• Despite banks' reluctance, power generation projects worth about Rs 85,000 crore h ave achieved financial closure so far in the current fiscal. Hinduja group, Jindal Power, Adani Power, GMR Energy and KSK Energy have been able to secure financial closure for their projects. A power ministry official said slowing down by developers was natural as companies would want to be certain about fuel availability. The disbursements are affected as there has been no coal supply agreement in the past 18 months. Coal production declined by 17.8% in September and by 4.8% during April-September compared to a marginal growth of 0.2% during the same period last fiscal. Electricity generation grew by 9.3% during April-September 2011-12 as against 4.1% growth during same period of 2010-11.

• Coal deficit is likely to grow to 137 million tonnes by this fiscal. A coal ministry official said securing land and regulator clearances were thwarting Coal India's expansion plans. Imported coal-based projects are also hit due to changes in regulatory mechanis m in exporting nations. Monnet Ispat & Energy executive vice-chairman and managing director Sandeep Jajodia said the company expects acute power shortage in 2014-15 as many of the proposed projects may not see light of the day due to different reasons. The company proposes to kickstart a 660-mw unit in Orissa with attached coalmine to sell power in the open market. A Lanco Infratech executive said the country pushed for development without its backend in order.

• "Banks are extremely wary of lending as every power generating company is getting late payments from distribution companies. Secondly, coal that is the primary source of energy is unavailable." However, the Lanco executive said that a recent order by appellate tribunal for electricity asking state distribution utilities to revise tariff every year comes as a relief for the power sector. The tribunal in its order has said that every state commission has to ensure that annual performance revi ew, accounting of past expenses and annual revenue requirement and tariff determination is conducted on year to year basis as per specified time schedule.

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J&K to raise funds from the markets for buying Salal and Uri power projects from NHPC: Chief Minister…

• The Jammu and Kashmir Chief Minister, Mr Omar Abdullah, on Monday said the State would raise funds from the markets for buying Salal and Uri power projects from NHPC. "It is an ongoing process... we will raise funds from the market for paying NHPC the depreciated price of these projects," Mr Abdullah said on the sidelines of a function.

• The State Government had expressed its intention of taking back the two power projects - Salal (690 MW) and Uri (390 MW) - from National Hydro Power Corporation (NHPC) which is seeking nearly Rs 2,600 crore as compensation for handing over these projects. Mr Abdullah sought to dispel the notion that the State Government had entered into a confrontation with NHPC over water usage levied on power generators in the state.

• "There is no confrontation with NHPC... 50 per cent of the profit of NHPC comes from the power generated in the State. So, the State is also entitled to its share of resources. We are even levying the State-run Power Development Corporation and other private power producers and not just the NHPC," he added. Mr Abdullah also said his governme nt had launched various mega, medium and small projects in the power sector with the aim of generating 4,000-5,000 MW of additional power within the next seven years and help the growth and development of all sectors in the State.

• He said huge losses incurred by the State on account of power purchases, which have reached Rs 2,000 crore, were affecting the development and welfare schemes of the State. He said while the Centre has been liberal in funding the State, it cannot go on forever. "Every year, I have to cut a sorry figure for such huge losses. I am not saying we can overcome this problem overnight but let us reduce the losses this year to just Rs 1,000 crore and to Rs 500 crore by next year. The additional funds will be spent on development then," he added.

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