2,66,000 MW Renewable Energy Projects commitment given by 293 companies

 

During the first Renewable Energy Global Investors Meet (RE-Invest), commitment to develop as much as 2,66,000 MW of Renewable Energy Projects has been given by around 293 companies. 

Some of them have also assured to put up equipment manufacturing plants as well.

 

• Renewable energy companies including Suzlon and Gamesa have committed to manufacture equipment to help generate 11,000 MW and 7,500 MW of power respectively to be used in the non conventional energy side.
• Country's largest power producer NTPC has also said it would generate 10,000 MW of power through green sources in the next five years.
• Among others are Welspun Energy with a target to generate 11,000 MW renewable energy, followed by ReNew Power 11,500 MW capacity, Reliance Power 6,000 MW, Hindustan Powerprojects 10,000 MW and Sun Edison 15,000 MW.

Country's biggest lender SBI has said it will finance 15,000 mw renewable energy over the next five years.

Source

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Reliance Power's Jharkhand UMPP proposal gets CCI nod…

 

Cabinet Committee on Investment has cleared Reliance Power's Tilaiya ultra mega power project in Jharkhand, sources said.

RPower, according to them, may not have to provide non-forest land to compensate for the loss of forest land acquired for the proposed plant.

Sources said the company's 4,000 MW Tilaiya plant is now expected to be treated on a par with the other public sector projects and therefore would be exempted from providing compensatory afforestation for the loss of forest land.

At present, only central government or public sector undertakings have exemption from the obligation to provide non-forest land.

Tilaiya power plant is to be executed by a Special Purpose Vehicle (SPV), Jharkhand Integrated Power Ltd, which was handed over to Reliance Power in January 2009 by Power Finance Corporation -- the nodal agency for UMPPs.

Tilaiya would be the fourth UMPP to be awarded to a developer. Earlier, two UMPPs bagged by Reliance Power are those of Sasan (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh). Tata Power is operating the Mundra UMPP in Gujarat.

UMPP is a big-size coal-based power plant with at least 4,000 MW capacity and is built at an approximate cost of Rs 25,000 crore.

CCI, headed by Prime Minister Manmohan Singh, aims to fast-track major projects and help boost investor sentiment.

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Reliance Power commissions boiler at Sasan plant…

 

Reliance Power  has announced that the equipment for the third 660 MW unit at the 3,960 MW Sasan Ultra Mega Power Project in Madhya Pradesh has started functioning.

"The boiler, for its third 660 MW unit at the 3,960 MW Sasan Ultra Mega Power Project, has been commissioned," the company said in a statement. The first 660 MW unit of the Sasan UMPP had been commissioned in March 2013 while the second unit was synchronised to the grid in December 2013.

Meanwhile, coal production has already commenced from the 20 million tonnes per annum capacity Moher and Moher-Amlohri coal mines, allotted for the Sasan plant. Shares of the company were trading at Rs 67.50, up 1.43 per cent on the BSE. Reliance Power stock price On January 13, 2014, Reliance Power closed at Rs 67.35, up Rs 0.80, or 1.20 percent.

The 52-week high of the share was Rs 98.50 and the 52-week low was Rs 58.55. The company's trailing 12-month (TTM) EPS was at Rs 1.75 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 38.49. The latest book value of the company is Rs 59.98 per share. At current value, the price-to-book value of the company is 1.12.

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Reliance Power, Lanco seek higher tariffs for the Concentrating Solar PV Projects...

 

Solar power plants of Reliance Power, Lanco and others, are seeking higher tariffs saying that the data on solar radiation provided by the government was faulty which has led to lower generation.

Several companies have filed petitions before the central regulator, seeking higher tariffs jut as a panel chaired by Deepak Parekh recommended compensation for Tata and Adani's higher costs of generation.

At least three solar thermal power project developers with mandate to commission total 250 mw of capacity have moved petitions before the Central Electricity Regulatory Commission (CERC) seeking higher tariff.

Reliance Power subsidiary Rajasthan Sun Technique Energy, Lanco Group's Diwakar Solar Projects and Godawari Power and Ispat owned Godavari Green Energy, in their respective petitions, claimed that the solar radiation data shared by ministry of new and renewable energy (MNRE) are incorrect and solar thermal projects may not be able to generate power as per the projection.

According to an executive with one of the petitioners, the government's flawed data may take a toll on the viability of all the existing and upcoming solar power projects in Rajasthan, which has emerged as a solar hub of the country. The regulator is yet to admit these petitions. India's solar power generation capacity is largely concentrated in the states of Gujarat and Rajasthan.

"At the time of bidding under the Centre's Solar Mission, we banked on ministry of new and renewable energy's data on 'direct normal irradiance' for Rajasthan.

However, it turned out 15%-20% less than ministry's projections for solar radiation, which is the only fuel for our kind of projects.

It means, our project will have that much less electricity generation and hence return on investments," said the executive requesting anonimity. He added that weak Rupee too shot up project cost. Under solar mission's first bidding round held in 2010, NTPC Vidyut Vyapar Nigam selected seven developers to commission 470 mw of solar thermal projects for tariff of .`0.49-12.24 per unit. Reliance Power and Lanco Group quoted .`11.97 and .`10.49 per unit and bagged 100 mw projects each, which are under commissioning.

Godawari Power that quoted .`12.20 per unit announced commissioning of its 50 mw project mid-last year.

Earlier in September 2013, the Association of Power Producers also wrote to the union minister Farooq Abdullah requesting the necessary support by offering compensatory tariff to the project developers.

"The bidders had no other source of verifying the DNI data and could base the bid on DNI range provided by MNRE only," read a letter from the association director general Ashok Khurana. He stated that the developers could find the actual DNI only after their data could be independently collected after the projects were awarded.

DNI is the amount of solar radiation received per unit area by a surface that is always held perpendicular to the rays that come in a straight line from the direction of the sun at its current position in the sky. As per the original deadline, developers were expected to commission their projects by May 2013, which was extended by 10 months by the ministry.

Source

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CCI may consider land compensation exemption for RPower plant...

 

The Cabinet Committee on Investment may decide tomorrow whether Reliance Power's ultra mega power project at Tilaiya in Jharkhand should be exempted from providing non-forest land to compensate for the loss of forest land to be acquired for the project.

At present, only the central government or public sector undertakings are exempted from the obligation to provide non-forest land.

"This issue is expected to be taken up in tomorrow's CCI meeting," sources said.

Reliance Power has won contracts to set up two other ultra mega power projects (UMPPs) - at Sasan in Madhya Pradesh and at Krishnapatnam in Andhra Pradesh.

A UMPP is coal-based power plant with a capacity of about 4,000 MW built at an approximate cost of Rs 20,000 crore.

Source: Business Standard

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Reliance Power up 3% as CBI likely to close enquiry in Sasan project...

 

Shares of Reliance Power today rose by nearly 3 per cent on the possibility of CBI closing its preliminary enquiry to probe coal block allocation to a power project in Sasan in Madhya Pradesh run by Anil Ambani's firm.

Reacting to this, Reliance Power's scrip went up by 2.89 per cent to Rs 74.7 on the BSE.

On the NSE, the stock rose by 2.89 per cent to Rs 74.70. The CBI is of the view that the allocation is a policy decision vetted by group of ministers.

CBI sources said it has come to light that use of surplus coal from the Sasan UMPP was approved on two separate occasions by two EGoMs. They said since it was a policy decision, CBI was not likely to question it.

However, they added that any final decision has not been taken over the closure and any such decision can only be taken after taking into consideration the views of the Supreme Court.

The sources said they have informed the Supreme Court about the preliminary enquiry in their status report and agency would proceed according to further directions of the apex court.

After the registration of the preliminary enquiry, ADAG spokesperson had said in a statement that "we welcome the independent time-bound enquiries by the CBI, monitored by the Supreme Court, which will clearly establish our bonafides".

It will "once and for all prove beyond doubt that we have been the unfortunate victims of a mischievous campaign of calumny and vilification conducted at the behest of our unscrupulous corporate rivals over the past 5 years," the statement said.

The allocation of coal mines to the Sasan project was done to a 100 percent government-owned company in the year 2006 when Reliance Power had not even won the project, it said adding the government disinvested its shares to Reliance pursuant to a global tender in the year 2007.

The preliminary enquiry was registered on the directions of the Supreme Court that had asked the CBI to probe 14 issues including supply of low floor buses by Tata motors to Tamil Nadu government, grant of spectrum and alleged market manipulations and hammering of stocks by Unitech.

Source

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CERC to hear Sasan commissioning case tomorrow...

 

Electricity regulator CERC, will tomorrow, hear Western Region Load Despatch Centre's petition challenging Reliance Power's claim of commissioning the first unit of its Sasan ultra mega power project, in Madhya Pradesh.

CERC (Central Electricity Regulatory Commission) will hear issues related to commercial operation of Sasan plant, according to information available on the regulator's website.

The Western Regional Load Despatch Centre (WRLDC), which operates the power grid in the region, had questioned the start date of commercial operations at the Sasan plant, where the first 660-MW unit was commissioned in March.

Based on a petition filed by the WRLDC, the CERC had set aside a certificate issued by the independent engineer for declaration of commercial operations at the Sasan plant.

Reliance Power filed an appeal with the Appellate Tribunal for Electricity (APTEL) on the grounds that CERC's order is violative of principles of natural justice and is not tenable in law.

APTEL set aside CERC's order on August 13 and directed it to decide afresh on the matter of commercial operation date.

While referring to the judgement of APTEL, WRLDC in its petition with the CERC said that since the issue of maintainability is linked with the main issue on merits, the commission can consider all issues and then come to a conclusion.

Sasan Power Ltd (SPL) is the wholly owned subsidiary of Reliance Power which is executing the 4,000 ultra mega power project. The first unit started producing power on March 30, Reliance Power said in a BSE filing on April 4.

The company is executing UMPPs in Sasan, Krishnapatnam (Andhra Pradesh) and Tilaiya (Jharkhand).

Source: Business Standard

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Bidding strategies for UMPPs and other Power Projects moving ahead...

 

Guest Article by Mr. Nirav Dadhania

Indian power sector is going through precarious phase since some time. It is one of the few sectors where the companies don’t have product differentiation, operation is regulated and the end product happens to be full of vote bank politics.

The sector is facing multitude of problems like fuel sourcing, land acquisition, environment and government clearances, regulatory issues, timely payment from utilities, high interest rates, etc. Fortunately government has realized this and has initiated efforts like putting the clearances in fast track, Coal India signing fuel supply agreements for 71,500 MW, restructuring of state electricity boards, increase in tariff, etc.

Many Indian power producers have already started looking for opportunities in international market. TATA Power, which has already few projects under implementation abroad, is now concentrating on Africa, Southeast Asia, the Middle East and the SAARC (South Asian Association for Regional Co-operation).

The report card of existing four UMPPs (at Mundra to TATA Power and Sasan, Tilaiya and Krishnapatnam to Reliance Power) is not commendable. And now the government has started the bidding process of two new UMPPs: one each at Bedabahal in Odisha and Cheyyur in Tamil Nadu. The estimated cost Bedabahal UMPP is Rs 25,200 crore and of Cheyyur UMPP is Rs 24,200 crore. Assuming a debt / equity ratio of 3, the required debt comes around 35,000 crores. This would be a humungous task for developers to raise such a huge amount.

Bidding for UMPPs...
Bidding for power projects is no big trade secret as all the project parameters are out in open and most of the companies can reasonably estimate the cost of project. Considering that in the past, project developers have had aggressively bid to win the projects and have had burned their fingers in the process, it is expected that this time the developers will not discount the unexpected contingencies. Moreover, this time fuel cost is not the bidding parameter and the companies will bid the tariff for the 1st year only rather than levelised tariff structure.

Changing role of EPC players and financing…
Traditionally, EPC players have played the role of mere contractors providing the services/equipments. But considering the huge amount of investments required and fierce competition to bid the project, EPC companies will now play an important role as project stakeholder and would include joint ownership, providing strategic and business advisory to develop the project. One of the bidding strategies for power developer would be on how well they synchronize with their EPC partners.

EPC partners will not only bring technical competencies but can also bring in cheap funds. In past Reliance Power was able tie up $1.1 billion from three Chinese lenders. This was to support import of Boiler-Turbine Generator (BTG) from Shanghai Electric Group Company Ltd. Recently China

Development Bank Corp had agreed to lend $3 billion for 2,500 MW to Global Wind a venture between Ming Yang and Reliance Capital.

Import of Chinese power equipments and their performance has remained a controversial topic with domestic firms strongly opposing the imports. The Central Electrical Authority has submitted a report to the Union Power Ministry mentioning below par performance of Chinese equipments. Chinese units based on imported coal have, however, done better than BHEL on some parameters.
The developers will however, need to understand that success of project will depend on how much External Commercial Borrowing (ECB) they are able to get. Indian banking system has already reached its power sector lending limit. Also, their risk appetite of domestic lenders has waned considering the increase in risk profile of power projects. SBI chairperson Arundhati Bhattacharya in a letter to Power Secretary has pointed out that Dhabol power project is on verge of becoming NPA.

Considering the present situation, it would be difficult for developers to compete with someone having strong EPC partner with cheap ECB funding.

Increased responsibility of finance managers in EPC contracting…
Traditionally EPC contracting has largely remained purview of technical / commercial team with finance function playing limited role of budgeting. With EPC players playing a more integrated role, finance managers need to take a more collaborative approach with technical and EPC partners. They need to work out different payment/ownership structures so as to calculate different IRRs for both, the company and EPC partners. Manager need to create various scenarios in their financial models of various permutations combinations of payments vs stake sale mechanism.

Also, more innovation is required in terms of funding structures like repayment structuring, integrated financing solution across power value chain, hedging and risk mitigation.

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About the Author: Mr. Nirav Dadhania is a finance professional with techno commercial expertise. He has worked with various reputed power companies in India. He can be contacted at

His LinkedIn profile is www.linkedin.com/in/dnirav.

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The information and views expressed in this blog post are solely those of the author and not necessarily those of Power India. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.

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Policy patronage puffs up NTPC’s power show while private peers lag...

 

On the face of it, state-run power major NTPC continues to outperform most of its private peers which have entered the fray in less than a decade, by raking in higher profits in relation to revenue. However, this has mostly to do with relative regulatory flexibility and policy support enjoyed by the PSU’s plants, with little contribution from the company’s operational efficiency.

During the July-September quarter, NTPC posted a net profit of R2,490 crore on a revenue of R16,415 crore, a margin of 15%. In comparison, private players Adani Power and Lanco Power posted heavy losses during the quarter while Tata Power and JSW Energy made modest profits. Only Reliance Power has posted margins slightly higher than NTPC during Q2 at 19%, thanks to efficient capacity utilisation at its Rosa and Sasan plants.

All NTPC thermal power stations operate under the protective cost-plus regime, while private firms which have bagged projects through tariff-based competitive bidding face commercial risks at every stage. Power projects are financed in a 7:3 debt-equity ratio. While NTPC is entitled to 15.5-16% return on equity (minimum 15.5% RoE and additional 0.5% as incentive when projects are completed on time) from its cost-plus projects, there is no assured return on projects awarded through the bidding route. Non-automatic pass-through of fuel costs (which have risen in the case of most plants) and a weak payment security mechanism are other irritants faced by the private players.

Pertinently, NTPC had lined up massive capacities of over 40,000 MW for implementation under the now-discontinued cost-plus (MoU) regime before the tariff-based bidding regime was made mandatory in January 2011.This means the PSU would continue to be insulated from the risks posed by the tariff-based bidding regime for some more years. Including its existing capacity of 42,500 MW, 20,000 MW under construction and another 40,000 MW for which the company has entered into MoUs with distribution companies, a massive 1 lakh MW capacity of the PSU would be out of the tariff-based bidding mechanism.

A recent study by the Central Electricity Regulatory Commission (CERC) has found that in 12 out of 14 cases, levelised cost-plus tariffs were higher than those discovered through bidding within a range of 4-20%. This, despite the report excluding subsequent capital expenditure allowed under the cost-plus dispensation for the purpose of comparison.

While Adani Power is losing Rs 1,400 crore a year or thereabouts on account of additional fuel costs on power supplied to discoms of Gujarat and Haryana from its Mundra power plant, Lanco must run its plants at less than contract capacities due to domestic fuel shortage. The average plant load factor (PLF) of Lanco's generating stations worked out to be 47% against the operational threshold of 85% during Q2 this fiscal. Profits reported by Tata Power and JSW Energy were just nominal (less than 1% of total revenue).

While private developers bear all risks of the bidding regime – those relating to project execution, fuel price, demand and payment – NTPC remains insulated from such vagaries. For the PSU, if project cost escalates due to delays in competition, the extra expenditure can be capitalised and the burden passed on to the distribution companies as fixed charges. Similarly, the developer can recover additional fuel costs from discoms if it has to import coal owing to domestic fuel shortage. Even if discoms fail to lift (costly) power generated from imported coal, they will have to pay fixed charges to the PSU. That means there is little financial impact on a company like NTPC if discoms do not buy power from its plants.\

“There is no level playing field between NTPC and private players as they are operating on different footings,” said former Union power secretary RV Shahi, referring to competitive bidding and cost-plus regimes. The cost-plus system ended on January 5, 2011, giving way to mandatory bidding regime.

Private developers which bagged power purchase contracts by participating in bidding have to bear fuel price risks for 25 years. If a discom refuses to take allocated power, the developer can sell electricity in the open market. However, that is easier said than done, since finding an alternate buyer could prove tricky.

The unanticipated rise in fuel costs have proved to be a problem for private power companies. Tata Power and Adani Power are struggling to get the discoms agree to tariff hikes of 59 paise/unit and 80 paise respectively for their Mundra projects, even though the Central Electricity Regulatory Commission has recommended compensatory tariffs.

Source

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R-Power starts generation from Sasan UMPP second unit...

 

Reliance Power today said it has started electricity generation from the second 660 MW unit of the 3,960 MW Sasan ultra mega power project in Madhya Pradesh.

With the commissioning of the Sasan UMPP second unit, the company's overall generation capacity has crossed 3,200 MW.

The second unit of the project has commenced power generation in shortest time of just about a month from boiler light up, Reliance Power said in a statement.

Source

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Government exempts UMPPs from compensatory afforestation clause...

 

The government has granted exemption to ultra mega power projects from a key provision of the Forests Act 1980 that requires developers to identify non-forest land for compensatory afforestation.

The decision will benefit companies like Reliance Power that is implementing 3 ultra mega power projects and developers of future such projects.

The Cabinet Committee on Infrastructure has approved 'central government' status for ultra mega power projects for the purpose of forestland acquisition.

Unlike private projects, central government projects are neither required to identify non-forest land for compensatory afforestation nor pay any money for the purpose. The developers of ultra mega power projects however will be asked to pay for the afforestation while the host state government will identify the non forestland.

Compensatory afforestation rule is one of the most important conditions stipulated by the central government under the forest conservation act while diverting forestland and requires companies to identify equal area of non-forest land in the same state.

"We had approached the Cabinet Committee on Infrastructure for tweaking the compensatory afforestation norms for the Tilaiya ultra mega power project in Jharkhand. Since approved, the change would benefit both existing and future ultra mega power projects," a senior power ministry official said.

Reliance Power bagged the 3,960 mw ultra mega power project at Tilaiya in 2009 and planned to commission the first unit by May 2015. The company has not been able to start work, as the state government has not handed over land to the company. The company has received final forest clearance for 1220 acres of forest land but is still awaiting final handover from state government.

Nearly 80% of the land required for the project and the attached coal mines falls under forest area.

Reliance Power had ordered the main plant equipment for the Tilaiya project on Shanghai Electric, China but is still in discussions with domestic and international banks for financial closure.

The proposal would also benefit developers of future ultra mega power projects. The government has called bids for two such projects at Bedhabahal in Orissa and Cheyyur in Tamil Nadu.

Source

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AREVA has achieved first steam production at R-Power's CSP Plant in Rajasthan...

 

AREVA has completed a major milestone in the commissioning of its concentrated solar power (CSP) plant by achieving the first steam production.

This solar plant, which integrates AREVA’s compact linear Fresnel reflector technology, is Asia’s largest CSP installation. Located at Dhursar in the state of Rajasthan, it will be operated by Reliance Power Limited.

Reliance Power Limited, a part of Reliance Group, is India's leading private sector power generation company.

The initial steam operation is a critical step in the plant’s connection to the electrical grid as part of the ongoing commissioning. Commercial operation is planned for March 2014.

“The project is part of India’s energy program which aims to install 20,000 MW of solar power capacity in the country by 2022,” said Sam Shakir, CEO of AREVA Solar. “This plant built by AREVA will avoid approximately 557,000 tons of CO2 emissions per year compared to a similar sized coal-fired power plant.”

AREVA is a global supplier of CSP solutions for large-scale standalone power plants, power augmentation of fossil-fired power plants and solar hybrid applications.

Source

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Large Power Generating companies breathe easy as government plans loan recast...

 

A big relief is on the cards for power companies such as Tata Power, Adani Power, Reliance Power and Essar Power whose plants are in trouble, and their lenders who are worried about loans worth Rs 2 lakh crore to the sector. The government is working out a plan to restructure the loans, extend repayment deadlines by three years and waive penalties, officials said.

The private sector, which has invested heavily in recent years and accelerated capacity addition, is struggling with fuel scarcity and distribution bottlenecks. Large capacities of plants based on coal or gas are stranded because of fuel scarcity while many are facing delays in clearances.

The proposal aims to help plants with 65,000-70000 mw capacity that have suffered in the last four years due to reasons like shortage of fuel, lack of regulatory clearances and rupee depreciation. The rejig was necessary to prevent the loans from becoming non performing assets (NPAs) till the plants generate regular cash flow, officials said.

Power minister Jyotiraditya Scindia is likely to meet finance minister P Chidambaram next week to discuss the proposal. "Private power generating companies have come under severe stress over the past four years due to conditions outside their control. Domestic coal and gas shortage, price volatility in imported coal, weak distribution utilities, problems in land acquisition and regulatory clearances, higher interest burden and forex exposure have adversely affected thermal plants. There is a need to restructure loans of these companies to prevent the plants from becoming NPAs," the official said.

The proposal includes shifting commissioning deadlines of projects, particularly gas-based plants, whose debt has already been restructured. Power secretary PK Sinha confirmed the development. "We are working one such proposal along with banks, the finance ministry and other ministries," he told ET.

Thermal plants in the country have been operating at record low level at about 63%. Gas-based power plants are running at less than 25% capacity and around 8,000 mw is idling for want of gas allocation.

Sinha, however, said the country's power deficit has come down to record 3.5% in October as against 8.9% in the same month previous year. He said this was because of improved hydropower generation, less demand due to favourable weather conditions, high capacity addition and policy initiatives taken by the government.

Over the past few months, the government has taken many decisions in favour of power companies like directing Coal India to supply coal to power firms for 20 year, and passing cost of imported coal to consumers, approving compensatory tariff to Tata Power and Adani Power and bailing out state distribution companies.

The measures are expected to benefit power companies in the next 18-20 months.

Source

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Pre-commissioning of RPower's 100 MW CSP Project started; commissioning by March-14...

 

Reliance Power said it has begun pre-commissioning activities at its 100 MW CSP (concentrated solar power) project in Jaisalmer district of Rajasthan.

The project based on CLFR (compact linear Fresnel reflector) technology by AREVA and is being built at a cost of Rs 2,100 crore, adjacent to a 40 MW solar photovoltaic plant commissioned by the company last year.

The project is set to be commissioned by March 2014, RPower said.

The project is financed by multilateral agencies such as the Asian Development Bank, US Exim Bank, FMO of the Netherlands and Axis Bank.

Rajasthan Sun Technique Energy, a wholly owned subsidiary of Reliance Power, was awarded the CSP project in December 2010 by NTPC Vidyut Vyapar Nigam Ltd (a subsidiary of NTPC) under the Jawaharlal Nehru National Solar Mission.

The total power generated by the plant will be supplied to NVVN for a 25-year period.

Source

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R-Power may need to provide 1385 Ha Non-Forest Land in Liu of the land for Sasan Ultra Mega Power Project...

 

The controversial Reliance Power-owned Sasan Power Limited (SPL) in Madhya Pradesh (MP) may see more trouble as they may have to provide 1384.96 hectare of non-forest land, for which it was granted exemption following a certificate of non-availability of land issued by the then chief secretary of the state in 2009.

SPL will have to provide land as per the new Union ministry of environment and forest (MoEF) guidelines, said a senior officer in the state forest department wishing anonymity. "We have not received any official communication in this matter," he said.

State forest department has shot off a letter to MoEF seeking status of the guidelines. The ministry had promised for new guidelines after being pulled up by the CAG for extending "undue favours" to SPL. The letter was sent by the land records section of the forest department recently, said sources.

When contacted principal chief conservator of forest (PCCF) Anil Oberoi said that he is in Delhi and will discuss the matter with higher-ups in MoEF.

SPL, a special purpose vehicle created for development of Sasan Ultra Mega Power Project, was a wholly owned subsidiary of Power Finance Corporation (PFC). In August 2007 it was transferred to Reliance Power Limited.

In its recent report on Compensatory Afforestation in India, CAG said that SPL, according to guidelines and clarifications for diversion of forest lands for non-forest purpose under the Forest (Conservation) Act, 1980, had to provide equivalent area of 1384.96 hectare of non-forest land for the compensatory afforestation.

But, the former chief secretary had issued a certificate of non-availability of non-forest land in Sidhi district instead of a certificate of non-availability of non-forest land for the entire state.

"Based on this ineligible certificate issued by the chief secretary, the ministry 'exempted' Sasan Power Limited from providing non-forest land of 1384.96 hectare in case of Ultra Mega Power Project and for the coal mining project in violation of the Forest (Conservation) Act, 1980," reads the CAG report, which highlighted "deficiencies" in permitting diversion of forest land in the state.

"Not only did the ministry not exercise due diligence in ensuring compliance with conditions it also inexplicably overlooked the deficiencies in the certificate pointed out by a subordinate authority in the ministry while granting exemption in the instant case," CAG noted.

CAG mentioned, "The MoEF had insisted for compensatory afforestation over the non-forest land in latest project of the same company in nearby location in Madhya Pradesh, which clearly illustrates that in earlier two cases undue favour was extended to M/s Sasan Power Limited."

Source

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C-WET approves China Ming Yang's 1.5 MW and Garuda's 0.7 MW Wind Turbines for installations in India...

 

China Ming Yang Wind Power Group Ltd, which is in partnership with Anil Ambani-led Reliance Group, has got its wind turbine cleared for sales in India.

The Centre for Wind Energy Technology, which vets turbine models for use in India, recently notified the clearance for Ming Yang’s machine, which has a capacity of 1.5 MW and a hub height of 75 metres.

Ming Yang is a partner of Reliance Capital Ltd, an Ambani group company, in Global Wind Power Ltd.

When the joint venture agreement was announced last year, Global Wind said it intended to develop as much as 2,500 MW of wind power capacity in India by 2015. The venture is expected to be funded by a $3-billion loan from China Development Bank.

Recently, Bloomberg news agency had reported that Chinese wind turbine manufacturers such as Sinovel Wind Group Co, Dongfang Electric Corp. and Shanghai Electric Group Co have won orders in India.

GARUDA APPROVED

Garuda Vaayu Shakthi Ltd’s wind turbine also got clearance for sales. The Garuda 700 kW machine is completely home-grown.

N. Srinivasan, who earlier headed the renewable energy company Auro Mira, is promoting Garuda.

“We own the IP,” Srinivasan told Business Line , adding the company would procure the components and assemble the machines.

NuPower Technologies Ltd has got its 2.05 MW machine cleared. This turbine will be manufactured with technological help from Wind To Energy GmbH of Germany.

Also approved is the 1.8-MW ‘Pawanshakthi’ turbine of RRB Energy. The Chennai-based company, an erstwhile joint venture partner of global renewable energy company Vestas Wind, is one of the pioneers of the wind industry in the country. But it is now fighting for a small share of the market.

The past two years have been bad for the Indian wind power industry, mainly due to the withdrawal of some key incentives by the government. Against this backdrop, new turbines coming into the market are seen as a confidence the players have in the long term future of the industry.

The Revised List of Models and Manufacturers of Wind Turbines (RLMM) as approved by C-WET can be downloaded from this link.

Source

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Power Engineers’ Federation writes to CEA regarding poor performance of Sasan UMPP...

 

While Reliance Power Limited, a part of Anil Dhirubhai Ambani Group, recently achieved boiler light up for the second 660 MW unit at the 3,960 MW Sasan Ultra Mega Power Project, the All India Power Engineers Federation has written to the Central Electricity Authority demanding that a probe be conducted into the repeated tripping and shut down of the first 660 MW unit synchronized on March 9th this year.

The Sasan UMPP is the world’s largest integrated power plant and coal mining project with an estimated investment of over Rs. 23,000 crore. Coal production has already commenced from the 20 million tonnes per annum capacity Moher and Moher-Amlohri coal mines.

The achievement of boiler light up is considered a critical milestone in boiler commissioning activities for a unit.

According to the company, construction works at the remaining units are at an advanced stage and they would be commissioned over the next few months.

The AIPEF in its letter to the CEA said that the unit synchronized on March 9th and operating on scheduled mode since August 16th could achieve a Plant Load Factor of only 28 percent during the period August 16th to November 7th because of repeated tripping and shut down.

The power engineers’ representative body said that after synchronization on March 9th, the unit was put on trial run in the last week of the same month and achievement of parameters for commercial operation wrongly declared from March 31st. In the third performance test held in August, the unit could not run for 72 continuous hours above 95 percent but even then commercial operation was declared, the letter pointed out.

Secretary General of AIPEF Shailendra Dubey said that the poor performance of the unit was resulting in losses for the states assured of low cost and reliable power from the project. The share of Uttar Pradesh from the project is 12 percent and that of Madhya Pradesh, Punjab and Haryana stands at 37.5 percent, 15 percent and 11.25 percent respectively.

The Sasan UMPP has a levelized tariff of 119.6 paisa per unit whereas for the first two years, power is to be supplied at 70 paisa per unit.

Dubey said that on one hand Uttar Pradesh was purchasing power from Reliance’s Rosa power plant in Shahjahanpur at more than Rs. 5.50 per unit and on the other, the low cost power assured to the state from the company’s Sasan UMPP was not being supplied. He said that Uttar Pradesh Power Corporation Limited needed to take up the matter with the Centre and CEA and seek compensation from Reliance for the failure to supply low cost power from the Sasan UMPP.

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Fuel cost saps margins of Reliance Power...

 

A 30 per cent rise in fuel cost at Rs 827 crore (Rs 637 crore in the previous year quarter) brought down the margins of Reliance Power for the September quarter.

This is despite the company clocking higher revenues and its 1,200 MW Rosa Plant in Uttar Pradesh logging 90 per cent plant availability.

Apart from the Rosa Plant, its 40 MW Dhursar solar PV plant in Rajasthan operated at 20 per cent and its 45 MW wind project in Vashpet, Maharashtra, logged 33 per cent plant load factor.

RPower said the progress at the second unit of 660 MW of 4,000 MW Sasan plant is on track and the unit is likely to be commissioned this month.

Its 100 MW concentrated solar power plant at Dhursar in Rajasthan is expected to be commissioned this fiscal.

On Monday, the R Power scrip closed 2.46 per cent lower at Rs 73.40 on BSE.

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RPower knocks PFC’s doors again for funding the samalkot ant Tato Projects...

 

Reliance Power Ltd (RPower) has once again approached Power Finance Corporation Ltd (PFC) for loans totalling Rs 5,000 crore for its two projects — Samalkot (Andhra Pradesh) and Tato-II (Arunachal Pradesh).

The Anil Ambani group company has sought Rs 2,500 crore for the 2,400-MW Samalkot gas-based station and Rs 2,584 crore for the 700-MW Tato-II hydro power project.

“The Tato-II case was discussed by PFC Board on November 8, while the one for Samalkot is under examination,” an official privy to the development told Business Line.

But no final decision has been made till now, he added.

RPower had, in the past, too, approached PFC for funding for the Samalkot project. But for want of a bank guarantee it was not accepted. PFC had asked RPower to furnish a bank guarantee, as there was uncertainty over availability of domestic natural gas.

“Reliance Power did not give the bank guarantee at that time,” the official added.

POOLING MECHANISM

Though the situation as far as availability of gas is concerned has not changed much, PFC is still considering the loan request, as RPower has cited the Government’s initiative to make gas available through pooling mechanism for power projects that are stalled.

The company has also requested the Power Ministry for its support while seeking these loans.

“No special dispensation will be given while considering their request. Every lender will appraise the project and fund it based on commercially viable decisions,” a senior Power Ministry official told Business Line.

RPower did not respond to Business Line’s queries seeking details on the loan applications.

The Samalkot power station will cost nearly Rs 11,000 crore. Of this, Rs 3,300 crore will be equity funding and the remaining Rs 7,700 crore will be debt. Till now, RPower has tied up loans of about Rs 3,000 crore.

The Tato-II hydro project would cost about Rs 7,400 crore, comprising Rs 2,200 of equity and the balance in debt.

CONSOLIDATED DEBT

“Reliance Power has a consolidated debt of Rs 27,000 crore as of March 2013. The company has a net debt-equity ratio of 1.3, while gross debt-equity ratio of 1.5,” said Rupa Shah, Research Analyst (Institutional Equities) at Prabhudas Lilladher Pvt Ltd.

“Till net debt-equity ratio of 1.5 is reached, not much concern would be raised,” Shah added.

It is believed that RPower is also seeking loans of more than Rs 4,500 crore from Rural Electrification Corporation.

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Reliance Power to start second unit of Sasan plant next month...

 

Reliance Power will commission the second 660 MW unit of its ultra mega power project at Sasan in Madhya Pradesh next month.

The second unit at the coal-fired plant will be tested this month and will become operational next month, a company executive told PTI.

The Sasan project is the first of three 4,000 mega watt plants that Reliance Power is building. The first 660 MW unit at Sasan was commissioned in March.

"Boiler light-up has been achieved for the second 660 MW unit at the Sasan UMPP," the company said today in a statement.

Coal production has started from the 20 million tonne per annum capacity Moher and Moher-Amlohri mines allotted to the power project, according to the statement.

Reliance Power is setting up UMPPs at Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand.

Two 600 MW units of the company's Rosa thermal power project are operational.

Reliance Power shares traded at Rs 75.45, up 1.14 per cent, in the afternoon on the BSE.

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