Power rates may go up in Uttarakhand...

 

The Uttarakhand government is likely to increase electricity charges for the industry.

With the state facing four-eight million units of power shortage daily, Uttarakhand Power Corporation Limited (UPCL), the sole power distribution company in the hill state, spends about Rs 9,000 crore every year to purchase power from open market at higher rates than it purchases from the state-run UJVN.

State Chief Minister Vijay Bahuguna said, “We are spending Rs  8,000-9,000 crore on purchase of power from open market. I have advised that there should be no curtailment of power in the state. When we purchase electricity from the market at higher rates, we can sell it to the industry at much higher rates.”

Since power shortage is a big issue in the hill state, the government is forced to purchase power from open market.

Addressing a gathering here on Sunday, BJP prime ministerial nominee Narendra Modi said he favoured harnessing the potential of river water for generating power. The state government had scrapped many hydel projects on environmental and religious grounds.

Bahuguna claimed hydropower projects with a capacity of 2,424 Mw were scrapped by the previous BJP government. “All these power projects were scrapped during the BJP regime which otherwise could have started generating power by now,” he said.

Source: Business Standard

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KEC International bags orders worth Rs 7.56 bn...

 

KEC International, a RPG Group infrastructure EPC major, has secured new orders worth Rs 7.56 billion in transmission, water, power systems and cables businesses.

In transmission business, the company bagged orders in the Americas, Saudi Arabia and Abu Dhabi amounting to Rs 3.24 billion from SAE Towers and National Grid SA.

In water business, the company received three orders in India worth Rs 2.45 billion from Bangalore Water Supply Sewerage Board, Government of Uttarakhand and Water Resources Department of Madhya Pradesh.

In power system business, the company bagged an order for establishment of 220/ 400KV Gas Insulated Substation (GIS) at Kishanganj in Bihar. This order secured from Power Grid Corporation of India for worth Rs 1.02 billion.

In cables business, the company secured orders fro supply power and telecom cables. The total value of these orders is Rs 850 million.

Shares of the company gained Rs 0.5, or 1.01%, to trade at Rs 50.15. The total volume of shares traded was 308,280 at the BSE (12.38 p.m., Friday).

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NTPC yet to get compensation on Loharinag Pala Hydro Project in Uttarakhand...

 

NTPC’s tale of woes over Loharinag Pala hydro power project refuses to die down easily. While NTPC is facing pressure from its contractors to settle its liabilities, its request for compensation for stopping the project midway has fallen on deaf years.

According to NTPC, the government owes Rs. 536.3 crore as compensation for abandoning the project.

NTPC has now requested the Ministry of Power for formation of a ‘Settlement Commission’ to resolve the issue and release the payment to the contractors. NTPC has also requested the Ministry to convene meeting of the Settlement Committee to consider Sub-group’s recommendations of proposed reimbursement of Rs. 32.27 crore as a payment for cost of the land.

NTPC’s 150 MW x 4 Loharinag Pala Hydro Power Project was a run-of-the-river hydroelectricity project planned at an estimated cost of Rs. 2,895 crore. The project was located on the river Bhagirathi, the headstream of the Ganges River at Loharinag Pala in Uttarakhand.

NTPC had awarded the main project construction contracts and construction was started in 2006. However, work had to be stopped in 2009 due to strong protests by environmentalists. The project was officially scrapped in 2010.

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Hydropower sector goes on the back burner in Uttarakhand...

 

At a time when the Uttarakhand government has launched a campaign to highlight its achievements in the media, the hydropower sector, a key growth driver in the hill state, has virtually been put on the backburner.

Even in its new official book on developmental works that was released by Chief Minister Vijay Bahuguna on the state’s foundation day on Saturday, the government did not say what steps it had taken to give a flip to the hydropower sector which is considered to be the most neglected one during the past few years. So far, Uttarakhand has only harnessed 3,622.14 Mw of hydropower against the potential of 26,000-30,000 Mw.

Except for stating that the Uttarakhand Jal Vitaran Nigam Limited (UJVNL), the state-run power generation company, has been able to produce 4,812.11 million units of power against the target of 4,752.67 million units in 2012-13 and highlighting various other topics, the state government remained silent on the controversy surrounding big hydel projects, apparently owing to legal, environmental and religious hurdles.

With the controversy continuing to dog big hydel projects, the government chose to focus on small hydropower projects (SHPs) and solar lanterns and various other power issues in the wake of the June floods. However, it did not give details about the extent of damage to various hydropower projects caused by the devastating floods that crippled the economy of the most of the hilly areas. It also did not focus on the future policy plans related to the hydropower sector.

After the Supreme Court’s judgment in August, the government has chosen to remain silent on the issue. The chief minister, who is holding the power portfolio, blames the previous BJP government for “ruining” the hydropower sector, saying the previous regime had suspended a series of hydel projects.

So far, the government has maintained that it would study the Supreme Court’s ruling on hydel projects. The apex court’s order had called for a review of 24 hydropower projects on which the Wildlife Institute of India had given its report last year. The Supreme Court, in its order, had also asked the state government not to grant fresh permissions to new projects till further orders and called for setting up of an expert committee to study the 24 hydel projects.

A preliminary assessment of the apex court’s order made by the state-run power generation company UJVN Ltd revealed that a total of 35 projects with a capacity of 4200 Mw are under review. “Our assessment is that a total of 35 projects are under review,” said UJVN Managing Director G P Patel.

Significantly, the centre had declared an eco-sensitive zone in Uttarkashi district along the 100-km stretch of Bhagirathi river that had sounded a death knell for 1,743 Mw of power projects. Moreover, the final report of the inter-ministerial group (IMG) headed by B K Chaturvedi had also badly impacted the hydropower sector in the Ganga river basin to the tune of 6,000 Mw. “If we consider the eco-sensitive zone, the BK Chaturvedi report and the Supreme Court’s order, there is an overlapping of projects which are under review,” said the official. “So we have to study the judgment very carefully to make further comment,” the official added.

A total of 69 hydropower projects with a capacity of more than 9,000 Mw were under review by the inter-ministerial group which was set up following agitations by environmentalists and religious leaders against the development of scores of hydel projects on the holy river Bhagirathi. In its recommendation, the committee said no new hydropower projects should be taken up beyond the 69 projects. And among the 69 projects, the committee has set certain limitations. This means the group had recommended the construction of hydropower projects of 3,000 Mw only, that too with tough riders.

Pending a long-term perspective on the Ganga basin management plan, the committee also proposed that small tributaries of Ganga like Nayar, Bal Ganga, Rihsi Ganga, Assi Ganga, Dhauli Ganga, Birahi Ganga and Bhyunder Ganga would be kept in pristine glory without developing any hydel projects. In the IMG’s assessment this will mean a loss of 400 Mw of power to Uttarakhand.

When contacted, Additional Secretary, Power, M C Joshi said the centre had already set up a committee for the review of the projects in Alaknanda and Bhagirathi valley under the Supreme Court’s order. “Till the final report comes, we cannot comment on the issue,” said Joshi.

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Power producers seek rejig of MoEF panel on Uttarakhand disaster...

 

Private power producers have requested Prime Minister Manmohan Singh to reconstitute the Environment Ministry's committee on assessing the impact of Uttarakhand disaster, saying that it lacks the state's representation.

Heavy monsoon rains and landslides wreaked havoc in the hill states of Uttarakhand and Himachal Pradesh and flooded parts of Haryana on June 16 and 17, leaving close to 1,000 people dead.

The disaster affected power generation at many hydel plants in Uttarakhand and Himachal Pradesh.

"Water is one of the precious and critical resources of the state of Uttarakhand, and contributes to the state's economic growth and development. Therefore, the representation and participation in such critical study would be paramount," Association of Power Producers said in a letter to Singh.

"We request you to take up with MoEF ( Ministry of Environment and Forests) the matter of reconstituting the body with inclusion of appropriate domain experts without a stated position on the matter in order to avoid personal biases and prejudices and also to ensure a balanced and outcome of the proposed study," APP Director General Ashok Khurana said.

APP is an industry body representing the private power producers in the country.

The letter said that MoEF will need to conduct social, ecological and economical impact of the projects along with the benefits and then give a balanced view aimed at promoting sustainable growth in the region.

It added that appropriate level of representation and participation from Government of Uttarakhand is not there in the presently constituted committee by MOEF.

"Equally important is the need to maintain objectivity in the findings of the committee, which might prove to be a difficult task if the committee consists of members with a very strong and stated position on the matter to be examined," APP said.

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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UERC issued APPC Order for the FY14 at Rs. 2.72 per unit...

 

The Uttarakhand Electricity Regulatory Commission (UERC) has issued the Average Power Purchase Cost (APPC) for the Financial Year 2014 at Rs. 2.72 per unit.

The definition adopted by UERC for the APPC is as follows:

“weighted average pooled price at which the distribution licensee has purchased the electricity including the cost of self generation, if any, in the previous year from all the energy suppliers long-term and short-term, but excluding those based on renewable energy sources, as the case may be.”

The power purchase data of FY13 has been considered while arriving at APPC for FY14.

Based on power purchase expenses of FY13 furnished by UPCL to UERC, an APPC rate of Rs.2.72 per unit has been finalized. 

The soft copy of the APPC Order by APPC can be download from this link.

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