NTPC cancels Rs 700 crore gas turbine tender with Finmeccanica subsidiary...

 

In A bid to avoid any embarrassment from probes by investigating agency, India’s largest thermal power generator NTPC has scrapped a gas turbine tender worth over Rs 700 crore with Italian firm Ansaldo Energia SpA.

Genoa-based Ansaldo Energia is a subsidiary of Finmeccanica, the parent company of tainted Agusta Westland. Indian defence ministry’s multi-billion chopper deal with Anglo-Italian Anglo-Italian firm Agusta Westland smacked off corruption and NTPC fearing future trouble decided to cancel the tender after it was found that the Italian firm was the lowest bidder with price of Rs 756 crore against Siemens’ Rs 780 crore.

According to a media report published in a national daily, the Maharatna company’s action prompted Italian ambassador Daniele Mancini to take up the issue with Union power ministry.

NTPC landed in a complicated situation after Italian power generator Ansaldo Energia SpA beat Siemens AG of Germany to emerge as the lowest bidder in the international tender for buying gas turbine package to renovate NTPC’s Dadri plant near Delhi.

Italian conglomerate Finnmecanica has a majority stake of 56 percent in Ansaldo, while it owns 100 percent equity in Agusta Westland.

At a time when the pricing was being firmed up, the CBI and the Joint Parliamentary Committee (JPC) began separate probes into alleged payoffs by Agusta Westland in the Rs 36 billion chopper deal.

NTPC then approached the independent external monitors for the tender, Integrity Pact. The monitor advised NTPC to seek legal opinion on whether misdeeds of one group firm should reflect on another. Following this, NTPC sought attorney general's opinion. Attorney General, the government's highest law officer, advised NTPC against straightaway placing the equipment order with Ansaldo as the cases of misdeeds against Finnmecanica were by no means lighter.

But for NTPC, it was not that easy to walk out of deal. In the meantime, the Dadri unit said replacing the plant's obsolete panels immediately was more important than replacing gas turbines. Taking advantage of the situation, the power utility decided to scrap the tender altogether citing pertinent tender clause.

Earlier, in February 2012, Ansaldo Caldaie Boilers India Pvt Ltd, a unit of Ansaldo Caldaie SpA, lost a case in the Supreme Court, challenging NTPC's decision to disqualify the firm in a Rs 22,000 crore tender for super-critical boilers.

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Roadshows for Coal India's 5% stake sale begin...

 

Coal India  is the biggest loser on the Nifty, shedding around 1 percent in intraday on Monday. The world's largest coal miner starts off its second round of roadshows for the 5 percent stake sale and will continue till November 26.

The government will hold roadshows in Singapore, Hong Kong and Australia from next week.

Earlier, investors have expressed concern over the lack of an appropriate regulatory regime for the sector as well as the long pending restructuring of this public sector behemoth. Investors are particularly concerned over the pricing power of Coal India and what impact the proposed regulatory architecture would have on that ability.

The stock had fallen around 5 percent on Thursday after reporting September quarter results. Its consolidated net profit dropped to Rs 3,052.36 crore for the July-September quarter as expenses rose. posted a profit of Rs 3,078.08 crore in the second quarter a year earlier.

Net sales rose 5.75 percent to Rs 15,411.49 crore from Rs 14,572.54 crore. At 10:55 hrs, the stock was quoting at Rs 271.95, down Rs 2.50, or 0.91 percent on the NSE.

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TEDA launches Chief Minister's Solar scheme...

 

Tamil Nadu Energy Development Agency (TEDA) has launched Chief Minister’s Solar Rooftop Capital Incentive scheme, which offers a subsidy of Rs 20,000 for a kilowatt capacity solar plant.
 
With the launch of the scheme, the domestic power consumer could apply for installing a grid-connected rooftop solar photovoltaic plant through the TEDA’s website: www.teda.in or mailing the application by post to its office in Chennai. 
 
Tamil Nadu Electricity Regulatory Commission issued its order on November 13 on ‘net metering’ and ‘LT connectivity’. While a one kW solar system without battery costs Rs1 lakh, the consumer will have to invest only Rs 50,000 and the rest will be borne by the Centre subsidy of Rs 30,000 and state’s Rs 20,000.
 
The consumers power troubles too could be over as a solar system of one kW capacity can generate approximately 1,600 units a year. It works out to a saving of Rs 9,200 per year at a tariff of Rs 5.75 per kWhr. A senior official of energy department said that the subsidy will be given only to domestic consumers under ‘LT-1A’ category on ‘first come first served’ basis for the grid-connected and battery-less solar systems.
 
The consumer should purchase the system from the vendors enlisted by TEDA, the official said, adding that the consumer should also bear the cost of bi-directional meter, which will replace the existing consumer

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MoP's draft replies on queries with respect to "implementation of Central Eletricity Act 2003 - a review"

 

The Ministry of Power has prepared draft reply to a list of queries with respect to the 'Implementation of the Central Electricity Act, 2003 -  A Review'.

The draft replies prepared ranged from queries relating to steps taken in furtherance of the objectives of the Central Electricity Act, 2003 to queries on challenges affecting the power sector.

As per the draft replies prepared for the Lok Sabha Secretariat, the Ministry of Power states that the National Electricity Policy (2005), Tariff Policy (2006) and the Rural Electrification Policy (2006) have been implemented over the years in furtherance of the objectives of the Electricity Act, 2003.

The MoP also mentioned that the recently issued Standard Bidding Documents (SBDs) containing RFQ, RFP and model PPA for long term procurement of power from case-2 projects and Standard Bidding Document for long term procurement of power from Case-1 projects. This SBD comprising the Model RFQ, RFP and PPA is expected to bring in larger private sector investment in the power sector and make tariffs competitive.

The draft replies also highlighted the major challenges afflicting the power sector such as financial health of the distribution sector, lack of freedom of SLDCs which results in inefficient handling of grid related matters, issues related to Open Access, separation of Carriage & Content in the distribution sector, violation of grid discipline, etc.

The Ministry of Power`s draft replies on `Implementation of Central Electricity Act, 2003 - A review` also tends to queries regarding tariff regulation such as details of tariff determination mechanisms available for arriving at the tariff rates being levied on consumers.

The Ministry presented that the Electricity Act, 2003 provides for two alternatives methods for determination of tariff. While under Section 62 of the Act, tariff on the generating station and inter-state transmission system is determined on cost plus basis in accordance with the tariff regulations specified by the Central Commission, the other method is through a process of competitive bidding.

The MoP also clarifies its policies with reference to Regulatory Commission having no say in the bidding process for tariff determination. In this regard, the draft reply states that the Central Government has already issued detailed guidelines for tariff based bidding process.

And as per the guidelines, tariff determined after completion of the bidding process has to be adopted by the Commission and must ensure that a transparent process is followed during the bidding process. Moreover, under the guidelines, the Commission is empowered to adjudicate the disputes between the seller and procurers or between the transmission service providers and long term transmission customers with regards to tariff and other provisions of the PPA.

Source: Energy Line India

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NTPC's Farakka Super thermal power project starts imported coal movement...

 

NTPC rose 0.82% to Rs 154 at 9:35 IST on BSE after the company said that the company's Farakka Super Thermal Power Station in West Bengal had started the movement of imported coal by barges through inland waterway.

The announcement was made during trading hours today, 18 November 2013.

NTPC's Farakka Super Thermal Power Station in West Bengal had started the movement of imported coal by barges through inland waterway.

The first set of 3 barges carrying about 1,500 tonnes each of imported coal has berthed near Farakka station on 13 November 2013. NTPC said it will transport 3 MMTPA of coal through inland waterway to Farakka station for 7 years.

NTPC's net profit declined 20.7% to Rs 2492.90 crore on 0.9% growth in net sales to Rs 16272.27 crore in Q2 September 2013 over Q2 September 2012.

NTPC, India's largest power company, has presence in the entire value chain of power generation business. The Government of India (GoI) holds 75% stake in NTPC (as per the shareholding pattern as on 30 September 2013).

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Research: harvest two times more energy from solar cells...

 

Researchers in Cambridge and Mons have investigated the process in which the initial electronic excitation can split into a pair of half-energy excitations.

Researchers are trying to improve efficiency is to split energy available from visible photons into two, which leads to a doubling of the current in the solar cell.

Researchers in Cambridge and Mons have investigated the process in which the initial electronic excitation can split into a pair of half-energy excitations.

This can happen in certain organic molecules when the quantum mechanical effect of electron spin sets the initial spin ‘singlet’ state to be double the energy of the alternative spin ‘triplet’ arrangement.

The study shows that this process of singlet fission to pairs of triplets depends very sensitively on the interactions between molecules.

By studying this process when the molecules are in solution it is possible to control when this process is switched on

When the material is very dilute, the distance between molecules is large and singlet fission does not occur. When the solution is concentrated, collisions between molecules become more frequent.

The researchers find that the fission process happens as soon as just two of these molecules are in contact, and remarkably, that singlet fission is then completely efficient—so that every photon produces two triplets.

The team used a combination of laser experiments - which measure timings with extreme accuracy - with chemical methods used to study reaction mechanisms.

This dual approach allowed the researchers to slow down fission and observe a key intermediate step never before seen.

The study has been published in the journal Nature Chemistry.

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Premier Solar ties up with US firm to invest $400 m in Andhra Pradesh...

 

Premier Solar has tied up with Chicago-based renewable energy company New Generation Power to set up solar farms in Andhra Pradesh.

The consortium, which plans to invest $400 million (Rs 2,500 crore) in the next couple of years, has already secured contracts to set up 70-MW capacity and will bid for another 245 MW under the Andhra Pradesh Solar Policy, which aims to build 1,000 MW in renewable capacity.

In the first phase, the consortium will install 70-MW solar farms in 14 locations in the State. "Funds have been tied up and the execution should be completed over the next 12 months," said Karthik Polsani, Premier CEO. The Hyderabad-based company is negotiating with US investors to get low-cost funding, he added.

The consortium has signed a power purchase agreement with the AP Government for 20 years. Mumbai-based WAAREE Group and Premier Solar will be the joint EPC contractors for the first phase.

New Generation , promoted by India-born Chirinjeev Kathuria, will hold a 74 per cent stake, while Premier will have the balance in the joint venture. There will a few more partners as the project implementation progresses, Polsani told Business Line.

New Generation is a diversified global developer, investor, owner and operator of energy infrastructure assets with focus on renewable energy. It is currently developing grid scale projects in Africa, Europe, South America and the Caribbean.

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Coal India hikes transportation fees...

 

State-run monopoly miner Coal India has increased the amount it charges its clients for transporting coal from the minefields to the loading points, a move that is likely to result in a hike of about 2 paise per unit in the price of power sold to households.

"We have been forced to hike the charges because diesel prices have increased substantially since the time we last adjusted this price in 2009," said Coal India's marketing director B Saxena, adding, "There has also been a rise in salaries and wages of employees and contract employees involved in transporting this coal."

As per the revised rates implemented from November 14, Coal India is charging Rs 57 per tonne instead of Rs 44 per tonne for 3-10 km. This spells an increase of 29.5% while the company has increased the surface transport charges for 10-20 km by nearly 51%, to Rs 116 per tonne from Rs 77 per tonne.

Almost all power producers will now have to pay more to Coal India because the distance between mines and loading points is usually 3-20 km. Loading points include coal stockyards and railway sidings from where Coal India's clients lift the fuel.

The revised rates imply that power producers will have to pay an additional Rs 55,000 for buying a rake of coal from Coal India in case the coal is transported between 3 km and 10 km. For loading points located between 10 km and 20 km, the additional outgo will be Rs 1.7 lakh per rake.

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UP Government inaugurates 110 MW unit at kanti; assures a 500MW power plant soon...

 

Heralding a new era in the field of power generation in the state, CM Nitish Kumar on Sunday dedicated the 110MW first unit of Kanti Bijli Utpadan Nigam Limited (KBUNL) to the people of the state. He announced on the occasion that one more power plant of 500MW would come up at Kanti, on the outskirts of the town, soon.

Hitherto, the state's own power generation was nil. The 110MW first unit, which had remained closed since 2003, was given to BHEL for renovation in April 2008, which completed the task at a cost of Rs 471 crore. NTPC is operating this unit under the aegis of a joint venture with the state government. The unit, which never generated more than 60 to 80MW between 1985 and 2003, on Sunday generated 111MW.

The power plant's second unit, again of 110MW, which is also under renovation, would be operational by March next. This was stated by the CM following a categorical assurance by BHEL engineers on the stage.

Addressing a well-attended meeting on the occasion, the CM said two more units of 195MW each are expected to go into production by September and December next year, bringing the total capacity of Kanti plant to 610MW by next year. "Availability of power is the basic problem of Bihar as it is needed for agricultural and industrial growth as well as for better civic life. I have taken energy augmentation as a challenge. I am committed to make Bihar self-sufficient in power generation by 2015," the CM announced.

He said on the day of Chhath, the state got 2,300MW power through different sources. The availability will go up to 3,000MW next year and with the setting up of one more power plant, the state's generation capacity would increase further. He called upon NTPC CMD, Arup Roychaudhary, also present on the occasion, to set up new units in Bihar and assured Bihar's full cooperation to NTPC.

The CM requested the power consumers to pay their power bills on time, otherwise the government might have to curtail its essential expenditure on education, health etc. He told the audience that out of Rs 12,000 crore received from the Centre as special assistance, the government had spent Rs 9,200 crore on power projects alone.

JD(U) MLA from Kanti, Ajit Kumar thanked the CM for keeping his promise of power generation augmentation at Kanti. Energy minister Bijendra Prasad Yadav was also present on the occasion.

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Coal India may hike prices by fiscal-end...

 

Coal India Ltd, the monopoly miner of the resource, may go for a price hike by end of the current fiscal following a fall in its earnings due to drop in the average quality of coal mined.

A better understanding of the actual need to raise prices would happen by the end of third quarter as by then old stocks would be fully cleared and supplies would consist only of freshly mined coal, chairman Narsing Rao has told analysts.

“We would like to observe for some more time what kind of grade decline would be happening with fresh coal (coming in). Some possibility (of price hike) is there, but when and how much we don’t want to speculate,” Rao said when an analyst asked would Coal India raise prices in order to safeguard its earnings.

State-owned Coal India’s profits saw marginal drop for the July-September quarter to Rs 3,052 crore against Rs 3,078 crore year ago even as sales were up 6% to Rs 15,411.5 crore from Rs 14,572.5 crore.

Profitability also suffered because of lower realisation from e-auction as power producers, burdened with excess stocks, stayed away.

“Our deliveries to the IPPs (independent power producers) have been better over the last year.
Stocks at the power stations have been at 22 million tonne (mt) consistently for the last 7-8 months. So purchase of IPPs buying coal from e-auction has come down,” Rao said. Apart from falling realisation, Coal India is also staring at the prospect of missing its production target for 2013-14 set at 492 mt.

“We had a jolt in October losing about 5-6 mt of production. But we are not revising our targets (of producing 492 mt in fiscal 2014). I won’t say we are very confident but we are (reasonably) confident of facing this challenge and go as close as possible to 492 mt,” Rao said. 

Also, it has outstanding dues with NTPC, its key customer, some of which may turn bad debt.

“Our receivables from NTPC now are about Rs 3,400 crore. At the beginning of October, receivables from NTPC were Rs 4,700 crore, and since then a portion of it was liquidated including some adhoc payments. I don’t want to comment on the likely write-downs that may or may not happen but we are taking this up seriously with NTPC. Our intention is to get back as much money as possible,” he said.

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